The Vacated Rates Clarification Amendment Act of 2026 aims to provide clarity and fairness regarding utility rates in the District of Columbia, particularly in light of a recent court ruling that vacated Pepco's multiyear rate plan. This ruling, which deemed the rate plan unlawfully established, has left current rates in place, impacting consumers with increased charges. The bill proposes that when a court vacates a utility rate plan, the rates will automatically revert to the most recently lawfully approved rates until a new plan is established. This measure is intended to ensure that residents are not burdened with rates that lack a clear legal basis.

To implement this change, the bill amends the Public Utilities Act of 1989 by stating that any utility rates vacated by a court, regardless of the grounds for the decision, will be rendered null and void. The new language specifies that upon vacatur, the applicable rates will revert automatically to the last lawfully approved rates without requiring further action from the Commission. This amendment seeks to enhance transparency and protect consumers from unjust utility charges during periods of legal uncertainty.