A Guide to Pepco Electricity Rates

Understanding Your PEPCO Electricity Bill

There are two separate types of charges on your PEPCO electric bill, delivery charges, and supply charges. With Energy Choice, you can take control of your electricity supply charges by switching electricity providers.

Delivery Charges

Delivery charges generally go to PEPCO and are there to support the delivery of your electricity. These charges do not change when you switch electricity providers since the Maryland Public Service Commission sets them for each utility in the state.

Supply Charges

Supply charges are charges for the electricity that you use. The cost for your energy supply is what changes when you switch electricity providers. You can compare electricity plans by using the electricity supply rate on your bill.

For more information visit our PEPCO electricity bill page.

Smart Ways to Save with PEPCO

Pepco Maryland offers a robust selection of programs under the EmPOWER Maryland initiative to help residential customers reduce their carbon footprint and lower their monthly energy costs.

Here is a comprehensive breakdown of the latest programs, rewards, and rebates available to Pepco customers.

1. Direct Rewards & Bill Credits

These programs provide immediate financial incentives in exchange for helping Pepco manage peak demand on the grid.

Energy Wise Rewards™: You can receive a web-programmable thermostat or an outdoor AC switch installed at no cost.

1. 1. • The Reward: Up to $80 in installation credits and up to $80 in annual bill credits during the summer.
      • How it works: During “conservation periods” (typically 5 days a year), Pepco cycles your AC compressor off and on for short intervals.

Flex Rewards (New): A year-round program for customers who already have a smart thermostat.

1. • The Reward: Up to $72 in bill credits per device per year.
   • How it works: Pepco makes minor temperature adjustments (1–3 degrees) for less than two hours during periods of high demand in both summer and winter.

2. Residential Energy Efficiency Rebates

PEPCO provides significant rebates for upgrading old, inefficient equipment to high-efficiency ENERGY STAR® models.

3. Home Performance & Electrification

The Home Performance with ENERGY STAR® program is the “gold standard” for deep energy savings, offering massive incentives for whole-home upgrades.

1. • Quick Home Energy Check-up (QHEC): A pro visits your home to identify energy leaks and installs up to $75 worth of energy-saving items (LEDs, faucet aerators, pipe wrap) at no additional cost.
   • Home Energy Assessment: For a $100 fee, a contractor performs a deep-dive audit of your home’s efficiency.
   • Massive Upgrade Rebates: Based on your assessment, you can qualify for up to $10,000 for weatherization (insulation, air sealing, duct sealing). And up to $15,000 if you “electrify” your home by switching from fossil fuel (gas/oil) heating and water systems to qualifying electric heat pumps.

4. Financing & Low-Income Assistance

If the upfront cost of upgrades is a barrier, Pepco offers financing and specialized aid.

1. • Clean Energy Advantage (CEA) Loans: Low-interest loans for energy upgrades, with some applicants qualifying for 0% interest for the first 24 months.
   • Limited-Income Programs: * No-Cost Weatherization: Income-qualified households (e.g., a family of four making $97,800 or less) may receive all energy-efficient upgrades, including insulation and HVAC repair, at no cost.
   • Pepco Customer Relief Fund: Eligible Maryland customers can receive a $300 credit toward past-due balances.

Maryland’s 100% Clean Energy Future

Maryland is currently pursuing one of the most aggressive climate agendas in the nation, anchored by the Climate Solutions Now Act. While previous laws aimed for 50% renewable energy by 2030, the state’s current mandate has expanded to achieve a 100% clean energy grid by 2035 and net-zero emissions by 2045. PEPCO is actively modernizing their grid to integrate high-voltage transmission and battery storage.

Residents can support this green transition immediately through two primary paths:

• Community Solar: The most accessible way to support local Maryland projects while lowering your bill.
• Green Power Plans: A “Energy Choice” option where you match your home’s usage with 100% Renewable Energy Certificates (RECs). Note that under Senate Bill 1 (effective 2025), retail energy contracts are now limited to 12-month terms to provide better consumer protection and price transparency.

