FOR IMMEDIATE RELEASE
Contact: Bill Yingling, (302) 283-5811 (office); 866-655-2237 (pager)
bill.yingling@conectiv.com

Request in Delaware reflects changes in Transmission Service Costs

DOVER, Del. - Delmarva Power has filed a request with the Delaware Public Service Commission to adjust transmission rates to recover costs it must pay to PJM, the region's power grid operator, to provide transmission service to Delaware customers.

Under the proposal, the typical bill for a residential non-space heating customer using 750 kilowatt hours a month would increase by $1.27, or 1.9 percent, to $69.51. The impact upon customers in other rate classes would vary. Some customers, including residential space heating customers, would see a slight decline. No increase would exceed 2 percent.

"This modest increase reflects additional costs Delmarva must pay, as a member of PJM, to maintain and operate a reliable transmission system, which enables us to transport high-voltage electricity into and throughout our service territory as needed," said J. Mack Wathen, Vice President of Regulatory Affairs for Delmarva Power.

The new rates would go into effect June 3 and would be subject to approval by the commission. The adjustment would increase Delmarva revenue by $6.1 million annually, an increase of 1.1 percent.

Electric distribution rates in Delaware were generally frozen until May 2006 as part of an agreement approved in 2002 by the Delaware Public Service Commission, which allows for an orderly transition to a deregulated retail market. Delmarva is requesting this increase under a provision in the agreement applying to transmission rates.

Delmarva Power, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe, reliable and affordable regulated electric and natural gas delivery services to more than 500,000 customers in Delaware, Maryland, and Virginia.