A partner for progress across the Mid-Atlantic

2020 RESPONSIBILITY AND IMPACT REPORT Letter from the CEO What Drives Us…Making Progress for Our Employees, Customers, Communities and Environment

“Utilities were built to do big things.” The first time I heard that quote, it resonated with me.

the CEO of a critical energy infrastructure Build a clean, sustainable and resilient company that spans Delaware, the District energy future of Columbia, Maryland and New Jersey, employs more than 4,100 individuals and Enable thriving communities, deliver touches millions of people every day, I recog- a world-class customer experience and nize the responsibility we have to tackle big provide affordable energy solutions to all our things and help make progress on these and customers and communities; and so many other challenges. Drive economic opportunity, equity and The impact of Pepco Holdings and our continued growth utilities—Atlantic City Electric, Delmarva Power and Pepco—does not start and stop Our vision is clear. And, so is how we will at the meter to a home or business. How achieve it. We commit to running our the electricity and natural gas we deliver is business with a focus on: produced, the way in which it’s transmitted and how it’s ultimately consumed has an Safety and Security impact. It impacts our environment, our employees, our customers, our communities Reliable and Excellent Service It put into perspective our mission, which is and the planet. to provide safe, affordable, reliable and sus- Strong Partnerships and Connecting tainable energy to millions of people across That is why we not only think about what Customers and Communities the communities we’re privileged to serve. we do, but how we do it. That is our respon- It also aligned with our purpose, which is to sibility. That is our opportunity. A Diverse, Equitable, Inclusive and power a cleaner and brighter future for our Innovative Culture; and customers and communities. Those are big We are foundational in our communities, things—big challenges and big opportuni- from who we work with to help make our Policy, Regulatory and Financial Progress ties. That drives me every day. system smarter, stronger and cleaner, to the opportunities we provide to our employees The team at Pepco Holdings comes to work There are a lot of big challenges to tackle. to grow their careers, to the support we each day with this focus and our vision for Climate change. Social equity and systemic give to our community partners to advance the future squarely in our sights. racism. Economic recovery, opportunity and economic growth, equity, inclusion and sustainability. Education. Public health. As innovation. We have a vision to:

2 We know that 2020 was an unprece- recommendations for what more we can This report is our first major attempt to dented year and that our customers, our do as a company to make changes—both consolidate information on the impact we community partners and many of our internally and externally. We reinforced have and progress we made across these other stakeholders are grappling with the the importance of our democratic process areas, publicly commit to our responsibility pressures and impacts from COVID-19. by helping our team members understand as a business and share our vision for the More than ever, they are counting on us their rights as voters and opportunities to future. I invite you to flip through the pages not only to deliver on essential services, make their voices heard. And, at Pepco to see what drives us and how we actively but also to be a steady source of support Holdings, we launched our African Ameri- partner to make progress on the big issues and a provider of opportunity, a true part- can Leadership Council to further advance facing us all. ner for progress. We know that, and it’s opportunities for African American leaders why we stepped up to make sure all our within our company. I hope you can see our passion come to customers stayed connected, increasing life—and I hope you’ll be inspired. our community giving and support by $1 Through it all, our teams maintained their million, and taking significant efforts to focus, kept working and made progress. keep our employees and customers safe We ended 2020 breaking several records, by having as many of our team members including for system reliability perfor- as possible work from home and providing mance, customer satisfaction, safety those that have to report to a job site with performance and spend with diverse -Dave Velazquez the necessary protective equipment and suppliers. other resources. As we look to the future, we’re going to And, as we all wrestled with the realities keep pushing to do big things. Fight climate of a global pandemic, we were faced with change. Reduce local air pollution. Preserve the realities of systemic racism and an and restore our waterways and habitats. opportunity to stand up for racial justice. Modernize our grid to make it smarter, I’m proud to say that Atlantic City Electric, stronger and cleaner and be the platform for Delmarva Power and Pepco rose to the the future. Find new and better ways to serve challenge. Together, we said Black Lives our customers. Make our communities more Matter. We engaged actively with our equitable and local economies stronger. And, colleagues at the other Exelon compa- provide our employees with an inclusive work nies as part of a newly instituted Racial environment where they can grow as individu- Equity Task Force that developed a set of als and grow together, as one.

WHAT DRIVES US | 2020 Responsibility and Impact Report 3 About This Report

This report highlights key company initiatives across all of our businesses to power a cleaner and brighter future for our customers and communities and shares our vision for the future. Unless otherwise indicated, included information is from the 2020 calendar year.

4 TABLE OF CONTENTS

Our Journey and Commitment...... 6

Our Vision and Focus...... 8

Our Business...... 10

About Atlantic City Electric...... 10

About Delmarva Power...... 11

About Pepco...... 11

Our Performance...... 12

COVID-19 Relief...... 14

Our Communities and Customers Drive Us...... 18

Partnering with Our Communities...... 20

Meeting Customer Needs and Expectations...... 24

Providing Affordable, Clean Energy for All...... 26

Our Environment Drives Us...... 28

Climate and Clean Energy...... 30

Protecting Our Natural Environment...... 34

Building a Smarter, Stronger, Cleaner Grid and Energy System...... 36

People and Progress Drive Us...... 38

Enhancing the Culture of DEI and Innovation...... 40

Developing Employees and Our Future Workforce...... 44

Growing the Local Supply Chain...... 48

Partnerships to Drive Economic Opportunity, Equity and Growth...... 50

Looking Ahead...... 52

WHAT DRIVES US | 2020 Responsibility and Impact Report 5 OUR JOURNEY AND COMMITMENT Five years as part of the Exelon family, making progress for our employees, customers, communities and environment

In 2016, Exelon Corporation and Pepco Holdings completed a merger, bringing the company into the Exelon family to create the leading Mid-Atlantic electric and gas utility companies. This merger brought meaningful economic and service benefits to Atlantic City Electric, Delmarva Power and Pepco customers and communities, including commitments in four key areas.

Five years in, these initiatives have impacted millions of individuals across our service areas, providing customers with tens-of-millions of IMPROVING RELIABILITY – We committed to fewer dollars in rate credits and arrearage forgiveness, creating opportu- and shorter power outages, and we have achieved nities for local contractors and workers, and driving investments in record-breaking performance across all three reliability, energy efficiency, renewable technology, STEM educa- utilities, placing our companies in the top quartile as tion, workforce development and training, public green spaces and compared to our peers. expanded access to affordable energy. PROVIDING DIRECT CUSTOMER BENEFITS – We provided benefits like bill credits, low-income We made a series of 729 commitments, completing 89% of these assistance programs and energy efficiency measures commitments as of the first quarter of 2021, and meeting or exceed- for customers. ing almost all commitment targets to date. Examples of the programs and benefits made possible by the merger funds include: ADVANCING CLEAN ENERGY – We have continued to advance clean energy opportunities like solar, energy In Delaware, we supported the advancement of energy efficiency storage and other distributed energy resources to by funding programs that help low-income residential customers drive innovation and help combat climate change. become more energy efficient and reduce their overall energy costs, STAYING LOCAL – We remain a local company. Our and by supporting the Delaware Energy Efficiency Investment Fund employees are your friends and neighbors and our (EEIF) to help commercial and industrial customers reduce their ener- customers. We also enhanced our strong support of gy consumption and improve environmental performance. We also local charitable organizations, education partners provided funds to Delaware Technical and Community College and and workforce programs. Delaware State University to establish workforce readiness programs, with focused curricula on energy efficiency and renewable energy.

Of course, this evolution is more than just a business decision—it In the District of Columbia, Pepco worked with Mayor Muriel directly benefits the communities we serve. As part of the merg- Bowser to launch the DC Infrastructure Academy (DCIA), giving District er agreement, Exelon designed a $460 million package of direct residents access to training and career counseling for opportunities benefits to customers and communities in Delaware, the District of in energy and other related industries. Since its inception, every Columbia, Maryland and New Jersey. participant who has successfully completed the program has received

6 Equitable

OUR Journey to Long-Term Success In addition to firm reliability commitments, the merger OUR PURPOSE provides benefits to our customers and continues and expands our role as a partner in the communities we serve. Powering a cleaner and brighter future for our customers and communities This new era will bring a new level of service excellence and economic and environmental benefits to our customers, while maintaining our leadership and partnerships in our OUR COMMITMENT local communities. Reliable We will operate our energy system safely and securely Dave Velazquez, President and CEO of Pepco Holdings We will invest in a strong and resilient foundation for continued growth and opportunity We will be a trusted, dependable partner for our customers, communities and employees an offer of employment from Pepco or a contractor partner. In 2021, in partnership with the Washington Interfaith Network (WIN), Pepco com- Equitable We will work in partnership to provide the benefits of a clean mitted to expanding the program to provide opportunities to at least 100 energy economy to all we are privileged to serve participants each year for the next several years. Pepco also continued to We will provide opportunities for our customers, communities and support programs to assist low- and limited-income residents, and overall employees to grow and prosper efforts to accelerate the District’s transition to a smarter, stronger and We will help promote change that leads to improved economic cleaner energy grid to benefit all customers. and social equity in our communities

In Maryland, both Delmarva Power and Pepco saw strong im- provements in reliability performance, with Pepco reporting the best Inclusive We will create an environment where diversity is enhanced, fostered and embraced reliability performance of any Maryland utility in 2019 and 2020 and Delmarva Power having the second-best electric reliability of any We will provide climate and clean energy solutions to meet the unique and changing needs of our customers other Maryland utility in both 2019 and 2020. Pepco partnered with Prince George’s County and provided funds to create the Clean Energy We will strengthen and expand the pipeline of talent from the communities we are privileged to serve and empower our team Program and the Energy Efficiency Grant to uplift neighborhoods that members to own and grow their careers face economic health, public safety and educational challenges. It also expanded its efforts to prepare tomorrow’s workforce in Prince George’s County and Montgomery County, including Prince George’s affordable We will efficiently and cost-effectively deliver exceptional service and value to customers County’s Summer Youth Enrichment Program, Montgomery County’s We will provide multiple channels for customers to manage their RISE Program, and the Prince George’s County Get Into Energy Math energy use and bills and Test Prep Workshop. And, in Delmarva Power’s service area, we We will responsibly plan and invest for the future supported Forum to Advance Minorities in Engineering, which expos- es and ignites students’ interests in STEM and related careers. iNNOVATIVE We will encourage employees to generate ideas that enable us to In New Jersey, we partnered with four Southern New Jersey work- better meet the needs of our customers and communities and get our work done efficiently and safely force development boards and three vocational schools to provide $6.5 million to launch a six-year program that includes the Get into Energy We will collaborate to advance forward-looking solutions to serve our customers reliably, affordably, safely and sustainably Math and Boot Camp, Women in Sustainable Employment (WISE) Path- way, Atlantic City Electric Line School and High School Energy Career We will partner with others to drive actions that advance grid modernization and climate solutions and build a resilient and Academy Development Program. sustainable future

OPERATIONAL performance 2015-2020 PROACTIVE We will be flexible and agile in meeting customer and community needs We will be solutions-oriented to resolve issues and maintain industry-leading service for our customers and communities We will move rapidly in the face of increasingly severe weather to partner with communities to address the impacts of climate change and provide continuity of service

WHAT DRIVES US | 2020 Responsibility and Impact Report 7 Our Vision AND FOCUS

At Pepco Holdings, we don’t just provide energy for our customers. We energize and empower our employees, neighbors and communities to reach their full potential and thrive.

