WASHINGTON -- (Business Wire)
Pepco Holdings, Inc. (NYSE: POM) today reported third quarter and nine
months ended September 30, 2014 earnings from continuing operations as
follows:
|
| |
| |
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 |
| 2013 | | 2014 |
| 2013 |
Net Income from Continuing Operations (GAAP) | | | | | | | | |
Net Income ($ in millions)
| |
$
|
79
| |
$
|
110
| |
$
|
207
| |
$
|
52
|
Earnings Per Share
| |
$
|
0.31
| |
$
|
0.44
| |
$
|
0.82
| |
$
|
0.21
|
| | | | | | | |
|
Adjusted Net Income from Continuing Operations (Non-GAAP) | | | | | | | | |
Adjusted Net Income ($ in millions)
| |
$
|
116
| |
$
|
110
| |
$
|
262
| |
$
|
219
|
Adjusted Earnings Per Share
| |
$
|
0.46
| |
$
|
0.44
| |
$
|
1.04
| |
$
|
0.90
|
| | | | | | | |
|
“Our third quarter results and reliability metrics continue to reflect
the positive impact of our investments in the electric system across our
jurisdictions. Over the next five years, we expect to spend $6.6 billion
on additional investments to further improve reliability and customer
service which will include replacing aging infrastructure and installing
advanced technologies,” said Joseph M. Rigby, Chairman, President and
Chief Executive Officer. “We look forward to continued progress on our
strategic goals of system reliability and customer satisfaction as we
move forward with our pending merger with Exelon.” Rigby added,
“Important milestones were reached when our shareholders voted to
approve the proposed transaction in the third quarter, and the Virginia
State Corporation Commission provided its approval of the merger on
October 7. Work continues with Exelon on obtaining the remaining
regulatory approvals.”
Pepco Holdings’ GAAP net income from continuing operations for the three
months ended September 30, 2014 was $79 million, or 31 cents per share,
as compared to $110 million or 44 cents per share, for the same quarter
in the prior year. Excluding items that we believe are not
representative of ongoing business operations, adjusted net income from
continuing operations for the third quarter of 2014 would have been $116
million, or 46 cents per share. There were no adjustments to GAAP
earnings in the third quarter of 2013.
The increase in adjusted net income from continuing operations
(Non-GAAP) in the third quarter of 2014, as compared to the 2013 third
quarter, was driven by higher electric distribution revenue (primarily
due to higher rates from increased infrastructure investment) and
benefits received from tax deductions associated with Pepco Energy
Services energy efficiency projects. Partially offsetting these positive
factors were higher operation and maintenance expense and higher
depreciation expense.
For the nine months ended September 30, 2014, Pepco Holdings’ GAAP net
income from continuing operations was $207 million, or 82 cents per
share, as compared to $52 million, or 21 cents per share, for the nine
months ended September 30, 2013. Excluding items that we believe are not
representative of ongoing business operations, adjusted net income from
continuing operations for the nine months ended September 30, 2014 would
have been $262 million, or $1.04 per share, as compared to $219 million,
or 90 cents per share, for the same period in the prior year.
The primary drivers of the increase in adjusted net income from
continuing operations (Non-GAAP) for the nine months ended September 30,
2014, as compared to the 2013 period, were higher electric distribution
and transmission revenue (primarily due to higher rates from increased
infrastructure investment), partially offset by higher depreciation
expense and lower income tax benefits (due to a favorable income tax
adjustment in 2013).
Non-GAAP Financial Information
Management believes the adjusted net income from continuing operations
and related per share data (both as historical financial information and
earnings guidance) are representative of Pepco Holdings’ ongoing
business operations. Management uses this information internally to
evaluate Pepco Holdings’ period-over-period financial performance and,
therefore, believes that this information is useful to investors. The
presentation of adjusted net income from continuing operations and
related per share data is intended to complement, and should not be
considered as an alternative to, reported earnings and related per share
data presented in accordance with generally accepted accounting
principles in the United States (GAAP).
Reconciliation of GAAP Financial Information to
Adjusted Financial Information
|
| |
| |
Net Income from Continuing Operations (Millions of dollars) | |
Three Months Ended September 30,
| |
Nine Months Ended September 30,
|
| | |
2014
|
|
2013
| |
2014
|
|
2013
|
Reported (GAAP) Net Income from Continuing Operations
| |
$
|
79
|
|
$
|
110
| |
$
|
207
|
|
$
|
52
|
Adjustments (after-tax):
| | | | | | | | | | |
|
--
|
Incremental merger-related transaction costs
| |
|
3
| |
|
–
| |
|
17
| |
|
–
|
|
--
|
Incremental merger-related integration costs
| | |
2
| | |
–
| | |
6
| | |
–
|
|
--
|
Impairment loss related to Pepco Energy Services (PES) long-lived
assets
| | |
32
| | |
–
| | |
32
| | |
–
|
|
--
|
Potomac Capital Investment Corporation (PCI) valuation allowances
related to certain deferred tax assets
| | |
–
| | |
–
| | |
–
| | |
101
|
|
--
|
Interest associated with change in assessment of corporate tax
benefits related to the cross-border energy lease investments
| |
|
–
|
|
|
–
| |
|
–
|
|
|
66
|
Adjusted Net Income from Continuing Operations (Non-GAAP)
| |
$
|
116
|
|
$
|
110
| |
$
|
262
|
|
$
|
219
|
| |
| |
| |
Earnings per Share from Continuing Operations | |
Three Months Ended September 30,
| |
Nine Months Ended September 30,
|
| | |
2014
|
|
2013
| |
2014
|
|
2013
|
Reported (GAAP) Earnings per Share from Continuing Operations
| |
$
|
0.31
|
|
$
|
0.44
| |
$
|
0.82
|
|
$
|
0.21
|
Adjustments (after-tax):
| | | | | | | | | | |
|
--
|
Incremental merger-related transaction costs
|
|
|
0.01
|
|
|
–
|
|
|
0.07
|
|
|
–
|
|
--
|
Incremental merger-related integration costs
| |
|
0.01
| | |
–
| | |
0.02
|
|
|
–
|
|
--
|
Impairment loss related to PES long-lived assets
| | |
0.13
| | |
–
| | |
0.13
| | |
–
|
|
--
|
PCI valuation allowances related to certain deferred tax assets
| | |
–
| | |
–
| | |
–
| | |
0.42
|
|
--
|
Interest associated with change in assessment of corporate tax
benefits related to the cross-border energy lease investments
| |
|
–
|
|
|
–
| |
|
–
|
|
|
0.27
|
Adjusted Earnings per Share from Continuing Operations (Non-GAAP)
| |
$
|
0.46
|
|
$
|
0.44
| |
$
|
1.04
|
|
$
|
0.90
|
| | | | | | | | | | | | |
|
The income tax effects with respect to the foregoing adjustments, where
applicable, were calculated using composite income tax rates of 35 to 41
percent. Most merger-related costs are not tax deductible.
