PPL Corporation and PPL Electric Utilities Joint Statement Regarding Governor Shapiro's Budget Address
Rhea-AI Summary
PPL (NYSE: PPL) and PPL Electric Utilities reaffirm commitment to transparency, affordability and collaboration following Governor Shapiro's Budget Address on Feb. 4, 2026. The company endorsed increased ratemaking transparency, supports reforms to protect retail shoppers, and proposes cutting unnecessary fees while maintaining reliability investments.
PPL Electric says supply costs — up over 200% in five years — now make up 47% of a typical residential bill; retail shopping abuses cost customers over $60 million in 2025. The company highlights nearly 25% lower O&M growth versus inflation over 10 years and no distribution base rate increases since 2015.
Positive
- Supply costs identified as primary bill driver: +200% over five years
- Supply now represents 47% of a typical residential bill
- Retail abuses quantified: customers lost $60 million in 2025
- Operating and maintenance growth managed nearly 25% below inflation over 10 years
- No distribution base rate increases since 2015
Negative
- High energy supply prices are a major cost pressure for customers
- Supply cost surge increases bill volatility and affordability risks
- Current retail market practices have resulted in significant customer overpayments
Key Figures
Market Reality Check
Peers on Argus
PPL slipped 0.89% while key regulated electric peers were mostly higher: AEE +1.77%, DTE +1.86%, ES +1.03%, FTS +2.72%, with only FE down 0.45%. This points to stock-specific trading rather than a broad sector move.
Historical Context
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 30 | Earnings webcast notice | Neutral | -0.2% | Announced timing and access details for Q4 and 2025 earnings webcast. |
| Jan 20 | Policy and JV update | Positive | +0.2% | Reiterated urgency of new generation and highlighted Blackstone JV for data centers. |
| Jan 06 | Third-party PPL news | Neutral | +0.3% | Premier Plus Lending expansion and strong loan growth under the PPL ticker. |
| Nov 21 | Dividend declaration | Positive | +1.6% | Declared <b>$0.2725</b> quarterly dividend payable <b>Jan 2, 2026</b> to holders of record. |
| Nov 19 | Debt financing | Neutral | -0.0% | Priced <b>$1.0B</b> 3.000% exchangeable senior notes due 2030 for refinancing and general use. |
Recent company news, including policy commentary and capital markets activity, has generally seen modest price reactions, with positive items like dividends and policy support aligning with small share gains.
Over the past several months, PPL’s disclosures have centered on capital markets, policy positioning and shareholder returns. A $0.2725 quarterly dividend announcement on Nov 21, 2025 coincided with a 1.63% gain, while a $1.0 billion exchangeable senior notes pricing on Nov 19, 2025 saw almost no reaction. A January 2026 statement supporting new generation for data centers produced a small uptick. Today’s affordability and policy-focused statement fits this pattern of modestly moving, policy-oriented news.
Market Pulse Summary
This announcement underscores PPL’s focus on affordability and regulation, noting that supply charges now represent 47% of a typical bill and have risen more than 200% over five years. Management stresses cost discipline, with O&M held about 25% below inflation over a decade and no distribution base rate hikes since 2015. Investors may watch the pending rate review and policy debates on new generation and retail market reforms.
Key Terms
rate review regulatory
AI-generated analysis. Not financial advice.
We appreciate Governor Shapiro's focus on affordability and are aligned with the goal of making electric service affordable for every Pennsylvanian. Our organization is also proud of the bold, strategic measures we have taken over the past decade to control costs, support our customers and deliver the reliable power that families and businesses count on.
Ratemaking transparency
PPL Electric fully supports enhanced transparency in the regulatory process. In addition to full rate reviews, we are regularly subject to management audits and regular and robust reporting on our operations and quarterly earnings. We have nothing to hide, and we believe that open, clear regulatory proceedings help ensure strong public confidence in the state's utility regulatory process. The company is actively working with intervening parties to potentially reach a settlement in its pending rate review and supports looking for ways the parties and the public can better understand what's behind rate review settlements.
Reforming retail markets
PPL Electric has long advocated for measures that protect customers from expensive and sometimes deceptive retail energy practices. We support Governor Shapiro's efforts to shield customers from overpaying or being misled in competitive retail markets. In 2025 alone, retail shopping abuses cost our residential customers over
Eliminating unnecessary fees and reinstating customer protections
PPL Electric has identified a number of fees that if revised or eliminated could lower bills. We have shared those with the governor and will work with policymakers to address what was referred to as "junk" fees, those that are costing customers money without adding value. Additionally, we are committed to further supporting vulnerable customers and will evaluate the company's practices in this regard, including reconnection fees for low-income customers.
PPL Electric remains dedicated to protecting vulnerable households and ensuring fairness for all customers through robust assistance initiatives and maintaining service during times of financial hardship. Even in the absence of law, we have continued the customer protections and practices of Chapter 14. We support reinstatement of this law, which expired in December 2024.
Proactive cost management while maintaining excellence
PPL Electric remains focused on investing in reliability, minimizing outages and fostering economic growth, all while maintaining disciplined cost controls. Over the last 10 years, the company managed operating and maintenance expenses nearly
Through disciplined oversight, strategic reliability investments and a relentless focus on cost management, PPL Electric consistently delivers the most dependable service among Mid-Atlantic utilities, all while maintaining some of the lowest rates in the region. The company's infrastructure investments are also supporting key economic development projects in the Commonwealth, like the recently announced Eli Lilly project in
High energy supply prices are a main driver of electric bill increases
With rising energy supply costs posing a serious concern for Pennsylvanians, PPL Electric emphasizes the need to keep affordability at the center of energy policy discussions. It is vital to examine the true causes of higher energy bills to develop effective solutions.
For three years, the company has been sounding the alarm on a worsening generation supply situation and has put forth solutions and supported market reforms that have saved customers billions of dollars. But more needs to be done to address the primary driver of bill increases — energy supply costs. In the last five years, supply prices for PPL Electric customers have surged by more than
We agree with the governor that the most impactful thing we can do to lower energy bills in
Stakeholder collaboration
As PPL Electric moves forward, the company remains dedicated to collaborating with policymakers and stakeholders to develop practical, effective solutions. PPL Electric encourages ongoing attention to the key factors that impact energy costs, while emphasizing the importance of policies that protect the safety, reliability and affordability that customers count on every day.
About PPL Corporation
PPL Corporation (NYSE: PPL), headquartered in
About PPL Electric Utilities
PPL Electric Utilities delivers safe, reliable and affordable electricity to about 1.5 million homes and businesses in eastern and central
Note to Editors: Visit our media website at https://news.pplweb.com/ for additional news and background about PPL Corporation.
Contact: | For news media: Dana Burns, DNBurns@pplweb.com, 610-774-5409 |
PPL Electric Utilities |
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SOURCE PPL Services Corporation
FAQ
What did PPL (PPL) say about drivers of higher electric bills in Pennsylvania?
How much did retail shopping abuses cost PPL Electric customers in 2025?
What transparency and regulatory actions is PPL Electric supporting after the budget address?
Will PPL Electric cut fees to lower customer bills and which fees are targeted?
How has PPL Electric managed costs while investing in reliability and growth?
