May 24, 2023 - News

PECO raising electric rates this summer

Illustration of a light bulb with a percent sign-shaped filament.

Illustration: Brendan Lynch/Axios

Electricity costs are increasing for most customers across Pennsylvania starting in June.

Why it matters: The unofficial start of summer is this weekend and you’re about to start blasting your air conditioner.

State of play: PECO’s rates will increase 6% next month for people enrolled in its “default service,” per Pennsylvania Public Utility Commission (PUC).

  • That amounts to a roughly $5-a-month increase for the average PECO user.
  • The hike will affect about 1.2 million residential customers in Philly and the suburbs.

Zoom in: PECO is passing along price increases due to new contracts it has with suppliers, says Greg Smore, a spokesperson for the utility.

Between the lines: The rate increase is tied to the company’s supply rate, known as “price to compare,” which accounts for about half your bill.

  • Utility companies adjust this price on a quarterly or biannual basis.

Context: It could be worse, per PUC.

Meanwhile, PPL Electric — which covers parts of Bucks, Chester, and Montgomery counties — is decreasing its default service rate by 17% at the same time.

Editor's note: This story has been corrected to reflect that PPL Electric’s default service rate will decrease by 17% next month, not increase.

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