By Ted Caddell

Pepco Holding Inc.’s quarterly earnings shot up to 23 cents a share on $58 million for the final quarter of 2013, compared to 15 cents a share on $34 million for the same quarter a year ago.

Year-end results were $1.14 per share on $280, compared to 98 cents a share on $225 million a year ago.

The company attributed the increase to higher electric distribution revenues — primarily from higher rates from infrastructure investments — and lower operating expenses.

“Over the past three years, decreases in the duration and number of power outages have been dramatic, reflecting the significant investments we have made in the electric system,” CEO Joseph Rigby said during a conference call Friday. “The increase in adjusted earnings in 2013 reflects the impact of these investments.”

As with many utilities announcing year-end financial results, Pepco’s regulated delivery service posted an annual increase in revenue (4 %) while its non-regulated business posted a decrease (3.4 %) for the year.

Rigby said that the company’s improvements in system reliability helped drive its improved results. Having announced his retirement in January, he’ll have little time to enjoy the upswing, however. (See Pepco CEO to Retire.)

FirstEnergy Posts Lower Q4, Year-End Results

FirstEnergy reported a decrease in both quarterly and year-end earnings for 2013, a tough announcement in a year that already saw the company cut its dividend.

The company reported fourth-quarter earnings of 75 cents per share, compared to 80 cents for the same quarter a year ago, and $3.04 for the year, compared to $3.34 the year before.

Its 2014 guidance numbers show that it’s not out of the woods, either, with first-quarter earnings estimates of 35 cents to 45 cents per share, and year-end earnings at $2.45 to $2.85 per share.

The company said increased regulated delivery revenue helped make up for lower power prices coming from its aging generation fleet.

In January, it announced it was reducing its quarterly dividend to 36 cents a share from 55 cents, the first dividend cut in the company’s 17-year history, and said it will concentrate on its regulated delivery businesses going forward. (See Reboot for FirstEnergy.)

FirstEnergy CEO Anthony J. Alexander said the company’s actions “were intended to strengthen our financial position and reposition the company to focus on more predictable and stable growth initiatives in our regulated businesses.”

The company plans to invest $4.2 billion on its transmission business over the next four years.