Pepco Holdings, Inc. (Pepco Holdings) is a diversified energy company that, through its operating subsidiaries, is engaged in two businesses: distribution, transmission and default supply of electricity and the delivery and supply of natural gas (Power Delivery), and competitive energy generation, marketing and supply (Competitive Energy). The distribution, transmission and default supply of electricity and the delivery and supply of natural gas is conducted through Potomac Electric Power Company (Pepco), Delmarva Power and Light Company (DPL) and Atlantic City Electric Company (ACE). The competitive energy generation, marketing and supply is conducted through subsidiaries of Conectiv Energy Holding Company (Conectiv Energy) and Pepco Energy Services, Inc. and its subsidiaries (Pepco Energy Services). PHI Service Company provides legal, accounting, treasury, tax, purchasing and information technology services to Pepco Holdings and its operating subsidiaries.