Earnings call transcript Q1 2023

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Operator

Good day! And welcome to the PPL Corporation, First Quarter 2023 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions]. Please note, this event is being recorded. I would now like to turn the conference over to Mr. of President Vice Ludwig, Investor Relations. Andy ahead, go sir. Please

Andy Ludwig

for Good quarter Corporation PPL and XXXX you morning, thank joining conference results. the everyone, financial call on first

We the presentation website. for have of section our on provided slides Investors this

begin remarks. and and conclude President with We'll Sorgi, Q&A session Officer. Chief CEO; call from Joe with Vince today's following PPL Financial a Bergstein, And updates our prepared

brief draw get attention to a started, and I'll your cautionary we Before X statement. Slide

future future Our refer results could events. of the presentation that this cause factors other statements. contains SEC results today discussion these to Please for of PPL's filings from of Actual forward-looking about differ statements. operating actual from statements appendix materially presentation results may and the differ some a or forward-looking forward-looking the to

earnings refer operations We to ongoing gross on including measures, non-GAAP this from margins also call. adjusted and will

please the to GAAP comparable reconciliations For to measures, the appendix. refer

Vince. the now over to I'll call turn

Vince Sorgi

good you, morning everyone. and our Investor Update. to Welcome Thank Andy, first quarter

with and start financial results highlights Slide on a X. our from quarter Let's the few

higher year quarter announced compared quarter business, results expense. newly first This from and supported partially share. was per solid by as acquired for Adjusting operations we of as share $X.XX reported items, Rhode lower Today from per a $X.XX $X.XX increase by per special sales interest ongoing our with mild volumes weather the were share winter earnings Island lower well offset expenses, O&M earnings due ago. first to

review speak per our ability share will to a forecast $X.XX per of remain Joe to with his more results. on in financial earnings ongoing $X.XX of to confident deliver detailed this We in our of our XXXX midpoint $X.XX share.

more third significant safe performance, severe our execute significant the X.X Kentucky, including solid the commitment in storm than storms several March wind service weather to XX our at million most and to addition on in our we to territory. This to last managing service years customers. and in electric gas includes reliable provide financial utilities, In event continue a our

assistance restored help of thank the women, KU their assistance that demonstrated operational more with our peers, customers. several excellence. all from than of dedication, our of as commitment teams, mutual well one those to and Our men each mutual for to safety, provided as XXX,XXX LG&E I and power and

to harden From a resiliency received event this financial investments of extraordinary across related These $XX the the of our the of a making asset. perspective, emphasize costs and regulatory we QX improve nearly approval O&M we million treat of are company, networks. to as events importance our types to

these also first way to efficiency, to service clean As look deliver made We've forward events our it improve becomes our the taking frequency of affordable to in our improve areas even that customers. most will continues prepare proactive are we that customers. goal quarter steps networks. our progress transmission And to energy and critical and for the to during on possible several the distribution significant increase, in we delivering our ensure operating more strategy

to PPL Energy and to services to transition the plan Systems exit Island in Grid remaining in continue National transitioning on our we remain First, XXXX. Rhode execute track with

also further couple We discuss next of key I'll regulatory slides. the which several on advanced proceedings,

to earnings our execution invest in the million finally, of Further, reducing $X.X rate ability more growth on in of strengthening track $XXX infrastructure than this we in And $X during successfully first approximately billion quarter interest achieve our keeps exposure targets. to nearly year. executed billion investments financings and our investments capital first us top-tier the quarter, our

advance future. the strategy our and utilities we These owners investments benefit the create of both as customers to share to continue

retiring generation electric are billion infrastructure our and XXXX, in and $XX Kentucky. to As nearly improvements invest reaffirming through in a replace plans modernize result, we our today gas to networks

rates, forward, low-risk remain share confident X% at compound the dividend reaffirmed annual earnings we growth and in per to our and projected XXXX. plan Looking outlined we X% business January in through least

Turning positive electric Public our in gas to of reliability infrastructure, reliability the Utilities were and before outline Island costs Rhode networks. safety and related plans capital Island investments to submitted and strengthen Slide proposed outcome in proceedings pleased first secure distribution Commission. we are and a operating X, ISR Rhode and safety, resiliency annually to our

