PECO withdraws proposed 12.5% rate hike after ‘conversations' with Gov. Shapiro

PECO announced Thursday it will withdraw a proposed rate hike that would have increased customers’ utility bills by about $34 per month.

In a news release sent on April 16, 2026, PECO said it decided to withdraw its previously filed electric and natural gas distribution rate review filings with the Pennsylvania Public Utility Commission (PUC) in an effort to “prioritize customer affordability,” and after “taking into consideration conversations with Gov. Josh Shapiro,” customers and stakeholders.

“While our filing with the PUC would have provided needed improvements in safe and reliable energy delivery, we recognize that Pennsylvanians are struggling with basic necessities like gas, food, and energy and have decided to withdraw our proposal,” said David Vahos, PECO president and CEO.

Shapiro applauded PECO’s decision to not move forward and called it a major win for Pennsylvanians.

“PECO’s proposed rate case would have increased Pennsylvanians’ utility bills, but I demanded that their CEO put customers first and withdraw their rate hike request. PECO listened, and I appreciate that the company is willing to prioritize affordability at a time when Pennsylvanians are worried about rising costs. This withdrawal is the right step for consumers – and we’re going to keep fighting to make sure utility companies are focused on keeping costs down while maintaining safe and reliable service,” Shapiro said in a statement.

The proposal, which would have taken effect in January 2027, was calling for a 12.5% rate increase per month for residential electric customers and an 11.4% increase per month for residential natural gas customers.

PECO had previously claimed the funding increase would enable it to “expand support programs and advance the services and experience for its customers,” as it would have recovered an additional $429 million for its electric investments and $81 million for its natural gas investments.

Following the withdrawal announcement, the utility company said it will continue to near-term investments focused on system safety, essential maintenance, operational integrity, and reliability standards customers depend on every day.