Investing in a stronger, more reliable future for you

Investing in a stronger, more reliable future for you

Last month, the Pennsylvania Public Utility Commission approved a settlement resolving our distribution rate review. Here’s what that means for you and what we’re doing to invest in the system, improve reliability and enhance customer support. 

Strengthening reliability 

We’re making targeted investments to deliver the reliable service you depend on – especially during severe weather.

  • Building a stronger distribution system to better withstand extreme weather: Replacing aging infrastructure, adding stronger poles, pole-top equipment and wires and installing additional animal, avian and lightning guards. 
  • Reducing tree-related outages: Enhancing tree trimming and removal, including addressing diseased and dying trees both on and off our rights-of-way.  
  • Expanding next-generation smart grid technologies: Expanding advanced automation to accelerate restoration and reduce outages, and data analytics to inform smarter business decisions that deliver the greatest value. 

Supporting our customers 

We are continuing to expand programs designed to help. 

  • Expanding low-income assistance and enhancing screening for eligibility. 
  • Removing reconnection fees for income-eligible customers. 
  • Continuing to offer flexible payment arrangements, energy-saving tools and programs to help you manage your bill. 

Protecting customers as demand grows 

As demand increases across our region, we’re taking steps to ensure residential customers are protected. Large energy users, like data centers, will be required to make long-term financial commitments so system costs are not shifted to customers like you. 

That includes new funding to support low-income assistance programs, helping reduce costs for residential customers over time.

As part of the decision, we have established a new large-load customer rate class designed to support system growth while protecting existing customers. The new rate class includes binding long-term financial and usage commitments, with a minimum 10-year requirement for large users such as data centers, helping ensure infrastructure costs are paid by the large load customers and not inappropriately shifted to other customers. 

Beginning in 2027, we’ll be assigning $11 million annually in low-income program assistance to these large-load customers through a non-bypassable charge — reducing costs for residential customers. 

Implementation and impact 

New rates will take effect July 1, 2026. For residential customers using 1,000 kWh, the expected total bill change will be approximately $6.48 per month. For commercial customers using 1,000 kWh and 3 kW, the expected total bill change will be approximately $4.08 per month.

As part of the approved decision, we will not increase distribution base rates for at least two years following implementation. This is our first base rate increase since 2016 and demonstrates our commitment to managing costs and providing the reliable electric service you depend on. 

We understand any increase in your bill can be a challenge. We’re committed to managing costs while continuing to deliver safe, reliable service. 

For more information on the filings and approved settlement, visit pplelectric.com/RateInfo.

We’ve reached a settlement in our first distribution rate request since 2016

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 growthLargeload 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 lowincome 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.