PPL Corporation is a utility holding company headquartered in Allentown, Pennsylvania. The company delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island, and provides natural gas services in Kentucky and Rhode Island through its regulated utility subsidiaries **[0000922224-24-000030_ppl-20240930.htm:63]**. PPL also generates electricity from power plants located in Kentucky **[0000922224-24-000030_ppl-20240930.htm:63]**. The company's revenue is derived from various customer classes, including residential, commercial, industrial, and wholesale customers **[0000922224-24-000030_ppl-20240930.htm:65]**.

1. **Kentucky Regulated Segment** - Delivers electricity and provides natural gas services to customers in Kentucky, and generates electricity from power plants located in the state.
2. **Pennsylvania Regulated Segment** - Delivers electricity to customers in Pennsylvania, serving a diverse range of customer classes.
3. **Rhode Island Regulated Segment** - Provides both electricity and natural gas services to customers in Rhode Island.

eb3fca6b9616cadbdc2dfab1610fb3179a1edf1492e3cd38f9a2bc1f2693de3f

Kentucky Regulated

Pennsylvania Regulated

Rhode Island Regulated

Corporate and Other

Total Revenue

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1. Given the recent PJM capacity auction results showing tight supply and elevated prices, what specific steps is PPL taking to address resource adequacy and mitigate higher costs for customers, and how might this influence your generation development plans or potential regulatory changes in Pennsylvania?

2. With your Utility of the Future strategy targeting $175 million in annual O&M savings by 2026, can you detail the opportunities for further efficiencies beyond that timeframe, especially leveraging AI and advanced technologies, and how might these additional savings impact your earnings growth projections?

3. You've reported nearly 5 gigawatts of potential data center demand in advanced stages in Pennsylvania, up from 3 gigawatts previously; how confident are you that these projects will materialize given that some interconnection requests may be duplicative, and what risks do these projects pose to your capital plan if they do not proceed as expected?

4. As you prepare to file the Kentucky IRP in October, how are you approaching the potential need for new generation capacity, and how will you balance adding dispatchable resources like natural gas plants with your net-zero goals, regulatory approvals, and customers' expectations for affordability and reliability?

5. Considering your significant capital investment plans and potential additional opportunities, how do you evaluate your balance sheet capacity to fund this growth while maintaining your targeted FFO to debt ratio, and under what circumstances might equity financing become necessary?

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**Annual guidance for FY 2024:**
- **Ongoing Earnings Forecast**: $1.67 to $1.73  **[PPL_3405471_1]** **[PPL_3405471_5]**  (raised from $1.63 to $1.75  **[PPL_3396195_1]** )  
- **Annual O&M Savings (2024)**: $120 million to $130 million  **[PPL_3405471_1]**  (no change from $120 million to $130 million  **[PPL_3396195_1]** )  
- **Annual O&M Savings (2026)**: at least $175 million  **[PPL_3405471_1]**  (no change from at least $175 million  **[PPL_3396195_1]** )  
- **Annual EPS Growth**: 6% to 8%  **[PPL_3405471_1]**  (no change from 6% to 8%  **[PPL_3396195_1]** )  
- **Dividend Growth**: 6% to 8%  **[PPL_3405471_1]**  (no change from 6% to 8%  **[PPL_3396195_1]** )  
- **Capital Investments**: $14.3 billion from 2024 to 2027  **[PPL_3405471_1]**  (no change from $14.3 billion from 2024 to 2027  **[PPL_3396195_1]** )  
- **Data Center Development**: 8 gigawatts in Pennsylvania and 400 megawatts in Kentucky  **[PPL_3405471_3]**  (no prior guidance)  
- **Kentucky Retirement Costs**: $125 million  **[PPL_3405471_4]**  (no prior guidance)  
- **Pennsylvania Transmission Revenue Cap**: petition to increase DSIC revenue cap from 5% to 9%  **[PPL_3405471_4]**  (no prior guidance)  

5386ea26abaebf8e9c7d3966efd0b8c472331570dd49cff4a194db382ed41e2a

Adjustments for Non-Cash Items [USD, Millions]

Stock-Based Compensation [USD, Millions]

Changes in Working Capital [USD, Millions]

Capital Expenditures (CapEx) [USD, Millions]

Share Repurchases [USD, Millions]

Dividend Payments [USD, Millions]

Net Change in Cash [USD, Millions]

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Cost of Goods Sold (COGS) [USD, Millions]

