Common use of Rating and S&P Rating Clause in Contracts

Rating and S&P Rating. If the applicable Borrower xx xxxxt-rated and the ratings differential is one level, the higher rating will apply. If the applicable Borrower is split-rated and the ratings differential is two levels or more, the intermediate rating at the midpoint will apply (or, if there is no midpoint, the higher of the two intermediate ratings will apply). If at any time the applicable Borrower has no Moody's Rating or no S&P Rating, Level VI Status shall exixx. SCHEDULE 2 COMMITMENTS AND PRO RATA SHARES Lender Amount of Commitment Pro Rata Share Bank One, NA $145,000,000 9.67% Wachovia Bank, National Association $140,000,000 9.33% The Bank of Nova Scotia $140,000,000 9.33% Credit Suisse First Boston, Cayman Islands Branch $140,000,000 9.33% Bank of America, N.A. $125,000,000 8.33% Fleet National Bank $125,000,000 8.33% Bayerische Landesbank Girozentrale $ 85,000,000 5.67% Mellon Bank, N.A. $ 75,000,000 5.00% The Bank of New York $ 75,000,000 5.00% SunTrust Bank $ 75,000,000 5.00% Allfirst Bank $ 70,000,000 4.67% Merrill Lynch Bank USA $ 50,000,000 3.33% Citibank, N.A. $ 00,000,000 3.33% The Northern Trust Company $ 50,000,000 3.33% Mizuho Corporate Bank, Ltd. $ 50,000,000 3.33% Wilmington Trust Company $ 25,000,000 1.67% Riggs Bank N.A. $ 25,000,000 1.67% Union Bank of Californxx, X.A. $ 25,000,000 1.67% Bank Hapoalim B.M. $ 20,000,000 1.33% E.Sun Commercial Bank, Ltd., Los Angeles Branch $ 10,000,000 0.67% SCHEDULE 3 TRUST PREFERRED SECURITIES $125,000,000 of 7-3/8% Trust Originated Preferred Securities (TOPRs) issued by Potomac Electric Power Company Trust I, a statutory Delaware business trust established by Potomac Electric Power Company. $70,000,000 of 8-1/4% Cumulative Quarterly Income Preferred Securities issued by Atlantic Capital I, a special purpose statutory Delaware business trust established by Atlantic City Electric Company. $25,000,000 of 7-3/8% Cumulative Quarterly Income Preferred Securities issued by Atlantic Capital II, a special purpose statutory Delaware business trust established by Atlantic City Electric Company. $70,000,000 of 8-1/8% Cumulative Trust Preferred Capital Securities issued by Delmarva Power Financing I, a special purpose statutory Delaware business trust established by Delmarva Power & Light Company. SCHEDULE 4 SIGNIFICANT SUBSIDIARIES Name of Company Controlled Owned By Percent Ownership Amount of Investment (as of 3/31/02) Potomac Electric Power Company (a D.C. and Virginia corporation) Pepco Holdings, Inc 100% $1,332.8 Million Conectiv (a Delaware corporation) Pepco Holdings, Inc 100% $1,309.4 Million Delmarva Power & Light Company (a Delaware and Virginia corporation) Conectiv 100% $588.2 Million Atlantic City Electric Company (a New Jersey corporation) Conectiv 100% $615.6 Million Conectiv Energy Holding Company (A Delaware corporation) Conectiv 100% $572.0 Million Conectiv Delmarva Generation, Inc (A Delaware corporation) Conectiv Energy Holding Company 100% $447.8 Million Potomac Capital Investment Corp (a Delaware corporation) Pepco Holdings, Inc 100% $373.4 Million *After giving effect to the Merger and the Permitted Pepco Distributions SCHEDULE 5 LIENS Incurred By Owed To Property Encumbered Maturity Amount of Indebtedness Potomac Electric Power Co. CitiCapital (BLC) Vehicles, Office Equip., Computers Master Agreement $ 17,210,807* Potomac Electric Power Co. (Pepco Energy Services) Hannon Armstrong Pepco Funding Corp. Contract Payments