How much is the Pepco (Maryland) rate increase?

Pepco (Maryland)'s Standard Offer Service (Price to Compare) rose about 2.7% to 13.27¢/kWh (from 12.92¢) effective June 1, 2026 (summer rate; 14.77¢ from Oct 1). That's roughly $2.45 more a month for a typical 700 kWh home.

Is Pepco (Maryland) making more profit from this?

Not from the supply increase itself — that's a pass-through with no markup. Exelon (the parent company) reported about $2.5 billion in profit in 2024, but that comes from the delivery/distribution side and its other businesses, not from marking up the power you buy. This lands on the supply (generation) part of your bill, which on a default/standard rate is a pass-through — your utility buys the power and bills it through with no markup. The utility's own profit lives in the separate delivery (distribution) charge, set in a rate case.

Will switching suppliers lower my Pepco (Maryland) bill?

Often not. When the increase is a capacity-driven default rate, a competitive supplier is buying from the same wholesale market — and many switchers end up paying more after a teaser rate resets. Compare any offer against Pepco (Maryland)'s Standard Offer Service (Price to Compare) first, and only take a fixed, full-term rate that genuinely beats it.

Rate increases · Pepco (Maryland)

Why is my Pepco (Maryland) bill going up in 2025–26?

Your Pepco (Maryland) bill went up, and it's not your imagination or just the AC. Higher PJM-driven wholesale supply costs lifted Pepco's Maryland generation rate about 12%.

The key facts

Pepco (Maryland)'s Standard Offer Service (Price to Compare) is now 13.27¢/kWh (from 12.92¢) — about 2.7% higher, effective June 1, 2026 (summer rate; 14.77¢ from Oct 1).
For a typical 700 kWh home, that's roughly $2.45 more a month (estimate — your bill depends on your usage).
The driver is the PJM capacity market, where the price spiked from $28.92 to $269.92/MW-day (about 830%).
Exelon reported about $2.5 billion in 2024 profit — but not from this supply charge (it's a pass-through). See the Pepco (Maryland) Report Card →

Source: Maryland PSC. Rates reset on a schedule — confirm the current figure before relying on it.

What's actually driving it

Think of the PJM capacity market as a retainer fee. Every year the regional grid operator pays power plants to promise they'll be available on the worst-demand days — the January cold snap, the August heat wave — even if they sit idle the rest of the time. You're not paying for electricity here; you're paying to keep the plants on call. That retainer spiked, and it flows onto the supply line of your bill.

The price went from $28.92/MW-day to $269.92 (about 830%), peaked at $333.44 in December 2025, and the July 2026 auction cleared at $325 — the 3rd consecutive auction pinned at the FERC-approved cap, while the region fell 6,831 MW short of its reliability requirement. Why? Electricity demand is rising fast — led by data centers, plus electrification and economic growth. Older power plants are retiring faster than new ones can connect to the grid. Source: PJM Interconnection — 2028/2029 Base Residual Auction results (July 14, 2026).

What's already decided for Pepco (Maryland) bills — the three dates that matter

· Today: your current rate carries the July 2025 auction's costs ($329.17/MW-day) — the increase that took effect June 1, 2026 (summer rate; 14.77¢ from Oct 1).
· Around June 2027: the December 2025 auction — the most expensive in PJM history ($333.44) — flows into the next reset. Expect another step up, not relief.
· Around June 2028: the July 2026 auction ($325, at the cap again) keeps costs at essentially the maximum through May 2029.

Exact bill impacts depend on each reset's full supply procurement — these auction prices are the locked-in capacity component. PROJECTION beyond the current confirmed rate.

Will bills go down? The plain-English answer →

Is Pepco (Maryland) pocketing this?

This lands on the supply (generation) part of your bill, which on a default/standard rate is a pass-through — your utility buys the power and bills it through with no markup. The utility's own profit lives in the separate delivery (distribution) charge, set in a rate case.

Where the utility's profit does live: Pepco's Maryland distribution case (Case 9702) is the separate delivery-charge request. That's the part worth scrutinizing — and the part you can comment on at the commission before it's approved.

What you can actually do

Check usage vs. rate. A higher rate and a hot month stack up. Pull your kWh from last month and compare it to the same month last year — it tells you how much is the rate and how much is the weather.
Check whether you're overpaying on supply. If a third-party supplier is charging more than Pepco (Maryland)'s Standard Offer Service (Price to Compare), that's a fixable overcharge — but switching rarely beats a capacity-driven default rate, so compare honestly first. Run the free, private audit → Should you shop in Maryland? → How to use the Maryland OPC shopping guide, Maryland's official comparison tool →
If the bill is more than you can cover, there's real help — assistance programs, payment plans, and your shutoff protections. Bill help in Maryland →

The fuller picture on Pepco (Maryland)

A rate increase is one number. Here's the context most coverage skips: in 2024, Pepco (Maryland) disconnected about 2.3 households per 100 customers for nonpayment. Its parent, Exelon, cleared about $2.5 billion in 2024.

See the full Pepco (Maryland) Report Card → Compare every utility on rates, reliability, disconnections and profit →

Common questions

How much is the Pepco (Maryland) rate increase?: Pepco (Maryland)'s Standard Offer Service (Price to Compare) rose about 2.7% to 13.27¢/kWh (from 12.92¢) effective June 1, 2026 (summer rate; 14.77¢ from Oct 1). That's roughly $2.45 more a month for a typical 700 kWh home.
Why is my Pepco (Maryland) bill going up?: Higher PJM-driven wholesale supply costs lifted Pepco's Maryland generation rate about 12%.
Is Pepco (Maryland) making more profit from this?: Not from the supply increase itself — that's a pass-through with no markup. Exelon (the parent company) reported about $2.5 billion in profit in 2024, but that comes from the delivery/distribution side and its other businesses, not from marking up the power you buy. This lands on the supply (generation) part of your bill, which on a default/standard rate is a pass-through — your utility buys the power and bills it through with no markup. The utility's own profit lives in the separate delivery (distribution) charge, set in a rate case.
Will switching suppliers lower my Pepco (Maryland) bill?: Often not. When the increase is a capacity-driven default rate, a competitive supplier is buying from the same wholesale market — and many switchers end up paying more after a teaser rate resets. Compare any offer against Pepco (Maryland)'s Standard Offer Service (Price to Compare) first, and only take a fixed, full-term rate that genuinely beats it.

Last reviewed June 18, 2026. Default-supply rates reset on a schedule and rate cases move — confirm the current figure with Maryland PSC or your bill before relying on it. Pepco MD's SOS stepped 10.348¢ (Oct 2024) → 12.92¢ (through May 2026) → 13.27¢ summer 2026, per Pepco's posted PTC and MD PSC tariff filings, verified July 2026. This is general consumer information, not legal or financial advice.

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