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03b76aa4d9754d76de3370e535369def673488e9b1a408c5d7724105d20bac8e

### Q2 2024 Earnings Call
- **Issued Period**: Q2 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Ongoing Earnings Forecast**: $1.63 to $1.75 per share, expecting to achieve at least the midpoint  **[PPL_3396195_1]** .
  2. **Annual O&M Savings Target for 2024**: $120 million to $130 million compared to the 2021 baseline  **[PPL_3396195_1]** .
  3. **Annual O&M Savings Target by 2026**: At least $175 million compared to the 2021 baseline  **[PPL_3396195_1]** .
  4. **Earnings and Dividend Growth**: 6% to 8% annual growth through at least 2027  **[PPL_3396195_1]** .
  5. **Infrastructure Improvements**: $14.3 billion from 2024 to 2027  **[PPL_3396195_1]** .

### Q1 2024 Earnings Call
- **Issued Period**: Q1 2024
- **Guided Period**: FY 2024
- **Guidance**:
  1. **Earnings Guidance**: On track to achieve at least the midpoint of $1.69 per share  **[PPL_3381816_4]** **[PPL_3381816_1]** .
  2. **Capital Investments**: $3.1 billion in infrastructure improvements in 2024  **[PPL_3381816_5]** **[PPL_3381816_1]** .
  3. **Earnings Growth**: 6% to 8% annual earnings per share and dividend growth through at least 2027  **[PPL_3381816_1]** .
  4. **O&M Savings**: At least $175 million by 2026  **[PPL_3381816_1]** .
  5. **FFO to Debt Ratio**: 16% to 18% throughout the planning period  **[PPL_3381816_4]** .
  6. **Debt Ratio**: Holding company to total debt ratio below 25%  **[PPL_3381816_4]** .

### Q4 2023 Earnings Call
- **Issued Period**: Q4 2023
- **Guided Period**: FY 2024
- **Guidance**:
  1. **2024 Ongoing Earnings Forecast**: $1.63 to $1.75 per share, with a midpoint of $1.69 per share, representing 7% growth from 2023  **[PPL_3373846_2]** .
  2. **Dividend**: Quarterly common stock dividend of $0.2575 per share, a 7.3% increase from the previous dividend  **[PPL_3373846_2]** **[PPL_3373846_7]** .
  3. **EPS and Dividend Growth Targets**: 6% to 8% annual growth through at least 2027  **[PPL_3373846_2]** .
  4. **Capital Plan**: $14.3 billion from 2024 to 2027  **[PPL_3373846_2]** .
  5. **Rate Base Growth**: Average annual rate base growth of 6.3% through 2027  **[PPL_3373846_2]** .
  6. **O&M Savings**: $120 million to $130 million in 2024, at least $175 million by 2026  **[PPL_3373846_2]** .
  7. **Load Growth**: 50 basis points throughout the planning horizon  **[PPL_3373846_16]** .
  8. **FFO-to-Debt Ratio**: 16% to 18%, holding company to total debt ratio below 25%  **[PPL_3373846_7]** .

### Q3 2024 Earnings Call
- **Issued Period**: Q3 2024
- **Guided Period**: N/A
- **Guidance**: The documents do not provide information about PPL's guidance from the Q3 2024 earnings call. The available data is from the Q2 2024 earnings call.

The guidance for Q3 2024 is not available in the documents, so the details for that period are not included.

