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Potential PECO December 1st Rate Increase: What PA Residents Need to Know
As winter approaches an estimated 1.7 million PECO customers could see a spike in the utilities Price to Compare. Read on to understand how much the rate could jump up to, the recurring culprit for rising prices and how to find a lower electricity rate through Energy Choice.
Key Takeaways
- PECO has proposed raising its residential Price to Compare from 11.759¢ to 12.944¢ per kWh on December 1, 2026, an increase of about 11%.
- If approved by the Pennsylvania PUC, a home using 1,000 kWh a month could pay about $12 more per month in supply charges.
- Income-eligible households can get help through PECO's CAP, LIHEAP, MEAF, and LIURP. Budget Billing and payment arrangements are available to all customers.
Table of Contents
As winter approaches in southeastern Pennsylvania, local households are closely watching for a potential rise in utility expenses. For the nearly 1.7 million residential customers PECO serves across Philadelphia, Bucks, Chester, Delaware, and Montgomery counties, the utility may increase its Price to Compare on December 1, 2026.
If you receive electric service through PECO’s default rate, here is a complete breakdown of what could change, why rates are fluctuating, assistance options available for income-eligible families, and how to shop for alternative supply rates using Energy Choice.
By the Numbers: How Much Rates Could Increase
PECO adjusts its default Price to Compare (PTC) twice a year, on June 1 and December 1. Pending approval from the Pennsylvania Public Utility Commission, the rate could jump 11%
- Current Rate: 11.759¢/kWh
- Proposed Rate on 12/1: 12.944¢/kWh
- Net Difference: An increase of +1.185¢/kWh
Keep in mind that this adjustment applies specifically to the supply portion of your electricity bill—the actual cost of generating and procuring electricity on the open market. Delivery charges (the cost of maintaining grid infrastructure, power lines, and poles) are billed separately.
Monthly Bill Impact:
For an average southeastern Pennsylvania household consuming 1,000 kWh per month, let’s look at how much a residential electricity bill could increase by.
Here is how the supply charge breaks down before and after December 1:
Current Monthly Supply Cost = 1,000 kWh x $0.1175 = $117.50
New Monthly Supply Cost = 1,000 kWh x $0.1294 = $129.40
The supply adjustment will increase supply charges by an estimated $12 per month ($144 annually). During winter peak-usage months, when electric heating and heat pumps run continuously, households with higher usage (1,500+ kWh/month) could see total monthly bills rise by over $20.
Factors That Have Influenced the Increase
Several key regional grid factors and market pressures have contributed to rising electricity supply rates across southeastern Pennsylvania:
- PJM Capacity Market Surges: PECO does not generate power itself; it purchases electricity on wholesale energy markets and passes those exact costs to non-shopping consumers. Rates across the regional PJM Interconnection grid—which covers Pennsylvania and surrounding states—have spiked dramatically in capacity auctions due to older power plant retirements.
- Surging Electricity Demand: Growing regional power demand from data centers, expanding manufacturing facilities, and widespread adoption of electric vehicles has placed higher strain on grid reserves.
- Infrastructure Investment: Beyond supply costs, ongoing distribution grid modernizations to bolster storm resiliency, reduce outage durations, and upgrade aging infrastructure continue to affect delivery costs.
What is the Current PECO Price to Compare?
The current PECO price to compare is 11.76¢ per kilowatt-hour (kWh) effective June 1st, 2026 through November 30th, 2026.
The “price to compare” (PTC) is a benchmark rate set by your local utility company that allows you to compare their standard electricity rate with offers from other retail suppliers. If a supplier’s rate is lower than the PECO price per kWh and the plan terms make sense for your household, switching may help lower the supply portion of your bill.
| Price to Compare Effective Date Range | Price to Compare (rate per kWh) |
|---|---|
| December 1st, 2026 - May 31st, 2027 | 12.94¢ |
| June 1st, 2026 - November 30th, 2026 | 11.76¢ |
| December 1st, 2025 - May 31st, 2026 | 11.02¢ |
| 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 - December 31st, 2024 | 9.27¢ |
| September 1st, 2024 - November 30th, 2024 | 9.24¢ |
| June 1st, 2024 - August 31st, 2024 | 9.28¢ |
| January 1st, 2024 - May 31st, 2024 | 8.98¢ |
Compare PECO Electricity Rates
Assistance Programs for Those Who Are Financially Vulnerable
If you or someone you know is struggling to keep up with utility payments, Pennsylvania offers robust hardship and assistance programs designed to keep power on and make bills manageable:
- Customer Assistance Program (CAP): PECO’s CAP offers income-eligible residential customers a discounted monthly bill or fixed credit based on household income and electricity usage.
- Low Income Home Energy Assistance Program (LIHEAP): A federally funded program run by the state that offers cash grants to help income-eligible households pay heating bills, plus crisis grants for heating emergencies such as a shutoff notice. The 2026–2027 season runs from November 2, 2026, through April 23, 2027. Apply online through COMPASS or call the LIHEAP Client Helpline at 1-866-857-7095.
- MEAF / Hardship Funds: The Matching Energy Assistance Fund (MEAF) provides emergency cash grants to low-income residential customers facing financial hardship or termination of service.
- Low Income Usage Reduction Program (LIURP): Provides free weatherization services, home energy audits, and energy-efficient appliance upgrades to lower energy consumption permanently for income-qualified families.
- Flexible Payment Arrangements & Budget Billing: PECO lets customers spread seasonal usage spikes into predictable monthly amounts with Budget Billing, or set up short-term payment plans to pay down overdue balances over time.
If you’re behind on your bill or have received a shutoff notice, contact PECO as soon as possible. Many of these programs work best before a balance grows.
Take Control: How to Shop for a Better Rate
Thanks to Pennsylvania’s Energy Choice deregulation, you are not locked into PECO’s default Price to Compare for your electricity generation. You can shop for competitive fixed rates from state-licensed Electric Generation Suppliers (EGS) without changing your power delivery. PECO will continue to deliver the electricity, service the power lines, and handle emergency repairs.
Using price comparison sites makes shopping fast and simple:
- Find Your Current Price to Compare: Look at your most recent PECO bill to locate your standard supply rate (Price to Compare in cents/kWh). Starting December 1, the proposed rate is 12.944¢ per kWh. This is the baseline price you want to beat.
- Go to Our Marketplace: Enter your ZIP Code to browse active, verified supplier plans available in the PECO service territory.
- Compare Fixed-Rate Plans: Look for fixed-rate contracts that lock in your price per kWh below PECO’s current or upcoming Price to Compare. A fixed rate locks in your price per kWh for the full contract term, so it won’t change when PECO’s default rate does.
- Check Terms and Conditions: Filter out plans with hidden monthly fees or steep early termination penalties. Pay attention to contract duration (e.g., 6, 12, or 24 months). Also check what rate applies when the term ends, since some plans roll into a variable rate that can rise.
- Enroll Online in Minutes: Select your preferred plan and complete the short online registration form using your 10-digit PECO electric account number.
Once enrolled, the new rate will automatically apply seamlessly to your next billing cycle—with no interruption in service and no change to how you pay your regular consolidated PECO bill.