Paying your monthly electricity bill can be tough, especially when rates are high. The average electricity bill in Philadelphia is among the highest in PA and above the national average.
With increasing costs, how can Philly residents keep their lights on without breaking the bank? This guide explains Philadelphia’s electricity rates, gives tips to reduce your bill, and teaches how to find better prices on ElectricityRates.com.
Implementing a few simple strategies, you can take charge of your energy costs and save on your monthly bills. We’ll explore the history behind Philly’s electricity prices. Compare current rates to state and national averages, and give you easy ways to save on energy rates.
Table of Contents
| Plan | Rate Per kWh |
|---|---|
| Direct Energy Live Brighter ® 13 13 Months | 7.49¢ Select |
| Public Power Electric 10 Month Standard Fixed Rate 10 Months | 7.89¢ Select |
| SmartEnergy Green 12 Month Fixed Rate 12 Months | 7.9¢ Select |
| Direct Energy Live Brighter 36 36 Months | 9.19¢ Select |
| Constellation 36 Month PowerPlug Plan 36 Months | 9.69¢ Select |
- 100% Renewable Sources
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Breaking Down the Average Electricity Bill in Philadelphia
You are probably curious: what is the average electric bill in PA? To understand electric rates in Philadelphia, we must travel back to 1996. It was when the City of Brotherly Love adopted electricity deregulation, known as Energy Choice.
Energy Choice allows residents and business owners to shop for power from competitive energy suppliers. Now, you are not solely relying on traditional utilities like PECO for power. The goal was to increase competition and reduce the average electric bill in Pennsylvania.
Initially, deregulation lowered rates across Pennsylvania. But Philly’s electricity prices have increased faster than many other areas over time. According to the Public Utility Commission, PECO’s prices increased by 50% from 2007 to 2021.
According to the U.S. Energy Information Administration, the average Philadelphia household paid 19.7 cents per kilowatt-hour for electricity in early 2023. That’s over 1 cent per kilowatt-hour higher than the average electric rates in Pennsylvania. And 3 cents above the national average.
This means the average electric bill in Philadelphia was $200 per household. Compare this to $160 statewide and $117 nationally. Philly’s electricity rate was 19.7 cents/kWh, Pennsylvania’s was 18.4 cents/kWh, and the U.S. benchmark was 16.8 cents/kWh.
Even though Pennsylvania is the number two largest net energy supplier to other states, it is right behind Texas. Here are the key factors causing above-average energy rates in Philadelphia:
- High congestion costs from transmitting power to a dense, urban area
- Rising natural gas costs, which impact generation
- Aging grid infrastructure and closing coal mines driving up distribution costs
- PECO’s rates are increasing faster than many PA utilities
Understanding the “why” behind Philly’s high energy costs can help residents make informed choices about managing electricity bills.
How To Lower Your Philly Energy Bill
While Philadelphia’s high electricity rates are largely out of your control, there are ways to reduce your monthly power bills. Here are tips to lower costs, reduce energy usage and increase savings:
Shop for Better Rates
The primary way to lower electricity bills in Philly is to shop for competitive supplier rates on sites like ElectricityRates.com. Compare PA electric companies and average electric rates in Philadelphia. Plus, see plans from multiple suppliers for significant savings versus staying on the default utility rates. According to the Pennsylvania Public Utility Commission, residents switching to alternative suppliers saved an average of $97 annually.
Increase Energy Efficiency
Simple upgrades and habit changes can reduce energy consumption and lower monthly bills. Replacing old appliances with ENERGY STAR models, swapping incandescent bulbs for LEDs, and adding insulation all bring long-term savings.
Smart thermostats that adjust temperature when you’re away provide an easy way to save up to 10% on bills. Unplugging devices when not in use and running full loads of laundry can bring additional savings.
Use Less Energy
In addition to efficiency upgrades, Philadelphians can take steps to actively reduce energy usage and associated costs:
- Set the water heater to 120F to save electricity and money
- Run dishwasher and laundry only when full
- Consider introducing meatless Mondays or eating less energy-intensive animal products
- Replace inefficient older HVAC units
- Upgrade windows and seal air leaks to improve insulation
Even minor behavior and usage changes can make a dent in electricity consumption.
Explore Bill Payment Options
Utilities like PECO offer bill payment programs that add flexibility. Budget billing averages costs over 12 months to avoid seasonal spikes. Prepay lets customers pay as they go instead of a monthly bill. Extending due dates by a few days can avoid late fees.
Seek Bill Assistance
Several options exist if you need help paying your electric bill in PA.
Qualifying low-income households can receive grants for bill payment through the Low Income Home Energy Assistance Program (LIHEAP). PECO and other electricity suppliers offer multiple assistance programs, including bill discounts and forgiveness for overdue balances.
Programs administered by utilities and state/local agencies provide audits, rebates, and financing options for efficiency upgrades that lower electric usage. For example, the Philadelphia Energy Authority offers homes free energy assessments and rebates on improvements.
Seek out federal tax credits and local incentives for high-efficiency heat pumps, smart thermostats, insulation, air sealing, and other electric-saving home improvements. Participating in such programs can help reduce your electric bill in PA, not just in Philly.
With a mix of smart energy usage, cost comparisons, and payment flexibility, Philly residents can cut electricity costs.
Stay Ahead of Rising Rates
Philadelphia residents face steep electricity costs due to market deregulation, an aging grid, and other factors largely beyond their control. However, arming yourself with knowledge and resources can lead to savings and finding an energy company that best fits your needs.
By comparing suppliers, upgrading your efficiency, using less energy, and considering assistance programs, you can reduce costs even with increasing rates. Become an informed electricity shopper and user to take charge of your bill.
ElectricityRates.com empowers Philly households to find savings fast. Just plug in your ZIP Code to compare up-to-date rates from over 20 local suppliers. Evaluate prices, contract lengths, renewable options, and more to choose the best plan for your home.
Don’t let rising utility costs surprise you each month. Visit ElectricityRates.com today to compare competitive plans and start saving on your Philadelphia electricity.