Pepco

The company's predecessor, Potomac Electric Co., was organized in 1891 to provide street lighting and streetcar power in Georgetown and Northwest D.C.{{cite news | url=https://www.washingtonpost.com/archive/business/1996/04/26/the-company-that-stayed-current/2e32dbd7-7b9a-4d44-b89d-7baaa6b36a31/ | title=THE COMPANY THAT STAYED CURRENT | first=Martha M. | last=Hamilton | newspaper=The Washington Post | date=April 26, 1996}} After suffering during the Panic of 1893, the company filed bankruptcy and, on November 6, 1895, was acquired by Oscar T. Crosby and Charles A. Lieb for $5,500.

The company was incorporated as Potomac Electric Power Company on April 28, 1896 in Virginia. It became a subsidiary of the North American Company, which owned the Washington Traction and Electric Company, one of the private streetcar companies in Washington.

On December 17, 1896, after a court battle, the company received a contract to light the city of Washington, D.C.

In January 1889, the company merged with its rival, United States Electric Lighting Company.

In 1899, the company merged with Washington Traction and Electric Company.

In June 1901, the company filed for bankruptcy and was acquired by the Washington Railway and Electric Company.

In 1905, revenues exceeded $1 million for the first time.

In 1906, the company began construction of the first unit of the Benning Road Power Plant, along the Anacostia River. When its last unit was completed in 1931, the power plant had a 185,000-kilowatt capacity.

In 1928, the North American Company, a holding company that owned many public utilities, gained control of Washington Railway and Electric.

The Public Utility Holding Company Act was enacted in 1935 to force the breakup of large utility holding companies. Under this law, the Securities and Exchange Commission in 1942 ordered the North American Company and its subsidiaries to split up.{{cite news|title=Utility is told to cut links with 56 units|work=Chicago Tribune|date=April 15, 1942|agency=AP|url=https://www.newspapers.com/clip/77265183/utility-is-told-to-cut-links-with-56/|via=Newspapers.com}} A years-long legal battle ensued, culminating in a Supreme Court decision upholding the order.{{cite news|title=Top court upholds death sentence act|work=The Charlotte Observer|date=April 2, 1946|agency=AP|url=https://www.newspapers.com/clip/77265696/top-court-upholds-death-sentence-act/|via=Newspapers.com}} As a result, Pepco's stock was distributed to Washington Railway's shareholders in December 1947, making Pepco an independent, publicly traded company.{{cite news|title=New Pepco common listed on New York and D.C. exchanges|work=Washington Evening Star|author=Edward C. Stone|date=November 21, 1947|url=https://chroniclingamerica.loc.gov/lccn/sn83045462/1947-11-21/ed-1/seq-19/|via=Library of Congress}}{{cite news|title=SEC approves stock plan|work=Washington Evening Star|author=Edward C. Stone|date=November 18, 1947|url=https://chroniclingamerica.loc.gov/lccn/sn83045462/1947-11-18/ed-1/seq-19/|via=Library of Congress}}

In 1954, revenue exceeded $50 million for the first time.

In 1969, the company suspended its dividend due to rising costs.

In 1980, the company cancelled plans to build a $930 million power plant in Montgomery County as a result of reduced demand.{{cite news | url=https://www.washingtonpost.com/archive/business/1980/06/20/pepco-to-build-no-new-plants-for-ten-years/ae335f41-3849-47ea-b2ba-f509a0668079/ | title=Pepco to Build No New Plants For Ten Years | first=Jerry | last=Knight | newspaper=The Washington Post | date=June 20, 1980}}

In September 1995, the company announced a merger with Baltimore Gas & Electric;{{cite news | url=https://www.washingtonpost.com/archive/politics/1995/09/26/pepco-to-merge-with-baltimore-gas-electric/438cda5e-ab05-444b-a6e7-8491537ca07f/ | title=PEPCO TO MERGE WITH BALTIMORE GAS & ELECTRIC | first=Daniel | last=Southerl | newspaper=The Washington Post | date=September 26, 1995}} however, the merger was cancelled in December 1997.{{cite news | url=https://www.washingtonpost.com/archive/politics/1997/12/23/pepco-baltimore-gas-cancel-two-year-old-plan-to-merge/736dbed4-b9d4-46cb-abc7-0da6fc750e15/ | title=PEPCO, BALTIMORE GAS CANCEL TWO-YEAR-OLD PLAN TO MERGE | first=Martha M. | last=Hamilton | newspaper=The Washington Post | date=December 23, 1997}}

