The parent company of Atlantic City Electric reported a $53 million loss ($32 million after taxes) from an Atlantic City energy plant it runs partially because one of its main customers— Trump Plaza —closed, the company reported in 3rd quarter regulatory filings Friday.
Pepco Energy Services, a subsidiary of Pepco Holdings Inc., runs the Midtown Thermal Control Center, which delivers heat and chilled water to several casinos and major Atlantic City properties.
The company gets its income from long-term contracts with those few customers, and losing them means big revenues hits. The plant also powers Trump Taj Mahal, which said recently it could close in December.
Pepco Holdings cited “significant adverse changes in the financial condition of its customers and the business climate” in Atlantic City.
Pepco Holdings warned investors in a quarterly report that more casino closings could hurt its future earnings.
Brian Ianieri and Braden Campbell