Pennsylvania Utilities Are Raising Rates in June
Twice per year, Pennsylvania electric utilities update their default supply rates. With June 1 changes already on the horizon, now is the time to understand how your utility’s rate shift could impact your bottom line and whether a competitive fixed-rate plan could offer better protection.
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Key Takeaways
Starting on June 1, 2026, Pennsylvania electric utilities are adjusting their default supply rates, and commercial customers across the state will feel the impact. Rate increases will vary widely across utilities, with PECO commercial customers feeling the highest increase at 15% while Penn Power commercial rates will remain the same. If your Pennsylvania business is still on default utility rates, now is the ideal time to lock in a fixed-rate plan before summer rates peak.
- Six major utilities in Pennsylvania are adjusting their supply rates on June 1, 2026.
- Rate changes will vary considerably depending on your company’s location and PA utility.
- PECO electricity rates face the highest rate increase at 15%, while Penn Power electric rates will stay roughly the same.
- Other Pennsylvania utility rate increases will vary from +0.5% to +10%.
- Securing a fixed-rate contract now can provide long-term stability and protection from future utility rate increases.
Why Are Pennsylvania Utility Rates Increasing June 1?
Twice per year, Pennsylvania electric utilities adjust their default supply rates based on current market conditions and seasonal demand forecasts. These rate changes are called a Generation Supply Adjustment (GSA), and they represent shifts in the cost of generating electricity and delivering it across the grid. When wholesale energy prices and capacity costs rise, the GSA rises with them, and those costs get passed directly to businesses on a utility default service plan.
Seasonal shifts in Pennsylvania utility rates can make energy costs more difficult to predict and budget. Understanding how your Pennsylvania utility is adjusting rates can help you make smarter energy decisions and lock in price protection before increases take effect.
PECO Rate Increases
PECO is an electric utility company that serves roughly 1.6 million customers across southeastern Pennsylvania, including Philadelphia and its surrounding counties. Starting on June 1, 2026, commercial customers in PECO’s service area are facing one of the largest rate increases in the state, with GSA charges rising 15% for all commercial customers.
PECO Commercial Electric Rate Overview
| Customer Type | Previous Rate | New Rate (June 1, 2026) | % Change |
| Small Commercial (General Service) | 9.35¢/kWh | 10.728¢/kWh | +15% |
| Mid to Large Commercial (Primary Distribution) | 9.166¢/kWh | 10.545¢/kWh | +15% |
PPL Electric Rate Increases
PPL Electric Utilities deliver power to approximately 1.5 million homes and businesses across 29 counties in central and eastern Pennsylvania, including the Lehigh Valley and Scranton regions. Most commercial PPL customers will only see a modest 0.5% rate increase. However, large commercial PPL customers with a demand of 50 MW or more should be aware of a new large load tariff taking effect on July 1, 2026, that will have a bigger impact on their bills.
PPL Commercial Electric Rate Overview
| Customer Type | Previous Rate | New Rate (June 1, 2026) | % Change |
| Small to Midsize Commercial | 12.681¢/kWh | 12.745¢/kWh | +0.5% |
Duquesne Light Rate Increases
For over 100 years, Duquesne Light has powered more than 600,000 customers in the greater Pittsburgh area. While small commercial customers will actually experience a slight decrease in supply rates, midsize to large commercial customers are facing a steep 10% supply charge increase starting June 1.
Duquesne Light Commercial Electric Rate Overview
| Customer Type | Previous Rate | New Rate (June 1, 2026) | % Change |
| Small Commercial (under 25kW) | 9.7016¢/kWh | 9.6754¢/kWh | -0.3% |
| Mid to Large Commercial (25-200 kW) | 9.0243¢/kWh | 9.885¢/kWh | +10% |
Overview of FirstEnergy Pennsylvania Utility Rate Changes
Unlike other Pennsylvania utilities, FirstEnergy is the parent company behind four distinct electric utilities, serving over 2.1 million customers statewide. With such a large footprint, FirstEnergy rate increases vary considerably between utilities. While Met-Ed and Penn Power supply rates will remain roughly the same, commercial customers with Penelec and West Penn Power will experience 6.3% and 7.2% increases, respectively.
Electric Rate Overview for all FirstEnergy PA Utilities
| Utility | Customer Type | Previous Rate | New Rate | % Change |
| Met-Ed | Commercial | 12.931¢/kWh | 12.864¢/kWh | -0.5% |
| Penelec | Commercial | 12.155¢/kWh | 12.920¢/kWh | +6.3% |
| Penn Power | Commercial | 13.729¢/kWh | 13.729¢/kWh | 0% |
| West Penn Power | Commercial | 10.993¢/kWh | 11.779¢/kWh | +7.2% |
What’s Behind Pennsylvania Electric Utility Rate Increases?