In proposed the in plans that of the Utilities its the side approved Public tied from XXXX, modernization million Island and grid on approved Energy's Energy allowed April Island filing. This $XXX Rhode improvements. XXXX. proposed ISR largely to to March approximately electric investments Commission spending $XXX address X, its million The XX, decision, associated Rhode were

disallowed related On replacement. investment leak-prone the roughly side, pipe the most of miles XX to of gas

the approving While before customers, the the stakeholder understand further complete in gas and those we our disallowed right believe projects to grid areas. serve we better investments desire proceedings future meter are additional of of in Commission's modernization the reviews our and make filings to progress spending to advanced

with investments this re-opener through we This matters may rate under, be on Carriers regulatory future cases, Rhode other within the that provisions approved Public base of plans we forward engagement year's the The are Commission, currently ISR related could in and these recoverable and subject filings, future Division operating ISR in not to Island. Ultimately, AMF to grid particularly approval. modernization the and/or look stakeholders proceedings and the to rate Utilities in base projects. continued cases be new

for as in we progress this continue energy to we state's forward Slide Kentucky path is to plan remain Turning Plan our and plan our the best that confident Investment the Generation X, future. for customers

maintains cleaner retire than units customers have we operate to and that energy more continuing represents by Our proposed plan the our significantly to for coal reliability resources is XXXX. affordable,

of our present customers In nearly to fact, coal provides these compared we operate units. for plan that estimate our $XXX million to benefits value continuing net

we law, the not December changed set Senate in As we our the strategy. when plan law, Bill CPCN the X result, confident exceeds shared standards new that in March we became a as replacement generation have by filed we're and

our would over coal megawatts proposed, X,XXX plan As of with generation, replace aging

and X,XXX megawatts nearly of megawatts new solar battery gas of XXX generation, of megawatts natural storage. combined cycle generation, X,XXX

our plan addition, programs than a energy by of implementation more XXXX. dozen efficiency In the new proposes

Altogether, our $X.X needs and investment the the plan customers to future XX hours year. option Kentucky of in Kentucky's reliably day, energy days meet lease the billion represents a a cost a XXX

nearly fleet. As expect retirement law, proposed KPSC benefit, file diversifying generation request new plan emissions comply our to carbon further the the cut an added would we our our XX. levels our from with while with current To May by XX%

retirement essentially the is filing. issue on to Given with days November KPSC decision requests, aligns on expected decision CPCN ruling decision the on by expected the the provides our a retirement The our XXX this law timing X. filings

for and is path investing best We of Again, best plan we millions we're over we we environmental coal don't confident hundreds operating not of signs aging, of any easing in control, serve. interest. the offers communities our and proposed customers' dollars continue believe mandates customers in the time, federal see the plants forward environmental uneconomic

demonstrate outside should Kentucky rate to plans be recovery best Cost Recovery our make investments investments? We have actively enable base meet We’ll to throughout the of place. However, these of ECR customers. stakeholders engage required such continue Mechanism needs to in how do in we would or with CPCN of That process cases. the the Environmental our

for update. over to now the financial call and turn strategic operational That I'll update. concludes Joe my the

Joe Bergstein

everyone. Thank good you, and Vince morning

quarter X. to expenses $X.XX PPL's GAAP first We $X.XX turn first per due primarily Slide special Island $X.XX acquisition were special associated share related to recorded the Adjusting Rhode of Let's earnings per items, integration share per items QX, $X.XX share. first per in were of quarter, operations these improvement to Energy. with of XXXX. quarter an for compared from ongoing the earnings share, and

unusually interest winter teams O&M were increase, Island weather line our partially Overall, sales and the primary our in weather. face focus Energy and $X.XX portfolio the per by Pennsylvania storms, Kentucky volumes on share mild were The of of expectations results quarter higher the well with offset from in savings in apart very the drivers of the and for significant our addition to performed expense. Rhode due about lower and to of the

