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<TITLE>SECURITIES AND EXCHANGE COMMISSION</TITLE>
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<FONT SIZE=5><P ALIGN="CENTER"><BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
</FONT><FONT SIZE=4>WASHINGTON, D.C.  20549</FONT></TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"> </TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=8> </TD>
<TD WIDTH="33%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"> </TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=8> </TD>
<TD WIDTH="33%" VALIGN="TOP"> </TD>
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<TD WIDTH="33%" VALIGN="TOP" COLSPAN=8>
<FONT SIZE=5><P ALIGN="CENTER">FORM 10-Q</FONT></TD>
<TD WIDTH="33%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"> </TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=8> </TD>
<TD WIDTH="33%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="33%" VALIGN="TOP"> </TD>
<TD WIDTH="33%" VALIGN="TOP" COLSPAN=8> </TD>
<TD WIDTH="33%" VALIGN="TOP"> </TD>
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<TR><TD VALIGN="TOP" COLSPAN=10>
<P ALIGN="CENTER">Quarterly Report Under Section 13 or 15(d)<BR>
of the Securities Exchange Act of 1934</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=10> </TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=10> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="CENTER">For Quarter Ended</TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=6> </TD>
<TD WIDTH="33%" VALIGN="TOP">
<U><P ALIGN="CENTER">March 31, 2000<BR>
</U></TD>
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<TR><TD WIDTH="41%" VALIGN="TOP" COLSPAN=3>
<P ALIGN="CENTER">Commission File Number</TD>
<TD WIDTH="25%" VALIGN="TOP" COLSPAN=5> </TD>
<TD WIDTH="34%" VALIGN="TOP" COLSPAN=2>
<U><P ALIGN="CENTER">1-1072<BR>
<BR>
</U></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=10>
<U><P ALIGN="CENTER">Potomac Electric Power Company<BR>
</U>(Exact name of registrant as specified in its charter)<BR>
<BR>
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=9>
<U><P ALIGN="CENTER">District of Columbia and Virginia<BR>
</U>(State or other jurisdiction of<BR>
 incorporation or organization)</TD>
<TD WIDTH="33%" VALIGN="TOP">
<U><P ALIGN="CENTER">53-0127880<BR>
</U>(I.R.S. Employer Identification No.)<BR>
<BR>
</TD>
</TR>
<TR><TD WIDTH="67%" VALIGN="TOP" COLSPAN=9>
<U><P ALIGN="CENTER">1900 Pennsylvania Avenue, N.W., Washington, D.C.<BR>
</U>(Address of principal executive office)</TD>
<TD WIDTH="33%" VALIGN="TOP">
<U><P ALIGN="CENTER">20068<BR>
</U>(Zip Code)<BR>
<BR>
</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=10>
<U><P ALIGN="CENTER">202-872-2000</U><BR>
(Registrant's telephone number, including area code)<BR>
<BR>
</TD>
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<TR><TD VALIGN="TOP" COLSPAN=10 HEIGHT=19>
<P>     Indicate by check mark whether the registrant (1) has filed all reports required to be <BR>
filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding<BR>
12 months and (2) has been subject to such filing requirements for the past 90 days.</TD>
</TR>
<TR><TD WIDTH="34%" VALIGN="TOP" COLSPAN=2 HEIGHT=25><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=25>
<P>Yes</TD>
<TD WIDTH="9%" VALIGN="TOP" COLSPAN=2 HEIGHT=25>
<B><FONT SIZE=4><P>[</B></FONT> <B><FONT SIZE=3>X</FONT> <FONT SIZE=4>]</B></FONT></TD>
<TD WIDTH="6%" VALIGN="TOP" HEIGHT=25>
<P>No</TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=25>
<B><FONT SIZE=4><P>[   ]</B></FONT></TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=3 HEIGHT=25>
<P><BR>
</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=10 HEIGHT=22>
<P>     Indicate the number of shares outstanding of each of the issuer's classes of common<BR>
stock, as of the latest practicable date.<BR>
</TD>
</TR>
<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=4 HEIGHT=22>
<U><P ALIGN="CENTER">Class</U></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>
<TD WIDTH="50%" VALIGN="TOP" COLSPAN=5 HEIGHT=22>
<U><P ALIGN="CENTER">Outstanding at March 31, 2000</U></TD>
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<TR><TD WIDTH="47%" VALIGN="TOP" COLSPAN=4 HEIGHT=22>
<P ALIGN="CENTER">Common Stock, $1 par value</TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=22><P></P></TD>
<TD WIDTH="50%" VALIGN="TOP" COLSPAN=5 HEIGHT=22>
<P ALIGN="CENTER">118,530,802</TD>
</TR>
</TABLE>

<P ALIGN="CENTER">TABLE OF CONTENTS</P>

<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=594>
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<P>PART I - Financial Information</TD>
<TD WIDTH="8%" VALIGN="TOP">
<U><P ALIGN="RIGHT">Page</U></TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P>  Item 1. - Consolidated Financial Statements+</TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff"> </TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP">
<P><A HREF="#INCOME">    Consolidated Statements of Earnings and Retained Income</TD>
<TD WIDTH="8%" VALIGN="TOP">
<P ALIGN="RIGHT">2</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P><A HREF="#BALANCE">    Consolidated Balance Sheets </TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff">
<P ALIGN="RIGHT">3</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP">
<P><A HREF="#CASH">    Consolidated Statements of Cash Flows</TD>
<TD WIDTH="8%" VALIGN="TOP">
<P ALIGN="RIGHT">4</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P><A HREF="#NOTES">    Notes to Consolidated Financial Statements</TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff">
<P ALIGN="RIGHT">5</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP">
<P><A HREF="#ORGANIZATION">      (1)  Organization and Segment Information</TD>
<TD WIDTH="8%" VALIGN="TOP">
<P ALIGN="RIGHT">5</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P><A HREF="#SUMMARY">      (2)  Summary of Significant Accounting Policies </TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff">
<P ALIGN="RIGHT">8</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP">
<P><A HREF="#C&C">      (3)  Commitments and Contingencies </TD>
<TD WIDTH="8%" VALIGN="TOP">
<P ALIGN="RIGHT">9</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P><A HREF="#INTERIM">    Report of Independent Accountants on Review of Interim Financial Information</TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff">
<P ALIGN="RIGHT">11</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP">
<P>  Item 2. - Management's Discussion and Analysis of Consolidated Results of <BR>
                Operations and Financial Condition</TD>
<TD WIDTH="8%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P><A HREF="#SAFE">    Safe Harbor Statements</TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff">
<P ALIGN="RIGHT">12</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP">
<P><A HREF="#OPS">    Consolidated Results of Operations</TD>
<TD WIDTH="8%" VALIGN="TOP">
<P ALIGN="RIGHT">13</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P><A HREF="#CAPITAL">    Capital Resources and Liquidity</TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff">
<P ALIGN="RIGHT">18</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP">
<P><A HREF="#RISK">  Item 3. - Quantitative and Qualitative Disclosures About Market Risk</TD>
<TD WIDTH="8%" VALIGN="TOP">
<P ALIGN="RIGHT">19</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P>PART II - Other Information</TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff"> </TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP">
<P><A HREF="#LEGAL">  Item 1. - Legal Proceedings</TD>
<TD WIDTH="8%" VALIGN="TOP">
<P ALIGN="RIGHT">19</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P><A HREF="#VOTE">  Item 4. - Submission of Matters to a Vote of Security Holders</TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff">
<P ALIGN="RIGHT">19</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP">
<P><A HREF="#OTHER">  Item 5. - Other Information</TD>
<TD WIDTH="8%" VALIGN="TOP">
<P ALIGN="RIGHT">20</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P><A HREF="#EXHIBITS">  Item 6. - Exhibits and Reports on Form 8-K</TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff">
<P ALIGN="RIGHT">23</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP">
<P><A HREF="#SIGNATURES">  Signatures</TD>
<TD WIDTH="8%" VALIGN="TOP">
<P ALIGN="RIGHT">24</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P><A HREF="#CRU">  Computation of Ratios - Utility Operations Only</TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff">
<P ALIGN="RIGHT">25</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP">
<P><A HREF="#CRC">  Computation of Ratios - Consolidated Basis</TD>
<TD WIDTH="8%" VALIGN="TOP">
<P ALIGN="RIGHT">26</TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" BGCOLOR="#ffffff">
<P><A HREF="#LETTER">  Independent Accountants Awareness Letter</TD>
<TD WIDTH="8%" VALIGN="TOP" BGCOLOR="#ffffff">
<P ALIGN="RIGHT">27</TD>
</TR>
</TABLE>


