- Approvals include retirement of 600 MW of aging coal
generation and additions of one approximately 640-MW combined cycle
natural gas plant and more than 1,000 MW of solar and energy
storage by 2027.
- PPL reaffirms capital outlook; continues to expect
approximately $12 billion in
infrastructure improvements across its utilities from 2023 to
2026.
- Company also reaffirms projected annual earnings per share
and dividend growth of 6% to 8% through at least 2026.
ALLENTOWN, Pa., Nov. 7, 2023
/PRNewswire/ -- On November 6, PPL
Corporation (NYSE: PPL) subsidiaries Louisville Gas and Electric
Company (LG&E) and Kentucky Utilities Company (KU) received
regulatory approval to retire 600 megawatts (MW) of aging coal
generation and more than 50 MWs of aging peaking units by 2027 and
replace them with an affordable, reliable and cleaner energy
mix.
In its unanimous decision, the Kentucky Public Service
Commission (KPSC) authorized LG&E and KU to build one
approximately 640 MW combined-cycle natural gas plant at its
Mill Creek facility, add 240 MW of
company-owned solar, secure power purchase agreements for nearly
650 MW of additional solar, construct 125 MW of battery storage,
and implement more than a dozen new energy efficiency programs. The
KPSC also approved Allowance for Funds Used During Construction
(AFUDC) treatment for all authorized construction projects.
Meanwhile, the KPSC deferred the retirement of Ghent Unit 2 and
Brown Unit 3, two of four aging coal units that LG&E and KU
sought to retire due to uncertainty around pending environmental
regulations. In connection with these deferred retirements, the
KPSC also denied the companies' request to build a second
combined-cycle gas plant at this time, finding that construction of
a second unit should be deferred to provide for an in-service date
in 2030, rather than 2028 as the companies had proposed.
Retirements of Ghent Unit 2 and Brown Unit 3, as well as
construction of a second combined-cycle gas plant, would require
future KPSC approval.
"We appreciate the KPSC's comprehensive review of our generation
replacement plan," said PPL President and Chief Executive Officer
Vincent Sorgi. "While the KPSC did
not approve our entire request, which we believe offered the best
and least-cost approach for our customers, the decision will ensure
we can continue to reliably meet our customers' future energy
needs, further diversify our Kentucky generation, advance a cleaner energy
mix and support the state's continued growth and economic
development."
PPL said the level of expected investment is materially
consistent with the originally proposed generation replacement
plan, which projected $2.1 billion of
investment overall, including $1.6
billion through 2026. Expected investment includes
additional costs related to the construction of the approved
combined-cycle natural gas plant and investments needed to continue
to safely operate and maintain Ghent Unit 2 and Brown Unit 3 and
comply with environmental regulations.
Following yesterday's decision, PPL today reaffirmed its capital
investment outlook and continues to expect approximately
$12 billion in infrastructure
improvements from 2023 through 2026 across its regulated
operations.
PPL today also reaffirmed its growth outlook of 6% to 8%
earnings and dividend growth a year through at least 2026.
About PPL
PPL Corporation (NYSE: PPL), headquartered
in Allentown, Pennsylvania, is a
leading U.S. energy company focused on providing electricity and
natural gas safely, reliably and affordably to more than 3.5
million customers in the U.S. PPL's high-performing, award-winning
utilities are addressing energy challenges head-on by building
smarter, more resilient and more dynamic power grids and advancing
sustainable energy solutions. For more information, visit
www.pplweb.com.
Statements contained in this news release, including
statements with respect to capital plans, forecast and growth
targets, 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. Any such forward-looking statements should be
considered in conjunction with factors and other matters discussed
in PPL Corporation's most recently filed Annual Report on Form 10-K
and other reports on file with the Securities and Exchange
Commission.
Note to Editors: Visit our media website at
www.pplnewsroom.com for additional news about PPL
Corporation.
Contacts:
|
For news media: Ryan
Hill, 610-774-4033
|
|
For financial analysts:
Andy Ludwig, 610-774-3389
|
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SOURCE PPL Corporation