From investing in innovative grid technologies to getting there, together. That’s why we get up and energy management solutions, to providing every day. That’s what drives us. local grants and scholarships, to supporting Achieving our vision depends on setting clear workforce training and jobs programs, to direction, identifying our responsibilities and driving equity and inclusion, to protecting impacts, adhering to our commitments and our natural resources and combating climate managing our business with care, compassion change, we are an active partner for progress in and respect for our employees, customers, com- the communities we serve. munities and environment. Inevitably, we will en- We’re committed to inspiring and uplifting the counter tough choices along the way. We will be next generation and leaving our world in a guided by our purpose and vision, stay focused better place. Our communities can and should on what we need to do day-in and day-out, and be more just, healthy, resilient and inclusive. We always conduct our work ethically, with integrity know we’re not there yet, but we’re committed and with an eye toward the future.

8 OUR VISION OUR FOCUS

Safety and CLEAN, Security SUSTAINABLE AND RESILIENT ENERGY FUTURE Reliable and Excellent Service

Strong THRIVING Partnerships COMMUNITIES, and Connecting AFFORDABLE Customers and ENERGY SOLUTIONS Communities AND WORLD- CLASS CUSTOMER EXPERIENCE A Diverse, Equitable, Inclusive and Innovative Culture ECONOMIC OPPORTUNITY, EQUITY AND Policy, CONTINUED Regulatory GROWTH and Financial Progress

WHAT DRIVES US | 2020 Responsibility and Impact Report 9 Our Business About Atlantic City Electric

Pepco Holdings is a part Founded in 1924, Atlantic City Electric serves Southern New Jersey, providing of the Exelon family electricity to about 560,000 customers. of companies, SERVING more than 10 million customers across the United States.

We’re focused on providing safe, affordable, reliable and sustainable energy to our customers in the Mid- 2020 at a glance Atlantic region through our three subsidiary businesses. 2,800 square miles of service area 720 employees REPRESENTED EMPLOYEES: Local 210: 388 Local 210-5: 28

Learn more at atlanticcityelectric.com

10 About DELMARVA POWER Founded in 1909, Delmarva Power delivers electric service to about 532,000 electric customers in Delaware and Maryland and natural gas to about 136,000 customers in Northern Delaware.

2020 at a glance 5,400 square miles of service area 1,653 employees REPRESENTED EMPLOYEES: Local 1238: 552 Local 1307: 293

Learn more at delmarva.com About Pepco Founded in 1896 as the Potomac Electric Power Company, Pepco provides energy service to approximately 894,000 customers in the District of Columbia and Prince George’s County and Montgomery County, Maryland.

2020 at a glance 640 square miles of service area 1,811 employees REPRESENTED EMPLOYEES: Local 1900: 946

Learn more at pepco.com

WHAT DRIVES US | 2020 Responsibility and Impact Report 11 OUR PERFORMANCE

Operational and Environmental and Customer Impact: Climate Impact:

1st QUARTILE Preventable, National Response Center RELIABILITY reportable oil spills 0 Best on-record performance with an interruption score of 0.68

1st QUARTILE 32.7% Greenhouse gas emission reduction CUSTOMER from 2015 baseline, exceeding goal of SATISFACTION reducing emissions 15% by 2022 Best on-record performance score of 7.98 Achieved re- certificationfor st Pepco Holdings’ ISO 1 QUARTILE Environmental Employee Safety Management System 14001 Best on-record performance with an OSHA recordable rate of 0.77 Recycling rate for industrial and 1st QUARTILE Gas 90% office waste odor response Total private Performance of 99.96% of the time and community in under 60 min solar installations connected to our grid 80K as of the end of 2020

12 OUR PERFORMANCE

Employee and Community Impact: Management Overview:

of our workforce is made up of women $457M 54% and/or people of Spent with diverse suppliers, equal color to more than 31% of total spend

Pepco Holdings’ Approximate executive leadership number of jobs team made up of supported through women and/or 60% 20K capital investments people of color Total charitable Pepco Holdings giving $6.3M Board of Directors are women and/or 71% people of color 26.4K hours volunteered Represented employees who are women and/or Community College 47% Scholarships people of color 200+ provided

WHAT DRIVES US | 2020 Responsibility and Impact Report 13 Meal Donations Nourishing our community, one plate at a time

In our jurisdictions, our utilities partnered with multiple local organizations to feed first responders and neighbors. We contributed time and resources to organizations like the Community Food Bank of New Jersey to distribute more than 500 boxes of food to nearly 300 neighbors at our Carney’s Point facility in Salem County, New Jersey. In the Pepco region, we sponsored a van for Food and Friends to deliver thousands of meals weekly to those living with life-challenging illnesses. We also worked with Catholic Charities of the Archdiocese of Washington to provide 300 Thanksgiving meals and coats to neighbors in need, while employees in the Delmarva Power region worked with various state agencies to provide over 200 holiday gifts to foster children, senior citizens, veterans and nursing home residents. And, throughout our regions, we supported our local economies by providing healthcare workers with meals from local restaurants, many of which were minority and women-owned, including Po Boy Jim, Ben’s Chili Bowl and C&C Catering in the Pepco region to deliver meals to frontline workers at Unity Health Care, Adventist Hospital System and Howard University Hospital. At Delmarva Power, we worked with Creations by Catherine to deliver meals to staff in six different units at the COVID-19 Relief Christiana Hospital and worked with My Turn To Cook to deliver meals to healthcare workers at the Tidal Health Peninsula Hospital, located in Salisbury, Md.. Last year, the arrival of the COVID-19 pandemic sparked countless economic and logistical challenges for every American. We are not only dedicated to providing From spikes in unemployment, to closed schools and daycares, to safe and reliable energy during the effects of social isolation, 2020 introduced extreme obstacles to millions of people. At Pepco Holdings, we recognized our this crisis but also to providing responsibility to deliver beyond our role as an energy provider, continued support for our local relief offering practical support to our customers and communities when they needed it the most. In addition, across our jurisdictions, Pepco organizations that play such critical Holdings participated in various efforts to guide the economic recovery from the impacts of the COVID-19 pandemic. We co-chaired roles in our communities, especially the Prince George’s Forward Task Force, served on two ReOPEN DC in their efforts to help the most Steering Committees, including one focused on Equity, Disparity Reduction and Vulnerable Populations, and participated in both vulnerable during this difficult time. Delaware’s and New Jersey’s statewide recovery efforts, as well as efforts focused on Atlantic County, N.J. Here are a few of the actions

we took in response to the public health crisis. Dave Velazquez, President and CEO of Pepco Holdings

14 PHI Cares A company-wide fundraising challenge

To channel the caring and generosity of our team, our 12 Employee The recent pandemic and Resource Groups (ERGs) launched PHI Cares as a fundraising challenge for employees, who had the opportunity to donate to five different or- civil protests across the ganizations to support their communities and neighbors impacted by the pandemic. Their gifts were matched by personal dollars from our nation have cast a stark executive leadership team, as well as the company. The challenge gen- erated more than $85,000 for organizations such as the United Way of the National Capital Area, Community Foundation of the Eastern Shore light on the inequities and the United Way of Gloucester County. that plague America. Economic Relief and The Pepco Community Emergency Assistance Scholars program not Targeted investments for local recovery only represents an

Throughout 2020, we launched large-scale community investments investment in UDC’s across all of our companies with support from the Exelon Foundation. These investments included $1 million in relief across Delaware, the District of Columbia, Maryland and New Jersey. Equity Imperative

Grants were specifically delivered to organizations focused on strategic plan, but addressing food insecurity and loss of wages as a result of the pan- demic: also the Black, Latinx,

Community Foundation of the Eastern Shore: COVID-19 Emergency Response Fund immigrant, and low-

Community Foundation of South Jersey: South Jersey income students that we COVID-19 Response Fund serve. We could not ask The Restaurant Association of Metropolitan Washington

United Way of Delaware: Delaware Does More Fund for a better corporate

United Way of Gloucester County partner to lead the

United Way of the Lower Eastern Shore: LIVE UNITED way in supporting the Response Fund

United Way of the National Capital Area: Emergency Assis- District’s only public tance Fund university. In addition to supporting these local relief organizations, each of our utilities suspended service disconnections and late payment charges in advance of any state or jurisdictional mandates. Residents across service areas, who lost access to energy services before the public health emer- Rodney Trapp, Vice President, Office of Advancement, gency, were also able to safely restore their service. The company also University of the District of Columbia Foundation financed over $100 million of additional past due customer arrearages during the pandemic.

