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Pennsylvania Energy Prices on the Rise: What You Need to Know for Summer 2025

May 19, 2025 | Energy Efficiency for Business, Energy News, Energy Savings

A digital graphic features bold, white, capitalized text reading "PENNSYLVANIA ENERGY PRICES ON THE RISE" on a dark blue background. On the left side is the Pennsylvania state flag with its coat of arms, and on the right is a close-up of a gray electricity meter. An orange zigzag arrow rises behind the meter, symbolizing increasing energy costs.

Brace for Higher Energy Bills in Pennsylvania

As summer approaches, Pennsylvania residents and businesses are facing a new wave of increases in their energy costs. Effective June 1, 2025, customers of several major electric utilities across the state will see significant hikes in their electricity rates, coinciding with the typical rise in energy use for air conditioning. Major providers including PECO, PPL Electric Utilities, Duquesne Light Company, and FirstEnergy’s Pennsylvania companies (Met-Ed, Penelec, Penn Power, and West Penn Power) are all raising their prices.

In addition to these electricity rate adjustments, some Pennsylvania natural gas customers have already seen supply costs rise this spring, with further increases impacting other gas utility customers starting in June. This article will detail these price changes, explain the primary reasons for the increases, and offer Pennsylvanians practical information and actionable steps to help manage or avoid these higher costs.

Electricity Price Increases: What to Expect June 1, 2025

These adjustments will establish new ‘Prices to Compare’ (PTC) for electricity supply from major utilities for customers not on a competitive plan. The PTC serves as the benchmark to use when shopping for an alternative supplier and changes will lead to higher bills for many. Here’s a utility-by-utility breakdown:

PECO

Customers of PECO in Philadelphia and the surrounding areas will see an increase in their electric Generation Supply Adjustment (GSA) charges starting June 1, 2025, and running through November 30, 2025. The GSA, which is the largest component of your Price to Compare, covers the cost of the electricity itself.

    • For residential customers (Rate classes R and RH), PECO’s GSA is set to rise to $0.09508 per kilowatt-hour (kWh). This is approximately 13.4% higher than the current GSA of $0.08381 per kWh.
    • Small commercial and industrial (C&I) customers with demand at or under 100 kW will also experience GSA increases of roughly 20.6% to 20.7%, depending on their specific rate class.

It’s also noted that starting June 1, 2025, PECO will be using a six-month fixed GSA and Price to Compare for these customer classes, a shift from the previous quarterly rate changes.

FirstEnergy Utilities

For the period of June 1, 2025, through November 30, 2025, customers of FirstEnergy’s Pennsylvania-based utility companies will face increased Price to Compare (PTC) rates for their electricity supply.

  • Met-Ed:
      • Residential: The Price to Compare is set to increase from 11.011 cents per kilowatt-hour (kWh) to approximately 11.903 cents/kWh. This represents a rise of roughly 8.1%.
      • Commercial: The Price to Compare for commercial customers (including rate classes GS-S, GS-M (PTC), MS, and various lighting services) will increase from 11.048¢/kWh to 11.574¢/kWh, a 4.8% increase.
  • Penelec:
      • Residential: The Price to Compare will rise from 10.474 cents/kWh to approximately 11.003 cents/kWh, an increase of about 5.1%.
      • Commercial: The Price to Compare for commercial customers (including rate classes GS-S, GS-M (PTC), H, and various lighting services) will increase from 10.382¢/kWh to 11.405¢/kWh, a 9.9% increase.
  • Penn Power:
      • Residential: The Price to Compare is increasing from 11.168 cents/kWh to approximately 11.857 cents/kWh, representing an approximate 6.2% increase.
      • Commercial: The Price to Compare for commercial customers (including rate classes GS-S, GS-M (PTC), PNP, PLS, SV, and outdoor lighting) will increase from 12.098¢/kWh to 12.726¢/kWh, a 5.2% increase.
  • West Penn Power:
      • Residential: The Price to Compare is set to increase from 9.481 cents/kWh to approximately 10.317 cents/kWh, a rise of roughly 8.8%.
      • Commercial: The Price to Compare for commercial customers (including rate classes GS-S, GS-M (PTC), 51-58, 71, and outdoor lighting) will increase from 10.013¢/kWh to 10.536¢/kWh, a 5.2% increase.

PPL Electric Utilities

Customers of PPL Electric Utilities are also set for a notable rate hike effective June 1, 2025. This follows a previous increase that took effect in December 2024. The new rates are effective for the period from June 1, 2025, through November 30, 2025.

  • Residential Customers:
      • The Price to Compare (PTC) will rise by approximately 16%, moving from 10.771 cents per kilowatt-hour (kWh) to 12.491 cents/kWh.
  • Small Business Customers:
      • PPL Electric Utilities announced that the Price to Compare for its small business customers will increase from 10.446¢/kWh to 12.114¢/kWh. This represents an approximate 16.0% increase.

Duquesne Light Company (DLC)

Residents in Pittsburgh and surrounding areas served by Duquesne Light Company (DLC) will also see an increase in their electricity costs effective June 1, 2025.

