Slides
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May 2025 Investor Meetings PPL CORPORATION
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2 Cautionary Statements and Factors That May Affect Future Results Statements made in this presentation about future operating results or other future events are forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from the forward-looking statements. A discussion of some of the factors that could cause actual results or events to vary is contained in the Appendix of this presentation and in PPL ’s SEC filings. Management utilizes non-GAAP financial measures such as “earnings from ongoing operations” or “ongoing earnings” in this presentation. For additional information on non-GAAP financial measures and reconciliations to the appropriate GAAP measure, refer to the Appendix of this presentation and PPL ’s SEC filings.
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PPL Overview MAY 2025 INVESTOR MEETINGS
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4 PPL Overview (1) As of April 30, 2025. We own and operate four top-quality utilities in U.S. $26.5B Year-end 2024 Rate Base $27.0B Market Capitalization (1) 3.6M Total Customers 19,200mi 2 Total Service Area Kentucky Pennsylvania Rhode Island Utility LG&E and KU PPL Electric Utilities Rhode Island Energy Coverage Area Service Area 8,000mi 2 10,000mi 2 1,200mi 2 Customers 1.0M Electric 0.3M Gas 1.5M Electric 0.5M Electric 0.3M Gas Services Electric Distribution Electric Transmission Gas Distribution Gas Transmission Regulated Generation Electric Distribution Electric Transmission Electric Distribution Electric Transmission Gas Distribution
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5 PPL Investment Highlights A total return proposition of 9% - 12% (1) Large-cap, regulated U.S. utility operating in constructive regulatory jurisdictions • Principal electric/gas utilities serving Kentucky, Pennsylvania, and Rhode Island • Future test years in each jurisdiction; 60% of capital investment plan subject to reduced regulatory lag Visible and predictable 6% - 8% annual EPS and dividend growth (2) • $20B capital investment plan, driving average annual rate base growth of 9.8% through 2028 • Risk mitigating without high-risk projects in CapEx plan and lower event risk in our geographic regions • Targeted annual O&M savings of at least $175M by 2026 from the company’s 2021 baseline Premier balance sheet supports organic growth and provides financial flexibility • Top-tier credit ratings among peers: Baa1 rating at Moody’s and A- rating at S&P • Targeting 16% - 18% FFO/CFO to Debt Compelling opportunity to expand and modernize generation • Well positioned to support customer growth and economic development, including data centers • Committed to net-zero carbon emissions by 2050 (3)(4) (1) Total return reflects PPL’s targeted EPS growth rate plus dividend yield based on targeted annualized dividend and PPL’s closing share price as of April 30, 2025. (2) Refers to PPL’s projected earnings per share and dividend growth from 2025 to 2028. (3) PPL is economically transitioning coal-fired generation and has committed to not burn coal by 2050 unless it can be mitigated with carbon dioxide removal technologies. (4) PPL is committed to a reasoned and deliberate glidepath to net-zero carbon emissions by 2050; ensuring safety, reliability and affordability remain intact during the transition.
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PPL’s Utility of the Future Strategy MAY 2025 INVESTOR MEETINGS
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7 Our Strategy: Creating Utilities of the Future Focused on delivering value for BOTH customers AND shareowners Improve the reliability and resiliency of our electric and gas networks Build scale, enable our strategy and drive sustainable growth Advance a cleaner energy future affordably and reliably Deliver operational efficiencies to support customer affordability Empower customers through digital solutions and better customer service Develop/ empower employees to thrive in a rapidly changing energy landscape
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8 Lonnie Bellar EVP Engineering & Construction and Generation PPL has an Experienced, Deep Management Team We’ve built an organization that will deliver our utility of the future strategy Wendy Stark EVP – Utilities and CLO Joe Bergstein EVP and CFO Vince Sorgi President and CEO Angie Gosman EVP and CHRO Dean Del Vecchio EVP and CTIO John Crockett President LG&E and KU and CBDO Christine Martin President PPL Electric Utilities Dave Bonenberger EVP and COO - Utilities Greg Cornett President Rhode Island Energy 30+ YEARS EXP. 30+ YEARS EXP. 30+ YEARS EXP. 25+ YEARS EXP. 40+ YEARS EXP. 35+ YEARS EXP. 35+ YEARS EXP. 25+ YEARS EXP. 35+ YEARS EXP. 25+ YEARS EXP.
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9 PPL ’s Strategic Framework Our objective is to deliver value for both customers and shareowners Vision MissionBe the best utility company in the U.S. Provide safe, affordable, reliable, sustainable energy to our customers and competitive, long-term returns to investors EnablersStrategy: Create Utilities of the Future Actions Future State Technology and innovation Highly skilled, agile and engaged workforce with diverse perspectives Top-decile safety; top- quartile reliability, customer satisfaction, cost efficiency Net-zero carbon emissions by 2050 and secure, affordable energy mix Widespread technology & automation and full DSO capabilities Operational excellence Detailed business planning and prudent risk-taking Safety-first/customer- focused cultureImprove the reliability and resiliency of our electric and gas networks Advance a cleaner energy future affordably and reliably Deliver operational efficiencies to support customer affordability Build scale, enable our strategy and drive sustainable growth Empower customers through digital solutions and better customer service Develop/empower employees to thrive in a rapidly changing energy landscape Improve system hardening/vegetation management. Expand smart grid and automation, including advanced meters. Maximize leak-prone pipe replacement in RI. Improve storm and load forecasting capabilities. Execute new generation plans in KY. Advance resource adequacy strategies in PA/RI. Advance the DSO model. Accelerate clean-energy R&D. Expand the use of data analytics/AI and consolidate IT systems to improve efficiency and customer/ business outcomes. Implement TMO initiatives. Drive economic development and customer growth. Facilitate electrification/DERs. Continue to develop and foster constructive regulatory relationships. Deploy new technology that improves the employee experience. Enhance leadership development and enterprise-wide communications. Top-tier earnings and dividend growth; premium stock valuation SPIRIT Values Safety, Passion, Innovation, Responsibility, Integrity, Teamwork Forward-looking policy/ regulatory strategies
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10 Utility of the Future: Generation Cleaner, more diverse, less centralized with significant intermittent resources Substantial behind-the-meter DERs Rooftop and community solar, battery storage, community geothermal, EV to GRID, combined heat and power plants, virtual power plants Cleaner utility-scale generation Onshore/offshore wind, solar, battery storage, low-emitting natural gas, carbon capture and advanced small modular nuclear reactors (SMRs) New generation in rate base, even in deregulated markets T&D utilities must focus on generation even if they don’t own or operate it
