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PPL Electric Utilities, based in Allentown, Pennsylvania, will raise its generation supply price by about 15% starting June 1. The rate hike will increase the "Price to Compare" from 10.771¢ per kWh to 12.490¢ per kWh for residential customers. This change is expected to raise monthly bills by approximately $22 to $28 for typical users consuming around 1,000 kWh per month, depending on individual energy usage.
PPL Electric President Christine Martin explained that the rate increase is due to steep price hikes in the PJM Interconnection's capacity auction last year. PJM, which manages the grid for the mid-east region, announced an 833% increase in capacity pricing in June 2024. This has led to a 10-20% rise in residential electricity bills across Pennsylvania.
The utility company emphasizes that it does not profit from the generation supply costs, as these are directly passed on to customers. PPL encourages customers to explore bill assistance programs or consider switching to a different energy supplier for potentially lower rates. Customers can review their options on the Public Utility Commission’s website.
ElectricityRates.com report that PPL is committed to delivering reliable service and helping customers manage their energy costs through guidance and support. The company is also advocating for long-term policy reforms to stabilize electricity supply and lower prices.