PHILADELPHIA (KYW Newsradio) — PECO gas customers can expect higher utility bills in 2023 after the second rate increase in two years.
On Thursday, the Pennsylvania Public Utility Commission approved a rate settlement that will allow PECO to raise prices for its natural gas customers.
PECO spokesperson Madison Davis said the final rate increase of 9% is less than the 12% they initially requested in the spring.
“The settlement was for a $54.8 million increase in natural gas distribution rates across the customer base, which is an increase of about $8.56 for the average residential customer,” said Davis.
Related
Small business bills would rise by about $20.30 each month, about a 4.8% increase, the company explained.
PECO said the increase includes grant programs and rebates for certain customers, with some funding targeted toward its Low Income Usage Reduction Program (LIURP) and Matching Energy Assistance Fund (MEAF).
The increase will also help with infrastructure investments, especially for improvements to its natural gas distribution system.
“We're going to be investing, on average, more than $300 million per year to enhance the system,” said Davis. “So that's anywhere from modernizing older infrastructure to increasing safety, to being able to reduce the methane reduction.”
Related
Prior to this decision, the last time state regulators approved a rise in rates was in July 2021, a $29 million increase.
“Before the rate increase,” Davis said, “we hadn't raised natural gas rates in about 10 years.”
The new higher rates go into effect Jan. 1. Anyone who needs help paying their bill can sign up for assistance on the PECO website.