Washington, D.C. Commercial Electricity Rates for Cannabis Facilities: Pepco GS and GT Classes

D.C. vs. the U.S. average

Sector	D.C., June 2026	U.S. average, June 2026	D.C. vs. U.S.
Commercial	23.38 cents/kWh	14.19 cents/kWh	+9.19 cents, about 65 percent higher
Industrial	16.21 cents/kWh	not in state file

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

D.C. cannabis operators should budget from bills, not from the national average. Supply choice addresses the generation line; GS and GT class placement addresses delivery demand.

Pepco commercial class ladder

Class	Threshold	Demand billing	Key 2026 figures (GS 3A sheet)
GS ND	Under 25 kW	Non-demand [pepco-dc-gs3a-tariff]	Energy-based delivery
GS LV / GS 3A	25 kW to under 100 kW	Max 30-minute demand [pepco-dc-gs3a-tariff]	$7.89/kW distribution demand; $89.41/month customer charge [pepco-dc-gs3a-tariff]
GT LV / GT 3A / GT 3B	100 kW in 2+ months in 12 months	June transfer [pepco-dc-gs3a-tariff]	Pull GT tariff for $/kW

Demand metering triggers: 25 kW in any month, 6,000 kWh in two consecutive winter months, or 7,500 kWh in one summer month [pepco-dc-gs3a-tariff].

GS 3A distribution demand was $10.02/kW in 2025 and $7.89/kW in 2026 on the tariff effective January 1, 2025 [pepco-dc-gs3a-tariff]. GT class charges were not reproduced; open the full DC tariff book before quoting GT delivery.

Default supply: Rider SOS

Customers on Standard Offer Service take generation under Rider SOS [dc-law-13-107]. Small accounts receive SOS prices from PSC-supervised procurement. Large commercial SOS is indexed or laddered through PSC Formal Case No. 1017 rather than a single fixed annual price [dc-law-13-107].

Competitive suppliers offer alternatives; Pepco pays $0.75/month for consolidated supplier billing [pepco-dc-gs3a-tariff].

PJM pass-through

Pepco DC is in PJM. Capacity and transmission appear in SOS or supplier charges [pepco-dc-gs3a-tariff]. Cultivation peaks affect capacity tags.

Seasonality

Reagan National normals: 1,550 cooling degree days, 4,030 heating degree days [noaa-cag-washington-dc]. Cultivation and retail peak in humid months when PJM energy prices also rise.

How to read a Pepco D.C. bill

1. Identify GS or GT schedule.
2. Separate delivery (tariff) from Rider SOS or supplier supply.
3. Compute supply cents/kWh benchmark.
4. On demand classes, divide delivery demand charge by billed kW and compare to $7.89/kW for GS 3A in 2026 [pepco-dc-gs3a-tariff].
5. Check whether two months exceeded 100 kW before June billing.

Use the demand charge estimator and state rate comparison. Compare Maryland rates for Pepco Maryland (different tariff).

Verified 2026-09-11. Open current Pepco DC tariff for updates.

Why D.C. cannabis operators feel the premium

Urban delivery infrastructure, Pepco multi-year rate plans, and PJM supply components combine in the EIA 23.38 cents/kWh commercial average [eia-epm-5-6-a]. Industrial customers at 16.21 cents still exceed the national commercial average, so even large GT cultivation cannot rely on industrial averages alone when budgeting.

GS ND retail vs. GT cultivation on one portfolio

Account type	Typical schedule	Primary bill driver
Ward dispensary	GS ND	Supply $/kWh at high D.C. rates [eia-epm-5-6-a]
Cultivation center	GT after 100 kW rule	Delivery $/kW plus indexed SOS [pepco-dc-gs3a-tariff]
Standalone lab	GS 3A	Demand $7.89/kW in 2026 plus batch kWh [pepco-dc-gs3a-tariff]

Comparing Pepco DC to Pepco Maryland

Montgomery County grows on Pepco Maryland use a different tariff book and Maryland PSC SOS rules. A operator with a D.C. cultivation center and a Maryland dispensary must benchmark each account separately. The Maryland rate page holds the Maryland side.

Medical program load trend

Self-certification under D.C. Code 7-1671.02 expanded retail traffic [dc-code-7-1671-02]. Retail kWh growth does not change tariff classes by itself but increases supply spend on GS ND accounts where every kWh buys supply at Rider SOS or supplier rates.

Tools and next steps

Use the state commercial rate comparison to place D.C. against Maryland and Delaware benchmarks. Use the switching guide when supply beats Rider SOS on trailing-twelve-month math.

Billing demand definition on GS 3A

Pepco bills delivery demand on the maximum 30-minute demand in the billing month for GS 3A [pepco-dc-gs3a-tariff]. There is no explicit ratchet on GS 3A in the tariff sheet opened for this page, but the annual GT transfer at 100 kW acts like a structural step change [pepco-dc-gs3a-tariff]. Model June class transfers when budgeting five-year grow expansion.

Customer charge and seasonal energy lines

GS 3A carries an $89.41 monthly customer charge on the tariff effective January 1, 2025, plus seasonal per-kWh distribution energy charges [pepco-dc-gs3a-tariff]. Small changes in kWh move the energy portion; peak kW moves the demand portion. Split them on the bill before blaming the supplier for a higher total.

Industrial average still high

D.C. industrial customers averaged 16.21 cents/kWh in June 2026 [eia-epm-5-6-a]. GT cultivation with strong load factor may approach industrial supply pricing from suppliers even while commercial delivery rates apply. Negotiate on interval data, not on the EIA commercial average alone.

Federal enclave note

The District is not a state for EIA reporting but is listed as its own row in Table 5.6.A [eia-epm-5-6-a]. Compare D.C. to Maryland and Delaware rows in the same table month when updating board slides, not to a generic national cannabis benchmark.

GS 3A demand charge worked example

Assume 350 kW billing demand on Pepco GS 3A primary service (an assumption). Schedule GS 3A distribution demand is $10.02/kW in 2025 and $7.89/kW in 2026 on the tariff sheet effective January 1, 2025 [pepco-dc-gs3a-tariff]. Illustrative monthly distribution demand: 350 kW x $7.89 = about $2,762 before energy and SOS or supplier supply [pepco-dc-gs3a-tariff]. Crossing 100 kW in two billing months moves the account to GT classes at the June billing month [pepco-dc-gs3a-tariff].

D.C. vs U.S. commercial spread

D.C. commercial power averaged 23.38 cents/kWh in June 2026 against 14.19 cents U.S. average, about 65 percent higher [eia-epm-5-6-a]. Industrial averaged 16.21 cents, still above national commercial [eia-epm-5-6-a]. Supply choice and peak kW management are high-leverage on every license type [dc-law-13-107].

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 [pepco-dc-gs3a-tariff]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [dc-law-13-107]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [noaa-cag-washington-dc]. 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 [pepco-dc-gs3a-tariff]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [dc-law-13-107]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [noaa-cag-washington-dc]. 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 [pepco-dc-gs3a-tariff]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [dc-law-13-107]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [noaa-cag-washington-dc]. 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 [pepco-dc-gs3a-tariff]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [dc-law-13-107]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [noaa-cag-washington-dc]. 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].

Consolidated supplier billing credit

Pepco pays a $0.75 per month billing credit when an alternative supplier provides consolidated billing [pepco-dc-gs3a-tariff]. The credit is small relative to total bill but confirms billing format on the account [pepco-dc-gs3a-tariff].