At a time with gas prices peaking past $4.00 per gallon, prices for groceries continuing to climb and economic forecasters now whispering that ugly word recession, PECO announces that it is seeking to raise energy rates for its customers which would see an average residential electric customer get a monthly bill increase of $20.08 or 12.5% per month while a typical residential natural gas customer would see a $14.52 or 11.4% hike monthly.
PECO submitted the proposal to the Pennsylvania Public Utility Commission, officials on Monday.
PECO officials said the 12.5% hike could be partially offset by $2.30 per month or 1.3% in April 2027 “as a result of two proposed cost-recovery rate tools.”
In perhaps one of the most tone-deaf statements ever made by a company, PECO officials explained why the increases are needed.
“We understand that any increase in costs is difficult for families and businesses, and we don’t take this request lightly,” said David Vahos, PECO president and CEO in a statement on the proposed rate hike. “Our customers deserve a system they can count on – especially as severe weather grows more frequent. These investments will strengthen the grid, reduce outages, and ensure we’re delivering the safe, reliable service our customers expect every day.”
Owned by Chicago-based Exelon Corp., PECO said it is seeking $429 million for electric system investments and $81 million for its natural gas network which will come, officials said, from rate increases.
PECO said that the increases will result in savings over six years and deliver nearly $300 million in customer savings, including $88 million in 2027.
“We recognize that energy costs are a concern, which is why we need to strike a balance in ensuring reliable service, while keeping costs as low as possible,” continued Vahos in a statement. “That’s why we’re proposing two rate tools designed to spread certain costs over time, helping to reduce customer bills.”
PECO said they will continue to offer one-time grant programs for eligible customers and advocate for the Low Income Home Energy Assistance Program (LIHEAP) which President Donald Trump’s administration is trying to kill.
PECO provides services to 1.7 million for electric and 553,000 natural gas customers in the Philadelphia region, according to company records.
The utility implemented rate increases at the beginning of 2025, with electric costs increasing by 10 percent and natural gas by 12.5 percent.
The rate hike filing comes after PECO reported an $814 million profit in 2025.
Residents who want to file a formal complaint regarding the proposed rake hike can do so on the PUC website by clicking here.
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