PECO Just Filed for a 12.5% Rate Hike. Here's What It Means If You Own a Home in the Philadelphia Suburbs

By Josh McKnight | The McKnight Team

PECO Energy filed a request with the Pennsylvania Public Utility Commission on March 30 seeking a $429 million rate increase that would raise the average residential electric bill by $20 per month and natural gas bills by about $14.50 per month starting January 1, 2027. For customers who get both electricity and gas from PECO — which covers most of Montgomery, Delaware, Bucks, and Philadelphia counties — that adds up to roughly $34.50 more per month. Before this becomes a headline you scroll past, it is worth understanding what it actually means for buyers and homeowners in this market.

Who PECO Serves and What the Numbers Look Like

PECO serves approximately 1.7 million electric customers across southeastern Pennsylvania, and the proposed rate hike would push the average residential electric bill up by more than 12% starting in 2027, according to a filing submitted to the Pennsylvania Public Utilities Commission on March 30, 2026. This follows a rate increase that took effect January 1, 2025. Back-to-back hikes in a short window are frustrating for homeowners who are already managing higher costs across the board.

The company cites a $10 billion infrastructure modernization plan as justification. Critics, including Pennsylvania Governor Josh Shapiro, have pushed back hard, pointing out that PECO posted $814 million in profit in 2025 — a 47.7% jump — following the last rate increase. The Pennsylvania Public Utility Commission will review the request. Public hearings are scheduled for June. The PUC historically approves increases below what utilities request, so the final number may be lower. Nothing takes effect until the PUC rules.

How Rising Utility Costs Affect Real Estate Decisions

Energy costs matter in real estate in several direct ways. For buyers, monthly utilities factor into the true cost of homeownership. A home that looks affordable on paper can feel much less so when you add $35 extra per month on top of a mortgage, insurance, and taxes. This is especially true for buyers stretching to hit a price point in Bucks County, Montgomery County, or Delaware County where home prices have risen steadily over the past three years.

For sellers, PECO rate increases are an indirect motivation to prepare your home. Buyers and their agents are looking more closely at energy efficiency than they were five years ago. A home with newer windows, a recently replaced HVAC system, or solar panels becomes an easier sell in a market where utility bills are climbing. These are not just nice-to-haves. They are things that come up in buyer conversations and affect offers.

Home builders and buyers looking at new construction should also know that PECO ra

te pressure — combined with the surge in data center development across the region — is what is driving this request in the first place. The regional grid is under strain. That is a structural issue that will likely mean continued upward pressure on utility costs in southeastern Pennsylvania over the next several years, regardless of what the PUC approves this time.

What This Means for You

If you own a home in Bucks, Montgomery, Philadelphia, or Delaware County, now is a smart time to look at your energy use and consider whether any improvements make sense before you eventually sell. If you are buying, factor utilities realistically into your monthly budget. The gap between what PECO currently charges and what they are asking for is significant, and even if the PUC cuts the request back, some increase is likely coming.

The McKnight Team helps buyers and sellers across all four counties make smart decisions in a market where the real costs of homeownership are always part of the conversation. Visit TheMcKnightTeam.com for current market information in your area.

Thinking about buying or selling in the Philadelphia suburbs? Let's talk.

Frequently Asked Questions About PECO Rate Hikes and Homeownership

Will the PECO rate increase affect home values in Bucks and Montgomery counties? Utility costs are one factor in the overall cost of homeownership, but on their own they are unlikely to move median home prices in a meaningful way across Bucks or Montgomery County. What they can affect is buyer behavior at the margins — buyers comparing two similar homes may factor in utility efficiency, and sellers with older HVAC systems or poor insulation may face more negotiation on price.

When will the PECO rate increase take effect? PECO filed its request with the Pennsylvania Public Utility Commission on March 30, 2026. If approved as filed, the new rates would take effect January 1, 2027. Public hearings are scheduled for June 2026. The PUC review process can take up to nine months, and the commission has historically approved increases lower than what utilities originally request.

Does energy efficiency actually matter when selling a home in this area? Yes, increasingly so. Buyers in Bucks, Montgomery, Delaware, and Philadelphia counties are asking about utility costs more often than they did five years ago. A newer HVAC system, updated insulation, good windows, and a history of lower utility bills are all things that come up in buyer conversations. They do not necessarily add dollar-for-dollar to your sale price, but they reduce friction and make buyers more confident.

Is PECO the only utility serving the Philadelphia suburbs? Most of Montgomery, Delaware, Bucks, and Chester counties are served by PECO for electricity. Natural gas is also supplied by PECO in the suburbs, while within Philadelphia city limits, the Philadelphia Gas Works provides natural gas and PECO handles electricity. If you are unsure which utility services your address, your current bill will tell you.

Should I consider solar panels before selling my home in the Philadelphia suburbs? It depends on timing and cost. Solar can reduce your utility costs in the years before you sell, and some buyers place real value on it. Pennsylvania's net metering program allows PECO customers to receive credits for excess solar energy sent back to the grid, which makes the financial case stronger when rates are rising. If you are planning to sell within the next 12 to 18 months, the payback period for a new system may not work. If you have a longer runway, it is worth getting quotes and running the numbers.

Source: New Hope Free Press; 3/30/2026 & Pottstown Mercury; 4/2/2026