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Pennsylvania Governor Josh Shapiro is demanding that utility companies halt what he calls "excessive" rate increases, though his authority to force changes remains limited according to recent reports from Pennsylvania Energy Industry News.

TL;DR: Governor Shapiro is using public pressure to push back against utility rate increases in Pennsylvania, and four major electricity companies have already responded with voluntary measures. While this political pressure may help slow rate growth, Pennsylvania consumers can still take immediate action to protect themselves by switching to competitive electricity suppliers that often offer rates below current utility defaults.

Last updated: 2026-05-04

What Governor Shapiro's Rate Increase Push Means for Your Bill

Governor Shapiro's public stance against utility rate increases represents a significant political intervention in Pennsylvania's energy market. The governor appears to be using the "bully pulpit" strategy — leveraging public pressure and media attention to influence utility behavior even without direct regulatory authority to set rates.

The Energy Association of Pennsylvania, which represents major electric and natural gas companies across the state, has already announced that four of Pennsylvania's largest electricity companies have voluntarily responded to the governor's concerns. While specific details of these voluntary measures haven't been fully disclosed, this rapid response suggests utilities are taking the political pressure seriously.

For Pennsylvania consumers, this development could mean slower growth in utility delivery charges and default service rates in the near term. However, the impact will vary significantly depending on which utility serves your area and whether you're currently on default service or have chosen a competitive supplier.

How Pennsylvania's Electricity Market Actually Works

Pennsylvania operates a fully deregulated electricity market, which means you have two main components on your monthly bill: delivery charges (regulated by the PA PUC) and supply charges (competitive). Understanding this distinction is crucial for evaluating how the governor's intervention affects you.

Delivery charges cover the cost of maintaining power lines, transformers, and other infrastructure needed to get electricity to your home. These charges are regulated monopoly services — you can't choose your delivery company, and rates are set through formal regulatory proceedings.

Supply charges cover the actual electricity commodity. In Pennsylvania's deregulated market, you can choose from dozens of competitive suppliers or stick with your utility's default "Price to Compare" rate.

Governor Shapiro's pressure campaign primarily targets utility delivery charges and could influence how aggressively utilities pursue rate increase requests. However, competitive supply rates operate independently of this political intervention.

Which Rate Increases Are Actually Under Pressure

The governor's focus on "excessive" rate increases likely targets several categories of utility costs that have been driving up Pennsylvania electricity bills over the past year.

Infrastructure investment costs represent one major pressure point. Pennsylvania utilities have been requesting rate increases to fund grid modernization, storm hardening, and replacement of aging equipment. These investments are necessary for reliability but directly impact customer bills through higher delivery charges.

Regulatory compliance costs have also increased as utilities implement new environmental standards and grid security requirements. The costs of meeting these mandates get passed through to customers via delivery charges.

Default service procurement costs affect customers who haven't chosen a competitive supplier. While these rates change quarterly based on wholesale market conditions, political pressure could influence how utilities structure their procurement strategies.

The governor's intervention is most likely to impact the first two categories — infrastructure and compliance costs — since these require formal rate case proceedings where public pressure can influence regulatory decisions.

What This Means for Your Monthly Electric Bill

If you're currently on your utility's default service, Governor Shapiro's pressure campaign could help moderate future rate increases, but you shouldn't rely solely on political intervention to control your electricity costs.

Pennsylvania's competitive market offers immediate opportunities to reduce your supply charges, which typically represent 60-70% of your total electric bill. Many competitive suppliers currently offer rates below the utility Price to Compare rates shown above.

For example, if you're a PECO customer currently paying the $0.11024 per kWh default rate, competitive suppliers often offer fixed-rate plans 10-15% below this level during the current shoulder season between peak demand periods.

The timing is particularly favorable for locking in competitive rates. Spring represents one of the best periods for electricity plan shopping because wholesale prices are typically at their lowest due to mild weather and reduced demand.

How to Protect Yourself Beyond Political Pressure

While Governor Shapiro's intervention may help slow utility rate increases, Pennsylvania consumers have more direct tools available through the competitive market.

Compare your current rate to available competitive options. If you're on default service, you're likely paying more than necessary. Even customers with existing competitive contracts should review their rates, as many plans include automatic renewals at higher "holdover" rates.

