PECO is warning Philadelphians to expect higher electric bills this summer.

The utility company, a subsidiary of Exelon Corporation, is projecting a 3% increase – or about $5 extra a month for the average residential customer – beginning June 1, due to rising electricity prices.

Residents will see the change in the electric supply section of their bill, which makes up about half of the total payment. The hike is going to impact those on the default supply; PECO customers have the ability to shop for other suppliers, though those customers may also see an increase, utility representatives said. 

Company officials noted that PECO will not benefit from the higher bills, explaining that the utility passes on charges from PJM Interconnection, the regional grid operator, without mark-up.

PECO, under pressure from Gov. Josh Shapiro and others, scrapped a planned hike in April, less than three weeks after proposing it. The increase, which would have applied to the electric delivery portion of the bill, would have resulted in an additional $20 a month for the average Philadelphia household.

The more modest changes set to go into effect next month were driven by PJM, which establishes prices through twice-yearly auctions and provides electricity to 67 million customers in Pennsylvania, 12 other states and Washington, D.C.

Following the most recent auction in December, PJM Executive Vice President Stu Bresler said the results left “no doubt that data centers’ demand for electricity continues to far outstrip new supply.”

“The energy landscape has shifted, and supply is not keeping pace with growing demand, resulting in significantly higher energy bills for customers,” PECO said in a statement Tuesday. “This latest increase underscores a growing and unsustainable supply gap and the urgent need for PJM and the broader industry to do more to bring reliable, affordable electric supply onto the system. Doing business as usual is not an option.”

PECO encouraged people struggling to pay their electric bills to visit peco.com/help for information about assistance programs.

MORE: Why your electricity bill is so high and what Pennsylvania is doing about it

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