Pepco Energy Services Awarded Contract by U.S. General Services Administration Which Promotes Green Power Developments

U.S. Environmental Protection Agency Will Purchase Over 110 Million

Kilowatt-Hours of Renewable Energy Certificates

Sep 15, 2004, 01:00 ET from Pepco Energy Services, Inc.

    ARLINGTON, Va., Sept. 15 /PRNewswire/ -- Pepco Energy Services, a
 subsidiary of Pepco Holdings, Inc. (NYSE:   POM) and a leader in energy and
 energy-related services, announced today that it has been awarded a contract
 by the U.S. General Services Administration's Energy Center of Expertise (GSA)
 to supply renewable energy credits to the U.S. Environmental Protection Agency
 Headquarters located in Washington, D.C.
     The 37 month contract calls for Pepco Energy Services to supply over 110
 million kilowatt-hours of renewable energy certificates beginning in September
     Under GSA's contract, Pepco Energy Services will provide renewable energy
 certificates representing landfill gas resources.  The source facilities for
 these renewable energy resources are located in the mid-Atlantic region.
 Electricity produced from renewable resources reduces the amount of carbon
 dioxide (CO2), a key greenhouse gas, as well as sulfur dioxide (SO2) and
 nitrogen oxides (NOx) emitted into the atmosphere.
     "Given the special role of the U.S. Environmental Protection Agency in
 safeguarding our natural resources, Pepco Energy Services is especially
 delighted to provide the U.S. Environmental Protection Agency with renewable
 energy certificates," said Ed Mayberry, President and Chief Executive Officer
 of Pepco Energy Services, "and we hope many more government agencies will
 follow in their footsteps."
     Other government agencies that have purchased green energy from Pepco
 Energy Services include the U.S. Department of Agriculture, the Department of
 Labor, the Department of Transportation, the Department of Energy and the
 Department of the Interior.
     About Pepco Energy Services
     Pepco Energy Services, Inc., a wholly owned subsidiary of Pepco Holdings,
 Inc. (NYSE:   POM), provides residential, commercial, institutional, government
 and industrial customers with comprehensive energy management solutions,
 including the supply of electricity and natural gas, energy efficiency
 studies, fuel management services, heating, ventilation and air conditioning
 systems, lighting, onsite generation, project financing, and energy operations
 and maintenance services.  In 2003, Pepco Energy Services generated revenues
 of more than $1 billion from energy and energy-related services and has
 completed energy efficiency projects from North Carolina to Connecticut.
 Visit for more information.
     Pepco Energy Services, Inc. is not the same company as Potomac Electric
 Power Company, and prices and services of Pepco Energy Services, Inc. are not
 set by the Public Service Commission.
     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.

SOURCE Pepco Energy Services, Inc.