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Your Electric Bill is Rising: Understanding PECO's Rate Increase on December 1, 2025
Key Takeaways
- Effective December 1, 2025, PECO's residential Generation Supply Adjustment (GSA)—the largest part of the Price to Compare (PTC)—will increase by approximately 7.7% to $0.10237 per kWh, contributing to an overall increase in electricity bills, compounded by an earlier 10% distribution rate hike.
- The primary cause is a dramatic surge in Capacity Costs within the PJM Interconnection grid, which PECO is required to pass on to customers. This surge is driven by factors like the retirement of older power plants and rapidly growing electricity demand from sources like data centers and vehicle electrification.
- Due to wholesale energy cost increases being passed through, residential customers could see their total electricity bills rise by an average of 10% over the two years spanning 2025 and 2026.
- Customers can mitigate the increase by using Pennsylvania's Energy Choice program to shop for a fixed-rate plan from a competitive supplier, or by seeking financial assistance through programs like CAP, LIHEAP, MEAF, or the PECO Customer Relief Fund (CRF).
Table of Contents
Pennsylvania residents served by PECO are once again facing an adjustment to their electricity bills as the utility implements its next scheduled rate change on December 1, 2025. These changes primarily affect the Price to Compare (PTC), which is the benchmark rate for the electricity supply portion of your bill.
Here is a breakdown of what PECO customers need to know about the upcoming rate increase, the reasons behind it, and the proactive steps you can take to manage your monthly costs.
Understanding the New PECO Price to Compare (PTC)
The Price to Compare (PTC) is primarily composed of two parts: the Standard Generation Charge and the Transmission Charge. The upcoming change involves the Generation Supply Adjustment (GSA), often labeled as the generation charge on your bill, which is the most significant component of the PTC. PECO has filed with the Pennsylvania Public Utility Commission (PUC) to adjust this rate for the six months spanning December 1, 2025, through May 31, 2026.
Starting December 1st, the new PTC for residential customers (rate classes R and RH) will be $0.11129 per kWh. This represents an increase of approximately 7.7% compared to the current PTC of $0.1040 per kWh.
We recommend checking PECO’s official Price to Compare page for the most current information and to confirm any rate quotes.
| Price to Compare Effective Date Range | Price to Compare (rate per kWh) |
|---|---|
| June 1st, 2025 - November 30th, 2025 | 10.40¢ |
| March 1st, 2025 - May 31st, 2025 | 9.24¢ |
| January 1st, 2025 - February 28th, 2025 | 9.29¢ |
| December 1st, 2024 - February 28th, 2025 | 9.27¢ |
| September 1st, 2024 - November 30th, 2024 | 9.24¢ |
| June 1st, 2024 - August 31st, 2024 | 9.28¢ |
| January 12th, 2024 - June 4th, 2024 | 8.98¢ |
| September 6th, 2023 - January 11th, 2024 | 9.67¢ |
| June 1st, 2023 - September 5th, 2023 | 10.12¢ |
| December 26th, 2022 - May 31st, 2023 | 9.85¢ |
| December 19th, 2022 - December 25th, 2022 | 7.54¢ |
| December 5th, 2022 - December 18th, 2022 | 9.85¢ |
| October 3rd, 2022 - December 4th, 2022 | 8.50¢ |
| May 9th, 2022 - October 2nd, 2022 | 7.54¢ |
| May 2nd, 2022 - May 8th, 2022 | 8.36¢ |
| March 7th, 2022 - May 1st, 2022 | 7.06¢ |
| December 6th, 2021 - March 6th, 2022 | 7.02¢ |
| September 6th, 2021 - December 5th, 2021 | 6.60¢ |
| June 7th, 2021 - September 5th, 2021 | 6.40¢ |
| March 1st, 2021 - June 6th, 2021 | 6.27¢ |
| December 7th, 2020 - February 28th, 2021 | 6.43¢ |
| September 7th, 2020 - December 6th, 2020 | 6.37¢ |
| June 1st, 2020 - September 6th, 2020 | 6.40¢ |
| April 6th, 2020 - May 31st, 2020 | 6.60¢ |
| March 2nd, 2020 - April 5th, 2020 | 6.59¢ |
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The Impact on Your Monthly Bill
This new rate will translate into a higher total electricity bill, especially as winter usage naturally increases. Over the two years spanning 2025 and 2026, residential customers could see their total electricity bills increase by an average of 10% due to wholesale energy cost increases being passed through in the generation portion of the bill.
Already in 2025 PECO implemented a distribution rate increase of 10% that took effect at the beginning of 2025. (A first to happen in over a decade for PECO.) And a rate increase that took effect June 1, 2025, bringing the default residential Price to Compare for customers to 10.4¢ per kilowatt-hour (kWh). This second rise in the PTC will contribute to this upward trajectory, making the winter heating season more expensive for default service customers.
Why Are Rates Increasing? The Role of Capacity Costs
The primary driver behind these significant price adjustments is a dramatic surge in capacity costs within the PJM Interconnection region, which manages the power grid across Pennsylvania and multiple Mid-Atlantic states.
- Capacity Costs Explained: These are fees paid to power plant owners to ensure there is enough electricity generation capacity available to meet peak demand, even on the hottest or coldest days.
- The 2025-2026 Surge: The most recent PJM capacity auction for the 2025-2026 period resulted in a huge increase in these costs. This unprecedented jump is primarily due to factors like the retirement of older power plants (especially coal-fired facilities), combined with rapidly growing electricity demand from sources like data centers, vehicle electrification, and manufacturing expansion.
PECO, an energy distributor that does not generate the electricity itself, is required to pass these higher wholesale capacity costs on to its customers through the Generation Supply Charge.
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Taking Control: Your Options for Saving Money
Higher rates are a financial concern, but Pennsylvania’s Energy Choice program offers a powerful way for consumers to combat rising utility costs.
- Lock in a Fixed Rate: Many competitive suppliers offer fixed-rate plans that lock in a single price per kWh for a set period (e.g., 6, 12, or 24 months). By securing a fixed rate lower than PECO’s new PTC, you can gain price certainty and protect your budget from future utility rate increases.
- Compare Current Offers: You can compare current offers from licensed suppliers on the Pennsylvania Public Utility Commission’s (PUC) official website, PA Power Switch or directly on our marketplace. Always check the contract details for early termination fees or monthly service charges.
- Customer Assistance Program (CAP): This program provides eligible low-income PECO customers with a monthly credit on their electric bills and may also offer debt forgiveness.
- LIHEAP (Low Income Home Energy Assistance Program): A federally funded program that provides cash grants for heating bills.
- PECO Customer Relief Fund (CRF): A temporary, one-time assistance fund providing up to a $500 credit for eligible, limited to middle-income customers (generally 151% to 300% of the Federal Poverty Level). Applications for this fund are typically available in the latter half of the year.
- Matching Energy Assistance Fund (MEAF): PECO’s hardship fund that provides emergency financial assistance.
1. Shop for a Competitive Electricity Supplier
Since the rate increase affects the Generation Supply Charge (the PTC), you have the option to switch this portion of your service to an independent electric supplier.
2. Utilize Financial Assistance Programs
If you are struggling to pay your electricity bill, PECO and various state programs offer resources to help:
For more information and to check your eligibility for these and other programs (like payment arrangements or budget billing), visit the assistance sections on the PECO website or contact the Pennsylvania PUC.
Compare Electricity Rates in Cities Served by PECO
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