Chief Executive Officer Joseph Rigby Discusses Overall Company Progress
Region President Thomas Graham Explains Goals and Objectives

WASHINGTON - Pepco executives briefed area government officials today on the Company's significant progress on infrastructure improvements that will reduce power outages and improve service for its customers.

Joseph M. Rigby, Chairman, President and Chief Executive Officer, Pepco Holdings, Inc., and Thomas Graham, President, Pepco Region, provided up-to-date information on the progress of infrastructure improvements throughout its service territory as a result of the aggressive implementation of the company's reliability enhancement plan.

"We take responsibility for improving service to our customers and we are totally committed to this effort," said Joseph Rigby. "While the past few months have been challenging, we are on track and we will continue to make progress in the six major areas targeted for improvement."

"We want to keep our customers and government officials informed about our progress and the impact of our work on the reliability of the electric service we provide," said Thomas Graham.

Pepco developed the reliability enhancement plan last August and it focuses on six key initiatives. Since September of last year, Pepco has:

• Tree Trimming - increased tree trimming personnel from 80 to 350 and has trimmed more than 1,600 miles of power lines.
• Priority Feeders - inspected and upgraded the structural integrity of 26 distribution level power lines that have had the most outages for the past two years.
• Load Growth - invested over $24 million in new equipment and equipment upgrades.
• Distribution Automation - added more than 60 automated switches on 12 power lines that will reroute power more effectively during storms, helping us restore power more quickly.
• Underground Residential Distribution Cable Replacement - replaced or upgraded almost 70 miles of underground cable in many neighborhoods.
• Selective Undergrounding and Substation Improvements - inspected and upgraded the structural integrity of eleven 69 kV power lines feeding more than 20 substations and trimmed additional trees along these important power lines.
• We also identified 5 miles of overhead power lines that would potentially benefit from undergrounding and we are well along in conducting a feasibility study. In addition, we are preparing to reach out to community groups and stakeholders for input.

Pepco has been implementing these initiatives throughout its service territory including Montgomery County, Washington, D.C., and Prince George's County. In addition, to improve Pepco's communications with customers during major storms, we have:

• Doubled the capacity of our telephone lines and voice mailbox.
• Continued working to expand relationships with other utility call centers to assist in effectively handling large call volumes.
• Hired additional customer service representatives.
• Added computers to work trucks and increased training so that all field crews can submit more timely restoration information to our control center operations, enabling us to provide key information faster to our customers.

Pepco will continue to provide regular updates on our progress in implementing our Reliability Enhancement Plan and improvements in how we communicate with our customers during major storm events.

###

Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers safe, reliable and affordable electric service to more than 778,000 customers in Maryland and the District of Columbia.