PPL Electric urges customers to prepare for price hike

ALLENTOWN, Pa. — PPL Electric is encouraging its customers to prepare for an impending increase in their bills.

On June 1, new price to compare (PTC) rates take effect. The PTC is the price per kilowatt hour (kWh) an electric distribution company charges customers who do not choose a third-party supplier.

PPL’s rate will increase from 10.77 to 12.49 cents per kWh for residential customers, a nearly 16% jump. For small business customers, the rate will increase from 10.45 to 12.11 cents per kWh.

According to the Pennsylvania Public Utility Commission (PUC), the PTC averages 40%-60% of a customer’s total utility bill.

PPL is encouraging customers to take advantage of the tools and programs it offers to help manage energy costs, and to shop for a competitive supplier.

In Pennsylvania, regulated utilities like PPL Electric are prohibited from owning electric generation. Electricity is purchased through a series of competitive auctions through power grid operator PJM.

According to PPL, costs are being driven higher by several factors, including the retirement of older power generating plants and limited new generation supply being added to the PJM market. 

PPL Electric said it directly passes generation supply costs to non-shopping customers without any markup or profit. 

“We continue to advocate for long-term policy reforms that can bring more stability to electricity supply and contribute to lower overall electricity prices for our customers, including allowing regulated utilities to invest in electric generation on behalf of our customers,” said PPL Electric President Christine Martin, in a news release. “We foreshadowed an increase of this nature in multiple and widespread communications following the steep price increases in PJM’s July 2024 capacity auction. What we anticipated would happen is now, unfortunately, becoming reality.”