Press Release

PUC Approves Settlement for Lower Rate Increases than Requested by PPL

Published on 12/16/2010

Filed under: Electric

HARRISBURG – The Pennsylvania Public Utility Commission (PUC) today voted to approve a settlement for a lower rate increase than requested by PPL Electric Utilities Inc.

The Commission voted 4-1 to approve a motion by Commissioner John F. Coleman Jr. that approved the settlement and adopted the Recommended Decision with one modification. Chairman James H. Cawley issued a partial dissenting statement on the rate design issue in the case. Commissioner Wayne E. Gardner also dissented in part on the rate design issue. Vice Chairman Tyrone J. Christy dissented on the purchase of receivables portion of the motion.

The settlement was agreed to by the formal parties in the case including the company, the Office of Consumer Advocate, the Office of Small Business Advocate and the PUC’s Office of Trial Staff.

According to the settlement, the company will increase rates by $77.5 million (1.62 percent). The company’s original proposal asked for a $114 million (2.4 percent) increase.

According to the settlement, the total monthly bill for the average customer using 1,000 kWh will increase $5.06 from $128.16 a month to $133.22 (4 percent). Under the company’s original proposal, the total monthly bill for the same customer would have increased to $135.55 (5.8 percent). The new distribution rates go into effect Jan. 1, 2011.

 This increase will affect the distribution portion of customers’ bills and is not related to the expiration of rate caps on the generation portion of the bills. The expiration of the generation portion of the bill was determined during the 1997 restructuring of the electric industry. Additional information on the changes in generation rates and information on how to shop for electricity can be found at www.papowerswitch.com.

PPL provides electricity to approximately 1.4 million customers in 29 counties in central and eastern Pennsylvania.

More information on the ratemaking process is available on the Commission’s website.

The Pennsylvania Public Utility Commission balances the needs of consumers and utilities to ensure safe and reliable utility service at reasonable rates; protect the public interest; educate consumers to make independent and informed utility choices; further economic development; and foster new technologies and competitive markets in an environmentally sound manner.

For recent news releases, audio of select Commission proceedings or more information about the PUC, visit our website at www.puc.state.pa.us.

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Docket No. R-2010-2161694

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