Brace Yourselves: Understanding the June 2025 PPL Rate Hike

Pennsylvania residents in the PPL service area are facing a significant change in their energy bills in the near future. After a rate increase that went into effect December 2024 a second approved rate hike will lead to increased costs for most homeowners and businesses. Understanding the details of this change, the reasons behind it, and the available options to mitigate its impact are crucial for managing your household budget effectively.

Breaking Down the Rate Increase

The Pennsylvania Public Utility Commission (PUC) has approved a rate increase for PPL, effective June 1, 2025. The new Price to Compare (PTC), which is the rate you would use when considering offers from other electricity suppliers, will increase approximately 16% to 12.491¢ per kWh for the period from June 1, 2025, through November 30, 2025, from the current rate of 10.771¢ per kWh.

So, what does this mean for your monthly bill? For a typical residential customer using around 1,000 kilowatt-hours (kWh) per month, this rate hike translates to an estimated increase of about $22 to $28 per month. It’s essential to note that your actual increase will depend on your individual energy usage. Customers who use more electricity will see a larger increase in their bills.

For the most current information and to confirm any rate quotes, we also recommend checking PPL’s official Price to Compare page.

Why the Hike? Understanding the Contributing Factors

Several factors have contributed to this upcoming rate increase. Including an announcement in June 2024, by the PJM Interconnection, which manages the grid for the mid-east region, had a capacity auction that resulted in pricing 833% higher than the prior year. The capacity cost increase means a 10-20% increase in Pennsylvania residential electricity bills and up to a 29% increase for businesses starting in June 2025.

The rising cost of natural gas, which is a significant fuel source for electricity generation, has been volatile and has generally trended upwards. These higher fuel costs are directly passed on to consumers.

PPL has been making investments in upgrading and maintaining its transmission and distribution infrastructure. These investments are necessary to ensure the reliability and safety of the electricity grid, but the costs associated with them are recovered through customer rates.

Help is Available: Programs for Bill Assistance

If you are concerned about your ability to pay your electricity bills, several programs are available to provide assistance:

• LIHEAP (Low-Income Home Energy Assistance Program): This federal program helps eligible low-income households with their heating and cooling costs. You can find information and application details on the Pennsylvania Department of Human Services website.
• Customer Assistance Program (CAP): PPL offers its own CAP program, which provides eligible customers with a reduced monthly bill based on their income and energy usage. Contact PPL directly to inquire about eligibility and enrollment.
• Operation HELP: This program, also administered by PPL, provides emergency energy assistance grants to customers facing a temporary financial hardship.
• 211 Helpline: By calling 211, you can connect with health and human service programs, including energy assistance, in your area.

Empower Yourself: Ways to Lower Your Energy Usage

Taking proactive steps to reduce your energy consumption can help offset the impact of the rate increase. Here are some practical tips:

• Adjust Your Thermostat: Lowering your thermostat a few degrees in the winter and raising it a few degrees in the summer can significantly reduce your heating and cooling costs. Consider using a programmable or smart thermostat to automate these adjustments.
• Unplug Electronics: Many electronics continue to draw power even when they are turned off (often referred to as “phantom load”). Unplug devices like phone chargers, TVs, and computers when they are not in use, or use power strips and turn them off.
• Switch to LED Lighting: LED bulbs are significantly more energy-efficient than traditional incandescent or CFL bulbs, and they last much longer, saving you money in the long run.
• Seal Drafts: Check for drafts around windows and doors and seal them with weather stripping or caulk. This will prevent heated or cooled air from escaping.
• Use Energy-Efficient Appliances: When it’s time to replace appliances, look for Energy Star-certified models, which meet strict energy efficiency guidelines.
• Wash Clothes in Cold Water: Heating water accounts for a significant portion of your energy usage. Switching to cold water washes can save you money.
• Limit Hot Water Usage: Take shorter showers, fix leaky faucets, and consider installing low-flow showerheads and faucet aerators.

Tips to Explore and Secure a Fixed-Rate Plan

1. Explore the PA Power Switch Website: The PA Power Switch website operated by the Pennsylvania Public Utilities Commission offers a comprehensive marketplace with potentially hundreds of competing energy offers. While this provides a wide array of choices, navigating through numerous plans and determining the best supplier for your specific needs can sometimes feel overwhelming.
2. Simplify Your Search with ElectricityRates.com: ElectricityRates.com offers a secure, fast, and simple process designed to streamline your rate comparison experience. We present you with only the best rates from top-rated and trusted electricity suppliers serving Pennsylvania, saving you time and effort in your search for the ideal plan.
3. Shop Directly Through Supplier Websites: You also have the option to visit individual energy suppliers’ websites. However, keep in mind that you will only see the plans offered by that specific supplier, requiring you to visit multiple websites to get a broader view of the competitive landscape.

The upcoming PPL rate hike will undoubtedly impact household budgets. By understanding the reasons behind the increase, exploring available assistance programs, implementing energy-saving strategies, and utilizing resources like ElectricityRates.com to compare supplier options, you can effectively manage your energy costs and navigate this change. Stay informed about future energy updates and continue to explore ways to manage your energy consumption.