PECO, PPL Cut Rates as PA Green Energy Dims

PA currently ranks dead last in green energy growth. With most generation coming from natural gas, are state renewable portfolio rules to blame for high electricity rates?

Green Energy Lagging in PA Amid Rate Cuts

PA green energy procurement rules may actually be dimming renewable projects. Find out why this might PA energy customers may be paying more because of it.
Even though two of PA’s major utilities are reducing their PTC rates, state rules maybe dimming chances for green energy to cut prices even lower. Find out why and how you can save on your electricity.

Green energy projects have been on the rise in PA. But, we’re still lagging behind the rest of the country. Right now, PA ranks 50th in the nation for percentage growth in total solar, wind and geothermal generation since 2013. So, with rates falling and green energy stagnating, what’s next for renewables in PA? Possibly some policy changes. And it could supply PA with more cheap electricity as well.

PECO, PPL Rates Dropping This Summer

But first, how far are electricity rates falling this summer? PECO is lowering rates slightly. On the other hand, PPL is making some significant cuts to its PTC prices this season. These rates will take effect June 1, 2024, just in time for the summer heat. So, based on an average usage of 854 kWh per month, let’s estimate how this will affect your bill.

PECO is lowering their residential PTC rates from 9.425 cents per kWh to 9.276 cents per kWh. So your energy costs could go from about $80.49 a month to $79.22.

PPL, meanwhile, is lowering their residential PTC rates significantly, from 11.028 cents per kWh to 10.04 cents. This means your energy costs could go from $94.18 a month to $85.74. That’s an $8.44 difference every month!

These price cuts mean that PA electric choice providers will need to lower their rates in order to compete with PECO and PPL. So if you’re still shop for the a cheap fixed rate, you may still have some time!

What’s Happening to Green Energy in PA?

Currently, Pennsylvania is still highly dependent natural gas for 59% of electricity generation. That’s more than the U.S. average at 43.1%. It’s a slow growth that a variety of critics blame on state rules for power procurement.

Every four years, the Pennsylvania Public Utility Commision (PUC) has to approve PECO’s energy procurement, or default service plan, where the utility explains how it intends to buy electricity. Their current plan expires in late May. February this year, PECO filed their new default service plan. This filing is much the same as the last one, and includes purchasing 8% of its power from renewable sources. This also includes 0.5% of solar energy generated within the state.

So why not more of a push for green energy? A PECO spokesperson told the Philadelphia Inquirer, “Our filing is designed to comply with Pennsylvania law and regulations.” Soon though, those rules and regulations may change in favor of pushing for more green energy.

New Green Energy Legislation

May 8th, 2024, state senators filed a bill advancing clean energy legislation. House Bill H.B.2277 would require Pennsylvania to get 50% of its electricity from a diverse range of energy resources by 2035, including 35% from the cleanest sources, such as solar, wind, and small modular reactors.

What would this mean for your electricity bills though? According to the Shapiro administration, it could save PA citizens an estimated $252 million on electricity rates, as well as create nearly 15,000 jobs. The next step for this bill is for the General Assembly to hold public hearings on the bill. So, expect to hear more about this bill before it hits the statehouse floor for a vote.

Save on Your Energy Costs

Thankfully, you don’t have to wait to get clean energy. And there’s still time to shop low rates. With PA Energy Ratings you can not only get a green electricity plan, but you can save money with it too! Compare plans, read reviews, and more. Visit

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