DC Councilmember Charles Allen announces a public hearing to examine legislation around Pepco’s use of multi-year rate plans and to hold a broader discussion of legislative solutions to lower utility costs.

FOR IMMEDIATE RELEASE
June 1, 2026
Contact: Erik Salmi
202-445-0834

DC Councilmember Charles Allen, Chair of the Council’s Committee on Transportation and the Environment, is announcing a June 29 public hearing to examine legislation around Pepco’s use of multi-year rate plans and to hold a broader discussion of legislative solutions to lower utility costs as an expected $9-per-month increase hits DC residents’ Pepco bill today. Compared to five years ago, the average household is now paying almost $200 per year more for electricity, or $17 more per month. 

Councilmember Allen and the Committee recently gained oversight of the Public Service Commission (PSC) , the District agency that regulates utilities.  

The hearing will examine Councilmember Robert White’s “Utility Rates and Ratemaking Amendment Act of 2026” to limit the PSC’s ability to approve costly multi-year rate plans only with additional guardrails in place. The PSC — almost without exception — approves Pepco’s requested rate increases after annual electricity auctions. These rates have skyrocketed for a few reasons, including projected increases in energy demand from data centers, the failure of our regional grid to transition to cleaner, cheaper energy sources, and DC’s failure to reduce energy demand and lock in long-term purchases of cheap, renewable power quickly enough. As a reminder, this is in addition to Pepco’s request for yet another increase for the cost of grid maintenance and upgrades deemed legally insufficient earlier this spring, leaving $123 million in ratepayer money in limbo.   

While the PSC may only directly regulate 32% of residents’ bills, the Council has instructed the PSC in past legislation to work toward lowering energy demand and costs to ratepayers through its oversight and regulation . DC has few tools available to control price spikes caused by demand driven by data centers in other states, but there are plenty of methods to increase the supply of homegrown electricity in DC and allow the District to lower its energy demand. The hearing will examine policies to reduce utility costs, such as removing barriers to clean energy projects and improved grid management, right-sizing utility returns and PSC oversight of utility spending, and strengthening District-based solutions such as distributed energy to lower peak energy demand and protect vulnerable households. 

“Starting today, everyone’s Pepco bill is going up — again. People are hurting, and they’re falling behind as DC residents are enduring some of the highest bills in the country. Tellingly, the District’s LIHEAP Fund will exhaust its funds this Wednesday, as more households need help with ever-growing bills,” Councilmember Allen said. “DC needs to be doing more to get people the help they need. A fully funded, $100 million Sustainable Energy Trust Fund — the Department of Energy and Environment’s fund used to support many of the District’s climate and utility affordability programs - could help residents and businesses lower their usage and their bills — but we’ve seen it raided by the Mayor over the past two years to the tune of $150.1 million. This money has been diverted to pay for the District government’s own energy bills.  

“We need a Public Service Commission holding Pepco’s feet to the fire to limit spending and rate increases. Leading with innovation and urgency to make DC’s energy generation and grid more resilient and efficient lays the groundwork to lower costs long-term. Many other states are taking action, and for too long, DC hasn’t seen the type of oversight needed to put the interests of our residents over the profits of utility companies. Pepco’s cost recovery from residents is out of line with the law, as laid out in the recent DC Court of Appeals decision. The Committee’s hearing on June 29 will be an urgent and focused discussion on top priorities for new legislation to lower costs, and to ensure that in two or three years, we won’t be in the same place as today. District families and businesses deserve better.”