Between March 2021 and March 2026, average electricity bills for D.C. residents rose nearly 67 percent, driven largely by surging generation costs tied to the regional grid operator, PJM Interconnection. But that’s only part of the story. 

Over the same period, distribution charges regulated by the D.C. Public Service Commission rose 49 percent, reflecting a series of rate increases that have added roughly $245 million in additional revenue for Pepco since 2017. As costs climbed, many families struggled to keep up: Pepco issued 216,970 final notices to D.C. households in 2024, leading to 15,623 disconnections, affecting roughly one in 10 residential customers over the course of the year.

Meanwhile, since 2017, Pepco’s profits have nearly doubled – increasing from $205 million to $401 million. Those gains flow up to its parent company, Exelon, which reported $2.8 billion in profits last year. 

At the same time, Exelon’s CEO Calvin Butler, Jr. received total compensation of $15.6 million, including a year-over-year pay increase, despite the company falling short on key customer satisfaction metrics tied to his pay.

The utility has also sought increasingly robust shareholder returns, requesting a 10.5 percent return on equity in its most recent rate case. Almost 12 cents of every dollar paid by Pepco customers goes to corporate profits.

It is incumbent on the D.C. Council to act now. As the legislative branch of the D.C. government, the Council can directly leverage its policymaking capabilities, paired with tactical and advocacy measures, to address utility affordability for residents and businesses. Below, we lay out the options.