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For Immediate Release

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Pepco Reevaluates District Residents' Claims for Unusual Voltage Surge

Due to an unusual confluence of events over a 10-day period, Pepco has decided to reevaluate

claims from a group of residents in the southeast section of the District of Columbia.

Twice within two weeks, strong thunderstorms moved through their neighborhood, downing trees, causing power outages and unusual power surges that damaged customer's appliances and

video equipment.

Today's decision came following a site visit by Thomas Graham, President, Pepco Region, and a comprehensive reassessment of the two storms with regards to the unusual scope of the

property damage and other factors. Affected District residents are invited to re-submit their documentation for property damage claims.

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Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers safe, reliable and affordable electric service to more than 750,000 customers in Maryland and the District of Columbia.

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