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11 Efficiently enable new business connections Data centers, large scale DERs, manufacturing, etc. Grid-Enhancing Technologies (GETS) Connect more renewables and reduce congestion on existing resources Utility of the Future: Transmission & Distribution Intelligent, reliable and increasingly complex, requiring enhanced technologies Smart grid, automation, data analytics and AI Automate outage detection/response, support proactive asset replacement, promote self-healing and mitigate climate risk, including wildfire risk Distribution System Operator Visibility and control of behind-the meter assets to reliably manage two-way power flows and provide market services Updated design criteria and robust cybersecurity Physically harden networks against climate impacts and protect against cyber attacks
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12 Utility of the Future: Gas LDCs Electrification will change overall gas system needs Prioritize safety and reliability investments Leak prone pipe replacement and leak detection and remediation Pressure and need to decarbonize Identify alternate fuel strategies (RNG, Hydrogen, etc.) A changing/shrinking customer base Requiring more efficient operations and engagement with stakeholders to design and pursue enabling regulatory mechanisms/policies to navigate the transition to more electrification
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13 Utility of the Future: Customer Service Digital tools that make customer interactions quick and easy Partner with customers Enable their growth and support economic development Expanded self-service options Improve the digital experience and significantly reduce costs New rate designs Incentivize right behavior for utilities and customers to reduce energy consumption and move to cleaner sources of energyImproved interconnection processes Simplify to enable quicker customer interconnects to our Grids
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14 Utility of the Future: Regulatory & Legislative Strategy Proactive engagement and forward-looking mindset Bring Deep Expertise to Look Ahead Through our own expertise and innovative approach, and leveraging the expertise of others, we look ahead to the issues on the horizon Engage with broad groups of stakeholders Understanding the issues and priorities of the many different stakeholders will help us find common ground where we can Solution and Locally Focused Building consensus among stakeholders to drive actionable solutions while maintaining agility to reflect local policies for what is needed in different jurisdictions
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PPL’s Kentucky Segment MAY 2025 INVESTOR MEETINGS
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16 Overview of LG&E and KU Largest combined utilities in Kentucky, serving over 90 counties in the state Company Highlights Service Territory ➢ Vertically-integrated utilities serving two-thirds of KY counties and small customer base in Virginia ➢ More than 1 million electric customers and over 300K natural gas customers ➢ 7,535 MW of regulated generation 2024 Rate Base (47% of PPL) 49% 27% 14% 10% $12.4B Electric Generation ($6.1B) Gas LDC Operations ($1.3B) Electric Distribution ($3.4B) Electric Transmission ($1.7B)
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17 ✓ Use of Forward Test Year for base rate cases ✓ Environmental Cost Recovery (ECR) Surcharge ✓ Retired Asset Recovery (RAR) Rider ✓ Gas Line Tracker (GLT) LG&E and KU Regulatory Overview (1) Retired Asset Recovery Rider applies to the generating plants of LG&E and KU. Differentiated among Kentucky’s utilities with a strong track record Constructive Features Mitigating Regulatory Lag (1) 2024 LG&E & KU Base Rate Case History (Past 10 Years) 2014 New rates effective June 2015 (Partial settlement) 2019 New rates effective June 2017 (Partial settlement) New rates effective April 2019 (Partial settlement) New rates effective July 2021 (Partial settlement) Differentiating LG&E and KU vs. other KY utilities The largest investor-owned, vertically integrated utility in Kentucky 1 A clear local presence and focus on our Kentucky customers 2 A service territory is primed for significant economic development 3 A proven track record of balancing the needs of stakeholders to attain results 4 Settlement included a 4-year base rate case stay out Plan to file next base rate case on or after May 30, 2025
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18 Kentucky Has Favorable Attributes to Drive Growth Low electricity rates and strong reliability have supported significant investment (1) Source: EEI, Typical Bills and Average Rates Report, Summer 2024. (2) EFOR - Equivalent Forced Outage Rate (Steam and CCGT Only). (3) Benchmark measurement: RFC (Reliability First Corporation). Exceptional 24x7 Reliability (EFOR)Lower Retail Rates (cents/kwh) 13.34 10.43 National Avg. LG&E and KU Avg. 22% LOWER THAN THE NATIONAL AVERAGE 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Rolling 12 Month Total (LG&E and KU) 3 Year Benchmark Top Quartile ~70% BETTER (1) (2) (3)
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19 Kentucky’s Success in Economic Development Record-breaking economic growth New Investments in Kentucky by Our CustomersEconomic Development Highlights ➢ LG&E and KU has been recognized by Site Selection Magazine in 11 of the last 12 years as a top utility for economic development ➢ Kentucky placed in the top 5 for economic development projects per capita in the 2024 Governor’s Cup rankings — marking the fifth year in a row ➢ A state tax incentive program for data center projects expanded statewide this spring ➢ State’s first hyperscale data center campus announced Jan. 2025 in LG&E and KU service territory; second proposed project publicly announced in March ➢ Programs to help communities prepare and to incentivize new investments ($ in billions) LG&E and KU territories have seen nearly $22B of new investment since 2018, nearly 50% of Kentucky’s $40B statewide New Jobs New Capital Investment
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20 Investment Needs to Meet Increasing Demand (1) Planned changes reflect outcome of 2022 CPCN and proposed generation additions in 2025 CPCN currently before the KPSC. A least-cost portfolio that supports reliability Kentucky Generation Fleet: Recent & Planned Changes (1) ➢ Received approval from KPSC in November 2023 to retire 600 MW of aging, coal units and replace with a combination of gas and renewables ▪ Retired Mill Creek Unit 1 in 2024 (300 MW) ▪ Mill Creek Unit 2 (297 MW) scheduled to retire in 2027 ▪ Construction ongoing for a 645 MW NGCC (Mill Creek Unit 5) ▪ Two 120 MW company-owned solar facilities ▪ 125 MW battery storage system ➢ Submitted application in February 2025 to construct additional generation due to projected increase in electricity demand ▪ Two new 645 MW NGCC units ▪ 400 MW battery storage system 4 715 4 118 2 054 2 007 6 1 2 626 104 86 5 7 47 1 5 765 202 Coal Peaking atural Gas Oil GCC Renewables Battery 20 1 Coal Peaking atural Gas Oil GCC Renewables Battery (Generation capacity in MW)
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21 $725 $875 $1 25 $1 025 $250 $ 25 $ 75 $ 00$400 $475 $475 $475$250 $425 $475 $475 $175 $100 $125 $125 $250 $225 $125 $100 $2 050 $2 425 $2 00 $2 500 2025 2026 2027 2028 Electric Generation on Coal Fired Electric Generation Coal Fired Electric Distribution Electric Transmission Gas Operations Other Kentucky Capital Investment Plan (2025 – 2028) System investments to support safe, reliable service and economic growth ➢ Non-coal fired generation primarily for new generation needs to support aging, retiring units and additional electricity demand driven by continued economic development ➢ Coal fired generation for environmental retrofits and maintenance ➢ Electric transmission and distribution to support grid resiliency and reliability in the face of stronger and more frequent storms ➢ Gas system investments to support economic growth KY’s Projected Capital Investments by Year and Type ($ in millions) Note: Capital expenditures rounded to the nearest $25 million for simplicity.
