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<TITLE>Current Report on Form 8-K</TITLE>
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<P ALIGN="CENTER">UNITED STATES</P>
<P ALIGN="CENTER">SECURITIES AND EXCHANGE COMMISSION</P>
<P ALIGN="CENTER">Washington, D.C. 20549</B></FONT></TD>
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<B><FONT SIZE=3><P ALIGN="CENTER">FORM 8-K/A</B></FONT></TD>
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<B><FONT SIZE=3><P ALIGN="CENTER">CURRENT REPORT</B></FONT></TD>
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<B><FONT SIZE=3><P ALIGN="CENTER">Pursuant to Section 13 or 15(d) of <BR>
The Securities Exchange Act of 1934</P>
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<FONT SIZE=3><P ALIGN="CENTER">Date of Report (Date of earliest event reported):  <B>July 26, 2007</B></FONT></TD>
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<U><FONT SIZE=3><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B>PEPCO HOLDINGS, INC.</B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
</U>(Exact name of registrant as specified in its charter)</FONT></TD>
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<B><U><FONT SIZE=3><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Delaware&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
</B></U>(State or other jurisdiction<BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;of incorporation)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
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<B><U><FONT SIZE=3><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;001-31403&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B></U><BR>
(Commission<BR>
File Number)</FONT></TD>
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<B><U><FONT SIZE=3><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;52-2297449&nbsp;&nbsp;&nbsp;&nbsp;</B><BR>
</U>(IRS Employer <BR>
Identification No.)</FONT></TD>
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<B><U><FONT SIZE=3><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;701 Ninth Street, N.W., Washington, DC&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><BR>
</U>(Address of principal executive offices)</FONT></TD>
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<B><U><FONT SIZE=3><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20068&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>&nbsp;<BR>
</U>(Zip Code)</FONT></TD>
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<FONT SIZE=3><P ALIGN="CENTER">Registrant's telephone number, including area code &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><U>(202) 872-3526</B></U></FONT></TD>
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<B><U><FONT SIZE=3><P ALIGN="CENTER">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not Applicable&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B><BR>
</U>(Former name or former address, if changed since last report.)</FONT></TD>
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<FONT SIZE=3><P>Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:</FONT></TD>
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<FONT FACE="Wingdings" SIZE=3><P ALIGN="CENTER">&#111;</FONT></TD>
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<FONT SIZE=3><P>Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</FONT></TD>
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<FONT FACE="Wingdings" SIZE=3><P ALIGN="CENTER">&#111;</FONT></TD>
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<FONT SIZE=3><P>Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)</FONT></TD>
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<FONT FACE="Wingdings" SIZE=3><P ALIGN="CENTER">&#111;</FONT></TD>
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<FONT SIZE=3><P>Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17&nbsp;CFR&nbsp;240.14d-2(b))</FONT></TD>
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<FONT FACE="Wingdings" SIZE=3><P ALIGN="CENTER">&#111;</FONT></TD>
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<FONT SIZE=3><P>Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17&nbsp;CFR&nbsp;240.13e-4(c))</FONT></TD>
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<B><FONT SIZE=3><P ALIGN="RIGHT">Pepco Holdings, Inc.<BR>
Form 8-K</B></FONT></TD>
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<B><FONT SIZE=3><P>Item 5.02</B></FONT></TD>
<TD WIDTH="87%" VALIGN="TOP" COLSPAN=3>
<B><FONT SIZE=3><P>Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers.</B></FONT></TD>
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<TR><TD WIDTH="13%" VALIGN="TOP" COLSPAN=2>&nbsp;</TD>
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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=3>On July 26, 2007, Pepco Holdings, Inc. (the "Company") entered into a new employment agreement (the "New Agreement") with Dennis R. Wraase, the Company's Chairman, President and Chief Executive Officer, replacing the employment agreement he entered into in 2002 (the "Prior Agreement").  The following is a description of the terms and conditions of the New Agreement:</FONT></TD>
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<FONT SIZE=3><P>The term of the New Agreement, like that of the Prior Agreement, is until April 1, 2009, the date on which Mr. Wraase reaches normal retirement age under the general retirement subplan of the Company's retirement plan.</FONT></TD>
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<FONT SIZE=3><P>During the term of the New Agreement, Mr. Wraase is entitled to: (i) an annual salary in an amount of not less than $1,025,000, the base salary in effect on the date he entered into the New Agreement, (ii) incentive compensation as determined by the Board of Directors under plans applicable to senior executives of the Company, but he will not be entitled to receive any incentive awards in 2009 under either the Executive Incentive Plan, which is the Company's annual incentive plan, or the Company's Long Term Incentive Plan, and (iii) otherwise participate, in a manner similar to other senior executives, in retirement plans, fringe benefit plans, supplemental benefit plans and other plans and programs provided by the Company for its executives or employees.</FONT></TD>
