We discuss in detail potential NRQED (pNRQED), a previously proposed effect
ive field theory for ultrasoft photons. The pNRQED Lagrangian for the equal
mass case is presented, and it is shown that it correctly reproduces the p
ositronium spectrum at order m alpha(5). The pNRQED Lagrangian for the uneq
ual mass case is also presented at the same order. Dimensional regularizati
on is used throughout. [S0556-2821(98)06423-6].