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Delmarva Power to Transform Vehicle Fleet to Hybrids and Alternative Fuels

Friday, May 18, 2007

Conversion over time will curb carbon emissions

NEWARK, DE.- Delmarva Power is pleased to announce plans to transform its fleet to more environmentally friendly technologies by using electric hybrids and alternatively fueled vehicles to increase use of alternative fuels and curb greenhouse gas emissions, and by converting its fueling facilities to biodiesel fuel.

“Our customers have made it very clear that they place great value on the environment and we agree. Delmarva Power is doing its part to meet the nation’s energy and environmental challenges,” said Gary Stockbridge, Regional President, Delmarva Power.

Delmarva Power plans to convert all of its truck fueling facilities to emission-reducing biodiesel fuel, which is a blend of 20 percent soybean oil and 80 percent low-sulfur diesel.

The fleet will be transformed over time as vehicles come up for replacement, initially replacing them with available hybrid and alternative-fuel vehicles, and later with even newer technology as it becomes commercially available. Delmarva Power’s parent company, Pepco Holdings, Inc. (PHI) will also participate in several pilot programs to evaluate the potential for new vehicle technologies to reduce costs, make more efficient use of off-peak power and reduce emissions. The evaluation will also consider other alternative fuels such as natural gas and E85, a blend of 85 percent ethanol and 15 percent gasoline.

Existing hybrids use both an electric motor and a standard gasoline or diesel engine. The developing technologies still in the research and development stage include all-electric vehicles that run on batteries charged by plugging into household current and by regenerative braking; plug-in hybrid electrics that are recharged overnight when power is cheaper, and fuel cell vehicles that run on hydrogen fuel.

Although the purchase price of hybrid vehicles is greater than that of conventional vehicles, Delmarva Power expects the investment in these vehicles to help reduce the environmental impact in the form of lower carbon emissions.

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Editors Note: refer to Delmarva Power's website (www.delmarva.com) for information on electrical safety, energy saving tips, bill payment options and power outage updates.

Delmarva Power, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe and reliable energy to more than 500,000 electric delivery customers in Delaware, Maryland and Virginia and over 118,000 natural gas delivery customers in northern Delaware .