Diverse Supplier Roundtable Hosted by Pepco and Exelon Draws More Than 160 Small Businesses
Proposed Merger Offers New Growth Opportunities
Minority and women-owned businesses in the District will benefit from
new and expanded opportunities with the proposed Pepco-Exelon merger,
leaders of both companies told an audience of more than 160 local
business leaders recently.
One local company in the audience, Ideal Electrical Supply Corp., has
been working with Pepco for nearly 30 years. Ideal – a women and
minority-owned business – did about $20 million in business with Pepco
last year, up from $3.5 million several years ago.
“We’re excited about the possibilities this merger opens for us and look
forward to it moving forward,” said Ideal President and Co-founder Cora
“The combined resources of Pepco and Exelon and their commitment to
invest locally will be beneficial to local and diverse contractors and
the communities we serve,” Pepco Region President Donna Cooper said,
adding: “We’re supportive of every effort to drive jobs and economic
development in the District and our merger with Exelon will continue
The remarks came during a roundtable and networking session at the
Hamilton Live for contractors in the Washington, D.C., area. A wide
variety of small business owners attended the event for a detailed
question and answer period with key officials at Pepco Holdings and
Exelon and to make connections with other small business owners.
Pepco Holdings and Exelon executives provided specifics on company
contracting levels that are likely to expand if the merger is approved
and how local businesses will be able to work with the companies.
Melissa Sherrod, vice president of corporate affairs at Exelon,
explained how Exelon spent more than $1.3 billion in 2015 with diverse
vendors, including small, minority-owned or women-owned businesses.
“A successful merger means there will be even more possibilities for
diverse businesses that we want to support, and that’s a good thing for
the health of the communities Pepco serves,” Sherrod said. “Exelon
shares Pepco’s core value of diversity and intends to build on it going
The merger will bring together Exelon's three electric and gas utilities
- BGE, ComEd and PECO - and Pepco Holdings' three electric and gas
utilities - Atlantic City Electric, Delmarva Power and Pepco - to create
the leading mid-Atlantic electric and gas utility.
The merger has been approved in Maryland, Delaware, New Jersey and
Virginia and by federal regulators. The D.C. Public Service Commission
is currently reviewing the merger and has set a schedule which would
allow for completing the proceeding by the first quarter of 2016.
About Exelon Corporation
Exelon Corporation (NYSE: EXC) is the nation’s leading competitive
energy provider, with 2014 revenues of approximately $27.4 billion.
Headquartered in Chicago, Exelon does business in 48 states, the
District of Columbia and Canada. Exelon is one of the largest
competitive U.S. power generators, with approximately 32,000 megawatts
of owned capacity comprising one of the nation’s cleanest and
lowest-cost power generation fleets. The company’s Constellation
business unit provides energy products and services to more than 2.5
million residential, public sector and business customers, including
more than two-thirds of the Fortune 100. Exelon’s utilities deliver
electricity and natural gas to more than 7.8 million customers in
central Maryland (BGE), northern Illinois (ComEd) and southeastern
Pennsylvania (PECO). Follow Exelon on Twitter @Exelon.
About Pepco Holdings Inc.
Pepco Holdings Inc. 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.
PHI also provides energy efficiency and renewable energy services
through Pepco Energy Services. For more information, visit online: www.pepcoholdings.com.
Cautionary Statements Regarding Forward-Looking Information
Except for the historical information contained herein, certain of the
matters discussed in this communication constitute “forward-looking
statements” within the meaning of the Securities Act of 1933 and the
Securities Exchange Act of 1934, both as amended by the Private
Securities Litigation Reform Act of 1995. Words such as “may,” “might,”
“will,” “should,” “could,” “anticipate,” “estimate,” “expect,”
“predict,” “project,” “future,” “potential,” “intend,” “seek to,”
“plan,” “assume,” “believe,” “target,” “forecast,” “goal,” “objective,”
“continue” or the negative of such terms or other variations thereof and
words and terms of similar substance used in connection with any
discussion of future plans, actions, or events identify forward-looking
statements. These forward-looking statements include, but are not
limited to, statements regarding benefits of the proposed merger,
integration plans and expected synergies, the expected timing of
completion of the transaction, anticipated future financial and
operating performance and results, including estimates for growth. These
statements are based on the current expectations of management of Exelon
Corporation (Exelon) and Pepco Holdings, Inc. (PHI), as applicable.
There are a number of risks and uncertainties that could cause actual
results to differ materially from the forward-looking statements
included in this communication. For example, (1) the uncertainty
surrounding reconsideration of the denial of the Merger application by
the DC Public Service Commission may delay the merger or cause the
companies to abandon the merger; (2) conditions to the closing of the
merger may not be satisfied; (3) problems may arise in successfully
integrating the businesses of the companies, which may result in the
combined company not operating as effectively and efficiently as expected;
(4) the combined company may be unable to achieve cost-cutting
synergies or it may take longer than expected to achieve those
synergies; (5) the merger may involve unexpected costs, unexpected
liabilities or unexpected delays, or the effects of purchase accounting
may be different from the companies’ expectations; (6) the credit
ratings of the combined company or its subsidiaries may be different
from what the companies expect; (7) the businesses of the
companies may suffer as a result of uncertainty surrounding the merger;
(8) the companies may not realize the values expected to be obtained for
properties expected or required to be sold; (9) the industry may be
subject to future regulatory or legislative actions that could adversely
affect the companies; and (10) the companies may be adversely affected
by other economic, business, and/or competitive factors. Other unknown
or unpredictable factors could also have material adverse effects on
future results, performance or achievements of the combined company.
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. Discussions of some
of these other important factors and assumptions are contained in
Exelon’s and PHI’s respective filings with the Securities and Exchange
Commission (SEC), and available at the SEC’s website at www.sec.gov,
including: (1) Exelon’s 2014 Annual Report on Form 10-K in (a) ITEM 1A.
Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of
Financial Condition and Results of Operations and (c) ITEM 8. Financial
Statements and Supplementary Data: Note 22; (2) Exelon’s Third Quarter
2015 Quarterly Report on Form 10-Q in (a) Part II, Other Information,
ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2.
Management’s Discussion and Analysis of Financial Condition and Results
of Operations and (c) Part I, Financial Information, ITEM 1. Financial
Statements: Note 19; (3) the definitive proxy statement that PHI filed
with the SEC on August 12, 2014 and mailed to its stockholders in
connection with the proposed merger (as supplemented by PHI’s Form 8-K
filed with the SEC on September 12, 2014); (4) PHI’s 2014 Annual Report
on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s
Discussion and Analysis of Financial Condition and Results of Operations
and (c) ITEM 8. Financial Statements and Supplementary Data: Note 15;
and (5) PHI’s Third Quarter 2015 Quarterly Report on Form 10-Q in (a)
PART I, ITEM 1. Financial Statements, (b) PART I, ITEM 2. Management’s
Discussion and Analysis of Financial Condition and Results of
Operations, and (c) Part II, Other Information, ITEM 1A. Risk Factors.
In light of these risks, uncertainties, assumptions and factors, the
forward-looking events discussed in this communication may not occur.
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
communication. Neither Exelon nor PHI undertakes any obligation to
publicly release any revision to its forward-looking statements to
reflect events or circumstances after the date of this communication.
New factors emerge from time to time, and it is not possible for Exelon
or PHI to predict all such factors. Furthermore, it may not be possible
to assess the impact of any such factor on Exelon’s or PHI’s respective
businesses 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.
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