PPL Electric Utilities Corporation Settlement on Base Rate Increase

PPL Electric Utilities has submitted a joint petition for a non-unanimous settlement with the Pennsylvania Public Utility Commission (PUC) regarding its base rate proceeding. The settlement, supported by most intervening parties, proposes an annual electric base distribution revenue increase of approximately $275 million, lower than the initially requested $356 million. Key aspects include rolling Distribution System Improvement Charge (DSIC) eligible capital investment into base rates, resetting the DSIC to 0% upon implementation of new rates, and updating the Storm Damage Expense Rider (SDER) framework to $32 million annually. The settlement also supports the capitalization of $54 million in Information Technology upgrades and establishes a new large load customer tariff (LP-6) to support economic development while providing $11 million for the residential low-income program. Enhancements to customer service, low-income programs, and universal service commitments are also included, with a waiver of reconnection fees for low-income customers. The settlement includes a provision limiting further distribution base rate changes for two years post-implementation. Rates are expected to take effect July 1, 2026, with a PUC decision anticipated before the end of Q2 2026.