01—Abstract
Summary
Summary of the 8-K filed September 30, 2025. Cited figures are marked; the original filing is the authoritative source.
On September 30, 2025, PPL Electric Utilities Corporation filed a request with the Pennsylvania Public Utility Commission (PUC) for an increase in distribution base rates, expected to take effect July 1, 2026.
The petition requests an increase in annual base rate distribution revenue of approximately $356 milliona, which would raise the company's total annual revenue by about 8.6%. The request is based on a fully projected future test year of July 1, 2026 through June 30, 2027 and a requested authorized return-on-equity of 11.3%. The filing is made under PUC Docket No. R-2025-3057164.
The company states that the increase is intended to fund ongoing grid investments, including stronger poles and wire, comprehensive tree trimming, advanced automation, smart grid technologies and customer service system improvements. The press release accompanying the filing says the company's last distribution base rate change occurred on January 1, 2016, and that more than $50 millionb of the requested amount is already reflected in customer bills, making the net requested increase just over $300 million. The release states that for a residential customer using 1,000 kWh per month, the change would add about $13 a month.
The company states it cannot predict the outcome of the proceeding and anticipates a PUC ruling during the second quarter of 2026. The filing is a Regulation FD disclosure, and the press release is furnished as Exhibit 99.1 rather than filed.
02—Key points
Key Highlights
- Rate request of approximately $356 million in annual base distribution revenue, an increase in total annual revenue of about 8.6%.
- Requested authorized return-on-equity of 11.3% on a fully projected future test year covering July 1, 2026 through June 30, 2027.
- Expected effective date of new rates is July 1, 2026, with a PUC ruling anticipated in the second quarter of 2026.
- More than $50 million of the requested increase is already reflected in customer bills, making the net requested increase just over $300 million.
- The company's last distribution base rate change occurred January 1, 2016; the request is described as its first distribution base rate request in a decade.
- Operating and maintenance expenses have increased by only 7.4% nominally since 2015, which the company states is nearly 25% below inflation over that period.
- Proposed impact of about $13 per month for a residential customer using 1,000 kWh per month.
03—Questions
Frequently Asked Questions
How much rate increase did PPL Electric Utilities request?
The petition requested an increase in annual base rate distribution revenue of approximately $356 million, which would increase the company's total annual revenue by about 8.6%. More than $50 million is already reflected in customer bills, so the net requested increase is just over $300 million.
When would the new rates take effect and when is a decision expected?
The company expects new rates to become effective July 1, 2026, based on a fully projected future test year of July 1, 2026 through June 30, 2027. The company anticipates a ruling from the PUC during the second quarter of 2026.
What return on equity is the company requesting?
The petition requests an authorized return-on-equity of 11.3%. The company states it cannot predict the outcome of the proceeding.
What will the increase fund?
According to the press release, the funding would support grid strengthening and modernization against severe weather and cyber threats, including tree trimming and stronger poles and wire, smart grid technologies such as advanced automation, and improvements to customer service systems and self-service options.
How would the increase affect customers?
The press release states that, pending approval, the change would add about $13 a month, or 43 cents a day, for a residential customer using 1,000 kilowatt-hours a month. For a typical commercial customer using 1,000 kWh and 3 kW per month, the increase would be about $8 per month, and for a typical industrial customer using 150,000 kWh and 500 kW per month, about $514 per month.
04—Continue