Additional Rate Changes for 2010

As you consider your future supply options, you should be aware of additional rate changes that may affect your electric bills in 2010.

No demand component or declining block for generation charges
In 2010, demand will no longer be a component of the generation charge. Generation charges will be based solely on usage. In addition, “declining block” pricing will end for generation charges. Instead, every kilowatt-hour you use will be priced the same on the generation portion of your electric bill. These changes will ensure that our generation charges reflect the way we purchase electricity for you.

EDI/IDI credits to expire
EDI/IDI credits will expire Dec. 31, 2009. These credits were established in the 1980s and 1990s to encourage job creation and business expansion. Both options, like government tax incentive programs, were designed to phase out over time. The scheduled expiration date was Jan. 1, 2000.

Under terms of a restructuring agreement in 1998 between PPL and the Commonwealth of Pennsylvania, we extended the credits and locked them in until generation rate caps expire Dec. 31, 2009.

Existing Time-of-Day rate will end
Currently, some industrial and commercial customers are on a Time-of-Day rate that will expire Dec. 31, 2009. PPL Electric Utilities plans to offer a new Time-of-Use rate option in 2010 for all customers who do not choose alternative suppliers. Large commercial and industrial customers will have an hourly market pricing option. This option would apply only to the generation portion of your electric bill.

Competitive Transition Charge scheduled to expire
The Competitive Transition Charge is scheduled to expire Dec. 31, 2009.