WHAT DRIVES US | 2020 Responsibility and Impact Report 15 Community and Economic Vibrancy Grants

Driving economic Supporting Small Business recovery and educational Through the Pandemic

We launched the Economic Vibrancy Grant program in partnership achievement with local economic development agencies, community foun- dations and other community partners to help local businesses As local energy companies for more than 100 years, we are part of manage through the pandemic, contribute to the local economy the communities we serve and have a vested interest in their contin- and keep their communities employed. In total, we contributed ued success and the people that live in them. When our customers nearly $1 million, which provided needed support to small business- and communities thrive, we thrive along with them. That’s why, with es across our communities in Delaware, the District of Columbia, the onset of COVID-19, Atlantic City Electric, Delmarva Power and Maryland and New Jersey, and worked with the following organiza- Pepco took action to invest in the people and businesses that drive tions to administer the program: our local communities and economies through our Community Schol- ars and Economic Vibrancy Grants programs. True Access Capital (Del.) The impact this pandemic has had on Washington Area Community Investment Fund (D.C.) our small business community has been Montgomery County Economic Development crippling, but we are thankful for the Corporation (Md.) amazing partnership with Delmarva Power Prince George’s County Economic Development and its investment in the City of Salisbury Corporation (Md.) COVID-19 Emergency Relief micro-grant City of Salisbury (Md.) program. These funds will go directly Emerge Stronger (Md.) towards the small businesses in our Casino Reinvestment Development Authority (N.J.) community that have been through an extremely tough couple of months and will better position them to succeed in our recovery. Laura Soper, Director of Business Development, City of Salisbury

16 We appreciate Pepco’s engagement in this unique partnership to help Montgomery County businesses reopen and recover from the pandemic crisis.

Benjamin H. Wu, President and CEO of the Montgomery Helping Community County Economic Development Corporation Residents Continue Their Education At times when I did not receive a grant, I have been stressed out on We recognized that many individuals who wanted to pursue higher education and vocational training were unable to do so as a result of how I can financially continue to the economic impacts of the pandemic, while others who had intend- ed to pursue educational opportunities away from home needed to attend Delaware Tech. I have had to stay close to support family and friends. To help close these gaps, we take semesters off because I was launched the Community Scholars Program in partnership with com- munity colleges in our jurisdictions. Through the Community Scholars unable to afford tuition at that Program, more than 200 students received support of up to $5,000 to pursue degrees in various disciplines, including STEM and business-re- time. Thankfully I was offered the lated fields. We partnered with the following institutions to support Delmarva Power Scholarship for this these educational opportunities: current school year 2020-2021 and it Atlantic City Electric: allowed me to be able to attend these Atlantic Cape Community College semesters. I just bought my first Rowan College of South Jersey house so without this scholarship, I most likely would not have been able Delmarva Power: Delaware Technical Community College to attend this school year.

Wor-Wic Community College Brooke, Delmarva Power Community Scholar

Pepco: The University of the District of Columbia Prince George’s Community College MORE THAN $2.5 MILLION IN TOTAL Montgomery College RELIEF DURING THE PANDEMIC

WHAT DRIVES US | 2020 Responsibility and Impact Report 17 OUR COMMUNITIES AND CUSTOMERS DRIVE US

World-class Customer We are committed to powering a cleaner and Experiences and Affordable brighter future for our customers and communities. Energy Solutions Begin at the To us, that means exceeding customer expectations and making progress on addressing the big issues. It Community Level means investing in innovative and equitable energy solutions such as smart streetlights, transportation electrification and energy efficiency to enable clean energy options that also help customers manage their energy costs, reduce local air pollution and combat climate change. It means investing to support local businesses and expanding educational opportunities to provide greater opportunity and equity for all our customers and communities. And, it means partnering to enhance the sustainability and resilience of the communities in which we live and work by preserving open spaces, creating more recreational opportunities and adapting to a changing climate.

18 community IMPACt 2020 at a glance customer IMPACt 2020 at a glance

First quartile customer satisfaction $6.3M Success in first- in Charitable Giving 78% call resolution for $1M customers in small business grants 50.9K Total streetlights converted to LED across $525K Pepco Holdings as of end of year 2020 in scholarships provided 700 3.8M nonprofit organizations MWh and $4B TOTAL LIFETIME supported saved through Empower 43K Maryland program students served 236 through Pepco Holdings community solar Educational Initiatives installations connected to the grid IN 2020

WHAT DRIVES US | 2020 Responsibility and Impact Report 19 Partnering with Our Communities for the Future

While providing safe, reliable, affordable and sustainable energy service is our focus, we are more to our community than just their local utility. We help towns and cities meet their climate change and resilience goals. We partner with local organizations to meet community needs and educate the next generation. We are an employer and economic driver. We stand up and speak out on the issues that matter to our customers, communities and employees and help them do the same. Each of our thousands of communities is unique and, by work- ing together with our community partners, we can make progress on issues both within the communities we are privileged to serve, and beyond.

20 Sustainable Communities Grants Healthy environments grow healthy communities

The Sustainable Communities Grant Program was launched in 2020 to support open space preserva- tion, improvements to parks and recreation re- sources, environmental conservation and innovative community resiliency and climate adaptation proj- ects. In the program’s inaugural year, Atlantic City Electric, Delmarva Power and Pepco provided near- ly $275,000 in grants to fund initiatives across our service areas. We partnered with the Rock Creek Conservancy, the Delaware Nature Society and Sustainable Jersey to administer the program across our jurisdictions. Twenty-nine grants were awarded Partner organizations: to local municipalities, recreational authorities and nonprofits to develop and implement local solu- Delaware Nature Society, tions to strengthen our shared environment and Hockessin, Del. build resilience in the face of a changing climate. Here are just a few examples of their innovations: Rock Creek Conservancy, Washington, D.C. Battery storage to enable resilience and enhance the benefits of solar for low- income households Sustainable Jersey, Ewing, N.J.

Trail and park improvements and preservation

Flood early warning systems Scan HERE to learn more about each of the Sustainable Communities programs Environmental education curriculum development and delivery

Intelligent weather stations Atlantic City Delmarva Pepco Conservation job opportunities Electric Power

WHAT DRIVES US | 2020 Responsibility and Impact Report 21 Know Your Power Helping young people find their voice and make change in Washington, D.C.

In partnership with the and themselves. The program asks youth to identify DC Public Library Foun- the change they want to see in the world and use dation and DC Public their creative voice to make a difference. In 2020, Library, Pepco spon- the program went virtual as a result of the pandem- sored and launched ic, with seminars and creative sessions held on-line a program to provide with musicians, illustrators, photographers and opportunities for youth writers providing youth with mentorship, guidance ages 13-19 to find their and instruction in their field. The program reached power and use it to creatively address a topic of more than 2,700 teens across the District and importance to their community, society, the world received 46 submissions. Winners included:

Writing Illustration

First Place Winner First Place Winner Lullaby, Siobhán O’Brien, Duke Ellington Untitled, India Wilson, Capital City Public School of the Arts Charter School

Photography Music

First Place Winner First Place Winner This Ain’t It, Daesha McKorley, Clarksburg What Did We Do Wrong, Ryan Nicole High School Jackson, Georgetown Visitation

Scan HERE to learn more about know your power

22 Student Climate Challenge Supporting youth in addressing the climate crisis in Southern Jersey

Atlantic City Electric, Exelon, Sustain- able Jersey and the Drumthwacket Foundation partnered to launch the New Jersey Student Climate Chal- lenge, a pilot program to highlight the role youth can play in addressing the climate crisis. The program engaged more than 500 students in a Climate Summit and initiated a Climate Contest that will provide support and recognition to teams of middle and high school students in Atlantic City Electric’s service area as they implement local projects to address the climate crisis. The program educates students about the causes and impacts of climate change and encourages them to develop solutions for their local communities.

I am thrilled that the N.J. Student Climate Challenge will build upon our state’s historic effort to incorporate climate change education across our K-12 learning standards. New Jersey’s children will lead the nation in the future green economy because of programs and partnerships like this.

Tammy Murphy, First Lady of New Jersey

WHAT DRIVES US | 2020 Responsibility and Impact Report 23 Meeting Customer Needs and Expectations

We are in the midst of a fundamental transformation of the way energy is pro- duced, delivered and consumed. We are making investments in customer solu- tions with an eye toward a smarter grid that is more capable of enabling clean energy technologies—from electrified transportation and mobility options, to next-generation smart streetlights and battery energy storage systems. We are making changes to ensure that our platform can meet the needs of all our cus- tomers today and fulfill their expectations for years to come.

EVsmart provides EV drivers with a reliable and affordable option to charge their vehicles in their own neigh- Charging Stations borhood or on their way to where they need to go. and Enabling In the District of Columbia, the Public Service Transportation Commission of the District of Columbia approved a program for Pepco to develop the make-ready Electrification infrastructure to support charging for electric taxis, rideshare vehicles, buses and other vehicles. Pepco Making it easier than ever to is also working with Washington Metro Area Transit own an electric vehicle Authority (WMATA) and the DC Circulator to support their electrification plans to convert their bus fleets to electric over time. Finally, Atlantic City Electric In 2019, the Maryland Public Service Commission recently received approval to launch a program approved a five-year electric vehicle charging infra- targeting personal passenger vehicle electrification, structure pilot program, proposing that the state’s as well as workplace and fleet charging. largest electric utilities deploy 5,000 total Level 2 and Washington fast charging stations in support of Fleet Electrification the state’s goal to support 300,000 zero-emission electric vehicles on Maryland roadways by 2025. Serving our customers with a In support of this pilot, Delmarva Power and Pepco launched the EVsmart program, with the goal of smaller carbon footprint and installing at least 350 publicly available chargers by improving local air quality 2025. These public charging stations will pro- vide our customers in Maryland with convenient Research shows that fleet electrification is a proven charging options. In 2020, the EVsmart program strategy to effectively and affordably combat unveiled two Washington fast chargers at the climate change and address historic environmental Thomas Farm Community Center in Rockville and inequities in our communities, including local air two Level 2 charging stations at the Andrew Hanko pollution. So, in addition to helping our customers building in New Carrollton. These stations join meet their current transportation electrification Level 2 stations installed in Takoma Park. Each site needs and expectations, we are doing the