be8ffd1b0b73329eb2ae8034e14df8afa5201b1cf0e0f32cf8d918a6d525ea64

| Name                  | Position                                                                 | Start Date        | Short Bio                                                                                                                                                                                                 |
|-----------------------|--------------------------------------------------------------------------|-------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Vincent Sorgi         | President and Chief Executive Officer (CEO)                              | June 2020         | Vincent Sorgi has been serving as the CEO of PPL Corporation since June 2020. He has approximately 30 years of experience in the utility industry and has held various roles at PPL since 2006  **[0000950170-24-040720_ppl-20240403.htm:19]** **[0001193125-23-090601_d385698ddef14a.htm:21]** .                                        |
| Joseph P. Bergstein, Jr. | Executive Vice President and Chief Financial Officer (CFO)              | N/A               | Joseph P. Bergstein, Jr. serves as the CFO of PPL Corporation. He has held this position since at least 2023, but the specific start date is not provided in the documents  **[0000950170-24-040720_ppl-20240403.htm:47]** **[0001193125-24-038354_d754517ds8.htm:9]** **[0001193125-24-038413_d765479ds3asr.htm:42]** .                                                          |
| Francis X. Sullivan   | Executive Vice President and Chief Operating Officer (COO)               | January 1, 2023   | Francis X. Sullivan was appointed as COO of PPL effective January 1, 2023. Prior to this role, he served as Vice President-Operations Performance  **[0000950170-24-040720_ppl-20240403.htm:47]** .                                                                                         |
| Wendy E. Stark        | Executive Vice President, Chief Legal Officer (CLO), and Corporate Secretary | January 1, 2023   | Wendy E. Stark joined PPL as Senior Vice President, General Counsel, and Corporate Secretary in 2021. She was named Chief Legal Officer effective January 1, 2022, and her title changed to Executive Vice President on January 1, 2023  **[0000950170-24-040720_ppl-20240403.htm:47]** **[0001193125-23-090601_d385698ddef14a.htm:42]** . |
| John R. Crockett III  | President, LG&E and KU Energy LLC (LKE) and Chief Development Officer    | March 4, 2024     | John R. Crockett III serves as the President of LKE and was named Chief Development Officer of PPL Corporation, effective March 4, 2024. He was already serving as President of LKE prior to this role  **[0000950170-24-040720_ppl-20240403.htm:47]** **[0000950170-24-040720_ppl-20240403.htm:36]** .                                |
| Stephanie R. Raymond  | Former President, PPL Electric Utilities Corporation (PPL Electric)      | N/A               | Stephanie R. Raymond served as the Former President of PPL Electric Utilities Corporation. She separated from the company on September 1, 2023  **[0000950170-24-040720_ppl-20240403.htm:47]** .                                                                                            |

6253da745b98d55277151a2ea35899a76b74e7916114f8ec1edb7c24986bfdff

1. **Impact of Higher Capacity Prices on Customer Bills**  
   **Q:** How will higher PJM capacity prices affect customer bills?  
   **A:** Higher capacity prices will increase the generation portion of customer bills by about **$10 to $15 per month**, representing roughly **5% to 10%** of the total bill, beginning in 2025. However, substantial data center load could offset this increase over time.  **[PPL_3396195_9]** 

2. **Data Center Load Growth**  
   **Q:** How will data center growth impact customer bills and investments?  
   **A:** PPL expects to add **1 gigawatt of data center load each year** starting in 2027, reaching **5 gigawatts** by 2031. Each gigawatt could reduce customer bills by about **$3 per month**, potentially lowering bills by **$15 per month** when fully realized. This growth also presents significant transmission investment opportunities.  **[PPL_3396195_15]** 

3. **Transmission Investment Opportunities**  
   **Q:** What are the transmission investment opportunities related to PJM and data centers?  
   **A:** Higher capacity prices signal a need for new generation and transmission investments in PJM. PPL sees opportunities for additional transmission projects, ranging from **$10 million to $75 million per project** in Kentucky, and expects to invest to support data center growth and resource adequacy.  **[PPL_3396195_7]** 

4. **Balance Sheet Capacity and Capital Expenditures**  
   **Q:** How will PPL finance increased capital expenditures?  
   **A:** PPL's balance sheet is strong, expecting FFO to debt of **16% to 18%** through the planning horizon. They will consider factors like interest rates, inflation, and rate case outcomes, and may use debt capacity to fund capital needs without immediate equity issuances.  **[PPL_3396195_10]** 

5. **Kentucky IRP and New Generation Needs**  
   **Q:** Does PPL anticipate needing new generation in Kentucky?  
   **A:** PPL is updating its Integrated Resource Plan and will assess load forecasts, including industrial growth and data centers. They may need new dispatchable resources, such as a combined cycle natural gas plant, but any large-scale generation would likely come online around **2030**.  **[PPL_3396195_11]** 

6. **O&M Cost Reduction Opportunities**  
   **Q:** Can PPL continue O&M cost reductions beyond 2026?  
   **A:** Yes, PPL sees further opportunities to increase efficiency beyond 2026, including leveraging AI technologies. They are on track to achieve the **$175 million** in O&M savings already laid out.  **[PPL_3396195_13]** 

7. **Timing of Pennsylvania Rate Cases**  
   **Q:** When is the next rate case in Pennsylvania expected?  
   **A:** The earliest PPL would file a rate case in Pennsylvania is **2025**, though they may extend beyond that timeframe. Ongoing investments like the **$84 million** in predictive failure technology will be included in the next rate case.  **[PPL_3396195_16]** 

