Reading households pay 12.965 cents per kilowatt-hour for default electricity supply. Lancaster households pay 12.953 cents. That is a difference of one-hundredth of a cent — essentially identical.
On June 1, the picture changes. Reading's Met-Ed rate jumps 7.6% to 13.951 cents. Lancaster's PPL rate rises just 1.5% to 13.147 cents. Two south-central Pennsylvania cities, 45 miles apart, suddenly paying meaningfully different rates.
The divergence is not random. It reflects how Met-Ed and PPL — both serving neighboring territories, both drawing from the same PJM grid — made different procurement decisions at different times.
The rate gap by the numbers
Both cities operate under Pennsylvania's deregulated electricity market. Customers who never choose a supplier pay their utility's default rate, called the Price to Compare (PTC). Here is how that benchmark stacks up:
| Metric | Reading (Met-Ed) | Lancaster (PPL Electric) |
|---|---|---|
| Current PTC (through May 31) | 12.965¢/kWh | 12.953¢/kWh |
| June 2026 PTC | 13.951¢/kWh | 13.147¢/kWh |
| Increase | +7.6% | +1.5% |
| Difference after June 1 | — | 0.80¢/kWh lower |
At average Pennsylvania household usage of 850 kWh per month, the supply portion of your bill after June 1 looks like this:
- Reading (Met-Ed): $118.58 per month
- Lancaster (PPL Electric): $111.75 per month
- Difference: $6.83 per month, or roughly $82 per year
The current rate parity disappears after June 1. Lancaster customers will pay measurably less than Reading customers for the same electricity consumption.
For the latest Met-Ed rate details, see our Met-Ed Price to Compare update. For PPL Electric, see our PPL Price to Compare update.
Why Met-Ed and PPL rates diverge
Both utilities purchase capacity and energy through PJM Interconnection, the regional grid operator that serves 65 million people across 13 states. Both are subject to the same wholesale market dynamics, including the capacity auction price increases that have driven rates higher across Pennsylvania since 2024.
Yet their rate trajectories differ. Several factors explain why:
Corporate structure. Met-Ed is a FirstEnergy subsidiary, part of the same holding company that operates Penelec, Penn Power, and West Penn Power in Pennsylvania. PPL Electric is part of PPL Corporation, a separate holding company. Different parent companies create different procurement strategies and cost allocation approaches.
Procurement timing. When a utility locked in wholesale power contracts matters enormously. Met-Ed's 7.6% June increase suggests that prior contracts at favorable rates are expiring and being replaced with current market prices. PPL's 1.5% increase suggests their procurement timing provided more insulation from recent wholesale price spikes.
Rate case history. Pennsylvania utilities file rate cases with the Public Utility Commission at different intervals. Met-Ed and PPL have filed cases at different times with different approved cost structures. These regulatory differences persist between rate case cycles.
Service territory characteristics. Met-Ed serves a mix of urban Reading, suburban communities, and rural areas stretching into eastern Pennsylvania. PPL's territory is larger, spanning the Lehigh Valley, Harrisburg area, and large rural regions. Different load characteristics and customer mixes affect how costs are allocated.
For more on how Pennsylvania's deregulated market structures these costs, see our guide to Pennsylvania electricity deregulation.
How usage patterns differ between the cities
Rate is only half the equation. Your bill equals rate times usage. Reading and Lancaster households may use electricity somewhat differently.
Climate. Reading and Lancaster share similar climate as south-central Pennsylvania cities. Both experience warm, humid summers and cold winters. Climate-driven usage differences between the two cities are minimal.
Industrial heritage. Reading's economy was historically anchored in manufacturing and railroads. Lancaster's economy combines agriculture, tourism (Pennsylvania Dutch Country), and growing healthcare and education sectors. These economic differences affect commercial electricity demand more than residential, but overall load patterns in each utility territory reflect these histories.
Housing stock. Reading's housing stock includes dense urban neighborhoods, older row homes, and suburban development. Lancaster city is smaller and surrounded by agricultural land and smaller suburban communities. Both cities have a mix of housing ages and types.
Population. Reading has a population of approximately 95,000, making it the larger of the two cities. Lancaster city proper is smaller at approximately 58,000, though the surrounding Lancaster County is populous. City population affects aggregate utility load but not individual household rates.
