Best Electricity Rates in Philadelphia 2026: PECO Territory Shopping Guide
Philadelphia residents are served by PECO (a subsidiary of Exelon) for electricity delivery, and Pennsylvania’s deregulated electricity market means you can shop for your electricity supply from dozens of licensed competitive suppliers. If you’re in PECO’s service territory — which covers Philadelphia and its surrounding suburbs including Montgomery, Delaware, Chester, and Bucks counties — this guide will show you how to find the best electricity rate in 2026.
Compare Electricity Rates in Your Area
Find the best electricity plan for your home or business. Takes less than 2 minutes — no commitment required.
Electricity Deregulation in PECO Territory
Pennsylvania deregulated its electricity market in 1996 under the Electricity Generation Customer Choice and Competition Act. Today, PECO customers can choose their electricity supplier while PECO continues to handle delivery, outage response, and billing consolidation.
If you’ve never switched suppliers, you’re currently on PECO’s default (Provider of Last Resort) rate. Pennsylvania’s retail electricity market has seen periods of significant price competition, and the savings from switching to a competitive supplier can be meaningful — particularly when wholesale energy prices are high and suppliers are offering below-market fixed rates to attract customers.
PECO’s Service Area
PECO serves approximately 1.6 million electric customers across:
- Philadelphia County (city of Philadelphia)
- Montgomery County
- Delaware County
- Chester County
- Bucks County
Customers in PPL Electric or other Pennsylvania utility territories have their own set of competitive suppliers — this guide focuses specifically on PECO territory.
PECO’s Default Supply Rate in 2026
PECO’s default supply rate (sometimes called the Price to Compare or Provider of Last Resort rate) is set by the Pennsylvania Public Utility Commission (PUC) and adjusted periodically. As of mid-2026, PECO’s default generation rate for residential customers is approximately 8–10 cents per kWh for the supply component (check the current rate at PECO.com or the PA PUC website, as this fluctuates).
The default rate is your benchmark. A competitive supplier offering a fixed rate below PECO’s default is potentially saving you money. A supplier offering above the default with no additional benefits is a worse deal — avoid it.
Top Electricity Suppliers in PECO Territory (Philadelphia 2026)
Pennsylvania licenses dozens of competitive electricity suppliers. Here are some of the major providers active in PECO territory:
Constellation Energy
Based in Baltimore, Constellation is one of the largest electricity suppliers in the Mid-Atlantic region and has strong presence in PECO territory. Constellation offers fixed-rate plans for residential customers, often available through comparison platforms. As a large, established supplier, Constellation is a low-risk choice for customers who want a well-known brand.
Direct Energy
Direct Energy (NRG subsidiary) is active across Pennsylvania and offers residential fixed and variable rate plans. Direct Energy’s online tools make it easy to compare plan options and see EFL-equivalent disclosures for Pennsylvania plans.
Verde Energy
Verde Energy operates in PECO territory and frequently competes on rate in the Pennsylvania market. Like other competitive suppliers, Verde’s plans include fixed-rate and green energy options. Pay attention to renewal terms on Verde plans — they can transition to variable rates at contract end.
IGS Energy
IGS Energy is an Ohio-based supplier active across multiple northeastern states including Pennsylvania. IGS offers residential fixed-rate plans in PECO territory and has a consumer protection-focused sales approach with clear disclosure of terms.
Santanna Energy Services
Santanna is a multi-state supplier (IL, PA, OH, NJ) that offers both electricity and natural gas supply. In PECO territory, Santanna offers residential electricity plans that are worth including in a rate comparison.
What Electricity Rates Should Philadelphia Residents Expect?
Philadelphia electric bills include both supply and delivery components. For a typical PECO residential customer using 700–900 kWh/month in 2026:
- Supply charge: Approximately 7–11 cents/kWh depending on PECO default vs. competitive supplier
- Distribution delivery charges: Approximately 5–7 cents/kWh equivalent (PECO distribution, transmission, and riders)
- Philadelphia City tax: Philadelphia imposes a city-specific tax on electricity consumption that adds to the overall bill
- Taxes and fees: State and local taxes, PUC fee, and universal service charges apply to all customers
Total all-in monthly bills for a Philadelphia household using 750 kWh typically range from $100–$160 depending on season and supplier rate. The supply portion represents approximately 45–55% of the total bill — the piece you can control through supplier choice.
