Customers who depend on PECO for electricity and natural gas will see higher bills beginning in the new year.
The Pennsylvania Public Utility Commission (PUC) approved a joint settlement with the energy company to adjust its rates, which will take effect on Jan. 1.
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Through 2025, the average customer using 700 kilowatts an hour will see their bill increase by about 10%, or an added $13.58 per month, for an approximate total of $149.43, including taxes and surcharges. In 2026, another increase will add an additional 1.8%, or $2.70.
Monthly natural gas rates will rise by approximately 12.5%, or an additional $12.25. The exact amount depends on household energy use.
In its initial filing, PECO requested a 12.5% increase in electric bills, which would have brought the monthly rate for an average customer up by about $16.67. As part of the settlement, the company will not propose another rate adjustment until March 2026.
PECO says the hike will fund its $9.3 billion investment in improving its infrastructure and spur its transition to using "cleaner energy resources," such as electric vehicle chargers.
"We are pleased to have arrived at a balanced settlement and are committed to delivering enhanced reliability, further supporting cleaner energy and EV adoption, and providing support to our customers who need it the most," PECO president and CEO David Velazquez said in a statement.
The company also intends to add solar to its mix of renewable energy resources, purchasing 25 megawatts of solar power enough to support 3,000 homes. PECO serves approximately 1.7 million customers in southeastern Pennsylvania.