PPL(US:PPL)2025-11-05 17:00Financial Data and Key Metrics Changes - The company reported third-quarter GAAP earnings of $0.43 per share, an increase from $0.29 per share in Q3 2024 [27] - Adjusted ongoing earnings were $0.48 per share, a $0.06 increase compared to Q3 2024, driven by higher revenues and lower operating costs [28] - The ongoing earnings forecast for 2025 has been narrowed to a range of $1.78-$1.84 per share, with a midpoint of $1.81 per share [4][28] Business Line Data and Key Metrics Changes - The Kentucky segment results increased by $0.02 per share due to higher sales volumes and lower operating costs [29] - The Pennsylvania regulated segment also saw a $0.02 per share increase, driven by higher transmission revenue and distribution rider recovery [29] - The Rhode Island segment results increased by $0.01 per share, primarily due to lower operating costs [29] Market Data and Key Metrics Changes - The economic development pipeline in Kentucky has grown to nearly 10 gigawatts of electricity demand, with significant contributions from data centers [20] - In Pennsylvania, the number of data center projects in advanced planning stages increased by over 40%, reaching 20.5 gigawatts [14] - The company anticipates $20 billion in infrastructure investments from 2025 through 2028, driving average annual rate-based growth of 9.8% [5] Company Strategy and Development Direction - The company is focused on a utility-to-the-future strategy, with plans to complete approximately $4.3 billion in infrastructure improvements this year [4] - The company aims for 6-8% annual EPS and dividend growth through at least 2028, with EPS growth expected to be in the top half of that range [5] - The company is actively engaged in discussions to incentivize new generation development and mitigate supply price increases for customers [18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the midpoint of the ongoing earnings forecast, supported by operational discipline and strategic execution [4] - The management highlighted the importance of building new generation to meet the growing demand from data centers and emphasized the need for timely investments [17] - The management acknowledged the challenges posed by regulatory processes but remains optimistic about future approvals and outcomes [10][11] Other Important Information - The company has proposed a new tariff for large load customers in Kentucky, requiring a 15-year commitment to pay for at least 80% of forecasted demand [24] - A recent proposal in Rhode Island aims to provide nearly $155 million in customer credits during high winter bills [25] - The company is leveraging its joint venture with Blackstone Infrastructure to build new generation to support data center demand [18] Q&A Session Summary Question: Impact of Kentucky CPCN case on earnings - Management indicated no immediate earnings impact from the CPCN case, as the commission encouraged re-filing for rate mechanisms in future proceedings [34][36] Question: Resource adequacy discussions in Pennsylvania - Management noted that legislative support exists for new generation, and discussions with Independent Power Producers (IPPs) are ongoing to find a middle ground [38][40] Question: Details on the 20.5 gigawatts data center pipeline - Management confirmed that the pipeline includes projects with significant financial commitments, and they are confident in connecting this demand [41][44] Question: Joint venture with Blackstone and existing gas plants - Management clarified that while acquiring existing assets is not the core strategy, it could be considered if it meets resource adequacy needs [55] Question: Concerns about revenue concentration from data centers - Management expressed confidence in the regulatory protections in place and does not foresee an unhealthy concentration risk [57]