<P> </P><Table border=0>
<TR VALIGN="bottom">
<TD ALIGN="left"><A NAME="INCOME"><FONT FACE="Arial" SIZE=+1><B><U>Part I </U>     <U>FINANCIAL INFORMATION</U>
</B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=+1><B><U>Item 1.</U>    <U>CONSOLIDATED FINANCIAL STATEMENTS</U>
</B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR ALIGN="center" VALIGN="bottom">
<TD COLSPAN=5><FONT FACE="Arial" SIZE=+1><B>POTOMAC ELECTRIC POWER COMPANY AND SUBSIDIARIES</B></FONT></TD>
</TR>
<TR ALIGN="center" VALIGN="bottom">
<TD COLSPAN=5><FONT FACE="Arial" SIZE=+1><B>CONSOLIDATED STATEMENTS OF EARNINGS AND RETAINED INCOME</B></FONT></TD>
</TR>
<TR ALIGN="center" VALIGN="bottom">
<TD COLSPAN=5><FONT FACE="Arial" SIZE=+1><B>(Unaudited)</B></FONT></TD>
</TR>
<TR ALIGN="center" VALIGN="bottom">
<TD><FONT FACE="Arial" SIZE=+1><B> </B></FONT></TD>
<TD COLSPAN=2><FONT FACE="Arial">Three Months Ended</FONT></TD>
<TD COLSPAN=2><FONT FACE="Arial">Twelve Months Ended</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD COLSPAN=2 ALIGN="center"><FONT FACE="Arial">March 31, </FONT></TD>
<TD COLSPAN=2 ALIGN="center"><FONT FACE="Arial">March 31, </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">2000</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1999</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">2000</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1999</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"><I> </I></FONT></TD>
<TD COLSPAN=4 ALIGN="center"><FONT FACE="Arial"><I>(Millions of Dollars, except per share data)</I></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Operating Revenue</B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Utility</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $      441.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $      453.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $  2,207.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $  2,140.5 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Nonregulated</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">88.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">59.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">285.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">175.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">        Total Operating Revenue</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.0_)[semicolon]_(* (#,##0.0)[semicolon]_(* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial">         529.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.0_)[semicolon]_(* (#,##0.0)[semicolon]_(* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial">         512.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.0_)[semicolon]_(* (#,##0.0)[semicolon]_(* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial">      2,493.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.0_)[semicolon]_(* (#,##0.0)[semicolon]_(* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial">      2,315.5 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Operating Expenses</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Fuel and purchased energy</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">248.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">215.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,059.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">871.5 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Other operation and maintenance</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">95.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">92.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">403.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">382.4 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Depreciation and amortization</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">67.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">67.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">272.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">265.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Other taxes </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">45.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">44.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">202.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">202.6 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Interest </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">51.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">48.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">198.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">195.4 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">       Total Operating Expenses</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">508.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">467.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">2,136.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,917.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Loss from Equity Investments, principally<BR>
        Telecommunication Entities</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.0_)[semicolon](0.0)"><FONT FACE="Arial">(3.9)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.0_)[semicolon](0.0)"><FONT FACE="Arial">(3.1)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.0_)[semicolon](0.0)"><FONT FACE="Arial">(10.4)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.0_)[semicolon](0.0)"><FONT FACE="Arial">(11.4)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Pre-tax Income</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">16.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">41.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">346.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">387.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Distributions on Preferred Securities of Subsidiary Trust</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">2.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">2.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">9.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">8.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Income Tax Expense</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">4.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">13.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">105.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">134.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Net Income</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">9.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">26.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">230.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">244.8 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Dividends on Preferred Stock</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">2.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">7.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">9.3 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Redemption Premium/Expenses on Preferred Stock</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> -</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> -</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">6.6 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Earnings Available for Common Stock</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">8.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">24.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">222.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">228.9 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Retained Income at Beginning of Period</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">779.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">747.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">721.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">690.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Dividends on Common Stock</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(49.2)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(49.2)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(196.7)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(196.7)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Nonregulated Subsidiary Marketable Securities,<BR>
       Net Unrealized Loss, Net of Tax</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(4.7)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(0.2)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(14.0)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(0.5)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>Retained Income at End of Period</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $      733.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $      721.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $      733.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $      721.9 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Basic Average Common Shares Outstanding</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">118.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">118.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">118.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">118.5 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Basic Earnings Per Share of Common Stock</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial">$0.07 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial">$0.20 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial">$1.88 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial">$1.93 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Diluted Average Common Shares Outstanding</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">118.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">118.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">122.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">124.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Diluted Earnings Per Share of Common Stock</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial">$0.07 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial">$0.20 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial">$1.85 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial">$1.89 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Cash Dividends Per Share of Common Stock</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.000_)[semicolon]($#,##0.000)"><FONT FACE="Arial">$0.415 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.000_)[semicolon]($#,##0.000)"><FONT FACE="Arial">$0.415 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial">$1.66 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial">$1.66 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Effective Federal Income Tax Rate</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.0%"><FONT FACE="Arial">27.8%</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.0%"><FONT FACE="Arial">32.2%</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.00_)[semicolon]_($* (#,##0.00)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.00_)[semicolon]_($* (#,##0.00)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.00_)[semicolon]_($* (#,##0.00)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:_($* #,##0.00_)[semicolon]_($* (#,##0.00)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR ALIGN="left" VALIGN="bottom">
<TD COLSPAN=5><FONT FACE="Arial" SIZE=-1>The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.</FONT></TD>
</TR>
</TABLE>


<P><Table border=0>
<TR ALIGN="center" VALIGN="bottom">
<TD COLSPAN=4><A NAME="BALANCE"><FONT FACE="Arial"><B>POTOMAC ELECTRIC POWER COMPANY AND SUBSIDIARIES</B></FONT></TD>
</TR>
<TR ALIGN="center" VALIGN="bottom">
<TD COLSPAN=4><FONT FACE="Arial"><B>CONSOLIDATED BALANCE SHEETS</B></FONT></TD>
</TR>
<TR ALIGN="center" VALIGN="bottom">
<TD COLSPAN=4><FONT FACE="Arial"><B>(Unaudited at March 31, 2000 and 1999)</B></FONT></TD>
</TR>
<TR ALIGN="center" VALIGN="bottom">
<TD><FONT FACE="Arial" SIZE=+1><B> </B></FONT></TD>
<TD><FONT FACE="Arial" SIZE=+1><B> </B></FONT></TD>
<TD><FONT FACE="Arial" SIZE=+1><B> </B></FONT></TD>
<TD><FONT FACE="Arial" SIZE=+1><B> </B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">March 31, </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial">December 31, </FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">March 31, </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">2000</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1999</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1999</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B><U>ASSETS</U></B></FONT></TD>
<TD COLSPAN=3 ALIGN="center"><FONT FACE="Arial"><I>(Millions of Dollars)</I></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>CURRENT ASSETS</B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Cash and cash equivalents</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $              29.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $              98.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $              91.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Marketable securities </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">199.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">203.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">232.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Accounts receivable, less allowance for uncollectible <BR>
         accounts of $8.2, $8.0, and $7.3</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">347.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">295.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">273.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Fuel, materials and supplies - at average cost</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">181.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">192.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">122.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Prepaid expenses</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">35.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">35.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">20.5 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">          Total Current Assets</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">792.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">824.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">739.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>INVESTMENTS AND OTHER ASSETS</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Investment in finance leases<I> </I>
</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">659.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">664.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">395.6 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Operating lease equipment - net of accumulated<BR>
         depreciation of $118.9, $113.9, and $125.9</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">72.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">77.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">116.8 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Regulatory assets</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">404.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">411.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">447.9 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Other</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">398.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">407.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">343.9 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">         Total Investments and Other Assets</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,535.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,561.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,304.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>PROPERTY, PLANT AND EQUIPMENT </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Property, plant and equipment</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">6,831.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">6,784.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">6,690.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Accumulated depreciation </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(2,294.2)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(2,259.9)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(2,173.2)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">         Net Property, Plant and Equipment</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.0_)[semicolon]_(* (#,##0.0)[semicolon]_(* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial">           4,537.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.0_)[semicolon]_(* (#,##0.0)[semicolon]_(* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial">           4,524.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.0_)[semicolon]_(* (#,##0.0)[semicolon]_(* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial">           4,517.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.0_)[semicolon]_(* (#,##0.0)[semicolon]_(* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.0_)[semicolon]_(* (#,##0.0)[semicolon]_(* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.0_)[semicolon]_(* (#,##0.0)[semicolon]_(* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>         TOTAL ASSETS</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        6,865.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        6,910.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        6,560.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B><U>LIABILITIES AND SHAREHOLDERS' EQUITY</U></B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>CURRENT LIABILITIES</B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Short-term debt </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $           382.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $           347.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $           290.6 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Accounts payable and accrued payroll</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">215.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">239.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">125.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Capital lease obligations due within one year</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">20.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">20.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">20.8 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Interest and taxes accrued</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">62.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">85.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">86.6 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Other</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">136.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">91.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">121.4 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">          Total Current Liabilities</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">818.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">783.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">644.5 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>DEFERRED CREDITS</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Income taxes </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,050.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,052.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,009.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Investment tax credits </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">49.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">50.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">52.7 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Other </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">21.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">22.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">24.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">         Total Deferred Credits</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,121.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,124.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,086.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>LONG-TERM DEBT AND CAPITAL LEASE OBLIGATIONS</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">2,840.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">2,867.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">2,702.6 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>COMPANY OBLIGATED MANDATORILY REDEEMABLE PREFERRED SECURITIES<BR>
      OF SUBSIDIARY TRUST WHICH HOLDS SOLELY PARENT JUNIOR<BR>
      SUBORDINATED DEBENTURES</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">125.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">125.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">125.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>PREFERRED STOCK</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Serial preferred stock </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">44.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">50.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">100.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Redeemable serial preferred stock<I> </I>
</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">50.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">50.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">50.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">         Total Preferred Stock</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">94.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">100.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">150.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>COMMITMENTS AND CONTINGENCIES</B><I> </I>
</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>SHAREHOLDERS' EQUITY<I> </I>
</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Common stock, $1 par value - authorized 200,000,000 shares,<BR>
         issued 118,530,802, 118,530,802, and 118,527,287 shares, respectively</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">118.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">118.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">118.5 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Premium on stock and other capital contributions</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,026.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,025.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,025.3 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Capital stock expense</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(12.8)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(12.9)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(13.7)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Accumulated other comprehensive (loss) income</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(6.4)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(1.8)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">7.6 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">    Retained income</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">740.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">781.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">714.3 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">         Total Shareholders' Equity</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,865.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,910.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1,852.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>         TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        6,865.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        6,910.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        6,560.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="center" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR ALIGN="left" VALIGN="bottom">
<TD COLSPAN=4><FONT FACE="Arial" SIZE=-1>The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.</FONT></TD>
</TR>
</TABLE></p>


