Fresh off one rate increase, many PPL Electric customers are about to see another | Allentown Area

ALLENTOWN, Pa.- Just days after one new rate increase took effect for many PPL Electric customers, confirmation has come that another is on the way.

On Thursday, the Pennsylvania Public Utility Commission (PUC) approved the company’s request for a distribution rate increase.

As of July 1, PPL’s residential customers will see a 3.23% increase in their bills. That translates into about $6.48 a month for a customer who uses 1,000 kilowatt-hours (kWh) a month. 

Typical commercial customers (1,000 kWh / 3 kW) will see a $4.08 increase. 

Industrial customers (150,000 kWh / 500 kW) can expect their bills to go up about $332.54 a month. 

The overall $275 million increase comes after a negotiated settlement; PPL originally sought $356 million.

PPL last raised its distribution rates in 2016. In a news release, the company said the revenue will support investment in a more reliable, resilient electric system while strengthening customer protections and affordability programs.

As part of the decision, PPL has established a new large-load customer rate class that the company said will support system growth while protecting existing customers.

Large load customers, like data centers, will be bound to long-term financial and usage commitments, ensuring that those customers are the ones paying for infrastructure costs, PPL said.

Also, beginning next year, $11 million in low-income program assistance will be assigned to these large-load customers every year through a non-bypassable charge, providing assistance to residential customers who need it.

“As electricity demand grows, our priority is to maintain reliability, transparency and fairness,” said PPL Electric President Christine Martin, in the news release. “These provisions ensure customers driving new infrastructure needs pay their share and existing customers are protected while supporting continued investment and economic growth.”

As part of the settlement, PPL Electric will not increase distribution base rates for at least two years.

But the new increase marks the second for many PPL customers in about a month.

On June 1, all electric utilities regulated by the PUC adjusted their price-to-compare (PTC). The PTC is the cost per kilowatt-hour (kWh) charged to customers who have not selected a third-party electric generation supplier.

PPL’s PTC increased 1.5%. The rate may go up again in December, when utilities adjust the PTC again. 

The PTC is based on wholesale market costs; any increase is passed on to non-shopping customers from the utility without any markup or profit.