Delmarva Power Completes Sale of Virginia Operations
Wednesday, January 02, 2008
A&N Electric Cooperative & Old Dominion Electric Cooperative
to Serve Virginia’s Eastern Shore
EXMORE, Va. – Delmarva Power, a subsidiary of Pepco Holdings, Inc (NYSE: POM), transferred control of its Virginia operations to A&N Electric Cooperative and Old Dominion Electric Cooperative today (January 2, 2008), completing an approximately $44 million transaction that was approved by the Virginia State Corporation Commission and the Federal Energy Regulatory Commission.
Under terms of the sale, A&N Electric Cooperative will acquire all of Delmarva Power’s distribution assets as well as other related assets in Virginia. Delmarva Power will continue to own and operate the 138kV (kilovolt) and 69 kV transmission lines near the border of Maryland and Virginia. Old Dominion Electric Cooperative will own and operate the remainder of the Virginia transmission assets. Conectiv Energy will continue to own and operate the generation facilities located in Bayview and Tasley.
There were no layoffs of Delmarva Power’s Virginia employees as a result of these transactions. Delmarva Power offered positions at locations in Maryland and Delaware to its management and union employees who currently work in Virginia. Those employees who have chosen to stay with Delmarva Power will move to their new jobs this month. Some Delmarva Power employees opted to work for A&N Electric Cooperative.
“This transaction enables Delmarva Power to focus on Maryland and Delaware where the majority of our customers reside,” said Gary Stockbridge, Delmarva Power President. “During the transition process over the last few months, we worked with A&N Electric Cooperative and Old Dominion Electric Cooperative to ensure that Virginia customers continue to receive the safe and reliable electric service they have come to expect.”
“We’re excited about providing service to the Delmarva Power customers in Virginia,” said Vernon N. Brinkley, A&N Electric Cooperative President and CEO. “Our company’s goal is to carry on the tradition of outstanding customer service that was provided by Delmarva Power for many years now.”
The original electric service provider on Virginia’s Eastern Shore was Eastern Shore Public Service Company which was acquired by Delaware Power & Light in 1943. Delaware Power & Light changed its name to Delmarva Power & Light in 1966. The company shortened its corporate signature to Delmarva Power in 1972. Until today, Delmarva Power had served approximately 22,000 customers in Virginia.
A&N Electric Cooperative was incorporated in 1940 and is a not-for-profit, member-owned energy provider with headquarters in Tasley, Va. A&N Electric Cooperative will now serve approximately 33,000 customers in Accomack and Northampton counties in Virginia and Somerset County, Md.
Delmarva Power, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe and reliable energy to approximately 478,000 electric delivery customers in Delaware and Maryland and over 118,000 natural gas delivery customers in northern Delaware .