Recxxxxxxx Xxxxxx Xgreement $ 59,717,761* Potomac Electric Power Co. (Pepco Energy Services) ABB Energy Capital L.L.C. Contract Payments Receivable Master Agreement $ 10,539,803* POM Holdings, Inc. (Potomac Capital Investment Corp.) ABB Energy Capital L.L.C. Contract Payments Receivable August 30, 2017 $ 9,189,292* Pepco Energy Services, Inc. & Viron/Pepco Services Partnership John Hancock Contract Payments Receivable August 30, 2017 $ 00,000,000* POM Holdings, Inc., Pepco Energy Services, Inc., & Trigen/Pepco Services, LLC Allfirst Bank Contract Payments Receivable December, 31, 2023 $ 6,527,500* Delmarva Power & Light Company Town of St. Michaels, Maryland Distribution Equipment October 15, 2006 $ 872,000 Atlantic City Electric Co. Guo Mao International Hotels B.V. Scrubber @ B.L. England Xxxxxxxion Station January 21, 2007 $ 4,634,800 *Xxx xxount of this lien fluctuates with the amount of accounts receivable created by this program. The amount listed is as of May 31, 2002. SCHEDULE 6 NONRECOURSE INDEBTEDNESS Name of Company Aggregate Principal Amount Type of Indebtedness Potomac Capital Investment Corporation (Potomac Equipment Leasing Corporation) $19,140,000 Promissory Note with First Security Bank Potomac Capital Investment Corporation (Harmans Building Associates) $ 6,280,000 Loan Agreement with Massachusetts Mutual Conectiv Bethlehem, Inc. Up to $365 million Senior Secured Credit Facilities 4-Year Construction and Term Loan Facility * * Closed on June 26, 2002 SCHEDULE 7 EXISTING LETTERS OF CREDIT CONECTIV LETTERS OF CREDIT Expiration Date Company Beneficiary Bank Date Issued L/C # Amount 1/31/03 PHI Liberty Mutual Bank One 1/31/98 320373 $400,000 2/28/03 PHI Penn Manufacturers Assoc. Bank One 04/05/00 322173 1,175,000 07/09/02 PHI PJM Interconnection LLC & PPL Utilities Bank One 07/10/01 325290 32,582,825 09/18/02 PHI Nebraska Public Power Bank One 09/18/00 322748 250,000 10/24/02 PHI City of Bethlehem Bank One 10/25/01 325792 3,650,000 11/01/02 PHI NY ISO Bank One 09/05/01 325594 3,852,800 01/09/03 PHI BCLP Bank One 01/09/97 320349 6,000,000 01/31/03 ACE/DPL Indemnity Insurance Co. of NA Bank One 02/21/02 750148 1,600,000 01/28/03 PHI PJM Interconnection LLC or Peco or DP&L Bank One 01/30/02 326110 23,440,700 02/03/03 PHI PJM Interconnection LLC or PA Elec. Co. Bank One 03/15/02 750163 1,627,150 01/24/03 PHI Liberty Mutual Bank One 04/30/02 750199 365,000 02/03/03 PHI IMO Bank One 04/23/02 750183 3,663,554 SCHEDULE 8 PERMITTED ACE ASSET SALES Keystone Electric Generating Station* Shelocta, PA Conemaugh Electric Generating Station* New Florence, PA B L England Electric Generating Station Xxxxxxx's Pt., NJ Deepwater Electric Generating Station Pennsville, PA * Joint owned plants. ACE owns 2.47% of Keystone and 3.83% of Conemaugh TABLE OF CONTENTS ARTICLE I DEFINITIONS Page 1.1 Definitions 1 1.2 Interpretation 14 1.3 Accounting 15 ARTICLE II THE CREDITS

Rating and S&P Rating. If the applicable Borrower xx xxxxt-rated and the ratings differential is one level, the higher rating will apply. If the applicable Borrower is split-rated and the ratings differential is two levels or more, the intermediate rating at the midpoint will apply (or, if there is no midpoint, the higher of the two intermediate ratings will apply). If at any time the applicable Borrower has no Moody's Rating or no S&P Rating, Level VI Status shall exixx. SCHEDULE 2 COMMITMENTS AND PRO RATA SHARES Lender Amount of Commitment Pro Rata Share Bank One, NA $145,000,000 