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For Immediate Release

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Pepco Prepares for Storms with Major Drill

500 Workers Perform Restoration Procedures; Government Officials and Reporters Observe

WASHINGTON - Pepco is conducting a major drill today to test the company's readiness for a significant storm event. This is an annual exercise hosted by Pepco to ensure its employees are trained and prepared to respond as quickly and efficiently as possible during power outages caused by major storms. The exercise involves approximately 500 workers from across the Pepco Holdings, Inc. service area.

This functional exercise is intended to p rovide realistic scenarios for workers to practice implementation of the plans that are in place to respond to severe weather-related outages and other significant outage incidents; d emonstrate and rehearse changes that improve the restoration process; and ensure customer communications are enhanced.

"This exercise will demonstrate our storm restoration processes as well as how the Reliability Enhancement Plan is improving our infrastructure and ability to provide service during major weather events," said Thomas Graham, President, Pepco Region.

For this year's drill, Pepco has invited government officials and the media to the exercise for the first time. Legislators, regulators and journalists will have the opportunity to observe a simulated restoration process in Pepco's Control Center and will witness the company's restoration preparedness and response.

"Providing this rare look inside our Operations complex demonstrates our desire for transparency, and we hope it will provide context for Pepco's response protocols and procedures," Mr. Graham said. "Members of our executive and management team will be available to discuss how we handle major storm events and answer questions about our restoration process."

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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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