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.
PHI focused 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 allowed 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.
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).