PECO, IBEW Local 614 End 3-Day Strike With Tentative Deal for 1,600 Workers

Q: PECO's new deal promises no immediate rate hikes. When will customers feel the financial impact of this historic union victory?

Not immediately. PECO says the tentative five-year labor deal will not change customer rates now, and any customer impact would most likely show up only in a future rate case, typically months or longer down the line. That is because utility labor costs are not usually passed straight onto bills the moment a contract is signed. PECO would generally have to seek recovery through Pennsylvania’s regulatory process, where state regulators review whether higher expenses should be reflected in rates. Based on standard utility practice, that process often takes roughly 12 to 18 months from filing to implementation. So the likely answer is that customers would feel any contract-related effect later, not this summer. Rutgers professor William Dwyer said the agreement will contribute to future rate increases, but he also suggested the labor deal would be a smaller factor than broader pressures such as infrastructure spending. Those broader costs may matter more to customers than the strike settlement itself. In Pennsylvania and the wider PJM region, rising grid and supply costs have already been pushing electricity prices higher, with additional pressure expected into 2026 and 2027. That means if PECO customers do see higher bills later, the union contract is likely to be only one part of the increase rather than the main driver.

3 articles · Updated · WPVI-TV · Jul 7

Monday night's tentative agreement ended PECO's three-day strike, with union leaders saying members will return to work Wednesday after securing their major contract priorities.
The deal covers industry-standard wages and benefits, including cash balance pension plans, full retirement medical coverage for all members and significant general wage increases, though full terms were not immediately released.
PECO said the agreement supports workplace safety and reliable service, and added it will not change customer rates.
The walkout began July 4 after months of negotiations, and PECO brought in out-of-state crews after two weekend storms to restore power.