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Maryland Utilities Issue Request for Proposals for the Supply of Wholesale Electric Power

Monday, September 15, 2008

Baltimore – September 15 , 2008 – The Potomac Edison Company d/b/a Allegheny Power (AP), Baltimore Gas and Electric Company (BGE), Delmarva Power & Light Company (Delmarva), and Potomac Electric Power Company (Pepco) have issued Requests for Proposals (RFPs) for full-requirements, wholesale electric power supply to meet their Standard Offer Service (SOS) obligations in their Maryland service territories.

Each utility will provide market-based supply service to some or all of its electric customers who do not take service from competitive retail suppliers. The RFPs will consist of supply contracts ranging in term from quarterly to twenty-nine months. For BGE, Delmarva, and Pepco, the bidding for Residential contracts will occur in two procurements – October 2008 and April 2009, and the contract term will be twenty-four months. For AP, the bidding for Residential contracts will occur in four procurements – October 2008, January, April, and June 2009, and the contract term will range from five to twenty-nine months. The bidding for small commercial Type I contracts will occur in two procurements – October 2008 and April 2009, and the contract term will be 24 months. For BGE, Delmarva, and Pepco, t he October 2008 procurement will be for supply services to begin June 1, 2009, and the April 2009 procurement will be for supply services to begin October 1, 2009. AP will not be procuring for Type I during this procurement cycle. The bidding for larger commercial Type II contracts will be for three-month term contracts and will occur quarterly. The first quarterly procurement in October 2008 will be for Type II supply services to begin December 1, 2008. Further details regarding the procurement schedule, including the bid due dates for this multi-procurement process can be found in the RFP documents The four utilities will concurrently conduct their bidding processes under uniform rules and timetables. The utilities are requesting proposals totaling approximately 5,009 megawatts (MW), including:

· 918 MW for AP

· 2,566 MW for BGE

· 353 MW for Delmarva

· 1,172 MW for Pepco

A joint-utility pre-bid conference will be held on September 24, 2008, at the Hyatt Regency Hotel in downtown Baltimore. The conference will review the general RFP structure and process, the specific utility bid plans, and the power supply contract.

Additional details regarding the RFPs, the pre-bid conference and utility contact information can be found by visiting any of the following utility RFP websites:

AP www.alleghenypower.com/rfp

BGE  rfp.bge.com

Delmarva www.delmarva.com/mdrfp

Pepco www.pepco.com/mdrfp

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