Presentation on the Presentation on the Smart Grid to the Smart Grid to the Energy Bar AssociationEnergy Bar Association

Joe RigbyJoe RigbyChairman, President and CEOChairman, President and CEO

Dec. 3, 2009Dec. 3, 2009

Today’s GoalsToday’s Goals

Provide good understanding of the Smart GridProvide good understanding of the Smart Grid

Share perspectives on Pepco Holding’s Smart Grid Share perspectives on Pepco Holding’s Smart Grid progressprogress

Reinforce the importance of customer participation in Reinforce the importance of customer participation in this transformationthis transformation

The Smart Grid Defined

The convergence of electric system The convergence of electric system technology and information technology and information technology.technology.

Electricity meets Information

Smart Meters are the Building Blocks

Flow information two waysFlow information two ways

Serve as a grid sensorServe as a grid sensor

Are read “over the air”Are read “over the air”

Can transmit hourly data Can transmit hourly data multiple times a day or on multiple times a day or on demanddemand

The Smart Grid

TransmissionSubstation

Communications Infrastructure

AMI (‘Smart Meters’) & Demand Side

Management

Transmission Automation

Distribution Automation

Substation AutomationFeeder AutomationHome Intelligence

Our Blueprint for the Future

Advanced metering Advanced metering infrastructureinfrastructure

Communications Communications systemsystem

Distribution automationDistribution automation

AMI-enabled demand AMI-enabled demand side management side management programsprograms

Decoupled and Decoupled and dynamic ratesdynamic rates

Smart Meter Deployment in Delaware is Under Way

300,000 electric smart 300,000 electric smart meters and 130,000 meters and 130,000 natural gas modulesnatural gas modules

Complete Delaware Complete Delaware installation by year-end installation by year-end 20102010

Federal stimulus funds for AMI in the Pepco service Federal stimulus funds for AMI in the Pepco service area will bring total meter installations to more than area will bring total meter installations to more than 1.2 million 1.2 million

Federal stimulus funds for AMI in the Pepco service Federal stimulus funds for AMI in the Pepco service area will bring total meter installations to more than area will bring total meter installations to more than 1.2 million 1.2 million

Customer Participation is Critical to Realize Benefits

Lower energy consumptionLower energy consumption

More control over energy costsMore control over energy costs

Reduced carbon outputReduced carbon output

Utility is Evolving into Energy Adviser

Historically, customer Historically, customer relationship has been relationship has been transparenttransparent

Going forward, Going forward, relationship will relationship will evolveevolve

Utility will advise Utility will advise customers on customers on managing energy use managing energy use and costsand costs

The Smart Grid Will Bring Opportunities

Customer-owned renewable Customer-owned renewable generationgeneration

Electrified transportation Electrified transportation infrastructure for plug-in vehiclesinfrastructure for plug-in vehicles

New jobs, products and servicesNew jobs, products and services

The Time for the Smart Grid Has Arrived

Smart Grid is a cornerstone of Smart Grid is a cornerstone of the Obama Administration’s the Obama Administration’s energy policyenergy policy

State and local governments State and local governments are setting aggressive energy are setting aggressive energy reduction goalsreduction goals

Pepco Holdings is pleased to Pepco Holdings is pleased to be part of this transformationbe part of this transformation