Discontinued Operations
Due to the early termination of Pepco Holdings’ cross-border energy
lease investments during 2013, these investments are accounted for as
discontinued operations and are no longer reported as a separate segment
for financial reporting purposes.
In 2013, Pepco Energy Services completed a previously announced
wind-down of its retail energy supply component. As a result, the
operations of PES’ retail electric and natural gas supply businesses are
accounted for as discontinued operations and are no longer a part of the
PES segment for financial reporting purposes.
For the nine months ended September 30, 2014 there was no activity in
discontinued operations, compared to a net loss of $1.31 per share for
the same period in 2013.
Earnings Guidance
Pepco Holdings today narrowed its earnings guidance range for 2014 to
between $1.17 and $1.27 from $1.12 and $1.27 per share. The guidance
range assumes normal weather conditions and excludes:
-
the results of discontinued operations and the impact of any special,
unusual or extraordinary items,
-
the effect of adopting new accounting standards,
-
the effect of changes in tax law,
-
the impairment of assets, and
-
the incremental transaction and integration costs associated with the
planned merger with Exelon.
Recent Events
Pepco Holdings – Exelon Merger
On September 23, 2014, the stockholders of Pepco Holdings approved the
planned merger with Exelon Corporation announced earlier this year. On
October 7, 2014, merger approval was received from the Virginia State
Corporation Commission. Approval applications related to the merger are
pending with the Federal Energy Regulatory Commission, the Delaware
Public Service Commission, the New Jersey Board of Public Utilities
(NJBPU), the District of Columbia Public Service Commission (DCPSC) and
the Maryland Public Service Commission. The Hart-Scott-Rodino
notification was filed in the third quarter of 2014 and in October 2014
Exelon and Pepco Holdings received a request for additional information
from the Department of Justice. Following receipt of the required
approvals, the parties anticipate closing the transaction in the second
or third quarter of 2015.
Operations
-
Power Delivery electric sales were 12,780 gigawatt hours (GWh) in the
third quarter of 2014, compared to 13,335 GWh for the same period in
2013. In the electric service territory, cooling degree days decreased
by 4 percent for the three months ended September 30, 2014, compared
to the same period in 2013. Weather-adjusted electric sales were
12,984 GWh in the third quarter of 2014, compared to 13,439 GWh for
the same period in the prior year.
-
Power Delivery electric sales were 36,219 GWh for the nine months
ended September 30, 2014 compared to 36,412 GWh for the nine months
ended September 30, 2013. In the electric service territory, cooling
degree days decreased by 4 percent and heating degree days increased
by 9 percent for the nine months ended September 30, 2014 compared to
the same period in 2013. Weather-adjusted electric sales were 35,929
GWh for the nine months ended September 30, 2014 compared to 36,464
GWh for the same period in 2013.
-
As of September 30, 2014, Pepco’s and Delmarva Power’s installation
and activation of smart meters in their District of Columbia, Maryland
and Delaware service territories are complete. Recovery of smart meter
costs in electric distribution base rates has begun in the District of
Columbia and Delaware. Regulatory assets associated with smart meter
installation and activation in Maryland have been created.
-
A Peak Energy Savings program initially launched in June 2013 was
continued in the Pepco Maryland and Delmarva Power Delaware service
areas in 2014. A phase-in of approximately five thousand customers was
conducted in the Delmarva Power Maryland service area in 2014. Three
events were conducted in Pepco Maryland and two events were held in
both the Delmarva Power Delaware and Maryland jurisdictions. During
the events, the participating customers earned approximately $5
million in bill credits while reducing electric usage an estimated
three million kilowatt hours.
-
In October 2014, Power Delivery updated its forecast of capital
expenditures through 2019. Total Power Delivery capital expenditures
for the five year period are forecast to be $6.6 billion, with $4.6
billion planned for distribution capital expenditures and $2 billion
planned for transmission capital expenditures.
-
At September 30, 2014, PES recorded an impairment loss of $53 million
($32 million after-tax) associated with its combined heat and power
thermal generating plant and operation in Atlantic City as a result of
significant adverse changes in the financial condition of its
customers and the business climate. The impairment reduced the
carrying amount of PES' long-lived assets in Atlantic City from $83
million to $30 million.
-
During the nine months ended September 30, 2014, PES signed $33
million in energy efficiency contracts and $53 million in underground
transmission construction contracts. PES signed $38 million in energy
efficiency contracts and $41 million in underground transmission
construction contracts for the same period in 2013.
Regulatory Matters
-
On October 22, 2014, the NJBPU issued an order continuing the
Consolidated Tax Adjustment (CTA) policy for affected consolidated
groups in utility base rate case filings. The calculation will be
modified to limit the look-back period to five years, exclude
transmission assets and limit the impact to the distribution revenue
requirement to 25 percent of the final CTA amount. The revised
methodology will significantly reduce the effects of the CTA in future
electric distribution base rate cases filed by Atlantic City Electric.
-
On August 20, 2014, the NJBPU approved a settlement agreement signed
by the parties to Atlantic City Electric’s electric distribution base
rate case. The settlement provides for an annual increase in electric
distribution base rates by the net amount of $19 million, based on a
9.75 percent return on equity. The new rates were effective September
1, 2014.
-
On August 1, 2014, Pepco and the District of Columbia Department of
Transportation jointly filed an application with the DCPSC for
approval of the financing order and related surcharge for the District
of Columbia power line undergrounding project. The order would
authorize the District to issue up to $375 million of bonds to fund
the majority of its portion of the underground project and would
establish a surcharge that will repay the cost of the bonds. The
legislation for the public-private partnership to underground up to 60
high-voltage lines became law on May 3, 2014. The DCPSC is expected to
approve the triennial plan (filed in June 2014), and the financing and
surcharge applications associated with the legislation in the fourth
quarter of 2014.
Financing
-
On August 25, 2014, Atlantic City Electric issued $150 million of
10-year first mortgage bonds. The bonds bear interest at a fixed rate
of 3.375 percent and are due on September 1, 2024. The net proceeds
were used to repay maturing secured medium term notes, outstanding
commercial paper (including commercial paper used to repay Atlantic
City Electric’s $100 million term loan on August 21, 2014) and for
general corporate purposes.
Further details regarding changes in consolidated earnings between 2014
and 2013 are provided in the schedules that follow. Additional
information regarding financial results and recent regulatory events can
be found in the Pepco Holdings, Inc. Form 10-Q for the quarter ended
September 30, 2014, as filed with the Securities and Exchange
Commission, and which is also available at www.pepcoholdings.com/investors.
