Pepco Holdings: Pepco Rate Case Filing in MD

Daniel Ford of Barclays Capital maintains his “2-Equal Weight” rating on Pepco Holdings, Inc. (NYSE: POM), while lowering FY10 EPS to $1.21 from $1.31.

Yesterday, POM’s Pepco subsidiary filed a rate case in MD. The proposed $40 million rate increase would enable Pepco to recover construction and operating expenses needed to maintain and enhance the reliability of its electric distribution system in Maryland.

Daniel anticipates Pepco-DC's rate case to conclude in late Q1'10, with final orders expected for DPL-DE and Pepco-MD in mid Q2'10. The ACE case wraps up formal proceedings in late July, although historical precedent leaves us somewhat skeptical of a timely resolution.

Today, POM is up 0.20% to $17.35.