Potomac Electric Power Co. yesterday reported its net income rose 8.3 percent in the third quarter to $145.9 million, on the strength of the past summer's hot weather and a rate increase in the District of Columbia.
The Washington-based utility's $1.23-per-share earnings for the period that ended Sept. 30 came on revenues of $663.5 million. The revenue figure was up 9.2 percent from the same period a year ago.
Earnings from utility operations increased 15 percent primarily because of the record heat within Pepco's 640-square-mile service territory, which includes Washington and its suburbs. The summer was 24 percent hotter than in 1994, the company noted.
In the first three quarters of this year, Pepco generated net income of $85.1 million, $1.66 per share, a decline of 60 percent vs. 1994's first nine months. The significant drop resulted from a $124 million charge the company took this year to divest itself of an unprofitable airline leasing subsidiary. Revenues were flat, at $1.47 billion.
Pepco, which last month announced plans to merge with Baltimore Gas and Electric Co. to form the nation's ninth-largest utility with $4.8 billion in annual sales, yesterday approved a 41.5 cent-per-share cash dividend. The $49.2 million payout will be made Dec. 29.