PPL proposal would make it easier to assign energy transmission costs directly to data centers | Allentown Area

ALLENTOWN, Pa.- As data centers and other large energy users look to set up shop in Pennsylvania, PPL Electric Utilities says it wants to make transmission costs more transparent.

The Allentown-based utility, which serves about 1.5 million homes and businesses in 29 counties in eastern and central Pennsylvania, has introduced a proposal for a new Customer Protection Transmission Rider (CPTR).

It’s not a new charge; rather, it would replace the current Transmission Service Charge (TSC).

Currently, transmission costs are embedded within supply charges on customer bills. Those costs are recovered by PPL Electric or by third-party energy suppliers for customers who choose to shop around for their generation. 

“This approach makes it difficult for customers to see these costs on their bills and limits the ability for the company to directly assign certain transmission network costs associated with large-load growth to a specific customer class,” PPL said, in a news release.

But the new CPTR would make transmission costs visible to customers through a dedicated line item and create a mechanism for PPL to directly allocate certain network upgrade costs to large-load customers.

According to PPL, the new rider builds on the company’s existing Customer Protection Framework, which already requires certain large-load customers to make financial and usage commitments before connecting to the system.

“We want to ensure that all of our customers benefit from economic growth and that includes how investments in the electric grid are supported. As Pennsylvania grows, our responsibility is to make sure existing customers are protected,” said Christine Martin, president of PPL Electric Utilities, in the release. “This proposal would make transmission costs easier to see on customer bills and provide a way to assign certain transmission costs associated with serving large energy users directly to those customers. It’s a practical step that supports responsible growth while helping protect residential and small business customers.”

The proposal must be approved by the Pennsylvania Public Utility Commission (PUC). If that happens, the CPTR is expected to take effect in the first quarter of 2028.