Utilities, bills and interconnection

Why is my Pepco bill so high?

Written by the Soleil Energy Corp Team Last updated Editorial guidelines

Heat-pump outdoor unit beside a brick wall on a frosty winter morning.

Why is my Pepco bill so high? Usually one of three things moved: how much electricity you used, what supply costs, or what Pepco charges to deliver it. In Maryland the default supply price rose October 1, and delivery charges changed on several dates this year. In DC, supply rose July 1. Check service dates and kilowatt-hours (kWh) first.123

Maryland and the District of Columbia have different regulators, different rate cases and different tariffs. Use the section that matches your service address.

How do I check my Pepco bill before blaming a rate increase?

Before you blame a rate increase, check that you’re comparing the same thing. A longer billing period means more days of usage, and a cold month costs more than a mild one. Start with the service dates and total kWh, because rates only matter once those match. Compare kWh and billing days, then dollars.14

Pepco’s 2026 Maryland bill explainer splits the first page into supply, delivery, and taxes and surcharges, and it keeps the previous balance and payments apart from the new charges.1 Use those fields in this order.

Check What to look for If it looks wrong
Service dates and billing days Same length as the earlier bill? Compare kWh per day, not the total
Total kWh Up or down against the same month last year? The bill’s usage chart shows 13 months
Supply Pepco default supply or a third-party supplier? A third-party contract has its own price
Delivery Customer charge plus a per-kWh charge See the delivery table below
Taxes and surcharges Any line that is new or larger, such as the EmPOWER Maryland charge See the EmPOWER note below, or ask Pepco what the line is for
Amount due New charges only, or an unpaid balance too? Read the summary box on page one

Don’t read the amount due as this month’s cost. It can include last month’s unpaid balance, and a late payment charge can sit on top.1 If the usage and dates both look right and the total still doesn’t make sense, ask Pepco to explain the meter reading or adjustment. Keep the bill handy when you call.

What did Maryland’s August rate decision do to my bill?

The Maryland Public Service Commission (PSC) approved less than half of what Pepco asked for. On August 28, 2026, in Case No. 9820, it authorized a $50,946,000 annual distribution revenue increase against a $119,876,000 request.56 The PSC says the new rates took effect that day.6

The order directs compliance tariffs “subject to acceptance by the Commission.”5 The delivery table below shows what Pepco’s posted tariff lists.

Pepco’s request PSC authorized
Annual revenue increase $119,876,0006 $50,946,0005
Average residential bill, per month $10.246 $3.946
Montgomery County, percent 5.856 2.256
Prince George’s County, percent 5.796 2.236
Return on equity 10.5 percent6 9.40 percent6

The PSC reported these as estimates for average residential users, not as a prediction for your home.6

Two details from the PSC’s release matter for your bill. It disallowed costs for the White Flint infrastructure projects, which it put at about $164.9 million in capital costs.6 And it opened a second phase (Phase II) to consider removing certain costs from rates under the Utility RELIEF (Reducing Energy Load Inflation for Everyday Families) Act, HB 1532.56 The order says the Act’s effect on Pepco’s revenue requirement has not yet been determined, “if any.”5

As a Pepco customer in Prince George’s or Montgomery County, you are served by an electric company the Maryland PSC regulates, the agency that oversees electric, gas and other utilities in the state.7

Why did my Maryland supply price change October 1?

Supply is a separate line from delivery, and it reset on October 1. Pepco’s tariff lists the Schedule R (residential) Standard Offer Service (SOS) generation charge, the default supply price, in three date ranges. The latest runs from October 1, 2026 through May 31, 2027, at a higher charge than summer.2

Service dates SOS generation charge, per kWh
February 1 to May 31, 2026 $0.111202
June 1 to September 30, 2026 $0.111682
October 1, 2026 to May 31, 2027 $0.126812

Each figure includes a small administrative charge: 0.5 cent, 0.404 cent and 0.415 cent per kWh in the three columns.2

The October price is above the summer price, so the same use costs more on the generation line alone. Transmission is a separate line, listed at $0.02007 per kWh for both seasons, and a Procurement Cost Adjustment is added on top.2

If you buy from a third-party supplier, none of this applies to your supply line. Your contract price does. Read your contract for the current price and the renewal terms.

