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Under pressure from Pennsylvania Gov. Josh Shapiro, PECO has withdrawn its recent rate hike proposal filed with the state Public Utility Commission.
The Governor’s office said in a statement the move resulted from negotiations with the company and called it a “major win for the people of Pennsylvania,” adding that it “will prevent unreasonable price increases for 1.7 million 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,” Shapiro said in a statement. “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.”
PECO pointed to affordability issues for its ratepayers as the reason for the unprecedented withdrawal.
“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,” David Vahos, PECO president and CEO said in a statement. “We look forward to working with stakeholders across the region to find long-term solutions to high energy costs and to make needed investments at another time.”
PECO electricity customers in Philadelphia and its suburbs had been facing potential rate hikes of 12.5% beginning in 2027, while the company’s suburban natural gas customers were looking at an additional increase of 11.4%.
The company filed two requests to raise rates with the Pennsylvania Public Utility Commission on March 31. The proposal would have increased a typical electricity customer’s bill by $20.08 a month and a typical gas user’s by $14.52 a month. Some residents faced a combined $35 monthly rate hike.