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OPC Releases Reports on Increases on Commodity and Distribution Portions of Customer Bills 

Maryland electric customers are facing rate increases in both the commodity and distribution portions of their bills. OPC has released two reports explaining these bill increases. One report (released in June), using a variety of figures and tables, reveals that most Maryland utility customers have seen their gas and electricity distribution rates increase substantially over the last 10-15 years, with some rates increasing by multiples of two or three. This report focuses on the amounts that utilities charge their customers for delivering electricity and gas to customers’ homes and businesses, as distinct from the supply (or commodity) charges. The other report (released in August) delves into how the supply (or commodity) charges will be rising starting June 1, 2025, because of the results of a recent auction held by PJM Interconnection, LLC, the entity that administers the wholesale power market and is responsible for transmission planning in our region, which saw prices beginning next June for electric generation capacity spike by more than 800 percent, and also because of how PJM has constructed its market in ways that leave customers highly vulnerable to price swings and the decisions of generation companies.      

Read the June report about rising distribution charges  

Read the August report about rising supply charges  

Pepco's proposed rate increase

Pepco is asking state regulators for a distribution rate increase. Pepco’s proposed increase would grow its existing rates by 23 percent. 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 novel request and apply standard ratemaking policies to evaluate Pepco’s proposal. OPC prepared “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 OPC’s press release “Pepco proposes distribution rate hike of 23 percent--on top of massive rate increases over last decade, OPC Consumer Guide shows.”

Projected gas bill increases -- Gas Utility Spending Report 

OPC’s 2025 report, prepared by the consulting firm DHInfrastructure, provides critical information on current and future spending to maintain and expand the gas delivery system—the pipes, concrete, computers, and other infrastructure that make up the local distribution system. It also provides important information about future gas bills in the absence of reversals in current practices, in particular the Strategic Infrastructure Development and Enhancement Plan that promotes gas infrastructure replacements and accelerates utility cost recovery.

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Learn what STRIDE, the program driving up everyone’s energy bill is all about. Listen as People's Counsel David Lapp discusses STRIDEl on the Maryland Energy Talk podcast.

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