Diversified energy company Pepco Holdings Inc. (POM) announced that its subsidiary, Pepco Energy Services, signed a $3.9 million worth comprehensive energy savings performance contract with Franklin County Housing Authority.
As per the contract, Pepco will implement new water and energy saving measures considering the existing housing units of the Housing Authority are aging and upgrades are essential to improve the heating and cooling of each unit. These measures will save the Housing Authority around $5.4 million over the 15-year contract term and also improve the living conditions in over 300,000 sq. ft. of living space.
The construction for the Franklin County project is presently in progress and is expected to be completed in April 2011. This project will not only ensure efficient utilization of energy but also reduce greenhouse gas emissions by 730 metric tons of carbon dioxide a year.
Pepco has been entering into efficient energy savings contracts since 1995 and has provided services to more than 300 consumers. The most recent one being in August, 2010, when the company entered into a $35 million worth comprehensive energy savings performance contract with Prince George’s County Maryland Public Schools.
The adjusted earnings of Pepco at the end of third-quarter 2010 were 52 cents a share compared with 35 cents per share at the end of third-quarter 2009. The Zacks Consensus Estimates for fourth-quarter 2010, fiscal year 2010 and fiscal year 2011 are, respectively, 11 cents per share, $1.06 per share and $1.22 per share.
Pepco Holdings Inc. currently retains a Zacks #2 Rank (short-term Buy rating). We maintain a Neutral rating on the stock. The major peers of the company are Allegheny Energy Inc. (AYE) and Constellation Energy Group Inc. (CEG).
Pepco Energy Services is a subsidiary of Pepco Holdings and provides its customers with energy efficiency services, including renewable energy and combined heat and power.
Based in Washington, District of Columbia, Pepco Holdings, through its two operating divisions, Power Deliver and Competitive Energy, involves in transmission and distribution of electricity, as well as delivery and supply of natural gas.
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