"Pepco Holdings", Inc (NYSE:POM) (also known as PHI) is a public utilities holdings company which generate and distributes electricity and natural gas to mainly 1.8 million residential, commercial and industrial customers in Maryland and Washington D.C.
On 5 January 2009, POM subsidiaries, Pepco Energy Services, was awarded a $5 billion contract from the U.S. Department of Energy. In the contract, Pepco Energy will design and construct new cost saving projects for government facilities. The improvements are projected to generate savings sufficient to pay for their own projects over the term of the contract and lower operating cost.
POM's 2 principal business operations are Power Delivery and Competitive Energy. Power Delivery business is engaged in transmission, distribution and supply of electricity. Where else, Competitive Energy business is engaged in the generation of electricity and marketing of electricity and natural gas, and related energy management services, in the mid-Atlantic region.
In 2009, POM generated a net income of $235 million on total revenues of $9.26 billion. This represents a 21.7% decrease in net income on a 13.5% drop in total revenues from 2008, when the company earned $300 million on revenues of $10.70 billion.
Pepco Holdings’ has four Business Segments. They are Power Delivery, Conectiv Energy, Pepco Energy services, and other Non-regulated services.
On 5 January 2009, POM subsidiary, Pepco Energy Services, was awarded a 5 year contract which is worth $5 billion contract from the U.S. Department of Energy. It is part of an effort to improve energy efficiency, renewable energy and water-conservation projects at federal government buildings. In the contract, Pepco Energy will design and construct new cost saving projects for government facilities. The improvements are projected to generate savings and accrued additional saving to POM.
POM’s Power Delivery businesses are subject to regulation by various regulatory agencies that significantly affects their operations. In addition, the rates that POM can charge for electricity transmission and natural gas transportation are regulated by Federal Energy Regulatory Commission (FERC). The companies cannot change without the approval by the applicable regulatory authority.
The Utilities industry located in the mid-Atlantic region are characterized by intense competition at both the wholesale and retail levels. The nature of the industry is unregulated. At the wholesale level, Conectiv Energy and Pepco Energy Services compete with numerous non-utility generators. At the retail level, Pepco Energy Services competes with numerous competitive energy marketers and other service providers. They compete based on price and the range of services offered to customers.