Seeking Alpha
We cover over 5K calls/quarter
Profile| Send Message|
( followers)  

Pepco Holdings, Inc. (NYSE:POM)

Q4 FY07 Earnings Call

March 3, 2008, 10:00 AM EST

Executives

Donna Kinzel - IR

Dennis R. Wraase - Chairman of the Board, President and CEO

Paul Barry - Sr. VP and CFO

Analysts

Daniel Eggers - Credit Suisse

Paul Ridzon - KeyBanc

Andrew Levy - Brencourt

Operator

Good day ladies and gentlemen, and welcome to the Fourth Quarter 2007 Pepco Holdings Incorporated Earnings Conference Call. My name is Katrina, and I will be your coordinator for today. At this time all participants are in a listen-only mode. We will conduct a question-and-answer session towards the end of this conference. [Operator Instructions]. As a reminder, this conference is being recorded for replay purposes.

I would now like to turn the presentation over to your host for today's call, Ms. Donna Kinzel, Director of Investor Relations. Please proceed.

Donna Kinzel - Investor Relations

Thank you Katrina. Good morning ladies and gentlemen, and welcome to the Pepco Holdings fourth quarter 2007 earnings conference call. The primary speakers on today's call will be Dennis Wraase, Chairman, President and Chief Executive Officer; and Paul Barry, Senior Vice President and Chief Financial Officer. In addition available to answer your questions are Joe Rigby, Executive Vice President and Chief Operating Officer and the Business Leader of Power Delivery; Dave Velazquez, President and Chief Executive Officer, Conectiv Energy; and John Huffman, President and Chief Operating Officer of Pepco Energy Services.

Before Dennis begins, let me remind you that some of the comments made during today's conference call maybe considered forward-looking statements. As such, they should be taken in the context of the risks and uncertainties discussed in the Safe Harbor disclosures contained in our Securities and Exchange Commission filings. Also please note that today's call will include a discussion of our results excluding certain items that effect our results that we feel are not representative of the company's ongoing business operations. These special items and their financial impacts are described in our earnings release dated February 29, 2008. The earnings release can be found at www.pepcoholdings.com/investors.

Dennis?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

Thanks Donna. Good morning ladies and gentlemen. Thank you for joining us today. Before we discuss our results, I want to extend the invitation to the analysts on the call to join us on April 3rd and 4th here in Washington DC for our Annual Analyst Conference. If you have not received an invitation, please contact our Investor Relations staff. At the conference, the executive team will our strategic plans and provide a detailed review of our businesses. I hope you will be able to join us.

2007 was a year of significant progress. This progress is continuing into 2008. We received approval to move forward with $1 billion transmission project, successfully completed four distribution base rate cases, including the recent outcome of the District of Columbia case. Implemented a revenue decoupling mechanism in Maryland, made progress in moving our blueprint for the future programs forward in all our jurisdiction, and made commitments to construct 645 megawatts of new generation in Eastern PJM.

From an earnings perspective, the power delivery business benefited from higher delivery rates, lower depreciation and higher weather related sales, but was negatively impact by increased operating and maintenance expenses. The competitive energy businesses performed very well, and we are pleased with their results. Earnings for the year were $1.72 compared to $1.30 per share in 2006. Excluding special items, earnings would have been $1.53 per share compared to $1.33 per share in 2006. The action taken by the Board earlier this year to raise the common stock dividend by a 4% reflects the significant progress we have made in executing our business strategy, as well as the continued confidence that we have in our long-term outlook.

Paul will discuss the financial results of our operating segment business in more detail. First, I'd like to address some highlights starting with our activities on the regulatory front. We continue to make significant progress in executing our regulatory strategy. We completed the Delmarva Power gas distribution case in Delaware and the Pepco and Delmarva Power electric distribution base rate cases in Maryland. In total, these cases resulted in rate increases of $34.5 million and a reduction in annual depreciation expense of $33.7 million.

On January 30th, 2008, the District of Columbia Public Service Commission issued an order in the Pepco Electric distribution base rate case. Commission authorized a $28.3 million increase in annual electric distribution rate based on a 10% return on equity and 46.55% common equity ratio. The Commission found the bill stabilization adjustment mechanism proposed by Pepco, which decouples revenues from kilowatt hour sales to be an appropriate rate making concept with sited potential statutory problems and the Commission's ability to implement such a mechanism. The Commission indicated that it will issue an order to establish a separate proceeding to consider the implementation issues.

