PECO natural gas customers will receive $8.9 million in relief on their natural gas bills following the successful resolution of a multi-year federal pipeline rate case that would have instead increased natural gas transportation costs, which would impact the supply portion of a customer’s bill.

The collective actions of PECO and parent company Exelon will return more than $13 million across three Exelon operating companies (PECO, Delmarva Power, and BGE) in the form of refunds and lower long-term costs. This advocacy also helped avoid more than $12 million annually in additional costs that would have otherwise been passed onto customers.

Advocating for Customers as Costs Rise 

The win for customers comes at a time when energy supply costs are rising and reflects the company’s continued efforts to advocate on behalf of customers through The Exelon Promise to keep bills as low as possible.  

“The Exelon Promise was launched because we share our customers’ frustration with rising energy costs,” said Mike Innocenzo, PECO’s President and CEO. “While we don’t control every aspect of our customers’ bills, we’re taking meaningful action to step up and deliver savings where we can. By challenging this rate increase, we’re delivering real savings, protecting customers from additional charges, and helping to stabilize energy bills as families and small businesses struggle with the effects of the energy supply and demand crisis behind rising energy costs.”

The savings stem from PECO’s and Exelon’s participation in a proceeding before the Federal Energy Regulatory Commission (FERC) involving a proposed rate increase from Transcontinental Gas Pipeline Company (Transco), a major natural gas interstate transporter in the Mid-Atlantic. Exelon companies intervened and challenged the proposal, ultimately helping to secure a settlement that reduced costs, returned over-collection, and prevented new surcharges.

Meaningful Benefits for Customers 

The settlement delivers multiple, lasting benefits for Exelon customers: 

• Refunds returned to customers: The refund PECO received for over‑collections is returned to customers through the normal gas cost recovery process, reducing future charges.
• Lower long‑term rates: By pushing back on higher pipeline rates, the company helped reduce ongoing costs, helping keep energy bills more manageable over time.
• Elimination of new surcharges: A proposed “Modernization Surcharge Tracker” was eliminated, protecting customers from additional, less transparent pipeline surcharges in future years. 
• Stronger regulatory oversight: By intervening and challenging the filing, the company helped ensure the ultimate rates approved by FERC were transparent and fair.
• Rate stability: The settlement prevents Transco from seeking further base rate increases before Aug. 31, 2027. 

No action is required by customers to receive refunds or benefit from the reduced rates, as the refund will be factored in future purchase gas cost rates. Average PECO natural gas residential customers will see a savings of approximately $1.14 per month for about one year, with ongoing savings of $1.05 per month effective June 1, 2026.

Learn more about The Exelon Promise, PECO’s commitment to deliver immediate relief, strengthen customer protections, and pursue solutions that keep energy reliable and costs as low as possible.