As shown on your bills, electric rates are divided into distribution, generation, and transmission services. Distribution services cover Pepco's costs to deliver electricity within the District to homes and businesses. Generation services cover the costs of producing electricity. Transmission services cover the costs of transporting electricity across regions from the plants where it is produced to the District.
Since January 2001, all residential and commercial electricity customers can choose their supplier of generation and transmission (G&T) services, while Pepco is the sole provider of distribution services. Non-space heating residential customers receive service under Schedule R, while space heating residential customers receive service under Schedule AE. Moreover, Pepco provides G&T services to customers, who do not choose a competitive supplier, under its Standard Offer Service (SOS).