24 same for our own fleet. As part of a broader Exelon initiative, we are committed to converting 30% of our passenger vehicles Smart Streetlights and compact SUVs to all-electric vehicles and converting 30% of heavy-duty trucks to plug-in hybrid vehicles by 2025, moving to What if streetlights could improve your quality 50% by 2030. By switching from conventional gasoline vehicles of life? to electric models, the initiative will eliminate more than 450,000 pounds of CO2 emissions in 2025, helping each of our utilities meet In Delaware, Delmarva Power manages more than 55,000 streetlights in their individual Climate Change Commitments and greenhouse gas its service area, but the basic purpose of a streetlight hasn’t changed in reduction goals. decades. In 2020, Delmarva Power partnered with the City of Wilmington to change that and use streetlights to make the community brighter, safer Battery Energy Storage and cleaner. Together, Delmarva Power and the City of Wilmington launched Con- Building power reliability and climate nectWilmington, an initiative to test what smart streetlights can achieve and resilience how they can serve as a foundation of a smart city. The first ConnectWilm- ington demonstration project converted 215 streetlights to LED in West Battery energy storage systems can enable a cleaner, more resilient Center City, and along stretches of North Market Street, Washington Street and more affordable energy future. They can increase substation and Baynard Boulevard. The new streetlights are more energy efficient and capacity, improve the quality of electricity service and increase the include smart sensors to deliver new community services like air quality value and availability of renewable energy systems, while providing testing, enhanced public safety and traffic monitoring. for greater resiliency. In 2020, Pepco filed with the Maryland Public Service Commission to bring In 2020, after receiving approval from the Maryland Public Service a smart streetlight program to communities throughout Montgomery and Commission, Delmarva Power and Pepco announced new battery Prince George’s Counties, Maryland. Delmarva Power will file for a similar storage projects in Silver Spring, Oxon Hill, Elk Neck and Ocean City, program in Maryland in 2021. Md. Each project will test different ownership and operational mod- els to help us learn how this technology can be used to better meet our customer and system needs. In New Jersey, Atlantic City Electric announced a new battery storage project in Beach Haven Township, N.J., which will help New Jersey meet its ambitious battery storage goals of 2,000 MW by 2030.

Pepco is pursuing battery storage at its new Mt. Vernon substation, which was approved by the Public Service Commission of the Dis- trict Columbia, and is working in partnership with District Depart- ment of Energy and Environment (DOEE) and the local community to leverage that battery to defer the need to install an additional transformer at a future time, saving customers money and advanc- ing innovative Non-Wire Alternative (NWA) solutions.

Scan here to see how smart streetlights can transform communities

WHAT DRIVES US | 2020 Responsibility and Impact Report 25 Providing Affordable, Clean Energy for All

As our customers and communities confront economic challenges as a result of the pandemic, we in- creased our community involvement and giving, while continuing to explore new products and services to help customers manage their energy bills and realize the benefits of clean energy technologies. We developed and promoted energy efficiency and management programs for our customers. We connect- ed private rooftop and community solar to the grid. And, we doubled down on our efforts to reach our most economically challenged customers, connecting them with energy assistance.

Community Solar making it more efficient, timely and transparent, as well as increasing the capacity of feeders to enable more solar for our customers at a Making solar energy work for everyone lower cost. 38 MW of total community solar capacity Energy Efficiency Programs across Pepco Holdings Giving customers the tools to control their We are committed to working harder than ever to enable equitable access to solar across all our communities. We provide customers energy usage with online resources, such as solar hosting capacity maps and tool- kits, to help them determine if solar is right for them and understand 2.7mmt GHG avoided through EmPOWER the necessary steps to go solar. We’ve connected more than 80,000 Maryland solar installations to our distribution system across all our utilities, including more than 21 MW of community solar in the District of For more than a decade, Delmarva Power and Pepco have offered Columbia in support of the Solar for All Program. award-winning residential, commercial and industrial energy effi- ciency programs through EmPOWER Maryland. The effort provides Pepco works in collaboration with the DOEE, DC Sustainable Energy approximately 20 programs targeted at residential, business and Utility, solar developers and subscriber organizations to advance the income-eligible customers and provides incentives and technical Solar For All Program, which provides access to affordable solar for assistance to upgrade lighting, weatherize homes, and purchase and income-qualified customers. We are also working to streamline the install more efficient appliances and heating/cooling systems. As a process to interconnect solar to our system in all our jurisdictions, result, the companies have been recognized six times by the EPA as

26 Expanding the Good Neighbor Energy Fund, Energy Star Partners of the Year, and have saved Maryland customers nearly $4 billion. Increasing Support and

In 2020, Atlantic City Electric announced plans to bring similar Connecting our Customers offerings to customers in New Jersey. It proposed a suite of energy to Assistance efficiency programs that will provide customers with the tools they need to take control of their energy usage and save money, including Partnering for equity and affordability no-cost energy assessments, financial incentives for energy efficien- cy upgrades and rebates on energy-efficient products. In early 2021, the Board of Public Utilities approved many of Atlantic City Electric’s In response to the pandemic, we took steps to help our most vulner- proposed programs, which are expected to support more than 6,000 able customers manage the financial impacts of COVID-19, including job-years, contribute more than $500 million to New Jersey’s Gross through the expansion of the Good Neighbor Energy Fund to support Domestic Product and support local businesses. our customers who were falling behind on their energy bills. The Good Neighbor Energy Fund provides an opportunity for all custom- ers who are financially secure and able to add $1 to their monthly bill Reduce Energy Use DC or make direct donations to partner organizations, to provide direct energy assistance to those income-eligible customers that need help Smarter, Customer Driven Solutions For with their utility bills. We then match these donations dollar-for-dol- Summer Heat lar up to $190,000. In addition to the expansion of the Good Neighbor Energy Fund, the Pepco Holdings Foundation also raised more than $240,000 and partnered with the Mary’s Center, Greater Washington In 2020, Pepco partnered Urban League and Washington Interfaith Network to distribute these with the DOEE, the DC funds in the Pepco region. Sustainable Energy Utility, the Executive Office of In Maryland and New Jersey, as part of the company’s ongoing merger the Mayor and more than 20 community organizations to launch the commitments, an additional $2.15 million in energy assistance was Reduce Energy Use DC campaign and help residents use energy more provided to our customers in Atlantic City Electric, Delmarva Power efficiently, save money and combat climate change. and Pepco through partnerships with Catholic Charities, People for People, Affordable Housing Alliance, NJ SHARES, the Salvation Army, #ReduceEnergyUseDC encourages District residents to take a pledge Harford Community Action and Cecil Heating Assistance. Finally, we and challenges them to reduce their energy use year-round, with a also conducted extensive community outreach campaigns throughout focus on the month of July—typically the hottest month of the year. the year to help customers learn more about other energy assistance Last year, 2,500 District residents signed the pledge to participate opportunities and partnered with organizations such as Capital Area and reduce their energy use at home. Each week in July, participants Food Bank, Community Food Bank of South Jersey, Prince George’s received recommendations for specific actions they could take based County Public Schools, Delaware Joining Forces and Shore Up, helping on their unique energy usage patterns. Pepco and its partners are us to reach tens-of-thousands of customers in need and securing ener- going even bigger in 2021, with a goal of 6,000 participants. gy assistance to help them pay bills.

live in DC? SCAN HERE TO TAKE THE PLEDGE!

WHAT DRIVES US | 2020 Responsibility and Impact Report 27 OUR ENVIRONMENT DRIVES US

Building a clean, resilient and Serving millions of customers across three states sustainable energy future and the District of Columbia means we have both an impact on the environment as well as an opportunity to advance and accelerate the transition to a more sustainable, more just and cleaner energy future. We are committed to doing this by taking action to protect the natural environment and critical habitats, combat climate change, advance affordable clean energy technologies and invest in our system to make it smarter, stronger and cleaner to positively impact our communities for generations to come.

28 ENVIRONMENTAL IMPACt at a glance

reduction in overall greenhouse gas 32.7% emissions since 2015 TOTAL solar installations connected 80K+ to our grid as of the end of 2020 recycling rate for industrial 90% and office waste 9 designated as National Wildlife Federation sites or SITES Wildlife Habitat Council Certified Habitats alternative-fueled vehicles in our 141 fleet as of the end of 2020

RESILIENCE ACTIONS IMPACt at a glance

14K POLES REPLACED 69 substation hardening projects 2.5K MILES distribution lines automated

8 MILES NATURAL GAS LINES REPLACED

WHAT DRIVES US | 2020 Responsibility and Impact Report 29 Climate and Clean Energy

Combating climate change requires continuous action, investment and improve- ment. We recognize the urgency to act and are committed to doing our part to further reduce our greenhouse gas footprint and help our customers and communities meet their climate change goals. As a company with significant assets and critical energy infrastructure, a major employer and a provider of clean energy services, we have a responsibility to work in partnership with a wide network of stakeholders to identify the policies, technologies and practic- es to successfully meet the climate challenge in a way that is environmentally effective, economically sustainable and fair to all customers. In fact, those com- munities and customers expected to be the most impacted by climate change also tend to be the least able to make the transition, build resilience and benefit from the clean energy economy.

Enabling Clean operations and improve the overall resilience of Energy, Equity and those communities. At the Ludlow-Taylor site, Pepco worked with New Resilience Partners to maximize the solar output that was able to connect to the distribution grid, which was Using battery storage to enhance challenged operationally by lower than expected the benefits of community solar on-site solar usage due to the pandemic. Pepco in Washington, D.C. provided both technical assistance and grants through its Sustainable Grants program to support on-site battery storage to store “excess” solar New Partners Solar provides more than 150 families energy produced by the array to be released to the in the District of Columbia with monthly energy grid in the evening, when the school and adjacent credits on their Pepco bills by donating 100% of the homes within the area still have electric demand economic benefits from renewable energy generat- that matches the stored battery power. This ed from solar projects across the District, including innovative option saved New Partners from having from an array at the Ludlow-Taylor Elementary to pursue expensive upgrades, maintained high School in Ward 6 and Jubilee Housing in Ward 1. levels of affordable solar energy for income-eligible Pepco has partnered with New Partners at both customers and created opportunities for future facilities to interconnect these arrays, enhance their resilience at the school.

30 Energizing The Warehouse Supporting clean energy and agricultural innovations “For Teens, By Teens” in Wilmington, Del.

