For Immediate Release
For Immediate ReleaseApril 27, 2000
DividendsPotomac Electric Power Company's Board of Directors today declared a quarterly dividend on common stock of 41.5 cents per share payable June 30, 2000, to shareholders of record on June 12, 2000. Dividends on preferred stock were declared payable June 1, 2000, to shareholders of record on May 8, 2000.
Earnings Per Share
Three Months Ended
Twelve Months Ended
Recurring Utility Operations
Non-Recurring Utility Items
Contract Termination Fee
Preferred Stock Redemption Premium/Expense
Total Non-Recurring Utility Items
Net Utility Operations
Pepco Energy Services Operations
Total PHI Operations
Pepco Consolidated Earnings
Quarterly ResultsPepco (NYSE: POM) today reported revenue from the sale of electricity was relatively unchanged for the three months ended March 31, 2000, compared with the corresponding period in 1999. A slight increase in customer growth and an additional day of operations due to the Leap Year was offset by milder weather during the first quarter.
Consolidated earnings were 7 cents per share for the three months ended March 31, 2000, compared with consolidated earnings per share of 8 cents in the year-ago period, excluding the impact of 12 cents per share in earnings from a non-recurring utility item. The 7-cent per share first-quarter earnings consisted of 2 cents per share from recurring utility operations and 5 cents per share from the operations of its non-regulated subsidiary, Pepco Holdings, Inc. The consolidated earnings per share of 8 cents for the corresponding period in 1999 included a contribution of 4 cents per share from recurring utility operations and 4 cents per share from the subsidiary operations.
The first-quarter decrease in recurring utility earnings per share resulted from an increase in depreciation expense and Maryland tax legislation that became effective Jan.1, 2000. Additionally, the impact of 12 cents in earnings per share from the non-recurring item for the three months ended March 31, 1999, results from a contract termination fee to be received from Southern Maryland Electric Cooperative, Inc. in January 2001 under an agreement that became effective Jan.1, 1999. The contract termination fee compensates Pepco for future earnings that would have been received under its previous 10-year, full-service power supply requirements contract. Pepco Energy Services, Inc., signed a four-year agreement commencing Jan. 1, 2001, to meet SMECO's power requirements.
Twelve Months Results Revenue from the sale of electricity increased 1.1 percent for the 12 months ended March 31, 2000, compared to the corresponding period in 1999, due to a 1 percent increase in the company's customer base. Pepco's most recently authorized base rate increase, totaling $19 million, occurred in December 1998 in a settlement agreement with the Maryland Public Service Commission.
Pepco also reported consolidated earnings of $1.88 per share for the 12 months ended March 31, 2000, compared to consolidated earnings per share of $1.91 for the corresponding period in 1999, excluding the net impact of 2 cents per share in earnings resulting from non-recurring utility items. The 12-month 2000 consolidated earnings per share of $1.88 consisted of $1.70 per share from recurring utility operations and 18 cents per share from subsidiary operations. The consolidated earnings per share of $1.91 cents in the same period a year ago included a contribution of $1.80 per share from recurring utility operations and 11 cents per share from subsidiary operations.
The utility earnings decrease in the 12-month period ended March 31, 2000 resulted from increases in capacity costs, operating & maintenance, and depreciation expenses. The net impact of 2 cents in earnings per share from the non-recurring items resulted from a 12-cent addition related to the SMECO transaction, offset by reductions of 6 cents related to premiums paid in connection with the redemption of serial preferred stock and 4 cents associated with Pepco's targeted employee severance plan.
The 7-cent increase in PHI's earnings for the 12 months ended March 31, compared to the corresponding period in 1999 is comprised of a 12-cent increase in PCI`s earnings per share over the period, offset by a 5-cent increase in Pepco Energy Services` loss per share. The 12-cent increase in PCI`s earnings per share comes primarily from tax benefits associated with the completion of a restructuring transaction related to a partnership that resulted in PCI`s recording $18.7 million in income in June 1999. Additionally, the increase in PCI's earnings per share over the 12-month period results from the timing of its transactions. The 5-cent increase in Pepco Energy Services` loss per share over the 12-month period results from an increase in costs incurred to build up its infrastructure in preparation for customer choice, which begins July 1 in Maryland.
PepcoPepco is engaged in regulated utility operations and in diversified, competitive energy and telecommunications businesses through its wholly owned nonregulated subsidiary, Pepco Holdings, Inc. PHI was created in 1999 as the parent company of its two wholly owned subsidiaries, Potomac Capital Investment Corporation and Pepco Energy Services, Inc. PCI manages a diversified portfolio of financial investments and provides telecommunication services and utility industry-related services. Pepco Energy Services provides non-regulated energy and energy related services, including electricity, natural gas, equipment retrofits, equipment operation and maintenance, and fuel management.
Pepco and SubsidiariesSelected Consolidated Financial Information
Three Months Ended March 31, 2000
(Millions of Dollars)
(Loss) Income from Equity Investments, principallyTelecommunication Entities
Pre-tax Income (Loss)
Distributions on Preferred Securities of
Income Tax Expense (Benefit)
Net Income (Loss)
Dividends on Preferred Stock
Earnings (Loss) Available for Common Stock
Three Months Ended March 31, 1999
Loss from Equity Investments, principallyTelecommunication Entities
Net Income (Loss)
Dividends on Preferred Stock
Twelve Months Ended March 31, 2000
Redemption Expense on Preferred Stock
Twelve Months Ended March 31, 1999
Redemption Premium on Preferred Stock
Point of Contact:Robert Dobkin