PPL Electric Utilities Rate Hike: What PA Customers Need to Know

by Eric Epstein

These battles are never quick, they are always long and protracted. The litigation with PPL began in October 2025, and after months of proceedings, the Pennsylvania Public Utility Commission finally acted — voting on June 4, 2026 to approve a settlement resolving PPL's distribution base rate review.

Context: Profits vs. Performance

None of this exists in a vacuum. PPL's profit margin last year was 20.53% — the highest among utilities in the 13-state PJM Interconnection and the District of Columbia, and eighth nationally among 79 reporting utilities. Pennsylvania is a deregulated state, and its distribution companies have been thriving financially.

But profits don't equal performance. In 2024, PPL recorded its worst storm response in recent memory, due in part to a record number of weather events. According to a Pennsylvania PUC reliability report, PPL had more reportable outage events in 2024 than any electric utility in the state since 1993. The company serves approximately 1.5 million customers across 29 counties in Central and Eastern Pennsylvania.

What's Still Unresolved

EV Time-of-Use (EV-TOU) rate details still need to be worked out. I also have an outstanding complaint against PPL related to marketing scams. We're back in court in July.

The outcome is complicated and customers should understand exactly what they're getting.

The Rate Increases

Starting July 1, 2026, PPL Electric Utilities will raise distribution base rates for the first time since 2016. The PUC significantly scaled back PPL's original ask — the company sought a $356.3 million annual revenue increase, which was cut to $275 million — but customers will still feel it:

• Residential customers: A 3.23% increase, adding roughly $6.48 per month for those using 1,000 kWh

• Small commercial customers: A 5.5% increase, or about $4.08 more per month

• Industrial customers: A 2.5% increase, raising average monthly bills by $332.54

Under the settlement, PPL cannot request another base rate increase for two years.

A Win for Low-Income Customers

The settlement includes several meaningful protections for lower-income households. Effective July 1, 2027, PPL will waive reconnection fees for customers earning at or below 150% of the federal poverty level. Funding for PPL's Low-Income Usage Reduction Program (LIURP) — which covers weatherization and energy-saving measures — will also be expanded.

A Win for Farmers

In a notable modification to the settlement, Commissioner Kathryn L. Zerfuss moved to exempt agricultural customer-generators from the Maximum Registered Peak Load (MRPL) classification. That exemption passed and is a real victory for farming communities in PPL's service territory.

New Rules for Data Centers and Large Users

The settlement creates a dedicated rate class (LP-6) for high-demand customers — think data centers requiring 50 MW or more. These large users must now sign 10-year usage and financial commitments, cover their own interconnection costs, and pay a non-bypassable charge contributing $11 million annually to universal service programs starting in 2027. This is designed to prevent infrastructure costs from being quietly shifted onto residential and small-business ratepayers — a long-overdue protection, given that PPL is already fielding 38 pending large-load projects totaling up to 19,632 MW of projected demand.

I'll continue to keep you posted..