Delmarva Power State of the Company
Presented by: Denis O’Brien Senior Executive Vice President of Exelon, CEO of Exelon UtilitiesDave Velazquez President and CEO of Pepco HoldingsGary Stockbridge Regional President, Delmarva Power
June 6, 2017
Exelon Utilities: Overview
$46MIn 2016, Exelon gave approx. $46 million to charitable and community causes
10MSix utilities serving 10M electric and gas customers, the most in the U.S. #1
Fortune 100Fortune Magazine’s list of “World’s Most Admired Companies”
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24.1M mi2Combined service territory
17,400Employees
7.4MSmart meters installed
Zero-carbon energy provider in America
Confidential And Proprietary. For Exelon Internal Discussion Purposes Only.
Vision for the Exelon utilities
Our commitment is to efficiently deliver safe, affordable, reliable, and clean energy and innovative services that benefit our customers and communities
We will provide smart energy solutions to enable our customers to better understand and manage their individual energy needs
We will be the platform through which customers seamlessly connect to energy networks, devices, and information
We will offer our employees an engaging and inclusive environment, our shareholders strong returns, and our partners and communities development opportunities
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What this Means for Pepco Holdings
Peer Groups
Mutual Assistance
Best Practices
Key Performance Indicators
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Local & DiverseSuppliers
Pepco HoldingsPresented by Dave Velazquez
Pepco Holdings: Overview
2002Incorporated
2016Exelon Merger
Pepco801,000 Electric Customers
Delmarva Power• 314,000 Electric
Customers (DE)
• 202,000 Electric Customers (MD)
• 131,000 Natural Gas Customers (DE)
Atlantic City Electric545,000 Electric Customers
8,340Square mile service territory
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4,600PHI Employees
Pepco Holdings Energized Through Exelon
Recordable Injuries
Responsible Vehicle Incidents
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11
2014 Natural Capital Leader, GreenBiz Group and Trucost
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S&P 500 top rank Carbon Disclosure and Performance as named by the Carbon Disclosure Program
Collaboration opportunities
DELMARVA POWERDELAWARE2016 SAFETY
Recognized as Tree Line USA utility
ExelonInnovation Expo
PHI Merger Integration on Track
Human Performance
Group
Reliability Performance
Summer & Winter Readiness
PHI commitments
Supplier Diversity
Workforce Development &
Job Commitment
729Delaware
commitments, 82 closed
180
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Value of Direct Customer Benefits
$72M
Key Areas of Focus
RELIABILITY & OPERATIONAL
EXCELLENCE
REGULATORY & FINANCIAL
OUTCOMES
ENGAGEMENT & INTEGRATION
SAFETY
CUSTOMER
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Delmarva PowerPresented by Gary Stockbridge
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Delmarva Power powers economies, connects communities, and secures a safe and brighter future for our customers.
We advance technologies that empower customers,
promote sustainable solutions and drive a 21st
century economy.
We engage our colleagues and energize
the diverse, local communities where we
live and work.
We provide our customers with
safe, reliable and affordable energy.
PROMISE PROGRESSPURPOSE
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Providing Customers with Safe, Reliable, Affordable Energy
131,000Gas customers
1.4MPopulation served
400 membersIBEW Local 1238
250 membersIBEW Local 1307 (Salisbury)
1909 Incorporated
10Facilities
9 Municipal, 2 Cooperative utilities
5,000sq. mile service territory
516,000Electric customers- Delaware: 314,000 - Maryland: 202,000
890 + 700DPL Employees plus Service Co
182Substations
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Purpose: Significant Strides in Customer Satisfaction
Delaware Customers
1st Quartile Reliability SatisfactionMSI Peer Utilities
Top 3 – East MidsizeRegion – JD PowerBusiness Customer Satisfaction
Top 3 – East MidsizeRegion – JD PowerResidential Customer Satisfaction
Overall Satisfaction Satisfaction with Reliability
2012 73% 86%
2013 74% 90%
2014 78% 91%
2015 78% 90%
2016 79% 92%
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Purpose: Electric and Natural Gas Rates Remain Stable
Average monthly residential customer bill based on 1,000 kWh for electric and 120 Ccf usage for natural gas.
