Utility comparison
Penelec vs Penn Power electricity rates
Both Penelec and Penn Power are FirstEnergy subsidiaries serving different parts of Pennsylvania — same parent company, different rates.
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Written by John Spencer
Updated June 2026
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What you're actually comparing
Penelec and Penn Power are sister utilities under FirstEnergy, but you can't choose between them. Your address determines which utility serves you. What you CAN compare is how each utility's customers shop for electricity — and why these sibling utilities have different default rates.
- Penelec customers in north-central and western PA (Erie, Altoona, Johnstown, State College, and surrounding areas — ~595,000 customers)
- Penn Power customers in western PA (New Castle area, Lawrence County — ~160,000 customers)
The 0.34¢/kWh gap exists because each utility files separate rate cases with the PA PUC, runs separate default service auctions, and serves territories with different load profiles. Same parent company, separate regulatory treatment.
Penelec
Owner
FirstEnergy Corporation
Customers
~595,000
Service area
North-central/western PA (Erie, Altoona, Johnstown, State College)
PTC updates
Quarterly
Penn Power
Owner
FirstEnergy Corporation
Customers
~160,000
Service area
Western PA (New Castle area, Lawrence County)
PTC updates
Quarterly
How the rate gap matters in practice
At 850 kWh/month (average PA usage)
Penelec supply cost
$111.71/mo
Penn Power supply cost
$114.55/mo
Difference
$2.84/mo
$34/year
At 1,200 kWh/month (high usage)
Penelec supply cost
$157.70/mo
Penn Power supply cost
$161.72/mo
Difference
$4.02/mo
$48/year
The gap is modest compared to some PA utility pairs. But what matters more is whether you're paying the default rate or shopping for a competitive supplier. Both utilities' customers can save by switching.
Best electricity plans in each territory
Compare the top-rated plans available to Penelec and Penn Power customers, sorted by rate.
Best Penelec plans (May 2026)
American Power & Gas of Pennsylvania LLC
Our famous 25% rebate is available to all of our customers. We have sent out over $2,400,000 in rebates this year! Are you getting one? Interested in upgrading to 100% green energy for an additional 3 cents? Call us to learn more!
Available in Penelec territory
American Power & Gas of Pennsylvania LLC
This offer is exclusively for new customers only*. Switch to our electric plan today and enjoy the freedom of a 3-month fixed rate that gives you short-term flexibility! This plan has no cancellation …
Available in Penelec territory
Public Power, LLC
With a fixed rate from Public Power, you'll get the peace of mind knowing your rate stays the same for 10 months. Special offer for new, online customers.
Available in Penelec territory
Public Power, LLC
With a fixed rate from Public Power, you'll get the peace of mind knowing your rate stays the same for 12 months. Special offer for new, online customers.
Available in Penelec territory
Pennsylvania Gas & Electric
Get peace of mind with a fixed rate for 10 months - plus, $50 in Reward Dollars every month once your account's active. Special offer for new, online customers.
Available in Penelec territory
Penelec customers can save by switching from the 13.142¢ default rate. The best fixed-rate plan is 10.59¢/kWh — 19% below default.
Best Penn Power plans (May 2026)
American Power & Gas of Pennsylvania LLC
Our famous 25% rebate is available to all of our customers. We have sent out over $2,400,000 in rebates this year! Are you getting one? Interested in upgrading to 100% green energy for an additional 3 cents? Call us to learn more!
Available in Penn Power territory
American Power & Gas of Pennsylvania LLC
This offer is exclusively for new customers only*. Switch to our electric plan today and enjoy the freedom of a 3-month fixed rate that gives you short-term flexibility! This plan has no cancellation …
Available in Penn Power territory
Town Square Energy
4 monthly bill cycles fixed at 11.57 cents/kWh. See full terms in terms of service.
Available in Penn Power territory
Major Energy
With this energy plan, you may be able to lock in a fixed rate as low as $0.1159 for 12 months if you qualify. Provide a few bits of information and we will analyze your energy usage to let you know i…
Available in Penn Power territory
Public Power, LLC
With a fixed rate from Public Power, you'll get the peace of mind knowing your rate stays the same for 10 months. Special offer for new, online customers.
