What does a small business actually pay for electricity in DC? On Pepco’s General Service Non-Demand schedule, energy charges run 7.7¢ to 18.5¢/kWh depending on time of use, plus a $35.59/month customer charge.
That’s the regulated side. The supply side is shoppable — and since PJM capacity prices started climbing, the gap between Standard Offer Service and a fixed competitive contract is the number DC businesses should be watching. This page breaks down the full bill and where to shop.
Washington DC opened electricity supply to competition in 2001. Pepco remains the only distribution utility — every business in the District is in Pepco territory — but the supply portion of the bill is shoppable. Businesses that never choose a supplier default to Pepco’s Standard Offer Service (SOS), which is procured at wholesale auction and adjusts with the market. PJM capacity-price increases flow straight into SOS, which is why many DC businesses lock a fixed competitive contract instead.
Every commercial bill in the District has the same skeleton: a flat customer charge, an energy charge in cents per kWh (time-of-use priced, even for small accounts), and — once your peak demand crosses roughly 25 kW — a demand charge in dollars per kW based on your single highest usage spike of the month. The demand charge surprises new business owners more than anything else: one afternoon of running every piece of equipment at once can set the bill for the whole month.
The supply line is where you have a choice. Do nothing and you pay Standard Offer Service (SOS) — procured at wholesale auction, reset periodically, and fully exposed to PJM capacity-price swings. Or sign with one of the DC PSC-licensed competitive suppliers for a fixed rate over 12–36 months. Neither is automatically cheaper; what matters is comparing the SOS price-to-compare against real quotes on your own usage profile.
DC doesn’t have multiple utilities to compare — it has multiple schedules. Your peak demand decides which one you’re on, and the bill structure changes meaningfully at each step.
| Schedule | Who it fits | Energy charge |
|---|---|---|
| GSND General Service Non-Demand | Most small businesses (peak demand under ~25 kW) | 7.7–18.5¢ |
| GSLV General Service Low Voltage | Mid-size accounts above the GSND demand limit | 6.8–21.3¢ |
| GT3A / GT3B Time-Metered General Service | Large primary/high-voltage accounts | 1.7–15.4¢ |
Energy charges shown as the time-of-use range in each schedule’s current tariff (effective August 2025). Pepco also files GS3A (primary service) and GTLV (time-metered low voltage) schedules for large accounts, with energy charges reaching roughly 18.3¢/kWh — the Pepco page below lists every schedule. Riders and adjustments are billed separately.
Pepco files its commercial tariffs with the DC Public Service Commission (DC PSC). The per-utility page has the full list of rate schedules, demand-charge details, and a chart of how the rate has moved over time.
7.7–18.5¢/kWh small business • serves all eight wards
The only electric utility in the District. Small businesses sit on the General Service Non-Demand (GSND) schedule; larger accounts move to demand-billed GSLV and time-metered GT schedules.
If you’ve only ever shopped a residential plan, four things will feel new on a DC commercial bill. Get clear on these before you compare quotes.
Standard Offer Service is procured at wholesale auction and resets with the market. When PJM capacity prices jumped, SOS followed. Staying on the default isn’t staying neutral — it’s choosing market exposure. Compare the SOS price-to-compare against fixed quotes at least once a year.
Above roughly 25 kW of peak demand, Pepco moves you to a demand-billed schedule. You then pay for your single highest 15-minute spike of the month — not your average usage. A café that fires every oven and the HVAC at 7 AM pays for that peak all month. Spreading load beats rate-shopping for spiky operations.
Unlike most states, Pepco’s GSND small-business schedule is already time-differentiated — the same kWh costs 7.7¢ off-peak and up to 18.5¢ on-peak. If your operation can shift heavy loads to early morning, evening, or weekends, you cut the bill without touching your supplier.
DC bills carry riders beyond energy + demand + customer charge — transmission, the Sustainable Energy Trust Fund, and utility recovery clauses among them. Supplier quotes often exclude some of these. Always ask for an all-in quote with capacity and transmission included, on your actual usage profile.
Small businesses in Washington DC on Pepco's General Service Non-Demand (GSND) schedule pay energy charges between 7.7¢ and 18.5¢ per kWh depending on time of use, plus a $35.59 monthly customer charge, under the tariff effective August 2025. Riders for transmission and the Sustainable Energy Trust Fund are billed on top. The supply portion is shoppable — businesses can stay on Pepco's Standard Offer Service or contract with a DC PSC-licensed competitive supplier.
Yes. Washington DC opened electricity supply to competition in 2001 under the Retail Electric Competition and Consumer Protection Act of 1999. Pepco remains the only distribution utility, but any DC business can buy its supply from a competitive supplier licensed by the DC Public Service Commission. Businesses that never choose a supplier default to Pepco’s Standard Offer Service (SOS).
Standard Offer Service is Washington DC's default electricity supply, provided by Pepco to customers who have not chosen a competitive supplier. SOS is procured through wholesale auctions and resets with market conditions, which means PJM capacity-price increases flow directly into the SOS rate. Comparing the SOS price-to-compare against fixed competitive quotes is how DC businesses decide whether switching saves money.
DC businesses with peak demand above roughly 25 kW pay demand charges. Pepco moves those accounts from the GSND schedule to General Service Low Voltage (GSLV), which bills dollars per kW on the single highest 15-minute usage spike of the month in addition to energy charges. Small businesses that stay under the GSND demand limit pay no demand charge.
Per kWh, commercial energy charges in Washington DC can be lower than the typical residential rate of about 17.1¢/kWh — Pepco's GSND off-peak energy charge is 7.7¢/kWh. But commercial bills add a higher customer charge, time-of-use pricing, and (above ~25 kW) demand charges, so a spiky load profile can make the all-in commercial cost higher. The comparison depends on load shape, not just the headline rate.
Tell us about your business and our commercial team pulls competitive supply quotes on your usage profile — free, no obligation, typically within 48 hours.
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Most DC business owners also pay a residential bill at home. These pages cover both sides.
Rate data source: Tariff information on this page is compiled from the U.S. Utility Rate Database (URDB), maintained by the National Renewable Energy Laboratory. URDB aggregates publicly filed tariffs from state public utility commissions. For the source documents, see openei.org/wiki/Utility_Rate_Database . We sync URDB monthly and verify rate changes against Pepco’s DC PSC filings. Last updated August 23, 2026.