PPL Electric Proposes 5% Rate Increase in Pennsylvania

PPL Electric Utilities has submitted a joint petition for a non-unanimous settlement that would increase distribution rates by almost 5% this summer, pending approval from the Pennsylvania Public Utility Commission.

The settlement, announced on March 13, 2026, values the revenue increase at $275 million and includes the implementation of a data center tariff.

This proposal represents a reduction from the company’s initial request. In September 2025, PPL Electric Utilities filed notice of its intention to increase rates to generate an annual revenue increase of $356.3 million.

The initial proposal would have raised the average residential bill by roughly 7%.

Regulatory Timeline and Investigation

On October 23, 2025, the Pennsylvania Public Utility Commission voted to suspend and investigate the original $356 million rate increase request for electric distribution services.

During the investigation period, the proposal faced opposition from community members and elected officials. During a public input hearing held on December 8, 2025, at the University of Scranton, residents urged the commission to reject the rate hike.

One attendee, Jermyn resident Jordan Moran, described the financial pressure on consumers, stating, My thermostat is at 60 degrees, and my PPL bill is still nearly 20% of my monthly income.

The settlement submitted on March 13, 2026, marks the first distribution rate increase requested by PPL Electric Utilities since 2016.

Operational Context

PPL Electric Utilities provides electricity to approximately 1.5 million customers across 29 counties in central and eastern Pennsylvania.

The finalized settlement now awaiting commission approval includes specific provisions for data center tariffs, alongside the general rate adjustment for the broader customer base.