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PECO Withdraws $520 Million Rate Hike After Shapiro’s Push

Governor pressure highlighted voter anger over rising utility costs.

Overview

  • PECO, which pulled its Pennsylvania rate case Thursday, dropped plans to raise electric and gas delivery charges to fund system upgrades starting in 2027.
  • A typical household would have paid $20.08 more each month for electricity and $14.52 more for natural gas under the proposal.
  • Gov. Josh Shapiro said he demanded CEO David Vahos withdraw the filing, and his office estimates about $510 million in savings for roughly 1.7 million customers.
  • The reversal followed sharp criticism from 32 state House members and a petition from IBEW Local 614, as opponents also cited recent rate approvals and PECO’s strong 2025 profit.
  • PECO said it acted due to cost-of-living strain and higher energy supply costs and did not say if or when it will file a new plan, pledging to work with stakeholders on long-term solutions.