Pepco customers in DC, Maryland to see 5% bill increase starting in January

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What we know

Some Pepco customers may experience a 5% increase to their electricity bill throughout the next year. 

The utility company, which provides power to D.C. and some Maryland communities, recently sent out a notice of the upcoming changes. 

How much is Pepco increasing electric bills in DC and Maryland?

"Supply rates will increase by 1% in Maryland, adding approximately $1.18 and 6% in D.C. (around $6.46) to the average monthly bill. This cost reflects energy purchases from generators, determined by an annual auction based on market supply and demand." While this is accurately stated for Maryland, the 6% change for District customers noted reflects change to distribution charges, not supply. The distribution rates reflect the necessary investments we make to help ensure reliable energy service. The primary bill impacts District customers will see in January are associated with our "Climate Ready Pathway DC" Multi-Year Plan, which was approved as modified by the Public Service Commission of the District of Columbia in November. An important note is that this increase will not impact customers enrolled in the Residential Aid Discount Program, which helps support affordability for low-income customers. Customers can learn more about our multi-year plan at pepco.com/MYP.

Some Pepco customers may experience a 5% increase to their electricity bill throughout the next year. 

The utility company, which provides power to D.C. and some Maryland communities, recently sent out a notice of the upcoming changes. 

How much is Pepco increasing electric bills in DC and Maryland? 

The average D.C. residential customer’s bill is projected to increase from $108 per month to $114 per month, while in Maryland it's expected to jump from $166 per month to $173 per month on average.

"There are points during the year when your bill can go up or down based on several factors relating to weather, the cost of electricity and changing rates," the message reads. 

Supply rates will increase by 1% in Maryland, adding approximately $1.18. This cost reflects energy purchases from generators, determined by an annual auction based on market supply and demand. The increase is 6% in D.C. (around $6.46) to an average monthly bill. 

Graphic via Pepco.com

Additionally, surcharges, which include fees from regulatory agencies and compliance with energy efficiency programs, will increase by 4% in Maryland, contributing an extra $6.34 on average to monthly bills. This change is largely driven by updates to the EmPOWER Maryland surcharge, supporting initiatives that help customers save energy and money

District customers will see a 1% surcharge decrease, which should cut some costs to around .72 on average. The primary impacts District customers will see on their bill are associated with Pepco's "Climate Ready Pathway DC" Multi-Year Plan, which was approved as modified by the Public Service Commission of the District of Columbia in November. An important note is that this increase will not impact customers enrolled in the Residential Aid Discount Program, which helps support affordability for low-income customers. Customers can learn more about the multi-year plan at pepco.com/MYP.

Pepco emphasized that distribution and transmission rates will remain unchanged. These rates fund infrastructure investments to maintain reliable energy service and enhance the transmission network in the region. The utility company states that distribution rates reflect the necessary investments they make to help ensure reliable energy service. 

Why is Pepco increasing electric bills? 

The adjustments reflects changes in supply costs, weather and surcharges. 

Customers seeking to manage energy costs are encouraged to visit pepco.com/BillSupport or contact Pepco Customer Care at 202-833-7500 for assistance.