As I mentioned, we did implement revenue decoupling mechanism in our Maryland jurisdiction as approved by the Maryland distribution base rate case orders. The bill stabilization adjustment mechanism is the key tool for prospering energy conservation and is a critical component of our blueprint for the future initiative. This mechanism insulates our delivery revenue from the impact of changes and customer usage patterns including the impact of weather. The implementation of this mechanism also removes a significant disincentive under which utility shareholders are penalized for encouraging customers to conserve energy.

As a result of the implementation in Maryland, approximately 40% of PHI's total distribution revenue is decoupled from consumption. Instead, revenue growth in Maryland is tied to customer growth, which we estimate to be about 1% annual. Revenue decoupling mechanisms are also under consideration in Delaware for both electric and gas business as well as New Jersey.

Our blueprint filings continue to move forward in Delaware, Maryland and the District of Columbia. On November 19th, Atlantic City Electric filed its blueprint application in New Jersey and a proceeding was open to consider the case. We remain committed to aggressively pursuing energy efficiency and demand side management program, along with the implementation of advanced technologies and infrastructure investments.

These programs and investments enable us do our part to address the environmental consequences of electricity production and allow our customers to better manage our energy usage in an effort to reduce the energy portion of their bill. We believe that we've already seen some efforts by our customers to conserve in light of rising energy prices.

In 2007, customer growth was up almost 1% while weather adjusted sales were flat compared to 2006. Early in 2008, we announced that over the next fiver years, we plan to invest $5 billion in our utility infrastructure. These investments are aimed at improving reliability, meeting low growth and enhancing customer service. About $2 billion of this investment will be in transmission including our Mid-Atlantic Power Pathway Project that was approved by the PJM Board of Managers in October.

An extensive permitting and environmental review process for this project is now underway. The line is expected to be completed in phases over a six-year period, the completion in 2013 at an estimated project cost of approximately 1 billion. The project will enhance electric reliability and improve transmission capacity to one of the most heavily congested region of the country. Our transmission assets are subject to jurisdiction and the transmission rates are set under a formula rate process. Under the formula rate settlement approved by FERC in April 2006, our utilities were authorized to earn a 10.8% return on equity on assets placed in service prior to January 1, 2006, and 11.3% return on equity for facilities placed in service after January 1, 2006.

On November 16th, 2007, FERC issued an order authorizing a 50 basis point incentive return on equity adder for Pepco, Delmarva Power and Atlantic City Electric in recognition of their membership in a Regional Transmission Organization. This incentive rate applies to pre-2006 assets, making the return on equity for all transmission assets 11.3%. The rate base associated with pre-2006 assets is approximately $590 billion. The incentive rate is affected December 1, 2007, and will be retroactively implemented June 1, 2008.

On January 2nd, 2008, Delmarva Power completed the sale of its Virginia distribution assets and substantially all of its Virginia transmission assets for an aggregate sales price of approximately $50.6 million, after closing adjustments. The buyer of the distribution assets is A&N Electric Cooperative and the buyer of the transmission assets is Old Dominion Electric Cooperative. These sales are expected to result in an immaterial gain to Delmarva Power that will be recorded in the first quarter of 2008. These sales also eliminated Delmarva's obligation to provide default service in Virginia.

Now, I'll turn it to our competitive businesses, which I am pleased to say continue to provide earnings diversification and incremental growth opportunity to compliment our power delivering business. Conectiv Energy had a very good year in 2007, earning a total gross margin of $319 million, which is above the mid point of its forecasted range and up 25% over last year. We continue to believe that Conectiv Energy has a sustainable competitive advantage in PJM due to its asset mix and the location of those assets as well as its knowledge of the PJM marketplace.

On February 1st of this year, PJM announced the results of the reliability pricing models to our RPM; auction for the pricing of capacity for the 2010, 2011 planning year, which runs through June 1, 2010 to May 31, 2011. Prices in Eastern MAC came in lower in this latest auction, but continue to be strong, which reflects the fact that supply and demand are projected to be roughly in balance in the region. We view the auction result as a positive for Conectiv Energy over the longer-term as its capacity hedges roll off overtime.

