Environmental Groups Help Secure Rate Protections for Pennsylvanians

Yesterday, the Pennsylvania Public Utility Commission approved the settlement in the rate filing submitted in September 2025 by PPL Electric Utilities Corporation. Environmental Defense Fund, Natural Resources Defense Council and PennFuture intervened in the case to advocate for reduction to the financial burden on Pennsylvania customers, including though use of grid-edge technologies, innovative rate designs and fair rules regarding future data centers. The environmental organizations ultimately achieved a joint settlement that took important steps toward achieving these goals and protecting customers as electricity demand grows across the Commonwealth. The settlement includes provisions that:

• Require large-load customers, including data centers, to pay for new infrastructure and system upgrades needed to serve their electricity demand.
• Establish rules for PPL’s contracts with large-load customers, including upfront payments, revenue guarantees, exit fees and minimum contract terms, to help protect other customers from future cost shifts.
• Require large-load customers to contribute approximately $11 million annually to PPL's low-income assistance programs.
• Commit PPL to work with stakeholders to develop new electric vehicle charging rates designed to encourage charging when electricity demand and costs are lower.
• Advance planning for improved management of distributed energy resources through development of a potential grid orchestration plan.

As Vice Chair Kimberly Barrow acknowledged, PPL has not increased its base rates in 10 years and much has changed in that time. This settlement ensures that people will have access to the reliable power they need, with protections against increased burdens driven by new large loads. 

Michael Zimmerman, Director & Senior Attorney of Clean Affordable Power, EDF, said “Today's decision demonstrates that Pennsylvania can support economic growth while protecting households and small businesses from unnecessary costs. By requiring large-load customers to contribute to the infrastructure they need and strengthening customer protections, the Commission has established an important model for managing rapid large-load growth.”

“With large load customers, including data centers, driving unprecedented growth in electricity demand, along with uncertain costs and consequences for everyday Pennsylvanians, it’s critical that regulators and utilities manage this growth responsibly. The PUC’s approval of this settlement agreement moves Pennsylvania in the right direction. NRDC, PPL, and all parties negotiated in good faith to arrive at a reasonable compromise that will allocate costs more fairly and set clear rules of the road in PPL’s service territory,” said Robert Routh, Pennsylvania Policy Director, Climate & Energy, NRDC

Emma Bast, Senior Attorney, PennFuture, said "Large load customers present a new set of challenges for the grid, but the Commission’s decision confirms that responsible development is possible, fairness can be applied to future data centers or other large load entities without harming progress, and everyday working people do not have to pay unsustainable costs for increased industry demand.  PennFuture applauds the Commission's decision and its encouragement for utilities to further develop critical consumer protections in the future.”