Pepco 8K Regulation FD Disclosure | SEC 2 May 08

American Gas Association

Financial Forum

May 4 -6, 2008

B U I L D I N G V A L U E

Safe Harbor Statement	2
Company Overview	3
Power Delivery	4
Regulatory	12
Conectiv Energy	17
Pepco Energy Services	24
Financial Overview	28
Summary	35
Appendix - Power Delivery & Regulatory	37
Appendix - Conectiv Energy	44
Appendix - Financial	49

Topic

Beginning Page

Table of Contents

Some of the statements contained in today’s presentation are forward-looking statements within the meaning of Section 21E of
the Securities Exchange Act of 1934 and are subject to the safe harbor created by the Private Securities Litigation Reform Act of
1995. These statements include all financial projections and any declarations regarding management’s intents, beliefs or current
expectations. In some cases, you can identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,”
“plans,” “anticipates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of such terms or other comparable
terminology. Any forward-looking statements are not guarantees of future performance, and actual results could differ materially
from those indicated by the forward-looking statements. Forward-looking statements involve estimates, assumptions, known and
unknown risks, uncertainties and other factors that may cause actual results, levels of activity, performance or achievements to be
materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-
looking statements. Each forward-looking statement speaks only as of the date of the particular statement, and we undertake no
obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or
otherwise. A number of factors could cause actual results or outcomes to differ materially from those indicated by the forward-
looking statements contained in this presentation. These factors include, but are not limited to, prevailing governmental policies
and regulatory actions affecting the energy industry, including with respect to allowed rates of return, industry and rate structure,
acquisition and disposal of assets and facilities, operation and construction of plant facilities, recovery of purchased power
expenses, and present or prospective wholesale and retail competition; changes in and compliance with environmental and safety
laws and policies; weather conditions; population growth rates and demographic patterns; competition for retail and wholesale
customers; general economic conditions, including potential negative impacts resulting from an economic downturn; growth in
demand, sales and capacity to fulfill demand; changes in tax rates or policies or in rates of inflation; rules and changes in
accounting standards or practices; changes in project costs; unanticipated changes in operating expenses and capital
expenditures; the ability to obtain funding in the capital markets on favorable terms; restrictions imposed by Federal and/or state
regulatory commissions, PJM and other regional transmission organizations (NY ISO, ISO New England), the North American
Electric Reliability Council and other applicable electric reliability organizations; legal and administrative proceedings (whether civil
or criminal) and settlements that affect our business and profitability; pace of entry into new markets; volatility in market demand
and prices for energy, capacity and fuel; interest rate fluctuations and credit market concerns; and effects of geopolitical events,
including the threat of domestic terrorism. Readers are referred to the most recent reports filed with the Securities and Exchange
Commission.

Safe Harbor Statement

$9.4B Revenues

$15.1B Total Assets

$5.9B Market Cap

1.8 Million Electric Customers

122,000 Gas Customers

Company Overview

Regulated

Electric

& Gas

Delivery

Business

Competitive
Energy/

Other

64% of Operating Income

Financial and customer data as of December 31, 2007. Operating Income percentage calculations are for the year ended
December 31, 2007, net of special items. See appendix for details.

36% of Operating Income

PHI Investments

Note:

Power Delivery - Business Overview

Commercial 47%

Diversified Customer Mix*

Residential 35%

Government 10%

Industrial 8%

* Based on 2007 MWh Sales; excludes Virginia operations sold on 1/2/08.

Regulatory Diversity*

District of Columbia
23%

New Jersey 20%

Delaware 18%

Maryland 39%

Combined Service Territory

2007 Power Delivery Key Metrics

Revenues $5,244.2M

Earnings $231.8M

O&M $667.0M

Capital Exp. $554.2M

Infrastructure Investment - Building Value

2008-2012 Construction Forecast

Note: See Safe Harbor Statement at the beginning of today’s presentation.

· 230 mile, 500kV line originating in northern Virginia, crossing Maryland,

traveling up the Delmarva Peninsula and into southern New Jersey

· Preliminary cost estimate - $1.05 billion; completion by 2013

· ROE authorized in FERC formula rates - 11.3%

Status of the MAPP Project

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Mid-Atlantic Power Pathway (MAPP) Project

· PJM Board approved the
500kV portion of the project
on 10/17/07

· PJM evaluating the 230kV
upgrades for local reliability

· PHI continues to evaluate the
installation of a Direct Current
system under the Chesapeake
Bay

MAPP - - Update

• Project Management team has been selected and is
working/communicating with key government and community
stakeholders.

