The increase affects households using default utility supply, meaning customers who buy electricity directly from their local utility and have not selected another energy provider. The change represents an additional $25 per month, or about $300 more per year for those customers.
Electricity costs have also climbed over a longer period. According to a recent update from Pennsylvania’s Independent Fiscal Office, the average monthly bill for a typical household rose from $191 in 2022 to $257 in 2026, an increase of $66 per month. Over four years, this represents a 34.9% rise, compared with a 16.3% inflation increase in the Philadelphia region.
Rising Power Costs Drive Higher Household Bills
The main factor behind the increase is the higher cost of electricity on the regional power grid. Utilities and retail electricity suppliers purchase power from generators, and those wholesale costs have increased.
According to the Pennsylvania Independent Fiscal Office report, the wholesale price paid for electricity on the grid increased by 48.3% last year and rose by another 75.5% in early 2026. These higher prices for generating electricity have contributed to the larger bills paid by residential customers.
The report examined a typical household using 1,200 kilowatt-hours of electricity each month to show how these changes are affecting residents. The example showed that monthly electricity costs reached $257 in 2026.
Utility Customers and Shoppers Both Feel the Impact
The yearly increase directly affects residents who remain on default utility service, but customers who choose another electricity supplier are also affected by some of the rising costs.
All Pennsylvania households pay charges related to local grid delivery and state taxes, regardless of their electricity supplier. According to the report, those charges have increased by more than 35% since 2022.
This means switching providers does not remove every part of the increase because some electricity-related costs apply across the state’s residential customers.
Electricity Prices Rise Faster than Regional Inflation
The increase in Pennsylvania electricity bills has outpaced broader price growth in the Philadelphia area. Household electricity costs increased by 34.9% between 2022 and 2026, while regional inflation reached 16.3% during the same period.
For a typical household, the difference represents a move from a $191 monthly bill in 2022 to $257 in 2026. The latest figures show how changes in power generation costs and grid expenses have translated into higher residential electricity payments across Pennsylvania.
