Company Overview of Atlantic City Electric Company
Atlantic City Electric Company is engaged in the transmission, distribution, and supply of electricity to residential, commercial, and industrial customers in southern New Jersey. The company’s electric distribution service territory covers approximately 2,700 square miles serving a population of approximately 1.1 million in Gloucester, Camden, Burlington, Ocean, Atlantic, Cape May, Cumberland, and Salem counties. The company was incorporated in 1924 and is based in Newark, Delaware. Atlantic City Electric Company operates as a subsidiary of Conectiv, LLC.
500 North Wakefield Drive
Newark, DE 19702
Founded in 1924
Key Executives for Atlantic City Electric Company
Chief Executive Officer and President
Chairman, Chairman of the Board of Pepco Holdings Inc ,Chief Executive Officer of Pepco Holdings Inc and President of Pepco Holdings Inc
Chief Executive Officer Pepco Energy Services Inc and President of Pepco Energy Services Inc
Region President of Atlantic City Electric
Compensation as of Fiscal Year 2014.
Atlantic City Electric Company Key Developments
Atlantic City Electric Extends Labor Contract
Jun 20 14
Atlantic City Electric reached an agreement with the labor union that represent its bargaining unit employees to extend the current collective bargaining agreements by three years. The contract with IBEW Local 210, which represents employees in the Atlantic City Electric region, will now expire in 2018. IBEW Local 1238 represents employees who work in New Jersey at Carneys Point and handle calls of ACE customers. That collective bargaining agreement also has been extended and will now expire in 2020. Pepco Holdings Inc., on April 30 announced a merger with Chicago-based Exelon Corp. That transaction is expected to be completed by the second or third quarter of 2015. Exelon has committed to no net involuntary merger-related job losses of PHI utility employees for at least two years after the merger and to honor all collective bargaining agreements. Atlantic City Electric has also committed to hire a substantial number of bargaining unit employees after the merger is completed.
Pepco Holdings, Inc., Potomac Electric Power Company, Delmarva Power & Light Company, and Atlantic City Electric Company, Enter into an Amendment and Consent to Second Amended and Restated Credit Agreement
May 20 14
On May 20, 2014, Pepco Holdings, Inc., Potomac Electric Power Company (Pepco), Delmarva Power & Light Company (DPL), and Atlantic City Electric Company, entered into an Amendment and Consent to Second Amended and Restated Credit Agreement among certain Lenders, Bank of America, N.A., as syndication agent and as an issuer of letters of credit, and Wells Fargo Bank, National Association, as agent on behalf of the various financial institutions from time to time party to that certain Second Amended and Restated Credit Agreement dated as of August 1, 2011, and as amended on August 2, 2012 and extended on June 6, 2013, as the swingline lender and as an issuer of letters of credit. In the ordinary course of business, the Lenders and their respective affiliates have from time to time performed and may in the future perform various financial advisory, commercial banking, investment banking and treasury services for the Borrowers, for which they received, or will continue to receive, customary fees or compensation. In addition, affiliates of certain of the Lenders are paying agents under the Borrowers’ respective commercial paper programs.
New Jersey Board of Public Utilities Approves Stipulation of Settlement with Respect to Petition Filed by Atlantic City Electric Company to its Electric Distribution Base Rates
Jun 24 13
At its public meeting on June 21, 2013, the New Jersey Board of Public Utilities (the NJBPU) announced its approval of a stipulation of settlement signed by the parties (the Settlement) with respect to a petition filed by Atlantic City Electric Company (ACE) to increase ACE's electric distribution base rates. The Settlement provides for an annual increase in ACE's electric distribution base rates by the net amount of approximately $25.5 million, exclusive of New Jersey sales and use tax related to the increase in base rates, and is based on a specified return on equity of 9.75%. The Settlement provides that the approved increase includes full recovery of the approximately $70.0 million in incremental storm restoration costs incurred as a result of recent major storm events, including the Derecho in June 2012 and Hurricane Sandy in October 2012, by including the related capital costs of $44.2 million in rate base and amortizing the related deferred operation and maintenance expenses of $25.8 million over a three-year period. In addition, depreciation expense will be reduced effective July 1, 2013 by approximately $8.3 million per year. The annual pre-tax earnings impact of the rate increase, along with the changes in depreciation and amortization expense and other miscellaneous items, is approximately $24.9 million. The new rates will become effective for utility services rendered on and after July 1, 2013. In light of this settlement, ACE intends to reduce its distribution and other related capital expenditures by an aggregate amount of approximately $150 million through 2015. In addition, ACE is considering other actions to more closely align its spending in New Jersey to the revenue received.
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