Customers of PPL Electric Utilities will see monthly bills increase by about 4 percent next year, resulting from recent state Public Utility Commission action.
The PUC on Dec. 5 granted Allentown-based PPL a 10.4 percent rate of return on income for shareholders. The approval will increase the average bill for residential customers using 1,000 kilowatts of electricity monthly by about $4.77 to $116.37, according to a PUC estimate.
The increase totals approximately $71 million, the PUC calculated. PPL had sought a $104.6 million rate boost, which would have increased average monthly residential bills by about $7 to $118.59, according to the PUC.
The authorization drew fire from the acting state consumer advocate, who called the rate-of-return approval excessive.
"We are disappointed," said Tanya McCloskey, who became consumer advocate after Irwin "Sonny" Popowsky's retirement in October. "We think a lower return is justified in these economic times."
The increase takes effect Jan. 1, according to the PUC. The PUC staff needed several days to calculate the residential rate estimate after the commissioners approved the rate-of-return percentage increase. PUC spokeswoman Jennifer Kocher said the exact total will be determined in an order to be filed by the end of the year.
PPL on Tuesday was awaiting an official order from the PUC on details of the ruling, spokesman Bryan Hay said. Nevertheless, in an email he said, "We're pleased that the commission recognizes the importance of ongoing infrastructure improvements."
PPL sought the increase to finance operations, recover costs of distribution system improvements and expenses from the damage of 2011 storms.
Ms. McCloskey said she was most troubled by the PUC approval of an increase in the monthly customer charge for basic services, including billing and meter reading, to $14.09 from $8.75.
"It will be a substantial bill impact for the residential customer class," she said.
Contact the writer: jhaggerty@timesshamrock.com