8. **Potential Sale of Headquarters**  
   **Q:** Does selling the headquarters affect headcount or costs?  
   **A:** Selling the underutilized building is due to excess real estate post-COVID and does not impact headcount or cost outlook.  **[PPL_3396195_20]** 

82b4b38ce74e106992f331cde447f725ea73a5e7ed5f9ddd715b467e125edfe9

| Name                  | Start Date | End Date | Reason for Change |
|-----------------------|------------|----------|-------------------|
| Deloitte & Touche LLP | 2015  **[0000922224-24-000008_ppl-20231231.htm:98]**    | Present  | Current auditor   |

576e0407493a4aaef143c1f54b521478e57645448cad28f8971a2d547b420cbe

23794d91c53ae875c8e247d72561e35d9d06ee07c70c9e0dbcc977a6d161504a

Current Assets [USD, Millions]

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Additional Paid-in Capital [USD, Millions]

Proceeds from / Repayments of Debt [USD, Millions]

0774a57a629778d07c0140f2d1d08661008d335e6d16582d62ab01c35673edab

| Year  | Amount Due (Millions) | Debt Type               | Interest Rate (%) | % of Total Debt                     |
|-------|------------------------|-------------------------|-------------------|--------------------------------------|
| 2034  | 500                   | Senior Notes (RIE)     | 5.35             | 3.0% = (500 / 16,500) * 100 **[0000922224-24-000030_ppl-20240930.htm:37]** |
| 2034  | 750                   | Senior Notes (PPL CF)  | 5.25             | 4.5% = (750 / 16,500) * 100 **[0000922224-24-000030_ppl-20240930.htm:37]** |
| 2034  | 650                   | First Mortgage Bonds   | 4.85             | 3.9% = (650 / 16,500) * 100 **[0000922224-24-000030_ppl-20240930.htm:37]** |

f06a4b3481450388ce09ef47078d6d242b9c0dd7879583fd9c50c2c394928cec

365039a6363ac43d215a97e8227b65ee93aab9d2bd7c64a1b419c03813aa2b99

1. **O&M Savings Outperformance**  
   **Q:** You exceeded 2023 O&M savings targets by $20 million; will you increase future targets?  
   **A:** We achieved **$75 million** in O&M savings in 2023, surpassing our target of $50–$60 million.  **[PPL_3373846_14]**  This was due to accelerating initiatives from 2024.  **[PPL_3373846_14]**  While we're confident in achieving **$120–$130 million** in savings next year and at least **$175 million** overall, we're holding current targets for now.  **[PPL_3373846_14]**  Any additional efficiencies would be upside to our plan.  **[PPL_3373846_14]** 

2. **Data Center Load Growth Opportunities**  
   **Q:** Are potential large data centers included in your capex and load forecasts?  
   **A:** We're seeing significant interest from data centers requiring up to **1,000 MW** in Pennsylvania and Kentucky.  **[PPL_3373846_12]**  Our territories offer strong reliability and ample transmission capacity.  **[PPL_3373846_12]**  These are not yet included in our load forecasts or capex plans  **[PPL_3373846_12]** , but if realized, they could impact our IRP and future investments.  **[PPL_3373846_13]** 

3. **DSIC Waiver Request and LTIP Increase**  
   **Q:** What's your plan for amending the DSIC mechanism in Pennsylvania?  
   **A:** We filed to modify our LTIP, increasing planned investment from **$500 million** to **$800 million**.  **[PPL_3373846_11]**  This includes predictive failure technology and distribution reliability projects.  **[PPL_3373846_11]**  We intend to file a DSIC waiver request soon to potentially raise the DSIC cap.  **[PPL_3373846_11]** 

4. **Credit Metrics and FFO to Debt Ratio**  
   **Q:** Where do you stand on FFO to debt, and what's the outlook?  
   **A:** We're comfortably within our target **16%–18%** FFO to debt range, operating around the midpoint.  **[PPL_3373846_19]**  Early plan integration costs for Rhode Island will roll off, and capex increases later in the plan are manageable.  **[PPL_3373846_19]** 

5. **Second CCGT in Kentucky Plans**  
   **Q:** Will you revisit adding a second CCGT in Kentucky?  
   **A:** Yes, we're planning to file a CPCN for a second CCGT with an in-service date in **2030**.  **[PPL_3373846_10]**  This will be informed by our updated IRP filed this year, considering load and generation economics.  **[PPL_3373846_10]** 

