Customers of Pennsylvania utility PPL will pay more for their electricity in 2013 despite a favorable environment for electricity choice as the company looks to grow its revenue by about $71 million in 2013, The Lehigh Valley Express Times reports.
PPL made the announcement shortly before the new year after the Pennsylvania Public Utility Commission approved the rate increase. Now, the typical resident who uses about 1,000 kilowatt-hours of electricity per month will pay $121.19 per month – a 3 percent increase from the previous $117.63 per month.
According to the news source, PPL said it is hoping to bring in more revenue to cover higher operating and maintenance costs. Many of these expenses are lingering from a series of damaging 2011 storms, while price hikes associated from Hurricane Sandy have not yet been accounted for.
The higher rates will also pay for upgrades to the utility’s substations, power lines, smart grid equipment and other improvements.
“These new rates will allow us to begin recovering the costs from distribution system improvements made over the past two years and will improve our ability to attract the capital funding needed to modernize our delivery system and better serve our customers,” said Gregory Dudkin, president of PPL Electric Utilities, in a statement.