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Under pressure from Pennsylvania Gov. Josh Shapiro, PECO has withdrawn its recent rate hike proposal filed with the state Public Utility Commission.
The Governor’s office said in a statement the move resulted from negotiations with the company and called it a “major win for the people of Pennsylvania,” adding that it “will prevent unreasonable price increases for 1.7 million Pennsylvanians.”
“PECO’s proposed rate case would have increased Pennsylvanians’ utility bills, but I demanded that their CEO put customers first and withdraw their rate hike request,” Shapiro said in a statement. “PECO listened, and I appreciate that the company is willing to prioritize affordability at a time when Pennsylvanians are worried about rising costs. This withdrawal is the right step for consumers – and we’re going to keep fighting to make sure utility companies are focused on keeping costs down while maintaining safe and reliable service.”
PECO pointed to affordability issues for its ratepayers as the reason for the unprecedented withdrawal.
“While our filing with the PUC would have provided needed improvements in safe and reliable energy delivery, we recognize that Pennsylvanians are struggling with basic necessities like gas, food, and energy and have decided to withdraw our proposal,” David Vahos, PECO president and CEO said in a statement. “We look forward to working with stakeholders across the region to find long-term solutions to high energy costs and to make needed investments at another time.”
Pennsylvania’s Public Advocate Darryl Lawrence praised the move, saying it’s the first time he knows of a utility withdrawing a rate case in his more than two decades at the Office of Consumer Advocate.
“I’ve never seen this before,” Lawrence said. “I certainly appreciate the governor’s efforts and I applaud this decision by PECO’s leadership to do the right thing. Because affordability is at the top of everyone’s minds. Now is not the time to increase utility rates.”
The Pennsylvania Utility Law Project also applauded the move and pointed to the number of utility shut-offs in 2025.
“Last year, while PECO was collecting record profits, it nevertheless disconnected service to more than 126,000 families because these households could not afford to pay their bills,” Elizabeth Marx, executive director of the law project, said in a statement. “[Our] mission has always been to advocate for low-income and vulnerable utility customers, and we are encouraged that PECO has chosen to listen — recognizing that hardworking Pennsylvanians cannot continue to absorb rate increases.”
