DC Council Committee on Transportation & Environment Budget Oversight Hearing for Public Service Commission - May 11, 2026
DC Council Committee on Transportation & Environment Budget Oversight Hearing for Public Service Commission - May 11, 2026
On Monday, May 11, 2026, at 9:40 a.m., the Council's Committee on Transportation and the Environment, chaired by Ward 6 Councilmember Charles Allen, held a public oversight budget hearing for the Public Service Commission (PSC) in room 412 of the John A. Wilson building and via Zoom. This was the committee's final budget oversight hearing for the FY27 budget. The hearing focused on the PSC's proposed FY27 operating budget of $20.8 million (a 0.2% increase from FY26), funded almost exclusively by special purpose revenue from utility assessments. The committee heard from two public witnesses and then from PSC Chairman Emil Thompson and staff.
Public Comments & Testimony
- Barbara Briggs (Friends Meeting of Washington / Beyond Gas Climate Faith Initiative) testified via Zoom. She expressed full support for the PSC keeping its 90 positions while DOEE loses 34, but argued the PSC must actively manage the transition off fossil fuels. She urged the PSC to immediately end the practice of forcing existing customers to pay for new gas line extensions (as Massachusetts, California, New York, Oregon, Washington State, and Maryland have done). She stated that the PSC's duty is to represent DC residents and that business as usual putting utilities' interests ahead of climate policy is unacceptable.
- Fritz Mulhauser (Ward 6 resident, individual) testified in person. He argued DC is not aggressively engaged in the forums that set electric rates, noting that PSC Chairman Thompson wrote that the PSC controls only 27% of a typical PEPCO bill. He stated DC is not appearing in the FERC docket on data center cost allocation (while Maryland is) and that PJM's CEO recently called the market "structurally broken." He made four formal requests: (1) Direct OPC to intervene in the FERC docket; (2) Direct the PSC to commission a new study of alternative power procurement (a Fixed Resource Requirement analysis); (3) Ask whether OPC is resourced adequately to represent ratepayers; (4) Improve transparency—including automatic enrollment in assistance programs, requiring PSC commissioners with relevant experience, a QR code on bills linking to OPC/PSC rate-driver explanations, and an annual PSC report on rate drivers.
Discussion Items
- Chairman Allen questioned both public witnesses. He agreed on the need for clean energy transition but noted the tough budget climate. He asked about short-term strategies before the PSC and whether the PSC is resourced to take them. Ms. Briggs reiterated ending the line extension allowance and taking the future-of-gas docket seriously. Mr. Mulhauser elaborated on his transparency proposals, including automatic enrollment using SNAP/TANF eligibility as a proxy and the need for OPC to have FERC-experienced economists and attorneys. Chairman Allen noted his own legislation to add 30,000 low-income residents to assistance programs and acknowledged the PSC has recently improved public information on bill costs.
- PSC Chairman Emil Thompson presented the budget. He noted the FY27 proposed budget of $20,865,694 with 93.2 FTEs, a 0.2% increase (mostly for federal pipeline safety grants), and zero local funds. He highlighted a Budget Support Act subtitle—the Enhanced Consumer Protections and Retail Energy Market Act of 2026—which would require the PSC to set price caps on third-party suppliers, eliminate early termination fees, and expand reporting. The PSC requests one additional FTE (an economist) for implementation, to be covered within existing budget.
- Questioning by Chair Allen and Councilmember Robert White covered several topics:
- Budget realignment: Large apparent shifts (e.g., $5.6 million reduction in utility regulation, 31.4 FTEs) were explained as a re-categorization of staff; a crosswalk will be provided.
- Vacancies: Currently 6 vacancies (lowest in Chairman Thompson's tenure); hiring is in progress for most.
- Rate cases: The PEPCO multi-year rate plan (FC 1176) is on remand; hearings now begin October 13, 2026, with post-hearing briefs due October 21; decision expected 60-90 days later. The PSC has ordered rates to remain unchanged for now, subject to adjustment. Chairman Thompson explained that if a refund/credit is ordered, the PSC will direct PEPCO explicitly.
- Third-party supplier subtitle: Chairman Thompson expressed strong support, noting that third-party contracts often lack hedging, causing immediate price spikes. He confirmed the PSC likely lacks authority to set price caps without the BSA (to be researched).
- Pilot projects (Energy Modernization Fund from 2015 Pepco-Exelon merger): Of the $21.5 million required, only about $5 million has been expended in a decade. The geothermal pilot at Barry Farm has steel in the ground; Meadow Greens is delayed by a property transfer. The governance board (volunteer, includes DOEE) develops scopes and evaluates solicitations, but the pace has been slow.
- Consumer complaints: The PSC has 5 consumer services specialists; solar interconnection complaints are escalated to a supervisor. Chairman Allen requested data on complaint volume and solar interconnection issues.
