Pepco Holdings (PHI) arguably has more power in the US capital than most politicians. The holding company distributes electricity and natural gas through its Potomac Electric Power (Pepco), Delmarva Power & Light, and Atlantic City Electric utilities to about 2.3 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. In a major industry consolidation move, in 2016 PHI was bought by rival Exelon for $6.9 billion.

Change in Company Type

The combination of PHI and Exelon brings together Exelon’s three electric and gas utilities – BGE, ComEd, and PECO -- and PHI’s three electric and gas utilities – Atlantic City Electric, Delmarva Power, and Pepco -- creating the leading mid-Atlantic electric and gas utility.

Geographic Reach

PHI primarily serves customers in Delaware, Maryland, New Jersey, Virginia, and Washington, DC.


PHI's 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. Pepco Energy Services owns five renewable energy generating facilities, with a total generating capacity of 17.4 MW.

The company operates 9 power facilities and 150 substations.

In 2014 the power delivery segment generated 94% of its total sales. Pepco Energy Services accounted for 6%.

Sales and Marketing

That year PHI served 801,000 customers (Washington, DC, 265,000; Montgomery County, 309,000; Prince George’s County, 227,000).

Financial Performance

The company’s net revenues had been decreasing since 2010, bur rose in 2014. The company’s net revenue increased by 5% in 2014, primarily due to an increase in power delivery revenues thanks to high rates and a growth in residential customers.

PHI posted a net income of $242 million in 2014 (compared to net loss of $212.00 million in 2013), due to higher revenues and the absence of a loss from discontinued operations, net of income taxes. (The company reported a loss of $322 million in 2013, comprised of a decrease of $368 million related to PHI’s cross-border lease investments and a decrease of $21 million related to the retail electric and natural gas supply businesses at Pepco Energy Services).

The company’s cash inflow increased by 72% in 2014.


PHI focuses on investing in utilities transmission and distribution infrastructure; building a smarter grid and implementing other technological enhancements to automate power delivery system functions and improve the reliability of the power distribution system and help customers better manage, their energy usage.

PHI's flexible business strategy allows it to develop opportunities for growth or operational streamlining in both its regulated and unregulated segments.

In 2013 PHI terminated its interest in its cross-border energy lease investments and the cross-border energy lease investments were then accounted for as discontinued operations. That year Pepco Energy Services exited its retail electric supply business by terminating its remaining customer supply and wholesale purchase obligations beyond 2013.

Company Background

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 PHI sold its Conectiv Energy power plant assets to Calpine for about $1.7 billion. The deal moved it 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).

- Show Less + Show Full Description

Company News and Press Releases

- Show Less + Show More News and Press Releases


701 9th St Nw Ste 1300
Washington, DC 20001-4572
Phone: 1 (202) 872-2000


  • Employer Type: Subsidiary
  • Chairman, President, and CEO: Joseph M. Rigby
  • VP and CIO: Doug Myers
  • Chairman, President, and CEO: Joseph M. Rigby

Major Office Locations

  • Washington, DC
  • Chicago, IL

Other Locations

  • Mobile, AL
  • Newark, DE
  • Wilmington, DE
  • Columbus, OH

Become a Vault Basic Member

Complete your Vault Profile and get seen by top employers