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<FONT SIZE=3><P>Upon termination of Mr. Wraase's employment at any time and for any reason, including voluntary resignation, Mr. Wraase will be entitled to receive the following benefits:</FONT></TD>
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<FONT SIZE=3><P ALIGN="CENTER">o</FONT></TD>
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<FONT SIZE=3><P>A lifetime monthly supplemental retirement benefit, payable in cash, equal to (i) 1/12 of 65% of the sum of (A) his annual base salary rate in effect at the time of termination and (B) the highest annual bonus received during the four calendar years preceding the year in which the termination occur (the "Calculation Amount"), less the monthly retirement benefit he receives for that month under the Company's qualified defined benefit retirement plan and any non-qualified defined benefit retirement plan or supplemental retirement plan in which he participates (collectively, "Retirement Plans").  If Mr. Wraase is survived by his spouse, his spouse is entitled to receive a lifetime monthly supplemental retirement benefit, payable in cash, equal to 75% of the Calculation Amount, less the monthly retirement benefit, if any, payable to her under the Retirement Plans.</FONT></TD>
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<FONT SIZE=3><P ALIGN="CENTER">o</FONT></TD>
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<FONT SIZE=3><P>All unvested service-based restricted stock awards under the Company's Long-Term Incentive Plan (the "LTIP") will vest on April 1, 2009 (as compared to the vesting under the Prior Agreement of only those shares that would have become vested had he remained employed for the remainder of the term of Prior Agreement).</FONT></TD>
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<B><FONT SIZE=3><P ALIGN="RIGHT">Pepco Holdings, Inc.<BR>
Form 8-K</B></FONT></TD>
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<FONT SIZE=3><P ALIGN="CENTER">o</FONT></TD>
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<FONT SIZE=3><P>All outstanding performance-based restricted stock awards under the LTIP will vest on a pro-rated basis for service during the applicable performance period to the extent the pre-established performance objectives are achieved<B> </B>(as compared to vesting under the Prior Agreement only with respect to awards for performance periods that ended within the term of the Prior Agreement).</FONT></TD>
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<FONT SIZE=3><P ALIGN="CENTER">o</FONT></TD>
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<FONT SIZE=3><P>Tax preparation and planning services until his 70<SUP>th</SUP>  birthday at the same level he was receiving such services at the time his employment terminated.</FONT></TD>
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<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT SIZE=3>By entering into the New Agreement, Mr. Wraase relinquished the right to receive under the Prior Agreement (i) a severance payment in an amount equal to three times his combined salary and bonus and (ii) a lump sum supplemental retirement benefit, if, prior to April 1, 2009, his employment were to have been terminated by the Company without "cause" or he elected to terminate his employment for certain specified reasons generally involving the diminution of status or the reduction in benefits.  In addition, Mr. Wraase gave up the right to receive a gross-up payment for any excise tax payments he would have incurred had any payments made to him in connection with a termination of his employment been determined to be payments related to a change-in-control within the meaning of Section 280G of the Internal Revenue Code.</FONT></TD>
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<B><FONT SIZE=3><P ALIGN="CENTER">SIGNATURES</B></FONT></TD>
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<B><FONT SIZE=3><P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</B>Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.</FONT></TD>
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<U><FONT SIZE=3><P>&nbsp;&nbsp;PEPCO HOLDINGS, INC.&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant)</FONT></TD>
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<FONT SIZE=3><P>Date &nbsp;&nbsp;&nbsp;&nbsp;<U>&nbsp;&nbsp;&nbsp;July 27, 2007&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U></FONT></TD>
<TD WIDTH="55%" VALIGN="TOP" HEIGHT=31>
<U><FONT SIZE=3><P>&nbsp;/s/ JOSEPH M. RIGBY&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><BR>
Name:&nbsp;&nbsp;Joseph M. Rigby<BR>
Title:&nbsp;&nbsp;&nbsp;&nbsp;Senior Vice President and <BR>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Chief Financial Officer</FONT></TD>
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{"company-data": {"conformed-name": "PEPCO HOLDINGS INC", "cik": "0001135971", "assigned-sic": "4931", "irs-number": "522297449", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "001-31403", "film-number": "071007290"}, "business-address": {"street1": "SUITE 1300", "street2": "701 NINTH STREET, NW", "city": "WASHINGTON", "state": "DC", "zip": "20068", "phone": "202-872-2000"}, "mail-address": {"street1": "SUITE 1300", "street2": "701 NINTH STREET, NW", "city": "WASHINGTON", "state": "DC", "zip": "20068"}, "former-company": {"former-conformed-name": "NEW RC INC", "date-changed": "20010302"}}
Current Report on Form 8-K
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K/A
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
July 26, 2007
PEPCO HOLDINGS, INC.
