Pepco DC Multiyear Rate Plan Vacated: FC1176 and the October 2026 Hearing

The court vacated Pepco's multiyear plan

The DC Court of Appeals vacated Pepco's multiyear rate plan in proceeding FC1176 [dcpsc-fc1176]. The vacatur sent delivery rates back to the DC Public Service Commission for new review. Evidentiary hearings were scheduled for October 13 through 14, 2026 [dcpsc-fc1176].

For DC cannabis operators, FC1176 creates uncertainty on the delivery side of the bill. Standard Offer Service supply rates are set through separate auctions [dcpsc-sos-rates]. Delivery and supply proceed on independent tracks.

Multiyear plan vs single rate case

Pepco's multiyear rate plan was designed to set delivery revenue across multiple years in one proceeding [dcpsc-fc1176]. The court vacated that framework, meaning:

Outcome	Effect on customers
Plan vacated [dcpsc-fc1176]	Prior multiyear rate structure invalidated
PSC rehearing Oct 2026 [dcpsc-fc1176]	New delivery rates under review
Interim rates possible	Bills may change before final order

Cultivators budgeting multi-year pro formas should not assume the vacated plan's rate trajectory holds [dcpsc-fc1176].

Delivery vs supply: two dockets, one bill

Bill section	Proceeding	Shoppable?
Delivery demand (kW)	FC1176 [dcpsc-fc1176]	No
Delivery energy (kWh)	FC1176 [dcpsc-fc1176]	No
SOS supply	May 2026 auction [dcpsc-sos-rates]	Yes (third-party)
Customer charges	FC1176 [dcpsc-fc1176]	No

A dispensary that switched to a competitive supplier in 2025 still faces FC1176 delivery outcomes. A cultivator on SOS default faces both the July 2026 SOS reset and potential FC1176 delivery changes [dcpsc-sos-rates].

Why cultivators feel delivery cases acutely

Indoor cultivation facilities draw high peak demand. Demand charges on the Pepco delivery tariff multiply peak kW by approved rates [dcpsc-fc1176].

Assume a 350 kW DC cultivation facility:

Line	Pre-vacatur illustration	Potential post-hearing change
Demand (350 kW x $22/kW)	$7,700/month	TBD per FC1176 order
Delivery energy	~$14,000/month	TBD
Supply (SOS or ESCO)	~$43,000/month	Separate from FC1176

A 10% delivery increase on $21,700 monthly delivery adds $2,170 per month. Supply shopping at 1.5 cents per kWh savings on 360,000 kWh saves $5,400 per month [dcpsc-sos-rates].

Worked example: planning under uncertainty

Assume a 20,000 sq ft indoor grow at 280 kW peak and 336,000 kWh monthly use. Illustration only.

Current bill (illustration):

Component	Monthly
Supply (SOS at 12¢)	$40,320
Delivery demand	$6,160
Delivery energy	$13,440
Total	~$59,920

If FC1176 adds 8% to delivery [dcpsc-fc1176]:

Delivery subtotal rises from $19,600 to $21,168 (+$1,568/month). Supply unchanged unless you shop [dcpsc-sos-rates].

If you switch supply to 10.5¢ fixed:

Supply drops to $35,280 (-$5,040/month). Net savings even with higher delivery: ~$3,472/month vs original.

EIA reported DC average commercial price at 16.47 cents per kWh all-in [eia-epm-5-6-a].

October 2026 hearings: what to watch

The October 13 through 14, 2026 evidentiary hearings [dcpsc-fc1176] cover:

• Revised delivery revenue requirements
• Rate allocation across customer classes
• Potential retroactive or interim rate adjustments
• Timeline for new rates to take effect

Written comments and hearing transcripts appear on the FC1176 docket page [dcpsc-fc1176]. Operators can submit comments describing cultivation load profiles and demand charge impacts.

Coordinating supply strategy with FC1176

Do not wait for FC1176 resolution to shop supply [dcpsc-sos-rates]. Supply savings are available now regardless of delivery case outcome. Do track FC1176 for delivery budget updates.

Action	Timing
Shop supply vs SOS	Now [dcpsc-sos-rates]
Monitor FC1176 docket	Through final order [dcpsc-fc1176]
Update pro forma delivery assumptions	After PSC order
Review demand management	Ongoing

DC cannabis licensing context

DC cannabis business licensing operates under ABRA rules separate from utility proceedings. FC1176 does not change licensing requirements but affects operating cost assumptions for cultivation facilities in the District.

See Washington DC commercial electricity rates and DC cultivation facility energy.

Retroactive adjustments: what to watch

When courts vacate rate plans, the PSC sometimes orders refunds or surcharges to true up customer bills to authorized levels [dcpsc-fc1176]. Cultivators should retain monthly bills from the multiyear plan period. If the PSC orders retroactive changes, your accounting team needs meter-level detail to reconcile.

