The document provides an overview and summary of PHI's strategy and performance across its various business segments. PHI aims to remain a regional diversified energy delivery and competitive services company focused on value creation and operational excellence. Key aspects include achieving constructive regulatory outcomes and 4% annual earnings growth for its power delivery utilities, optimizing assets and market opportunities for Conectiv Energy, and expanding Pepco Energy Services into additional markets. Financial performance has been positively impacted by infrastructure investments and sales growth, though earnings have been reduced in some jurisdictions due to higher standard offer service pricing.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
If you are looking for a pi coin investor. Then look no further because I have the right one he is a pi vendor (he buy and resell to whales in China). I met him on a crypto conference and ever since I and my friends have sold more than 10k pi coins to him And he bought all and still want more. I will drop his telegram handle below just send him a message.
@Pi_vendor_247
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
What price will pi network be listed on exchangesDOT TECH
The rate at which pi will be listed is practically unknown. But due to speculations surrounding it the predicted rate is tends to be from 30$ — 50$.
So if you are interested in selling your pi network coins at a high rate tho. Or you can't wait till the mainnet launch in 2026. You can easily trade your pi coins with a merchant.
A merchant is someone who buys pi coins from miners and resell them to Investors looking forward to hold massive quantities till mainnet launch.
I will leave the telegram contact of my personal pi vendor to trade with.
@Pi_vendor_247
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
where can I find a legit pi merchant onlineDOT TECH
Yes. This is very easy what you need is a recommendation from someone who has successfully traded pi coins before with a merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi network coins and resell them to Investors looking forward to hold thousands of pi coins before the open mainnet.
I will leave the telegram contact of my personal pi merchant to trade with
@Pi_vendor_247
The Evolution of Non-Banking Financial Companies (NBFCs) in India: Challenges...beulahfernandes8
Role in Financial System
NBFCs are critical in bridging the financial inclusion gap.
They provide specialized financial services that cater to segments often neglected by traditional banks.
Economic Impact
NBFCs contribute significantly to India's GDP.
They support sectors like micro, small, and medium enterprises (MSMEs), housing finance, and personal loans.
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
1. The Right Stuff
We Deliver
Positioned for Success
in a Dynamic Industry
Investor Meetings
July 13-14, 2006
2. Table of Contents
Beginning
Topic Page No.
Safe Harbor Statement 3
Overview and Strategy 4
Power Delivery 7
Regulatory 9
PHI Mid-Atlantic Power Pathway Project 12
Standard Offer Service 18
Conectiv Energy 21
Pepco Energy Services 24
Financial Performance 26
Summary 31
Appendix – Power Delivery & Regulatory 33
Appendix – Conectiv Energy 38
Appendix – GAAP Reconciliation 41
2
3. Safe Harbor Statement
Some of the statements contained in today’s presentation are forward-looking statements within the meaning of
Section 21E of the Securities Exchange Act of 1934 and are subject to the safe harbor created by the Private
Securities Litigation Reform Act of 1995. These statements include all financial projections and any declarations
regarding management’s intents, beliefs or current expectations. In some cases, you can identify forward-looking
statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “believes,”
“estimates,” “predicts,” “potential” or “continue” or the negative of such terms or other comparable terminology.
Any forward-looking statements are not guarantees of future performance, and actual results could differ
materially from those indicated by the forward-looking statements. Forward-looking statements involve estimates,
assumptions, known and unknown risks, uncertainties and other factors that may cause actual results, levels of
activity, performance or achievements to be materially different from any future results, levels of activity,
performance or achievements expressed or implied by such forward-looking statements. Each forward-looking
statement speaks only as of the date of the particular statement, and we undertake no obligation to publicly
update or revise any forward-looking statement, whether as a result of new information, future events or
otherwise. A number of factors could cause actual results or outcomes to differ materially from those indicated by
the forward-looking statements contained in this presentation. These factors include, but are not limited to,
prevailing governmental policies and regulatory actions affecting the energy industry, including with respect to
allowed rates of return, industry and rate structure, acquisition and disposal of assets and facilities, operation and
construction of plant facilities, recovery of purchased power expenses, and present or prospective wholesale and
retail competition; changes in and compliance with environmental and safety laws and policies; weather
conditions; population growth rates and demographic patterns; competition for retail and wholesale customers;
general economic conditions, including potential negative impacts resulting from an economic downturn; growth
in demand, sales and capacity to fulfill demand; changes in tax rates or policies or in rates of inflation; potential
changes in accounting standards or practices; changes in project costs; unanticipated changes in operating
expenses and capital expenditures; the ability to obtain funding in the capital markets on favorable terms;
restrictions imposed by Federal and/or state regulatory commissions; legal and administrative proceedings
(whether civil or criminal) and settlements that influence our business and profitability; pace of entry into new
markets; volatility in market demand and prices for energy, capacity and fuel; interest rate fluctuations and credit
market concerns; and effects of geopolitical events, including the threat of domestic terrorism. Readers are
referred to the most recent reports filed with the Securities and Exchange Commission.
