What You’ll Learn
- Why Met-Ed took the largest Price to Compare increase of any FirstEnergy PA utility in December 2025 despite getting the smallest distribution rate increase in the 2024 settlement
- How the $225 million FirstEnergy Pennsylvania settlement works and why it matters
- What the $13.6 million lobbying refund was about and whether more customer credits are coming
- When the next Met-Ed rate case is likely to land
- What options Met-Ed customers have to reduce or stabilize electricity costs
Introduction
Met-Ed customers in Reading, York, Bethlehem, and the broader eastern Pennsylvania service territory are caught in an unusual position. On the distribution side, you pay less than your neighbors in Penelec, Penn Power, and West Penn Power territory. On the supply side, you pay more. Both are a direct consequence of how FirstEnergy runs its four Pennsylvania rate districts as a single consolidated entity while still pricing supply separately for each one.
The December 1, 2025 Price to Compare reset made this paradox sharper. Met-Ed’s residential supply rate jumped 8.9 percent, the largest increase of any FirstEnergy Pennsylvania utility on that reset. At the same time, Met-Ed customers saw the smallest distribution rate increase of the four districts when the November 2024 PUC settlement took effect on January 1, 2025. The math works out to a rate that climbs just as fast as less urban utilities, but for different reasons.
This guide breaks down what Met-Ed residential customers are actually paying in 2026, why the rates have moved the way they have, what the $225 million FirstEnergy settlement and the $13.6 million lobbying refund mean for you, and what homeowners can do about the trajectory.
What Met-Ed Customers Are Paying in 2026
As of April 2026, the average all-in Met-Ed residential rate, covering generation supply, distribution, transmission, and riders, is approximately 19 cents per kWh.
The supply side of that total is driven by Met-Ed’s Price to Compare, which resets every June 1 and December 1:
- June 1, 2025 PTC: 11.903 cents per kWh (up 8.1 percent from prior)
- December 1, 2025 PTC: 12.965 cents per kWh (up 8.9 percent)
That 8.9 percent December increase was the largest of any FirstEnergy Pennsylvania utility on that reset. For comparison: Penelec rose 6.75 percent, Penn Power rose 6.31 percent, and West Penn Power rose 6.1 percent.
On the distribution side, Met-Ed’s rate increase took effect on January 1, 2025 under the November 2024 PUC settlement. For a residential customer using 1,000 kWh per month, the Met-Ed distribution increase was 1.9 percent — the smallest of the four FirstEnergy PA districts. By contrast, Penelec customers saw 4.1 percent, Penn Power saw 4.5 percent, and West Penn Power saw 6.2 percent.
The next Met-Ed PTC reset is scheduled for June 1, 2026. The resulting rate will reflect the PJM capacity auction results that cleared in July 2025, along with updated wholesale generation and transmission costs.
Why Met-Ed Rates Have Moved the Way They Have
Five forces are behind the Met-Ed rate trajectory, and each one hits different parts of the bill.
1. The PJM Capacity Market Surge
The single largest driver of supply-side rate increases is the PJM Interconnection capacity market. PJM is the regional grid operator responsible for ensuring adequate generation across 13 states and Washington, D.C., and it runs an annual capacity auction that pays generators to keep plants available for peak demand periods.
Capacity prices have moved as follows:
- 2024/2025 delivery year: $28.92 per MW-day
- 2025/2026 delivery year: $269.92 per MW-day
- 2026/2027 delivery year: $329.17 per MW-day (FERC-approved price cap)
- 2027/2028 delivery year: $333.44 per MW-day (updated cap)
That is roughly an 1,100 percent increase over three years. According to PJM’s independent market monitor, data center load accounted for approximately 40 percent of the total $16.4 billion cleared in the December 2025 capacity auction.
These costs pass through to Met-Ed’s Price to Compare through the semi-annual reset mechanism. There is no buffering.
2. Met-Ed’s Density Position Within PJM
Met-Ed is the densest-population FirstEnergy utility in Pennsylvania, serving approximately 550,000 customers across 15 counties. Its service area concentrates around Reading and Berks County, parts of the Lehigh Valley including the city of Bethlehem, Northampton County, portions of Monroe County and the Poconos, York County, and southern portions of Dauphin and Cumberland counties.
Denser load means higher absolute supply exposure per square mile of territory. When PJM capacity costs rise, utilities with dense urban and suburban load carry a larger per-territory cost. That is one reason Met-Ed’s December 2025 PTC increase was proportionally larger than Penelec’s or West Penn Power’s, even though all four FirstEnergy PA utilities source from the same wholesale market.
