Arnold Kling has some clever ideas about reforming PEPCO.
Ultimately I think Kling's idea of tiered service — paying more for guaranteed uptime — will be too unpopular to be workable. When push comes to shove in the après-storm, the people who freely opted not to pay extra for quicker restoration will be able to bring too much populist pressure to bear against the people did make such payments. It doesn't matter how carefully you structure the arrangements. The popular perception in DC will still be "OMG the rich white people are getting their power turned on first! PEPCO is racist!!!"
Nevertheless, this is orders of magnitude more sophisticated thinking than the thousands of people in DC who are simultaneously demanding that PEPCO rebuild their infrastructure with buried power lines and complaining about high prices.