9.67% Wachovia Bank, National Association $140,000,000 9.33% The Bank of Nova Scotia $140,000,000 9.33% Credit Suisse First Boston, Cayman Islands Branch $140,000,000 9.33% Bank of America, N.A. $125,000,000 8.33% Fleet National Bank $125,000,000 8.33% Bayerische Landesbank Girozentrale $ 85,000,000 5.67% Mellon Bank, N.A. $ 75,000,000 5.00% The Bank of New York $ 75,000,000 5.00% SunTrust Bank $ 75,000,000 5.00% Allfirst Bank $ 70,000,000 4.67% Merrill Lynch Bank USA $ 50,000,000 3.33% Citibank, N.A. $ 00,000,000 3.33% The Northern Trust Company $ 50,000,000 3.33% Mizuho Corporate Bank, Ltd. $ 50,000,000 3.33% Wilmington Trust Company $ 25,000,000 1.67% Riggs Bank N.A. $ 25,000,000 1.67% Union Bank of Californxx, X.A. $ 25,000,000 1.67% Bank Hapoalim B.M. $ 20,000,000 1.33% E.Sun Commercial Bank, Ltd., Los Angeles Branch $ 10,000,000 0.67% SCHEDULE 3 TRUST PREFERRED SECURITIES $125,000,000 of 7-3/8% Trust Originated Preferred Securities (TOPRs) issued by Potomac Electric Power Company Trust I, a statutory Delaware business trust established by Potomac Electric Power Company. $70,000,000 of 8-1/4% Cumulative Quarterly Income Preferred Securities issued by Atlantic Capital I, a special purpose statutory Delaware business trust established by Atlantic City Electric Company. $25,000,000 of 7-3/8% Cumulative Quarterly Income Preferred Securities issued by Atlantic Capital II, a special purpose statutory Delaware business trust established by Atlantic City Electric Company. $70,000,000 of 8-1/8% Cumulative Trust Preferred Capital Securities issued by Delmarva Power Financing I, a special purpose statutory Delaware business trust established by Delmarva Power & Light Company. SCHEDULE 4 SIGNIFICANT SUBSIDIARIES Name of Company Controlled Owned By Percent Ownership Amount of Investment (as of 3/31/02) Potomac Electric Power Company (a D.C. and Virginia corporation) Pepco Holdings, Inc 100% $1,332.8 Million Conectiv (a Delaware corporation) Pepco Holdings, Inc 100% $1,309.4 Million Delmarva Power & Light Company (a Delaware and Virginia corporation) Conectiv 100% $588.2 Million Atlantic City Electric Company (a New Jersey corporation) Conectiv 100% $615.6 Million Conectiv Energy Holding Company (A Delaware corporation) Conectiv 100% $572.0 Million Conectiv Delmarva Generation, Inc (A Delaware corporation) Conectiv Energy Holding Company 100% $447.8 Million Potomac Capital Investment Corp (a Delaware corporation) Pepco Holdings, Inc 100% $373.4 Million *After giving effect to the Merger and the Permitted Pepco Distributions SCHEDULE 5 LIENS Incurred By Owed To Property Encumbered Maturity Amount of Indebtedness Potomac Electric Power Co. CitiCapital (BLC) Vehicles, Office Equip., Computers Master Agreement $ 17,210,807* Potomac Electric Power Co. (Pepco Energy Services) Hannon Armstrong Pepco Funding Corp. Contract Payments Recxxxxxxx Xxxxxx Xgreement $ 59,717,761* Potomac Electric Power Co. (Pepco Energy Services) ABB Energy Capital L.L.C. Contract Payments Receivable Master Agreement $ 10,539,803* POM Holdings, Inc. (Potomac Capital Investment Corp.) ABB Energy Capital L.L.C. Contract Payments Receivable August 30, 2017 $ 9,189,292* Pepco Energy Services, Inc. & Viron/Pepco Services Partnership John Hancock Contract Payments Receivable August 30, 2017 $ 00,000,000* POM Holdings, Inc., Pepco Energy Services, Inc., & Trigen/Pepco Services, LLC Allfirst Bank Contract Payments Receivable December, 31, 2023 $ 6,527,500* Delmarva Power & Light Company Town of