<P><Table border=0>
<TR ALIGN="center" VALIGN="bottom">
<TD COLSPAN=5><A NAME="CASH"><FONT FACE="Arial"><B>POTOMAC ELECTRIC POWER COMPANY AND SUBSIDIARIES</B></FONT></TD>
</TR>
<TR ALIGN="center" VALIGN="bottom">
<TD COLSPAN=5><FONT FACE="Arial"><B>CONSOLIDATED STATEMENTS OF CASH FLOWS</B></FONT></TD>
</TR>
<TR ALIGN="center" VALIGN="bottom">
<TD COLSPAN=5><FONT FACE="Arial"><B>(Unaudited)</B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD COLSPAN=2 ALIGN="center"><FONT FACE="Arial">Three Months Ended</FONT></TD>
<TD COLSPAN=2 ALIGN="center"><FONT FACE="Arial">Twelve Months Ended</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD COLSPAN=2 ALIGN="center"><FONT FACE="Arial">March 31,</FONT></TD>
<TD COLSPAN=2 ALIGN="center"><FONT FACE="Arial">March 31,</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">2000</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1999</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">2000</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1999</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"><I> </I></FONT></TD>
<TD COLSPAN=4 ALIGN="center"><FONT FACE="Arial"><I>(Millions of Dollars)</I></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>OPERATING ACTIVITIES</B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon][Red](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon][Red](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Net income </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $          9.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        26.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $      230.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $      244.8 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Adjustments to reconcile net income to net cash<BR>
     from operating activities:</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">         Depreciation and amortization</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">67.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">67.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">272.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">265.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">         Changes in:</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">          Accounts receivable and unbilled revenue</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(30.2)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">7.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(84.3)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(18.3)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">          Fuel, materials and supplies</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">10.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(0.2)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(59.1)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">3.4 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">          Regulatory assets</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(5.9)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(4.2)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(8.3)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(21.3)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">          Contract termination fee</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(0.4)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(23.4)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(1.5)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(23.4)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">          Accounts payable</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(23.1)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">2.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">65.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(16.0)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">          Net other operating activities</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(7.1)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">7.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">7.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">32.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Net Cash From Operating Activities</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">21.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">83.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">423.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">466.4 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>INVESTING ACTIVITIES</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Net investment in property, plant and equipment</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(53.7)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(39.7)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(214.3)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(209.1)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Proceeds from:</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">      Purchase of marketable securities, net of sales or redemption</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(3.1)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(1.6)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">10.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">34.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">      Sale of leased equipment, net of additions</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">40.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> -</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">60.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">94.9 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">      Purchases of other investments, net of sales or distribution</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(28.3)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(5.8)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(288.0)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">13.5 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">      Gain from liquidation of partnership, net of proceeds</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> -</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(1.1)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> -</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(1.1)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Net Cash Used by Investing Activities</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(44.4)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(48.2)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(432.1)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(67.6)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>FINANCING ACTIVITIES</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Dividends on preferred and common stock</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(50.6)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(51.2)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(204.0)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(206.0)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Redemption of preferred stock</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(5.5)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial">                - </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(56.5)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(123.6)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Issuance of mandatorily redeemable preferred securities</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial">                - </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial">                - </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial">                - </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">125.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Reacquisition of long-term debt, net of issuances</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(106.9)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">204.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(99.4)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">219.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Issuance of short-term debt, net of repayments</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">115.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(181.7)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">305.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(328.2)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Other financing activities</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(1.5)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">1.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(4.5)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Net Cash Used by Financing Activities</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(46.3)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(30.0)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(53.7)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(318.3)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Net (Decrease) Increase In Cash and Cash Equivalents</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(69.7)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">5.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(62.1)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">80.5 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Cash and Cash Equivalents at Beginning of Year</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">98.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">86.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">91.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">10.6 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B>CASH AND CASH EQUIVALENTS AT END OF YEAR</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        29.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        91.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        29.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        91.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"><B> </B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Cash paid for interest (net of capitalized interest of $.8,<BR>   $.2, $2.4
and $.6) and income taxes:</FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">      Interest </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        45.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        63.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $      176.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $      194.5 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">      Income taxes paid (received)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $          0.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $         (7.2)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        36.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial"> $        61.6 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR ALIGN="left" VALIGN="bottom">
<TD COLSPAN=5><FONT FACE="Arial" SIZE=-1>The accompanying Notes to Consolidated Financial Statements are an integral part of these Consolidated Financial Statements.</FONT></TD>
</TR>
</TABLE></p>
</P>

<U><P><A NAME="NOTES">NOTES TO CONSOLIDATED FINANCIAL STATEMENTS</U><BR>
<BR>
          For additional information, other than the information discussed in the Notes to <BR>
Consolidated Financial Statements section herein, refer to Item 8. Financial Statements <BR>
and Supplementary Data of the Company's 1999 Form 10-K.<BR>
<BR>
(1)     <U>Organization and Segment Information</U><BR>
<BR>
<A NAME="ORGANIZATION"><U>Organization<BR>
<BR>
</U>          Potomac Electric Power Company (Pepco, or the Company) is engaged in <BR>
regulated utility operations (the Utility) and in diversified, competitive energy and <BR>
telecommunications businesses through its wholly owned nonregulated subsidiary, Pepco <BR>
Holdings, Inc. (PHI).  PHI was created in 1999 as the parent company of its two wholly <BR>
owned subsidiaries, Potomac Capital Investment Corporation (PCI) and Pepco Energy <BR>
Services, Inc. (Pepco Energy Services).  Additionally, Potomac Electric Power Company <BR>
Trust I (the Trust), a Delaware statutory business trust, is a wholly owned subsidiary of <BR>
the Company.<BR>
<BR>
          The Utility is currently engaged in the generation, transmission, distribution, and <BR>
sale of electric energy in the Washington, D.C. metropolitan area.  The Utility's retail <BR>
service territory includes all of the District of Columbia and major portions of <BR>
Montgomery and Prince George's counties in suburban Maryland.  In addition, the Utility <BR>
currently supplies electricity, at wholesale, under a full-requirements agreement with <BR>
Southern Maryland Electric Cooperative, Inc. (SMECO) that expires in December 2000. <BR>
Thereafter, Pepco Energy Services will continue to supply full-requirements electricity to <BR>
SMECO pursuant to a competitively awarded four-year contract commencing in January <BR>
2001.  The Utility also delivers economy energy to the Pennsylvania-New Jersey-<BR>
Maryland Interconnection LLC (PJM) of which it is a member.<BR>
<BR>
          The Company's business plan is to exit the electricity generating business by <BR>
divesting substantially all of its generating assets through an open auction process.  The <BR>
Utility's operations would then consist of its regulated transmission and distribution <BR>
services.  The Company will compete for market share throughout the mid-Atlantic <BR>
region in the deregulated electricity, natural gas, and telecommunications markets <BR>
through its nonregulated subsidiaries.  During December 1999, the Maryland and District <BR>
of Columbia Public Service Commissions (Maryland Commission and D.C. Commission, <BR>
respectively) approved the Company's plan to sell, via auction, substantially all of its <BR>
plants, facilities and equipment used in the generation of electricity, its purchased <BR>
capacity contracts, and its other rate-based assets that are not required for the provision of <BR>
electric transmission and distribution services.  The auction process is well underway and <BR>
a short list of bidders has been selected.  Selection of the winning bidder(s) is expected <BR>
by mid-2000 with the divestiture expected to be completed by year-end 2000.  After all <BR>
customer sharing, if any, as provided in the Maryland and D.C. Commissions' divestiture <BR>
orders, and payment of any income tax obligations, the Company will use the balance of <BR>
funds remaining to further its business strategies and/or to reduce its capital structure. <BR>
The amounts applied by the Company to each of these purposes will depend on an <BR>
economic evaluation of the reinvestment opportunities available.  For additional <BR>
information about the divestiture, refer to Note (3) Commitments and Contingencies of <BR>
the Notes to Consolidated Financial Statements.<BR>
<BR>
          Maryland customers will have their choice of electricity suppliers beginning July 1, <BR>
2000.  In D.C., legislation providing similar customer choice beginning on January 1, <BR>
2002, was enacted by the City Council in December 1999 and is pending approval by the <BR>
D.C. Control Board.  The D.C. Commission has approved a customer choice plan <BR>
providing that customers will have their choice of electricity suppliers beginning January <BR>
1, 2001.  This customer choice plan is consistent with the pending legislation.<BR>
<BR>
<U>Segment Information</U><BR>
<BR>
          The Company has identified the Utility's operations including the Trust (Utility <BR>
Segment) and PHI's operations (Nonregulated Segment) as its two reportable segments.  <BR>
The following tables present condensed financial information for the three and twelve <BR>
months ended March 31, 2000 and 1999, respectively.<BR>
</P>

<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=601>
<TR><TD WIDTH="42%" VALIGN="TOP"> </TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=5>
<U><P ALIGN="CENTER">         Nonregulated Segment         </U></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP"> </TD>
<TD WIDTH="11%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="CENTER">Pepco </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="11%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP"> </TD>
<TD WIDTH="11%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="CENTER">Energy</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="CENTER">Total</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="CENTER">Total</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP"> </TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="CENTER"> Utility </U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="CENTER">   PCI   </U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="CENTER">Services</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="CENTER">   PHI   </U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="CENTER">  Pepco </U></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<U><P>Three Months Ended</U>:</TD>
<TD WIDTH="58%" VALIGN="TOP" COLSPAN=5>
<P ALIGN="CENTER">(Unaudited, In Millions of Dollars)<BR>
</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<U><P>March 31, 2000<BR>
</U></TD>
<TD WIDTH="11%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="11%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Operating Revenue</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">$441.1</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">  $44.4</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$43.7</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">  $88.1</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">$529.2</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Operating Expenses</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">  433.6</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">27.5</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">47.6</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">75.1</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">508.7</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>(Loss) Income from Equity<BR>
  Investments, principally<BR>
  Telecommunication Entities</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
        </U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
  (4.1</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
     .2</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
  (3.9</U>)</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
     (3.9</U>)</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Pre-Tax Income (Loss)</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">7.5</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">12.8</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">(3.7)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">9.1</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">16.6</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Distributions on Preferred Securities<BR>
  of Subsidiary Trust</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
2.3</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"></P>
<P ALIGN="RIGHT">          -</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
          -</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
          -</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
2.3</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Income Tax Expense (Benefit)</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">      1.9</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">   4.0</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">  (1.3</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">   2.7</U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">      4.6</U></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Net Income (Loss)</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$    3.3</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 8.8</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$(2.4</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 6.4</U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$    9.7</U></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP"> </TD>
<TD WIDTH="11%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="11%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<U><P>March 31, 1999<BR>
</U></TD>
<TD WIDTH="11%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="11%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Operating Revenue</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">$453.0</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$36.7</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$22.3</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$59.0</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">$512.0</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Operating Expenses</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">415.3</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">28.0</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">24.3</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">52.3</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">467.6</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Loss from Equity Investments,<BR>
  principally Telecommunication<BR>
  Entities</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
</U> <U>         -</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
  (3.1</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
</U>   <U>       -</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
  (3.1</U>)</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
    (3.1</U>)</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Pre-Tax Income (Loss)</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">37.7</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">5.6</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">(2.0)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">3.6</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT">41.3</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Distributions on Preferred Securities<BR>
  of Subsidiary Trust</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
2.3</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
          - </TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
          -</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
          -</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
2.3</TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Income Tax Expense (Benefit)</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">    13.9</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">    (.2</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">    (.7</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">    (.9</U>)</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">   13.0</U></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP">
<P>Net Income (Loss)</TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$  21.5</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 5.8</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$(1.3</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 4.5</U></TD>
<TD WIDTH="11%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 26.0</U></TD>
</TR>
<TR><TD WIDTH="42%" VALIGN="TOP"> </TD>
<TD WIDTH="11%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="11%" VALIGN="TOP"> </TD>
</TR>
</TABLE>


