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For Immediate Release


Delmarva Power Files Notice of Appeal

Delmarva Power & Light Company ("Delmarva Power") today filed a notice of appeal of the May 22, 2007 decision of the Delaware Public Service Commission and certain other state agencies which directed Delmarva Power to negotiate a power purchase agreement with BlueWater Wind and to negotiate backup agreements with NRG and Conectiv Energy for gas- fired generation to be located in Sussex County, Del. As directed, Delmarva Power has been engaged in continuing negotiations with BlueWater Wind, NRG and Conectiv Energy.

Although it will continue these good faith negotiations and hopes to achieve a favorable result for its customers, Delmarva Power felt it necessary to file an appeal at this time in order to preserve its right to challenge in Court any future decision that may force its customers to pay for unneeded and costly purchased power on a long-term basis. "The intent of the legislation enacted by the General Assembly last year which resulted in these negotiations was to lower, not increase customer bills" said Kirk J. Emge, Delmarva Power's General Counsel.


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.

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