3
4. We’ve Delivered
We’ve made progress on several strategic issues
amid considerable challenges since the 2002
merger
Paid down merger related debt
Divested non-strategic businesses
Effectively managed through Mirant bankruptcy process
to date
Invested in our utility infrastructure (rate base) at
appropriate levels, with appropriate goals
Integrated the operating utilities
Developed a successful C&I commodity business at
Pepco Energy Services that is expandable
Managed Conectiv Energy through cyclical downturn in
energy markets
4
5. PHI Overview
Regulated
Electric
& Gas
Delivery
$8.2B LTM Revenues
$13.7B Total Assets Business
$4.3B Market Cap
69% of Operating Income
1.8 Million Electric Customers
120,000 Gas Customers
Competitive
Regulated
Energy/
Electric PHI Investments
Other
& Gas
Delivery
Business 31% of Operating Income
Note: Financial and customer data as of March 31, 2006. Operating Income percentage calculations are for the twelve months ended
March 31, 2006, net of special items. See appendix for details.
5
6. PHI Strategy - Summary
PHI’s corporate strategy is to remain a regional diversified
energy delivery utility and competitive services company
focused on value creation and operational excellence
Power Delivery Utility Operations
Operate with excellence
Achieve constructive regulatory outcomes
Invest in infrastructure
Conectiv Energy
Optimize assets and capture market opportunities
Adjust hedging strategy as conditions change
Continue to evaluate asset purchase opportunities
Pepco Energy Services
Expand into additional attractive markets
6
Note: See Safe Harbor Statement at the beginning of today’s presentation.
7. Power Delivery Summary
+ Sales Growth
Achieve
+ Infrastructure Investments
+ Operational Excellence
+ Constructive Regulatory Outcomes
At Least 4% Annual Average
Deliver
Earnings Growth
Note: See Safe Harbor Statement at the beginning of today’s presentation.
7
8. Power Delivery Business Service Territory
Robust Service Territory Economy
Area is less susceptible to economic
Combined Service Territory
downturns
Employment growth exceeds national
average
Diverse government and private sectors
Per capita income is 15% above national
average
Sales growth of approximately 2%
Diversified Customer Mix
Residential 35%
Commercial 46%
Government 10%
Industrial 9%
Note: See Safe Harbor Statement at the beginning of today’s presentation. 2005 Mwh Sales
8
9. Power Delivery - Regulated Distribution Summary
(Dollars in Millions) Atlantic City
Pepco Delmarva Power Electric
District of Delaware
Columbia Maryland Delaware Maryland Virginia Gas New Jersey
Date of Most Recent Data 12/31/05 3/31/06 12/31/05 12/31/05 12/31/05 3/31/06 12/31/02
Rate Base $990.3 $748.0 $427.0 $271.8 $31.1 $233.0 $654.9
Equity Ratio 47.34% 47.19% 47.05% 51.14% 51.32% 47.05% 46.22%
Earned Return on Rate Base (as adjusted) 5.67% 6.21% 7.53% 6.33% 8.01% 4.88% 8.14%
Regulatory Earned Return on Equity 5.07% 6.23% 10.17% 7.48% 10.40% 4.53% Not stipulated
Most Recent Authorized Return on Equity 11.10% 11.00% 10.00% 11.90% 11.05% 10.50% Not stipulated
Anticipated Base Rate Case Filing Date Fall 2006 Summer 2006 N/A Summer 2006 N/A Summer 2006 N/A
Notes: See appendix for additional details.
See Safe Harbor Statement at the beginning of today's presentation.
