PECO has nixed proposed price increases, following intervention from Gov. Josh Shapiro.
Nearly three weeks ago, the utility company asked state regulators to approve rate hikes that would have caused bills to rise $20 a month for the average Philadelphia household beginning next year, with a $35 increase for suburban residents who pay the firm for access to electricity and natural gas.
“Pennsylvanians are already being squeezed by rising costs from the Trump Administration’s chaotic economic policies and the war in Iran – but my Administration is doing everything we can to cut costs and protect consumers,” Shapiro said in a statement. “PECO’s proposed rate case would have increased Pennsylvanians’ utility bills, but I demanded that their CEO put customers first and withdraw their rate hike request.”
PECO, a subsidiary of Exelon Corporation, estimated that the hike would have generated about $510 million. In its submission to the state’s Public Utility Commission (PUC) in late March, the company said the revenue was the “minimum necessary” to remain financially sound and cover infrastructure improvements.
But the move quickly drew pushback from state lawmakers and the Governor’s Office. PECO announced it was withdrawing the proposal Thursday.
“While our filing with the PUC would have provided needed improvements in safe and reliable energy delivery, we recognize that Pennsylvanians are struggling with basic necessities like gas, food, and energy and have decided to withdraw our proposal,” David Vahos, the company’s president and CEO, said in a statement.
In a news release, PECO said the decision to abandon the price hikes does not change how the utility “operates or protects its electric and natural gas systems, its employees, or the communities it serves.” Customers should “expect continued strong reliability performance,” officials added.
Since the start of 2025, PECO has increased electricity rates by 12.8% and gas rates by 12.5%, in accordance with an earlier settlement with the PUC.
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