Electricity bills are going up across Pennsylvania beginning June 1, 2025.
The increases are driven by rising wholesale energy costs on the regional power grid.
Utilities like Duquesne Light and West Penn Power say they are simply passing through these costs and do not profit from electricity sales.
What Happened
Starting June 1, 2025, Pennsylvania residents will see higher electric bills.
This is due to scheduled quarterly rate adjustments that reflect updated energy market prices.
Duquesne Light and West Penn Power customers will be among the first to experience the hike.
Key Details
Utility | Average Monthly Bill (April 2025) | Average Monthly Bill (June 2025) |
---|---|---|
Duquesne Light | $137.99 | $147.41 |
West Penn Power | $146.61 | $154.00 |
These increases are mainly due to a 15% rise in Duquesne Light’s price-to-compare rate and a 9% rise for West Penn Power.
The price-to-compare reflects the cost of the electricity supply and accounts for roughly half of a typical utility bill.
The other half—distribution, grid maintenance, and service programs—remains unchanged and is regulated separately.
Why Energy Prices Are Rising
Several market dynamics are fueling the rate hikes:
- Increased demand due to economic recovery, electrification of vehicles, and data center growth.
- Decreased supply as fossil fuel plants retire and new renewable capacity lags behind.
- Higher natural gas prices, which are now mostly above $4 per MMBtu, up from $2 last year.
- PJM Interconnection auction spikes, where future capacity costs rose over 800% for 2025–2026.
Reactions and Statements
The Pennsylvania Public Utility Commission (PUC) issued a notice warning residents about the upcoming hikes.
They reminded customers:
- Only those not using a third-party supplier will be directly impacted.
- Customers with supply contracts should review their terms before renewal.
Energy experts, like Penn State’s Seth Blumsack, emphasized that utility prices are largely influenced by broader market forces—similar to how gasoline prices rise due to global oil trends.
What’s Next
No new distribution rate increases are expected until at least Q2 of 2026.
However, the rising capacity and energy costs suggest supply-side price pressure may continue.
Customers are encouraged to:
- Shop for competitive electricity suppliers.
- Use energy-saving measures.
- Seek assistance programs if needed.
FAQs
Q: Why are electric bills increasing in June 2025?
A: Rising wholesale electricity costs and higher capacity market prices are being passed to consumers.
Q: Do utilities profit from the price increase?
A: No. Utilities in Pennsylvania do not earn profit from energy supply—they simply pass along market costs.
Q: Can I avoid the price hike?
A: Possibly. Customers can shop for a competitive energy supplier using the price-to-compare as a guide.
Q: How much will my bill increase?
A: Duquesne Light customers may see a $9 increase. West Penn Power customers might see a $7 rise.
Q: When is the next rate hike expected?
A: Distribution rates are frozen until at least mid-2026, but supply rates will continue adjusting quarterly.
Summary / Final Takeaway
Pennsylvania electricity bills will rise in June 2025 due to increased wholesale and capacity market costs.
While utilities are not profiting from the change, customers should be aware of market trends and consider shopping for alternative energy suppliers to potentially lower their costs.