Pepco Energy Selected to Implement $27.6 Million Energy Performance Contract for Maryland Port Administration

New Energy Conservation Measures will be part of Governor’s EmPOWER Maryland initiative

ARLINGTON, Va.--()--Pepco Energy Services, Inc., a subsidiary of Pepco Holdings, Inc. (NYSE: POM) and a leader in energy savings performance contracting, has been awarded a $27.6 million comprehensive energy performance and maintenance contract by the Maryland Port Administration.

A total of 14 buildings spanning more than 570,000 square feet will be impacted by the project. These facilities include the World Trade Center in the Inner Harbor, the Maryland Cruise Passenger Building, and Maryland Port Administration facilities in the Dundalk Marine Terminal, South Locust Point Marine Terminal, and Cox Creek, all located in Baltimore, Md.

“This is a win-win program for the Maryland Port Administration, our customers, and the taxpayers of the state of Maryland,” said Ed Klingenstein, Engineering & Energy Manager at the Maryland Port Administration. “This is another example of how energy performance contracting can enable state agencies to achieve governmental goals and mandates, while maintaining and improving facility infrastructure and creating sustainable jobs without increasing agency budgets.”

The contract calls on Pepco Energy to install 22 energy conservation measures. Highlights of the project include the implementation of a Geothermal Harbor Heat Sink at the World Trade Center. This renewable technology uses the Baltimore Harbor’s water to cool the World Trade Center reducing electricity, water consumption, and chemical treatment. These benefits will help Baltimore City achieve its 2020 initiatives for the Harbor waters.

Kathy Broadwater, Deputy Executive Director of the Maryland Port Administration said, “This contract helps the State maximize energy efficiency and is a critical part of Governor O’Malley’s EmPOWER Maryland initiative. We are committed to providing our customers with superior service through innovative thinking and operations, and this project is a fine example of how we are working to achieve the mission of the Maryland Port Administration.”

Pepco Energy will install an aggregate 750 kW high-efficiency photovoltaic system on two building rooftops, which are the largest of the systems installed under the Maryland Department of Transportation solar initiatives. The electricity generated will be used to directly power these facilities during peak operational hours, producing an estimated $93,400 per year in electricity savings.

“This is exactly the kind of project Pepco Energy excels at implementing – it’s large scale, multifaceted, and renewable with operational support to allow the Maryland Port Administration to realize the full benefits of long-term energy sustainability planning,” said John Huffman, President and Chief Executive Officer of Pepco Energy. “As a result this comprehensive project will reduce the Maryland Port Administration’s energy usage by more than 30 percent.”

The project also includes measurement and verification services, along with equipment maintenance over the entire contract term. Maryland Port Administration employees and clients will benefit from this project as well through an Energy Awareness program to be initiated by Pepco Energy Services.

Over the 13.5-year contract term, the Maryland Port Administration will save more than $22 million in energy costs. The project will also result in a reduction of more than 4,100 metric tons of carbon dioxide emissions. The project will be partially financed through the Maryland Energy Administration’s Project Sunburst Grant, as well as the local utility’s Smart Energy Savers Program utility rebates.

Construction is already underway and is scheduled to be completed in November 2012.

For information on how Pepco Energy can provide similar services to your agency, 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. Visit www.pepcoenergy.com for more information.

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.

Contacts

Pepco Energy Services, Inc.
Patrick Sweeney, 703-253-1740
psweeney@pepcoenergy.com

Release Summary

Pepco Energy Services selected by Maryland Port Authority to implement $27.6 million energy saving contract utilizing 22 energy saving technologies including geothermal and solar energy components.

Contacts

Pepco Energy Services, Inc.
Patrick Sweeney, 703-253-1740
psweeney@pepcoenergy.com