Revised PPL Electric billing settlement could help poor, older consumers

PPL Electric utilities will place an extra $1 million in its hardship fund to help customers as part of a modified settlement regarding company-caused billing errors that plagued hundreds of Lehigh Valley residents and more systemwide.

The Pennsylvania Public Utility Commission approved revisions Thursday to an earlier $17 million settlement with Allentown’s PPL that includes the setting aside of money for low-income consumers. The $1 million will nearly double PPL’s “Operation Help” fund to help income-eligible families and senior citizens who struggle with paying their electric bills, according to Commissioner Kathryn L. Zerfuss.

“From the very beginning, the PUC showed our commitment to impacted customers by launching an investigation,” Zerfuss said in a news release.

Under the proposed settlement the PUC announced in Novembe r, PPL agreed to pay a $1 million fine and another $16.2 million in costs to settle complaints over the billing matter, which began in late 2022 and extended into last spring.

But the PUC approved added changes to the settlement after a comment period that drew more than 160 responses from consumers, advocates and others, the commission said. The $1 million had initially been charged as a civil penalty against PPL. The company will absorb those costs and not pass them on to customers in future rate hikes, as part of the settlement.

“We appreciate the commission considering this matter,” the company said in a statement. “We will review the order once it becomes available. In the meantime, we will continue to build upon the significant work we already have done to support our customers, continuously improve our service and prevent a billing issue like this from occurring again.”

The PUC said from December 2022 to April 2023, approximately 48,000 PPL accounts received no bills during one or more months. Between December and January nearly 800,000 “estimated” bills were issued, with most estimates being about 10% or greater than the actual customer usage of electricity.

The bureau said some customers also were rebilled after initial estimate bills were canceled, and those who tried to call PPL faced long wait times, with 41% of calls to PPL abandoned without being able to reach a representative.

In addition to the $1 million hardship fund contribution, the five-member PUC approved modifying the settlement that would provide more consumer refunds if further issues are identified after a “deeper analysis” of the billing problems. PPL also must provide timelines on any corrective actions it takes.

PPL Electric, which is a subsidiary of PPL Corp., distributes electricity to 1.5 million customers in 29 east and central Pennsylvania counties. That includes approximately 265,000 consumers in Lehigh and Northampton counties.

The settlement is still subject to further change, the PUC said. PPL and the PUC’s independent Bureau of Investigation and Enforcement have 20 days to withdraw from the modified agreement. If either side pulls out, the settlement would be returned to the PUC bureau for further review and action, according to the PUC.

Morning Call reporter Anthony Salamone can be reached at asalamone@mcall.com .