PECO Customers to See High Electric Rates June 1
On April 16, PECO filed with the PA PUC to raise its residential generation supply charge (GSA) to $0.09508 per kWh from the current $0.08381 per kWh. This increase will go into effect on June 1 and last 6 months, expiring on December 1, 2025. Unfortunately, this PTC hike comes just as summer gets underway. And as many PECO customers know, summers in the Delaware Valley can get miserably hazy, hot, and humind. So, let’s sort through what we know to find out how high your summer PECO bills could rise. And, we’ll also see how you can find cheap electricity rates.
The GSA is just part of the full price to compare (PTC) default rate that PECO charges its customers who don’t want to shop for a retail electric supplier. The other portion is the transmission charge and that is determined by the Federal Regulatory Commission (FERC).
How Much More Will PECO’s PTC Rate Cost?
While the FERC has yet to determine the rate increase, we estimate it to be around $0.10 per kWh. We base it on the percentage cost added on to previous PECO GSA rate.
According to EIA data from 2015 to 2023, the average electric usage in PA for August was 978.97 kWh. This includes the three hottest U.S.summers on record; 2020, 2021, and 2023.
If we plug that usage amount into the current PECO residential distribution rate and also factor in our estimate for the new PTC rate, an average August 2025 bill could roughly look like this:
| PECO Distribution Charges | PECO PTC Supply Charges |
| 978.97 kWh used @ $0.09655 per kWh = $94.52 Fixed Distribution Service Charge: $11.30 | PTC rate = $0.10 per kWh 978.97 kWh used |
| Total Distribution Charge: $105.82 | Total Supply Charge: $97.90 |
| Total Bill | $203.72 |
Uncertainty Could Help PECO Customers Save
Because PA relies on natural gas to generate a little over half of its electricity, its price can significantly affect the price of electricity. And though warmer temperatures and rising production have had an effect, recent uncertainty over trade tariffs appears to be cutting into demand. Natural gas futures have fallen from just over $4 per mmBtu during the first of April to $3.25 mmBtu by April 18.
Unlike PECO, retail electric providers are able to shop for the lowest electricity rates from multple generator companies. They also have the flexibility to buy power on the Day Ahead Markets and on the Daily Spot markets. This means that if natural gas prices fall further in a month or so and take electricity rates with them, retailers can offer customers lower rates.
Because of this, PA consumers may see a possible scenario unfold this summer.
At PAEnergyRatings, several 8 to 12 months long plans are currently available for under 11 cents per kWh. If cheap natural gas pulls down these electric rates by just 10%, they will all be less than 10 cents per kWh, which will beat the PECO PTC rate this June.
Unfortunately, there’s no certainty that this will actually happen. But it is a possibility. The question is how to take advantage of it without getting skinned. Well, consider the following…
If you’re a PECO PTC customer or your current supplier plan is ending, the best way to position yourself for this is to sign on to a short term plan with a cheap rate. That way, if rates do drop, you’ll be able to switch to a longer low, fixed rate plan right away. And if nothing happens, you can go back to PECO.
Cheapest Short Term Plan for PECO Customers
These two short term plans last for three months and both currently beat what the PECO PTC rate will be on June 1.
First up is the Think Energy Think Basic 3 month plan for 8.99 cents per kWh. The monthly recurring charge of $9.95 will bump the cost up the actual price to 9 cents per kWh. For August usage, a summer supply charge would be about $88.11. But, even more important, there’s no cancellation fee. And if you stay on for the full 3 months, be sure you switch or you’ll be automatically enrolled in the Think Energy variable rate.
The other short term plan is the APG&E True Simple 3 month plan at 9.66 cents per kWh and has no monthly monthly recurring charge. The supply charge would run about $94.57. Likewise, there’s no cancellation fee. Also, be sure to start start looking to switch as soon as the APG&E sends the first expiration notice. Otherwise, you’ll be automatically enrolled in their variable rate.
Watch and Shop for Best Electricity Rates
With the energy markets trying to get their footing in uncertain economic times, PA electric customers should pay close attention to rates and plans this summer. Timing could be key to locking in the lowest rate for the longest time. And the best place stay on top of all that is by clicking over to https://www.paenergyratings.com/electricity-rates.