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22 Kentucky Regulatory and Legislative Priorities Supporting the generation and delivery of safe, reliable and affordable energy ➢ IRP • Hearing set for May ➢ ECR • Allows for real time cost recovery of environmental controls ➢ CPCN • Two 645 MW NGCCs • 400 MW Battery Storage • SCR on Ghent Unit 2 ➢ Rate case Integrated Resource Plan CPCN, ECR and Rate Case Long-term priorities Legislation related to generation transition ➢ Maintaining affordability and reliability • Continue cultivating new industrial sites and secure new, large load prospects including additional data center load • Influencing state energy strategy ➢ Executive Orders ➢ 2024 MATS rule • Already implemented tighter controls, with thinner compliance margins and undertaking more stringent testing protocols. • Rule does not impact our ability to continue to provide safe, reliable and affordable energy to our customers while continuing to comply with environmental regulations
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PPL’s Rhode Island Segment MAY 2025 INVESTOR MEETINGS
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24 Overview of Rhode Island Energy (1) Rhode Island Energy rate base excludes acquisition-related adjustments for non-earning assets. The primary electricity T&D and natural gas distribution provider in RI Company Highlights Service Territory ➢ Decoupled, T&D only electric and gas utility ➢ Service area of ~1,200 mi2, covering substantially all of Rhode Island ➢ ~515,000 electric customers and ~280,000 gas customers ➢ Significant geographical overlap across electric and gas operational territories Electric only Electric and Gas Gas only 2024 Rate Base (14% of PPL) 33% 25% 42% $3.8B Electric Distribution ($1.3B) Gas LDC Operations ($1.6B) Electric Transmission ($1.0B) (1)
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25 Rhode Island Regulatory Overview (1) Projected capital investments for 2025 to 2028. (2) Based on regulatory framework established in 2018, which included a multi-year framework for Rhode Island Energy electric and gas base rates based on a historical test year with the ability to forecast certain O&M categories for future years. All other O&M expenses are increased by inflation each year. Includes annual rate reconciliation mechanism that incorporates allowance for anticipated capital investments. Constructive regulation allows for recovery of costs with minimal regulatory lag Constructive Features Mitigating Regulatory Lag RIE Rate Case History (Past 10 Years) Last base rate case was settled with new rates effective Sept. 2018 20252014 PPL completed the acquisition of RIE in May 2022 ✓ FERC Formula Transmission Rates ✓ Multi-year rate plans for electric and gas distribution ✓ Infrastructure, Safety, and Reliability (ISR) tracker ▪ Annual recovery mechanism for certain capital and O&M costs for electric and gas distribution projects filed with the RIPUC ✓ Performance-based incentive revenues ▪ Includes electric system performance, energy efficiency, natural gas optimization, and renewables incentives ✓ Revenue decoupling ✓ Storm cost recovery ✓ Pension expense tracker ✓ Energy Efficiency tracker 2018 31% 54% 15% FERC Tracker Base $3.3B Capital Investment Tracking Mechanisms (1) (2) 80% - 90% near real-time capex recovery Completed TSA with National Grid in Sept. 2024
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26 $ 50 $ 75 $ 25 $ 00 $200 $ 00 $275 $250 $225 $250 $250 $225 2025 2026 2027 2028 Electric Distribution Electric Transmission Gas Operations RIE Capital Investment Plan (2025 – 2028) Prudent investment plan that supports safe and reliable delivery of energy in RI ➢ Electric distribution investments to improve asset condition, strengthen reliability and support new customer growth in the region ▪ Includes about $150 million for Advanced Metering Functionality ➢ Electric transmission investments to maintain grid stability and resiliency ➢ Gas operation investments that focus on safety, while reducing emissions from the gas system ▪ Key investments include gas main replacement and rehabilitation RIE’s Projected Capital Investments by Year and Type ($ in millions) Note: Capital expenditures rounded to the nearest $25 million for simplicity.
