PHILADELPHIA (WPVI) — Consumers will need to prepare to pay more to keep the lights on.
The Pennsylvania Public Utility Commission announced a price hike on supply rates on December 1, 2025.
PECO customers can expect to see a 6% increase to 11 cents per kilowatt hour.
RELATED: How you can save money on your next electric bill as rates rise
PPL is jumping 3.7% to nearly 13 cents per kilowatt hour.
The utility commission urges customers concerned about their bills to learn about switching providers for cheaper rates.
Customers can also call their electric company to discuss assistance programs that may be available to them.
For more information on comparing rates, visit PA Power Switch.
Read PECO’s full statement
“PECO works hard to deliver safe and reliable electricity and natural gas service at the lowest price possible. On December 1, 2025, customers saw an increase in the electric supply portion of their bill and a decrease in the natural gas supply portion. This is for the supply portion of their bill, which can be purchased through a competitive energy supplier. For customers not purchasing their electricity or natural gas from a competitive supplier, these costs are passed along directly to customers at exactly the cost that PECO pays.
Multiple factorsimpact energy prices and energy markets have seen sharp increases in the cost of both electricity and natural gas. PJM, the regional electric transmission organization, runs a competitive capacity auction to procure future electricity generation resources to ensure grid reliability. The PJM capacity market significantly influences electric supply prices. The most recent auction drove prices up further due to anticipated challenges with availability of resources to meet rising demand and decreased supply due to power plant retirements. Capacity prices are part of the supply charge and act as a type of insurance for grid reliability under changing circumstances, including increases in demand and extreme weather conditions.
PECO procures electricity on behalf of customers who are not shopping for electricity during spring and fall auctions. The impact of the capacity auction is blended into the overall supply that PECO procures on behalf of customers who are not shopping. Ensuring there is enough energy to meet increasing demand is a challenge that requires a holistic view of solutions, and we are ready to work with policymakers and stakeholders to determine the best approaches. While there are challenges, PECO plans to be part of the solution. Such a solution would include an “all of the above” commitment to building and preserving baseload electric generation capacity.
We want to make certain customers not only understand their bills, but also the resources available to lower energy usage and save money. We also want to ensure customers are well-informed about the factors affecting their bill so they can better understand rates and consider all potential ways to save energy and money. We encourage customers to visit peco.com/BillSupport where they will find additional information on understanding their energy bill, rates and more.”
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