PECO proposes rate hikes that could increase monthly bills across Philadelphia area

PECO is proposing new rate increases for electricity and natural gas that could raise monthly bills for hundreds of thousands of customers across the Philadelphia region. 

The utility filed requests with the Pennsylvania Public Utility Commission seeking approval to boost rates as part of a long-term plan to upgrade infrastructure and improve reliability.

If approved, the proposal would increase the average residential electric bill by about $20 per month and natural gas bills by roughly $14 per month.

The company says the additional revenue would help fund more than $1 billion in system improvements over the next decade, including strengthening the power grid, reducing outages and preparing for increased demand from electric vehicles, data centers and solar energy.

More than half of that investment would come from customers through higher rates.

The request comes less than a year after PECO raised rates, a move that contributed to record profits for the utility. The latest proposal is already drawing concern from residents facing rising living costs.

"It's really terrible. It's not right because they keep raising rates on everything," said Cecelie Brown of West Philadelphia.

Others say even modest increases could strain already tight budgets.

"We only have so much money a month," said Frank Richetti of South Philadelphia. "If I have to put $20 more out, it might be the difference between me buying a pizza."

For customers on fixed incomes, the impact could be especially difficult.

"It's really tough on people with fixed incomes, especially Social Security, which is not really meeting the high price of living," said Norman Simmons of South Philadelphia.

PECO officials say the investments are necessary as infrastructure ages and severe weather events become more frequent. The plan also includes replacing older gas lines and expanding assistance programs for low-income customers, while spreading some costs over time to reduce the immediate impact on bills.

Regulators will review the proposal in the coming months. Public hearings are scheduled for June, giving customers an opportunity to weigh in.

If approved, the new rates would take effect in January 2027.