Credit: PECO.
PECO is proposing significant rate increases that would affect households across Philadelphia’s suburbs starting in 2027, according to reporting.
If approved by state regulators, electricity bills could rise by about 12.5%, while suburban natural gas customers may see an 11.4% increase. For a typical household, that translates to roughly $20 more per month for electricity and about $14.50 more for gas.
According to the article, the utility says the increases are necessary to fund major infrastructure upgrades. PECO is seeking $429 million for electric system improvements and $81 million for natural gas projects, part of a broader $10 billion investment plan over the next five years. These upgrades include modernizing the power grid, replacing aging gas pipelines, and preparing for growing demand from electric vehicles, renewable energy, and data centers.
Company officials argue that delaying these investments would ultimately cost customers more. They also say improvements are needed to maintain reliability as severe weather events become more frequent. PECO points to recent performance data showing fewer outages as evidence that past investments are paying off.
To ease the burden, the company has proposed spreading some of the increases over six years, which it estimates could save customers $88 million in 2027 alone.
Still, the proposal is likely to face scrutiny. Consumer advocates and critics question how much profit utilities should earn on infrastructure spending. PECO is requesting a return on equity of 10.95%, though some experts argue a lower range would be more appropriate.
The Pennsylvania Public Utility Commission will review the request through a formal process before making a final decision. In the meantime, suburban customers should prepare for the possibility of higher monthly utility bills in the coming years.
