PEPCO HOLDINGS LLC

What Do They Do?

Provides regulated electricity and natural gas delivery, plus transmission services, to households, businesses and government customers through its utility subsidiaries.

How Do They Make Money?

Customers pay regulated rates for electricity and gas delivered to them, generally within the month after delivery. PJM pays weekly for transmission services.

Year to Dec 2015 revenue

Who Are Their Customers?

Utilities bill households, businesses and government customers under regulated tariffs for electricity and, in some areas, natural gas. Some customers choose a competitive supplier for the energy, while the utility continues to deliver it.

Do Revenues Turn Into Profits?

Yes. It kept 7 cents of every revenue dollar as net income in Year to Dec 2015, but spent more cash than it brought in: free cash flow was −$291M.

Operating income, Year to Dec 2015

13% of revenue

▲ +11% vs Year to Dec 2014 ($604M, 12%)

Net income, Year to Dec 2015

7% of revenue

▲ +35% vs Year to Dec 2014 ($242M, 5%)

Free cash flow, Year to Dec 2015

−6% of revenue

▼ −21% (Loss) vs Year to Dec 2014 (−$369M, −8%)

How Are They Changing?

Flat. Revenue was $5B in Year to Dec 2015, about the same as the $5B of Year to Dec 2011.

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