The Warehouse is a multi-use space in Northeast Wilmington that youth-service partner organizations to provide a variety of programs gives young people the tools and opportunities they need to reach focused on recreation, education, arts and health. Delmarva Power their full potential. Delmarva Power is partnering with The Ware- is helping fund, build and operate a vehicle-to-grid school bus, house to make it a place where teens can learn about clean energy, an agricultural pod and solar panels with battery storage at The electric transportation and sustainable farming and agriculture—and Warehouse’s facility—supporting vocational and educational oppor- have the educational opportunities to start on a path to becoming tunities alongside each technology. These technologies also offer the next generation of energy leaders. The Warehouse is a “For solutions to some of the challenges facing the Wilmington communi- Teens, By Teens” organization bringing together more than 140 ty, including improving access to fresh food and clean transportation.

The Ag Pod Solar Power Electric Transportation

A year-round indoor vertical growing Solar panels and battery storage to An electric, zero emissions bus to replace environment producing more than an provide clean energy and reduce costs the facility’s older diesel school bus acre of fresh produce and increase community access to The Warehouse

pink photo no people

WHAT DRIVES US | 2020 Responsibility and Impact Report 31 Committed to neutrality as the District transitions to cleaner, Combatting Climate renewable electric generation sources and uses that electricity to power elements of the District’s Change economy, including transportation and buildings.

Multi-faceted strategies to As the electric provider for the District of Co- combat climate change across lumbia, Pepco recognizes it has a critical role to play—and a responsibility—to do its part. In No- the Mid-Atlantic vember 2020, Pepco announced its commitment to helping the District achieve its goal, including Each of the jurisdictions in which we operate to reduce its own greenhouse gas footprint by have ambitious climate change and clean energy 70% by the end of 2025 and establishing an policies, including a drive toward 100% clean and action plan to help the District and our customers renewable energy, greater amounts of transpor- do the same. tation electrification, and higher levels of energy efficiency and local solar. In 2018, for example, In 2021, our utilities in Delaware, Maryland and the Council of the District of Columbia passed the New Jersey will all release similar climate change Clean Energy DC Omnibus Act, which establishes commitments to reduce their greenhouse gas milestones to achieve Mayor Muriel Bowser’s goal footprint that align with and enable our customers of carbon neutrality by 2050. Pepco supported and communities in those jurisdictions to meet their this legislation and its goal of achieving carbon climate change goals.

Key commitments to minimize Pepco’s environmental impact:

Transitioning to 100% clean and renewable electricity use by 2025

Converting to energy efficient lighting at all Pepco facilities by 2025

Electrifying 50% of the company’s passenger vehicles and medium-duty fleet by 2030

Installing additional workplace charging infrastructure

Undertaking a holistic analysis to assess the readiness of the energy grid to accommodate increasing amounts of electrification

Enhancing the overall resilience of Pepco’s infrastructure and continuing to assess the effects of climate change on our system

32 This announcement is an outstanding example of how partnerships between utilities and cities can lead to greater climate ambition. Pepco’s commitment is critical to Washington, D.C.’s reduction goals, and the innovative solutions it lays out shows Pepco to be a private sector leader.

Bob Perciasepe, President of the Center for Climate and Energy Solutions (C2ES)

Scan here to learn more about Pepco’s ongoing climate change commitments

WHAT DRIVES US | 2020 Responsibility and Impact Report 33 Protecting Our Natural Environment

As a custodian of environmentally sensitive rights-of-way and operator in densely populated communi- ties and coastal zones, we recognize that we must work to deliver safe and reliable service in a way that meets the needs and expectations of our customers while protecting and preserving wildlife and critical habitats, including receiving Wildlife Habitat Council Conservation certification for critical wetland sites, and taking action to restore and remediate areas impacted by our operations.

data, they deploy minimization strategies, including helicopters, to protect natural, biological and cultural resources and conduct work in the most sensitive areas. It’s just one of the many ways Atlantic City Electric is building resilience while enabling a more sustainable future—protecting coastal wetlands and improving energy reliability at the same time. Restoring and Protecting Wildlife and Wetlands Promoting responsible use of Delaware’s waterways and surrounding habitat in Delaware Inland Bays

The Delaware Center for the Inland Bays (Delaware CIB) is charged with protecting Delaware’s Inland Bays watershed, comprising 292 Helicopter Habitat square miles of land draining to 35 square miles of bays and tidal tributaries. Delmarva Power has supported Delaware CIB’s efforts Protection for more than a decade, contributing to its programs since 2011. In 2020, Delmarva Power provided funding for Get Out for the Bays, a Elevating our approach to habitat month-long peer-to-peer fundraising campaign gathering community preservation in Atlantic City, N.J. support for the watershed. The company also partnered with Dewey Beach Lions Club to Coastal wetlands—including those in the Atlantic City area—are successfully obtain certification under the Wildlife Habitat Council fragile ecosystems established over thousands of years. Unfortu- Conservation Certification program of a small wetland site located nately, traditional ground-based construction techniques can some- within a Delmarva Power distribution right-of-way. An educational times cause damage. That’s why Atlantic City Electric is building interpretive trail winds into the site to the tidal wetland area, bird and repairing some of its transmission lines using an unexpected boxes were established to attract local wildlife and a natural berm tool: helicopters. was installed to help control storm water runoff. Adjacent to the The Atlantic City Electric team designed a geodatabase to identify wetland, pollinator-friendly buffer plantings were positioned on the threatened and endangered species and habitats, enabling them edges of the wetland and an osprey tower/nest structure erected. to plan and execute maintenance while increasing environmental Delmarva Power also helped install a live osprey webcam on the plat- compliance and protection of natural resources. Armed with that form in 2020 to track the success of osprey pairs that use the nest.

34 Anacostia River Sediment I am passionate about my role and Project our work protecting birds and the Making the Anacostia River fishable and natural environment. Birds are an swimmable

umbrella species, so by protecting The Anacostia River flows from Prince George’s County in Maryland into the District of Columbia. The river’s watershed covers roughly them and their habitats, we 176 square miles in Eastern Montgomery County and Northern Prince George’s County, and much of the eastern half of the District can ensure we leave a smaller of Columbia. Pepco’s Benning Road facility sits on the eastern banks footprint, which is a driving force of the Anacostia in the River Terrace neighborhood of the District of Columbia. The facility currently operates as a major substation and behind the work I do. service center, from which more than 500 of our employees come and go every day. The 77-acre property was also the historic site of a Cristina Frank, Principal Environmental power plant that ceased operations in 2012 and was removed in 2015. Program Manager, Pepco Holdings Today, Pepco is conducting a Remedial Investigation and Feasibility Study of the Benning Road site and is also an active party in efforts to clean up and restore the Anacostia through the DOEE’s Anacostia As a result of its long-term commitment to the region’s waterways, River Sediment Project (ARSP). Delmarva Power was selected as a 2020 recipient of the Friends of the Bays Award, recognizing advocates for the wise use and en- The ARSP was initiated by DOEE to investigate, identify, and reduce hancement of the regional environment. the levels of contaminants in the region’s water. Since 2013, the ARSP determined the nature and extent of the sediment contami- nation, measured the risk posed to human health and the envi- Avian Management and ronment and developed a cleanup strategy. The DOEE reached an Pollinator Protection important milestone with the release of the ARSP’s Interim Record of Decision (ROD) on September 30, 2020, which identifies early Using drones to protect critical species in action areas or “hot spots” in the Anacostia River, Washington Channel and Kingman Lake. Conowingo and Elkton, Md. Pepco is committed to environmental stewardship and shares the The Conowingo Dam in the lower Susquehanna River is home to a District of Columbia’s goal of a fishable and swimmable river. The dense bald eagle population, along with other rare avian species. In company supports the DOEE’s Interim ROD for the ARSP and is 2020, Delmarva Power saw an opportunity to minimize hazardous actively engaging with DOEE, the EPA and the local community conditions for these important birds and collaborated with colleagues through a Community Advisory Group as we develop and implement at PECO, Exelon Generation and the Electric Power Research Institute a cleanup strategy for our Benning Road site. to test the use of drones to mark electric transmission lines that run from the dam over the Susquehanna River to Rowlands Island. These reflective aerial line markers help birds avoid contact with the power lines—and installing them with drones was a safer and more cost-ef- fective alternative to traditional techniques.

Delmarva Power is also working with PECO to enhance pollinator habitat within a joint transmission right-of-way located in Elkton, Md. The 14-acre site has gone through a season of spot treatment of invasive species, installation of bird boxes and overseeding with a native pollinator mix. As a result of these actions, it is already pro- viding habitat for a multitude of pollinators and birds. The teams are currently working to establish this portion of right-of-way as a jointly certified habitat under the Wildlife Habitat Conservation’s certifica- tion program.

WHAT DRIVES US | 2020 Responsibility and Impact Report 35 Building a Smarter, Stronger, cleaner Grid and Energy System

Severe weather is one of the leading causes of power outages in the United States and costs the econo- my billions of dollars per year. These impacts are expected to rise as climate change increases the fre- quency and intensity of storms, causing flooding and major wind events, heat waves and droughts, and changes in historic weather patterns and temperatures. At the same time, our customers are becoming more reliant on electric service to power their daily lives, while many customers count on a steady and safe supply of natural gas to run their business operations and heat their homes. To meet the expecta- tions of our customers and increase the reliability, resilience and available capacity of the electric grid and gas distribution system, we spent $1.7 billion on capital investments in 2020 which, in addition to improv- ing our critical infrastructure, enabled support for approximately 20,000 jobs. To maintain safe, reliable service for all customers in the face of climate change, we are taking action to make the system smarter, stronger and cleaner to build resilience, enhance our preparedness for major weather events and enable clean energy and climate solutions for our customers and communities.

Capital Grid Project Building resilience for the future in Washington, D.C. and Md.

