Pepco Energy Services Chosen to Implement Energy Savings Performance Contract (ESPC) at Henderson Hall Marine Corps Base in Arlington, VA

ARLINGTON, Va., April 19 /PRNewswire/ -- Pepco Energy Services, a subsidiary of Pepco Holdings, Inc. (NYSE: POM) and a leader in energy savings performance contracting, announced today that it has been chosen by the U.S. Army Military District of Washington to implement a $31 million comprehensive energy and maintenance savings performance contracting project for the Henderson Hall Marine Corps Base, adjacent to Fort Myer in Arlington, Virginia.

Encompassing 22 acres of land on the southern border of Arlington National Cemetery, Henderson Hall has served as the headquarters for various Marine Corps units since World War II and currently provides barracks and support for Marines assigned to Headquarters U.S. Marine Corps, as well as schools and agencies within the Washington, D.C. metropolitan area.

The 15-year performance contract calls for Pepco Energy Services to invest over $7 million in capital improvements that will be paid back from the energy and maintenance savings generated by the investment in infrastructure and efficiency improvements.  

"All of us within the Directorate of Public Works at Joint Base Myer-Henderson Hall look forward to the additional energy and water conservation measures combined with long term maintenance that Pepco Energy Services will provide now that Henderson Hall's fifteen buildings have been added to our existing Energy Performance Savings Contract," stated Ronald Kaczmarek, Director of the Directorate of Public Works at Joint Base Myer-Henderson Hall.

"Pepco Energy Services is proud to help the Military District of Washington reduce its energy and water cost by 37 percent and reduce carbon dioxide emissions by 2,500 metric tons each year," said John Huffman, President and Chief Executive Officer of Pepco Energy Services.

Under the terms of the contract, Pepco Energy Services will decentralize the steam system by installing local steam and hot water boilers in 20 buildings and will decommission the existing, inefficient central steam plant.  Pepco Energy Services will also upgrade the lighting with energy efficient lamps and ballasts, retrofit water-saving plumbing fixtures, replace existing inefficient heating and air-conditioning (HVAC) systems and install an energy management control system in each building linked to the existing control network.  These infrastructure and efficiency improvements are estimated to reduce water use by 24 percent, electricity use by 28 percent and natural gas use by 80 percent.

In addition, Pepco Energy Services will provide complete preventive maintenance service for all new and pre-existing HVAC equipment required to maintain indoor comfort, air quality and contract standards of service for the duration of the contract.  The final design, construction and commissioning phase of the project has begun and is expected to be completed by December 31, 2011.

About Pepco Energy Services

Since 1995, Pepco Energy Services has evolved to become one of the leading providers of energy saving and sustainable energy products and services.  A wholly owned subsidiary of Pepco Holdings, Inc. (NYSE: POM), Pepco Energy Services has developed, implemented and financed over $850 million of energy conservation, energy infrastructure and renewable energy projects for more than 300 government, institutional, commercial and industrial customers.  Please visit www.pepcoenergy.com 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