PPL Corporation Q1 FY2025 earnings call

Vince Sorgi noted strong first quarter results with GAAP earnings of $0.56 per share and ongoing operations earnings of $0.60 per share, an 11% increase. The company is on track to complete over $4 billion in infrastructure improvements in 2025. Filed CPCN request with Kentucky PSC for generation needs, including new gas units, battery storage, and environmental upgrades. Secured PA PUC approval to increase disk revenue cap and RI PUC approval for infrastructure investments. Progress on data center projects in PA and KY with significant interest. Intent to file base rate case in KY and advocacy for legislative changes in PA to incentivize generation.

Kentucky segment results increased by $0.05 per share compared to Q1 2024, driven by higher sales volumes due to mild weather. Pennsylvania Regulated segment results increased by $0.03 per share, primarily due to higher sales volumes from mild weather and higher transmission revenue from ongoing capital investments. Rhode Island segment results decreased by $0.01 per share, mainly due to lower transmission revenues from a prior period true-up and higher operating costs, partially offset by higher distribution revenue from capital investments. Results at Corporate and Other decreased by $0.01 per share compared to the prior period, primarily due to higher interest expense.

Remain confident in achieving 2025 ongoing earnings forecast of $1.75 to $1.87 per share (midpoint $1.81). Project $20 billion in capital investment from 2025-2028 with average annual rate base growth of 9.8%. Target annual dividend growth in 6%-8% range and maintain strong credit metrics with 16%-18% FFO-to-debt ratio and holding company to total debt ratio below 25%.

Potential impact of trade tariffs, though most capital projects and O&M are labor with domestic materials limiting impact. Uncertainty around environmental regulation changes affecting capital plans.

Q: Thoughts on resource adequacy legislation and IOU vs IPP for generation?

A: Vince Sorgi stated regulated utility model provides stability and predictability for long-term generation investment.

Q: Tariff exposures and battery storage projects?

A: Joe Bergstein mentioned working with vendors to minimize tariff impacts on battery projects.

Q: Kentucky coal executive order and capital plan?

A: Vince Sorgi said analyzing impact on generation retirement and capital plan, but overall confident in capital plan.

Q: Pennsylvania data center projects and interconnection?

A: Vince Sorgi noted entering ESAs, responding quickly to customers, and benefiting from efficient connection process.

Q: Data center tariff structure and rate cases?

A: Vince Sorgi said considering large load tariffs, but details to be discussed post-filing.