Degree volumes Pennsylvania. in Kentucky were nearly in our XX% service nearly Pennsylvania resulted territory. and Kentucky This XX% days of down our in X% and X% sales in quarterly Heating in territory lower

confident compared effective integration to rates as mild several the have we offsets incremental including to our at potential management. plan, financings of delivering in and weather, the revenues forecast, attractive remain on recent our Island XXXX in our earnings O&M cost Energy, benefit We outperformance disk of our Pennsylvania, Rhode

provide warmer normal than not could also potential weather, summer While upside. relying some a we're on

which We of record have achieving we expect continue excellent an our XXXX. track in targets, to

the ongoing X. quarter the to segment Slide drivers for on Turning

Regulated Pennsylvania Our

mild the rider to and distribution by Segment weather transmission by expense, flat lower interest sales Results primarily higher rates. and results due were increased driven volumes to increased year-over-year. recovery, offset and borrowings higher due were revenue

Kentucky decreased share year-over-year. $X.XX by segment Our per

Results reflect by winter heating mild for and lower borrowings, as nature of during Rhode operations partially within The demand and by Island higher results addition season. were occur O&M offset increased of $X.XX Island's quarter. impacted expenses. earnings lower primarily months expenses Natural of QX amount weather the seasonal share the per volumes the Rhode significant the to our sales interest segment the from gas a due Annual Gas earnings by increased

interest that individually partially to and $X.XX year, at significant, prior not higher due to expense results expenses higher primarily offset O&M other increased due Finally, and per the increased rates. compared lower share and factors debt by corporate to other were

Moving to Slide XX.

$X.X During billion completed first market years. total issuing financing of offering five volatile XXXX. XX plan separate debt, in including convertible a our billion our that industry navigated $X for the and successfully was in quarter of transactions, the we included executed rate a combined This

XXX convert in our first debt, up deal led $XX interest as Our the million basis roughly on in straight ended investors demand points mover resulting annual strong lower expense pricing to from savings. about advantage than

this price dilution straight of manageable. favorable and these result will Given share potential debt any to appreciation a be issuing significant as savings, is transaction share

in reduce remaining each be to In proceeds while executed Pennsylvania X% primarily debt both floating short-term nearly less also issuances $X.X repaid operating proceeds were rate the which debt, to respective reducing floating approximately CapEx and and of of used million, portion We $XXX is of we portfolio. total our A floating fund company than our plans. Kentucky of debt, exposure total, $X.XX used rate billion utility's for to billion. several combined the will rate

quarter any strong financing this of strong In issuances and profiles through of without plan one credit credit to continue summary, and our position planning credit sector's PPL's excellent horizon. the equity we best maintain execution planned target metrics reflects the our

back concludes I'll to prepared That the turn Vince. my over call remarks.

Vince Sorgi

off billion XXXX on for cost solidly advancing our customers the earnings least of plan, tier of to top a X% Kentucky on continuing Island we and and you, Joe. We're integration reliable our and annually executing Thank closing, Rhode to Rhode Island track on at XXXX. In in our the growth deliver at deliver and to start $X.X remain remaining in energy dividend we capital track by Energy, midpoint X% deliver XXXX, strong in positioned plans to least forecast, our earnings remain savings our of achieving through well with million O&M XXXX. first leg $XXX lease to of

pursue as our been are we the to convinced stronger. getting we strategy As create utilities and we've strong future, the in we're I'm only years as of

With for up that operator, it questions. open let's

Operator

[Operator with Evercore ahead. from will go Chopra Instructions]. question And Please first Durgesh the come ISI.

Durgesh Chopra

Thanks for Good morning. team! me time. Hey giving

Vince Sorgi

Durgesh. morning Good

Durgesh Chopra

from feedback morning if additional legislation are legislation thinking at in what these Can about you you discussion the retire just filings? to the that can you whether this investor lot of and may appreciated. A of any share color initial share coal would to went just plans, Good actually state Kentucky. A have lot what you your investors accept looking it be around some so your for going any mean just application the, that is guys.