Maryland Community Solar: Simplified Savings

Maryland has officially moved from a “pilot” to a Permanent Community Solar Program, removing the previous cap on clean energy development. This “virtual net metering” system allows renters, homeowners, and businesses to subscribe to local solar farms without any equipment installation. As of January 1, 2026, the program has become even more user-friendly with the launch of Utility Consolidated Billing, meaning your solar credits and subscription charges appear on a single utility bill rather than two separate statements.

Why Choose Community Solar in MD?

• Guaranteed Savings: Most plans offer a fixed discount (typically 10% to 25%) off your standard electricity rate.
• Equity-Focused: Maryland law mandates that 40% of program capacity is reserved for Low-to-Moderate Income (LMI) households, often with higher guaranteed savings rates.
• Top-Tier Managers: We partner with industry leaders like Arcadia and Nexamp to manage your subscription. While Arcadia specializes in a seamless digital enrollment experience, Nexamp often owns the local projects they manage—such as the landmark Kent Island array—providing long-term stability and direct community benefits.

If you would like more information about enrolling head over to our Maryland community solar page. Or to check if there are any current community solar projects available in your area of Maryland, enter your ZIP code at the top of this page.

History of PEPCO Energy Choice

For decades in the Maryland suburbs of Washington, D.C., the Potomac Electric Power Company (Pepco) operated as a vertically integrated monopoly. As the primary utility for Montgomery and Prince George’s Counties, Pepco controlled every stage of the energy lifecycle — from generating the power at regional plants to delivering it through the wires to your home. Because there was no competition, Pepco was the sole provider, with rates for generation and delivery bundled together and set through regulatory oversight.

PEPCO Service Area

PEPCO delivers electricity and natural gas across 640 square miles in Washington DC and the surrounding areas in Maryland.

• Montgomery County: Rockville, Silver Spring, Bethesda, Gaithersburg, Germantown.
• Prince George’s County: Hyattsville, Laurel, Bowie, College Park, Upper Marlboro.

The Shift to Energy Choice (1999)

The landscape shifted dramatically when the Maryland General Assembly passed the Electric Customer Choice and Competition Act of 1999. This landmark legislation effectively “unbundled” PEPCO’s services.

• Supply: The actual electricity or natural gas you consume. This was opened to a competitive market, also known as Energy Choice.
• Delivery: The maintenance of poles, wires, and pipes. This remained PEPCO’s exclusive responsibility.

Recent Regulatory Changes: Senate Bill 1 (SB1)

The competitive environment for PEPCO customers changed significantly with the enactment of Senate Bill 1 (SB1) in 2024. Effective as of 2025, this law was designed to curb predatory marketing and “bait-and-switch” pricing that some BGE customers experienced with third-party retail suppliers.

Impact on PEPCO Service Territory:

Price Protections: Senate Bill 1 (SB1) introduced stricter price caps, making it harder for retail suppliers to offer rates significantly higher than BGE’s Standard Offer Service.

• Financial Shifts: The law ended the “purchase of receivables” mechanism. Previously, PEPCO would pay suppliers for the energy they sold to customers and then handle the collection itself. Now, suppliers face higher financial risks, leading many to exit the Maryland market.
• Reduced Options: As a result of these stricter rules, the sheer volume of “Energy Choice” offers available to PEPCO customers has contracted. Many residents have found it more stable or cost-effective to return to PEPCO’s SOS rates, even as those utility-standard rates fluctuate with global energy markets.

While SB1 provides a safety net against deceptive “green power” claims and hidden fees, it has effectively cooled the competitive fever of the early 2000s, returning many residents to PEPCO as their primary source for both delivery and supply.

PEPCO Utility Contact Information

For power outages, emergencies or billing questions, contact PEPCO directly:

• PEPCO Customer Service Number: 202-833-7500
• PEPCO Report An Outage Number: 1-877-778-2222
• PEPCO’s Contact Info Page
• The SOURCE – PEPCO’s hub for stories on their work providing reliable service, connecting diverse communities, and powering a 21st-century economy