Proposed Merger Offers New Growth
Opportunities
Minority and women-owned businesses in the District will benefit
from new and expanded opportunities with the proposed Pepco-Exelon
merger, leaders of both companies told an audience of more than 160
local business leaders recently.
One local company in the audience, Ideal Electrical Supply
Corp., has been working with Pepco for nearly 30 years. Ideal – a
women and minority-owned business – did about $20 million in
business with Pepco last year, up from $3.5 million several years
ago.
“We’re excited about the possibilities this merger opens for us
and look forward to it moving forward,” said Ideal President and
Co-founder Cora Williams.
“The combined resources of Pepco and Exelon and their commitment
to invest locally will be beneficial to local and diverse
contractors and the communities we serve,” Pepco Region President
Donna Cooper said, adding: “We’re supportive of every effort to
drive jobs and economic development in the District and our merger
with Exelon will continue that support.”
The remarks came during a roundtable and networking session at
the Hamilton Live for contractors in the Washington, D.C., area. A
wide variety of small business owners attended the event for a
detailed question and answer period with key officials at Pepco
Holdings and Exelon and to make connections with other small
business owners.
Pepco Holdings and Exelon executives provided specifics on
company contracting levels that are likely to expand if the merger
is approved and how local businesses will be able to work with the
companies.
Melissa Sherrod, vice president of corporate affairs at Exelon,
explained how Exelon spent more than $1.3 billion in 2015 with
diverse vendors, including small, minority-owned or women-owned
businesses.
“A successful merger means there will be even more possibilities
for diverse businesses that we want to support, and that’s a good
thing for the health of the communities Pepco serves,” Sherrod
said. “Exelon shares Pepco’s core value of diversity and intends to
build on it going forward.”
The merger will bring together Exelon's three electric and gas
utilities - BGE, ComEd and PECO - and Pepco Holdings' three
electric and gas utilities - Atlantic City Electric, Delmarva Power
and Pepco - to create the leading mid-Atlantic electric and gas
utility.
The merger has been approved in Maryland, Delaware, New Jersey
and Virginia and by federal regulators. The D.C. Public Service
Commission is currently reviewing the merger and has set a schedule
which would allow for completing the proceeding by the first
quarter of 2016.
About Exelon Corporation
Exelon Corporation (NYSE: EXC) is the nation’s leading
competitive energy provider, with 2014 revenues of approximately
$27.4 billion. Headquartered in Chicago, Exelon does business in 48
states, the District of Columbia and Canada. Exelon is one of the
largest competitive U.S. power generators, with approximately
32,000 megawatts of owned capacity comprising one of the nation’s
cleanest and lowest-cost power generation fleets. The company’s
Constellation business unit provides energy products and services
to more than 2.5 million residential, public sector and business
customers, including more than two-thirds of the Fortune 100.
Exelon’s utilities deliver electricity and natural gas to more than
7.8 million customers in central Maryland (BGE), northern Illinois
(ComEd) and southeastern Pennsylvania (PECO). Follow Exelon on
Twitter @Exelon.
About Pepco Holdings Inc.
Pepco Holdings Inc. is one of the largest energy delivery
companies in the Mid-Atlantic region, serving about 2 million
customers in Delaware, the District of Columbia, Maryland and New
Jersey. PHI subsidiaries Pepco, Delmarva Power and Atlantic City
Electric provide regulated electricity service; Delmarva Power also
provides natural gas service. PHI also provides energy efficiency
and renewable energy services through Pepco Energy Services. For
more information, visit online: www.pepcoholdings.com.
Cautionary Statements Regarding Forward-Looking
Information
Except for the historical information contained herein, certain
of the matters discussed in this communication constitute
“forward-looking statements” within the meaning of the Securities
Act of 1933 and the Securities Exchange Act of 1934, both as
amended by the Private Securities Litigation Reform Act of 1995.
