Washington, D.C. Cannabis Energy: Pepco Choice, Medical Licensing, and the Highest Mid-Atlantic Rates

How the D.C. cannabis market is structured

Initiative 71 (effective February 26, 2015) legalized possession of up to two ounces, home cultivation of up to six plants, and gifting for adults 21 and older, but sales remain a crime and a congressional appropriations rider blocks a tax-and-regulate adult-use market [dc-initiative-71-qa]. All commercial licensing runs through the medical cannabis program administered by the Alcoholic Beverage and Cannabis Administration [abca-other-licensed-businesses].

The Medical Cannabis Amendment Act of 2022 allows adults 21 and older to self-certify medical use without a practitioner recommendation under D.C. Code 7-1671.02 [dc-code-7-1671-02]. That policy expanded retail access within the medical framework and drove growth in licensed retailers and processing load [dc-code-7-1671-02].

ABCA lists 8 licensed cultivation centers and 10 licensed manufacturers on its other licensed businesses page, with nine businesses holding both licenses [abca-other-licensed-businesses]. The retailer directory lists 68 physical stores across eight wards plus 3 internet-only retailers [abca-find-retailer]. Treat retailer count as approximately 65 to 70 operating stores because monthly active counts vary [abca-find-retailer].

Energy buying implications:

• Urban infill. Cultivation and manufacturing sit in industrial zones with limited roof space and high Pepco delivery costs.
• Medical-only licensing. No separate adult-use tier, but load is growing with self-certification-driven retail expansion [dc-code-7-1671-02].
• Single utility. Every account is Pepco; there is no territory split within the District [pepco-dc-gs3a-tariff].

How electricity choice works in D.C.

D.C. Law 13-107, effective May 9, 2000, unbundled Pepco supply from delivery and gave every customer class the right to competitive supply [dc-law-13-107]. The Public Service Commission licenses suppliers under D.C. Code 34-1504 and related regulations [dc-code-34-1504].

Pepco remains the sole distribution utility and Standard Offer Service provider [pepco-dc-gs3a-tariff]. Customers who do not shop receive SOS under Rider SOS. Large commercial SOS is procured on an indexed or laddered basis rather than a single fixed annual price [dc-law-13-107].

Pepco pays a $0.75 per month billing credit to customers who receive a consolidated bill from an alternative supplier [pepco-dc-gs3a-tariff]. Pepco DC is in PJM, so capacity and transmission flow through supplier or SOS charges [pepco-dc-gs3a-tariff].

What commercial power costs in D.C. vs. the U.S.

Sector	D.C., June 2026	U.S. average, June 2026
Commercial	23.38 cents/kWh	14.19 cents/kWh
Industrial	16.21 cents/kWh	not shown in state file

Source: EIA Electric Power Monthly, Table 5.6.A [eia-epm-5-6-a].

D.C. commercial power runs about 65 percent above the national average. Even industrial-class customers pay more than the U.S. commercial average. Supply choice and peak kW management are high-leverage here.

Pepco demand classes (the whole District)

Class	Threshold	Demand billing
GS ND	Under 25 kW	Non-demand [pepco-dc-gs3a-tariff]
GS LV / GS 3A	25 kW to under 100 kW	Demand-metered [pepco-dc-gs3a-tariff]
GT LV / GT 3A / GT 3B	100 kW in 2+ billing months in 12 months	Transferred at June billing month [pepco-dc-gs3a-tariff]

Demand metering triggers at 25 kW in any month, more than 6,000 kWh in two consecutive winter months, or more than 7,500 kWh in one summer month [pepco-dc-gs3a-tariff]. Schedule GS 3A distribution demand charge is $10.02/kW in 2025 and $7.89/kW in 2026 on the tariff sheet effective January 1, 2025 [pepco-dc-gs3a-tariff].

Facility guides: cultivation, manufacturing, dispensary retail, multi-site.