  • Residential Customers:
      • The Price to Compare (PTC) is set to jump by over 15%, moving from the current rate of 8.4472 cents per kilowatt-hour (kWh) to 9.7093 cents/kWh.
  • Business Customers: Duquesne Light’s website provides estimated new Price to Compare rates for various business classes, also effective June 1, 2025. The impact varies significantly by class:
      • General Service Small (GS): The estimated new PTC will be 10.01¢/kWh, an increase of approximately 8.1% from the March 1, 2025, PTC of 9.26¢/kWh.
      • General Service Medium (GM < 25 kW demand): The estimated new PTC will be 10.24¢/kWh, up by approximately 7.8% from the March 1, 2025, PTC of 9.50¢/kWh.
      • General Service Medium (GM > 25 kW and < 200 kW demand): This class sees a very significant estimated increase, with the new PTC at 12.05¢/kWh, up by approximately 61.7% from the March 1, 2025, PTC of 7.45¢/kWh.
      • General Service Medium Heating (GMH > 25 kW and < 200 kW demand): This class also faces a substantial estimated hike, with the new PTC at 11.45¢/kWh, up by approximately 67.4% from the March 1, 2025, PTC of 6.84¢/kWh.

Natural Gas Customers Also See Price Hikes

It’s not just electricity bills that are giving Pennsylvanians pause; natural gas commodity supply costs have also seen recent increases for some customers.

Peoples Natural Gas Company LLC

Peoples Natural Gas Company LLC implemented adjustments to its Price to Compare (PTC) for natural gas supply this spring.

    • For residential customers, an April 1, 2025, quarterly adjustment resulted in the PTC increasing by a further 14% to $4.2511 per Mcf (thousand cubic feet). This followed a significant interim adjustment effective March 1, 2025, which had already raised the residential PTC by 43% to $3.7172 per Mcf.
    • Small Business Impact (April 1st): Peoples Natural Gas Company LLC’s Small General Service (SGS) Non-Priority One customers also experienced an increase. Their Price to Compare rose by about 12% to $5.0038 per Mcf on April 1st, up from the interim March 1st rate of $4.4797 per Mcf.

Columbia Gas of PA

Columbia Gas of PA also announced an upcoming increase to its gas supply cost rate, effective June 1, 2025.

    • For residential customers, the rate is set to increase from $0.23002 per therm to $0.28903 per therm. This represents an increase of about 25.6% in the gas supply cost rate.

National Fuel Gas

Earlier in the year, National Fuel Gas implemented an increase in its gas supply charges effective February 1, 2025

    • The utility’s price-to-compare gas commodity charge rose to $0.45876 per ccf

Behind the Hikes: Why Are Pennsylvania Energy Costs Surging?

Understanding why these energy prices are climbing involves looking at a few key factors impacting the wholesale energy markets and utility operations.

PJM Capacity Costs (Primary Driver for Electricity)

The most significant factor driving up the June 1, 2025, electricity Price to Compare (PTC) for many Pennsylvanians is a dramatic increase in “capacity costs.” Capacity costs are fees paid to ensure there’s enough power generation available to meet peak demand, especially during extreme weather, thereby ensuring grid reliability.

PJM Interconnection, the regional grid operator for Pennsylvania and 12 other states, holds annual auctions to secure these capacity commitments from power generators. In its June 2024 capacity auction (which secures capacity for the June 2025 – May 2026 period), prices surged dramatically – by 833% compared to the previous year. The PJM auction prices jumped from about $29/MW-day to nearly $270/MW-day. These substantially higher wholesale capacity costs are now being passed through by utilities to their default service customers. This PJM capacity cost increase alone is expected to translate to a 10-20% rise in typical residential electricity bills and potentially up to a 29% increase for businesses across Pennsylvania starting in June 2025.

Rising Fuel Costs (Especially Natural Gas)

Natural gas is a significant fuel source for electricity generation in the region. The rising and often volatile cost of natural gas has a direct impact on the wholesale price of electricity. These higher fuel expenses are then passed on to consumers through the Price to Compare for electricity.

Utility Infrastructure Investments

To ensure the safety and reliability of the energy grid, utility companies continuously invest in upgrading and maintaining their transmission and distribution infrastructure – the poles, wires, and pipes that deliver electricity and natural gas. While crucial for providing reliable service, the costs associated with these ongoing investments are recovered through customer rates over time and can contribute to adjustments in the overall bill, though they are distinct from the direct supply costs reflected in the PTC.

Other Specific Factors (Natural Gas)

For natural gas rates specifically, other factors like adjustments to the Merchant Function Charge (MFC) can also contribute to changes in the overall Price to Compare for customers.

Empowering Consumers: How to Manage Rising Energy Bills in PA

While rising energy prices present a challenge, Pennsylvania consumers are not without options. Understanding your bill, exploring the competitive energy market, conserving energy, and knowing where to find assistance can help you manage these increased costs.