• PHI is sponsoring community information meetings along each major
segment.

§ Community meetings have been held in Southern Maryland with positive
results; letters of support sent to MD governor and legislature leaders.

§ Focus group meetings are scheduled for Eastern Shore Maryland with
community meetings to follow soon after.

• A project Web site (www.powerpathway.com) went live in February
2008.

• Environmental studies contractors were selected in February; work
began in late March 2008.

• Transmission Engineering design contractor for Pepco line section was
selected in March 2008.

MAPP - - Preliminary Cost and Timing

(Dollars in Millions)

• Recovery of costs is determined by PJM/FERC and will be spread across PJM area.

• Excludes proposed 230kV lines being evaluated by PJM.

• Escalation of material, contract labor and right of way costs will impact estimates above.

• Excludes cost of a potential Direct Current underwater Chesapeake Bay crossing estimated at
$375 million.

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Blueprint for the Future

• Responsive to customer expectations:

“Win - - Win - Win”

– Managing energy costs

– Improving customer service

– Enhancing reliability

– Protecting the environment

• Includes significant investment:

– Advanced metering infrastructure (AMI)

– Demand side management applications

• Programs will provide the tools customers need to move into the future:

Energy Efficiency Demand Response Renewable Energy

Energy Audits Smart Thermostat Net Energy Metering

HVAC Efficiency Innovative Rate Structures Photovoltaic Installations

Efficient Lighting PJM DR Market Portal

Building Commissioning

Custom Rebates

• Filed in DE, MD, DC and NJ in 2007

• Multi-year effort across PHI service territory

• Regulatory support is essential

Blueprint for the Future -
Estimated Capital Cost and Timing

Note: See Safe Harbor Statement at the beginning of today’s presentation.

(Dollars in Millions)

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Utility Operational Value

• 2008 Power Delivery O&M estimated at $691M

(3.6% increase over 2007 level)

• New run rate reflects:

– most recent operating experience

– initiation of Blueprint for the Future projects

– continued regulatory/ rate case costs

– heavy focus on workforce regeneration and training (will have

approximately 200 new craft workers on board by end of 2008)

– escalation of labor and material costs

• Power Delivery O&M also includes various pass throughs and
deferrable/ recoverable costs that range between $70-80M per year

Goal - - Maintain year over year O&M growth at less than inflation rate

Regulatory Highlights

Company	Jurisdiction	Authorized ROE	Rate Increase ($MM)	Depreciation Reduction ($MM)
Delmarva Power - Gas	DE	10.25%	$9.0	$2.1
Delmarva Power - Electric	MD	10.00%	$14.9	$0.9
Pepco	MD	10.00%	$10.6	$30.7
Pepco	DC	10.00%	$28.3	N/A
Total			$62.8	$33.7

• DC and MD Base Case Proceedings - Phase II

† MD - Service Company costs and allocations

† DC - - Decoupling

• Revenue decoupling implemented in MD, approved in concept in DC, and under
consideration in DE and NJ

• Filings submitted in DE, MD, DC, and NJ to implement PHI Blueprint

• FERC formula rates in place for transmission

† 11.3% ROE authorized for all transmission rate base

† March 2008 filing requesting 150 basis point ROE adder for $274 million of RTEP projects

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Distribution Summary as of September 2007

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Transmission Summary as of September 2007

Transmission Incentives

• In late 2007, filed for and received 50 basis point ROE adder for RTO
membership on pre-2006 transmission plant

• On March 18, 2008, filed for 150 basis point adder for eight RTEP
regional-benefit upgrades with an aggregate construction cost of $274
million in Pepco, Atlantic City Electric and Delmarva Power*

• Planning to make an incentive filing in the 2nd quarter 2008 for the Mid-
Atlantic Power Pathway (MAPP); we anticipate the filing will include:

† CWIP in rate base

† Higher ROE for large, regional-benefit upgrades

† 100% recovery of prudently incurred costs in case of project
cancellation for reasons beyond PHI’s control

Note: See Safe Harbor Statement at the beginning of today’s presentation.

* See appendix for details.

