PHILADELPHIA, April 2, 2026, 08:02 EDT.
PECO on Monday asked Pennsylvania regulators to approve new delivery-rate hikes that would bump up the average residential power bill by 12.5%—roughly $20.08 more each month starting in 2027. The Exelon-owned utility also wants an 11.4% boost for suburban natural-gas customers, which translates to an extra $14.52 a month.
The filing arrives on the heels of a winter that saw heating bills climb for many. Regulators across the Mid-Atlantic now face pressure to weigh which costs—storm-proofing, pipeline upgrades, and infrastructure for EVs and data centers—should be passed on to ratepayers. This month, Pepco, another Exelon utility, is set for Maryland public hearings over its own proposal.
PECO is looking for another $429 million to bolster its electric infrastructure, along with $81 million aimed at natural-gas improvements. The utility, which delivers electricity to 1.7 million customers across southeastern Pennsylvania and serves over 553,000 gas accounts in the Philly suburbs, has mapped out $10 billion in spending over five years for grid and pipeline work. “Affordability is top of mind,” said Doug Oliver, senior vice president for government, regulatory and external affairs. Chief Executive David Vahos added that customers deserve a “system they can count on.” WHYY
The real dispute centers on delivery charges—the regulated fees for infrastructure like poles, wires, substations, and pipes. We’re not talking about the actual power or gas purchased on open markets here. PECO is pushing for a forward test year, aiming to base rates on its expected 2027 costs instead of relying on outdated numbers. The company says this approach shortens the gap between spending and recovery.
Pepco, an Exelon utility as well, is facing a similar review. Maryland regulators are set to conduct virtual hearings April 14 and April 17 on a proposed rate hike—about $11.73 extra per month for the typical customer, potentially starting in August if the plan goes through. The state’s decision deadline: Aug. 10.
The timing could draw extra attention in Pennsylvania. PECO’s most recent rate case pushed electric bills up 10% for 2025, plus another 1.8% this year; gas customers got hit with a 12.5% hike that took effect last year. Exelon’s full-year numbers show PECO booked $814 million in net income for 2025.
Labor disputes are adding to the rate drama. Over 1,000 IBEW Local 614 members kept working past their contract’s expiration. The union claims pay, healthcare, and retirement issues are still stuck, and has filed unfair-labor-practice charges. PECO insists its proposal is fair, and says it’s prepared with backup plans should negotiations break down.
PECO wants regulators to approve a 10.95% ROE—that’s the return shareholders can earn on assets they finance. Testifying in support, Ann Bulkley, a principal at The Brattle Group, argued PECO faces “a risk level that is higher” than similar utilities, pointing to the size of its capital spending plan. Utility Dive
Still, utilities often walk away with less than their full wish list. In Pennsylvania, rate decisions usually stretch out over nine months, and final hikes are often trimmed back. Over in Maryland, commission staff have raised issues with Pepco’s revenue projections, while the state’s Office of People’s Counsel is pushing for a flat-out dismissal of the case.
PECO, meanwhile, is pushing back against framing the issue as just another story about AI-driven growth. Oliver insisted the company would have filed regardless of looming data-center loads, saying the case “not about data centers” alone. In his view, PECO’s transmission security agreements are aimed at making sure costs tied to individual projects aren’t dumped on residential ratepayers. Inquirer.com
