For Immediate Release
(Nov. 2, 2015) - In testimony filed Friday with the Public Service
Commission of the District of Columbia (PSC), Pepco Holdings Inc. (NYSE: POM)
and Exelon Corporation (NYSE: EXC) detailed the substantially enhanced benefits
their merger settlement with the Government of the District of Columbia and others
will provide to District residents, including $72.8 million in direct benefits
The PSC on Oct. 28 reopened the
record to consider the settlement and set a schedule that would allow the
commission to issue a decision in the first quarter of 2016.
The testimony describes a package
of benefits including commitments to provide bill credits, low-income customer assistance,
fewer and shorter outages, a cleaner and greener D.C., and investment in local
jobs and the local economy.
Among those who signed the
settlement agreement are the mayor and the director of the Department of Energy
and Environment of the District of Columbia. Also signing on to the settlement were
the Office of the People's Counsel and the Office of the Attorney General of the
District of Columbia, the
Apartment and Office Building Association of Metropolitan Washington, the
District of Columbia Water and Sewer Authority, the National Consumer Law
Center and the National Housing Trust. All settling parties also filed detailed
look forward to the opportunity to discuss the new commitments, which more than
double direct benefits to customers in the District of Columbia," said David M.
Velazquez, executive vice president of Power Delivery for Pepco Holdings, who submitted
testimony and will become CEO of Pepco after the merger. "The new package has
broad support from community and government leaders, including a majority of
the District Council."
members of the Council recently submitted a letter to the PSC urging it
to approve the merger in light of the settlement.
increase in the absolute size of the Customer Investment Fund … together with
other forms of direct financial support, such as the commitment to furnish $5.2
million for workforce development and $19 million over 10 years in guaranteed
charitable giving, ensures that Pepco's customers in the District will receive
a direct and tangible benefit from the completion of the merger," said Carim
Khouzami, senior vice president of Exelon and chief integration officer for the
merger, in his testimony.
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
regulated electricity service; Delmarva Power also
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
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.
Pepco HoldingsMyra Oppel202-872-2680