For Immediate Release
June 3, 2004

Revision

The District of Columbia Public Service Commission, on June 2, 2004, has directed that the procedural schedule for the solicitation of bids, pre-bid conference, selection of winning bidders and other matters related to the Request for Proposals (RFP) from suppliers of electricity to meet Pepco's Standard Offer Service (SOS) obligations in the District of Columbia be suspended. According to the Commission, the suspension is due to the third-party filing of applications for reconsideration of several orders issued by the Commission relating to the SOS RFP's procedures.

Suppliers who wish to respond to the RFP are asked to check Pepco's RFP Web site (www.pepco.com/dcrfp) regularly; the company will update the page as soon as new information is available.

Pepco cannot predict when the D.C. Public Service Commission will rule on the various applications for reconsideration or when a new procedural schedule will be established.

Pepco will issue a press release as soon as the RFP process is reactivated, and will post the release to its RFP site, as well.

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Pepco Issues RFP for Wholesale Electric Power

Pepco today issued a Request for Proposals (RFP) for wholesale electric power supply to meet its entire Standard Offer Service (SOS) obligation in the District of Columbia. Pepco will provide market-based supply service to its electric customers who do not choose to buy their electric service from competing retail suppliers.

The RFP is structured to support a multi-phase bidding process that is scheduled to begin in September 2004 and conclude in November 2004 for supply service contracts to begin in February 2005. Pepco is requesting proposals to supply a total of approximately 1,425 megawatts (MW) per year to meet the needs of three customer classes: residential, small commercial and large commercial. Currently, the capacity peak load contribution is approximately 460 MW for Residential Customers, 62 MW for Small Commercial Customers and 903 MW for Large Commercial Customers.

A pre-bid conference will be held on June 28, 2004 , at Pepco's headquarters in Washington, DC. Pepco's RFP managers will brief participants on the RFP structure and process, the bid plan and the power supply contract that will be awarded to winning bidders.

Additional details regarding the RFP or the pre-bid conference can be found by visiting the RFP Web site: www.pepco.com/dcrfp. Contact information also is available on this site.