Pepco says rising energy bills in Washington, D.C., are primarily driven by higher regional electricity supply costs — not Pepco’s delivery charges. Supply prices have increased as older power plants retire and electricity demand grows due to electrification, economic growth, and energy-intensive uses like data centers and AI. Supply now accounts for about 62% of the average customer bill, and DC is especially exposed because it imports nearly all its electricity. Colder winter weather also increased usage.
To help customers, Pepco highlights significant relief efforts, including more than $22 million in assistance in 2025 through programs like LIHEAP, the District’s Residential Aid Discount (RAD), and the Pepco Customer Relief Fund, along with budget billing and flexible payment plans. Pepco emphasizes it does not control supply prices but is working to protect customers by ensuring large new energy users pay for needed infrastructure and by advocating for long-term solutions with D.C. leaders.
Full letter from Pepco Region President Amber Perry:
Dear Chairman Mendelson and Councilmembers,
I know many families and small businesses in the District are feeling real financial pressure right now, and higher energy bills are adding to that strain. We hear directly from customers who are worried about how to manage these costs, and I want each of you to know that helping our customers through this moment is our top priority.
Pepco has been working to connect customers with available assistance to deliver both immediate relief and long-term support. In 2025 alone, we helped secure over $22 million in financial assistance to over 23,000 District customers, including more than $10 million through LIHEAP and approximately $9 million through the District’s Residential Aid Discount (RAD) program.
Through the Pepco Customer Relief Fund (CRF), we have provided more than $3.25 million in direct support to the District, including $1.8 million distributed to more than 7,000 customers in 2025. In addition to these efforts, residents can access budget billing, flexible payment plans, and other assistance programs. We are continuing to encourage customers who are struggling to reach out early so we can help them explore these options.
At the same time, it’s important to acknowledge what is driving many of these higher bills. Energy supply costs across the region have risen sharply as older power plants retire and demand grows — from electrification, economic growth, and energy-intensive technologies like data centers and AI. Supply costs now make up 62% of the average customer’s total bill. The District imports nearly all of its electricity so customers here are particularly exposed to these market pressures. Colder weather this winter also meant customers used significantly more energy.
While Pepco does not control supply prices, we take seriously our responsibility to protect customers wherever we can. That includes ensuring large new energy users pay the costs associated with the infrastructure needed to serve them, rather than shifting those costs to households and small businesses.
Importantly, even as we navigate these challenges, Pepco continues to deliver exceptional service. Based on benchmarking of peer utilities nationwide Pepco Holdings ranks #2 for fewest outages, underscoring our commitment to providing safe, consistent, and resilient energy service for District residents.
I value the partnership between Pepco and District leaders, and I appreciate the work the Council is doing to support residents. We remain committed to working with you and other stakeholders to address both the immediate affordability challenges customers are facing and the longer-term need for reliable, reasonably priced energy.
I welcome the opportunity to meet with you each in person to discuss our efforts further. In the interim, please don’t hesitate to reach out with specific questions or concerns.
Sincerely,
Amber Perry
Pepco Region President
Here is a link to The Washington Informer talk with Amber Perry: https://youtube.com/live/kZiuVSS6gYs