How Electricity Deregulation Works in Washington, DC
Washington, DC allows customers to choose a competitive electric supplier instead of Pepco's default Standard Offer Service (SOS). Pepco continues to deliver power and handle outages either way — switching only changes who supplies the energy and what you pay for it.
Pepco keeps delivering power regardless
Pepco is the District's electric distribution utility, responsible for the wires, meters, and outage response citywide. That role doesn't change based on who supplies your electricity — every customer's delivery service comes from Pepco no matter which supplier is listed on their bill.
Standard Offer Service: the default rate
If you haven't chosen a third-party supplier, you're automatically served under Standard Offer Service. Rather than setting this price on its own, Pepco procures the underlying power through competitive wholesale auctions, awarding contracts to the lowest qualified bidders — the intent, according to the DC Public Service Commission, is that SOS reflects real market conditions for generation rather than an arbitrary utility markup.
Choosing a competitive supplier
Customers who want to shop can select a licensed third-party supplier instead of staying on SOS. Pepco continues billing and handling delivery either way, so switching doesn't mean a second bill or a new utility relationship — only the supply line item and its price source change.
Is switching worth it?
Because SOS is itself set through a competitive auction process rather than a flat regulated markup, it's a genuinely reasonable benchmark to compare supplier offers against, rather than an artificially high "default" rate designed to be beaten. As with any deregulated market, the most reliable check before switching is comparing a specific supplier's quoted price against your current SOS rate from a recent bill, and confirming whether an offer is fixed or variable and for how long.
Frequently asked questions
Who delivers electricity in Washington, DC?
Pepco delivers electricity across the District and keeps that role regardless of which supplier a customer chooses for the energy itself.
What is Standard Offer Service in DC?
Standard Offer Service (SOS) is Pepco's default electricity supply option for customers who haven't chosen a third-party supplier. Pepco procures the power behind it through competitive wholesale auctions rather than setting the price unilaterally.
Do I have to choose a third-party supplier in DC?
No. Standard Offer Service is a fully valid default option, and switching to a competitive supplier is optional, not required.
See this on your own bill
Upload your electric bill and Certo reads it for you — a free bill health score, a plain-English breakdown, and whether your current supply rate is competitive.
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