Seasonal temperatures resulting in increased energy use, changes in rates, and the cost of electricity and natural gas may have led to fluctuations in recent energy bills. We want to make sure our customers understand what is impacting their bill, options for bill payment, steps they can take to save money and energy, and available assistance programs.  

Winter weather continues to drastically impact the way customers use energy and are causing heating systems to work harder to keep up. Due to the recent cold snap, residential customers used approximately 55 percent more energy in January 2025 compared to December 2024. This consists of 12 percent more electricity and 43 percent more natural gas usage.

Additionally, rate changes in the last year impacting customers’ utility bills include: 

• A 10 percent electric distribution rate increase and a 12.5 percent natural gas rate increase that went into effect on January 1, 2025.
• The rate adjustments support expanded investments in PECO’s electric and natural gas delivery systems and further enhance the level of service you have come to expect.
• This includes efforts to enhance safe and reliable service, improve resiliency and reliability of the local energy grid, further mitigate the impacts of severe weather, and enable the transition to cleaner energy resources.
• The rate adjustments also will support programs that help customers save energy and money, including programs that further increase assistance for low-income households. 

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Supply Charge Explained 

• The supply charge is the portion of the bill that accounts for the actual natural gas or electricity that is used by a customer. Supply can be purchased through a competitive energy supplier or from PECO. When purchased from PECO, these costs are passed along to customers at exactly the cost that PECO pays, without a profit mark-up.  
• These prices change quarterly and more information about current and future rates can be accessed through the electricity and natural gas Price to Compare pages. 
• Electric Supply Charge 
  • PECO does not generate electricity, rather we purchase the lowest cost electric supply for customers by buying power in the spring and fall through competitive bidding processes for one- and two-year fixed-price contracts.  Every six months we replace about 35 percent of expiring contracts with new contracts. This staged approach helps smooth out price changes over time. This is a strategy that has been successful in reducing customer supply price volatility for years and has avoided dramatic price increases when severe weather has occurred or with the recent increases in energy prices. 
• Natural Gas Supply Charge
  • Natural gas costs fluctuate based on many factors – but we work hard to control costs, reduce price volatility, and purchase natural gas at the lowest price possible for customers.  
  • This is done, in part, through a hedging program (locking in prices) to purchase our natural gas supply incrementally at fixed prices based on future costs and also by filling storage facilities during the summer months when natural gas prices are typically lower. These costs change daily, as market prices change. 

Delivery Charge Explained

• The delivery charge, or the portion of the bill that covers PECO’s costs to deliver natural gas or electricity, is about half of a residential customer’s bill. This allows us to continue investing in reliability upgrades and programs to better serve our customers.

We’re here to help

We offer resources for customers to better understand the various components of their bill and the factors that may lead to changes. In addition, there are various ways to lower energy usage to save money, and take advantage of available financial assistance programs:

• Understand Your Bill: Each customer’s bill is unique and can vary from energy use, how energy efficient their home or business is, to their energy supplier. Customers can visit peco.com/BillSupport where they will find additional information on understanding their energy bill, rates, and more. 
• My Account: Through PECO’s MyAccount at https://www.peco.com/myaccount, customers can track their energy use, get customized tips on how to reduce energy costs, and learn which appliances use the most energy. In addition, customers can choose to get alerts about their current usage and other factors that could be impacting their bill, such as the recent extreme cold.  
• Budget Billing: Budget billing makes short-term fluctuations in monthly bills easier to handle by dividing annual energy costs evenly throughout the year.
• Energy Assistance Programs: Energy efficiency programs, like energy assessments, can help customers save energy and money by identifying opportunities throughout a home. To learn more about PECO’s residential programs visit http://www.peco.com/waystosave.  
• Energy Saving Tips: By following a few simple tips and making straightforward energy efficiency improvements now, customers could save 20 percent or more on their winter heating bills. 

For more information on your bill, energy savings tips and other information, visit peco.com/BillSupport.