In 2017, Pepco announced the Capital Grid project, a 10-year roadmap to strengthen power reliability and resilience in the District of Columbia, Prince George’s County and Montgomery County. The #CapGrid plan includes the construction of the new Mt. Vernon substation, upgrades to three existing substations, and a new 10-mile underground transmission line to deliver electricity to customers. Construction began on the Takoma and Harvard substations in 2020. The project will not only increase the resilience and reliability of the electric system for District and Maryland customers, but it also provides economic opportunities for local businesses and residents. Since the project’s inception, the Capital Grid project has awarded nearly $250 million in contracts to five local construction firms, which has supported good paying jobs for over 2,000 individuals, including graduates from the DC Infrastructure Academy. Enhanced Reliability

Added Capacity SCAN HERE TO LEARN MORE Local Job Creation

36 Undergrounding and providing safe and reliable natural gas delivery service for our customers, while reducing methane emission associated with Strengthening Power Lines natural gas, which helps reduce our overall greenhouse gas footprint. Since beginning this effort in 2006, we have modernized Preparing for the impacts of climate more than five miles of natural gas main annually, reaching change eight miles in 2020, replacing them with new plastic pipes that enhance safety, are more durable, help reduce potential leakage and improve reliability. Since beginning this comprehensive Across all our jurisdictions, we are investing to modernize our modernization effort, we have replaced more than two-thirds of our transmission and distribution grids to make them stronger and more cast-iron and bare-steel natural gas mains. Based on our current resilient. Efforts include replacing poles to meet higher wind speeds, schedule, we will have replaced the remaining cast-iron and bare- undergrounding select lines and expanding capacity to increase steel mains by 2027, five years ahead of our original schedule. redundancies to meet critical load.

In New Jersey, as part of our broader strategic effort to better serve Major Storm Response our customers and modernize the energy grid, we launched the At- lantic-to-Ocean Counties Reliability Project, which includes rebuild- Improvement Project ing 15.1 miles of critical transmission line using stronger utility poles and modern equipment between Port Republic and Tuckerton. This Preparing for the next big storm transmission line serves more than 22,000 customers in the eastern portion of our service area in South Jersey and is critical to customer While the company achieved its best reliability performance on reliability in Atlantic, Burlington and Ocean counties. Construction record, ending 2020 in the top quartile of utilities, we recognize that began in 2020 and will be completed by Summer 2022. we are only as good as our last storm. In response to the increasing severity and frequency of major storms and weather events, we In the District of Columbia, the DC Power Line Undergrounding initiative launched a comprehensive review of our storm preparedness and (DC PLUG) is a $500 million multi-year partnership and engagement with response activities across Atlantic City Electric, Delmarva Power the District government to strategically underground lines to secure and Pepco. The multi-month review and assessment, known as the the most vulnerable distribution power lines in the face of increasingly Major Storm Response Improvement Project, involved the engage- severe weather. In 2020, Pepco energized the first completed feeder, ment of hundreds of employees from all facets of our business, with located in Ward 3, and initiated new projects in Wards 7 and 8. a focus on assessing and identifying opportunities for improvement on a range of activities from operations and logistics, to customer engagement and communications, to safety and security, all to ensure that we are prepared to serve our customers, no matter what Scan here for updates the future brings. on DC PLUG

Smarter: Installing Distribution Automation technology in neighborhoods to identify and And, in recent years, Delmarva Power completed several key projects minimize effects of outages more quickly. to modernize the local energy grid and enhance reliability for cus- tomers in Delaware and Eastern Maryland, including the Easton-to- Stronger: Hardening and upgrading equipment Bozman Transmission Line Upgrade, that enhanced reliability for at substations and on feeders to better more than 2,000 customers in Talbot County, Maryland and Cool withstand the effects of increasingly severe Springs-to-Indian River Transmission Line Rebuild, which improved weather and prepare the grid for growth. reliability for 75,800 customers in Sussex County, Delaware. Cleaner: Helping bring benefits of renewable energy to customers across our jurisdictions Modernizing Our Natural through community solar projects. Gas System Setting new standards for natural gas delivery in Northern Del. Scan here TO SEE

The overall modernization of our natural gas delivery system in AN EXAMPLE Northern Delaware is a core component of our commitment to

WHAT DRIVES US | 2020 Responsibility and Impact Report 37 PEOPLE AND PROGRESS DRIVE US

Driving opportunity, We are constantly striving for a more inclusive future and equity, inclusivity and creating economic opportunity and continued growth growth are vital to our for our employees and communities, including the local businesses on which we all depend. We’re proud of the long-term success and the foundation we’ve built. In 2020, Exelon was named one future of our communities of DiversityInc’s “Top 50 Companies for Diversity”, and one of the Human Rights Campaign’s “Best Places to Work.” Exelon was also the first utility to be inducted into the Billion Dollar Roundtable for spend with diverse suppliers, while we achieved our highest level of diverse spend ever in 2020. We also supported programs that trained dozens of individuals for careers in the energy industry and helped educate thousands of students in partnership with local school systems, organizations and community colleges. At the same time, we know that we have more we need to do, both in our company and with our communities. Last year, as the national conversation around racial injustice took center stage, nearly 4,100 of our colleagues embraced one another to enhance their connections across our entire organization and in our communities to identify where we can have an impact to make progress and lasting change.

38 EMPLOYEE IMPACT at a glance

of employees across Pepco Holdings are 53% Represented Employees

of external hires were women AND/or people 60%+ of color

of internal promotions at Pepco Holdings were 60%+ women and/or people of color

employees participatEd in GROW TOGETHER career 2K+ development programs

WORKFORCE DEVELOPMENT IMPACT at a glance

people hired from our communities, including from our Workforce Development Programs (WFD); Dozens 300 of other graduates from our WFD programs went to work for Pepco Holdings Contractor CompanIEs 75 paid high school interns and co-ops

new programs launched providing alternative 2 career path options to high school students

WHAT DRIVES US | 2020 Responsibility and Impact Report 39 Enhancing the Culture of DEI and Innovation

We recognize that it is our differences that drive our internal culture and operational successes. Creating and investing in our talent strategy is a vital component of our commitment to our employees. Whether through professional and leadership development classes, individual or group mentoring, coaching circles, leadership discussion forums, or project assignments, Diversity, Equity and Inclusion (DEI) is integrated into the fabric of everything that is offered. More than 54% of our workforce is comprised of women and/or people of color and, in 2020, more than 60% of employees hired into the company and internal promotions were also women and/ or people of color. But our focus extends beyond attracting and retaining a diverse workforce; we are also ensuring that these efforts are delivering results, including requiring all management employees to include a DEI component in their annual leadership goals. Achieving our goal of fostering a diverse, equitable, inclusive and innovative culture, means we must not only strive to enhance the diversity of our team, but also ensure that those same team members feel empowered to share their ideas and perspectives, and feel safe to bring their whole selves to work, every day.

Employee Resource continuing to provide programming to help our employees thrive in a virtual environment and Groups create space to have conversations and dialogue about matters impacting members of each ERG. Staying connected and During 2020, our ERGs created and delivered more committed in a year unlike any than 100 events, open to all employees, including town hall discussions, philanthropic events and other expert panels on the issue of race and gender in America. Each ERG is provided a budget from the In March 2020, nearly half of Exelon’s workforce company and an executive sponsor that works with shifted to virtual work. Our 12 Employee Resource the ERG leadership team to help guide and advise Groups (ERGs), which drive inclusion and that ERG and champion issues and events. professional development for our team members across our regions, rose to the challenge by

40 Some of the company ERG highlights for 2020 include:

Developing Young Professionals (DYP) created a Podcast Club to listen to Scene on Radio: Seeing White, which looks at the history of inequity in our society and evokes discussions on issues such as, “Where did the notion of “whiteness” come from?” The group continues to meet monthly to discuss episodes. ­

Exelon African-American Resource Alliance (EAARA) initiated a #BlackLives- Matter@Exelon town hall series starting in June to commemorate the Juneteenth holiday. The series was intended raise awareness of what African Americans face personally and professionally and to identify areas to make positive change. Nearly 1,500 of our employees attended these sessions. ­

Network of Exelon Women (NEW) chapters across Pepco Holdings partnered to host a virtual author panel on the book The Energy Within Us, moderated by former FERC Commissioner Collette Honorable, which discussed the authors’ journeys as female, African American pioneers in the utility industry. ­

EMAC (Exelon Militaries Actively Connected) created a Wall of Honor for ACE and Pepco to commemorate veteran employees and launched a fundraiser to raise money for improving the quality of life for severely wounded veterans. ­

Asian American Resource Group (AARG) hosted a Fireside Chat with Carl Chan, president of the Oakland Chinatown Chamber of Commerce, to discuss hate crimes committed against Asian Americans. The group also hosted a talk on xenophobia from COVID-19, featuring Natalie Hung, Ph.D., who contextualized the recent surge of anti-Asian violence in the history of Asian American racialization.

The Pride Network, EAARA and AARG chapters partnered to facilitate engaging discussions in support of our DEI initiatives, and in response to racial and social injus- tice. The discussion focused on the book So You Want to Talk About Race by Ijeoma Oluo and created a space for employees to talk about their personal experiences, both in and out of the office.

The Exelon Pride chapters collaborated to facilitate discussions during LGBTQ+ History Month on topics ranging from the significance of the month, to what ally- ship looks like, to personal reflections of being out in the workplace and how we can continue making progress toward equality for all.

WHAT DRIVES US | 2020 Responsibility and Impact Report 41 Opt-In Conversations Making space for meaningful dialogue

The Pepco Holdings DEI Council, which includes executives and ERG leaders and members from across the company, launched Opt-In Conversations in 2020 to foster dialogue around racial and social injustice. The 60-minute sessions, led by company leaders, offer space for employees to share ideas on how we can improve our business and better our communities. Opt-In Conversations are open to all Pepco Holdings employees, and each large-format session is followed by small group discussions during which employees engage in deeper dialogue on the issues that matter most to them.

2020 Opt-In Conversations included:

Opting In to the Conversation and Why it Matters

Systemic Racism - What it is and How it Manifests

Understanding White Privilege

Being a Champion for Equality

Justice System Reform

Protests - Benefits and Why People Gather

Defunding Police - What Does it Mean?

Colin Kaepernick - Kneeling During the National Anthem

Artifacts - History, Art or Offensive

Why Representation Matters

White Silence and its Impact on Racial Equality

Sharing Our Realities in Our Work Environment

How to Be an Ally

Education System Reform

Black Lives Matter - What it Means and Why it’s important

Awareness of our Personal Perspectives

Actions to Be Anti-Racist

Racism From the Eyes of an Immigrant

So You Want to Talk About Race?

