Pennsylvania business electric rates jump 20% in two years

Pennsylvania businesses are paying 22% more than the state’s average electric rate, according to a new analysis that says commercial power costs rose faster than the national average from April 2024 to April 2026. The report says the state’s biggest utilities now account for most business customers’ bills, making supplier choice a key cost lever.

Why it matters: - Pennsylvania business electricity costs are climbing faster than the national average, squeezing operating margins for commercial customers. - A typical business using 6,000 kilowatt hours a month could now pay close to $1,000 on its electric bill, about $160 more than in 2024. - Businesses that stay on utility default supply rates may be paying more than necessary because commercial bills are driven mainly by energy supply charges.

What happened: - A new analysis found Pennsylvania business electricity rates now sit 22% above the state average. - Nationwide commercial electricity prices rose 6.71% from April 2024 to April 2026, increasing from 12.66 cents per kilowatt hour to 13.51 cents. - Pennsylvania businesses saw rates jump nearly 20% over the same period. - Recent U.S. Energy Information Administration data ranked Pennsylvania 10th in the nation for the sharpest rise in commercial electric rates.

The details: - Tight energy supplies pushed capacity auction prices higher across the PJM grid in 2024. - The state’s four investor-owned utilities — Duquesne Light, FirstEnergy Pennsylvania, PECO and PPL — absorbed much of that pressure. - PAEnergyRatings.com researchers said those four utilities charged an average of 13.99 cents per kilowatt hour in 2024, 22% above Pennsylvania’s blended average of 11.49 cents. - The four utilities serve 99% of Pennsylvania ratepayers. - Researchers said the state average commercial electric rate rose from 11.49 cents per kWh in April 2024 to 13.68 cents per kWh in April 2026, a 19.06% increase. - Using that same growth rate, researchers estimated 2026 commercial electric rates now range from 14.01 cents per kWh at PPL to 18.95 cents per kWh at FirstEnergy Pennsylvania. - The average rate for the four major investor-owned utility companies now stands at 16.66 cents per kWh. - The full PA Commercial Study is available online.

Between the lines: - The EIA state averages include lower-cost cooperatives and municipal utilities, which can hide what many businesses actually pay. - That means the headline state average may understate the rate pressure facing customers served by Pennsylvania’s largest utilities. - The report argues business customers can find lower prices by comparing suppliers instead of staying on default utility service. - The analysis says competing suppliers can offer savings of up to 50% versus a utility’s default rate.

What's next: - The EIA is forecasting electricity rates will likely rise this fall. - Default supply rates from Pennsylvania utilities could rise further when current rates expire on Nov. 30, 2026. - Businesses may face more pressure to shop for new contracts before those resets hit.

The bottom line: - Pennsylvania businesses are paying a sharp premium on electricity, and the gap is likely to matter even more if default utility rates reset higher later this year.