For Immediate Release
September 21, 2003, 12:00 p.m.

12:00 p.m. Outage Update
Pepco Continues Unprecedented Restoration Effort;
Crews Restore Service to A Quarter Million Customers

Pepco crews, along with crews on loan from other utilities, continue working on the biggest restoration effort in Pepco`s history. More than half a million lost power at the peak of the storm and, as of noon, Sunday, well more than half of those had been restored to service.

About 241,000 customers remain without power, and crews continue to work round the clock to restore service as quickly as possible. Currently there are 570 crews working in rotation during the day with another 261 ready for the next shift, including 62 additional crews from Kentucky and Tennessee who arrived overnight.

Damage from the storm was very severe, and is requiring an unprecedented restoration effort. For example, crews have already replaced 137,000 feet of cable and thousands of fuses and have received over 2,500 wires down reports. Pepco estimates that nearly all customers will have power restored by Friday.

Calls from customers who are without power are a key element in the restoration process. If they haven`t done so already, we urge customers whose power is out to call Pepco at 1-877-PEPCO 62. Once they have made the first call, they need not call again unless they remain without power after their neighbors are restored.

As of 12:00 p.m., today, the following outages are reported on the Pepco system:

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About Pepco: For more than 100 years, Pepco has served the people of the Washington metropolitan area with clean, reliable and low-cost electricity. Pepco, a wholly owned subsidiary of Pepco Holdings, Inc. (NYSE: POM), provides electricity transmission and distribution services to more than 700,000 customers in the District of Columbia and major portions of Prince George`s and Montgomery County in Maryland.

Point of Contact:
Robert Dobkin