PECO for Cannabis Facilities: Delivery Classes, Demand Charges, Default Supply, and EGS Billing

Service area and grid operator

PECO, an Exelon company, is the largest Pennsylvania electric distribution company by customers and serves Philadelphia and the five-county southeastern region: Bucks, Chester, Delaware, Montgomery, and the York county electric portion [peco-rates-tariffs] [pa-papowerswitch]. The territory sits entirely in PJM [pa-puc-retail-markets]. Delivery, metering, and outages are PECO's job and are regulated by the Pennsylvania Public Utility Commission. Supply for a nonresidential account is priced against PJM energy and capacity whether PECO or an Electric Generation Supplier arranges it [pa-puc-retail-markets].

Southeastern Pennsylvania holds a dense cluster of dispensary locations and several grower/processor facilities among the 25 permits capped statewide [pa-papowerswitch]. Bucks and Montgomery counties in particular mix retail stores on Rate GS with large indoor grows on demand-metered GS or PD.

Delivery classes and what puts you in one

Electric Service Tariff No. 8, current version effective April 1, 2026, splits non-residential distribution by voltage and size [peco-rates-tariffs]:

Rate	Description	Typical cannabis account
GS	General Service, secondary voltage	Dispensaries, small labs, mid-sized grows
PD	Primary Distribution Power, generally above 100 kW at primary voltage	Larger grower/processors taking primary service
HT	High Tension Power	Very large industrial loads, uncommon in cannabis

Rate GS carries a per-kW distribution demand charge on billing demand [peco-rates-tariffs]. The tariff applies a billing-demand floor for larger GS loads with contract demand above 500 kW [peco-rates-tariffs]. Placement follows measured peak demand. A dispensary that peaks under the demand threshold stays on GS without the larger-load ratchet behavior; a grower/processor with 400 kW of lighting plus summer HVAC can sit on GS with full demand billing or move toward PD if it takes primary service above 100 kW [peco-rates-tariffs].

Demand charge structure

The main delivery line for demand-metered GS accounts is the per-kW distribution demand charge on billing demand [peco-rates-tariffs]. Confirm the current per-kW figure on Tariff No. 8 before budgeting; the structure matters even when the dollar rate changes on filing.

For an assumed 450 kW billing demand on Rate GS at secondary voltage, every dollar per kW on the tariff is $450 per month on that line alone. Four summer months at higher billing demand than eight winter months can produce a six-figure annual delivery total before customer charges, metering, and per-kWh lines. None of that is controlled by an EGS contract. See demand charges explained.

Primary service through Rate PD generally applies above 100 kW at primary voltage [peco-rates-tariffs]. Taking primary voltage and owning the transformer is a capital decision against a different delivery rate for the life of the facility. Review PD availability with PECO during buildout, not after the service is energized at secondary voltage.

Default supply and the Generation Supply Adjustment

Default generation for GS, PD, and HT customers at or below 100 kW is a fixed-price Generation Supply Adjustment reset June 1 and December 1 [peco-rates-tariffs]. The Price to Compare for each class is the default-service generation plus transmission price published for benchmarking supplier offers [pa-puc-retail-markets]. Commercial PTCs differ by rate class [pa-puc-retail-markets].

Larger customers are on hourly-priced default service [peco-rates-tariffs] [pa-puc-retail-markets]. A grower/processor above 100 kW that stays on default exposes both the lighting block and the summer dehumidification peak to PJM hourly prices. A fixed EGS contract converts supply energy to a known price, though capacity pass-through still follows the PLC tag [pa-puc-retail-markets].

Act 129 requires default service to be a prudent mix of spot, short-term, and long-term supply [pa-puc-electricity], which is why the Generation Supply Adjustment resets on a calendar rather than tracking the spot market each month [pa-puc-electricity]. Compare EGS offers against the PTC for your class on PAPowerSwitch or against trailing cost if you are on hourly default [pa-papowerswitch].

Metering and interconnection notes

• Interval data. Demand-metered accounts need AMI interval exports to manage peaks and to give EGS suppliers data to price against. Request intervals during commissioning, not after the first summer bill [peco-rates-tariffs].
• Voltage at buildout. Secondary vs. primary service is decided when the electrical design is submitted. Moving from GS secondary to PD later is a re-engineering project.
• PLC tags. PECO sets peak load contribution and network service peak load tags that drive PJM capacity pass-through on EGS bills [pa-puc-retail-markets]. Summer peak management at the grow lowers capacity cost for the full planning year regardless of supplier.

The interval data page covers how to pull half-hour data from PECO meters and find the intervals that set billing demand.

Efficiency and demand response programs

PECO's Act 129 Phase V business program, June 1, 2026 through May 31, 2031, offers prescriptive and custom incentives for LED lighting and controls, HVAC, VFDs, motors, and custom projects, with a small-business direct-install track [peco-biz-savings]. Dispensaries often qualify for the direct-install track; grower/processors more often use custom incentives for dehumidification and chiller upgrades.

Act 129 demand response programs pay commercial customers to curtail load on called event days [cpower-peco-dr]. CPower administers the PECO program [cpower-peco-dr]. A grow with flexible lighting schedules can enroll through a curtailment service provider. The demand response page covers enrollment mechanics separate from the EGS contract.

How an EGS contract works with PECO billing

When a customer designates a PUC-licensed EGS, the supplier replaces PECO's default generation and transmission charges [pa-puc-retail-markets]. PECO continues to bill delivery, metering, and regulated charges [pa-puc-retail-markets]. Billing formats:

1. Consolidated utility bill. PECO sends one bill with the EGS supply charge on it. Most common for dispensaries and grower/processors.
2. Dual billing. PECO bills delivery, the EGS bills supply separately.
3. Supplier single bill. Available with some EGS arrangements depending on contract terms.

The EGS submits enrollment to PECO, and the switch takes effect at the next meter read [pa-papowerswitch]. Do not let a large account lapse to hourly default at contract end [pa-puc-retail-markets]. The full procedure is on the Pennsylvania switching guide. The PPL page and Duquesne page cover the other major territories for operators with sites outside the southeast, and the PECO dispensary case study walks through a retail example.

GS billing-demand ratchet above 500 kW

PECO Electric Service Tariff No. 8 applies a billing-demand floor on larger GS loads with contract demand above 500 kW [peco-rates-tariffs]. One August afternoon can echo for months [peco-rates-tariffs]. Interval data at commissioning helps manage peaks and gives EGS suppliers a defensible quote [peco-rates-tariffs]. Act 129 Phase V prescriptive rebates cover LED, HVAC, and VFDs [peco-biz-savings].

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 [peco-rates-tariffs]. 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 [peco-biz-savings]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [cpower-peco-dr]. Confirm current rules with the regulator or your advisor before signing supply contracts [peco-rates-tariffs].

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 [peco-rates-tariffs]. 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 [peco-biz-savings]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [cpower-peco-dr]. Confirm current rules with the regulator or your advisor before signing supply contracts [peco-rates-tariffs].

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 [peco-rates-tariffs]. 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 [peco-biz-savings]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [cpower-peco-dr]. Confirm current rules with the regulator or your advisor before signing supply contracts [peco-rates-tariffs].

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 [peco-rates-tariffs]. 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 [peco-biz-savings]. Legal should keep meter assignment language in leases aligned with the license holder on the utility account [cpower-peco-dr]. Confirm current rules with the regulator or your advisor before signing supply contracts [peco-rates-tariffs].