For Immediate Release
December 1, 2004

Pepco today issued a final report on the findings of Community Advisory Groups that examined a range of power outage and service related issues on behalf of Pepco customers. After a series of severe storms in 2003, Pepco sought community input to help improve the restoration process following future power outages. To accomplish this, Pepco created Community Advisory Groups (CAG) in each jurisdiction within Pepco's service area (the District of Columbia, Montgomery County, and Prince George's County). Each CAG involved a cross-section of community leadership in a collaborative process to review Pepco's restoration process and to identify alternatives for providing better service to Pepco customers.

Over a period of six months, representatives from 48 organizations attended a series of three meetings which included discussions on:

• Pepco's electric system and what happens when the system is impacted by severe weather
• Customer Communications
• Dry Ice Distribution
• Restoration Priorities
• Tree Management Coordination

The Community Advisory Group Final Report summarizes the discussions and recommendations from these meetings across all three jurisdictions. Some of the recommendations from the CAG include Pepco's discontinuation of dry ice distribution during major power outages. The CAG cites that the practice diverts skilled Pepco workers away from their core mission of restoring power. Another CAG recommendation cites the need for better notification and communication to customers who depend upon electricity for life-support equipment. Pepco has already implemented those recommendations, as well as other CAG recommendations. A copy of the Final Report can be found on our Web site, www.pepco.com/pdf/Pepco_CAG_Report-120104.pdf.

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About Pepco: Pepco, a wholly owned subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers electricity at regulated rates to 725,000 customers in Washington and major portions of Montgomery and Prince George's counties in suburban Maryland.