For Immediate Release
October 14, 1999

Potomac Electric Power Company (NYSE: POM) today announced the formation of Pepco Technologies, LLC, to develop and market new energy technologies to utility companies. "Deregulation of the electric utility industry is creating new opportunities for Pepco to develop and market emerging energy technologies to utilities seeking to grow their customer base and develop new revenue sources," said John D. McCallum, Chairman and CEO of the new subsidiary.

This month, Pepco Technologies introduced its first new product, a device developed by a Pepco engineer that enables homeowners to safely and conveniently connect a portable back-up generator to a home s electric system.

McCallum said the device, called GenerLink , is the first in a series of products that will facilitate connecting alternative generation equipment such as portable generators, fuel cells and other distributed energy technologies to the power grid. "Regardless of the alternative energy equipment, we will provide the plug-and-play technology solution that enables the safe and efficient connection of a wide variety of devices to a home electric distribution system."

GenerLink is a collar-shaped device that utility personnel can install behind a homeowner s electric meter in about 30 minutes. During a power outage, the homeowner simply plugs a generator into GenerLink s interconnection port, and by switching breakers on the household s main circuit panel, can select the appliances they want to operate.

"GenerLink offers practical solutions to residential customers who want increased reliability and, a low cost interconnection solution for utilities that are concerned about the safety of line repair crews," said Brad Johnson, President and Chief Operating Officer of Pepco Technologies.

GenerLink automatically disconnects the home from the utility s power grid when a portable generator is operated. It eliminates the hazards of running multiple extension cords to individual appliances and prevents electricity from feeding back into the grid and possibly endangering utility line crews working to restore power.

Portable generators present an immediate near term market for utilities that are seeking to offer their customers higher levels of reliability. With the proliferation of computers and other electronic products, many consumers want more than the 99.9 percent reliability most electric utilities provide.

Today, Americans own more than 10 million small portable generators, up 30 percent in the last six years. An estimated 700,000 to 800,000 portable generators are purchased every year. "Our research shows that these generators are being bought by many more people who work at home, individuals who just can t stand to have their schedules disrupted, and those who have come to depend on the growing number of electronic devices in their lives," Johnson said.

GenerLink is being sold exclusively to electric utilities by Pepco Technologies. In addition, Pepco Technologies is also offering a comprehensive turnkey marketing package to utilities who have decided to market GenerLink to their residential customers. The package includes marketing materials such as bill inserts, direct mail brochures, videos, customer care information and Web-site content, as well as customer service and installation training.

Electric Utility Companies Interested in Distributing GenerLink should contact:

East Coast
Dennis Skrincosky
Pepco Technologies, LLC
1801 K Street, Northwest
Suite 1210
Washington, DC 20006
202-775-7369 (telephone)
202-775-7361 (fax)
Email: dskrincosky@pepcotechnologies.com

West Coast
Larry Hall
Pepco Technologies
1801 K Street, Northwest
Suite 1210
Washington, DC 20006
972-403-8192 (telephone)
972-403-8192 (fax)
Email: lhall@pepcotechnologies.com

To learn more about GenerLink contact Pepco Technologies
at www.GenerLink.com or  telephone (202) 775-7360.