PUC Approves Adjusted Rates to Support PECO’s Efforts to Invest In
Resiliency and Reliability and to Expand Customer Support

PHILADELPHIA (December 12, 2024) – Today, the Pennsylvania Public Utility Commission (PUC) approved PECO’s joint settlement to adjust its energy delivery rates for electric and natural gas service. These approvals provide the increased funding necessary to support expanded investments in PECO’s electric and natural gas delivery systems and further enhance the level of service customers have come to expect. This includes efforts to enhance safe and reliable service, improve resiliency and reliability of the local energy grid, further mitigate the impacts of severe weather, and enable the transition to cleaner energy resources. The rate adjustments also will support programs that help customers save energy and money, including programs that further increase assistance for low-income households.

“There is an increasing need to invest in stronger and more modernized energy infrastructure to improve reliability, help enable wider adoption of cleaner energy resources, and provide our customers with the level of service they have come to expect from us,” said David Velazquez, PECO president and CEO. “We are pleased to have arrived at a balanced settlement and are committed to delivering enhanced reliability, further supporting cleaner energy and EV adoption, and providing support to our customers who need it the most.” Specifically, the rate adjustments provide funding to:

• Further Enhance Reliability: Support PECO’s planned investment of $9.3 billion over the next five years in electric and natural gas infrastructure to keep the lights on and natural gas flowing for customers and meet the growing demand for energy in southeastern Pennsylvania.

• Support Customers: Expand assistance to low-income customers by increasing the annual Low-Income Usage Reduction Program (LIURP) funding by $1 million for electric and $500,000 for natural gas, and expand eligibility and customer benefits for PECO’s Matching Energy Assistance Fund (MEAF). These enhancements will enable more customers to receive support for their bills. In addition, PECO’s Small Business Grant Program, which provides a natural gas bill credit of $200 to qualifying small businesses, will be extended.

• Enable Cleaner Energy Options: PECO will extend its Electric Vehicle Charging Pilot and EV-FC pilot rider program through 2029 and 2030, respectively. The Electric Vehicle Charging Pilot offers commercial and industrial customers incentives for the new installation of Level 2 EV chargers. The EV-FC pilot rider offers a demand credit to customers who own publicly available DC fast charger stations.

• Expand Choice: In addition, the Natural Gas Neighborhood Pilot program, which allows customers in a neighborhood the opportunity to extend natural gas distribution facilities to serve eligible new customers, will be extended five years with additional funding.

The new electric and natural gas distribution rates will take effect on January 1, 2025. Based on these PUC-approved settlements, the average residential electric customer (700 kWh) will see a bill increase of about 10 percent or $13.58 per month in 2025, with an additional 1.8 percent or $2.70 increase in 2026. The average residential natural gas customer (80
Ccf) will see a bill increase of approximately 12.5 percent per month, or $12.25. PECO has the highest customer assistance program participation in the state to help customers manage their energy bills. Income-qualified programs are available to help customers with past-due balance forgiveness, energy efficiency measures, hardship grants, and referrals for other services. The company also helps connect customers with programs that provide grant assistance for outstanding balances, like LIHEAP. For more information about assistance programs, customers can visit peco.com/help.

PECO’s infrastructure projects are important to the local economy and play a key role in the company’s efforts to be a partner in Pennsylvania’s sustained economic development. Investments in energy infrastructure improve service for customers, as highlighted through PECO’s enhanced reliability performance in 2023. The projects also drive economic development in PECO’s service territory. In addition to these benefits, PECO’s broader economic impact is felt across southeastern Pennsylvania and beyond through purchasing goods and services from diversity-certified suppliers, support for nonprofits, and connecting customers with energy assistance.

To learn more about the filings visit peco.com/rates or call 1-800-494-4000.

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PECO, founded in 1881, is Pennsylvania’s largest electric and natural gas delivery company. Headquartered in Philadelphia, PECO delivers energy to nearly 1.7 million electric customers and more than 553,000 natural gas customers in southeastern Pennsylvania. The company’s 3,000 employees are dedicated to the safe and reliable delivery of electricity and natural gas as well as enhanced energy management conservation, environmental stewardship and community assistance. PECO is a subsidiary of Exelon Corporation (Nasdaq: EXC), a Fortune 200 company and the nation’s largest energy delivery company, serving more than 10.6 million customers through six fully regulated transmission and distribution utilities. For more information visit PECO.com, and connect with the company on Facebook, X, and Instagram.