Vince Sorgi

sure. Yeah,

proceedings. So general open are look, in these

processes are we with Commission. formal So the the going through

our quantify is So we the lot of – continuing in with we directly know think a to to the as option Again share coal mentioned our million proposing remarks, versus retire. the But strategically to from is plants you view customers. I CPCN operate as again a to that cost Commission NPV not to feedback $XXX lease terms filed in customers savings Durgesh, Commission. the the at that about we're our serve my we

in SBX Our terms ensures it, of the It that all issues plan etc. in the reliability, and cost has reliability. also of checks

the meet out in law. come we that think we have new So the requirements

we and So can still from approved our we that our perspective, engaging through Commission, confident plans with very process. feel customers stakeholders the the and our various get in the interveners

CPCN changing So terms overall, nothing in our strategy. from of perspective the

Durgesh Chopra

CapEx is this and plan. middle the a there Is as balance risks, it's not significant for I is here whether filings, innings, your early to about plan a CPCN and Vince. accepted thinking which portion you perhaps your of there's entirety, some helpful might approach road it in because of and the get if of get that's into you have it, here of plan sort in but Got know go your a I'm included a portion just of the a alternatives not like approved. but all your plan of it, the collaborative

Vince Sorgi

I Yeah a your that's Durgesh. have when with settlement case ultimately think that we see there's point. look, fair through our to, or to the We'll scenario to can a go we question ultimately agree interveners process if

to open of always we're course, Of types those discussions.

require with plants would that in we us the would need invest to if proposing would to I operate do comment capital potentially aging don't retire, coal interest our make amounts have EPA on significant we're the to to to But to comply to again continue think important which be that economic of of we're it's if capital do think to that, regulations, those best customers. existing we required we investments. that

have the all that But that to of be we and plants $X.X form again, you that all to that. $X.X talking environmental retiring, once operating. maintenance regs today, they the we'd final of keep come incur out EPA have investments we're those evaluate plants to billion not could final analyze to If at in alone, look here mention would sitting then and about billion the capital between

significant remarks, share should investment that our my for a ECR be recovered need of be mechanism, amount, basically make would we to discussed, provides through would And I recover potentially again that as there. quite in – owners real-time those which required recovery So investments. the

investments I going affordability $X.X can we're the replacement, Kentucky, we're make other frequency that have gen this we think seeing billion saw perspective severity spend increased quarter. businesses. We Again, other from in primarily in storms of we if an to on – T&D in and not We have state. the just

in opportunity to well. So do strengthen the continuing Kentucky, the grid that certainly we as to have

our from a in capital IIJA we project then of funding don't a plans. perspective, the lot plan really have And

worth DOE. So be funded specific to we've would million of we Kentucky, million us, million with would projects funded that have by be $XXX about $XXX DOE. by $XXX the the submitted and

Durgesh, about So feeling we've day, of that the overall out. the and earnings at the feeding the obviously we're laid targets end good really capital plan

Durgesh Chopra

That's great Thank much. Vince. you so color,

Vince Sorgi

Sure.

Operator

ahead. The with David next question will come from Arcaro Morgan Stanley. Please go

Vince Sorgi

David. Hi

David Arcaro

Hey guys, for taking so much questions. thanks my

you the update a I in and could this offset I'm stretch that cost planned for cuts to of if see, your seeing what level it how for an pressures. Let's just you're deeper guess maybe confidence hard you're also previously on year, And inflationary weather dig your headwinds wondering facing? is give achieving

Vince Sorgi

sure. Yeah,

maybe Joe ask I'll that. So to on comment

Joe Bergstein

those, track for all O&M we've first to we Yeah our Dave. on year, achieve are really good that so. about Well ability sure, this do for we and to of set hey the targets feel

this than as a those them quarter, we number remarks, year that the the convert we first of to strong $X.XX that's offsets execution earlier benefits but $X.XX of I and the year, better weather about the for hit As our from saw include impact the expectations. my during far that in and issued this prepared

O&M and It earnings. our any could which have that, than anticipating Island provides to on integration there looking be potential that always $X.XX very be integration top always we if on Pennsylvania this to we're Rhode then, $X.XXX, mechanism additional the Energy, that there, We're could the of and that. could beyond $X.XX so and focused another then of ability another spending, also trying on in to And about process we do flex better you're and plan, $X.XX. our that do maybe outperformance

