PPL Corporation remains confident in its Kentucky generation investment plans and overall business outlook despite Kentucky Senate Bill 4 becoming law

Rhea-AI Summary

PPL Corporation (NYSE: PPL) reaffirmed its earnings forecast and growth projections following the enactment of Kentucky Senate Bill 4. This law mandates the Kentucky Public Service Commission (KPSC) to approve the retirement of fossil-fuel-fired electric generation units. PPL plans to add new combined-cycle natural gas plants, nearly 1,000 megawatts of solar, and expand energy efficiency programs by 2028. The company maintains its 2023 earnings forecast between $1.50 to $1.65 per share, with expected annual growth of 6% to 8% through at least 2026. The new law is not expected to materially impact PPL's business outlook.

Positive

• Reaffirmed 2023 earnings forecast of $1.50 to $1.65 per share.
• Projected annual earnings growth of 6% to 8% through at least 2026.
• Plans to invest in new energy projects, including natural gas and solar generation.

Negative

• Kentucky Senate Bill 4 could impose new regulatory hurdles for fossil fuel retirement approvals.

PPL reaffirms earnings forecast and growth projections following enactment of Kentucky Senate Bill 4

ALLENTOWN, Pa., March 24, 2023 /PRNewswire/ -- PPL Corporation (NYSE: PPL) reaffirmed the generation investment plans of its subsidiaries, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), and its overall business outlook despite a new law passed in Kentucky that requires the Kentucky Public Service Commission (KPSC) to approve the retirement of fossil-fuel-fired electric generation units.

As presented in their December filings with the KPSC, LG&E and KU requested approval to add two new combined-cycle natural gas plants, nearly 1,000 megawatts of solar generation, 125 megawatts of battery storage and more than a dozen new energy efficiency programs by 2028 as part of the companies' generation replacement strategy. The plan is the least-cost option to continue to serve LG&E and KU customers' energy needs responsibly, reliably and affordably. Additional details regarding LG&E and KU's generation replacement strategy can be found on the utilities' website at www.lge-ku.com/future.

"We followed a well-defined and rigorous process to ensure delivery of safe, reliable and affordable energy for our customers. We're confident that our plan exceeds the standards set out by this new law and is the best path forward for our customers. We look forward to continuing to engage with stakeholders in Kentucky and completing the process before the KPSC to demonstrate why that is," said Vince Sorgi, PPL President and CEO.

The new law requires LG&E and KU to file a request for approval to retire fossil-fuel-fired electric generating units with 30-days' notice and 180 days for the KPSC to issue a decision on the filing. As a result, the company does not expect the new law to impact the timing of a KPSC decision on LG&E and KU's December generation replacement filings, which is expected by November 6, 2023.

PPL also does not expect the new law to materially impact its business outlook and reaffirmed its 2023 earnings forecast range of $1.50 to $1.65 per share, with a midpoint of $1.58 per share and projected annual earnings per share growth of 6% to 8% through at least 2026.

PPL Corporation (NYSE: PPL), based in Allentown, Pennsylvania, is a leading U.S. energy company focused on providing electricity and natural gas safely, reliably and affordably to more than 3.5 million customers in the U.S. PPL's high-performing, award-winning utilities are addressing energy challenges head-on by building smarter, more resilient and more dynamic power grids and advancing sustainable energy solutions. For more information, visit www.pplweb.com.

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Note to Editors: Visit our media website at www.pplnewsroom.com for additional news and background about PPL Corporation.

Contacts:	For news media: Ryan Hill, 610-774-4033
	For financial analysts: Andy Ludwig, 610-774-3389

 

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SOURCE PPL Corporation

FAQ

What is PPL's earnings forecast for 2023?

PPL's earnings forecast for 2023 is between $1.50 and $1.65 per share.

How does Kentucky Senate Bill 4 affect PPL Corporation?

Kentucky Senate Bill 4 requires approval for retiring fossil-fuel-fired electric generating units, potentially creating regulatory hurdles.

What are PPL's growth projections through 2026?

PPL expects annual earnings per share growth of 6% to 8% through at least 2026.

What new energy projects is PPL planning?

PPL plans to add two new combined-cycle natural gas plants, nearly 1,000 megawatts of solar generation, and 125 megawatts of battery storage.

When is the expected KPSC decision on PPL's generation replacement filings?

The KPSC decision on PPL's generation replacement filings is expected by November 6, 2023.