Pennsylvania’s EGS License: How to Verify Supplier Legitimacy
Pennsylvania competitive electricity suppliers must be licensed by the Pennsylvania Public Utility Commission as an Electric Generation Supplier (EGS). Before signing up with any supplier, verify their license status at the PA PUC’s website. The PUC maintains a searchable database of all licensed EGS providers — if a supplier isn’t listed there, don’t sign up.
How to Switch Electricity Suppliers in Philadelphia
- Get your PECO account number — Found on your PECO bill
- Check the current PECO default rate — Go to PECO.com or search “PECO price to compare” to find today’s default supply rate
- Compare suppliers — Use Pennsylvania’s official PAPowerSwitch.com comparison tool or a third-party platform like Choose Energy
- Read the contract disclosure — Review the rate, contract length, early termination fee, and what happens at renewal
- Enroll online — Most Pennsylvania suppliers offer online enrollment; PECO processes the switch on your behalf
- Confirm on your next bill — The new supplier should appear on your PECO bill within 1–2 billing cycles
PAPowerSwitch.com is Pennsylvania’s official state-run comparison tool and is a reliable starting point for finding all licensed suppliers and their current offers in your ZIP code.
Fixed vs. Variable Electricity Rates in PECO Territory
As with any deregulated market, PECO territory customers can choose between:
Fixed-Rate Plans
Your supply rate is locked in for the contract term (typically 6–24 months). Protects against price increases and provides billing predictability. Pennsylvania law requires suppliers to notify you 30 days before your contract ends, giving you time to renew or switch.
Variable-Rate Plans
Rate adjusts monthly with market conditions. Can be advantageous during low-demand periods but risk price spikes in extreme weather. Not recommended unless you’re actively monitoring rates and ready to switch quickly.
Month-to-Month Fixed
A fixed rate for a single month with no long-term commitment. Useful for flexibility but often slightly higher-priced than 12-month fixed plans.
Compare Electricity Rates in Your Area
Find the best electricity plan for your home or business. Takes less than 2 minutes — no commitment required.
Frequently Asked Questions About Philadelphia Electricity Rates
Is it worth switching electricity suppliers in Philadelphia?
If a competitive supplier is offering a rate below PECO’s current default (Price to Compare), switching can save you money on the supply portion of your bill. The savings potential depends on the current gap between competitive offers and PECO’s default rate. Use PAPowerSwitch.com to compare current offers for your ZIP code.
Does switching suppliers affect my PECO service?
No. PECO continues to deliver your electricity, respond to outages, and send your bill regardless of your supplier. The switch is administrative — your physical service remains the same.
What is PAPowerSwitch?
PAPowerSwitch.com is the official Pennsylvania Public Utility Commission comparison tool for electricity and natural gas suppliers. It lists all licensed suppliers and their current offers for any Pennsylvania address. It’s a reliable, unbiased starting point for shopping.
Are there green electricity options in PECO territory?
Yes. Several licensed suppliers in PECO territory offer plans sourced from renewable energy (solar, wind, or hydroelectric). These green plans may carry a small rate premium over standard supply. PAPowerSwitch.com and comparison platforms allow you to filter for green supply options.
What is the Philadelphia city electricity tax?
Philadelphia imposes a city-specific tax on electricity consumption. This tax applies regardless of your supplier choice and is collected by PECO on the city’s behalf. It represents one reason Philadelphia electricity bills tend to be slightly higher than suburban PECO customers in surrounding counties.
Can I switch suppliers if I’m renting in Philadelphia?
If electricity is in your name on the account (i.e., you pay the PECO bill directly), you can switch suppliers. If your landlord pays the electricity bill and you pay a flat utility fee, the landlord controls the supplier relationship. Check your lease for clarity on how utilities are billed.