PECO Electric Rates to Rise, Natural Gas Prices Down

PECO customers will be seeing their electric rates increase starting December 1.

According to the Pennsylvania Public Utility Commission, PECO will raise their “price to compare” electric distribution rate come December 1. The price to compare rate typically averages 40 percent to 60 percent of the customer’s total utility bill. 

PECO’s rate will go up from up from 8.508 cents to 9.855 cents per kWh, a 15.8 percent increase.

The PECO rate increase is lower than several other companies in the state. Citizens Electric in the central portion of the state is hiking rates by 31 percent.

Electric utilities must obtain electricity for the lowest price available, according to the Pennsylvania Public Utility Commission. The generation element of power bills, however, is not subject to price regulation by the commission. The costs for generating electricity are distinct from the rates that utilities charge for distributing it to homes and businesses, which are subject to strict regulation.

PECO’s natural gas price to compare rate has fallen in recent months by 2 percent, down from $0.8346 to $0.8179 per Ccf.

Several natural gas distribution companies in the state have seen rates increase by as much as 128 percent.

Like with electric companies, natural gas distribution companies are required to make “every effort” to purchase natural gas for the lowest price.

Inflation, the war in Ukraine, and other factors have led to increases in energy market conditions over the past year.

Customers who worry about struggling to pay energy bills are urged to contact their utility provider to seek information on assistance programs available in their communities. In addition to the companies and government, some nonprofits offer programs to ease the burden on energy bills.

The Pennsylvania Public Utility Commission provided energy saving tips:

• Pay attention to the thermostat – Every degree you raise or lower the temperature could impact energy costs by up to 3%. Also, consider a programmable thermostat to automatically lower temperatures while you are away from home.
• Have your furnace serviced – Regular furnace maintenance along with clean air filters help ensure efficient operation of your heating system.
• Insulate and seal leaks around your home – Adding insulation, installing storm windows and doors, and sealing cracks and air leaks can help you stay warmer and use less energy.
• Install or repair ceiling fans in high-trafficked rooms – Many people can reverse the direction of ceiling fans to clockwise to produce an updraft and move warmer air near the ceiling downward, keeping the room and you warmer.
• Consider resetting your water heater thermostat – Water heaters are the second highest source of energy usage in the home, and many people have the thermostat on their water heater set too high.  Setting the temperature on your water heater a few degrees cooler can help save money on your energy bills.