Washington DC Commercial Electricity & Natural Gas

Washington DC Commercial Energy Market

Washington DC commercial electricity averaged about 23.26¢/kWh in April 2026 (EIA) — roughly 72% above the U.S. average of 13.51¢ — while commercial natural gas averaged about $14.36 per Mcf, also well above the national average. The District has an active retail choice market for both electricity and gas: businesses shop competitive licensed suppliers while Pepco (electricity) and Washington Gas handle delivery. With rates this high, competitive procurement is a major cost lever. Compare DC in our electricity rates by state table.

The PJM Capacity Squeeze

Washington DC is part of PJM Interconnection, where the 2027/2028 capacity auction cleared at the record $333.44/MW-day. Those capacity costs pass through to DC commercial bills and contribute to the District's well-above-average rates. Locking a fixed competitive supply rate hedges the exposure. See our PJM capacity auction analysis, capacity charges on your bill, and why bills rose in 2026.

How DC Energy Choice Works

Pepco delivers your electricity and Washington Gas delivers your gas, and both handle outages, while you choose a competitive licensed supplier for the supply portion. If you don't shop, you pay the utility's Standard Offer Service (electricity) or default gas supply, which pass through PJM capacity and wholesale costs. A competitive fixed rate can lock in below a rising default. See how electricity deregulation works and delivery vs. supply charges.

How to Lower Your DC Energy Costs

• Shop supply and lock a fixed rate — at 23¢/kWh, competitive bids deliver large dollar savings. See comparing supplier offers and switching suppliers step by step.
• Hedge PJM capacity with a 24-36 month term. See choosing contract length and the 2027 forecast.
• Attack demand charges with the demand charge calculator.
• Lock gas before winter. See the Winter 2026-2027 gas outlook.

Frequently Asked Questions

What is the average commercial electricity rate in Washington DC? About 23.26¢/kWh (EIA, April 2026) — roughly 72% above the U.S. average, driven largely by PJM capacity costs and high delivery charges.

Can DC businesses choose their energy supplier? Yes. Commercial customers shop competitive licensed suppliers for both electricity and natural gas supply, while Pepco and Washington Gas continue delivery and outage response.

Why are Washington DC electricity prices so high? Primarily PJM capacity costs — the 2027/2028 auction cleared at a record $333.44/MW-day — plus high delivery charges. A competitive fixed rate hedges the capacity portion.

Get a free Washington DC commercial rate review. Contact us or call 833-264-7776.