ROE is the percentage added to our bills to reward for shareholders for investment, namely into Pepco’s infrastructure like powerlines and substations. We also pay for that cost as ratepayers. A 9.5% ROE is vastly more expensive than the public power model, which uses bonds around 4%.

The final tail of Pepco’s $123 million rate increase is scheduled to go into effect January 2026. Meanwhile, DC residents continue to be squeezed by sky-high energy costs and economic downturns hitting the entire DMV region.

The cost of electricity is up 93.2% in the nation’s capital, according to reporting from Inside Climate News. Not only has this expense nearly doubled, DC outpaced all other states in increasing energy costs.

Pepco brought in close to $49 million in revenue from DC residents alone, not including business and commercial customers. While the utility boosted its revenue compared to last year, it also kept over half of all low-income residents (58%) in utility debt while sending out over 12,000 disconnection notices to homes behind on their bills.