• COMPLYING WITH NERC AND REGIONAL MANDATORY RELIABILITY STANDARDS AND REQUIREMENTS

  • It is the policy of Pepco Holdings, Inc., and its affiliates (collectively, “PHI” or the “Company”) to comply fully with all applicable North American Electric Reliability Corporation (“NERC”) and regional mandatory standards and requirements in conducting the Company’s business.

    The Company is required to comply with NERC and regional mandatory standards and requirements. Moreover, compliance is a basic expectation about how we do business at PHI and linked to our Core Values of Accountability, Integrity, and Excellence and our Mission to provide reliable electric and excellent customer service. It is important to know that failure to comply with NERC and regional mandatory standards could result in significant penalties being imposed on the Company. That would harm us, our business, our reputation, and divert resources to the demands of litigation and the payment of legal fees and/or fines.

    It is the responsibility of specific employees or others working at or on behalf of the Company to review and comply with the NERC and regional mandatory standards and requirements. If you are one of these employees or others working at or on behalf of the Company, you are required to understand your responsibilities regarding those standards and requirements and what you may or may not do under those standards and requirements. Please contact your line supervision if you have any questions about your role and responsibilities.

    Employees or other persons working at or on behalf of the Company are required to self-report any potential non-compliance of the NERC and regional mandatory standards and requirements and can do so by notifying their supervisors, the Chief Compliance Officer, Manager Compliance and Investigations NERC, , or by contacting the Director, Internal Audit, Pepco Holdings, Inc., in writing at 701 Ninth Street, N.W., Room 8220, Washington, D.C. 20068 or by telephone to (202) 872-3341. If for any reason the employee does not wish to submit the complaint to the Director, Internal Audit, it may be addressed to the Chairman of the Audit Committee using the procedures set forth in Section N, "Communications with Directors," of the Company's Corporate Governance Guidelines. Alternatively, it can be telephoned to the Company's Ethics Officer Hotline at 1-888-683-0041 or 202-872-3376. For additional details please refer to the PHI Policy on Reporting Illegal or Unethical Behavior.