How to Read Your Pepco Bill
Pepco delivers electricity across Washington, DC and parts of Maryland (including Montgomery and Prince George's counties). Your bill separates a supply (generation) charge for the electricity itself from a delivery (distribution) charge for Pepco's infrastructure, and in most of its territory you can choose a competitive supplier for the supply portion while Pepco keeps handling delivery either way.
Supply vs. delivery
Supply, sometimes labeled generation, is the cost of the electricity itself — the energy produced at a power plant and sold into the grid. Delivery, sometimes labeled distribution, covers the poles, wires, transformers, and ongoing maintenance that carry that electricity to your property. Delivery charges stay with Pepco regardless of who supplies your energy; only the supply charge can move to a different provider where the market allows it.
Standard Offer Service (SOS)
If you haven't chosen a competitive supplier, you're automatically on Standard Offer Service — Pepco's default supply rate. Rather than being set arbitrarily, SOS is determined through a competitive wholesale procurement process overseen by state regulators (the DC Public Service Commission in the District, the Maryland Public Service Commission for Pepco's Maryland territory), which is meant to keep it reasonably reflective of real market conditions for generation.
The smaller line items
Below supply and delivery, a Pepco bill typically includes a flat customer charge for grid connection, a transmission charge tied to federally regulated regional grid access costs, applicable state or district taxes and surcharges, and a Universal Service Fund charge that supports low-income energy assistance programs. Individually modest, but worth checking if a bill looks unexpectedly high in a low-usage month, since fixed charges make up a larger share of the total when usage is down.
Comparing a competitive offer
If you're weighing a competitive supplier's quote, compare its price against your current SOS rate from a recent bill, not an old one — SOS itself moves with wholesale procurement results, so a comparison against a stale number can be misleading either way. Also confirm whether the offer is fixed or variable, and for how long, before enrolling.
Frequently asked questions
What's the difference between supply and delivery on a Pepco bill?
Supply (generation) is the cost of the electricity itself, produced at a power plant and sold into the grid. Delivery (distribution) covers the poles, wires, transformers, and maintenance that carry it to your property, and stays with Pepco no matter which supplier you choose.
What is Standard Offer Service on a Pepco bill?
Standard Offer Service (SOS) is Pepco's default supply rate for customers who haven't chosen a competitive supplier. It's set through a competitive wholesale procurement process overseen by state regulators, not set arbitrarily by Pepco.
Does Pepco serve areas outside Washington, DC?
Yes — Pepco also delivers electricity to parts of Maryland, including Montgomery and Prince George's counties, in addition to the District of Columbia.
See this on your own bill
Upload your Pepco bill and Certo reads it for you — a free bill health score, a plain-English breakdown, and whether your supply rate is competitive.
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