The reverse applies on distribution. Met-Ed’s higher customer density produces lower per-customer distribution costs than rural utilities. That is why Met-Ed got the smallest distribution rate increase in the 2024 settlement.
3. The $225 Million FirstEnergy Pennsylvania Settlement
In April 2024, FirstEnergy Pennsylvania Electric Company (the consolidated entity that now operates Met-Ed, Penelec, Penn Power, and West Penn Power as rate districts) filed a base rate case seeking a $502 million annual distribution revenue increase across all four districts — a roughly 34 percent increase on top of existing revenue.
The Pennsylvania PUC suspended and investigated the filing. After seven months of proceedings, the PUC approved a joint settlement on November 21, 2024 that reduced the increase to $225 million annually, a 55 percent negotiated cut. The new distribution rates took effect January 1, 2025.
The final Met-Ed-specific outcomes:
- Residential bill impact: +1.9 percent for customers using 1,000 kWh per month (the smallest of the four districts)
- $225 million total FirstEnergy PA rate increase, allocated across Met-Ed, Penelec, Penn Power, and West Penn Power
- FirstEnergy barred from filing another base distribution rate case before Q2 2026 (the “stay out” provision)
- Customer assistance program expansions, including expanded hardship fund support and additional Low Income Usage Reduction Program funding
- Commitment to assess underground distribution conversion opportunities by the end of 2025
- New performance audits covering call center, billing, meter reading, and customer complaint response
The PUC order called FirstEnergy’s originally proposed rates “unjust, unreasonable, and therefore unlawful.” That is unusually strong language for a PUC order and signals the level of scrutiny this case received.
4. The $13.6 Million Lobbying Refund
Buried inside the November 2024 settlement was a provision that drew press coverage across the state: the PUC found that FirstEnergy had improperly allocated $13.6 million in lobbying expenses to customer bills, and ordered a one-time refund.
The refund was issued as a bill credit to all Met-Ed, Penelec, Penn Power, and West Penn Power residential and commercial customers within 30 days of the December 2024 settlement approval. That credit appeared on most customer bills in late December 2024 or January 2025.
This is a one-time event, not an ongoing mechanism. But it is worth noting because it indicates the PUC is actively scrutinizing utility cost allocations, and similar findings could occur in future rate cases.
5. Natural Gas and Generation Supply Costs
Natural gas is still the marginal fuel for electricity generation across PJM, accounting for 45 percent of the cleared resource mix in the most recent auction. Gas prices have reset to a higher “new normal” after post-2022 volatility, and that feeds directly into the generation supply component of Met-Ed’s Price to Compare every June and December.
Met-Ed does not profit from generation supply costs. FirstEnergy purchases power on behalf of default service customers and passes the cost through. But that pass-through is the mechanism by which PJM and natural gas market pressure hit customer bills.
Why Met-Ed Got the Smallest Distribution Increase and the Largest Supply Increase
This is the Met-Ed paradox, and understanding it helps explain why rate movements can look inconsistent across FirstEnergy’s four PA districts.
On the distribution side, rate cases allocate revenue across customer classes based on each utility’s cost to serve. Denser service territories have lower per-customer infrastructure costs: shorter runs of distribution line per customer, more customers per substation, more efficient use of field crews. Met-Ed serves Reading, Bethlehem, York, and surrounding suburban areas. That density is why the 2024 settlement gave Met-Ed the smallest distribution increase of the four districts.
On the supply side, there is no density advantage. All FirstEnergy PA customers source from the same PJM wholesale market. What varies is how the reset arithmetic works for each district, based on each one’s load profile, contracted generation portfolio, and the timing of their procurement auctions. Met-Ed’s higher total load meant its December 2025 reset absorbed a larger share of the PJM capacity cost surge. The result: 8.9 percent on supply, versus 6.1 to 6.75 percent for the three other districts.
For the homeowner, the net effect is that Met-Ed customers are not meaningfully better off than their Penelec or Penn Power neighbors. The distribution savings get eroded by supply exposure.
Breaking Down Your Met-Ed Bill
Your Met-Ed bill has two main components, and each one responds to different forces.
Distribution Charges
These are the fixed-rate charges for delivering electricity through Met-Ed’s local infrastructure. Distribution rates are set by the Pennsylvania PUC in periodic base rate cases.
