PPL(US:PPL)2025-07-31 16:00Financial Data and Key Metrics Changes - The company reported second quarter GAAP earnings of $0.25 per share, down from $0.26 per share in Q2 2024 [34] - Adjusted earnings from ongoing operations were $0.32 per share, a decrease of $0.06 per share compared to Q2 2024 [35] - The company remains confident in achieving at least the midpoint of its 2025 ongoing earnings forecast of $1.81 per share [6][36] Business Line Data and Key Metrics Changes - The Kentucky segment results were flat compared to 2024, with lower sales volumes offset by other factors [38] - Pennsylvania regulated segment results decreased by $0.02 per share due to higher operating costs and timing of revenue true-ups [38] - Rhode Island segment results decreased by $0.03 per share, with higher distribution revenues offset by timing of operating costs [38] Market Data and Key Metrics Changes - The company anticipates a significant increase in demand, estimating 8.5 gigawatts of economic development load potential in Kentucky, including 5.7 gigawatts from data centers [31] - In Pennsylvania, the company has about 14.5 gigawatts of data center projects in advanced stages of development [18] Company Strategy and Development Direction - The company is focused on infrastructure improvements, projecting $20 billion in investments from 2025 to 2028, with average annual rate base growth of 9.8% [6] - A joint venture with Blackstone Infrastructure aims to build new generation resources to support data centers, emphasizing a regulated-like risk profile [20][22] - The company is actively engaging with stakeholders to strengthen resource adequacy and support economic development [41] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving earnings growth in the second half of the year, driven by higher returns on capital investments and lower operating and maintenance costs [36] - The company is optimistic about the potential for new generation build-out in Pennsylvania, contingent on long-term energy service agreements with hyperscalers [23][24] Other Important Information - The company filed a stipulation agreement with the KPSC for new generation construction in Kentucky, which includes mechanisms for cost recovery [8][11] - A settlement in Rhode Island will provide $155 million in bill credits to customers, improving affordability [14] Q&A Session Summary Question: Can you elaborate on the $17 billion to $19 billion CapEx needs? - The estimate reflects the potential shift from a net long to a net short position in generation due to data center load growth, with the joint venture and existing IPPs expected to meet this need [46] Question: How will power risk be allocated within the joint venture? - The joint venture aims for a regulated-like risk profile, focusing on long-term contracted generation with creditworthy counterparties [50] Question: What are the future equity needs and plans for derisking? - The company has issued $350 million in equity through its ATM program and plans to evaluate options for efficient capital costs [53] Question: What is the company's view on the PJM capacity auction? - The company expressed concerns about the inability to procure additional generation while facing higher costs, emphasizing the need for new generation solutions [60] Question: What is the expected timeline for progress on the joint venture? - Active discussions are ongoing with hyperscalers, but no material financial commitments have been made yet [74] Question: How does the company view the current industrial sales trends? - The decline in industrial sales is attributed to specific customers rather than a broader trend, with no significant concerns noted [85] Question: What is the rationale behind filing rate cases sooner than expected? - The company has not filed rate cases in several years, and the current filings are a response to cost inflation and the need for regulatory adjustments [88]