Montco Officials Call For Investigation Into PECO Over Rate Hike Proposal

LOWER PROVIDENCE TOWNSHIP, PA — Officials in Montgomery County are calling on the state to investigate PECO over its proposed drastic rate hikes, ascribing the move to the "greed of multi-billion dollar corporations."

State Sen. Katie Muth sent a letter to the Chairman of the Pennsylvania Public Utility Commission, the regulatory body which oversees PECO and which must approve any proposed increases.

Both Democrats and Republicans from around southeastern Pennsylvania have noted that PECO already substantially raised taxpayer bills for the start of 2026, and that last year saw them take in record profits. Muth says PECO's motivations are to build out their infrastructure on a massive scale in order to attract more data centers.

"Everyday ratepayers should not be subsidizing billion-dollar upgrades for the pet projects of big tech bros while struggling to keep up with rising utility costs," Muth wrote.

PECO's new proposal would raise electric rates by 12.5 percent and natural gas rates by 11.4 percent, starting in 2027. That means more than two million families around the Philly region would pay, on average, an additional $20.08 per month for electricity and $14.52 per month for natural gas.

Several of these "hyperscale" data center proposals are located along the Schuylkill River, including in East Vincent and Limerick townships. An upwelling of bipartisan political and community opposition has stalled some efforts in their tracks, but state legislators and Gov. Shapiro are advancing legislation, House Bill 502, that would remove local control over energy infrastructure projects and hand it over to a state agency friendly to "removing red tape." This would essentially remove the authority of local governments to approve and disapprove projects.

Muth noted that the increase PECO requested in 2024 did not allow them to apply for another rate increase until March 16, 2026. They filed paperwork for that increase just days after, on March 30.

"It is no secret that these continued increases are driven not by the needs of Pennsylvania families and small businesses, but by the greed of multi-billion dollar corporations whose only goal is to increase their bottom line," Muth added. "Current ratepayers are already footing the bill for utilities, like PECO, to upgrade their infrastructure to support and attract energy-intensive, hyperscale AI data center development."

In addition to requesting an investigation into PECO and their motivations, Muth's letter requests the PUC schedule local public hearings to give residents a voice in the process.

PUC is not slated to vote on the proposal itself until later in the year.