Energy Choice

District of Columbia

As shown on your bills, electric rates are divided into distribution, transmission, and generation services by the Potomac Electric Power Company (Pepco), the sole utility provider of such services in the District of Columbia. Distribution services cover the local electric utility Pepco’s costs to deliver electricity within the District to homes and businesses. Generation services cover the costs of producing electricity. Transmission services cover the costs of transporting electricity across states from the plants where it is produced to Pepco.

Since January 2001, Energy Choice has been available to all residential and commercial electricity customers for generation and transmission (G&T) services. Pepco remains the sole provider of distribution services. With Energy Choice, Pepco will continue to provide distribution service, make repairs to its delivery system and respond to emergencies.

For more information on electric Energy Choice, visit the District of Columbia Public Service Commission at www.dcpsc.org/Electric/Overview.asp.

Maryland

As of July 1, 2000, all retail electric customers of investor-owned electric utilities in the State of Maryland can choose their electricity supplier. This process is also called deregulation or electric restructuring. With Energy Choice, the investor-owned electric utility will continue to provide transmission and distribution service, make repairs to its delivery system, and respond to emergencies.

For more information on electric Energy Choice, visit the Maryland Public Service Commission at www.psc.state.md.us.

Pennsylvania

Energy Choice was implemented in 1996 and allows residents and businesses throughout Pennsylvania to choose the company that supplies their electricity. This is called an electric generation supplier (EGS). The local electric company electric distribution company (EDC) will continue to provide the transmission and distribution parts of electric service, and are responsible for the reliability and maintenance of electric service over its facilities.

Customers are able to shop for an electricity supplier in their service area and compare prices and services offered by the EDC with offerings from the EGC to determine who best meets their needs. Current electric costs from the EDC are printed on the bill.

For more information on electric Energy Choice, visit the Pennsylvania Public Utility Commission page at www.puc.state.pa.us/electric/electric_suppliers.aspx and PA Power Switch at www.papowerswitch.com.

Virginia

In the past, all the components of electric service — generation, transmission and distribution — were combined as one service. The generation portion — the electricity itself — is open to Energy Choice for non-residential customers. When exercising Energy Choice, non-residential customers may select competitive electricity service providers (CSP) whose generation source is not 100% renewable energy as their energy supplier. Only non-residential customers with at least a 5 MW load may choose a CSP individually. Smaller non-residential customers will need to aggregate their load to meet the minimum 5 MW threshold to maintain the ability to choose a CSP. However, be aware that if you choose to purchase energy supply for a CSP, you must give 5 years notice before you return to the distribution service from the local utility. The local electric distribution company will continue to provide the transmission and distribution parts of electric service.

For more information on electric Energy Choice, visit the Virginia State Corporation Commission at www.scc.virginia.gov/power/compsup.aspx.