Pennsylvania Electricity Rates: Save More

Pennsylvania electricity rates are rising, and most residents are paying more than they need to. The average residential rate hit 20.28 cents per kilowatt-hour in late 2025, pushing the typical monthly bill to $158.83. That's roughly 8-12% above the national average — and it represents a sharp jump driven by an unprecedented spike in wholesale capacity costs.

Here's what many Pennsylvanians do not realize: PA has been a deregulated electricity market since 1996. You can choose your electricity supplier, and the best fixed-rate plans available right now run as low as 6.89 cents per kWh for supply alone. The difference between your default utility rate and a competitive supplier plan could save you hundreds of dollars a year. This guide will show you exactly how Pennsylvania's electricity market works, what you're paying, and how to pay less.

How Pennsylvania's Electricity Market Works

Pennsylvania deregulated its electricity market in 1996 under the Electricity Generation Customer Choice and Competition Act. By January 2011, every residential customer in the state had the ability to choose their electricity generation supplier. Today, over 1.27 million PA households have switched to a competitive supplier.

The system works like this. Your local utility — called an Electric Distribution Company (EDC) — still owns the poles, wires, and meters. They deliver electricity to your home, read your meter, handle outages, and send your bill. What changed with deregulation is that you get to choose who generates your electricity.

Electric Distribution Companies (EDCs) handle delivery. They maintain the grid infrastructure and charge regulated delivery rates set by the Pennsylvania Public Utility Commission (PUC). Competitive electricity suppliers sell generation. There are 43-50+ licensed suppliers competing for your business, offering different rates, contract lengths, and plan types. The PA PUC oversees the entire system — licensing suppliers, setting delivery rates, publishing comparison data, and resolving consumer complaints.

When you switch suppliers, nothing changes physically. The same wires deliver the same electricity to your home. The same utility reads your meter and responds to outages. The only thing that changes is the generation charge on your bill — and that's where the savings come in.

If you do not choose a supplier, your EDC provides electricity at a rate called the Price to Compare (PTC). This is the default generation rate, set through PUC-managed competitive procurement auctions. The PTC changes typically on June 1 and December 1 each year, and it's printed on every customer's electric bill.

What Pennsylvanians Actually Pay

Let's look at the real numbers. Pennsylvania electricity rates have been climbing steadily, with a sharp acceleration in 2025.

Rate trends (2023-2026):

Year	Average Rate (cents/kWh)	Average Monthly Bill
2023	18.10	$143.10
2024 (Aug)	17.60	—
2025 (Aug)	19.90	—
2025 (Dec)	20.28	$158.83
2026 (Mar)	18.00	—

The average Pennsylvania household uses about 791 kWh per month. At current rates, that puts the typical monthly bill around $159 — slightly above the national average of $155.

But here's what's important: these are averages. If you're on your utility's default rate and have not shopped for a competitive supplier, you may be paying significantly more than you need to. The best fixed-rate supplier plans in PECO territory are running as low as 6.89 cents per kWh for generation, compared to PECO's Price to Compare of 11.024 cents per kWh. That's a potential savings of over 4 cents on every kilowatt-hour you use.

Understanding your bill is the first step toward paying less. For a detailed breakdown of what every line item means, read our guide on how to read your electric bill and spot overcharges.

Why Rates Spiked: The PJM Capacity Auction

The single biggest factor behind recent PA rate increases is something most consumers have never heard of: PJM capacity auctions.

PJM Interconnection operates the regional power grid that serves Pennsylvania and 12 other states. Every year, PJM holds an auction where power generators bid to provide capacity — essentially guaranteeing they'll be available when demand peaks. Utilities pass these capacity costs through to customers.

In 2024-2025, the capacity auction cleared at $28.92 per megawatt-day. For 2025-2026, that price exploded to $269.92 per megawatt-day — an 833% increase. The 2026-2027 auction went even higher, clearing at $329.17 per megawatt-day.

