PECO withdraws rate hike that would have raised electric bills $20 a month: "now is not the right time"

PECO is withdrawing its requests for rate increases that would have raised the average customer's electricity bills by $20 a month, Gov. Josh Shapiro announced Thursday.

PECO, the power and natural gas provider for Southeastern Pennsylvania, had submitted requests to the Pennsylvania Public Utility Commission to allow a rate increase that would pay for longer-term investments like modernizing its electric and natural gas systems.

The average household's natural gas bill would have increased by $14 a month.

"However, it was determined that advancing those longer-term investments at this time would place additional strain on customers who are already managing significantly higher energy supply costs and broader cost-of-living challenges," PECO said in a news release.

Shapiro said in a news release that he spoke to CEO David Vahos and demanded the request be withdrawn. The company said it also weighed input from customers and community groups and determined "now is not the right time to move forward."

"PECO's proposed rate case would have increased Pennsylvanians' utility bills ...  I appreciate that the company is willing to prioritize affordability at a time when Pennsylvanians are worried about rising costs," Shapiro said.

The governor's administration estimates 1.7 million Pennsylvanians will save $510 million on their bills due to the increase being canceled.

"We recognize that Pennsylvanians are struggling with basic necessities like gas, food, and energy and have decided to withdraw our proposal," Vahos said in a statement. "We look forward to working with stakeholders across the region to find long-term solutions to high energy costs and to make needed investments at another time."

We've reached out to PECO and asked if they intend to refile and request a smaller increase.

This is a developing story and will be updated.