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Washington, D.C. Cannabis Dispensary Energy: GS ND Retail Load and Supply Choice on Pepco

D.C. has roughly 65 to 70 operating medical cannabis retailers on Pepco, most peaking under 25 kW on GS ND where delivery is energy-based rather than demand-based. At 23.38 cents per kWh commercial average, supply is a large share of a small bill, and competitive supply plus the $0.75 monthly consolidated billing credit can still matter. Self-certification expanded foot traffic and HVAC runtime without changing the tariff.

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.

Retail load in a high-rate, single-utility city

ABCA lists 68 physical medical cannabis retailers across eight wards plus 3 internet-only retailers [abca-find-retailer]. Every storefront meter is Pepco [pepco-dc-gs3a-tariff]. Self-certification under D.C. Code 7-1671.02 increased accessible customer volume without a new license category [dc-code-7-1671-02].

The dispensary retail energy costs page describes typical loads. D.C. adds GS ND vs. GS demand classes and a commercial average 65 percent above the U.S. norm [eia-epm-5-6-a].

Pepco classes for retail

ClassTypical retail fitBilling
GS NDUnder 25 kW peakEnergy-based delivery [pepco-dc-gs3a-tariff]
GS LV / GS 3A25 kW to under 100 kW$7.89/kW distribution demand in 2026 on GS 3A [pepco-dc-gs3a-tariff]

Demand metering triggers at 25 kW, 6,000 kWh in two consecutive winter months, or 7,500 kWh in one summer month [pepco-dc-gs3a-tariff]. Urban dispensaries with long hours and heavy AC often hit the kWh triggers even when kW peak looks modest.

Worked example: ward retail store

Assume 2,400 sq ft, 20 kW summer peak, 125,000 kWh/year:

ItemCalculation
All-in at EIA average125,000 × 23.38 cents = $29,225 [eia-epm-5-6-a]
Supply savings at 2 cents/kWh (assumption)$2,500/year

On GS ND, delivery is mostly per-kWh; supply choice is the main lever. Compare Rider SOS supply charge to supplier offers on the switching guide.

Humid summers and door load

Reagan National averages 1,550 cooling degree days [noaa-cag-washington-dc]. Retail HVAC runs hard June through September. Customer door traffic adds latent load. August kWh often exceeds winter months even with shorter daylight.

Multi-store operators

Operators with several ward locations face the same Pepco tariff but different lease structures. Standardize account names, compare supply across stores in one bid, and track which locations approach 25 kW. See multi-site D.C. energy.

Efficiency

DCSEU prescriptive rebates for LED and HVAC require pre-approval [dcseu-business-rebates]. Reduced kWh lowers supply cost; avoiding the 25 kW trigger prevents demand charges.

Compare Maryland dispensary on Pepco Maryland (different tariff). The D.C. rate page holds EIA and GS 3A figures.

Ward-level real estate and meter access

Retailers span all eight wards plus internet-only licenses [abca-find-retailer]. Ward siting affects lease structure: ground-floor retail in mixed-use buildings often has landlord utility accounts. Verify meter access before franchise agreements commit to a supply term. Self-certification increased foot traffic without adding a new license category, which lengthens HVAC runtime during evening hours [dc-code-7-1671-02].

kWh triggers on GS ND accounts

Pepco demand metering triggers at 25 kW, 6,000 kWh in two consecutive winter months, or 7,500 kWh in one summer month [pepco-dc-gs3a-tariff]. High-hour stores can hit the kWh trigger before kW peak looks large. Once demand-metered on GS 3A, the 2026 distribution demand charge is $7.89/kW [pepco-dc-gs3a-tariff]. A store that jumps from GS ND to GS 3A mid-year should re-bid supply because the bill structure changed.

Portfolio of small stores

Operators with ten GS ND locations at 125,000 kWh each use 1.25 million kWh annually (assumption). At 23.38 cents/kWh EIA average, that is about $292,000/year [eia-epm-5-6-a]. Supply savings of 1.5 cents/kWh yield roughly $18,750 (assumption). Consolidated supplier billing earns $0.75/month per account from Pepco, about $90/year across ten stores [pepco-dc-gs3a-tariff].

Security and compliance load

Medical retailers maintain security systems required by ABCA rules [abca-find-retailer]. DVR and camera load is small but continuous. Backup power for security may add a generator or UPS maintenance line item outside Pepco kWh but still part of facility energy cost planning. The backup generators page covers standby power choices.

Efficiency path

DCSEU prescriptive rebates require pre-approval before purchase [dcseu-business-rebates]. LED retrofit reduces heat gain in 1,550 cooling degree day summers at Reagan National [noaa-cag-washington-dc]. Lower kWh reduces supply cost on GS ND where delivery is energy-weighted.

