On June 1, 2026, PECO adjusted its default supply rates and commercial customers in southeastern Pennsylvania took the biggest hit. Supply charges for small and mid-to-large commercial accounts increased 15%, moving from roughly 9.17–9.35¢/kWh to 10.55–10.73¢/kWh. It's the largest rate increase among Pennsylvania's major utilities this cycle, and it landed right as summer electricity demand begins to climb.
Twice a year, Pennsylvania utilities reset their default supply rates through what's called a Generation Supply Adjustment (GSA). The GSA reflects wholesale electricity market conditions, PJM capacity costs and the cost of grid infrastructure investments.
PECO's June increase is partly tied to its Reliability and Resiliency 2030 Plan: a $1.97 billion commitment to modernize aging grid equipment and improve storm resilience across its southeast Pennsylvania service territory. These infrastructure costs are being passed through to ratepayers.
The PA Public Utility Commission confirmed the changes on May 20, noting that several other utilities also adjusted rates on June 1, though PECO's commercial increase was the steepest in the state. For context, Duquesne Light mid-to-large commercial customers saw a 10% increase; Penelec customers saw 6.3%; West Penn Power, 7.2%.
A 15% increase sounds manageable in percentage terms but in dollar terms, it adds up fast. A PECO commercial customer using 100,000 kWh per month for one property will pay roughly $1,300 more each month resulting in over $15,600 more per year. For multi-site businesses or energy-intensive facilities, it will add up quickly.
With summer heat on the way, total consumption will rise too. Higher rates combined with higher usage is a compounding problem.
These rate changes only apply to customers on PECO's default service: businesses that haven't selected a retail electricity supplier.
Pennsylvania is a deregulated energy market. That means you don't have to buy electricity at whatever rate PECO sets. Businesses can shop for energy from competitive retail suppliers and step off the utility's price-change treadmill entirely.
If your business is already working with a supplier, your generation costs won't move until that contract expires. If you're on default service, or if your contract is expiring soon, you're now exposed to whatever the market is doing when you renew.
This is exactly the situation where having visibility into the competitive market matters. A rate comparison takes a few days, not weeks, and the window to act before summer peak pricing fully sets in is narrow.
Check which rate class your business falls under and pull a recent bill to confirm whether you're on PECO default service or a competitive supplier. If it says "PECO" under the generation/supply charge, you're on default and paying the new rate.
Energy CX works with commercial businesses across Pennsylvania to compare supplier options, strategize your energy purchasing, and track market conditions so clients aren't making energy decisions in the dark. If you want to know where you stand, we can tell you. Book a meeting with one of our energy experts today!