The Pennsylvania Public Utility Commission (PUC) has cleared PPL Electric Utilities’ request to charge new electricity prices to recover costs it incurred on its distribution system to improve service reliability for its customers.

The new distribution system improvement charge (DSIC) will be effective from 1 July and will see an increase of 0.44% on monthly distribution charges.

PPL Electric Utilities Finance & Regulatory Affairs vice president Dennis Urban said the new charge will help the company better plan its work and make system improvements to strengthen electricity reliability.

"The distribution system improvement charge allows us to address system reliability issues and provide strong customer service by investing more in our delivery system," Urban added.

Under state law Act 11, utilities can invest in infrastructure projects to improve service reliability and recover the costs from customers for the same.

PUC earlier approved the utility’s long-term infrastructure improvement plan in January.

The DSIC rates will be adjusted on a quarterly basis to reflect new equipment placed into service in the previous three months.