...Exelon Merger: The recently closed acquisition of Delmarva Power & Light Co. (DPL) and its affiliates by Exelon Corp. (EXC) has no direct impact on DPL's credit metrics, but does provide a stronger, better-capitalized parent company with far greater financial flexibility that supports current ratings. Fitch Ratings expects DPL to benefit from improved operating efficiency and lower costs as a result of the merger. The ratings assume EXC will provide equity to support capex and maintain the authorized capital structure. Low-Risk Operations: DPL owns and operates regulated electricity and natural gas distribution and transmission networks that operate under cost of service-based regulation in Delaware and Maryland with limited commodity price risk and the associated cash flow volatility. Although DPL retains the provider of last resort obligation for electric and gas customers that do not choose an alternative energy provider, its electric supply costs are recovered from customers through...
