Several Recommendations are Consistent with Actions Pepco Began in September

WASHINGTON , D.C. - Today, Pepco is reviewing findings of a study presented by the Montgomery County Work Group. The Work Group was commissioned by County Executive Isiah Leggett in 2010 to give residents and businesses the opportunity to provide feedback on the impacts of service interruptions and to come up with recommendations from a consumer's perspective on how Pepco's restoration process could be improved. Pepco has commissioned similar blue ribbon panel work groups in the District of Columbia and Prince George's County to provide the same opportunity to those jurisdictions.

"We commend the work group for its hard work over the past several months," said Joseph M. Rigby, Chairman, President and CEO of Pepco Holdings, Inc. "While we may differ with certain findings mentioned in the report, many of the findings and conclusions are reflective of work we have under way as part of the Reliability Enhancement Plan." Pepco agrees that greater clarity of authority is needed with respect to vegetation management on private property, where such vegetation is a threat to the provision of electric power to the community as indicated in the report.

"We recognize the hard work and effort that was performed by the Work Group," said Thomas Graham, President, Pepco Region. "We look forward to collaborating with county leaders and other stakeholders to resolve issues that are barriers to improving reliability. To that end, in a letter dated March 23, 2011, to Councilmember Roger Berliner, Chairman of the Transportation and Energy Committee with copies to the full Council, I requested Mr. Berliner to convene a hearing to discuss County and municipality tree trimming policies." Graham went on to say that he is yet to hear from Councilmember Berliner.

Pepco cooperated with the Work Group over the last several months, answered its requests for information, and was an active participant in its meetings. Pepco is hoping for the same type of collaboration with Councilmember Berliner to effect necessary policy changes for tree trimming.

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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.