Last month the DC Public Service Commission approved Pepco’s 2nd Multiyear Rate Plan (MRP), giving the utility a green light to increase its distribution rates by a total of $123.4 million over the next two years. For residential customers this means average monthly bills will rise by $7.54 in 2025 and $3.80 in 2026, with $1.00 monthly increases in customer charges.
This news comes on the heels of two prior rate increases - 8% in June 2024 and 12% in June 2023. Over the course of 2023 to 2026, the average DC customer will see a $31.46 increase in their monthly utility bill.
Pepco first petitioned for a $190.7 million increase, but ultimately DC PSC only approved a $123.4 million rate increase. This was 35% less than Pepco’s original request.
In addition to approving the rate increase, DC PSC also introduced several consumer protections and accountability measures. One stipulation states that Pepco must submit detailed reports on its earnings and expenditures to an independent auditor. The Commission is also enforcing a $15.3 million penalty to correct Pepco’s previous billing errors.
Another bit of good news is that low-income households enrolled in the Residential Aid Discount (RAD) program will not see any increased pricing. In fact, the Commission recommended expanding the eligibility for the RAD program in order to help more District residents qualify for assistance.