Conectiv, a wholly subsidiary of Pepco Holdings, Inc., focuses on two core energy businesses, through its subsidiaries: Conectiv Power Delivery and Conectiv Energy. Conectiv owns other subsidiaries in addition to Atlantic City Electric Company (ACE) and Delmarva Power & Light Company (DPL), including Conectiv Energy Holding Company (CEH). ACE and DPL are public utilities that supply and deliver electricity through their transmission and distribution systems to approximately 999,400 customers under the trade name, Conectiv Power Delivery. DPL also supplies and delivers natural gas to approximately 115,400 customers in a 275 square mile area in northern Delaware. ACE's regulated service area is located in the southern one-third of New Jersey, and DPL's regulated electric service area is located on the Delmarva Peninsula (Delaware and portions of Maryland and Virginia). On a combined basis, ACE's and DPL's regulated electric service areas encompass about 8,700 square miles and have a population of approximately 2.2 million. CEH and its subsidiaries are engaged in non-regulated electricity production and sales, energy trading, and marketing. Other services include certain non-regulated services provided by DPL to its customers, and rental income for administrative facilities owned by DPL, which are used by an affiliated company. Conectiv Energy supplies power to DPL, under a power sales contract, and provides wholesale power and ancillary services to the Pennsylvania/New Jersey/Maryland power pool. As of December 31, 2002, Conectiv Energy owned and operated electric generating plants with 2,600 MW of capacity.