Financial Data and Key Metrics Changes - The company reported first quarter GAAP earnings of $0.56 per share, an increase from $0.42 per share in Q1 2024 [21] - Adjusted for special items, first quarter earnings from ongoing operations were $0.60 per share, an 11% increase from $0.54 per share a year ago [7][21] - The company remains confident in achieving its 2025 ongoing earnings forecast of $1.75 to $1.87 per share, with a midpoint of $1.81 per share [7] Business Line Data and Key Metrics Changes - Kentucky segment results increased by $0.05 per share compared to Q1 2024, driven by higher sales volumes due to mild weather [23] - Pennsylvania Regulated segment results increased by $0.03 per share, also due to higher sales volumes and increased transmission revenue from capital investments [23] - Rhode Island segment results decreased by $0.01 per share, primarily due to lower transmission revenues and higher operating costs [24] Market Data and Key Metrics Changes - In Pennsylvania, nearly 11 gigawatts of data center projects are in advanced planning stages, up from nearly 9 gigawatts [14] - The potential capital investment related to these data centers ranges from $700 million to $850 million, with $400 million already in the plan [15] - In Kentucky, the company is managing nearly 6 gigawatts of active data center requests, with recent legislative changes expected to attract more data centers [16] Company Strategy and Development Direction - The company is focused on its "Utility of the Future" strategy, which includes significant infrastructure improvements and capital investments [8] - Plans include over $4 billion in infrastructure improvements in 2025 to enhance grid reliability and resiliency [7] - The company aims for average annual rate base growth of 9.8% from 2025 to 2028, with a target of $20 billion in capital investment needs [7] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and trade tariffs, noting that 70% to 80% of capital projects are labor-based and most materials are sourced domestically [19] - The company is well-positioned to manage supply chain disruptions and is optimistic about achieving its long-term business plan [20] - Management highlighted ongoing economic development in Kentucky and the importance of new generation resources to support this growth [11] Other Important Information - The company filed a CPCN request with the Kentucky Public Service Commission for new generation needs and received regulatory approval for cost recovery related to the retirement of Mill Creek Unit 1 [9][10] - In Pennsylvania, the company secured approval to increase PPL Electric Utilities' DISC revenue cap to 7.5% [12] Q&A Session Summary Question: Advantages of resource adequacy legislation versus IPPs - Management discussed the limitations of the current capacity market and the benefits of a regulated utility model for stability and predictability in power pricing [31] Question: Consideration of block equity or ATM sufficiency - Management confirmed that the ATM program is the primary tool for equity needs, but they will remain opportunistic in assessing all options [35][36] Question: Impact of tariffs on battery storage projects - Management is actively working with vendors to minimize potential tariff impacts on battery projects and sees a need for these projects due to increasing demand [42] Question: Concerns regarding coal executive order and generation planning - Management does not expect immediate impacts from the executive order on generation planning but will analyze demand and retirement schedules [50] Question: Status of data center announcements in Pennsylvania - Management indicated that they are making progress on projects but do not control the timing of data center announcements [58] Question: Flexibility in large load tariff structures - Management expressed that they are already achieving objectives with existing ESA agreements and would want to maintain flexibility if a model tariff is introduced [62]