Pepco's proposed rate increase
Update: Following the passage of Utility RELIEF Act, Pepco withdraws pending forecasted test year proposal. Click this link to learn more.
Pepco is asking state regulators for a distribution rate increase. Pepco’s proposed increase would grow its existing summer rates by 15 percent and winter rates by 33 percent, for an overall increase of 23 percent. Because Pepco’s summer rates apply for 5 months of the year and its winter rates apply for 7 months, the overall increase reflects a weighted average of those two seasonal rates. The proposed increase would follow a decade of steadily rising distribution rates. If approved by the Public Service Commission, it would mean distribution rates will have increased about 63 percent since 2020 and 132 percent since 2016.
To better explain Pepco’s recent rate proposal, OPC prepared A Consumer’s Guide To Pepco’s Proposed Rate Increase.” The Consumer Guide identifies how much rates would increase under Pepco’s proposal and how they have grown in recent years, the novel type of rate proceeding Pepco is seeking along with its implications, and how you can get involved.
Pepco is proposing a new method for setting its rates based on forecasted costs. OPC is asking the Public Service Commission to reject Pepco’s request and apply standard ratemaking policies to evaluate Pepco’s proposal. Click here for more information about the concerns and risks about the new method.
OPC is evaluating Pepco’s proposal and will advocate in the rate proceeding to keep residential rates as low as possible while maintaining safe and reliable service.
A Consumer’s Guide To: Pepco’s Proposed Rate Increase
Read OPCs press release “Pepco proposes 23 percent distribution rate hike—on top of massive rate increases over last decade, OPC Consumer Guide shows.