Dive Brief:
- Exelon reported adjusted fourth quarter 2014 earnings of $18 million, a significant drop from the $495 million the company posted in the same quarter a year before.
- The company's ComEd and PECO utility subsidiaries both faced milder weather, which hurt earnings.
- The company gave an update on its proposed merger with Pepco Holdings, saying it believes the deal will close in the second or third quarter of this year.
Dive Insight:
The Wall Street Journal reports milder weather and higher expenses hurt Exelon's earnings in the fourth quarter last year, though the company's revenue still topped analyst expectations.
“Exelon had a strong year, both operationally and financially. We delivered earnings within our guidance range, and our generation fleet and utilities continued to perform at high levels,” said Exelon President and CEO Christopher Crane.
ComEd’s adjusted non-GAAP operating earnings in the fourth quarter were down $34 million from the same quarter in 2013, Exelon said, primarily due to the impacts of a December 2014 extension of bonus income tax depreciation on distribution and transmission formula earnings and unfavorable weather conditions and volume in ComEd's service territory in northern Illinois.
Similarly, PECO's operating earnings in the fourth quarter of 2014 decreased $4 million from the same quarter in 2013, primarily due to unfavorable weather conditions in southeastern Pennsylvania.
“We made several investments to grow the company, including the proposed merger with Pepco Holdings, Inc. and the acquisition of Integrys Energy Services, and we continue to strengthen our balance sheet for long-term growth," Crane said.
Exelon is still hoping to close its merger with Pepco Holdings in the second or third quarter of the year, and recently received approval from regulators in New Jersey and reached a settlement with consumer advocates and regulatory staff in Delaware.