<P> </P>
<TABLE BORDER CELLSPACING=1 CELLPADDING=7 WIDTH=619>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="59%" VALIGN="TOP" COLSPAN=5>
<U><P ALIGN="CENTER">         Nonregulated Segment        </U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="CENTER">Pepco </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="CENTER">Energy</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="CENTER">Total</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="CENTER">Total</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="CENTER"> Utility </U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="CENTER">   PCI   </U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="CENTER">Services</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="CENTER">   PHI   </U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="CENTER">  Pepco </U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<U><P>Twelve Months Ended</U>:</TD>
<TD WIDTH="59%" VALIGN="TOP" COLSPAN=5>
<P ALIGN="CENTER">(Unaudited, In Millions of Dollars)<BR>
</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<U><P>March 31, 2000<BR>
</U></TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Operating Revenue</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$2,207.3</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">  $131.2</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$154.7</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">  $285.9</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$2,493.2</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Operating Expenses</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">  1,857.8</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">110.0</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">169.0</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">279.0</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">2,136.8</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>(Loss) Income from Equity<BR>
  Investments, principally<BR>
  Telecommunication Entities</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
</U>            -</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
  (11.3</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
       .9</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
  (10.4</U>)</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
     (10.4</U>)</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Pre-Tax Income (Loss)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">349.5</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">9.9</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">(13.4)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">(3.5)</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">346.0</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Distributions on Preferred Securities<BR>
  of Subsidiary Trust</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
9.3</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
<P ALIGN="RIGHT">           -</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
            -</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
           -</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
9.3</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Income Tax Expense (Benefit)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">     130.4</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">   (19.8</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">    (4.7</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">  (24.5</U>)</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">     105.9</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Net Income (Loss)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$   209.8</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$  29.7</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$  (8.7</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 21.0</U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$   230.8</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<U><P>March 31, 1999<BR>
</U></TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Operating Revenue</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$2,140.5</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$127.1</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$ 47.9</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">$175.0</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">$2,315.5</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Operating Expenses</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">1,757.6</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">107.9</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">51.6</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">159.5</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">1,917.1</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Loss from Equity Investments,<BR>
  principally Telecommunication<BR>
  Entities</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
</U> <U>            -</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
  (11.4</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
        -</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
  (11.4</U>)</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT"><BR>
<BR>
      (11.4</U>)</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Pre-Tax Income (Loss)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">382.9</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">7.8</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">(3.7)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT">4.1</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">387.0</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Distributions on Preferred Securities<BR>
  of Subsidiary Trust</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
8.0</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
          - </TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
          -</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
          -</TD>
<TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT"><BR>
8.0</TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Income Tax Expense (Benefit)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">     143.4</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">    (7.9</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">    (1.3</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">    (9.2</U>)</TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">     134.2</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP">
<P>Net Income (Loss)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$   231.5</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 15.7</U></TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$  (2.4</U>)</TD>
<TD WIDTH="12%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$ 13.3</U></TD>
<TD WIDTH="13%" VALIGN="TOP">
<U><P ALIGN="RIGHT">$   244.8</U></TD>
</TR>
<TR><TD WIDTH="41%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
<TD WIDTH="13%" VALIGN="TOP"> </TD>
</TR>
</TABLE>


<P><A NAME="SUMMARY">(2)     <U>Summary of Significant Accounting Policies<BR>
</U><BR>
<U>Basis of Presentation</U><BR>
<BR>
          The information furnished in the accompanying consolidated financial statements <BR>
reflects all adjustments (which consist only of normal recurring accruals) which are, in <BR>
the opinion of management, necessary for a fair presentation of the Company's results of <BR>
operations for the interim periods presented.  The accompanying consolidated financial <BR>
statements and notes thereto should be read in conjunction with the Company's 1999 <BR>
Form 10-K.<BR>
</P>
<P>          Prior period amounts have been reclassified in order to conform to the current <BR>
period presentation and to present financial data for PCI and Pepco Energy Services on a <BR>
comparable basis given the formation of PHI in 1999.<BR>
<BR>
<U>Comprehensive Income</U><BR>
<BR>
          The Company's components of comprehensive income are net income, and <BR>
unrealized gains and losses on marketable securities.  Comprehensive income was $5.0 <BR>
million and $216.8 million for the three and twelve months ended March 31, 2000, <BR>
compared to $25.8 million and $244.3 million for the corresponding periods ended March <BR>
31, 1999.<BR>
<BR>
<A NAME="C&C">(3)     <U>Commitments and Contingencies</U><BR>
<BR>
<U>Proposed Divestiture of Generating Assets</U><BR>
<BR>
          On March 31, 2000, the Maryland Commission approved the second amendment to <BR>
the Company's divestiture plan in Maryland.  This amendment provides for a $3 million <BR>
annual reduction in the Distribution Service rates for the Company's commercial <BR>
customers in Maryland, effective July 1, 2000, to be implemented in the same manner as <BR>
the residential rate reduction specified in the original Maryland divestiture plan.  <BR>
Additionally, the amendment provides for the discontinuation of the Company's <BR>
Maryland Demand Side Management (DSM) Surcharge, effective July 1, 2000.  The <BR>
actual balance of the remaining cost components of the current DSM Surcharge as of <BR>
June 30, 2000, together with the Company's estimate of additional DSM expenditures to <BR>
be incurred under existing programs during the three-year transition period, will be <BR>
treated as transition costs to be recovered from the proceeds of the sale of the generation <BR>
assets, or if those proceeds are insufficient, from a Competitive Transition Charge to be <BR>
established in accordance with the terms of the original divestiture plan in Maryland.  <BR>
These DSM costs are estimated to total approximately $19 million.<BR>
<BR>
<U>Oil Spill at the Chalk Point Generating Station</U><BR>
<BR>
          On April 7, 2000, approximately 110,000 gallons of oil leaked from the Company's <BR>
pipeline at its Chalk Point Generating Station in Aquasco, Maryland.  The pipeline is <BR>
operated by Support Terminals Services Operating Partnership LP, an unaffiliated <BR>
pipeline management company.  The oil spread from Swanson Creek to the Patuxent <BR>
River and several of its tributaries.  The area affected covers portions of seventeen miles <BR>
of shoreline along the Patuxent River and approximately 45 acres of marshland located <BR>
on and adjacent to the Company's property.  Cleanup operations have been underway <BR>
since the leak was discovered.  The 51-mile pipeline, which transports oil to the <BR>
Company's Chalk Point and Morgantown plants, has been shut down by the Office of <BR>
Pipeline Safety, a unit of the federal government's Department of Transportation until a <BR>
plan of corrective measures to prevent a reoccurrence of the spill is approved.  However, <BR>
the plants remain fully operational and are being operated using coal and natural gas.<BR>
<BR>
          The Company has been working under the direction of the Environmental <BR>
Protection Agency since the spill was reported and has been joined in the cleanup effort <BR>
with officials from other federal, state, county and local government agencies.<BR>
<BR>
          The total cost to the Company, net of insurance recovery, cannot be determined at <BR>
this time; however, based on information known at this time, the Company does not <BR>
believe the costs of cleanup, associated claims, or any resulting fines or penalties will <BR>
have a material adverse effect on its financial position.  However, depending upon the <BR>
outcome of insurance claims, the cost of remediation, along with any damage claims, <BR>
fines and penalties could have a material adverse effect on the Company's results of <BR>
operations in the year in which such expenses are incurred.<BR>
<BR>
          As a result of the oil spill, three class action lawsuits have been filed against the <BR>
Company.  At this early stage, no determination has been made as to the merits of the <BR>
claims.<BR>
<BR>
<U>NPDES Permits<BR>
</U><BR>
          The Company's generating stations operate under National Pollutant Discharge <BR>
Eliminating System (NPDES) permits. NPDES permits were issued for the Potomac <BR>
River station in February 1994, the Morgantown station in February 1995, the Dickerson <BR>
station in August 1996, and the Chalk Point station in September 1996.  NPDES renewal <BR>
applications were submitted in July 1993 for the Benning station, in August 1998 for the <BR>
Potomac River station, and in August 1999 for the Morgantown station.  At March 31, <BR>
2000, resolution of these applications is pending.<BR>
<BR>
<BR>
* * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * <BR>
<BR>
          This Quarterly Report on Form 10-Q, including the report of <BR>
PricewaterhouseCoopers LLP on review of unaudited interim financial information dated <BR>
May 11, 2000 will automatically be incorporated by reference in the Prospectuses <BR>
constituting parts of the Company's Registration Statements on Form S-3 (Number <BR>
33-58810) and Forms S-8 (Numbers 33-36798, 33-53685, 33-54197, 333-56683 and <BR>
333-57221), filed under the Securities Act of 1933.  Such report of <BR>
PricewaterhouseCoopers LLP, however, is not a "report" or "part of the Registration <BR>
Statement" within the meaning of Sections 7 and 11 of the Securities Act of 1933 and the <BR>
liability provisions of Section 11(a) of such Act do not apply.<BR>
</P>
<P><A NAME="INTERIM">Report of Independent Accountants<BR>
<BR>
<BR>
<BR>
To the Board of Directors<BR>
and Shareholders of<BR>
Potomac Electric Power Company<BR>
<BR>
We have reviewed the accompanying consolidated balance sheets of Potomac Electric <BR>
Power Company and its consolidated subsidiaries (the Company) as of March 31, 2000 <BR>
and 1999, and the related consolidated statements of earnings and retained income for the <BR>
three and twelve month periods then ended and the consolidated statements of cash flows <BR>
for the three and twelve month periods then ended.  These financial statements are the <BR>
responsibility of the Company's management.<BR>
<BR>
We conducted our review in accordance with standards established by the American <BR>
Institute of Certified Public Accountants.  A review of interim financial information <BR>
consists principally of applying analytical procedures to financial data and making <BR>
inquiries of persons responsible for financial and accounting matters. It is substantially <BR>
less in scope than an audit conducted in accordance with generally accepted auditing <BR>
standards, the objective of which is the expression of an opinion regarding the financial <BR>
statements taken as a whole.  Accordingly, we do not express such an opinion.<BR>
<BR>
Based on our review, we are not aware of any material modifications that should be made <BR>
to the accompanying consolidated interim financial information for it to be in conformity <BR>
with generally accepted accounting principles.<BR>
<BR>
We have previously audited, in accordance with generally accepted auditing standards, <BR>
the consolidated balance sheet as of December 31, 1999, and the related consolidated <BR>
statements of earnings and consolidated statement of cash flows for the year then ended <BR>
(not presented herein); and in our report dated January 21, 2000, we expressed an <BR>
unqualified opinion on those consolidated financial statements.  In our opinion, the <BR>
information set forth in the accompanying consolidated balance sheet information as of <BR>
December 31, 1999, is fairly stated, in all material respects, in relation to the consolidated <BR>
balance sheet from which it has been derived.<BR>
<BR>
<BR>
PRICEWATERHOUSECOOPERS LLP<BR>
PricewaterhouseCoopers LLP <BR>
Washington, D.C.<BR>
May 11, 2000<BR>
</P>
<U><P>Item 2</U>.      <U>MANAGEMENT'S DISCUSSION AND ANALYSIS OF CONSOLIDATED</U> <BR>
                     <U>RESULTS OF OPERATIONS AND FINANCIAL CONDITION<BR>
</U><BR>
          For additional information, other than the information disclosed in the <BR>
Management's Discussion and Analysis of Consolidated Results of Operations and <BR>
Financial Condition section herein, refer to Item 7. Management's Discussion and <BR>
Analysis of Financial Condition and Results of Operations of the Company's 1999 Form <BR>
10-K.<BR>
<BR>
<A NAME="SAFE"><U>Safe Harbor Statements</U><BR>
<BR>
          In connection with the safe harbor provisions of the Private Securities Litigation <BR>
Reform Act of 1995 (Reform Act), the Company is hereby filing cautionary statements <BR>
identifying important factors that could cause actual results to differ materially from <BR>
those projected in forward-looking statements (as such term is defined in the Reform Act) <BR>
made in this report on Form 10-Q.  Any statements that express, or involve discussions as <BR>
to expectations, beliefs, plans, objectives, assumptions or future events or performance <BR>
are not statements of historical facts and may be forward-looking.<BR>
<BR>
          Forward-looking statements involve estimates, assumptions and uncertainties and <BR>
are qualified in their entirety by reference to, and are accompanied by, the following <BR>
important factors, which are difficult to predict, contain uncertainties, are beyond the <BR>
control of the Company and may cause actual results to differ materially from those <BR>
contained in forward-looking statements:<BR>
</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=590>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>prevailing governmental policies and regulatory actions, including those of the <BR>
Federal Energy Regulatory Commission (FERC) and the Maryland and D.C. <BR>
Commissions, with respect to allowed rates of return, industry and rate structure, <BR>
acquisition and disposal of assets and facilities, operation and construction of plant <BR>
facilities, recovery of purchased power expenses, and present or prospective <BR>
wholesale and retail competition (including but not limited to retail wheeling and <BR>
transmission costs);<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>changes in and compliance with environmental and safety laws and policies;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>weather conditions;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>population growth rates and demographic patterns;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>competition for retail and wholesale customers;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>growth in demand, sales and capacity to fulfill demand;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>changes in tax rates or policies or in rates of inflation;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>changes in projects costs;</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>unanticipated changes in operating expenses and capital expenditures;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>capital market conditions;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>competition for new energy development opportunities and other opportunities;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>legal and administrative proceedings (whether civil or criminal) and settlements <BR>
that influence the business and profitability of the Company;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>pace of entry into new markets;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>time and expense required for building out the planned Starpower network;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>success in marketing services;<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>possible development of alternative technologies; <BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>the ability to secure electric and gas supply to fulfil sales commitments at favorable <BR>
prices, and<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="94%" VALIGN="TOP">
<P>the cost of fuel.<BR>
</TD>
</TR>
</TABLE>

