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PSC To Hold "Emergency" Hearing On Generation Costs (Default Service), Consider Ways To "Mitigate" Cost Increases

May 15, 2026

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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com

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The District of Columbia PSC will hold a Legislative-Style Hearing on June 3, "to discuss key drivers and possible solutions to the recent increases in the 'generation' portion of a residential customer’s bill," with PSC Commissioner Richard Beverly in a memo describing the hearing as, "an (emergency) public hearing".

The PSC said that, in 2020, "generation" accounted for approximately 50% of an average residential bill. As of January 2026, generation increased to roughly 58% of an average residential bill

"This hearing will explore the causes of those increases and also seek possible solutions to mitigate further increases," the PSC said

Among other topics, the hearing will address, "potential structural modifications to the utility's SOS procurement auction and laddering framework".

Other topics for discussion include:

• capacity auction prices

• bilateral contracting

• power purchase agreements

• data center demand growth

• reduced supply due to generation retirements

• interconnection reform

• legislative mandates

• community renewable energy facilities

• other possible reforms

The PSC will accept pre-filed statements by May 29

Commissioner Beverly did not oppose a hearing on generation costs but said, "I think we should give the parties and the public enough time to meaningfully participate."

"The hearing is stuck into an affordability process that we have yet to chart and it’s unclear from the notice what we intend to do with the testimony we receive or what (if any) detriment there is to parties who don’t participate in this hearing. My concern here is that a party makes an unsupported statement in the hearing that is unrebutted by anybody else and then finds its way into a subsequent order as something tantamount to a finding of fact," Beverly said

"On top of that, the topics are so dense that each one could be the subject of its own hearing or working group," Beverly said

Beverly said that the topics should also include load forecasting, non-wires alternatives, and other demand side strategies that have the potential to reduce generation prices.

"All of these topics are interrelated to some extent and, to me, giving the parties and public a week and a half to sort through this is simply inadequate," Beverly said

The PSC's hearing was noticed in the capacity market investigation case (FC 1183) and the SOS case (FC 1017), as well as the PSC's energy affordability case (FC 1186)

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