Pepco Files Proposal with Maryland Public Service Commission to Strengthen Grid and Support Customers

For Immediate Release

Pepco Files Proposal with Maryland Public Service Commission to Strengthen Grid and Support Customers

Company proposes balanced investment approach to maintain strong reliability, support clean energy adoption, and expand customer support programs

Requested rates will not immediately impact Maryland customers

Today, Pepco submitted a proposal to the Maryland Public Service Commission (PSC) outlining key energy infrastructure investments planned for 2026. The filing supports the company's commitment to delivering safe, reliable, and resilient service while further preparing the local grid for future clean energy demands. This is Pepco's first rate application in more than two years. This filing begins a 10-month process overseen by the PSC, which must be completed prior to any changes to customer bills.

As Maryland's energy needs grow, Pepco's plan includes hundreds of targeted projects to modernize aging infrastructure and improve reliability across Montgomery and Prince George's Counties. The filing focuses on the following key pillars:

Customer Value

Pepco understands customers are still facing higher-than-normal inflation rates, increased cost of living expenses, challenges from recent federal layoffs, the ongoing government shutdown, and other factors that impact affordability. Amid these challenges, this proposal strikes a balance between investments in the local energy grid and customer cost impacts.

The company is planning to keep its long-term Operating and Maintenance costs at or below inflation rates, which helps mitigate customer bill impacts. Pepco also offers a suite of programs and resources that help manage rising energy costs, increase awareness of energy usage, and provide direct assistance to those who need it most.

The company's Customer Relief Fund provides up to $300 in relief for eligible customers. Nearly $550,000 in funds have been awarded to date. Pepco's partnership with Single Stop also helps connect customers to additional assistance benefits for housing, food, healthcare, and other critical resources and its Mobile Assistance Van is meeting customers in the community to provide bill reviews, payment plan assistance, energy program applications, and education on energy efficiency.

Reliability

Through targeted investments, Pepco is building a grid that minimizes the impact of outages, restores power faster to customers when interruptions occur, and is better equipped to meet the rising demand for electricity as this region continues to grow. This includes upgrading substations to support growing energy needs, replacing older power lines nearing end of life, installing smart, automated technologies that help isolate damage and restore service faster, and other critical investments to support safe and reliable service for customers at home and at work.

The investments proposed in this filing will help Pepco continue to provide the strong reliable service customers rely on.

Clean Energy Goals

Pepco is committed to helping Maryland achieve its clean energy and climate objectives. Investments and planned efforts are designed to maintain a reliable, resilient, and modern grid as more customers electrify their homes and vehicles and adopt clean energy technologies like solar and battery storage. The company's expanded Green Power Connection team is also helping streamline processes to make it easier for customers to go solar.

Investments will also support a more resilient grid ready to withstand more extreme weather and enable Pepco crews to respond faster in the event of a major storm or emergent event.

Customer Benefits:

These investments are carefully considered to help understand the expected benefit to customers, overall cost impact, and overall impact to the broader community. Various analyses were conducted to help determine the overall expected benefits of the proposed investments.

The Brattle Group, an independent economics and energy consulting firm, completed an analysis of 15 proposed projects in this filing and found they are projected to generate nearly $262 million in benefits from avoided outage costs, avoided restoration costs, and avoided operations and maintenance expenses. A completed economic benefits study also shows the proposed capital investment will support more than 3,000 jobs and contribute $374 million to Maryland's GDP.

There are no immediate bill impacts to customers as a result of this filing. If the plan is approved by the PSC as filed, it would result in an estimated monthly increase of $11.73 for the typical Maryland residential electric customer's bill. A decision from the PSC is expected in August 2026 and any associated rate changes would go in effect around that same time.

In the coming months, customers, community advocates, environmental groups, and any other interested parties will be able to provide their feedback through public hearings and an open comment

period overseen by the PSC. For additional information about this proposal and updates on the regulatory process, visit pepco.com/Rates.

Supporting Our Customers During the Federal Shutdown and All Year Long

This proposal comes at a time when many customers in Montgomery and Prince George's counties are facing uncertainty and financial challenges due to the ongoing federal government shutdown. Pepco recognizes the significant impact this has on the community and is committed to supporting customers through these difficult circumstances. Impacted federal workers are encouraged to contact Pepco's Customer Care team at 202-833-7500 for information on expanded bill payment support options.

Pepco also offers additional tools and resources for customers to help manage costs all year long. To learn more, customers can visit pepco.com/billsupport.

To learn more about Pepco, visit The Source, our online newsroom. Find additional information by visiting pepco.com, on Facebook at facebook.com/PepcoConnect and on X at X.com/PepcoConnect. Pepco's mobile app is available at pepco.com/MobileApp.