We’ve reached a settlement in our first distribution rate request since 2016
Earlier this month, we submitted a joint petition for non-unanimous settlement to the Pennsylvania Public Utility Commission (PUC) requesting approval for an increase in base distribution rates. The proposed settlement reflects months of public review and compromise, ensuring customers receive safe, reliable electric service while maintaining strong protections for affordability.
What does this mean for you?
We know any increase to your electric bill matters. That’s why we’re committed to operating efficiently and supporting you with a variety of resources. In fact, this is our first request to change distribution rates since 2016 — while managing our expenses nearly 25% below the rate of inflation. The result: we held the line on customer costs in a way that very few utilities in this country can point to.
If approved, this settlement includes investments in a stronger system, enhanced assistance for vulnerable customers, expanded payment flexibility and a two-year pause on additional base rate increases.
See how these smart investments are set to boost your service and make your power more reliable:
- Building a stronger electric system: We’re planning targeted investments — stronger poles, upgraded wires, smart grid technology — designed to reduce outages and restore power faster in the future as severe weather intensifies. These improvements help avoid higher costs over time by reducing damage and disruptions.
- Expanding assistance for customers who need it most: We’re expanding support for vulnerable customers by increasing hardship fund bill credits, improving access to assistance programs, eliminating reconnection fees, streamlining the return of security deposits and boosting the annual low-income weatherization budget.
- Supporting responsible large load growth: Large‑load customers, such as data centers, place unique demands on the system. A new large-load rate class ensures our large users make long-term financial and usage commitments to protect other customers from additional infrastructure costs, while also providing $11 million in annual support for low‑income residential customers.
- Adding small business protections: We plan to mitigate cost impacts of net-metered distributed generation and introduces new, flexible payment options for small businesses.
Together, these measures are intended to balance necessary system improvements with protections that help customers manage costs.
Our commitment to accountability
We know you work hard for your money and affordability and reliability remain core priorities for us. The PUC closely reviews and monitors how utilities invest customer dollars, and this settlement includes additional reporting and establishes service expectations to ensure you see real improvements and benefits.
We are committed to operating efficiently, managing costs responsibly and being transparent about the outcomes customers can expect from these investments.
For more information and to review the entire settlement, visit pplelectric.com/RateInfo.