PECO is seeking funding for “long-term investment in its local electric and natural gas infrastructure” and, to do so, the company has announced a proposed rate hike that could be implemented with the start of next year.
In a statement released Monday, PECO officials said the company has submitted a proposal to the Pennsylvania Public Utility Commission for a rate hike that would see a typical PECO residential electric customer get a monthly bill increase of $20.08 or 12.5% per month while a typical residential natural gas customer would see a $14.52 or 11.4% increase per month.
If approved, the newly proposed rates would take effect on January 1, 2027.
Though, PECO officials claimed the 12.5% hike could be partially offset by $2.30 per month or 1.3% in April 2027 “as a result of two proposed cost-recovery rate tools.”
“We understand that any increase in costs is difficult for families and businesses, and we don’t take this request lightly,” said David Vahos, PECO president and CEO in a statement on the proposed rate hike. “Our customers deserve a system they can count on – especially as severe weather grows more frequent. These investments will strengthen the grid, reduce outages, and ensure we’re delivering the safe, reliable service our customers expect every day.”
Along with this investment, PECO said the funding increase would enable the company to “expand support programs and advance the services and experience for its customers.”
“The proposed investments will enable PECO to further improve service reliability, increase electric grid resiliency, and reduce the impacts of severe weather, modernize aging natural gas infrastructure, expand programs to support customers who may be struggling financially, and help customers embrace cleaner and more efficient energy options,” PECO officials said in a statement.
As part of the request, PECO said the company would recover an additional $429 million for its electric investments.
The company also would recover an additional $81 million for its natural gas investments, officials said.
PECO said that the increased rates would allow the company to “maintain and enhance the safety and reliability of PECO’s electric and natural gas systems and help ensure the company can continue to meet the growing demand for energy in southeastern Pennsylvania. ”
As examples of investment in the community, PECO pointed to several projects:
- Upper Darby, Pa.: PECO invested an estimated $66 million to upgrade electric infrastructure in Upper Darby, helping deliver more reliable power to approximately 7,690 customers across Delaware County.
- Philadelphia: A $56 million investment in a new substation in the Overbrook section of Philadelphia is helping ensure more dependable electric service for approximately 17,200 customers across Philadelphia and Montgomery Counties.
- Center City Philadelphia: A $52 million investment to retire the Mall and Lombard substations modernized the electric system and supported more reliable service for approximately 2,900 customers in Center City.
- Marple Township, Pa.: A new natural gas reliability station is enhancing the safety and reliability of natural gas service for customers across Delaware County.
- Natural Gas Neighborhood Pilot Program: Through this program, PECO has completed more than 260 neighborhood‑level projects, expanding natural gas service and providing reliable energy to over 2,000 new customers.
“We recognize that energy costs are a concern, which is why we need to strike a balance in ensuring reliable service, while keeping costs as low as possible,” continued Vahos in a statement. “That’s why we’re proposing two rate tools designed to spread certain costs over time, helping to reduce customer bills.”
These proposed mechanisms, PECO claims, would reduce bills over six years and deliver nearly $300 million in customer savings, including $88 million in 2027.
PECO said that customers can learn more about the filings at peco.com/Rates or by calling 1-800-494-4000.
