PPL Electric customers face 16% rate increase starting June 1

LEHIGH VALLEY, Pa. — PPL Electric Utilities is urging customers to prepare for higher electricity bills starting June 1. Typical households will see their electric bills rise by $22 to $28 a month as residential supply rates increase by 16%.

The utility’s default residential supply rate will rise to 12.491 cents per kilowatt-hour, up from the current 10.771 cents. Small business rates will increase to 12.114 cents per kWh.

This marks the second rate hike in six months. The previous increase took effect Dec. 1.

The rate increase is attributed to rising capacity costs within the PJM Interconnection grid, a regional transmission organization that coordinates electricity for Pennsylvania and other mid-Atlantic states, as well as increased natural gas prices and infrastructure investments.

PPL is prohibited from generating its own electricity under state law. Instead, it purchases power for customers who do not choose their own energy supplier.

PPL buys this electricity through competitive auctions to try to get the best prices over time. Whatever PPL pays in these auctions is passed directly to those customers.

“While PPL Electric doesn’t generate electricity or control electric generation supply prices, we understand that our customers look to us for guidance and support,” said Christine Martin, president of PPL Electric, in a news release.

“That’s why we’re committed to delivering safe, reliable service — and helping customers better understand their electric bill, reduce energy use and make informed decisions to manage their energy costs.”

PPL is offering several support options to help customers manage rising electricity costs. These include payment plans, energy-saving rebates and financial assistance programs for those who qualify based on income.

Customers can shop for lower rates from third-party suppliers through PAPowerSwitch, a site run by the Pennsylvania Public Utility Commission.

Martin said PPL plans to continue advocating for “long-term policy reforms” to bring more stability to electricity supply and lower overall prices.

“We foreshadowed an increase of this nature in multiple and widespread communications following the steep price increases in PJM’s July 2024 capacity auction,” Martin said. “What we anticipated would happen is now, unfortunately, becoming reality.”