How much does Pepco charge per kWh in DC in 2026?
If you've looked at your Pepco bill and wondered exactly what you're paying per kilowatt-hour — and why it keeps going up — this page breaks it down completely.
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The 23.9¢/kWh figure is the all-in residential rate — it includes every charge on your bill divided by your total usage. On top of that, the fixed $7.39 monthly customer charge applies to every Pepco residential customer regardless of how much electricity they use. That charge doesn't go away even if you install solar.
What makes up your Pepco bill
Your total Pepco bill isn't just one rate — it's several charges stacked together:
How much has Pepco raised rates since 2020?
A lot more than most people realize. Here's what DC residential customers have actually absorbed since 2020 — in both dollars and percentages:
| Period | $ Increase | % Increase | Driver |
|---|---|---|---|
| 2020 | +$8.21 | ~8% | Distribution rate plan approved |
| 2021 | +$3.84 | ~4% | Rate plan year 2 |
| 2022 | +$3.41 | ~3% | Rate plan year 3 |
| June 2023 | +$12.18 | ~11% | New multiyear rate plan begins |
| June 2024 | +$8.12 | ~8% | SOS supply increase |
| Jan–May 2025 | +$7.54 | ~5% | Distribution rate increase |
| June 2025 | +$20.81 | +17.7% | SOS wholesale auction spike — highest in a decade |
| January 2026 | +$3.80 | ~3% | Rate plan continuation |
| Total 2020–2026 | ~+$68 | ~52–60% | Six years of compounding increases |
The average DC residential bill was around $90–100/month in 2020. By June 2025, the average had risen to nearly $138/month. That's not a gradual drift — that's a fundamental shift in what DC electricity costs.
The June 2025 SOS increase of 17.7% in a single month came from a PJM capacity auction that set the highest wholesale power prices in nearly a decade — driven by data center demand, plant retirements, and years of underinvestment in new generation. That auction result landed on every Pepco SOS customer's bill within weeks.
This past winter brought the sharpest bills many DC residents had ever seen. Dozens reported bills that doubled or tripled. A Ward 4 councilmember received a $899 bill. An at-large councilmember got $1,100. One-bedroom apartment residents reported $400 monthly bills. Cold weather was part of it — but the underlying rate structure made those spikes possible.
Why is it accelerating?
1. Grid infrastructure costs
Pepco's two approved Multiyear Rate Plans ($108M and $123M) are funding grid modernization across DC. Those costs are baked into your bill whether you benefit from the upgrades or not. Consumer advocates have criticized the process, arguing Pepco was allowed to charge customers upfront without adequate review of how prior plan funds were actually spent.
2. Data center demand
Northern Virginia houses 35% of the world's data centers. That industrial demand has added an estimated $8–10 billion in regional energy supply costs since 2024 alone — which flows through to PJM capacity charges and ultimately to every Pepco customer's bill.
3. Supply tightening
Power plant retirements across the region are outpacing new generation coming online. PJM paused review of most new energy projects for years starting in 2021 — including wind, solar, and storage — which delayed the new supply that could have eased prices. The most recent capacity auction set the highest prices in nearly a decade.
What a typical DC household pays
The average DC residential customer uses around 614 kWh per month. At 23.9¢/kWh plus the fixed customer charge, that works out to roughly $154–$160 per month. Higher-usage households — those with electric appliances, older insulation, or central AC — often see bills of $200–$300 or more. This past winter, some DC residents hit $400–$1,100.
Are Pepco rates going to keep rising?
All available evidence says yes. The structural drivers — grid modernization costs, data center demand growth, regional capacity tightening — are not temporary. Pepco itself has submitted plans projecting continued annual rate increases of approximately 6% per year.
What this means for solar
At 23.9¢/kWh, every kilowatt-hour your solar panels produce is worth nearly twice the national average in savings. A typical 10kW system in DC produces around 11,000 kWh per year — offsetting roughly $2,629 in annual electricity costs at today's rates. As Pepco rates rise, that number grows every year.
DC is one of the strongest solar markets in the country precisely because the electricity you're replacing is so expensive — and getting more expensive every year. Solar doesn't just save you money today. It locks in today's economics while the grid keeps getting more costly.
A free solar PPA in DC saves roughly $2,600/year at today's rates — and that number grows automatically every time Pepco raises rates. Over 25 years at 6% annual increases, the cumulative savings are substantial.
Common questions about Pepco rates
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