PECO Launches $10 Million Relief Fund to Combat Rising Energy Bills in Pennsylvania

PECO is introducing a significant initiative aimed at supporting its customers facing mounting energy bills. Announced by PECO, in partnership with Exelon, its parent company, the PECO Customer Relief Fund will allocate $10 million to assist those struggling to keep pace with soaring electricity costs. This effort comes in response to the increasing pressures of energy affordability, exacerbated by demand-driven price hikes from the regional grid operator.

The relief fund will provide a lifeline to qualifying households who find themselves in arrears, offering one-time $500 grants directly credited to their PECO accounts. These grants are targeted at limited- and moderate-income households, specifically those whose annual income falls between 151% and 300% of the federal poverty level. For a typical family of four, this equates to an income range of $48,547 to $96,450 annually.

Applications for these grants will open on August 4 and run until either the end of the year or until funds are exhausted. The United Way of Greater Philadelphia and Southern New Jersey will oversee the distribution of these grants, administer the application process, and provide necessary assistance to ensure eligible households can access these funds efficiently. Applicants are evaluated on their income levels and arrear status, with the first-come, first-served policy guiding distribution.

The fund is seen as essential during the summer months when higher temperatures lead to increased energy consumption, thereby driving up electricity bills further. Coupled with external factors like capacity costs imposed by the grid operator, which ensure future electricity availability, these rising costs continue to challenge PECO customers financially. The relief fund specifically aims to bridge the gap for households that do not typically qualify for existing assistance programs like the federally funded Low Income Home Energy Assistance Program or PECO's Customer Assistance Program. These existing programs are available only to those with incomes up to 150% of the federal poverty level, providing an essential service in cushioning utility expenses for the most vulnerable customers.

Beyond financial aid, PECO encourages customers to explore options for managing their energy expenses, such as negotiating payment arrangements, opting for budget billing to spread energy costs evenly throughout the year, and seeking due date extensions.

David Vahos, PECO's President and CEO, emphasized the company’s commitment to supporting customers through these challenging times. "The PECO Customer Relief Fund allows us to provide immediate relief for customers struggling with high energy supply costs while continuing to work with state and local officials on forward-looking solutions." This initiative underscores PECO's integral role within the community, reaffirming its dedication to assisting households and working toward sustainable solutions to lessen the burden of rising energy costs.

Consumer energy bills have noticeably climbed, partly due to increased capacity costs, with PECO's typical residential bill showing a significant rise. In January, the Pennsylvania Public Utility Commission approved a rate increase, leading to a 10% hike in customer bills. Further increases in June stemmed from the PJM Interconnection's capacity auctions, which reached unprecedented price levels. Analysts predict these capacity costs will push PECO customer bills up further by 10% over the next two years, with an additional 1.5% to 5% increase anticipated next June.

This initiative is part of a broader strategy to address systemic energy affordability issues and provide interim relief as the region contends with energy burdens impacting essential spending like food, medication, and transportation. The relief fund is positioned to complement ongoing efforts by PECO to connect its customers with various financial assistance options and tools designed to enhance energy efficiency, effectively reducing overall consumption and cost.

Amid the increasing intensity of Pennsylvanian summers and the financial strain they impose on consumers, the PECO Customer Relief Fund represents a robust approach to mitigating immediate fiscal challenges while fostering a dialogue on enduring solutions to the region's energy needs.