PECO Energy Company

PECO

Company type	Subsidiary
Industry	Energy
Predecessor	Philadelphia Electric Company
Founded	1881
Headquarters	Philadelphia , United States
Area served	Southeastern Pennsylvania
Products	Electricity, Natural gas
Number of employees	2300
Parent	Exelon Corporation

PECO, originally known as the Philadelphia Electric Company, is an energy provider established in 1881 and officially incorporated in 1929. In 2000, it became a subsidiary of Exelon Corporation after merging with the holding company Unicom Corp, which owned Commonwealth Edison.

The firm employs around 2,300 individuals, including both call center staff and field workers represented by IBEW Local 614. PECO caters to nearly 1.6 million electricity customers and more than 511,000 natural gas users, positioning it as Pennsylvania’s largest combined utility. Its franchise territory covers an area inhabited by approximately 3.8 million residents.

Electricity and natural gas

Serving southeastern Pennsylvania, PECO delivers electricity to about 1.6 million customers and natural gas to over 511,000. The electric service region encompasses Philadelphia, Delaware County, most portions of Bucks, Chester, Montgomery counties, and southeastern York County. Its natural gas distribution area includes Delaware County; the majority of Bucks, Chester, Montgomery counties; and a segment of eastern Lancaster County.

Previously, PECO provided electricity to 35,000 customers in Maryland’s Cecil and Harford counties through its subsidiary Conowingo Power Company. This territory was divested to Delmarva Power on June 19, 1995.

Distribution voltages range from 2,400/4,160 volts wye up to 13,200 volts wye; subtransmission lines operate at 34,500 and 69,000 volts; transmission circuits function at voltages of 138,000, 230,000, and 500,000 volts. PECO participates as a member of the PJM Interconnection.

In 2012 data showed PECO’s peak electricity demand reached 8,983 MW on July 22, 2011; the highest winter peak was recorded at 6,838 MW on December 20, 2004. Residential electricity consumption represents roughly 35% of total deliveries and approximately half of annual electric revenue.

Electric demand peaks during summer and winter months due to air conditioning and heating requirements. Natural gas usage surges in winter; the maximum recorded volume occurred on January 17, 2000. About half of the natural gas delivered is consumed by residential customers.

PECO’s competitive electric generation transition concluded on December 31, 2010, ending a rate cap period lasting twelve years. Since then, PECO procures wholesale electricity from competitive markets and bills retail customers based on actual procurement expenses.

According to Exelon’s 2012 SEC Form 10-K report:

• Nuclear power contributed 53% of electricity,
• Fossil fuels and renewables made up 12%,
• Purchased power accounted for the remaining 35%.

Facilities and infrastructure

PECO owns and manages:

• high-voltage transmission lines totaling
• underground electrical distribution cables measuring
• overhead electrical distribution lines extending
• pipelines for natural gas transmission, distribution, and service spanning

The company operates a liquefied natural gas storage facility located in West Conshohocken, PA with a capacity of , along with a propane-air plant situated in Chester, PA that holds . Additionally, PECO owns 29 natural gas city gate stations that connect to interstate pipeline systems.

Constructed in 1916, the historic Chester Waterside Station was added to the National Register of Historic Places in 2007.

PECO continues to provide legacy two-phase electric power in certain Philadelphia neighborhoods where infrastructure modernization is not feasible—making Philadelphia one of only two cities still utilizing active two-phase electrical systems.

Revenues

PECO holds total assets valued at $9.8 billion. In 2008, the company supplied natural gas alongside 39.5 billion kilowatt-hours of electricity, resulting in $5.5 billion in revenue.

As a utility characterized by high capital requirements, PECO dedicates significant investments to its electric and gas delivery infrastructure to ensure consistent capacity and service reliability. The estimated capital expenditures for 2009 were around $400 million, with roughly 75% allocated to electric operations, close to 20% directed toward gas services, and the remainder covering shared expenses. Annually, the company contributes approximately $510 million in taxes across local, state, and federal levels.

Controversies

During the 1970s and 1980s, nuclear facility openings at PECO's Limerick Generating Station faced delays due to community activism, which also temporarily stopped the development of the Limerick 2 unit; by 1990, both units had become operational.

In 2015, the Earth Quaker Action Team organized protests urging PECO to enhance its procurement of solar energy, particularly advocating for sourcing from North Philadelphia to foster job creation. PECO currently acquires enough solar-generated power to supply approximately 2,000 households and submits its solar energy plans every two years to Pennsylvania regulators through a third-party competitive bidding process.

PECO’s affiliated company, Constellation, ranks as Pennsylvania’s third-largest developer of solar projects for commercial and governmental clients, while its parent organization Exelon maintains wind energy holdings across the country. Although solar energy represents just 0.14% of PECO’s overall energy mix at present, activists contend that expanding rooftop solar installations could contribute up to 20% of its portfolio and generate thousands of new jobs locally.

External links

• Historic American Engineering Record (HAER) documentation related to Philadelphia, PA, including: