2020 RESPONSIBILITY and IMPACT REPORT Letter from the CEO What Drives Us…Making Progress for Our Employees, Customers, Communities and Environment
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A partner for progress across the Mid-Atlantic 2020 RESPONSIBILITY AND IMPACT REPORT Letter from the CEO What Drives Us…Making Progress for Our Employees, Customers, Communities and Environment “Utilities were built to do big things.” The first time I heard that quote, it resonated with me. the CEO of a critical energy infrastructure Build a clean, sustainable and resilient company that spans Delaware, the District energy future of Columbia, Maryland and New Jersey, employs more than 4,100 individuals and Enable thriving communities, deliver touches millions of people every day, I recog- a world-class customer experience and nize the responsibility we have to tackle big provide affordable energy solutions to all our things and help make progress on these and customers and communities; and so many other challenges. Drive economic opportunity, equity and The impact of Pepco Holdings and our continued growth utilities—Atlantic City Electric, Delmarva Power and Pepco—does not start and stop Our vision is clear. And, so is how we will at the meter to a home or business. How achieve it. We commit to running our the electricity and natural gas we deliver is business with a focus on: produced, the way in which it’s transmitted and how it’s ultimately consumed has an Safety and Security impact. It impacts our environment, our employees, our customers, our communities Reliable and Excellent Service It put into perspective our mission, which is and the planet. to provide safe, affordable, reliable and sus- Strong Partnerships and Connecting tainable energy to millions of people across That is why we not only think about what Customers and Communities the communities we’re privileged to serve. we do, but how we do it. That is our respon- It also aligned with our purpose, which is to sibility. That is our opportunity. A Diverse, Equitable, Inclusive and power a cleaner and brighter future for our Innovative Culture; and customers and communities. Those are big We are foundational in our communities, things—big challenges and big opportuni- from who we work with to help make our Policy, Regulatory and Financial Progress ties. That drives me every day. system smarter, stronger and cleaner, to the opportunities we provide to our employees The team at Pepco Holdings comes to work There are a lot of big challenges to tackle. to grow their careers, to the support we each day with this focus and our vision for Climate change. Social equity and systemic give to our community partners to advance the future squarely in our sights. racism. Economic recovery, opportunity and economic growth, equity, inclusion and sustainability. Education. Public health. As innovation. We have a vision to: 2 We know that 2020 was an unprece- recommendations for what more we can This report is our first major attempt to dented year and that our customers, our do as a company to make changes—both consolidate information on the impact we community partners and many of our internally and externally. We reinforced have and progress we made across these other stakeholders are grappling with the the importance of our democratic process areas, publicly commit to our responsibility pressures and impacts from COVID-19. by helping our team members understand as a business and share our vision for the More than ever, they are counting on us their rights as voters and opportunities to future. I invite you to flip through the pages not only to deliver on essential services, make their voices heard. And, at Pepco to see what drives us and how we actively but also to be a steady source of support Holdings, we launched our African Ameri- partner to make progress on the big issues and a provider of opportunity, a true part- can Leadership Council to further advance facing us all. ner for progress. We know that, and it’s opportunities for African American leaders why we stepped up to make sure all our within our company. I hope you can see our passion come to customers stayed connected, increasing life—and I hope you’ll be inspired. our community giving and support by $1 Through it all, our teams maintained their million, and taking significant efforts to focus, kept working and made progress. keep our employees and customers safe We ended 2020 breaking several records, by having as many of our team members including for system reliability perfor- as possible work from home and providing mance, customer satisfaction, safety those that have to report to a job site with performance and spend with diverse -Dave Velazquez the necessary protective equipment and suppliers. other resources. As we look to the future, we’re going to And, as we all wrestled with the realities keep pushing to do big things. Fight climate of a global pandemic, we were faced with change. Reduce local air pollution. Preserve the realities of systemic racism and an and restore our waterways and habitats. opportunity to stand up for racial justice. Modernize our grid to make it smarter, I’m proud to say that Atlantic City Electric, stronger and cleaner and be the platform for Delmarva Power and Pepco rose to the the future. Find new and better ways to serve challenge. Together, we said Black Lives our customers. Make our communities more Matter. We engaged actively with our equitable and local economies stronger. And, colleagues at the other Exelon compa- provide our employees with an inclusive work nies as part of a newly instituted Racial environment where they can grow as individu- Equity Task Force that developed a set of als and grow together, as one. WHAT DRIVES US | 2020 Responsibility and Impact Report 3 About This Report This report highlights key company initiatives across all of our businesses to power a cleaner and brighter future for our customers and communities and shares our vision for the future. Unless otherwise indicated, included information is from the 2020 calendar year. 4 TABLE OF CONTENTS Our Journey and Commitment ........................................... 6 Our Vision and Focus ..................................................... 8 Our Business .............................................................. 10 About Atlantic City Electric ........................................... 10 About Delmarva Power .............................................. 11 About Pepco ......................................................... 11 Our Performance.......................................................... 12 COVID-19 Relief ........................................................... 14 Our Communities and Customers Drive Us .............................. 18 Partnering with Our Communities .................................... 20 Meeting Customer Needs and Expectations .......................... 24 Providing Affordable, Clean Energy for All ............................ 26 Our Environment Drives Us ............................................... 28 Climate and Clean Energy ............................................ 30 Protecting Our Natural Environment .................................. 34 Building a Smarter, Stronger, Cleaner Grid and Energy System ......... 36 People and Progress Drive Us ............................................ 38 Enhancing the Culture of DEI and Innovation ......................... 40 Developing Employees and Our Future Workforce .................... 44 Growing the Local Supply Chain ...................................... 48 Partnerships to Drive Economic Opportunity, Equity and Growth ...... 50 Looking Ahead ............................................................ 52 WHAT DRIVES US | 2020 Responsibility and Impact Report 5 OUR JOURNEY AND COMMITMENT Five years as part of the Exelon family, making progress for our employees, customers, communities and environment In 2016, Exelon Corporation and Pepco Holdings completed a merger, bringing the company into the Exelon family to create the leading Mid-Atlantic electric and gas utility companies. This merger brought meaningful economic and service benefits to Atlantic City Electric, Delmarva Power and Pepco customers and communities, including commitments in four key areas. Five years in, these initiatives have impacted millions of individuals across our service areas, providing customers with tens-of-millions of IMPROVING RELIABILITY – We committed to fewer dollars in rate credits and arrearage forgiveness, creating opportu- and shorter power outages, and we have achieved nities for local contractors and workers, and driving investments in record-breaking performance across all three reliability, energy efficiency, renewable technology, STEM educa- utilities, placing our companies in the top quartile as tion, workforce development and training, public green spaces and compared to our peers. expanded access to affordable energy. PROVIDING DIRECT CUSTOMER BENEFITS – We provided benefits like bill credits, low-income We made a series of 729 commitments, completing 89% of these assistance programs and energy efficiency measures commitments as of the first quarter of 2021, and meeting or exceed- for customers. ing almost all commitment targets to date. Examples of the programs and benefits made possible by the merger funds include: ADVANCING CLEAN ENERGY – We have continued to advance clean energy opportunities like solar, energy In Delaware, we supported the advancement of energy efficiency storage and other distributed energy resources to by funding programs that help low-income residential customers drive innovation and help combat climate change. become more energy efficient and reduce their overall energy