PECO Seeks Rate Hike, DLC Cuts Rates
Pittsburgh residents have some good news to celebrate! And it’s not just the Penguins scoring a spot in the playoffs for the first time in four years. DLC has filed to lower their generation supply charge. So, starting on June 1, 2026 DLC customers will see slightly lower PTC rates. Meanwhile, on March 30, PECO filed with the PA PUC for their second rate hike in 15 months.
PECO stated in a press release that they need the rate hike to pay for grid improvements. However, PECO is already under fire from Gov. Shapiro and others over the proposal. So, let’s talk about what all of this means for your electricity rates!
DLC Lowers Supply Charge
On April 1, 2026, DLC filed to lower their GSA from 11.0275¢ per kWh to 10.9568¢ per kWh. The GSA is just part of the full price to compare (PTC) default rate that DLC charges its customers who don’t want to shop for a retail electric supplier. The other part is the transmission charge. That is determined by the Federal Regulatory Commission (FERC).
While the FERC has yet to determine the rate increase, we can estimate it. Currently, the DLC PTC rate is 13.75¢ per kWh. The 11.0275¢ per kWh GSA makes up a little over 80% of the PTC rate. Which means the transmission charge covers the other 20%. Using that math, we can estimate that the new PTC rate will be around 13.12¢ per kWh. So, assuming the average monthly electricity usage is about 854 kWh, your monthly supply charge could decrease from $117 a month to $112. Not bad, but you can shop for cheaper electricity.
PECO Requests Another Rate Hike
Meanwhile, PECO is once again asking ratepayers to foot the bill for their infrastructure improvements. They have requested a 12 percent increase in electric rates, and a 11.4 percent increase in natural gas rates. This is on top of rate increases PECO received in 2024. Ratepayers were also hit with a 10% rate hike in January, 2025. By the end of the year, the utility reported its net income at $814 million, about 47.7% over 2024.
If approved, this would increase the average residential electric bill by about $20 per month. And raise natural gas bills by roughly $14 per month.
PECO argues that they need the funds to keep their grid reliable. They stated they would use the rate increase to plan for severe weather, update old infrastructure, and expand customer support programs. PECO has planned nearly $10 billion worth of projects over the next five years. And this rate hike would see customers funding nearly half of it.
This has a lot of people hot under the collar because the hike is a distribution rate charge. All ratepayers must pay it. A group of lawmakers from Bucks County are opposing the PECO rate hikes. And they’re not alone. Gov. Josh Shapiro has said of the proposed rate hike that “It’s pure greed, and I’ll do everything I can to stop it.”
Shop for Lower Electricity Rates this Summer
No matter if you live in Pittsburgh or Philly, with these rate changes coming, now is the time to shop and save. The right electricity plan can help shield you against high bills not just for this coming summer, but for months afterward. So this season, find an affordable fixed rate with https://www.paenergyratings.com/