The current Met-Ed distribution rates took effect January 1, 2025 under the $225 million FirstEnergy PA settlement. These rates will stay in place until at least the second quarter of 2026, when FirstEnergy is permitted to file a new base rate case. Any new distribution rate increase would likely not take effect before January 1, 2027.
Supply Charges (Price to Compare)
This is the portion of your bill that covers the actual electricity you consume. Met-Ed’s Price to Compare resets every June 1 and December 1, reflecting PJM wholesale generation costs plus transmission.
As of December 1, 2025, the Met-Ed residential PTC is 12.965 cents per kWh. The next reset is scheduled for June 1, 2026.
You can change this portion of the bill by switching to a competitive electricity supplier through PAPowerSwitch.com, or by generating your own power.
Riders and Other Charges
On top of distribution and supply, your Met-Ed bill includes:
- State Tax Adjustment Surcharge
- Distribution System Improvement Charge (DSIC)
- Act 129 Energy Efficiency Surcharge
- Universal Service Rider (funds low-income assistance)
- Storm Damage Rider
- Smart Meter Rider
These riders are typically small individually but collectively add to the total rate.
How Met-Ed Rates Compare Across Pennsylvania
Met-Ed sits near the lower end of the Pennsylvania utility rate spectrum as of early 2026:
| Utility | Service Territory | All-In Residential Rate |
| Duquesne Light | Southwestern PA (Pittsburgh) | ~23.1¢/kWh |
| Penelec | Northern/western PA | ~21.1¢/kWh |
| PECO | Southeastern PA (Philadelphia) | ~20.0¢/kWh |
| PPL Electric | Central/eastern PA | ~19.2¢/kWh |
| Met-Ed | Eastern PA (Reading, Lehigh edge) | ~19.0¢/kWh |
The ranking is current but not stable. The July 2026 PJM capacity auction will reprice supply costs across the region, and the next FirstEnergy PA base rate case (earliest Q2 2026 filing, earliest January 2027 effective date) will reshape distribution rates across all four districts, Met-Ed included.
→ PECO Electricity Rates in 2026
→ PPL Electricity Rates in 2026
→ Electricity Rates by Utility in PA, NJ, and DE
What Options Do Met-Ed Customers Have?
Pennsylvania’s deregulated market means Met-Ed customers are not locked into the default supply rate. There are four meaningful paths to reducing or stabilizing your electricity costs.
Shop for a Competitive Supplier
Through PAPowerSwitch.com, residential customers can compare fixed-rate and variable-rate plans from licensed electric generation suppliers. Fixed-term contracts protect against future PTC increases for 12 to 36 months. This is most useful if you believe rates will continue rising and you want to lock in a ceiling.
The tradeoff: competitive supplier plans typically carry early termination fees, and a fixed-term rate that looks attractive today could underperform a future PTC if wholesale prices drop. Given current PJM trajectory, that downside scenario looks unlikely, but it is not impossible.
Reduce Consumption
Energy efficiency measures — LED lighting, smart thermostats, insulation upgrades, high-efficiency HVAC — reduce the number of kWh you consume. Met-Ed’s Act 129 program offers rebates for heat pumps, heat pump water heaters, and other high-efficiency equipment. These reduce volume, not price per unit.
Apply for Customer Assistance Programs
If you qualify based on household income, FirstEnergy’s Customer Assistance Program (CAP), LIHEAP, and the WARM energy efficiency program can reduce your monthly costs. The 2024 settlement expanded hardship fund support and streamlined enrollment using LIHEAP data. These programs do not change the rate; they change what you pay.
Generate Your Own Electricity with Solar
Solar panels let you produce your own electricity at a cost determined the day your system is installed. Unlike shopping for a supplier or reducing consumption, solar fundamentally restructures your relationship with the utility.
For a typical residential solar installation in Met-Ed territory, the levelized cost of solar over a 25-year system life runs well below current Met-Ed all-in rates, and that cost does not rise with PJM auction results, distribution rate cases, natural gas markets, or FirstEnergy settlement outcomes.
Pennsylvania’s solar policy environment supports this through two key mechanisms:
- Net metering at retail rate: Excess energy sent to the grid is credited at the full retail electricity rate, not a lower wholesale rate
- Solar Renewable Energy Credits (SRECs): Pennsylvania homeowners earn one SREC per megawatt-hour of solar production, currently selling for roughly $25 to $40 per credit on the open market
Every cent added to the Met-Ed PTC pushes the solar payback period shorter, and the PTC has been moving in only one direction.
