PECO rate hikes: Utility withdraws proposal after backlash

Key Points:

• Under pressure from Pennsylvania Governor Josh Shapiro, PECO withdrew its recent rate hike proposal, which would have increased utility bills for 1.7 million Pennsylvanians, citing affordability concerns amid rising costs of living.
• PECO's CEO, David Vahos, acknowledged the struggles of customers with basic necessities and expressed willingness to work on long-term solutions for high energy costs while postponing infrastructure investments.
• The withdrawal marks an unprecedented move praised by Pennsylvania’s Public Advocate and the Pennsylvania Utility Law Project, highlighting concerns over affordability and the high number of utility shut-offs in 2025 despite PECO’s record profits.
• PECO’s previous rate hike in early 2025 led to a 47.7% increase in net income to $814 million, drawing criticism from Governor Shapiro and GOP lawmakers who called the proposed new rate hike excessive and labeled it “pure greed.”
• The company had planned to invest $10 billion over five years in infrastructure upgrades to improve grid reliability and reduce methane emissions by replacing natural gas pipelines, but these plans are now delayed due to the withdrawn rate increase request.