Pepco Energy Opens 5 MW Bethlehem, PA Landfill Gas Project

Date: November 21, 2008

Source: Pepco Energy Services, Inc.

Pepco Energy Services Generates 5 MW of Electricity at Bethlehem Landfill

State and local representatives joined the management of the IESI Bethlehem Landfill and Pepco Energy Services representatives in Bethlehem today for the grand opening of a new 5 megawatt landfill gas powered energy plant. The 8,800 square foot plant houses a combustion turbine that will ultimately produce enough electricity to power 1,900 homes. The plant is owned and operated by Pepco Energy Services subsidiary Bethlehem Renewable Energy, LLC and is fueled by methane generated by landfill decomposition.

District Manager of IESI Bethlehem, Sam Donato, spoke at the 11:00 am ceremony, saying, "In 2004, we began researching technologies to put this renewable resource [landfill gas] to work. The Bethlehem Renewable Energy Project does more than provide a valuable commodity to our community, it also benefits the environment by reducing greenhouse gas emissions and coal consumption [from traditional electric plants]."

According to David Weiss, President and Chief Operating Officer of the Energy Services Division of Pepco Energy Services, the nominal 5 megawatt landfill gas-powered energy plant eliminates the need for 140 railcars of coal per year, and up to 73 tons of carbon dioxide emissions from burning this amount of coal in a conventional power plant.

About Pepco Energy Services

Pepco Energy Services, Inc. is a wholly owned subsidiary of Pepco Holdings, Inc. POM and a leader in providing commercial, institutional, government and industrial customers with competitive electricity and natural gas supply and energy efficiency services. 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.

See also: www.wasteinfo.com/news/wbj20061211N.htm.

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