Are Met-Ed Rates Going to Keep Rising?
The structural factors driving Met-Ed rate increases are not short-term disruptions.
- PJM’s demand forecast for the 2027/2028 delivery year increased 5,250 MW year-over-year, with nearly 5,100 MW attributable to data centers across the 13-state PJM region
- The July 2026 PJM capacity auction will not include the Shapiro-negotiated price cap, which is likely to push uncapped capacity prices higher (though some observers expect the cap to be reinstated before the auction runs)
- Met-Ed’s Long-Term Infrastructure Improvement Plan calls for ongoing capital investment in the Reading and broader eastern PA distribution grid through at least 2029
- FirstEnergy’s “stay out” provision expires in Q2 2026, opening the door to a new base rate case filing. Historical pattern suggests FirstEnergy will file near the earliest allowable date
- Any new base rate case would follow the standard seven-month PUC investigation timeline, putting new distribution rates effective no earlier than January 1, 2027
The PTC will continue to fluctuate semi-annually. Distribution will be stable through at least December 2026, then likely move again in 2027. For Met-Ed customers, planning around continued rate increases is more realistic than hoping for reversal.
How Sunwise Can Help
Sunwise Energy works with homeowners across the Met-Ed service territory — from Reading and Berks County to the Bethlehem and Lehigh Valley edges, York County, Monroe County, and every borough in between — to design solar systems sized to real consumption. Our team understands Met-Ed’s rate structure, Pennsylvania’s net metering rules, the SREC market, and the implications of the 2024 FirstEnergy settlement, and we build that context into every proposal.
If rising Met-Ed rates have you evaluating alternatives, a consultation with our team gives you a clear picture of what solar would cost, what it would save, and how the numbers work for your specific home.
Met-Ed Rate FAQs
How much have Met-Ed electricity rates increased recently?
Met-Ed’s all-in residential rate sits at approximately 19 cents per kWh as of early 2026. The December 1, 2025 Price to Compare reset raised the supply portion 8.9 percent, from 11.90 cents to 12.96 cents per kWh. That was the largest December 2025 PTC increase of any FirstEnergy Pennsylvania utility. Distribution rates rose separately on January 1, 2025 under the PUC-approved FirstEnergy settlement.
What is the Met-Ed Price to Compare?
The Price to Compare (PTC) is Met-Ed’s default generation supply rate for customers who have not chosen a competitive supplier. The Met-Ed PTC resets on June 1 and December 1 each year. As of December 1, 2025, the Met-Ed residential PTC is 12.965 cents per kWh. Distribution charges, transmission charges, and riders are billed separately on top of the PTC.
What was the $225 million FirstEnergy settlement?
In November 2024, the Pennsylvania PUC approved a $225 million annual distribution rate increase for FirstEnergy Pennsylvania Electric Company, which covers Met-Ed, Penelec, Penn Power, and West Penn Power. FirstEnergy had originally requested $502 million, so the settlement represented a 55 percent negotiated reduction. Met-Ed customers using 1,000 kWh per month saw a 1.9 percent distribution increase starting January 1, 2025, the smallest of the four districts.
What was the $13.6 million lobbying refund?
As part of the 2024 settlement, the PUC found that FirstEnergy had improperly allocated $13.6 million in lobbying expenses to customer bills. FirstEnergy was required to refund this amount to Met-Ed, Penelec, Penn Power, and West Penn Power residential and commercial customers through a one-time bill credit issued within 30 days of the settlement’s December 2024 approval.
Can I switch electricity suppliers in Met-Ed territory?
Yes. Pennsylvania’s Energy Choice program lets residential Met-Ed customers shop competitive electric generation suppliers through PAPowerSwitch.com. Met-Ed distribution and delivery charges remain the same regardless of your supplier choice. Fixed-term contracts can hedge against future PTC increases, though they typically carry early termination fees.
When will FirstEnergy file the next Met-Ed rate case?
As part of the 2024 settlement, FirstEnergy agreed to a “stay out” provision preventing any new base distribution rate case filing before the second quarter of 2026. Even if FirstEnergy files as soon as allowed, new distribution rates would not take effect before January 1, 2027 at the earliest, based on the standard seven-month PUC investigation timeline. The Price to Compare will continue to reset on its normal June and December schedule during this period.
The information in this guide is for informational and educational purposes only and does not constitute legal, financial, or tax advice. Utility rates, regulatory decisions, and market conditions change frequently. Consult qualified professionals regarding your specific circumstances.
