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Washington, D.C. Cannabis Cultivation Energy: Pepco GS Classes, Humid Summers, and the 100 kW GT Transfer

D.C. cultivation centers run entirely on Pepco in a humid urban climate with 1,550 cooling degree days at Reagan National. Lighting sets base load, but dehumidification sets summer peak. Customers under 25 kW bill on GS ND without demand charges; from 25 kW up to 100 kW GS LV and GS 3A bill distribution demand at $10.02/kW in 2025 and $7.89/kW in 2026; hitting 100 kW in two billing months within a year triggers transfer to GT classes at the June billing month.

By Jason Taken, Founder, Jaken Energy

Updated September 11, 2026Last verified: September 11, 2026
Avg. commercial price
23.38 cents/kWh
June 2026
U.S. average
14.19 cents/kWh
June 2026
Energy choice
Retail electric choice (Pepco DC) with Standard Offer Service as the default
All Pepco DC customers, residential through large commercial and industrial, may choose a licensed competitive electricity supplier.
Cooling / heating degree days
1550 / 4030
Annual normals; see climate source

Washington, D.C. figures last verified 2026-09-11. Full citations in the Sources section.

Eight cultivation centers on one tariff book

ABCA lists 8 licensed cultivation centers in the District [abca-other-licensed-businesses]. Every account is Pepco DC [pepco-dc-gs3a-tariff]. There is no utility territory choice within the city, only class placement on the GS/GT ladder.

Urban sites face space constraints for solar and limited expansion without rezoning. Energy strategy centers on class management, supply contracts, and load reduction because D.C. commercial power averaged 23.38 cents/kWh in June 2026 [eia-epm-5-6-a].

Pepco class ladder and the 100 kW cliff

ClassWhen it appliesDelivery demand
GS NDUnder 25 kWNon-demand [pepco-dc-gs3a-tariff]
GS LV / GS 3A25 kW to under 100 kWBilled on max 30-minute demand [pepco-dc-gs3a-tariff]
GT LV / GT 3A / GT 3B100 kW in 2+ months in 12 monthsJune transfer [pepco-dc-gs3a-tariff]

GS 3A distribution demand is $10.02/kW in 2025 and $7.89/kW in 2026, with a $89.41 monthly customer charge [pepco-dc-gs3a-tariff]. GT class $/kW was not pulled for this page; open the full tariff before quoting GT delivery.

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

Lighting and humidity in 1,550 cooling degree days

Reagan National normals are 1,550 cooling degree days and 4,030 heating degree days [noaa-cag-washington-dc]. Summer dew points run upper 60s to low 70s F [noaa-cag-washington-dc]. The dehumidification load page applies directly.

Assume 5,000 sq ft flowering canopy at 35 W/sq ft (assumption): 175 kW lighting. Add 50 kW veg, 160 kW summer HVAC/dehumid peak, 30 kW auxiliary: summer peak about 415 kW if coincident.

That peak is well above 100 kW, so a operating grow likely transfers to GT classes at the next June billing month after two high months [pepco-dc-gs3a-tariff]. Design-stage grows can model staying under 100 kW in two months only if load is genuinely limited, which is rare at this canopy size.

Worked annual cost

LoadAssumptionAnnual kWh
Flower lighting175 kW × 12 h × 365 d766,500
Veg50 kW × 18 h × 365 d328,500
HVAC/dehumid avg85 kW avg744,600
Auxiliary30 kW continuous262,800
Total2,102,400

At 23.38 cents/kWh EIA commercial average: about $491,500/year energy [eia-epm-5-6-a]. At 16.21 cents industrial average: about $340,800 [eia-epm-5-6-a].

Demand example on GS 3A in 2026: assume 415 kW peak × $7.89/kW = $3,274/month distribution demand before energy charges [pepco-dc-gs3a-tariff]. Twelve months at that peak (assumption) adds roughly $39,300 delivery demand alone. See demand charges explained.

