(202) 727-3071
| The District of Columbia Court of Appeals today vacated the D.C. Public Service Commission’s approval of Pepco’s multi-year rate plan and ordered the Commission to hold a full evidentiary hearing before considering any rate increases. The Court’s decision sends the case back to the Commission after finding that the rate plan was approved without the type of trial-style hearing required when material facts are in dispute. The Office of the People’s Counsel (OPC), which challenged the Commission’s decision, said the ruling reinforces the fundamental principle that utility rate increases must be supported by a complete and transparent evidentiary record. “This morning, the D.C. Court of Appeals delivered a clear message to the Public Service Commission: when utility rates are increased, the process must be as rigorous as the impact is real,” said People’s Counsel Sandra Mattavous-Frye. “The Court’s ruling is a victory for process—and a victory for consumers.” Anytime a regulatory commission is asked to increase utility rates, it is exercising the public trust, Mattavous-Frye said. “That trust cannot be satisfied by paper filings and legislative-style hearings alone,” she said. “It requires a thorough development of the evidentiary record—sworn testimony, transparent data, and the opportunity to test claims through cross-examination. Rate cases are not theoretical exercises. They determine what families pay, what small businesses can afford, and whether District residents are being asked to shoulder costs that have not been proven necessary and prudent.” The Court agreed that the Commission should have conducted a full evidentiary hearing because key components of Pepco’s proposal involved disputed facts affecting the amount customers could ultimately be charged. “The Court recognized what OPC has said all along: when material facts are disputed—like billing determinants, forecasts, and adjustments that can swing bills by millions of dollars—consumers are entitled to a trial-type hearing where the truth can be fully examined,” Mattavous-Frye said. “The Commission must explain its decisions, show its math, and demonstrate why each component of a rate increase is justified.” The ruling also reinforces the role of utility regulation as a safeguard for consumers, not merely an administrative process. “This decision underscores that utility regulation is not a rubber stamp,” Mattavous-Frye said. “It is supposed to be the District’s consumer protection system in action—careful, transparent, and fact-driven—because the stakes for residents and businesses are too high for anything less.” OPC will continue to advocate for rigorous review of utility rate requests to ensure that District residents receive reliable service at just and reasonable rates. “As we have always done, OPC will press for that standard each and every time rates are on the table,” Mattavous-Frye said. “We will insist on a full and fair record, rigorous scrutiny of every adjustment, and outcomes that honor the public trust and protect District ratepayers.” |
| Contact: Doxie McCoy (202) 727-3071 DMcCoy@opc-dc.gov Public Information Officer |