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27 Rhode Island’s Clean Energy Future External factors are driving a reevaluation 27 ➢ Nation-leading goals to be 100% net renewables by 2033 and net-zero carbon economy-wide by 2050 ➢ Rhode Island Energy plays a critical role in procurement of renewable supply and in enabling needed infrastructure investments ➢ Offshore Wind viability is under a cloud of uncertainty, although our proposed procurement of an additional 200 MW remains under discussion through June 30, 2025 ➢ Ongoing Future of Gas Docket is scheduled for final report by year-end, and ongoing affordability concerns have added pressure to the need for a pathway that does not mandate broad system decommissioning and which allows for continued reliance on natural gas for both heating and electricity generation
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28 Focused on Supporting Customer Affordability Engaging with stakeholders to address key issues of energy supply and public policy Breakdown of RIE Residential Electric Customer Bill Supply 41% Public Policy 18% Distribution 27% Transmission 14% Supply 44% Public Policy 21% Distribution 22% Transmission 12% WINTER 2021 AVERAGE RESIDENTIAL WINTER 2024 AVERAGE RESIDENTIAL $126 per month (500 KWH) $172 per month (500 KWH) Energy supply and public policy costs have shifted to a higher percentage of our customers’ bills 59% 65% ➢ Two-thirds of customer bills are for costs that RIE does not control ➢ Energy supply costs have risen, driven by higher commodity costs that are impacted by regional supply constraints ➢ Public policy charges, such as mandated financial assistance, energy efficiency and renewable energy programs also continue to increase each year as the state moves toward 2033 100% net renewables target ➢ RIE has taken an active role to engage with key stakeholders – educating them on these critical issues and developing new alternatives to support our customers
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29 Natural Gas in New England How big is the opening for an expanded role for natural gas? ➢ Natural gas is currently constrained in New England (three primary pipelines and dependence on LNG) ➢ There is a growing discussion on pipeline expansion and adding natural gas generation to support affordability and resource adequacy
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30 Rhode Island Regulatory and Legislative Priorities Multi-year strategy is underpinned by expanded outreach and engagement ➢ Pursuit of expanded supply opportunities and changes to procurement practices ➢ Lower impact of public policy costs on customers’ bills ➢ Continue education on cost- drivers Affordability Sustainability Reliability and Resource Adequacy ➢ Guard against premature proposals that limit optionality on pathway to decarbonization ➢ Continue support for renewables but also expand narrative beyond narrow focus on solar and offshore wind ➢ Advance discourse on utility role in potential ownership of generation ➢ Continue investments in both electric and gas infrastructure
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PPL’s Pennsylvania Segment MAY 2025 INVESTOR MEETINGS
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32 Overview of PPL Electric Utilities A Powerful Network in Central and Eastern Pennsylvania Company Highlights Service Territory ➢ Electric T&D only business serving central and eastern PA ➢ Maintains over 50,000 miles of transmission and distribution lines ➢ Over 1.5 million customers across 29 counties 2024 Rate Base (39% of PPL) 44% 56% $10.3B Electric Transmission ($5.8B) Electric Distribution ($4.5B)
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33 PPL Electric Utilities Regulatory Overview (1) Last Pennsylvania distribution base rate case was effective 1/1/2016 with an undisclosed ROE. Constructive regulatory framework supports ability to minimize rate case activity ✓ FERC Formula Transmission Rates ✓ Distribution System Improvement Charge (DSIC) ✓ Smart Meter Rider ✓ Storm Cost Recovery ✓ Fully future test years Constructive Features Mitigating Regulatory Lag 2014 2018 2025 Last base rate case was settled in Nov. 2015 with new rates effective Jan. 2016 PPL Electric Rate Case History (Past 10 Years) (1) Tracker BaseFERC Capital Investment Tracking Mechanisms 50% 25% 25% $6.7B Improving recovery of distribution capex • Increased DSIC eligible investments increased from ~$500 million in prior plan to over $700 million • Waiver approved to increase DSIC revenue cap to 7.5% (up from 5%) 75% near real-time recovery
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34 Installing smart grid to automatically reroute power and reduce truck rolls One of the Most Advanced Electricity Grids in the U.S. (1) DER: Distributed Energy Resources. (2) Based on 2023 IEEE SAIFI reliability performance. Investments equip system for future growth while driving improved performance Top Quartile Reliability Performance (Nationally) Avoided ~3M Outages since 2015 thanks to smart grid technology 136% increase in DERs connected in 2024 compared to 2020 What We are Doing Differently 1 Deploying innovative, award-winning Predictive Failure Technology 2 Supporting Renewable Growth with DER Management System technology (DERMS) 3 Expanding Transmission Capacity Using Dynamic Line Rating Technology 4 (1) (2)
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35 27% 2 % 28% 26% 25% 24% 22% 2 % 20% 20% 25% 2014 2015 2016 2017 2018 201 2020 2021 2022 202 2024 Business Growth and Opportunity Capital investments driving reliability improvements for customers ➢ Driving O&M efficiencies and customer satisfaction with digital tools leveraging AI technology ➢ 2025 distribution capital expenditures for storm hardening • Additional $70M identified to de-risk storms • Continue accelerated vegetation management O&M ➢ 2024 improvements are already paying off • Accelerated $8M in tree trimming • Tree-related outages decreased by 14% • Customer minutes lost decreased by 22% ➢ Strong statewide focus on economic development ➢ Data center growth provides additional transmission investment upside Improving O&M Efficiency (O&M vs. Revenue) Pennsylvania Capital Investment Plan (2025-2028) $850 $875 $825 $775 $650 $ 75 $ 00 $875 2025 2026 2027 2028 Electric Transmission Electric Distribution 2024 O&M IMPACTED BY INCREASED STORM ACTIVITY ($ in millions) Note: Capital expenditures rounded to the nearest $25 million for simplicity.
