WASHINGTON, D.C. and CHICAGO– More than 100 District of Columbia residents and community groups turned out at a hearing today to tell the Public Service Commission of the District of Columbia (PSC) that they support the merger of Pepco Holdings Inc. (NYSE: POM) and Exelon Corporation (NYSE: EXC) for the significant benefits it will bring to the region.
The PSC called the hearing as a forum for individuals and organizations in the District to comment on the merger settlement the companies reached with the Government of the District of Columbia and others on Oct. 6, 2015. The Commission on Oct. 28 reopened the record to consider the settlement with the District Government and others, and set a schedule for the reconsideration of the merger application that would allow it to issue a decision in the first quarter of 2016.
The merger settlement includes numerous commitments to the District, including providing $72.8 million in direct customer benefits, including bill credits, assistance for low-income customers, fewer and shorter power outages, and investment in a cleaner and greener D.C.
“Efficiency, reliability and sustainability – those are the things that drove me to be here today,” said Ellen Jefferson, a District resident who attended the hearing to voice her support. “As a business owner, I know what it means when you don’t have power – it means thousands of dollars of lost revenue. I understand that it takes lots and lots of resources to ensure continuity of power, but I think that the Pepco-Exelon merger will create some synergies that were not there before.”
Among its many commitments, the merger settlement includes investments in local jobs and workforce development. Pepco has committed to hire more than 100 union workers in the District, and Exelon has offered $5.2 million for workforce development programs.
“We’re encouraged the merger will bolster support for local jobs and help develop the District’s future workforce,” said Carmen Robles-Inman, program director, Workforce Development, Edgewood/Brookland Family Support Collaborative. “As the District’s economy continues to grow, we will need these skilled workers to fill the jobs of tomorrow.”
Citizens from all eight wards attended the hearing and presented testimony to demonstrate their support for the merger. They represented a broad range of interests, including faith groups, nonprofits and other community organizations. Many wore T-shirts and buttons and carried signs showing their support.
“I’m here because I want to give a chance to new opportunities. I do think this will benefit the community,” said Rev. Robert Childs, Pastor, Berean Baptist Church. The merger is “going to bring benefits to residents.”
In addition to the parties that signed the settlement, the merger has the support of a majority of the D.C. Council and more than 30,000 District residents who have signed a petition or submitted letters to the PSC in recent weeks.
“The testimony we heard today is another clear sign the merger has widespread public support following our settlement with Mayor Bowser, the Department of Energy and Environment, the Attorney General for the District of Columbia, the Office of the People’s Counsel and others,” said Donna Cooper, president. Pepco Region. “We are eager to bring the merger’s many benefits to the District’s citizens, and they are equally eager to receive them.”
“District residents value the merger because it includes commitments – such as bill credits, enhanced reliability goals and funds for renewables and energy efficiency – that will make electricity more affordable and more reliable and will advance the District’s long-term sustainability goals,” said Melissa Sherrod, vice president, corporate affairs, Exelon. “The package of benefits we’ve proposed responds directly to what the District has said it wants and can only be secured if the merger is approved.”
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.