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.