PECO has withdrawn a recent rate hike proposal that would have raised bills for electricity and natural gas customers across Philadelphia and its suburbs, ending a plan that had drawn direct pressure from Gov. Josh Shapiro. The utility’s filing with the state Public Utility Commission had pointed to potential electricity increases of 12.5% beginning in 2027 and an additional 11.4% increase for suburban natural gas customers.
Shapiro said he demanded that PECO’s chief executive pull the request and that the company put customers first. His office said the withdrawal would prevent unreasonable price increases for 1.7 million Pennsylvanians, a major win for households already facing higher costs for basic needs.
The withdrawal matters because it stops, for now, a proposed set of increases that would have landed after PECO made record profits in 2025 following a recent rate hike. In that year, almost $35 of every $200 spent by PECO customers went straight to the utility’s profits, a figure that has fueled criticism from consumer advocates and elected officials alike.
PECO said it stepped back because Pennsylvanians are struggling with basic necessities like gas, food and energy. David Vahos, the utility’s chief executive, said the filing would have provided needed improvements in safe and reliable energy delivery, but the company decided to withdraw the proposal. He also said PECO wants to work with stakeholders across the region on long-term solutions to high energy costs and to make needed investments at another time.
The gap between those two positions is stark. The utility says the rejected plan was tied to infrastructure and service reliability. Critics say the company was asking customers to pay more even after a year when it reported record profits and, according to the Pennsylvania Utility Law Project, disconnected service to more than 126,000 families in 2025 because they could not afford their bills.
Darryl Lawrence, speaking after the decision, said he had never seen the governor intervene like this and added that he appreciated Shapiro’s effort and applauded PECO’s leadership for doing the right thing. Elizabeth Marx, whose group advocates for low-income and vulnerable utility customers, said her organization was encouraged that PECO chose to listen and recognized that hardworking Pennsylvanians cannot continue to absorb rate increases.
For now, the immediate answer is clear: the proposal is off the table. Shapiro said his administration will keep pressing utility companies to keep costs down while maintaining safe and reliable service, and PECO has signaled that any future push for higher rates will have to wait for another day.