In 2001, Pepco agreed to acquire Conectiv Power Delivery, the parent company of Delmarva Power and Atlantic City Electric, for $2.2 billion.{{cite news|title=Pepco set to acquire Conectiv|work=Baltimore Sun|date=February 13, 2001|author=Dan Thanh Dang|url=https://www.baltimoresun.com/news/bs-xpm-2001-02-13-0102130032-story.html|accessdate=2022-07-10}} The purchase was completed in 2002, with Pepco and Conectiv becoming subsidiaries of a newly formed holding company, Pepco Holdings.{{cite news|title=Pepco and Conectiv complete merger|newspaper=The Washington Post|date=August 2, 2002|author=Marty Nil|url=https://www.washingtonpost.com/archive/business/2002/08/02/pepco-and-conectiv-complete-merger/468a6fcf-2d90-4760-b738-f769ea214c20/|accessdate=2022-07-10}} In 2003, Pepco's investment subsidiary, Potomac Capital Investment, was transferred to Pepco Holdings.{{cite news | url=https://www.bizjournals.com/washington/stories/2003/06/16/daily10.html | title=Pepco Holdings absorbs investment arm | first=Jeff | last=Clabaugh | work=American City Business Journals | date=June 17, 2003}}

In 2014, Pepco Holdings agreed to be acquired by Exelon for $6.8 billion.{{cite news|title=Hoping for stability, utility operator Exelon agrees to buy Pepco for $6.8 billion|work=The New York Times|author=Michael J. de la Merced|date=April 30, 2014|url=https://dealbook.nytimes.com/2014/04/30/utility-operator-exelon-to-buy-pepco-for-6-8-billion/|access-date=2021-05-08}} The deal faced opposition from Pepco customers and from officials in Washington and Maryland, but was ultimately approved.{{cite news|title=A brief history of the Exelon-Pepco merger saga|work=Utility Dive|author=Gavin Bade|date=February 25, 2016|url=https://www.utilitydive.com/news/updated-a-brief-history-of-the-exelon-pepco-merger-saga/414573/|access-date=2021-05-08}} The acquisition was completed on March 23, 2016, making Pepco a subsidiary of Exelon.{{cite press release | url=http://www.exeloncorp.com/newsroom/merger-close | title=Pepco Holdings and Exelon close merger following approval by the Public Service Commission of the District of Columbia | publisher=Exelon | date=March 23, 2016|access-date=2021-05-08}}{{cite news | url=http://www.baltimoresun.com/business/bs-bz-exelon-pepco-approved-20160323-story.html | title=BGE owner Exelon closes $6.9 billion deal to buy Pepco | author=Scott Dance | work=Baltimore Sun | date=March 23, 2016|access-date=2021-05-08}}

An investigation by The Washington Post in 2010 faulted Pepco for poor reliability. The report noted that the company's performance had slipped since 2005, comparing poorly to other major utilities in the frequency and duration of power outages. Thousands of people lost power for as many as five days after only 5–8 inches of heavy wet snow.{{cite news | last1=Stephens | first1=Joe | last2=Flaherty | first2=Mary Pat | title=Why Pepco Can't Keep the Lights On | newspaper=The Washington Post | url=https://www.washingtonpost.com/wp-dyn/content/article/2010/12/04/AR2010120403721.html |date=December 5, 2010}} In 2011, Business Insider named the company first on its list of "The 19 Most Hated Companies In America" based on its American Customer Satisfaction Index rating.{{cite news | first1=Gus | last1=Lubin | first2=Vivian | last2=Giang | title=The 19 Most Hated Companies In America | url=http://www.businessinsider.com/most-hated-companies-america-2011-6?op=1 | work=Business Insider | date=June 29, 2011}}