Pepco Holdings, Inc. routinely makes available this and other important
information on its website, which is a key channel of distribution for
Pepco Holdings, Inc. to reach its public investors and to disclose
material, non-public information. Information on the website is not part
of this news release.
About PHI: Pepco Holdings, Inc. (NYSE: POM) 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 City
Electric provide regulated electricity service; Delmarva Power also
provides natural gas service. Through Pepco Energy Services, PHI also
provides energy savings performance contracting services, underground
transmission and distribution construction and maintenance services, and
steam and chilled water under long-term contracts.
Forward-Looking Statements: Some of the statements contained in
this news release with respect to Pepco Holdings, Pepco, Delmarva Power
and Atlantic City Electric, including each of their respective
subsidiaries (each, a “Reporting Company”), are forward-looking
statements within the meaning of the U.S. federal securities laws, and
are subject to the safe harbor created thereby under the Private
Securities Litigation Reform Act of 1995. You can identify
forward-looking statements by terminology such as “may,” “might,”
“will,” “should,” “could,” “expects,” “intends,” “assumes,” “seeks to,”
“plans,” “anticipates,” “believes,” “projects,” “estimates,” “predicts,”
“potential,” “future,” “goal,” “objective,” or “continue” or the
negative of such terms or other variations thereof or comparable
terminology, or by discussions of strategy that involve risks and
uncertainties. Forward-looking statements involve estimates,
assumptions, known and unknown risks, uncertainties and other factors
that may cause one or more Reporting Company’s or their subsidiaries’
actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity,
performance or achievements expressed or implied by such forward-looking
statements. 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. These
factors should be read together with the risk factors included in the
“Risk Factors” section and other statements contained in each Reporting
Company’s Annual Report on Form 10-K for the year ended December 31,
2013, filed with the Securities and Exchange Commission on February 28,
2014, and in each Reporting Company’s Quarterly Reports on Form 10-Q for
the quarter ended September 30, 2014, and investors should refer to
these risk factor sections and other statements. All of such factors and
forward-looking statements are difficult to predict, contain
uncertainties, are beyond each Reporting Company’s control and may cause
actual results to differ materially from those contained in any
forward-looking statements. Any forward-looking statements speak only as
to the date this news release was issued, and none of the Reporting
Companies undertakes any obligation to update any forward-looking
statements to reflect events or circumstances after the date on which
such statements are made or to reflect the occurrence of unanticipated
events. New factors emerge from time to time, and it is not possible for
a Reporting Company to predict all such factors. Furthermore, it may not
be possible to assess the impact of any such factor on such Reporting
Company’s or its subsidiaries’ business (viewed independently or
together with the business or businesses of some or all of the other
Reporting Companies or their subsidiaries) 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 Holdings, Inc. |
Earnings Per Share Variance |
2014 / 2013 | |
| | | |
| |
| |
|
|
| |
| | | | | Three Months Ended September 30, |
| | | | | | | | | |
| |
| | | | | Power | | Pepco Energy | | Corporate | | Total |
| | | | | Delivery |
| Services |
| and Other |
| PHI |
2013 Earnings (loss) per share from Continuing Operations (GAAP)
(1) | | $ | 0.46 | | | $ | - | | | $ | (0.02 | ) | | $ | 0.44 | |
| | | | |
|
|
|
|
|
|
|
| | | | | | | | | | |
|
Change from 2013 earnings (loss) per
share from Continuing Operations | | | | | | | | |
Regulated Operations
| | | | | | | | |
|
--
|
Distribution Revenue
| | | | | | | | |
| |
-
|
Weather (estimate) (3) | |
(0.01
|
)
| |
-
| | |
-
| | |
(0.01
|
)
|
| |
-
|
Rate Increases
| |
0.04
| | |
-
| | |
-
| | |
0.04
| |
| |
-
|
Other Distribution Revenue
| |
0.02
| | |
-
| | |
-
| | |
0.02
| |
|
--
|
Network Transmission Revenue
| |
0.01
| | |
-
| | |
-
| | |
0.01
| |
|
--
|
ACE Basic Generation Service (primarily unbilled revenue)
| |
0.01
| | |
-
| | |
-
| | |
0.01
| |
|
--
|
Operation & Maintenance
| |
(0.05
|
)
| |
-
| | |
-
| | |
(0.05
|
)
|
|
--
|
Depreciation & Amortization
| |
(0.03
|
)
| |
-
| | |
-
| | |
(0.03
|
)
|
|
--
|
Other, net
| |
0.01
| | |
-
| | |
-
| | |
0.01
| |
Pepco Energy Services
| |
-
| | |
0.01
| | |
-
| | |
0.01
| |
Corporate and Other
| |
-
| | |
-
| | |
-
| | |
-
| |
Income Tax Adjustments
| |
-
| | |
0.02
| | |
-
| | |
0.02
| |
Dilution
| |
(0.01
|
)
|
|
-
|
|
|
-
|
|
|
(0.01
|
)
|
| | | | | | | |
|
2014 Adjusted earnings (loss) per share from Continuing Operations
(Non-GAAP)
| |
0.45
| | |
0.03
| | |
(0.02
|
)
| |
0.46
| |
| | | | | | | |
|
2014 Adjustments (2) | | | | | | | | |
|
--
|
Incremental merger-related transaction costs
| |
-
| | |
-
| | |
(0.01
|
)
| |
(0.01
|
)
|
|
--
|
Incremental merger-related integration costs
| |
(0.01
|
)
| |
-
| | |
-
| | |
(0.01
|
)
|
|
--
|
Impairment loss related to PES long-lived assets
| |
-
|
|
|
(0.13
|
)
|
|
-
|
|
|
(0.13
|
)
|
| | | | | | | | | | | |
|
2014 Earnings (loss) per share from Continuing Operations (GAAP)
(4) | | $ | 0.44 |
|
| $ | (0.10 | ) |
| $ | (0.03 | ) |
| $ | 0.31 |
|
|
| |
(1)
| |
The 2013 weighted average number of diluted shares outstanding was
249 million.
|
| |
|
(2)
| |
Management believes the adjusted items are not representative of the
Company's ongoing business operations. The presentation of this
Non-GAAP financial information is intended to complement, and should
not be considered an alternative to, the GAAP information.
|
| |
|
(3)
| |
The effect of weather compared to the 20-year average weather is
estimated to have decreased earnings by $0.02 per share.
|
| |
|
(4)
| |
The 2014 weighted average number of diluted shares outstanding was
252 million.
