Gov Shapiro Saves 1.7M PA Consumers $510M on Utility Bills | Commonwealth of Pennsylvania

Harrisburg, PA - Today, Governor Josh Shapiro announced that PECO, Pennsylvania's largest utility company, will withdraw a recent proposed rate case before the Pennsylvania Public Utility Commission (PUC) that would have increased electricity and natural gas bills for customers across southeastern Pennsylvania. The withdrawal is a major win for the people of Pennsylvania and is the result of the Governor's direct engagement with the utility company. The action will prevent unreasonable price increases for 1.7 million Pennsylvanians.

PECO's rate requests would have increased average residential electric bills by roughly $20.08 per month and natural gas bills by approximately $14.52 per month beginning in 2027. The withdrawn rate case would have marked PECO's third rate increase since 2022. Thanks to the Governor's direct engagement and PECO's acknowledgement of the reality many families are facing, Pennsylvania consumers will save $510 million - up to $34 per month for some households.

"Pennsylvanians are already being squeezed by rising costs from the Trump Administration's chaotic economic policies and the war in Iran - but my Administration is doing everything we can to cut costs and protect consumers," said Governor Shapiro. "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. 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."

"While PECO put forward a plan to make needed investments to strengthen the safe and reliable delivery of energy to our customers and communities, we recognize that keeping bills as low as possible must be the top priority right now," said David Vahos, PECO President and CEO. "With families and businesses across our region under real financial strain, we are pulling back our proposal and continuing efforts like our $12.5 million Customer Relief Fund to support low- and middle-income Pennsylvanians - without compromising the safety or reliability of the essential services we provide. We appreciate our ongoing partnership with Governor Shapiro and regional stakeholders and look forward to continuing to work together to deliver safe, reliable electric and natural gas service for the communities we are privileged to serve - all while prioritizing affordability and keeping bills as low as possible."

Following discussions with Governor Shapiro, PECO agreed to withdraw the filing and will continue investing in necessary system improvements while doing more to deliver near-term affordability for customers.

Governor Shapiro made clear that PECO must fundamentally rebalance its approach - protecting customer affordability while advancing long-term system modernization. To achieve both goals, the Shapiro Administration will continue to collaborate with PECO and other Pennsylvania utilities to encourage increased utilization of lower-cost options to finance needed system upgrades and greater reliance on cost-saving technologies that improve the performance of existing infrastructure.

The Shapiro Administration has consistently fought for energy affordability, including in Governor Shapiro's 2026-27 budget address, where he called for continued efforts to lower costs for families, ensure fair utility practices, and protect ratepayers from unnecessary price increases.

Standing Up for Energy Affordability

Governor Shapiro has made lowering costs for Pennsylvanians a central focus of his Administration's efforts around economic development and energy, consistently calling for a balanced approach that strengthens the grid, supports economic growth, and protects consumers from unnecessary rate increases.

In his 2026-27 proposed budget, the Governor advanced that commitment through new utility reform proposals and the introduction of GRID - the Governor's Responsible Infrastructure Development standards - to protect energy, environmental, and water resources, promote transparent community engagement, and deliver local jobs and community development. He also called on utilities to end "black box" settlements, ban deceptive electricity contracts, eliminate reconnection junk fees, and expand protections for low-income and vulnerable Pennsylvanians.

His Administration continues to work with utilities, regulators, and stakeholders to ensure Pennsylvania's energy system remains reliable, modern, and affordable while supporting long-term investment and job creation.

Building on a Proven Record of Lowering Energy Costs

Governor Shapiro has led efforts to lower energy costs for Pennsylvanians and consumers across the region. Earlier this year, the Governor secured an extension of his price cap through PJM Interconnection through 2030 - a move that will save 67 million Americans an additional $27 billion on their energy bills. Combined with prior savings secured through his earlier legal action against PJM and settlement, the Governor's price cap has now delivered $45 billion in total savings for PJM customers - including an estimated $806 back for the average Pennsylvania household over the next four years.

For years, Governor Shapiro has fought to stop unnecessary electricity rate increases and ensure the grid works better for consumers, taking legal action in 2024 after repeatedly pushing PJM to modernize its rules, speed up project approvals, and improve reliability to block a flawed auction design that would have driven up costs. He has continued building on that progress - convening all 13 PJM governors to drive regional reform, creating the PJM Governors Collaborative to strengthen state oversight, and advancing new policies in Pennsylvania to improve transparency and prevent unnecessary rate increases.

Governor Shapiro remains focused on ensuring Pennsylvania families have access to energy that is reliable, affordable, and built to meet future demand - without placing unnecessary financial burdens on ratepayers. The Governor has also taken action at home to strengthen oversight and protect ratepayers, signing Electricity Load Forecast Accountability provisions into law in November 2025 to give the Pennsylvania Public Utility Commission new authority to review and validate utility forecasts, increase transparency, prevent double-counting of large energy users, and protect consumers from price hikes driven by inaccurate projections - while continuing to work to prevent utility companies from jacking up rates and earning excessive profits.

Pairing Reform with Energy Growth in Pennsylvania

Governor Shapiro has made clear that protecting consumers and building new energy supply must go hand in hand. In January 2025, he introduced his commonsense energy strategy, the "Lightning Plan," to build new clean, reliable, and affordable energy projects across the Commonwealth.

Through the Lightning Plan and the PA Permit Fast Track Program, the Governor is cutting permitting delays, accelerating responsible energy development, and positioning Pennsylvania - the nation's second-largest energy producer and exporter - to build more power faster while keeping costs down. Independent analyses confirm these efforts will save consumers money, create jobs, and attract billions in new energy investment.

Governor Shapiro continues to deliver on his commitment to stand up for Pennsylvania families and businesses - ensuring reliable, affordable energy while holding powerful interests accountable.