HARRISBURG -- The Pennsylvania Public Utility Commission has approved rate increases for PECO Energy Co.'s electric and natural gas distribution services.
In its order approved Thursday, the PUC approved a modified joint settlement providing rate changes smaller than those requested by PECO when it filed the rate request on March 28. The new rates for electric and gas distribution will take effect on Jan. 1, 2025.
Under the terms of the PUC-approved settlement, the average residential electric customer of PECO, using 700 kWh of electricity per month will see an increase in their monthly bill of about 10% or $13.58 per month, from $135.85 to $149.43, in 2025. In 2026, the bill for this customer will increase an additional 1.8%, or $2.70, from $149.43 to $152.13.
Under the terms of the settlement, the average residential natural gas customer of PECO, using 80 Ccf of gas per month will see an increase in their monthly bill of approximately 12.5% per month, or $12.25, from $97.98 to $110.23
PECO provides electric distribution service to approximately 1.7 million customers in southeastern Pennsylvania and portions of York County. PECO provides natural gas distribution service to more than 552,000 customers in southeastern Pennsylvania, adjacent to, but exclusive of, the City of Philadelphia.
"There is an increasing need to invest in stronger and more modernized energy infrastructure to improve reliability, help enable wider adoption of cleaner energy resources, and provide our customers with the level of service they have come to expect from us," David Velazquez, PECO president and CEO, said in a statement. "We are pleased to have arrived at a balanced settlement and are committed to delivering enhanced reliability, further supporting cleaner energy and EV adoption, and providing support to our customers who need it the most."
In a press release, PECO said the approvals provide the increased funding necessary to support expanded investments in its electric and natural gas delivery systems and further enhance the level of service.
The PUC approved an increase of $353 million in PECO's annual operating revenues in the electric division. That amount represents a 23.7% reduction from the utility's original request of $464 million. The order also approved a lower increase in PECO's monthly distribution customer charge which will now increase $0.75 per month, a 7.1%increase.
The settlement also enables PECO to apply a one-time surcharge credit of approximately $64 million in 2025, according to the release.
Additionally, under the terms of the joint settlement, PECO agrees not to file another general rate increase for its electric operations prior to March 16, 2026.
The PUC approved an increase of $78 million in PECO's annual operating revenues for gas distribution services. That amount represents a nearly 30% reduction from the utility's original request of $111 million. The order also approved a lower increase in PECO's monthly residential gas distribution customer charge which will now increase 10.2%, from $14.25 to $15.70.
The PUC rejected PECO's request to implement a Weather Normalization Adjustment, which was the lone contested issue in this proceeding, according to the PUC press release.
For more information about assistance programs, customers can visit peco.com/help.