How much is the Pepco (Maryland) rate increase?

Pepco (Maryland)'s Standard Offer Service (Price to Compare) rose about 12% to 10.348¢/kWh effective October 1, 2024.

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 10.348¢/kWh — about 12% higher, effective October 1, 2024.
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%), and the latest auction cleared even higher at $329.17 — the cap. 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 — 2026/2027 Base Residual Auction results (July 2025).

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 12% to 10.348¢/kWh effective October 1, 2024.
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's summer-2025 Maryland reset moved again; we quote the confirmed Oct-2024 generation figure and flag the newer reset as pending verification. This is general consumer information, not legal or financial advice.

RateWatchdog is independent. We take no supplier commissions and never enroll or switch anyone. See every utility's rate change →