9
10. Delmarva Power – Delaware Rate Case
Requested $5.1 million annual increase in electric rates
$1.6 million* in distribution rates and $3.5 million transferred from
distribution to supply rates
11% ROE
Order effective May 1, 2006
Summary of Annual Impact
Pre-tax Pre-tax
Net Earnings Cash Flow
Distribution Rate Reduction $ (11.1) $ (11.1)
Assignment of Costs to SOS Rates 4.9 4.9
Depreciation Rates 3.1 -
0.4
Misc. Tariff Adjustments 0.4
Total $ (2.7) $ (5.8)
10% ROE
* Includes $0.4 million for changes in collection and reconnect fees 10
11. Transmission Formula Rate Filing
Settlement approved by the FERC April 2006
ROE – 10.8% for existing facilities, 11.3% for new facilities
put into service on or after January 1, 2006
Rates effective June 1, 2006 and include a settlement
adjustment and true-up for rates in effect since June 1, 2005
50% / 50% sharing of pole attachment revenue
Projects projected to be in-service in the current year are
reflected in current rates
Transmission rate base at December 31, 2005 - $880 million
11
12. PHI Mid-Atlantic Power Pathway
PHI has proposed a major transmission project to PJM:
• 230 mile, 500 kV line originating in northern Virginia, crossing Maryland,
traveling up the Delmarva Peninsula and into southern New Jersey
• Significant 230 kV lines that support Maryland, Delaware and New Jersey
American Electric Power (AEP) and Allegheny Power (AP) are individually
proposing major high-voltage transmission projects by 2014; PHI has
proposed a separate and complementary power pathway
12
13. PHI Mid-Atlantic Power Pathway
Congestion Map Illustrating Areas of Highest Congestion and Price
13
Note: Map information is based on PJM data for a single day at peak demand
14. PHI Mid-Atlantic Power Pathway
Preliminary Timeline
• Most of the line would be built either on, or parallel to, existing right of way
• 52 miles would use existing towers
• Much of the route is along established transmission corridors through
relatively rural areas
14
Note: See Safe Harbor Statement at the beginning of today’s presentation.
15. PHI Mid-Atlantic Power Pathway
Preliminary Cost
(Dollars in Millions)
Delmarva Atlantic City
Pepco Pow er Electric Total
2007 $2 $2 $- $4
2008 63 8 9 80
2009 75 105 6 186
2010 30 175 - 205
2011 - 210 5 215
2012 - 250 15 265
2013 - 135 30 165
2014 - 80 40 120
Total $170 $965 $105 $1,240
Note: See Safe Harbor Statement at the beginning of today’s presentation.
15
16. PHI Mid-Atlantic Power Pathway
Financial Impacts
• Utility Operations:
– Project total of $1.2 billion
– AFUDC earned during construction
– FERC authorized ROE is 11.3% for facilities put into service
on or after January 1, 2006
– Potential incremental after-tax earnings estimated at $60 - $70
million (based on 45% - 50% equity ratio)1
• Conectiv Energy:
– Modest impact projected; after-tax annual earnings decrease
preliminarily estimated at $10 million upon completion of the
project, should decline over time as load grows
– Conectiv Energy will have time to assess the market and
adjust its plans as this long-term project develops
1) Assumes PJM approval of the project as proposed. Represents first year earnings post project completion in 2014. Actual incremental
earnings will be realized in stages as sections of the line are placed into service. Depreciation of the investment will decrease earnings over
time.
16
Note: See Safe Harbor Statement at the beginning of today’s presentation.
