September Pepco Numbers: Utility unaffordability remains high while residents brace for 2026 rake hikes

Disconnection notices from Pepco ticked up again from August to September, climbing to over 16,000 from the 12,000 before. That’s a 33% increase in just a single month. It’s no secret that the costs in DC have been squeezing residents for years: from necessities like housing and groceries, to small pleasures like dining out. The cost of electricity is no different—and with already one in four DC residents consistently indebted to Pepco, 

Let’s be clear: the scheduled rate hike is not for the cost of energy itself, it’s the price Pepco charges to deliver that energy to homes and businesses. In late 2024, the city’s utility regulators, PSC Chairman Emile Thompson and Commissioner Trabue, voted to approve $123 million in rate hikes over 2025 and 2026. This shakes out to be an increase of around $11.34 in the average residential bill with an additional monthly $1.00 increase in customer charges.

Approval of Pepco’s rate hike was hated across the political and financial spectrum of DC. The Office of the People’s Counsel is currently suing the PSC over this rate hike in the DC Court of Appeals, with the Office of the Attorney General and Association of Apartments & Office Building Association filing supporting briefs. In addition to this, environmental groups, We Power DC, and Metro DC Democratic Socialists have all voiced support to repeal this rate increase. When was the last time you saw landlords and socialists agreeing on an issue?

This rate hike was a shortsighted mistake, especially when considering Pepco’s history of financial mismanagement and cost overruns, as detailed in We Power DC’s white paper. It’s even worse as our PSC regulators were well-aware of the incoming massive spikes in energy costs hurtling towards DC residents and businesses. In June 2025, this increased costs bumped up the average bill by nearly 18%.

Pepco’s own rate increase (i.e. the charge for simply delivering electricity) already faced swift backlash, with the utility suspending shutoffs earlier this winter and launching a bill management campaign. This is not enough, especially when Pepco is guaranteed over 9% return on ratepayer money.

What DC residents and businesses need is a rate freeze: a pause on delivery charges before the scheduled 2026 increases start hitting bills. This can be achieved through emergency legislation by the Council of the District of Columbia, which has some authority over the PSC. While a rate freeze is only temporary, it’s the starting line for our elected officials to push back against the blatant profiteering from Pepco and stand up for the public good.

It’s time the DC Council brings down the cost of living, so why not start with a for-profit company they already have the authority to regulate? We need lower rates, fewer rate hikes, spending transparency, and overall: to remove the profit incentive from our power grid altogether.

Electricity is a public good and should be treated as such—because right now, Pepco is just using it as just another way to leach dollars out of DC’s pockets.