PPL Electric Utilities still expects its overall rates to drop next year, even though one charge on customer bills is heading up.
"We feel very confident in saying there's a very good chance you could see a net decrease in your total bill," spokesman Ryan Hill said Thursday.
The part that's getting pricier is the distribution charge, which accounts for a fourth of the overall bill.
PPL Electric Utilities has agreed to seek $77.5 million more in annual distribution revenues, boosting its overall annual revenues by 1.6 percent.
This would help the firm recover $727 million in distribution system improvements made over the past three years.
These include new substations, poles, power lines, transformers, vehicles and related equipment.
PPL Electric Utilities said in March it wanted $114.7 million more in annual distribution revenues, to lift its overall annual revenues by 5.4 percent.
But the company agreed to cut that request in a settlement with the state Office of Consumer Advocate and the state Public Utility Commission Office of Trial Staff.
How much of the $77.5 million would come from residential or other types of customers has yet to be determined.
That will be set by an administrative law judge and the PUC commissioners, assuming they approve the settlement.
While the distribution charge is headed up, the generation charge — which accounts for about three-fourths of the total bill — is headed down.
The generation charge reflects what PPL Electric Utilities pays for the power it supplies to customers.
Having already bought 80 percent of its power for early 2011, the firm figures the generation charge will be 9 percent to 12 percent less than current rates.