PECO Bill Explained: Every Charge Broken Down

Most people open a PECO bill, see a number they don't recognize, and flip it over looking for an explanation that isn't there. The bill lists six or eight line items, abbreviations nobody explained, and a total that seems higher than it should be. The frustration is understandable. The good news is that once you know what each charge represents, the bill stops feeling like a mystery and starts feeling like something you can actually manage.

This guide walks through every major component of a PECO bill, explains which charges are fixed and which aren't, and shows you where Pennsylvania's deregulated electricity market gives you real leverage to save money.

Every PECO bill is divided into two fundamental buckets: delivery charges and supply charges.

Delivery charges cover everything involved in physically moving electricity to your home. That includes maintaining the wires, poles, transformers, and substations that make up PECO's distribution system. These charges are regulated by the Pennsylvania Public Utility Commission (PA PUC) and are the same for every residential customer in the territory regardless of who supplies their electricity. You cannot shop these charges away.

Supply charges are what you pay for the electricity commodity itself, the actual electrons. This is the portion of the bill that Pennsylvania's deregulated market opened to competition in 1999. PECO does not generate electricity; it buys it on your behalf through a process called default service and passes that cost to you. But you are not required to buy through PECO's default service. You can choose a licensed competitive supplier instead, and that choice can meaningfully lower your bill.

Breaking down the delivery side of a typical PECO residential bill reveals several distinct line items.

Customer Charge: A flat monthly fee, billed whether you use one kilowatt-hour or a thousand. It covers the cost of maintaining your account and the meter connection.

Distribution Charge: The largest single delivery line item for most customers. Pays for the local wires and equipment that bring electricity from the transmission grid to your home.

Transmission Charge: Covers the high-voltage network that carries bulk electricity across the region, managed by PJM Interconnection. This charge flows through PECO but is set at the regional level.

Transition Charge / Competitive Transition Assessment (CTA): A legacy cost from Pennsylvania's deregulation restructuring. These are either small or have rolled off entirely for most PECO customers, but they still appear on some bills.

State Tax Surcharge and Gross Receipts Tax: Pennsylvania state taxes passed through directly to customers. Neither PECO nor any competitive supplier controls these.

Act 129 Surcharge: Funds energy-efficiency and demand-response programs mandated by Pennsylvania's Act 129. It is a small per-kWh charge on the delivery side.

None of these delivery line items change when you switch suppliers. Your bill format actually stays almost identical because PECO remains your utility and continues to send the bill even if a third-party supplier handles the supply portion.

The supply charge on your PECO bill reflects the default service rate that PECO procured through a regulated competitive bidding process overseen by the PA PUC. As of July 2026, PECO's default supply rate is approximately 11.8 cents per kilowatt-hour.

The PA PUC requires every Pennsylvania electric utility to publish a figure called the Price to Compare. This is the all-in supply rate you are currently paying on default service. It is the single most useful number on your bill when you want to evaluate competitive offers. If a licensed supplier quotes you a rate lower than PECO's Price to Compare, and the terms are apples-to-apples (fixed rate, same unit), switching will reduce your supply costs.

The lowest competitive supplier rate available in PECO's territory as of July 2026 runs around 9.6 cents per kilowatt-hour, though actual offers vary by contract length, rate type, and timing. On a household using 900 kWh per month, moving from the default rate to that lower rate would represent a meaningful monthly reduction. Check ElectricRates.org/pennsylvania for live offers, because competitive rates change frequently.

Below or alongside the charge breakdown, your PECO bill shows your meter readings and total kilowatt-hour consumption for the billing period. A few things worth knowing:

Actual vs. estimated reads: When a meter reader cannot access your meter, PECO estimates usage based on prior months. The bill will note "estimated" near the reading. If your bill seems unusually high, check whether it was estimated and compare to your actual meter.

Billing period length: PECO billing cycles run roughly 30 days but can vary by a few days. A bill that covers 33 days will naturally be higher than one covering 28 days, even if your daily usage was identical.

Usage history graph: Most PECO bills include a 13-month usage bar chart on the back or in the online account view. That graph is one of the most practical tools for spotting an appliance issue, a leak in your HVAC efficiency, or the impact of a hot or cold stretch of weather.

PECO participates in Pennsylvania's Customer Assistance Program (CAP), which sets monthly electricity bills at a reduced, income-based amount for qualifying low-income households. CAP participants pay a fixed monthly amount based on household size and income rather than a per-kWh rate, and accumulated arrears are reduced over time as long as the customer stays current.

The federally funded Low Income Home Energy Assistance Program (LIHEAP) provides one-time grants to help eligible Pennsylvania households pay heating and cooling costs, including electric bills. Income thresholds and application windows change each program year, so the PA Department of Human Services is the authoritative source for current eligibility requirements.

If you are behind on your PECO bill, Pennsylvania's Winter Termination Program (managed by the PA PUC) restricts utility shutoffs during colder months for residential customers who contact the utility and demonstrate hardship. Reaching out early matters. Contact PECO directly or visit the PA PUC website for the current rules.

Pennsylvania's official comparison tool, PAPowerSwitch, is maintained by the PA PUC and lists licensed competitive electricity suppliers serving PECO's territory. You enter your utility and average monthly usage and the tool shows available offers alongside PECO's current Price to Compare so the comparison is direct.

Before switching, read the contract carefully for three things: the rate type (fixed or variable), the contract length, and any early termination fee. A variable rate can start low and move higher, sometimes significantly, especially during periods of grid stress. A fixed rate gives you cost predictability for the contract term.

Switching in Pennsylvania does not require a service interruption or a truck roll. The change happens administratively. PECO continues to deliver your electricity and send your bill. The only thing that changes is the supply line item.

For a broader view of competitive offers across all Pennsylvania utility territories, including PECO, ElectricRates.org/pennsylvania pulls live rate data so you can see whether a better deal is on the table before your next billing cycle.

Context helps. As of July 2026, PECO's default supply rate of approximately 11.8 cents per kWh sits near the lower end of the range across Pennsylvania's major utilities. For comparison:

Penelec: ~11.7 cents/kWh (slightly lower)
West Penn Power: ~12.1 cents/kWh
PPL Electric: ~13.0 cents/kWh
Met-Ed: ~13.0 cents/kWh
Duquesne Light: ~14.1 cents/kWh

All of these are default service rates regulated by the PA PUC. In every territory, licensed competitive suppliers offer rates that may be lower depending on market conditions. The gap between the highest default rate and the lowest available competitive rate in the state is currently more than four cents per kilowatt-hour, which at typical household consumption adds up to a real dollar difference over a contract year.

Look up your current PECO Price to Compare. It is printed on your bill or available in your online PECO account. Then check what licensed competitive suppliers are offering in your ZIP code. If a fixed-rate offer from a PA PUC-licensed supplier comes in below that Price to Compare, and the contract terms are reasonable, switching costs nothing and saves you money every month until the contract ends.

Your delivery charges, taxes, and assistance program eligibility stay exactly the same either way. The only variable is supply, and that variable is in your hands.