What caused this? Data centers. The explosive growth of AI and cloud computing has created enormous new electricity demand. PJM projects that large-load users (primarily data centers) could demand 32,000 megawatts by 2030, up from 10,000 megawatts currently. Data centers were responsible for roughly 63% of the 2025-2026 capacity price spike — about $9.3 billion of the $14.7 billion increase.

For PA customers specifically, the 2025-2026 capacity costs added approximately $2.18 billion to electricity bills statewide. Residential bills increased 10-20% starting in June 2025.

Governor Shapiro negotiated a price cap ($175-$325 per megawatt-day floor/ceiling) that is saving PA customers roughly $4 billion between 2026 and 2028. But capacity costs remain elevated, and future auctions have already hit FERC's price cap at $333.44 per megawatt-day. This is not a temporary blip — it's a structural shift in what electricity costs in this region.

The PA PUC voted 5-0 to launch a formal review of data center grid impacts and is drafting rules for how large electricity users pay for power. A new PA law specifically aims to protect residential ratepayers from speculative data center demand. These are positive steps, but they will take time to produce results.

Comparing Pennsylvania's Major Utilities

Your utility determines your delivery charges and your default generation rate (PTC). Here's how the major EDCs compare.

Utility	Service Area	Price to Compare	Notes
PECO (Exelon)	Philadelphia, Bucks, Chester, Delaware, Montgomery counties	11.024 cents/kWh	Lowest PTC; most competitive supplier market
PPL Electric	Allentown, Bethlehem, Harrisburg, Lancaster, Scranton	~10.771 cents/kWh	$356M rate increase pending (decision by July 2026)
Duquesne Light	Pittsburgh area (Allegheny, Beaver, Butler counties)	13.75 cents/kWh	Highest PTC among major utilities
Met-Ed (FirstEnergy)	Eastern PA	~12.965 cents/kWh	122 supplier offers available; 24.3% of customers switched
Penelec (FirstEnergy)	Northern/central PA (rural)	~11.747 cents/kWh	Serves 30+ counties, mostly rural areas
Penn Power (FirstEnergy)	Western PA (Butler, New Castle area)	~12.606 cents/kWh	Smallest FirstEnergy subsidiary in PA

Key takeaways from this table:

PTCs currently range from about 10.77 cents to 13.75 cents per kWh across the state. These are generation-only rates — your total bill also includes delivery charges, transmission, taxes, and surcharges. Remember, the PTC is what you're trying to beat when shopping for a competitive supplier.

PECO territory in southeastern PA has the most competitive supplier market due to high customer density and proximity to PJM wholesale markets. If you're a PECO customer, you have the most options and the best chance of finding a rate well below the PTC.

PPL has filed for a $356 million distribution rate increase — its first in over a decade. If approved, this would add roughly $13 per month to the average residential bill. A decision is expected by July 2026. On the positive side, PPL is investing $8+ billion in grid improvements between 2026 and 2029, and its customers saw a 25% reduction in outages in 2025 compared to 2024.

How to Shop for a Cheaper Rate

Shopping for electricity in Pennsylvania is straightforward once you understand the process. The official comparison tool is PAPowerSwitch.com, operated by the PA PUC. It's free, unbiased, and lists every licensed supplier offer available in your area.

Step 1: Find your Price to Compare. Look at your most recent electric bill. Your PTC is listed clearly — it's the generation rate your utility charges by default. This is your benchmark. Any supplier rate below your PTC saves you money on generation charges.

Step 2: Visit PAPowerSwitch.com. Enter your ZIP code and your utility. The site will display all available supplier offers, including the rate per kWh, contract length, cancellation fees, and whether the plan is fixed or variable.

Step 3: Compare apples to apples. When comparing supplier rates to your PTC, make sure you're comparing generation charges only. Your delivery charges stay the same regardless of supplier. Look for monthly fees, early termination fees, and auto-renewal terms that could eat into your savings.