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36 Data Center Outlook Pennsylvania continues to attract data center interest (1) The data centers in advanced stages represent projects that have signed agreements with developers and costs being incurred are reimbursable by the developers if they do not move forward with the projects. (2) Load commitments obligate the data center customers to pay significant portion of a project’s peak load until they pay for service in an amount equal to the socialized cost of the upgrades. (3) Currently estimate that for the first 1GW of data center demand connected to the grid, our residential customers may save nearly 10% on the transmission portion of their bill, assuming $100M of network upgrades (~$3 per month). The percentage and amount of customer savings year-over-year will depend on several factors including timing of load ramp, number of investments required and the peak load on our system. PA Data Center Requests in Advanced Stages Requested Load In-Service Dates (in GW) ➢ Nearly 11 GW in advanced stages (up from ~9 GW) represents potential transmission capital investment of $700M - $850M ($400M reflected in capex plan) (1) • Includes executed contracts with minimum load commitments that protect customers (2) ➢ Active data center requests have increased to over 50 GW from 2026 – 2034 ➢ Data center connections will lower transmission costs for retail customers as load ramps up (3) ➢ Current data center projects within the PPL EU service territory are in various stages of approval process, with the majority already attaining PJM approval • Regardless of PJM status, all these data center projects will require state siting approval following their PJM approval 0.1 1.0 2.7 5.6 8.7 .8 10.5 10.6 10.7 10. 2025 2026 2027 2028 202 20 0 20 1 20 2 20 20 4 PA: Signed Agreements cumulative M s
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37 Resource Adequacy Update Interrelated channels of activity highlight urgent need for action FERC litigation related to PJM capacity market administration • Capacity market design changes • Auction delays • Governor Shapiro settlement creates capacity market floor and ceiling Wholesale (PJM) & Federal (FERC) On the record testimony at multiple regulatory and legislative hearings Interventions at FERC and numerous communications with PJM leadership Op-ed published in prominent media outlets Legislation introduced in the House to authorize utility investment in generation; secured sponsorship in the Senate Advocating for PUC Motion to study long-term resource needs and availability PPL Electric Utilities Actions State Legislative & Regulatory (PUC) Increasing focus on resource adequacy • Multiple legislative proposals – none comprehensive • Pennsylvania Governor Shapiro Lightning Energy Plan • Legislative and regulatory hearings
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PPL’s Investment Proposition MAY 2025 INVESTOR MEETINGS
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39 Delivering Strong, Sustainable Growth (1) Represents the midpoint of PPL’s 2022 pro forma forecast range of $1.40 to $1.55 per share reflecting a full year of earnings contributions from Rhode Island Energy (RIE). RIE was acquired by PPL in May 2022. (2) Represents the midpoint of PPL’s 202 forecast range of $1.50 - $1.65 per share. (3) Represents the midpoint of PPL’s 2024 original forecast range of $1.6 - $1.75 per share. Updated forecast range to $1.67 - $1.73 per share in November 2024. (4) Represents the midpoint of PPL’s 2025 forecast range of $1.75 - $1.87 per share. Track record of achieving long-term growth targets (1) (Earnings per share) Achieved $1.60 (8% growth) Achieved $1.69 (7% growth) (4) $1.48 $1.58 $1.6 $1.81 2022 Forecast Midpoint Pro forma 202 Forecast Midpoint 2024 Forecast Midpoint Original 2025 Forecast Midpoint 2026 2027 2028 6% - 8% CAGR 7% Growth 7% Growth (2) (3) 7% Growth
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40 Constructive Regulatory Jurisdictions (1) Rhode Island rate base excludes acquisition-related adjustments for non-earning assets. (2) In 2018, Rhode Island established a multi-year framework for Rhode Island Energy based on a historical test year but with the ability to forecast certain O&M categories for future years. All other O&M is increased by inflation each year. Includes annual rate reconciliation mechanism that incorporates allowance for anticipated capital investments. Supportive of prudent investments in our electric and gas networks Rate Base by Segment (Year-end rate base, $ in billions) Key Regulatory Highlights ➢ Contemporaneous recovery for ~60% of capital plan • FERC formula rates for transmission in both PA and RI • ~80% of RI planned distribution capital investments relate to infrastructure, safety, and reliability (projected to be ISR eligible) • DSIC mechanism in PA provides hedge against lower sales volumes, storms and inflation outside of rate cases • ECR mechanism in KY provides recovery of additional environmental investments, if needed for regulatory compliance (ELGs, CCRs, etc.) ➢ Future test years in all three jurisdictions for base rate cases • Multi-year rate plan applied in last RI base rate case • History of rate case settlements in all three jurisdictions KY 47% PA 39% RI 14% $26.5B 2024 Rate Base (1) (2)
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41 $2.1 $2.4 $2. $2.5 $1.5 $1. $1.7 $1.7 $0.8 $0. $0. $0.8$4. $5.2 $5.5 $4. 2025 2026 2027 2028 K Regulated PA Regulated RI Regulated 2025 – 2028 Capital Investment Plan Note: Totals may not sum due to rounding. $20B capex plan to enable the delivery of safe, reliable and affordable energy ($ in billions) ➢ Over $8 billion of electric and gas distribution investments to improve service and protect our customers against current and future weather ➢ Approximately $6 billion of electric transmission investments to strengthen reliability and resiliency of the electricity grid ➢ Approximately $4 billion of investments to expand and modernize generation fleet in Kentucky $20 billion of current planned capital investments
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42 $26.5 $2 .2 $ 2. $ 5. $ 8.6 2024 2025 2026 2027 2028 Electric Distribution Electric Transmission Electric Generation on Coal Fired Electric Generation Coal Fired Gas Operations Annual Rate Base CAGR of 9.8% Through 2028 Note: Totals may not sum due to rounding. (1) Rhode Island rate base excludes acquisition-related adjustments for non-earning assets. Driven by significant investments in T&D infrastructure and new generation (Year-end rate base, $ in billions) (1) ➢ Rate base growth increased to 9.8% over updated plan period vs. 6.3% in prior plan period ➢ Two-thirds of rate base relates to investments in electric transmission and distribution infrastructure ➢ Percentage of rate base related to coal generation declines to below 11% by 2028 +9.8% CAGR
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43 $650 $1 000 $ 00 $ 0 $260 $250 $164 $60 $108 $ 50 $551 $ 04 $428 $1 50 2025 2026 2027 2028 PPL Capital Funding Louisville Gas & Electric Kentucky tilities PPL Electric tilities Rhode Island Energy ($ in millions) Balance Sheet Strength Provides Financial Flexibility (1) Debt maturities from 2025 - 2028 as of March 31, 2025. (2) Excludes Rhode Island Energy’s sinking fund payments that are due annually until the bond's final maturity less than $1 million in 2025). Strong credit metrics position PPL among the best in the sector ➢ Premier credit ratings among peers • Baa1 rating at Moody’s • A- rating at S&P ➢ Supported by strong credit metrics • Targeting 16% - 18% FFO/CFO to debt • Holding company debt projected to remain less than 25% of total debt ➢ Project equity needs of $2.5 billion through 2028 to support capital investment plan • Base financing plan is to use ATM program and complement with other equity-like financing structures • Issued ~$170M of equity via the ATM year-to- date, utilizing forward sales contract feature ➢ Limited floating rate debt exposure • ~5% of total long-term debt (2) (1) Debt Maturity Outlook
