District residents may see a 12 percent rate hike in their electric bills this summer, Pepco officials announced this week.
The increase will be the third in as many years and will raise the average monthly bill to more than $87.
The increase, which covers Pepco’s supply costs, comes ahead of a possible distribution rate increase of about 8 percent that would raise residential bills higher in September.
Both rate increases are pending the approval of the D.C. Public Service Commission.
Last year, Maryland customers saw a similar double whammy with a supply rate increase of 3.9 percent and a distribution increase of nearly 40 percent.
Market energy prices determine supply rates and the cost of delivering electricity to homes determines distribution rates.
Electric bills have remained a hot topic in the Washington region since 2000 when the industry was deregulated.
Distribution prices held steady at 1998 levels for some time, but in 2005, when a rate cap imposed by Maryland was lifted, rates increased.
A similar cap, which is related to the contract terms of Pepco’s 2002 merger with Delmarva Power and Atlantic City Electric, is set to lift in the District in August.
Pepco offered more than 500,000 customers in Montgomery and Prince George’s Counties a deferred payment plan to offset the increases, but only 3 percent signed up.
Pepco serves about 235,000 customers in the District.
