Pepco Holdings, Inc. To Sign Diversity Contracting Agreement

Friday, February 06, 2009 11:55 PM

(Source: BUSINESS WIRE)Voluntary Memorandum of Understanding Sets Goal of 25% Diversity in Procurement
Pepco Holdings, Inc.

Media Contact:

Clay Anderson, 202-872-2705

canderson@pepcoholdings.com

or

Investor Contact:

Donna Kinzel, 302-429-3004

donna.kinzel@pepcoholdings.com

Joseph M. Rigby, President and Chief Operating Officer of Pepco Holdings, Inc. (NYSE:POM), will join several corporate executives and representatives from a group of Maryland jurisdictional public utility companies during a Model Memorandum of Understanding (MOU) signing ceremony today in Annapolis, Maryland. The ceremony will take place at 10 a.m. at the Miller Senate Building in the President’s Conference Center (Rooms East I and II) on 11 Bladen Street.

The MOU requires signatories to aspire to contract 25% of their total procurement with minority, women and service-disabled veterans, along with handicapped/sheltered workshops.

Rigby, who has 30 years of experience in the public utilities industry and oversees the day-to-day operations of Pepco, Delmarva Power and the Atlantic City Electric Company, will sign the document on behalf of PHI and will be joined during the ceremony by PHI Vice President of Safety & Strategic Services Hallie Reese and other representatives from the corporation which is one of the largest energy delivery companies in the Mid-Atlantic region.

“I am pleased that PHI has been a strategic partner in the development of this voluntary Memorandum of Understanding,” Rigby said. “I appreciate the opportunity to reaffirm both Pepco and Delmarva Power’s long term commitment to advancing contracting opportunities for diverse businesses by signing this important document.”

The Maryland Public Service Commission (PSC) scheduled the ceremony during the public hearing to discuss the PSC final report. The hearing is the culmination of ongoing negotiations which began last July between the Utilities and the State of Maryland in matters of supplier diversity.

The initial voluntary MOU, which was signed in 1993, essentially required that utilities develop plans and implement activities designed to provide minority and women-owned businesses with a full opportunity to compete for the utilities procurement of good and services. This later evolved to include both veteran and service- disabled businesses. The new voluntary MOU restructures the voluntary agreement to develop plans to maximize opportunities for inclusion of diverse suppliers as prime contractors and as sub- contractors. A requirement for interim reporting in August 2009 has also been included in the new Model MOU.

The final report of the Working Group consisting of 32 utilities and Commission staff was initially sent to the Commission in November as a no-consensus document. Last month, Pepco, BGE, Washington Gas and Allegheny Power agreed to a revision of the MOU and a continuation of the formal Work Group. The work of the Commission and the Utilities will continue under a Commission sanctioned Working Group of utility supplier diversity representatives and Commission staff.

Pepco Holdings, Inc. (NYSE:POM) is one of the largest energy delivery companies in the Mid-Atlantic region, serving about 1.9 million customers in Delaware, the District of Columbia, Maryland and New Jersey. PHI subsidiaries Pepco, Delmarva Power and Atlantic City Electric provide regulated electricity service; Delmarva Power also provides natural gas service. PHI provides competitive wholesale generation services through Conectiv Energy and retail energy products and services through Pepco Energy Services.

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