PPL (NYSE: PPL) seeks approval for $275M electric rate hike deal

Rhea-AI Filing Summary

PPL Electric Utilities, a subsidiary of PPL Corporation, has filed a joint settlement petition with Pennsylvania regulators for its first electric distribution base rate increase since 2016. If approved, the settlement would raise annual base distribution revenues by about $275 million, below the original request of about $356 million.

The proposal is based on a future test year ending June 30, 2027, with new rates targeted to start July 1, 2026, and generally limits further base rate changes for two years after that date. It resets the Distribution System Improvement Charge to 0% and caps it at 5.0% of annual distribution revenues, and raises storm cost recovery in base rates for reportable storms to $32 million annually from $20 million via the Storm Damage Expense Rider.

The settlement backs capitalization of about $54 million of information technology upgrades and creates a new large-load LP-6 tariff for customers such as data centers, including long-term contract requirements, load guarantees and exit fees. This new class would contribute $11 million to residential low-income programs. Additional measures enhance customer assistance and low-income usage reduction programs. The agreement remains subject to Pennsylvania Public Utility Commission review, and it may be approved, denied or modified.

Insights

Regulated utilities and rate-case analyst

PPL Electric advances a sizable but structured rate settlement that balances revenue, investment and customer protections, pending regulator approval.

The settlement would provide about $275 million in additional annual base distribution revenue for PPL Electric Utilities, supporting grid reliability, IT upgrades of about $54 million, and higher storm-cost recovery at $32 million per year. It also introduces a new LP-6 tariff framework for large loads, including data centers, with defined commitments and an exit-fee mechanism.

Customer affordability is addressed through a two-year limit on further base distribution rate changes after new rates start on July 1, 2026, plus an additional $11 million in support for low-income programs and higher budgets for usage reduction. The regulatory outcome remains uncertain because the Pennsylvania Public Utility Commission can approve, deny or modify the settlement and a decision is only expected before the end of Q2 2026.

Future disclosures in company filings may clarify final approved revenue levels, specific tariff terms for the LP-6 class, and how storm recovery mechanisms and customer support enhancements perform once the new structure is in effect.

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 

Date of Report (Date of earliest event reported):  March 13, 2026

 

Commission File Number			Registrant; State of Incorporation; Address and Telephone Number												IRS Employer Identification No.
1-11459			PPL Corporation												23-2758192
			(Exact name of Registrant as specified in its charter)
			Pennsylvania
			645 Hamilton Street
			Allentown,						PA			18101
			(610)			774-5151
1-905			PPL Electric Utilities Corporation												23-0959590
			(Exact name of Registrant as specified in its charter)
			Pennsylvania
			827 Hausman Road
			Allentown,						PA			18104-9392
			(610)			774-5151

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐			Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐			Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐			Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐			Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol:			Name of each exchange on which registered
Common Stock of PPL Corporation			PPL			New York Stock Exchange
Junior Subordinated Notes of PPL Capital Funding, Inc.
2007 Series A due 2067			PPL/67			New York Stock Exchange
Corporate Units of PPL Corporation			PPLC			New York Stock Exchange

Indicate by a check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐			PPL Corporation
☐			PPL Electric Utilities Corporation
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐			PPL Corporation
☐			PPL Electric Utilities Corporation

Section 8 – Other Events

Item 8.01 Other Events

On March 13, 2026, PPL Electric Utilities Corporation ("PPL Electric") submitted a joint petition with the Pennsylvania Public Utility Commission ("PUC") reflecting its previously announced settlement (the "Settlement") to resolve all issues in PPL Electric's base rate proceeding. The Settlement was supported or not opposed by the majority of intervening parties, with limited objections raised by two parties focused solely on certain large net metering customer classification provisions. The Settlement is subject to PUC approval, with a decision expected before the end of the second quarter of 2026.

If approved as proposed, the Settlement would authorize an annual electric base distribution revenue increase of approximately $275 million, compared to PPL Electric's filed request of approximately $356 million. The Settlement does not stipulate a return on equity or capital structure. The Settlement is based on a fully projected future test year ending June 30, 2027. Rates are proposed to take effect for service rendered on and after July 1, 2026. The Settlement includes a provision generally limiting further changes to distribution base rates for two years following the effective date, subject to the Settlement's terms.

Below is a summary of several additional key stipulations of the Settlement.

Distribution System Improvement Charge (DSIC) Reset and Related Capital Recovery

The Settlement provides for DSIC eligible capital investment (and associated depreciation and tax effects) to be rolled into base rates, consistent with PPL Electric's proposal, and for the DSIC to be reset to 0%, capped at 5.0% of annual distribution revenues, upon implementation of new base rates. For DSIC purposes, PPL Electric would use the equity return rate for electric utilities contained in the PUC's most recent Quarterly Report on the Earnings of Jurisdictional Utilities.