Going into the auction as of December 31, 2007, Conectiv Energy's hedge position for capacity was 53% for the calendar year 2010, and 2% for the year 2011. The RPM auction process also played a significant role in Conectiv Energy's decisions to begin construction of the Delta project, a 545 megawatt dual power megawatt combined cycle plant to be located in Peach Bottom Township, Pennsylvania. As announced in December, the construction cost is estimated to be $470 million and the plant is expected to be placed in commercial operation by June 2011. All preconstruction permits have been secured and construction will begin this year. The Delta project will be located in the East MAC area for purposes of capacity pricing under RPM.

Conectiv Energy has entered into a six-year tolling agreement with the third party with the capacity and energy from the plant. This agreement lowers Conectiv Energy's market risks during the early years of operation. The project will be financed utilizing internally generated cash, corporate borrowings or project financing. Pepco Energy Services also had a very good year 2007.

Net income from ongoing operations was up 12%. Retail electric load served at the end of the year was about 4,300 megawatt, a record high for PES and an increase of 21% over 2006. Retail electric sales were about 19,000 gigawatt hours, a 48% increase over 2006. The increase of load served in the retail electric sales reflects continued favorable electric retail commodity markets as well as Pepco Energy Services success and measured expansion in the new market such as New York, Massachusetts, and Illinois.

At this point, let me turn it over to Paul Barry. Paul?

Paul Barry - Senior Vice President and Chief Financial Officer

Good morning and thank you for joining us today. I hope you had a chance to review our earnings release. I will go through some of the highlights and provide some additional detail. We will then open the call to your questions. First, I will recap our consolidated earnings, and then I will address our performance by operating segments.

Consolidated earnings in 2007 were $334 million or $1.72 per share compared to $248 million or $1.30 per share in 2006. There are two special items in the 2007 results. As a result of the resolution of the Mirant bankruptcy matter, $33.4 million was recorded in the third quarter as a reduction of operating expenses due to the settlement of damage claims, which increased earnings by $20 million or $0.10 per share. Also occurring in the third quarter was $17.7 million gain or $0.09 per share due to the Maryland income tax settlement related to a refund claim associated with the divestiture of Pepco's generation assets in 2000.

In the 2006 results, there were also two special items. The first is a $13.7 million in charges or $0.07 per share associated with an impairment loss on certain energy services, business assets of Pepco Energy Services. The second was a $7.9 million gain or $0.04 per share on Conectiv Energy's disposition of its interest in a cogeneration facility.

Excluding the special items, earnings would have been $297 million or $1.53 per share in 2007 compared to $254 million or $1.33 per share in 2006. Consolidated earnings for the fourth quarter were $58 million or $0.29 per share compared to $36 million or $0.19 per share for the fourth quarter of last year. Excluding special items in the 2006 period, earnings would have been $38 million or $0.20 per share. There were no special items for the fourth quarter of 2007.

For the Power Delivery operating segment, earnings in 2007 were $1.20 per share compared to $1 per share in 2006. Excluding special items in 2007, earnings would have been $1.01 per share. In 2007, we experienced high weather related sales, which resulted in an earnings increase of $0.14 per share.

Cooling degree days were up 17% and heating degree days were up 12%. The impact of the weather for the year versus normal weather is an earnings increase of $0.09 per share. Another factor that possibly impacted earnings in 2007 was the Maryland distribution base rate orders for Pepco and the Delmarva Power. The orders resulted in higher revenue of $0.06 per share and lower depreciation of $0.06 per share as compared to the prior year. Also keep in mind, as Dennis mentioned, Maryland orders authorized a bill stabilization adjustment mechanism that decouples approximately 40% of PHI's total distribution from consumption, which will make weather variation from year-to-year less of a factor in the future.

Higher operation and maintenance expenses in the 2007 period partially offset these increases and lowered earnings by $0.15 per share. We incurred this higher cost in part due to increased employee related costs, tree trimming expenses and call center expenses, and to meet our regulatory performance standards related to overall system reliability. We also incurred costs related to our rate cases, external consulting and certain write-offs related to prior year construction projects. We will provide a projection of 2008 utility operating expenses at our upcoming analyst conference.

For the fourth quarter, earnings were $0.15 per share compared to $0.12 per share for 2006 period. The impact of prior operation and maintenance expenses in the 2007 quarter was more than offset by the impact of higher weather related sales, the impact of the Maryland distribution base rate orders for Pepco and Delmarva Power and higher transmission revenue.

