If you’re a PECO customer, brace yourself — your electricity bill could jump significantly starting this June. Most people haven’t heard the news yet, but a massive increase in a little-known part of your energy bill is about to hit homeowners across Pennsylvania hard. The good news? You don’t have to sit back and take it.
This blog will break down what’s happening with PECO’s rates, how it affects your electricity bill, and why going solar now may be the smartest financial decision you can make.
Why Are PECO Prices Going Up? The PJM Capacity Auction Explained
PECO is part of a regional electricity grid operated by an organization called PJM. Each year, PJM holds what’s called a “capacity auction.” This auction isn’t about buying electricity — it’s about making sure power plants are available to supply electricity during the hottest, most demanding days of the year. Think of it like an insurance policy to keep the lights on when everyone cranks up their AC.
This year, something big happened: the cost of that insurance skyrocketed.
In the most recent PJM capacity auction, prices increased by over 500%. This means PECO and other utilities will now have to pay much more just to secure backup electricity — and they’re passing that cost straight onto your monthly bill.
What Are Capacity Rates and Why Should You Care?
Most people have never heard of capacity rates. But they’re one of several components that make up the total price you pay per kilowatt-hour (kWh) of electricity.
Capacity rates aren’t for electricity you actually use. They’re fees paid to ensure power plants are ready to deliver energy if demand spikes. While they’ve always been a part of your energy supply cost, the recent spike means they’ll soon be a much larger portion of your bill.
This change will directly impact PECO’s total supply rate — the amount you pay per kWh — starting this summer.
How Big Is the Price Increase for Homeowners?
Here’s where it gets real.
Before the auction, the capacity rate was around $54.95 per megawatt-hour (MWh). Now it’s jumping to $269.92 per MWh — nearly five times more.
To show what this means for the average home, we need to consider something called “load factor,” which refers to how consistently a household uses electricity. The average residential home has a load factor of around 30%.
With that in mind:
- Under the old rate, a 30% load factor household paid around $0.00763/kWh in capacity costs.
- Under the new rate, that same household will pay about $0.03748/kWh.
That’s an increase of over $0.0298 for every kWh — and if you use about 1,000 kWh per month, you could see your bill rise by $30 or more per month just from this one change. That’s before any other utility rate increases take effect.
Why Solar Is the Only Real Way to Protect Yourself
Electricity prices from your utility are out of your control. But what powers your home? That’s up to you.
With solar energy, you can take control of your electricity costs and lock in a much lower, predictable rate for decades. Instead of riding the roller coaster of rate hikes, you generate your own clean power on your roof and dramatically reduce — or even eliminate — your monthly electric bill.
Butterfly makes the switch simple. Our team of local experts walks you through everything, from design to installation, with no-pressure consultations and zero upfront cost options for qualified homeowners.
Plus, incentives and tax credits are still available, which can help reduce the cost even further.
PECO Customers: Don’t Wait for Your June Bill to Shock You
The spike in capacity prices is set to kick in this June. That means if you’re a PECO customer, your summer bills could be much higher — even if you don’t change how much electricity you use.
The good news? You don’t have to accept higher bills as the new normal.
Instead, schedule a free solar savings assessment with Butterfly today. We’ll show you how much you could save with a custom solar system designed for your home, backed by a local team you can trust.
Get a Free Solar Savings Assessment
Find out if your roof qualifies.
Our team at Butterfly will run a custom solar savings report for your home — no pressure, no obligation. Just the facts on how much you could save and how solar can help you beat the coming rate hikes.