6. **Offshore Wind Transmission Opportunities**  
   **Q:** What are your opportunities from offshore wind solicitations?  
   **A:** We have transmission enhancements in our plan to handle offshore wind load in Rhode Island.  **[PPL_3373846_20]**  Potential joint ventures for wet transmission solutions depend on U.S. Treasury regulations and are not included in our growth projections.  **[PPL_3373846_20]** 

7. **Load Growth Assumptions**  
   **Q:** What's your load growth forecast for 2024?  
   **A:** We're assuming **0.5%** load growth throughout our planning horizon.  **[PPL_3373846_16]** 

8. **Rate Case Timing Strategy**  
   **Q:** How does peer rate case outcomes affect your rate case timing?  
   **A:** While peer outcomes are informative, they don't significantly impact our decision.  **[PPL_3373846_15]**  We have no rate cases planned for 2024, with the next likely in Kentucky in 2025.  **[PPL_3373846_15]** 

9. **Financing Vehicles and Maturities**  
   **Q:** What's your plan for financing vehicle maturities in 2026?  
   **A:** We'll assess options as we get closer, but our assumption is to refinance them.  **[PPL_3373846_18]**  Interest rates at that time will influence our decision.  **[PPL_3373846_18]** 

10. **Transmission Capex Increase in Pennsylvania**  
    **Q:** How much of the added Pennsylvania transmission capex is from recent RTEP awards?  
    **A:** About **half** of the increase is driven by recent PJM window awards.  **[PPL_3373846_9]** 

5c1ef3e5e560c958928a2691947be13eb80b5b7f6e4d3e11d4ef32c8d99f022c

1. **Data Center Agreements in Pennsylvania**  
   **Q:** What is the timing and firmness of the data center investments in Pennsylvania?  
   **A:** PPL has signed agreements for **3 gigawatts** of data center projects in Pennsylvania, with in-service dates starting in **2026** and extending through **2028**.  **[PPL_3381816_6]**  While unable to make public announcements until late this year or early next, the agreements are firm, and PPL is preparing to invest accordingly.  **[PPL_3381816_6]** 

2. **Transmission Investment Opportunities**  
   **Q:** Are there new generation needs or transmission investments tied to these data center contracts?  
   **A:** In Pennsylvania, PPL's opportunity lies in transmission investments, expecting to invest **$50 million to $150 million** per data center, with the data centers making similar investments.  **[PPL_3381816_8]**  These projects are not tied to specific new generation; the PJM market will address any generation needs to meet increased demand.  **[PPL_3381816_9]**  PPL is confident in securing necessary approvals and meeting the 2026 in-service dates.  **[PPL_3381816_8]** 

3. **Likelihood of Data Center Projects Proceeding**  
   **Q:** How confident is PPL in the likelihood of these data center projects moving forward?  
   **A:** While specific details on deposits are undisclosed, PPL's agreements allow them to start development and recover costs if projects don't proceed.  **[PPL_3381816_11]**  The counterparties are serious, and PPL would be disappointed if they didn't secure at least one data center in their service territories, expecting more than that.  **[PPL_3381816_11]** 

4. **Additional Generation Needs in Kentucky**  
   **Q:** Will data center growth require new generation capacity in Kentucky?  
   **A:** The substantial industrial and data center growth in Kentucky may necessitate additional generation.  **[PPL_3381816_8]**  Current reserve margins are approximately **23%**, targeting a range of **17% to 24%**.  **[PPL_3381816_8]**  PPL is considering building a second combined cycle gas turbine (CCGT) unit, for which they hold a position in the queue, enabling relatively quick development.  **[PPL_3381816_8]** 

5. **Impact of DSIC Waiver on Rate Case Timing**  
   **Q:** If the DSIC waiver is unsuccessful, how will it affect rate case timing and capital plans?  
   **A:** An unsuccessful DSIC waiver would not alter PPL's necessary distribution capital plans.  **[PPL_3381816_7]**  However, it may impact the timing of the next rate case, potentially moving it up to as early as **2026**, depending on the commission's decision.  **[PPL_3381816_7]** 

6. **Procedural Schedule for DSIC Application**  
   **Q:** Is there a procedural schedule or specific timelines for the DSIC application?  
   **A:** While there isn't a specific schedule, PPL anticipates decisions on both the DSIC waiver and LTIP filing by year-end.  **[PPL_3381816_10]**  The LTIP process generally takes about **nine months**, and PPL has requested a DSIC decision before year-end to apply it for **2025**.  **[PPL_3381816_10]** 