Awareness of Our Personal Perspectives

42 Inclusive Leadership Training The Inclusive Inclusivity should be second nature Leadership course

In 2020, our executive team recognized that we had an opportunity to better address equity through our own practices, policies and people. was fantastic. The To take a tangible step in that direction, we introduced mandatory Inclusive Leadership Training for employees at the management level instructor was and above. The training, facilitated by Pope Consulting, a national leader in diversity consulting, helps every leader understand how to unlock performance by recognizing and incorporating the diverse engaging, and the experiences, expertise and perspectives of their team members. exercises were White Men and Allies illuminating. The Building understanding and awareness to make systemic change course enabled the

The White Men and Allies (WM&A) learning lab is designed to help par- participants to have ticipants expand their thinking about the role of courageous leaders in building the skills necessary to drive inclusion at Exelon. The multi-day learning lab is mandatory for all Exelon executives, with the ultimate an open and honest goal of growing a large cadre of leaders who can effectively partner with their colleagues to drive real change across the organization at both a micro and macro level. WM&A focuses on developing inclusive conversation about leadership skills and looks in-depth at what makes for effective diversi- ty partnerships. Partnership indicates shared ownership to building an stereotypes and gave inclusive culture and raising awareness of unconscious bias leaders the tools Courageous Leaders to be intentional Learning from one another to grow inclusive leaders about building an Courageous Leaders Sessions (CLS) are designed to introduce the WM&A learning objectives to directors across the organization. Simi- inclusive, welcoming lar to the WM&A learning lab, the CLS cohort is designed to: demon- strate authentic, advanced inclusive leadership skills; mentor and coach white men as they navigate DEI challenges; champion and lead environment on their DEI efforts within the company and their organizations; and utilize additional learning materials to lead discussion forums with teams. teams. Providing opportunities for directors across the company to engage with and learn from one another through CLS will enable them to become an integral part of driving DEI throughout the organization to achieve meaningful and lasting change both a micro and macro level. Tyler Wolverton, Manager, Revenue Policy, Pepco Holdings

WHAT DRIVES US | 2020 Responsibility and Impact Report 43 Developing Employees and Building Our Future Workforce

We are elevating economic equity and powering opportunities through our talent development and workforce training programs, focused on reducing and eliminating barriers, creating job opportunities and increasing STEM awareness and education for youth. Our goal is to have the right people with the right skills in the right places, supported by programs, mentorships and resources to enable existing employees to grow their careers and bring in new talent that already understands our business. In the process, we’ll enrich our culture and continue to innovate and invest in our talent strategy, including through profes- sional and leadership development opportunities.

Goal Setting, Resource Education, Ongoing Goal Setting: Aligning career growth opportunities to Development, support the business Winning People Resource Education: (GROW) Leveraging existing tools and resources Our team is stronger when we Ongoing Development: GROW Together Continuous development and improvement

The GROW program encourages employees to invest Winning People and Teams in their own success with more than 30 targeted ses- “Paying it forward” to others sions related to professional development. Helping employees grow their career is a foundational part of our employee development strategy. In 2020, the second company-wide virtual career week saw over

44 2,000 employees participate in GROW events. The two-week long events are supplemented with quarterly GROW days. Our November The unique thing about our Mentoring GROW Day helped over 600 participants sustain their focus from their efforts during GROW Week. Survey feedback demonstrated that Program is it allows any of us to the sessions helped our employees take greater ownership in their share and leverage our strengths, and personal career development efforts. have a forum to connect with others. Mentorship Program We all have unique experiences to share with coworkers. Long-term success requires long-term support Mentor

Every year, hundreds of our employees volunteer for the company’s mentorship program, which matches employees at different stages of their careers with mentors to provide professional guidance and ongoing support. Mentoring is impactful for the mentees in their career development and growth, but also impactful to the mentors as they develop their lead, coach and engage behaviors. Our mentoring My mentoring relationship has been program has increased employee engagement and helped to develop fantastic! I have been told I lack a sense of connectedness across our company. confidence and don’t give myself enough credit. My mentor has really helped me 2020 Highlights: realize my full potential and I am doing 690+ total participants better at knowing my worth and what I 1.7 hours invested per month, on average bring to my department. 92% of our most senior level leaders enrolled Mentee as mentors

I am still relatively new to the company and the industry, and there is so much As a result of GROW Week, I will to learn. This session really helped be more intentional in keeping the pieces fall into place for me in my resume up to date, instead of terms of my understanding of how the different parts of the business work waiting for the opportunity to and interact with each other. come along before I update it.

Financial Acumen Participant Finance Team Member

WHAT DRIVES US | 2020 Responsibility and Impact Report 45 South Jersey Utility Training Creating energy jobs of the future is critical to growing New Jersey’s economy…I applaud Atlantic City Electric for their Program workforce development efforts to train the next generation to seize the opportunity of the clean energy economy. I Launching careers while modernizing the thank Atlantic City Electric for its long-range view, and grid in Atlantic City, N.J. look forward to working alongside them to grow our energy economy together. Atlantic City Electric is making it easier than ever for residents to Governor Phil Murphy, State of launch a fulfilling career. The company partners with six community New Jersey colleges in the South Jersey region to recruit talent for new construc- tion projects through the region and provide instruction to help them pass the CAST exam, a certification for utility workers. In its fifth year, in 2020, the program had 20 students complete the training with 19 Path to Success successfully completing the CAST exam. The journey to great opportunities begins in high school in Wilmington, Del.

DC Infrastructure Academy Late last year, Delmarva Power invited 18 high school students to participate in its virtual Path to Success Program. The program offers Preparing District residents for a bright one-on-one career coaching, career exploration and professional skill building, in addition to employment opportunities. The program future in Washington, D.C. is a new approach to alternative career path options for students post high school. To date, 15 students are enrolled in the program. In 2018, Pepco partnered with Mayor Muriel Bowser, the District government and other infrastructure businesses to launch the DC Infrastructure Academy (DCIA), which provides District residents I always feel like I can call or email any with specialized training and job opportunities with Pepco and its participating Contractors of Choice (CoC). Since its inception, DCIA of the tutors. They don’t limit assistance has gradated more than 85 students, each of whom received a job to just our schoolwork and allow me to offer from either Pepco or one of its CoCs. Every successful graduate is guaranteed a job offer, providing them an immediate opportunity connect with them on personal aspects of to begin their career in the energy and utility sector. Even during my life. They truly care. the COVID-19 pandemic, Pepco worked with the team at DCIA to safely complete a virtual training model to keep the 27 participating students on schedule to graduate and secure employment during an Elijah James, senior at Saint Mark’s economically challenging time. High School, and 2020 participant

Starting in 2021, as part of a partnership agreement with the Wash- ington Interfaith Network (WIN), Pepco has committed to working with DCIA to put more than 100 eligible District residents through the program each year. In addition, Pepco is working with WIN and Scan here TO LEARN our participating CoCs to advance legislation at the DC Council to establish a minimum prevailing wage for individuals that work on our MORE ABOUT DCIA underground system in the District.

The partnership between the District of Columbia and Pepco has been a cornerstone of Mayor Bowser’s vision, as residents receive high-quality and meaningful training that prepares them for in-demand careers in the utility industry. Dr. Unique Morris-Hughes, DC Department of Employment Services Director

46 Guiding Light Leadership Program Hands-on guidance for individual success in the Washington, D.C. area

The Guiding Light Leadership Program (GLLP) has been executed in the Pepco region for over 13 years. This program is in collaboration with the District of Columbia Public Schools, Prince George’s County Public Schools and Montgomery County Public Schools. The core purpose of the GLLP is to expose graduating seniors to the diver- sity of opportunities within the electric utility industry. Since its inception, more than 150 students have graduated from the program, including 12 students that participated in 2020 through virtual ses- sions. Students receive instruction on resume development, career preparedness training, overviews of key aspects of the industry from subject matter experts and mentorship throughout the program and post-graduation. Each student also receives a $2,500 scholarship to the university of their choice.

Exelon STEM Academy Engaging young women in the future of our industry

The Innovation Leadership Academy is a free, six-day summer pro- gram for junior and senior high school girls in Chicago, the Baltimore/ Washington, D.C. region and Philadelphia. Students participate in activities to understand STEM career options and possibilities for college education. In 2020, 180 young women joined the program across all three areas. Highlights included field trips to power plants, hands-on science projects, leadership panel discussions and team-based energy challenges. The program is run in partnership with local universities, including the University of Maryland and the Energizing Student Potential program, to provide the young women with classroom and in-field experiences, mentorship and career awareness opportunities.

Scan HERE to view the 2020 recap and learn more about the 2021 STEM Academy

WHAT DRIVES US | 2020 Responsibility and Impact Report 47 Growing the Local Supply Chain and Increasing Diverse Spend and Local Hiring

We have the ability to power the local economy by more than just providing energy to millions of people across the Mid-Atlantic. As a major purchaser of goods and services, we have a unique responsibility and opportunity to advance economic growth and equity and contribute to the overall vibrancy of our communities. In 2020, Pepco Holdings achieved its highest spend with diverse suppliers in our history, at $457 million, to help modernize our grid, enhance customer platforms and services, and perform operations and maintenance work, day-in and day-out. We accomplished this by being intentional about contracting and procurement practices. But we also know we can do more and do better. That is why we are partnering with local and diverse business and supporting organizations to help them hire more individuals from the communities we serve and expand their capabilities through mentorship, capacity building and helping them make connections.

Local Business for work with Pepco Holdings as well as other companies. As part of our supplier development Partnerships strategy, we will launch EMPOWERment Academies (formerly known as Target 25) in Fall Committed to entrepreneurs 2021, to provide diversity-certified suppliers across our communities with tools and knowledge to grow their businesses through one-on-one mentorship, and building capacity and educational workshops and hands-on support. increasing local hiring Over time, EMPOWERment Academies are designed to build a diverse pipeline of local firms to support our work in the communities We are focused on opportunities for diversity— we serve. certified suppliers to work as prime and sub- contractors in many aspects of our key capital We are also committed to building the capacity projects across our companies and increase the of diverse businesses through a new pilot capacity of local, diverse suppliers to compete program that awarded grants to the Eastern

48 and Capital Region Minority Supplier Development Council (EMSDC and CRMSDC). Grants will fund the design and implementation of capacity building programs to grow Black-owned businesses in Exelon’s footprint.

