Aug 7, 2026 earnings call — Invitium JV progress and rate case outcomes
PPL reaffirmed its 2026 ongoing earnings forecast of $1.90 to $1.98 per share with a midpoint of $1.94 per share.
Revenue $2.1B (est $2.2B) · EPS $0.33 (est $0.34)
Key quotes
"In Pennsylvania, PPL Electric's rate case settlement became effective July 1 with a positive outcome for both customers and shareowners."
"We now have strategic land sites capable of supporting between 8 and 14 gigawatts of new generation depending on the technology selected, and we are continuing to build our inventory of viable sites."
"Large-load customers pay their own way with enforceable provisions that protect existing customers from cost shifts."
Analyst Q&A 8
JV deals and PJM procurement timing
Q (Michael Lonegan · Barclays): He asked how the Invitium JV interacts with the PJM RBP process and whether deals must wait for procurement. He also asked if near-term agreement sizes (gigawatts, investment) and announcement timing could be shared.
A: Management said they are negotiating bilateral contracts independently of the PJM RBP process and had submitted proposals into PJM to maximize customer contacts. They would not give a size now and said materiality will dictate announcement timing; they expect one or more announcements by year-end and will not delay material news.
"So we are actively negotiating bilaterally, and we've been doing that way before the PJM RBP process, Michael." — Vincent Sorgi (CEO)
PJM matching timing and Kentucky CPCN triggers
Q (Jeremy Tonet · JPMorgan): He asked when the PJM matching process results will appear and how that differs from bidding in the RBP auction. He also asked what milestone would trigger an additional Kentucky CPCN filing by year-end.
A: Management said they have not committed to bidding into the RBP auction and that PJM is expected to come out with results around the end of September, though timing of selection is unclear. They said auction caps are well below CONE for some assets, their focus remains on bilateral contracting, and a conversion from a data center developer to a hyperscaler contract would be a big trigger to file before year-end; they noted a probability weighted load of 3.7 gigawatts.
"Ultimately, PJM is looking to come out at the end of September with all of that." — Vincent Sorgi (CEO)
JV accounting and KY executive order
Q (Paul Zimbardo · Jefferies): He asked how the JV earnings and disclosures will be shown versus the base utility business. He also asked whether Kentucky's executive order changes what they can procure for data centers.
A: They said they will report JV results separately from the base utility so investors can see JV earnings and growth, and that it will be equity method accounting with a single line item and additional disclosures when material. On the executive order, they said it aligns with their ratepayer protection approach, did not ban data center development, and that LG&E and KU's approved tariff positions them well to comply without slowing development.
"So I would say that LG&E and KU, with our tariff structure that we've gotten approved in the state, we're well positioned within that tariff structure to align very nicely with our governor's executive order." — Vincent Sorgi (CEO)
Guidance window and PJM rules clarity
Q (Andrew Kadavy · Wells Fargo): He asked if they might use a longer planning window when updating guidance given long-dated opportunities and what factors matter. He also asked how potential customers view PJM connect-and-manage and ERIS rulings and if clarity helped commercial talks.
A: They said a longer planning window is possible given the timing for when earnings from these agreements will show and the logistics of bringing CCGTs into service. On PJM rules, they said the ERIS filing was not yet included but is expected imminently, and that PJM's guidance is starting to clarify what large loads must procure during ramp phases, which pushes hyperscalers to match ramps and favors batteries and smaller fast assets alongside larger units.
"I would say coming from the letter that PJM put out with their guiding principles, I think what you're starting to see is some clarity on what large loads will need to procure during the ramp phases, right?" — Vincent Sorgi (CEO)
Shorter-term tech and JV financing
Q (Steven Fleishman · Wolfe): He asked which shorter-lead technologies besides batteries they expect (recips, aeros, fuel cells). He also asked how the JV projects will be funded and what PPL's equity role might be.
A: They said CTs and reciprocating technologies are main options and CTs are quicker than CCGTs, noting CTs could be in the '30, '31 range and CCGTs in the '31, '32 range, and they are engaged with fuel cell manufacturers. On financing, they plan construction-period financing to keep projects off-balance-sheet during build, then permanent financing at COD, target utility-like risk and returns, and will consider cap structure flexibly while maintaining strong credit.
"So first on the financing question, during the construction period, we'll use construction period type financing structures that will keep that off balance sheet to limit any near-term dilution." — Joe Bergstein (CFO)
Pennsylvania rates and PPL zone advantage
Q (Agnieszka Storozynski · Seaport): She asked how they will manage regulation in Pennsylvania given the rate case stay-out and whether they will rely on DSIC or cost reductions to avoid filings. She also asked if forced curtailment risk could make the PPL zone more competitive.
A: They confirmed a 2-year stay-out that prevents base rate increases through July 1, 2028, and said they will maximize time between rate cases, continue heavy use of DSIC, manage costs, and file an updated 5-year LTIP next year (current runs through 2027). On the PPL zone, they said their near-load sites and strategic siting give a competitive advantage for reliability and interconnection and support strong customer interest.
"There's a 2-year stay-out agreement that we will not increase base rates during that period, which extends through July 1, 2028." — Joe Bergstein (CFO)
ESSA scope and LP-6 billing timing
Q (Nicholas Amicucci · Evercore): He asked whether shorter-lead technologies require a separate ESSA or can ride on CCGT contracts. He also asked if LP-6 minimum demand billing has started for two Pennsylvania data centers that began service in 2Q.
A: They said an ESSA is the contract for generation to supply a data center and can cover any suite of assets agreed with the hyperscaler or third-party developer, not just CCGTs. They added batteries are fastest to market but hyperscalers may own some; and the 2 gig LP-6 ramp runs through 2031, with the smaller ramp kicking in now under the tariff.
"The ESSA contract is for generation to supply a data center." — Vincent Sorgi (CEO)
Legislative outlook in Pennsylvania
Q (Paul Patterson · Glenrock Associates): He asked what they have heard about recent legislative activity in Harrisburg and what may happen in the next few months. He also asked whether their wholesale actions reduce pressure for regulated generation legislation.
A: They said local communities and elected officials are moving to slow projects so they can review zoning and community impacts, and developers are engaging earlier with community benefit packages; the state remains supportive if customers and communities are protected. On legislation, they said lawmakers are watching PJM and FERC changes, regulated generation is not off the table but less urgent now, and the legislature wants to see how other measures play out before acting.
"I would say that the state continues to remain supportive of this type of development in the sector as long as our customers and our communities are protected." — Vincent Sorgi (CEO)