Which delivery charge applies to my service dates?

Delivery is the part the August decision touched, and the tariff handles it in dated columns. The usage-based delivery charge also differs by season: June through October billing months are summer, November through May are winter, so you need both your service dates and the season to find your rate.8

Usage dates Customer charge Summer, per kWh Winter, per kWh
April 1, 2024 to August 10, 2026 $8.448 $0.087608 $0.043288
August 11 to August 27, 2026 $8.678 $0.097138 $0.054698
August 28 to October 31, 2026 $8.448 $0.087608 $0.043288
Pepco’s proposed sheets, filed September 21, 2026 (not approved; not in the posted tariff) $8.679 $0.089319 $0.046679

The first three rows are from Pepco’s Maryland tariff, Schedule R, which lists the third column through October 31, 2026. The PSC’s release says new rates took effect August 28, yet that tariff shows the same delivery charges for August 28 to October 31 as before the case, so the tariff on file is the document to trust for exact figures.68 The last row is different in kind. It comes from proposed distribution tariff sheets Pepco filed in Case No. 9820 on September 21, 2026, for usage on and after November 1, 2026. They are proposals, not approved rates.9 If your delivery line looks different from the table, ask Pepco which column it applied to your service dates.

The columns don’t rise in a straight line, so find the one that covers your service dates.

Two more lines belong in this conversation. OPC’s own answer to “why is my Pepco bill so high” puts delivery first: it says Pepco’s delivery charges have risen 33 percent since 2020, from 4.6 to 6.2 cents per kWh.4 And the EmPOWER Maryland charge, which funds efficiency programs and pays down an old unpaid balance, rose in January 2025 from $0.011056 to $0.013790 per kWh by OPC’s account, the same rate Pepco’s 2026 sample bill lists.41 Check your own bill for the current rate.

Why is my Pepco bill higher in winter?

Weather is the first suspect. Maryland’s Office of People’s Counsel (OPC) says very cold or hot temperatures push usage up, because you run more heating or cooling, and the bill follows.4 If your home heats with electricity, a cold month shows up in kWh before it shows up in any rate.

Per-kWh delivery is lower in winter than in summer, as the table above shows. The October supply price applies through May.28 So a winter bill can be higher because you used more energy, not because the winter rate is higher. Compare the same month a year earlier, using the 13-month chart on the bill.1

Why did my DC Pepco bill rise on July 1?

For DC accounts, a different regulator and a different change apply. The Public Service Commission of the District of Columbia (DCPSC) says Pepco’s default supply rate in the District increased starting July 1, 2026, one month later than first planned.3

DCPSC gave an example: an average residential customer using 614 kWh a month would see the total monthly bill rise 7.0 percent, or $9.56.3 That’s the regulator’s example for a default-supply customer. It’s not a forecast for your household, and it doesn’t apply if you buy from a third-party supplier.

Did a court throw out Pepco’s DC rates?

No. On March 5, 2026, the D.C. Court of Appeals vacated the Commission’s earlier orders on Pepco’s multiyear rate plan and sent the case back for an evidentiary hearing. The Commission’s March 27 order says the court “did not find the rates authorized under Order No. 22328 unjust, unreasonable, or otherwise unlawful.”1011 The Commission reauthorized the current rates to stay in effect while the case is reheard, and it has set an evidentiary hearing for December 7 and 8, 2026. If the final decision finds different rates appropriate, DCPSC says it will make prospective adjustments, reconciliations or refunds then.10

Where do capacity costs show up on my bill?

Capacity is the price of keeping enough power plants available for the hottest and coldest days. DCPSC explains that grid operators must have enough power for extreme conditions, and that buying that “resource adequacy” costs money reflected in wholesale prices.12 You won’t find a capacity line on a residential bill. It arrives inside the supply price.

