Skip to content

Pennsylvania Dispensary Energy Costs: Small-Commercial Classes, PTC Benchmarks, and EGS Choice

A Pennsylvania dispensary is a small commercial load in a state where commercial power averages 13.33 cents per kWh, below the U.S. figure. Most stores land on a no-demand or low-demand general service class, where the Price to Compare is a real fixed benchmark and a PUC-licensed EGS can beat default service on the supply line alone. With up to three locations per dispensary permit, a multi-store operator still benefits from shopping each meter even when the monthly kWh count looks modest.

By Jason Taken, Founder, Jaken Energy

Updated September 11, 2026Last verified: September 11, 2026
Avg. commercial price
13.33 cents/kWh
June 2026
U.S. average
14.19 cents/kWh
June 2026
Energy choice
Retail electric choice under the Electricity Generation Customer Choice and Competition Act
All residential, commercial, and industrial customers of the seven PUC-regulated EDCs (PECO, PPL Electric, Duquesne Light, Met-Ed, Penelec, Penn Power, West Penn Power) plus the smaller regulated EDCs (UGI Utilities, Citizens' Electric, Wellsboro Electric, Pike County Light & Power). Rural electric cooperatives and municipal systems are outside the PUC choice framework.
Cooling / heating degree days
706 / 5701
Annual normals; see climate source

Pennsylvania figures last verified 2026-09-11. Full citations in the Sources section.

What a dispensary looks like on a Pennsylvania bill

A retail cannabis store draws power for display and sales-floor lighting, HVAC that fights humidity in summer and heat loss in winter, security cameras and access control, point-of-sale systems, and refrigerated storage for certain product forms. None of that looks like a grow, and most Pennsylvania dispensaries never reach the demand-metered classes that dominate grower/processor conversations.

Act 16 issued an initial 50 dispensary permits, each allowing up to three locations [pa-doh-dispensaries]. The Department of Health publishes operational dispensaries as a downloadable list rather than a headline count [pa-doh-dispensaries]. A permit holder running two stores in Montgomery County and one in Lancaster County has three small-commercial meters, three Price to Compare benchmarks, and three enrollment opportunities even if each store uses only 6,000 to 10,000 kWh a month.

Small-commercial classes by utility

UtilityTypical dispensary classDemand charge?Default supply
PECORate GS (General Service, secondary voltage)Per-kW on billing demand for larger GS; most stores stay below threshold [peco-rates-tariffs]Fixed Generation Supply Adjustment reset June 1 and December 1 at or below 100 kW [peco-rates-tariffs]
PPL ElectricGS-1 (small general service)No demand charge [pa-papowerswitch]Fixed PTC reset semiannually [pa-papowerswitch]
Duquesne LightGS (small) or GM under 25 kW; GM 25 to 200 kW [duquesne-business-rates]GM may carry demand elements at higher demandDefault Service Supply rider; class-average PTCs published for GS, GM, GMH [duquesne-business-rates]

The utility rate classes page explains how a store crosses from energy-only billing to demand billing. In Pennsylvania the threshold varies by EDC, commonly somewhere between 25 kW and 100 kW depending on the schedule [pa-papowerswitch]. A flagship dispensary with extensive refrigerated vaults and commercial kitchen equipment can approach that line; a standard sales floor usually does not.

Load components in a humid continental climate

Pennsylvania averages 5,701 heating degree days and 706 cooling degree days [noaa-cag-pennsylvania]. A dispensary in the southeast runs HVAC harder in both seasons than a store in the same square footage in a milder state. Summer dew points in the upper 60s and low 70s F from June through August mean the AC is removing latent load, not just sensible heat [noaa-cag-pennsylvania]. Winter envelope loss keeps heat running from October through April.