Key Outcomes
- No votes were taken. The hearing record will remain open through May 14, 2026 for written testimony via the council's hearing management system.
- The PSC committed to providing a detailed crosswalk of budget realignments, a side-by-side comparison of current vs. new PEPCO reporting requirements, and a list of governance board members.
- Chairman Allen noted the PSC's request for an additional FTE (economist) for the BSA subtitle, which the PSC says can be absorbed within current budget. The committee will work with the PSC on this.
- Chairman Allen expressed intent to accelerate the pilot projects and to follow up on consumer complaint data.
Meeting Transcript
Good morning, everyone. My name is Charles Allen. I'm the Ward 6 Council member and chair of the Council's Committee on Transportation and the Environment. Today is Monday, May 11, 2026, and we are meeting in room 412 of the John A. Wilson building as well as over the Zoom virtual platform. The time is now 9 40 a.m. and I'm calling to order this public oversight budget hearing of the committee. This is the committee's final budget oversight hearing for the FY27 budget. And today we're going to hear from public and government witnesses for the Public Service Commission. The Public Service Commission, often referred to as the PSC, or simply the Commission, was established to ensure that every public utility doing business within the district provides safe and adequate service, and the charges imposed by utilities are reasonable, just and non-discriminatory. The commission has general supervision of all gas companies and electrical companies and is responsible for reviewing proposed rate increases or other surcharges. Given the role the commission plays an influential role in electric grid modernization, gas pipeline infrastructure and safety in advancement of the district climate policy commitments and environmental preservation goals. The Commission is governed by three commissioners who are appointed by the mayor and then confirmed by the council. The mayor's proposed FY27 operating budget for the Public Service Commission is 20.8 million dollars, which is a nominal increase of 0.2% from the FY26 approved budget. The Commission is funded almost exclusively from special purpose revenue that is generated from an assessment placed on utilities. The PSC does not have a capital budget. While today's hearing is going to focus on our testimony, please note the committee will be accepting written testimony from the public until the close of business on May 14th, 2026, and individuals are encouraged to submit testimony through the council's hearing management system, which can be found on the council's website at Limbs.dc Council.gov backslash hearings. We have a panel of two public witnesses, and then we're going to turn to the commission itself. We have Barbara Briggs, who's a the member in the FMW piece of social concerns, who's joining us online via Zoom, and Fritz Mulhauser, who's a public witness who's here in person. So Mr. Mulhauser, I'll go ahead and pull you up to the table. We're going to move Ms. Briggs onto the Zoom, and it looks like she is there. All right, Miss Briggs, we'll turn to you for your testimony first, then Mr. Mulhauser, and then we'll turn to some questions. Good morning, Councilmember Allen. Sorry not to be able to join you in person today. My name is Barbara Briggs. I am a member of Friends Meeting of Washington and convener of the Beyond Gas Climate Faith Initiative, in which our Quaker meeting is deeply involved. It's obviously truly an awful budget year. But while the proposed FY27 budget would result in the Department of Energy and the Environment losing 34 staff positions, the Public Service Commission is to keep all 90 of its current positions. That is all well and good as long as the Public Service Commission does the job we are paying it to do, including playing a leading role in managing DC's transition off fossil fuels to clean renewable electric energy in DC homes and buildings. Managing this once in four generations shift is a big job, and we should insist on adequate funding and leadership expertise. We also need to assure that the resources invested are being used to implement a fair and managed transition off to uh modern to a modern energy system. Given limited time, I will focus on one action. Our Public Service Commission has the authority to take now that will both move DC in the right direction and help make rates more affordable. The PSC should move immediately to end the practice of forcing existing customers to pay for new gas lines. As the Massachusetts Department of Public Utilities, their PSC did last year, joining California, New York, Oregon, Washington State, and Maryland. It's been Washington Gas' practice to cover the cost of new line extensions and to pass those costs to existing customers, raising their rates. That practice no longer makes sense in the present circumstances. That is, we know that to meet DC's commitment to achieve net zero greenhouse gas emissions by 2045 under the carbon-free DC plan and our legal obligations under climate the Climate Commitments Act and other legislation passed by council. We must wind down DC's reliance on natural gas and transition to modern electricity-based energy system. We also know that the technology is ready and terrific. High efficient, high efficiency electric heat pumps, and water heaters are safer. They don't pollute the air, they use less energy. Users find induction stoves far superior to gas. Solar panels and network networked geothermal can provide heating costs down, can bring key heating costs down to a fraction of the old gas bill. As the owner of a new building, if the owner of a new building insists on a gas hookup, let them pay for it. Let the expense become part of their mortgage and not ours. The Public Service Commission's duty is to represent the District of Columbia and its residents in our relationship with the utilities.
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