Pepco Energy Services converts county trash to cleaner air

WASHINGTON, Jan. 6, 2003 — Pepco Energy Services (PES), a subsidiary of Pepco Holdings Inc. and a provider of renewable electricity initiatives, in partnership with Commonwealth Green Energy, LLC and Fauquier County landfill owners, announced that it will transform the aging Warrenton, Va. landfill into a source of green energy for local residents.

For years, methane gas — the most damaging of the greenhouse gases — has been escaping into the atmosphere from the rural landfill.

Landfill employee Ellis “Colonel” Bingham has been campaigning to capture and convert the methane into electricity. Pepco Energy Services is working with him to eliminate pollution from the site and at the same time produce enough electricity for approximately 400 homes.

“As a retired military officer, I approached this campaign as any good officer would by showing county officials that the most rural of the Virginia counties could be a catalyst for change and innovation,” said Bingham, director of solid waste management, Fauquier County. “Through the public- private partnership with Pepco Energy Services, our county has become a leader in productive land use, providing cleaner air for its residents while saving tax payer dollars.”

Fauquier County employee Bingham spent a number of years testifying, sending letters and making phones calls as part of a crusade to work with county officials to support an effort to build a state of the art gas-to- energy project to eliminate pollution emanating from the rural county landfill.

“Landfills the size of ours are generally overlooked by developers because they think the projects are too small to be commercially viable,” added Bingham. “Now, local residents benefit because they get a system to manage harmful gas emissions at the landfill at no cost to the county, and Pepco Energy Services benefits because it can use the landfill gas to generate electricity.”

Pepco Energy Services will build and operate the 2 MW power plant fueled by landfill gases at the site. The $2 million dollar project will supply green electricity to PES customers. This project showcases a new financial approach developed by PES that requires no investment or other incentives from either the county or state level. PES created this new model specifically for smaller landfills that, unlike their larger counterparts, have limited to no access to government subsidies to implement “green” projects.

Pending final regulatory approvals, construction of the plant will begin in the first quarter of 2003 and be completed in the third quarter. The power plant is expected to expand to 3 MW in 10 years.

“We are pleased to be working with someone like Bingham who shares our commitment to creating a cleaner environment,” said Ed Mayberry, president and chief executive officer of Pepco Energy Services. “This project is one of many PES initiatives to increase the volumes of alternative clean energy available for residential, commercial and government customers.”

“We already generate some green electricity from solar cells, and we buy credits for green energy from wind farms and other projects,” added Mayberry. “Now we will take the first of many steps into developing our own sources of nonpolluting alternative energy. It is what our customers want, and we are determined to provide it to them.”

About Pepco Energy Services

Pepco Energy Services, Inc., a wholly owned subsidiary of Pepco Holdings, Inc., (NYSE: POM – News), provides residential, commercial, institutional, government and industrial customers comprehensive energy management solutions including the supply of electricity and natural gas; energy efficiency studies; fuel management services; heating, ventilation and air conditioning systems; lighting; onsite generation; project financing; and energy operations and maintenance services.

In 2001, Pepco Energy Services generated revenues of more than $600 million from energy and energy-related services and has completed energy efficiency projects from North Carolina to Massachusetts. Visit for more information.

Pepco Energy Services, Inc., is not the same company as Potomac Electric Power Company and prices and services of Pepco Energy Services, Inc., is not set by the Public Service Commission.

About Commonwealth Green Energy, LLC

Commonwealth Green Energy is a Virginia company that is focused on the development of small power projects from renewable energy sources.

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