PPL Electric, a major power company in Pennsylvania, has announced plans to raise its default rate for residential and small business customers. The proposed increase, which is subject to approval by the Pennsylvania Public Utility Commission, would see the rate per kilowatt hour for residential customers rise by approximately seven percent, and by 13 percent for small businesses. If approved, the new rates will take effect on December 1, 2024.
The new residential default rate is set to be 10.771¢/kWh, up from the current 10.040¢/kWh. For small businesses, the new default rate will be 10.446¢/kWh, up from 9.237¢/kWh, according to a report by the Times Leader.
Christine Martin, president of PPL Electric Utilities, stated that the company is committed to securing the lowest possible price for energy supply for customers who choose not to shop around. She also encouraged customers to monitor their bills closely and use the Pennsylvania Public Utility Commission's website to compare offers and choose a supplier that is right for them.
PPL Electric delivers electricity to its customers but does not own the power plants where the electricity is generated. The company secures enough electricity to power its customers' homes and businesses through competitive energy auctions held twice a year. The proposed default rate, also known as the "price to compare" (PTC), changes twice a year and is used by customers to compare offers from alternative energy suppliers.