On March 31, PECO filed a proposal with the Pennsylvania Public Utility Commission (PUC) to raise electricity rates by 12.5% starting January 1, 2027. For a typical residential customer, that means an increase of about $20.08 per month. Suburban natural gas customers would face an 11.4% increase — roughly $14.52 more per month. (NBC Philadelphia)
This Follows a 10% Increase Just Last Year
PECO already raised electricity rates by 10% in January 2025. After that increase, PECO's net profits jumped nearly 50% — from $551 million in 2024 to $814 million in 2025. The CEO of PECO's parent company, Exelon, earned more than $15.6 million last year. (WHYY)
Governor Josh Shapiro called the proposed hike "pure greed" in a public statement, writing: "Last year PECO raised prices on Pennsylvanians and made an obscene $814 million in profit. They could have used that money to offset people's costs — instead they passed it onto shareholders." (WHYY)
Bipartisan Opposition
The pushback isn't coming from one side. A group of Bucks County Republican lawmakers sent a letter to PECO asking the company to reconsider the proposal, writing: "While we understand the need to improve electrical and natural gas infrastructures, we believe raising rates will have a negative impact on our constituents who are already burdened with high costs." Montgomery County Democrats have launched a petition asking the PUC to reject the rate hike entirely. (WHYY)
What PECO Says
PECO says the increase is needed to fund $10 billion in infrastructure spending over five years — to reduce outages, strengthen the grid, and modernize aging natural gas systems. The company says about 90% of what it earns is reinvested in reliability, safety, and service quality. (NBC Philadelphia)
However, energy policy experts have noted that PECO's requested 10.95% return on equity for investors is almost a full percentage point higher than the national average of 9.75%. Investor-owned utilities like PECO earn profits based on infrastructure spending — the more they spend, the more they can charge customers. (WHYY)
What This Means for Southeastern PA Homeowners
If you're already paying around $160/month to PECO for electricity, this increase would push that closer to $180/month — and that's before any future rate hikes. Over the past decade, PECO has sought and received rate increases four times. There's no reason to expect that pattern to stop.
For homeowners considering solar, the math keeps getting more compelling with every rate increase:
- A properly sized solar system eliminates 80-100% of your PECO bill. Every time PECO raises rates, your savings increase — because you're avoiding a higher cost.
- PECO's 1:1 net metering credits you at the full retail rate for every kWh you export to the grid. As rates rise, each exported kWh becomes worth more.
- Solar locks in your energy cost for 25+ years. Unlike renting power from PECO at whatever rate they decide to charge, solar ownership means predictable, near-zero electricity costs for decades.
- Battery storage adds protection against both rate hikes and the grid reliability issues that PECO says justify these increases in the first place.
The Bottom Line
PECO's rate hike request still has to go through the PUC approval process, which typically takes several months. But the trajectory is clear: rates are going up, and they've been going up consistently for years. Solar doesn't just save you money at today's rates — it protects you from every future increase.
Want to see exactly how much a solar system would save you at current and projected PECO rates? Get a free, no-pressure savings estimate or call 610-900-6405.
