Why Is My PECO Bill Going Up? A 2026 Rate Guide for PA Customers

Why is my PECO bill going up? It's the question homeowners across southeastern Pennsylvania have been typing into Google since their electric bills started climbing last year, and the honest answer is not one factor but several stacked on top of each other.

PECO has raised rates more than once since the start of 2025, and more adjustments are already filed for later in 2026. This guide breaks down what changed, why it changed, and what residential customers can actually do about it.

Key Takeaways

• Rising electricity rates: Effective December 1, 2025, PECO’s residential Generation Supply Adjustment (GSA), the largest part of the Price to Compare (PTC), will increase by about 7.7% to $0.10237 per kWh. This change will increase electricity bills, compounded by an earlier 10% distribution rate hike.
• High capacity costs: Electricity rates have risen in response to a surge in capacity costs in the PJM Interconnection grid, which PECO is required to pass on to customers. This surge is driven by growing demand for electricity from data centers and electric vehicle charging stations. As power plants are retired, these demands continue to rise.
• Future predictions: Wholesale energy costs will be passed to residential customers, which could cause electricity bills to rise by about 10% between 2025 and 2026.

Pennsylvania residents served by PECO faced an adjustment to their electricity bills as the utility changed rates on December 1, 2025. These changes primarily affected PTC, which is the benchmark rate for the electricity supply portion of your bill.

Here is what PECO customers should know about the rate increase, the reasons behind the surge, and steps that can reduce their monthly costs.

Why Is My PECO Bill Going Up in 2026?

Your PECO bill has two main parts: a supply charge and a delivery charge. The supply charge reflects the cost of electricity purchased on your behalf. The delivery charge covers PECO's costs to deliver that electricity to your house, including the wires, meter, and equipment connected to the grid.

Both portions have gone up, and both are approved by the Pennsylvania Public Utility Commission before they take effect.

The bigger driver right now is the supply side. PECO doesn't generate electricity; it purchases power on the wholesale market and passes that cost through to residential customers. When market prices change, so does your bill, even if your household hasn't used a single extra kWh.

How Much Are PECO Rates Increasing?

Here's the breakdown, in plain numbers:

• December 1, 2025: PECO's Price to Compare increased 7.7%, bringing the residential rate to $0.11129 per kWh.
• June 1: Rates are set to rise again by approximately 3%, part of the twice-yearly cycle where electric supply costs are adjusted based on market prices.
• 2025–2026 total: Residential customers may see total bills rise by roughly 10% across the two-year period, once distribution charges are factored in alongside the generation increases.

PECO has also implemented separate rate increases to fund reliability improvements and infrastructure investments, including grid upgrades meant to reduce outages and support future demand.

Those costs show up on the delivery portion of your bill, not the supply portion, and they're a different issue from the capacity price surge described below.

The Rise in Price to Compare (PTC) Rates

The Price to Compare (PTC) is primarily composed of two parts: the Standard Generation Charge and the Transmission Charge. The upcoming change involves the Generation Supply Adjustment (GSA), often labeled as the generation charge on your bill, which is the most significant component of the PTC.

PECO has filed with the Pennsylvania Public Utility Commission (PUC) to adjust this rate for the six months spanning December 1, 2025, through May 31, 2026.

On December 1st, the new PTC for residential customers (rate classes R and RH) will be $0.11129 per kWh. This represents an increase of approximately 7.7% compared to the current PTC of $0.1040 per kWh.

What's Driving Higher Capacity Prices in Pennsylvania

Capacity prices have increased significantly due to supply-and-demand issues in the PJM Interconnection capacity market, the regional grid operator that manages electricity across Pennsylvania and a dozen neighboring states.

PJM runs an auction that pays power plants to guarantee they can generate electricity when demand peaks, in the hottest summer months and coldest winter nights.

The primary driver behind these significant price adjustments is a dramatic surge in capacity costs within the PJM Interconnection region, which manages the power grid across Pennsylvania and multiple Mid-Atlantic states.

