PECO has withdrawn its proposed electric and natural gas rate increases, stepping back from a plan that would have raised bills for customers across southeastern Pennsylvania as economic pressures weigh on households and businesses.
The decision, announced Thursday, halts a rate review process that would have increased residential electric bills by about $20 per month and natural gas bills by roughly $14.50 beginning in 2027. The proposal was part of a broader effort to fund system upgrades, strengthen grid reliability, and modernize aging infrastructure across the region.
Instead, the utility said it will revisit its approach in light of current economic conditions, while continuing to prioritize safe and reliable service for its approximately 1.7 million electric and more than 500,000 natural gas customers.
“We recognize that families and businesses across southeastern Pennsylvania are under real financial strain from rising everyday costs, and keeping bills as low as possible must be the priority right now,” said PECO President and CEO David Vahos. “After listening closely to customers, community partners, and leaders from across the region, including Governor (Josh) Shapiro, (Philadelphia) Mayor (Cherelle) Parker, (Philadelphia City) Council President (Kenyatta) Johnson, and others, PECO has made a timing-based decision to withdraw our electric and natural gas rate review filings. This decision reflects our commitment to affordability while continuing to deliver safe, reliable service and maintaining strong engagement with the Pennsylvania Public Utility Commission.”
Vahos also pointed to ongoing efforts aimed at easing near-term cost pressures for customers while the company reassesses its path forward.
“Keeping bills as low as possible through efforts like PECO’s $12.5 million Customer Relief Fund to help low- and middle-income customers struggling with high energy costs is a top priority,” he said. “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. 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 rate filings had been designed to support a range of capital projects, including grid modernization efforts and infrastructure improvements needed to meet evolving energy demands. Company officials indicated those needs have not gone away, even as the timing of cost recovery is being reconsidered.
PECO stressed that the withdrawal is not a cancellation of future investment plans, but a pause intended to better align with current financial pressures facing customers. The company said it will continue engaging with regulators, including the Pennsylvania Public Utility Commission, as well as community and business leaders.
Industry observers note that rate cases are a routine mechanism for utilities to recover the costs of maintaining and upgrading infrastructure. Delaying such filings can provide short-term relief for customers but may also affect the pace of system improvements if not addressed over time.
PECO said it will continue to invest in reliability and safety in the interim and pointed to existing customer assistance programs aimed at helping those facing financial hardship. The move to withdraw its filings represents a recalibration of timing, one that preserves PECO’s long-term infrastructure goals while acknowledging the financial realities currently facing the region.
