EMS User Group Conference – 2008 PHI EMS MIGRATION TO COMMON PLATFORM PROJECT

1. EMS User Group Conference – 2008PHI EMS MIGRATION TO COMMON PLATFORM PROJECT Manley Higgins Project Manager System Operations Pepco Holdings Inc. September 8, 2008

2. Project Goals • Implement state of the art technology EMS for all of PHI operating regions • Maintain reliability of the PHI power system and meet current and future regulatory requirements • Minimize System Customs and procure a baseline system to make it easier to support

3. Project Justification • NERC CIP Compliance for Pepco by December 2009 • Existing Pepco system was older vintage EMS and would have been difficult and expensive to make compliant • Common EMS platform at Pepco, Atlantic City Electric and Delmarva Power will better support PHI Blueprint for the Future initiatives • Provide the opportunity to leverage PHI’s collective EMS knowledge and experience across the company, and allow improved decision making. • Improved allocation of support and training resources across all regions of PHI • Need to upgrade or replace Pepco’s EMS to provide long term maintenance and reliability • Existing system was highly customized and expensive to maintain due to it’s age

4. Project Core Team Established a cross regional team representative of all of PHI PEPCOACE/DPLKEMA Manley Higgins Linda Stevens Mark Bruen Brian Chabot Phil Vavala Joe Moran Bob Krug Ken West Bill Disney Donna Hare Chris Koch Ray Cichocki George Menefee Diane Burns Pam King Monte Bellon Sunil Pancholi - Liaison to Business Transformation Team Karen Lefkowitz – Executive Sponsor Michael O’Grady and Vic Davis – Sponsors and Support Managers

5. Project Began Early Spring 2007 • PHI Team formed • Solicited bids from two vendors • Decided to request bids from incumbent vendors only • Technical, Business and Commercial evaluations performed • Site visits conducted by PHI Team • Team Performed Qualitative Risk Analysis of all offerings • Vendor Selected in December 2007

6. Process • Statement of Work completed December 2007 • Purchase Order issued February 2008 • Project Implementation Work began immediately • Contract consisted of two purchase orders due to Pepco lease constraints

7. Overall Project Plan • Phased Project Approach • Phase 1 for Pepco • Phase 2 for ACE/DPL • Common Software Platform for both System • Common System Design and Requirements • Ensures that both systems have the same version software and hardware • Utilize PHI Expertise with the incumbant system during the design and implementation process

8. Major System Capability • The EMS • Consists of redundant systems • The BCS • Includes redundant systems • QAS • NERC requirement for separate system for test board • PDS • DTS

9. System Functionality • Basic EMS capability including SCADA, power applications, DTS, and custom applications such as DVD & RLVBC • Interface with PHI’s ISO (i.e. PJM) • Interface with the OMS • Support future DA programs

10. Key Schedule Dates Start Target MilestoneBaselineCurrent Wk Pepco PDS Delivery March 6, 2008 June 26, 2008 FAT Feb 20, 2009 Feb 20, 2009 SAT Jul 01, 2009 Jul 01, 2009 Cutover Dec 16, 2009 Jan 22, 2010 ACE/DPL PDS Delivery Jul 14, 2008 Oct 15, 2008 FAT Feb 09, 2010 Feb 09, 2010 SAT Jun 18, 2010 Jun 18, 2010 Cutover Dec 16, 2010 Dec 16, 2010

11. EMS Implementation Project Status • The PDS hardware for Pepco’s EMS was received the week of May 28th. The software was installed on the system prior to shipment. • Vendor resolved performance issues with the PDS affecting the PHI Database, Display, and Standards work. • The PDS has been installed and operational. • The initial Pepco database build has been completed and was loaded on the PDS in June. • The prototype display building effort has begun on the Pepco PDS with assistance from ACE/DPL. Vendor is assisting with display design and build. • The ACE/DPL PDS has been staged at the vendor this month and is scheduled for delivery in October.

12. PHI/Pepco Project Status – September 2008 • Hardware Staging complete for Pepco EMS, BCS, QAS and DTS. • ACE/DPL PDS is being configured and tested. • Building initial PHI Power Systems Applications database. • PHI validating converted SCADA database at site. • PHI reviewing Power Systems Custom Designs and SCADA Custom Requirements. Design review nearing completion. • On-site Database and Display training has been conducted.

13. Upcoming Activities • Complete Pepco PSA database build. • Pepco detailed database verification. • Load ACE/DPL converted database and checkout PDS. • Coding of Power Systems customs. • Implement Custom Designs. • Evaluating and selecting security configuration.

14. Project Milestones - PEPCO

15. Project Milestones – ACE/DPL

16. In-Service Dates • Pepco In-Service Date is • January 2009 • ACE/DPL In-Service Date is • January 2011

17. Challenges Remain • Database checkout and point - to - point testing to minimize schedule and maintain safety and security • Display Building • Lots of work • Operator Training on Change Management • Complete System Testing • More work to be done

18. ON-Going EMS Integration Program Initiatives • Risk Mitigation • Resource Acquisition for PHI tasks • PHI Team Building with Pepco and ACE/DPL • Integration of PHI support and operations organizations

19. One System – One Process • Complete Standards for System Displays and Symbologies for PHI EMS by December 2008 • Other Efforts from EMS Project • Investigate further integration of regional support teams • Assess operational/business processes for additional areas of commonality and potential effectiveness • Develop change management program to ensure success of common platform initiative

20. Display Standards and Conventions Effort • The effort to determine display standards and conventions (symbols, colors, layout, etc.) for all of PHI EMS’s is progressing. • The initial draft agreements that are going to be prototyped for display types, display guidelines, substation one lines and symbology has been completed. • Initial development of the prototype displays and screens is in progress. • A draft summary of the Display Symbology and Standards Workshops has been completed and is being reviewed by the team. • Finalization of the agreements and prototypes should occur after review of the results of the prototyping effort. • Resource availability and stability issues with the PDS has affected progress on the display prototyping and symbology effort.

21. Lessons Learned (so far!!) • Advanced work with Procurement Group to Ensure quick transition to contract • Never trust the EMS salesman for schedule related issues • Database Build and Conversion is never as simple as the vendor states • Be prepared to do it in house • Display Building is a Major Effort when changing vendors • Dedicated Resources are a must for both Vendor and Customer

22. Questions? Thank You