<P>          Any forward-looking statements speak only as of May 11, 2000, and the Company <BR>
undertakes no obligation to update any forward-looking statement to reflect events or <BR>
circumstances after the date on which such statement is made or to reflect the occurrence <BR>
of unanticipated events.  New factors emerge from time to time and it is not possible for <BR>
management to predict all of such factors, nor can it assess the impact of any such factor <BR>
on the business or the extent to which any factor, or combination of factors, may cause <BR>
results to differ materially from those contained in any forward-looking statement.<BR>
<BR>
<A NAME="OPS"><U>CONSOLIDATED RESULTS OF OPERATIONS</U><BR>
<BR>
<U>Operating Revenue</U><BR>
<BR>
<U>Utility<BR>
<BR>
</U><B>          </B>Utility operating revenue was $441.1 million for the three months ended March 31, <BR>
2000 compared to $453 million for the corresponding period in 1999 (a decrease of <BR>
approximately $12 million or 3%).  The decrease primarily results from the fact that <BR>
revenue in the first quarter of 1999 included approximately $23 million related to a <BR>
contract termination fee to be received from SMECO in January 2001.  The decrease was <BR>
partially offset by an increase in interchange deliveries of approximately $11 million over <BR>
the prior period that resulted from changes in the prices and levels of energy delivered to <BR>
the PJM and changes in prices and levels of bilateral energy sales under the Utility's <BR>
wholesale power sales tariff.  Revenue from the sale of electricity was relatively <BR>
unchanged for the three months ended March 31, 2000, compared to the corresponding <BR>
period in 1999, as a 1.4% increase in customers and the impact of the additional day of <BR>
operations due to Leap Year were offset by weather that was 8% milder, as measured in <BR>
heating degree days, than the corresponding period in 1999.<BR>
<BR>
<B>          </B>Utility operating revenue was $2,207.3 million for the twelve months ended March <BR>
31, 2000 compared to $2,140.5 million for the corresponding period in 1999 (an increase <BR>
of approximately $67 million or 3%).  The increase primarily results from an increase in <BR>
interchange deliveries of approximately $67 million over the prior period for reasons that <BR>
are consistent with the increase in interchange deliveries over the three month period.  <BR>
Additionally, revenue from the sale of electricity increased approximately $20 million <BR>
over the prior twelve month period due to a 1% increase in the Company's average <BR>
number of customers.  These increases were partially offset by the impact of the <BR>
approximately $23 million in contract termination fee revenue that was recorded in the <BR>
first quarter of 1999, discussed above.<BR>
<BR>
<U>Nonregulated</U><BR>
<BR>
          Nonregulated operating revenue is derived from the operations of PCI and Pepco <BR>
Energy Services.  PCI classifies its revenue as "financial investments" and "utility <BR>
industry services" and Pepco Energy Services classifies its revenue as "energy services."<BR>
<BR>
<B>          </B>Nonregulated operating revenue was $88.1 million for the three months ended <BR>
March 31, 2000 compared to $59 million for the corresponding period in 1999 (an <BR>
increase of approximately $29 million or 49%).  The increase primarily results from the <BR>
fact that utility industry services revenue increased by approximately $20 million over the <BR>
prior period from the sale of PCI's 50% interest in the Cove Point liquefied natural gas <BR>
storage facility and pipeline.  Additionally, energy services revenue increased by <BR>
approximately $22 million over the prior period as the result of increased energy services <BR>
contracting revenue and additional revenue generated from the continued growth of <BR>
Pepco Energy Services' businesses.  These increases were partially offset by a decrease <BR>
of approximately $13 million in financial investments revenue over the prior period due <BR>
to prior year gains from the sale of real estate and aircraft and related equipment as well <BR>
as approximately $6 million in an after-tax loss on the sale of aircraft in the current year.  <BR>
<BR>
          In March 2000, PCI executed legal and binding contracts with a third party to sell <BR>
four aircraft for a total of $73 million.  In connection with the sale of three of the aircraft, <BR>
PCI received a 10% deposit and investment grade recourse notes for the balance, which <BR>
are payable on May 14, 2000 and July 15, 2000, depending on each aircraft's contract.  <BR>
PCI recorded the sales of the aircraft as financing arrangements, in accordance with <BR>
generally accepted accounting principles as it has not yet transferred significantly all of <BR>
the risks and rewards of ownership of the aircraft to the third party.  In May 2000, PCI <BR>
received a 10% deposit and an investment grade recourse note due on July 15, 2000 for <BR>
the fourth aircraft.  This transaction will be recorded as a financing arrangement during <BR>
the second quarter of 2000.  Although sold, for accounting purposes, PCI must continue <BR>
to record the aircraft on its consolidated balance sheets and recognize results from their <BR>
operation until the notes are paid.<BR>
 <BR>
<B>          </B>Nonregulated operating revenue was $285.9 million for the twelve months ended <BR>
March 31, 2000 compared to $175 million for the corresponding period in 1999 (an <BR>
increase of approximately $111 million or 63%).  This increase results from a $25 million <BR>
increase in utility industry services revenue over the prior period and a $107 million <BR>
increase in energy services revenue over the prior period.  These increases were partially <BR>
offset by a decrease of approximately $21 million in financial investments revenue over <BR>
the period.  The basis for these fluctuations in the twelve month period is consistent with <BR>
the explanations provided for the three month period above.  Additionally, the decrease in <BR>
financial investments revenue is also related to decreased leasing income due to a <BR>
reduction in the size of the aircraft portfolio.<BR>
<BR>
<U>Operating Expenses<BR>
<BR>
</U><B>          </B>Total operating expenses were $508.7 million for the three months ended March <BR>
31, 2000 compared to $467.6 million for the corresponding period in 1999 (an increase of <BR>
approximately $41 million or 9%).  Approximately $34 million of this increase is <BR>
attributable to an increase in consolidated fuel and purchased energy  ($14 million by the <BR>
Utility and $20 million by Pepco Energy Services).  The increase in the Utility's fuel and <BR>
purchased energy over the prior period results from increases in the levels of energy <BR>
purchased from PJM and through bilateral energy transactions.  The increase in Pepco <BR>
Energy Services' fuel and purchased energy over the prior period results from the <BR>
increased operating activities of Pepco Gas Services, a wholly owned subsidiary of Pepco <BR>
Energy Services, as it continues to grow its operations.  An additional $4 million of the <BR>
increase in total operating expenses relates to the fact that Pepco Energy Services' other <BR>
operation and maintenance expense increased as it continues to build up its infrastructure <BR>
for deregulation.  The remaining increase results from both an increase in the Utility's <BR>
depreciation expense and Maryland tax legislation that became effective January 1, 2000.<BR>
<BR>
<B>          </B>Total operating expenses were $2,136.8 million for the twelve months ended <BR>
March 31, 2000 compared to $1,917.1 million for the corresponding period in 1999 (an <BR>
increase of approximately $220 million or 11%).  Approximately $189 million of this <BR>
increase is attributable to an increase in consolidated fuel and purchased energy ($95 <BR>
million by the Utility and $94 million by Pepco Energy Services).  The increase in the <BR>
Utility's fuel and purchased energy expense over the prior period results from increases <BR>
in capacity purchase payments related to contractual escalations under existing capacity <BR>
contracts as well as for the reasons discussed above for the increase in the three month <BR>
period.  The increase in Pepco Energy Services' fuel and purchased energy over the prior <BR>
twelve month period is also consistent with the explanation for the increase in the three <BR>
month period provided above.  Additionally, $21 million of the increase in total operating <BR>
expenses primarily results from the fact that Pepco Energy Services' other operation and <BR>
maintenance expense increased as it continues to build up its infrastructure for <BR>
deregulation.  The remaining increase results from increases in the Utility's capacity <BR>
costs, operation and maintenance expenses, and depreciation expense.<BR>
</P>
<U><P>(Loss) Income from Equity Investments, principally Telecommunication Entities</U><BR>
<BR>
          These amounts represent the Company's share of the pre-tax income or loss from <BR>
entities in which it has a 20% to 50% equity investment.  The Company's most significant <BR>
equity investment is the joint venture known as Starpower Communications, LLC <BR>
(Starpower) that was formed in 1997 between a wholly owned subsidiary of PCI and <BR>
RCN Corporation.  Additionally, this line item includes income from Pepco Energy <BR>
Services' 50% share of the operations from Viron/Pepco Services, Inc., which was <BR>
created in 1999 to provide energy-savings performance contracting services to the <BR>
Military District of Washington.<BR>
<BR>
          Starpower, which is discussed in detail in Item 8. Financial Statements and <BR>
Supplementary Data in the Company's 1999 Form 10-K, is the only regional company <BR>
providing cable television, local and long distance telephone, and dial-up and high-speed <BR>
Internet services in a competitively priced bundled package for residential customers, <BR>
over an advanced fiber-optic network.  Total customer subscriber services including <BR>
cable, telephone and Internet customers were in excess of 285,000 as of March 31, 2000, <BR>
compared to 250,000 customers as of March 31, 1999.  The customer subscriber services <BR>
base is composed of customers served on Starpower's advanced fiber-optic network (On-<BR>
network) and off of other networks ahead of Starpower's build-out (Off-network).  The <BR>
On-network customer subscriber services are principally composed of cable, local and <BR>
long distance telephone and high-speed Internet customer services and totaled in excess <BR>
of 25,000 as of March 31, 2000, compared to 3,000 at March 31, 1999.  The Off-network <BR>
customer subscriber services are principally composed of dial-up Internet and resale local <BR>
and long distance telephone customers and totaled approximately 260,000 as of March <BR>
31, 2000, compared to 250,000 at March 31, 1999.<BR>
<BR>
          Authorized cable households for Starpower in the Washington metropolitan area at <BR>
March 31, 2000 exceeded 550,000, up from approximately 250,000 authorized cable <BR>
households at March 31, 1999.  Starpower continues to solicit approvals from the <BR>
remaining jurisdictions within the Washington metropolitan area and is currently seeking <BR>
further agreements that will add over 500,000 additional households.  Through March 31, <BR>
2000, Starpower has built sufficient advance fiber-optic network to cumulatively reach <BR>
approximately 90,000 On-network households as compared to approximately 6,000 On-<BR>
network households at March 31, 1999.  Of these On-network marketable households, <BR>
over 25,000 On-network marketable customer connections have been sold as of March <BR>
31, 2000, with the average customer household purchasing in excess of two customer <BR>
services.  As of March 31, 2000, PCI has invested $85.9 million of its initial $150 million <BR>
commitment in Starpower.  PCI expects to invest the balance of its initial capital <BR>
commitment during 2000.<BR>
 <BR>
          The Loss from Equity Investments, principally Telecommunication Entities, <BR>
increased slightly for the three months ended March 31, 2000, compared to the <BR>
corresponding period in 1999 due to expenses incurred in connection with the expansion <BR>
