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For Immediate Release


Pepco Announces Smart Grid Technology Approval for District of Columbia

Legislation Clears Path for District Residents

WASHINGTON - With the approval of emergency legislation by both the Mayor and the Council of the District of Columbia, Pepco today is a step closer to building a smart grid network that will eventually serve the company's 247,000 customers in the District. Advanced Metering Infrastructure (AMI) is a core component of smart grid technology.

"Obtaining District approval of AMI is an important step forward which will help District customers better manage their energy use and costs," said Pepco Region President Tom Graham. "This legislation is key to presenting the best possible case for obtaining federal stimulus funding authorized by the American Recovery and Reinvestment Act of 2009 (ARRA)."

The ARRA, signed into law by President Obama in February, contains $4.5 billion for developing a U.S. smart grid. This funding will be available to utilities to cover up to 50 percent of their costs for constructing and deploying a smart grid in their service areas. The application period for ARRA funding for smart grid implementation opens early summer. The Department of Energy, which is administering the funds, has stated that it will look favorably on applicants who are "shovel-ready" and operate in a favorable regulatory climate. The approval of AMI implementation and cost recovery on an emergency basis by the mayor and the council demonstrates the District's jurisdictional support and enables Pepco to submit the strongest application possible to receive ARRA funding. The legislation allows Pepco to establish a "regulatory asset" for recovering costs associated with implementing AMI, less the amount of federal stimulus funds received, as well as earning a return on its investment.


Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers safe, reliable and affordable electric service to more than 750,000 customers in Maryland and the District of Columbia.

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