For Immediate Release
January 4, 2000

Pepco and its customers paid more than $97 million in taxes to the District of Columbia government for the 1998 tax year. Next to the cost of fuel, taxes are the second highest cost component of a Pepco customer's electric bill. Federal, state and local taxes currently account for about 24 percent of a customer's bill in the District of Columbia.

The tax payments in 1998 cover Pepco's gross receipts tax, sales and use taxes, real estate and personal property taxes. These taxes contribute significantly to supporting public services in the District.

Pepco provides electric service to all of the District of Columbia's 220,000 residential and commercial customers.

Pepco (NYSE:POM) is an investor-owned utility that provides electricity in Washington, D.C. and the Maryland suburbs, serving nearly 700,000 customers. Pepco, through its family of unregulated subsidiaries, also offers electric energy, natural gas, high-speed Internet access, local and long distance telephone, cable television and energy management services in the mid-Atlantic region.