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Governor Shapiro Forces PECO to Withdraw $510 Million Rate Increase — Largest Consumer-Savings Action in Pennsylvania's Recent History
PA
Utility Rates & Regulation
April 17, 2026
Source: Targeted News Service, US Official News
Governor Josh Shapiro announced that PECO — Pennsylvania's largest utility, serving 1.7 million customers in southeastern Pennsylvania — will withdraw its combined electric and natural gas rate case before the Pennsylvania PUC. The request would have increased average residential electric bills by $20.08 per month and gas bills by $14.52 per month beginning in 2027. This was PECO's third rate increase since 2022. The withdrawal saves consumers an estimated $510 million total.
Shapiro also highlighted broader affordability actions: a PJM Interconnection price cap extension through 2030 that he says will save 67 million Americans $27 billion, and Electricity Load Forecast Accountability provisions signed into law in November 2025 giving the Pennsylvania PUC new authority to review utility forecasts and prevent double-counting of large energy users.
PECO President David Vahos said the company would continue investing while “prioritizing affordability.” This is the most aggressive governor-level intervention in a utility rate case in recent memory.
This escalates the initial PECO withdrawal story from April 16, which was framed around legislative pressure from Rep. Fiedler. Shapiro's direct intervention with PECO's CEO made it a gubernatorial action.
What You Can Do
Ask your governor to take a similar position. Shapiro's direct intervention forced a $510 million withdrawal. Most governors have not taken public positions on whether data center demand should raise residential rates. Contact your governor's office and ask where they stand on utility rate increases driven by data center load growth.
Push for load forecast accountability in your state. Pennsylvania's November 2025 law gives the PUC authority to review utility demand projections and prevent double-counting of large energy users. Ask your state legislators whether similar legislation exists or is being considered — this is one of the most concrete tools available to prevent inflated forecasts from justifying rate increases.
File comments in pending rate cases. If your utility has a rate case pending before your state PUC, file public comments asking how much of the proposed increase is driven by data center or large-load customer demand. Most PUCs accept public comments electronically.
Community Takeaway
Whether other governors can replicate this depends on their state's regulatory structure and political dynamics with major utilities. Pennsylvania's approach — combining direct political pressure with new statutory authority over load forecasting — is a model worth studying. The “load forecast accountability” tool is particularly relevant: it prevents utilities from inflating demand projections to justify infrastructure spending that flows through the rate base. Communities watching data center-driven grid buildout should ask whether their state PUC has similar authority to scrutinize the demand forecasts utilities use to justify rate increases.
Source: Targeted News Service, US Official News, April 17, 2026.