Potomac Electric Power Company (Pepco)

Potomac Electric Power Company (Pepco) is a subsidiary of Illinois-based Exelon Corporation. Pepco provides service in most of Montgomery County and Prince George’s County as well as in the District of Columbia. Pepco serves 582,000 Maryland customers.

In November 2025, Pepco filed its latest rate case, proposing an overall increase of 23 to its steadily rising distribution rates—an increase of 15 percent to summer rates and 33 percent to winter rates. 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 increase—if approved by the Public Service Commission—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 will increase under the proposal and how Pepco’s rates have increased in recent years, the novel type of rate proceeding Pepco is seeking, along with its implications, and how you can get involved. To read our Consumer Guide, click here. 

Previously, Pepco filed a rate case in 2023 as a multi-year plan for rates extending into 2027. In a June 2024 decision, the Commission granted Pepco a single rate increase of $44.6 million, denying Pepco’s request for a multi-year rate plan and stating its intent to evaluate how customers are faring under multi-year plans in a general “lessons learned” proceeding.

Why Pepco bill so high?

If you’ve had sticker shock from your recent Pepco bill, you’re not alone. Most Pepco customers are seeing substantial increases in their monthly bills. Click here to read an explainer on why bills are going up.

Current rates

Electric bills include two primary categories of charges: distribution charges and supply charges. These categories of charges and additional charges are explained here. The distribution rate covers most of the average customer's distribution costs. For the average Pepco customer in 2024, the volumetric rate makes up 86 percent of distribution costs.

Note: The distribution rates referenced below are base rates which may vary from what you see on your bill because of additional adjustments, such as adjustments made for weather and changes in usage.

(The above graph is as of October 2024.)

Watch a previously recorded webinar on how to read your Pepco bill.