What the December 2025 PPL Electric Rate Increase Means for Your Home

A Helpful Guide from Burkholder’s Heating & Air Conditioning

Electric supply prices in Pennsylvania went up December 1, and many homeowners are wondering what this means for their winter heating bills—especially those using older heat pumps. Here’s a simple breakdown to help you stay informed and prepared.

What Changed?

PPL’s “price-to-compare” (generation rate) has increased:

  • Old rate: $0.1249 / kWh
  • New rate (Dec. 1): $0.12953 / kWh
  • Increase: About 3.7%

This supply portion makes up 40–60% of your total bill. The rest is delivery, fees, and taxes.

What This Means for a Typical Home

For an average 2,000 sq. ft. home in the Lehigh Valley with a 15-year-old standard heat pump and 8 kW of auxiliary heat, winter electric use usually ranges from 1,200–2,000 kWh per month.

With the December 1 increase, most homeowners will see about $6–$10 more per winter month (depending on usage and how often auxiliary heat runs).

This increase is noticeable, but not dramatic. Comfort levels, insulation, thermostat habits, and system age still have a much bigger impact on your bill than this rate change.

Understanding Your Auxiliary Heat (“Heat Strips”)

Your 8 kW auxiliary heat uses a lot of electricity when it runs:

  • New cost: About $1.04 per hour
  • pOld cost: About $1.00 per hour

The increase adds roughly 3–4 cents more per hour of strip heat.

The bigger issue is how often the strips come on—not this rate increase.

Simple Ways to Keep Your Winter Bills Down

  • Keep your heat pump maintained annually. A clean system uses less power.
  • Replace filters regularly to ease airflow and efficiency.
  • Avoid large thermostat setbacks—they trigger expensive auxiliary heat.
  • Seal drafts and add insulation where needed.
  • Consider upgrading older systems. A modern, high-efficiency cold-climate heat pump can cut winter electric use by 20–40%.

We’re Here to Help

If rising electric costs have you concerned, our team can:

  • Review your system’s performance
  • Check whether your auxiliary heat is running too often
  • Recommend cost-saving adjustments
  • Provide quotes on higher-efficiency equipment when needed

Request your service today or call 610-816-6889 to get started.