17. PHI Mid-Atlantic Power Pathway
Benefits of the PHI Proposal
• Improves reliability for the Washington,
D.C./Baltimore metropolitan area, Delmarva
Peninsula and New Jersey region
• Greatly reduces congestion problems in the
region
• Enables greater access to affordable
generation sources
• Encourages new generation construction by
providing a robust transmission infrastructure
• Strengthens the system by complementing
ongoing transmission upgrades to the west,
improving reliability and creating greater
redundancy
17
18. Standard Offer Service
Delaware
Supply pricing became market based 5/1/06 for Delmarva Power
customers
59% total bill increase for residential customers effective 5/1/06
Deferral program in place
Three step phase in of rates over 13 months –
• 15% on 5/1/06, 25% on 1/1/07, then full increase on 6/1/07
53% of eligible customers have “opted-out” as of 7/6/06
Recovery of deferral balance, excluding interest costs, over
17 months, beginning 1/1/08
Assuming a 50% participation rate -
• Estimated deferral balance would build up to approximately
$55 million
• Estimated after-tax interest expense of approximately $3 million
incurred over the 37- month rate deferral and recovery period
18
19. Standard Offer Service
Maryland
Supply pricing became market based 7/1/04 for Pepco and Delmarva Power customers
35% - 39% total bill increase for residential customers effective 6/1/06
Deferral program in place
Three step phase in of rates over 12 months –
• 15% on 6/1/06, 15.7% on 3/1/07, then full increase on 6/1/07
2% of eligible Pepco and 1% of eligible Delmarva customers have
“opted-in” as of 7/6/06; the “opt-in” election period ends 7/15/06
Recovery of deferral balance, excluding interest costs, over 18
months, beginning 6/1/07
Assuming the current participation rates, the estimated deferral
balance would build up to approximately $1.6 million
Bill enacted by the General Assembly on 6/15/06
Extends the opt-in period beyond 7/1/06; PHI has proposed 7/15/06
Offsets a portion of the margin received for residential standard offer
service; estimated after-tax earnings impact is a reduction of $0.9 million over
the 30-month rate deferral and recovery period
19
20. Standard Offer Service
Virginia
Delmarva Power completed a competitive bid procedure to fulfill all of
its Virginia default supply obligations for the period June 2006 through May
2007
Delmarva Power filed a request for a rate increase with the Commission to
recover its higher cost of energy established by the competitive bid
procedure (would have resulted in a 43% total bill increase for residential
customers)
Order issued by the Commission on June 19, 2006:
Authorizes a fuel factor that will result in a 25% total bill increase for residential
customers
Authorized increase is based on a fuel index procedure that was put into place
when Delmarva Power sold its generating plants in 2000
Estimated after-tax earnings impact is a reduction of $3.6 million in 2006 and
$2.0 million in 2007
20
21. Conectiv Energy - Business Overview
Property, Plant & Equipment – 3/31/06 $1,302 million
Average Net Cost of Installed Capacity $352/kW
Number of Generating Units 52
Number of Plant Sites 18
Generating Capacity 3,692 MWs
1st Quarter 2006 Earnings $17.1 million
Bethlehem – 1,092 MW’s
Hay Road – 1,066 MW’s
Hay Road ~ 1,090 MWs Bethlehem ~ 1,092 MWs
21
22. Conectiv Energy – Business Drivers
Advantageous PJM location
● Flexible, multi-fuel capable plants
● Favorable PJM East locations
Focus Captures
Value Competitive capacity within the mid-merit supply in PJM East
● Significant ancillary service capabilities
● Minimal capital expenditures needed
Liquid PJM market provides hedging flexibility
Generation output and natural gas requirements highly hedged
Hedge Positions
in 2006
Enhance Value
Hedge position provides near-term predictability and preserves
long-term upside potential
Market conditions strengthening in PJM
● Continued PJM load growth
Improving Market
● Improving generation margins
Conditions
Amplify Value Minimal new PJM capacity additions planned
PJM considering new capacity pricing method that may
provide higher and more stable prices for capacity
22
23. Conectiv Energy –
Generation & Full Requirements Gross Margins*
$ 300
$300
$ 267
$ 248
$ 240
$250
Dollars in Millions
$ 240
$200
$ 200
$150
$100
$50
$0
2004 Actual 2005 Actual 2006 Forecast* 2007 Forecast*
Actual Results Forecast Annual Gross Margin*
* See Safe Harbor Statement at the beginning of today’s presentation.
See appendix for Other Power, Oil and Gas Marketing gross margins forecast.
See appendix for additional information regarding Generating and Full Requirements gross margins forecast.
23
24. Pepco Energy Services – Business Overview
Pepco Energy Services Q1 2006 2005 2004
• A retail energy supply and
energy services business
serving the commercial and
$370 $1,488 $1,167
Revenue
industrial (C&I) market.
$37 $130 $102
Gross Margin
• Entered the retail
competitive supply market in $5.5 $26 $13
Net Income
1999.
#7 #6 #6
Competitive Electric Supply Ranking*
• Fits well with PHI’s
2,447 12,612 8,087
GWh delivered to C&I retail customers
regulated utility business;
opportunity to serve
9.1 35.2 41.5
BCF delivered to C&I retail customers
customers who choose
alternative suppliers. Dollars in millions
*Based on KEMA Retail Marketer Survey
24
25. Pepco Energy Services Competitive Edge
Relationship-based Sales
– Not brand dependent
– 14 local sales offices
Conservative Supply Acquisition
– Manage toward a flat book; no speculative trading
Innovative Products
– Strong back office allows for tailored billing options
– Contract optionality creates value for both PES and customer by taking
advantage of changes in wholesale versus SOS rates
– ESCO business unit provides additional services to customers
Strong Earnings Growth
– 2005 earnings doubled versus 2004
– 2005 results indicative of near-term future earnings
– Going forward, earnings will depend on regulatory and market conditions
Note: See Safe Harbor Statement at the beginning of today’s presentation.
