“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The withdrawn filings were intended to support near- and long-term electric and natural gas system modernization.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
PA Oil & Gas Industry/Public Notice Dashboards:
-- PA Oil & Gas Weekly Compliance Dashboard - April 4 to 17: Failed To Restore 5 Water Impoundments For 3,197 Days; Software Glitch Leaks 704,000 Gallons Of Fresh Water; 166,729 Gallons Recovered From Wastewater Spill [PaEN]
-- DEP Investigating Possible Software Malfunction That Released An Estimated 704,000 Gallons Of Fresh Water From Coterra Energy Shale Gas Water Impoundment In Springville Twp., Susquehanna County [PaEN]
-- DEP: Frontier Natural Resources Failed To Restore 5 Water Impoundments At 3 Shale Gas Drilling Sites In Clinton County For 3,197 Days [PaEN]
-- TheDerrick.com: Who Will Pay The Water Bill? Aqua Pennsylvania Is 'Evaluating Its Options’ For Recovering Money It Spent Operating The Venango Water Company From Oil & Gas Well Owner After Wastewater Spill [PaEN]
-- Residents Around MarkWest Harmon Creek Natural Gas Cryogenic Processing Plant In Washington County Urge DEP To Deny A New Air Quality Permit Because Of Frequent, Ongoing Black Smoke, Incomplete Combustion Violations At The Plant’s Natural Gas/Chemical Flare [PaEN]
-- PA Oil & Gas Industrial Facilities: Permit Notices, Opportunities To Comment - April 18 [PaEN]
-- DEP Issues 2nd Air Quality General Permit For Diesel-Fired Nonroad Engines At Homer City A.I. Data Center Campus In Indiana County
-- DEP published notice in the April 18 PA Bulletin announcing the rescission of the Standards and Guidelines for Identifying, Tracking and Resolving Oil and Gas Violations technical guidance and posting a Standard Operating Procedure with the same name and posted on DEP’s website.
-- DEP published notice in the March 28 PA Bulletin announcing the rescission of a technical guidance document Civil Penalty Assessments in the Oil and Gas Management Program and posting with separate Civil Penalty Assessment Standard Operating Procedures for conventional oil and gas well owners and shale gas well owners that have now been posted on DEP’s website.
-- DEP Posted 76 Pages Of Permit-Related Notices In April 18 PA Bulletin [PaEN]
-- DEP Invites Comments On Renewal Of Wastewater Permit For Restart Of Constellation Energy’s Three Mile Island Nuclear Data Center Power Plant In Dauphin County [PaEN]
-- DEP Invites Comments On Water Encroachment Permit For Mid-Atlantic Interstate Transmission, LLC Project To Rebuild Power Lines To Three Mile Island Nuclear Data Center Power Plant In Dauphin County [PaEN]
-- DEP Accepting Comments On Stormwater Permit For SNA North LLC/QTS A.I. Data Center Project In Salem Twp., Luzerne County [PaEN]
-- DEP published notice in the April 18 PA Bulletin inviting comments on an Individual Stormwater permit covering 25.87 acres of the Keystone Appalachian Transmission Company (FirstEnergy) Stoney Springs Junction 138kV transmission line project located in Salem Twp., Westmoreland County. (PA Bulletin, page 2143)
Related Articles This Week - Energy:
-- House Energy Committee Reports Out GeoThermal Energy, Advanced Transmission Technology, Energy Financing Authority Bills [PaEN]
-- PA House Passes Bills To Develop Model Zoning Ordinance To Help Local Governments Regulate, Mitigate The Impacts Of A.I. Data Center Developments; Report Water, Energy Use [PaEN]
-- PA House Blue-Green Labor, Environmental Caucus Endorses 9-Bill Package To Expand Clean Energy Generation, Strengthen Workforce [PaEN]
-- Spotlight PA: Gov. Shapiro Repeats Threat To Pull Pennsylvania Out Of PJM Regional Grid Operator, If Electricity Costs Keep Rising
-- In Case You Missed It: A.I./Data Center Articles - NewClips From Last Week - April 20 [PaEN]
