PPL Corporation’s (PPL Quick QuotePPL ) subsidiary PPL Electric Utilities announced that it has reached an agreement to reduce the transmission rates and lower customer bills. If approved by the Federal Energy Regulatory Commission, the savings and refunds will be effective Dec 1, 2021.
Per this arrangement, base return on equity for the utility’s electric 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 one-year period. The transmission rate is a component of the supply charge listed on customer bills and PPL Electric passes those savings directly to its customers.
Long-Term Goals & Emission Reduction
PPL Corporation tries to strengthen its infrastructure for providing continuous supply to customers and keeping the bills at a reasonable level. For the same, the utility makes investments to focus on infrastructure-construction projects for generation, transmission and distribution.
Courtesy of the ongoing investments for strengthening its infrastructure, customers are experiencing far less outages. The company aims to cut outages further on the back of the ongoing investments. It will continue making investments to strengthen grid, electricity and gas distribution plus electricity transmission, expand renewable generation capacity and focus on new technology to serve customers more efficiently.
The company also makes efforts to meet the carbon-emission reduction target. It updated its mission to curb carbon emission by 70% within 2035 instead of 2040 and 80% by 2040 instead of 2050 through the introduction of carbon capture technology and addition of more renewable sources to its generation portfolio. Further, it aims to become carbon neutral by 2050. As of 2020, it achieved nearly 60% emission cut from the 2010 levels.
Other utilities like Xcel Energy (XEL Quick QuoteXEL ) , Duke Energy (DUK Quick QuoteDUK ) , DTE Energy (DTE Quick QuoteDTE ) , all have plans in place to achieve net-zero emissions within 2050.
Zacks Rank & Price Performance
In the past three months, shares of this currently Zacks Rank #3 (Hold) company have gained 1%, underperforming the industry’s rise of 2.7%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Three Months Price Performance
Image Source: Zacks Investment Research