PPL Electric Utilities making necessary investments to strengthen and modernize infrastructure and expand services and support for customers

Rhea-AI Summary

PPL Electric Utilities (NYSE:PPL) has filed its first distribution base rate request in 10 years to fund critical infrastructure investments. The company is seeking a $356 million distribution base rate revenue increase, representing an 8.6% increase in total annual revenue. The net increase requested is just over $300 million, as $50 million is already reflected in customer bills.

If approved, residential customers using 1,000 kWh/month would see an increase of $13 monthly, while typical commercial and industrial customers would experience increases of $8 and $514 per month, respectively. The new rates would take effect on July 1, 2026.

The investment will support grid modernization, weather resilience improvements, and enhanced customer service systems. PPL Electric has maintained operating expenses 25% below inflation since 2015, with only a 7.4% nominal increase in operating and maintenance expenses.

Positive

• First base rate increase request in 10 years, demonstrating long-term cost control
• Operating expenses maintained 25% below inflation since 2015
• Smart grid technology has prevented over 3 million outages
• Successfully prevented over 500,000 power outages in current year
• Assisted more than 100,000 customers through support programs in 2024

Negative

• 8.6% increase in total annual revenue required
• Significant rate increases for all customer segments
• Industrial customers face substantial $514 monthly increase
• Rising maintenance costs for extensive infrastructure (47,000 miles of lines, 1 million poles)

News Market Reaction

-1.53%

1 alert

-1.53% News Effect

On the day this news was published, PPL declined 1.53%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Company files regulatory rate request to enhance service reliability, improve resiliency and better meet customer needs today and in the future.

ALLENTOWN, Pa., Sept. 30, 2025 /PRNewswire/ -- PPL Electric Utilities is making necessary investments to build and maintain a stronger, smarter and more resilient electric grid to better withstand increasingly severe weather, prevent outages and improve service to customers. To fund these ongoing investments, the company has filed its first distribution base rate request in a decade.

"We understand that rising costs of living and affordability matter to every family and business we serve, and we've been committed to keeping the costs we can control down. Over the past decade, we've deployed advanced technologies to operate more efficiently, invested responsibly in the grid and expanded assistance programs to support those who need help paying their energy bills. This commitment to efficiency has meant that PPL Electric Utilities' base distribution rates have not changed in the last 10 years, and, as a result, our customers have among the lowest distribution rates in the state," said Christine Martin, president of PPL Electric Utilities.

"To continue providing our customers with safe and reliable electric service, we need to make important investments in our system. With nearly 47,000 miles of distribution lines, 1 million poles, hundreds of substations, and thousands of pieces of equipment, costs are rising to maintain and upgrade these essential services. We're requesting a rate adjustment to support these necessary improvements and help ensure power stays on, especially as severe weather becomes more common," said Martin.

Supporting a stronger grid and continued customer value
The company's proposal requests funding to:

• Further strengthen and modernize the electric grid to better withstand severe weather events, minimize outages and protect against evolving cyber threats. Ongoing investments include comprehensive tree trimming and installing stronger poles and wire and equipment guards.
• Continue to implement next-generation smart grid technologies such as advanced automation to accelerate restoration times and reduce outages, and data analytics to inform smarter business decisions that deliver the greatest value for customers. The company's advanced smart grid has already helped avoid more than 3 million outages.
• Improve customer service systems and expand self-service options to offer more convenience and flexibility for customers, and reduce call wait times.

"In recent years, we have faced record-breaking storms in frequency and intensity," said Martin. "Thanks to our investments in a more resilient electric grid — like stronger infrastructure, enhanced vegetation management and advanced automation — our customers are experiencing fewer outages. We're proud to have prevented more than half a million power outages so far this year, but we know our work is not done. These necessary investments are vital to power the lives and communities we serve, and we're committed to keeping the lights on, continuing to operate as efficiently as possible and finding better ways to serve our customers every day."

Committed to supporting customers through change
PPL Electric's rate request includes a proposed distribution base rate revenue increase of approximately $356 million, which would increase the company's total annual revenue by about 8.6%. More than $50 million of this request is already reflected in customer bills, making the net distribution revenue increase requested just over $300 million.

The company's last distribution base rate change occurred on Jan. 1, 2016. Over the past 10 years, the company has worked to keep operating and maintenance expenses below the rate of inflation and has invested in the reliability and resiliency of the grid without asking customers to pay more through base rates. PPL Electric operating and maintenance expenses have increased by only 7.4% nominally since 2015 — nearly 25% below inflation over that time period.

Pending regulatory approval, the requested change would add about $13 a month, or 43 cents a day, for a residential customer using 1,000 kilowatt-hours a month.

For a typical commercial customer using 1,000 kWh and 3 KW per month, the increase would be about $8 per month. For a typical industrial customer using 150,000 kWh and 500 KW per month, the increase would be about $514 per month.

The requested increase would go directly toward strengthening reliability and improving customer service for PPL Electric's 1.5 million customers.

If approved, the company expects new rates would become effective on July 1, 2026.

PPL Electric remains committed to helping customers manage their bills and future rate changes, offering flexible payment options, energy-saving tools and programs for all households and businesses. In 2024, PPL Electric assisted more than 100,000 customers through support programs, ensuring families and individuals receive necessary aid.

Customers who may be struggling to pay their electric bills can visit pplelectric.com to learn more and access available resources.

For more information
PPL Electric's distribution rate request is different from the twice-annual Price to Compare rate changes, which involve energy supply charges. PPL Electric does not mark up or profit from energy supply charges.

PPL Electric remains committed to transparency and open communication. The rate review filing, including detailed supporting materials, is available on the company's website at pplelectric.com/RateInfo and through the Pennsylvania Public Utility Commission. Customers may contact the company toll-free at 1-800-342-5775.

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 Electric Utilities

FAQ

How much will PPL Electric's new rate increase cost residential customers?

Residential customers using 1,000 kWh per month will see an increase of $13 per month (43 cents per day) if the rate request is approved.

When was PPL Electric's last distribution base rate increase?

PPL Electric's last distribution base rate change occurred on January 1, 2016, making this their first rate increase request in 10 years.

What is the total revenue increase PPL Electric is requesting in their 2025 rate filing?

PPL Electric is requesting a distribution base rate revenue increase of $356 million, with a net increase of over $300 million after accounting for $50 million already reflected in customer bills.

When will PPL Electric's new rates take effect if approved?

If approved by regulators, the new rates would become effective on July 1, 2026.

How has PPL Electric managed operating costs over the past decade?

PPL Electric has maintained operating and maintenance expenses 25% below inflation since 2015, with only a 7.4% nominal increase in operating expenses.

What improvements will PPL Electric make with the rate increase?

The funds will support grid modernization, weather resilience improvements, enhanced customer service systems, advanced automation, and protection against cyber threats.