-- Shapiro Administration Secures $14 Million From US DOE For Enhanced GeoThermal Systems Pilot Demonstration Project In Indiana County [PaEN]
-- US Dept. Of Energy Announces $14 Million To Support DEP Project For Enhanced Shale Gas Well GeoThermal Demonstration In Pennsylvania [PaEN]
-- Report: President Canceled 28.2 Gigawatts Of US Electric Generation- Funding For 13 Gigawatts Lost In Pennsylvania- In Face Of Unprecedented A.I. Data Center Demand, Grid Reliability Concerns [PaEN]
-- DEP Linkedin: Oil & Gas Program Sets Inspection Record In 2025, Including 5,213 Wells Never Inspected Before, Responded To 674 Complaints, Incidents [PDF of Article]
-- Mountain Watershed Association Appeals 90% Reduction In Mine Subsidence Damage Bond For Rustic Ridge Coal Mine In Westmoreland, Fayette Counties From $3.1 Million To $292,679 [PaEN]
-- Susquehanna River Watershed Low-Flow Conditions Trigger Stop To Shale Gas Drilling Water Withdrawals At 19 Locations, 13 More Approaching Restrictions [PaEN]
-- PA House Passes 3rd Natural Gas Safety Bill After Fatal Reading Chocolate Factory Explosion [House Bill 1522]
-- Post-Gazette - Anya Litvak: PA Electric Utilities Appreciate ‘Market Signals,’ But Not Market Prices; Some Utilities Want More Direct Role In Securing Power, Managing Prices For Customers
-- PECO Withdraws Proposed 12.5% Electric, 11.4% Natural Gas Rate Increases From PUC Consideration [PaEN]
-- PUC Opens Investigation Into UGI Electric Proposed 12.8% Rate Increase [PaEN]
-- PUC To Investigate Proposed 13.1% Rate Increase Request by Peoples Natural Gas [PaEN]
-- PUC Modifies UGI Gas Settlement To Require More Direct Support To Customers Impacted By Improper Service Terminations
-- PUC Marks April As Safe Digging Month
-- Penn State Extension Hosts Anaerobic Digestion On The Farm Conference, June 9-11 [PaEN]
-- PennFuture June 4 Energy Dialogue 2026 - Growing A Sustainable Energy Economy In Pennsylvania To Be Held In Hershey [PaEN]
-- Penn State Extension Energy Essentials News: Data Centers Q/A; National Biogas Conference; Tips For Picking Reputable Solar Developer
NewsClips:
-- WHYY - Susan Phillips: Philadelphia Gas Works Proposed LNG Natural Gas Plant Replacement In Port Richmond Neighborhood Now In Limbo
-- Reuters: Williams CEO Says PA-NY Constitutional Natural Gas Pipeline Could Be Online In 2027
-- EPA, DOE, DOI Break Ground On Williams Northeast Supply Enhancement Natural Gas Pipeline Taking PA Gas Into New York City
-- The Guardian: Top Oil, Natural Gas Companies Set To Make An Extra $234 Billion By End Of 2026
-- Inside Climate News - Jon Hurdle: As Tech Groups Predict Huge Pennsylvania A.I. Data Center Growth, Critics Say Some Bills Would Reduce Local Control; One State Senator Plans 3-Year Moratorium
-- PennLive/LehighValleyLive: Republican Sen. Coleman Calls For Giving Local Governments Authority To Put A Moratorium On A.I. Data Centers While They Revise Zoning Ordinances
-- WESA/The Allegheny Front: Electric Transmission Line Company Wants Authority To Condemn Property From PA PUC For Proposed Power Line In SW PA To Feed A.I. Data Centers In Virginia
-- 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
-- Post-Gazette: Solar Energy Facility To Help Offset Energy Costs Of 4 Pittsburgh Schools
-- LancasterOnline: Muddy Run Pump Storage Hydroelectric Plant To Test Warning Sirens In Lancaster, York Counties April 23
-- Center For Rural Pennsylvania April 17 Hearing On A.I. Data Centers, Coolidge Theatre At The Deane Center, Wellsboro, Tioga County
-- Breathe Project - April 20 Webinar On When Air Kills - Pittsburgh’s Hidden PM2.5 Particulate Toll, 7:00 p.m.
-- Better Path Coalition To Host May 13 A.I. Data Centers Virtual Town Hall Meeting, 7:00 to 9:00 p.m.
-- The Hill: US DOE Secretary Predicts Energy Prices May Rise, Hit Peak In ‘Next Few Weeks’
[Posted: April 16, 2026] PA Environment Digest
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