On June 1st, electric utility prices across Pennsylvania spiked up. In our area, Penelec and Penn Power increased by 5% and 6% respectively.

Every six months, electric distribution companies in Pennsylvania change their “price to compare” rate. Ten out of the eleven companies raised their rate this cycle—most by around 5% to 16%. The highest increase was 40% for the Wellsboro Electric Company.

“So across the Commonwealth, we're seeing significant increases,” said Patrick Cicero, chief counsel for Pennsylvania Utility Law Project.

The rate increase is for the supply side of consumer’s electric bill. For Penelec, the rate is going from ¢10.47 per kWh to ¢11 per kWh. For Penn Power, the rate is going from ¢11.16 to ¢11.85 per kWh.

The average household might use around 1500 kilowatts a month during the summer, as they run the air conditioner. With the new rates, that household could see a $7-$24 increase on their summer electric bill.

Wellsboro residents could see a $50 increase on their summer electric bills.

Looking past this month’s increase; in summer of 2020, Penelec customers paid ¢5.53 per kWh. Penn Power customers paid ¢6.68 per kWh.

“This is a hard thing, right? In the summertime, there's less resources available, particularly for economically vulnerable household,” Cicero said.

Customers worried about their summer electric bill should call their utility company. There are grants to make homes more weather efficient. Larger companies can let people pay their bill based on their income, not usage.

All companies offer budget billing; the company adds up all your usage for the year, then divides it by 12. So each month you pay the average.

“Now, when weather is kind of temperate and it's beautiful outside, you might have a higher bill,” Cicero said. “But your bill will be lower, than in the summer or the winter when you're using much more electricity to heat, or in the case of the summer, cool your home.”

Pennsylvanians can shop for other electric suppliers at papowerswitch.com. The Pennsylvania Utility Law Projects warns that many consumers who shop for other suppliers pay more in the long run. Savings can be found, but contracts must be read carefully and often switched regularly to keep the savings. Cicero also says even other suppliers will be giving higher prices.

“The reason for this rate increase is really baked in to our overall electricity system,” Cicero said.

Pennsylvania is part of an electric grid that serves 13 states in total; that grid is operated by the organization PJM.

PJM hosts a power auction every summer, where electric suppliers promise to meet estimated future demand. Last summer—PJM estimated there would be a lot of demand. At the auction, there was not a lot of supply, which drove prices up.

"And so the prices of electricity now, really are about what price is going to be—,” Cicero said. “What is going to be available into the future.”

Last year, Governor Josh Shapiro sued PJM. That lawsuit was settled in February, when PJM promised to put a cap on how high prices can go in July 2025’s auction. The cap is close to the highest prices from the 2024 auction; this guarantees electricity price spikes (linked to the PJM auction, not other external causes) won’t be worse than the status quo.

Industry experts are waiting to see if this year’s auction reaches that cap, or if prices drop lower due to other provisions PJM is changing.

Energy generation is a big talking point in Harrisburg, as lawmakers clash on how to increase electric supply in the state.