Maryland’s OPC said in an August 2024 report that capacity market results would raise the average Pepco customer’s bill by about $14 a month starting in June 2025.4 That was a 2024 forecast, not a figure for this fall’s bill. The capacity market is run by the regional grid operator, PJM Interconnection, and our guide on PJM capacity prices and your electric bill explains the mechanics. Capacity helps explain regional price pressure, but it doesn’t explain every household’s bill.

What can I do about a high Pepco bill?

Match the fix to the cause. If the dates and kWh look normal and the total is still a surprise, the table sorts the usual findings into next steps, from checking usage to asking about a payment arrangement or a utility check-up.

If you find… Try this
kWh up, dates normal Look at heating, cooling and water heating; ask Pepco about a Quick Home Energy Check-up
Dates longer than last time Compare kWh per day, not the total
Unpaid balance in the total Ask Pepco about a payment arrangement before the next bill
Supply price high on a third-party contract Compare the contract price with Pepco’s default supply price in the table above
Bills swing between seasons Ask Pepco whether an even monthly payment plan fits your account

Pepco’s Quick Home Energy Check-up is a visual inspection of insulation, heating and cooling, windows, doors, lighting and appliances. Pepco’s FAQ describes it as available at no additional cost to existing Pepco service. The FAQ says the last day to request a 2026 appointment is November 24, 2026, and that Pepco is awaiting a PSC decision on extending its efficiency programs into 2027.13 A check-up is a utility program, separate from a solar consultation.

Even monthly payment plans, sometimes called budget billing, spread your costs across the year. OPC’s explainer says they help with budgeting but don’t make a bill affordable, and that if rates go up your payment may go up too.14 Our guide on lowering your electric bill in Maryland lists more options. For help paying a bill, OPC’s financial-help page lists assistance routes for Maryland residents, and DCPSC’s Winter Ready DC page points District residents to payment-arrangement help.1516

Who do I contact about a billing problem?

Call Pepco first about a charge, a meter reading or a balance, and keep the bill and service dates handy. If the call doesn’t settle it, your jurisdiction’s utility regulator has a consumer office that takes complaints, as the table shows.

Your address Office What it says it does
Maryland Maryland PSC, Consumer Affairs Division Answers customer questions and processes utility service complaints17
Washington, DC DCPSC Office of Consumer Services Assists District residents with problems with a utility or competitive provider18

Soleil Energy can’t correct a bill or settle a payment dispute. A consultation looks at your property and a possible solar project.

Can solar bring the bill down?

It can cut the kWh a suitable home buys, and it won’t touch the fixed customer charge. Pepco’s Maryland net energy metering rider says only the per-kWh components of the bill are affected. The customer charge and other non-energy charges are not.19

What happens to extra solar generation matters for the math. Under the rider, when your system sends more energy to the grid than you use in a billing month, Pepco takes ownership of the excess and you’re charged the greater of the customer charge plus any applicable non-energy charges, or the monthly minimum charge. You can have the excess carried forward until it’s used up or until the billing cycle before the end of April, or choose indefinite accrual in writing.19 Maryland’s net energy metering statute, Public Utilities Article section 7-306(f), provides for both accrual options and says a customer-generator whose output exceeds the grid supply in a month “shall be billed only customer charges for that month.”20 The rider also says a proposed system may not exceed 200 percent of your baseline annual usage, which it defines as your previous 12 months of kWh.19

Those are Maryland rules, and they have an end date. Maryland’s 2026 Utility RELIEF Act (Chapter 353) closes the first-come standard net-metering tariff at the earlier of 3,000 megawatts statewide or July 1, 2027, so ask your utility which enrollment step applies before relying on these terms.21 Our guide on the net-metering deadline explains what that means for timing. Don’t assume these rules apply to a District account, or that every exported kWh offsets every part of the bill.

Before comparing proposals, pull your last 12 bills and look at daytime use, roof condition and shading. Ask which usage-based charges the proposal assumes solar will offset, and which fixed charges stay. Our guide on Pepco solar interconnection and permission to operate covers the utility steps after installation. A high bill alone doesn’t mean a battery is worth buying either; battery storage is a separate decision.

For a home in Prince George’s or Montgomery County, you can book a free consultation or call (301) 953-4140 to talk through whether solar fits the property. Washington, DC readers can check the service area page for coverage before booking. The solar FAQ covers the consultation process.