The practical implication: usage patterns are broadly similar between these two south-central Pennsylvania cities. The rate divergence after June 1 will be the primary driver of bill differences.
Supplier competition by city
Pennsylvania's deregulated market means you can choose your electricity supplier regardless of which utility serves you. Both Reading and Lancaster have active competitive markets:
| Metric | Reading (Met-Ed) | Lancaster (PPL Electric) |
|---|---|---|
| Active supplier plans | ~100 | 120 |
| Number of suppliers | ~50 | 58 |
| Cheapest available rate | 11.49¢/kWh | 10.45¢/kWh |
Lancaster's PPL territory has slightly more competition, with more suppliers and more plans available. The cheapest rate in PPL territory (10.45¢) undercuts Met-Ed territory's cheapest (11.49¢) by about 1 cent per kWh.
This competitive rate gap mirrors the utility rate gap — Lancaster customers have access to lower rates both from the default utility and from competitive suppliers.
You can browse current plans for Met-Ed territory and PPL Electric territory on our utility pages.
Which city's customers benefit more from switching
Here is the math that matters: how much can you save by switching from the default rate to the cheapest available plan?
Reading (Met-Ed) — using June 2026 PTC:
- Default rate: 13.951¢/kWh
- Cheapest available: 11.49¢/kWh
- Savings: 2.46¢/kWh
- At 850 kWh/month: $20.91 per month, $251 per year
Lancaster (PPL Electric) — using June 2026 PTC:
- Default rate: 13.147¢/kWh
- Cheapest available: 10.45¢/kWh
- Savings: 2.70¢/kWh
- At 850 kWh/month: $22.95 per month, $275 per year
Both cities offer substantial savings from switching, with Lancaster customers saving slightly more in absolute terms. The gap between PPL's PTC and competitive rates is wider than Met-Ed's gap.
The takeaway: Reading customers pay more by default after June 1, but both cities' residents can save $250+ annually by switching to competitive suppliers.
In both cities, switching is free, takes about five minutes, and does not interrupt service. For step-by-step instructions, see our guide to switching suppliers in Pennsylvania.
What is the same across both cities
Despite the rate divergence, Reading and Lancaster electricity customers share fundamental structures:
Same wholesale market. Both utilities purchase power through PJM. The same capacity auction results, the same coal plant retirements, and the same data center demand growth affect both territories. The different rate trajectories reflect procurement timing, not different underlying market conditions.
Same legal right to switch. Pennsylvania law gives every residential customer the right to choose their electricity supplier. Your utility cannot prevent you from switching, and the process is the same regardless of whether you have Met-Ed or PPL.
Same utility role. Your utility handles delivery regardless of your supplier choice. Met-Ed still delivers power, maintains the grid, and responds to outages for Reading customers. PPL does the same for Lancaster customers. Switching suppliers only changes who supplies your electricity, not who delivers it.
Same bill structure. Both utilities send a single bill that includes supply charges (from your supplier or the default rate) and delivery charges (from the utility). The mechanics work the same way.
FAQ
Why is electricity more expensive in Reading than Lancaster after June 1?
Reading is served by Met-Ed, which faces a 7.6% rate increase on June 1 due to procurement timing — prior contracts at favorable rates are expiring. Lancaster is served by PPL, whose procurement provided more insulation from recent wholesale price increases, resulting in only a 1.5% increase.
Can I get the same supplier plan in both cities?
Many suppliers operate in both Met-Ed and PPL territories, but rates vary by utility zone. A supplier might offer 11¢/kWh in Lancaster and 11.5¢/kWh in Reading for the same plan name. Always check rates for your specific ZIP code.
Do I need to do anything differently when switching in Reading vs. Lancaster?
No. The process is identical. Enter your ZIP code on PA Power Switch or a comparison site, compare rates against your utility's Price to Compare, and enroll online with your utility account number. The switch takes one to two billing cycles to complete in both territories.
Will the rate gap persist, or will it close in future quarters?
Rate gaps between utilities fluctuate based on procurement cycles. Met-Ed's larger June increase could reflect a one-time contract expiration, or it could indicate a structural shift. Future quarters may narrow or widen the gap depending on each utility's next procurement decisions.