|
| |
| Pepco Holdings, Inc. |
| Earnings Per Share Variance |
| 2014 / 2013 | |
| | | |
| |
| |
|
|
| |
| | | | | Nine Months Ended September 30, |
| | | | | | | | | |
| |
| | | | | Power | | Pepco Energy | | Corporate | | Total |
| | | | | Delivery |
| Services |
| and Other |
| PHI |
2013 Earnings (loss) per share from Continuing Operations (GAAP)
(1) | | $ | 0.93 | | | $ | 0.01 | | | $ | (0.73 | ) | | $ | 0.21 | |
| | | | | | | | | | |
|
2013 Adjustments (2) | | | | | | | | |
|
--
|
Interest associated with change in assessment of corporate tax
benefits related to the cross-border energy lease investments
| |
-
| | |
-
| | |
0.27
| | |
0.27
| |
|
--
|
PCI valuation allowances related to certain deferred tax assets
| |
-
|
|
|
-
|
|
|
0.42
|
|
|
0.42
|
|
| | | | | | | | | | |
|
2013 Adjusted earnings (loss) per share from Continuing Operations
(Non-GAAP)
| |
0.93
| | |
0.01
| | |
(0.04
|
)
| |
0.90
| |
| | | | | | | | | | |
|
Change from 2013 Adjusted earnings (loss)
per share from Continuing Operations | | | | | | | | |
Regulated Operations
| | | | | | | | |
|
--
|
Distribution Revenue
| | | | | | | | |
| |
-
|
Weather (estimate) (3) | |
-
| | |
-
| | |
-
| | |
-
| |
| |
-
|
Rate Increases
| |
0.16
| | |
-
| | |
-
| | |
0.16
| |
| |
-
|
Other Distribution Revenue
| |
0.05
| | |
-
| | |
-
| | |
0.05
| |
|
--
|
Network Transmission Revenue
| |
0.04
| | |
-
| | |
-
| | |
0.04
| |
|
--
|
Operation & Maintenance
| |
0.01
| | |
-
| | |
-
| | |
0.01
| |
|
--
|
Depreciation & Amortization
| |
(0.07
|
)
| |
-
| | |
-
| | |
(0.07
|
)
|
|
--
|
Other, net
| |
0.01
| | |
-
| | |
-
| | |
0.01
| |
Pepco Energy Services
| |
-
| | |
-
| | |
-
| | |
-
| |
Corporate and Other
| |
-
| | |
-
| | |
(0.01
|
)
| |
(0.01
|
)
|
Income Tax Adjustments
| |
(0.04
|
)
| |
0.02
| | |
-
| | |
(0.02
|
)
|
Dilution
| |
(0.03
|
)
|
|
-
|
|
|
-
|
|
|
(0.03
|
)
|
| | | | | | | | |
|
2014 Adjusted earnings (loss) per share from Continuing Operations
(Non-GAAP)
| |
1.06
| | |
0.03
| | |
(0.05
|
)
| |
1.04
| |
| | | | | | | | |
|
2014 Adjustments (2) | | | | | | | | |
|
--
|
Incremental merger-related transaction costs
| |
-
| | |
-
| | |
(0.07
|
)
| |
(0.07
|
)
|
|
--
|
Incremental merger-related integration costs
| |
(0.02
|
)
| |
-
| | |
-
| | |
(0.02
|
)
|
|
--
|
Impairment loss related to PES long-lived assets
| |
-
|
|
|
(0.13
|
)
|
|
-
|
|
|
(0.13
|
)
|
| | | | | | | | |
|
2014 Earnings (loss) per share from Continuing Operations (GAAP)
(4) | | $ | 1.04 |
|
| $ | (0.10 | ) |
| $ | (0.12 | ) |
| $ | 0.82 |
|
|
| |
(1)
| |
The 2013 weighted average number of diluted shares outstanding was
245 million.
|
| |
|
(2)
| |
Management believes the adjusted items are not representative of the
Company's ongoing business operations. The presentation of this
Non-GAAP financial information is intended to complement, and should
not be considered an alternative to, the GAAP information.
|
| |
|
(3)
| |
The effect of weather compared to the 20-year average weather is
estimated to have had no impact on earnings per share.
|
| |
|
(4)
| |
The 2014 weighted average number of diluted shares outstanding was
252 million.
|
| |
|
SEGMENT INFORMATION
|
| |
| | Three Months Ended September 30, 2014 |
| | (millions of dollars) |
| | Power Delivery |
| Pepco Energy Services |
| Corporate and Other (a) |
| PHI Consolidated |
Operating Revenue
| |
$
|
1,242
| |
$
|
73
| | |
$
|
(2
|
)
| |
$
|
1,313
|
Operating Expenses (b)
| | |
1,021
| | |
126
|
(c)
| | |
–
| | | |
1,147
|
Operating Income (Loss)
| | |
221
| | |
(53
|
)
| | |
(2
|
)
| | |
166
|
Interest Expense
| | |
58
| | |
1
| | | |
9
| | | |
68
|
Other Income
| | |
14
| | |
1
| | | |
–
| | | |
15
|
Income Tax Expense (Benefit)
| | |
65
| | |
(26
|
)
| | |
(5
|
)
| | |
34
|
Net Income (Loss) from Continuing Operations
| | |
112
| | |
(27
|
)
| | |
(6
|
)
| | |
79
|
Total Assets
| | |
13,697
| | |
255
| | | |
1,346
| | | |
15,298
|
Construction Expenditures
| |
$
|
272
| |
$
|
1
| | |
$
|
20
| | |
$
|
293
|
|
| |
(a)
| |
Total Assets in this column includes Pepco Holdings’ goodwill
balance of $1.4 billion, all of which is allocated to Power Delivery
for purposes of assessing impairment. Total assets also include
capital expenditures related to certain hardware and software
expenditures which primarily benefit Power Delivery. These
expenditures are recorded as incurred in Corporate and Other and are
allocated to Power Delivery once the assets are placed in service.
Corporate and Other includes intercompany amounts of $(2) million
for Operating Revenue, $(1) million for Operating Expenses, $(2)
million for Interest Expense and $(2) million for Interest Income.
|
(b)
| |
Includes depreciation and amortization expense of $145 million,
consisting of $135 million for Power Delivery, $2 million for Pepco
Energy Services and $8 million for Corporate and Other.
|
(c)
| |
Includes an impairment loss of $53 million ($32 million after-tax)
at Pepco Energy Services associated with its combined heat and power
thermal generating plant and operation in Atlantic City.