25
26. PHI Financial Performance
(Dollars in Millions)
Earnings excluding
Actual Earnings Special Items
Quarter Ended March 31, Quarter Ended March 31,
(Restated) (Restated)
2006 2005 2006 2005
Power Delivery
$37.6 $50.0 $37.6 $44.9
Conectiv Energy
$17.1 $4.5 $9.2 $4.5
Pepco Energy Services
$5.5 $2.6 $9.6 $2.6
Other Non-Regulated
$9.6 $12.6 $9.6 $12.6
Corporate & Other
($13.0) ($15.0) ($13.0) ($15.0)
Total PHI
$56.8 $54.7 $53.0 $49.6
Note: Management believes the special items are not representative of the Company’s core business operations. See Appendix
for details.
26
27. Capital Expenditures -
Covered by Internally Generated Funds
Capital Expenditures (1)
$600
$571
$36
$505 $500
$500 $480
$28 $30
$467 $26
$35
$400
$365
Millions
$336
$300
$370
$328 $392
$200
$100
$170
$141
$104 $100
$62
$0
2005 Actual 2006 Projection 2007 Projection 2008 Projection 2009 Projection
Transmission Distribution Competitive
(1) Excludes Mid-Atlantic Power Pathway project.
27
Note: See Safe Harbor Statement at the beginning of today’s presentation.
28. Strengthening the Balance Sheet
Total Debt and Preferred Stock
$7,000
$6,626
$6,376
$440 Total Reduction
$5,898
$577 = $1.14 B
$6,000
$5,488
$551
(Millions)
$523
$5,000
$6,186
$5,799
$5,347
$4,000 $4,965
$0
$3,000
(1) (2) (3) (4)
12/31/2002 12/31/2003 12/31/2004 12/31/2005
Other Debt & Preferred Transition Bond Debt
Common Equity Ratio (5) 32.5% 33.6% 38.1% 41.8%
Notes:
1) Other debt includes capital lease obligations ($135.4M), Company Obligated Mandatorily Redeemable Preferred Securities of Subsidiary Trust which holds Parent Junior
Subordinated Debentures ($290.0M), Mandatorily Redeemable Serial Preferred Stock ($47.5M), Serial Preferred Stock ($63.2M), Short-term debt ($1,362.4M) and Long-term debt
($4,287.5M).
2) Other debt includes capital lease obligations ($131.2M), Company Obligated Mandatorily Redeemable Preferred Securities of Subsidiary Trust which holds solely Parent Junior
Subordinated Debentures ($98.0M), Mandatorily Redeemable Serial Preferred Stock ($45.0M), Serial Preferred Stock ($63.2M), Short-term debt ($872.4M) and Long-term debt
($4,588.9M).
3) Other debt includes capital lease obligations ($127.0M), Serial Preferred Stock ($54.9M), Short-term debt ($802.5M) and Long-term debt ($4,362.1M).
4) Other debt includes capital lease obligations ($121.9M), Serial Preferred Stock ($45.9M), Short-term debt ($594.3M) and Long-term debt ($4,202.9M).
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5) Total capitalization excludes Transition Bond Debt and includes Pepco Energy Services’ Project Debt.
29. Stable, Secure Dividend
Attractive Dividend Yield
Indicated annual dividend
of $1.04 per share
5.0%
4.41%
4.0%
3.54%
3.0%
2.0%
Current dividend yield is
25% higher than the 1.0%
average dividend yield for
companies in the S&P 0.0%
Electric Utilities PHI S&P Electric Utilities
Notes: Dividend yield = Annual dividend per share / common stock price per share
Pricing data as of June 30, 2006
29
Source for S&P Electric Utilities information is Thomson Financial
30. Mirant
On July 5, 2006, the Bankruptcy Court held a hearing on the parties’ motion
to approve the settlement agreement between Pepco and Mirant arising out
of Mirant’s 2003 bankruptcy; a ruling is pending
Under the settlement, Pepco will allow Mirant to reject the back-to-back
agreement relating to Pepco’s power purchase agreement with Panda-
Brandywine L.P. in exchange for a payment of $450 million*
Pepco will place the $450 million in a special purpose account to be used
solely for the purpose of paying Pepco’s liabilities under the Panda power
purchase agreement
Pepco expects the $450 million to be treated as a regulatory liability on its
financial statements
Under the settlement, Pepco will receive $70 million* from Mirant in full and
final settlement of all other disputes, pre-petition and administrative claims,
and as reimbursement for Pepco’s legal fees; all pending litigation will be
dismissed
*Payment to be made in Mirant shares, which will be liquidated by Pepco. Mirant will pay Pepco, in cash, for any difference
between the $520 million payment ($450 million plus $70 million) and the net proceeds of the liquidation of the shares.