Conectiv energy's 2007 earnings were $0.38 per share compared to $0.25 per share in 2006. Excluding the gain on the disposition of interest and a co-generation facility in the 2006 period, earnings would have been $0.21 per share. Conectiv energy's generation output was up 43% year-over-year due to more favorable weather, improved availability at the Hay Road and Deepwater generating plants and improved energy spark spreads.

Higher capacity prices also favorably impact gross margin in 2007. As Dennis mentioned, Conectiv energy's gross margin was in the upper half of its forecast range for 2007. We intend to provide the forecasted ranges for 2008 and 2009 at our upcoming analyst conference.

For the fourth quarter, Conectiv energy's earnings were $0.08 per share compared to $0.03 per share the same period last year. The earnings increase quarter-over-quarter was due to higher merchant generation and low service gross margins driven by a 95% increase in generation output, higher energy's spark spreads and higher capacity prices.

Pepco Energy Services 2007 earnings were $0.20 per share compared to $0.11 per share in 2006, excluding the impairment loss and certain energy services assets, earnings would have been $0.18 per share in 2006. Earnings from the retail energy supply business were up year-over-year. Retail electric sales were a record high and Pepco Energy Services benefit from higher capacity prices more favorable, congestion costs, and higher margins on construction projects.

For the fourth quarter, Pepco Energy Services earnings were $0.08 per share compared to $0.04 per share in 2006. Excluding the impairment loss in the fourth quarter of 2006, earnings would have been $0.05 per share. The earnings improvement was driven by the retail energy supply business. Retail electric sales were up 30% quarter-over-quarter.

In closing, our progress in 2007 along with our strong fundamentals, make PHI an attractive investment. Our core transmission and distribution business provides stable and growing earnings base. Our competitive energy businesses provide earnings diversification and incremental growth opportunities, and we offer a secure and growing dividend.

With that, I'd like to open the call to your questions.

Question And Answer

Operator

Thank you. [Operator Instructions]. Your first question is coming from Dan Eggers, representing Credit Suisse. Please proceed.

Daniel Eggers - Credit Suisse

Hi, good morning.

Unidentified Company Representative

Good morning, Dan.

Daniel Eggers - Credit Suisse

Hey, Dennis. I was wondering if you could just share some of your thoughts around all the activity going on out of the commission legislature in Maryland, and what implications you guys see that having on your utility operations there.

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

I guess in summary, we don't see it having much impact on us. It seemed to be primarily focused on activities over the last couple of years related to constellation as you well know. And so, at the moment we don't see anything that would adversely affect us as a result of that.

Daniel Eggers - Credit Suisse

Do you... what is your thought process on getting into the business of owning generation at the utilities again if that's throughout the statement as it's for sure? [ph]

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

We will pursue it.

Daniel Eggers - Credit Suisse

Are you going to be able to use the skill set of Conectiv to help with that or is that going to have to be skills are going to have to be developed in the utility again?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

That would depend on what the... what form that would take if it's a competitive bid kind of transaction and we just have to follow the affiliate rules, but certainly having that skill set within the PHI umbrella is worthwhile.

Daniel Eggers - Credit Suisse

Okay. And then I guess kind of in the resource planning end of the world, any updates on what is going on in Delaware as far as getting visibility that suites a new capacity edition there?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

Well, it's... the latest is that we are out for an FRP associated with onshore wind, and I am not sure the exact schedule on that. But if we expect receipt of those bids sometimes, in next week, we are also filing an update to the IRP that was done in 2006, which again indicates that at least from our perspective that Delaware is in pretty good shape particularly when you consider the MAC project underway. And so at the moment, it's focused on the acquisition of renewals.

Daniel Eggers - Credit Suisse

Okay. On MAC, can you just give us a run down on where we are from the permitting process perspective and when dollars could actually start getting expense in substantial form?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

As you know, Maryland is the one stop shopping of the Public Service Commission, but the first requirement before we can trial for any permit will be the environmental study, which we would anticipate probably takes nine months to a year to complete. So, I wouldn't expect to see any filings or permit applications in Maryland until sometime in late 2008 or early 2009. But in the meantime, we have been doing it a lot of grassroots meetings with local communities and local government, where the line would go through as well as establishing a website for people to get on and access the information about the lines. So we have begun work in the communities, but you won't see anything formal filed with the Commission in the near term.