St. Michaels, Maryland Distribution Equipment October 15, 2006 $ 872,000 Atlantic City Electric Co. Guo Mao International Hotels B.V. Scrubber @ B.L. England Xxxxxxxion Station January 21, 2007 $ 4,634,800 *Xxx xxount of this lien fluctuates with the amount of accounts receivable created by this program. The amount listed is as of May 31, 2002. SCHEDULE 6 NONRECOURSE INDEBTEDNESS Name of Company Aggregate Principal Amount Type of Indebtedness Potomac Capital Investment Corporation (Potomac Equipment Leasing Corporation) $19,140,000 Promissory Note with First Security Bank Potomac Capital Investment Corporation (Harmans Building Associates) $ 6,280,000 Loan Agreement with Massachusetts Mutual Conectiv Bethlehem, Inc. Up to $365 million Senior Secured Credit Facilities 4-Year Construction and Term Loan Facility * * Closed on June 26, 2002 SCHEDULE 7 EXISTING LETTERS OF CREDIT CONECTIV LETTERS OF CREDIT Expiration Date Company Beneficiary Bank Date Issued L/C # Amount 1/31/03 PHI Liberty Mutual Bank One 1/31/98 320373 $400,000 2/28/03 PHI Penn Manufacturers Assoc. Bank One 04/05/00 322173 1,175,000 [07/09/02 PHI PJM Interconnection LLC & PPL Utilities Bank One 07/10/01 325290 32,582,825 32,582,825] 09/18/02 PHI Nebraska Public Power Bank One 09/18/00 322748 250,000 10/24/02 PHI City of Bethlehem Bank One 10/25/01 325792 3,650,000 11/01/02 PHI NY ISO Bank One 09/05/01 325594 3,852,800 01/09/03 PHI BCLP Bank One 01/09/97 320349 6,000,000 01/31/03 ACE/DPL Indemnity Insurance Co. of NA Bank One 02/21/02 750148 1,600,000 01/28/03 PHI PJM Interconnection LLC or Peco or DP&L Bank One 01/30/02 326110 23,440,700 02/03/03 PHI PJM Interconnection LLC or PA Elec. Co. Bank One 03/15/02 750163 1,627,150 01/24/03 PHI Liberty Mutual Bank One 04/30/02 750199 365,000 02/03/03 PHI IMO Bank One 04/23/02 750183 3,663,554 SCHEDULE 8 PERMITTED ACE ASSET SALES Keystone Electric Generating Station* Shelocta, PA Conemaugh Electric Generating Station* New Florence, PA B L England Electric Generating Station Xxxxxxx's Pt., NJ Deepwater Electric Generating Station Pennsville, PA * Joint owned plants. ACE owns 2.47% of Keystone and 3.83% of Conemaugh TABLE OF CONTENTS ARTICLE I DEFINITIONS Page 1.1 Definitions 1 1.2 Interpretation 14 1.3 Accounting 15 ARTICLE II THE CREDITS

Rating and S&P Rating. If the applicable Borrower xx xxxxtis split-rated and the ratings differential is one level, the higher rating will apply. If the applicable Borrower is split-rated and the ratings differential is two levels or more, the intermediate rating at the midpoint will apply (or, if there is no midpoint, the higher of the two intermediate ratings will apply). If at any time the applicable Borrower has no Moody's Xxxxx'x Rating or no S&P Rating, Level VI Status shall exixxexist. SCHEDULE 2 COMMITMENTS AND PRO RATA SHARES Lender Amount of Commitment Pro Rata Share Bank One, NA $145,000,000 9.6750,000,000 9.09% Wachovia Bank, National Association Bank N.A. $140,000,000 9.3348,750,000 8.86% The Bank of Nova Scotia $140,000,000 9.3348,750,000 8.86% Credit Suisse First Boston, Cayman Islands Branch $140,000,000 9.3343,750,000 7.95% Xxxxxxx Xxxxx Bank USA $43,750,000 7.95% Fleet National Bank $43,750,000 7.96% SunTrust Bank $43,750,000 7.96% The Bank of New York $33,750,000 6.14% Mizuho Corporate Bank, Ltd. $33,750,000 6.14% Citibank, N.A. $33,750,000 6.14% KeyBank National Association $33,750,000 6.14% Bank of America, N.A. $125,000,000 8.3322,500,000 4.09% Fleet National Bank Manufacturers and Traders