FORM 5
      Check this box if no longer
       subject to Section 16. Form 4 or
       Form 5 obligations may continue.
       See Instruction 1(b).

      Form 3 Holdings Reported
      Form 4 Transactions Reported

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

ANNUAL STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934, Section 17(a) of the Public
Utility Holding Company Act of 1935 or Section 30(h) of the Investment Company Act of 1940


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1.   Name and Address of Reporting Person*

Lavin, James P.

2.     Issuer Name and Ticker or Trading Symbol

Pepco Holdings, Inc. (POM)

6.     Relationship of Reporting Person(s) to Issuer
                                     (Check all applicable)

               Director                                                         10% Owner
       X       Officer (give title below)                                Other (specify below)

    (Last)                               (First)                               (Middle)

3.   IRS Identification
      Number of Reporting
      Person, if an entity
      (voluntary)

4.    Statement for
       Month/Year

Year Ended 12/31/02


Pepco Holdings, Inc.
701 Ninth Street, NW


      Vice President and Controller                                        

5.     If Amendment,
       Date of Original
       (Month/Day/Year)
                      02/14/03

                                   (Street)

7. Individual or Joint/Group Filing (Check Applicable Line)
         X      Form filed by One Reporting Person
                   Form filed by More than One Reporting Person


Washington, DC 20068

     (City)                                (State)                                      (Zip)

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned

1.   Title of Security
       (Instr. 3)

2.  Transaction Date

      (Month/Day/Year)

2A.   Deemed Execution
         Date, if any
        (Month/Day/Year)

3.  Transaction
      Code
      (Instr. 8)

4.  Securities Acquired (A)
     or Disposed of (D)
     (Instr. 3, 4 and 5)


______________________________
    Amount        (A) or (D)        Price

5.  Amount of
    Securities Beneficially
    Owned Following
    Reported Transaction(s)
    (Instr. 3 and 4)

6.  Ownership
     Form: Direct
    (D) or Indirect
    (I)
     (Instr. 4)

7.  Nature of
     Indirect Beneficial
     Ownership
     (Instr. 4)

Common Stock

8/1/02

              

A

961

A

(1)

    

    

              

                                               

8/2/02

              

A

1,353

A

$19.735

2,314

D

    

              

        

              

       

              

              

              

3,263.6

I

DRP

              

              

              

              

              

              

              

111.9

O

401-k Plan

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

              

 

Reminder:  Report on a separate line for each class of securities beneficially owned directly or indirectly.
*  If the form is filed by more than one reporting person, see Instruction 4(b)(v).

FORM 5(continued)                                                                         Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned
                                                                                                                         (e.g., puts, calls, warrants, options, convertible securities)

1.  Title of
     Derivative
      Security
      (Instr. 3)

2.  Conversion or
      Exercise Price
      of Derivative
      Security

3. Transaction Date

     (Month/Day/Year)

3A.  Deemed
         Execution Date,
         If Any

        (Month/Day/Year)

4.   Transaction
        Code
        (Instr. 8)

5.  Number of
     Derivative
     Securities
     Acquired (A) or
    Disposed of (D)
    (Instr. 3, 4, and 5)

_________________
   

  (A)                      (D)

6.  Date Exercisable and
    Expiration Date
    (Month/Day/Year)




_____________________

       Date              Expiration
  Exercisable            Date

7.  Title and Amount of
     Underlying Securities
     (Instr. 3 and 4)




________________________
                                Amount or
                                Number of
       Title                      Shares

8. Price of
    Derivative
    Security
    (Instr. 5)

9.  Number of
    Derivative
    Securities
    Beneficially
    Owned
    Following
    Reported
    Transaction(s)
    (Instr. 4)

10. Ownership
       Form of
       Derivative
       Security:
       Direct (D) or
        Indiirect (I)
       (Instr. 4)

11.   Nature of
         Indirect
         Beneficial
         Ownership
         (Instr. 4)

Stock Options
(right to buy)

$24.40

8/1/02

A

12,179

  

1/2/04-50%
1/2/05-50%

1/2/12

Common Stock

12,179

(2)

12,179

D

   

         

    

     

   

    

      

   

    

   

    

      

      

     

     

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

  

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

    

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

   

Explanation of Responses:
      (1)   Acquired pursuant to the Agreement and Plan of Merger, dated February 9, 2001, among Pepco Holdings, Inc. ("PHI"), Potomac Electric Power Company ("Pepco") and Conectiv (the "Merger") in which 600 shares of Performance Accelerated Restricted Stock (PARS) were exchanged for 769 PARS and 150 record held shares were exchanged for 192 shares, having an aggregate market value of $19,316.10 at the time of the Merger.
      (2)   Acquired pursuant to the Merger, in which 9,500 options granted under the Conectiv Incentive Compensation Plan, in accordance with the terms of the options, were exchanged on a one for 1.28205 basis for options to purchase shares of PHI common stock at the same exercise price per share.

**  Intentional misstatements or omissions of facts constitute Federal Crime Violations.
    See 18 U.S.C. 1001 and 15 U.S.C. 78ff(a).

 James P. Lavin by Ellen Sheriff Rogers, Attorney-in-Fact 
**Signature of Reporting Person

      2/21/03       
Date

Note:    File three copies of this Form, one of which must be manually signed. If space is insufficient,
                      see Instruction 6 for procedure.

Potential persons who are to respond to the collection of information contained in this form are not
required to respond unless the form displays a currently valid OMB Number.

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