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2025 in review: Electricity costs rise for PPL customers

Electricity costs rose for PPL Electric Utilities’ customers last year and it’s likely this year, too.

On June 1, PPL’s rates jumped to 12.49 cents per kilowatt hour, up from 10.77 cents.

The costs were increased due to the retirement of older power generation plants and limited new generation supply added to the market, PPL said.

Another spike occurred on Dec. 1, when rates went from 12.49 cents per kilowatt hour to 12.953, an increase of 3.7%.

In addition to this rate increase, PPL is requesting a 7% base increase to update technology.

The request was made, PPL said, due to accelerated capital investment to maintain and improve system reliability and to reduce service outages; investments in customer service offerings; upgrading infrastructure to improve cybersecurity; flat residential and commercial sales as a result of a slow economic growth and increased levels of distributed generation from alternative energy systems/net metering; and setting rates based on cost of service.

The Pennsylvania Public Utility Commission held public hearings on the proposed increase in December.

The PUC expects to issue a final ruling on the request by July 1.

Under state law, PPL Electric Utilities is prohibited from owning electric generation and is required to purchase electricity on behalf of customers who do not choose a third-party supplier. That electricity is purchased through a series of competitive auctions designed to secure the least cost over time. PPL directly passes those generation supply costs to nonshopping customers without any markup or profit, according to the utility.