WILKES-BARRE — PPL Electric residential customers will see an increase of nearly 5% in their monthly electric bills starting in July, following a unanimous vote Thursday by the Pennsylvania Public Utility Commission (PUC).
The PUC voted to modify and approve a Joint Petition for Settlement resolving the base rate proceeding involving PPL Electric Utilities Corporation (PPL Electric), according to PUC Chairman Steve DeFrank.
PPL Electric provides electric distribution service to approximately 1.5 million customers across eastern and central Pennsylvania.
According to a news release from the PUC, PPL Electric’s original rate request sought an annual revenue increase of approximately $356.3 million. Under the settlement approved Thursday, the company’s annual revenue increase is reduced to approximately $275 million.
The commissioners voted 5-0, noting the partial dissents of Vice Chair Kim Barrow, Commissioner John F. Coleman, and Commissioner Ralph Yanora, to adopt the recommendations of Deputy Chief Administrative Law Judge Christopher P. Pell and Administrative Law Judge Barbara Shadie Nause, as modified by a motion from Commissioner Kathryn L. Zerfuss.
For a residential customer using 918 kilowatt-hours (kWh) of electricity per month, PPL Electric’s original proposal would have increased the total monthly bill from $177.01 to $189.40 — approximately 7%. Under the approved settlement, the total monthly bill for that customer is projected to increase to approximately $184.49 (4.9%).
The settlement contains a wide range of provisions related to customer affordability, reliability, large-load customers, and customer service improvements.
“This proceeding reflects one of the central challenges facing utility regulation today – balancing the investments necessary to maintain a safe and reliable electric system with the affordability concerns facing households and businesses across Pennsylvania,” said Chairman DeFrank. “The settlement significantly reduces the company’s original request while also securing meaningful commitments related to reliability, customer service, low-income assistance, and accountability. At a time when the electric system is facing unprecedented change, those investments and protections matter.”
Extended rate case stay-out
The settlement includes a 2-year rate case stay-out, which provides certainty on distribution rates for customers at a time of ever-increasing costs to consumers for all basic needs.
Consumer enhancements included
The settlement includes numerous measures affecting customer affordability, utility operations, and long-term system planning:
• Increased funding for PPL Electric’s Low-Income Usage Reduction Program (LIURP)
• Expanded outreach to customers regarding available assistance programs
• Waiver of reconnection fees beginning July 1, 2027, for customers with household incomes at or below 150% of the Federal Poverty Level
• Additional protections, procedural improvements, and security deposit reforms related to low-income customers
• Enhanced call-center performance monitoring and reporting
• Expanded communications regarding payment arrangements and customer assistance programs
• Continued evaluation of customer service performance and program effectiveness
• Universal Service Costs Allocation increase to Rate LP-6 from $10 million to $11 million
Reliability and infrastructure accountability
The Commission also approved provisions intended to strengthen oversight of electric system performance.
Under the Settlement, PPL Electric will file annual reliability accountability reports tracking approved reliability programs, expenditures, completed work, targeted locations, and measurable reliability outcomes through its next base rate proceeding.
Electric vehicle and energy innovation programs
The settlement modifies PPL Electric’s Electric Vehicle Time-of-Use Charging Rebate Program, including revisions to program hours and continued incentives encouraging off-peak vehicle charging. The program will be reevaluated prior to any continuation beyond 2030.
Large load and customer-generator provisions
The settlement also addresses emerging issues related to large-load customers and customer-generators, including new tariff provisions applicable to certain large-load customers, such as data centers and other high-demand facilities.
These provisions include long-term service commitments, minimum demand guarantees, financial protections intended to reduce cost shifting to existing customers, and other measures designed to better align cost responsibility with cost causation.
Commission modification related to agricultural biogas operations
The commission adopted 3-2 a motion offered by Commissioner Kathryn L. Zerfuss modifying the settlement’s treatment of agricultural customer-generators.
The motion makes a narrow modification to the settlement to clarify that agricultural biogas customer-generators are not swept into a classification designed for large, “no-load” net-metering facilities. It recognizes the real distinction between on-farm biogas systems that power working agricultural operations and large projects built principally to export power. This clarification ensures that on-farm biogas projects are treated in a way that reflects how they actually operate — and recognizes the role these farms play in strengthening Pennsylvania’s rural communities.
“This motion is a simple modification to the Settlement ensuring that agricultural biogas customer-generators are not grouped into a classification they do not meet,” said Commissioner Zerfuss. “While technical in nature, this distinction recognizes the unique role family farms and agricultural operations play in both our economy and our energy future.”
Next steps
Because the commission approved modifications to the settlement through Commissioner Zerfuss’ motion, parties to the settlement will have five business days to determine whether to withdraw from the agreement.
Following the expiration of the five-business-day withdrawal period established by Thursday’s order, and if no party elects to withdraw from the settlement, PPL Electric will file a compliance tariff implementing the approved rates and related provisions for service rendered on and after July 1, 2026.
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Reach Bill O’Boyle at 570-991-6118 or on Twitter @TLBillOBoyle.