PECO filed a request Monday with the Pennsylvania Public Utility Commission to increase delivery costs for electric and natural gas customers beginning in 2027.
The utility, which is owned by Chicago-based Exelon Corp., is seeking $429 million for electric system investments and $81 million for its natural gas network.
PECO officials said the request is driven by high demand and a five-year, $10 billion plan to modernize the grid against extreme weather and aging equipment.
If approved, a typical residential electric customer using 700 kilowatt-hours per month would see their bill rise by $20.08, or 12.5 percent, in per month in 2027. It would be partially offset starting in April 2027 by an $88 million reduction through two cost-recovery mechanisms, lowering the monthly impact by $2.30.
Typical natural gas customers would also see an increase of $14.52, or 11.4 percent per month for residential and an increase of $33.72, or 6.5 percent per month for small commercial customers.
Candice Womer, a spokesperson for PECO, said the request to regulators, who will review the plan before PECO can move forward, is a proposal “we feel very strongly about and have intentionally built into its structure: balancing continued investment in safe, reliable energy infrastructure with meaningful customer relief and affordability support.”
The proposal comes after rate hikes at the start of 2025, which saw electric costs rise by 10 percent and natural gas by 12.5 percent.
The utility, which serves 1.7 million electric and 553,000 natural gas customers in the Philadelphia region, is preparing for increased demand from electric vehicle charging, solar energy, and working on battery storage.
Company officials said the increased costs would pay for stronger poles, tree-resistant overhead cables, and drones for damage assessment. On the gas side, the company is looking to replace all cast iron and bare steel mains with plastic piping in the coming years.
Doug Oliver, PECO’s senior vice president for governmental, regulatory, and external affairs, told reporters that while data centers are planning to enter the region, the utility is using special agreements backed by lines of credit to ensure the centers’ costs do not fall on existing customers.
“We understand that any increase in costs is difficult for families and businesses, and we don’t take this request lightly,” said PECO President and CEO David Vahos. “Our customers deserve a system they can count on – especially as severe weather grows more frequent.”
The filing comes after PECO reported $814 million in profit last year.
Last month, Exelon’s chief financial officer noted the company had a perfect track record of financial outperformance.
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Brendan Taylor, vice president for regulatory policy and strategy, told this news organization that 90 percent of PECO’s revenues are reinvested into the system.
Oliver highlighted that the utility has faced a 400 percent increase in supply costs and remains “very aware” of economic pressures on families.
Rising gas prices and tariffs are among the economic stresses of families. Polling has shown increased financial anxiety among Americans.
The filing includes two “rate tools” intended to spread costs over time, which PECO said will deliver more than $290 million in savings over the first six years.
PECO officials said they will offer one-time grant programs for eligible customers and continue to advocate for the Low Income Home Energy Assistance Program (LIHEAP), which is a federal program administered by the states. President Donald Trump’s administration has sought to end the program and made cuts. A late 2025 government shutdown delayed its start for this past winter.
PECO officials stated they are also looking at long-term policies to reduce transmission costs at the state level.
