Decisions by legislators and other government officials can significantly affect the business environment in which Pepco Holdings, Inc. and its affiliates (collectively, "PHI" or the "Company") operate. Therefore, PHI engages government officials at the federal, state and local levels of government to ensure the concerns of customers, stockholders and employees are adequately represented. PHI believes it is important to participate in the political process, including substantive discussions with officials whose decisions impact our business and making contributions to candidate campaigns and political committees to support the candidacy of individuals who understand our industry and its issues. Political engagement activities can shape the execution of PHI's core mission of providing safe, reliable and affordable electric and gas service to the communities within our service territories.
PHI is committed to full compliance with both the letter and the spirit of all laws and seeks to maintain the highest ethical standards in the way we conduct our operations. Federal, state and District of Columbia laws govern the circumstances under which PHI can make corporate campaign contributions to federal, state and local political campaigns.
PHI is committed to the representative form of government. As part of this commitment, the Company from time to time provides information and seeks to educate government officials, PHI employees, customers, and the general public on pending issues. The Company also respects personal involvement of employees on their own time in the political process.
Eligible employees may make voluntary contributions to the Company's political action committees: the PHI PAC, the Maryland Pepco PAC and the ACE PAC. The three PACs are non-partisan and run by employees to help ensure a Company voice in the political process. The PHI PAC contributes to Delaware, District of Columbia and Federal candidates. The Maryland Pepco PAC can contribute only to candidates in Maryland, and the ACE PAC was created by ACE to contribute solely to candidates in New Jersey.
Links to information detailing PHI and PAC contributions are provided below. It is PHI's policy that contributions are made to promote the interests of the Company and the communities it serves, and without regard for the individual political preferences of PHI officers and employees.
PHI uses corporate funds to make contributions to tax-exempt organizations and trade associations that engage in political activities. These organizations include the Edison Electric Institute, the American Bar Association, National Association of Manufacturers, Chambers of Commerce, Republican and Democratic Governors Associations and bar associations.
All reportable political contributions by PHI's PACs are publicly disclosed on the website of the Federal Election Commission (FEC) and the Maryland State Board of Elections. The annual reports of political contributions from the PHI PAC and the Maryland Pepco PAC to candidates and groups are available at:
The ACE PAC is not administered by PHI but by ACE employees.
PHI provides reports of its advocacy efforts to its Board of Directors. PHI employees who communicate with federal, state, or local officials on behalf of PHI for the purpose of influencing official action or who engage in lobbying activity coordinate with PHI external affairs to ensure compliance with federal, state, and local political laws.