The issue is the technology which means a regulated industry probably (well, some caveats) works best. Because a huge investment in plant, lines and equipment is necessary, it's not like a competitor can just waltz in with better service and lower prices.
No one who is incompetent wants to admit that someone else can do the job better but when you fail, you should be replaced. Pepco should not get to claim that since they have made such a mess of the system that there is no other company out there that can clean up their disaster.
BTW- Montgomery County has lots of new developments with underground lines but unlike their Virginia counterparts these new developments are without power too. This is because Pepco has older, faulty equipment up and down the line where any even minimal disruption will knock out power to everyone on the line. Pepco also only trims trees when it is forced to do this or fined for not doing it. If Pepco had proactively cleared above ground paths to denser areas with underground lines, there would be fewer outages, and more crews to get older areas.
The objection to an increase in Pepco rates by many people is not a general objection to increased rates but lack of any credibility on the part of Pepco that rate increases will be invested into improving the service. They are caught year after year diverting maintenance and upkeep funds to profits and marketing. Why should anyone trust that their actions would be different in the future.