PPL(US:PPL)2025-04-30 15:00Financial 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 [6][23] - 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][23] - 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][24] 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 [25] - Pennsylvania regulated segment results increased by $0.03 per share, also due to higher sales volumes and increased transmission revenue [26] - Rhode Island segment results decreased by $0.01 per share, primarily due to lower transmission revenues and higher operating costs [27] Market Data and Key Metrics Changes - The company has nearly 11 gigawatts of data center projects in advanced planning stages in Pennsylvania, up from nearly 9 gigawatts [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 [18] Company Strategy and Development Direction - The company is focused on its "Utility of the Future" strategy, which includes significant infrastructure improvements and capital investments [7][9] - Plans include over $4 billion in infrastructure improvements in 2025 and projected capital investment needs of $20 billion from 2025 to 2028 [7][9] - The company is advocating for legislative changes in Pennsylvania to incentivize new generation construction and reduce reliance on the PJM market [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties and maintaining strong credit metrics [21] - The company is well-positioned to manage potential trade tariffs, with a significant portion of capital projects and materials sourced domestically [21] - Management highlighted ongoing economic development in Kentucky and the importance of new generation resources to support this growth [12][30] Other Important Information - The company has filed a CPCN request with the Kentucky Public Service Commission for new generation needs and received regulatory approval for cost recovery related to generation retirements [10][11] - The company is advancing key initiatives in Pennsylvania and Rhode Island to enhance energy service reliability [12][14] Q&A Session Summary Question: Advantages of resource adequacy legislation versus IPPs - Management discussed the limitations of the current market and the benefits of a regulated utility model for stability and predictability in power pricing [34] Question: Consideration of equity block or ATM - Management confirmed that the ATM program is the primary tool for equity needs, but they will remain opportunistic in assessing all options [36][38] 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 [44] Question: Update on Project Lincoln in Kentucky - Management acknowledged ongoing discussions with the developer and expressed excitement about the project, which is part of the broader interest in Kentucky [47][48] Question: Coal executive order impact on generation planning - Management does not expect immediate impacts from the coal executive order on generation planning but will analyze demand and retirement schedules [56] Question: Data center announcements and ESA agreements - Management indicated that they are entering into ESAs and expect multiple gigawatts of interest, with announcements likely to follow as projects progress [91][73]