Noting that the completed transaction with Pepco Holdings confirms Exelon’s role as a leader in the industry, Exelon President and CEO Christopher Crane on May 6 said that the company serves 10 million customers and will spend nearly $23 billion in capital across its utilities and generating business over the next three years.
As TransmissionHub reported, following the approval of their proposed merger by District of Columbia regulators earlier on March 23, Exelon and Pepco Holdings announced later the same day that they have completed their merger transaction.
Speaking during the company’s 1Q16 earnings call, Crane noted that Exelon is “excited to have Pepco utilities part of the Exelon family. We know this has been a long journey and it took much longer than any of us anticipated, but we appreciate the patience of our investors as we pursued the merger.”
He also expressed appreciation for the company’s employees and stakeholders who supported the deal.
“While we’re still in the early stages of integrating PHI, PHI’s earnings outlook is consistent [with], if not better than, what we showed you at EEI,” Crane said. “It brings meaningful benefits to our customers, communities in Delaware, District of Columbia, Maryland, New Jersey, including bill credits and reliability investments. More than $500 million in total commitments have been made and will be achieved due to this merger. We’re now focused on integrating Pepco into Exelon. We will bring our management model and our best practices to improve the experience of our customers.”
Also speaking during the call was Jonathan (Jack) Thayer, Exelon senior vice president and CFO, who noted that to meet growth targets, the company is going to be busy on the regulatory front. The PHI utilities have been out of rate cases for at least two years but continued to invest $800 million per year to improve reliability and customer service, he said.
By 3Q16, Exelon plans to file distribution cases in all of PHI’s jurisdictions and expects decisions in all cases by the middle of next year. Atlantic City Electric and Pepco in Maryland have already filed rate cases, he said, adding that Atlantic City Electric filed an electric distribution base rate case in March with New Jersey state regulators, requesting an $84 million revenue increase and a 10.6 percent return on equity. That filing also included PowerAhead, a five-year, $176 million grid resiliency plan, Thayer said.
In April, Pepco requested a rate increase of $127 million with Maryland state regulators, including smart meter recovery and a two-year, $32 million grid resiliency plan, he said.