PECO's Latest Rate Hike: what they're not telling you

Your Lights Just Got Pricier So Amazon Can Get Its Data Fix

Alright, folks, settle in. We’ve got another masterclass in corporate doublespeak and regulatory hand-waving coming at us, fresh off the presses. While you’re probably still reeling from that gut-punch of an electricity bill you just got, guess who’s getting the red-carpet treatment? That’s right, the behemoth that is Amazon, and their insatiable hunger for data centers. It’s a tale as old as time: big tech wants more, and the little guy pays for it. Always.

Here’s the deal: The Federal Energy Regulatory Commission, FERC for short – those folks who are supposed to be watching out for us – just rubber-stamped a sweet little transmission agreement between PECO and Amazon Data Services. What’s that mean? It means Amazon’s new data center in Falls Township, Pennsylvania, is getting its power hookup, and PECO’s grid is getting upgraded to handle it. On the surface, they say Amazon’s gonna pay its "expected contribution." Sounds fair, right? Give me a break.

But here’s where the real magic trick happens. PJM Interconnection’s own market monitor, Monitoring Analytics, actually asked FERC to assess how Amazon’s monster data center could jack up capacity and energy costs for ratepayers – you know, us – and mess with grid reliability. And what did FERC say? They basically shrugged, mumbled something about it being "outside the scope" of the proceeding, and sent everyone home. "Outside the scope"? Are you kidding me? If ensuring the grid can handle massive new loads and not bankrupt regular folks isn't in their scope, then what the hell is? This isn't just a regulatory oversight; it’s a full-blown dereliction of duty, if you ask me. It’s like watching a chef bake a cake and then saying checking if the oven’s on fire is "outside the scope" of baking.

The Mobile-Sierra Shuffle and the Commissioner Who Actually Gets It

FERC, in its infinite wisdom, invoked something called the "Mobile-Sierra presumption." Sounds fancy, don't it? What it boils down to is this: if two "independent parties" (like PECO and Amazon) freely negotiate a contract, FERC has to assume it’s "just and reasonable" unless it "seriously harms the public." Seriously harms? So, a little harm is cool? A modest screw-you to the average Joe is perfectly acceptable, as long as it's not a serious screw-you? This isn't a presumption; it's a loophole big enough to drive a server farm through. They talk about "customer protections" in the agreement, but let's be real... are we ever the customers they're truly protecting?

And then, the kicker: FERC explicitly stated this approval wouldn’t set a precedent. Oh, sure, because massive data centers popping up everywhere like digital dandelions ain't a trend, right? That’s just a one-off thing. Yeah, and I’m Santa Claus. My gut tells me this is the exact kind of precedent that's gonna bite us all in the backside. Are we just supposed to nod along when they say this 'won't set a precedent' when we can see the writing on the wall, plain as day?

Thankfully, at least one person in that room wasn't drinking the corporate Kool-Aid. Commissioner Judy Chang, in a concurring statement, basically said what we’re all thinking. She warned this whole thing raises "significant questions" about how FERC and state commissions are going to protect customers in future cases. She gets it. She called out the potential for "jurisdictional 'silos' or 'loopholes'" that stop states from protecting retail customers while FERC just waves things through under Mobile-Sierra without "meaningful scrutiny." She even pointed out that private entities' agreements shouldn't automatically be presumed to be in our best interests. Ding, ding, ding! She also highlighted that FERC doesn't even have a framework for assessing these "protections," and there are sixty other large load tariffs out there. Sixty! It's an energy land grab, plain and simple.

The Price of Progress? Your Wallet

Now, let’s connect the dots to something you’re probably feeling right in your bank account. Just days after this FERC decision, the Pennsylvania Public Utility Commission announced that PECO and PPL electricity supply rates are set to spike on December 1st. PECO customers are looking at a 6% jump, PPL customers a 3.7% hike. Suddenly, your kilowatt-hour just got pricier. PECO, PPL electricity supply rates are set to increase on December 1

PECO, in their usual PR-polished prose, blames "multiple factors," like the PJM capacity auction, rising demand, and – wait for it – "decreased supply due to power plant retirements." Funny how the need for "baseload electric generation capacity" suddenly becomes a rallying cry after they've approved a deal for one of the biggest energy hogs on the planet. They want to be part of an "all of the above" solution, but it feels more like an "all of the above for big corporations, and all of the above the price for you" solution. This isn't just about a few bucks on your bill. No, it's about a fundamental breakdown in how our essential services are managed, or mismanaged, I should say. It’s like they're building a superhighway for the rich while the rest of us are stuck on a dirt road, paying exorbitant tolls.

They tell you to go "shop for electricity" or call about "assistance programs." That's the oldest trick in the book, isn't it? Divert attention, make it your responsibility to navigate a rigged system, instead of fixing the system itself. They give Amazon a fast pass for its massive data centers, while you're left scrambling to find a coupon code for your utility bill. It’s a total shell game. And honestly, it makes me wonder if anyone at FERC or the PUC ever actually opens their own electric bill.

It's a Rigged Game, Folks

So, here we are. Amazon gets its power, the grid gets "upgraded" on terms that conveniently ignore the impact on regular folks, and your electric bill goes up. Commissioner Chang saw the writing on the wall, but will anyone listen? FERC is just now "beginning to review" a DOE proposal for new rules, which sounds like putting a band-aid on a gushing wound. Until then, it’s the Wild West, and the biggest guns get to call the shots. You and I? We just get to pay the tab. Ain't that America.