Detailed Narrative
Kentucky Generation Strategy
PPL filed a CPCN request with the Kentucky Public Service Commission to address near-term generation needs, including the construction of two new 645-megawatt natural gas combined cycle units with 2030 and 2031 in-service dates, the addition of 400 megawatts of battery storage by 2028, and upgrades to environmental controls on Ghent Unit 2. Construction is also advancing on previously approved projects, including the 120-megawatt Mercer solar facility and a 125-megawatt battery storage system at Brown station, both expected for completion in 2027, and a 640-megawatt combined cycle natural gas facility at Mill Creek, expected by early 2028.
Pennsylvania Regulatory Progress
PPL Electric Utilities secured Pennsylvania PUC approval to increase its DISK revenue cap to 7.5%, up from the prior cap of 5%. This new cap will be in effect through 2027 or until a new distribution base rate case takes effect. PPL is also actively advocating for legislative changes in Pennsylvania, specifically supporting House Bill 1272, which would allow regulated electric utilities to invest in generation resources to address rising electricity prices and potential energy shortfalls, complementing the competitive PJM market.
Rhode Island Infrastructure Investment
In Rhode Island, PPL received approval for nearly $400 million in infrastructure investments and select operating costs in connection with its latest electric and gas infrastructure, safety, and reliability plans for April 1, 2025, to March 31, 2026. This includes approximately $220 million in capital investments for electric (with $88 million for advanced metering infrastructure) and $145 million for gas capital (with $108 million for gas main replacements). Additionally, $35 million in operating costs for vegetation management and restoration paving were authorized.
Data Center Growth & Protection
PPL continues to see significant interest from data center developers, with nearly 11 gigawatts of projects in advanced planning stages in Pennsylvania and over 50 gigawatts of other interconnection requests in the queue. In Kentucky, PPL supports a 400-megawatt data center customer and manages nearly 6 gigawatts of active requests. Energy services agreements (ESAs) for these large loads are structured with minimum load commitments, letters of credit, and termination fees to protect existing customers from stranded asset risk, ensuring data centers share in transmission system costs.
Kentucky Rate Case & Coal EO
PPL notified the Kentucky Public Service Commission of its intent to file a base rate case on or after May 30, seeking new rates effective January 1, 2026, to support continued infrastructure investments and projected load growth. The company is also analyzing the impact of the recent coal executive order on its generation planning, particularly the scheduled 2027 retirement of Mill Creek 2 (300 MW), considering a potential delay to meet increasing demand from economic development and data centers.
Tariff Impact & Supply Chain Management
PPL does not expect a significant impact from recently proposed trade tariffs on its plan. The company highlights that 70% to 80% of its capital projects and nearly 90% of its O&M costs are labor-related, and most materials are sourced domestically. This domestic sourcing and labor-intensive cost structure significantly reduces the potential exposure to tariff impact🌐s, demonstrating effective supply chain management.