7. **Settlement Potential for DSIC Waiver Filing**  
   **Q:** Could the DSIC waiver filing result in a settlement, or does the commission need to decide?  
   **A:** PPL is open to engaging with the commission to reach a mutually agreeable solution, potentially arriving at an outcome between the requested and existing terms.  **[PPL_3381816_13]** 

8. **Broader Transmission Opportunities in PJM**  
   **Q:** Are there broader transmission investment opportunities due to data center growth in PJM?  
   **A:** Yes, PPL foresees continued transmission opportunities driven by data center expansion in PJM.  **[PPL_3381816_12]**  Previously, PPL won a **$100 million to $150 million** project in the Dominion zone to alleviate congestion from data center loads.  **[PPL_3381816_12]**  As data centers tend to expand and form hubs, the demand for transmission infrastructure is expected to increase.  **[PPL_3381816_12]** 

f7b67e7c993bb3a94b9b9fbcf50102988ae1ac2712005055e64eb68fc0d2fd9b

1. **Data Center Load Growth**  
   **Q:** How is data center demand impacting your investment plans?  
   **A:** PPL is experiencing significant data center load growth, particularly in Pennsylvania, with **8 GW** of advanced-stage projects likely to proceed.  **[PPL_3405471_17]**  This growth provides a competitive advantage, as adding more data centers reduces per-unit costs over time. PPL is confident in its ability to support and connect this load, both on the transmission and generation side.  **[PPL_3405471_17]** 

2. **Equity Financing Needs**  
   **Q:** Will you need to issue equity due to increased capital expenditures?  
   **A:** PPL is evaluating its financing needs in light of additional capital investments for grid modernization, transmission to support data centers, and other growth opportunities. Given its strong balance sheet, PPL has flexibility and does not currently intend to issue equity or alter its dividend growth to fund these investments.  **[PPL_3405471_13]** **[PPL_3405471_14]** 

3. **Kentucky Generation Plans**  
   **Q:** What are your plans for new generation in Kentucky related to the IRP?  
   **A:** PPL plans to file a CPCN in the first quarter, likely including a second combined-cycle gas turbine (CCGT) to be in service by **2030**, and possibly additional resources like batteries to meet near-term demand increases from data centers. This is driven by the need to address supply constraints and support significant load growth in the region.  **[PPL_3405471_9]** 

4. **Resource Adequacy Legislation in Pennsylvania**  
   **Q:** How are you addressing resource adequacy issues in Pennsylvania?  
   **A:** PPL continues discussions with state decision-makers on solutions, including permitting utilities to invest in generation, providing low-interest loans, and offering incentives for long-term power purchase agreements. The delay in the PJM capacity auction reinforces the need for state action, and legislation is expected sometime in early **2025**.  **[PPL_3405471_7]** **[PPL_3405471_21]** 

5. **Rate Case Timing**  
   **Q:** When are your upcoming rate cases in your jurisdictions?  
   **A:** Based on the current plan, PPL may file a rate case in Kentucky in the first half of next year, after a stay-out provision ends in June. In Rhode Island, a rate case is likely in the fourth quarter of **2025**, and in Pennsylvania, not before **2026** at the earliest.   

6. **Transmission Opportunities in PJM**  
   **Q:** How significant are the transmission opportunities in PJM for PPL?  
   **A:** PPL has submitted several projects to address issues identified in the recent PJM window and expects to learn which are selected by December or January. Regardless of the outcome, PPL anticipates significant transmission opportunities in Pennsylvania due to strong economic development and resource needs, viewing these projects as incremental opportunities.  **[PPL_3405471_15]** 

7. **Dividend Growth vs. EPS Growth**  
   **Q:** Will you consider lowering dividend growth to support higher EPS growth?  
   **A:** PPL does not intend to alter its dividend growth to fund capital investments, citing its strong balance sheet. The company has seen peers make such moves when they lacked balance sheet strength, but PPL does not face that issue.  **[PPL_3405471_14]** 

8. **Execution Challenges**  
   **Q:** Are there concerns about executing large projects amid labor constraints?  
   **A:** PPL acknowledges that supply chain constraints and labor availability extend the timeline for major projects like CCGT plants, now taking around **five years** instead of three. However, there are no concerns about executing smaller projects, such as installing batteries by **2028**.  **[PPL_3405471_16]** 

