PPL signs a rate cut pact to save money from December
PPL CompanyPPL’s subsidiary, PPL Electric Utilities, has announced that it has reached an agreement to reduce transmission tariffs and customer bills. If approved by the Federal Energy Regulatory Commission, savings and refunds will be effective December 1, 2021.
Under this arrangement, the basic return on equity for the utility’s electricity transmission formula rate will be reduced from 11.18% to 9.9%. This will save $ 1.54 for residential customers and $ 2.15 for business customers on a monthly basis for a period of one year. The transmission tariff is a component of the supply costs shown on customer invoices and PPL Electric passes these savings on directly to its customers.
Long-term goals and emission reductions
PPL Corporation is trying to strengthen its infrastructure to provide continuous supply to customers and keep invoices at a reasonable level. For the same, the utility invests to focus on infrastructure construction projects for generation, transmission and distribution.
Thanks to ongoing investments to strengthen its infrastructure, customers experience far fewer outages. The company aims to further reduce outages with ongoing investments. It will continue to invest to strengthen the grid, electricity and gas distribution as well as electricity transmission, expand renewable energy production capacity and focus on new technologies to serve customers more efficiently.
The company is also working to achieve the goal of reducing carbon emissions. It has updated its mission to reduce carbon emissions by 70% by 2035 instead of 2040 and 80% by 2040 instead of 2050 through the introduction of carbon capture technology and adding more renewable sources to its production portfolio. In addition, it aims to become carbon neutral by 2050. As of 2020, it has achieved almost 60% reduction in emissions compared to 2010 levels.
Other utilities like Xcel Energy XEL, Duke Energy DUK, ETTD energy DTE, all have plans in place to achieve net zero emissions by 2050.
Zacks Ranking and Price Performance
Over the past three months, shares of this currently Zacks Rank # 3 (Hold) company have gained 1%, underperforming the industry’s 2.7% gain. You can see The full list of Zacks # 1 Rank (Strong Buy) stocks today here.
Three-month price performance
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