Pepco Holdings, Inc. will buy GE’s smart meters for use in the deployment of its advanced metering infrastructure (AMI) in the state of Delaware, with flexibility to expand usage of the smart meters in other areas of PHI’s service territory.

With a never-ending increase in energy demand, a shortage of new generation sources and concern over climate change, the smart grid is emerging as a valuable tool to deliver more power to consumers without building more power plants. It promises increased efficiencies, a reduction in peak power requirements, and improved integration of renewable energy resources – all helping to slow the demand for new fossil-fuel generation. If U.S. Smart Grid deployments increase grid efficiency by just 5 percent, it will eliminate the need to build 42 coal-fired power plants.

“PHI’s vision is to change the relationship we have with our customers,” said Joseph M. Rigby, president and chief executive officer of PHI. “With new digital smart meters and the smart grid, PHI’s utilities will be able to provide up-to-date energy information and tools that will help our customers manage their energy use and costs. PHI is proud to be a leader in the transformation of the electric delivery industry.”

Communications technologies within GE’s smart meters will also help PHI detect and better respond to power outages, further improving the energy experience for PHI consumers and business customers alike. Installation of the GE meters is expected to begin in the fourth quarter of 2009 in Delaware.