During the June 2012 North American derecho, more than half of the customers in Montgomery County, Maryland lost electric power. The company was criticized for being slow to restore power and for charging its customers for the power outage.{{cite news | url=https://wjla.com/news/local/pepco-bge-to-make-money-from-power-outage-77905 | title=Pepco, BGE to make money from power outage | first1=Mary Kay | last1=Mallonee | first2=Jummy | last2=Olabanji | first3=Tom | last3=Roussey | work=WJLA-TV | date=July 16, 2012}}

The Coast Guard, along with local agencies, are responding to a mineral oil spill in the Potomac River near Alexandria, Va. on Monday, January 24. Pepco employees notified the Coast Guard Sunday at 12:40 p.m., reporting approximately 5,000 gallons of mineral oil was believed to have leaked from a transformer at the Pepco substation in Alexandria. It was also reported, that an additional 500 gallons had leaked into the Potomac River. Coast Guard Sector Baltimore’s Incident Management Division personnel arrived on scene at approximately 2 p.m. Sunday and conducted a shoreline assessment of the area. Triumvirate Environmental and Clean Harbors have been hired by Pepco to contain and dispose of the oil. The oil that reached the waterway has been contained by boom. The cause of the spill is under investigation. USCG Sector Baltimore contacted NOAA SSC early evening on Tuesday, Jan. 25. USCG reported that mineral oil was not dispersing and requested information from NOAA about toxicity concerns if any, and rate of dispersion. Chris Barker, Robert Jones, and Gary Shigenaka provided support.{{Cite web |title=Potomac River Mineral Oil Spill; Alexandria, VA {{!}} IncidentNews {{!}} NOAA |url=https://incidentnews.noaa.gov/incident/8284 |access-date=2025-03-11 |website=incidentnews.noaa.gov}}

The company's Benning Road Power Plant produced air pollution that negatively affected neighboring communities. In 2017, the company agreed to pay regulators $1.6 million for violations of the Clean Water Act.{{cite press release | url=https://www.justice.gov/opa/pr/justice-department-and-epa-reach-clean-water-act-settlement-pepco-reduce-pollution-anacostia | title=The Justice Department and EPA Reach Clean Water Act Settlement with Pepco to Reduce Pollution to Anacostia River | publisher=United States Department of Justice | date=January 13, 2017}} In October 2023, Pepco agreed to pay $47 million in costs and $10 million in penalties to D.C. for decades of discharging toxic chemicals in the city, affecting the Anacostia River and other areas.{{Cite news |last=Moyer |first=Justin Wm |date=2023-10-04 |title=Pepco to pay D.C. more than $57 million for Anacostia River pollution |language=en-US |work=Washington Post |url=https://www.washingtonpost.com/dc-md-va/2023/10/03/pepco-anacostia-pollution/ |access-date=2023-12-10 |issn=0190-8286}}

In March 2022, the D.C. Office of the Attorney General and the Office of the People’s Counsel alleged Pepco was committing a "pattern of systemic violations" in carrying out community solar panel installations.{{cite web|url=https://edocket.dcpsc.org/apis/api/Filing/download?attachId=147448&guidFileName=c21ed028-fde4-4db9-981e-f729d69b5556.pdf|title=Court document|website=edocket.dcpsc.org|access-date=25 September 2023}} According to the complaint, Pepco has botched its handling of community solar projects in numerous ways. The utility is undercounting solar energy generation at community solar projects, according to the filing, and is “systematically failing” to provide accurate and timely solar credits to customers.{{Cite web|url=https://dcist.com/story/22/03/23/pepco-systematically-mishandling-solar-projects-ag-racine/|archive-url=https://web.archive.org/web/20220323213318/https://dcist.com/story/22/03/23/pepco-systematically-mishandling-solar-projects-ag-racine/|url-status=live|archive-date=March 23, 2022|title = Pepco 'Systematically Mishandling' Solar Projects, Says DC AG}}

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Category:1896 establishments in Washington, D.C.

Category:American companies established in 1896

Category:Energy companies established in 1896

Category:Electric power companies of the United States

Category:Exelon

Category:Privately held companies based in Washington, D.C.