Interim rates during rehearing

Between vacatur and final order, Pepco may operate on interim delivery rates approved by the PSC [dcpsc-fc1176]. Interim rates can differ from both the vacated plan and the final outcome. Check your bill header each month during FC1176 proceedings for rate schedule code changes.

Combining FC1176 with SOS shopping

Delivery uncertainty from FC1176 makes supply shopping more valuable, not less [dcpsc-sos-rates]. Lock supply on a fixed ESCO contract while delivery gets re-litigated. You control one stack completely and reduce total bill volatility even if delivery rises [dcpsc-fc1176].

Testimony from commercial customers

The October 13 through 14, 2026 hearings accept public comment [dcpsc-fc1176]. Cultivators can describe demand charge impacts on high-load facilities. Generic residential complaints carry less weight than specific C&I load data with peak kW and monthly delivery dollars stated in comment letters filed on the FC1176 docket [dcpsc-fc1176]. Include your Pepco rate schedule code and account number if filing formal testimony.

What vacatur means for your next bill

When the DC Court of Appeals vacated Pepco's multiyear rate plan in FC1176, interim rates and refund procedures depended on the Commission's compliance orders [dcpsc-fc1176]. Cultivators should watch for true-up credits or surcharges on bills during the remand period. Do not assume the vacated plan's escalators still apply.

The evidentiary hearing scheduled for October 13-14, 2026 may set new base delivery levels. Budget conservatively until a final order publishes.

Office of People's Counsel and commercial intervenors

The DC Office of People's Counsel participates in FC1176 on behalf of ratepayers [dcpsc-fc1176]. Commercial customers may align comments with OPC filings or intervene directly with counsel [dcpsc-fc1176]. Cultivation facilities with high demand charges share interests with other C&I customers seeking lower demand rate allocation in the final order.

Review OPC briefs on the FC1176 docket page for proposed delivery rate alternatives to Pepco's original multiyear plan [dcpsc-fc1176].

Interim rates between vacatur and final order

After the Court of Appeals vacated the multiyear plan, Pepco may bill under interim delivery rates approved by the PSC pending rehearing [dcpsc-fc1176]. Interim rates can differ from both the vacated plan and the eventual final order. Compare bill headers monthly for rate schedule code or delivery rate changes [dcpsc-fc1176].

Retain PDF copies of every bill from the vacated plan period. Retroactive true-ups may require reconciling months billed under invalidated rates [dcpsc-fc1176].

Maryland Pepco vs DC Pepco: separate proceedings

Pepco serves both Maryland and Washington DC under different regulatory jurisdictions [dcpsc-fc1176]. FC1176 affects DC meters only. A multi-state operator with a Maryland cultivation facility and a DC dispensary must track separate rate cases [dcpsc-sos-rates]. Maryland SOS and delivery proceedings do not govern DC bills.

DC supply shopping follows the July 2026 SOS reset on a separate calendar from FC1176 delivery outcomes [dcpsc-sos-rates]. Shop supply now. Update delivery assumptions when the FC1176 final order publishes [dcpsc-fc1176].

Pro forma modeling under vacated rates

Financial models built on the vacated multiyear plan need revision [dcpsc-fc1176]. Replace assumed delivery escalation with a flat delivery budget until the PSC publishes final rates [dcpsc-fc1176]. Add a sensitivity row showing plus ten and plus twenty percent delivery to bracket outcomes [eia-epm-5-6-a].

Cultivation vs dispensary FC1176 exposure

Indoor cultivation facilities with 300 kW or more peak pay larger absolute delivery dollars than dispensaries under any FC1176 outcome [dcpsc-fc1176]. Dispensaries feel FC1176 mainly on kWh delivery and customer charges [dcpsc-sos-rates]. When filing comments, state your facility type and peak kW so the PSC can allocate commercial class changes appropriately [dcpsc-fc1176].

The vacated multiyear plan created accounting uncertainty for operators who budgeted multi-year delivery escalation [dcpsc-fc1176]. Replace forward delivery assumptions with a range until the PSC publishes final rates after the October 2026 hearings [dcpsc-fc1176]. Supply shopping through July SOS rates remains independent of FC1176 timing [dcpsc-sos-rates].

Cannabis operators in the District should separate regulatory risk on delivery from procurement decisions on supply [dcpsc-fc1176]. A fixed ESCO contract signed in 2026 caps supply through 2027 or 2028 while FC1176 resolves delivery [dcpsc-sos-rates]. That split reduces total bill volatility even if delivery rises when the final order lands [eia-epm-5-6-a].

Bookmark the FC1176 docket page and check weekly during the rehearing period for interim orders, settlement notices, and hearing transcripts [dcpsc-fc1176]. Delivery assumptions in your operating budget should update within one billing cycle of any approved rate change [dcpsc-fc1176]. See Washington DC cultivation facility energy for typical Pepco load profiles used in commercial rate comments [eia-epm-5-6-a].

Indoor grows with demand above 250 kW should model plus five and plus ten percent delivery scenarios in pro formas until the FC1176 final order publishes a definitive revenue requirement [dcpsc-fc1176].