Philadelphia Electric Company
| Company type | Subsidiary |
|---|---|
| Industry | Electric utility, Natural gas utility |
| Predecessor | Philadelphia Electric Company |
| Founded | 1881 |
| Fate | Merged with Unicom Corp in 2000; became subsidiary of Exelon Corporation |
| Headquarters | Philadelphia , United States |
Area served | Southeastern Pennsylvania |
| Products | Electricity, Natural gas |
| Owner | Exelon Corporation |
Number of employees | 2,300 |
| Parent | Exelon Corporation |
PECO, initially known as the Philadelphia Electric Company, was established in 1881 and officially incorporated in 1929. In 2000, it merged with the holding company of Commonwealth Edison, Unicom Corp, becoming a subsidiary of Exelon Corporation.
Employing around 2,300 staff members, including unionized call center and field workers represented by IBEW Local 614, PECO serves nearly 1.6 million electricity customers alongside more than 511,000 natural gas clients. It stands as Pennsylvania’s largest combined utility, covering a service territory with a population close to 3.8 million.
Electricity and natural gas
PECO delivers electrical power to about 1.6 million users and natural gas to over 511,000 customers throughout southeastern Pennsylvania. The electric service region encompasses Philadelphia, Delaware County, the majority of Bucks, Chester, and Montgomery counties, along with a section of York County. Its natural gas distribution includes Delaware County, most of Bucks, Chester, Montgomery counties, and parts of Lancaster County.
Historically, PECO provided electricity to 35,000 customers in Maryland’s Cecil and Harford counties through its subsidiary, Conowingo Power Company, which was divested to Delmarva Power in 1995.
The company’s distribution voltage levels range from 2,400/4,160 volts wye up to subtransmission voltages of 34,500 and 69,000 volts. Transmission lines operate at higher voltages of 138,000, 230,000, and 500,000 volts. PECO is an active participant in the PJM Interconnection regional transmission organization.
In 2012 data indicates PECO’s peak electrical demand reached 8,983 MW on July 22, 2011; the winter peak stood at 6,838 MW on December 20, 2004. Residential electricity consumption represents roughly 35% of total deliveries and constitutes about half of the annual revenue. Demand for electricity fluctuates seasonally—peaking in summer due to air conditioning use and in winter for heating—while natural gas consumption primarily rises during winter months for heating needs. The highest recorded gas sales occurred on January 17, 2000; residential customers account for approximately half of all natural gas usage.
The transition to a competitive electric generation market concluded on December 31, 2010; prior to this date, PECO’s retail rates were capped for twelve years. Since the transition, PECO procures wholesale electricity from competitive markets and passes actual procurement costs onto retail customers.
Exelon's 2012 SEC Form 10-K reports that:
- Nuclear power contributed 53% of energy supply,
- Fossil fuels and renewables made up 12%,
- Purchased power comprised the remaining 35%.
Facilities and infrastructure
PECO operates an extensive network comprising:
- high-voltage transmission lines,
- underground electrical distribution cables,
- aerial electrical distribution lines,
- natural gas transmission, distribution, and service pipelines.
The company manages a liquefied natural gas storage facility located in West Conshohocken, PA with a capacity of , along with a propane-air plant in Chester, PA featuring storage capabilities. PECO owns twenty-nine natural gas city gate stations that connect to interstate pipeline systems.
The historic Chester Waterside Station was constructed in 1916 and earned placement on the National Register of Historic Places in 2007.
PECO continues to provide legacy two-phase electric power service in parts of Philadelphia where modern upgrades are not feasible; Philadelphia remains one of only two U.S. cities maintaining active two-phase power infrastructure.
Revenues
PECO's asset base is estimated at $9.8 billion. In 2008, the company supplied natural gas along with 39.5 billion kilowatt-hours of electricity, resulting in $5.5 billion in total revenue.
As a utility with high capital demands, PECO allocated $400 million for capital investments in 2009. Approximately 75% of this budget was designated for electric operations, close to 20% for gas services, and the remaining portion covered shared corporate expenses. The company contributes roughly $510 million annually in taxes across local, state, and federal levels.
Controversies
During the 1970s and 1980s, community opposition delayed the commissioning of nuclear units at PECO’s Limerick Generating Station and temporarily stopped the Limerick 2 project; both units became fully operational by 1990.
In 2015, the Earth Quaker Action Team staged protests urging PECO to increase its solar energy acquisitions, emphasizing procurement from North Philadelphia to boost local employment. PECO currently acquires enough solar-generated electricity to power about 2,000 households and submits its procurement strategies twice yearly to Pennsylvania regulators through competitive third-party bidding processes. Its affiliate, Constellation, stands as Pennsylvania’s third-largest solar developer serving commercial and governmental clients; meanwhile, Exelon, the parent company, possesses wind energy assets nationwide.
Solar power accounts for only 0.14% of PECO’s energy mix at present. Environmental groups advocate for expanding solar capacity up to 20%, which could potentially create between 70 and 4,000 new jobs in Philadelphia through rooftop solar initiatives.
Further reading
External links
- Historic American Engineering Record (HAER) documentation covering Philadelphia Electric Company facilities such as Richmond Power Station, Schuylkill Station, Delaware Station, and various substations throughout Philadelphia and Delaware County.