A D.C. Council committee last week approved Ward 6 Councilmember Charles Allen's GRID Act, a sweeping package meant to rein in rising electricity and natural gas bills — but Pepco is warning that some of the very reforms meant to help residents could end up raising costs and triggering more frequent power outages.
The Committee on Transportation and the Environment signed off on the bill Wednesday, November 4, clearing it for full Council consideration, according to Charles Allen's Ward 6 office. Allen's office estimates the bill could save District residents more than $52 million each year once its provisions are implemented, though as WJLA reports, those savings are projections tied to regulatory decisions and the legislation's final implementation, not guaranteed reductions on anyone's bill.
Allen has cited figures showing nearly one in four D.C. households are behind on their utility bills, with average overdue balances approaching $800, the station's report notes. He has said the legislation will provide utility relief and lower rates, even as he acknowledged that councilmembers are continuing discussions about utility concerns raised during the process.
What the Bill Would Actually Change
Formally known as the Guiding Renewable Interconnection and Distribution Amendment Act of 2026, the GRID Act would generally cap prices charged by third-party residential energy suppliers at 110% of the standard service rate, with exceptions carved out for qualifying renewable products and certain regulator-approved offerings. Customers would also be able to cancel those supplier contracts at any time without early termination penalties, per the same account.
The bill would expand the Public Service Commission from three members to five, adding expertise in renewable energy, grid modernization and consumer protection, according to Allen's office. It would also require the commission to conduct utility audits every three years and freeze approval of any new multi-year rate plan for 18 months.
On the oversight side, utilities would lose the ability to recover certain lobbying, political activity, private aircraft and industry association expenses through customer rates, the bill's backers say. Utilities seeking rate increases would also have to submit a budget-constrained alternative for regulators to compare against their requests, and Pepco and Washington Gas would need to provide detailed information on proposed infrastructure projects, their costs, expected benefits and alternatives.
Solar Access and a New Virtual Power Plant
The legislation would expand solar access through clearer connection deadlines and cost protections, limiting unexpected interconnection charges to generally no more than 20% above the initial estimate, subject to exceptions. It would also ease the way for renters to install qualifying portable solar devices under new safety requirements, including legalizing small plug-in balcony solar panels, per Allen's office.
For broader context on that solar push, Utah was the first state to legalize this type of plug-in solar, according to Greater Greater Washington, which also reported that Pepco's average solar installation timeline in D.C. ran 77 days in 2025. The outlet separately found that D.C. electricity prices have risen more than 93% in just five years.
The GRID Act also proposes a Virtual Power Plant program that would let participants earn payments for using home batteries, smart thermostats and electric vehicles to help manage electricity demand. Pepco region president Amber Perry has said virtual power plants could help customers lower their overall bills, per WJLA's report, and the utility is pushing for additional provisions supporting utility-owned community solar and battery storage, particularly for low- and moderate-income households.
Pepco's Pushback on Rate Formulas
Despite backing several pieces of the bill, Pepco has warned that some proposed reforms could increase costs and lead to more power outages. Perry has said the bill as written would raise customer costs and reduce reliability, the station reported.
At issue is how the bill would change the way utilities earn returns on investments. Regulators would consider a benchmark tied to the current 10-year U.S. Treasury bond rate plus two percentage points, or an alternative benchmark intended to produce similar customer savings — though the bill would not automatically set a fixed limit on utility profits, per the same report. Perry has warned that cutting authorized returns too far could make it harder for Pepco to attract investors and borrow at competitive rates, projecting that higher financing costs could delay or cancel infrastructure projects, cost jobs, and lead to more frequent or longer outages.
Pepco wants changes to the proposed return-on-equity benchmark and to restrictions on forecasting future investments, the station's account notes. The dispute over how utility costs get calculated isn't new in D.C.: 51st.news has reported that Pepco's own calculations in one case differed from those of the Apartment and Office Building Association by $49 million, and that the Public Service Commission has approved two Pepco rate increases over the five years the outlet examined.
What Regulators Would Weigh Going Forward
Under the bill, regulators would also be required to consider how certain rate increases affect overdue balances, nonpayment disconnections and participation in energy-assistance programs. That kind of tracking has precedent: a report from the Office of the People's Counsel for the District of Columbia describes how some states direct regulated utilities to collect disconnection and arrearage data specifically to inform decisions on bill-payment options and affordability programs.
None of this means lower bills are imminent. The GRID Act would not necessarily produce immediate changes for residents even if enacted, since major portions of the bill could not take effect until their fiscal effects are included in an approved District budget and financial plan. The legislation still needs two full Council approvals before it would go to the mayor, and if approved, it would then face congressional review, according to WJLA.