of the Starpower network.  The loss for the twelve months ended March 31, 2000, <BR>
compared to the corresponding period in 1999, decreased slightly due to the fact that PCI <BR>
sold its investment in Metricom D.C., LLC, which had consistently generated losses <BR>
through its sale in October 1999.  PCI expects that Starpower will continue to incur losses <BR>
in 2000 as it develops and expands its network and customer base.  During 2000, <BR>
Starpower may decide to accelerate the scope and pace of system construction in 2001 <BR>
and beyond based upon the favorable receipt of additional cable franchises ahead of plan.  <BR>
If Starpower decides to accelerate its build, its pre-tax losses may increase over the near-<BR>
term.<BR>
<BR>
<U>Effective Federal Income Tax Rate</U><BR>
<BR>
          The Company's effective federal income tax rate was 27.8% for the twelve months <BR>
ended March 31, 2000 compared to 32.2% for the corresponding period in 1999.  This <BR>
decrease results from PCI's recognition of $18.7 million in tax benefits in June 1999 <BR>
associated with the completion of a restructuring transaction related to a partnership. <BR>
This restructuring allowed PCI to consolidate the majority of its aircraft under one <BR>
umbrella company, and by doing so, facilitates the management and disposition of its <BR>
aircraft portfolio.<BR>
<BR>
<U>Oil Spill at the Chalk Point Generating Station</U><BR>
<BR>
          On April 7, 2000, approximately 110,000 gallons of oil leaked from the Company's <BR>
pipeline at its Chalk Point Generating Station in Aquasco, Maryland.  The pipeline is <BR>
operated by Support Terminals Services Operating Partnership LP, an unaffiliated <BR>
pipeline management company.  The oil spread from Swanson Creek to the Patuxent <BR>
River and several of its tributaries.  The area affected covers portions of seventeen miles <BR>
of shoreline along the Patuxent River and approximately 45 acres of marshland located <BR>
on and adjacent to the Company's property.  Cleanup operations have been underway <BR>
since the leak was discovered.  The 51-mile pipeline, which transports oil to the <BR>
Company's Chalk Point and Morgantown plants, has been shut down by the Office of <BR>
Pipeline Safety, a unit of the federal government's Department of Transportation until a <BR>
plan of corrective measures to prevent a reoccurrence of the spill is approved.  However, <BR>
the plants remain fully operational and are being operated using coal and natural gas.<BR>
<BR>
          The Company has been working under the direction of the Environmental <BR>
Protection Agency since the spill was reported and has been joined in the cleanup effort <BR>
with officials from other federal, state, county and local government agencies.<BR>
<BR>
          The total cost to the Company, net of insurance recovery, cannot be determined at <BR>
this time; however, based on information known at this time, the Company does not <BR>
believe the costs of cleanup, associated claims, or any resulting fines or penalties will <BR>
have a material adverse effect on its financial position.  However, depending upon the <BR>
outcome of insurance claims, the cost of remediation, along with any damage claims, <BR>
fines and penalties could have a material adverse effect on the Company's results of <BR>
operations in the year in which such expenses are incurred.<BR>
<BR>
</P>
<P>          As a result of the oil spill, three class action lawsuits have been filed against the <BR>
Company.  At this early stage, no determination has been made as to the merits of the <BR>
claims.<BR>
<BR>
<A NAME="CAPITAL"><U>CAPITAL RESOURCES AND LIQUIDITY</U><BR>
<BR>
<U>Common Stock Repurchase Plan</U><BR>
<BR>
          On April 27, 2000, the Company announced its plan to repurchase up to $200 <BR>
million of its common stock as a preliminary step in its post-generation assets divestiture <BR>
business strategy.  The Company will repurchase the common stock in the open market <BR>
or in privately negotiated transactions over the next twelve months.  The actual amount of <BR>
stock to be repurchased will be determined by management depending on market <BR>
conditions.  The Company expects to finance a significant portion of the repurchases <BR>
through the sale of short-term debt and/or mortgage bonds, which would be repaid upon <BR>
the closing of the generation assets divestiture.<BR>
<BR>
<U>Dividends on Common Stock</U><BR>
<BR>
          In April 2000, a dividend of 41.5 cents per share was declared payable June 30, <BR>
2000, to holders of record of the Company's common stock on June 12, 2000.  This <BR>
results in a current annual dividend rate on common stock of $1.66 per share.  The <BR>
Company's annual dividend rate on its common stock is determined by the Company's <BR>
Board of Directors on a quarterly basis.  In view of the impending divestiture of the <BR>
Company's generation assets and the competitive environment in which the Company's <BR>
future operations will take place following the divestiture, the Board of Directors believe <BR>
that the high payout ratio represented by the current annual dividend rate of $1.66 per <BR>
share will not be consistent with the Company's future utility and telecommunications <BR>
operations.  Accordingly, the Board anticipates changing its dividend rate in the second <BR>
half of 2000 once the results of the divestiture auction are known.<BR>
<BR>
<U>Construction and Generating Capacity</U><BR>
<BR>
          Construction expenditures, excluding the Allowance for Funds Used During <BR>
Construction and Capital Cost Recovery Factor, totaled $53.7 million for the three <BR>
months ended March 31, 2000 ($28 million related to generation) and are projected to <BR>
total $203 million ($75 million related to generation, including $25 million of Clean Air <BR>
Act expenditures) for the year 2000.  The Company anticipates completing the divestiture <BR>
of its generation assets by the end of 2000 and accordingly, does not expect to incur <BR>
generation-related construction or Clean Air Act expenditures beyond the date of closing.  <BR>
For the five-year period 2000-2004, construction expenditures are projected to total $646 <BR>
million ($75 million related to generation).<BR>
</P>
<U><P>Preferred Stock Repurchases</U><BR>
<BR>
          During March 2000, the Company repurchased the following Preferred Stock:  <BR>
1,570 shares of $2.44 series of 1957 at $37.50 per share; 5,028 shares of $2.46 series of <BR>
1958 at $37.50 per share; 33,118 shares of $2.28 series of 1965 at $38.625 per share; <BR>
23,389 shares of $2.44 series of 1957 at $41.50 per share; and 46,030 shares of $2.46 <BR>
series of 1958 at $41.72 per share.  The repurchase totaled approximately $4.4 million.<BR>
<BR>
<A NAME="RISK"><U>Item 3</U>.      <U>QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT </U><BR>                     <U>
MARKET RISK</U><BR>
<BR>
          Refer to Item 7A. Quantitative and Qualitative Disclosures About Market Risk of <BR>
the Company's 1999 Form 10-K.<BR>
<BR>
<U>PART II</U>   <U>OTHER INFORMATION</U><BR>
<A NAME="LEGAL"><U>Item 1</U>.      <U>LEGAL PROCEEDINGS</U><BR>
<BR>
          Refer to Item 3. Legal Proceedings of the Company's 1999 Form 10-K.<BR>
<BR>
<A NAME="VOTE"><U>Item 4</U>.      <U>SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS<BR>
</P></U>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=637>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>(a)</TD>
<TD WIDTH="61%" VALIGN="TOP" COLSPAN=4>
<P>Annual meeting of shareholders held May 9, 2000<BR>
</TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P>(b)</TD>
<TD WIDTH="6%" VALIGN="TOP">
<P>(1)</TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=3>
<P>Directors who where elected at the annual meeting:<BR>
  </TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=3>
<P>For Term Expiring in 2003:<BR>
</TD>
<TD WIDTH="21%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="41%" VALIGN="TOP" COLSPAN=2>
<P>Terence C. Golden</TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2>
<P>Votes cast for:</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">97,300,519</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="41%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2>
<P>Votes withheld:</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">2,282,558<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="41%" VALIGN="TOP" COLSPAN=2>
<P>David O. Maxwell</TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2>
<P>Votes cast for:</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">97,128,188</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="41%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2>
<P>Votes withheld:</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">2,454,889<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="41%" VALIGN="TOP" COLSPAN=2>
<P>Floretta D. McKenzie</TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2>
<P>Votes cast for:</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">96,890,446</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="41%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2>
<P>Votes withheld:</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">2,692,631<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="41%" VALIGN="TOP" COLSPAN=2>
<P>Edward F. Mitchell</TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2>
<P>Votes cast for:</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">97,168,970</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="41%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="19%" VALIGN="TOP" COLSPAN=2>
<P>Votes withheld:</TD>
<TD WIDTH="28%" VALIGN="TOP" COLSPAN=2>
<P ALIGN="RIGHT">2,414,107<BR>
</TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP">
<P>(2)</TD>
<TD WIDTH="76%" VALIGN="TOP" COLSPAN=5>
<P>Directors whose terms of office continued after the annual meeting:<BR>
</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="37%" VALIGN="TOP">
<P>Roger R. Blunt, Sr.</TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=3>
<P>Peter F. O'Malley</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="37%" VALIGN="TOP">
<P>Edmund B. Cronin, Jr.</TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=3>
<P>Louis A. Simpson</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="37%" VALIGN="TOP">
<P>John M. Derrick, Jr.</TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=3>
<P>Dennis R. Wraase</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="10%" VALIGN="TOP" COLSPAN=2> </TD>
<TD WIDTH="37%" VALIGN="TOP">
<P>Judith A. McHale<BR>
</TD>
<TD WIDTH="35%" VALIGN="TOP" COLSPAN=3>
<P>A. Thomas Young<BR>
</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP">
<P>(c)</TD>
<TD WIDTH="76%" VALIGN="TOP" COLSPAN=5>
<P>The following shareholder proposal was introduced:<BR>
</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="76%" VALIGN="TOP" COLSPAN=5>
<P>(1)   "RESOLVED:   That the shareholders of Pepco recommend that the<BR>
Board of Directors take the necessary steps to reinstate the election of <BR>
directors ANNUALLY, instead of the staggered system which was <BR>
recently adopted."<BR>
</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="76%" VALIGN="TOP" COLSPAN=5>
<P>       The following statement has been supplied by the shareholder <BR>
submitting this proposal:<BR>
</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="76%" VALIGN="TOP" COLSPAN=5>
<P>       "REASONS:   Until recently, directors of Pepco were elected<BR>
annually by all shareholers."<BR>
</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="76%" VALIGN="TOP" COLSPAN=5>
<P>       "The great majority of New York Stock Exchange listed<BR>
corporations elect all their directors eachYear."<BR>
</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="76%" VALIGN="TOP" COLSPAN=5>
<P>       "This insures that ALL directors will be more accountable to ALL<BR>
shareholders each Year and to a certain extent prevents the self-perpetuation of the Board."<BR>
</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="6%" VALIGN="TOP"> </TD>
<TD WIDTH="76%" VALIGN="TOP" COLSPAN=5>
<P>       "Last Year the owners of 22,521,399 shares, representing approximately 20.8% of shares voting, voted FOR this proposal."</TD>
<TD WIDTH="12%" VALIGN="TOP"> </TD>
</TR>
</TABLE>