Step 4: Enroll with your chosen supplier. You can sign up online or by phone directly with the supplier. Once enrolled, the switch completes in just 3 business days under PA's accelerated switching rules.

Step 5: Know your cancellation rights. PA law gives you a 3-business-day cancellation window on any new electricity supply contract. If you change your mind, you can cancel without penalty within that window.

Here's what the current market looks like: the average residential supply rate across PA is about 13.7 cents per kWh, but the best fixed-rate plans in PECO territory go as low as 6.89 cents per kWh. With PECO's PTC at 11.024 cents, that's a savings of over 4 cents per kWh — roughly $32 per month for a household using 791 kWh. Over a year, that adds up to nearly $400.

Fixed vs Variable Plans: Which Is Right for You?

This choice matters more than most people think. Here's how the two main plan types compare in Pennsylvania.

Feature	Fixed Rate	Variable Rate
Price per kWh	Locked for contract term	Changes monthly
Contract length	6-36 months typical	Month-to-month
Early termination fee	Varies by supplier	None
Price predictability	High	Low
Winter price risk	None (rate is locked)	Significant
Best for	Most households	Short-term situations

Fixed-rate plans are better for most Pennsylvania households. You lock in a generation rate for the contract period, and it does not change regardless of what happens in the wholesale market. Given the volatility of PJM capacity auctions and seasonal price swings, rate stability is worth a lot.

Variable-rate plans adjust monthly based on market conditions. They might look attractive when wholesale prices are low, but they carry real risk. When capacity costs spiked 833% in the 2025-2026 auction, variable-rate customers felt the impact directly. Winter heating season also brings higher demand and higher prices.

Introductory-rate plans offer a low initial price that adjusts after the promotional period. These can be good deals if you set a reminder to shop again before the introductory rate expires. If you forget, you'll likely end up on an expensive variable rate.

If you can shift your electricity usage to off-peak hours, Pennsylvania does offer time-of-use (TOU) options through FirstEnergy utilities (Met-Ed, Penelec, Penn Power). TOU plans have three tiers — on-peak, off-peak, and super off-peak — and can save money if you run major appliances, charge EVs, or do laundry during cheaper periods. Our guide on time-of-use electricity rates explains how to make this work.

The bottom line: unless you're moving soon or have a specific short-term need, lock in a fixed rate.

Hidden Fees and Traps to Watch

Pennsylvania's competitive electricity market is well-regulated, but there are still pitfalls. Watch for these:

Monthly service fees. Some supplier plans include a flat monthly fee ($5-10) on top of the per-kWh rate. This effectively raises your cost per kilowatt-hour, especially if your usage is lower than average. Always check whether a plan has monthly fees before comparing its rate to your PTC.

Early termination fees. If you need to break a fixed-rate contract before it expires, you may owe a cancellation fee. These vary by supplier and plan. Before signing up, know the ETF amount and calculate whether the savings over the contract term still justify the commitment.

Auto-renewal at higher rates. Many supplier contracts auto-renew when the term expires — often onto a variable rate that's significantly higher than your original fixed rate. Mark your contract end date on your calendar and shop for a new plan 4-6 weeks before it expires.

"Teaser" variable rates. A supplier offers an enticingly low variable rate for the first month or two, then the rate adjusts to market conditions. In PA's current environment of elevated capacity costs, those adjustments can be painful.

Green plan premiums. Some 100% renewable energy plans charge a premium over comparable conventional plans. Others do not. Compare the actual rates rather than assuming green plans cost more — you might be surprised.

Confusing plan names. Suppliers sometimes use marketing language ("guaranteed savings," "price protection") that does not mean what you think. Always look at the actual rate per kWh, contract length, and fee schedule rather than relying on plan names.

Your best protection is reading the plan details on PAPowerSwitch.com carefully. The PUC requires suppliers to disclose all terms, rates, and fees. Take five minutes to read the fine print — it could save you from an expensive surprise.

Solar Energy and SRECs in Pennsylvania

Pennsylvania offers meaningful financial incentives for solar, though the landscape shifted significantly in 2026.

