AOBA testified before the DC Council on Monday, June 29, about the impact of rising electric costs on District residents, housing providers, businesses, and the broader economy. Speaking for AOBA members, Kevin Carey & Frann Francis, stressed that one key driver within the District’s control is how Pepco’s distribution rates are set.
Why it matters: Pepco’s current multi-year rate plan shifts too much risk from the utility to customers, reduces transparency, increases the cost and complexity of rate cases, and relies heavily on forecasts instead of actual, verifiable costs.
AOBA Actions: AOBA urged the Council to restore a more balanced, evidence-based approach to ratemaking by:
- Sunsetting or significantly limiting multi-year rate plans
- Returning to historic test-year ratemaking based on actual costs
- Requiring stronger cost-benefit and prudence reviews for major utility investments
- Prohibiting customer surcharges tied to the reconciliation of cost or revenue variances
AOBA also called on the Council to support ratepayer relief in the Formal Case No. 1176 remand proceeding by urging the Public Service Commission to:
- Hold a full evidentiary hearing
- Restore rates to pre-January 1, 2025, levels until the Commission issues a lawful new rate order
Finally, AOBA recommended slowing future increases in the District’s Renewable Portfolio Standard requirements to ease pressure on electric supply costs while still advancing long-term decarbonization goals.
The bottom line: AOBA’s message to the Council is clear: electric rates must be more affordable, transparent, and accountable for all District ratepayers. Watch the team’s full testimonies below.
What’s next: AOBA will keep members informed on Council actions and Commission proceedings and can help assess potential bill impacts for your properties.