PHILADELPHIA (WPVI) -- PECO customers could see an increase in their monthly rate at the start of the new year.
The electric company announced Thursday it has reached a settlement with the Pennsylvania Public Utility Commission on changes to electric delivery rates.
The new rates would take effect on Jan. 1, 2016, the company said.
"With this funding, we will continue to ensure safe and reliable electric service and develop new helpful programs and services for our customers," said Craig Adams, PECO president and CEO.
"We appreciate the hard work and cooperation of all involved as we worked together on this necessary increase."
Based on the settlement, the company said customers would see an increase of less than four percent in their monthly bill.
For example, a residential customers using 700 kilowatt hours of electricity would see an increase of $4.17 in their monthly bill, the company said.
Small business owners would see an increase of about $17.02 and larger customers will see an increase of $432.32, the company said.
The PUC must approve the settlement and rate requests before the changes take effect.
The settlement reflects a $127 million overall increase in electric delivery rates, the company said.
PECO said the rate increase will allow the company to continue to invest in ongoing maintenance work and special programs including low-income customer support.
For ways to save energy and money visit peco.com/SmartIdeas or peco.com/rates or call 1800-494-4000.