Pepco customers in DC, Maryland to see 5% bill increase starting in January

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What we know

Some Pepco customers may experience a 5% increase to their electricity bill throughout the next year.

The utility company, which provides power to D.C. and some Maryland communities, recently sent out a notice of the upcoming changes.

How much is Pepco increasing electric bills in DC and Maryland?

The average D.C. residential customer’s bill is projected to increase from $108 per month to $114 per month, while in Maryland it's expected to jump from $166 per month to $173 per month on average.

"There are points during the year when your bill can go up or down based on several factors relating to weather, the cost of electricity and changing rates," the message reads.

Supply rates will increase by 1% in Maryland, adding approximately $1.18 and 6% in D.C. (around $6.46) to the average monthly bill. This cost reflects energy purchases from generators, determined by an annual auction based on market supply and demand.

Graphic via Pepco.com

Additionally, surcharges, which include fees from regulatory agencies and compliance with energy efficiency programs, will increase by 4% in Maryland, contributing an extra $6.34 on average to monthly bills. This change is largely driven by updates to the EmPOWER Maryland surcharge, supporting initiatives that help customers save energy and money

District customers will see a 1% surcharge decrease, which should cut some costs to around .72 on average.

Pepco emphasized that distribution and transmission rates will remain unchanged. These rates fund infrastructure investments to maintain reliable energy service and enhance the transmission network in the region.