PPL Corporation and PPL Electric Utilities Joint Statement Regarding Governor Shapiro's Budget Address

PPL (NYSE: PPL) and PPL Electric Utilities reaffirm commitment to transparency, affordability and collaboration following Governor Shapiro's Budget Address on Feb. 4, 2026.

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

Argus Feb 4 session

-1.04% close to close Open Argus

Details

News Market Reaction – PPL

On Feb 4, the first trading day after this news, PPL closed 1.04% below the previous close.

Data tracked by StockTitan Argus for the Feb 4 session.

Key Figures

Retail shopping abuses: over $60 million Cost control period: 10 years O&M vs inflation: 25% below +4 more

Retail shopping abuses

over $60 million

Cost to residential customers in 2025 from retail shopping abuses

Cost control period

10 years

Period over which O&M expenses managed below inflation

O&M vs inflation

25% below

Operating and maintenance expenses vs rate of inflation over last decade

Base rate stability

since 2015

No distribution base rate increases since 2015

Supply price increase

more than 200%

Increase in supply prices for customers over last five years

Bill share supply

47%

Portion of typical residential bill from supply costs

Bill share policy/tax

8%

Portion of typical residential bill influenced by state policies and taxes

Historical Context

5 past events · Latest: Jan 30

5 events

1. Jan 30

   Earnings webcast notice

   24h Move

   -0.2%

   Announced timing and access details for Q4 and 2025 earnings webcast.

2. Jan 20

   Policy and JV update

   24h Move

   +0.2%

   Reiterated urgency of new generation and highlighted Blackstone JV for data centers.

3. Jan 06

   Third-party PPL news

   24h Move

   +0.3%

   Premier Plus Lending expansion and strong loan growth under the PPL ticker.

4. Nov 21

   Dividend declaration

   24h Move

   +1.6%

   Declared $0.2725 quarterly dividend payable Jan 2, 2026 to holders of record.

5. Nov 19

   Debt financing

   24h Move

   -0.0%

   Priced $1.0B 3.000% exchangeable senior notes due 2030 for refinancing and general use.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

rate review, competitive retail markets, reconnection fees

3 terms

rate review regulatory

"pending rate review and supports looking for ways the parties and the public"

Rate review is a regulatory check where an insurer, utility, or other regulated service provider submits proposed price or premium increases to a government agency for examination and possible approval or modification. It matters to investors because the outcome determines how much revenue the company can charge customers, affecting earnings, profit margins and demand; think of it like a landlord asking the city for permission to raise rents, with regulators able to limit or reshape the increase.

competitive retail markets regulatory

"misled in competitive retail markets. In 2025 alone, retail shopping abuses"

Competitive retail markets are areas of consumer selling where many stores or brands vie for the same shoppers, often competing on price, product selection, convenience and service. Think of a busy shopping street where nearby shops try to draw the same customers — that rivalry can squeeze profit margins, slow growth, and force frequent investment in marketing or stores. Investors watch this because intense competition affects a retailer’s pricing power, market share and ability to generate steady returns.

reconnection fees regulatory

"including reconnection fees for low-income customers."

Charges a company levies to restore a previously suspended or disconnected service, typically after nonpayment or a customer-requested cutoff; think of it as the fee to have utilities or accounts turned back on. Investors care because these fees contribute to revenue, affect customer retention and public perception, and can be regulated or challenged, so they influence cash flow, profit margins, and potential legal or reputational risk.

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ALLENTOWN, Pa., Feb. 3, 2026 /PRNewswire/ -- PPL Corporation (NYSE: PPL) and PPL Electric Utilities (PPL Electric) today reaffirm its commitment to transparency, affordability and collaboration following Governor Shapiro's Budget Address. PPL Electric continues to take decisive action to manage rising energy costs, strengthen affordability and uphold its promise of transparency and accountability for all customers.

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 $60 million. Providing clear information, enforcing fair practices and offering customer education are essential to ensuring customers pay the appropriate rates for electricity supply — the largest single component of the electricity bill.

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 25% below the rate of inflation, even as it continued to invest in the grid's resiliency and reliability. Notably, this approach enabled PPL Electric to avoid distribution base rate increases since 2015. 

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 Fogelsville, just a few miles from PPL Electric's headquarters. Pennsylvania's stable regulatory environment and PPL Electric continue to support investments in our critical infrastructure and thousands of family-sustaining jobs as well as economic development activity.

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 200%. Currently, supply costs account for 47% of a typical residential customer bill with another 8% influenced by state policies and taxes.

We agree with the governor that the most impactful thing we can do to lower energy bills in Pennsylvania is to build new generation. PPL Electric has supported legislation in the Commonwealth to allow utilities to build and own generation again, and PPL Corporation created a joint venture with Blackstone Infrastructure to build generation to directly support data center load growth. 

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 Allentown, Pennsylvania, is a leading U.S. energy company focused on providing electricity and natural gas safely, reliably and affordably to more than 3.6 million customers in the U.S. PPL's high-performing, award-winning utilities are addressing energy challenges head-on by building smarter, more resilient and more dynamic power grids and advancing sustainable energy solutions. For more information, visit www.pplweb.com. 

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 Pennsylvania. It regularly ranks among the country's best utility companies for reliability and customer satisfaction. PPL Electric Utilities is a major employer and an active supporter of the communities it serves. It is a part of the PPL Corporation (NYSE: PPL) family of companies. Visit pplelectric.com or connect on social media via Facebook, X and Instagram for energy efficiency tips, bill help information, guidance on shopping for an electricity supplier, storm updates and more.

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

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What did PPL (PPL) say about drivers of higher electric bills in Pennsylvania?

PPL says energy supply prices are the main driver of bill increases. According to the company, supply prices rose over 200% in five years, now accounting for 47% of a typical residential customer bill, increasing household cost exposure.

How much did retail shopping abuses cost PPL Electric customers in 2025?

Retail shopping abuses cost PPL Electric customers more than $60 million in 2025. According to the company, clearer information, enforcement and education are needed to prevent customers from overpaying for supply.

What transparency and regulatory actions is PPL Electric supporting after the budget address?

PPL Electric supports enhanced ratemaking transparency and collaborative settlements in rate reviews. According to the company, it already undergoes audits, regular reporting and seeks ways for parties and the public to better understand rate settlements.

Will PPL Electric cut fees to lower customer bills and which fees are targeted?

PPL Electric said it identified fees that could be revised or eliminated to lower bills. According to the company, it shared options with the governor and will work with policymakers on removing so‑called "junk" fees and reviewing reconnection fees for low‑income customers.

How has PPL Electric managed costs while investing in reliability and growth?

PPL Electric reports disciplined cost control with O&M growth nearly 25% below inflation over ten years. According to the company, this allowed continued grid investment, avoided distribution base rate increases since 2015, and supported regional economic projects.