Electricity Competition in DC

May 9, 2011

As I wrote yesterday about the lack of residential energy choice participation by rate payers in DC I alluded to the reasons why the market has not yet taken off as it has in Maryland. Particularly when a resident or a business owner can actually buy 100% wind power at a lower cost per kwh than Pepco is currently offering. Part of the challenge is education for the consumers. Trying to get someone on the phone at Pepco to explain energy choice to you in not an easy task, perhaps not even Pepco's job. The DC Public Service Commission has great information on their web site, but the commission is overwhelmed with work and despite the great people working at the commission, there is only so much you can get done in a day.

The other advantage Maryland has over DC is something called Purchase of Receivables or POR. POR is simply the utility (Pepco DC) taking over the financial responsibility of collecting and owning the accounts that go bad. Part of the reasoning behind this POR program is the fact that third party suppliers can not shut down your electricity if you don't pay your bill, but the regulated utility can. This POR process does eliminate the majority of the risk from the supplier stand point, not all of the risk. On the consumer side, POR allows rate payers who have has credit issues for what ever reason beefit from lower rates and perhaps help the consumer on his or her way back to financial solvency.

Since POR was introduced in Maryland the number of residential third party suppliers has more than tripled and the benefactors of this are the rate payers who are enjoying the benefits of energy choice. Perhaps it is time for DC to roll out POR, Pepco Maryland is doing it! Meanwhile if you are a DC resident with a Pepco bill, grab your staement and click here to get lower rates for your electricity supply! My Lower Rate

Next up for discussion is how the business community in DC can benefit from energy choice.


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As businesses start the budgeting process for 2025, electricity supply costs across the PJM Interconnection region are rising, driven largely by an increase in capacity charges. Capacity charges, which ensure enough power is available during peak demand, have seen a sharp uptick, leading to higher rates, especially in the DC and Maryland areas. Both residential and commercial customers are facing these increases, with supply prices potentially rising by as much as 20%, significantly impacting operational costs. However, there is still time to mitigate the coming increase in supply rates. From simple energy efficiency upgrades, such as LED lighting or smart thermostats, to longer-term projects like solar panel installations and power walls, businesses have a range of options to reduce their energy consumption and control costs. These strategies can offer significant savings over time and position companies for more sustainable energy use. We encourage you to talk with business owners and decision-makers in your network about these rising costs. This is a great time to introduce them to Electric Advisors, where we can help them navigate these changes and find ways to reduce their energy expenses. Your referrals can play a crucial role in helping those in your network become more competitive. Best,
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