Overview

In 1999, the D.C. City Council passed the Retail Electric Competition and Consumer Protection Act, allowing the District to transition to a competitive electricity marketplace.

That same year, the D.C. Public Service Commission approved an agreement establishing the cap on all electricity rates after reducing Pepco’s electricity rates 7 percent. It also allowed Pepco to sell most of its generating plants.

Since January 1, 2001, all residential and commercial electricity customers have been free to purchase electricity from a supplier other than Pepco. To date, about 14,000 residential and business customers have switched from Pepco to other suppliers.

The District’s transition to a competitive electricity marketplace began in 1995. Click here for an overview of the major milestones that lead to the creation of customer choice and a competitive market in the District.

In February 2005, the four-year rate cap on electricity rates was lifted. Electricity rates are now based on what it costs in the market to generate electricity. Rates for Residential Aid Discount (RAD) customers, however, did not change and are still based on 1999 rates. The RAD rates will remain the same until February 2007.