Vince Sorgi

have at There are disposal, a number of we levers David. our

David Arcaro

I approval? helpful. if you a that on Island Yeah, the think other those didn't for wondering the maybe would decision. could look then my those you additional just more are Rhode you there's in touch that's was get levers, more holistically, by ISR great. just opportunities in projects to just Island more broadly? which and And on Yeah, really get pursuing do one, question, anticipated Commission then, upside other that following Rhode And Maybe there little so interest still CapEx clarity other wondering you was

Vince Sorgi

sure. Yeah,

So did electric on the Commission. approved were first not my of proceedings with the all, and particular, side. I'd projects of other gas the say the talked that in And leak-prone associated I the really constructive. process very as was think pipe remarks, in grid I Rhode in modernization front Island the on the side that In prepared are currently get about

we increase because on proceedings those me the a those areas, the to on front to down some they in areas temper other a total of road have further pending, of those proceedings. decided wasn't in getting surprise Commission So that it little the

your the future They future we next base case. to in cases, We question, proceedings. be ISR rate could future timing projects will those be the have Again, of our base request on depending could rate opportunity, file proceedings. when those to

also potentially have as AMF for well. mod provisions we the that the rate also grid our filing, and reopened We current in avenue both use so could case

are But resiliency of we million $XXX vital approval strengthening $XXX of million, that to safety, that in I almost did out important the investments our for, think reliability point the get right, it's networks. those and

for highlights investors. ISR also demonstrates importance framework our it our think for mechanism the it but I of constructive the so And regulatory the customers,

be one in opportunities, I buckets. the In think terms additional of IIJA capital biggest the again, probably would

would funded, PPL projects. about that on million for of Obviously the economics DOE. that we've the that of projects that have DOE funded. with $XXX million We those million applied be worth be helps $XXX of would $XXX

approval. mechanisms ISR the those So we get through could to again, other or funnel

projects. DOE for about funding the XX% regulatory those helps on those, We it cost-benefit on approval again, would with But projects. kicking need analysis really the those in,

in a those get of state would we support to of do types hopefully So the lot projects.

David Arcaro

much. Okay. Thanks Excellent! it. I so appreciate

Vince Sorgi

Sure.

Operator

The will Bank from Zimbardo next ahead. America. question come go of Paul Please with

Joe Bergstein

Paul. Hey,

Paul Zimbardo

particular. Kentucky Thank And you Good team. the on thank in you, call Hi! morning. for

that Just needed that majority add if say you offset plan that I with if up scenario mentioned, fair pieces spending could generation you worst-case you to of in the a the to? it other is X.X

Vince Sorgi

Yeah in meet able being and earnings confident to Paul, targets we're very our trajectory.

CPCN to a have we scenarios think there we what at process, get approved. how exactly on that I gets of different under approval depending look

as of capital coal up we spend ends So where environmental we for know base CPCN, period, saying, case the as under that like some our spending billion recovery it, assuming if cash that cash was be $X.X $X.X pretty that spending in under being earn, a our the much I base billion we're funding. plan where on is plants rate spend we'll time on requires

recovering get if we our – overall funding. in the hit on the see have various impact upside potential CPCN. targets Again, we’ll quicker. the under to feel get confident So by plan earnings But capital any, scenarios the some really, of CPCN coming we ability out would of we coming the profile to our how on much is out

to So for there. mechanism bucket the say, in capital this it's bucket, also capital the because effect positive little you have of a tough just that ECR

Paul Zimbardo

more you. two as accrue appreciate of it. XXXX. could or there, Should or a of timing Okay, well, Thank plus? penny if good element you're the that Island Rhode as think thank be you. of favorable integration for that outperformance to that switching And a then That's we Joe XXXX topics, would successful mentioned I the context

Vince Sorgi

Yeah you Joe, to? want do

Joe Bergstein

no. Yeah,

goes than our to cost at just TSA performance think expectations more I able there being on and expect. against overall through XXXX. integrate we The period our lower a it's

our start to really So ‘XX and my weather on negative were ability to offset year. the comments the focused

Paul Zimbardo

lot. Thanks great. Okay, a

Joe Bergstein

Sure.

Operator

The will Storozynski from Seaport. ahead. Please next with go question come Angie

Angie Storozynski

Thank you.

