PPL(US:PPL)2024-02-16 20:16Financial Data and Key Metrics Changes - PPL Corporation achieved ongoing earnings of $1.60 per share for 2023, exceeding the midpoint of their forecast by $0.02 and representing over 8% growth from pro forma 2022 [10][45] - Fourth quarter GAAP earnings were $0.15 per share compared to $0.26 per share in Q4 2022, with ongoing operations earnings of $0.40 per share, an increase of $0.12 per share from Q4 2022 [43][44] - The company recorded special items of $0.25 per share in Q4, primarily due to a settlement agreement and integration expenses [43] Business Line Data and Key Metrics Changes - Pennsylvania Regulated segment results increased by $0.04 per share, driven by lower O&M and higher transmission revenue [48] - Kentucky segment results increased by $0.06 per share, primarily due to lower O&M expenses [49] - Rhode Island segment results increased by $0.02 per share, driven by higher rider revenue from capital investments [49] Market Data and Key Metrics Changes - The company plans to execute $3.1 billion in infrastructure investments in 2024 to maintain safe, reliable, and affordable energy [39] - The updated capital plan includes $14.3 billion from 2024 to 2027, with an expected average annual rate base growth of 6.3% [19][62] Company Strategy and Development Direction - PPL Corporation is focused on its "Utilities of the Future Strategy," which includes enhancing grid reliability, advancing a cleaner energy mix, and leveraging technology [26][30] - The company aims to achieve 6% to 8% annual EPS and dividend growth targets through at least 2027 [18][55] - PPL is committed to maintaining affordability while investing in infrastructure and technology to support a net-zero economy [38][64] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving 2024 earnings forecast range of $1.63 to $1.75 per share, with a midpoint of $1.69 per share [17] - The leadership team emphasized the importance of operational efficiency and the ability to adapt to challenges while maintaining reliability for customers [46][76] - The company recognizes the need for significant investments to meet increasing electricity demand and to manage the transition from fossil fuels [30][31] Other Important Information - PPL Corporation announced a quarterly common stock dividend increase of 7.3% to $0.2575 per share, aligning with their commitment to dividend growth [18][65] - The company has no plans for equity issuances through at least 2027, maintaining strong credit metrics throughout the planned period [20][68] Q&A Session Summary Question: Transmission side and RTEP Window 3 awards - About half of the increase in the Pennsylvania plan is driven by recent PJM awards [81] Question: Kentucky spend and CPCN process - The company plans to revisit the CPCN filing for a second CCGT with an in-service date in 2030 [84] Question: Regulatory environment in Pennsylvania - The company filed a petition to modify the LTIP, proposing to increase it from $500 million to $800 million [92] Question: Data center developments and T&D investments - The company is actively working with data center companies and sees potential for load growth without significant investment [105][107] Question: Load growth forecast for 2024 - The company is assuming 50 basis points load growth throughout the planning horizon [117]