April 16, 2026
Jon Tuleya/for PhillyVoice
PECO has withdrawn a plan to increase residential electric bills by an average of 12.5% and gas bills by an average 11.4% starting in 2027.
PECO has withdrawn its plan to increase electric rates by an average 12.5% after facing criticism from consumers and local politicians.
Last month, the energy company submitted a proposal to the Pennsylvania Public Utility Commission to raise residential rates starting in 2027. According to PECO, the average consumer would've seen a 12.5% increase in their electric bill each month, amounting to $20.08. Gas bills also would've gone up by an average 11.4%, or $14.52, per month. The proposed rate hikes were widely panned by local lawmakers, who urged the PUC to reject the proposal in a letter signed by 32 state House representatives. Gov. Josh Shapiro (D) called the PECO plan "pure greed."
The utility has now walked back its plan in response, citing a desire to "prioritize customer affordability" and conversations with the governor and consumers.
"While our filing with the PUC would have provided needed improvements in safe and reliable energy delivery, we recognize that Pennsylvanians are struggling with basic necessities like gas, food, and energy and have decided to withdraw our proposal," David Vahos, president and CEO of PECO, 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."
The company did not indicate when it plans to file a new proposal.
Shapiro hailed the move Thursday, vowing to "continue fighting to make sure utility companies are focused on keeping costs down while maintaining safe and reliable service."
The Clean Power PA Coalition also applauded the decision Thursday, while pushing for reforms in utility pricing models and energy sourcing.
"We cannot ignore the underlying forces that continue to push costs upward," the group said in a statement. "On the regulated, distribution-side of the bill, high returns on equity and inequitable rate designs need significant reform not just for PECO, but across the state. In addition to distribution rate increase pressures, Pennsylvania families have had bills sky rocket because of increases in energy and capacity costs due to the fact that Pennsylvania and the regional grid operator PJM have been too slow to bring more low-cost, clean energy online"
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