PECO said Thursday it has withdrawn a request to increase electric and natural gas rates in 2027.
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The withdraw came after an intense backlash from customers and a bipartisan group of Pennsylvania lawmakers.
The utility company, a subsidiary of Chicago-based Exelon Corp., had filed a proposal with the Pennsylvania Public Utility Commission (PUC) on March 30. The plan sought to raise electric rates by 12.5 percent and natural gas rates by 11.4 percent.
Under the proposal, average households would have seen monthly bills jump by $20.08 for electricity and $14.52 for natural gas.
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In a news release Thursday, PECO said the move “reflects a deliberate effort to prioritize customer affordability while continuing to deliver safe and reliable service.”
Amid push back from customers, PECO has conversations with Democratic Gov. Josh Shapiro and other stakeholders, the company said.
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“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,” David Vahos, PECO president and CEO said in a statement Thursday.
Shapiro said he called for the company put consumers first and withdraw the increase request.
“This withdrawal is the right step for consumers — and we’re going to keep fighting to make sure utility companies are focused on keeping costs down while maintaining safe and reliable service,” Shapiro said.
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The withdrawal was also met with praise from Bucks County Democratic and Republican lawmakers in the Pennsylvania House and Senate.
“Today, elected officials and everyday Pennsylvanians can stand together knowing their voices were not only heard, but truly listened to,” the local Democrats said in a joint statement.
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“We understand that an improved and reliable grid is critical to the success of our community, but a rate increase right now is unacceptable,” said Republican State Sen. Frank Farry.
The rate hike request came after PECO reported $814 million in profit last year.
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Earlier this year, Exelon’s chief financial officer told investors the company maintained a perfect track record of financial outperformance.
Company officials said Thursday they will continue “near-term” spending on the delivery system but will use the withdrawal to reassess the timing and scope of longer-term grid investments.
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PECO stated it would “refocus” on advocating for changes to lower energy supply prices, which the utility does not control.
