BETHLEHEM, Pa. — Electricity prices have risen about twice as fast as inflation over the past year, and the climb continues.
Across the country, households are paying significantly more to keep the lights on, as utilities invest in aging infrastructure, grid modernization and climate resilience.
According to U.S. Bureau of Labor Statistics, the average cost of electricity for American consumers jumped roughly 5.5% over the past 12 months, compared to a 2.7% rise in overall inflation.
The increase follows several years of elevated energy costs, driven by higher fuel prices, supply constraints, and increased demand during record-breaking heat waves and cold snaps.
Now, it’s likely to get even more expensive for Lehigh Valley residents.
First rate request since 2016
PPL Electric Utilities this week filed its first distribution base rate request in a decade, seeking approval from the state Public Utility Commission for an 8.6% increase in annual revenue — about $356 million.
The company said the rate adjustment is needed to “build and maintain a stronger, smarter and more resilient electric grid” amid increasingly severe weather and rising costs of materials and maintenance.
"We’re requesting a rate adjustment to support these necessary improvements and help ensure power stays on, especially as severe weather becomes more common.”Christine Martin, president of PPL Electric Utilities
"We understand that rising costs of living and affordability matter to every family and business we serve,” PPL Electric Utilities President Christine Martin said in a news release.
"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."
The proposed increase would add about $13 a month for a typical residential customer using 1,000 kilowatt-hours per month.
Commercial customers would see an average rise of $8 a month, and industrial users would pay about $514 more a month.
The company’s last distribution base rate change took effect in January 2016. Since then, PPL said it has held operating and maintenance expenses below inflation while investing heavily in reliability upgrades.
The company’s advanced smart grid, it said, already prevented more than 3 million outages, including more than a half million so far in 2025.
"With nearly 47,000 miles of distribution lines, 1 million poles, hundreds of substations, and thousands of pieces of equipment, costs are rising to maintain and upgrade these essential services," Martin said.
"We’re requesting a rate adjustment to support these necessary improvements and help ensure power stays on, especially as severe weather becomes more common.”
In 2024, a wide-ranging audit by the PUC made 19 recommendations for PPL to improve its operations.
We're not alone
The rise in local energy costs mirrors national trends.
Utilities across the country — from California to New England — have sought similar increases, citing surging costs for equipment, labor and more.
In some regions, electric bills are projected to climb 10% to 15% more by 2026, according to reports, as power companies accelerate their transition to renewable energy and reinforce grids to handle extreme weather.
For now, PPL’s rate request is under review with the PUC, which may approve it as filed, approve it in part or deny it.
If approved, new rates would take effect July 1, 2026.
In almost every case, the approved rate increase is usually smaller than what the utility originally requested.
The filing, including supporting documents, is available on the company’s website at pplelectric.com/RateInfo and through the Pennsylvania Public Utility Commission.
Customers can contact PPL toll-free at 1-800-342-5775 for more information.
Understanding Your Electric Bill: Distribution vs. Supply
Distribution (Delivery)
- Covers the cost of delivering electricity to your home and includes poles, wires, transformers, substations, and maintenance
- Is set and regulated by the Pennsylvania Public Utility Commission
- Is determined by where you live and is not something you can choose
- When PPL requests a rate increase, they’re talking about this part of your bill
Supply (Generation)
- Covers the actual electricity you use and is the cost of generating or purchasing power
- You can shop for a supplier on the PA Power Switch website
- The utility’s default supply rate, called the “Price to Compare,” changes twice a year (June and December) based on wholesale market prices
The current PPL Price to Compare for residential customers is 12.491 cents per kWh, effective from June 1 to Nov. 30, 2025.
