Rate increases · PECO Energy
Why is my PECO Energy bill going up in 2025–26?
Your PECO Energy bill went up, and it's not your imagination or just the AC. Higher wholesale supply costs. PA's Price to Compare reflects what the utility pays to buy power; the PUC doesn't break out the PJM capacity piece by name, though it's the regional driver.
The key facts
- PECO Energy's Price to Compare is now 11.759¢/kWh (from 11.024¢) — about 6.7% higher, effective June 1, 2026.
- For a typical 700 kWh home, that's roughly $5.15 more a month (estimate — your bill depends on your usage).
- Exelon reported about $2.5 billion in 2024 profit — but not from this supply charge (it's a pass-through). See the PECO Energy Report Card →
Source: PA PUC — summer 2026 price changes. Rates reset on a schedule — confirm the current figure before relying on it.
What's actually driving it
Think of the PJM capacity market as a retainer fee. Every year the regional grid operator pays power plants to promise they'll be available on the worst-demand days — the January cold snap, the August heat wave — even if they sit idle the rest of the time. You're not paying for electricity here; you're paying to keep the plants on call. That retainer spiked, and it flows onto the supply line of your bill.
The price went from $28.92/MW-day to $269.92 (about 830%), and the latest auction cleared even higher at $329.17 — the cap. Why? Electricity demand is rising fast — led by data centers, plus electrification and economic growth. Older power plants are retiring faster than new ones can connect to the grid. Source: PJM Interconnection — 2026/2027 Base Residual Auction results (July 2025).
Is PECO Energy pocketing this?
This lands on the supply (generation) part of your bill, which on a default/standard rate is a pass-through — your utility buys the power and bills it through with no markup. The utility's own profit lives in the separate delivery (distribution) charge, set in a rate case.
Where the utility's profit does live: Separate from supply, PECO's last distribution case (R-2024-3046931) settled in December 2024. That's the part worth scrutinizing — and the part you can comment on at the commission before it's approved.
What you can actually do
- Check usage vs. rate. A higher rate and a hot month stack up. Pull your kWh from last month and compare it to the same month last year — it tells you how much is the rate and how much is the weather.
- Check whether you're overpaying on supply. If a third-party supplier is charging more than PECO Energy's Price to Compare, that's a fixable overcharge — but switching rarely beats a capacity-driven default rate, so compare honestly first. Run the free, private audit → Should you shop in Pennsylvania? → How to use PA Power Switch, Pennsylvania's official comparison tool →
- If the bill is more than you can cover, there's real help — assistance programs, payment plans, and your shutoff protections. Bill help in Pennsylvania →
The fuller picture on PECO Energy
A rate increase is one number. Here's the context most coverage skips: Its parent, Exelon, cleared about $2.5 billion in 2024.
See the full PECO Energy Report Card → Compare every utility on rates, reliability, disconnections and profit →Common questions
- How much is the PECO Energy rate increase?
- PECO Energy's Price to Compare rose about 6.7% to 11.759¢/kWh (from 11.024¢) effective June 1, 2026. That's roughly $5.15 more a month for a typical 700 kWh home.
- Why is my PECO Energy bill going up?
- Higher wholesale supply costs. PA's Price to Compare reflects what the utility pays to buy power; the PUC doesn't break out the PJM capacity piece by name, though it's the regional driver.
- Is PECO Energy making more profit from this?
- Not from the supply increase itself — that's a pass-through with no markup. Exelon (the parent company) reported about $2.5 billion in profit in 2024, but that comes from the delivery/distribution side and its other businesses, not from marking up the power you buy. This lands on the supply (generation) part of your bill, which on a default/standard rate is a pass-through — your utility buys the power and bills it through with no markup. The utility's own profit lives in the separate delivery (distribution) charge, set in a rate case.
- Will switching suppliers lower my PECO Energy bill?
- Often not. When the increase is a capacity-driven default rate, a competitive supplier is buying from the same wholesale market — and many switchers end up paying more after a teaser rate resets. Compare any offer against PECO Energy's Price to Compare first, and only take a fixed, full-term rate that genuinely beats it.
Last reviewed June 18, 2026. Default-supply rates reset on a schedule and rate cases move — confirm the current figure with PA PUC — summer 2026 price changes or your bill before relying on it. This is general consumer information, not legal or financial advice.
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