Some PECO customers are eligible to receive help paying their electricity bills, thanks to a program that launched last week.

The Philadelphia-based electric company will offer qualifying customers one-time $500 grants through its temporary PECO Customer Relief Fund. Applications for assistance opened Aug. 4, and the program will continue through Dec. 31 or until available funds run out, according to the utility’s website.

The program was created to support limited to middle-income customers, PECO’s website states. It is funded by a one-time donation from Exelon, the utility’s parent company, and administered by the United Way of Greater Philadelphia and Southern New Jersey.

The launch comes shortly after PECO customer rates increased in June and the regional grid operator hosted its latest capacity auction, signaling future price hikes.

“We realize customers are bearing the brunt of increasing energy costs as demand rises while supply is limited,” the company wrote on its website. “Although PECO and Exelon do not control energy supply costs, the company is committed to advocating for customers and working to find solutions with those who do control those costs.”

How to apply

Eligible households must have an annual income that’s between 151% and 300% of the federal poverty level, or $48,225 to $96,450 for a family of four. Customers must also have a past-due balance of $2,000 or less, unless the grant reduces the balance down to $2,000. Qualified residents need to be current PECO residential electric or natural gas customers, and must provide proof of income when applying.

PECO encourages customers to keep paying their bills, because applying for the program doesn’t guarantee financial assistance to all applicants nor does it prevent service shutoffs if the funds don’t cover a household’s outstanding balance. Applications will be processed on a first-come, first-served basis, the utility said.

Rising costs

In January, PECO rates increased by 10%, or around $13 for the typical residential customer.

The average residential bill rose again on June 1 by more than 12%. The Pennsylvania Public Utility Commission (PUC) attributed the change to an increase in natural gas prices and higher capacity costs — or the amount regional grid operator PJM Interconnection pays power producers to meet peak electricity demand.

Consumer rates are expected to rise again next year after PJM’s latest capacity auction with these producers in July. Prices for guaranteed power in the PJM Interconnection footprint rose 22% from last year’s number through the auction. These funds for selected bidders will fall on ratepayers. Starting next June, customers’ bills are projected to increase as high as 5% annually.

Experts told Reuters customer bills could surge over the next five years as Pennsylvania becomes an AI hub and the new data centers drive up power demand.

Consumers across the U.S. have been paying more for utilities due to data center development, climate change, tariffs, and other factors. In Philadelphia, water rates are set to increase in September and Philadelphia Gas Works, the city’s natural gas provider, proposed a price hike for the fiscal year of 2026.

Unequal burden

Many residents in Philadelphia and the rest of the state are struggling to keep up with these price hikes.

More than one in five Pennsylvania households reported difficulty paying their electricity bills and the number of electric service shutoffs is up 38% compared to last year, Patrick Cicero, the state’s former consumer advocate, said in a July media briefing.

Nationally, low-income, Black, Hispanic, Indigenous, and older adult households face disproportionately higher energy burdens than the average household, the nonprofit American Council for an Energy-Efficient Economy reported.

Other programs in Philadelphia that assist PECO customers with paying their energy bills are PECO’s Customer Assistance Program, which provides monthly credits to customers with household incomes at 150% or below the federal poverty line, and the state’s Low Income Home Energy Assistance Program, which helps families pay for their heating bills. To qualify, the customer must have a maximum annual income of $23,475 individually, or $48,225 for a four-person household.

To apply for the Customer Relief Fund, visit unitedforimpact.submittable.com/submit.

Abby Weiss is an environmental reporter for the Local and a Report for America corps member. She can be reached at Abby@chestnuthilllocal.com.