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Appendix Supplemental Information MAY 2025 INVESTOR MEETINGS
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45 Company Segment Type 2025 2026 2027 2028 4-Year Total Electric Distribution $650 $975 $900 $875 $3,400 Electric Transmission $850 $875 $825 $775 $3,325 PA Subtotal $1,500 $1,850 $1,725 $1,650 $6,725 Electric Distribution $400 $475 $475 $475 $1,825 Electric Transmission $250 $425 $475 $475 $1,625 Electric Generation Non-Coal Fired $725 $875 $1,325 $1,025 $3,950 Electric Generation Coal Fired $250 $325 $375 $300 $1,250 Gas Operations $175 $100 $125 $125 $525 Other $250 $225 $125 $100 $700 KY Subtotal $2,050 $2,425 $2,900 $2,500 $9,875 Electric Distribution $350 $375 $325 $300 $1,350 Electric Transmission $200 $300 $275 $250 $1,025 Gas Operations $225 $250 $250 $225 $950 RI Subtotal $775 $925 $850 $775 $3,325 PPL Corporation Total Utility Capex $4,325 $5,200 $5,475 $4,925 $19,925 Pennsylvania Kentucky Rhode Island Capital Expenditure Plan ($ in millions)
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46 Company Segment Type 2024 2025 2026 2027 2028 Electric Distribution $4.5 $4.9 $5.4 $6.1 $6.5 Electric Transmission $5.8 $6.2 $6.7 $7.2 $7.6 PA Subtotal $10.3 $11.0 $12.1 $13.3 $14.2 Electric Distribution $3.4 $3.7 $4.0 $4.3 $4.6 Electric Transmission $1.7 $2.0 $2.3 $2.7 $3.1 Electric Generation Non-Coal Fired $1.7 $2.5 $3.3 $4.4 $5.2 Electric Generation Coal Fired $4.4 $4.3 $4.3 $4.2 $4.1 Gas Operations $1.3 $1.5 $1.5 $1.6 $1.7 KY Subtotal $12.4 $14.0 $15.4 $17.3 $18.6 Electric Distribution $1.3 $1.4 $1.7 $1.8 $1.9 Electric Transmission $1.0 $1.1 $1.2 $1.4 $1.6 Gas Operations $1.6 $1.8 $2.0 $2.1 $2.3 RI Subtotal $3.8 $4.2 $4.8 $5.3 $5.8 PPL Corporation Total Rate Base $26.5 $29.2 $32.3 $35.9 $38.6 Pennsylvania Rhode Island Kentucky Note: Totals may not sum due to rounding. (1) Rhode Island rate base excludes acquisition-related adjustments for non-earning assets. Projected Rate Base (Year-End) (1) (1) (Year-end rate base, $ in billions)
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47 Note: As of March 31, 2025. Totals may not sum due to rounding. (1) Amounts reflect the timing of any put option on municipal bonds that may be put by the holders before the bonds' final maturities. (2) Amounts reflect sinking fund payments that are due annually until the bond's final maturity. (3) Does not reflect unamortized debt issuance costs and unamortized premiums (discounts) totaling ($167 million). Debt Maturities ($ in millions) 2025 2026 2027 2028 2029 2030+ Total PPL Capital Funding $0 $650 $0 $1,000 $0 $2,146 $3,796 PPL Electric Utilities $0 $0 $108 $0 $116 $5,075 $5,299 Louisville Gas & Electric(1) $300 $90 $260 $0 $0 $1,839 $2,489 Kentucky Utilities(1) $250 $164 $60 $0 $0 $2,615 $3,089 Rhode Island Energy(2) $1 $0 $0 $350 $0 $1,650 $2,001 Total Debt Maturities (3) $551 $904 $428 $1,350 $116 $13,325 $16,674
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48 Entity Facility Expiration Date Capacity Borrowed LCs & CP Issued Unused Capacity PPL Capital Funding Syndicated Credit Facility Dec-2029 $1,500 $0 $427 $1,073 Bilateral Credit Facility Feb-2026 $100 $0 $0 $100 Bilateral Credit Facility Feb-2026 $100 $0 $55 $45 Subtotal $1,700 $0 $482 $1,218 PPL Electric Utilities Syndicated Credit Facility Dec-2029 $750 $0 $56 $694 Louisville Gas & Electric Syndicated Credit Facility Dec-2029 $600 $0 $89 $511 Kentucky Utilities Syndicated Credit Facility Dec-2029 $600 $0 $209 $391 Total PPL Credit Facilities $3,650 $0 $836 $2,814 Note: As of March 31, 2025. Totals may not sum due to rounding. (1) Letters of Credit (LCs) and Commercial Paper (CP). (2) Commercial paper issued reflects the undiscounted face value of the issuance. (3) Includes a $250 million borrowing sublimit for RIE and $1.25 billion sublimit for PPL Capital Funding. At March 31, 2025, PPL Capital Funding had $427 million of commercial paper outstanding and RIE had no commercial paper outstanding. (4) Uncommitted credit facility. Liquidity Profile ($ in millions) (1)(2) (3) (4)
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49 Note: As of March 31, 2025. PPL ’s Credit Ratings PPL Electric UtilitiesLG&E and KU Credit Rating Secured Unsecured Long-term Issuer Outlook S&P NR BBB+ A- Stable Moody’s NR Baa1 NR Stable Credit Rating Secured Unsecured Long-term Issuer Outlook S&P A NR A- Stable Moody’s A1 NR A3 Stable Credit Rating Secured Unsecured Long-term Issuer Outlook S&P A+ NR A Stable Credit Rating Secured Unsecured Long-term Issuer Outlook S&P NR NR A- Stable Moody’s NR NR Baa1 Stable Moody’s A1 NR A3 Stable PPL Corporation PPL Capital Funding Rhode Island Energy Credit Rating Secured Unsecured Long-term Issuer Outlook S&P A A- A- Stable Moody’s NR A3 A3 Stable
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Appendix Regulatory Overview MAY 2025 INVESTOR MEETINGS
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51 15% 1% 54% 25% 50% 25% 5 % 5% 6% $6.7B $3.3B$9.9B Constructive Regulatory Mechanisms Reduce Lag (1) Reflects AFUDC treatment approval for advanced metering and generation construction projects in Kentucky. 60% of PPL ’s capital investment plan is subject to reduced regulatory lag 2025 – 2028 Capital Plan by Projected Earnings Recovery Mechanism KY PA RI Reduces the impact of regulatory lag on earnings for investments in between base rate cases AFUDC Tracker BaseFERC 60% near real-time recovery (1) (1) Total PPL
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52 2024 Rate Base Year-End Rate Base ($B) $10.3 % of Total PPL Rate Base 39% Allowed ROE Electric Transmission 10.0% + adders Electric Distribution DSIC 10.0% Capital Structure (2024) Equity 56% Debt 44% Last Base Rate Case (rates effective date) 1/1/2016 Test Year Forward Test Year (1) Adders include 50-basis points for RTO membership and incremental returns for certain projects. (2) Last Pennsylvania distribution base rate case was effective January 1, 2016 with an undisclosed ROE. (3) The equity return rate used in the DSIC calculation is calculated by the Commission in the most recent Quarterly Report on the Earnings of Jurisdictional Utilities. Effective April 1, 2025, the cost of equity is 10.0%. (4) Alternative ratemaking is available for next distribution base rate case. Pennsylvania Regulatory Overview PPL Electric Utilities ✓ FERC Formula Transmission Rates ✓ Distribution System Improvement Charge (DSIC) ▪ An alternative ratemaking mechanism providing more-timely cost recovery of qualifying distribution system capital expenditures ✓ Pass through of energy purchases ✓ Smart Meter Rider ✓ Storm Cost Recovery ✓ Alternative Ratemaking ▪ In Pennsylvania, there are various mechanisms available including: decoupling mechanisms, performance-based rates, formula rates, and multi-year rate plans (2) (1) (4) (3) Key Attributes Constructive Features Mitigating Regulatory Lag