30
31. Why Invest in PHI ?
Growing regulated utility earnings base with
incremental earnings from competitive
energy businesses
Robust cash flow supports attractive
dividend rate and provides cash for growth
investments
On-going strengthening of the balance sheet
We’ve delivered on our commitments
Note: See Safe Harbor Statement at the beginning of today’s presentation.
31
33. Power Delivery Regulatory Summary
District of
Maryland Delaware New Jersey Virginia
Columbia
2005 MWh Distribution Sales(1) 39% 22% 18% 20% 1%
Retail Delivery Rate Cap Through December 2006 (unless Through August 2007 Caps expired April 2006 No caps Through
FERC transmission rates (unless FERC December
increase more than 10%) transmission rates 2010 (with
increase more than 10%) exceptions)
Provided
Default Service Provided through a PSC Provided through a PSC Provided through a PSC Provided through
a BPU approved through DPL
approved wholesale bidding approved wholesale approved wholesale
wholesale bidding managed
process; approximately bidding process; bidding process; fixed
competitive
annual margin of $2.75M process
0.2¢/kWh margin to Pepco / approximately 0.2¢/kWh
bidding
DPL margin to Pepco
process
In rate review case Ancillary service rate Annual pre-tax None
Recent Rate Case Outcomes In rate review cases mandated
mandated by the merger increase of $12.4M earnings increase
by the merger, it was shown that
settlement, it was shown effective 7/04; of approximately
the current delivery rates for
that the current delivery transmission service $20M effective
Pepco and DPL should not be
rates for Pepco should revenue filing pending 6/05
decreased, and that DPL was
not be decreased; no ($6.2 M); electric base
entitled to increase delivery
increase was allowed rate case, annual pre-tax
rates by $1.1M, effective 7/04,
under the settlement earnings decrease of $2.7
which was the only increase
million effective 5/06
allowed under the merger
settlements until 2007
33
(1) As a percentage of total PHI distribution sales.
34. Regulated Distribution - Pepco
(Dollars in Millions) District of Columbia Maryland
Date of Most Recent Data 12/31/05 3/31/06
Rate Base (1) $990.3 $748.0
Equity Ratio 47.34% 47.19%
Earned Return on Rate Base (as adjusted) (1) 5.67% 6.21%
Regulatory Earned Return on Equity (2) 5.07% 6.23%
11.10%(3) 11.00% (4)
Most Recent Authorized Return on Equity
Revenue Increase Necessary Based on Earned
Returns Shown Above at:
11.0% ROE $47.6 $28.5
Estimated total bill percentage increase (5) 7.3% 2.6%
10.5% ROE $43.5 $25.5
Estimated total bill percentage increase (5) 6.7% 2.3%
Anticipated Base Rate Case Filing Date Fall 2006 Summer 2006
Notes: (1) Data are taken from the most recent reports filed with the Company’s regulatory commissions. Such reports are developed
in accordance with Commission instructions, which are not necessarily the same as, and do not necessarily reflect, the
Company’s filing position in all respects.
(2) The Regulatory Earned return on Equity is computed by deducting the composite embedded costs of debt and preferred
stock from the Earned Return on Rate Base and dividing the remainder by the equity percentage in the capital structure.
(3) Formal Case No. 939, Order No. 10646 effective 7/11/95.
(4) Case No. 8791 Settlement, Order No. 74711 effective 12/1/98.
(5) Based on total billed revenues for 12 month period ending with the dates noted above.
