Pepco Holdings arguably has more power in the US capital than any politician. The holding company distributes electricity and natural gas through its Potomac Electric Power (Pepco), Delmarva Power & Light, and Atlantic City Electric utilities to about 2 million customers in Delaware, Maryland, New Jersey, and Washington, DC. None of the company's three utilities have power generation plants. Nonregulated operations include energy efficiency consultation and renewable energy services for institutional and government clients, through the company's Pepco Energy Services unit.
Pepco Holdings primarily serves customers in Delaware, Maryland, New Jersey, and Washington, DC.
PHI subsidiaries provide regulated power delivery, and non-regulated energy and other services through its subsidiaries. Pepco, Delmarva Power, and Atlantic City Electric provide regulated electricity services (Delmarva Power also provides natural gas service). Pepco Energy Services provides energy efficiency and renewable energy services.
A $489 million drop in default electricity supply revenues (due mainly to customer migration to competitive suppliers and lower supply rates) led to a 16% drop in Pepco Holding's overall revenues in 2012. However, net income jumped by more the 700%, thanks largely to lower fuel and purchased energy costs and the absence of the debt-related losses that it carried in 2010.
Pepco Holdings' flexible business strategy allows it to develop opportunities for growth or operational streamlining in both its regulated and unregulated segments.
Growing its renewable portfolio to meet tightening carbon emission regulations, in 2012 Delmarva Power announced that it will get 38 MW of wind energy and associated renewable energy credits from enXco's Chestnut Flats wind farm in Pennsylvania.
In 2010 Pepco Holdings sold its Conectiv Energy power plant assets to Calpine for about $1.7 billion. The deal moved Pepco Holdings out of the merchant power business to free up cash, and allowed the company to focus on its core regulated energy distribution businesses.
Pepco Holdings, formerly named Potomac Electric Power, changed its name by forming a holding company in 2002; the name change took effect upon the completion of Pepco's acquisition of rival utility Conectiv (now Delmarva Power & Light). – less