Daniel Eggers - Credit Suisse

Okay. And Paul, just one clarification question on the retroactive third quarter; does that mean that we will have first and second quarter mark up will all show up in the second quarter or will you guys book in the first quarter, the FERC revenues ahead of actually receiving them because of the retroactive order design?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

Well, I can answer that. We won't... the way that FERC formula rates works, it goes into effect every June 1st, and whatever changes occur during the periods will be dealt within the subsequent period. So, the rates are the rates and they will stay the same through June, so we won't record it in that period, that's the way it worked the last time as well.

Daniel Eggers - Credit Suisse

You are going to mark up for the proceeding five full months of the 50 basis points?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

Right.

Daniel Eggers - Credit Suisse

Deficitthat also up in the second quarter?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

Started June 1st.

Daniel Eggers - Credit Suisse

Okay, all right, got it. Thank you.

Operator

Your next question comes from the line of Paul Ridzon representing KeyBanc. Please proceed.

Paul Ridzon - KeyBanc

Can you reveal who the current party as to off take at Delta, the tolling partner?

Paul Barry - Senior Vice President and Chief Financial Officer

Yes, it's Constellation Energy Commodities Group.

Paul Ridzon - KeyBanc

And I know you've got an analyst meeting coming up, but could you talk about 10,000 foot view of kind of drivers 08 versus 07?

Paul Barry - Senior Vice President and Chief Financial Officer

I think it would probably better to wait until we hit the analyst meeting and be able to give you the full color around... all that's going on around in 08 versus 07.

Paul Ridzon - KeyBanc

Okay, fair enough. Thank you.

Operator

Your next question comes from the line of Ashar Khan [ph] representing SAC Capitals. Please proceed.

Unidentified Analyst

Good morning. I was wondering if you had a break up, which you provided at the end of the third quarter in terms of the gross margin at the competitive business, how much was it energy, how much was it capacity as a percentage for the year 2007?

Paul Barry - Senior Vice President and Chief Financial Officer

Yes, we... I don't remember exactly what we provided for as far as the breakout between those. Certainly it's something as we are preparing for the Analyst Day, we are looking at... kind a gross margin forecast that we provided, and looking at ways maybe we can enhance that to provide you an even more detail.

Unidentified Analyst

Okay, because of it was like 58% energy 18% capacity for the nine months in your slides, so there is no... you don't have updated numbers for the full year?

Paul Barry - Senior Vice President and Chief Financial Officer

No, I did not.

Unidentified Analyst

And then if I can ask, what's the Delta project... which auction year was it? Did you... I am trying to understand, did you put it in the RPM auction, the Delta capacity or no?

Paul Barry - Senior Vice President and Chief Financial Officer

The Delta project is projected to come online prior to June 2011, so we did not bid it in the auction that just went off, which is for a planning year 10/11. So our expectation is that it would be ready to be bid into the 11/12 auction.

Unidentified Analyst

11/12 auction, okay. And then if I can just end up among your capacity, which you have about 4,182, you... a portion of it is under contract at 12% if I am right. When do those contracts roll off? Is there a timeframe for that?

Paul Barry - Senior Vice President and Chief Financial Officer

I don't remember the exact years... most of those tolling agreements when they were signed, the generation we have under contract were first typically like six year or seven year time. So, I think most of them still have a couple of years or a few years left on.

Unidentified Analyst

So, by the end of this decade all of that capacity would have gone over... off contract. Is that a fair point?

Paul Barry - Senior Vice President and Chief Financial Officer

Yes, it would have. Our hope would be that some of it we can renew and then we would also find additional plans that you know, are appropriate that we can enter into tolling agreements with...

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

I think in my earlier comments, this is Dennis, we said that his hedge position for capacity in 2011 is 2%.

Unidentified Analyst

Okay, and that is on a base of 4182, is that correct?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

Yes, it would be, yes.

Unidentified Analyst

Okay, thank you sir.

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

Go ahead.

Operator

[Operator Instructions]. Your next question will come from the line of Andrew Levi representing Brencourt. Please proceed.

Andrew Levy - Brencourt

Hi, Good morning.

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

Good morning.

