“Keeping bills as low as possible through efforts like PECO’s $12.5 million Customer Relief Fund to help low- and middle-income customers struggling with high energy costs is a top priority,” said David Vahos, PECO president and CEO. “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. 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.”
The withdrawn filings were intended to support near- and long-term electric and natural gas system modernization.
However, it was determined that advancing those longer-term investments at this time would place additional strain on customers who are already managing significantly higher energy supply costs and broader cost-of-living challenges.
This decision reflects a careful balance between customer affordability and the company's responsibility to deliver high-quality service for the long term.
PECO is committed to putting customers and communities first and acting responsibly when making major decisions.
The company will continue near-term investments focused on system safety, essential maintenance, operational integrity, and reliability standards customers depend on every day.
Customers can expect continued strong reliability performance as PECO continues to manage costs responsibly.
At the same time, PECO will continue evaluating longer-term grid modernization investments that support economic growth, job creation, and evolving energy needs across southeastern Pennsylvania.
Withdrawing the filings gives the company the flexibility to better assess the timing, scope, and sequencing of those investments in the context of affordability and system priorities.
The company will also refocus on efforts to enact changes that will help to drive down energy supply prices – costs that the company does not control or profit from – to ensure adequate energy supply is available to meet rising demand.
This continued “all-of-the-above” strategy is essential to continued affordability and reliability.
Click Here for the PECO announcement.
Reactions
The Clean Power PA Coalition issued the following statement from its chair, Katie Blume of Conservation Voters of Pennsylvania, regarding PECO’s announcement--
“The Clean Power PA Coalition is pleased that PECO has chosen to withdraw its proposed electric and natural gas rate increase, which would have forced families to pay hundreds more per year on their utility bills.
“For families across southeastern Pennsylvania already burdened by rising grocery, gasoline, housing, and other costs, monthly bill increases can force hard decisions.
“Today’s decision will spare them from even more difficult choices.
“We thank Governor Josh Shapiro for urging PECO to step back from this filing and to focus on customer affordability.
“He has shown that constructive action from our leaders matters, especially when utility decisions have real consequences for millions of Pennsylvanians.
“At the same time, we cannot ignore the underlying forces that continue to push costs upward.
“On the regulated, distribution-side of the bill, high returns on equity and inequitable rate designs need significant reform not just for PECO, but across the state.
“In addition to distribution rate increase pressures, Pennsylvania families have had bills sky rocket because of increases in energy and capacity costs due to the fact that Pennsylvania and the regional grid operator PJM have been too slow to bring more low-cost, clean energy online.
“Volatile natural gas prices swing quickly based on factors like international turmoil and extreme weather; that lands directly on consumers.
“Rapidly growing electricity demand, driven largely by the expansion of large data centers, is adding pressure to the grid, pushing costs still higher.
“We hope this decision by PECO can set the stage for a full and open conversation among state leaders and major stakeholders about how to meet our region’s energy needs affordably.
“With the rate case withdrawn, we must focus on solutions: reforming utility profit models and unfair rate design, accelerating clean energy and storage projects, upgrading the grid efficiently, and using every cost-effective tool to manage demand and reduce long-term bill impacts for customers.”
The Pennsylvania Utility Law Project (PULP) issued the following statement from its Executive Director, Elizabeth Marx, regarding PECO’s decision to withdraw its request--
“The Pennsylvania Utility Law Project commends Governor Shapiro for his bold and unwavering commitment to energy affordability, and we are grateful that his direct engagement moved PECO to make today's announcement withdrawing its two rate cases.
“Pennsylvania families are struggling with rising utility bills. 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.
“PULP’s 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.
“We look forward to continuing our work alongside the Governor, PECO, and all stakeholders to ensure that any future rate case genuinely puts affordability at the center and delivers lasting, just, and reasonable rates for the customers who need relief the most.”
NewsClips:
-- Gov. Shapiro Demanded, And PECO Withdrew Its 12.5% Electric, 11.4% Natural Gas Rate Increase Saving PA Consumers $510 Million
-- WHYY: PECO Withdraws Its Rate Hike Case After Backlash From PA Governor, Lawmakers
-- Inquirer: PECO Withdraws Request For Double-Digit Rate Hike, After Facing Backlash
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[Posted: April 16, 2026] PA Environment Digest
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