Trust Company $125,000,000 8.33% Bayerische Landesbank Girozentrale $ 85,000,000 5.67% Mellon Bank, N.A. $ 75,000,000 5.00% The Bank of New York $ 75,000,000 5.00% SunTrust Bank $ 75,000,000 5.00% Allfirst Bank $ 70,000,000 4.67% Merrill Lynch Bank USA $ 50,000,000 3.33% Citibank, N.A. $ 00,000,000 3.3322,500,000 4.09% The Northern Trust Company $ 50,000,000 3.33$22,500,000 4.09% Mizuho Corporate Bank, Ltd. $ 50,000,000 3.33% Wilmington Trust Company $ 25,000,000 1.67% Riggs Xxxxx Bank N.A. $ 25,000,000 1.67$12,500,000 2.27% Union Bank of Californxx, X.A. $ 25,000,000 1.67% Bank Hapoalim B.M. $ 20,000,000 1.33% E.Sun Commercial Bank, Ltd., Los Angeles Branch $ 10,000,000 0.67Xxxxxx Xxxxxxx Senior Funding Inc. $12,500,000 2.27% SCHEDULE 3 TRUST PREFERRED SECURITIES $125,000,000 of 7-3/8% Trust Originated Preferred Securities (TOPRs) issued by Potomac Electric Power Company Trust I, a statutory Delaware business trust established by Potomac Electric Power Company. $70,000,000 of 8-1/4% Cumulative Quarterly Income Preferred Securities issued by Atlantic Capital I, a special purpose statutory Delaware business trust established by Atlantic City Electric Company. $25,000,000 of 7-3/8% Cumulative Quarterly Income Preferred Securities issued by Atlantic Capital II, a special purpose statutory Delaware business trust established by Atlantic City Electric Company. $70,000,000 of 8-1/8% Cumulative Trust Preferred Capital Securities issued by Delmarva Power Financing I, a special purpose statutory Delaware business trust established by Delmarva Power & Light Company. SCHEDULE 4 SIGNIFICANT SUBSIDIARIES Name of Of Company Controlled Owned By Percent Ownership Amount of Investment (as of 3/31/023/31/03) Potomac Electric Power Company (a D.C. and Virginia corporation) Pepco Holdings, Inc Inc. 100% $1,332.8 978.5 Million Conectiv (a Delaware corporation) Pepco Holdings, Inc Inc. 100% $1,309.4 1,267.5 Million Delmarva Power & Light Company (a Delaware and Virginia corporation) Conectiv 100% $588.2 581.7 Million Atlantic City Electric Company (a New Jersey corporation) Conectiv 100% $615.6 619.1 Million Conectiv Energy Holding Company (A a Delaware corporation) Conectiv 100% $572.0 609.7 Million Conectiv Delmarva Generation, Inc Inc. (A a Delaware corporation) Conectiv Energy Holding Company 100% $447.8 476.4 Million Potomac Capital Investment Corp Corp. (a Delaware corporation) Pepco Holdings, Inc Inc. 100% $373.4 233.2 Million *After giving effect to the Merger and the Permitted Pepco Distributions Conectiv Energy Supply, Inc. (a Delaware corporation) Conectiv Energy Holding Company 100% $ 71.6 Million SCHEDULE 5 LIENS Incurred By Owed To Property Encumbered Maturity Amount of Indebtedness Potomac Electric Power Co. CitiCapital (BLC) Vehicles, Office Equip., Computers Master Agreement $ 17,210,807* $14,711,655 Potomac Electric Power Co. (Pepco Energy Services) Hannon Armstrong Xxxxxx Xxxxxxxxx Pepco Funding Corp. Contract Payments Recxxxxxxx Xxxxxx Xgreement $ 59,717,761Receivable Master Agreement $57,966,093* Potomac Electric Power Co. (Pepco Energy Services) ABB Energy Capital L.L.C. Contract Payments Receivable Master Agreement $ 10,539,803* POM Holdings, Inc. (Potomac Capital Investment Corp.) ABB Energy Capital L.L.C. Contract Payments Receivable August 30, 2017 $ 9,189,292* Pepco Energy Services, Inc. & Viron/Pepco Services Partnership John Hancock Contract Payments Receivable August 30, 2017 $ 00,000,000* POM Holdings, Inc., Pepco Energy Services, Inc., & Trigen/Pepco