For Immediate Release
April 30, 2001

Potomac Electric Power Company (NYSE: POM) today announced that on June 1, 2001, it will redeem at 103.61 percent of principal amount, plus accrued interest to the redemption date, the entire $100 million outstanding principal amount of its 9 percent First Mortgage Bonds due June 1, 2021 (CUSIP No. 737679BP4). These bonds were issued in 1991.

Payment of the redemption price will be made by The Bank of New York, Trustee, upon presentation of the bonds. The mailing address of the redemption agent is The Bank of New York, Bond Redemption Unit, P. O. Box 3856, Houston, Texas, 77253-3856. Questions may be directed to the Trustee at The Bank of New York, Corporate Trust Department, 21^st floor, 101 Barclay Street, New York, N.Y. 10286, or by telephone at 1-(800) 882-6559.

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This material is not intended for use in connection with any sale or offer to sell or the solicitation of an offer to buy any securities.

Pepco (www.pepco.com) is an investor-owned company that delivers electricity to more than 700,000 customers in Washington, D.C., and the Maryland suburbs. Through its family of subsidiaries, Pepco also operates in the competitive arenas of telecommunications and energy products and services in the mid-Atlantic region.