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Power Delivery Summary

• Significant investment planned over the next several years

• Solid track record of execution, including success in
permitting, siting, and building transmission

• Blueprint for the Future - responsive to customer
expectations

• Demonstrated ability to achieve reasonable regulatory
outcomes

• Provides steady long-term earnings and dividend growth

2007 Capacity (4,235 MW)

An Eastern PJM, mid-merit focused
business.

Financial

Property, Plant & Equipment-12/31/07 $1,250 M

Construction Work in Process-12/31/07 $ 106 M

2006 Earnings $ 47 M

2007 Earnings $ 73 M

Total Inter-Company Debt $ 650 M

Note: Excludes units under development.

«Committed new projects (645 MW)

Conectiv Energy Generating Facilities

Delta

Cumberland

Existing sites

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Total Conectiv Energy Gross Margin - Forecast Range

(including Merchant Generation and Load Service, and Energy Marketing)

$215

$206

$308

$265

$285

$335

$380

$435

$400

$460

$550

$259

$255

$319

* Based on 2007 actual and mid-point of 2010 range.

Gross Margin - Forecast Range

Delta Project

• 545 MW dual fuel combined cycle plant located in Peach
Bottom Township, PA. (East MAAC LDA for RPM capacity
auctions)

• 6 year tolling agreement (June 1, 2011 - May 31, 2017) with
Constellation Energy Commodities Group provides
stable/predictable earnings profile

• Projected net income of $24 - $28 million per year

• Project Cost: $470 million (including owner’s costs)

• Project Status

– Land options and major permits acquired

– Minimal transmission system upgrades (PJM Queue P04)

– Major equipment ordered/delivery confirmed to meet
commercial operation date

– Commercial operation date - June 2011

• Permits and infrastructure allow for expansion (additional 545
MW block)

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Existing Sites

Committed New Project

Cumberland Project

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Existing Sites

Committed New Project

• 100 MW dual fuel combustion turbine - flexible and
efficient GE LMS 100 technology.

• Projected net income of $4 - $7 million per year

• Existing CT site (Cumberland, NJ)

– Land available for expansion (additional 100 MW
unit)

– Natural gas at site

– Minimal transmission system upgrades (PJM Queue
P06)

– Other infrastructure and resources on site

• Project Cost: $75 million (including owner’s costs)

• Project Status

– Draft air permit and all local permits received

– Major equipment ordered

– Engineering substantially completed

– Construction expected to start in April

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Marketing Expansion into New England
and New York

Expansion into new markets consistent with Conectiv Energy's strategy

– Opportunity for additional margins in power pools that operate similarly to PJM

– Leverage existing asset management and hedging capabilities

– Low capital requirements - focused on marketing and asset management opportunities

Activities to date

– Utility default supply contracts with various New England utilities:

Year Peak Load (MWs) Annual Energy (GWhs)

2008 1,200 5,000

2009 400 1,600

2010 400 1,600

– Generation assets under management in NY ISO

– 38MW municipal solid waste plant

– 82MW natural gas combined cycle plant; 50% owned by CE (ESNE Project)

– Electric Transmission into NY

– 25MW firm transmission agreement from PJM into NYC starting in 2010.

– Renewable Energy Credits

– Investigating ways to generate and utilize Renewable Energy Credits in New England.

Gross Margin and EBITDA Forecast

Note: See Safe Harbor Statement at the beginning of today’s presentation.

	Energy, Hedges & Other	Capacity	Energy Marketing	Total Gross Margin	Hedge* Impact (as of 12/31/07)	Unhedged (Open) Gross Margin	O&M (+ 5%)	Unhedged (Open) EBITDA
2008	$280 - $315	$70 - $75	$30 - $45	$380 - $435	$105	$485-$540	($147)	$338-$393
2009	$213 - $268	$157 - $162	$30 - $45	$400 - $475	$80	$480-$555	($145)	$335-$410
2010	$222 - $292	$203 - $208	$35 - $50	$460 - $550	$25	$485-$575	($152)	$333-$423

(Dollars in millions)

* Hedges include all load and fuel hedges (e.g., forward power contracts, utility load auctions, capacity sales, fuel inventory, forward fuel contracts).

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Impact of RGGI

• RGGI is expected to have a neutral to slightly positive impact on
Conectiv Energy's margins.

– At current fuel prices, combined cycle units will not dispatch ahead of
coal until CO2 prices approach $55/ton.

– Since RGGI is regional, energy imports from non-RGGI states will tend
to keep price increases lower.

