Pennsylvania Commercial Electricity Rates for Cannabis Facilities: EDC Classes, Benchmarks, and Bill Drivers
Pennsylvania commercial electricity averaged 13.33 cents per kWh in June 2026, about 6 percent below the U.S. average of 14.19 cents, while industrial customers averaged 10.10 cents. The spread between those two numbers is mostly delivery structure: PECO, PPL, and Duquesne bill their larger classes on peak kW, not just kWh, and the class an account sits in decides how much of the bill is demand-driven and whether default supply is a fixed Price to Compare or hourly PJM pricing.
Pennsylvania figures last verified 2026-09-11. Full citations in the Sources section.
Pennsylvania vs. the U.S. average
| Sector | Pennsylvania, June 2026 | U.S. average, June 2026 | Pennsylvania vs. U.S. |
|---|---|---|---|
| Commercial | 13.33 cents/kWh | 14.19 cents/kWh | -0.86 cents, about 6 percent lower |
| Industrial | 10.10 cents/kWh | not in state file |
Source: EIA Electric Power Monthly, Table 5.6.A [eia-epm-5-6-a].
The EIA number is average revenue per kWh across every commercial customer, blending delivery and supply, small stores and large grower/processors. For a cannabis operator the useful reading is the 3.23 cent gap between commercial and industrial. Most of that gap is structure: larger accounts spread fixed delivery charges over more kWh and get supply priced against a flatter load.
| State | Avg. commercial price | Cannabis market | Energy choice |
|---|---|---|---|
| California | 27.33 cents/kWh | Adult-use + medical | Commercial-only choice |
| Massachusetts | 24.52 cents/kWh | Adult-use + medical | Full commercial choice |
| New York | 23.56 cents/kWh | Adult-use + medical | Full commercial choice |
| Washington, D.C. | 23.38 cents/kWh | Medical only | Full commercial choice |
| Rhode Island | 22.70 cents/kWh | Adult-use + medical | Full commercial choice |
| Maine | 22.24 cents/kWh | Adult-use + medical | Full commercial choice |
| New Hampshire | 21.22 cents/kWh | Medical only | Full commercial choice |
| Connecticut | 19.62 cents/kWh | Adult-use + medical | Full commercial choice |
| New Jersey | 18.47 cents/kWh | Adult-use + medical | Full commercial choice |
| Maryland | 16.84 cents/kWh | Adult-use + medical | Full commercial choice |
| Michigan | 16.63 cents/kWh | Adult-use + medical | Capped commercial choice |
| Illinois | 14.53 cents/kWh | Adult-use + medical | Full commercial choice |
| Delaware | 14.40 cents/kWh | Adult-use + medical | Full commercial choice |
| Ohio | 13.77 cents/kWh | Adult-use + medical | Full commercial choice |
| Pennsylvania | 13.33 cents/kWh | Medical only | Full commercial choice |
| Nevada | 9.83 cents/kWh | Adult-use + medical | Commercial-only choice |
| Texas | 8.66 cents/kWh | Low-THC medical only | Full commercial choice |
Major EDC delivery classes and demand billing
| EDC | Small commercial (typical dispensary) | Medium / general with demand (typical grow) | Large power | Demand charge basis |
|---|---|---|---|---|
| PECO | Rate GS at secondary voltage | Rate GS with per-kW billing demand; PD above 100 kW at primary; HT high tension [peco-rates-tariffs] | GS with contract demand above 500 kW triggers billing-demand floor [peco-rates-tariffs] | Per-kW on billing demand for GS and above |
| PPL Electric | GS-1, no demand charge [pa-papowerswitch] | GS-3, per-kW on measured demand [pa-papowerswitch] | LP-4/LP-5 primary and transmission voltage [pa-papowerswitch] | Per-kW on measured demand for GS-3 and LP |
| Duquesne Light | GS small; GM under 25 kW and 25 to 200 kW [duquesne-business-rates] | GM with demand elements at higher kW | GL at 300 kW and above; L at 5,000 kW [duquesne-business-rates] | Per-kW on larger schedules |
| FirstEnergy PA | GS Small, GS Medium by legacy district [pa-papowerswitch] | GS Large with per-kW demand [pa-papowerswitch] | Primary and transmission classes | Per-kW on larger general service |
Per-kW dollar figures change on tariff filings. Confirm current rates on each EDC's tariff page before quoting a specific facility [peco-rates-tariffs] [pa-papowerswitch] [duquesne-business-rates].
Default supply benchmarks
| EDC | Benchmark name | Reset schedule | Applies to |
|---|---|---|---|
| PECO | Price to Compare / Generation Supply Adjustment | June 1 and December 1 for GS, PD, HT at or below 100 kW [peco-rates-tariffs] | Small commercial; fixed default |
| PECO | Hourly default service | PJM-indexed | GS, PD, HT above 100 kW [peco-rates-tariffs] |
| PPL | Price to Compare | Semiannual reset for small C and I [pa-papowerswitch] | GS-1 and small GS-3 |
| PPL | Hourly default | PJM-indexed | Large C and I [pa-papowerswitch] |
| Duquesne | Default Service Supply rider / class-average PTC | Up to four times a year [duquesne-business-rates] | GS, GM, GMH on fixed default |
| Duquesne | Hourly default | PJM-indexed | Large C and I [pa-puc-retail-markets] |
The Price to Compare is the EDC's default-service generation plus transmission price for each rate class [pa-puc-retail-markets]. Act 129 of 2008 requires default service to be a prudent mix of spot, short-term, and long-term supply [pa-puc-electricity], which is why PTCs reset on a fixed calendar rather than tracking the spot market month to month [pa-puc-electricity].
