FirstEnergy Rate Hikes in June 2025
These increases, approved by the Pennsylvania Public Utility Commission, are expected to impact budgets across the state as the cost of electricity rises.
Pennsylvania households and businesses served by FirstEnergy utilities-Met-Ed, Penelec, Penn Power, and West Penn Power-will see higher electricity rates starting June 1, 2025.
Why Are Rates Going Up?
The main driver behind these hikes is a steep jump in capacity costs from PJM Interconnection, the regional grid operator. Capacity costs are fees paid to ensure there’s enough electricity available during periods of peak demand.
In PJM’s most recent capacity auction, prices surged by over 800% compared to the previous year, and those costs are now being passed on to consumers [10].
How Much Will Bills Increase?
The “Price to Compare” (PTC)-the standard rate for electricity supply-will rise by about 5–8% depending on your utility.
For a typical residential customer using 1,000 kWh per month, this means an estimated increase of $12–$16 on monthly bills.
Here’s a breakdown by utility:
*Estimates based on 1,000 kWh/month usage. Actual impact varies by usage.
What’s Behind the Capacity Cost Spike?
Capacity costs are set through PJM’s annual auction, which determines payments to power generators for keeping enough supply available.
The June 2024 auction saw prices jump from about $29/MW-day to nearly $270/MW-day, driving up costs for utilities across the region [9]. While new price caps for future auctions have been approved to help control costs, the current rate increases reflect the results of last year’s auction.
What Can Customers Do?
- Explore Assistance Programs: Customers facing financial hardship can apply for help through LIHEAP, FirstEnergy’s Customer Assistance Program (CAP), or Hardship Funds. Calling the utility or dialing 211 can connect you to resources [2].
- Shop for Lower Rates: You can compare electricity supply offers from alternative providers using Currents. We find lower rates and switch you to them automatically, monitor rates constantly and protect you from spam phone calls and emails.
- Reduce Usage: Small changes-like adjusting your thermostat, using LED bulbs, and unplugging devices-can help lower your bill.
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Stay Informed
These increases apply to the generation portion of your bill; distribution and other charges remain regulated. Your total bill impact will depend on how much electricity you use.
With energy costs on the rise, comparing rates and managing usage are more important than ever.
Citations:
- https://electricityrates.com/resources/pennsylvania-electricity-rates-june-2025-increase/
- https://electricityrates.com/resources/firstenergy-announces-rate-increases-for-pa-utilities/
- https://www.firstenergycorp.com/customer_choice/pennsylvania/pennsylvania_tariffs.html
- https://www.firstenergycorp.com/content/dam/customer/Customer%20Choice/Files/PA/tariffs/FEPA-Supp-No-19-PTC-and-HPS-Rider.pdf
- https://www.puc.pa.gov/press-release/2024/puc-to-investigate-firstenergy-s-503-million-rate-increase-requests-for-electric-distribution-services-04252024
- https://www.utilitydive.com/news/pjm-shapiro-pennsylvania-capacity-auction-price-cap/738591/
- https://www.paenergyratings.com/blog/firstenergy-and-peco-announce-december-rate-hikes/
- https://www.paenergyratings.com/blog/capacity-auction-rate-hike-hits-june-1-2025/
- https://electricityplans.com/pennsylvania-capacity-cost-increase-2025/
- https://www.utilitydive.com/news/ferc-pjm-interconnection-capacity-auction-price-cap-collar/745979/
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