PPL Electric Utilities Gains Approval for New Distribution Rates: Focus on Reliability and Affordability

PPL Electric Utilities Secures New Distribution Rates

Allentown, Pennsylvania – June 4, 2026 – PPL Electric Utilities has received pivotal approval from the Pennsylvania Public Utility Commission (PUC) for a settlement on its distribution rates. This agreement will author a $275 million increase in annual base distribution revenues aimed at improving the reliability of the electric grid, enhancing customer protections, and ensuring long-term affordability for its customers.

The approval marks a significant step for PPL Electric, reflecting the consensus among a range of stakeholders, including customer advocates, environmental groups, and business representatives. Following an exhaustive review, the PUC concluded that the adjustments would serve the public interest, with a minor amendment regarding net metering eligibility. As Christine Martin, President of PPL Electric Utilities stated, "This decision stems from a comprehensive analysis of our past performance and future commitments. It bolsters our dedication to providing safe, reliable electricity."

Strengthening Reliability and Customer Support

To ensure continued improvements in service, PPL Electric is set to channel investments into replacing aging infrastructure, ramping up vegetation management, and advancing smart grid technology. These enhancements will enable the company to respond to the increasing frequency of severe weather and its impact on power distribution.

Moreover, the newly approved settlement includes essential support for customers facing financial hardships. The expansion of low-income assistance programs, more rigorous screenings for eligibility, and the elimination of reconnection fees for low-income applicants exemplify PPL's commitment to supporting its most vulnerable clients. The utility also aims to provide flexible payment options and energy-saving programs to help customers effectively manage their electricity bills.

Addressing Growing Electricity Demand

A noteworthy aspect of the settlement is the introduction of a new rate class for large-load customers, which is designed to manage the growing demand on the system while protecting existing customers from unnecessary costs. Large electricity consumers, such as data centers, will face binding financial commitments stretching over a minimum of a decade. This measure is intended to distribute infrastructural expenses fairly, ensuring that large consumers contribute proportionately to the system's maintenance and growth.

Starting in 2027, $11 million annually will be allocated to low-income assistance programs funded by these large-load customers, easing the financial burden on residential customers.

"As electricity demand surges, it's imperative that we maintain reliability and fairness in our billing practices," Martin asserted. "These established provisions ensure that those requiring new infrastructure are responsible for their share of the costs, while current customers remain safeguarded."

Impact on Customers and Future Plans

The approved settlement will lead to a 3.23% increase in residential bills, translating to an estimated additional $6.48 monthly cost for households consuming around 1,000 kWh. Business customers will also experience minor increases, with commercial users expecting about $4.08 more per month. This marks PPL Electric's first base rate increase since 2016, underlining a commitment to cost management alongside reliable service delivery.

Moreover, PPL Electric has pledged not to raise distribution base rates for at least two years post-implementation. This period of stability should provide much-needed predictability for customers regarding their electricity costs.

In closing, Martin acknowledged the collaboration with the Shapiro Administration throughout this regulatory process, and expressed enthusiasm for future engagements aimed at further promoting affordability in line with the Governor's guidelines. Customers can find more information on support programs, bill payment options, and other resources by visiting the PPL Electric website.

For more details on the settlement filings, visit pplelectric.com/rateinfo.

About PPL Electric Utilities
PPL Electric Utilities is a leading supplier of safe, reliable, and affordable electricity servicing 1.5 million residential and business customers across eastern and central Pennsylvania. The company consistently ranks high among utility companies nationwide for dependability and customer satisfaction. Being part of the PPL Corporation (NYSE: PPL), it actively contributes to local community development. Stay updated with energy-saving tips and other information through PPL's social media channels.

For media inquiries, please contact Dana Burns at [email protected] or call 610-774-5997.