01—Abstract
Summary
Summary of the 8-K filed March 13, 2026. Cited figures are marked; the original filing is the authoritative source.
PPL Electric Utilities, a subsidiary of PPL Corporation, filed a Form 8-K on March 13, 2026 reporting that it submitted a joint petition to the Pennsylvania Public Utility Commission (PUC) reflecting a previously announced settlement resolving all issues in its base rate proceeding.
The settlement was supported or not opposed by most intervening parties, with limited objections from two parties focused on certain large net metering customer classification provisions. The settlement is subject to PUC approval, with a decision expected before the end of the second quarter of 2026. If approved as proposed, the settlement would authorize an annual electric base distribution revenue increase of approximately $275 milliona, versus PPL Electric's filed request of approximately $356 million.
The settlement does not stipulate a return on equity or capital structure and is based on a fully projected future test year ending June 30, 2027, with rates proposed to take effect July 1, 2026. It also generally limits further changes to distribution base rates for two years after the effective date.
The settlement includes several additional provisions: DSIC capital rolled into base rates with the DSIC reset to 0% (capped at 5.0% of annual distribution revenues), storm expense recovered through base rates for the SDER set at $32 millionb annually (up from $20 million), capitalization of approximately $54 million in IT upgrades, and a new LP-6 large load tariff for customers such as data centers, which would provide $11 million in support for PPL Electric's residential low-income program. The filing notes that all of these matters remain subject to PUC review, and there can be no assurance regarding the timing or outcome of the PUC's consideration.
02—Key points
Key Highlights
- PPL Electric submitted a joint petition for non-unanimous settlement to the PUC resolving all issues in its base rate proceeding; the settlement is subject to PUC approval, with a decision expected before the end of Q2 2026.
- Proposed annual electric base distribution revenue increase of approximately $275 million, compared with PPL Electric's filed request of approximately $356 million.
- No return on equity or capital structure is stipulated; the settlement uses a fully projected future test year ending June 30, 2027, with proposed rates effective for service on and after July 1, 2026.
- Distribution base rates are generally limited from further changes for two years after the effective date.
- DSIC eligible capital is rolled into base rates and the DSIC is reset to 0%, capped at 5.0% of annual distribution revenues; storm expense recovered through base rates for the SDER rises to $32 million annually from $20 million.
- New LP-6 large load tariff for customers including data centers, with minimum contract terms, load ramp schedules, minimum load guarantees, rate base security obligations and exit fees, providing $11 million for the residential low-income program.
- Low-Income Usage Reduction Program budget increases by $1.5 million to $13.5 million beginning January 1, 2027, and reconnection fees for low-income customers are waived beginning July 1, 2027.
03—Questions
Frequently Asked Questions
What rate increase did PPL Electric propose in the settlement?
If approved as proposed, the settlement would authorize an annual electric base distribution revenue increase of approximately $275 million, compared with the approximately $356 million PPL Electric originally requested.
When would the new rates take effect and when is a PUC decision expected?
Proposed rates would take effect for service rendered on and after July 1, 2026. A PUC decision is expected before the end of the second quarter of 2026. The filing notes there can be no assurance regarding the timing or outcome of the PUC's consideration.
Does the settlement have broad support?
The settlement was supported or not opposed by the majority of intervening parties. Only two parties raised limited objections, focused solely on certain large net metering customer classification provisions.
How does the settlement change storm cost recovery?
The settlement sets the expense from reportable storms recovered through base rates for the Storm Damage Expense Rider at $32 million annually beginning July 1, 2026, up from $20 million. Over or under collections relative to this level would be addressed through the SDER during the applicable recovery period.
What does the new LP-6 large load tariff require?
LP-6 would apply to certain large load customers, including data centers, and require electric service agreements with minimum contract terms, load ramp schedules, minimum load guarantees, security for certain upgrade costs placed into transmission rate base, and an exit fee mechanism. The tariff would also provide $11 million in support for the residential low-income program.
04—Continue