Pennsylvania Electric Bills Jump After December 1 Rate Hikes: How Much PECO, PPL and Other Utilities Now Charge

PHILADELPHIA / PITTSBURGH – December 2, 2025

Pennsylvania households are waking up this week to higher electric bills after nearly every state‑regulated utility raised its default supply rate on December 1, just as winter heating season begins. State regulators say the increases are being driven by soaring wholesale power and “capacity” costs on the regional PJM grid, a surge in electricity demand from data centers and electric heating, and the retirement of older power plants. ^[1]

Local TV stations, newspapers and energy analysts across the state — including 6abc in Philadelphia, FOX43 in central Pennsylvania and the Pittsburgh Post‑Gazette and TribLIVE in the west — spent December 1 and 2 explaining what the hikes mean for consumers and why the pain is arriving now. ^[2]

What changed on December 1: new electric rates by utility

The Pennsylvania Public Utility Commission (PUC) requires all regulated utilities to reset their “Price to Compare” — the default generation/supply rate — twice a year. This time, almost all of those rates went up. The increases affect customers who get their electricity supply from their local utility instead of a competitive supplier. ^[3]

Here’s a rundown of the most significant changes now in effect as of December 1, 2025 (all figures in cents per kilowatt‑hour, ¢/kWh, rounded): ^[4]

PECO and PPL: higher costs for much of eastern and central Pennsylvania

PECO (Philadelphia and many suburbs)
- Old default supply rate: around 10.4 ¢/kWh
- New rate: about 11.0 ¢/kWh (roughly a 6% hike)
- PECO serves roughly 1.7 million electric customers in southeastern Pennsylvania.
In a detailed statement, PECO stressed that the increase is confined to the supply portion of the bill; delivery charges for poles and wires are unchanged, and PECO says it passes supply costs through “at exactly the price” it pays on wholesale markets. The company pointed directly to PJM’s recent capacity auctions and higher fuel prices as key drivers. ^[5]
PPL Electric Utilities (Lehigh Valley, central and northeastern PA)
- Old default rate: about 12.49 ¢/kWh
- New rate: 12.953 ¢/kWh
- Increase: roughly 3.7%, locked in from December 1, 2025 through May 31, 2026. ^[6]

Duquesne Light, West Penn Power and other FirstEnergy utilities

In western and central Pennsylvania, customers of Duquesne Light and the FirstEnergy utilities are seeing some of the steepest jumps: ^[7]

Duquesne Light (Pittsburgh and many western suburbs)
- Old rate: about 12.42–12.43 ¢/kWh
- New rate: 13.75 ¢/kWh
- Increase: 10.6%
West Penn Power (large parts of western & central PA)
- Old rate: 10.32 ¢/kWh
- New rate: 10.95 ¢/kWh
- Increase: 6.1%, affecting roughly 725,000 customers in 24 counties.
Met‑Ed (Metropolitan Edison)
- Roughly 11.9 → 13.0 ¢/kWh, an increase of about 8.9%.
Penelec (Pennsylvania Electric Co.)
- Around 11.0 → 11.75 ¢/kWh, up about 6.8%.
Penn Power
- About 11.86 → 12.61 ¢/kWh, up roughly 6.3%.

Pike County, Wellsboro and UGI: smaller territories, big swings

Pike County Light & Power (northeast PA)
- Estimated 10.19 → 11.21 ¢/kWh, nearly a 9.9% jump. ^[8]
Wellsboro Electric
- One of the few bright spots: its supply rate actually declined, from about 12.81 → 12.04 ¢/kWh (roughly –6%).
UGI Electric
- Another exception, with a modest cut from approximately 11.47 → 11.21 ¢/kWh (around –2.3%). TS2 Tech

For most Pennsylvanians, however, the December 1 reset means noticeably higher supply rates just as winter electric usage begins to climb. TS2 Tech+1

Why Pennsylvania electricity prices are rising again

Supply vs. delivery: the part of the bill that’s moving

Electric bills in Pennsylvania have two main components:

Generation/Supply – what you pay per kilowatt‑hour for the electricity itself (this is the “Price to Compare”).
Distribution/Delivery – the cost of poles, wires and local infrastructure that bring power to your home.