Andrew Levy - Brencourt

Could you talk to... thoughts on your generation business and the possibility of some type of joint venture spin-off or sale of that business?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

Well,I don't have any comment about specific transaction, but it's part of our ongoing business operation. We always look to alternatives to maximize shareholder value, but there is nothing specific.

Andrew Levy - Brencourt

All right. And you haven't hired a banker to look at that business.

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

We don't make any comment.

Andrew Levy - Brencourt

Thank you.

Operator

Your next question will come as a follow-up from the line of Paul Ridzon representing KeyBanc. Please proceed.

Paul Ridzon - KeyBanc

Just a clarification on the 4,182 megawatt to Ashar's question, does that include Delta?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

No, it does not. That is the current generation. I think that was as of the day we did the analyst presentation, I think we... last year when we put that number out. So that doesn't include like for instance Cumberland either, which is a future project as well.

Paul Ridzon - KeyBanc

Thank you

Operator

Your final question will come from the line of Maurice May representing Power Insights. Please proceed. Mr. May, you may want to check your mute future. The next question will come from the line of Jim Cole representing Lombard Security. Please proceed.

Unidentified Analyst

Yes, congratulations on the quarter and the year. Dennis, could you comment if a natural... if a national grid is ever possible, where do we stand in potential participation?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

I am not sure I understand the context of your question. You mean someone forming a national grid or are you talking about National Grid, the company.

Unidentified Analyst

No, someone forming a national grid. There has been talk over the years is probably in all questions, but a national power grid?

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

Well, I think we... by our participation in the PJM, that's effectively as closes as you get the something that I would call a national power grid. We always look for way to enhance transmission capability of the company within the region. So I am not aware on anybody that's proposing anything that would be different. The closest I heard is some proposals to do something associated with bringing renewables in. And if that presents a transmission opportunity for us, we'd certainly be encouraged to participate.

Unidentified Analyst

No, there was discussion years ago about a national grid.

Dennis R. Wraase - Chairman of the Board, President and Chief Executive Officer

I have not heard of any renewed discussions on that.

Unidentified Analyst

Okay, okay. Thanks again.

Operator

There are no further questions at this time. I would now like to turn the call back to Mr. Paul Barry for any closing remarks.

Paul Barry - Senior Vice President and Chief Financial Officer

Again, thank you all for joining us. We look forward to see many of you in Washington in early April at our analyst conference. Have a good day.

Operator

Ladies and gentlemen, thank you for your participation in today's conference. This concludes your presentation. You may now disconnect. Good day.

Copyright policy: All transcripts on this site are the copyright of Seeking Alpha. However, we view them as an important resource for bloggers and journalists, and are excited to contribute to the democratization of financial information on the Internet. (Until now investors have had to pay thousands of dollars in subscription fees for transcripts.) So our reproduction policy is as follows: You may quote up to 400 words of any transcript on the condition that you attribute the transcript to Seeking Alpha and either link to the original transcript or to www.SeekingAlpha.com. All other use is prohibited.

THE INFORMATION CONTAINED HERE IS A TEXTUAL REPRESENTATION OF THE APPLICABLE COMPANY'S CONFERENCE CALL, CONFERENCE PRESENTATION OR OTHER AUDIO PRESENTATION, AND WHILE EFFORTS ARE MADE TO PROVIDE AN ACCURATE TRANSCRIPTION, THERE MAY BE MATERIAL ERRORS, OMISSIONS, OR INACCURACIES IN THE REPORTING OF THE SUBSTANCE OF THE AUDIO PRESENTATIONS. IN NO WAY DOES SEEKING ALPHA ASSUME ANY RESPONSIBILITY FOR ANY INVESTMENT OR OTHER DECISIONS MADE BASED UPON THE INFORMATION PROVIDED ON THIS WEB SITE OR IN ANY TRANSCRIPT. USERS ARE ADVISED TO REVIEW THE APPLICABLE COMPANY'S AUDIO PRESENTATION ITSELF AND THE APPLICABLE COMPANY'S SEC FILINGS BEFORE MAKING ANY INVESTMENT OR OTHER DECISIONS.

If you have any additional questions about our online transcripts, please contact us at: transcripts@seekingalpha.com. Thank you!

Source: Pepco Holdings, Inc. Q4 2007 Earnings Call Transcript
This Transcript
All Transcripts