Every Pennsylvania electric utility operates within PJM Interconnection, the regional power grid that manages electricity supply across 13 states. When capacity costs rise across the PJM grid, Pennsylvania utilities account for those costs in their GSA. However, PJM capacity costs are just one piece of the puzzle. Each utility relies on a different mix of energy sources to generate electricity, so shifts in fuel costs can impact some PA utilities more than others.
Local energy infrastructure is another major component in utility rate increases. Densely populated areas and regions with outdated grid technology often pay higher costs to modernize energy infrastructure and protect the grid from extreme weather. Those utility investments get built into each utility’s GSA over time. These factors are part of the reason why a Philadelphia business consuming 2,000 kWh per month could see a very different electricity bill than a comparable business in Pittsburgh or Lancaster.
How Can PA Utility Rate Changes Impact Your Business?
While the 15% PECO rate increase may look manageable on paper, the real impact truly depends on how much electricity your business consumes. For example, a PECO commercial customer that uses 5,000 kWh/month will end up paying roughly $70 more each month, or over $800 in annual energy costs. A larger business that consumes 10,000 kWh/month could see their Pennsylvania electricity bill increase by $140 or more each month, adding up to over $1,600 in annual energy costs. Monitoring shifts in electric utility rates and exploring fixed rate plans through the competitive market are two of the most effective ways to manage your company’s electricity costs.
What Businesses Should Do Before June 1, 2026
June 1 is approaching fast, so now is the time for Pennsylvania businesses to review their current electricity plan. Making a few strategic changes before the utility rate increases take effect can set your business up for long-term stability and predictable bills.
- Review your current energy contract to determine if your business is on default utility service or locked into an existing agreement.
- Compare electricity rates and plans available in your area because retail suppliers often offer more competitive pricing than utilities.
- Lock in a fixed-rate plan before June 1 to protect your business from upcoming utility rate increases and seasonal fluctuations.
- Partner with an experienced energy broker like Integrity Energy who can help you secure competitive pricing and custom contract terms.
Frequently Asked Questions about Pennsylvania Utility Rates
Which Pennsylvania utilities are raising rates in June 2026?
Starting June 1, 2026, several major Pennsylvania utilities are adjusting their supply rates, including PECO, PPL Electric, Duquesne Light, and FirstEnergy’s four Pennsylvania subsidiaries: Met-Ed, Penelec, Penn Power, and West Penn Power. The size of each electric rate increase varies by utility service area, while PECO customers will experience the largest jump at 15%.
Why are PECO rates increasing in June 2026?
PECO’s large June 2026 rate increase is going to help fund essential infrastructure upgrades and efficiency programs designed to improve grid reliability across southeast PA. As part of its Reliability and Resiliency 2030 Plan, PECO has committed $1.97 billion to modernize aging equipment, improve storm resilience, and prepare the grid for increasing energy demand.
How much will my Pennsylvania electricity bill increase on June 1?
The impact of Pennsylvania electric utility rate increases will vary depending on your utility, rate class, and monthly usage. Commercial customers in PECO’s service area are facing the highest increases at 15%, while commercial Penn Power rates will remain flat. Most Pennsylvania utilities will experience GSA increases between 0.5% to 10%.
Should Pennsylvania businesses lock in energy rates before June 1?
If your business is currently on default utility supply rates, securing a fixed-rate contract before June 1 is worth exploring. Comparing commercial electricity rates from multiple Pennsylvania energy providers can help protect your business from rising utility rates. Connect with our experts for a free quote with the best rates and plans in your area.
Can I avoid the PECO rate increase by switching suppliers?
Yes! In Pennsylvania’s deregulated energy market, businesses have the power to choose their electricity provider rather than staying on default utility service. Switching to a fixed-rate plan from a competitive supplier can help protect your business from PECO’s rate increase and future rate changes.
Will Pennsylvania Utility Rates Go Down After November 2026?
While it is a possibility, it’s not guaranteed. Pennsylvania utility rates reset every six months on June 1 and December 1, based on wholesale market conditions. Since Pennsylvania is part of the PJM power grid, increasing capacity costs and growing electricity demand mean elevated rates are likely here to stay.
What is the Generation Supply Adjustment (GSA), and why does it matter?
The Generation Supply Adjustment (GSA) is the largest component of your utility’s default supply rates. It reflects the cost of procuring electricity from the wholesale market and adjusts every six months. This means businesses on their utility’s default service plan are exposed to rate changes twice per year.
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