Chairman's Message

Diversity has been an essential core value of our company for many years. We are particularly encouraged by the achievement this year of a significant milestone in this area. Pepco Holdings, Inc. (PHI)—parent company of Atlantic City Electric, Delmarva Power and Pepco—has been named to Fortune Magazine's Top 50 List of Best Companies for Minorities for 2004 and as one of DiversityInc Magazine's Top 50 Companies for Diversity. The citations for both awards singled out PHI's achievements in diversity regarding purchasing and business practices. This recognition is both gratifying and energizing; it reinforces our commitment to foster and maintain diversity at work, in our business transactions with suppliers and vendors and in our support for the communities we serve.

Our Supplier Diversity initiative continues to be a cornerstone of the procurement process. Every employee with the authority to commit corporate funds is responsible for making the Supplier Diversity program successful.

Diverse vendors and suppliers help us to achieve our customer service goals and contribute to the continued growth and development of our communities. We also recognize that in a very competitive market environment, a successful, award-winning supplier diversity program is a tremendous asset. It helps us further two of our top priorities: enhancing our performance for the benefit of all our stakeholders, while reaching ever higher in our quest to become the best corporate citizen we can be.

Dennis Wraase
Chairman of the Board, President and Chief Executive Officer, PHI