- Company name
- PPL
- Sector
- Electric & gas utility
- About
- PPL is a regulated utility holding company based in Allentown, Pennsylvania. Its utilities are PPL Electric Utilities in Pennsylvania, Louisville Gas and Electric (LG&E) and Kentucky Utilities (KU) in Kentucky, and Rhode Island Energy, which it bought in May 2022. PPL Electric delivers electricity but does not generate it, while LG&E and KU also generate power. Rhode Island Energy delivers electricity and natural gas. Regulators set the rates, so earnings grow mostly with investment in the rate base. PPL also owns 51% of Invitium Energy, a joint venture with Blackstone Infrastructure that plans to build power plants for data centers in Pennsylvania.
- Thesis
- The market prices PPL as a steady utility whose faster growth depends on data centers and on regulators. PPL expects EPS growth of 6% to 8% a year through at least 2029, near the top of the range. Data center demand in its areas is large: PPL Electric has more than 11 gigawatts under signed service agreements, and the Kentucky pipeline is 13.7 gigawatts. But recent rate decisions gave less than PPL asked for. In August 2026, Rhode Island regulators set a 9.275% return on equity and did not approve a second rate year, and the Kentucky rehearing order added only about $7 million of annual revenue. The investment plan also needs much new debt. For the gap to close, PPL must earn 2026 ongoing EPS within its $1.90 to $1.98 guidance. LG&E and KU must file for new generation by the end of 2026, as PPL expects, and receive approval. Invitium Energy must sign at least one energy supply agreement by the end of 2026, as PPL expects. The Q3 2026 report, expected in early November 2026, is the next test. If these checks pass, the gap can close over the next two to four quarters. The main reason it may not close is weaker rate decisions, which would lower the return on new investment.
- Risks
- Regulators decide the return on investment. The 9.275% return on equity in Rhode Island and the partial Kentucky rehearing order show that decisions can be lower than PPL requests.
Much of the extra growth depends on data centers. If developers delay their projects, or Invitium Energy signs no supply agreements, the investment upside does not come.
Debt rose to $20.3 billion at June 30, 2026, and interest expense rose 17% in the first half of 2026. Higher interest rates make the investment plan more costly.
LG&E and KU still use coal plants. Stricter environmental rules can raise costs or force earlier retirements.
- Balance sheet
- Cash: $332M
Debt: $20.3B
Net debt: $20.0B
Interest cover: 2.7×
Debt due within 12 months: $534M
PPL funds its utilities with first mortgage bonds and funds the parent with senior notes, commercial paper and new shares. At June 30, 2026, total debt was $20.32 billion: long-term debt of $19.79 billion, long-term debt due within one year of $469 million and short-term debt of $65 million. Cash was $332 million. In the first half of 2026, PPL issued $2.05 billion of long-term debt and retired $668 million. Interest expense rose to $456 million in the first half of 2026 from $389 million a year earlier. Interest cover is operating income divided by interest expense for the first half of 2026.
As of 2026-06-30.
- Checkpoints
- Nov 9, 2026 (estimate): Q3 2026 earnings: 2026 forecast. Pending. Watch: Ongoing EPS on track for the $1.90 to $1.98 forecast passes; a cut to the forecast or the growth target fails.
Dec 2026 (estimate): Invitium Energy supply agreement. Pending. Watch: At least one signed long-term energy supply agreement by the end of 2026 passes; no agreement fails.
Dec 2026 (estimate): LG&E and KU request for new generation. Pending. Watch: A filing for new generation beyond the approved 2.3 gigawatts by the end of 2026 passes; a delay into 2027 fails.
- Recent events
- 2026-08-27: Rhode Island regulators approved annual revenue increases of $44.1 million for electric and $93.7 million for gas service at Rhode Island Energy, with a 9.275% return on equity and 52% equity. The new rates started on September 1, 2026. Customers also receive about $170 million of bill credits from October 2026 through September 2027 under a commitment from the 2022 purchase. PPL kept its 2026 forecast.
2026-08-14: The Kentucky Public Service Commission approved part of the LG&E and KU rehearing requests. The order adds about $4 million of annual revenue for LG&E and about $3 million for KU above the February 2026 rate orders.
2026-08-07: PPL reported Q2 2026 results. Reported EPS was $0.30, and ongoing EPS was $0.33, up from $0.32. PPL kept its 2026 ongoing EPS forecast of $1.90 to $1.98 and its 6% to 8% growth target. It estimated $10 billion to $12 billion of possible generation investment through 2032 from data center demand in Pennsylvania and Kentucky.
2026-06-04: The Pennsylvania Public Utility Commission approved a settlement, with some changes, that raises the annual base distribution revenue of PPL Electric by about $275 million from July 1, 2026.