A Pepco rate hike in D.C. remains a hot topic as customers continue seeing higher electric bills, even after a court ruling found problems with how those increases were approved.
The controversy dates back to a multiyear plan Pepco filed in 2023 to raise distribution rates. Regulators approved a scaled-down version in late 2024 that allowed roughly $123 million in increases over two years, with higher bills taking effect in January 2025.
In March, the D.C. Court of Appeals threw that approval out, agreeing with consumer advocates that regulators failed to hold a required trial-type hearing before signing off on the rate hikes.
Consumer advocates had hoped that the ruling would quickly lead to lower rates and refunds for customers. Instead, regulators said that won鈥檛 happen right away.
The Public Service Commission of the District of Columbia on Friday decided to but is allowing current rates to remain in place. It has declined, for now, to order refunds for what customers have paid since January 2025.
The Office of the People鈥檚 Counsel, which challenged the rate increases in court, tied to a decision that was thrown out.
“When you vacate a decision by the agency, and that decision is the only basis for why you can have a rate increase, then you have no legal basis for charging the rates that you’re currently allowing Pepco to charge. It’s pretty simple,” Senior Assistant People鈥檚 Counsel Ankush Nayar told 蜜桃视频app.
Nayar, the lead attorney on the case, said the court found regulators failed to follow required procedures, and because of that, the increases should be undone and refunds issued.
“There’s money that’s rightfully the ratepayers’ and rightfully belongs to the District of Columbia, and that money should be returned to the people, particularly at a time when energy prices are going up and costs are going up,” he said.
The commission, however, rejected requests to immediately roll back rates or issue refunds, saying rates could ultimately be adjusted once a new order is issued after a full evidentiary hearing.
saying it provides stability for customers while the case is revisited.
In a statement, the utility said keeping rates consistent ensures continuity and predictability for customers and avoids multiple or sudden changes to monthly bills as the review moves forward. Pepco also said maintaining the current rates allows for a more orderly and transparent process while regulators reconsider the plan.
The company said the rates help fund infrastructure upgrades, harden the grid against extreme weather and meet growing energy demand as the District moves toward cleaner energy sources.
“We remain committed to working constructively with the Commission and stakeholders to ensure a complete and transparent review of our filing over the coming months,鈥� the statement said.
Still, Nayar believes customers are paying the price in the meantime, estimating the impact of the increases could add up to a couple of hundred dollars or more, depending on usage.
Regulators are expected to revisit the case later this year, with hearings potentially scheduled for the fall.
“We feel pretty confident that the law is on our side,” Nayar said.
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