Electric Rates Up As Summer Approaches

Electric rates are rising in the area just as summer heat waves and inflationary pressures strain household budgets.

The Pennsylvania Public Utility Commission announced that all regulated electric utilities in the state are increasing their generation charges starting June 1.

The rate hikes vary widely by region, with Citizens’ Electric in Union County seeing the lowest increase at 0.05 percent and Pike County Light and Power logging the highest at 19.8 percent.

For PECO customers, the adjustment will add about $4.94 per month to the typical residential electric bill. Small business customers served by PECO face a steeper 17 percent increase.

The adjustments apply to the cost per kilowatt-hour for electricity generation, which is heavily influenced by wholesale market prices.

According to the PUC, the supply charges typically account for roughly 50 percent or more of a customer’s total electric bill.

The remainder of the bill is tied to delivery and distribution charges, which are the costs of maintaining wires and poles.

The pricing hike comes during the high-demand summer months and amid broader economic pressures, including rising inflation and gas prices.

PECO attributed its rate hike to higher costs passed down by PJM Interconnection, the regional power grid operator.

“These market-driven increases are expected to raise customer bills by approximately three percent ahead of the summer months, due to growing energy demand and new supply not coming online quickly enough,” a PECO spokesperson said. “The energy landscape has shifted, and supply is not keeping pace with growing demand, resulting in significantly higher energy bills for customers.”

The spokesperson added that the situation highlights an “unsustainable supply gap” and noted that “doing business as usual is not an option.”

Wholesale power prices have faced upward pressure in recent years due to climbing energy demand, tariff costs, the retirement of older plants, and the expansion of power-hungry data centers.

The rate increase follows a decision by PECO to withdraw a request for a price hike next year after pushback from lawmakers and the public.

“Energy markets are sending a clear signal that additional reliable, affordable generation is needed,” said Doug Oliver, PECO’s senior vice president of governmental, regulatory, and external affairs. “Ensuring energy security for the future will require coordinated action across the industry to bring new supply online and keep pace with rising demand.”

Oliver said that utilities cannot fix the grid imbalance in isolation.

“Generators, policymakers, and industry leaders must act with urgency to address the supply shortfall,” he said.

President Donald Trump’s administration and Gov. Josh Shapiro worked on the issue in spring during a meeting, but fixes are not expected to happen quickly.

In addition to electricity changes, PECO natural gas customers will see their monthly bills rise by an average of $0.67, or 0.52 percent.

State regulators noted that total monthly costs for consumers will depend on summer temperatures and individual household usage.

Consumers who currently use a third-party energy supplier will maintain the generation price locked into their existing contracts, but officials warn they may feel the impact of these market trends once those contracts expire.

The PUC is advising consumers worried about their summer bills to contact their utility companies immediately to explore assistance options before unpaid balances accumulate.

Early outreach can open access to budget billing plans, Customer Assistance Programs, hardship funds, and specialized payment arrangements, PUC officials said.

Customers unable to resolve billing or service disputes with their utility provider can contact the PUC’s Bureau of Consumer Services at 1-800-692-7380 for assistance and consumer education.