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PHI CEO Testifies before Maryland Public Service Commission

CEO says from Board Room to Loading Dock,

Reliability and Customer Service Top Priorities

WASHINGTON , D.C. - Pepco Holdings, Inc. Chairman, President and CEO Joseph M. Rigby today appeared before the Maryland Public Service Commission and said that Pepco 's top priorities are to provide reliable service, to have excellent storm plans and top-notch storm response, and clear and effective customer communications.

"In fact, from our board room to the loading dock - we are focused on two core issues: the safe delivery of reliable power and improving customer service," said Rigby, who was testifying about Pepco's service restoration process following the January 26 storm.

The CEO said that Pepco, a subsidiary of Pepco Holdings, is committed to spending more than $250 million over the next five years on planned reliability initiatives in Maryland for Pepco customers. This is part of an overall $1.6 billion Pepco Maryland 5-year construction plan for transmission and distribution assets.

Rigby stressed that, "I've also tasked my team to continuously find ways to accelerate that plan. We recognize the reliability improvements that come from moving branches and problem trees away from wires."

Pepco Maryland spent more than $8.5 million on tree trimming in 2010. It has budgeted another $18 million on tree trimming in 2011, and will have over four times the numbers of tree crews working in Pepco Maryland at this time than we did one year ago.

" We need to continue to move quickly on selective undergrounding and underground cable replacement," said Rigby. "We are also installing, and need to continue to install, more automated equipment, including advanced metering infrastructure."

Rigby also told the Commissioners, " I can assure you this is a situation we intend to address in full. This is not where I want my company to be, and I know our customers are frustrated. I get it. Our employees get it. We have a lot of work to do and we're going to get it done.

"I'm proud of the people who work at Pepco. We are a group of people committed to working hard to restore the trust and confidence in Pepco."

Details of the Pepco's Reliability Enhancement Plans and work updates can be obtained by visiting 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 778,000 customers in Maryland and the District of Columbia.

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