Pepco Holdings is the Leader in Carbon Disclosure and Performance

Pepco Holdings, Inc. (NYSE: POM) has been named one of the top firms in
the Carbon Disclosure Project′s annual carbon performance and disclosure
ratings for the S&P 500. The index places Pepco Holdings (PHI) first
among S&P 500 utility companies for carbon management and performance.
The rankings were announced September 12 in New York by the Carbon
Disclosure Project (CDP). The Carbon Disclosure Project (CDP) is an
independent not-for-profit organization holding the largest database of
primary corporate climate change and water information in the world.

'The results of the CDP demonstrate that PHI has made significant
strides in identifying and managing our company′s carbon footprint.
Clearly, we are achieving our carbon reduction goals and providing our
customers the tools and knowledge needed to manage their own carbon
footprint,? said Joseph M. Rigby, PHI′s Chairman, President and CEO. 'We
are proud of this recognition, and we will continue to hold ourselves
accountable for environmental sustainability moving forward.?

Beginning in 2011, Pepco Holdings sharpened the focus on its carbon
footprint. The company conducted a thorough and complete emissions
inventory using tools developed by the World Resources Institute and the
World Business Council for Sustainable Development to identify sources
of greenhouse gas emissions from its operations and to track progress in
reducing emissions over time. As a result, Pepco Holdings shaved its
total carbon emissions by 12 percent between 2010 and 2011, to about 1.8
million metric tons, while direct emissions from the company's
operations dropped 39 percent, to 402,000 metric tons.

The company also factors specific risks into its long-range planning,
such as extreme weather events that can interrupt power supply and
changes in consumer behavior affecting demand.

'At PHI, we conduct our power delivery business with care and respect
for environment. The demonstration of our environmental commitment
requires not only specific action to manage our carbon footprint but
full transparency when it comes to the environmental impact of building,
operating and maintaining our system,? said Michael Maxwell, PHI Vice
President, Asset Management.

The CDP 2012 report shows that U.S. electric utilities have greatly
reduced emissions and are providing more information to shareholders and
ratepayers about the risks associated with greenhouse gases.

PHI publishes annual reports on environmental sustainability and
corporate citizenship. In addition to its top ranking in the CDP, PHI
receives widespread recognition for its environmental stewardship and
partners with regional and local nonprofit organizations devoted to
improving and sustaining the environment. A pdf copy of Powering a
Sustainable Future is available at www.pepcoholdings.com/services/environment.

About PHI: Pepco Holdings, Inc. (NYSE: POM) is one of the
largest energy delivery companies in the Mid-Atlantic region, serving
about 2 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 also provides energy
efficiency and renewable energy services through Pepco Energy Services.

Pepco Holdings, Inc.

Media Contact:

Robert Hainey, 202-872-2680

rshainey@pepcoholdings.com

or

Investor
Contact:

Donna Kinzel, 302-429-3004

donna.kinzel@pepcoholdings.com