Washington D.C.- Pepco, a subsidiary of Pepco Holdings, Inc., made $205 million in capital improvements to its electric system during the first half of 2011, compared to $136 million for the comparable period in 2010. The increase in investment was primarily due to higher spending for distribution reliability, transmission infrastructure, and new customer services. Also during the first half of 2011, Pepco spent $202 million for operation and maintenance of the electric system, compared to $161 million in the first half of 2010. The increase in spending was primarily due to higher costs from trimming more trees along power lines, increased spending on preventive maintenance of the electric system, and emergency restoration costs incurred during storms.

"Pepco's investment in infrastructure in the first half of this year increased by $69 million, a 50 percent increase as compared to the same period last year. This increase in spending reflects our commitment to improving electric system reliability as quickly as possible for our customers," said Anthony J. Kamerick, Pepco Holdings Senior Vice President and Chief Financial Officer. "The spending was associated with investments in new equipment, advanced technology and other assets that will help the system operate more effectively and reliably while offering customers additional tools to help them monitor, control and reduce their energy usage." Kamerick added, "Implementing reliability improvements to Pepco's electric distribution system remains Pepco's number one priority."

Pepco is a wholly owned subsidiary of Pepco Holdings, Inc. (PHI), which is a shareholder-owned public utility holding company. PHI's financial results are derived primarily from the operating results of its wholly owned subsidiaries: Pepco, Atlantic City Electric, Delmarva Power and Pepco Energy Services. Financial information for PHI and each of its operating utilities, including Pepco, can be found in their combined Form 10-Q for the quarter ended June 30, 2011, as filed with the Securities and Exchange Commission. The Form 10-Q is also available at www.pepcoholdings.com/investors.

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Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers safe, reliable and affordable electric service to more than 786,000 customers in Maryland and the District of Columbia . Pepco Holdings, Inc. is one of the largest energy delivery companies in the Mid-Atlantic region, serving about 1.9 million customers in Delaware, the District of Columbia, Maryland and New Jersey. PHI subsidiaries Pepco, Delmarva Power and Atlantic City Electric provide regulated electricity service; Delmarva Power also provides natural gas service. PHI provides energy efficiency and renewable energy services through Pepco Energy Services.