Pepco Energy Expands to Texas with New Dallas-Fort Worth Office

Pepco Energy Services, Inc. (Pepco Energy), a subsidiary of Pepco Holdings, Inc. (NYSE: POM) and a leader in energy savings performance contracting, is expanding into Texas and has established the Dallas-Fort Worth area as its Texas headquarters. The office is located at 1200 Walnut Hill Lane, Suite #1300, in Irving, Texas.

In the past 15 years, Pepco Energy has implemented more than 450 energy services projects worth over $850 million with a proven track record of meeting or exceeding its energy savings guarantee commitments.

"We recognize that Texas is, and will continue to be, a growth market for energy services,” said David Weiss, Chief Operating Officer at Pepco Energy. "This made it imperative for Pepco Energy to build the Texas team from professionals who already have a solid performance track record working throughout the state.”

From this location, Pepco Energy will serve its prospective client base consisting of federal, state, municipal and local government agencies, as well as commercial and industrial customers. Pepco Energy will provide a wide range of renewable energy, combined heat and power, operation and maintenance services, performance contracting and energy efficiency services.

The Texas office will be headed by Doug Kirkley, General Manager-State of Texas and Senior Business Development Manager, and David Temming, Senior Project Development Engineer and Professional Engineer.

"There is a very small group of professionals in the industry with the amount of experience and expertise that both Doug Kirkley and David Temming have in energy services,” said Monjed Barakat, Pepco Energy’s Vice President of Engineering. "We are extremely proud to have these two professionals leading our Texas team.”

Kirkley has more than 20 years in the energy services market and has developed more than 30 major performance contracting projects. Temming also has more than 20 years of experience in energy conservation, the last 10 of which were based in Texas. He has developed and managed projects throughout Texas for universities, hospitals, various corporations, school districts and state and municipal buildings.

"What makes Pepco Energy unique is its vision, commitment to clients and the marketplace, transparency, brand neutrality and the ability to reduce up-front risk for clients, all while developing projects that consistently perform for the term of the contract and beyond,” said Kirkley.

"We aren’t restricted to creating solutions that are limited by the products offered by a parent or sister company,” Temming added. "While the outcome of our services is often the same for our diverse range of clients, the solutions have to be specific to the unique needs of each client. If Pepco Energy used a one-size-fits-all approach, we wouldn’t have such an outstanding track record of helping our clients reduce their energy costs through efficiency and optimization.”

Kirkley and Temming join the rest of Pepco Energy’s staff based in Austin and Arlington. Pepco Energy plans to hire more energy professionals throughout 2011 and 2012.

If you are interested in learning more about energy performance contracting and renewable energy projects, please contact Pepco Energy at 972-471-1202 (Dallas-Fort Worth, TX office), or 703-253-1800 (Arlington, VA corporate headquarters), or visit our Web site at www.pepcoenergy.com.

About Pepco Energy Services, Inc.

Pepco Energy Services, Inc. (Pepco Energy), a wholly owned subsidiary of Pepco Holdings, Inc. (NYSE: POM), provides commercial, institutional, government and industrial customers with competitive energy efficiency services, including renewable energy and combined heat and power. Visit www.pepcoenergy.com for more information.

Pepco Energy is not the same company as Potomac Electric Power Company (Pepco), the regulated utility; the prices and services of Pepco Energy are not set by the Public Service Commission; and you are not required to buy energy or other products and services from Pepco Energy in order to receive the same quality service from Pepco.

Information contained in this news release may include forward-looking statements, which should be considered in light of the risks inherent in the business of Pepco Holdings, Inc. and its subsidiaries, as discussed in public documents filed with the Securities and Exchange Commission.