PECO June 2026 Rate Hike: What Philadelphia Area Ratepayers Need to Know

The Breakdown: What Is Driving the June 1 Increase?

Despite earlier discussions and intense pushback regarding proposed structural rate hikes, PECO default service electricity rates are going up at the start of the summer billing season. The Pennsylvania Public Utility Commission (PUC) has confirmed that utility default generation rates across the state will adjust upward on June 1, 2026.

For residential PECO customers who do not shop around for an alternative supplier, the Price to Compare (PTC) will rise by roughly 5%, moving to 11.572¢ per kWh. This adjustment will directly hit the “Generation/Supply” portion of customer bills—the actual cost of the electricity consumed—which PECO passes along to consumers without a markup. The new baseline will remain in effect through November 30, 2026.

The PJM Market Factor: Why Everyone’s Bills Are Rising

The primary culprit behind the June 2026 rate hike is the PJM Interconnection market. The 2025/2026 PJM capacity auction saw prices surge by over 800% in some regions. PJM manages the power grid for 13 states, including Pennsylvania. Recent capacity auctions—the mechanism that ensures there is enough generation supply to meet future peak demand—reached record-breaking price caps, driven by:

1. Plant Retirements: Older coal and gas plants are closing faster than new renewables are coming online.
2. Data Center Demand: The explosion of AI and data centers in the Mid-Atlantic is putting unprecedented strain on the grid.
3. Neighboring Markets: Nearby markets like Maryland (BGE) and New Jersey have already felt the sting of these PJM increases, often leading to double-digit bill hikes for residential customers.

Why You Should Still Lock In a Fixed Rate

With default utility supply costs hitting 11.572¢/kWh for residential households and topping 10.72¢/kWh for small businesses, relying on PECO’s default rate ahead of peak summer heat leaves your wallet vulnerable. High temperatures mean air conditioning units will be running non-stop, compounding the impact of this 5% to 15% rate jump.

The solution is to participate in Pennsylvania’s Energy Choice program. By shopping for a competitive, third-party electricity provider, you can secure several advantages:

By choosing a competitive electricity provider, you can lock in a set price for 12, 24, or even 36 months.

• Rate Predictability: Choose a fixed-rate plan for 12, 24, or 36 months so your supply charges stay completely identical, regardless of grid volatility.
• Immediate Savings Potential: Many competitive suppliers are currently offering fixed rates lower than PECO’s June 1 Price to Compare, allowing you to bypass the increase.
• No “Surprise” Hikes: While PECO’s infrastructure charges are regulated, their supply costs are passed through directly. A fixed rate shields you from that quarterly roller coaster.

Struggling with Your Bill? Don’t Wait.

If you are already finding it difficult to keep up with your PECO payments, there are programs designed to help. You do not need to wait for a rate hike to seek assistance with paying your electricity bill:

• LIHEAP: The Low-Income Home Energy Assistance Program provides federally funded grants to help with heating costs.
• PECO CAP (Customer Assistance Program): Offers a monthly credit on your bill based on your household income.
• UESF (Utility Emergency Services Fund): A “grant of last resort” for customers who are facing a shut-off and have exhausted other options.
• LIURP: PECO’s Low-Income Usage Reduction Program provides free weatherization and energy audits to help lower your actual consumption.

The Bottom Line

The withdrawal of the 2026 rate hike is a win for Pennsylvania consumers, but it isn’t a reason to become complacent. Between shifting PJM market costs and the inevitable return of infrastructure requests, the best way to protect your wallet is to take control of your rate now and utilize the assistance programs available to you.