(Exact name of registrant as specified in its charter)
Delaware
(State or other jurisdiction
of incorporation)
001-31403
(Commission
File Number)
52-2297449
(IRS Employer
Identification No.)
701 Ninth Street, N.W., Washington, DC
(Address of principal executive offices)
20068
(Zip Code)
Registrant's telephone number, including area code
(202) 872-3526
Not Applicable
(Former name or former address, if changed since last report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Pepco Holdings, Inc.
Form 8-K
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangement of Certain Officers.
On July 26, 2007, Pepco Holdings, Inc. (the "Company") entered into a new employment agreement (the "New Agreement") with Dennis R. Wraase, the Company's Chairman, President and Chief Executive Officer, replacing the employment agreement he entered into in 2002 (the "Prior Agreement").  The following is a description of the terms and conditions of the New Agreement:
·
The term of the New Agreement, like that of the Prior Agreement, is until April 1, 2009, the date on which Mr. Wraase reaches normal retirement age under the general retirement subplan of the Company's retirement plan.
·
During the term of the New Agreement, Mr. Wraase is entitled to: (i) an annual salary in an amount of not less than $1,025,000, the base salary in effect on the date he entered into the New Agreement, (ii) incentive compensation as determined by the Board of Directors under plans applicable to senior executives of the Company, but he will not be entitled to receive any incentive awards in 2009 under either the Executive Incentive Plan, which is the Company's annual incentive plan, or the Company's Long Term Incentive Plan, and (iii) otherwise participate, in a manner similar to other senior executives, in retirement plans, fringe benefit plans, supplemental benefit plans and other plans and programs provided by the Company for its executives or employees.
·
Upon termination of Mr. Wraase's employment at any time and for any reason, including voluntary resignation, Mr. Wraase will be entitled to receive the following benefits:
o
A lifetime monthly supplemental retirement benefit, payable in cash, equal to (i) 1/12 of 65% of the sum of (A) his annual base salary rate in effect at the time of termination and (B) the highest annual bonus received during the four calendar years preceding the year in which the termination occur (the "Calculation Amount"), less the monthly retirement benefit he receives for that month under the Company's qualified defined benefit retirement plan and any non-qualified defined benefit retirement plan or supplemental retirement plan in which he participates (collectively, "Retirement Plans").  If Mr. Wraase is survived by his spouse, his spouse is entitled to receive a lifetime monthly supplemental retirement benefit, payable in cash, equal to 75% of the Calculation Amount, less the monthly retirement benefit, if any, payable to her under the Retirement Plans.
o
All unvested service-based restricted stock awards under the Company's Long-Term Incentive Plan (the "LTIP") will vest on April 1, 2009 (as compared to the vesting under the Prior Agreement of only those shares that would have become vested had he remained employed for the remainder of the term of Prior Agreement).
-2-
Pepco Holdings, Inc.
Form 8-K
o
All outstanding performance-based restricted stock awards under the LTIP will vest on a pro-rated basis for service during the applicable performance period to the extent the pre-established performance objectives are achieved
(as compared to vesting under the Prior Agreement only with respect to awards for performance periods that ended within the term of the Prior Agreement).
o
Tax preparation and planning services until his 70
th
birthday at the same level he was receiving such services at the time his employment terminated.
By entering into the New Agreement, Mr. Wraase relinquished the right to receive under the Prior Agreement (i) a severance payment in an amount equal to three times his combined salary and bonus and (ii) a lump sum supplemental retirement benefit, if, prior to April 1, 2009, his employment were to have been terminated by the Company without "cause" or he elected to terminate his employment for certain specified reasons generally involving the diminution of status or the reduction in benefits.  In addition, Mr. Wraase gave up the right to receive a gross-up payment for any excise tax payments he would have incurred had any payments made to him in connection with a termination of his employment been determined to be payments related to a change-in-control within the meaning of Section 280G of the Internal Revenue Code.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PEPCO HOLDINGS, INC.
(Registrant)
Date
July 27, 2007
/s/ JOSEPH M. RIGBY
Name:  Joseph M. Rigby
Title:    Senior Vice President and
Chief Financial Officer
-3-