Net metering is available from all investor-owned utilities at a 1:1 retail rate credit. If your solar panels produce more electricity than you use in a given month, the excess carries forward at full retail value. At the end of the year, any remaining surplus is credited at the Price to Compare rate. Residential systems can be up to 50 kW, and you can aggregate meters on properties within 2 miles under the virtual meter aggregation rule.

One important watch item: PPL Electric has proposed replacing 1:1 retail credits with hourly wholesale (LMP-based) credits, with a decision expected around July 2026. If approved, this would significantly reduce the financial return on solar for PPL customers.

SRECs (Solar Renewable Energy Credits) provide additional income for solar owners. You earn 1 SREC for every 1,000 kWh your system generates. Current SREC prices range from $22.50 to $35 per credit. A typical 10 kW residential system generating about 12,000 kWh per year would earn roughly 12 SRECs annually — that's $270 to $420 in additional income on top of your net metering savings. SRECs have a 3-year useful life, so you can bank them and sell when prices are favorable.

The federal tax credit situation changed in 2026. For residential solar systems installed on or after January 1, 2026, there is no direct federal residential solar tax credit. This is a significant change from previous years. However, if you go with a solar lease or power purchase agreement (PPA), the third-party owner can claim the 48E commercial credit and pass the savings through as lower monthly payments.

Community solar is not yet available in Pennsylvania. Legislation (HB 1155) passed the PA House 114-89 in May 2025, but Senate passage is considered unlikely in the current session. If enacted, community solar would allow residents who cannot install rooftop panels to subscribe to local solar farms and receive bill credits.

Pennsylvania's Alternative Energy Portfolio Standards (AEPS) require electricity suppliers to source a percentage of power from renewable sources, with a solar carve-out of 0.5%. Proposed legislation (HB 501, the PRESS Bill) would increase the overall renewable requirement to 35% by 2035, which would significantly boost SREC demand and prices if passed.

For a complete guide to going electric at home, including heat pumps and other efficiency upgrades, see our whole-home electrification guide.

Low-Income Assistance and Winter Protections

Pennsylvania has some of the strongest utility assistance programs in the country. If you're struggling with electricity bills, multiple programs can be combined to provide substantial relief.

LIHEAP (Low Income Home Energy Assistance Program)

The 2025-2026 LIHEAP season runs from December 3, 2025 through May 8, 2026. Grants range from $200 to $1,000 based on household size, income, and fuel type. You can apply online at pa.gov, by phone, or through your local County Assistance Office.

CAP (Customer Assistance Programs)

Every major PA utility is required by law to offer a Customer Assistance Program. CAP sets your monthly payment based on your income rather than your actual electricity usage. This can dramatically reduce bills for eligible households.

Income limits for CAP (as of January 2026):

Household Size	Monthly Income Limit
1 person	$1,995
2 persons	$2,705
3 persons	$3,415
4 persons	$4,125
Each additional	Add $710

General eligibility is household income at or below 150% of the Federal Poverty Level — about $23,475 per year for an individual or $48,225 for a family of four.

Additional Assistance Programs

PECO Customer Relief Fund — Reopened March 2, 2026. Provides a one-time grant of $750 for limited- and middle-income customers earning 151-300% of the Federal Poverty Level (up to $96,450 annually for a family of four). PECO also added $2.5 million in aid for low-income customers in January 2026.

Dollar Energy Fund Hardship Programs — Available through October 2026. Grants up to $600 through FirstEnergy utilities or $500 through others. You must have paid at least $150 in the past 3 months ($100 if you're 62 or older).

PECO Matching Energy Assistance Fund (MEAF) — A pledge program where PECO matches customer contributions to help low-income households with bill payment.

Winter Shutoff Moratorium

Pennsylvania law prohibits utility shutoffs for low-income customers from December 1 through March 31. This protection applies to households with income at or below 250% of the Federal Poverty Level. Utilities also cannot shut off service on Fridays, Saturdays, Sundays, holidays, or the day before a holiday, regardless of the time of year.

