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PPL Corporation Reaffirms Business Outlook Despite New Kentucky Law

Strategic Insights

— 1 min read

PPL Corporation, a leading U.S. energy company, has reaffirmed its business outlook and generation investment plans 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. The company's subsidiaries, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), had filed a request with the KPSC to add new combined-cycle natural gas plants, solar generation, battery storage, and energy efficiency programs as part of their generation replacement strategy. This plan is designed to ensure safe, reliable, and affordable energy for customers and exceeds the standards set out by the new law.

Key Takeaways:

  • PPL Corporation, LG&E, and KU reaffirmed their generation investment plans despite the new Kentucky law.
  • The plan includes adding 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.
  • 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.
  • 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, expected by November 6, 2023.
  • PPL Corporation 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.

Statistics:

  • PPL Corporation has over 3.5 million customers in the U.S.
  • The company's utilities are addressing energy challenges by building smarter, more resilient, and more dynamic power grids and advancing sustainable energy solutions.
  • The generation replacement strategy includes:

+ 2 new combined-cycle natural gas plants

+ 1,000 megawatts of solar generation

+ 125 megawatts of battery storage

+ More than a dozen new energy efficiency programs

Sources:

  • PPL Corporation (NYSE: PPL) (2023-03-24). PPL Reaffirms Business Outlook Despite New Law
  • PPL Corporation (2023). Press Release: PPL Reaffirms Business Outlook Despite New Law
  • State of Kentucky (2023). Kentucky Senate Bill 4 (Sen. 4/2023)

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