PECO Scraps 12.5% Rate Hike in Philly After Shapiro Talks

PECO, the dominant utility serving Philadelphia and much of southeast Pennsylvania, announced Thursday it is withdrawing filings with the Pennsylvania Public Utility Commission for rate increases set to begin in 2027[1][3][4]. The proposal targeted residential electric bills with a 12.5% average hike — $20.08 more per month — and gas bills with an 11.4% jump of $14.52, totaling about $34 extra for the typical household[1][2][3][5]. Filed last month amid criticism from customers and local leaders, the plan aimed to fund electric and natural gas system modernizations[1][3]. Gov. Josh Shapiro played a pivotal role in the about-face, with PECO citing 'conversations' with the governor alongside input from customers, community partners and stakeholders[1][2]. 'Against that broader economic backdrop, and taking into consideration conversations with Governor Josh Shapiro, as well as input from customers... PECO reassessed the cumulative impact,' the company stated in a press release[1]. Officials acknowledged that pushing forward would add strain on ratepayers already grappling with elevated energy supply costs and inflation[1]. The decision delivers immediate relief to PECO's 1.7 million customers across Bucks, Chester, Delaware, Montgomery and Philadelphia counties, where utility bills already rank among the nation's highest[3]. No timeline was given for refiling, as PECO shifts focus to affordability[2][3]. Consumer advocates hailed the move, with pressure mounting since 6abc first reported the proposal[4].