<P><BR>
          The shareholder proposal was defeated.  There were 44,667,670 votes cast against <BR>
the proposal, 27,997,551 votes cast in support of the proposal, 3,769,578 votes abstaining <BR>
and 23,148,278 broker nonvotes.<BR>
                                          
                                   <BR>
<A NAME="OTHER"><U>Item 5</U>.      <U>OTHER INFORMATION</U><BR>
<BR>
<U>The Company </U><BR>
<BR>
          At its meeting held on May 9, 2000, the Board of Directors elected Dennis R. <BR>
Wraase as President of the Company.  Mr. Wraase will continue to serve as Chief <BR>
Financial Officer for an interim period.  John M. Derrick will continue to serve as the <BR>
Chairman of the Board and Chief Executive Officer.<BR>
</P>
<U><P>Pepco Energy Services</U><BR>
<BR>
          In March 2000, the Apartment and Office Building Association (AOBA) <BR>
announced that it had selected Pepco Energy Services to supply electricity and energy <BR>
management services to its members.  AOBA is the Washington, D.C. area federated <BR>
chapter of the Building Owners and Managers Association and the National Apartment <BR>
Association.  The agreement will permit AOBA members in Maryland to obtain a <BR>
contractually fixed amount of competitively priced electricity from Pepco Energy <BR>
Services beginning by September 2000.  In addition, Pepco Energy Services will provide <BR>
energy information services to AOBA members and fuel management services, including <BR>
assistance in the procurement and use of electricity, natural gas, and fuel oil.<BR>
<BR>
          In March 2000, Pepco Energy Services reached an agreement with the National <BR>
Institutes of Health (NIH) for the construction, operation and maintenance of a 23- <BR>
megawatt co-generation plant to supply steam and electricity on NIH's main campus in <BR>
Maryland.  The construction and operation and maintenance portions of this project are <BR>
expected to produce over $50 million in revenue over 10 years.  Financing for this project <BR>
has been obtained and construction has begun.<BR>
</P>
<P><Table border=0>
<TR ALIGN="center" VALIGN="bottom">
<TD COLSPAN=12><FONT FACE="Arial" SIZE=+1><B><U>Statistical Data</U></B></FONT></TD>
</TR>
<TR ALIGN="center" VALIGN="bottom">
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
<TD><FONT FACE="Arial"><B> </B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD COLSPAN=5 ALIGN="center"><FONT FACE="Arial" SIZE=-1><B>Three Months Ended</B></FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD COLSPAN=5 ALIGN="center"><FONT FACE="Arial" SIZE=-1><B>Twelve Months Ended</B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD COLSPAN=5 ALIGN="center"><FONT FACE="Arial" SIZE=-1><B>March 31,</B></FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD COLSPAN=5 ALIGN="center"><FONT FACE="Arial" SIZE=-1><B>March 31,</B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial" SIZE=-1><B>2000</B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial" SIZE=-1><B>1999</B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B>% Change</B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial" SIZE=-1><B>2000</B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial" SIZE=-1><B>1999</B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B>% Change</B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1 COLOR=#000000><B><U>Utility Operating Revenue</U></B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>                           </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1>(Millions of Dollars)</FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>

<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Electric Revenue</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $       389.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $        389.9 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>(0.1)</FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $               1,916.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $             1,896.3 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>1.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Other</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>51.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>63.1 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>(18.4)</FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>290.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>244.2 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>19.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>    Total</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $         441.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $        453.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>(2.6)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $             2,207.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $             2,140.5 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>3.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1><B><U>Electric Revenue by Class of Service</U></B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Residential</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $         121.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $         123.6 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>(1.4)</FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $                 584.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $               577.4 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>1.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  General Service</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>216.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>215.6 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>0.6 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>1,122.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>1,112.9 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>0.9 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Large Power Service *</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>7.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>7.1 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                              - </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>36.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>35.1 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>3.4 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Street Lighting</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>3.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>3.5 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>2.9 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>13.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>13.1 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>4.6 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Rapid Transit</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>7.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>7.0 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>1.4 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>30.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>29.8 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>2.7 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Wholesale</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>33.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>33.1 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>(0.3)</FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>128.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>128.0 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>0.5 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>    System</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $       389.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $        389.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>(0.1)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $               1,916.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.0_)[semicolon]_($* (#,##0.0)[semicolon]_($* [dquote]-[dquote]?_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> $             1,896.3 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>1.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1><B><U>Energy Sales</U></B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1>(Millions of KWH)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Residential</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>            1,823 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>             1,824 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>(0.1)</FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>7,012 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>6,875 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>2.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  General Service</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>            3,801 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>            3,682 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>3.2 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>16,009 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>15,722 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>1.8 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Large Power Service *</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                170 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                 165 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>3.0 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>706 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>684 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>3.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Street Lighting</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                 47 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                  46 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>2.2 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>168 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>163 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>3.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Rapid Transit</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                108 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                 104 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>3.8 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>443 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>425 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>4.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Wholesale</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>               756 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                738 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>2.4 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                     2,778 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                   2,724 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>2.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>    System</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>6,705 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>6,559 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>2.2 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>27,116 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>26,593 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>2.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1><B><U>Average System Revenue</U></B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0000_)[semicolon](#,##0.0000)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0000_)[semicolon](#,##0.0000)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0000_)[semicolon](#,##0.0000)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0000_)[semicolon](#,##0.0000)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  <B><U>per KWH</U> (Cents/KWH)</B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>               5.81 </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> Cents </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>               5.94 </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> Cents </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>(2.2)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                       7.07 </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> Cents </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.00_)[semicolon](#,##0.00)"><FONT FACE="Arial" SIZE=-1>7.13 </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> Cents </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1>(0.8)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1><B><U>System Peak Demand **</U></B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1>(Thousands of KW)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Summer</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                     - </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                      - </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>5,927 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>5,807 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Winter</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                     - </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                      - </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>4,735 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>4,631 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1><U> </U></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1><U> </U></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1><U> </U></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1><U> </U></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1><B><U>Net Generation</U></B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1>(Millions of KWH)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>4,905 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>5,353 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>22,359 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>22,359 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1><B><U>Fuel Mix (% of Btu)</U></B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Coal (%)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>84 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>87 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>81 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>84 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Oil (%)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>12 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>12 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>13 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>13 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Gas (%)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>4 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>1 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1>3 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1><B><U>Fuel Cost per MBtu</U></B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  System Average</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial" SIZE=-1>$1.69 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial" SIZE=-1>$1.64 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.00_)[semicolon]_($* (#,##0.00)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.00_)[semicolon]_($* (#,##0.00)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.00_)[semicolon]_($* (#,##0.00)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial" SIZE=-1>$1.69 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0.00_)[semicolon]_($* (#,##0.00)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.00_)[semicolon]($#,##0.00)"><FONT FACE="Arial" SIZE=-1>$1.69 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1><B> </B></FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1><B><U>Weather Data</U></B></FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0_)[semicolon]($#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_($* #,##0_)[semicolon]_($* (#,##0)[semicolon]_($* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial" SIZE=-1>  Heating Degree Days</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>            1,953 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>              2,121 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                     3,558 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                   3,639 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1>  20 Year Average</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>            2,183 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                     3,964 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1>  Cooling Degree Hours</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                  12 </FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                      - </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                    10,819 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0.00_)[semicolon]_(* (#,##0.00)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                  10,086 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1>  20 Year Average</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                  12 </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:[semicolon][semicolon][semicolon]"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:[semicolon][semicolon][semicolon]"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:_(* #,##0_)[semicolon]_(* (#,##0)[semicolon]_(* [dquote]-[dquote]??_)[semicolon]_(@_)"><FONT FACE="Arial" SIZE=-1>                     9,495 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:[semicolon][semicolon][semicolon]"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:[semicolon][semicolon][semicolon]"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:[semicolon][semicolon][semicolon]"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:[semicolon][semicolon][semicolon]"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:[semicolon][semicolon][semicolon]"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN=12 ALIGN="left" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1>Heating Degree Days - The daily difference in degrees by which the mean temperature is below 65 degrees<BR>   Fahrenheit (dry bulb).</FONT></TD>
</TR>
<TR VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:@">
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN=10 ALIGN="left" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1>Cooling Degree Hours - The daily sum of the differences, by hours, by which the temperature<BR>   (effective temperature) for each hour exceeds 71 degrees
Fahrenheit (effective temperature).</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:@"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:@">
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:@">
<TD COLSPAN=10 ALIGN="left"><FONT FACE="Arial" SIZE=-1>* Large Power Service customers are served at high voltage of 66KV or higher.</FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
<TR VALIGN="bottom" STYLE="vnd.ms-excel.numberformat:@">
<TD COLSPAN=10 ALIGN="left"><FONT FACE="Arial" SIZE=-1>**At March 31, 2000, the net generation capability, excluding short-term capacity transactions, was 6,806 MW.</FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial" SIZE=-1> </FONT></TD>
</TR>
</TABLE>
</P>
<P><A NAME="EXHIBITS"><U>Item 6</U>.      <U>EXHIBITS AND REPORTS ON FORM 8-K<BR>
</P></U>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=590>
<TR><TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(a)</TD>
<TD WIDTH="39%" VALIGN="TOP">
<P>Exhibits<BR>
</TD>
<TD WIDTH="5%" VALIGN="TOP"> </TD>
<TD WIDTH="43%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"> </TD>
<TD WIDTH="39%" VALIGN="TOP">
<P>Exhibit 12<BR>
<BR>
</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="43%" VALIGN="TOP">
<P>Computation of ratios - filed herewith.</TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"> </TD>
<TD WIDTH="39%" VALIGN="TOP">
<P>Exhibit 15<BR>
<BR>
</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="43%" VALIGN="TOP">
<P>Letter re unaudited interim financial information - filed herewith.</TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"> </TD>
<TD WIDTH="39%" VALIGN="TOP">
<P>Exhibit 27<BR>
<BR>
</TD>
<TD WIDTH="5%" VALIGN="TOP">
<P ALIGN="CENTER">-</TD>
<TD WIDTH="43%" VALIGN="TOP">
<P>Financial data schedule - filed herewith.</TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP">
<P ALIGN="RIGHT">(b)</TD>
<TD WIDTH="39%" VALIGN="TOP">
<P>Reports on Form 8-K<BR>
</TD>
<TD WIDTH="5%" VALIGN="TOP"> </TD>
<TD WIDTH="43%" VALIGN="TOP"> </TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"> </TD>
<TD WIDTH="87%" VALIGN="TOP" COLSPAN=3>
<P>A Current Report on Form 8-K was filed by the Company on January 3, 2000, summarizing the approval of the Company's divestiture plans by the Maryland and D.C. Commissions.  The items reported on such Form 8-K were Item 5. (Other Events) and Item 7.
(Financial Statements and Exhibits).<BR>
</TD>
</TR>
<TR><TD WIDTH="13%" VALIGN="TOP"> </TD>
<TD WIDTH="87%" VALIGN="TOP" COLSPAN=3>
<P>A Current Report on Form 8-K was filed by the Company on February 3, 2000, providing detailed information and audited consolidated financial statements.  The item reported on such Form 8-K was Item 7. (Financial Statements and Exhibits).<BR>
</TD>
</TR>
</TABLE>