Understand Your Bill and Rates

A key part of your utility bill is the “Price to Compare” (PTC). This is the rate you pay for the actual electricity or natural gas supply if you are a “default service” customer, meaning you haven’t chosen a competitive energy supplier. The PTC, which typically accounts for 40% to 60% of a total utility bill (though this varies), serves as a benchmark to help you compare offers from different suppliers. For electricity, the PTC generally covers generation and sometimes transmission costs, depending on your utility.

Shop for Competitive Energy Suppliers (Electricity & Natural Gas)

Pennsylvania has a deregulated energy market, which means in most areas, you can choose the company that supplies your electricity and natural gas. This provides an opportunity to potentially find a rate lower than your utility’s PTC or a plan with other desirable features.

When comparing offers from competitive suppliers, consider these factors:

    • Price: Compare the price per kilowatt-hour (kWh) for electricity or per Mcf/Ccf for natural gas.
    • Plan Type: Is it a fixed rate (which provides price stability for a set term) or a variable rate (which can fluctuate monthly with market conditions)?
    • Contract Length: How long is the term of the contract (e.g., 6, 12, 24 months)?
    • Additional Fees: Check for any monthly service fees, early termination fees if you cancel before the contract ends, or other charges.
    • Renewable Energy Options: Some suppliers offer plans with electricity generated from renewable sources.

Implement Energy Efficiency and Conservation Measures

One of the most direct ways to manage higher energy prices is to reduce your overall consumption. Both homes and businesses can benefit from implementing energy efficiency and conservation measures. Even small changes can add up to noticeable savings on your utility bills. Consider these tips:

    • Adjust your thermostat: Especially when you’re not home or during sleeping hours.
    • Switch to LED lighting: LEDs use significantly less energy and last much longer than incandescent bulbs.
    • Unplug electronics and appliances: Many devices consume “phantom power” even when turned off. Unplug them or use smart power strips.
    • Seal air leaks: Check for drafts around windows, doors, and other openings and seal them with caulk or weather stripping.
    • Maintain your HVAC system: Regularly change air filters and have your heating and cooling systems professionally serviced to ensure they run efficiently.
    • Consider a home or business energy audit: This can help identify specific areas where you can achieve the most significant energy savings.

Explore Bill Assistance Programs

For households facing financial hardship and struggling to pay their energy bills, several assistance programs are available in Pennsylvania. It’s crucial to reach out and explore these options if you need help:

    • Low-Income Home Energy Assistance Program (LIHEAP): This federally funded program provides cash assistance to help eligible low-income households pay their heating and cooling bills. You can find information and application details on the Pennsylvania Department of Human Services website.
    • Customer Assistance Programs (CAPs): Most major utilities (including PPL, FirstEnergy companies, and Duquesne Light) offer CAPs. These programs can provide eligible low-income customers with a reduced monthly bill based on their income and energy usage. Contact your specific utility to inquire about eligibility and enrollment.
    • Hardship Funds/Emergency Assistance: Some utilities, like PPL (with its “Operation HELP” program) and FirstEnergy and Duquesne Light (with hardship funds), offer grants or emergency assistance to customers experiencing temporary financial difficulties in paying past-due balances.
    • Payment Arrangements: If you’re having trouble paying your bill, contact your utility directly. They may be able to work out a payment plan to help you catch up on past-due amounts.
    • 211 Helpline: By dialing 211, you can get connected with various health and human service programs in your area, including energy assistance resources.

Don’t hesitate to contact your utility provider directly or call 211 to learn more about these programs and determine your eligibility. Early intervention is key.

Understand Your Current Supplier Contracts (If Applicable)

If you’ve already switched to a competitive electric generation supplier (EGS) or natural gas supplier (NGS), it’s important to stay informed about your current contract terms:

    • Know Your Contract Expiration Date: Be aware of when your current contract term ends.
    • Review Renewal Notices Carefully: Suppliers are required to send you two notices before your contract expires:
        • An Initial Notice 45-60 days prior to the contract’s expiration.
        • An “Options Notice” at least 30 days before the contract ends.
    • Understand Your Options: The “Options Notice” is particularly important as it will detail the supplier’s proposed changes to your current terms of service if you allow the contract to renew. It will also outline your other options, such as shopping for another supplier or returning to the utility’s default service (the PTC rate).
    • Contact Your Supplier: You can also contact your current supplier to discuss other potential offers or products they may have available before your contract expires.

If you have questions about the end of your contract, your first point of contact should be your current supplier.

Your Power to Choose in Pennsylvania’s Changing Energy Market

With electricity rates rising on June 1st for many Pennsylvanians, on top of recent natural gas price hikes for some, it’s clear the energy market is in flux. While complex factors like wholesale capacity and fuel costs are at play, the power to respond effectively still rests with you.

Don’t let these default rate increases dictate your energy expenses. Pennsylvania’s deregulated market empowers you to shop for alternative electricity and natural gas suppliers. Combined with smart energy conservation and awareness of assistance programs, these choices can help you take significant control of your costs. Now is the time to explore your options and make informed decisions.

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