For Immediate Release
September 9, 2005

Pepco today announced that it is initiating a process with the District of Columbia Public Service Commission to accelerate construction of transmission facilities in the Washington, D.C., region. This will ensure reliability in the absence of the Potomac River Generating Station, which was recently shut down by its owner, Mirant Corporation, in response to an environmental study. The plant plays a critical role in backing up transmission lines serving customers in Washington, D.C.

"Given Mirant's recent decisions, we believe action is necessary to satisfy Pepco's obligation to provide reliable service to our customers. Therefore, we are advancing contingency plans to build new underground transmission lines on existing rights of way to enable us to meet customers' needs without the plant," said Dennis Wraase, Chairman of the Board, President and Chief Executive Officer of Pepco Holdings, Inc., Pepco's parent company. The transmission construction project is expected to take about 18 months. In the meantime, Pepco supports the District of Columbia Public Service Commission's recent petition asking federal authorities to order Mirant to resume operating the plant.