PPL seeks rate hike as it threatens eminent domain for benefit of private business
KAYLEE LINDENMTUH / SHENANDOAH SENTINEL - The existing pole line PPL Electric Utilities says it wants to expand, seen on August 26, 2025.
ALLENTOWN – PPL Electric Utilities filed for a rate hike Tuesday, which they say would increase residential bills by about 7%.
This comes as the Lehigh Valley-based company is threatening to take property in the Conyngham Valley by eminent domain for the benefit of private business.
The rate increase, they claim, is “its first distribution base rate request in a decade” as “PPL Electric operating and maintenance expenses have increased by only 7.4% nominally since 2015.”
The distribution base rate differs from the “price-to-compare,” or the generation charge, which is currently sitting about 20% higher than in 2022 and at the second-highest rate since at least 2006. Customers can shop around for a better generation charge.
“We understand that rising costs of living and affordability matter to every family and business we serve, and we’ve been committed to keeping the costs we can control down,” Christine Martin, president of PPL Electric Utilities, said. “Over the past decade, we’ve deployed advanced technologies to operate more efficiently, invested responsibly in the grid and expanded assistance programs to support those who need help paying their energy bills.”
PPL says their distribution rates are among the lowest in the state and the increase is needed to maintain and upgrade utility lines “and help ensure the power stays on,” Martin said.
In a media release, the utility focuses heavily on severe weather reliability.
Though, the utility and its ongoing upgrade plans have generated controversy in lower Luzerne County. The utility is planning to replace a traditional telephone pole-esque pole line with a much larger line with poles averaging 200-feet tall.
According to a filing with PJM Interconnection, the upgrade is estimated to cost $80.5 Million.
“A customer has submitted a request to have their facility served from a 230kV source in Hazleton, PA,” PPL Electric Utilities told PJM regarding the project. The total facility load is approximately 1,980 MW (2033)”
They echo these comments in a submission to the Lehigh County Council.
“The proposed Sugarloaf Project is designed to meet the growing electricity demand in Luzerne County and support long-term economic development,” PPL told the council, which approved a resolution opposing the project.. “As you are aware, the greater Hazleton area continues to attract manufacturers and large power users, and we anticipate electricity demand in the region to grow significantly — up to 16 times current levels by 2030.”
The project has received swift opposition from residents and municipalities to no avail.
They have also committed to using eminent domain to take the land necessary for the pole line expansion.
“If we have not reached an agreement with a property owner from whom we need to acquire right-of-way, we will file an application with the Pennsylvania Public Utility Commission seeking authorization to use eminent domain,” PPL says in a recent FAQ document.
Although Pennsylvania law generally prohibits the use of eminent domain for private business, utilities like PPL Electric Utilities, a private company, are exempted to an extent.
If approved, PPL’s rate hike would bring in about $300 Million more in revenue for the utility.
For a typical residential customer, bills would increase by about $13 a month.
If approved, rates would become effective on July 1, 2026.
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