Pepco Holdings
| Company type | Public |
|---|---|
| Industry | Electric power |
| Founded | February 2001 |
| Headquarters | Washington, D.C. , United States |
Area served | Mid-Atlantic states (Washington, D.C., Maryland, Delaware, New Jersey) |
| Products | Electric power distribution and generation |
| Website | pepcoholdings |
Pepco Holdings was established as a holding company in February 2001 to enable the purchase of Conectiv Power Delivery by Potomac Electric Power Company ("Pepco"). This acquisition was finalized on August 1, 2002, resulting in Pepco and Conectiv becoming wholly owned subsidiaries of PHI. Created in 1998, Conectiv served as the holding entity for Delmarva Power & Light Company ("Delmarva Power") and Atlantic City Electric Company (ACE) after their merger. By 2005, PHI reinstated the Delmarva Power and ACE names for its operations, with Conectiv Energy remaining the exclusive Conectiv brand for PHI’s power generation assets.
Pepco Holdings' primary operations were concentrated in the Mid-Atlantic states, with Pepco providing service to Washington, D.C. and surrounding Maryland suburbs, Delmarva Power operating in Delaware and the Maryland sections of the Delmarva Peninsula, and Atlantic City Electric serving South Jersey. In 2008, Delmarva Power divested its Virginia service territory to A&N Electric Cooperative and Old Dominion Electric Cooperative for $44 million. Later, in April 2010, Conectiv Energy was sold to Calpine Corporation.
In 2006, Pepco Holdings ranked 283rd on the Fortune 500 list based on gross revenue. The company experienced a notable decrease in tax payments by 2010, remitting only $11 million compared to $104 million the year before. Operating profits doubled in 2011, supported by authorized utility rate hikes across Delaware, Maryland, New Jersey, and Washington, D.C.
Merger with Exelon
On April 30, 2014, Exelon announced plans to acquire Pepco Holdings, Inc. Although the District of Columbia Public Service Commission initially denied approval in August 2015, other federal and state regulatory bodies granted their consent. Subsequently, on March 23, 2016, the District of Columbia Public Service Commission approved the deal under modified conditions, and the merger was finalized on that same date.
Criticism
In December 2011, the nonpartisan group Public Campaign criticized Pepco Holdings for allocating $3.76 million toward lobbying efforts while paying zero taxes between 2008 and 2010. During this timeframe, despite generating $882 million in profits and receiving $508 million in tax rebates, the company increased executive pay by 118%, with total compensation reaching $9.7 million for its top five executives in 2010.
Restatement
In 2006, Pepco Holdings revised its consolidated financial reports for the three- and six-month periods ending June 30, 2005, to address inaccuracies related to certain deferred compensation plans.