PEPCO Delivery Rate Increase Starts This April

Find out about the PEPCO rate increase this April. Learn why they're hiking rates and how it will affect your Maryland utility bills.

April PEPCO Rate Increase

PEPCO will increase its distribution rates for residential customers. Find out when the rate hike hits and how it affects your monthly bills.
Find out how much the PEPCO rate increase will affect your monthly bills. Learn when this residential rate hike kicks in and for how long.

Maryland PEPCO customers should get ready for higher energy bills next month. Because it’s been reported that delivery rates are set to rise starting April 1. While this may concern certain households, it may not be as bad as it sounds. So, let’s talk about the PEPCO delivery rate increase starting this April.

How Much PEPCO Delivery Rate Increase

Every year, PEPCO charges two separate delivery rates. The first rate is for the summer months (June – October) and the second is for the winter (November – May).

But this year on April 1, the summer rate rises to .07992 cents per kilowatt-hour (kWh). And, the winter rate will be set to rise to .03948 cents per kWh. These are small jumps from the previous .07592 cents per kWh and .03751 cents per kWh rates.

According to estimates, the increase will raise average monthly electricity bills by about $2.51. This could, of course, rise or fall depending on your energy usage. Most important, however, is this only affects the distribution portion of your bill. That means that having cheaper electricity generation rates can offset this increase.

Why Delivery Rate Increase

Of course, you might be asking why increase the rate at all. Especially considering how the pandemic has affected Maryland electricity customers.

As it turns out, that’s exactly why it happened.

PEPCO filed their Multi-Year Plan in October 2020. The plan intended to improve the energy grid and push towards the state’s clean energy goals. But it also sought to assist MD in long-term recovery from the effects of the COVID-19 pandemic.

Specifically, this plan allowed delivery rates to stay largely flat and predictable during the program. It also allowed PEPCO to make several improvements and investments in MD. These included workforce development to produce more MD jobs and replacing PEPCO owned streetlights with smart LED technology. Finally, the plan has expanded the PEPCO EVsmart charging network throughout Montgomery County and Prince George’s County.

But while an average customers bill rose $11 during the plan, many were 14% lower than they were in 2011.

How April Rate Increase Affects Customers

The PEPCO MD Multi-Year plan intends to improve the grid and lessen the impact of the pandemic on struggling customers. While customer monthly bills will rise next month, Maryland may be in a better spot than pre-pandemic. Naturally we will keep an eye peeled to see how this shakes up electricity rates.

Meanwhile, you can keep your eyes peeled for the news that affects your bills right here at You can also shop for great plans and find ways to save money on lower electricity rates.

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