How Much Are Utilities in Philadelphia?

Utility costs represent a significant component of household expenses. This article details common household utility expenses for Philadelphia residents, including typical costs for electricity, natural gas, water, sewer, internet, and cable services.

Electricity Expenses

Electricity services in Philadelphia are primarily provided by PECO (Philadelphia Electric Company), which measures and bills usage in kilowatt-hours (kWh). The charges on a bill include both supply and delivery components, with the supply portion allowing for potential competitive supplier choice.

The average monthly electricity usage in Philadelphia is approximately 866 kWh, with an average cost around 17.58 cents per kWh as of January 2025. This translates to an average monthly electric bill of about $152.24 for a typical residential customer. However, different sources provide varying averages, with some indicating costs around $176 per month based on approximately 854 kWh, or higher figures for increased usage. For instance, a three-person household using about 1,195 kWh might see a monthly bill closer to $226.

Recent rate adjustments approved by the Pennsylvania Public Utility Commission (PUC) indicate that for an average household using 700 kWh per month, the bill increased to approximately $149.43 effective January 1, 2025. The electric bill includes charges for generation (producing electricity) and delivery (transporting power). Additional fees contributing to the overall bill include:
Customer charge
Transmission charge
Energy efficiency charge
Alternative energy portfolio standard charge

Natural Gas Expenses

Natural gas services in Philadelphia are primarily managed by Philadelphia Gas Works (PGW), which bills consumption in units such as thousand cubic feet (Mcf), hundred cubic feet (Ccf), or Therms. The overall cost on a natural gas bill includes both a supply charge (the cost of the gas itself) and a delivery charge (covering transportation expenses).

The typical monthly bill for a residential customer using 64 Mcf of natural gas per year was approximately $95.93 as of September 1, 2024, reflecting a slight increase from prior rates. While some proposals indicated larger increases, a settlement for fiscal year 2026 reduced a proposed rate hike, aiming to keep the average residential bill around $104.61.

Bill components include a customer charge (a fixed monthly fee covering meter maintenance and billing) and a distribution charge for gas delivery. Other adjustments that can impact the final amount include:
Gas cost adjustment
Weather normalization adjustment

Water and Sewer Expenses

The Philadelphia Water Department (PWD) is responsible for providing both water and sewer services, with charges typically combined into a single bill. Water usage is measured in cubic feet (cf) or hundred cubic feet (ccf), and sewer charges are generally tied directly to the amount of water consumed. A typical residential bill, based on a customer using 450 cubic feet of water per month, increased to approximately $84.03 as of September 1, 2024.

Common fees on the bill include:
Service charge (a fixed monthly fee determined by the size of the water meter and service line)
Stormwater charge (a consistent fee for all residential customers, contributing to stormwater runoff management)
Tiered Assistance Program (TAP) surcharge (supports affordability programs for low-income residents)

Internet and Cable Expenses

Internet and cable television services in Philadelphia are offered by various providers, with major players including Xfinity (Comcast) and Verizon Fios, along with others like Astound Broadband, RCN, and EarthLink. These services are typically billed monthly, and costs can differ substantially based on the chosen internet speed, provider, and whether services are bundled.

For internet service alone, residents can expect monthly costs to start around $50, with some providers offering introductory rates as low as $29.99. Higher internet speeds, such as 2 Gig plans, can range from $110 to $140 per month, depending on the provider. Bundling internet with cable television often leads to promotional offers, but cable TV service itself can add up to $100 or more to a monthly bill. Promotional offers and contract terms influence costs, making comparison shopping beneficial.

Factors Influencing Utility Bills

Several elements influence utility bills for Philadelphia residents. Understanding these factors helps in managing household expenses.

Seasonal Changes

Seasonal changes significantly affect energy consumption. Heating needs during colder months increase natural gas usage, while warmer periods lead to higher electricity consumption for air conditioning.

Household Size and Usage Habits

Household size and usage habits play a substantial role in determining utility costs. More occupants typically result in increased use of electricity for lighting and appliances, higher water consumption for bathing and laundry, and greater natural gas demand for cooking and heating water. Individual behaviors, such as the frequency of appliance use, length of showers, or thermostat settings, directly influence the amount of energy and water consumed.

Home Characteristics

The characteristics of a home, including its size, age, and construction, greatly impact energy efficiency. Larger homes require more energy to heat, cool, and light. Older homes often have less effective insulation, outdated windows, and less efficient heating, ventilation, and air conditioning (HVAC) systems and appliances, leading to higher energy leakage and increased bills. Conversely, newer homes or those with energy-efficient upgrades, such as modern HVAC systems or improved insulation, generally incur lower energy costs.

Provider Choice and Fixed Charges

Provider choice and specific plans offer opportunities for managing utility expenses. In Philadelphia, consumers can often choose their electricity and natural gas suppliers for the generation or supply portion of their bill, potentially securing lower rates than the utility’s default price. This allows for flexibility in selecting fixed-rate or variable rate contracts. Utility bills also include various fixed charges and fees, such as customer charges, distribution system improvement charges, and stormwater fees, which contribute to the overall cost regardless of consumption. These charges support infrastructure maintenance and operational costs.