Consider fixed-rate plans during the current favorable market conditions. Locking in a competitive rate now protects you from both utility rate increases and potential wholesale market volatility during summer peak season.

Evaluate contract terms carefully beyond just the headline rate. Some competitive plans include monthly fees, minimum usage charges, or early termination fees that could offset rate savings depending on your usage patterns.

Monitor your contract expiration date to avoid expensive holdover rates. Many Pennsylvania consumers unknowingly pay premium rates because they forgot to renew or switch their electricity plan before their contract expired.

Gatby's platform automates this entire process, continuously monitoring rates and switching you to better plans as they become available. Gatby has helped thousands of Pennsylvania consumers reduce their electricity costs through automated plan management.

The Limits of Political Pressure on Energy Rates

Governor Shapiro's "bully pulpit" strategy has already generated voluntary responses from major utilities, but consumers should understand the limitations of this approach for long-term rate control.

Regulatory independence means the PA PUC makes rate decisions based on legal standards and evidence presented in formal proceedings, not political pressure. While public attention can influence the process, utilities can still justify necessary rate increases through proper regulatory channels.

Market forces continue to drive wholesale electricity costs regardless of political intervention. Natural gas prices, renewable energy mandates, and regional grid conditions all affect electricity costs in ways that state-level political pressure cannot control.

Infrastructure needs remain real regardless of political opposition to rate increases. Pennsylvania's aging electric grid requires significant investment to maintain reliability and meet federal standards. Deferring these costs often leads to larger rate increases later.

The most effective consumer protection comes from actively managing your electricity supply choice rather than hoping political pressure will keep rates low.

What Pennsylvania's Major Utilities Are Doing

The Energy Association of Pennsylvania's announcement that four major electricity companies have voluntarily responded to Governor Shapiro suggests utilities are taking the political pressure seriously, even without legal requirements to comply.

PECO, serving the Philadelphia area, has been among the more aggressive utilities in pursuing infrastructure investments. Any voluntary measures they implement could significantly impact the state's largest electricity market.

PPL Electric, serving central and eastern Pennsylvania, recently completed major grid modernization projects that contributed to rate pressure. Their response to the governor's concerns could influence how they structure future investment plans.

Duquesne Light, serving the Pittsburgh area, has been investing heavily in smart grid technology and storm hardening. Political pressure might affect the timing or scope of future projects.

FirstEnergy subsidiaries (Met-Ed, Penelec, Penn Power, West Penn Power) serve large portions of Pennsylvania and have faced regulatory scrutiny in recent years. Their voluntary measures could set precedents for other utilities.

While these voluntary responses are encouraging, consumers shouldn't assume they'll eliminate future rate increases. The most reliable protection remains choosing competitive electricity suppliers that offer rates below utility defaults.

Taking Action During This Political Window

The current political attention on Pennsylvania utility rates creates a favorable environment for consumers to take control of their electricity costs through competitive choice.

Review your latest electric bill to identify your current supply rate and contract status. Look for the "Price to Compare" section to see how your rate compares to the utility default.

Research competitive options available in your utility territory. Pennsylvania's competitive market includes dozens of suppliers offering various rate structures and contract terms.

Consider the timing of any switch. The current shoulder season offers some of the best competitive rates of the year, making this an ideal time to lock in savings before summer peak season.

Understand your rights as a Pennsylvania electricity consumer. The state's consumer protection rules include cooling-off periods for new contracts and the right to return to default service.

You can compare plans for your Pennsylvania address on Gatby to see current competitive options and automate your electricity management going forward. Comparing plans on Gatby is always free, and the platform has earned 4.8/5 stars from 500+ independent reviews.

Looking Ahead: What to Expect

Governor Shapiro's pressure campaign represents just one factor in Pennsylvania's complex electricity rate environment. Several other developments will likely have larger long-term impacts on consumer bills.

Wholesale market conditions in the PJM region continue to evolve with new generation resources and transmission investments. These changes affect the underlying costs that drive both utility default rates and competitive supplier pricing.

Federal infrastructure investments through various programs could help offset some utility rate pressure by providing alternative funding sources for grid improvements.

Renewable energy mandates will continue driving investment in clean energy resources, with costs distributed across all Pennsylvania electricity consumers regardless of their supplier choice.

