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PUC, PPL Electric Agree to Settlement on Higher Distribution Costs

Bills likely to increase (again) in July

The Pennsylvania Public Utility Commission approved a lower-than-requested increase to PPL Electric’s distribution rates on Thursday, which will raise monthly bills for Schuylkill County customers starting this summer.

For a typical residential customer using 918 kilowatt-hours of electricity per month, the total monthly bill is projected to increase from $177.01 to $184.49. This represents a 4.9% increase, adding $7.48 to the monthly cost, the PUC says.

This rate hike applies strictly to the distribution portion of the bill, which covers PPL’s costs for delivering electricity, maintaining poles, and repairing wires. It does not affect the “Price to Compare” rate, which is the separate cost of the actual electricity supply that consumers can shop around for. That new, higher rate just went up at the beginning of this month.

PPL originally asked the state for a $356.3 million annual revenue increase. The approved settlement reduces that amount to $275 million. As part of the agreement, PPL is prohibited from filing another base rate increase for the next two years. This was the first distribtion rate increase for PPL Electric since 2016.

The settlement also includes several provisions intended to aid low-income customers. PPL will increase funding for its Low-Income Usage Reduction Program and expand outreach regarding available financial assistance. Additionally, starting July 1, 2027, the utility will waive reconnection fees for customers with household incomes at or below 150% of the federal poverty line.

To prevent regular residential customers from absorbing the infrastructure costs of high-demand operations, the agreement establishes new rules for large-load facilities, such as data centers. These high-demand facilities will face long-term service commitments and minimum demand financial guarantees designed to stop costs from shifting onto existing ratepayers.

The PUC also approved a narrow modification to protect local agricultural operations. The change ensures that family farms running on-farm biogas systems to power their work are not classified as large, high-demand energy facilities, allowing them to maintain their current status.

PPL Electric and the PUC have five business days to review the modifications and decide whether to withdraw from the agreement. If no parties object, the new distribution rates will officially take effect for all electric service rendered on or after July 1.

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1 Comment

1 Comment

  1. Ray

    June 6, 2026 at 9:15 am

    Someone needs to put a CAP on these utility companies for next 20 years….what do they expect ….that people have the extra money to afford their greed? Not in the Skook, we are all drowning

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