DC Distribution Rates
The District of Columbia Public Service Commission has approved an increase in Pepco’s distribution rates for all customers effective with service rendered on and after February 20, 2008.
The average monthly bill of the typical residential customer who uses 750 kilowatt-hours per month will increase 2.27 percent or $1.74 under the new rates – or increase from $76.64 to $78.38 per month.
This is the first increase in delivery rates in more than a decade and reflects increasing costs to maintain poles, wires and critical high-tech equipment of the electric distribution system.
Bills reflecting the new rates begin mailing February 26, 2008, and will include a bill insert explaining the rate increase as well as a list of new residential rate schedules. New rate schedules are available for commercial customers.
The distribution rates for customers who participate in the Residential Aid Discount (RAD) program will not increase and will remain capped until August 2009.
The Public Service Commission also approved eliminating the minimum monthly charge on the first 30 kilowatt-hours and replacing it with a monthly Customer Charge of $2. The new Customer Charge will have a modest bill impact and give customers a more accurate price signal on the cost to provide distribution service.
The commission also approved the addition of a “Residential Aid Discount Surcharge” as a separate item on customer bills to pay for the RAD program. This program funds a discount for low-income customers. In the past the surcharge was included in distribution rates.
Frequently Asked Questions
How much will the bill of a typical residential increase?
The average monthly bill of the typical residential customer who uses 750 kilowatt-hours per month will increase 2.27 percent or $1.74 under the new rates – or increase from $76.64 to $78.38 per month.
When do the new rates take effect?
The new distribution rates take effect with service rendered on and after February 20, 2008, and will be reflected in bills that begin mailing February 26, 2008.
Why is the increase in distribution rates necessary?
The distribution rate increase reflects ever increasing costs since the mid-1990s to maintain poles, wires and critical high-tech equipment of the electric distribution system. The increase will be used to improve reliability and support investment in new technology to keep pace with growth and increasing customer demand for power.
When was the last increase in distribution rates?
This is the first increase in distribution rates in more than a decade.
How are distribution rates different from supply rates?
Distribution rates are separate from electric supply rates. Supply rates adjust annually to reflect the cost of power that Pepco buys on behalf of customers who do no contract with an alternative supplier. Distribution rates cover the cost of delivering electricity to customers.
Will rates for RAD participants increase?
No, rates for RAD customers will not increase and are capped until August 2009.
What is this new Customer Charge?
The Customer Charge will have a modest bill impact and is designed to give customers a more accurate price signal on the cost of providing electric distribution service.
What is the Residential Aid Discount Surcharge?
A “Residential Aid Discount Surcharge” has been added as a separate item on customer bills to pay for the RAD program, which funds a discount for low-income customers. In the past the surcharge was included in distribution rates.
