Pepco’s rate hike challenged in court: Oral arguments begin seeking to overturn PSC’s approval of rate increase

Pepco’s $123 million rate hike is being challenged by the Office of the People’s Counsel (OPC), and oral arguments starting in late October. Representatives for the OPC, the Public Service Commission, Pepco, and others are expected to present evidence and testimony to the three-judge panel.

 The OPC states that our regulator’s approval of Pepco’s rate hike was highly inappropriate, calling it “unsupported by substantial evidence and inconsistent with the law.” In its brief to the Court, the OPC purports that Chairman Thompson and Commissioner Trabue of the PSC ignored legal precedent, avoided evidentiary hearings, and are arguing around procedures of the case rather than actual facts. Because the PSC’s approval to grant Pepco the authority to raise rates on DC households and businesses was based on poor evidence and improper legal logic, the OPC is seeking to vacate the entire rate case, returning Pepco rates back to 2024 levels.

Pepco and the PSC had also filed their own briefs defending the approved rate hike, which the OPC addresses in its own brief.

During the initial oral arguments, which can be watched in full here, the judges appeared unimpressed with the Public Service Commission’s reasoning and answers. It’s unclear whether the judges will vacate the order, affirm it, or require additional explanation from the PSC and Pepco on the original decision. What we do know is that this unjust rate case was sloppy, lacked precedent, and is now costing DC taxpayers even more money as PSC staff defend the Commissioners poor decisions in the DC Court of Appeals.