Preventing Pollution

Pollution prevention is a key component of PHI’s approach to minimizing the environmental impact associated with providing reliable electric power to our customers. At PHI our objective is to prevent pollution before it occurs and, in instances where pollution does occur, take steps to mitigate it.

Renewable Energy

PHI and its family of companies continue to produce, sell and promote renewable, or “green” energy. Green energy comes from renewable energy sources such as wind, hydro, solar and biomass, including wood and solid waste. Electricity produced from renewable resources reduces the amount of carbon dioxide (CO₂), a key greenhouse gas, as well as sulfur dioxide (SO₂) and nitrogen oxides (NO_x) emitted into the atmosphere.

Pepco Energy Services (PES), a non-regulated subsidiary of PHI, has contracted to sell just over 325,000 million kilowatt-hours of electricity produced from renewable sources over the next several years to government, commercial and residential users. In addition to high-volume sales to large end-users, including the General Services Administration and the U.S. Department of Agriculture, as well as several New Jersey and Maryland state agencies, thousands of PES residential customers have switched to electricity produced from renewable sources.

During 2004, PES provided green energy to more than 33 percent of its residential and small commercial customers. Some turn on the lights, washing machines and televisions with power from 100 percent renewable resources; others with a mix containing from 10 percent to 51 percent green electricity. In the spirit of strengthening our partnerships with environmental organizations, PES rewards “green” residential customers with a free one-year membership to the Chesapeake Bay Foundation. Other strategic partners include the Anacostia Watershed Society, Arbor Day Foundation, the Landfill Methane Outreach Program and the EPA Energy Star Program.

PES has placed into service two 1,000-kilowatt engine generators in Fauquier County, Virginia, that burn methane gas produced from the decomposition of waste in a landfill. In 2005, a third generator, which will produce 5,000 kilowatts while reducing the amount of greenhouse gas emitted in the atmosphere is being installed in Berks County, Pennsylvania.

Emission Reductions

Every corporation takes a unique approach to mitigating its environmental footprint based on its impact on the environment. PHI’s largest generating facilities, the Hay Road Power Complex in Delaware and the Bethlehem plant in Pennsylvania are powered by natural gas and are two of the cleanest fossil fuel-fired power plants in the world, utilizing state-of-the-art technology. In addition, our Edgemoor facility in Delaware is able to utilize waste gas to generate electricity. All power plants owned by PHI operate within Clean Air Act standards.

Recycling—Walking the Walk

Recycling is a way of life at PHI. Whether placing a single sheet of used paper into the recycle bin, donating old tennis shoes or reconditioning and reusing a piece of equipment, employees at all levels of our business contribute to the recycling efforts at PHI. Our philosophy on recycling can be summed up this way: If it can be recycled, it is recycled.

On a large scale, we recycle items that go into the production and distribution of electricity— everything from the metal and wires that distribute the electricity to the tires used on our service vehicles. The company also places a premium on reconditioning and reusing equipment, including electrical cables, meters, transformers and myriad other items.

On a smaller, but still significant scale, all of our employees are encouraged to recycle the items they use while at work—from soda cans, plastics and newspapers to used toner cartridges. Recycling collection bins are located throughout all of our facilities, and they are used! In 2004, we recycled more than 650 tons of aluminum, plastic and paper— material that otherwise would have ended up in the dumpsters.

PHI, partnering with the District of Columbia, actively promoted and participated in electronic recycling events, where used computers, televisions, radios and other electronic items were collected. Many of those items contained chemicals and other elements that are potentially harmful to our environment.

Old tennis shoes were added to PHI’s recyclable commodities this year. The shoes are ground up to make Nike Grind, a unique material that is used to resurface athletic fields and courts, tracks and playgrounds.

In May 2004, PHI was awarded the “Outstanding Corporate Leadership Award” by the Maryland Recyclers Coalition. This award is presented to any industry, business or corporation that has demonstrated outstanding leadership in waste reduction and/or recycling efforts in Maryland over the past year. PHI’s Rockville Service Center received an “Outstanding Business” Recycling Award by Montgomery County for outstanding leadership in waste reduction. The facility recycled nearly 400,000 pounds of scrap metal, wooden poles, computer products, transformers and various packing materials and paper products.

In July 2004, Conectiv Energy’s Environmental Team was recognized by the Natural Land Trust organization for their participation in a shoreline cleanup of Union Lake, a beautiful recreational lake in Millville, New Jersey.

In October 2004, PHI received an “Honorable Mention” award from the U.S. Environmental Protection Agency for its electronics recycling efforts. The award is part of the agency’s ongoing Waste Wise campaign and is presented to companies and organizations that have “made noteworthy accomplishments” in waste prevention and recycling efforts.