Services, LLC Allfirst Bank Contract Payments Receivable December, 31, 2023 $ 6,527,500$9,094,154* Delmarva Power & Light Company Town of St. Michaels, Maryland Distribution Equipment October 15, 2006 $ 872,000 $681,236 Atlantic City Electric Co. Guo Mao Xxx Xxx International Hotels B.V. Scrubber @ B.L. England Xxxxxxxion X.X. Xxxxxxx Generation Station January 21, 2007 $ 4,634,800 $4,608,230 Potomac Electric Power Co. Avaya Financial Services Telecommunications Equipment September 15, 2008 $1,236,361 Potomac Electric Power Co. Storagetek Financial Srvc Corp. Computer Equipment September 1, 2006 $351,636 Potomac Electric Power Co. CIT Communications Finance Corporation Telecommunications Equipment May 1, 2006 $266,284 *Xxx xxount The amount of this lien fluctuates with the amount of accounts receivable created by this program. The amount listed is as of May 31June 30, 20022003. SCHEDULE 6 NONRECOURSE INDEBTEDNESS Name of Of Company Aggregate Principal Amount Type of Of Indebtedness Potomac Capital Investment Corporation (Potomac Equipment Leasing Corporation) $19,140,000 Promissory Note with First Security Bank Potomac Capital Investment Corporation (Harmans Building Associates) $ 6,280,000 Loan Agreement with Massachusetts Mutual Conectiv Bethlehem, Inc. Up to $365 million Senior Secured Credit Facilities 4-Year Construction and Term Loan Facility * * Closed on June 26, 2002 SCHEDULE 7 EXISTING LETTERS OF CREDIT CONECTIV LETTERS OF CREDIT Expiration Date Company Beneficiary Bank Date Issued L/C # Amount 1/31/03 PHI Liberty Mutual Bank One 1/31/98 320373 $400,000 2/28/03 PHI Penn Manufacturers Assoc. Bank One 04/05/00 322173 1,175,000 07/09/02 PHI PJM Interconnection LLC & PPL Utilities Bank One 07/10/01 325290 32,582,825 09/18/02 PHI Nebraska Public Power Bank One 09/18/00 322748 250,000 10/24/02 PHI City of Bethlehem Bank One 10/25/01 325792 3,650,000 11/01/02 PHI NY ISO Bank One 09/05/01 325594 3,852,800 01/09/03 PHI BCLP Bank One 01/09/97 320349 6,000,000 01/31/03 ACE/DPL Indemnity Insurance Co. of NA Bank One 02/21/02 750148 1,600,000 01/28/03 PHI PJM Interconnection LLC or Peco or DP&L Bank One 01/30/02 326110 23,440,700 02/03/03 PHI PJM Interconnection LLC or PA Elec. Co. Bank One 03/15/02 750163 1,627,150 01/24/03 PHI Liberty Mutual Bank One 04/30/02 750199 365,000 02/03/03 PHI IMO Bank One 04/23/02 750183 3,663,554 SCHEDULE 8 PERMITTED ACE ASSET SALES Keystone Electric Generating Station* Shelocta, PA Conemaugh Electric Generating Station* New Florence, PA B L England Electric Generating Station Xxxxxxx's Pt., NJ Deepwater Electric Generating Station Pennsville, PA * Joint owned plants. ACE owns 2.47% of Keystone and 3.83% of Conemaugh TABLE OF CONTENTS ARTICLE I DEFINITIONS Page 1.1 Definitions 1 1.2 Interpretation 14 1.3 Accounting 15 ARTICLE II THE CREDITS*

Rating and S&P Rating. If the applicable Borrower xx xxxxtis split-rated and the ratings differential is one level, the higher rating will apply. If the applicable Borrower is split-rated and the ratings differential is two levels or more, the intermediate rating at the midpoint will apply (or, if there is no midpoint, the higher of the two intermediate ratings will apply). If at any time the applicable Borrower has no Moody's Xxxxx'x Rating or no S&P Rating, Level VI Status shall exixxexist. SCHEDULE 2 COMMITMENTS AND PRO RATA SHARES Lender Amount of Commitment Pro Rata Share Bank One, NA $145,000,000 9.6750,000,000 9.09% Wachovia Bank, National Association Bank