Improved Service Reliability: Our request to change the Distribution System Improvement Charge
Improved Service Reliability: Our request to change the Distribution System Improvement Charge
You may have received information about our request to change the Distribution System Improvement Charge, also known as DSIC, from the current 5% rate to a maximum of 9%.
We know electric bills can be complex and it’s important for you to understand any change in your rates. Check out the FAQs below for more information on our proposed increase and how it may impact you, if approved as submitted.
Frequently Asked Questions
What is the Distribution System Improvement Charge?
The Distribution System Improvement Charge (DSIC) enables utilities to recover the costs of eligible investments to repair, replace, or improve aging infrastructure, so they can continue providing customers with safe, adequate, and reliable electric service.
Are customers currently paying the DSIC?
Yes; DSIC is listed as a separate line item on customer bills under System Improvement Charge and is currently 5%.
How will the DSIC increase affect customer bills?
If approved, residential customers using 1,000 kWh per month may see a gradual increase of approximately $2.37 at the maximum DSIC rate of 9%.
When would the new DSIC rate go into effect?
Timing is dependent on the regulatory process. Any changes to the DSIC rate would not go into effect until 2025, at the earliest.
Is the DSIC part of PPL Electric’s Price to Compare?
It’s important to note that the DSIC is a portion of your delivery charges and is not related to the Price to Compare, or PPL Electric default rate.
What additional investments does PPL plan to make on its system?
If approved, the DSIC will fund an increased level of system investments to help us provide you with better quality service, safety and reliability. DSIC-eligible investments include making the grid stronger by replacing poles and wires with more robust equipment, upgrading substations and expanding smart grid technology.