Source: Grid Shopper — https://gridshopper.com/blog/peco-price-to-compare-december-2025 import UpdateBanner from '../../components/UpdateBanner.astro'; PECO officially announced the new Price to Compare will be 11.024¢/kWh starting December 1st — in line with the ~11.0¢ estimate this analysis published on October 8. **Winter bills rising:** PECO rates rise 6% on Dec 1st (10.4¢ → 11.024¢/kWh), marking a **19% year-over-year increase** since Dec 2024. An average household will pay about $12 more per month than a year ago. **What you need to know:** - **What happened:** PECO completed electricity procurement for December 2025–May 2026 in their September auction - **Immediate impact:** 6% increase starting December 1st (10.4¢ → 11.024¢/kWh) - **The bigger story:** 19% increase year-over-year, driven by elevated PJM capacity costs - **If you shop:** compare offers against the December rate, not the expiring October rate The results of the September 2025 PECO default service procurement auction were recently released. This auction completes PECO's procurement for the December 2025–May 2026 service period, providing visibility into where the default service rate will be set and offering clarity on future rate trends. For live PECO supplier offers and rate tracking, see the [PECO rate page](/pa/peco). ## PECO rate progression: a year of increases PECO's "Price to Compare" has seen dramatic increases over the past year, driven primarily by elevated PJM capacity costs: | Effective date | Price to Compare | Change | YoY change | | --- | ---: | ---: | ---: | | December 2024 | 9.239¢/kWh | — | — | | June 2025 | 10.4¢/kWh | +12.6% | — | | **December 2025** | **11.024¢/kWh** | **+6%** | **+19%** | **How PECO sets rates:** PECO conducts competitive auctions twice yearly (March and September) where energy suppliers bid to provide electricity. The weighted average of these auction results becomes the main component of the Price to Compare, updated quarterly based on procurement costs. For the detailed mechanics, see the [default service explainer](/blog/peco-procurement-auction). ## Auction results breakdown In the September 2025 auction, PECO procured: | Procurement period | % for the period | Price | | --- | ---: | ---: | | December 2025 – November 2026 | 19.2% | 8.815¢/kWh | | December 2025 – November 2027 | 14.4% | 9.134¢/kWh | Combined with previous auction results, this establishes a final weighted average price of 8.707¢/kWh for the December 2025–May 2026 service period. ## What goes into the default service rate The 8.707¢/kWh procurement cost isn't the final rate customers see. PECO adds several components: transmission system costs, adjustments for distribution losses, administrative costs, and state taxes. Based on our analysis of historical rate calculations and these auction results, we estimated the final default service rate would be approximately 11.0¢/kWh ([archived pre-announcement analysis](https://web.archive.org/web/20251112140622/https://gridshopper.com/blog/peco-price-to-compare-december-2025)). On November 14, PECO confirmed this analysis by announcing the official rate of 11.024¢/kWh starting December 1st. ## What this means for you **For PECO default service customers:** your rate increases on December 1st. Use the [PECO rate comparison page](/pa/peco) to see how current supplier offers compare. Rising rates during heating season mean higher overall energy costs for most households. **For electricity shoppers:** competitive suppliers price on current market conditions, which can make beating PECO's blended rate (which includes older, lower-priced contracts) challenging. Consider both rate and contract length, and be aware that offers below the utility line are often short-term deals that end before the more expensive months. ## Frequently asked questions **Why is my PECO bill going up in December 2025?** Higher procurement costs from PECO's latest auction, which reflect elevated PJM capacity prices and current wholesale market conditions. PECO buys supply through competitive auctions, and those costs pass through to customers. **How much will the increase cost me?** For an average household using 700 kWh per month, the 6% increase from 10.4¢ to 11.024¢/kWh adds roughly $4 to the monthly bill. Year-over-year, the nearly 19% increase since December 2024 works out to about $12 more per month. **Should I switch suppliers before December 1st?** It depends on the offers available. Compare current supplier offers against the 11.024¢/kWh December rate on the [PECO page](/pa/peco), considering both rate and contract terms. **What is causing PECO rate increases?** The primary driver is dramatically higher PJM capacity costs, which rose over 370% for the 2025–2026 planning year. See the [PJM capacity auction analysis](/blog/pjm-capacity-auction) for the full background. ## Key takeaways - The PECO default service rate increases to 11.024¢/kWh in December 2025 - That's +6% from the current 10.4¢/kWh rate and nearly +19% year-over-year - The September 2025 auction set a weighted average procurement cost of 8.707¢/kWh for December 2025–May 2026 - This continues the upward trend driven by elevated PJM capacity costs, first analyzed in [the June 2025 article](/blog/peco-procurement-auction) *The rate of 11.024¢/kWh was officially announced by PECO on November 14, 2025. Bill impacts are approximations and vary with usage.*