PPL proposal would make it easier to assign energy transmission costs directly to data centers
PPL Electric Utilities has introduced a new Customer Protection Transmission Rider (CPTR) proposal, replacing the current Transmission Service Charge. This proposal aims to make transmission costs more transparent and allow for direct allocation of certain network upgrade costs to large-load customers, such as data centers. The plan is pending approval from the Pennsylvania Public Utility Commission and, if approved, would take effect in the first quarter of 2028.
PPL Electric Utilities, an Allentown-based utility serving 1.5 million customers across 29 counties in eastern and central Pennsylvania, has proposed a new Customer Protection Transmission Rider (CPTR). This initiative aims to increase transparency regarding energy transmission costs, particularly for large energy consumers like data centers.
The CPTR would replace the existing Transmission Service Charge, which currently embeds transmission costs within supply charges. The new rider would create a dedicated line item on customer bills for these costs and establish a mechanism for PPL to directly assign certain network upgrade costs to high-load customers. According to Christine Martin, president of PPL Electric Utilities, this proposal supports responsible economic growth while protecting existing residential and small business customers.
Building on PPL's current Customer Protection Framework, which already requires financial and usage commitments from large-load customers, the CPTR seeks to ensure grid investment costs are equitably supported. The proposal requires approval from the Pennsylvania Public Utility Commission (PUC) and is slated to take effect in the first quarter of 2028 if sanctioned.