Lehigh Valley

Alternative utility rates to benefit customers, environment

The PPL Electric Utilities president testified Monday in support of a House Bill, which would offer alternative rate structures for customers. 

President Greg Dudkin says "decoupling" is an alternative rate structure that would be good for customers and Pennsylvania and its utilities. It separates utility revenues from electricity sales and "breaks the traditional link between how much power a utility sells and how much revenue it collects."

“Decoupling will help keep the electric grid strong and secure, it will benefit the environment by embracing energy efficiency and new energy technologies, and it will help PPL continue to welcome and support customers who want to install their own solar panels,” Dudkin said.

Under a multi-year rate plan, decoupling would mean utility revenues would be fixed and approved in advance by the Public Utility Commission for customers. A utility would only be able to collect that fixed amount over the multi-year period. 

However, there would also be regular rate "true-ups", which means customers may have their price adjusted up or down per kilowatt-hour to account for any over or under-collection of the utility's authorized revenues. 

Any proposal to change from the current rate structure to a decoupled structure would need to be approved by the Pennsylvania Public Utility Commission, according to a news release from PPL. 


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