Storm Cost Recovery

The Settlement supports updates to PPL Electric's Storm Damage Expense Rider (SDER) framework to align storm cost recovery with expected expense levels and mitigate earnings volatility associated with severe weather events. The Settlement sets the expense from reportable storms recovered through base rates for the SDER at $32 million annually beginning July 1, 2026, an increase from $20 million. To the extent eligible reportable storm expenses are above or below this level, over or under collections would be addressed through the SDER during the applicable recovery period.

Capitalization of Information Technology Upgrades

The Settlement supports capitalization of Information Technology (IT) upgrades for planned system implementations and infrastructure costs for shared IT platforms. The total cost of these projects is approximately $54 million, inclusive of Allowance for Funds Used During Construction ("AFUDC") through the Fully Projected Future Test Year.

New Large Load Tariff with Support for Residential Low-Income Program

The Settlement establishes a structured framework for serving large load customers (including data centers) that would support economic development while protecting existing customers from cost shifting. As part of compliance tariff filings, the Settlement supports adoption of a new LP-6 tariff schedule governing service to certain large load customers (including data centers), with applicability thresholds and conditions described in the Settlement. LP-6 customers would be required to enter into electric service agreements that include, among other terms, minimum contract term provisions, load ramp schedules, minimum load guarantee provisions, security for certain upgrade costs placed into transmission rate base (the "rate base security obligation"), and an exit fee mechanism. This new rate class would also provide $11 million in support for PPL Electric's residential low-income program. The Settlement also recognizes that related issues are pending in a separate statewide PUC proceeding regarding large load model tariffs and preserves rights to seek future modifications consistent with any final order in that proceeding.

Customer Service, Low Income, and Universal Service Commitments

The Settlement includes customer service and universal service enhancements, including updated training and customer communications. In addition, the Settlement provides for enhancements to Customer Assistance Program processes and customer notifications, an increase to the Low-Income Usage Reduction Program annual budget beginning January 1, 2027 of $1.5 million (to a total of $13.5 million) with a rollover mechanism for unspent amounts, and a waiver of reconnection fees for low-income customers beginning July 1, 2027.

The Settlement also contains agreed positions regarding certain other tariff, rate, regulatory accounting and other issues raised in the proceedings, as well as recommending approval of all remaining matters as requested by PPL Electric's rate request.

The Settlement, as well as matters raised by opposing intervenors, are subject to PUC review and action, including approval, denial or modification. There can be no assurance regarding the timing or outcome of the PUC's consideration.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d)

Exhibits

99.1 -

Press release dated March 13, 2026 announcing PPL Electric Utilities Corporation's filing of a joint petition for non-unanimous settlement with the Pennsylvania Public Utility Commission.

104

Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document).

Cautionary Statement on Forward-Looking Statements

Statements in this report regarding future events and their timing, including statements as to future costs or expenses, regulation, corporate strategy and performance, are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation and PPL Electric believe that the expectations and assumptions reflected in these forward-looking statements are reasonable, these expectations, assumptions and statements are subject to a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: subsequent phases of rate proceedings and regulatory cost recovery; market demand and prices for electricity; political, regulatory or economic conditions in states and regions where PPL Electric conducts business and final negotiated terms and conditions in any prospective contracts. All forward-looking statements should be considered in light of these important factors and in conjunction with PPL Corporation's and PPL Electric's Form 10-K and other reports on file with the U.S. Securities and Exchange Commission.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

			PPL CORPORATION
			By:			/s/ Marlene C. Beers
						Marlene C. Beers Vice President and Controller
			PPL ELECTRIC UTILITIES CORPORATION
			By:			/s/ Marlene C. Beers
						Marlene C. Beers Vice President and Controller

Dated:  March 13, 2026

Exhibit 99.1
news release
www.pplnewsroom.com

Contacts: For news media 610-774-5997, pplnews@pplweb.com
PPL Electric Utilities

PPL Electric Utilities reaches settlement in first distribution rate increase since 2016

If approved by the PUC, increase would support continued enhancements in reliability and further support vulnerable customers.

ALLENTOWN, Pa. (March 13, 2026) – PPL Electric Utilities announced today that it has submitted a joint petition for non-unanimous settlement to the Pennsylvania Public Utility Commission (PUC) requesting approval for an increase in base distribution rates. This proposed adjustment aims to support ongoing investments in a safe, reliable and resilient electric system, while maintaining a strong commitment to customer affordability and service. If approved, this would mark the company’s first base distribution rate increase since 2016.