If you have a serious medical condition, a medical certificate signed by a physician, PA, or nurse practitioner can prevent shutoff for up to 30 days.

The key takeaway: these programs can be stacked. A low-income household could potentially receive LIHEAP grants, enroll in CAP for income-based payments, get a Dollar Energy Fund hardship grant, and receive weatherization services — all at the same time. If you qualify, apply for everything.

Energy Efficiency: Act 129 and Utility Rebates

Pennsylvania's Act 129 requires the seven largest utilities to offer energy efficiency programs funded through a small surcharge on customer bills. Since 2009, these programs have saved 8.8 million megawatt-hours of electricity and returned $6.4 billion in savings to PA customers.

Phase IV of Act 129 runs through June 2026, and Phase V has been approved through May 2031. Available programs include:

• Rebates for high-efficiency appliances and lighting
• Free home energy audits to identify where you're wasting energy
• Smart thermostat programs — a smart thermostat is one of the highest-impact upgrades you can make
• Heat pump rebates — PECO offers up to $1,950 and PPL offers up to $450 toward heat pump installation
• Weatherization services available in all 67 PA counties for income-qualified households
• Demand response programs that pay you for reducing usage during peak periods

These rebates and services are available from PECO, PPL, Duquesne Light, Met-Ed, Penelec, Penn Power, and West Penn Power. Contact your utility or visit their website to see what's currently available.

A home energy monitor can help you identify exactly where your electricity is going, so you know which upgrades will save you the most. For a comprehensive approach to reducing energy costs, our guide on how to cut your electric bill in half covers strategies that work particularly well in PA's climate.

Grid Reliability and What's Coming

Pennsylvania's grid is part of the PJM Interconnection, which serves 13 states and the District of Columbia. Unlike Texas's isolated ERCOT grid, PJM is connected to neighboring systems and can import and export power — a significant reliability advantage.

Smart Grid Progress

Act 129 required utilities with 100,000+ customers to deploy smart meters. Approximately 5.9 million smart meters are now installed across the state. These enable real-time usage monitoring, faster outage detection, and time-of-use pricing options.

PPL has planned 55+ large-scale grid strengthening projects for 2026, part of an $8+ billion infrastructure investment between 2026 and 2029. Their smart grid devices helped achieve a 25% reduction in outages in 2025 compared to 2024.

The Data Center Challenge

The biggest emerging threat to PA electricity affordability is data center growth. The numbers are staggering:

• PPL alone has requests exceeding 9 GW of new load — more than doubling its 7.5 GW summer peak within 5-6 years
• PJM projects large-load users could demand 32,000 MW by 2030 (up from 10,000 MW currently)
• Data centers were responsible for 63% of the 2025-2026 capacity price spike
• 30-40% of utility demand could eventually come from data centers

The PA PUC voted unanimously to examine these impacts and develop a policy framework. A new state law aims to protect residential ratepayers from bearing the cost of speculative data center demand. The PUC is drafting rules for how large electricity users pay for power — the outcome of this process will directly affect what you pay.

Interconnection Modernization

The PUC also voted unanimously in December 2025 to modernize electric interconnection regulations, making it easier to connect solar, battery storage, and other distributed generation to the grid. This is important for the long-term growth of rooftop solar and community energy in Pennsylvania.

Frequently Asked Questions

Can I really choose my electricity supplier in Pennsylvania?

Yes. Since 1996 — fully implemented by 2011 — every residential customer in PA can choose their electricity generation supplier. Your local utility still delivers the power and handles outages. Over 1.27 million PA households have already switched. Visit PAPowerSwitch.com to see available offers in your area.

Will I lose power if I switch suppliers?

No. Your utility (PECO, PPL, Duquesne Light, etc.) still delivers electricity through the same wires regardless of your supplier. Switching only changes who generates your power. There is no interruption in service — the switch completes in 3 business days.

