Pepco Holdings Seeks to Retire D.C. Power Plants Benning Road and Buzzard Point Units to be retired by 2012
Wednesday, February 28, 2007
Pepco Holdings, Inc. (NYSE: POM) announced today that its subsidiary Potomac Power Resources (PPR) intends to retire power plant units in northeast and southwest D.C. by May 31, 2012, subject to approval of the regional electric grid operator, PJM. At PPR’s request, PJM will study the effects of the planned shutdown of the Benning Road and Buzzard Point plants and has the option to request PPR to continue to operate the units if they are needed for reliability of the grid, or can determine that the units can be retired sooner, if reliability is not impacted.
“While both plants have a long history of serving the Washington area, these units are more than 35 years old and they are nearing the end of their useful lives”, said Dennis Wraase, Chairman of the Board, President and Chief Executive Officer of Pepco Holdings. “We will work with PJM to assure that adequate capacity to serve customers’ needs will be in place prior to retiring the units.”
The Benning Road generating units are located on the Anacostia River at 34th St and Benning Road, N.E. For many years, these units have been used only a few hours a year, typically during times of highest demand for electricity. In addition to the generating units, the Benning Road facility houses a service center for Pepco maintenance crews and vehicles, and a large substation, both of which Pepco will continue to operate after the generating units are retired.
The Buzzard Point units also are dispatched only a limited number of hours annually. The site houses a major substation which Pepco will continue to operate, and is located near the Anacostia River at 1st and V St, S.W.
About PHI: Pepco Holdings, Inc., headquartered in Washington, D.C., is an energy delivery company serving about 1.8 million customers in Delaware, the District of Columbia, Maryland, New Jersey and Virginia. PHI subsidiaries Pepco, Delmarva Power and Atlantic City Electric provide regulated electricity service; Delmarva Power also provides natural gas service. PHI provides competitive wholesale generation services through Conectiv Energy and retail energy products and services through Pepco Energy Services.
Forward-Looking Statements: Except for historical statements and discussions, the statements in this news release constitute "forward-looking statements" within the meaning of federal securities law. These statements contain management's beliefs based on information currently available to management and on various assumptions concerning future events. Forward-looking statements are not a guarantee of future performance or events. They are subject to a number of uncertainties and other factors, many of which are outside the company's control. Factors that could cause actual results to differ materially from those in the forward-looking statements herein include general economic, business and financing conditions; availability and cost of capital; changes in laws, regulations or regulatory policies; weather conditions; competition; governmental actions; and other presently unknown or unforeseen factors. These uncertainties and factors could cause actual results to differ materially from such statements. PHI disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. This information is presented solely to provide additional information to further understand the results and prospects of PHI.