Solar savings and incentive eligibility depend on your roof, your usage, your utility, and your tax situation. Incentive programs change and some have limited funding. We are not tax advisors — we will review your bill with you and tell you what you may qualify for. Confirm any tax credit with a qualified tax professional.

Sources (21)

  1. Pepco, Breaking down your Pepco bill: Maryland electric customer, 2026 edition (sample bill issued December 17, 2025); read October 25, 2026. The dollar amounts on the sample bill are not used. ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  2. Pepco, Maryland Electric Tariff, Rider SOS, Schedule R generation and transmission table, page issued September 28, 2026, effective for usage on and after October 1, 2026; read October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8

  3. DCPSC, Electricity Standard Offer Service (SOS) rates, undated current page describing the July 1, 2026 change; read October 25, 2026. ↩ ↩2 ↩3

  4. Maryland OPC, Why is my Pepco bill so high?, undated page written after January 2025 (it cites an August 2024 OPC report); read October 25, 2026. Used for the usage explanation and the $14 capacity estimate, which is OPC’s. ↩ ↩2 ↩3 ↩4 ↩5

  5. Maryland PSC, Order No. 92607, Case No. 9820, August 28, 2026, Table 1, ordering paragraphs (2)-(3) and footnote 578, and the Phase II discussion; read October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5

  6. Maryland PSC, Maryland Public Service Commission denies over half of Pepco’s rate increase request, news release of August 28, 2026; read October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12 ↩13 ↩14 ↩15

  7. Maryland PSC, About the PSC, undated current page; read October 25, 2026. ↩

  8. Pepco, Maryland Electric Tariff, Schedule R monthly rate page, issued August 14, 2026, effective for usage on and after August 11, 2026; read October 25, 2026. ↩ ↩2 ↩3 ↩4 ↩5 ↩6 ↩7 ↩8 ↩9 ↩10 ↩11 ↩12

  9. Pepco, proposed clean and redlined distribution tariff sheets, Case No. 9820, issued September 21, 2026 for usage on and after November 1, 2026; read October 25, 2026. The Schedule R sheet lists the higher charges in a column headed “Effective August 10, 2026” and shows “Date Effective: Usage on and after November 1, 2026” in the page footer. ↩ ↩2 ↩3 ↩4

  10. DCPSC, Pepco multiyear rate plan, Formal Case No. 1176, undated current case page; read October 25, 2026. ↩ ↩2

  11. DCPSC, Order No. 22806, Formal Case No. 1176, March 27, 2026 (copy hosted by the D.C. Office of the People’s Counsel); read October 25, 2026. ↩

  12. DCPSC, Understanding your electric bill, undated current page; read October 25, 2026. ↩

  13. Pepco, Quick Home Energy Check-up frequently asked questions, undated current page; read October 25, 2026. ↩

  14. Maryland OPC, Payment plans, undated current page; read October 25, 2026. ↩

  15. DCPSC, Winter Ready DC, undated current page; read October 25, 2026. ↩

  16. Maryland OPC, Financial help with my gas and electric bill, undated current page; read October 25, 2026. ↩

  17. Maryland PSC, File a complaint, undated current page; read October 25, 2026. ↩

  18. DCPSC, Utility consumer complaints, mediation, and inquiries, undated current page; read October 25, 2026. ↩

  19. Pepco, Maryland Electric Tariff, Rider NEM, pages issued May 1, 2026, effective for usage on and after May 1, 2026; read October 25, 2026. ↩ ↩2 ↩3

  20. Maryland General Assembly, Public Utilities Article section 7-306(f), current statute text; read October 25, 2026. The online page does not yet show the 2026 amendments to subsection (d); the closing date for the first-come tariff comes from Chapter 353, cited separately. ↩

  21. Maryland General Assembly, Chapter 353 of 2026 (House Bill 1532, Utility RELIEF Act), amending Public Utilities Article section 7-306(d)(1) so that the first-come standard net-metering tariff is available until the earlier of 3,000 megawatts or July 1, 2027; approved May 12, 2026, read October 25, 2026. ↩

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