PPL (NYSE:PPL) reported second-quarter 2026 GAAP earnings of $0.30 per share, up from $0.25 per share a year earlier, while ongoing earnings rose to $0.33 per share from $0.32 per share. The company reaffirmed its full-year ongoing earnings forecast of $1.90 to $1.98 per share, with a midpoint of $1.94 per share, citing expected stronger earnings growth in the second half following rate outcomes in Pennsylvania and Rhode Island.
President and CEO Vince Sorgi said the utility is pursuing its existing capital plan while building visibility into additional growth opportunities tied to large-load customers, including data centers, and its Invitium Energy joint venture with Blackstone.
Capital plan and financial outlook
PPL said it deployed approximately $2.3 billion of capital through the first six months of 2026, about 30% more than it deployed during the same period in 2025. The company remains on pace to invest about $5 billion for the full year and continues to project $23 billion of capital investment needs through 2029.
The company reaffirmed its targets for average annual rate-base growth of more than 10%, annual earnings-per-share growth of 6% to 8% through at least 2029, annual dividend growth of 4% to 6%, and funds from operations-to-debt of 16% to 18%. PPL expects EPS growth to be near the upper end of its stated range, excluding any contribution from Invitium.
Chief Financial Officer Joe Bergstein said PPL completed its 2026 financing needs earlier in the second quarter through debt offerings at PPL Electric and Rhode Island Energy. He said the offerings were oversubscribed and secured long-dated capital at attractive terms.
By segment, Kentucky results were flat year over year, as higher base-rate recovery was offset by less favorable weather-driven sales volumes, higher operating costs, depreciation and interest expense. Pennsylvania regulated earnings declined by $0.01 per share, while Rhode Island earnings increased by $0.02 per share, aided by higher rider revenue and lower operating costs.
Rate cases advance in Pennsylvania and Rhode Island
PPL Electric’s Pennsylvania rate-case settlement took effect July 1, approving a $275 million increase. Sorgi said the increase supports infrastructure investment while representing less than a 4% increase across rate classes. He added that PPL Electric delivery rates remain nearly 20% below the latest published state average.
The settlement includes a two-year stay-out provision for base-rate increases through July 1, 2028. Bergstein said PPL intends to use the state’s Distribution System Improvement Charge, or DISC, mechanism and cost discipline to maximize the period between rate cases. The company plans to file an updated five-year long-term infrastructure improvement plan next year.
In Rhode Island, hearings in PPL’s base-rate case were completed in mid-July, with public meetings scheduled from Aug. 12 through Aug. 20 and new rates expected to take effect Sept. 1. The filing is Rhode Island Energy’s first requested base-rate increase in eight years, according to PPL.
PPL also continues to pursue a proposal to accelerate customer bill credits associated with its deferred-tax hold-harmless commitment made when it acquired Rhode Island Energy. The company said the credits, if approved, would significantly offset the requested base-rate increase for customers.
In Kentucky, PPL is awaiting a decision on its request for reconsideration of a Kentucky Public Service Commission ruling. The company requested a decision by Aug. 14 and said it believes the original decision permits it to meet overall plan objectives, though it seeks changes it considers important for reliability and resilience investments.
Data-center demand and Kentucky generation opportunity
Signed data-center agreements in PPL Electric’s Pennsylvania service territory rose for a 10th consecutive quarter to roughly 32 gigawatts, an increase of 3.5 gigawatts from the prior quarter. More than 11 gigawatts are covered by electric service agreements, or ESAs, which carry financial commitments from customers, while more than 6.5 gigawatts of projects are under construction.
Two data centers began taking utility service during the quarter and are expected to ramp to about 2 gigawatts of load by 2031. Sorgi said the company’s large-load tariffs require long contract terms, capacity payments of at least 80% of reserved capacity, upfront collateral and termination fees.
Beginning in 2027, Pennsylvania’s large-load customer class is expected to contribute $11 million annually to low-income assistance, which PPL said was previously funded by existing customers. If 31.8 gigawatts of advanced-stage projects are realized, existing Pennsylvania customers could see approximately $25 per month reduced from the transmission component of bills over time, according to the company.
In Kentucky, PPL’s development pipeline expanded to 13.7 gigawatts, including 11.6 gigawatts of data-center demand and 2.1 gigawatts from manufacturing and other projects. The company’s probability-weighted forecast calls for 3.7 gigawatts of new load by 2032, more than double the amount reflected in its 2025 certificate filing.
PPL said it may file for additional generation resources by year-end. Potential projects include the 266-megawatt Lewis Ridge Pumped Storage Project, 400 megawatts of previously deferred battery storage and additional natural-gas combined-cycle generation. Those projects could represent $3.5 billion to $4 billion of investment between 2027 and 2032.
Invitium joint venture targets commercial agreements
PPL said Invitium, its joint venture with Blackstone, has secured strategic land sites capable of supporting 8 to 14 gigawatts of generation, depending on technology choices. More than 5 gigawatts of combined-cycle natural-gas generation has been accepted in the PJM interconnection queue, and the venture has reservation agreements for more than 5 gigawatts of combined-cycle gas turbines.
Using estimated project costs of $2,500 to $3,000 per kilowatt, PPL placed the potential investment associated with that 5-gigawatt pipeline at $12.5 billion to $15 billion through 2032, of which PPL’s share would be 51%.
Sorgi said PPL expects one or more commercial agreements by year-end, though he declined to specify the potential size or timing of individual deals. He said bilateral agreements can proceed independently of PJM’s capacity-matching process, and PPL remains focused on bilateral contracting with customers.
The company does not expect material earnings from Invitium through 2030. However, batteries and other shorter-lead-time technologies could begin contributing in 2029 or 2030, while combined-cycle projects could enter service as early as 2031 or 2032. PPL said it will not begin construction or make material financial commitments without executed energy supply service agreements or cost-reimbursement arrangements.
About PPL (NYSE:PPL)
PPL Corporation is an energy company that owns and operates electric transmission and distribution infrastructure and provides related customer services. The company’s core business centers on delivering electricity to residential, commercial and industrial customers through regulated utility operations, maintaining grid reliability, responding to outages and managing customer billing and account services.
PPL’s activities include construction and maintenance of distribution and transmission lines, meter and grid management, and programs to support energy efficiency and the interconnection of distributed resources.
