Dear Valued Customer:
As you may have heard, Pepco Energy Services is no longer actively marketing retail electricity and natural gas.
I am writing you to let you know of this decision. More importantly, however, I want to assure you that
Pepco Energy Services values you as a customer. We are committed to performing our contract with you
and to meeting all of our obligations.
Your business is part of a very significant business that we have with commercial, industrial,
and government customers with delivery obligations that extend well into 2014. To ensure that
you receive the electricity and natural gas for which you signed up and with the same high level
of customer support that you have come to expect from Pepco Energy Services, we have maintained
staffing for customer service, including our electric and natural gas operations and billing groups.
In addition, we are maintaining a management team that will help us provide accountability and the
continuity of service for the remainder of your contract term.
Although we believe that the competitive energy market remains a viable model, certain factors have
driven us to make the decision to begin to wind down our retail supply business. While the retail
energy supply business has been profitable, it has a relatively high need for liquidity. Because of
this, Pepco Energy Services together with its parent, Pepco Holdings, Inc. (PHI), decided to exit
the business so that PHI can focus its capital resources on growing its core utility distribution
and transmission businesses. We determined that the optimal path to exit the business is an orderly wind down.
Pepco Energy Services' remaining lines of business - energy performance contracting, renewable energy,
and combined heat and power generation - will not be affected by the wind down of the retail energy
supply business, as it does not require the same liquidity needs. In fact, we are increasing our
focus on saving customers money through energy efficiency and welcome the opportunity to discuss your needs.
Should you have any questions or concerns about your existing energy supply contract, your contract
expiration date, your options for future electricity or natural gas supply, or any matter discussed
in this letter, please do not hesitate to contact us by email at energy@pepcoenergy.com or by phone
at 1-800-363-7499, or visit our website at www.pepcoenergy.com.
You may also call me directly at
703-253-1753 or Pam Maines, Vice President at 703-253-1644. Finally, we encourage you to maintain
the professional relationship you have with your existing Pepco Energy Services' sales representative
as they transition to a new energy retailer and you evaluate your future energy requirements upon
expiration of your current contract with Pepco Energy Services.
Very truly yours,
John U. Huffman, President and CEO