– Gas-fired combined cycles have the smallest CO2 footprint of all fossil
units; therefore, margins will increase during periods that coal and oil-
fired units (with their higher CO2 costs) are setting LMP.

– Coal margins will decrease during on-peak hours when gas units are
setting the LMP.

• Conectiv Energy is well positioned to manage the impact of RGGI
due to its largely gas fired generation portfolio, its renewable energy
contracts, and its Pennsylvania plants.

Core PJM Markets

Expansion Markets

Key Metrics 2006 2007

Earnings ($ in millions) 20.6 38.4

Year-End Load Served (MW) 3,544 4,294

MWh Delivered (in millions) 12.9 19.0

PES Retail Electric Supply Markets

Business Overview

• PES provides retail energy supply and
services to large energy users

• Primary business driver: retail electric supply

– 80% of business in Core PJM markets

• PES also provides:

– Retail natural gas supply

– Energy efficiency services

• Performance contracting

• Cogeneration, thermal energy supply

• While not part of its strategy, PES also owns

– 790 MW SWMAAC peaking generation

– Retirement in 2012

• PES replenished its backlog while
delivering a record 19 million MWh in
2007

• Deliveries have grown at a 33%
compounded annual growth rate since
2004

• PES’s contract signings have grown at a
29% compounded annual growth rate
since 2004

• Gross margins for new business held
steady at approximately $3 per MWh

• Retention rates improved to 70% in
2007, up from 61% in 2006

Contract Signings and Backlog

• 2007 gross margins consistent with
PES’s expected range of $3 per MWh

• PES manages toward a flat book and
does not engage in speculative
trading

• PES’s fundamental strategy is to serve
large energy users

• By focusing only on large customers,
PES keeps its G&A costs low

– Small commercial customers require
a significantly higher G&A to serve

• PES has built a solid and scalable
platform for growth

Margins and G&A expenses

C&I Market

Size

Active
Expansion
Markets

Core PJM
Markets

• Serving 780 MW* in New York, Illinois
and New England; up from 400 MW
prior year

• Expansion markets provide significant
growth opportunities

• Starting small and slow in Texas

• Strong competitive position

• 30%-plus competitive market share

• High retention rates

• Rate caps in rest of Pennsylvania end
starting in 2010

Switched to competition

Not yet switched; still with utility

*As of 12/31/07

Source: KEMA, PUC websites, internal estimates

Expansion Markets Provide Growth

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Financial Objectives

· Deliver Value

† Expand investment in utility infrastructure with constructive rate case
outcomes

† Continue investment in competitive energy businesses to provide
earnings growth and diversification

† Increase dividend commensurate with utility earnings growth

· Strengthen Financial Position

† Maintain an overall equity ratio in mid to high 40% range

† Continue to improve credit metrics, with the goal of achieving a
BBB+/Baa1 rating

† Maintain liquidity position in line with growing businesses

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Major 2008-2012 Earnings/Cash Drivers

• $5.7 billion construction expenditure program

• Timely regulatory recovery through new distribution
rate case filings

• Incentives related to large transmission projects

• Completion of construction projects on time

• Meeting O&M targets

• Power, fuel and capacity prices

• Environmental regulation

• Anticipate issuance of $1.2-$1.5 billion in equity/equity
like securities; first issuance targeted for 2009

Note: See Safe Harbor Statement at the beginning of today’s presentation.

* As compared to 2007

Major 2008 Earnings/Cash Drivers*

• Impact of 2007 Maryland and Delaware Rate Case decisions

• Impact of 2008 District of Columbia Rate Case decision

• New transmission rates set 6/1/07 and to be set 6/1/08

• Higher gross margins at Conectiv Energy

• Meeting O&M targets

• Dilution from 2007 Common Stock Issuance

Power Delivery - A Driver of Growth

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Total Plant in Service
Growth - 61%

Electric Distribution Plant in
Service Growth - 45%

Transmission Plant in
Service Growth - 123%

$5,705

$9,193

Dollars in Millions

Projected Net Plant

$6,164

$6,830

See appendix for calculation of net plant and details by company.

$4,138

$4,425

$4,819

$5,190

$5,544

$5,988

$274

$286

$298

$305

$311

$316

$1,293

$1,453

$1,713

$2,135

$2,614

$2,889

Actual

Construction Expenditures*

Note: See Safe Harbor Statement at the beginning of today’s presentation.