Supply: SOS vs. competitive

Large commercial SOS is indexed/laddered under PSC Formal Case No. 1017 procurement, not a single fixed annual price [dc-law-13-107]. Competitive suppliers offer fixed or index products; Pepco pays $0.75/month consolidated billing credit [pepco-dc-gs3a-tariff].

Shop supply via the switching guide. Delivery remains Pepco regardless.

Solar and DCSEU

D.C. SRECs under the RPS can improve project economics for roof or canopy solar [doee-solar-initiatives]. DCSEU business rebates cover lighting, HVAC, and custom measures with pre-approval [dcseu-business-rebates]. The on-site solar page covers sizing tradeoffs.

Compare Maryland cultivation on Pepco Maryland (separate tariff). The D.C. rate page holds benchmarks.

Medical licensing and load growth

All commercial cultivation is licensed as medical under ABCA rules even though self-certification broadened retail access [abca-other-licensed-businesses] [dc-code-7-1671-02]. Energy planning should assume continued retail-driven demand for biomass without waiting for a separate adult-use tariff class that Congress has blocked [dc-initiative-71-qa].

GT class economics

When two summer months exceed 100 kW, the June transfer to GT LV, GT 3A, or GT 3B changes both delivery and large-commercial SOS treatment [pepco-dc-gs3a-tariff]. GT per-kW charges were not opened for this page; pull the GT tariff sheets before modeling a multi-year budget. Some operators intentionally size to stay below 100 kW in two months; others accept GT because primary voltage savings dominate. Run both scenarios against actual equipment schedules.

Interval data for supplier negotiations

Request Pepco interval data before signing a multi-year fixed contract [pepco-dc-gs3a-tariff]. D.C. suppliers price PJM capacity pass-through from peak load contribution. A single July afternoon drives a year-long capacity tag. The interval data page explains what to export.

SREC revenue as offset

On-site solar at urban cultivation centers may be limited by roof area, but canopy structures and parking lot solar can qualify for D.C. SRECs under the RPS [doee-solar-initiatives]. SREC revenue is market-dependent; do not bake SREC prices into supply benchmarks as if they were fixed. Pair SREC expectations with DCSEU pre-approval for hardware rebates [dcseu-business-rebates].

Water-cooled vs. air-cooled HVAC in D.C.

Urban cultivation sites sometimes use water-cooled chillers with cooling towers despite space constraints. Towers add water treatment operating cost but can lower electric kW per ton versus air-cooled machines in 1,550 cooling degree day summers [noaa-cag-washington-dc]. Model both capex and peak kW, not only kWh, because GS and GT classes bill delivery demand on peak [pepco-dc-gs3a-tariff].

Commissioning months and supplier start dates

New cultivation centers energize months before canopy fills. If supplier contracts start too early, fixed supply premiums apply during sub-scale load. Align contract start to meter reads once flowering rooms hit design load, or use index supply during commissioning per the fixed vs. index page.

Eight cultivation centers and urban infill

ABCA lists 8 licensed cultivation centers [abca-other-licensed-businesses]. Urban industrial zones limit roof space for solar but may offer primary GS 3A service [pepco-dc-gs3a-tariff]. Reagan National normals are 1,550 cooling degree days and 4,030 heating degree days [noaa-cag-washington-dc]. Cooling and dehumidification dominate sealed room economics [noaa-cag-washington-dc]. See HVAC sizing for grow rooms.

GT transfer planning at 100 kW

Customers reaching 100 kW maximum demand in two or more billing months within twelve consecutive months transfer to GT LV, GT 3A, or GT 3B at the next June billing month [pepco-dc-gs3a-tariff]. Size lighting and HVAC to stay under, or well over, that threshold deliberately [pepco-dc-gs3a-tariff]. Large commercial SOS is procured on an indexed basis under Rider SOS [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 [abca-other-licensed-businesses]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pepco-dc-gs3a-tariff]. 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 [dcseu-business-rebates]. 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 [pepco-dc-gs3a-tariff]. 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 [dcseu-business-rebates]. 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 [pepco-dc-gs3a-tariff]. 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 [dcseu-business-rebates]. 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 [pepco-dc-gs3a-tariff]. 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 [dcseu-business-rebates]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Demand metering kWh triggers

Pepco demand meters activate 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]. Veg rooms can trip winter kWh thresholds before flower rooms energize [pepco-dc-gs3a-tariff].

