Gov. Shapiro Pressures PECO to Withdraw Rate Hike Proposal
Under pressure from Gov. Josh Shapiro, PECO has withdrawn its recent rate increase requests. The company pulled the filings after negotiations with the governor’s office and other stakeholders.
What PECO had sought
PECO filed two rate requests with the Pennsylvania Public Utility Commission on March 31. The proposals would have raised bills for electricity and natural gas customers.
- Electricity customers faced a potential 12.5% increase beginning in 2027.
- Suburban natural gas customers were looking at an 11.4% rise.
- The company estimated a typical electricity bill would grow by $20.08 per month.
- A typical gas user would have paid an extra $14.52 per month.
- Some households could have seen combined increases near $35 monthly.
Official reactions and rationale
Shapiro said he pressed PECO to put customers first. His office called the outcome a major win for about 1.7 million Pennsylvanians.
PECO president and CEO David Vahos said the company withdrew the filing because many customers struggle with basic necessities. He added the utility still plans to pursue necessary investments later.
Consumer advocates respond
Pennsylvania’s Public Advocate Darryl Lawrence described the withdrawal as unprecedented in his two decades of service. He praised the governor and urged utilities to keep affordability top of mind.
The Pennsylvania Utility Law Project also welcomed the move. Executive director Elizabeth Marx noted PECO disconnected service to more than 126,000 households last year.
What happens next
The withdrawal removes the immediate threat of those rate hikes. PECO said it will work with regional stakeholders to seek long-term solutions to high energy costs.
State regulators could see revised proposals in the future. Advocates say they will continue pressing for protections for low-income and vulnerable customers.
