Pepco Energy Services, Inc., a subsidiary of Pepco Holdings, Inc. (NYSE: POM) and a leader in energy savings performance contracting, has been selected to implement a comprehensive energy savings performance contract project for Virginia Polytechnic Institute and State University in Blacksburg, Va.

Pepco Energy will install more than $5.3 million in new energy conservation measures for five buildings on the university campus which comprise nearly 561,000 square feet academic, athletic and student dining areas. Phase One of the project will include lighting retrofits, HVAC controls upgrades, water conservation measures, variable frequency drives, kitchen ventilation upgrades, cooling tower retrofits, building envelope sealing, and steam system repairs.

"Virginia Tech is pleased to partner with Pepco Energy Services in this important first phase of what hopefully will be a multi-phase energy savings performance contracting initiative to help us achieve our climate action commitment objectives," said Mike Coleman, Associate Vice President and Chief Facilities Officer.

Following the approval of Virginia Tech's Climate Action Commitment Resolution in 2009, the accompanying Sustainability Plan established a key action item to develop a 'campus demand side and load management program' involving energy savings performance contracting,

The new and improved energy infrastructure should reduce energy consumption by more than 10 percent in the respective buildings and lower carbon dioxide emissions by approximately 4,200 metric tons. Over the 11-year performance period, Virginia Tech expects to save more than $8.4 million.

"Pepco Energy Service is pleased to have entered into a partnership with Virginia Tech as the university seeks to decrease its carbon footprint," said John Huffman, President and Chief Executive Officer of Pepco Energy. "This project highlights Virginia Tech's commitment to providing an energy-efficient environment for its students, staff, and faculty."

Construction began earlier this month and is due to be completed by February 2013.

Pepco Energy Services has recently contracted a number of similar projects for such customers as the Virginia Department of Military Affairs, Prince William County Schools, Maryland Port Administration, and Delaware Technical Community College. Pepco Energy has saved its clients more than $210 million in energy costs in the last decade alone and continues to help new customers reduce their energy usage.

For information on how Pepco Energy can provide similar services for your organization, please contact Patrick Sweeney at psweeney@pepcoenergy.com or (703) 253-1740, or visit the Pepco Energy Web site for a complete list of services.

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 projects/plants.

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.

Pepco Energy Services, Inc.
Scott Brown, 703-253-1836