PJM capacity and transmission context
All Pennsylvania EDCs are in PJM [pa-puc-retail-markets]. Capacity and network transmission costs pass through to EGS customers based on the customer's peak load contribution and network service peak load tags set by the EDC [pa-puc-retail-markets]. A grow room's summer coincident peak sets a full year of capacity cost regardless of which supplier it uses [pa-puc-retail-markets]. The delivery class and the PLC tag are two different things that both come from peak demand. See demand charges explained and utility rate classes.
Seasonality
Pennsylvania averages 706 cooling degree days against 5,701 heating degree days, with summer dew points in the upper 60s and low 70s F in the southeast [noaa-cag-pennsylvania]. Electric load for a sealed grower/processor peaks in the humid months when dehumidification runs alongside lighting, and PJM wholesale prices tend to peak in the same window. PECO default supply resets on June 1 and December 1 [peco-rates-tariffs], so a facility comparing supplier offers in May is comparing against a summer PTC about to change. Duquesne can adjust default supply up to four times a year [duquesne-business-rates].
How to read a Pennsylvania commercial bill
- Find the delivery class on the bill and confirm it matches the EDC tariff for your peak kW.
- Separate delivery from supply. Delivery is set by the PUC through the EDC tariff whether or not you have an EGS. Supply is what a contract controls.
- Divide default generation and transmission dollars by kWh to get your actual benchmark in cents per kWh. That is the number to compare against EGS offers, not a residential PTC from PAPowerSwitch [pa-papowerswitch].
- For demand-billed classes, identify the billed kW line and confirm it matches measured peak or a ratchet rule such as PECO's billing-demand floor for contract demand above 500 kW [peco-rates-tariffs].
- Check PLC and NSPL tags if shown. They drive capacity pass-through on EGS bills [pa-puc-retail-markets].
- Check whether the account is near a class threshold. Crossing from PPL GS-1 to GS-3 or from Duquesne GM to GL changes both delivery and default supply mechanics.
The PECO utility page, PPL utility page, and Duquesne utility page go into each territory's metering and billing options. The demand charge estimator and state rate comparison turn these numbers into a facility-specific estimate. Tariff structure on this page was verified on 2026-09-11; check current sheets before quoting a dollar figure.
PLC tags and EGS pass-through language
All Pennsylvania EDCs pass capacity and network transmission based on the customer's peak load contribution and network service peak load tags [pa-puc-retail-markets]. A July coincident peak sets a cost that lasts the planning year regardless of EGS choice [pa-puc-retail-markets]. Supplier quotes must state whether RPM capacity is bundled or passed through [pa-puc-retail-markets].
Act 129 Phase V and default-service resets
Act 129 Phase V business efficiency programs began June 1, 2026 [peco-biz-savings]. Default-service PTCs reset on EDC-specific calendars: PECO's Generation Supply Adjustment resets June 1 and December 1; Duquesne's Default Service Supply rider can adjust up to four times a year [peco-rates-tariffs] [duquesne-business-rates]. Re-benchmark EGS savings after each reset, not only at contract signing [pa-papowerswitch].
Quarterly bill review cadence
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [pa-puc-retail-markets]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pa-papowerswitch]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pa-puc-electricity]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [peco-rates-tariffs]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].
Documentation for audits and lenders
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [pa-puc-retail-markets]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pa-papowerswitch]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pa-puc-electricity]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [peco-rates-tariffs]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].
Board reporting on utility COGS
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [pa-puc-retail-markets]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pa-papowerswitch]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pa-puc-electricity]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [peco-rates-tariffs]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].
Tariff verification before budgeting
Maintain a utility folder with the current tariff PDF, last twelve months of bills, interval exports where available, supplier contracts, and witness test reports [eia-epm-5-6-a]. Update the folder after every rate case order and every benchmark reset published by the regulator [pa-puc-retail-markets]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pa-papowerswitch]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pa-puc-electricity]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [peco-rates-tariffs]. Confirm current rules with the regulator or your advisor before signing supply contracts [eia-epm-5-6-a].
Frequently asked questions
Is 13.33 cents per kWh what my Pennsylvania facility will pay?
No. It is the EIA statewide average revenue per kWh across all commercial customers in June 2026, delivery and supply combined. A dispensary on GS-1 with a competitive EGS contract can be under it; a grower/processor with a high summer peak and demand billing can be over it. Use it to sanity-check a bill, not to budget one.
Why is the Pennsylvania industrial average 3.23 cents lower than commercial?