Compare with other states

Frequently asked questions

How many cultivation centers operate in D.C.?

ABCA lists 8 licensed cultivation centers on its other licensed businesses page. Nine businesses hold both cultivation and manufacturer licenses, so some processing load shares a meter with cultivation.

What Pepco class applies to a typical D.C. indoor grow?

Most indoor centers exceed 25 kW and bill on GS LV or GS 3A with demand metering. Schedule GS 3A carries a $10.02/kW distribution demand charge in 2025 and $7.89/kW in 2026 plus a $89.41 monthly customer charge on the tariff sheet effective January 1, 2025.

What triggers transfer to GT classes?

Any customer whose maximum demand reaches 100 kW in two or more billing months within twelve consecutive months transfers to GT LV, GT 3A, or GT 3B effective with the June billing month.

Why is D.C. cultivation energy cost higher than Maryland?

EIA's June 2026 commercial average is 23.38 cents/kWh in D.C. versus 16.84 cents in Maryland. Pepco D.C. delivery rates and urban service costs drive part of the gap; supply choice still helps on the generation line.

Can rooftop solar offset grow load in D.C.?

Urban cultivation centers with roof or canopy space can install solar and earn D.C. SRECs under the Renewable Portfolio Standard. DCSEU may offer rebates for qualifying measures. Confirm structural and zoning constraints before sizing an array.

When does demand metering start on a small grow?

Pepco installs demand metering when maximum demand reaches 25 kW in any month, when use exceeds 6,000 kWh in two consecutive winter months, or when use exceeds 7,500 kWh in one summer month.

About the author
Jaken Energy

Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.

Sources

Inline citations in this article, such as [eia-epm-5-6-a], refer to the entries below. Links open the primary source in a new tab.

  1. [eia-epm-5-6-a]Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, June 2026 and June 2025U.S. Energy Information Administration. Accessed 2026-09-11.
  2. [abca-other-licensed-businesses]Other Licensed Medical Cannabis Businesses (cultivation centers, manufacturers, couriers, testing laboratories)DC Alcoholic Beverage and Cannabis Administration. Accessed 2026-09-11.
  3. [pepco-dc-gs3a-tariff]Pepco District of Columbia Electric Tariff, P.S.C. of D.C. No. 1, Schedule GS 3A (General Service - Primary Service), Nineteenth Revised Page R-6.4, effective January 1, 2025Potomac Electric Power Company. Accessed 2026-09-11.
  4. [noaa-cag-washington-dc]NCEI U.S. Climate Normals 1991-2020, annual heating and cooling degree day normals for Washington Reagan National Airport (station USW00013743), via the NCEI Access Data ServiceNOAA National Centers for Environmental Information. Accessed 2026-09-11.
  5. [dcseu-business-rebates]Business Energy RebatesDC Sustainable Energy Utility. Accessed 2026-09-11.
  6. [doee-solar-initiatives]Solar Initiatives (Renewable Portfolio Standard, SRECs, Solar for All)DC Department of Energy and Environment. Accessed 2026-09-11.
  7. [dc-law-13-107]D.C. Law 13-107. Retail Electric Competition and Consumer Protection Act of 1999 (effective May 9, 2000)Council of the District of Columbia, D.C. Law Library. Accessed 2026-09-11.
  8. [dc-code-7-1671-02]D.C. Code 7-1671.02. Use of medical cannabis (including self-certification by adults 21 and older)Council of the District of Columbia, D.C. Law Library. Accessed 2026-09-11.
  9. [dc-initiative-71-qa]Initiative 71 and DC's Marijuana Laws: Questions and AnswersExecutive Office of the Mayor, District of Columbia. Accessed 2026-09-11.