Allentown, PA, October 2, 2025
News Summary
PPL Electric Utilities is proposing a 6.98% increase in distribution rates for residential customers, which would result in a monthly bill increase of approximately $13 for a typical household using 1,000 kWh. The proposal also includes increases for commercial and industrial customers. The rate hike, aimed at generating about $356 million in revenue to enhance the electric distribution system, is currently under review by the Pennsylvania Public Utility Commission.
Allentown, PA – PPL Electric Utilities Proposes 6.98% Rate Increase for Distribution Charges
PPL Electric Utilities is seeking a 6.98% increase in distribution rates for its residential customers. If approved, this increase means that a typical residential customer using 1,000 kWh per month would see their bill rise by approximately $13, bringing the total bill to $204.86.
The proposed rate hike will also affect commercial customers, who can expect a 5.31% increase in their bills, translating to an additional $8.60 for those using 1,000 kWh and 3 kW per month. On the industrial front, customers using 150,000 kWh and 500 kW per month would face a 2.58% increase, which equates to an approximate $514 rise in their bills.
This request, marking the company’s first base rate hike in over seven years, aims to generate about $356 million in revenue, effectively increasing the company’s total annual revenue by roughly 8.6%. However, this proposal is subject to approval by the Pennsylvania Public Utility Commission (PUC), which will typically conduct a seven-month investigation into the request.
Operational Context
PPL Electric is the primary electricity utility provider in Lancaster County, providing service to approximately 272,000 customers. The president of PPL Electric has indicated that the proposed increase is necessary to fund essential investments in the electric distribution system, aimed at improving service reliability amid escalating costs and increasing instances of severe weather.
Notably, PPL’s operating and maintenance expenses have risen by 7.4% since 2015, which is notably 25% below inflation for the same period. With the last increase in distribution rates occurring over a decade ago, PPL is prompted to seek this adjustment as customer usage has surged during this time.
Recent trends indicate a 16% increase in the average costs associated with generating electricity for residential customers, driven by market dynamics such as the retirement of older plants and a rising demand for energy.
Options for Customers
Customers who wish to challenge this request may do so through the Pennsylvania Public Utility Commission. Furthermore, those interested in comparing electricity rates can leverage the PAPowerSwitch website for more information. PPL is also investigating assistance programs for customers who may struggle to pay their bills with this anticipated increase in costs.
System Improvements and Reliability
PPL Electric’s pursuit of the rate hike is rooted in the necessity to incorporate advanced technologies and make substantial upgrades to the electric grid. Increased power outages experienced over the past year have underscored the urgent need for significant system improvements, prompting this proactive measure by the utility company.
As electricity bills rise nationally due to various factors—including inflation and a higher demand for residential power—PPL aims to navigate these challenges while maintaining efficient service delivery to its customers.
Frequently Asked Questions
What percentage increase has PPL Electric Utilities proposed for distribution rates?
PPL Electric Utilities has requested a 6.98% increase in distribution rates for residential customers.
How much will the bill of a typical residential customer increase?
The proposed rate increase will raise the bill of a residential customer using 1,000 kWh per month by approximately $13, bringing it to $204.86.
How will the proposed rate increase affect commercial and industrial customers?
Commercial customers using 1,000 kWh and 3 kW per month would see their bills rise by 5.31%, or about $8.60. Industrial customers using 150,000 kWh and 500 kW per month would experience a bill increase of approximately 2.58%, or around $514.
What is the purpose of this rate increase?
This proposal, the first base rate hike since January 1, 2016, aims to generate approximately $356 million in revenue, increasing the company’s total annual revenue by about 8.6%.
How can customers challenge this rate hike request?
Customers can challenge the rate hike request through the Pennsylvania Public Utility Commission (PUC) or compare electricity rates via the PAPowerSwitch website.
Key Features of the Proposed Rate Increase
| Customer Type | Current Usage | Proposed Percentage Increase | Increase in Bills | Total New Bill |
|---|---|---|---|---|
| Residential | 1,000 kWh | 6.98% | $13 | $204.86 |
| Commercial | 1,000 kWh and 3 kW | 5.31% | $8.60 | Varies |
| Industrial | 150,000 kWh and 500 kW | 2.58% | $514 | Varies |
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Additional Resources
- Citizens Voice: PPL Seeks Nearly 7% Rate Increase on Electric Bills
- CBS News: PPL Electric Bill Rate Increase
- WFMZ: PPL Electric Requesting Rate Increase
- Wikipedia: Electricity Rate
- The Morning Call: PPL Requests Base Rate Hike
- Google Search: PPL Electric Rate Increase
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