Our efforts to date have resulted in significant progress in our con- tracting across our service areas, providing opportunities for local and diverse businesses as well as those that they employ.

For example, for our Capital Grid project in the District of Columbia and Maryland, Pepco has awarded nearly $250 million in contracts to five area construction firms with 100% of the underground construction work awarded to Certified Business Enterprise (CBE) firms, and 77% of the overall project work, which includes engineering, awarded to CBE firms. In addition, through DC PLUG, Pepco is partnering with the District on a $500 million multi-year project to strategically underground power lines most at risk for severe weather events. To date, 99.99% of the awards made by Pepco and the District Department of Transportation were awarded to CBE firms.

We are fortunate to be considered an In April 2021, Pepco and the other participating utilities signed a Memorandum of Understanding with the DCPSC committing to a Exelon contractor of choice in the goal of targeting at least 25% of diverse spend with District-based Pepco region, and we are currently businesses. In addition to work with the Council, we partner with the Greater Washington Hispanic Chamber of Commerce and the Metro delivering our second and third DC Hispanic Contractors Association among other organizations to new-build substation to support expand opportunity and equity in the utilities industry. regional efforts to build capacity Minority and Community and resilience. Credit Facilities Omar McIntosh, Senior Vice President and Regional Executive, Smoot Construction Strengthening financial ties to our communities

Advisory Council on Access to financial resources to help diverse businesses operate or Workforce and Supplier expand has long been an impediment to greater economic equity. Knowing this, in 2003, Exelon established its minority and community Diversity banking program to increase access to sources of liquidity and provide participating banks with increased deposits and assets to grow local Expanding opportunities for people and businesses and economies in the communities they serve. In 2020, businesses in Washington, D.C. $24 million in lines of credit were established with six community and minority-owned banks in Delaware, the District of Columbia, Maryland and New Jersey. Participating minority and community banks include: The Public Service Commission of the District of Columbia (DCPSC), Wilmington Savings Fund Society led by Chairman Willie Philips, formed the Advisory Council on Utility Supplier and Workforce Diversity (the Council) in 2019. The Coun- Fulton Bank cil’s goal is to provide advice and recommendations on improving United Bank diversity and inclusion within the within the energy workforce and WesBanco utility suppliers in the District. Pepco Holdings President and CEO Dave Velazquez co-chairs the Council and the company is an active Industrial Bank participant, alongside Washington Gas, Verizon and DC Water. Pennsville National Bank

WHAT DRIVES US | 2020 Responsibility and Impact Report 49 Partnerships to Drive Economic Opportunity, Equity and Growth

Washington Increasing hiring and training opportunities for Interfaith Network local and diverse residents Increasing contracting opportunities for local A collaboration for economic and diverse suppliers equity and job growth in Ensuring that our contractors and subcontrac- Washington, D.C. tors provide a “living wage” for all their em- ployees working on our qualifying underground Last year, Pepco expanded efforts to advance projects equity and create economic opportunities by part- nering with the Washington Interfaith Network Advancing clean energy and climate solutions, (WIN) on an agreement that that will help drive with a focus on equitable and affordable pro- equitable wages and increased opportunities for grams and services jobs and long-term careers for District residents. This partnership will help build a strong and Exploring options for providing access to cap- sustainable foundation to advance economic ital for minority-owned businesses to help build opportunity and the environmental health in local their capacity and ability to make their own communities by: investments in the growth of our region

We are proud to partner with Pepco to increase access to good job opportunities in some of the wards with the highest unemployment rates in the District. This agreement serves as a nationwide and even global example for what corporate accountability looks like when communities organize to put their interests in racial equity and economic justice on the table.

Rev. Lionel Edmonds, Co-Founder, WIN

50 We are pleased to introduce our Competitive Edge program to Atlantic City Electric to support the work associated with the Providing opportunities for Atlantic City/Brigantine Community Atlantic City residents Reliability Project. A group of young men and women from Atlantic City Jingoli’s Competitive Edge program is creating a pipeline of local talent will participate in our 12-week,

Atlantic City Electric initiated construction in 2020 on a reliability Train to Hire program where they project to modernize the local energy infrastructure connecting Atlantic City and Brigantine, N.J. The project includes replacing an will listen, learn and interact existing substation and rebuilding two critical transmission lines, with various professionals and creating a stronger and more resilient energy grid to reduce the impacts of increasingly powerful storms. Jingoli Power, a well-estab- experts who will introduce them to lished New Jersey-based construction firm, is the lead contractor on the project. Jingoli Power launched an innovative program known potential career paths associated as Competitive Edge nearly 30 years ago to provide training, wrap- around support and career opportunities to individuals in under-re- with this type of project. sourced communities. As part of a partnership with Atlantic City Joe Jingoli, CEO Jingoli Electric, Jingoli Power will orient and train 18 new hires for various positions, including interns, administrative personnel and craft ap- prentices through its Competitive Edge program.

Partnering with The When you consider that Precisionists Inc. in Delaware more than 70% of people with autism in the country Helping to bridge the disabilities employment divide are either unemployed or Since 2018, Pepco Holdings and the broader Exelon companies underemployed, we are have worked with The Precisionists Inc. in Delaware to run an innovative program that provides employment to dozens of making a true difference local adults with autism. The Precisionists Inc. is focused on creating 10,000 jobs nationwide for people with disabilities by in engaging a significant, the year 2025, by providing industry best practices for delivering administrative and technology services performed through teams, untapped and high-performing which include individuals with disabilities. labor force right here in Individuals taking part in the program are identified, assessed, trained and employed by The Precisionists Inc., and carry out proj- Delaware. ect-based work, including managing and updating databases, sup- porting the processing of solar application invoices and requests, and Ernie Dianastasis, Founder and entering and analyzing data for our customer care organization. In CEO of The Precisionists Inc. 2020, Exelon’s work with The Precisionists Inc. exceeded $1 million.

WHAT DRIVES US | 2020 Responsibility and Impact Report 51 LOOKING AHEAD

We’re proud of the work we’ve done to strengthen our communities, increase opportunities and build a safer, more inclusive and more sustainable future. We will continue on our journey to power a cleaner and brighter future for our customers and communities by developing and implementing strategies across all five of our focus areas:

The safety and security of our internal teams and external stakeholders are extremely important to me as an officer of Pepco Holdings. I take that responsibility seriously and as a result am committed on a daily basis to strive for success in Safety and Security those areas. I welcome working with all stakeholders on how we can ensure we have Preparing and strengthening our energy grid and comprehensive plans that minimize risk and delivery system for a changing climate and evolving security environment maximize our ability to keep us all safe and secure throughout our journey. This is what Enhancing public and employee safety by following best drives me. practices in damage prevention Sam Williams, Vice President of Support Services, Pepco Holdings Implementing industry-leading employee safety programs, procedures and training

52 I’ve been part of Operations FOR 25 of A 30-year career and I am thankful to have worked side-by-side with so many great people from diverse backgrounds and who bring different experiences Reliable and Excellent to the organization. I see Service our employees embrace challenges and excel

as they grow and navigate through their Improving our customer experience by answering the ques- career paths on their journey to accomplish tion, “How easy is it to do business with us?” their goals. I believe cultivating and creating these opportunities for our employees is what Increasing access to affordable, reliable energy on our creates a strong culture and, as a leader, customers’ terms that’s what ultimately drives me. Equipping our team members to be ambassadors for Pepco Holdings and to connect their daily work to address important Bob Pinto, VP Electric & Gas societal and environmental issues and impacts Operations, Pepco Holdings

Investing to make our grid smarter, stronger and cleaner and maintaining high levels of reliability and customer performance

I am driven by the fact that I get to serve, engage and interact with customers in my Strong Partnerships and role at Pepco Connecting Customers Holdings. I’m also driven by the fact and Communities that my work puts me right into

the communities that are under- Creating new and expanding existing partnerships to help resourced, where I can bring the educate, recruit, train and hire the next generation of energy resources of my organization to industry leaders Partnering with community-based organizations and non- bear. And, it all happens where I live profits to help our communities grow and thrive

and where I work. Growing the capacity and capabilities of local, diverse Felecia Greer, VP of Large Customer Strategic business partners Solutions and Customer Advocacy, Pepco Holdings Helping communities and customers meet their climate, clean energy, affordability and resilience goals

WHAT DRIVES US | 2020 Responsibility and Impact Report 53 I get so much joy and satisfaction when I see others elevate to the next level and achieve A Diverse, Equitable, what they didn’t think Inclusive and Innovative was possible. So, what Culture drives me isn’t about my success, it’s what happens to others who I’m able to influence and help to lift up. If I can Focusing not only on DEI within our own teams, but also as facilitate and foster having very real DE&I we recruit and hire conversations so that we can increase our Increasing awareness about career opportunities in the awareness of how we look at our workforce, utility field and workforce development programs how we look at diversity, and how diversity Removing historic barriers to employment for under-re- can help us as a team to be better as a sourced communities corporation, then I’m going to do that. Providing employees with opportunities to raise new ideas and identify better, more efficient ways to serve our customers, Morlon Bell-Izzard, VP of Customer operate our system and engage with our communities Operations, Pepco Holdings

It’s incredibly important for me to be working in a place where I feel like I Policy, Regulatory and can have an impact Financial Progress and leave the world a better place. I want to feel like Building strong coalitions and relationships with local and I’m doing good, and I’m being part of community leaders to address the “big things” the change that I want to see. And Investing to enable decarbonization, build resilience and establish the platform to drive economic growth and I think, for most of us, the most innovation impactful platform that we have is Defining the company’s role as a proactive community the company we work for. leader to advance polices that enable a clean, resilient, sustainable and equitable energy future Marissa Humphrey, VP of Regulatory Responsibly managing our workplans and budgets to Strategy and Policy, Pepco Holdings maintain affordable and reliable energy for all our customers

54 WHAT DRIVES US | 2020 Responsibility and Impact Report 55 WHAT THESOURCE.PEPCOHOLDINGS.COM DRIVES atlanticcityelectric.com | delmarva.com | pepco.com US