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PPL Electric Utilities has filed a petition asking Pennsylvania regulators to approve a smaller electricity rate hike than the company originally requested — a move that could bring some relief to the roughly 1.5 million customers the utility serves across the state.
According to PPL, the company submitted a joint petition for non-unanimous settlement to the Pennsylvania Public Utility Commission (PUC) on Friday (March 13), requesting an increase in annual base distribution revenues of $275 million. That's down significantly from the $356.3 million increase the utility first proposed last fall.
If the PUC approves the settlement, residential customers using 1,000 kilowatt-hours per month would see their total monthly bill rise by about $7.42 — a roughly 4.9% increase. That compares to the approximately $13-per-month jump, or about 7%, that would have come with the original request.
The revised proposal also includes increases for other customer types. Commercial customers using 1,000 kilowatt-hours and 3 kilowatts per month could see bills rise by $4.64 per month, while industrial customers using 150,000 kilowatt-hours and 500 kilowatts per month could see an increase of about $382.63.
The path to this revised request began last September, when PPL first asked regulators for the larger rate hike. The PUC voted in October to pause the increase pending an investigation. Public hearings followed in December, where many customers told regulators they were already struggling with rising electric supply costs and couldn't afford higher bills. Opposition also came from elected officials and local governments, including Luzerne County Council and Pennsylvania State Senator Judy Ward.
As reported by ABC27, the settlement now awaits a ruling from an Administrative Law Judge before it can move forward.
PPL said the rate adjustment is meant to support "ongoing investments in a safe, reliable and resilient electric system, while maintaining a strong commitment to customer affordability and service." The company also noted that, if approved, this would be its first base distribution rate increase since 2016 — and that it has agreed not to raise distribution base rates again for two years following the effective date of the new rates.
If the settlement is approved, new distribution base rates would go into effect on or after July 1, 2026. The settlement has broad support, with parties including low-income, residential, and business consumer advocates signing on, though two parties raised limited objections related to large net metering customer classification.