FS-13 Page 1 of 2
PEPCO HOLDINGS, INC. AND SUBSIDIARIES PRO FORMA CONSOLIDATED BALANCE SHEETS (Dollars in Millions) (Unaudited)
			June 30, 2003	Pro Forma Adjustments	Pro Forma
ASSETS
Current Assets
	Cash and cash equivalents		$           99.3	$               -	$        99.3
	Restricted cash		6.1	-	6.1
	Marketable securities		173.5	-	173.5
	Restricted funds held by trustee		28.1	-	28.1
	Accounts receivable, less allowance for     uncollectible accounts		1,071.7	-	1,071.7
	Fuel, materials and supplies - at average cost		245.1	-	245.1
	Prepaid expenses and other		97.9	-	97.9
		Total Current Assets	1,721.7	-	1,721.7
Investments and Other Assets
	Goodwill		1,432.5	-	1,432.5
	Regulatory assets, net		1,183.7	-	1,183.7
	Investment in finance leases		1,114.9	-	1,114.9
	Prepaid pension costs		118.9	-	118.9
	Other		592.3	-	592.3
		Total Investments and Other Assets	4,442.3	-	4,442.3
Property, Plant and Equipment
	Property, plant and equipment		10,764.5	-	10,764.5
	Accumulated depreciation		(3,959.3)	-	(3,959.3)
		Net Property, Plant, and Equipment	6,805.2	-	6,805.2
Total Assets			$    12,969.2	$               -	$  12,969.2

FS-13 Page 2 of 2
PEPCO HOLDINGS, INC. AND SUBSIDIARIES PRO FORMA CONSOLIDATED BALANCE SHEETS (Dollars in Millions) (Unaudited)
			June 30, 2003	Pro Forma Adjustments		Pro Forma
CAPITALIZATION AND LIABILITIES
Current Liabilities
	Short-term debt		$     1,129.6	$      (136.8)	(1)	$      992.8
	Accounts payable and accrued payroll		541.8	-		541.8
	Capital lease obligations due within one year		15.8	-		15.8
	Interest and taxes accrued		142.9	-		142.9
	Other		543.7	-		543.7
		Total Current Liabilities	2,373.8	(136.8)		2,237.0
Deferred Credits
	Income taxes		1,605.1	-		1,605.1
	Investment tax credits		66.3	-		66.3
	Other		472.8	-		472.8
		Total Deferred Credits	2,144.2	-		2,144.2
Long-Term Debt and Capital Lease Obligations
	Long-term debt		5,060.7	136.8	(2)	5,197.5
	Capital lease obligations		117.6	-		117.6
		Total Long-Term Debt and Capital Lease Obligations	5,178.3	136.8		5,315.1
Company Obligated Mandatorily Redeemable Preferred Securities    Of Subsidiary Trust Which Holds Solely Parent Junior    Subordinated Debentures			220.0	-		220.0
Preferred Stock
	Serial preferred stock		35.3	-		35.3
	Redeemable serial preferred stock		75.4	-		75.4
			110.7	-		110.7
Commitments and Contingencies
Shareholders' Equity
	Common stock: $0.01 per share par value; 1,000 shares   authorized, shares outstanding - - 100;		1.7	-		1.7
	Premium on stock and other capital contributions		2,229.6	-		2,229.6
	Capital stock expense		(3.3)	-		(3.3)
	Accumulated other comprehensive loss		(56.9)	-		(56.9)
	Retained income		771.1	-		771.1
		Total Shareholders' Equity	2,942.2	-		2,942.2
Total Capitalization and Liabilities			$  12,969.2	$               -		$  12,969.2