PUC Issues Decision in PPL Electric Rate Proceeding

PUC Issues Decision in PPL Electric Rate Proceeding

Published on 6/4/2026

Filed under: Electric

Commission Reduces Original Revenue Request by More Than $80 Million While Expanding Customer Assistance and Reliability Oversight

HARRISBURG - The Pennsylvania Public Utility Commission (PUC) today voted to modify and approve a Joint Petition for Settlement resolving the base rate proceeding involving PPL Electric Utilities Corporation (PPL Electric), which provides electric distribution service to approximately 1.5 million customers across eastern and central Pennsylvania.

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.

PPL Electric's original rate request sought an annual revenue increase of approximately $356.3 million. Under the Settlement approved today, the Company's annual revenue increase is reduced to approximately $275 million.

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 approved today 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 PUC Chairman Steve 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 in Settlement

The Settlement includes numerous measures affecting customer affordability, utility operations, and long-term system planning, including:

• 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 today'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.

About the PUC

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities; ensures safe and reliable utility service at reasonable rates; protects the public interest; educates consumers to make independent and informed utility choices; furthers economic development; and fosters new technologies and competitive markets in an environmentally sound manner.

Visit the PUC's website at puc.pa.gov for recent news releases and video of select proceedings. You can also follow us on X, Facebook, LinkedIn, Instagram and YouTube. Search for the "Pennsylvania Public Utility Commission" or "PA PUC" on your favorite social media channel for updates on utility issues and other helpful consumer information.

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Docket No.: R-2025-3057164

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