WASHINGTON--(BUSINESS WIRE)--March 21, 2007--Pepco today proposed
an ambitious program for its Maryland customers that will combine
traditional energy efficiency programs with innovative technologies to
help customers manage their energy use and reduce the total cost of
"Energy efficiency is the lowest cost and the cleanest way to
address future energy needs," said Dennis Wraase, Chairman of the
Board, President and Chief Executive Officer, Pepco Holdings, Inc.,
the parent company of Pepco.
"If we can provide 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," Wraase added.
New technology will lead the way toward energy independence in
Pepco's comprehensive plan. The proposal includes Demand Side
Management efforts, such as rebates or other incentives for
residential customers to update inefficient appliances with Energy
Star replacements. Customers could also receive credits on their bills
for allowing Pepco to control, or intermittently turn off, their
central air conditioning or heat pumps when wholesale electricity
prices are high.
Business customers would receive financial incentives for using
energy efficient equipment such as improved lighting and HVAC systems,
and would be rewarded for reducing use during periods of peak demand.
Last year Pepco invested in web based, energy auditing software.
That investment is already paying off for Pepco customers who may
monitor their own energy use and learn what changes might lower their
costs. Today's filing with the Maryland Public Service Commission
outlining Pepco's comprehensive complement of energy efficiency and
demand side management programs is the next step and represents the
future in energy efficiency.
These environmental initiatives build on actions the company is
taking at the corporate-wide level. PHI currently is using biodiesel
and ethanol blends to fuel a portion of its 2,000 vehicle fleet and is
testing electric hybrid technology in Maryland, the District of
Columbia and New Jersey. PHI plans to continue to evaluate these and
other technologies to increase the number of alternative fueled
vehicles in its fleet. PHI also is joining the National Action Plan on
Energy Efficiency Coalition, a broad based group of utilities,
environmental advocacy groups, State Utility Commissions and others
working together on environmental issues.
Pepco also proposed to install "smart meters" in the first phase
of an effort designed to improve reliability and, ultimately, give
customers options for lowering usage and cost. The smart meters, which
the company proposes to install in the homes of all Maryland customers
over the next three to four years, would give Pepco the ability to
remotely identify the location of outages without customers calling
in. When combined with additional investments in technologies planned
by the company, smart meters can give customers the information and
options they need to manage their demand when electricity prices are
A recent study sponsored by PJM and mid-Atlantic public utility
commissions--including the Maryland Public Service
Commission--estimates that programs such as those advanced in Pepco's
blueprint for the future could save Pepco customers $10.6 million per
year, depending on how the programs are structured and how many
As part of the filing, Pepco recommended ways to fund the proposed
programs and offered to work with the Maryland Public Service
Commission to determine the most appropriate mechanisms to permit full
and timely recovery of the company's investments.
Pepco Regional President Thomas H. Graham said, "We want our
customers to know that we are doing everything we can to provide
reliable service and help them deal with higher energy prices. While
we are aware that Maryland's energy issues cannot be solved by any one
group, this plan can help customers save money, clean the environment,
and make us more energy independent."
The Maryland Public Service Commission will review Pepco's
proposals and will decide whether these plans will be implemented. In
the near future, Pepco plans to make similar proposals for its
District of Columbia customers.
Editors Note: refer to Pepco's website (www.pepco.com) for
information on electrical safety, energy saving tips, bill payment
options and power outage updates.
Pepco, a subsidiary of Pepco Holdings, Inc. (NYSE:POM), delivers
safe, reliable and affordable electric service to more than 745,000
customers in Maryland and the District of Columbia.
CONTACT: Pepco Holdings, Inc.
Debbi Jarvis, 202-872-2680
SOURCE: Pepco Holdings, Inc.