Climate and grow-room load

Reagan National Airport normals are 1,550 cooling degree days and 4,030 heating degree days [noaa-cag-washington-dc]. Cooling and dehumidification dominate sealed cultivation economics. Summer dew points in the upper 60s to low 70s F drive latent load June through September [noaa-cag-washington-dc].

Incentives worth knowing

• DCSEU business rebates. Prescriptive and custom electric savings incentives; pre-approval required before fiscal-year deadline [dcseu-business-rebates].
• D.C. SRECs. On-site solar earns solar renewable energy credits under the District RPS, historically high-value [doee-solar-initiatives].

D.C. quirks that change the advice

Medical market, adult-access behavior. Self-certification expanded the customer base without a new license category [dc-code-7-1671-02]. Retail and processing load grows inside medical rules.

One utility, no territory question. Every facility is Pepco [pepco-dc-gs3a-tariff]. Maryland Pepco accounts use a separate Maryland tariff; do not confuse them.

100 kW GT transfer. Crossing 100 kW in two months moves the account to GT classes at the June billing month [pepco-dc-gs3a-tariff]. Size lighting and HVAC with that threshold in mind.

SREC revenue and rooftop constraints

The District RPS creates high-value SRECs for on-site solar [doee-solar-initiatives]. Cultivation centers with limited roof area may still offset office and veg load [doee-solar-initiatives]. DCSEU prescriptive rebates cover lighting and HVAC with pre-approval required [dcseu-business-rebates]. Initiative 71 blocks regulated adult-use sales; plan energy contracts on medical licensing horizons [dc-initiative-71-qa].

Procurement checklist for Pepco accounts

1. Confirm GS ND vs GS LV vs GS 3A vs GT class on the bill [pepco-dc-gs3a-tariff].
2. Export interval data if demand-metered [pepco-dc-gs3a-tariff].
3. Benchmark against Rider SOS or trailing supplier cost [dc-law-13-107].
4. Request quotes with explicit PJM capacity pass-through language [pepco-dc-gs3a-tariff].
5. Calendar June GT transfer review if peak approached 100 kW in two months [pepco-dc-gs3a-tariff].

Quarterly bill review cadence

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [abca-other-licensed-businesses]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [abca-find-retailer]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [dc-initiative-71-qa]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [dc-code-7-1671-02]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Documentation for audits and lenders

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [abca-other-licensed-businesses]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [abca-find-retailer]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [dc-initiative-71-qa]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [dc-code-7-1671-02]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Board reporting on utility COGS

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [abca-other-licensed-businesses]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [abca-find-retailer]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [dc-initiative-71-qa]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [dc-code-7-1671-02]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Tariff verification before budgeting

Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [abca-other-licensed-businesses]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [abca-find-retailer]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [dc-initiative-71-qa]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [dc-code-7-1671-02]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Where to go next

• How to switch suppliers in D.C.
• D.C. commercial electricity rates
• Maryland hub for Pepco Maryland comparison
• Demand charges explained

D.C. law and tariffs change on PSC orders. Confirm current rules with the PSC or your advisor before signing a contract.

Congressional rider and planning horizon

Initiative 71 and the ongoing congressional appropriations rider mean commercial operators plan inside the medical framework for the foreseeable future [dc-initiative-71-qa]. Energy contracts can still run 24 or 36 months; they are not tied to cannabis statute sunsets. Treat Pepco tariff and PJM capacity cycles as the primary planning horizon, not federal legalization headlines.

Comparing D.C. to adjacent choosable markets

Maryland commercial power averaged 16.84 cents/kWh in June 2026 against 23.38 cents in D.C. [eia-epm-5-6-a]. A operator with a D.C. cultivation center and a Maryland processing site on Pepco Maryland should expect materially different all-in costs even though both sit in PJM. The Maryland hub covers the Maryland side.

ABCA compliance and utility accounts

Keep ABCA business licenses, lease agreements, and Pepco account names aligned [abca-other-licensed-businesses]. Enrollment rejects and insurance audits both care about legal entity consistency. Supply brokers are not cannabis compliance advisors; confirm licensing separately from procurement.