A blog by Ayla Frost, CCAN’s DC Organizer

This summer, you may want to keep an eye on your electricity bills. As we know, climate change is making our summers hotter, and more households are cranking up the air conditioning. But that isn’t the main reason your bill is going up. Pepco’s latest rate hike – or bill increase – follows a pattern of rate hikes that it’s been forcing on customers for years. 

Why is Pepco raising rates?

This June, the rates we pay for electricity are rising due to a bias against clean energy by D.C.’s regional power grid operator, PJM. PJM (Pennsylvania – New Jersey – Maryland) serves as “air traffic control” for the electrical grid, coordinating the movement of electricity to meet demand. 

Utilities like Pepco get their electricity through PJM’s regional grid, and currently, the cost for that energy is skyrocketing. This is because fossil fuels are less reliable than solar and wind plants and more prone to fail during extreme weather. As PJM consistently prioritizes unreliable fossil fuels over clean energy, it has to tap into additional resources to keep the grid afloat when fossil fuels fail – creating additional cost that is, of course, passed on to consumers.

This means that Pepco customers can expect to pay up to 18% more on their Pepco bills starting this June. And that’s not all. This rate hike fits into a larger pattern of rate increases by Pepco and other utilities in the DC region. 

Just five months ago, in January, Pepco was responsible for another rate hike which increased electricity rates in DC for the third year in a row. Why so many hikes? Quite honestly, because they can. Pepco practically has a monopoly on our electricity in DC, and is regulated by DC’s Public Service Commission, which is responsible for protecting consumers, regulating monopolies, and conserving natural resources. Unfortunately, right now, the Public Service Commission (PSC) is failing to protect D.C. residents from higher bills. In fact, the PSC has already approved Pepco’s “Climate Ready Pathway DC Multi-Year Plan,” which means D.C. can expect more hikes in the coming years. 

DC residents are already struggling to pay for housing, groceries, health care, education, and so much more. This alarming pattern of rate hikes creates a serious crisis of energy affordability in DC.  Everyday people can’t keep footing the bill for energy monopolies’ corporate greed. The D.C. Council needs to step in to protect ratepayers from this energy affordability crisis. In the meantime, resources are available to help D.C. residents to cope with high utility bills. 

How can I lower my utility bills?

Apply for assistance! The D.C. government offers many services to help residents afford their utility bills. You also may qualify for utility discounts or credits. Starting in October, you may be able to save money through the Low Income Home Energy Assistance Program (LIHEAP). LIHEAP is one of many programs currently targeted by the Trump administration, and its future remains uncertain. 

Electrify your appliances. You’ll save money on your bills if you upgrade your old appliances, including water heaters, clothes dryers, and gas stoves. DC Sustainable Energy Utility (DCSEU) offers programs to help you afford the switch to energy-efficient electric appliances like heat pumps, smart thermostats, and induction stoves. If you’re eligible, swapping out your appliances might be completely free!

Increase your energy efficiency. If you qualify for the Weatherization Assistance Program, you can receive an energy audit and free upgrades to increase the efficiency of your home. These won’t make your home electric, but they can help save you money, and weatherization will also help the environment. 

Get solar panels. DCSEU offers Community Solar and Solar for All programs to install solar panels on your roof for free, if you qualify! DC also offers Solar Renewable Energy Credits (SRECs) for solar energy generation. These can be traded or sold, in effect earning you dividends for providing green energy. 

But these programs rely on funding from our city’s budget, and every year advocates have to defend D.C. residents’ right to affordable energy that doesn’t pollute our planet. Check out our handy guide to home electrification and weatherization and discover how you can make your home cleaner, healthier, and more energy efficient here. 

How can I stand up for my DC neighbors?

We need you with us – get involved! Join a local organization to help solve this affordability crisis caused by corporate greed and lack of utility regulation. Take the Climate Action Survey to join our team of volunteers pushing back on Washington Gas’s plans to lock DC into fossil fuels – all while profiting as much as possible. Fired up about holding Pepco accountable? Join We Power DC to advocate for publicly owned utilities in DC.