May 30, 2019

OPC Stunned by Pepco’s Request to Increase Rates by $162 Million over Three Years – OPC Will Thoroughly Vet Application to Ensure DC Consumers Are Protected

Washington, DC –Today, Pepco filed an application with the DC Public Service Commission (DCPSC) requesting to increase rates by $162 million over the next three years. As part of the request, Pepco seeks to change its ratemaking design from asking the DCPSC each time it wants to increase its rates, to a multi-year rate plan in which rates would increase automatically each year over the three-year plan. If approved, Pepco estimates average monthly residential customer rates would increase by $8.57 after May 2020, an additional $3.69 in 2021, and $3.19 by 2022. With the multi-year rate plan, Pepco is also asking the Commission to approve several incentive mechanisms that would allow the Company to earn more money if it hits certain annual performance metrics which could raise rates even further in 2021 and 2022 than what is estimated. In case the Commission does not approve the multi-year rate plan, Pepco asks in the alternative to increase its rates by $88.6 million which would increase the average monthly bill by $9.55.

“OPC is shocked and dismayed by the size of Pepco’s rate increase,” said People’s Counsel Sandra Mattavous-Frye. “Pepco is proposing a fundamental change in how rates are calculated in the District. OPC will continue its unwavering commitment to be a strong and thorough advocate for ratepayers and will advocate vigorously to ensure that Pepco’s rates are reasonable, and that Pepco is only authorized to collect from its customers those costs that are necessary for the delivery of safe, reliable, resilient, affordable, and environmentally sustainable service. OPC will thoroughly analyze Pepco’s application. My goal is to ensure that any rate plan authorized by the DCPSC both generates real, tangible benefits for District consumers and supports the District’s environmental goals and modernization policies,” People’s Counsel Mattavous-Frye further stated.

Since merging with Exelon in March 2016, Pepco has filed two separate requests for rate increases, both were reduced substantially by the DCPSC as a result of OPC’s zealous advocacy.

“OPC is particularly concerned with the timing of Pepco’s proposed rate increases. They may be implemented in the same time-frame as several new energy-related initiatives go into effect and prior to the implementation of the DCPSC’s MEDSIS grid modernization plan, which all have potential customer bill impacts. In reviewing Pepco’s application, OPC is committed to minimizing any rate shock that customers may experience.”

OPC will continue to keep consumers up-to-date throughout these proceedings and invites any consumers that have concerns with today’s proposal to share their concerns with the Office at (202) 727-3071 or This email address is being protected from spambots. You need JavaScript enabled to view it. .