Electricity Standard Offer Service (SOS) Rates

Electricity Standard Offer Service (SOS) Rates
Electricity rate in D.C. to rise for most starting summer 2024
Pepco's Standard Offer Service (SOS) rate for electricity generation in the District of Columbia will increase starting June 1, 2024. Consumers will likely see a significant increase on their monthly bill after this date. An average residential customer’s bill is projected to increase by 8%, or $8.12 per month.

Eligible District residents can apply to several assistance or discount programs to help lower their utility costs and get tips for preparing their homes for high temperatures and summer storms.
Please contact the DCPSC if you have any questions or need additional assistance.

What is a Standard Offer Service (SOS) electricity rate?
Standard Offer Service, commonly referred to as SOS, is the “default” electricity supply service sold by electric utility companies to a utility customer who does not choose an alternative electricity supplier. In the District, Pepco is the SOS administrator and purchases electricity and sells it to consumers at an approved rate. The SOS program is administered under rules established by the Commission.

Pepco and other SOS administrators purchase electricity during annual wholesale auctions. Several wholesale electricity suppliers place competitive bids to try to win contracts to supply electricity to an electric utility. The electric utility awards the contract to the wholesale supplier who made the lowest bid. Pepco states that these annual competitive auctions “provide customers with generation rates that are reflective of market conditions while at the same time providing protection against extreme conditions.”

In the District, SOS rates have decreased from the previous year 50% of the time since 2006.

Understand your electricity bill
Most energy customers only look at their energy bill to find out what they need to pay each month. However, a utility bill is broken down into several different sections, each of which provides important information.
Stay informed
Residents can become more familiar with their energy options by gaining a deeper understanding of the many ways to conserve and/or reduce your energy use. There are also several programs, initiatives, and resources available to consumers that can also help save money.