PPL raises long-term EPS growth target as capital plan expands

Transcript intelligence

What changed

Management raised its annual EPS growth target to 7–9% through 2030 and increased the capital plan by $2 billion to $25 billion. It also described an approximately 2 GW generation partnership between Invitium Energy and QTS, with a cost-reimbursement agreement.

Guidance delta

The annual EPS growth target is now 7–9% through 2030, with management expecting the top half of the range from 2027 onward. The prior-quarter analysis said FY2026 EPS guidance was reaffirmed; the supplied materials do not state the earlier long-term growth target.

Key takeaways

• Management tied its $25 billion capital plan to 10% annual rate-base growth and said large-load customers primarily fund the plan.
• The Invitium Energy–QTS project is planned at approximately 2 GW, with estimated project cost of $5–7 billion and first units expected online during 2029–2033.
• Management cited favorable regulatory outcomes in Kentucky and Rhode Island and emphasized affordability measures.
• Management said it is targeting annual O&M growth of approximately 0.5% and exploring AI-driven efficiencies.

Management priorities

• Advance CPCN filings for additional Kentucky generation capacity.
• Finalize the long-form ESSA with QTS and begin work on the 2 GW project.
• Continue grid hardening, AI deployment, and cost-control efforts.
• Pursue additional data-center partnerships and potential Kentucky generation opportunities.