Utility Price Hikes and Union Talks: What Customers Need to Know

Peco, the company that powers and gases most homes in southeastern Pennsylvania, is asking state regulators for a price increase that would kick in next year. The money is meant to upgrade the electric grid and keep power flowing during storms, but many customers worry that the hikes will add to their monthly bills. At the same time, Peco’s own workers—linemen, gas mechanics and customer‑service staff—are pushing for higher wages and a single retirement plan. The union, IBEW Local 614, says the current pay is not keeping up with living costs and that the company’s profits are too high to justify more hikes for consumers. Last year Peco reported a 48 % jump in net income, partly because electricity rates rose. The company says it needs about $520 million to strengthen poles, cables and transformers so that outages stay short. It also wants to use drones for faster damage assessment after bad weather.The Pennsylvania Public Utility Commission has already approved earlier rate increases, which raised electric bills by about 10 % in 2025 and gas rates by 12. 5 %. Peco can only ask for another hike in March next year, so the 2027 proposal is urgent. The company claims that rising wholesale power costs—up roughly 400 %—and the need to serve growing data‑center demand justify the price jump. Union leaders argue that customers are already paying more to stay warm this winter and to keep their lights on during hot summer days. They say the company’s profits are too high, with 50 % of revenue going back into infrastructure but still leaving workers underpaid. Negotiations are stalled, and the union has filed an unfair‑labor‑practice charge with the National Labor Relations Board. Peco says it is negotiating in good faith and that a strike vote would only be a last resort. The company also maintains a contingency plan to keep service stable if workers walk out, but it admits that any outage could cost $60 million in infrastructure repairs. The upcoming rate case will need approval from the PUC, which balances consumer protection with the financial health of utilities. Customers and workers alike are watching closely to see how Peco will justify higher prices while addressing wage demands.