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New Supply Rates Effective with June Billing

Pepco Urges Customers to Conserve to Help Offset Summer Rates

WASHINGTON - Pepco's Standard Offer Service (SOS) supply rates for Maryland and District of Columbia residential customers will increase today coinciding with the summer billing season.

Pepco delivers electricity but does not generate it. The company purchases the electricity it needs for customers from competitive wholesale suppliers, who own power plants and produce electricity or who buy and sell it on the wholesale market.

These SOS supply rates are shown in the "Generation Services" and "Transmission Services" portions of the electric bill and are largely a pass through to customers.

SOS rates apply to customers who do not select an alternative energy supplier and are based on market prices obtained through a competitive bidding process approved by the Maryland and District of Columbia Public Service Commissions. Prices for the summer and winter periods are bid separately because the cost of producing electricity is higher in the summer than in the winter.

For Maryland residential customers, the new summer SOS rate will add about $16.45 per month, raising the average bill from about $167.43 to $183.88. However, in October when the new winter SOS rate takes effect in Maryland the average monthly bill will increase by only $1.72, raising the average bill from about $131.06 to $132.78.

Combined, the new winter and summer supply rates for Maryland will increase the annual average monthly bill by $7.81. For an average Maryland residential customer who uses about 1,000 kilowatt-hours (kWh) of electricity a month this would result in an increase of 5.3 percent.

For District residential customers, the new summer SOS rate will add about $3.49 per month raising the average bill from about $120.03 to $123.52. In October, when the new winter SOS rate takes effect in the District the average monthly bill of a residential customer will increase by $2.12, raising the average bill from about $86.64 to $88.76 .

Combined, the new winter and summer supply rates for the District will increase the annual average monthly bill by $2.69. For an average District customer who uses about 730 kWh of electricity a month this would result in an increase of 2.7 percent.

Pepco recognizes that any increase in monthly bills can be a concern. Customers should contact Pepco at 202-833-7500 if they have concerns about their bill. Pepco has payment options and arrangements available to assist customers.

Pepco customers can save energy and money by better understanding where their energy dollars are spent. The company therefore offers the following summer cooling tips:

· Set thermostat at 78 degrees F, a reasonably comfortable and energy efficient indoor temperature. For every degree increased as health permits, customers can save 3 percent to 5 percent.

· Consider using a ceiling fan with window air conditioners to spread cooled air to other rooms. Customers should be sure air conditioners are large enough to help cool the additional space.

· Clean or replace air conditioning filters monthly. Foam filters can be rinsed with water and wrung dry. Fiberglass filters need to be replaced.

· Install a whole-house ventilating fan in attics or in an upstairs window to help circulate air. Although not a replacement for a central air conditioning system, a fan is an effective way to stay comfortable on milder days.

· Use vertical louvers or awnings to keep out the sun. Close any draperies, blinds and shades.

· Keep lamps or television sets away from the thermostat. Heat from these appliances is sensed by the thermostat and could cause the system to run longer than necessary .

For more energy saving tips, customers should visit Pepco's Web site, www.pepco.com and l og on to "My Account" to analyze energy bills and discover more ways to save.

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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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