N.A. $140,000,000 9.3348,750,000 8.86% The Bank of Nova Scotia $140,000,000 9.3348,750,000 8.86% Credit Suisse First Boston, Cayman Islands Branch $140,000,000 9.3343,750,000 7.95% Xxxxxxx Xxxxx Bank USA $43,750,000 7.95% Fleet National Bank $43,750,000 7.96% SunTrust Bank $43,750,000 7.96% The Bank of New York $33,750,000 6.14% Mizuho Corporate Bank, Ltd. $33,750,000 6.14% Citibank, N.A. $33,750,000 6.14% KeyBank National Association $33,750,000 6.14% Bank of America, N.A. $125,000,000 8.3322,500,000 4.09% Fleet National Bank Manufacturers and Traders Trust Company $125,000,000 8.33% Bayerische Landesbank Girozentrale $ 85,000,000 5.67% Mellon Bank, N.A. $ 75,000,000 5.00% The Bank of New York $ 75,000,000 5.00% SunTrust Bank $ 75,000,000 5.00% Allfirst Bank $ 70,000,000 4.67% Merrill Lynch Bank USA $ 50,000,000 3.33% Citibank, N.A. $ 00,000,000 3.3322,500,000 4.09% The Northern Trust Company $ 50,000,000 3.33$22,500,000 4.09% Mizuho Corporate Bank, Ltd. $ 50,000,000 3.33% Wilmington Trust Company $ 25,000,000 1.67% Riggs Xxxxx Bank N.A. $ 25,000,000 1.67$12,500,000 2.27% Union Bank of Californxx, X.A. $ 25,000,000 1.67% Bank Hapoalim B.M. $ 20,000,000 1.33% E.Sun Commercial Bank, Ltd., Los Angeles Branch $ 10,000,000 0.67Xxxxxx Xxxxxxx Senior Funding Inc. $12,500,000 2.27% SCHEDULE 3 TRUST PREFERRED SECURITIES $125,000,000 of 7-3/8% Trust Originated Preferred Securities (TOPRs) issued by Potomac Electric Power Company Trust I, a statutory Delaware business trust established by Potomac Electric Power Company. $70,000,000 of 8-1/4% Cumulative Quarterly Income Preferred Securities issued by Atlantic Capital I, a special purpose statutory Delaware business trust established by Atlantic City Electric Company. $25,000,000 of 7-3/8% Cumulative Quarterly Income Preferred Securities issued by Atlantic Capital II, a special purpose statutory Delaware business trust established by Atlantic City Electric Company. $70,000,000 of 8-1/8% Cumulative Trust Preferred Capital Securities issued by Delmarva Power Financing I, a special purpose statutory Delaware business trust established by Delmarva Power & Light Company. SCHEDULE 4 SIGNIFICANT SUBSIDIARIES Name of Of Company Controlled Owned By Percent Ownership Amount of Investment (as of 3/31/023/31/03) Potomac Electric Power Company (a D.C. and Virginia corporation) Pepco Holdings, Inc Inc. 100% $1,332.8 978.5 Million Conectiv (a Delaware corporation) Pepco Holdings, Inc Inc. 100% $1,309.4 1,267.5 Million Delmarva Power & Light Company (a Delaware and Virginia corporation) Conectiv 100% $588.2 581.7 Million Atlantic City Electric Company (a New Jersey corporation) Conectiv 100% $615.6 619.1 Million Conectiv Energy Holding Company (A a Delaware corporation) Conectiv 100% $572.0 609.7 Million Conectiv Delmarva Generation, Inc Inc. (A a Delaware corporation) Conectiv Energy Holding Company 100% $447.8 476.4 Million Potomac Capital Investment Corp Corp. (a Delaware corporation) Pepco Holdings, Inc Inc. 100% $373.4 233.2 Million *After giving effect to the Merger and the Permitted Pepco Distributions Conectiv Energy Supply, Inc. (a Delaware corporation) Conectiv Energy Holding Company 100% $ 71.6 Million SCHEDULE 5 LIENS Incurred By Owed To Property Encumbered Maturity Amount of Indebtedness Potomac Electric Power Co. CitiCapital (BLC) Vehicles, Office Equip., Computers Master Agreement $ 17,210,807* $14,711,655 Potomac Electric Power Co. (Pepco Energy Services) Hannon Armstrong Xxxxxx Xxxxxxxxx Pepco Funding