$896

$1,187

$1,275

$1,210

$1,095

Construction Expenditures -

Building Long-Term Value

$623

* Projected construction expenditures as reported in 2007 Form 10-K

2008	2009	2010	2011	2012
$600 - $700	$600 - $700	$750 - $850	$850 - $950	$950 - $1,100

Projected Net Cash From Operations

Projected Net Cash From Operations Range

Dollars in Millions

Note: See Safe Harbor Statement at the beginning of today’s presentation.

† Approximately 70% to 80% of net cash from
operations is generated by Power Delivery

† The increase in cash in 2010 - 2012 is driven
by transmission investment, rate relief, and
higher Conectiv Energy gross margins

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Financing Summary 2008 - 2012 (dollars in billions)

† Debt

Utilities $1.9

PHI (0.5)

Total $1.4

† Equity/Equity Like $1.2 - - $1.5

Financing - - 2008

† No equity currently planned (beyond the DRIP), first
issuance targeted for 2009

† Equity issuance planned for 2008 was completed in 2007

† Utility debt - net issuance of $400-$500 million planned

Net Funding Requirements

Building Value

Note: Dividend yield source - Thomson Financial.
See Safe Harbor Statement at the beginning of today’s presentation.

● Stable Earnings Base - - Derived primarily from regulated utility
business

● Earnings Growth Potential - - Driven by T&D utility infrastructure
investments, constructive regulatory outcomes and competitive
energy business growth

† Power Delivery - 10% CAGR of Net Plant (2007-2012)

– Transmission - - 17% CAGR

– Electric Distribution - 8% CAGR

† Conectiv Energy - 16% CAGR of total Gross Margin (2007-2010)

● Secure Dividend - - Power Delivery earnings growth enables steady
long-term dividend growth

† Current dividend yield as of April 28, 2008 is 4.3%

APPENDIX

The ability to complete this project rests with two key elements -
continuous communication of the need for the line and
compliance with environmental regulations

MAPP - - Key Next Steps

● PHI and PJM are reviewing different technologies for performing the
Chesapeake Bay crossing; PHI expected to have recommendation to PJM
during Q2 2008

● Certificate of Public Convenience and Necessity (CPCN) filing in Maryland
is expected by Q1 2009

● Maryland PSC coordinates all studies and approves construction of the
line in Maryland via the issuance of the CPCN

● PHI will work with the individual agencies to obtain the necessary permits
and approvals in DE and NJ; NJBPU can exercise eminent domain
authority

● File with FERC for incentives and recovery of CWIP and pre-commercial
costs during Q2 2008

MAPP - - Project -Timeline

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Permitting & Right of Way

Construction

2008

2009

2010

2011

2012

2013

Possum Pt. to
Calvert Cliffs

24 Months

48 Months

36 Months

20 Months

24 Months

36 Months

Vienna to
Indian River

Indian River
to Salem

Calvert
Cliffs to
Vienna

(Chesapeake Bay
Crossing)

54 Months

18 Months

* PJM approval.

Oct.
2007*

Meter Data Management (MDM)

• Q4 2007 RFP for AMI was released

• Q2 2008 Overall Solution and Vendor recommendation will be completed

• Q4 2008 A field acceptance test will be conducted

• 2009 Begin deployment (with concurrent deployment capability)

Advanced Metering Infrastructure (AMI)

• Q3 2007 IBM selected to assist PHI with an evaluation of potential

technology options

• Q4 2007 Technology recommendation completed

• Q2 2008 IBM’s assistance with vendor selection will be completed

• Q2 2008 A proof of concept deployment plan will be completed

• Q3 2008 Proof of concept / Field Acceptance Test will be completed

• Q4 2008 Begin implementation (with concurrent deployment capability)

Communication Infrastructure

Blueprint for the Future -
from the Project Management Office

• Q4 2007 Itron selected as the MDM Vendor

• Q4 2007 Contract negotiated and initial implementation planning completed

• Q1 2008 Phase 1 implementation underway

• Q2 2008 Overall Design will be completed

• Q3 2008 September 2008 Live Implementation - Phase 1

Infrastructure Investment Strategy -
Major Transmission Projects in PJM’s RTEP

Note: See Safe Harbor Statement at the beginning of today’s presentation.

The initial revenue requirement, which varies by year due to multiple
in-service dates, is approximately $3 million in total for the projects.

RTEP Projects covered by March 2008 FERC Filing:

March 2008, Incentive Filing - FERC

Note: See Safe Harbor Statement at the beginning of today’s presentation.

