Pennsylvania Public Utility Commission approves new distribution rates for PPL Electric Utilities prioritizing reliability, customer protections and l...

The Pennsylvania Public Utility Commission (PUC) has approved a settlement agreement that will adjust PPL Electric Utilities’ distribution rates, marking the utility’s first rate increase since 2016. Under the agreement, average residential electric bills are expected to rise by 4.9%, or approximately $184 per month, if the proposal is finalized. The settlement, which was submitted to the PUC for approval, includes a $275 million annual increase in base distribution revenue—nearly 23% less than the $356.3 million originally requested.

The agreement introduces a new tariff for large load customers, such as data centers, with peak electric demand of 50 MW or greater at a single facility. These customers will be required to enter into long-term service agreements, including minimum load guarantees and interconnection agreements, to ensure system reliability and prevent cross-subsidization. Additionally, large load customers will contribute $11 million annually to PPL Electric’s residential low-income assistance programs.

The settlement also includes enhancements to customer assistance programs, such as expanded hardship fund bill credits, improved access to assistance, and the elimination of reconnection fees. It also proposes a two-year freeze on base rate increases and a new electric vehicle rebate program. The PUC’s approval of the settlement reflects balancing system reliability and costs.