Pepco Holdings GAAP net income for each of the three month periods ended June 30, 2015 and 2014, was $53 million, or 21 cents per share.
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Excluding items that the company believes are not representative of ongoing business operations, adjusted earnings for the second quarter of 2015 would have been $57 million, or 23 cents per share as compared to $71 million, or 28 cents per share for the same period in 2014.
The primary drivers of the decrease in adjusted net income (Non-GAAP) in the second quarter of 2015, as compared to the same quarter in 2014, were higher operation and maintenance expense (primarily due to the implementation of a new customer information system and increased distribution system maintenance) and higher depreciation expense from increased plant investment.
Higher electric distribution revenue and default supply margins partially offset the decrease for the second quarter.
For the six months ended June 30, 2015, Pepco Holdings' GAAP earnings were $106 million, or 42 cents per share, as compared to net income of $128 million, or 51 cents per share for the six months ended June 30, 2014.
Excluding items that the company believes are not representative of ongoing business operations, adjusted earnings for the six months ended June 30, 2015 would have been $118 million, or 47 cents per share as compared to $146 million, or 58 cents per share for the same period in the prior year.
The decrease in adjusted net income (Non-GAAP) for the six months ended June 30, 2015, as compared to the 2014 period, was driven by higher operation and maintenance expense (primarily related to the implementation of a new customer information system and increased distribution system maintenance), higher depreciation expense from increased plant investment and higher interest expense.
Higher electric distribution and network transmission revenue (primarily due to higher rates from increased infrastructure investment, as well as higher usage and favorable weather) partially offset the decrease for the period. ■
Meteorological winter is off to a fast start across much of the Northwest, Great Basin, and Rockies as plentiful moisture streams inland from the Pacific Ocean over at least the next few days.