Energy costs are rising across Washington, DC and Maryland and customers deserve clear, honest answers about why.

At Pepco, we hear every day from families and small businesses who are frustrated and concerned. But too often, the conversation stops short of explaining what’s actually happening and that doesn’t serve the people we’re here to support.

What’s Really Behind Higher Bills

The largest driver of higher energy bills right now is the cost of electricity supply—not delivery.

That distinction matters because Pepco does not generate electricity and we do not set supply prices or profit from them.

Electricity is purchased from power generators through a competitive market and passed directly to customers without markup.

So what’s driving those supply costs up?

• Power plants are retiring faster than new ones are coming online
• Electricity demand is growing rapidly
• The grid is constrained, limiting access to lower-cost energy

The result is simple: less supply, more demand, higher prices.

What We Control and What We’re Doing About It

We don’t control supply prices. But we are accountable for everything we do control and we’re acting.

Through The Exelon Promise, Pepco and our parent company, Exelon, are providing real support to customers right now:

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

We are also implementing limited‑income discount programs approved by regulators to reduce bills for customers who need it most.

These are not abstract commitments. They are real actions delivering real relief.

What Needs to Change and Why We’re Engaged

Short‑term relief is critical, but it will not solve the underlying problem.

If we want lower energy costs over time, the region needs more energy supply.

That’s why Pepco is actively engaged with policymakers in Maryland and Washington, DC—working to advance solutions that:

• Increase energy supply
• Strengthen grid reliability
• Put downward pressure on long‑term costs

That includes exploring policies that allow utilities to help build new, affordable energy resources with strong public oversight.

Independent analysis shows these types of solutions could save customers billions of dollars across the region.

Doing nothing isn’t a neutral option. It guarantees higher costs and increased reliability risks.

Growth Shouldn’t Come at Customers’ Expense

Our region is experiencing unprecedented growth in energy demand, including from data centers and other large users.

We support that growth. But we are equally clear about this: Residential customers should not subsidize it.

That’s why we are:

• Strengthening requirements so large users pay their fair share
• Putting protections in place to prevent costs from being shifted onto households
• Planning grid investments responsibly to maintain reliability

We can support economic development and protect customers, but only if policy keeps pace with reality.

Our Commitment

At Pepco, we are focused on what matters:

• Delivering safe, reliable service
• Supporting customers with meaningful, immediate relief
• Driving long‑term solutions that address the root causes of rising costs

We will continue to show up, speak clearly, and advocate for policies that put customers first. That’s our responsibility, and we take it seriously.