• Capacity costs explained: These costs are fees paid to power plants to ensure there is enough electricity generation capacity to meet peak demand, even on the hottest or coldest days.
• The 2025-2026 surge: The PJM capacity auction from 2025 to 2026 caused a surge in costs. This increase was caused by power plants being retired, in addition to growing electricity demand from data centers, electric vehicles and expanding manufacturing facilities.

PECO doesn't set these capacity prices. PECO pays whatever the auction clears at, and that cost is passed straight through to residential customers.

It's one of the many factors squeezing household budgets across the state right now, and it isn't unique to one company. Other Pennsylvania utilities are seeing the same pressure from the same regional grid.

PECO is an energy distributor that does not produce energy itself. As a result, it is required to pass on wholesale capacity costs to its customers through the Generation Supply Charge.

Other Factors That Push Your Electric Bill Higher

Rate increases explain part of a higher bill, but not all of it. A few other things contribute to what you actually pay each month:

• Seasonal weather. Summer months and cold snaps both increase energy use, since heating and cooling account for the largest share of most households' energy use. A higher price per kWh compounds on top of that seasonal rise, which is why heating bills and summer bills tend to be the ones people notice most.
• Older or malfunctioning appliances. Aging HVAC systems, water heaters, and refrigerators use more energy than efficient models to do the same job, which raises your bill even if your habits haven't changed. Our guide to cutting down appliance energy usage covers where most of that waste happens.
• Higher price per kWh, same usage. Even a household with stable consumption levels will see a bigger bill once the rate per kWh goes up. This is the portion of the increase you can't control through behavior alone.

How to Control Costs and Save Money on Your PECO Bill

You can't change what PECO pays for capacity at auction, but you do have options to control costs on your end.

Compare Electric Suppliers

Pennsylvania’s Energy Choice program enables consumers to compare offers from licensed suppliers on the Pennsylvania Public Utility Commission’s (PUC) official website, PA Power Switch. However, the contracts may contain early termination fees or monthly service charges.

Ask about budget billing

PECO offers a budget billing plan that averages your annual energy use into a flatter, more predictable monthly payment, which helps if seasonal spikes are the main source of stress on your household budget.

Reduce energy use where it matters most

Small changes add up. Our guides on 10 ways to keep cool using less electricity and staying cool without turning on the AC cover practical, low-cost steps for the months that hit hardest.

Go solar

Although changing electric suppliers can reduce your rates, it is not a permanent solution. A solar power system offers homeowners the opportunity to avoid rising PECO energy rates. Solar power offers true energy independence, in some cases eliminating PECO utility costs completely.

For business owners facing the same rate pressure, see how TerraSol helps local businesses control energy costs and why we're recognized as the region's top commercial solar installer.

If you're planning new construction or a major renovation, creating an energy efficient building from the ground up avoids a lot of these costs entirely. And if saving money is only part of the goal, going green covers the environmental side of the equation too.

Talk With Solar Experts Now!

Rate increases aren't going away. PECO has more capacity cost phase-ins scheduled through the rest of 2026, and the company has already filed for further hikes starting in 2027.

Whether you switch suppliers, apply for assistance programs, or start planning for solar, the first step is understanding exactly why your PECO bill is going up in the first place.

Frequently Asked Questions

Why is my PECO bill going up in 2026?

Mainly because PECO's Price to Compare rose 7.7% in December 2025 and is set to rise further, driven by higher capacity costs from the PJM grid. A separate, smaller distribution rate increase is also funding infrastructure and reliability upgrades.

How much will my PECO bill increase in 2025–2026?

Residential customers may see total electricity bills rise by roughly 10% across the two-year period, combining supply and delivery increases.

What is PECO's Price to Compare?

The Price to Compare (PTC) is the default rate PECO charges for electric supply if you don't choose a competitive supplier. It's made up mostly of the Generation Supply Adjustment and updates several times a year based on market prices.

Can I switch electric suppliers to lower my PECO bill?

Yes. PECO still delivers your electricity and handles outages no matter who supplies it. You can compare a competitive supplier's rate against PECO's PTC on PA Power Switch, though delivery charges stay the same either way.