Pepco is one of Maryland’s premier utility providers, serving around 582,000 Marylanders. Similar to another premier provider, BGE, Pepco has begun rolling out plans to increase utility rates for some customers. This is likely in response to industry changes, new federal and state mandates for clean energy production, and rising market costs.
For Maryland homeowners, the question is: Will my power bills increase, and if so, how much? This article explains how to read and comprehend a Pepco bill to help homeowners understand their rate increase.
What is Included in a Pepco Power Bill?
Though this information differs slightly between Maryland and Washington D.C. customers, Pepco’s power bills generally begin with the “Electric Bill Summary” on Page One. This displays the homeowner’s previous balance, payments received, and current balance as of the notice date.
This is where you can also view a breakdown of the “Supply” and “Delivery” charges (sometimes called “Distribution” charges) in the form of a circle graph. This distinction is essential for comprehending Pepco’s rate increases (more on that below).
On Page Two, your bill will display “Details of your Electric Charges,” including your meter number, energy type, start date, and total use to date. This information is important to expedite customer service if you contact Pepco about rate increases.
Below this information is a breakdown of your Delivery charges, which add up to the total, including distribution services, franchise taxes, MD environmental surcharges, and more. This is where you can view the exact breakdown of the total energy cost. Page Three displays the same information for your Supply charges.
Delivery vs. Supply Charges
Delivery and Supply charges will be listed separately on your Pepco bill. It’s important to know the difference to understand your rate increases.
Delivery charges refer to the cost of running the utility, such as operational costs and infrastructure maintenance. These costs include the “rate base,” which is charged to customers to cover the provider’s expenses. These charges naturally increase over time to cover operational costs, including tax changes.
Supply charges, sometimes called “commodity charges,” are what most people think of when discussing power bills. The Supply charge is the cost of the electricity you used during that payment period, which changes based on the utility market’s prices.
This distinction between Supply and Delivery charges is significant when reviewing your bill and comprehending price increases. For example, if your Delivery charges increase (Page Two), this means Pepco invested in their infrastructure to keep up with regulations and provide reliable rates. If the Supply charges increase (Page Three), this indicates a higher cost for energy purchases, determined by market performance and supply/demand.
Recent events demonstrate the importance of realizing the difference. While Pepco’s Maryland customers will see a 1% increase in their bills in 2025, Washington D.C. customers will see a 6% increase. In Maryland, this increase is an additional Supply charge, indicating changes in Maryland’s energy market. In D.C., the increase is a Delivery charge, indicating investments in utility infrastructure.
This increase will result in $1.18 more per month for average Maryland households and $6.46 per month for average D.C. households.
How to Lower Your Energy Bill
Many Marylanders are concerned about their planned utility increases in 2025 and beyond. While thermostat control may work in the summer, many homeowners seek more permanent options for lower energy costs.
Solar panel installations can help you avoid rising costs in a few primary ways:
- Solar panels generate power more efficiently, and arrays with batteries installed can help homes resist power outages, leading to potential savings.
- Solar panels provide tax benefits offered by the IRS, such as the Investment Tax Credit (ITC), which compensates homeowners for switching to cleaner energy production and taking pressure off local power grids.
- Maryland offers state-sponsored financial incentives to switch to solar, such as the Maryland Solar Access Program and Renewable Energy Credit.
- Solar panels can raise the value of your home by enticing new homeowners to invest in cleaner and more reliable energy sources.
As Pepco and other providers enforce their utility increases, these benefits will become more enticing for many Maryland homeowners. Since solar panel costs continue to rise, now is the perfect time to invest in a solar array for your home.
Contact an Experienced Solar Energy Provider to Help Lower Your Bills
Many Maryland homeowners are concerned about the news that Pepco, BGE, and other utility providers will be raising their prices starting in 2025. These changes indicate the importance of carefully reading and comprehending your power bills using this guide and the samples provided by your utility company.
Contact Energy Select today for professional help comprehending your utility bills. Our experienced team can review your energy usage history and help you future-proof your home with state-of-the-art solar panel installations before your energy costs get too high.