Energy costs are top of mind for families and businesses across Washington, DC and central Maryland and we hear that every day.

At Pepco, our responsibility is clear: deliver safe, reliable energy while doing everything in our control to help customers manage rising costs. That work has never been more important – or more challenging – but it’s a responsibility we take seriously.

Why Energy Costs Are Rising

Customers deserve a clear, honest explanation of what’s driving higher bills.

Across our region, electricity supply costs are increasing due to a combination of factors:

• Power plant retirements outpacing the development of new generating resources
• Growing demand for electricity, including from data centers and increased electrification
• A constrained transmission grid that limits how energy can move across the region

These pressures are increasing the cost of electricity supply which makes up the largest portion of customer bills. Utilities like Pepco do not control and do not profit from these costs.

But customers don’t experience their bills in parts. That’s why we’re focused on solutions.

Taking Action Now to Support Customers

Even as supply costs rise, we are using every tool available to support customers and help them stay connected.

Through The Exelon Promise, we are delivering immediate, tangible relief, including:

• $6.5 million in direct bill support through our Customer Relief Fund
• Connecting 42,000 customers to $23.1 million in energy assistance in 2025
• More than 34,000 active payment arrangements helping customers manage balances over time

We are also implementing new customer support programs, including limited‑income discount programs approved by regulators to better align energy costs with customers’ ability to pay.

This work matters, but we know short‑term relief alone isn’t enough.

Advancing Real Solutions with Policymakers

Addressing rising energy costs requires action beyond any one utility.

That’s why we’re actively engaged with policymakers in Maryland and Washington, DC—working to advance practical, long‑term solutions that strengthen energy supply, improve reliability, and help put downward pressure on costs over time.

This includes:

• Supporting policies that increase energy supply and competition
• Advocating for strong oversight to protect customers
• Exploring approaches that allow utilities to help build new, affordable energy resources under public oversight

Independent analysis has shown that expanding the role utilities can play in building new energy supply could save customers billions of dollars across the region while improving reliability.

Customers deserve a system that works, not just today, but for the future.

Managing Growth Responsibly

Our region is growing, and that growth brings opportunity. But it must be managed responsibly.

Large energy users, including data centers, are increasing demand on the system. We support economic growth, but not at the expense of everyday customers.

That’s why we are:

• Strengthening policies to ensure large users pay their fair share
• Building safeguards so infrastructure investments don’t shift costs onto residential customers
• Planning proactively so the grid can support growth without compromising reliability or affordability

Economic development and customer protection must go hand in hand. We are committed to both.

Our Commitment

These are complex challenges – but our approach is simple.

We will:

• Be transparent about what’s driving costs
• Deliver meaningful support to customers who need it most
• Advocate for solutions that address the root causes of rising energy prices
• Continue putting customers at the center of every decision we make

That’s what it means to be a trusted partner in the communities we serve and it’s the standard we hold ourselves to every day.