Question · Q4 2025
Angie Storozinski (Seaport Global Securities LLC) inquired about PPL's potential contracting with Independent Power Producers (IPPs) in Pennsylvania, specifically whether it would involve existing or new generation assets, and the expected earnings benefit for the Pennsylvania utility. She also asked how such capacity would integrate into PJM planning and capacity auctions, and sought clarification on the $0.06 earnings drag in Rhode Island for 2025, asking if it was purely one-time or if some deficiencies would be remediated by the recent rate case filing.
Answer
PPL President and CEO, Vince Sorgi, clarified that the proposed legislation for Long-Term Resource Adequacy Agreements (LCRAA) in Pennsylvania is intended to promote new generation builds by IPPs, not for existing assets, and also allows utilities to own generation. He explained that both the load and new generation would participate in PJM auctions, with the expectation that hyperscalers bringing new load would also bring commensurate new generation. PPL CFO, Joe Bergstein, stated that the $0.06 Rhode Island earnings drag was "a little bit of both," with some issues being true-ups that are truly one-time and others being remediated by the rate case, leading to an expectation of positive earnings performance going forward.
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