PPL(US:PPL)2026-02-20 18:47Financial Performance - PPL Corporation reported a consolidated net income of $1.2 billion for the fiscal year ended December 31, 2023, representing a 10% increase compared to the previous year[8]. - The company achieved an earnings per share (EPS) of $2.50, up from $2.27 in 2022, reflecting a 10% year-over-year growth[8]. - PPL Electric Utilities Corporation's revenue increased by 8% to $4.5 billion, driven by higher demand and rate adjustments[8]. - PPL's liquidity position remains strong, with cash and cash equivalents totaling $500 million as of December 31, 2023[22]. - The company expects to achieve a revenue growth rate of 5% to 7% in 2024, supported by ongoing infrastructure investments and customer growth[22]. Capital Expenditures and Investments - The company plans to invest approximately $2 billion in capital expenditures in 2024 to enhance infrastructure and expand service capabilities[22]. - LG&E and KU plan to invest approximately $1.0 billion in the construction of Mill Creek Unit 5, expected to begin commercial operation in mid-2027[136]. - Projected capital expenditure requirements for 2026 through 2028 will be influenced by environmental matters and regulatory changes[216]. Customer Growth and Service Expansion - PPL Corporation's customer base grew by 3% year-over-year, reaching 4.5 million customers across its service areas[22]. - PPL Electric serves approximately 1.5 million customers across a 10,000-square mile area in Pennsylvania[155]. - In 2025, 40% of residential, 81% of small commercial and industrial, and 98% of large commercial and industrial customers received electricity from competitive suppliers[168]. Sustainability and Environmental Initiatives - The company is focusing on sustainability initiatives, aiming for a 50% reduction in greenhouse gas emissions by 2030 compared to 2020 levels[22]. - PPL has set a goal of net-zero carbon emissions by 2050, which will involve retiring uneconomic generation and investing in new technologies[205]. - The EPA announced a plan to reconsider 31 environmental rules, including greenhouse gas emissions limits, which may impact capital expenditures for PPL, LG&E, and KU[196]. - The Clean Air Act requires periodic reviews of National Ambient Air Quality Standards (NAAQS) for pollutants, with potential implications for fossil fuel generation plants[198]. Regulatory and Compliance Challenges - PPL's financial performance is influenced by various factors, including weather conditions, regulatory proceedings, and capital market conditions[104]. - Compliance with NAAQS and related requirements may necessitate additional pollution controls, the costs of which are expected to be subject to rate recovery[200]. - The Clean Water Act imposes permitting and mitigation requirements that could result in significant costs for LG&E and KU, expected to be subject to rate recovery[207]. - Future regulatory developments regarding the Clean Water Act could impose substantial costs related to CCR impoundments and landfills, also subject to rate recovery[208]. Workforce and Employee Relations - PPL had a turnover rate of 10.83% for the year ended December 31, 2025[218]. - As of December 31, 2025, PPL employed a total of 6,546 full-time employees, with 36% represented by labor unions[219]. - PPL conducts annual benchmarking of employee compensation and benefits to attract and retain talent[218]. - PPL offers competitive benefits programs, including vacation time, expanded leave for new parents, and tuition reimbursement[218]. Strategic Acquisitions and Market Position - The company is exploring strategic acquisitions to enhance its market position, with a focus on renewable energy assets[22]. - PPL emphasizes the importance of strategic acquisitions and the integration of acquired entities to realize expected benefits[104].