Available in Penn Power territory
Penn Power customers can save by switching from the 13.477¢ default rate. The best fixed-rate plan is 11.29¢/kWh — 16% below default.
Why FirstEnergy utilities have different rates
FirstEnergy operates four utilities in Pennsylvania: Penelec, Penn Power, Met-Ed, and West Penn Power. Despite sharing a parent company, each utility operates as a separate regulated entity under PA PUC oversight.
Three factors explain the rate differences:
- Separate rate cases: Each utility files its own rate case with the PA PUC, negotiating different cost recovery schedules and rate structures.
- Separate procurement strategies: Default service electricity is purchased through utility-specific auctions. Timing, contract lengths, and hedging approaches vary.
- Different load profiles: Penelec's territory includes industrial loads in Erie and State College. Penn Power's smaller Lawrence County territory has different demand characteristics.
The PA PUC requires this separation to prevent cross-subsidization between service territories. Customers in one territory shouldn't pay for costs incurred in another.
Which utility's customers benefit more from switching
Penn Power customers face the slightly higher default rate at 13.477¢/kWh versus Penelec's 13.142¢ — a narrow 0.34¢ gap. Penelec customers start from a marginally lower baseline, but both can find meaningful savings in the competitive market.
Penelec's larger customer base (595K vs 160K) typically attracts more supplier competition, which can mean more plan variety and competitive pricing. Penn Power's smaller market still has active suppliers, but fewer overall options.
| Utility | Default | Best fixed rate | Annual savings (850 kWh) |
|---|---|---|---|
| Penelec | 13.142¢ | 10.59¢ | $260 |
| Penn Power | 13.477¢ | 11.29¢ | $223 |
What's the same across both utilities
- Same parent company (FirstEnergy Corporation)
- Same wholesale market (PJM Interconnection)
- Same quarterly PTC update schedule (March, June, September, December)
- Same legal right to switch suppliers
- Same utility/supplier separation (utility handles delivery, supplier handles generation)
- Same bill structure (delivery + supply + fees)
For more on how capacity costs affect rates, see our PJM capacity auction analysis.
Find plans for your address
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Frequently asked questions
Can I choose between Penelec and Penn Power?
No. Your address determines your utility. Penelec serves north-central and western PA including Erie, Altoona, Johnstown, and State College. Penn Power serves the New Castle area and Lawrence County. You can choose your electricity supplier within your assigned utility's territory, but not the utility itself.
Why do Penelec and Penn Power have different rates if they're both FirstEnergy?
Each FirstEnergy subsidiary files separate rate cases with the Pennsylvania PUC and runs separate default service procurement auctions. Their service territories have different load profiles, customer mixes, and procurement timing. The PA PUC treats each utility as a distinct regulated entity, even though they share a parent company.
Do Penelec and Penn Power share infrastructure?
Both utilities are members of PJM Interconnection, which manages the regional power grid. They share the same parent company (FirstEnergy) and similar back-office systems. But they operate separate distribution networks serving different geographic areas. Penelec's territory is much larger (595K vs 160K customers).
Which utility has more supplier options?
Penelec's larger customer base (595,000 vs 160,000) typically attracts more supplier competition. More customers means a larger addressable market for competitive suppliers. Both territories have active shopping markets, but Penelec customers generally see more plan variety.
If I move between Penelec and Penn Power territories, what happens?
You'll need to set up new service with the utility serving your new address. If your current supplier serves both territories (many do since both are FirstEnergy), you may be able to request a transfer. Otherwise, you'll choose a new supplier when you move.
Related resources
How we gather this information
We pull supplier plan data directly from PA Power Switch, the official Pennsylvania PUC shopping website. Our automated system refreshes this data weekly.
Utility default rates (Price to Compare) come from official utility filings with the PA PUC. Plans are sorted by rate with no paid placements.
Ready to compare rates?
Whether you're in Penelec or Penn Power territory, switching to a competitive supplier can save you money.
2,540 plans across PA · Updated June 2026