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53 A Review of the DSIC Mechanism in Pennsylvania Reduces regulatory lag associated with certain electric distribution investments Purpose ➢ Distribution system improvement charge (DSIC) allows PPL Electric to recover reasonable and prudent costs incurred to repair, improve, or replace eligible property between base rate cases. ➢ The DSIC also provides PPL Electric with the resources to accelerate the replacement of aging infrastructure, comply with evolving regulatory requirements, and design and implement solutions to regional supply problems. Eligible Property ➢ For PPL Electric, DSIC-eligible capital investments are approved by the PAPUC through 5-year, long-term infrastructure improvement plans (LTIIP). ➢ DSIC-eligible property consists of poles and towers, overhead conductors, underground conduit and conductors, and any fixture or device related to the aforementioned eligible property. It also includes costs related to highway relocation projects where an electric distribution company must relocate its facilities and other related capitalized costs. Calculation ➢ The DSIC is calculated to recover the fixed costs (depreciation and pre-tax return) of eligible plant additions not previously reflected in rates or rate base. ➢ The pre-tax return is calculated using the statutory state and federal income tax rates PPL Electric’s actual capital structure and actual cost rates for long-term debt and preferred stock as of the last day for the three-month period ending one month prior to the effective date of the DSIC and subsequent updates. ➢ The cost of equity will be the equity return rate approved in PPL Electric’s last fully litigated base rate proceeding for which a final order was entered not more than two years prior to the effective date of the DSIC. If more than two years shall have elapsed between the entry of such a final order and the effective date of the DSIC, then the equity return rate used in the calculation will be the equity return rate calculated by the Commission in the most recent Quarterly Report on the Earnings of Jurisdictional Utilities released by the Commission. Effective April 1, 2025, this cost of equity is 10.0%. ➢ The DSIC is updated on a quarterly basis to reflect eligible plant additions placed in service during the three -month periods ending one month prior to the effective date of each DSIC Update. For example, the DSIC rate effective April 1, 2025, reflects plan additions from December through February 2025. Consumer Safeguards ➢ Effective February 28, 2025, PPL Electric's DSIC charge cannot exceed 7.5% of the amount billed to customers for distribution service (including all applicable clauses and riders) as determined on an annualized basis. This cap is effective until the earlier of the date of rates established in the PPL Electric’s next base rate case or until the end of the PPL Electric’s 202 -2027 LTIIP. At that time, it will return to the statutory limit of 5.0%. ➢ The DSIC is reset at zero if the company’s return as reported in the quarterly earnings report shows that the utility will earn a rate of return that would exceed the allowable rate of return. ➢ The DSIC will be reset at zero upon application of new base rates to customer billings that provide for prospective recovery of the annual costs that had previously been recovered under the DSIC.
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54 2024 Rate Base Year-End Rate Base ($B) $12.4 % of Total PPL Rate Base 47% Allowed ROE Base 9.425% ECR & GLT Mechanisms 9.35% Capital Structure (2024) Equity 53% Debt 47% Last Base Rate Case (rates effective date) 7/1/2021 Test Year Forward Test Year (1) Retired Asset Recovery rider applies to the generating plants of LG&E and KU. In October 2024, LG&E made an initial filing under this rider (Docket: 2024-00317). Kentucky Regulatory Overview Louisville Gas & Electric and Kentucky Utilities ✓ Environmental Cost Recovery (ECR) Surcharge ▪ Provides near real-time recovery for approved environmental projects related to coal-fired generation ✓ Gas Line Tracker (GLT) ▪ Approved mechanism for LG&E’s recovery of certain costs associated with gas transmission lines, gas service lines, and leak mitigation ✓ Demand-Side Management (DSM) Cost Recovery ▪ Provides recovery of energy efficiency programs ✓ Retired Asset Recovery (RAR) Rider ▪ Provides recovery of and on remaining net book value of unit, obsolete inventory, and uncollected costs of removal over a 10-year period from retirement date ✓ Fuel Adjustment Clause (FAC) ▪ Pass through of costs of fuel and energy purchases ✓ Gas Supply Clause (GSC) ▪ Pass through of costs of natural gas supply Key Attributes Constructive Features Mitigating Regulatory Lag (1)
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55 2024 Rate Base Year-End Rate Base ($B) $3.8 % of Total PPL Rate Base 14% Allowed ROE Electric Transmission 10.57% + adders Electric Distribution 9.275% Gas Distribution 9.275% Capital Structure (2024) Equity 51% Debt 49% Last Base Rate Case (rates effective date) 9/1/2018 Test Year Multi-year (1) Reflects base allowed ROE. Rhode Island Energy receives a 50-basis point RTO adder and additional project adder mechanisms that may increase the allowed ROE up to 11.74%. (2) Reflects base allowed ROE. Rhode Island Energy can earn higher returns than the base allowed ROE through incentive mechanisms and efficiencies that are supported by customer sharing mechanisms. Earnings sharing with customers of 50% when earned ROE is between 9.275% and 10.275% and increases to 75% sharing for customers when earned ROE exceeds 10.275%. (3) Based on regulatory framework established in 2018, which included a multi-year framework for Rhode Island Energy electric and gas base rates based on a historical test year with the ability to forecast certain O&M categories for future years. All other O&M expenses are increased by inflation each year. Includes annual rate reconciliation mechanism that incorporates allowance for anticipated capital investments. Rhode Island Regulatory Overview Rhode Island Energy ✓ FERC Formula Transmission Rates ✓ Multi-year rate plans for electric and gas distribution ✓ Infrastructure, Safety, and Reliability (ISR) tracker ▪ Annual recovery mechanism for certain capital and O&M costs for electric and gas distribution projects filed with the RIPUC ✓ Performance-based incentive revenues ▪ Includes electric system performance, energy efficiency, natural gas optimization, and renewables incentives ✓ Revenue decoupling ✓ Storm cost recovery ✓ Pension expense tracker ✓ Energy Efficiency tracker(3) (1) (2) (2) Key Attributes Constructive Features Mitigating Regulatory Lag
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Appendix Reconciliations and Disclaimers MAY 2025 INVESTOR MEETINGS
