For Immediate Release
CHAIRMAN DENNIS WRAASE TO RETIRE; JOSEPH RIGBY ELECTED PRESIDENT AND CEO
Pepco Holdings, Inc. (PHI) (NYSE:POM) announced today that the PHI Board of Directors has elected Joseph M. Rigby as President and Chief Executive Officer, succeeding Dennis R. Wraase as CEO, effective March 1, 2009. Wraase will continue to serve as Chairman of the Board until his retirement at the time of PHI's 2009 Annual Meeting. Rigby is currently President and COO of PHI.
"Joe Rigby's deep and varied background in finance, operations and executive leadership makes him the right leader for the changing energy environment," said Wraase. "He has the vision and strategic capability to lead PHI as we implement new technologies that will transform the way power is delivered."
Rigby acknowledged Wraase's leadership in establishing the company as an industry leader. "Under Dennis' leadership, PHI has been at the forefront of the changes in the electric utility industry with our Blueprint for the Future," said Rigby. "It's that visionary leadership that has been the foundation of our past success and will continue to guide our strategy going forward."
Wraase's career with PHI / Pepco has spanned more than 35 years. He joined Pepco in 1974 and has been a member of the Board of Directors since 1998. He has held numerous executive positions at PHI and has served as CEO since 2003.
Rigby joined Atlantic City Electric in 1979 and advanced through a number of management positions. His responsibilities have included accounting, financial services, treasury operations, business transformation, human resources, and the Atlantic City Electric/Delmarva Power merger transition team. Following the merger that formed Conectiv, Rigby served as Vice President, Gas Delivery; Senior Vice President of Electric Delivery and was elected President, Conectiv Power Delivery in 2002. From May 2004 to September 2007 he served as Senior Vice President and Chief Financial Officer of PHI and was responsible for all financial activity as well as investor relations. Since August 2007 he has served as COO of PHI and President since 2008.
PHI also announced several other executive management changes as part of the company's overall transition plan. These changes are also effective March 1, 2009.
David M. Velazquez will take on the role of Executive Vice President of PHI and lead the Power Delivery line of business. Velazquez is currently President and CEO of Conectiv Energy, PHI's competitive merchant energy subsidiary.
"Dave's election is a testament to PHI's succession management process," said Rigby. "He is a proven talent who has risen through the ranks of the company, successfully serving in many roles across PHI."
Velazquez joined PHI's subsidiary Delmarva Power in 1981 and has worked in a number of management positions in operations, engineering and planning, previously serving as Vice President of Business Planning for Conectiv Energy as well as Vice President, Strategic Planning and Chief Risk Officer for PHI. Velazquez is a graduate of Widener University with a B.S. degree in Engineering.
Morsches is formerly of the Boston Consulting Group and Mirant Corporation. Morsches' experience as Regional Chief Operating Officer for Mirant's US, Canadian and Caribbean operations coupled with his earlier experience in commodity trading and risk management brings the depth and understanding required for the position.
"Gary brings a very strong background to this role and is a great addition to our team," said Rigby.
Both Velazquez and Morsches will report to Rigby.
Additionally, Anthony J. Kamerick, currently PHI Vice President and Treasurer, will assume the role of Senior Vice President and Chief Regulatory Officer. Kamerick will drive PHI's regulatory strategy and processes and have responsibility for execution of PHI's rate proceedings.
Kamerick joined Pepco in 1970 and has held several management and executive positions in Pepco's finance department, including both Treasurer and Comptroller.
"Tony has a deep knowledge of our regulatory processes, and has long played a key role on the regulatory front," said Rigby. "We have several distribution rate case filings planned for this year and we're well positioned with Tony heading up this effort."
Kevin M. McGowan will replace Kamerick as Vice President and Treasurer. McGowan, currently Vice President of Financial Planning and Budgeting, will now oversee the company's cash management function, pension investment administration, financing, and bank relations. McGowan will retain responsibility for financial and strategic planning and budgeting for PHI.
McGowan joined the company in 1998 as Vice President and Treasurer of Potomac Capital Investments. In 2002, he was elected Senior Vice President and CFO of PCI. In 2004, McGowan joined the Power Delivery Group as Vice President, Business Planning and Finance and became Vice President, Financial Planning and Budgeting for PHI in 2005.
"Kevin brings a strong financial and operations background to the role of treasurer," said Rigby.
Kamerick and McGowan will continue to report to PHI Senior Vice President and Chief Financial Officer, Paul H. Barry.
Rigby added, "These changes reflect our focus on succession planning and provide for a smooth transition. I'm confident in the capabilities of our team to create value as we move ahead to face the challenges and opportunities of our industry."
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