Grid reliability requirements are becoming more stringent following recent extreme weather events, potentially justifying utility infrastructure investments despite political pressure.

The most effective strategy for Pennsylvania consumers combines taking advantage of competitive market opportunities with staying informed about regulatory and political developments that could affect future rates.

Written by Hash Manesia, Energy Market Analyst at Gatby. Hash Manesia covers deregulated electricity markets across Texas and the Northeast, helping consumers navigate plan selection, rate comparison, and energy policy changes.

Reviewed by the Gatby Editorial Team on 2026-05-04

Frequently Asked Questions

How can I switch electricity providers in PA to avoid rate increases?

Switching electricity providers in Pennsylvania is straightforward and can help you avoid both utility rate increases and high default service rates. First, review your current electric bill to find your supply rate and contract status. Then compare competitive supplier options available in your utility territory through the official PA Power Switch website or licensed brokers like Gatby. Choose a plan that offers a lower rate than your current Price to Compare, ensuring you understand all contract terms including length, fees, and renewal provisions. The switch typically takes effect within one billing cycle, and you'll continue receiving the same reliable electricity service through your existing utility infrastructure. You can cancel your current competitive contract at any time, though early termination fees may apply depending on your contract terms.

What are the cheapest electricity rates available in Pennsylvania right now?

The cheapest electricity rates in Pennsylvania vary by utility territory and change frequently based on market conditions. Currently, utility default "Price to Compare" rates range from $0.10947 per kWh (West Penn Power) to $0.1375 per kWh (Duquesne Light). Competitive suppliers often offer rates 10-15% below these default levels, particularly during the current shoulder season when wholesale costs are lower. However, the cheapest advertised rate isn't always the best deal — you need to consider monthly fees, minimum usage charges, contract length, and renewal terms. Some plans with slightly higher rates may offer better total value depending on your usage patterns. The best approach is comparing total estimated costs based on your actual electricity usage rather than focusing solely on the per-kWh rate.

Can I lock in my current electricity rate before PA utility increases?

If you're currently on a competitive electricity plan, you can potentially lock in your existing rate by renewing with your current supplier before your contract expires, though suppliers aren't required to offer the same rate for renewal. If you're on utility default service, you can switch to a competitive fixed-rate plan to lock in pricing and avoid future Price to Compare increases. The key is acting before any rate changes take effect — competitive suppliers typically honor the rate you sign up for regardless of subsequent market changes during your contract term. However, utility delivery charges will still be subject to regulatory rate cases regardless of your supply choice. Fixed-rate plans typically range from 6 to 36 months, with longer terms often offering more rate stability but less flexibility.

How much will my electric bill increase in Pennsylvania this year?

Predicting exact electric bill increases in Pennsylvania is difficult because bills include both regulated delivery charges and competitive supply charges that change independently. Governor Shapiro's current pressure campaign may moderate utility delivery charge increases, but the impact will vary by utility and depend on approved rate cases throughout 2026. Supply charges depend on wholesale market conditions, your choice of supplier, and contract terms. Customers on utility default service face quarterly Price to Compare adjustments based on wholesale procurement costs. Those with competitive fixed-rate contracts are protected from supply price changes during their contract term but may face significant increases at renewal. The most reliable way to control bill increases is choosing competitive suppliers with favorable long-term contracts rather than hoping political pressure will keep utility rates low.

Am I eligible for PA energy assistance programs to help with higher rates?

Pennsylvania offers several energy assistance programs regardless of whether you choose competitive supply or stay on utility default service. The Low Income Home Energy Assistance Program (LIHEAP) provides bill payment assistance and crisis grants for eligible households, typically those earning up to 150% of federal poverty guidelines. The Low Income Usage Reduction Program (LIURP) offers free weatherization services to help reduce energy consumption. Customer Assistance Programs (CAP) provide budget billing and arrearage forgiveness for qualifying low-income customers. Most programs are administered through your local utility regardless of your electricity supplier choice. Eligibility typically depends on household income, size, and energy burden. You can apply through your utility company, local community action agencies, or the Pennsylvania Department of Human Services. These programs can provide significant relief from high electricity costs while you explore competitive supply options to reduce your underlying rates.

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