Regulation

Exelon's PECO Faces Union Safety Probe Amid Leadership Shakeup

IBEW Local 614 filed a petition with Pennsylvania regulators seeking an investigation into PECO's maintenance practices, citing damaged poles and equipment, as new interim CEO Mike Innocenzo takes the helm.

James Calloway · · · 3 min read · 1 views
Exelon's PECO Faces Union Safety Probe Amid Leadership Shakeup
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EXC $45.99 -2.19%

Philadelphia, May 1, 2026 – A union representing roughly 1,400 workers at PECO, the Philadelphia-based utility subsidiary of Exelon Corporation (EXC), has escalated its safety concerns by petitioning state regulators to probe the company’s repair and maintenance practices. The move comes just days after Exelon replaced PECO CEO David Vahos with interim chief Mike Innocenzo, adding to a series of challenges facing the utility.

On Thursday, IBEW Local 614 submitted a formal petition to the Pennsylvania Public Utility Commission (PUC), urging the agency to investigate what the union describes as widespread issues with damaged utility poles, faulty wires, deteriorated cross arms, and loose transformers. The petition includes nearly 100 photographs documenting these conditions across multiple Philadelphia neighborhoods, according to reports from WHYY.

The timing of the filing is notable, as PECO is already navigating a complex landscape: it recently withdrew a proposed rate hike following backlash from Governor Josh Shapiro and lawmakers, is in the midst of stalled labor negotiations with employees who have been without a contract since March 31, and has just undergone a leadership change. David Vahos, who had been CEO for less than a year, was moved to an advisory role at Exelon, while Mike Innocenzo—who previously led PECO from 2018 to 2024—returned as interim president and CEO, while retaining his duties as Exelon’s COO.

Union leaders, including Local 614 President and Business Manager Larry Anastasi, held a press conference in Grays Ferry to highlight the alleged hazards. “Splintered and rotting cross arms, unstable poles, and damaged wires are part of the daily reality for our workers and the community,” Anastasi said. According to the union’s own surveys, 28 out of 100 poles inspected in Marcus Hook and 50 out of 300 poles in North and West Philadelphia were flagged as potentially hazardous.

PECO has pushed back forcefully against the union’s allegations, calling them “baseless” and “utterly false” in statements to local media. COO Nicole LeVine told WHYY that the company “strongly disagrees” with accusations that it neglects repairs in low-income areas, pointing to significant infrastructure investments over the past five years. PECO notes that it replaced 67,000 poles and 97,000 cross arms during that period, and that 2025 was one of its best years for reliability. The company says it will respond to the petition through regulatory and legal channels, including with the PUC.

The dispute extends beyond safety concerns. Both PECO and Local 614 have filed unfair labor practice complaints with the National Labor Relations Board (NLRB), with the union accusing PECO of not bargaining in good faith, and PECO alleging that the union has taken a “take-it-or-leave-it” stance in contract negotiations. The labor contract expired on March 31, adding urgency to the talks.

PECO is in the midst of a major grid modernization effort. In December, the company received regulatory approval for its third electric long-term infrastructure plan, a five-year, $1.97 billion initiative aimed at bolstering reliability. Over the next five years, PECO plans to invest nearly $10 billion across its system, covering corrective maintenance, inspections, and vegetation management. However, affordability remains a key challenge. The company withdrew a proposed rate hike in March that would have raised typical residential electric bills by 12.5% and gas bills by 11.4% starting in 2027, after political pushback.

PECO serves approximately 1.7 million electric customers and 553,000 natural gas customers in southeastern Pennsylvania, making it the largest utility in the state for both services. It operates alongside other Exelon subsidiaries such as ComEd, BGE, and Pepco, where regulators continually balance reliability, capital investment, and customer rates. The outcome of the PUC’s review could set a precedent for how such disputes are handled across the Exelon family.

For Mike Innocenzo, who has publicly pledged a commitment to “operational excellence” and affordability, the situation presents a threefold challenge: a safety complaint from the union, a labor standoff, and a withdrawn rate case. While each issue is manageable on its own, their convergence creates a complex environment as PECO seeks to maintain its reputation for reliability and navigate the regulatory landscape.

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