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Pepco Receives Approval for Smart Meters from Regulators of the District of Columbia

Smart Grid Technology Moves Closer to Local Customers

WASHINGTON - Pepco announces that an order from the District Public Service Commission has cleared the way for use of federal stimulus funding to implement Advanced Metering Infrastructure (AMI) in the District of Columbia. Consistent with District law, on O ctober 29, 2009, Pepco notified the Commission that the Department of Energy (DOE) had awarded them $44.6 million for AMI implementation in the District of Columbia. After considering all parties' comments and replies, the Commission determined the funding level is sufficient to enable AMI implementation in the District of Columbia.

" The Commission's approval for advancing smart grid initiatives brings new opportunities to empower customers to control their utility bills and save energy," said Thomas Graham, President Pepco Region. "We firmly believe that AMI will provide more detailed and frequent energy information to help customers develop energy-saving strategies."

The core component of the smart meter is an embedded computer that collects customers' electricity usage data . Once installed, the smart grid will provide several key services to consumers including over-the-air meter reads that minimize the need for estimated bills, detailed information on energy use to enable better energy management, and enhanced communication with the customer.

The award of $44.6 million from DOE substantially reduces the total costs to be borne by customers. Funding obtained from the federal government will offset the amount customers would otherwise pay by approximately 50% to make these important enhancements to the system. The smart meters will not only enable benefits like improved customer service and reliability but are also a critical component of the company's Blueprint for the Future which supports the nationwide effort to partner with customers for energy efficiency and a global reduction in carbon emissions. For more information visit www.pepco.com.

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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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