Internet-only and delivery retail

ABCA lists three internet-only retailers alongside 68 physical stores [abca-find-retailer]. Fulfillment operations may use more conveyor and cold storage load per square foot than ward storefronts. Check whether fulfillment meters are GS ND or crossed into GS 3A on kWh triggers [pepco-dc-gs3a-tariff].

Lease pass-through clauses

Landlords in mixed-use buildings sometimes pass utility costs through CAM charges. Switching supply changes the generation line, not total kWh. Confirm CAM reconciliation language allows supplier billing formats you choose.

Comparison to national dispensary FAQ benchmarks

The typical dispensary bill FAQ discusses national patterns. D.C. runs well above those patterns on supply price because of the 23.38 cents/kWh EIA commercial average [eia-epm-5-6-a]. Local benchmarking from Pepco bills beats national rules of thumb.

Employee comfort vs. energy

Extended hours after self-certification expanded access can push HVAC setpoints and fan schedules [dc-code-7-1671-02]. Operational policies affect kWh as much as equipment spec. Document HVAC schedules if disputing a unusually high summer bill with facilities staff.

Ward siting and Pepco feeder diversity

All wards share Pepco DC tariffs, but feeder reliability and transformer age vary by neighborhood [pepco-dc-gs3a-tariff]. Energy procurement does not fix outage risk; it fixes supply price. Still, stores planning battery backup for security should coordinate with supply contracts so backup circuits are clear in lease exhibits.

Payment processing and supplier bills

If AP uses separate vendor records for Pepco delivery and supplier supply, train staff to expect two documents when not on consolidated billing [pepco-dc-gs3a-tariff]. Misfiled supplier invoices look like unpaid utility bills in quick audits.

Sixty-eight retailers and self-certification load

ABCA's retailer directory lists 68 physical stores plus 3 internet-only retailers [abca-find-retailer]. Self-certification under D.C. Code 7-1671.02 expanded access without a new license category [dc-code-7-1671-02]. GS ND serves accounts under 25 kW without demand metering [pepco-dc-gs3a-tariff]. Demand metering triggers at 25 kW in any month or high kWh thresholds in winter or summer [pepco-dc-gs3a-tariff]. Pepco pays a $0.75 monthly billing credit for consolidated supplier billing [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-find-retailer]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [dc-code-7-1671-02]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pepco-dc-gs3a-tariff]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [noaa-cag-washington-dc]. 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-find-retailer]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [dc-code-7-1671-02]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pepco-dc-gs3a-tariff]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [noaa-cag-washington-dc]. 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-find-retailer]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [dc-code-7-1671-02]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pepco-dc-gs3a-tariff]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [noaa-cag-washington-dc]. 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-find-retailer]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [dc-code-7-1671-02]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pepco-dc-gs3a-tariff]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [noaa-cag-washington-dc]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Ward-level siting and load diversity

ABCA lists retailers across all eight wards [abca-find-retailer]. Ward 1 and Ward 2 storefronts may share GS ND schedules under 25 kW while Ward 5 backup kitchens approach GS LV demand [pepco-dc-gs3a-tariff]. Benchmark supply per account, not per brand [eia-epm-5-6-a].

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-find-retailer]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [dc-code-7-1671-02]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pepco-dc-gs3a-tariff]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [noaa-cag-washington-dc]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].

Compare with other states

Frequently asked questions

How many dispensaries operate in D.C.?

ABCA's directory lists 68 physical retailers plus 3 internet-only retailers. Active operating counts vary month to month; treat the market as approximately 65 to 70 stores.

Do most D.C. dispensaries pay demand charges?

Many peak under 25 kW on GS ND and pay non-demand delivery. Stores with heavy HVAC, kitchen service, or backup load that exceed 25 kW in any month move to GS LV or GS 3A demand billing.

How did self-certification affect retail energy use?

D.C. Code 7-1671.02 allows adults 21 and older to self-certify medical use without a practitioner recommendation, expanding customer volume and operating hours pressure on HVAC and lighting within the medical license framework.

Is supply choice worth it for a small D.C. store?

At 23.38 cents/kWh commercial average, even 120,000 kWh/year is about $28,000 all-in. Saving 2 cents/kWh on supply is roughly $2,400 annually. Pepco pays a $0.75 monthly credit for consolidated supplier billing.

Can a retailer in a leased ward rowhouse switch suppliers?

Only if the Pepco account is in the retailer's name. Landlord-held meters require landlord enrollment.

Are there rebates for retail LED or HVAC?

DCSEU business rebates cover lighting, HVAC, and custom measures with pre-approval before the fiscal-year deadline.

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-find-retailer]Find a Medical Cannabis RetailerDC Alcoholic Beverage and Cannabis Administration. Accessed 2026-09-11.
  3. [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.
  4. [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.
  5. [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.
  6. [dcseu-business-rebates]Business Energy RebatesDC Sustainable Energy Utility. Accessed 2026-09-11.