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PPL Electric Seeks To Make NITS, Other Transmission Costs Nonbypassable, Relieve Retail Suppliers From Cost Obligation
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As part of protecting non-large load customers from costs associated with data centers, PPL Electric in Pennsylvania has petitioned the Pennsylvania PUC to make Network Integration Transmission Service (NITS) and certain other transmission costs nonbypassable, with PPL Electric assuming responsibility for such costs for all customers, and with retail electric suppliers relieved of cost assignment for such costs
Specifically, PPL Electric proposes to recover on a nonbypassable basis through a new nonbypassable Customer Protection Transmission Rider (CPTR) the following costs: NITS; Non-Firm Point-to-Point Transmission Service Charges and Credits; Transmission
Enhancement Charges; Network Transmission Service Charge Call Option, Seams Elimination Cost Assignment
(SECA Charge/Call Option); Transmission Losses (Point to Point) Credits; PJM Schedule 13 Expansion Cost
Recovery Mechanism; and Deferred Tax.
As part of creating a nonbypassable CPTR, PPL Electric would eliminate the current bypassable Transmission
Service Charge (TSC), and would revise the current bypassable Generation Supply Charges (GSC) to include any costs
currently recovered under the TSC that will not be recovered through the new CPTR, along with the
associated net over or undercollection balance. CPTR net metering costs would be included in the revised GSC
The Price to Compare would not include the CPTR charge
PPL Electric said that creation of the CPTR would ensure that large loads are assigned costs caused by large loads
PPL Electric also said that the changes are, "designed to provide benefits to the competitive retail electric market."
PPL Electric said, "By absolving
EGSs [retail suppliers] of the responsibility to recover an allocated share of these transmission costs from their
customers, PPL Electric’s proposal can reduce the risk profiles for the EGSs operating in the
Company’s service territory. Market price risk associated with PPL Electric’s transmission costs
can be eliminated through the Company’s proposal, benefiting customers by removing
transmission cost uncertainty from EGS offers."
PPL Electric is targeting an effective date for the CPTR and associated rate changes in the First
Quarter of 2028, "which will provide time for EGSs to adjust their contracts and offerings in
advance of implementation," PPL Electric said
PPL Electric further said, "For the transition of customers to the new CPTR, PPL Electric will evaluate
protections designed to mitigate and prevent shopping customers from paying for the NITS and
certain other transmission costs both through their contracts with their EGSs and through the
CPTR."
PPL Electric said, "The creation of the CPTR
will allow the Company to directly allocate transmission facilities costs the Company would not
have incurred but for the interconnection of large load customers solely to Rate LP-6 [PPL Electric's large load tariff], making these
avoided costs for non-Rate LP-6 customers."
PPL Electric said that such assignment to large loads of transmission costs caused by large loads would not be possible under the current process, under which transmission costs are recovered from LSEs and their customers
through the FERC-regulated allocation process.
PPL Electric further said that CPTR would also provide a Commission-supervised mechanism through
which PPL Electric, "could potentially directly assign to Rate LP-6 [large load tariff] any future wholesale reliability
costs or credits attributable to large load customers," including potentially costs from PJM's Reliability Backstop
Procurement (RBP) or PJM's Interim Resource Adequacy Service (IRAS)
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PPL Electric Says Change Will Reduce Market Price Risk For Retail Suppliers
September 15, 2026
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Copyright 2026 EnergyChoiceMatters.com
Reporting by Paul Ring • ring@energychoicematters.com
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