34
35. Regulated Distribution - Delmarva Power
(Dollars in Millions) Delaware Maryland Virginia Delaware
– Electric – Electric – Electric - Gas
Date of Most Recent Report Data 12/31/05 12/31/05 12/31/05 3/31/06
Rate Base (1) $427.0 $271.8 $31.1 $233.0
Equity Ratio 47.05% 51.14% 51.32% 47.05%
Earned Return on Rate Base (as adjusted)(1) 7.53% 6.33% 8.01% 4.88%
Regulatory Earned Return on Equity (2) 10.17% 7.48% 10.40% 4.53%
10.00% (3) 11.90% (4) 11.05% (5) 10.50% (6)
Most Recent Authorized Return on Equity
Revenue Increase Necessary Based on Earned
Returns Shown Above at:
11.0% ROE $2.9 $8.3 $0.1 $12.0
Estimated Total Bill Percentage Increase (7) 0.5% 2.5% 0.2% 5.8%
10.5% ROE $1.2 $7.1 $0.0 $11.1
Estimated Total Bill Percentage Increase (7) 0.2% 2.2% 0.0% 5.3%
Anticipated Base Rate Case Filing Date N/A Summer N/A Summer
2006 2006
Notes: (1) Data are taken from the most recent reports filed with the Company’s regulatory commission. Such reports are developed in
accordance with Commission instructions, which are not necessarily the same as, and do not necessarily reflect the Company’s
filing position in all respects.
(2) The Regulatory Earned Return on Equity is computed by deducting the composite embedded costs of debt and preferred stock from
the Earned Return on Rate Base and dividing the remainder by the equity percentage in the capital structure.
(3) Docket No. 05-304, Order No. 6903, effective 5/1/06.
(4) Case No. 8492 Settlement, Order No. 70415, effective 4/1/93.
(5) PUE 930036, effective 10/5/93.
(6) Docket No. 03-127, Order No. 6327, effective 12/9/03.
35
(7) Based on total billed revenues for 12 month period ending with the dates noted above.
36. Regulated Distribution – Atlantic City Electric
(Dollars in Millions)
New Jersey
Date of Most Recent Report Data 12/31/02
*
$654.9
Rate Base
Equity ratio (as stipulated) 46.22%
*
8.14%
Earned Return on Rate Base (as adjusted)
Not stipulated in
Regulatory Earned Return on Equity
settlement
Not stipulated in
Most Recent Authorized Return on Equity
settlement
New Jersey rate case settled effective June 2005
Annual pre-tax earnings increase of approximately $20 million
* Data are taken from the Company’s approved settlement agreement in the most recent rate case. The Company
does not file a periodic report with the New Jersey Board of Public Utilities.
36
37. Power Delivery - Infrastructure Investment Strategy
Major Transmission Construction Projects (1)
Dollars in Millions
S ch ed u led P ro ject
U tility In S erv ice T o ta l
N ew 2 3 0 K V T ra n sm issio n L in e b etw een C a rd iff a n d O y ster C reek ACE Jun 2005 $ 112
to en h a n ce relia b ility in so u th ern N ew J ersey ; in clu d ed in P J M
RTEP
N ew 2 3 0 K V T ra n sm issio n L in e a n d S u b sta tio n to rep la ce B L ACE D ec 2 0 0 7 82
E n g la n d g en era tin g sta tio n ; in clu d ed in P J M R T E P
N ew A llo w a y 5 0 0 /2 3 0 K V T ra n sm issio n S u b sta tio n to a llev ia te P J M ACE M ay 2008 62
S y stem o v erlo a d co n tin g en cy p ro b lem ; in clu d ed in P J M R T E P (L a n d
a n d p erm its to b e o b ta in ed in 2 0 0 6 )
N ew 2 3 0 K V T ra n sm issio n L in e b etw een R ed L io n , M ilfo rd a n d DPL Jun 2006 62
In d ia n R iv er su b sta tio n s to m eet so u th ern p en in su la im p o rt
ca p a b ility req u irem en ts; in clu d ed in P J M R T E P
N ew 2 3 0 K V u n d erg ro u n d T ra n sm issio n L in es b etw een P a lm ers P ep co M ay 2007 70
C o rn er, M D a n d B lu e P la in s, M D /D C to rep la ce th e tra n sm issio n
ca p a b ility o f M ira n t's P o to m a c R iv er g en era tin g sta tio n , w h ich m a y
b e clo sed d o w n ; in clu d ed in P J M R T E P
(2 )
$ 388
T o ta l M a jo r T ra n sm issio n P ro jects
(1 ) E x c lu d e s M id -A tla n tic P o w e r P a th w a y p ro je ct.
