Overview
The DCPSC has approved Pepco's modified 2nd Multiyear Rate Plan (MRP) on an extended pilot basis. The decision reduces Pepco's initial $190.7 million request by about 35%, allowing a $123.4 million increase over two years (2025–2026).
Key measures include:
- Consumer Protection: Low-income customers in the Residential Aid Discount (RAD) program remain exempt from rate increases, continuing to receive free electric distribution services.
- Enhanced Oversight: Quarterly and annual reporting requirements, independent audits, and automatic credit adjustments to address overearning.
- Accountability: A $15.3 million penalty on Pepco for prior billing errors and reductions in recoverable capital expenditures by 19% in 2025 and 40% in 2026.
For residential customers, average monthly bills will rise by $7.54 in 2025 and $3.80 in 2026, with $1.00 monthly increases in customer charges. Approximately 41% of the approved revenue increase will be allocated to residential customers. The Commission has also convened a working group to explore expanding the RAD program, which currently benefits 20,000 households.
Background
Pepco filed an application on April 13, 2023, for approval to increase rates through the implementation of a new Multiyear Rate Plan (MRP), also referred to as the “Climate Ready Pathway,” for its electric distribution service in the District of Columbia for the years 2024 through 2026. The Commission published a Public Notice of the Pepco application in the D.C. Register on May 5, 2023.
Community Hearings
The DCPSC held three community hearings across the District (in Wards
8,
5, and
2) in March/April 2024 to gather input from residents and other stakeholders in this pending rate case.
Watch a full recording of the April 3, 2024, hearing held in the DCPSC Hearing Room:
Legislative-style Hearing
On July 30, 2024, he DCPSC convened a legislative-style hearing for Pepco to present oral arguments on FC1176 rate case issues fundamental to the Commission’s decisions. Key topics included Pepco’s investment strategies, alignment with the District’s climate goals, communication with the District, and the merits of traditional versus multi-year rate cases.