Filed Pursuant To:  Rule 424(b)(3)
                                          Registration No.:   33-50377

Pricing Supplement No. 1 Dated January 12, 1994
(To Prospectus dated September 28, 1993 and
Prospectus Supplement dated January 10, 1994)

                        POTOMAC ELECTRIC POWER COMPANY

                          MEDIUM-TERM NOTES, SERIES A

                                 (FIXED RATE)

               DUE FROM 9 MONTHS TO 30 YEARS FROM DATE OF ISSUE

Principal Amount.................................     $50,000,000

Original Issue Date..............................     January 20, 1994

Maturity Date....................................     January 20, 2009

Price to Public (As a % of Principal Amount).....     100%

Interest Rate....................................     6.250%

Interest Payment Dates...........................     February 1 and August 1

Initial Redemption Date..........................     Not applicable

Initial Redemption Percentage....................     Not applicable

Annual Redemption Percentage Reduction...........     Not applicable

Refunding Rate...................................     Not applicable

Limitation Date..................................     Not applicable

      If an initial Redemption Date has been specified above, the Medium-Term
Notes to which this Pricing Supplement relates (the "Notes") will be
redeemable as a whole or in part, in increments of $1,000 (provided that any
remaining principal amount of any such Note shall be at least $100,000), on
the Initial Redemption Date or on any date subsequent thereto, at the option
of the Company upon not more than 60 nor less than 30 days' previous notice,
at the applicable redemption price set forth below, with accrued Interest to
the date of redemption; provided, however, that if a Limitation Date has been
specified above, no Notes shall be redeemed prior to the Limitation Date
specified above as a part of, or in anticipation of, any refunding operation
by the application, directly or indirectly, of monies borrowed having an
interest cost to the Company (calculated in accordance with generally accepted
financial practice) of less than the Refunding Rate specified above.  The
redemption price shall initially be the Initial Redemption Percentage
specified above of the principal amount of the Notes to be redeemed and shall
decline at each anniversary of the Initial Redemption Date by the Annual
Redemption Percentage Reduction specified above of the principal amount to be
redeemed until the redemption price is 100% of such principal amount.

      Merrill Lynch & Co., Merrill Lynch, Pierce, Fenner & Smith Incorporated
(Merrill Lynch) has purchased the Notes as principal from the Company at a
price of 99.30% of the aggregate principal amount thereof for resale to
investors and other purchasers as set forth herein.