Assume a 2,500 square foot store:

LoadAssumptionMonthly kWh
Sales floor and display lighting8 kW, 12 hours a day2,880
HVAC6 kW average4,380
Security, POS, refrigeration2 kW continuous1,440
Total8,700

That profile peaks well under 25 kW unless several large HVAC compressors start at once. The store stays on PPL GS-1 or Duquesne GS, or PECO GS without hitting the larger-load ratchet [pa-papowerswitch] [peco-rates-tariffs] [duquesne-business-rates].

A worked monthly cost

At the EIA June 2026 Pennsylvania commercial average of 13.33 cents per kWh, 8,700 kWh costs about $1,160 a month in energy [eia-epm-5-6-a]. Delivery charges add a customer charge and per-kWh distribution lines that the EDC sets by tariff. Supply is the line a PUC-licensed EGS can compete on.

For a PECO GS account at or below 100 kW, default generation is a fixed Generation Supply Adjustment reset June 1 and December 1 [peco-rates-tariffs]. The Price to Compare for that class is the benchmark: generation plus transmission on default service [pa-puc-retail-markets]. An EGS offer below the PTC on the same term saves money on the supply line without changing delivery. The understanding your bill page shows where to find each component.

Duquesne's Default Service Supply rider can adjust up to four times a year, and class-average PTCs are published for GS, GM, and GMH [duquesne-business-rates]. A Pittsburgh store should compare against the GM or GS figure on the bill, not a statewide average.

Why a small load still benefits from supply choice

Pennsylvania commercial power averages 13.33 cents per kWh against a U.S. average of 14.19 cents [eia-epm-5-6-a]. Default service is not always the cheapest supply even in a below-average state, because Act 129 requires EDCs to procure default service as a prudent mix of spot, short-term, and long-term supply that resets on a calendar [pa-puc-electricity]. PECO resets June 1 and December 1 [peco-rates-tariffs]. Duquesne can reset up to four times a year [duquesne-business-rates]. An EGS fixed contract locks the supply price across those resets.

For a store using 8,700 kWh a month, one cent per kWh on supply is about $87 a month, or roughly $1,040 a year. That is worth a phone call even when the absolute dollars are smaller than a grower/processor bill.

Multi-location dispensary permit holders

Up to three locations per permit means a holder may have meters in different counties and different EDC territories [pa-doh-dispensaries]. PECO serves Philadelphia and the five-county southeast [peco-rates-tariffs]. PPL serves 29 counties including Lancaster and the Lehigh Valley [pa-papowerswitch]. FirstEnergy legacy districts cover Reading, Erie, and much of western Pennsylvania [pa-papowerswitch]. Each meter enrolls separately with an EGS, and each has its own PTC. The Pennsylvania multi-site page covers portfolio procurement when grows and stores share one corporate entity.

Landlord meter and buildout traps

A new dispensary in a leased strip center often opens on the landlord's master meter. Supply choice requires the account to be in the dispensary licensee's name. Plan the account transfer before buildout finishes so the first full month of operation is already on a competitive supply contract rather than default service that resets on the EDC calendar.

Security and refrigeration upgrades during tenant improvement can push peak demand. If refrigerated vault compressors and HVAC start together on a hot August afternoon, a store that was designed for GS-1 can brush against a demand threshold. Size staged startup or specify VFD compressors during design.

Incentives for retail upgrades

PECO's Act 129 Phase V program includes a small-business direct-install track and prescriptive LED lighting and controls incentives [peco-biz-savings]. Duquesne Light's business program covers lighting and HVAC [duquesne-business-rates]. A LED sales-floor retrofit with controls can reduce kWh and improve display quality at the same time. Confirm Phase V measure lists before ordering fixtures.

The New Jersey dispensary page and the Connecticut dispensary page cover retail load in neighboring markets. The PECO switch case study walks through a southeastern Pennsylvania store example, and the switching guide covers enrollment step by step.