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57 After-Tax (Unaudited) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 ($ in millions) KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total Reported Earnings (1) 223$ 184$ 70$ (63)$ 414$ 190$ 149$ 64$ (96)$ 307$ Less: Special Items (expense) benefit: Talen litigation costs, net of tax of $0(2) - - - (1) (1) - - - - - Acquisition integration, net of tax of ($2), $4, $4, $17 (3) - - 7 (14) (7) - - (14) (66) (80) IT transformation, net of tax of $1, $0, $3(4) (1) - (1) (10) (12) - - - - - Energy efficiency programs settlement, net of tax of $0(5) - - (8) - (8) - - - - - Office relocation and related costs, net of tax of $0, $1(6) (1) (1) - - (2) - - - - - Strategic corporate initiatives, net of tax of $0, $0, $1(7) - - - - - (1) (1) - (2) (4) PPL Electric billing issue, net of tax of $4(8) - - - - - - (11) - - (11) Total Special Items (2) (1) (2) (25) (30) (1) (12) (14) (68) (95) Earnings from Ongoing Operations 225$ 185$ 72$ (38)$ 444$ 191$ 161$ 78$ (28)$ 402$ After-Tax (Unaudited) Three Months Ended March 31, 2025 Three Months Ended March 31, 2024 per share – diluted KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total Reported Earnings (1) 0.30$ 0.25$ 0.10$ (0.09)$ 0.56$ 0.25$ 0.21$ 0.09$ (0.13)$ 0.42$ Less: Special Items (expense) benefit: Acquisition integration (3) - - 0.01 (0.02) (0.01) - - (0.02) (0.09) (0.11) IT transformation(4) - - - (0.02) (0.02) - - - - - Energy efficiency programs settlement(5) - - (0.01) - (0.01) - - - - - PPL Electric billing issue(8) - - - - - - (0.01) - - (0.01) Total Special Items - - - (0.04) (0.04) - (0.01) (0.02) (0.09) (0.12) Earnings from Ongoing Operations 0.30$ 0.25$ 0.10$ (0.05)$ 0.60$ 0.25$ 0.22$ 0.11$ (0.04)$ 0.54$ Reconciliation of Segment Reported Earnings to Earnings from Ongoing Operations (1) Reported Earnings represents Net Income. (2) PPL incurred legal expenses related to litigation associated with its former affiliate. (3) Primarily integration and related costs associated with the acquisition of Rhode Island Energy. (4) Costs associated with PPL’s restructuring and rebuilding of its IT infrastructure organization and systems. (5) Costs associated with a settlement agreement regarding energy efficiency programs prior to PPL's acquisition of Rhode Island Energy. (6) Certain costs related to the relocation of corporate offices. (7) Represents costs primarily related to PPL’s corporate centralization and other strategic efforts. (8) Certain expenses related to billing issues.
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58 After-Tax (Unaudited) 2025 Forecast Range (per share - diluted) Midpoint High Low Estimate of Reported Earnings 1.77$ 1.83$ 1.71$ Less: Special Items (expense) benefit:(1) Acquisition integration(2) (0.01) (0.01) (0.01) IT transformation(3) (0.02) (0.02) (0.02) Energy efficiency programs settlement(4) (0.01) (0.01) (0.01) Total Special Items (0.04) (0.04) (0.04) Forecast of Earnings from Ongoing Operations 1.81$ 1.87$ 1.75$ (1) Reflects only special items recorded through March 31, 2025. PPL is not able to forecast special items for future periods. (2) Primarily integration and related costs associated with the acquisition of Rhode Island Energy. (3) Costs associated with PPL’s restructuring and rebuilding of its IT infrastructure organization and systems. (4) Costs associated with a settlement agreement regarding energy efficiency programs prior to PPL's acquisition of Rhode Island Energy. Reconciliation of PPL ’s Earnings Forecast
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59 Forward-Looking Information Statement Statements contained in this presentation, including statements with respect to future earnings, cash flows, dividends, financing, regulation and corporate strategy, are “forward-looking statements” within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements are subject to a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: weather conditions affecting customer energy usage and operating costs; asset or business acquisitions and dispositions, and our ability to realize expected benefits from them; pandemic health events or other catastrophic events, including severe weather, and their effect on financial markets, economic conditions, supply chains and our businesses; the outcome of rate cases or other cost recovery or revenue proceedings; the direct and indirect effects on PPL or its subsidiaries, or their business systems, of cyber-based intrusion or threat of cyberattacks; development, adoption and the use of artificial intelligence by us or third-party vendors; capital market and economic conditions, including interest rates, inflation and the potential effects of new tariffs; decisions regarding capital structure; market demand for energy in our service territories; the effect of any business or industry restructuring; the profitability and liquidity of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating performance of our facilities; the length of scheduled and unscheduled outages at our generating plants; environmental conditions and requirements, and the related costs of compliance; system conditions and operating costs; development of new projects, markets and technologies; performance of new ventures; receipt of necessary government permits and approvals; the impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries; the outcome of litigation involving PPL Corporation and its subsidiaries; risks related to wildfires, including costs of potential regulatory penalties and other liabilities, and damages in excess of insurance liability coverage; stock price performance; the market prices of debt and equity securities and the impact on pension income and resultant cash funding requirements for defined benefit pension plans; the securities and credit ratings of PPL Corporation and its subsidiaries; changes in political, regulatory or economic conditions in states, regions or countries where PPL Corporation or its subsidiaries conduct business, including any potential effects of threatened or actual cyberattack, terrorism, or war or other hostilities; new state, federal or applicable foreign legislation or regulatory developments, including new tax legislation; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such important factors and in conjunction with factors and other matters discussed in PPL Corporation's Form 10-K and other reports on file with the Securities and Exchange Commission.
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60 Definitions of Non-GAAP Financial Measures Management utilizes "Earnings from Ongoing Operations" or “Ongoing Earnings” as a non-GAAP financial measure that should not be considered as an alternative to net income, an indicator of operating performance determined in accordance with GAAP. PPL believes that Earnings from Ongoing Operations is useful and meaningful to investors because it provides management's view of PPL's earnings performance as another criterion in making investment decisions. In addition, PPL's management uses Earnings from Ongoing Operations in measuring achievement of certain corporate performance goals, including targets for certain executive incentive compensation. Other companies may use different measures to present financial performance. Earnings from Ongoing Operations is adjusted for the impact of special items. Special items are presented in the financial tables on an after-tax basis with the related income taxes on special items separately disclosed. Income taxes on special items, when applicable, are calculated based on the statutory tax rate of the entity where the activity is recorded. Special items may include items such as: • Gains and losses on sales of assets not in the ordinary course of business. • Impairment charges. • Significant workforce reduction and other restructuring effects. • Acquisition and divestiture-related adjustments. • Significant losses on early extinguishment of debt. • Other charges or credits that are, in management's view, non-recurring or otherwise not reflective of the company's ongoing operations.