|
|
| |
| | Three Months Ended September 30, 2013 |
| | (millions of dollars) |
| | Power Delivery |
| Pepco Energy Services |
| Corporate and Other (a) |
| PHI Consolidated |
Operating Revenue
| |
$
|
1,298
| |
$
|
48
| | |
$
|
(2
|
)
| |
$
|
1,344
|
Operating Expenses (b)
| | |
1,067
| | |
50
| | | |
(8
|
)
| | |
1,109
|
Operating Income (Loss)
| | |
231
| | |
(2
|
)
| | |
6
| | | |
235
|
Interest Expense
| | |
58
| | |
1
| | | |
9
| | | |
68
|
Other Income (Loss)
| | |
8
| | |
1
| | | |
(1
|
)
| | |
8
|
Income Tax Expense (Benefit)
| | |
67
| | |
(1
|
)
| | |
(1
|
)
| | |
65
|
Net Income (Loss) from Continuing Operations
| | |
114
| | |
(1
|
)
| | |
(3
|
)
| | |
110
|
Total Assets (excluding Assets Held for Disposition)
| | |
12,790
| | |
341
| | | |
1,779
| | | |
14,910
|
Construction Expenditures
| |
$
|
293
| |
$
|
1
| | |
$
|
33
| | |
$
|
327
|
|
| |
(a)
| |
Total Assets in this column includes Pepco Holdings’ goodwill
balance of $1.4 billion, all of which is allocated to Power Delivery
for purposes of assessing impairment. Total assets also include
capital expenditures related to certain hardware and software
expenditures which primarily benefit Power Delivery. These
expenditures are recorded as incurred in Corporate and Other and are
allocated to Power Delivery once the assets are placed in service.
Corporate and Other includes intercompany amounts of $(2) million
for Operating Revenue, $(1) million for Operating Expenses, $(2)
million for Interest Expense and $(2) million for Interest Income.
|
(b)
| |
Includes depreciation and amortization expense of $124 million,
consisting of $116 million for Power Delivery and $8 million for
Corporate and Other.
|
| |
|
SEGMENT INFORMATION – continued
|
| |
| | Nine Months Ended September 30, 2014 |
| | (millions of dollars) |
| | Power Delivery |
| Pepco Energy Services |
| Corporate and Other (a) |
| PHI Consolidated |
Operating Revenue
| |
$
|
3,554
| |
$
|
212
| | |
$
|
(6
|
)
| |
$
|
3,760
|
Operating Expenses (b)
| | |
3,005 7
| | |
263
|
(c)
| | |
2
| | | |
3,270
|
Operating Income (Loss)
| | |
549
| | |
(51
|
)
| | |
(8
|
)
| | |
490
|
Interest Expense
| | |
169
| | |
1
| | | |
30
| | | |
200
|
Other Income
| | |
39
| | |
2
| | | |
1
| | | |
42
|
Income Tax Expense (Benefit)
| | |
157
| | |
(25
|
)
| | |
(7
|
)
| | |
125
|
Net Income (Loss) from Continuing Operations
| | |
262
| | |
(25
|
)
| | |
(30
|
)
| | |
207
|
Total Assets
| | |
13,697
| | |
255
| | | |
1,346
| | | |
15,298
|
Construction Expenditures
| |
$
|
789
| |
$
|
2
| | |
$
|
55
| | |
$
|
846
|
|
| |
(a)
| |
Total Assets in this column includes Pepco Holdings’ goodwill
balance of $1.4 billion, all of which is allocated to Power Delivery
for purposes of assessing impairment. Total assets also include
capital expenditures related to certain hardware and software
expenditures which primarily benefit Power Delivery. These
expenditures are recorded as incurred in Corporate and Other and are
allocated to Power Delivery once the assets are placed in service.
Corporate and Other includes intercompany amounts of $(6) million
for Operating Revenue, $(5) million for Operating Expenses, $(2)
million for Interest Expense and $(3) million for Interest Income.
|
(b)
| |
Includes depreciation and amortization expense of $410 million,
consisting of $381 million for Power Delivery, $6 million for Pepco
Energy Services and $23 million for Corporate and Other.
|
(c)
| |
Includes an impairment loss of $53 million ($32 million after-tax)
at Pepco Energy Services associated with its combined heat and power
thermal generating plant and operation in Atlantic City.
|
|
| |
| | Nine Months Ended September 30, 2013 |
| | (millions of dollars) |
| | Power Delivery |
| Pepco Energy Services |
| Corporate and Other (a) |
| PHI Consolidated |
Operating Revenue
| |
$
|
3,428
| |
$
|
154
| |
$
|
(7
|
)
| |
$
|
3,575
|
Operating Expenses (b)
| | |
2,934
| | |
151
| | |
(23
|
)
| | |
3,062
|
Operating Income
| | |
494
| | |
3
| | |
16
| | | |
513
|
Interest Expense
| | |
172
| | |
1
| | |
32
| | | |
205
|
Other Income
| | |
21
| | |
2
| | |
1
| | | |
24
|
Income Tax Expense (c)
| | |
115
| | |
1
| | |
164
|
(d)
| | |
280
|
Net Income (Loss) from Continuing Operations
| | |
228
| | |
3
| | |
(179
|
)
| | |
52
|
Total Assets (excluding Assets Held for Disposition)
| | |
12,790
| | |
341
| | |
1,779
| | | |
14,910
|
Construction Expenditures
| |
$
|
856
| |
$
|
2
| |
$
|
85
| | |
$
|
943
|
|
| |
(a)
| |
Total Assets in this column includes Pepco Holdings’ goodwill
balance of $1.4 billion, all of which is allocated to Power Delivery
for purposes of assessing impairment. Total assets also include
capital expenditures related to certain hardware and software
expenditures which primarily benefit Power Delivery. These
expenditures are recorded as incurred in Corporate and Other and are
allocated to Power Delivery once the assets are placed in service.
Corporate and Other includes intercompany amounts of $(8) million
for Operating Revenue, $(7) million for Operating Expenses, $(6)
million for Interest Expense and $(7) million for Interest Income.
|
(b)
| |
Includes depreciation and amortization expense of $352 million,
consisting of $327 million for Power Delivery, $4 million for Pepco
Energy Services and $21 million for Corporate and Other.
|
(c)
| |
Includes after-tax interest associated with uncertain and
effectively settled tax positions allocated to each member of the
consolidated group, including a $12 million interest benefit for
Power Delivery and interest expense of $66 million for Corporate and
Other.
|
(d)
| |
Includes non-cash charges of $101 million representing the
establishment of valuation allowances against certain deferred tax
assets of PCI included in Corporate and Other.
