Pepco customers can bring their concerns over a proposed rate hike directly to the state’s utility regulator in the coming weeks.

The Exelon subsidiary, which serves more than 600,000 customers in Montgomery and Prince George’s counties, is seeking state approval to increase the fees it charges to deliver electricity to homes and businesses.

The Maryland Public Service Commission announced Wednesday that it will hold virtual hearings on April 14 and 17 to provide people a chance to comment on the proposal.

Pepco representatives have said the company must bring in more revenue to pay for hundreds of repair and maintenance projects, such as upgrading substations and replacing underground cables, to prevent power disruptions.

With approval from the Public Service Commission, customers would see an average increase of $11.73 in their monthly bills, likely beginning in August. The five-member commission must issue a decision by Aug. 10.

The utility’s recent monthly rate increases have been a few dollars or less; this would be among its largest in the last 10 years.

But ratepayers and their advocates say energy costs are already too high, especially following a brutally cold winter.

“It is hard to make ends meet,” said Conan Matthews, who works in IT and delivers groceries on the side. “There are people that make less than me and, you know, I do what I have to do to try to keep up with all the bills. But it is hard. It is very hard.”

Matthews, 54, said the Pepco bill for his Germantown condo was $222 in March and $312 in February. In March of last year, it was just $154.

Silver Spring resident Cassie Lee is retired, a renter and on a fixed income. Her March utility bill was nearly $105, an amount she said is a tad lower than her other winter bills but still high. She’s worried about the amount soaring to “outrageous” levels, like $150 per month.

“They always tell you to cut off all of your appliances and stuff, and I don’t do that. I mean, that’s just a bit much for me to do, and come home and have to hook it all up again,” said Lee, 77. “But, I mean, it may have to come to that if it gets outrageous.”

Pepco applied in October 2025 to increase its retail distribution rates for customers in Maryland, and the proposal has been moving through the Public Service Commission’s monthslong approval process since then.

“These investments support replacing aging infrastructure, strengthening the system against more frequent severe weather, and ensuring we can continue to deliver safe, reliable service,” Pepco spokesperson Michelle Hook said in a statement.

She said Pepco’s preventive work has paid off, too, claiming that customers have seen a 50% decline in outages over the last decade.

In addition to state and local government support programs, Pepco offers some assistance to ratepayers, including with its Customer Relief Fund, through which low- and moderate-income customers who owe at least $250 can apply for a grant of up to $300 to pay off their balance.

State Del. Marc Korman, a Montgomery County Democrat who chairs the House of Delegates committee that handles energy policy, said several factors are driving up energy costs, not only in Maryland but across the country.

Inflation, he said, has made it more expensive for companies to generate electricity and deliver it to customers. Companies are also raising rates to account for a surge in data center facilities, which require massive amounts of energy to operate.

Plus, Korman said, Pepco regularly goes before the Public Service Commission seeking approval for rate increases.

“There is a lot of stuff on the horizon” that could inflate energy bills further, Korman said. Lawmakers this session are considering a slew of policy changes to keep energy costs in check.

“We want utilities to, frankly, spend more efficiently rather than just spend more,” he said.

It remains to be seen whether state regulators will approve Pepco’s rate hike. The commission’s staff advisers have been skeptical of parts of Pepco’s proposal, including the company’s revenue forecasts.

The Maryland Office of People’s Counsel, an independent state agency that represents residential utility customers before the Public Service Commission, federal regulatory agencies and in court, has called for state regulators to reject Pepco’s proposal.

The office has argued that Pepco’s current distribution rates should be reduced, not raised. Pepco, according to the office, is relying on ratepayers to cover its excessive profit levels.

“If Pepco gets this current rate increase, their rates will have increased by over 130% just since 2016,” said People’s Counsel David Lapp, who leads the office. “That is really, really fast for a utility.”

Hook, though, said Lapp’s claim of a 130% increase is “misleading,” and she pointed out that distribution charges — the portion of an electric bill for which Pepco is solely responsible — have risen 92% since 2016.

Lapp has compared Pepco’s rates with those of Potomac Edison, which serves about 285,000 customers across Maryland, including in western Montgomery County. That company has had just two increases in about 25 years and has rates less than one-third of what Pepco has proposed.

Lapp and his office have taken particular issue with Exelon subsidiaries, including Pepco and Baltimore Gas and Electric Co., which also serve parts of Montgomery and Prince George’s counties, using spending forecasts to set distribution rates.

The office has argued that this model can result in customers covering higher-than-necessary utility spending and lead to faster rate increases.

State lawmakers have considered prohibiting utilities from seeking rate increases based on spending forecasts, but House and Senate leaders are divided over whether to end the practice or study it before deciding.

The Public Service Commission has asked that those interested in attending the hearings email kimberly.schock@maryland.gov by noon on April 10 for the first hearing, and by noon on April 15 for the second. A meeting link will be sent out before each hearing. The commission is also expected to post a recording of the hearings on its YouTube channel.