9. **Relationship with Kentucky Commission**  
   **Q:** How is your relationship with the new Kentucky commission?  
   **A:** PPL's relationship with the Kentucky commission remains constructive. The company has met with the new commissioners and expects the positive dynamic to continue, with no indications of change.  **[PPL_3405471_12]** 

10. **Quantification of Transmission Benefits**  
    **Q:** Can you retain transmission benefits, and how does this impact earnings?  
    **A:** Transmission benefits from data center load growth are not an earnings driver for PPL, as it's capped on returns for existing transmission assets. However, this provides customers with bill room to absorb rising energy and capacity prices.  **[PPL_3405471_18]** 

11. **Earnings Growth Outlook**  
    **Q:** What could keep earnings growth at or below the midpoint of guidance?  
    **A:** PPL's earnings growth is transitioning to be driven more by rate base growth rather than cost efficiencies. While additional capital investments may be necessary, PPL expects to achieve its earnings growth targets, continuing the trend seen since its strategic repositioning.  **[PPL_3405471_19]** **[PPL_3405471_20]** 

12. **Impact of Resource Adequacy Conference**  
    **Q:** How will the resource adequacy conference influence legislation?  
    **A:** The Pennsylvania PUC's engagement on resource adequacy is constructive, as it will play an active role in administering potential legislation. The commission is preparing accordingly, although no specific law is currently on the books.  **[PPL_3405471_21]** 

13. **Data Center Competitiveness**  
    **Q:** Do you have a competitive advantage in attracting data centers?  
    **A:** Yes, PPL's location in an oversupplied zone within PJM, along with strong relationships with power companies and data centers, gives it a competitive advantage. The company is confident in attracting more data centers, which tend to operate in clusters.  **[PPL_3405471_17]** 

14. **Formal Data Center Announcements**  
    **Q:** When can we expect formal data center deal announcements?  
    **A:** PPL anticipates making the first large data center announcement by the end of the year, which could prompt others to follow. Competitive considerations, especially among hyperscalers, influence the timing of public disclosures.  **[PPL_3405471_11]** 

15. **Customer Bill Impact**  
    **Q:** How will new investments impact customer bills in Kentucky?  
    **A:** PPL will address bill impacts in the CPCN filing. Factors like coal plant retirements and the use of the retired asset recovery mechanism provide headroom to keep bill impacts within inflationary amounts. The company is mindful of affordability as it implements its investment plans.  **[PPL_3405471_16]** 

16. **Mid-Load Demand Confidence**  
    **Q:** How confident are you in the mid-load demand scenario in Kentucky?  
    **A:** PPL is confident in the mid-load demand curve presented in the IRP, which includes **1 GW** of data center load in advanced stages. While overall interest totals **3 GW**, including **400 MW** in advanced discussions, the company feels good about the **1 GW** included in the mid-load case.  **[PPL_3405471_10]** 

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- **Potential impact on rate case timing due to uncertainty around the DSIC waiver process in Pennsylvania, which could affect earnings projections.**  **[PPL_3381816_7]**
- **The data center projects, while representing potential upside, are still in early stages with signed agreements but no public announcements, indicating uncertainty in execution and timing.**  **[PPL_3381816_6]**
- **Regulatory approvals are needed for data center projects and related investments, posing execution risks due to possible delays or obstacles in the approval process.**  **[PPL_3381816_8]**

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- PPL has signed agreements for **3 gigawatts of data center demand in Pennsylvania**, with in-service dates starting in **2026**, representing significant upside to their current capital plan.  **[PPL_3381816_6]**
- PPL is on track to invest **$3.1 billion** in infrastructure improvements this year and **$14.3 billion** from 2024 to 2027, supporting their projected **6% to 8% annual EPS and dividend growth** through at least 2027.  **[PPL_3381816_1]** **[PPL_3381816_2]**
- PPL reported a **12.5% increase** in first-quarter ongoing earnings per share, from **$0.48** in Q1 2023 to **$0.54** in Q1 2024, and remains confident in delivering their **2024 earnings forecast of $1.63 to $1.75** per share.  **[PPL_3381816_1]**

