Support for Pepco Holdings-Exelon Merger Grows as More D.C. Community, Business and Faith Leaders Speak Out
More than 600 community members have signed letters in support of
merger this week
More District of Columbia community, business, labor, nonprofit and
faith leaders are voicing support for the Pepco Holdings-Exelon merger,
which will bring increased reliability, sustainability and economic
benefits to the region. In addition, in the past week, more than 600
members of the community have signed letters voicing support for the
merger.
Among those speaking out in favor of the merger are community and
economic development leaders, and senior officials of several businesses
and labor organizations.
“A more reliable electric grid and a strong commitment to affordable
rates will help the economy, and that helps workers,” said Andre Lee,
political chairman of the American Federation of State, County and
Municipal Employees. “I’m also encouraged to see Pepco Holdings and
Exelon make workforce development and investment in the District economy
a key feature of their merger.”
Lee and other new supporters join representatives of more than 80
District business, community and faith organizations that already voiced
support for the transaction in proceedings before the Public Service
Commission of the District of Columbia (PSC).
“The merger presents a unique opportunity to improve quality of life for
residents in the District,” said Rayseen Woodland, a community leader
and current ANC commissioner. “Pepco Holdings and Exelon have made a
long-term commitment to enhance customer service and support the
organizations and institutions that make our neighborhoods stronger.”
Pepco Holdings and Exelon have committed to a more than $78 million
package of benefits for the District of Columbia and Pepco customers in
the companies’ proposed merger.
“These commitments will support District residents who struggle to pay
their bills,” said Marshall Phillips, minister at the Greater Mount
Calvary Holy Church. “None of that would be possible absent the merger,
and that’s why it is critical that we not miss this opportunity.”
Anwar Saleem, executive director of H Street Main Street, said the
companies’ commitment to provide $19 million to District nonprofits over
10 years demonstrates their long-term commitment to strengthening
communities and the local economy.
“The merger ensures that Pepco remains a strong, invested community
partner for years to come,” he said.
Charles Weaver, president of the Jetu Tenants Association, said he
supports the merger because it will increase access to renewable energy
and commit the companies to reducing the length and duration of power
outages.
“We need a modern, more sustainable electricity grid that also holds the
line on rates,” he said. “This merger delivers on that promise.”
About Exelon Corporation
Exelon Corporation (NYSE: EXC) is the nation’s leading competitive
energy provider, with 2015 revenues of approximately $29.4 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 more than 32,700 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 approximately 2 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 approximately 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 2015 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 23; (2) 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); and (3)
PHI’s 2015 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 16. 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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