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PPL requests base hike increase revenue by 8.6%

PPL Electric Utilities has filed with the Pennsylvania Public Utility Commission for a base rate hike it says is needed to make investments in the electric grid and to improve service.

This is the first base rate increase requested in 10 years, the company said.

In a release Tuesday, the company says the rate increase is “to build and maintain a stronger, smarter and more resilient electric grid to better withstand increasingly severe weather, prevent outages and improve service to customers.”

Pending regulatory approval, the requested change would add about $13 a month, or 43 cents a day, for a residential customer using 1,000 kilowatt-hours a month.

If approved, the company expects new rates would become effective on July 1, 2026.

PPL Electric’s rate request includes a proposed distribution base rate revenue increase of approximately $356 million, which would increase the company’s total annual revenue by about 8.6%. More than $50 million of this request is already reflected in customer bills, making the net distribution revenue increase requested just over $300 million.

“We understand that rising costs of living and affordability matter to every family and business we serve, and we’ve been committed to keeping the costs we can control down. Over the past decade, we’ve deployed advanced technologies to operate more efficiently, invested responsibly in the grid and expanded assistance programs to support those who need help paying their energy bills. This commitment to efficiency has meant that PPL Electric Utilities’ base distribution rates have not changed in the last 10 years, and, as a result, our customers have among the lowest distribution rates in the state,” said Christine Martin, president of PPL Electric Utilities.

“To continue providing our customers with safe and reliable electric service, we need to make important investments in our system. With nearly 47,000 miles of distribution lines, 1 million poles, hundreds of substations, and thousands of pieces of equipment, costs are rising to maintain and upgrade these essential services. We’re requesting a rate adjustment to support these necessary improvements and help ensure power stays on, especially as severe weather becomes more common,” said Martin.

PPL had 17 outages in 2024, the most by an electric distribution company in the last 32 years, the PUC reported in 2024.

PPL said the rate increase would allow the company to:

•Further strengthen and modernize the electric grid to better withstand severe weather events, minimize outages and protect against evolving cyber threats. Ongoing investments include comprehensive tree trimming and installing stronger poles and wire and equipment guards.

• Continue to implement next-generation smart grid technologies such as advanced automation to accelerate restoration times and reduce outages, and data analytics to inform smarter business decisions that deliver the greatest value for customers. The company’s advanced smart grid has already helped avoid more than 3 million outages.

• Improve customer service systems and expand self-service options to offer more convenience and flexibility for customers, and reduce call wait times.

“In recent years, we have faced record-breaking storms in frequency and intensity,” said Martin. “Thanks to our investments in a more resilient electric grid — like stronger infrastructure, enhanced vegetation management and advanced automation — our customers are experiencing fewer outages. We’re proud to have prevented more than half a million power outages so far this year, but we know our work is not done. These necessary investments are vital to power the lives and communities we serve, and we’re committed to keeping the lights on, continuing to operate as efficiently as possible and finding better ways to serve our customers every day.”

The company’s last distribution base rate change occurred on Jan. 1, 2016. Over the past 10 years, the company has worked to keep operating and maintenance expenses below the rate of inflation and has invested in the reliability and resiliency of the grid without asking customers to pay more through base rates. PPL Electric operating and maintenance expenses have increased by only 7.4% nominally since 2015 — nearly 25% below inflation over that time period.