For Immediate Release
March 29, 2000

WASHINGTON, March 29 - The Apartment and Office Building Association (AOBA) has selected Pepco Energy Services, a subsidiary of Potomac Electric Power Company (NYSE: POM), to supply electricity and energy management services through a new alliance that allows Pepco Energy Services to aggregate the participating companies' purchasing power.

In the most compelling example to date of how commercial energy buyers can increase their purchasing clout by acting jointly, the "AOBA Alliance" endorsed Washington, D.C.-based Pepco Energy Services just days before the April 1 beginning of open competition for electric customers in Maryland.

The AOBA Alliance's selection of Pepco Energy Services comes after extensive research into how best to give its participants the strongest possible voice in the energy marketplace. The agreement also follows a recent decision by Southern Management, Inc. for Pepco Energy Services to deploy a portfolio of interactive energy services via the Internet and analyze energy consumption data to reduce its energy bills. Southern, based in Vienna, Va., is a member of AOBA.

"We commend AOBA for cutting through the complexities of deregulation and getting out front for its member companies to seize the benefits of proactive energy management," said Ed Mayberry, President of Pepco Energy Services. "We look forward to helping AOBA members realize measurable savings beginning in Maryland and going forward in Virginia and the District of Columbia."

AOBA President David Bender said, "By participating in this alliance, AOBA takes the first step of a long-term plan to assist its members in deregulated energy markets."

The first step for Alliance participants is to turn their newly created buying power into supply accords that can lower their energy bills. Then they are to collect and analyze consumption data to fine-tune procurement strategies that can capitalize on their "load" profiles.

Pepco Energy Services also will offer AOBA members fuel management services including assistance in the procurement and use of natural gas and fuel oil.

The 130 AOBA member companies represent more than 100 million square feet of commercial office space and more than 160,000 residential apartment units throughout Maryland, Northern Virginia and the District.

Pepco Energy Services, a wholly owned, separately managed subsidiary of Pepco, provides commercial, institutional and government customers a complete suite of integrated energy management solutions including electricity and natural gas; energy assessments; energy information systems; fuel management services; heating, ventilation and cooling systems; lighting; project financing; and energy operations and maintenance services. In 1999, Pepco Services was awarded over $500 million dollars in energy services contracts and has completed energy-efficiency projects from Connecticut to North Carolina. For information about Pepco Energy Services on the Web, go to www.pepco-services.com .

AOBA is the Washington, D.C.-area federated chapter of the Building Owners and Managers Association and the National Apartment Association. Background about AOBA is on the Web at www.aoba-metro.org.

Journalists needing background about the opening of the Maryland electricity market should call Don Lintvet of Pepco Energy Services at 202-454-8040.