Three locations per dispensary permit

Act 16 allows up to three locations per dispensary permit [pa-doh-dispensaries]. Each storefront is a separate EDC account, often on GS Small without demand metering [pa-papowerswitch]. Aggregate chain kWh for EGS RFPs but compare PTC benchmarks account by account because commercial PTCs differ by rate class [pa-puc-retail-markets]. PECO's fixed PTC applies to GS customers at or below 100 kW; larger accounts face hourly default [peco-rates-tariffs].

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-doh-dispensaries]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pa-puc-retail-markets]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pa-papowerswitch]. 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-doh-dispensaries]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pa-puc-retail-markets]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pa-papowerswitch]. 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-doh-dispensaries]. Facility managers should reconcile billing demand to interval peaks monthly and escalate discrepancies before paying disputed invoices [pa-puc-retail-markets]. Corporate finance should map utility COGS to cultivation, processing, or retail cost centers consistently across sites [pa-papowerswitch]. 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].

Compare with other states

Frequently asked questions

Can a Pennsylvania dispensary choose an electricity supplier?

Yes, if the store is a commercial account of a PUC-regulated electric distribution company. All non-residential classes may buy generation from a PUC-licensed Electric Generation Supplier. The EDC continues to deliver power and handle outages. A store in a landlord's meter name cannot switch until the account is in the licensee's name.

What delivery class does a typical Pennsylvania dispensary use?

Most standalone stores stay below the demand-metered threshold. PECO Rate GS applies to general service at secondary voltage without the large-load ratchet unless demand exceeds the tariff threshold. PPL GS-1 covers small general service with no demand charge. Duquesne GS and GM cover small and medium general service, with GM splitting at under 25 kW and 25 to 200 kW.

What is a typical Pennsylvania dispensary electric bill?

It depends on store size and territory. A 2,500 square foot store using about 7,500 kWh a month at the June 2026 statewide commercial average of 13.33 cents would pay roughly $1,000 a month all-in before separating delivery from supply. Replace the average with your own bill before budgeting.

Does the Price to Compare apply to a dispensary?

Yes for small commercial accounts on fixed default service. The Price to Compare is the EDC's default-service generation plus transmission price for each rate class. Commercial PTCs differ by class, so read the benchmark for your class on PAPowerSwitch or on the bill, not a residential figure.

Can one dispensary permit holder shop supply for three locations?

Yes, but each location is a separate meter and a separate enrollment. Act 16 allows up to three locations per dispensary permit. A holder with stores in PECO and PPL territory needs an EGS licensed in both EDC footprints and may receive three different PTC benchmarks.

Are there rebates for dispensary lighting?

PECO's Act 129 Phase V business program includes a small-business direct-install track and prescriptive LED lighting incentives. Duquesne Light and PPL run parallel commercial programs. Confirm current Phase V eligibility before a retrofit.

About the author
Jaken Energy

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.

  1. [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 2025U.S. Energy Information Administration. Accessed 2026-09-11.
  2. [pa-doh-dispensaries]Medical Marijuana: DispensariesPennsylvania Department of Health. Accessed 2026-09-11.
  3. [pa-puc-retail-markets]Retail MarketsPennsylvania Public Utility Commission. Accessed 2026-09-11.
  4. [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.
  5. [peco-rates-tariffs]PECO Rates and Tariffs (Electric Service Tariff No. 8, effective April 1, 2026)PECO. Accessed 2026-09-11.
  6. [duquesne-business-rates]Business Rates and Tariff ResourcesDuquesne Light Company. Accessed 2026-09-11.
  7. [noaa-cag-pennsylvania]Climate at a Glance: Pennsylvania statewide heating and cooling degree days, 1991-2020 base period averagesNOAA National Centers for Environmental Information. Accessed 2026-09-11.
  8. [peco-biz-savings]Business Energy Efficiency Incentives OverviewPECO. Accessed 2026-09-11.
  9. [pa-puc-electricity]ElectricityPennsylvania Public Utility Commission. Accessed 2026-09-11.