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For Immediate Release


Delmarva Power Seeks to Reward Customers

Pricing Discounts Proposed for Using Less Energy During High-Demand Periods

NEWARK , Del. - Delmarva Power filed a plan with the Delaware Public Service Commission today that, if approved, would enable the utility to offer its electric customers a special pricing plan that would reward customers for reducing their energy use on hot summer days when demand and, consequently, the cost of supplying electricity is exceedingly high.

Company officials said the pricing plan would be phased-in for all of its Standard Offer Service residential and non-residential customers, beginning in 2011 and running through 2013. The Company is the default energy supplier for approximately 300,000 Delaware homes and businesses.

"Simply put, price matters. And if we can get customers to respond by offering them a financial incentive to reduce electricity use during certain times when it is most expensive to supply, we can work together to bring down the entire region's energy prices," said Gary Stockbridge, President, Delmarva Power Region.

The proposed pricing plan would be one of the benefits Delmarva Power's customers in Delaware would receive as a result of the Company's statewide installation of advanced metering infrastructure, also known as "smart" meters. The new, state-of-the-art meters provide for two-way, wireless communication between the customer and Delmarva Power, enabling the utility to provide customers more detailed information about their daily energy use.

"We know that the price of electricity varies from day-to-day and can get particularly costly on those hot summer days when everyone is running their cooling systems," Stockbridge said. "We believe special pricing plans will encourage customers to use less power at times of maximum demand, thereby reducing the peaks and cutting emissions, and, in the long run, minimizing the need for construction of expensive new power plants for which consumers pay the costs."

Some of the highlights of the special pricing plan for customers who choose to enroll include:

· Customers would be contacted by Delmarva Power the evening before the day when energy reductions would be needed.

· Customers would earn a rebate for reducing their energy use during 2 p.m. and 6 p.m. on days when electricity demand and price are high.

· Customers could earn additional savings for reducing their energy use during non-peak hours.

Stockbridge cited examples of reduced energy use as adjusting thermostats, limiting the use of lights, avoiding washing and drying clothes and running the dishwasher.

Delmarva Power's smart meter program, coupled with the proposed special pricing plan, which also is subject to Commission approval, is part of a nationwide effort to minimize electricity costs, improve energy efficiency, reduce carbon emissions, and to better manage the nation's energy resources.


Delmarva Power, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe and reliable energy to nearly 500,000 electric delivery customers in Delaware and Maryland and over 123,000 natural gas delivery customers in northern Delaware.

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