Average Monthly Residential Customer Bill
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Natural GasElectric
$34 $40 $42 $42 $43
$0
$20
$40
$60
$80
$100
$120
$140
$160
Summer '12 Summer '13 Summer '14 Summer '15 Summer '16
Electric Distribution Electric Transmission Electric Supply
$59 $64 $64 $66 $75
$0
$20
$40
$60
$80
$100
$120
$140
$160
Winter '12/'13 Winter '13/'14 Winter '14/'15 Winter '15/'16 Winter '16/'17
Gas Delivery Gas Supply
EEI(2)
Cents/kWhEIA(3)
Cents/kWhElectricity Local(1)
Cents/kWh
Purpose: Electric Rates Remain Regionally Competitive
Delaware Electricity Rate ComparisonTotal utility bill including supply, transmission and distribution
National Average
Residential
Commercial
Industrial
Residential
Commercial
Industrial
Residential
Commercial
Industrial
13.58
10.13
8.36
13.3
10.52
8.57
13.37
10.58
7.58
13.94
10.99
7.94
14.25
11.57
8.33
14.16
10.87
7.58
11.88
10.09
6.67
12.12
10.29
6.82
12.82
10.48
6.63
4.15
2.86
1.42
5.23
3.4
1.38
(1) Electricity local October 2016 web site data (regional data does not include DC)(2) Edison Electric Institute Typical bills and average rate report winter 2016 (total for all utilities)(3) US Energy Information Administration February 2017 Average Price of Electricity to Ultimate Customers
Regional Comparison: Virginia, Maryland, Delaware, New Jersey, Washington DC, New York and Pennsylvania
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EEI(2)
Cents/kWh
Delaware
3.78
2.24
0.73
Delaware Total Bill Delmarva PowerDistribution Only
Purpose: Natural Gas Supply Cost RemainsRegionally Competitive
$-
$1.00
$2.00
$3.00
$4.00
$5.00
$6.00
$7.00
$8.00
$9.00
ChesapeakeUtilities
BaltimoreGas &
Electric
PhiladelphiaGas Works
SouthJersey Gas
DelmaraPower
WashingtonGas Light
UGI Utilities,Inc.
PECO PublicService
Electric &Gas
ColumbiaPA
Price per Ccf—equals the price per volume of 100 cubic feet (cf) of natural gas
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Purpose: Capital Investments Provide Reliability for Customers
2012 - $76M
2013 - $62M
2014 - $53M
2015 - $58M
2016 - $54M
2012 - $27M
2013 - $25M
2014 - $32M
2015 - $37M
2016 - $32M
2012 - $80M
2013 - $80M
2014 - $73M
2015 - $69M
2016 - $69M
NATURAL GASTRANSMISSIONDISTRIBUTION*
Our focus is to provide the right balance betweencustomer satisfaction, appropriate capital investmentsand impact to rates.
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*Delmarva Power is focused on meeting its merger commitment on future capital spend
Purpose: Reliability Means Fewer Outages & Faster Restoration
SAIDI – The System Average Interruption Duration Index is the average outage duration (minutes) for each customer:
101 Delmarva Power Delaware 2016
Delmarva Power Delaware 2016
Quartile*
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SAIFI – The System Average Interruption Frequency Index is the average number of interruptions that a customer experiences:
0.99
2nd
Quartile*2nd
*Quartile rankings based on IEEE 2016 benchmark standards
Purpose: Providing Safe, Reliable, Affordable Natural Gas
130,000Natural Gas Customers
4,300EmergencyCalls
99.6%Gas Odor On-TimeCall Response
3.16Gas CustomerUnplanned Outagesper 1,000 customers
7.1 MilesGas MainReplacement
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1,727New NaturalGas Customers
Promise: Connecting with our Community
$1.1M 2016 Charitable Contributions
$3.4M Charitable Contributions 2012-2015
70Board Leadership Positions
4,456Volunteer Hours
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Year Ahead
Pay-As-You-GoMeter Pilot Electric Vehicle
Initiative
Maintain ReliabilityMaintain Reliability
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Technology SymposiumTechnology Symposium
Merger CommitmentsMerger Commitments
Artificial Island
Customer FocusCustomer Focus
