— Jeff Ward, Lehigh Valley News Briefs
PPL’s “default price” for electricity will go up Sunday.
The price the Allentown-based energy company charges will go up to 12.49 cents per kilowatt-hour, up from 10.771 cents. That’s a 16% increase. The company explains why in a May 1 statement, copied below.
PPL sets its “default” rate twice per year. It’s what people pay if they decide not to choose a supplier.
There are other options, though some customers don’t take advantage of them.
Consider, electricity is a commodity. It’s traded like other commodities, with spot and futures prices.
One kilowatt-hour is as good as the next, so electricity is a commodity, just as grains and metals are. Some people prefer it be generated cleanly, some don’t, but anybody’s power will keep the lights on. Sometimes green options are available at good prices, sometimes not.
Electricity is unique among commodities in one way, though. Wheat can be stored in silos, and copper in warehouses, but there is no way to store mass amounts of electricity.
As a result, the market can fluctuate a lot. Demand, the cost of fuel, sunlight, weather and other factors can affect the price.
The PPL default rate may not be the lowest available, but it is set for six months so it provides a baseline.
Customers who seek a better rate need only go to papowerswitch.com, a site set up by the Pennsylvania Utility Commission.
Enter your zip code. Select your energy supplier, in my case, PPL, then go to residential service for home use.
Then options appear. I always check off fixed rate, then no cancellation fee, no enrollment fee, no termination fee, and then, under “sort,” sort by price. That makes it simple.
There are several offers below the PPL rate, but check the length carefully. The lowest offers are usually for the shortest term.
Taking a short-term rate, then forgetting to shop again before it expires, can lead to a big increase in the kilowatt-hour price. The other risk is that prices will go up, but the PPL rate is set for six months so it can be a fallback position.
To make a switch, only your PPL account number is needed.
Give it a shot. You can shop around, but if you pick a two-month rate, set reminders. I usually change about 10 days before my rate expires, if not sooner. I check at least monthly and usually save compared to the default rate. By not committing to any fees, I can change as often as I wish.
Good luck.
Here is a link to PPL’s May 1 statement, and here’s what they said in a cut-and-paste version:
ALLENTOWN, Pa. (May 1, 2025) – Due to ongoing regional energy market conditions, electric generation supply prices are rising across Pennsylvania and the broader PJM Interconnection (PJM) region. As a result, the cost of generation supply that PPL Electric Utilities passes through to residential and small business customers will increase on June 1, 2025. The company is encouraging customers to take advantage of a wide range of tools and programs designed to help manage energy costs and keep monthly bills as predictable and reasonable as possible.
“While PPL Electric doesn’t generate electricity or control electric generation supply prices, we understand that our customers look to us for guidance and support,” said Christine Martin, president of PPL Electric Utilities. “That’s why we’re committed to delivering safe, reliable service — and helping customers better understand their electric bill, reduce energy use and make informed decisions to manage their energy costs.”
Why Generation Supply Prices Are Increasing
Electric generation supply costs are being driven higher by several regional market factors, including the retirement of older power generating plants and limited new generation supply being added to the PJM market. The PJM region encompasses a total of 13 states and Washington, D.C.
These challenges have contributed to rising electric generation supply prices that are affecting regulated utilities across the region and are leading to higher electric generation costs for Pennsylvanians. Under state law, PPL Electric Utilities is prohibited from owning electric generation and is required to purchase electricity on behalf of customers who do not choose a third-party supplier. This electricity is purchased through a series of competitive auctions designed to secure the least cost over time. PPL Electric directly passes these generation supply costs to non-shopping customers without any markup or profit.
New Price to Compare Effective June 1, 2025
PPL Electric’s Price to Compare (PTC), will go into effect on June 1, 2025:
Residential customers: 12.490¢/kWh (up from 10.771¢/kWh)
Small business customers: 12.114¢/kWh (up from 10.446¢/kWh)
Resources to Help Manage Bills
To support customers during this time, PPL Electric offers a variety of programs and tools to help reduce energy usage and manage bills:
- Budget Billing & Flexible Payment Plans: Spread your electricity costs throughout the year for more predictable monthly bills or choose a due date that fits your budget.
- Energy Saving Tools & Programs: Access free or low-cost programs and rebates, including virtual home energy audits and personalized energy-saving tips.
- Bill Assistance Programs: Whether facing short-term hardship or long-term financial challenges, income-qualified customers can access a variety of assistance programs and payment arrangements that fit their needs.
- Shop for a Competitive Supplier: Customers can compare offers from third-party suppliers and potentially secure a lower rate. Visit the PUC’s PaPowerSwitch.com website to learn more.
Before choosing a new supplier, customers should carefully review the terms and conditions — including price, contract length, fixed or variable rates, monthly and/or cancellation fees, and expiration dates.
“We continue to advocate for long-term policy reforms that can bring more stability to electricity supply and contribute to lower overall electricity prices for our customers, including allowing regulated utilities to invest in electric generation on behalf of our customers,” said Martin. “We foreshadowed an increase of this nature in multiple and widespread communications following the steep price increases in PJM’s July 2024 capacity auction. What we anticipated would happen is now, unfortunately, becoming reality.”
“Our primary focus is on helping customers make informed choices and reducing the impact of rising generation supply prices. This year, we will provide $1.5 million in grants to customers through our Operation Help electricity fund program and raise individual grant levels. These grants are available in addition to other bill assistance programs to support eligible customers.”
Customers can access all available resources in one convenient place, visit: pplelectric.com/SeasonalSavings.
About PPL Electric Utilities
PPL Electric Utilities delivers safe, reliable and affordable electricity to more than 1.5 million homes and businesses in eastern and central Pennsylvania. It regularly ranks among the country’s best utility companies for reliability and customer satisfaction. PPL Electric Utilities is a major employer and an active supporter of the communities it serves. It is a part of the PPL Corporation (NYSE: PPL) family of companies. Visit pplelectric.com or connect on social media via Facebook, X and Instagram, for energy efficiency tips, bill help information, guidance on shopping for an electricity supplier, storm updates and more.
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