|
|
| |
| |
PEPCO HOLDINGS, INC. AND SUBSIDIARIES |
CONSOLIDATED STATEMENTS OF INCOME (LOSS) |
(Unaudited) |
| | | |
|
| | Three Months Ended September 30, | | Nine Months Ended September 30, |
| | 2014 |
| 2013 | | 2014 |
| 2013 |
| | (millions of dollars, except per share data) |
| |
|
Operating Revenue | |
$
|
1,313
| | |
$
|
1,344
| | |
$
|
3,760
| | |
$
|
3,575
| |
| | | | | | | |
|
Operating Expenses | | | | | | | | |
Fuel and purchased energy
| | |
545
| | | |
579
| | | |
1,622
| | | |
1,587
| |
Other services cost of sales
| | |
54
| | | |
37
| | | |
161
| | | |
112
| |
Other operation and maintenance
| | |
242
| | | |
208
| | | |
679
| | | |
647
| |
Depreciation and amortization
| | |
145
| | | |
124
| | | |
410
| | | |
352
| |
Other taxes
| | |
109
| | | |
119
| | | |
315
| | | |
325
| |
Deferred electric service costs
| | |
(1
|
)
| | |
42
| | | |
30
| | | |
39
| |
Impairment loss
| |
|
53
|
| |
|
-
|
| |
|
53
|
| |
|
-
|
|
| | | | | | | |
|
Total Operating Expenses
| |
|
1,147
|
| |
|
1,109
|
| |
|
3,270
|
| |
|
3,062
|
|
| | | | | | | |
|
Operating Income | |
|
166
|
| |
|
235
|
| |
|
490
|
| |
|
513
|
|
| | | | | | | |
|
Other Income (Expenses) | | | | | | | | |
Interest expense
| | |
(68
|
)
| | |
(68
|
)
| | |
(200
|
)
| | |
(205
|
)
|
Other income
| |
|
15
|
| |
|
8
|
| |
|
42
|
| |
|
24
|
|
| | | | | | | |
|
Total Other Expenses
| |
|
(53
|
)
| |
|
(60
|
)
| |
|
(158
|
)
| |
|
(181
|
)
|
| | | | | | | |
|
Income from Continuing Operations Before Income Tax Expense | | |
113
| | | |
175
| | | |
332
| | | |
332
| |
| | | | | | | |
|
Income Tax Expense Related to Continuing Operations | |
|
34
|
| |
|
65
|
| |
|
125
|
| |
|
280
|
|
| | | | | | | |
|
Net Income from Continuing Operations | | |
79
| | | |
110
| | | |
207
| | | |
52
| |
| | | | | | | |
|
Income (Loss) from Discontinued Operations, Net of Income Taxes | |
|
-
|
| |
|
8
|
| |
|
-
|
| |
|
(322
|
)
|
| | | | | | | |
|
Net Income (Loss) | |
$
|
79
|
| |
$
|
118
|
| |
$
|
207
|
| |
$
|
(270
|
)
|
| | | | | | | |
|
Basic and Diluted Share Information | | | | | | | | |
Weighted average shares outstanding – Basic (millions)
| |
|
252
|
| |
|
249
|
| |
|
251
|
| |
|
245
|
|
| | | | | | | |
|
Weighted average shares outstanding – Diluted (millions)
| |
|
252
|
| |
|
249
|
| |
|
252
|
| |
|
245
|
|
| | | | | | | |
|
Earnings per share of common stock from Continuing Operations –
Basic and Diluted
| |
$
|
0.31
| | |
$
|
0.44
| | |
$
|
0.82
| | |
$
|
0.21
| |
| | | | | | | |
|
Earnings (loss) per share of common stock from Discontinued
Operations – Basic and Diluted
| |
|
-
|
| |
|
0.04
|
| |
|
-
|
| |
|
(1.31
|
)
|
| | | | | | | |
|
Basic and Diluted earnings (loss) per share
| |
$
|
0.31
|
| |
$
|
0.48
|
| |
$
|
0.82
|
| |
$
|
(1.10
|
)
|
|
| |
| |
PEPCO HOLDINGS, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
| | | |
|
| | September 30, 2014 | | December 31, 2013 |
| | (millions of dollars) |
ASSETS | | | | |
| | | |
|
CURRENT ASSETS | | | | |
Cash and cash equivalents
| |
$
|
257
| | |
$
|
23
| |
Restricted cash equivalents
| | |
21
| | | |
13
| |
Accounts receivable, less allowance for uncollectible accounts of
$50 million and $38 million, respectively
| | |
812
| | | |
835
| |
Inventories
| | |
152
| | | |
148
| |
Deferred income tax assets, net
| | |
34
| | | |
51
| |
Income taxes and related accrued interest receivable
| | |
7
| | | |
274
| |
Prepaid expenses and other
| |
|
86
|
| |
|
54
|
|
| | | |
|
Total Current Assets
| |
|
1,369
|
| |
|
1,398
|
|
| | | |
|
| | | |
|
OTHER ASSETS | | | | |
Goodwill
| | |
1,407
| | | |
1,407
| |
Regulatory assets
| | |
2,032
| | | |
2,087
| |
Income taxes and related accrued interest receivable
| | |
57
| | | |
75
| |
Restricted cash equivalents
| | |
13
| | | |
14
| |
Other
| |
|
167
|
| |
|
163
|
|
| | | |
|
Total Other Assets
| |
|
3,676
|
| |
|
3,746
|
|
| | | |
|
| | | |
|
PROPERTY, PLANT AND EQUIPMENT | | | | |
Property, plant and equipment
| | |
15,241
| | | |
14,567
| |
Accumulated depreciation
| |
|
(4,988
|
)
| |
|
(4,863
|
)
|
| | | |
|
Net Property, Plant and Equipment
| |
|
10,253
|
| |
|
9,704
|
|
| | | |
|
| | | |
|
TOTAL ASSETS | |
$
|
15,298
|
| |
$
|
14,848
|
|
|
| |
| |
PEPCO HOLDINGS, INC. AND SUBSIDIARIES |
CONSOLIDATED BALANCE SHEETS |
(Unaudited) |
| | | |
|
| | September 30, 2014 | | December 31, 2013 |
| | (millions of dollars, except shares) |
LIABILITIES AND EQUITY | | | | |
| | | |
|
CURRENT LIABILITIES | | | | |
Short-term debt
| |
$
|
533
| | |
$
|
565
| |
Current portion of long-term debt and project funding
| | |
279
| | | |
446
| |
Accounts payable
| | |
192
| | | |
215
| |
Accrued liabilities
| | |
321
| | | |
301
| |
Capital lease obligations due within one year
| | |
10
| | | |
9
| |
Taxes accrued
| | |
47
| | | |
56
| |
Interest accrued
| | |
80
| | | |
47
| |
Liabilities and accrued interest related to uncertain tax positions
| | |
6
| | | |
397
| |
Other
| |
|
341
|
| |
|
277
|
|
| | | |
|
