PECO Energy Company
The Philadelphia Electric Company opened its doors in 1881 to light the streets of a growing city. It operated under that name for nearly fifty years before incorporating as PECO in 1929. The company grew steadily through the twentieth century, expanding its reach and infrastructure across the region. In 2000, a major shift occurred when it merged with Commonwealth Edison's holding company Unicom Corp. This merger brought PECO into the Exelon Corporation family. The integration marked the end of an independent corporate identity for the historic utility. Today, approximately 2,300 employees work for the organization. Many of these workers belong to IBEW Local 614, representing call center staff and field craft personnel.
PECO serves about 1.6 million electric customers and over 511,000 natural gas customers within southeastern Pennsylvania. Its electric service area covers all of Philadelphia and Delaware County. Most of Bucks, Chester, and Montgomery counties also fall under its jurisdiction. A small portion of York County receives electricity from this provider. Natural gas lines extend to all of Delaware County and parts of eastern Lancaster County. The franchise utility service area encompasses a population of 3.8 million people. This makes PECO the largest combination utility in the state. Historically, the company provided power to 35,000 customers in Cecil and Harford counties in Maryland. That service area was sold to Delmarva Power on the 19th of June 1995. Residential usage accounts for roughly 35 percent of total electric delivery volume. Half of the annual electric revenue comes directly from residential customers.
The physical grid relies on specific voltage standards to move energy safely. Distribution line voltages operate at 2,400/4,160 volts wye or 7,620/13,200 volts wye. Subtransmission lines carry 34,500 volts and 69,000 volts through the network. Transmission lines handle massive loads at 138,000 volts, 230,000 volts, and 500,000 volts. The company maintains miles of higher-voltage transmission lines across its territory. Underground electrical distribution cable stretches for thousands of miles beneath city streets. Aerial electrical distribution lines connect poles to homes and businesses throughout the region. Natural gas pipelines link various interstate systems to local consumers. PECO owns a liquefied natural gas storage facility in West Conshohocken, Pennsylvania. A propane-air plant sits in Chester with significant storage capacity. The utility operates 29 natural gas city gate stations that interface with major pipelines. In 1916, construction began on the Chester Waterside Station. This historic building was listed on the National Register of Historic Places in 2007.
The power supplied by Exelon's nuclear division accounts for 53 percent of total generation. Fossil fuels and renewable sources combined provide 12 percent of the energy mix. Purchased power from external markets makes up the remaining 35 percent. Peak electric load reached 8,983 megawatts on the 22nd of July 2011 during summer heat. Winter demand peaked at 6,838 MW on the 20th of December 2004. Sales tend to rise in both summer and winter seasons due to extreme weather. Air conditioning drives high usage in hot months while heating loads increase consumption in cold months. Gas sales hit their highest point on the 17th of January 2000 when temperatures dropped sharply. Residential customers use approximately half of all natural gas deliveries. The company expects to purchase wholesale electricity from competitive market sources after 2010. Retail rates were capped for twelve years before this transition period ended on the 31st of December 2010. Customers now pay actual costs of procurement rather than fixed regulated prices.
Total assets for PECO are valued at $9.8 billion according to recent financial reports. In 2008, the utility delivered a specific volume of natural gas and 39.5 billion kilowatt-hours of electricity. That year generated $5.5 billion in total revenue. The business requires significant capital investment to maintain adequate capacity and reliability. Anticipated capital expenditures for 2009 reached an estimated $400 million. About three-fourths of that budget went toward the electric business. Nearly 20 percent was allocated to gas infrastructure with the remainder covering common expenses. The company pays about $510 million annually in local, state, and federal income taxes. These figures reflect the heavy capital intensity required for utility operations. Maintenance ensures systems function correctly during peak demand periods like summer heat waves or winter storms.
The transition period for the competitive electric generation market concluded on the 31st of December 2010. Caps on retail rates ended simultaneously with competitive transition charges on customer bills. For twelve years prior, electric rates had been strictly capped by regulators. After this date, PECO began purchasing all wholesale electricity from competitive market sources. Retail customers were charged based on actual procurement costs rather than fixed prices. This shift marked a fundamental change in how the utility operated within Pennsylvania. The move aligned the company with broader industry trends toward deregulation. Customers now face variable pricing structures tied directly to market conditions. The end of caps removed long-standing protections for residential and commercial users alike. Regulatory bodies oversaw the bidding process through third-party energy suppliers and wholesalers.
Community activist pressure delayed the opening of nuclear power plants at Limerick Generating Station during the 1970s and 1980s. Plans for a second unit known as Limerick 2 faced temporary cancellation due to public opposition. Both units eventually opened and began producing power by 1990. In 2015, the Earth Quaker Action Team started protesting against PECO's energy policies. Activists demanded expanded solar energy purchases sourced specifically from North Philadelphia. They argued that local sourcing would create jobs for residents. PECO currently buys enough solar energy to power 2,000 residential households. Twice each year, plans are submitted to state regulators for approval in March and September. Environmental groups suggest the utility could generate up to 20 percent of its portfolio from solar sources. Sourcing from rooftop panels might create 70 new jobs or potentially 4,000 jobs across Philadelphia. PECO generates only 0.14 percent of its current energy portfolio from solar installations. Its sister company Constellation remains the third largest developer of solar projects in Pennsylvania.
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Common questions
When did the Philadelphia Electric Company open its doors?
The Philadelphia Electric Company opened its doors in 1881 to light the streets of a growing city. It operated under that name for nearly fifty years before incorporating as PECO in 1929.
What is the service area covered by PECO Energy Company?
PECO serves about 1.6 million electric customers and over 511,000 natural gas customers within southeastern Pennsylvania. Its electric service area covers all of Philadelphia and Delaware County along with most of Bucks, Chester, and Montgomery counties.
How many employees work for PECO Energy Company today?
Today approximately 2,300 employees work for the organization. Many of these workers belong to IBEW Local 614 representing call center staff and field craft personnel.
When was the merger between PECO and Unicom Corp completed?
In 2000 a major shift occurred when it merged with Commonwealth Edison's holding company Unicom Corp. This merger brought PECO into the Exelon Corporation family.
What voltage levels does the physical grid rely on to move energy safely?
Distribution line voltages operate at 2,400/4,160 volts wye or 7,620/13,200 volts wye while subtransmission lines carry 34,500 volts and 69,000 volts through the network. Transmission lines handle massive loads at 138,000 volts 230,000 volts and 500,000 volts.
On what date did the transition period for the competitive electric generation market conclude?
The transition period for the competitive electric generation market concluded on the 31st of December 2010. Caps on retail rates ended simultaneously with competitive transition charges on customer bills after twelve years of strict regulation.