Pennsylvania Commercial Electricity Guide (2026): PJM, Price-to-Compare & Supplier Choice

Pennsylvania has one of the most mature and business-friendly electricity choice markets in the country. Since deregulation, commercial customers have been able to shop competitive suppliers while their local utility continues to deliver the power — and with the average PA commercial rate at about 13.68¢/kWh in April 2026, smart procurement can meaningfully beat the default. But 2026 comes with a warning: PA sits inside PJM, where capacity costs just hit record levels, and customers who don't actively manage their contracts risk absorbing those increases through the utility default rate. This guide shows how PA electricity choice works and how to lock a competitive commercial rate.

How Pennsylvania Electricity Choice Works

Pennsylvania fully separated supply from delivery:

• Your utility (EDC) — PECO, PPL, Duquesne Light, Met-Ed, Penelec, Penn Power, or West Penn Power — owns the wires, delivers your electricity, reads your meter, and handles outages. Delivery charges are regulated and appear on every bill regardless of supplier.
• Your supplier (EGS — Electric Generation Supplier) — the competitive company you choose to provide the supply (generation) portion. This is what you shop.
• If you don't choose a supplier, you pay your utility's Price-to-Compare (PTC) — the default service rate.

Switching suppliers doesn't change your delivery, reliability, or who fixes an outage. Only the supply line on your bill changes. See how electricity deregulation works and the state's Pennsylvania electricity shopping guide.

The Price-to-Compare: Your Benchmark, Not Your Best Rate

The Price-to-Compare (PTC) is the per-kWh supply rate your utility charges if you don't shop. It's the number every competitive offer should be measured against — but it's important to understand its quirks:

• The PTC resets periodically (typically quarterly or semi-annually depending on the utility and customer class), so it can jump with the market.
• It reflects the utility's default procurement, which passes through wholesale and capacity costs — increasingly including the PJM capacity spikes described below.
• A competitive fixed rate can lock in below a rising PTC and protect you from the next reset.

Because the PTC floats and competitive fixed rates don't, the value of shopping is greatest when the PTC is expected to rise — which is the situation heading into 2026-2027.

Why PA Rates Are Under Pressure: PJM Capacity

Pennsylvania is part of PJM Interconnection, the regional grid operator. PJM runs annual capacity auctions that pay generators to be available at peak — and those auctions have surged. The 2027/2028 capacity auction cleared at the price cap of $333.44/MW-day, up from $329.17 the year before and many multiples of historical levels. Those costs flow through to PA commercial customers via capacity charges embedded in supply rates and the PTC.

The strategic implication: locking a fixed competitive rate now can hedge the capacity increases that will otherwise keep pushing the PTC and variable rates higher. See our PJM capacity auction analysis, capacity charges on your commercial bill, and why commercial bills went up in 2026.

How PA Businesses Lock a Competitive Rate

1. Find your PTC and your usage. Your utility publishes the current PTC; pull 12 months of usage for accurate quoting. Compare against the rates-by-state benchmark.
2. Solicit multiple licensed EGS offers. Compare fixed-rate offers apples-to-apples, term for term. Verify the supplier is licensed with the PA PUC. See licensed electricity suppliers by state and comparing supplier offers.
3. Read the contract terms. Watch for auto-renewal into variable rates, pass-through capacity clauses, and early-termination fees. See auto-renewal traps and bandwidth clauses.
4. Choose a term that hedges capacity. With PJM capacity locked high through 2027/2028, 24- or 36-month fixed terms provide budget certainty. See choosing contract length and the 2027 price forecast.
5. Manage demand charges. Larger PA customers should also attack peak demand and PJM coincident-peak (transmission) exposure. Use the demand charge calculator and see demand charge management.
6. Own your renewal date. Start renewing 3–6 months out so you never roll to a variable holdover rate. See contract renewal best practices.

Serving businesses across Pennsylvania — Philadelphia (PECO), the Lehigh Valley and central PA (PPL), Pittsburgh (Duquesne Light), and beyond. See city guides for Philadelphia, Pittsburgh, Allentown, and Harrisburg, plus our Pennsylvania state overview. PA also offers commercial natural gas choice — see PA natural gas shopping.

Frequently Asked Questions

What is the average commercial electricity rate in Pennsylvania in 2026? About 13.68¢/kWh (EIA, April 2026). Your effective rate depends on your utility (PECO, PPL, Duquesne, etc.), rate class, load profile, demand charges, and whether you're on the utility Price-to-Compare or a competitive fixed rate.

What is the Price-to-Compare (PTC)? The PTC is the default supply rate your utility charges if you don't choose a competitive supplier. It floats and resets periodically, passing through wholesale and PJM capacity costs. It's the benchmark every competitive offer should beat — and a fixed competitive rate can lock in below a rising PTC.

Will switching suppliers affect my reliability or service? No. Your utility still delivers the power, maintains the lines, reads your meter, and restores outages. Only the supply portion of your bill changes when you switch.

Why are Pennsylvania electricity prices rising? Primarily PJM capacity costs — the 2027/2028 capacity auction cleared at a record $333.44/MW-day — plus data center demand growth and utility delivery rate cases. A competitive fixed rate can hedge the capacity portion.

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Beat a rising Price-to-Compare with a competitive fixed rate. Get a free Pennsylvania rate review or call 833-264-7776.

Sources: U.S. Energy Information Administration, Electric Power Monthly Table 5.6.A (April 2026); PJM Interconnection 2027/2028 Base Residual Auction results (December 2025); Pennsylvania PUC electricity choice program (PAPowerSwitch).