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Delmarva Power Files Independent Analysis of Bluewater Project

Friday, November 09, 2007

Evaluation Finds Substantial Cost Impact to Customers

NEWARK , DE – Delmarva Power today filed with the Delaware Public Service Commission a detailed independent analysis of the 450-megawatt wind farm proposed for construction off Delaware’s coast. The analysis was conducted by Pace Global Energy Services, LLC (www.paceglobal.com).

Pace Global recently performed the extensive analysis on behalf of the Long Island Power Authority (LIPA) concerning a proposed offshore wind project off the Long Island coast. The proposed Long Island offshore project was canceled due to its excessive cost.

“We asked Pace Global to evaluate this project for two reasons. They have strong, global expertise on wind farm projects and because this project will have a significant impact on our customers for the next 25 years,” said Gary Stockbridge, president, Delmarva Power. “When you’re asking to spend more than $20 billion of our customers’ money on one project, we believe it merits a second opinion.”

The Pace Global analysis of the proposed Bluewater Wind project concluded that, without escalators, the wind farm would cost Delmarva’s Delaware customers about $22 more a month.

“The $22 per month impact to our customers is far too expensive,” Stockbridge said. “The analysis also continued to show alternatives exist at far better prices, and these should be evaluated in an open and competitive bidding process where all green resources compete for our customers business.”

Stockbridge said the Pace Global analysis was conducted in a way that minimized any outside influence on the consultant group’s report. “They had no interaction with our existing consultant, all data used was publicly available, and interaction with the company was limited to clarifying questions,” he said.

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To access the full Pace Global Report, visit the “Delmarva Wind Issue” section on Delmarva Power's Web site, www.delmarva.com.

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 121,000 natural gas delivery customers in northern Delaware .