Pepco Energy Awarded $11 million Energy Savings Performance Contract by the Virginia Department of Military Affairs

Published on Thursday, 05 January 2012 12:05 Written by TradersHuddle Staff

ARLINGTON, Va.-( Business Wire )-

Pepco Energy Services, a subsidiary of Pepco Holdings, Inc. (NYSE: POM) and a leader in energy savings performance contracting, has been chosen to implement a comprehensive energy savings performance contract project for the Virginia Department of Military Affairs.

The $11 million contract calls on Pepco Energy to install new direct digital controls, energy-efficient boilers and geothermal heating and cooling systems, as well as implement water conservation measures for Army National Guard Armories throughout Virginia. Pepco Energy will also provide much needed infrastructure improvements for the facilities, many of which have roofs that are leaking.

“We greatly appreciate the support of Gov. Bob McDonnell, Secretary of Public Safety Marla Graff Decker and the Virginia General Assembly in providing funds for much needed facilities improvements, and we have turned their $6.7 million investment into more than $24 million with the addition of federal matching funds,” said Maj. Gen. Daniel E. Long, Jr., the Adjutant General of Virginia. "This is an unprecedented investment to improve the infrastructure and readiness of the Virginia National Guard and to provide an environment where our Soldiers, Airmen, members of the Virginia Defense Force and civilian employees want to work and serve in every day. As we continue our efforts to make sure we provide a premier, ready, relevant, resilient and rapid responding force to meet the needs of the Commonwealth, these facilities improvements will help us do that.”

The project will impact 58 facilities, including 24 Army National Guard Armories. Over the 15-year contract term, the Virginia Department of Military Affairs will save more than $15.8 million, a total sum that includes maintenance savings.

“Pepco Energy is pleased to work with the Virginia Department of Military Affairs in improving the energy efficiency of its armories across the state,” said John Huffman, President and CEO of Pepco Energy. “This project demonstrates the National Guard’s commitment to reducing its carbon footprint and its environmental stewardship to the greater community. This award shows that Pepco Energy is dedicated to helping the U.S. military achieve its energy goals.”

The project will reduce carbon emissions for the Virginia Department of Military Affairs by approximately 720 metric tons and will reduce energy use by more than 15 percent each year.

Construction began in November and is due to be complete in December 2012.

About Pepco Energy Services, Inc.

Pepco Energy Services, Inc. (Pepco Energy), a wholly owned subsidiary of Pepco Holdings, Inc. (NYSE: POM), provides commercial, institutional, government and industrial customers with competitive energy efficiency services, including renewable energy and combined heat and power.

Pepco Energy is not the same company as Potomac Electric Power Company (Pepco), the regulated utility; the prices and services of Pepco Energy are not set by the Public Service Commission; and you are not required to buy energy or other products and services from Pepco Energy in order to receive the same quality service from Pepco.

Information contained in this news release may include forward-looking statements, which should be considered in light of the risks inherent in the business of Pepco Holdings, Inc. and its subsidiaries, as discussed in public documents filed with the Securities and Exchange Commission.

Pepco Energy Services, Inc.Scott Brown, 703-253-1836