Total Current Liabilities
| |
|
1,809
|
| |
|
2,313
|
|
| | | |
|
DEFERRED CREDITS | | | | |
Regulatory liabilities
| | |
371
| | | |
399
| |
Deferred income tax liabilities, net
| | |
3,191
| | | |
2,928
| |
Investment tax credits
| | |
16
| | | |
17
| |
Pension benefit obligation
| | |
130
| | | |
116
| |
Other postretirement benefit obligations
| | |
177
| | | |
206
| |
Liabilities and accrued interest related to uncertain tax positions
| | |
6
| | | |
28
| |
Other
| |
|
187
|
| |
|
189
|
|
| | | |
|
Total Deferred Credits
| |
|
4,078
|
| |
|
3,883
|
|
| | | |
|
OTHER LONG-TERM LIABILITIES | | | | |
Long-term debt
| | |
4,691
| | | |
4,053
| |
Transition bonds issued by ACE Funding
| | |
183
| | | |
214
| |
Long-term project funding
| | |
9
| | | |
10
| |
Capital lease obligations
| |
|
55
|
| |
|
60
|
|
| | | |
|
Total Other Long-Term Liabilities
| |
|
4,938
|
| |
|
4,337
|
|
| | | |
|
COMMITMENTS AND CONTINGENCIES | | | | |
| | | |
|
PREFERRED STOCK | | | | |
Series A preferred stock, $.01 par value, 18,000 shares authorized,
10,800 and zero shares outstanding, respectively
| |
|
111
|
| |
|
–
|
|
| | | |
|
EQUITY | | | | |
Common stock, $.01 par value, 400,000,000 shares authorized,
251,879,809 and 250,324,898 shares outstanding, respectively
| | |
3
| | | |
3
| |
Premium on stock and other capital contributions
| | |
3,794
| | | |
3,751
| |
Accumulated other comprehensive loss
| | |
(33
|
)
| | |
(34
|
)
|
Retained earnings
| |
|
598
|
| |
|
595
|
|
| | | |
|
Total Equity
| |
|
4,362
|
| |
|
4,315
|
|
| | | |
|
TOTAL LIABILITIES AND EQUITY | |
$
|
15,298
|
| |
$
|
14,848
|
|
|
POWER DELIVERY SALES AND REVENUE |
|
| |
| |
|
| Three Months Ended September 30, |
| Nine Months Ended September 30, |
Power Delivery Sales (Gigawatt Hours) | |
| 2014 |
|
| 2013 | | |
| 2014 |
|
| 2013 |
Regulated T&D Electric Sales | | | |
| | | | | | |
| | |
Residential
| | |
4,769
| | |
5,060
| | | |
13,441
| | |
13,342
|
Commercial and industrial
| | |
7,953
| | |
8,214
| | | |
22,596
| | |
22,887
|
Transmission and other
| | |
58
| | |
61
| | | |
182
| | |
183
|
Total Regulated T&D Electric Sales | | |
12,780
| | |
13,335
| | | |
36,219
| | |
36,412
|
| | | | | | | | | | | | |
|
Default Electricity Supply Sales | | | | | | | | | | | | | |
Residential
| | |
3,868
| | |
4,031
| | | |
10,835
| | |
10,696
|
Commercial and industrial
| | |
1,613
| | |
1,430
| | | |
4,175
| | |
3,909
|
Other
| | |
12
| | |
11
| | | |
33
| | |
42
|
Total Default Electricity Supply Sales | | |
5,493
| | |
5,472
| | | |
15,043
| | |
14,647
|
| | | | | | | | | | | | |
|
| | | | | | | | | | | | |
|
| |
|
Power Delivery Electric Revenue (Millions of dollars) | | | | | | | | | | | | | |
Regulated T&D Electric Revenue | | | | | | | | | | | | | |
Residential
| |
$
|
251
| |
$
|
247
| | |
$
|
640
| |
$
|
601
|
Commercial and industrial
| | |
286
| | |
276
| | | |
768
| | |
733
|
Transmission and other
| | |
113
| | |
103
| | | |
328
| | |
291
|
Total Regulated T&D Electric Revenue | |
$
|
650
| |
$
|
626
| | |
$
|
1,736
| |
$
|
1,625
|
| | | | | | | | | | | | |
|
Default Electricity Supply Revenue | | | | | | | | | | | | | |
Residential
| |
$
|
366
| |
$
|
426
| | |
$
|
1,025
| |
$
|
1,087
|
Commercial and industrial
| | |
156
| | |
165
| | | |
429
| | |
418
|
Other
| | |
37
| | |
45
| | | |
175
| | |
115
|
Total Default Electricity Supply Revenue | |
$
|
559
| |
$
|
636
| | |
$
|
1,629
| |
$
|
1,620
|
| | | | | | | | | | | | |
|
Other Electric Revenue | |
$
|
13
| |
$
|
13
| | |
$
|
44
| |
$
|
46
|
| | | | | | | | | | | | |
|
Total Electric Operating Revenue | |
$
|
1,222
| |
$
|
1,275
| | |
$
|
3,409
| |
$
|
3,291
|
|
|
|
Power Delivery Gas Sales and Revenue | | | | | | | | | | | | | |
Regulated Gas Sales (Mcf) | | | | | | | | | | | | | |
Residential
| | |
404
| | |
406
| | | |
6,114
| | |
5,365
|
Commercial and industrial
| | |
745
| | |
563
| | | |
4,285
| | |
3,232
|
Transportation and other
| | |
1,075
| | |
1,255
| | | |
4,737
| | |
5,141
|
Total Regulated Gas Sales | | |
2,224
| | |
2,224
| | | |
15,136
| | |
13,738
|
| | | | | | | | | | | | |
|
Regulated Gas Revenue (Millions of dollars) | | | | | | | | | | | | | |
Residential
| |
$
|
9
| |
$
|
9
| | |
$
|
77
| |
$
|
71
|
Commercial and industrial
| | |
6
| | |
6
| | | |
44
| | |
35
|
Transportation and other
| | |
2
| | |
2
| | | |
8
| | |
8
|
Total Regulated Gas Revenue | |
$
|
17
| |
$
|
17
| | |
$
|
129
| |
$
|
114
|
| | | | | | | | | | | | |
|
Other Gas Revenue | |
$
|
3
| |
$
|
6
| | |
$
|
16
| |
$
|
23
|
| | | | | | | | | | | | |
|
Total Gas Operating Revenue | |
$
|
20
| |
$
|
23
| | |
$
|
145
| |
$
|
137
|
| | | | | | | | | | | | |
|
Total Power Delivery Operating Revenue | |
$
|
1,242
| |
$
|
1,298
| | |
$
|
3,554
| |
$
|
3,428
|
|
|
| |
POWER DELIVERY – CUSTOMERS | | | |
| | September 30, 2014 |
|
| September 30, 2013 |
| | | |
| |
Regulated T&D Electric Customers (in thousands) | | | | | |
Residential
| |
1,656
| | |
1,643
