PECO seeks 12% rate hike for electricity, 11.4% for gas

PECO Energy has filed for an additional 12 percent increase in electric rates and an 11.4 percent increase in natural gas rates, which, if approved by the Pennsylvania Public Utility Commission (PUC), would take effect on January 1, 2027. This follows a nearly 12 percent electricity rate increase and a 12.5 percent natural gas increase received 15 months prior. The utility stated the rate hikes are necessary for long-term investment in local electric and natural gas infrastructure and to expand support programs, including preparing the grid for growth from large load users such as data centers. However, Candice Womer, PECO's communications manager, contradicted this, asserting the proposal for 2027 would be the same regardless of expected data center additions, despite acknowledging a specific 67MW power line project for a proposed 1.4 million-square-foot data center in Limerick. Pennsylvania legislators, including delegations from Montgomery and Bucks counties and State Senators Katie Muth and Steve Santasiero, have voiced strong opposition to the proposed increases. They argue that working and middle-class families should not subsidize infrastructure upgrades for "big tech" while facing a cost-of-living crisis. Legislators are advocating for House Bill 1834, which passed the Pennsylvania House and aims to hold data centers responsible for their own electricity costs. Residents are encouraged to sign online petitions and file formal complaints with the PUC. Concurrently, PECO's rate request comes as its contract with the International Brotherhood of Electrical Workers (IBEW) Local 614 expired. The union has filed charges with the U.S. Labor Relations Board, accusing PECO of withholding information regarding health and pension benefits during contract negotiations, although no strike has been authorized.