PECO Rate Hikes In Place: What To Know

PECO customers are now paying more for electricity after a 3.1 percent rate hike from the utility company went into effect on Monday as energy demands increase.

Customers will now pay $4.94 a month for a "typical residential customer using 700 kWh per month," the company said this week.

PECO serves about 3.8 million customers in the Philadelphia region, including the city, most of Bucks, Chester, and Montgomery counties, all of Delaware County, and a part of York County.

The Pennsylvania Public Utility Commission said the utility rates will increase for all customers as summer temperatures and air-conditioning use increases electricity demand.

The PUC said that summer electric bills are influenced by the market price of electricity and the amount of electricity used during periods of hot weather.

While June 1 generation price adjustments may increase supply costs for many customers, extended heat waves and heavier air-conditioning use can have an even larger impact on total monthly bills, the PUC said.

As of June 1, PECO customers who receive default supply will see an increase to the supply portion of their bill as a result of higher energy and capacity prices from PJM, the regional transmission organization.

Earlier this year,PECO proposed a 12.5 percent rate hike, but withdrew it at the request of Gov. Josh Shapiro.

PJM sets electric supply prices through competitive wholesale markets, including capacity auctions designed to ensure grid reliability. The increase in supply rates reflects broader challenges across the energy landscape.

Customers who are shopping for a supplier may experience similar increases depending on the terms and structure of their individual plans. These higher prices are a result of the increasing demand for energy by customers, and new energy supply not coming online fast enough, PECO said.

Demand for electricity is growing rapidly, while the pace of new generation development has not kept up. At the same time, the retirement of existing power plants and ongoing market pressures are contributing to higher wholesale energy supply prices.

The electric Price to Compare (PTC) will rise to 11.76 cents per kWh. For a typical residential customer using 700 kWh per month, this equates to an increase of about $4.94 per month, or 3.1 percent, PECO said.

The natural gas PTC will increase to $0.68614 per Ccf, resulting in an average monthly increase of about $0.67, or 0.52 percent, for customers using 80 Ccf.