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For Immediate Release


Pepco to Make Reliability Upgrades at Buzzard Point

Upgrade of Transmission Lines Will Increase Reliability of Supply to the Buzzard Point Substation

Generating Units will be Retired

WASHINGTON, D.C. - Today, the Potomac Electric Power Company ("Pepco" or "Company") filed with the Public Service Commission of the District of Columbia a formal notice of its intent to make major reliability improvements to the Buzzard Point Substation. Pepco plans to increase the capacity of two underground transmission circuits between the Buzzard Point Station in Southwest, Washington, DC and Pepco's Ritchie Substation in Seat Pleasant, Maryland. The proposed transmission upgrades are necessary to maintain reliable electric service, comply with updated standards from the North American Electric Reliability Corporation for local distribution companies that maintain transmission lines and substations, and to address the projections of the regional electric grid operator, PJM Interconnection LLC ("PJM"), for power and reliability protocols on Pepco's transmission system. Pepco is proposing to begin construction of the transmission upgrades in the fall of 2012 with completion targeted for late spring 2014.

Pepco Holdings, Inc., the parent company of Pepco, previously requested and obtained PJM's approval to retire the generation units at Buzzard Point. The generation units are only used a limited number of hours annually. PJM studied the effects of the planned shutdown and determined that the generation units can be retired.

"We are pleased that we have received the necessary approvals to move forward with the generation closure and the planned upgrade of the two existing underground circuits that will ensure continued reliability of the electric transmission system serving our customers," said Thomas Graham, President, Pepco Region.

"Pepco will continue to work with PJM to assure that adequate capacity to serve customers' needs will be in place prior to retiring the generation units, and we will work to minimize residual construction impacts."


Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers safe, reliable and affordable electric service to more than 789,000 customers in Maryland and the District of Columbia.

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