(Dollars in Millions)

Net plant is plant in service plus CWIP less depreciation reserve. Historically, net plant is in the range of 95% -
130% of rate base.

Net Plant in Service Projection

	2007	2008	2009	2010	2011	2012
	Actual	Projected	Projected	Projected	Projected	Projected
Distribution - Electric
Pepco	$2,450	$2,559	$2,722	$2,870	$3,034	$3,228
DPL	887	974	1,110	1,246	1,341	1,435
ACE	801	892	987	1,074	1,169	1,325
Total Distribution	4,138	4,425	4,819	5,190	5,544	5,988

Distribution - Gas
DPL	274	286	298	305	311	316

Transmission
Pepco	451	494	611	788	930	959
DPL	405	459	602	839	1,148	1,364
ACE	437	500	500	508	536	566
Total Transmission	1,293	1,453	1,713	2,135	2,614	2,889

Total Distribution & Transmission	$5,705	$6,164	$6,830	$7,630	$8,469	$9,193

Note: See Safe Harbor Statement at the beginning of today’s presentation.

(Dollars in Millions)

Net Plant in Service Projection (cont.)

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Strengthening PJM Market

Capacity Auction results have been favorable:

PJM Planning Year

($/MW-Day) 2007/08 2008/09 2009/10 2010/11

Eastern MAAC $198 $149 $191 $174

Southwest MAAC $189 $210 $237 $174

Balance of Pool $ 41 $112 $102 $174

DPL South $198 $149 $191 $186

Congestion continues to provide a premium for PJM East generators:

State Renewable Energy Credit requirements and prices continue to increase:

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Conectiv Energy's Renewable Portfolio
	Expected Class I REC's (GWh)	% of CE Total Output	% of MAAC State Requirements
2008	430 - 500	8.6% - 9.9%	8.4% - 9.8%
2009	570 - 660	11.1% - 12.8%	8.4% - 9.7%
2010	590 - 680	11.6% - 13.4%	6.6% - 7.6%

Expanding Renewable Portfolio

Many Eastern states have adopted
renewable portfolio standards
requiring a percentage of the
energy sold within the state to be
sourced from approved renewable
sources.

• Conectiv Energy has focused its
efforts on utilizing landfill methane
gas to generate qualifying energy
from renewable sources.

• Conectiv Energy renewable energy
supply exceeds its internal needs
for utility load auction participation.

Coal Fired Baseload Edge Moor 3 & 4 Deepwater 6	MW 260 80
Oil /Gas Fired Steam Edge Moor 5 Deepwater 1	MW 450 86
Gas Combined Cycle Hay Road Units 1-4 Hay Road Units 5-8 Bethlehem Units 1-8	MW 552 545 1,092
Peaking Units Cumberland 1 Sherman Avenue 1 Middle 1-3 Carll’s Corner 1 & 2 Cedar 1 & 2 Missouri Avenue B,C,D Mickleton 1 Christiana Edge Moor Unit 10 West Sub Delaware City Tasley 10 Crisfield 1-4 Bayview 1-6	MW 84 81 77 73 68 60 59 45 13 15 16 26 10 12
Generation Capacity Under Contract Chesapeake (exp. 4/2012) Other (exp. 12/2008) Pedricktown (exp. 6/2012) ESNE (50% owned)	MW 315 60 115 41

(as of
12/31/07)

Owned Generation

Generation Under Contract

Committed new projects

Generation Plants - Type, Location &
Rated Capacity

(1) See previous slide for listing of individual power plants; excludes contracted assets.

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Annual capacity factors and output by
fuel type (2004-2010)(1)

Note: See Safe Harbor Statement at the beginning of today’s presentation.

Dollars in Millions	2008	2009	2010	2011	2012
"Base" Amount	$ 6	$ 8	$ 13	$ 14	$ 9
Environmental - DE Multi-Pollutant (Total Cost = $79) - Other	38 3	19 2	13 -	2 2	0 0
New Projects - Cumberland (Total Cost = $75) - Delta Site (Total Cost = $470)	46 62	5 195	- 136	- 14	- -
Total	$155	$229	$161	$ 28	$ 9

Projected Capital Expenditures

Reported Operating Income Reconciled to Operating Income Excluding Special Items

For the twelve months ended December 31, 2007

(Dollars in Millions)

Reconciliation of Operating Income

Pepco 8-KRegulation FD Disclosure