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For Immediate Release


Pepco Seeks Recovery of District Reliability Investments

WASHINGTON, D.C. - Pepco, a subsidiary of Pepco Holdings Inc., has been making significant investments in the District of Columbia to improve reliability and plans to continue to make infrastructure investments to serve our customers. Pepco today asked the District of Columbia Public Service Commission (PSC) to authorize a $52.1 million increase in base distribution rates to help pay for the reliability investments it has made.

If approved, this would mean a $5. 89, or 6.23 percent, increase per month for a typical District residential customer using an average of 750 kilowatt hours per month. This equates to less than 20 cents a day in increased electric rates and a new bill of about $100 a month for the typical residential customer. Pepco has requested a PSC decision within nine months from today's filing.

"Since we started our reliability work more than two years ago to upgrade and modernize our system, reliability has improved for our customers," said Thomas H. Graham, president, Pepco Region. "Customers are experiencing fewer outages, and the outages that do occur have shorter durations."

Pepco's reliability investments are paying off for customers. In 2012, Pepco's performance in the District of Columbia exceeded the reliability performance standards levels established for 2013 for both the frequency and duration of outages. This means Pepco met these performance requirements a year ahead of schedule.

From 2010, when Pepco began our Reliability Enhancement Program, through 2012, customers in the District of Columbia saw a 17 percent reduction in the number of outages that occurred and a 21 percent reduction in the duration of those outages for day-to-day service. From 2011 to 2012, customers on improved feeders saw a 28 percent reduction in the number of day-to-day outages and a 42 percent reduction in the duration of the outages that did occur.

Pepco expects further improvements in 2013 and beyond as the company continues this reliability work and estimates our five-year transmission and distribution construction budget in the District of Columbia at
$1.47 billion.

"We must file again to recover the reliability investments we're making for our customers," Graham said. "We're spending money to continue to improve reliability and modernize the grid that our customers use every day."

The filing includes recovery for infrastructure investments, depreciation expenses, increased operations and maintenance costs and an increase in our return on equity.

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Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE: POM), delivers safe, reliable and affordable electric service to more than 793,000 customers in Maryland and the District of Columbia.

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