Proposed PECO Rate Hikes Could Hit Household Budgets Hard

Pennsylvania families could see noticeable increases in their energy bills if PECO’s proposed rate hike is approved by state regulators. The utility is seeking to raise electric rates by about 12.5% and natural gas rates by about 11.4% starting in 2027, which would add roughly $20 to electric bills and about $14 to gas bills each month for the average household in the Montgomery County, PA.

Lawmakers from both political parties are urging regulators to reject the increases, saying the burden on consumers—especially households already struggling with high living costs—is too great. A coalition of Bucks County Republicans pointed out that PECO’s net income climbed sharply following last year’s rate hike, raising questions about the necessity of another large increase.

Democratic lawmakers in Montgomery County have also spoken out, and some are backing new legislation aimed at making large energy users like data centers contribute more to the cost of grid upgrades, so everyday customers don’t shoulder the full burden.

PECO defends the proposal, saying the additional funds are needed to modernize infrastructure and protect against severe weather. Public hearings are planned before the Pennsylvania Public Utility Commission makes a final decision later this year.