Corp. Contract Payments Recxxxxxxx Xxxxxx Xgreement $ 59,717,761Receivable Master Agreement $57,966,093* Potomac Electric Power Co. (Pepco Energy Services) ABB Energy Capital L.L.C. Contract Payments Receivable Master Agreement $ 10,539,803* POM Holdings, Inc. (Potomac Capital Investment Corp.) ABB Energy Capital L.L.C. Contract Payments Receivable August 30, 2017 $ 9,189,292* Pepco Energy Services, Inc. & Viron/Pepco Services Partnership John Hancock Contract Payments Receivable August 30, 2017 $ 00,000,000* POM Holdings, Inc., Pepco Energy Services, Inc., & Trigen/Pepco Services, LLC Allfirst Bank Contract Payments Receivable December, 31, 2023 $ 6,527,500$9,094,154* Delmarva Power & Light Company Town of St. Michaels, Maryland Distribution Equipment October 15, 2006 $ 872,000 $681,236 Atlantic City Electric Co. Guo Mao Xxx Xxx International Hotels B.V. Scrubber @ B.L. England Xxxxxxxion X.X. Xxxxxxx Generation Station January 21, 2007 $ 4,634,800 $4,608,230 Potomac Electric Power Co. Avaya Financial Services Telecommunications Equipment September 15, 2008 $1,236,361 Potomac Electric Power Co. Storagetek Financial Srvc Corp. Computer Equipment September 1, 2006 $351,636 Potomac Electric Power Co. CIT Communications Finance Corporation Telecommunications Equipment May 1, 2006 $266,284 *Xxx xxount The amount of this lien fluctuates with the amount of accounts receivable created by this program. The amount listed is as of May 31June 30, 20022003. SCHEDULE 6 NONRECOURSE INDEBTEDNESS Name of Of Company Aggregate Principal Amount Type of Of Indebtedness Potomac Capital Investment Corporation (Potomac Equipment Leasing Corporation) $19,140,000 Promissory Note with First Security Bank Potomac Capital Investment Corporation (Harmans Building Associates) $ 6,280,000 Loan Agreement with Massachusetts Mutual Conectiv Bethlehem, Inc. Up to $365 million Senior Secured Credit Facilities 4-Year Construction and Term Loan Facility * * Closed on June 26, 2002 SCHEDULE 7 EXISTING LETTERS OF CREDIT CONECTIV LETTERS OF CREDIT Expiration Date Company Beneficiary Bank Date Issued L/C # Amount 1/31/03 PHI Liberty Mutual Bank One 1/31/98 320373 $400,000 2/28/03 PHI Penn Manufacturers Assoc. Bank One 04/05/00 322173 1,175,000 07/09/02 PHI PJM Interconnection LLC & PPL Utilities Bank One 07/10/01 325290 32,582,825 09/18/02 PHI Nebraska Public Power Bank One 09/18/00 322748 250,000 10/24/02 PHI City of Bethlehem Bank One 10/25/01 325792 3,650,000 11/01/02 PHI NY ISO Bank One 09/05/01 325594 3,852,800 01/09/03 PHI BCLP Bank One 01/09/97 320349 6,000,000 01/31/03 ACE/DPL Indemnity Insurance Co. of NA Bank One 02/21/02 750148 1,600,000 01/28/03 PHI PJM Interconnection LLC or Peco or DP&L Bank One 01/30/02 326110 23,440,700 02/03/03 PHI PJM Interconnection LLC or PA Elec. Co. Bank One 03/15/02 750163 1,627,150 01/24/03 PHI Liberty Mutual Bank One 04/30/02 750199 365,000 02/03/03 PHI IMO Bank One 04/23/02 750183 3,663,554 SCHEDULE 8 PERMITTED ACE ASSET SALES Keystone Electric Generating Station* Shelocta, PA Conemaugh Electric Generating Station* New FlorenceXxxxxxxx, PA B L England X X Xxxxxxx Electric Generating Station Xxxxxxx's Xxxxxxx'x Pt., NJ Deepwater Electric Generating Station Pennsville, PA City of Vineland, New Jersey electrical distribution assets Vineland, New Jersey * Joint owned plants. ACE owns 2.47% of Keystone and 3.83% of Conemaugh TABLE OF CONTENTS ARTICLE I DEFINITIONS Page 1.1 Definitions 1 1.2 Interpretation 14 1.3 Accounting 15 ARTICLE II THE CREDITSConemaugh