Pepco Energy Services Selected by State of Maryland Department of General Services for Energy Savings Performance Contract

Pepco Energy Services Selected by State of Maryland Department of General Services for Energy Savings Performance Contract

ARLINGTON, Va., April 19 /PRNewswire/

Pepco Energy Services, a subsidiary of Pepco Holdings, Inc. (NYSE: POM) and a leader in energy savings performance contracting, announced today that it has been chosen by the State of Maryland Department of General Services to provide comprehensive energy efficiency and guaranteed savings programs for Maryland state agencies, universities, K-12 schools, local government, and county facilities.

After an exhaustive eight month process, the State of Maryland Department of General Services selected Pepco Energy Services as the highest ranking qualified energy savings contractor for the State of Maryland's Indefinite Delivery Contract. "Pepco Energy Services is excited to be a continued resource for the State of Maryland as it strives to reduce energy consumption and air emissions through both standard and renewable technologies," remarked David Weiss, President of the Performance Management Group of Pepco Energy Services.

Since 1995, Pepco Energy Services has developed, implemented and financed over $500 million of energy performance contracts for more than 200 customers, including the single largest energy performance contract ever awarded by the Federal Government -- a project for the Military District of Washington including Fort Meade, Maryland, which will produce over $200 million of energy savings.

Some other energy savings contracts completed in Maryland include: a $5.4 million chilled water plant and HVAC upgrade project at White Flint Mall, a $5.2 million steam plant decentralization at Andrews Air Force Base and a highly efficient co-generating facility at National Institutes of Health.

"We have an excellent track record of successfully completing energy savings projects, and we are staffed and committed to complete these important projects for the State of Maryland," added John Huffman, Vice President with Pepco Energy Services.

About Pepco Energy Services

Pepco Energy Services, Inc., a wholly owned subsidiary of Pepco Holdings, Inc. (NYSE: POM), provides residential, commercial, institutional, government and industrial customers with comprehensive energy management solutions, including the supply of electricity and natural gas, energy efficiency studies, fuel management services, heating, ventilation and air conditioning systems, lighting, onsite generation, project financing, and energy operations and maintenance services. In 2003, Pepco Energy Services generated revenues of more than $1 billion from energy and energy-related services and has completed energy efficiency projects from South Carolina to New Jersey. Visit www.pepcoenergy.com for more information.

Pepco Energy Services, Inc. is not the same company as Potomac Electric Power Company, and prices and services of Pepco Energy Services, Inc. are not set by the Public Service Commission.

Information contained in this news release may include forward-looking statements which should be considered in light of the risks inherent in the business of Pepco Holdings, Inc. and its subsidiaries, as discussed in public documents filed with the Securities and Exchange Commission.