PA PUC to Review PECO Distribution Charge Hike

By Briana WrightPA Electricity Rates
The PA PUC is investigating a new PECO distribution charge to its customers in Philadelphia. Learn when it could take affect and add more to your bills.

PECO Rate Hike Under PUC Investigation

The PA PUC stopped a new PECO distribution charge from going into affect. Learn why it is investigating the new rate and how you can save.
PECO customers could face higher distribution charges if the PA PUC approves the utility’s request. Learn how this could affect your future electric and natural gas bills.

The Pennsylvania Public Utility Commission (PUC) has voted to suspend the new PECO request for a higher distribution charge. Instead, it has chosen to investigate PECO‘s proposed rate increases for both their electric and natural gas services. If approved, this rate hike would affect more than 2 million Pennsylvania customers. We’re here to cover what’s in the higher charges, as well as how you can find the cheapest electricity rates.

The PUC and PECO Distribution Charge Hike

In March 2024, PECO filed a request to raise their distribution rates for both electric and natural gas services. Distribution charges cover the utility’s cost to use local wire or pipeline networks. These deliver electricity and natural gas to consumers. As a result, some of these costs includes repairs and upgrades. Currently PECO is requesting an yearly electric rate increase of $399 million in 2025. Their natural gas rate increase would total $111 million yearly.

In April the PUC voted to investigate the proposed rate hikes. As a result, they postponed the rate hike until October 2024. And the final decision from the PUC is due in December.

What Does It Mean for Your PECO Electricity Bill If PUC Approves Charge?

An average customers using 700 kWh would face an increase of about $16.67 on their monthly electric bills in 2025.  In 2026, this goes up by another $2.70. When it comes to natural gas customers, the charge for 80 ccf per month rises from $97.98 to $114.13 per month in 2025. So, for the average consumer, it’s quite a jump! That’s a 12% increase for electric, and a whopping 17% increase for natural gas. And if you use more than those estimated amounts, you’ll get an even higher bill.

PUC Urges Customers to Shop and Save

But these aren’t the only changes for you to worry about coming to your electric bill. The PUC is reminding customers that on June 1, 2024 utilities across the state will be updating their PTC rates. It’s important to evaluate your electricity bills, and excerise your right to PA electricity choice.

Thankfully, shopping for the best electricity rate is easy with PA Energy Ratings! By shopping around for a new lower rate, you can keep your bills low and your wallet happy. Read reviews, compare providers, and keep up to date on energy news with us. Visit https://www.paenergyratings.com

2 thoughts on “PA PUC to Review PECO Distribution Charge Hike”

    1. Hi Charles,

      Good question! According the the PA PUC announcement on 11/18/2021:

      “…the bill for a typical residential customer using 700 kWh per month will increase by $6.66 per month, from $100.29 to $106.95 (6.6%). By comparison, in the company’s initial filing, the bill for a typical residential customer using 700 kWh per month would have increased by $9.68 per month, from $100.29 to $109.97 (9.65%).”

      So, if you compare the 2021 agreed-upon estimated bill ($106.95 as above) to PECO’s proposed amount for 2026, that’s an increase totaling $48.27.

      Again, these are charges that ALL PECO customer must pay in order to deliver energy to their home.

      cheers —

      Reply

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