Pepco Holdings Joins IBM for Intelligent Utility Network Coalition

IBM (NYSE: IBM) announced that Pepco Holdings, Inc. (NYSE: POM) is the second member to join the Intelligent Utility Network (IUN) Coalition, a new group of utility companies working with IBM to accelerate the adoption of ’smart grid’ technologies and solutions on a global basis. Headquartered in the nation’s capital, Pepco Holdings, Inc.’s (PHI’s) Washington D.C., Maryland, New Jersey and Delmarva Peninsula service territories provide an important environment to highlight the benefits of IUN technologies -- for both consumers and the US electric grid.

The announcement, made jointly by IBM and PHI at the GridWeek 2007 conference in Washington, D.C., reinforces PHI’s commitment to implementing innovative technologies which can help customers manage their energy use and reduce the total cost of energy. PHI recently filed plans with the D.C., Maryland and Delaware Public Service Commissions to install ’smart meters’ in the first phase of an effort designed to improve reliability and customer service and enable customers to reduce the amount of energy they consume, particularly during daily peak periods. PHI intends to file a similar plan in the near future with the New Jersey Board of Public Utilities.

“We are very pleased to join this coalition. We share IBM’s vision that the Intelligent Utility Network will transform the way power is delivered, managed and used,” said Dennis Wraase, Chairman, President and CEO, Pepco Holdings, Inc. during opening remarks at GridWeek. “By providing tools for PHI’s nearly two million customers to reduce their electricity usage, we can make a measurable contribution to meeting the nation’s environmental challenges and at the same time help customers keep their electric bills affordable. Building an intelligent grid, based on open standards, is a critical foundation for achieving this vision,” Wraase added.

PHI and IBM have collaborated over the last year to explore new business models, technologies and processes which would enable automation and innovation within utility network operations. The two companies plan to create an interactive experience that will demonstrate how IUN solutions and technologies can deliver benefits to consumers, the market, and the environment.

“Accelerating the adoption of an Intelligent Utility Network requires many things: collaboration, shared innovation, and more widespread use of open-standards,” said Guido Bartels, General Manager, IBM Global Energy & Utilities Industry. “We are delighted to have PHI join us in this strategic global coalition, which is committed to applying new ways of thinking, new technologies and management strategies. We look forward to working with PHI and to sharing ideas and best practices.”

The Intelligent Utility Network Coalition is being developed by IBM to help accelerate the adoption of IUN technologies and solutions globally. This effort will include: establishing an industry community for collaboration, knowledge sharing, education and innovation; working with energy industry and standards groups, and the development and deployment of IUN strategic solutions and technologies. Utilities and related companies based in the United States, Europe and Asia-Pacific are expected to join CenterPoint Energy -- the founding member of the coalition -- and PHI over the next several months.

IBM plans to provide companies that join the coalition with access to a portal and to other collaboration tools like wikis and blogs to help them to work together at various levels from executive management down to IT developers. Similar to social networking websites, this energy collaboration platform will allow coalition members to interact in an online setting where they can share ideas and collaborate.

About PHI:

Pepco Holdings, Inc., headquartered in Washington, D.C., delivers electricity and natural gas to about 1.9 million customers in Delaware, the District of Columbia, Maryland, New Jersey and Virginia, through its subsidiaries Pepco, Delmarva Power and Atlantic City Electric. PHI also provides competitive wholesale generation services through Conectiv Energy and retail energy products and services through Pepco Energy Services.

About IBM:

For more information about IBM, please visit: www.ibm.com/energy