(2 ) P ro jects in clu d ed in th e R eg io n a l T ra n sm issio n E x p a n sio n P la n (R T E P ) m a n d a ted b y P J M In terco n n ectio n , a F E R C a p p ro ved R eg io n a l
T ra n sm issio n O rg a n iza tio n (R T O ).
N o te: S ee S a fe H a rb o r S ta tem en t a t th e b eg in n in g o f to d a y's p resen ta tio n .
37
38. Conectiv Energy - Power, Oil and Gas Marketing
● Within this grouping the following major activities are housed:
- Oil marketing through our subsidiary Petron Oil Company
- Power and Gas Origination activities
- Short term power marketing via our real time desk
- Third party asset management contracts
● Overall, our expectations from this segment are gross margins
in a range of $15-$25 million*
38
* See Safe Harbor Statement at the beginning of today’s presentation.
39. Conectiv Energy –
Generation & Full Requirements Forecasts*
● 2006 margins are likely to be impacted by several factors, compared to 2005:
↓ Lower value from standard product hedges
↓ Expiration of tolling contract May 1, 2006
↓ Weather
↑ Expiration of POLR contracts
↑ Option value of plants during summer peak period is regained
● 2007 margins reflect anticipated improvements over 2006 projections:
↑ Higher capacity prices
↑ Improved margins on standard product hedges
↑ Higher output, reflecting improved supply/demand fundamentals
↑ Re-pricing of POLR/SOS contracts
39
* See Safe Harbor Statement at the beginning of today’s presentation.
40. Conectiv Energy - Critical Assumptions*
Our forecasted generation and load serving margins reflect an
improving PJM market and the following critical assumptions:
- 2006 generation is highly hedged
- Merchant generation energy and capacity margin improvements
beginning in 2007
- Generation output of 5.0 to 5.5 GWh’s in 2006
- Generation output of 5.7 to 6.2 GWh’s in 2007
- No change in PJM operating or dispatching rules
- Maintaining improvements in plant availability and on-dispatch
results
- Hedge effectiveness is maintained
- Re-pricing of POLR/SOS contracts at more favorable margins
- No replacement of existing tolling agreement
- Replacement of standard product hedges at more favorable margins
40
* See Safe Harbor Statement at the beginning of today’s presentation.
41. Reconciliation of Earnings Per Share
GAAP EPS Reconciled to EPS Excluding Special Items
Three Months Ended
March 31,
Earnings per Share
(Restated)
2006 2005
Reported (GAAP) Earnings per Share $0.29 $0.29
Special Items:
Gain on disposition of interest in co-generation facility (0.04) -
Impairment loss on energy services assets 0.02 -
New Jersey base rate case settlement - (0.03)
Earnings Per Share, Excluding Special Items $0.27 $0.26
41
Note: Management believes the special items are not representative of the Company’s core business operations.
42. Reconciliation of Net Earnings
GAAP Earnings Reconciled to Earnings Excluding Special Items
Three Months Ended
March 31,
Net Earnings – Dollars in Millions
(Restated)
2006 2005
Reported (GAAP) Net Earnings $56.8 $54.7
Special Items:
Gain on disposition of interest in co-generation facility (7.9) -
Impairment loss on energy services assets 4.1 -
New Jersey base rate case settlement - (5.1)
Net Earnings, Excluding Special Items $53.0 $49.6
42
Note: Management believes the special items are not representative of the Company’s core business operations.
43. Reconciliation of Operating Income
Reported Operating Income Reconciled to Operating Income Excluding Special Items
For the twelve months ended March 31, 2006
Pepco Other
Power Conectiv Energy Non- Corporate PHI
Delivery Energy Services Regulated & Other Consolidated
$666.2 $112.7 $47.3 $86.1 $2.3 $914.6
Reported Segment Operating Income
Percent of operating income 72.8% 12.3% 5.2% 9.4% 0.3% 100.0%
Special Items:
(68.1) (68.1)
Gain on sale of non utility land, Buzzard Point
(70.5) (70.5)
Gain on sale of Pepco Mirant claims
(13.3) (13.3)
Final liquidation of Financial Investment
6.3 6.3
Impairment loss on energy services assets
$527.6 $112.7 $53.6 $72.8 $2.3 $769.0
Operating Income excluding Special Items
68.6% 14.7% 7.0% 9.5% 0.2% 100.0%
Percent of operating income excluding special items
Note: Management believes the special items are not representative of the Company’s core business operations.
43