What's Actually on Your Washington DC Electric Bill (2026)
One utility delivers every kilowatt-hour in the District: Pepco. Here's what each charge on the bill means and which part of it you can actually shop.
Why is my bill so high when the rate is only 23.7¢/kWh?
Because the per-kWh rate is only one of five charges stacked on a typical Washington DC bill. Supply, distribution, a fixed customer charge ($17.09/month on Pepco (Potomac Electric Power)), riders, and taxes all sit on top of each other. About 60 percent of the total is the supply rate you can shop. The rest — delivery and fixed charges — stays the same whether you switch or not. Below: each line, what it costs, and which ones you can actually move.
A typical Washington DC bill, line by line
For a residential customer using 1,000 kWh per month — the U.S. average — here's what each line on the bill actually costs.
Sample residential bill — Washington DC, 1,000 kWh
Pepco (Potomac Electric Power) tariff values — your actual bill varies by supplier and usage.
| SOS supply (1000 kWh × 11.5¢) | $115.00 |
| Distribution (1000 kWh × 3.6¢) | $36.00 |
| Customer charge (Schedule R) | $17.09 |
| Riders & surcharges | $7.50 |
| DC sales tax | $6.50 |
| Total monthly bill | $182.09 |
Pepco (Potomac Electric Power) customer charge: $17.09/mo. Default residential rate: 23.7¢/kWh. Source: NREL URDB.
What every line means
Utilities use slightly different labels on their printed bills, but every Washington DC electric bill includes some version of each of these charges:
Standard Offer Service / supply charge
The per-kWh price of the electricity itself — either Pepco's Standard Offer Service rate, set through a DCPSC-overseen procurement (it bundles generation and transmission), or your chosen competitive supplier's rate. The only shoppable line.
Distribution charge
Per-kWh charge for Pepco's wires, transformers, and substations getting power to your meter. Set by DCPSC tariff and identical for every residential customer on the same rate class.
Customer charge
Fixed monthly charge on Pepco's Residential Schedule R, funding metering and billing whether you used a kilowatt-hour or not.
Riders & surcharges
DCPSC-approved line items funding programs such as energy efficiency (Sustainable Energy Trust Fund), low-income assistance (Energy Assistance Trust Fund), and reliability investments.
Sales tax
The District's sales tax applies to the electric portion of the bill.
The big idea: Washington DC is a single-utility market: Pepco delivers every kilowatt-hour in the District. Supply has been competitive under the DC Retail Electric Competition and Consumer Protection Act of 1999 — you can shop it through any DCPSC-licensed supplier. Delivery stays with Pepco no matter who supplies you.
What you can change vs. what you can't
Every line on a Washington DC electric bill falls into one of two buckets. Knowing the difference is the entire point of bill literacy.
You CAN change
- Your supply / generation rate (shop a competing supplier)
- Your usage — through efficiency, behavioral change, weatherization
- When you use electricity (if you're on TOU)
- Whether you're on the right plan structure for your household
You CAN'T change
- Your utility (it's set by your address)
- The distribution and transmission charges
- The fixed monthly customer charge
- Regulatory riders, taxes, and surcharges
The shoppable portion is roughly half your bill. A 20% improvement on the shoppable half = 10% off your total bill. That's the realistic ceiling of what switching suppliers can save you — anyone advertising "save 50% on your electric bill" is either confused or selling you something.
Why your bill went up
If your Washington DC electric bill jumped recently, the cause is almost always one of these four. Walk through them in order:
1. Your usage went up
Cold snap, heatwave, a new appliance, a houseguest, a new EV. Look at the kWh number on this bill versus last month and the same month last year. If kWh is higher, the cost was always going to be higher — supplier switching won't fix it.
2. Your supply rate reset
Your fixed-rate contract expired and you rolled to a month-to-month rate — typically 30-50% higher. Or your utility updated its default Basic Service rate (Massachusetts and Pennsylvania utilities reset their default rate every 6-12 months). This is the most fixable cause.
3. The utility raised distribution or fixed charges
Approved by the DC PSC in a base rate case. These changes are announced months in advance and affect every customer of that utility equally. Shopping suppliers won't avoid them.
4. A new rider was added
New energy efficiency surcharge, storm response cost recovery, or transmission upgrade rider. Usually a few percent of your bill at most. Itemized on the bill.
Our Bill Grade tool reads your bill and tells you which of these four caused your increase — and which (if any) you can fix this month.
Washington DC utilities at a glance
Customer charge and default residential energy rate for each Washington DC utility. Click through to see live supplier rates available in that territory.
| Utility | Customer charge | Default rate | Tariff source |
|---|---|---|---|
| Pepco (Potomac Electric Power) | $17.09/mo | 23.7¢/kWh | Tariff PDF |
Want to know if your bill is high?
Upload your most recent Washington DC electric bill or type in a few numbers and we'll grade it against rates available in your area today. Free, no signup.
Frequently asked questions
What are all the charges on my Washington DC electric bill?
A Washington DC residential electric bill from Pepco splits into five buckets. Supply is the per-kWh price of the electrons themselves — either Pepco's Standard Offer Service rate (set through a DCPSC-overseen procurement) or your chosen competitive supplier rate. Distribution covers Pepco's wires, transformers, and substations getting power to your meter. A fixed customer charge funds metering and billing whether you used a kilowatt-hour or not. Rider and surcharge line items fund programs the DC Public Service Commission has approved, such as energy-efficiency and reliability investments. The DC sales tax sits on top.
What is the difference between supply and distribution charges on a Pepco bill?
Supply pays for the electricity itself. Distribution pays to move it to your meter. In Washington DC, supply is competitive under the DC Retail Electric Competition and Consumer Protection Act of 1999 — you can stay on Pepco's Standard Offer Service rate or sign with any competitive supplier licensed by the DC Public Service Commission. Distribution is a regulated monopoly. Pepco owns the wires across the District, and its distribution charges are set by the DCPSC and identical for every residential customer on the same rate class. Switching suppliers changes only the supply line.
Why does my Pepco electric bill jump in summer?
Two reasons. First, the Standard Offer Service rate can step up when Pepco's procurement costs reset, and an increase lands on summer bills. Second, summer is when air conditioning runs hardest. A 3-ton central AC pulls roughly 3,000 watts. In the District's humid summers, a typical home's usage can climb well above its winter baseline. That combination of a higher rate and higher usage compounds. The fixed customer charge and most riders stay flat year-round.
How can I reduce the parts of my Pepco bill I can control?
You can shop supply. DC Energy Choice lists every competitive supplier licensed by the DC Public Service Commission. Locking a fixed competitive rate below Pepco's current Standard Offer Service rate trims every future kWh charge on the supply line. Pepco also offers time-of-use options if you can shift laundry, dishwashers, and EV charging off the weekday peak. Distribution charges, the customer charge, and DCPSC-approved riders are set by Commission order and the same for every customer in your rate class — those parts of the bill are not shoppable.