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- **PPL announced a 7.3% increase in their quarterly cash dividend to $0.2575 per share**, resulting in an annualized dividend of $1.03 per share, aligning future dividend growth with their **6%-8% earnings growth targets** and providing an attractive total return proposition of **9%-12%**.  **[PPL_3373846_20]**
- **PPL exceeded their 2023 O&M savings target**, achieving $75 million in savings compared to the initial target of $50-$60 million, and are confident in achieving $120 million to $130 million in O&M savings in 2024, solidly on track to deliver their **$175 million** savings target by 2026, potentially providing further upside to earnings growth.  **[PPL_3373846_14]**
- **PPL projects an annual rate base growth of 6.3% from 2023 to 2027**, up from the prior growth rate of 5.6%, supported by an updated $14.3 billion capital investment plan focused on grid modernization, reliability, and resiliency enhancements, which is expected to drive earnings growth and maximize value for customers and shareholders.  **[PPL_3373846_6]**

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- **PPL expects linear EPS growth through 2024 and 2025**, despite higher interest rates, demonstrating resilience and effective management.  **[PPL_3363649_6]**
- **Significant additional transmission investment opportunities beyond current plans**, especially in the PJM region and Kentucky, could boost future earnings and growth.  **[PPL_3363649_14]**
- **Ahead of schedule in achieving operational efficiencies**, PPL expects at least **$50 million to $60 million** in O&M savings this year and is confident in achieving **$175 million by 2026**, enhancing profitability.  **[PPL_3363649_11]**

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- **PPL is making good progress on achieving $175 million in O&M cost reductions by 2026** and sees opportunities for further efficiencies beyond that timeframe, including leveraging AI for long-term O&M efficiencies.  **[PPL_3396195_13]**
- **PPL expects to maintain a strong balance sheet, targeting an FFO to debt ratio of 16% to 18% through the planning horizon**, which positions the company well to support future growth opportunities.  **[PPL_3396195_10]**
- **PPL is exploring opportunities to meet potential increased generation needs in Kentucky**, including possible investments in combined cycle natural gas plants, solar and renewable resources, and battery storage, indicating potential for growth in generation assets.  **[PPL_3396195_11]**

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- **Cost Increases in Generation Replacement Plan**: PPL has experienced **cost increases** for its replacement generation plan, including solar and combined cycle gas turbine (CCGT) projects. These higher capital expenditures could impact the company's financials, though PPL maintains that the plan remains economically positive.  **[PPL_3363649_9]** ,  **[PPL_3363649_8]**
- **Potential Need for Equity Financing**: While PPL can finance its current capital plan without issuing equity, **additional capital investments beyond the current plan may require re-evaluation of financing strategies**, possibly leading to future equity issuances.  **[PPL_3363649_9]** ,  **[PPL_3363649_10]**
- **Pending Litigation with Talen Energy**: PPL is facing a **fraudulent conveyance lawsuit from Talen Energy**, with potentially significant financial implications. The trial is set for February next year, and although PPL is confident in their position, the lawsuit could pose a risk.  **[PPL_3363649_13]**

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- **Increased capital expenditures may pressure credit metrics and refinancing plans.** PPL acknowledged that **capital expenditures will increase later in the plan**, which, along with integration costs from Rhode Island, could impact credit metrics. Additionally, uncertainty in **interest rates** could affect their **refinancing of financing vehicles in 2026**.  **[PPL_3373846_19]** **[PPL_3373846_18]**
- **Regulatory risks could affect future rate cases and financial outcomes.** PPL is monitoring regulatory environments as **not every company gets the same outcome even under the same jurisdiction**, and future rate cases, particularly in Pennsylvania, could present challenges.  **[PPL_3373846_15]**
- **Uncertainty in government regulations may limit growth opportunities in offshore wind projects.** PPL cannot provide assurance on the outcome of U.S. Treasury regulations regarding **Investment Tax Credit eligibility for offshore wind transmission**, which could **unnecessarily raise the cost of the offshore wind industry** and limit PPL's growth in this area.  **[PPL_3373846_20]**

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- **Higher capacity prices in the PJM market may lead to increased costs for PPL's customers, which "obviously is not great for our customers,"** as acknowledged by CEO Vincent Sorgi.  **[PPL_3396195_21]**
- **Uncertainty about the need for new generation capacity in Kentucky could result in significant capital expenditures and regulatory hurdles, potentially impacting PPL's financial performance.**  **[PPL_3396195_11]**
- **Long lead times (up to 4-5 years) to build new generation assets in the tight PJM market may limit PPL's ability to quickly respond to supply-demand imbalances, affecting their ability to meet customer demand and financial results.**  **[PPL_3396195_12]**

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PPL Corp (PPL)

Financials