|
Commercial and industrial
| |
199
| | |
199
|
Transmission and other
| |
2
| | |
2
|
Total Regulated T&D Electric Customers | |
1,857
| | |
1,844
|
| | | | |
|
| | | | |
|
Regulated Gas Customers (in thousands) | | | | | |
Residential
| |
117
| | |
116
|
Commercial and industrial
| |
9
| | |
9
|
Transportation and other
| |
–
| | |
–
|
Total Regulated Gas Customers | |
126
| | |
125
|
|
WEATHER DATA – CONSOLIDATED ELECTRIC SERVICE TERRITORY |
|
| Three Months Ended September 30, |
|
| Nine Months Ended September 30, |
| 2014 |
| 2013 |
|
| 2014 |
| 2013 |
| |
| |
|
| |
| |
Heating Degree Days
|
17
| |
43
| | |
3,026
| |
2,770
|
20 Year Average
|
26
| |
27
| | |
2,740
| |
2,750
|
Percentage Difference from Average
|
(35%)
| |
59%
| | |
10%
| |
1%
|
Percentage Difference from Prior Year
|
(61%)
| | | | |
9%
| | |
| | | | | | | |
|
Cooling Degree Days
|
912
| |
946
| | |
1,329
| |
1,386
|
20 Year Average
|
972
| |
977
| | |
1,364
| |
1,364
|
Percentage Difference from Average
|
(6%)
| |
(3%)
| | |
(3%)
| |
2%
|
Percentage Difference from Prior Year
|
(4%)
| | | | |
(4%)
| | |
|
| |
| |
| |
| |
| |
| |
POWER DELIVERY – CONSTRUCTION EXPENDITURE FORECAST |
| |
|
|
|
|
|
|
|
|
|
|
|
(Millions of Dollars) | | 2015 |
| 2016 |
| 2017 |
| 2018 |
| 2019 |
| Total |
| | | | | | | | | | | |
|
ACE | |
$
|
265
| |
$
|
324
| |
$
|
321
| |
$
|
283
| |
$
|
237
| |
$
|
1,430
|
DPL | | |
359
| | |
351
| | |
359
| | |
376
| | |
301
| | |
1,746
|
Pepco | |
|
667
|
|
|
707
|
|
|
716
|
|
|
687
|
|
|
654
|
|
|
3,431
|
Total Construction Expenditures | | $ | 1,291 |
| $ | 1,382 |
| $ | 1,396 |
| $ | 1,346 |
| $ | 1,192 |
| $ | 6,607 |
|
| |
| |
| |
| |
| |
| |
| |
POWER DELIVERY – YEAR-END RATE BASE FORECAST |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
(Millions of Dollars) | | 2013A |
| 2014 |
| 2015 |
| 2016 |
| 2017 |
| 2018 |
| 2019 |
ACE | |
$
|
1,618
| |
$
|
1,635
| |
$
|
1,749
| |
$
|
1,935
| |
$
|
2,057
| |
$
|
2,175
| |
$
|
2,283
|
DPL | | |
2,095
| | |
2,183
| | |
2,386
| | |
2,532
| | |
2,732
| | |
2,962
| | |
3,121
|
Pepco | |
|
3,392
|
|
|
3,642
|
|
|
3,958
|
|
|
4,365
|
|
|
4,774
|
|
|
5,057
|
|
|
5,251
|
Total Rate Base | | $ | 7,105 |
| $ | 7,460 |
| $ | 8,093 |
| $ | 8,832 |
| $ | 9,563 |
| $ | 10,194 |
| $ | 10,655 |
Notes: Forecast is based on expected plant closings associated with the
construction expenditure forecast, current depreciation rates and
expected deferred tax benefits at current statutory tax rates. A=actual
|
| |
PEPCO ENERGY SERVICES |
Financial Information - Continuing Operations |
| |
|
(Millions of Dollars) | | Three Months Ended September 30, |
| |
| 2014 |
|
|
| 2013 |
|
| | | |
|
Operating Revenue | |
$
|
73
| | |
$
|
48
| |
Cost of Goods Sold
| |
|
56
|
| |
|
39
|
|
Gross Margin | | |
17
| | | |
9
| |
Other Operation and Maintenance Expenses
| | |
15
| | | |
11
| |
Impairment Loss
| |
53*
| | |
−
| |
Depreciation and Amortization
| |
|
2
|
| |
|
−
|
|
Operating Loss | | |
(53
|
)
| | |
(2
|
)
|
Other Income | |
|
−
|
| |
|
−
|
|
Loss Before Income Taxes | | |
(53
|
)
| | |
(2
|
)
|
Income Tax Benefit | |
|
(26
|
)
| |
|
(1
|
)
|
Net Loss from Continuing Operations (GAAP) | |
$
|
(27
|
)
| |
$
|
(1
|
)
|
| | | | | | | |
|
* Impairment loss of $53 million ($32 million after-tax) associated with
the combined heat and power thermal generating plant and operation in
Atlantic City.
|
| | |
(Millions of Dollars) | | Nine Months Ended September 30, |
| |
| 2014 |
|
|
| 2013 |
|
| | | | |
|
Operating Revenue | |
$
|
212
| | |
$
|
154
| |
Cost of Goods Sold
| |
|
165
|
| |
|
114
|
|
Gross Margin | | |
47
| | | |
40
| |
Other Operation and Maintenance Expenses
| | |
39
| | | |
33
| |
Impairment Loss
| |
53*
| | |
−
| |
Depreciation and Amortization
| |
|
6
|
| |
|
4
|
|
Operating (Loss) Income | | |
(51
|
)
| | |
3
| |
Other Income | |
|
1
|
| |
|
1
|
|
(Loss) Income Before Income Taxes | | |
(50
|
)
| | |
4
| |
Income Tax (Benefit) Expense | |
|
(25
|
)
| |
|
1
|
|
Net (Loss) Income from Continuing Operations (GAAP) | |
$
|
(25
|
)
| |
$
|
3
|
|
| | | | |
|
* Impairment loss of $53 million ($32 million after-tax) associated with
the combined heat and power thermal generating plant and operation in
Atlantic City.
|
| |
| |
(Millions of Dollars) | | September 30, | | December 31, |
| | 2014 | | 2013 |
| | | |
|
Total Assets | |
$
|
255
| |
$
|
335
|
Current Assets
| | |
145
| | |
188
|
Property, Plant and Equipment
| | |
54
| | |
113
|
Other Assets
| | |
56
| | |
34
|
| | | |
|
Total Liabilities | |
$
|
88
| |
$
|
85
|
Current Liabilities
| | |
60
| | |
55
|
Long-Term Liabilities
| | |
28
| | |
30
|
| | | |
|
Equity | |
$
|
167
| |
$
|
250
|
Contacts:
Pepco Holdings, Inc.
Media Contact:
Robert Hainey, 202-872-2680
24/7
Media Hotline 202-872-2680
rshainey@pepcoholdings.com
or
Investor
Contact:
Donna Kinzel, 302-429-3004
donna.kinzel@pepcoholdings.com
Source: Pepco Holdings, Inc.
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