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PUC approves PPL rate hike

By , - Last modified: December 10, 2012 at 10:53 AM

The state Public Utility Commission voted last week to allow PPL Electric Utilities Corp. to raise its rates.

The commissioners voted 4-1 Wednesday to allow PPL a return on common equity of 10.4 percent. The PUC calculates that the average residential bill for PPL customers will increase from $111.60 to $116.37, or 4.3 percent, PUC spokeswoman Denise McCracken said.

PUC staffers are preparing an order implementing the commissioners' vote. Once the order is entered, PPL should submit a tariff for approval within 30 days, McCracken said. New rates would go into effect once that is approved, but she could not say exactly when.

A call to PPL was not immediately returned.

The PUC's decision answers a request PPL made in March for rate increases totaling $104.6 million a year in order to fund infrastructure improvements, storm repair and consumer education.

The increase granted by the PUC will generate $71.1 million a year, or 68 percent of the requested amount, McCracken said.

PPL distributes electricity produced by other companies and also is the default provider for customers who do not choose a supplier on the competitive market. Generation fees account for two-thirds of a typical bill, the company said.

Based in Allentown, PPL serves about 1.4 million customers in Pennsylvania, including more than 430,000 in the midstate.

Editor's note: This story was updated at 4:35 p.m. to add new details provided by the PUC.

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