[Washington, DC], May 20, 2026 (GLOBE NEWSWIRE) -- District customers on Pepco’s Standard Offer Service (SOS), the utility’s default electric supply, will see an increase in electricity generation rates effective June 1, 2026. Each year, Pepco purchases electricity for its SOS customers through competitive auctions with wholesale suppliers. The new SOS rates reflect the results of this year’s auction, approved by the Public Service Commission of the District of Columbia (DCPSC) on May 20, 2026, in Formal Case No. 1017, Order No. 22869.https://edocket.dcpsc.org/public/search/casenumber/fc1017 Residential customers using 614 kWh a month will see an average monthly bill increase of approximately $8.79, or 6.2%, in their total monthly bill.
“Rising electricity supply costs are being driven by broader market conditions that are impacting customers across the region and the nation. While the Commission does not control prices set through competitive electricity markets, we remain committed to transparency, consumer education, and ensuring rates are reviewed for accuracy, and competitive outcomes,” emphasized Commission Chairman Emile Thompson.
Pepco purchases electric supply for SOS customers through power supply contracts in an annual SOS auction. Following the auction, Pepco must submit the retail SOS rates filing based on the winning wholesale bids seeking Commission’s approval. The Commission reviewed Pepco’s updated electricity supply rates in coordination with the independent Market Monitor and confirmed their accuracy. Generation rates set through this competitive bidding process are influenced by broader changes in the electricity market, including higher demand from new energy-intensive data centers in the region, generation retirements across the region, and overall supply conditions. These market factors, along with the District’s Renewable Energy Portfolio Standard mandates, contribute to the SOS prices. In July 2025, PJM Interconnection LLC held its capacity auction for the 2026–2027 delivery year, resulting in record-high capacity prices for the second consecutive year. While the Commission reviews rates for accuracy and transparency, it does not regulate the competitive electricity market or control prices set through these auctions.
The additional new electricity supply rates also impact the following types of customers purchasing electricity supply through SOS:
- Master Metered customers will have an average monthly electric bill increase of $6.32, or 7.0% in the total monthly bill.
- Small commercial customers will experience an average monthly electric bill increase of 4.8%.
- Large commercial customers will experience an average monthly electric bill increase of 5.4%.
For customers who purchase their electric energy supply through third-party suppliers, the cost of electricity is also likely to increase, but the increase will vary and depend on the specific third-party supplier contract terms.
To address the rising energy costs and connect the public with resources, the Commission will host a two-day, District of Columbia Energy Action Summit on May 27 and May 29, featuring panel discussions and community outreach. The summit will also kick off the Commission’s annual Summer Ready DC outreach campaign. Energy efficiency items will be available to attendees while supplies last. These tools may help reduce electricity bills this summer. Throughout the spring and summer, District residents can pick up energy-efficiency items at various locations across the city. Register for this free event at dcpsc.org/eas.
Also, the Commission will hold a legislative-style hearing on June 3, 2026, at 11:00 a.m. to examine the key drivers behind rising supply costs in the “generation” portion of the residential electric bills and explore possible solutions to address energy affordability concerns for District residents. The annual monthly average generation portion of a residential bill increased from about $35 in 2020 to approximately $80 as of January 2026, making it the fastest-growing part of the bill.
Visit the Commission’s SOS Rates webpage for more information or contact the Commission’s Office of Consumer Services at (202) 626-5120 for consumer assistance programs.
The Public Service Commission of the District of Columbia is an independent agency established by Congress in 1913 to regulate electric, natural gas, and telecommunications companies in the District of Columbia.
Kellie Didigu Public Service Commission of the District of Columbia 202-626-5124 OSC@psc.dc.gov
