One-Time Credit Helped Keep Costs Down During Summer Months

MAYS LANDING, N.J. - After a temporary reduction this summer, Atlantic City Electric's residential customers will see an adjustment in rates on their October bills. The adjustment reflects higher market costs for the electricity the company buys on behalf of its customers, along with the elimination of a temporary one-time credit which helped to keep down costs during the hot summer months when demand for power, and electric rates, were higher.

This adjustment coincides with the onset of winter rates, which are generally lower than summer rates. This timing should help to mitigate the impact on customers' bills because the adjustment is occurring during the shoulder season when usage and overall bills tend to be lower.

Excluding the one-time temporary reduction which expired on September 30, 2008, the monthly bill for a residential customer using 1000 kWh per month will go to $163.26 on an average annual basis, up from $159.11 based on rates in place in May 2008. The actual impact on an individual customer's bill will vary depending upon usage. Atlantic City Electric makes no profit on these charges. They are a straight pass through to customers.

This adjustment is the result of a periodic reconciliation that enables Atlantic City Electric to recover the difference between the amount it has paid to suppliers of Basic Generation Service (BGS) and the amount it has received from customers in the preceding months. A similar adjustment occurred June 1, but included a one-time accounting adjustment for an over collection that occurred between June of 2005 and March of 2008, which allowed for the reduction during the summer.

The adjustments in October also include a slight increase in rates designed to recover costs associated with the Universal Service Fund and Lifeline programs, two state-administered programs that assist low-income customers in paying their energy costs.

Atlantic City Electric recognizes the impact that higher energy costs can have on a household budget and encourages customers to visit our Web site, www.atlanticcityelectric.com for tips on how to save energy and money. The company offers a free interactive tool called "My Account," which can help customers understand their usage and help them save on their energy costs.

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Atlantic City Electric, a public utility owned by Pepco Holdings, Inc. (NYSE: POM), provides safe, reliable and affordable regulated electric delivery services to more than 545,000 customers in southern New Jersey.