Allentown-based PPL Electric Utilities (PPL Electric) announced Friday that they have reached an agreement to reduce the company’s transmission rates and lower customer bills.
The agreement between PPL Electric and a group of industrial and municipal customers would reset the base return on equity for PPL’s transmission formula rate from 11.18 percent to 9.9 percent, which would save the typical residential customer about $1.54 on their monthly bill over a 12-month period. The typical business customer would see about a $2.15 savings. If the agreement is approved by the Federal Energy Regulatory Commission, PPL Electric customer should see the savings in their bills on Dec. 1, 2021.
“We’re committed to keeping the lights on for customers at a reasonable cost,” PPL Electric President Steph Raymond said. “Because of our forward-thinking investments, we have one of the most reliable grids, and our customers continue to pay below the average rate for the mid-Atlantic region.”
The transmission rate is a component of the supply charge listed on customer bills, and PPL Electric passes those savings on to customers who choose PPL’s Price to Compare service. Suppliers, however, are not required to do the same. Customers who have chosen an energy supplier should contact their supplier to confirm the lower transmission rate will be reflected in their bill, PPL Electric officials said.
PPL Electric provides electric delivery service to more than 1.4 million homes and businesses in Pennsylvania and is ranked among the best utility companies in the U.S. for customer service and reliability.