Prior to 2001, electric and natural gas services were provided by Pepco and Washington Gas Light Company (WGL). In January 2001, the Public Service Commission (PSC) gave approval to begin full-scale electricity and natural gas choice programs for DC residential consumers. The PSC‘s decision enabled consumers to independently choose or “shop” for their electricity or natural gas energy supplier. Their energy service would still be delivered by Pepco or WGL.
There are three components of the utility rate paid by consumers: generation, transmission, and distribution services. Generation costs are unregulated by the PSC and reflect the cost of producing electricity plus profit. Transmission service fees include the cost to transport electricity from the power plants, where it is produced, to the District of Columbia. Distribution fees are regulated by the PSC and include the costs to maintain reliability and to deliver electricity within the District to a customer’s home. TPS providers offer varying rates for the supply charges, but not for distribution since the electricity or natural gas is still delivered through Pepco or Washington Gas lines.
A complete list of TPS companies licensed to conduct business in DC can be found on the Public Service Commission website at www.dcpsc.org