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Pepco Issues RFP for Wholesale Electric Power for D.C. Customers

Pepco today issued a Request for Proposals (RFP) for wholesale electric power supplies to meet its Standard Offer Service SOS obligation in the District of Columbia. Pepco provides market-based supply service to its electric customers who do not choose to receive service from competing retail suppliers.

The RFP is being issued in accordance with orders from the Public Service Commission of the District of Columbia (DCPSC). The PSC oversees Pepco's procurement and delivery of electricity under the District's Standard Offer Service (SOS) provisions, which oblige Pepco to supply electricity to those D.C. customers who do not choose an alternative supplier.

The RFP is the first step in a multi-phase bidding process that begins in October and concludes with the posting of retail rates on or before March 16, 2007. Suppliers will be bidding for supply service contracts to begin on June 1, 2007. Pepco is requesting proposals to supply a total of approximately 520 megawatts (MW). Peak load contributions by customer class include approximately 180 MW for residential customers, 20 MW for small commercial customers and 320 MW for large commercial customers. The contracts awarded for the 180 MW in residential load and 20 MW in small commercial load will be of three years in duration; those for the 320 MW in large commercial load will be for two years.

In accordance with a PSC Order, a pre-bid conference for prospective bidders will be held in mid-October to early November. During the conference, Pepco's RFP managers will review the RFP structure and process, the bid plan and the power supply contract that will be awarded to winning bidders.

Additional details regarding the RFP or the pre-bid conference can be found by visiting the RFP Web site: www.pepco.com/dcrfp. The Web site will go live on Oct 2, and details of the pre-bid conference will be posted there in the near future.

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Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers safe, reliable and affordable electric service to more than 745,000 customers in Maryland and the District of Columbia.

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