Industrial customers tend to be larger, take service at higher voltage, and run flatter loads. Their per-kWh delivery cost is lower because fixed per-kW charges spread over more kWh, and supply pricing reflects a better load factor. A grower/processor with a flat lighting schedule can price closer to the industrial line.
What is the Price to Compare?
It is the EDC's default-service generation plus transmission price for each rate class, published so customers can compare EGS offers. Commercial PTCs differ by class. Act 129 requires default service to be a prudent mix of spot, short-term, and long-term supply that resets on a calendar rather than tracking the market month to month.
When does default service become hourly?
Large commercial and industrial default service in most EDC territories is priced hourly off PJM rather than at a fixed PTC. The threshold varies by EDC, commonly between 100 kW and 500 kW. Facilities above that threshold shop for a fixed EGS contract to avoid hourly exposure.
How do demand charges differ among PECO, PPL, and Duquesne?
PECO Rate GS carries per-kW distribution demand on billing demand with a floor for contract demand above 500 kW. PPL GS-3 bills per-kW distribution on measured demand; GS-1 has no demand charge. Duquesne GM and GL carry demand elements at higher demand levels, with GL applying at 300 kW and above. Confirm current per-kW figures on each tariff sheet.
Related reading
- Pennsylvania Cannabis Energy: Electricity Choice, Rates, and Utilities for Licensed Operators
How PA medical cannabis grower/processors and dispensaries buy power: PECO, PPL, and Duquesne choice, PJM rates, Act 129, and the 25-permit cap.
- PECO for Cannabis Facilities: Delivery Classes, Demand Charges, Default Supply, and EGS Billing
How PECO bills a cannabis grow, lab, or dispensary: Rate GS through HT, per-kW distribution demand, PJM, Generation Supply Adjustment, and consolidated billing.
- PPL Electric for Cannabis Facilities: GS-1 Through LP-5, Demand Charges, and EGS Supply
How PPL Electric bills a central or eastern PA cannabis site: GS-1, GS-3, LP-4 classes, semiannual PTC, hourly default, and PJM tags.
- Duquesne Light for Cannabis Facilities: GS Through GL Classes, DSS Rider, and EGS Billing
How Duquesne Light bills a Pittsburgh-area cannabis site: GS, GM, GL schedules, DSS rider adjustments, per-kW demand, and PJM tags.
- How to Switch Electricity Suppliers in Pennsylvania: A Step-by-Step Guide for Cannabis Businesses
How a PECO, PPL, or Duquesne business enrolls with a PUC-licensed EGS: eligibility, Price to Compare, enrollment, meter-read timing, and contract rules.
- Demand Charges Explained for Cannabis Cultivators
What a demand charge is, how utilities measure peak kW in 15- or 30-minute windows, why grow rooms get hit hard, how ratchets work, and a worked example.
- Utility Rate Classes Explained: Small Commercial, Large Commercial, C&I
How utilities assign small, large, and C&I rate classes by peak kW, why the wrong class costs money, real tariff examples, and how to request a class review.
- Understanding Your Commercial Utility Bill (Line-Item Breakdown)
Supply vs delivery, customer charge, distribution demand, transmission, capacity, riders, power factor, and taxes, with an annotated sample bill for a grow.
- State Commercial Rate Comparison
Compare average commercial electricity prices across cannabis states, with cannabis market status and supplier choice rules pulled from verified state data.
- Demand Charge Estimator
Estimate monthly and annual demand charges from your peak kW, average kW, and tariff rate. Model load factor and peak shaving savings.
Jason Taken founded Jaken Energy, the commercial energy procurement practice behind this site. He works with licensed cannabis operators in deregulated electricity markets to lower supply rates, manage demand charges, and evaluate efficiency upgrades.
Sources
Inline citations in this article, such as [eia-epm-5-6-a], refer to the entries below. Links open the primary source in a new tab.
- [eia-epm-5-6-a]Electric Power Monthly, Table 5.6.A: Average Price of Electricity to Ultimate Customers by End-Use Sector, by State, June 2026 and June 2025 — U.S. Energy Information Administration. Accessed 2026-09-11.
- [pa-puc-retail-markets]Retail Markets — Pennsylvania Public Utility Commission. Accessed 2026-09-11.
- [pa-papowerswitch]PAPowerSwitch: The Official Electric Shopping Website of the Pennsylvania Public Utility Commission (including Shop for Business) — Pennsylvania Public Utility Commission. Accessed 2026-09-11.
- [pa-puc-electricity]Electricity — Pennsylvania Public Utility Commission. Accessed 2026-09-11.
- [peco-rates-tariffs]PECO Rates and Tariffs (Electric Service Tariff No. 8, effective April 1, 2026) — PECO. Accessed 2026-09-11.
- [duquesne-business-rates]Business Rates and Tariff Resources — Duquesne Light Company. Accessed 2026-09-11.
- [noaa-cag-pennsylvania]Climate at a Glance: Pennsylvania statewide heating and cooling degree days, 1991-2020 base period averages — NOAA National Centers for Environmental Information. Accessed 2026-09-11.
- [peco-biz-savings]Business Energy Efficiency Incentives Overview — PECO. Accessed 2026-09-11.