The PUC and local news outlets have emphasized that only the supply portion is changing on December 1. Distribution charges are set in separate rate cases and are not part of this seasonal reset. For most households, supply makes up about 40%–60% of the total bill, so a 6%–10% increase in the supply rate typically translates into a smaller, but still painful, percentage increase in the overall bill. ^[9]

PJM capacity auctions: the “insurance policy” that exploded in price

Pennsylvania sits inside PJM Interconnection, the regional grid operator for 13 states and D.C. PJM runs annual “capacity auctions” — essentially an insurance mechanism to ensure enough power plants will be available to meet peak demand in future years.

Over the past two years, those auction prices have soared:

A PJM auction for the 2025–2026 delivery year saw capacity prices jump roughly 833% compared with the previous year, according to energy analysts who track Pennsylvania’s market. ^[10]
A subsequent auction covering June 2026–May 2027 cleared at about $329 per megawatt‑day, up 22% from the prior year and right at the cap negotiated with Pennsylvania Gov. Josh Shapiro and other state leaders. PJM estimates that this could add roughly 1.5%–5% to customer bills across the region starting in mid‑2026. ^[11]

Because capacity costs are folded into the supply rate, not billed as a separate line item, these auction results are now filtering into the December 1 residential rates that PECO, PPL, Duquesne Light and others are charging default‑service customers. Analysts estimate that capacity alone is responsible for 10%–20% bill increases for many Pennsylvania homes and up to 29% for some commercial customers over the 2025–2026 period. ^[12]

Data centers, electrification and plant retirements

Higher capacity prices aren’t happening in a vacuum. PJM and state officials point to a trio of structural forces:

Surging electricity demand: PJM’s long‑term load forecast shows both summer and winter peak demand rising sharply over the next 15 years, driven by large data centers, electric vehicle adoption, and more buildings switching from gas or oil to electric heat. TS2 Tech+1
AI and cloud data centers: Pennsylvania has become a magnet for AI and cloud computing data centers, with companies such as Amazon, Google and Microsoft exploring major projects. A Reuters report this week notes that utilities in the state are projecting a steep rise in electricity demand from data centers by the end of the decade — “enough to power several million additional homes” — and that capacity prices and rate hikes are already reflecting that strain. ^[13]
Retirement of older power plants: As coal and some gas units retire faster than new projects are built, PJM has had to pay more to keep remaining plants online and encourage new investment, another factor pushing up wholesale prices. ^[14]

Layered on top of this, national energy trends — including higher gas prices and the lifting of limits on U.S. liquefied natural gas exports — are making both electricity and gas more expensive for Americans heading into 2026, according to recent analysis from the U.S. Energy Information Administration and international media outlets. ^[15]

How much more will households actually pay?

The answer depends heavily on how much electricity you use, the efficiency of your home and heating system, and whether you heat with electricity, gas or something else. But several newsrooms and rate analysts have modeled the impact for a “typical” household using around 1,000 kWh per month on default utility service. TS2 Tech+1

Approximate monthly changes just from the supply side look like this:

Duquesne Light
- Increase of about 1.3 ¢/kWh translates to roughly $13 more per month in supply charges at 1,000 kWh usage.
West Penn Power
- A jump of around 0.6 ¢/kWh adds roughly $6–$7 per month in supply costs at similar usage.
PECO and PPL
- Smaller percentage hikes — roughly 3.7%–6% — work out to about $4–$7 more per month in supply charges for a typical home.

Because supply is only part of the bill, the total increase for most families will be somewhat lower than those figures, but still noticeable — especially on top of earlier increases that took effect on June 1, 2025, when many utilities raised rates 10%–20% as capacity costs first spiked. ^[16]

Consumer frustration has been intense enough that national tabloids and local TV alike have highlighted social media posts calling the December 1 hikes “insane” and “unaffordable,” particularly in Duquesne Light and West Penn territories. ^[17]

What PECO, PPL and the PUC are telling customers

Utilities: “We don’t profit on the supply portion”

PECO’s public statement underscores a message most Pennsylvania utilities repeat: they say they do not mark up the supply portion of the bill for default‑service customers. Instead, they procure power through auctions and contracts, then pass those costs through at cost, while earning profits only on delivery infrastructure like poles, wires and substations. ^[18]

The company points to several factors behind the December 1 increase:

Higher wholesale electricity and natural gas prices
PJM capacity auction results that “drove prices up further” due to expected tight supply and rising demand
Retirements of older power plants and the need to maintain reliability during extreme weather

PECO says it plans to work with policymakers on an “all of the above” strategy to maintain sufficient generation while helping customers understand their bills and access support. ^[19]

PPL and the FirstEnergy utilities have delivered similar messages in filings and media interviews, stressing that they are obligated to procure enough power for non‑shopping customers and that default rates reflect underlying wholesale costs. ^[20]

PUC: “Call your utility now” if you’re worried

The PUC has been unusually blunt this fall, urging anyone concerned about winter bills to call their utility before they fall behind, rather than waiting for a shutoff notice. In a November advisory, regulators highlighted several programs funded through rates and federal aid: ^[21]

Customer Assistance Programs (CAPs) that provide income‑based discounts
Budget billing that evens out seasonal spikes over 12 months
Hardship funds offering one‑time grants in a crisis
Weatherization and efficiency programs that can permanently lower usage

Local coverage — including FOX43 in York County and CBS Pittsburgh — has echoed that advice and emphasized that there is money available through utilities, the state and federal programs like LIHEAP, but that customers often need to take the first step by calling. ^[22]

How Pennsylvania consumers can respond

1. Shop around for a better supply rate — carefully

Because Pennsylvania is a deregulated electricity market, most residents can choose a competitive supplier instead of paying their utility’s default Price to Compare. The state’s official shopping site, PA Power Switch, lets you enter your ZIP code, pick your utility and compare offers from licensed suppliers. ^[23]

Energy comparison sites and analysts note that, after the December 1 increase, some fixed‑rate offers are now close to — or even slightly below — the new default rates in PECO, PPL and several FirstEnergy territories. But they also warn of pitfalls: ^[24]

Avoid ultra‑low teaser rates that jump sharply after a short introductory period.
Watch for early‑termination fees and automatic renewals.
Be cautious with variable‑rate plans, which can spike in volatile markets.

If a deal looks dramatically cheaper than everything else, experts recommend reading the fine print twice or calling the supplier to clarify terms.

2. Cut usage where it’s easiest

Even if you stick with your utility’s default rate, lowering usage can soften the blow of December’s hikes. TribLIVE and other outlets, drawing on utility and U.S. Department of Energy guidance, highlight quick steps that can make a real difference, especially in electric‑heated homes: ^[25]

Seal drafts around doors, windows and attic hatches.
Swap older bulbs for LEDs.
Lower the thermostat by a couple of degrees and use programmable or smart thermostats.
Service your furnace and replace dirty filters.
Unplug “vampire” electronics when not in use.

3. Don’t ignore payment trouble

Consumer advocates and the PUC stress that once an account becomes seriously delinquent, options narrow. Calling early can unlock payment plans, temporary hardship funds and referrals to nonprofit assistance before the situation spirals. In many cases, utilities can structure arrangements that keep customers connected through winter as long as they stay in communication. ^[26]

Politics and the road ahead

The December 1 rate hikes land in a broader debate about who should pay for the electric grid of the future. In Montour County, central Pennsylvania, a proposed AI data center has triggered a fierce local backlash, with residents — many of them Trump voters — packing meetings to protest potential impacts on farmland, water resources and utility bills. ^[27]

Reuters reports that Pennsylvania’s electricity prices have climbed about 15% over the past year, roughly double the national average, and that utilities expect demand from data centers alone to grow enough to power several million additional homes by the end of the decade. Capacity prices on the PJM grid have already spiked, and regulators across the region are grappling with how much of the cost of AI and cloud infrastructure should be borne by ordinary households. ^[28]

At the same time, national analyses warn that both gas and electricity costs are likely to remain elevated into 2026, even if some relief arrives later in the decade as new projects come online and market rules evolve. ^[29]

For now, December 2025 marks the second major rate shock in a single year for many Pennsylvania families — a June increase tied to capacity costs, followed by a winter reset that hits just as heating season begins. Whether voters ultimately blame utilities, regulators, data‑hungry tech firms or elected officials, the affordability of essential energy service is poised to be a central issue in Pennsylvania politics heading into 2026. ^[30]

This article reflects information available as of December 2, 2025. Customers should check with their individual utility or the PA Power Switch website for the very latest rate details and program eligibility.