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For Immediate Release


Pepco Energy Services Expands Power Systems Reliability and Engineering Capabilities to Meet the Growing Needs of the Information Economy

For Immediate Release
May 31, 2000

WASHINGTON - Pepco Energy Services, Inc. announced today that it has acquired Substation Test Company, a privately held electrical equipment testing company headquartered in Forrestville, MD. Substation Test maintains and tests components of power distribution systems for large commercial, industrial and institutional customers in the Mid-Atlantic region.

" The new information economy places a premium on the reliability and quality of electric power," said Ed Mayberry, President and CEO of Pepco Energy Services. " Our current customers for these services include leading Internet service providers, local and long distance communications companies, and data centers. In addition we also provide services to hospitals, research facilities, and other organizations for whom a reliable power supply is critical," Mayberry added.

Substation Test is the second electrical testing and maintenance company acquired by Pepco Energy Services in the past eighteen months. MET Electrical Testing, acquired in December of 1998, provides similar services in the Mid-Atlantic region, with offices in Pittsburgh, Virginia Beach, and Columbia, MD.

"The addition of Substation Test gives us a leadership position in supplying power quality and reliability services in the Mid-Atlantic Region", stated Bob Aylward, President of Pepco Building Services, the operating subsidiary of Pepco Energy Services. "We believe we can use our market position to supply a broader range of services, such as mechanical system operation and maintenance, to our expanding customer base."

Pepco Energy Services 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. Its 1999 revenues were $134 million.

Pepco Energy Services is a wholly owned, separately operated subsidiary of Washington, DC-based Potomac Electric Power Company (NYSE: POM).

You can find more information about Pepco Energy Services on the Web at

Point of Contact:
Robert Dobkin

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