Nathan Park: It’s time to kick Pepco out of DC politics

Washington, DC, may be our nation’s capital, but that has not ensured true democracy for DC residents. It’s not uncommon to see locals sporting “Taxation Without Representation” paraphernalia in reference to the federal fight for DC statehood. Yet right beneath our noses there is also a local culprit undercutting the District’s democracy: Pepco.

Pepco is the investor-owned electric utility that owns and operates most of the DC electric grid. In theory, the DC Public Service Commission (PSC) regulates Pepco to ensure high-quality service in exchange for the right to serve DC businesses and residents. Yet many residents find the quality of service leaves much to be desired. Based on a survey by the American Customer Satisfaction Index group, Business Insider in 2011 declared Pepco the “Most Hated Company in America,” and over the years, hundreds of thousands of Pepco customers have experienced extended power outages. Just this summer, some 39,000 residents lost power on one day alone, leaving families and businesses in the dark until 2 a.m. the following morning.

Despite Pepco’s lack of popularity, the company exerts outsized influence over DC politics. In 2016, Pepco forced through a controversial merger with Exelon, which local residents, community organizations, DC Council members and the Maryland attorney general opposed. Nonetheless, the PSC eventually approved the merger (as did its Maryland counterpart), making Exelon the biggest utility in the country. An earlier merger proposal included a rate freeze promised by Mayor Muriel Bowser, but the finalized deal provided no such financial cushion for ratepayers. Pepco then went on to raise electricity rates. The approval also came at the same time as Pepco and the District government settled a pair of multimillion-dollar land deals, which prompted calls for an ethics investigation.

More recently, Pepco fought to weaken the CleanEnergy DC Omnibus Amendment Act of 2018, which the DC Council approved in December. Prior to final passage, Pepco successfully lobbied to remove language requiring the utility to enter into long-term contracts with renewable energy companies. Such contracts would have reduced the District’s emissions by 710,000 tons annually and likely would have saved ratepayers money. Pepco also made a last-ditch amendment effort — thankfully unsuccessful — to allow it to pass along the cost of administering energy efficiency programs to its customers. And now, Pepco is seeking approval from the PSC to raise its customer charge by 44% and rates by 5% for three consecutive years, resulting in a 15% rate increase by 2022. Approval of the multiyear scheme would relieve Pepco from arguing to the PSC each year why the company should be able to raise rates.

Now, three years after the merger, a coalition of DC residents and community organizations is fighting back. With primary elections approaching in June 2020, these groups are asking DC Council candidates to take the #NoPepcoPledge and reject campaign contributions from Pepco, Exelon and fossil fuel companies. Through its actions, Pepco continually reminds us that it is indeed an investor-owned utility, pushing rate hikes and other schemes that improve its bottom line at the expense of the District’s low-income residents, who are hit the hardest. By electing leaders to the DC Council who are not beholden to Pepco’s influence, we can fight Pepco’s greed and build a renewable energy system that works for the residents of the District, not corporate shareholders. 

The #NoPepcoPledge also calls upon candidates to support an independent study to explore alternative utility models, such as community choice aggregation (CCA) and municipalization — an ask akin to previous efforts Pepco has blocked. Alternative models like these take shareholders out of the picture when deciding how to provide energy to the District. This means profits made from utility payments can be reinvested into our communities as rate cuts, infrastructure upgrades and more. Many counties in California have already implemented CCAs as a way for local governments to procure more renewable energy; meanwhile, cities such as San Francisco are looking to municipalize their electric utilities, wherein the local government buys the electric grid outright and forms a new public utility. Either of these options could allow DC to achieve its renewable energy goals and save ratepayers money while handing residents more control over their energy.

The #NoPepcoPledge aims to shine a light on Pepco’s corrupt influence on the District’s politics and push our elected leaders to consider new models for our energy system. It’s time to take back our power. Learn more and join the fight at nopepco.com! 

Nathan Park is an organizer with 350 DC, a local volunteer-run organization fighting for climate justice in the District and leading the #NoPepcoPledge.

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