What is the Price to Compare, and where do I find it?

The Price to Compare (PTC) is the generation rate your utility charges if you do not choose a competitive supplier. It appears on every PA electric bill. Any supplier rate below your PTC means you save money on generation charges. Current PTCs range from about 10.77 cents to 13.75 cents per kWh depending on your utility.

How much can I actually save by switching suppliers?

It depends on your utility and usage, but the savings can be significant. For example, PECO's PTC is 11.024 cents per kWh, while the best fixed-rate supplier plans in PECO territory are around 6.89 cents per kWh. For a household using 791 kWh per month, that's roughly $32 per month or nearly $400 per year in savings on generation charges alone.

Why did my electric bill go up so much in 2025?

The primary cause is an 833% increase in PJM capacity auction prices, driven largely by data center demand. This added approximately $2.18 billion to PA electricity bills statewide and increased residential bills by 10-20%. Governor Shapiro negotiated a price cap saving PA customers about $4 billion between 2026 and 2028, but capacity costs remain elevated.

Can my electricity be shut off in winter?

Low-income customers (income below 250% of the Federal Poverty Level) are protected from shutoff between December 1 and March 31 under PA's winter moratorium. Medical certificates can also prevent shutoff for up to 30 days for serious medical conditions. Utilities cannot shut off service on Fridays, Saturdays, Sundays, or holidays at any time of year.

What help is available if I cannot afford my electric bill?

Multiple programs can be combined: LIHEAP grants ($200-$1,000), CAP income-based payment plans, Dollar Energy Fund hardship grants ($500-$600), PECO Customer Relief Fund ($750 one-time), and weatherization assistance. Contact your utility or call the PA PUC at 800-692-7380 for help navigating these programs.

Does Pennsylvania have community solar?

Not yet. Legislation passed the PA House in May 2025 but has not cleared the Senate. As of April 2026, community solar is not available in Pennsylvania. If the law eventually passes, it would allow residents to subscribe to local solar farms and receive credits on their electric bills.

Your Pennsylvania Electricity Action Plan

Here's a concrete plan to lower your electricity costs starting this week.

Today:

1. Find your most recent electric bill. Locate your Price to Compare (PTC) — the generation rate your utility charges by default.
2. Note your average monthly kWh usage. The PA average is 791 kWh, but your number may be higher or lower.

This week: 3. Visit PAPowerSwitch.com and enter your ZIP code. Filter for fixed-rate plans. 4. Compare the top supplier rates to your PTC. Focus on plans with no monthly fees and reasonable (or no) early termination fees. 5. Check contract lengths — 12-month fixed-rate plans offer a good balance of savings and flexibility. 6. Read the full plan details, including cancellation terms and auto-renewal provisions. 7. If a plan beats your PTC by 2+ cents per kWh, enroll directly with the supplier. The switch takes just 3 business days.

This month: 8. Check whether you qualify for any assistance programs — LIHEAP, CAP, Dollar Energy Fund, or your utility's customer relief fund. If you qualify, apply for all of them. 9. Visit your utility's Act 129 energy efficiency page. Look for free home energy audits, appliance rebates, and smart thermostat programs. 10. Consider a smart thermostat if you do not have one — it's the single highest-impact efficiency upgrade for most homes, and your utility may offer a rebate.

Ongoing: 11. Monitor your first two bills after switching to verify the rate matches what you signed up for. 12. Set a calendar reminder 6 weeks before your contract expires so you never get auto-renewed onto an expensive variable rate. 13. Check PAPowerSwitch.com once or twice a year — the market is competitive, and better deals appear regularly. 14. Watch for PTC changes on June 1 and December 1, which reset the benchmark for evaluating supplier offers.

Pennsylvania's deregulated market gives you real power over what you pay for electricity. The difference between passively accepting your default rate and actively shopping for a competitive plan can easily be $300-500 per year. With PJM capacity costs driving rates higher, there has never been a better time to take control of your electricity bill.