<P><BR>
</P>
<P>                                          
              <A NAME="SIGNATURES"><U>SIGNATURES</U><BR>
<BR>
          Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant <BR>
has duly caused this report to be signed on its behalf by the undersigned thereunto duly <BR>
authorized.<BR>
<BR>
</P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=590>
<TR><TD WIDTH="50%" VALIGN="TOP">
<P>                                          
                          <BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
</TD>
<TD WIDTH="50%" VALIGN="TOP">
<U><P>Potomac Electric Power Company</U><BR>
                     Registrant<BR>
<BR>
<BR>
<BR>
By  <U>    D. R. WRAASE    <BR>
                 D. R. Wraase<BR>
       President and Chief Financial <BR>
           Officer</TD>
</TR>
</TABLE>

<P><BR>
<U>May 11, 2000<BR>
</U>     Date<BR>
</P>

<P><Table border=0>
<TR VALIGN="bottom">
<TD COLSPAN=2><FONT FACE="Arial"><FONT FACE="Arial"><A NAME="CRU"><U>Exhibit 12</U>    <U>Statements Re. Computation of Ratios</U>
</FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN=7><FONT FACE="Arial">The computations of the coverage of fixed charges before income taxes, and the coverage of combined fixed charges and preferred dividends for the twelve months ended March 31, 2000, and each of the years 1999 through 1995,
on the basis of Utility operations only, are as follows:</FONT></TD>
</TR>

<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">Twelve</FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">Months Ended</FONT></TD>
<TD COLSPAN=5 ALIGN="center"><FONT FACE="Arial">For the Year Ended December 31, </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="center" STYLE="vnd.ms-excel.numberformat:mmmm d, yyyy"><FONT FACE="Arial">March 31, 2000</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1999</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1998</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1997</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1996</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1995</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD COLSPAN=5 ALIGN="center"><FONT FACE="Arial">(Dollar Amounts in Millions)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Net income</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$209.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$228.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$211.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$164.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$220.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$218.8 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Taxes based on income</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">130.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">142.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">131.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">97.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">135.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">129.4 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Income before taxes</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">340.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">370.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">342.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">262.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">355.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">348.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Fixed charges:</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">  Interest charges</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">157.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">156.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">151.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">146.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">146.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">146.6 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">  Interest factor in rentals</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">23.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">23.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">23.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">23.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">23.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">23.4 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Total fixed charges</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">180.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">179.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">175.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">170.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">170.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">170.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Income before income taxes and fixed charges</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$520.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$550.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$517.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$432.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$525.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$518.2 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Coverage of fixed charges</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.88 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">3.06 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.95 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.54 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">3.08 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">3.05 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Preferred dividend requirements</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$8.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$8.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$18.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$16.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$16.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$16.9 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Ratio of pre-tax income to net income</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.62 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.63 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.62 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.59 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.61 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.59 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Preferred dividend factor</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$13.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$14.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$29.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$26.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$26.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$26.9 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Total fixed charges and preferred dividends</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$194.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$194.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$204.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$196.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$197.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$196.9 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Coverage of combined fixed charges and
   preferred dividends</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.68 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.84 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.53 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.20 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.66 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.63 </FONT></TD>
</TR>
</TABLE>
</P>
<P><Table border=0>
<TR VALIGN="bottom">
<TD COLSPAN=2><FONT FACE="Arial"><A NAME="CRC"><U>Exhibit 12</U>    <U>Statements Re. Computation of Ratios</U>
</FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD COLSPAN=7><FONT FACE="Arial">The computations of the coverage of
fixed charges before income taxes, and the coverage of combined fixed
charges and preferred dividends for the twelve months ended March 31,
2000, and for each of the years 1999 through 1995, on a consolidated
basis, are as follows.</FONT></TD>

</TR>

<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">Twelve</FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">Months Ended</FONT></TD>
<TD COLSPAN=5 ALIGN="center"><FONT FACE="Arial">For the Year Ended December 31,</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="center" STYLE="vnd.ms-excel.numberformat:mmmm d, yyyy"><FONT FACE="Arial">March 31, 2000</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1999</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1998</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1997</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1996</FONT></TD>
<TD ALIGN="center"><FONT FACE="Arial">1995</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD COLSPAN=5 ALIGN="center"><FONT FACE="Arial">(Dollar Amounts in Millions)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Net income</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$230.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$247.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$226.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$181.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$237.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$94.4 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Taxes based on income</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">105.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">114.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">122.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">65.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">80.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">43.7 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Income before taxes</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">336.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">361.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">348.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">247.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">317.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">138.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Fixed charges:</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">  Interest charges</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">211.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">208.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">208.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">216.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">231.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">238.7 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">  Interest factor in rentals</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">23.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">23.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">24.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">23.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">23.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">26.7 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Total fixed charges</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">235.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">232.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">232.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">239.8 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">255.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">265.4 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Nonregulated subsidiary capitalized interest</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(2.4)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(1.8)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(0.6)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(0.5)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(0.7)</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:#,##0.0_)[semicolon](#,##0.0)"><FONT FACE="Arial">(0.5)</FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Income before income taxes and fixed charges</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$569.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$592.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$580.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$486.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$571.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$403.0 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Coverage of fixed charges</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.42 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.55 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.50 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.03 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.24 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.52 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left" STYLE="vnd.ms-excel.numberformat:#,##0_)[semicolon](#,##0)"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Preferred dividend requirements</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$8.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$8.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$18.0 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$16.5 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$16.6 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$16.9 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Ratio of pre-tax income to net income</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.46 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.46 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.54 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.36 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.34 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.46 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Preferred dividend factor</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$12.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$12.9 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$27.7 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$22.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$22.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$24.7 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Total fixed charges and preferred dividends</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$247.1 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$245.4 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$260.3 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$262.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$277.2 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:$#,##0.0_)[semicolon]($#,##0.0)"><FONT FACE="Arial">$290.1 </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="right"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
<TD ALIGN="left"><FONT FACE="Arial"> </FONT></TD>
</TR>
<TR VALIGN="bottom">
<TD ALIGN="left"><FONT FACE="Arial">Coverage of combined fixed charges and
   preferred dividends</FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.30 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.41 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.23 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.86 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">2.06 </FONT></TD>
<TD ALIGN="right" STYLE="vnd.ms-excel.numberformat:0.00_)"><FONT FACE="Arial">1.39 </FONT></TD>
</TR>
</TABLE>


</P>

<P>                                          
                                          
                        <A NAME="LETTER">Exhibit 15<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
<BR>
Securities and Exchange Commission<BR>
450 Fifth Street, N.W.<BR>
Washington, D.C.   20549<BR>
<BR>
Ladies and Gentlemen:<BR>
<BR>
We are aware that our report dated May 11, 2000 on our review of interim financial <BR>
information of Potomac Electric Power Company for the period ended March 31, 2000 <BR>
and included in the Company's quarterly report on Form 10-Q for the quarter then ended <BR>
is incorporated by reference in the Prospectuses constituting parts of the Registration <BR>
Statements on Forms S-8 (Numbers 33-36798, 33-53685, 33-54197, 333-56683 and <BR>
333-57221) filed on September 12, 1990, May 18, 1994, June 17, 1994, June 12, 1998 <BR>
and June 19, 1998, respectively, and on Form S-3 (Number 33-58810) filed on <BR>
February 26, 1993. <BR>
<BR>
Very truly yours,<BR>
<BR>
<BR>
<BR>
PRICEWATERHOUSECOOPERS LLP<BR>
PricewaterhouseCoopers<BR>
Washington, D.C.<BR>
May 11, 2000</P></BODY>
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