Words such as “may,” “might,” “will,” “should,” “could,”
“anticipate,” “estimate,” “expect,” “predict,” “project,” “future,”
“potential,” “intend,” “seek to,” “plan,” “assume,” “believe,”
“target,” “forecast,” “goal,” “objective,” “continue” or the
negative of such terms or other variations thereof and words and
terms of similar substance used in connection with any discussion
of future plans, actions, or events identify forward-looking
statements. These forward-looking statements include, but are not
limited to, statements regarding benefits of the proposed merger,
integration plans and expected synergies, the expected timing of
completion of the transaction, anticipated future financial and
operating performance and results, including estimates for growth.
These statements are based on the current expectations of
management of Exelon Corporation (Exelon) and Pepco Holdings, Inc.
(PHI), as applicable. There are a number of risks and uncertainties
that could cause actual results to differ materially from the
forward-looking statements included in this communication. For
example, (1) the uncertainty surrounding reconsideration of the
denial of the Merger application by the DC Public Service
Commission may delay the merger or cause the companies to abandon
the merger; (2) conditions to the closing of the merger may not be
satisfied; (3) problems may arise in successfully integrating the
businesses of the companies, which may result in the combined
company not operating as effectively and efficiently as
expected; (4) the combined company may be unable to achieve
cost-cutting synergies or it may take longer than expected to
achieve those synergies; (5) the merger may involve unexpected
costs, unexpected liabilities or unexpected delays, or the effects
of purchase accounting may be different from the companies’
expectations; (6) the credit ratings of the combined company or its
subsidiaries may be different from what the companies
expect; (7) the businesses of the companies may suffer as a
result of uncertainty surrounding the merger; (8) the companies may
not realize the values expected to be obtained for properties
expected or required to be sold; (9) the industry may be subject to
future regulatory or legislative actions that could adversely
affect the companies; and (10) the companies may be adversely
affected by other economic, business, and/or competitive factors.
Other unknown or unpredictable factors could also have material
adverse effects on future results, performance or achievements of
the combined company. Therefore, forward-looking statements are not
guarantees or assurances of future performance, and actual results
could differ materially from those indicated by the forward-looking
statements. Discussions of some of these other important factors
and assumptions are contained in Exelon’s and PHI’s respective
filings with the Securities and Exchange Commission (SEC), and
available at the SEC’s website at www.sec.gov, including: (1)
Exelon’s 2014 Annual Report on Form 10-K in (a) ITEM 1A. Risk
Factors, (b) ITEM 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations and (c) ITEM 8.
Financial Statements and Supplementary Data: Note 22; (2) Exelon’s
Third Quarter 2015 Quarterly Report on Form 10-Q in (a) Part II,
Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial
Information, ITEM 2. Management’s Discussion and Analysis of
Financial Condition and Results of Operations and (c) Part I,
Financial Information, ITEM 1. Financial Statements: Note 19; (3)
the definitive proxy statement that PHI filed with the SEC on
August 12, 2014 and mailed to its stockholders in connection with
the proposed merger (as supplemented by PHI’s Form 8-K filed with
the SEC on September 12, 2014); (4) PHI’s 2014 Annual Report on
Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s
Discussion and Analysis of Financial Condition and Results of
Operations and (c) ITEM 8. Financial Statements and Supplementary
Data: Note 15; and (5) PHI’s Third Quarter 2015 Quarterly Report on
Form 10-Q in (a) PART I, ITEM 1. Financial Statements, (b) PART I,
ITEM 2. Management’s Discussion and Analysis of Financial Condition
and Results of Operations, and (c) Part II, Other Information, ITEM
1A. Risk Factors. In light of these risks, uncertainties,
assumptions and factors, the forward-looking events discussed in
this communication may not occur. Readers are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date of this communication. Neither Exelon nor
PHI undertakes any obligation to publicly release any revision to
its forward-looking statements to reflect events or circumstances
after the date of this communication. New factors emerge from time
to time, and it is not possible for Exelon or PHI to predict all
such factors. Furthermore, it may not be possible to assess the
impact of any such factor on Exelon’s or PHI’s respective
businesses or the extent to which any factor, or combination of
factors, may cause results to differ materially from those
contained in any forward-looking statement. Any specific factors
that may be provided should not be construed as exhaustive.
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version on businesswire.com: http://www.businesswire.com/news/home/20160201005717/en/
ExelonPaul Elsberg, 312-394-7417orPepco HoldingsVince Morris,
202-872-2680
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