Parties to the settlement include a large and diverse group of stakeholders, including low-income, residential and business consumer advocates. Only two parties raised limited objections, which are confined to certain provisions regarding large net metering customer classification.

The settlement provides for an increase in the annual base distribution revenues of $275 million to strengthen system reliability, improve customer service and affordability, and support vital investments for future growth. The settlement includes important provisions to help ensure the delivery of safe, dependable electric distribution service, while fostering the economic competitiveness of the communities served by PPL Electric Utilities. Investments supported include:

•Delivering greater reliability and resilience for customers by replacing aging infrastructure with stronger poles and equipment, installing animal, avian and lightning guards, enhancing tree trimming and removal intended to reduce outages, and expanding advanced smart grid technologies that accelerate restoration and improve service.

•Enhancing support for vulnerable customers by increasing hardship fund bill credits, improving access to assistance programs, eliminating reconnection fees, streamlining return of security deposits and boosting the annual low-income weatherization budget.

•Supporting small businesses by mitigating cost impacts of net-metered distributed generation and providing flexible payment options.

•Creating a new large load customer rate class and electric service tariff with a 10-year load and financial commitment. This new rate class will provide $11 million in support for the residential low-income program, helping reduce costs for residential customers, and includes safeguards to manage increased demand from large load customers.

If approved by the PUC, the settlement agreement would result in the following customer bill increases, based on estimated total bills using rates effective Jan. 1, 2026:

•Residential customers using 1,000 kilowatt-hours per month could see their total bill increase by about $7.42.

•Commercial customers using 1,000 kWh and 3 KW per month could see their total bill increase by $4.64 per month.

•Industrial customers using 150,000 kWh and 500 KW per month could see their total bill increase by about $382.63.

As part of the settlement, PPL Electric Utilities will not increase distribution base rates for two years from the effective date of the new rates. If approved, new distribution base rates would go into effect July 1, 2026.

More information

The rate review filing, including settlement, is available on PPL Electric Utilities’ website at pplelectric.com/rateinfo.

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, Twitter and Instagram for energy efficiency tips, bill help information, guidance on shopping for an electricity supplier, storm updates and more.

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Note to Editors: Visit our media website at www.pplnewsroom.com for additional news and background about PPL Corporation.

FAQ

What did PPL (PPL) announce regarding its Pennsylvania electric distribution rates?

PPL Electric Utilities filed a settlement with Pennsylvania regulators seeking an annual base distribution revenue increase of about $275 million. This would support reliability investments, storm cost recovery and customer assistance enhancements, and would be the first base distribution rate increase since 2016 if approved.

How does the PPL (PPL) settlement affect customer bills if approved?

If regulators approve the settlement, residential customers using 1,000 kWh per month could see bills rise about $7.42. Comparable commercial customers could see an increase of $4.64 per month, while industrial customers using 150,000 kWh and 500 kW may see an increase of about $382.63 monthly.

When would PPL Electric’s proposed new rates take effect and for how long are they stable?

New base distribution rates are proposed to start on July 1, 2026, based on a future test year ending June 30, 2027. The settlement generally limits further changes to distribution base rates for two years after the effective date, providing a defined period of rate stability for customers.

What storm cost and infrastructure investments are included in PPL (PPL)’s settlement?

The settlement raises storm damage expense recovered through base rates to $32 million annually, up from $20 million, under the Storm Damage Expense Rider. It also supports about $54 million of capitalized information technology upgrades and continued infrastructure work to strengthen reliability and resilience of the electric grid.

How does the PPL Electric settlement address large load customers and low-income support?

The agreement creates a new LP-6 tariff for large load customers, including data centers, with minimum contract terms, load guarantees and exit fees. This rate class would contribute $11 million to PPL Electric’s residential low-income program, helping expand assistance while managing cost shifts to other customers.

Is the PPL (PPL) rate settlement final or still pending approval?

The settlement is not final and remains subject to review by the Pennsylvania Public Utility Commission. The commission can approve, deny or modify the agreement, and a decision is expected before the end of the second quarter of 2026, so actual outcomes may differ from the proposal.

Filing Exhibits & Attachments

5 documents

Press Releases

• EX-99.1 EX-99.1 12.2 KB

Other Documents

• EX-101 XBRL TAXONOMY EXTENSION SCHEMA DOCUMENT 5.9 KB
• EX-101 XBRL TAXONOMY EXTENSION DEFINITION LINKBASE DOCUMENT 19.4 KB
• EX-101 XBRL TAXONOMY EXTENSION LABEL LINKBASE DOCUMENT 37.3 KB
• EX-101 XBRL TAXONOMY EXTENSION PRESENTATION LINKBASE DOCUMENT 20.1 KB