So first maybe something completely different.

you O&M you that through some has something work considering? associated halfway something model the efficiencies office a and perspective it's and earnings persisted in that even probably heard we're in we yet are space. seems haven't hybrid that guys O&M wonder any considering? that's, mean even you're I it this utility lever about with season just not currently the industry that So Is or reduced future from might an if pull it's from I your like additional

Vince Sorgi

that's think I great Angie, question, great a Yeah point.

operating probably either So generally are, you they they source about they out have a lot under, operating buildings, is or utilities currently that heard not of immediate office O&M maybe I think own efficiency leases their are and leases why fixed buildings or it haven't their so savings. that that they of are an paying

clearly post-pandemic the focusing I remote think world, as that office it's we in working, or years on the hybrid and versus America in of But will come. about an working you area over to think most corporate see the

in next to that right I answer think necessarily estate term size the an think not or our we be sure. needs certainly longer I real so. specifically we're or it could So your But opportunity question, as year seeing away even right for

Angie Storozynski

and then a taking any to other but downsizing buildings commercial And one indicators signs step somehow among on of also see any industrial? customers, commercial not Okay. you further, slowdown, the your sort any office economic again, seeing or just slowdown of like you that only side, leading customers, are it linked among

Vince Sorgi

general? want Yeah in just talk maybe Joe, do about you to load

Joe Bergstein

Joe. Yeah, Angie, sure. Hey it's

of jurisdictions low of economic and – positive including a both to number Kentucky, GDP continue growth. strong our continued are in factors in we unemployment see We rates and Pennsylvania

strong in And times. Kentucky, about broken $XX of we includes we've of battery see initiative And to in continue recently growth, and primarily investments plant under we the of ground we've back-to-back as XDV construction. talked of manufacturing record agriculture talked well and That That's industrial that XXXX about sectors. a number number and of each years billion times, over announced with saw XXXX. a in development the economic

our that things. those Island's on have and and Rhode less we seen decoupled not territories, So reliant in

Vince Sorgi

We're in up the the you're supply in just kind pre-COVID our to during levels, whether but also not was production lull that some pre-COVID, back but and getting Yeah, the expanding facilities. I their lull COVID, the in right, of catch COVID talking seeing about up general bow industrials then economy only from of catch growth. major only footprints to not their expansion, people chain seeing driven wave and think the just or to

our in in growth and our where the our we're think feeling areas. about I generally we're that So jurisdictions, good local really economies seeing

Angie Storozynski

again, might be a subtle then so mean should the difference, but the purpose basically more that And how And box was plants, last plants operations about it in just that, plants? beneficial or that one these I is running from know is checking Kentucky. new I I the the these while it continue even sourcing coal Okay. given plants which just of end of price energy the on mined user? gas the of those follow-up to and mean of coal that's usage became of on operations environment bill coal Kentucky to the gas gas just continued continued

Vince Sorgi

to I look bill. don't comment of want the the on purpose Well,

we'd in out on the from bill. concern of say would think the there have that But I to ensuring Elliott, forefront general coming storm, general, was probably the state. of decisions in reliability the of at hear just the winter that that generation kind I wrote a is folks

focused we deliver legislature to as combined a as in reliability clean There We front have seven and ensure was the state that units absolutely reliability CPCN, on XXX% It's on that we days filings, that can incredibly week. say always why our of CPCN in that sure put again is as commission together and have planning, the renewables. power I not I etc. it's will we our our too generation like, that were hours and happening cycle generation think and been day, center. concern XX a quickly transition focused an area is we two the energy that the is replacement form what has looks our making

can't I of operating per I think the mining so bill, that And were running we under in either driving terms necessarily speak were the or se. in that coal coal issues to addressed already reliability plants.

least manner those think that which all to do I has plan our again, our also in that bill say would but the well. in most we However, for in for ensure balances cost forth CPCN way customers, will customers. of the put And our as productive we absolutely it reliability, plans the continue

Angie Storozynski

you. Thank Great.

Vince Sorgi

you. Thank

Operator

The next Glenrock go question will with come Associates. from ahead. Patterson Please Paul

Paul Patterson

morning, Good guys. Hey!

Vince Sorgi

Paul. morning, Good

Paul Patterson

about sort modernization have With think looking of telling different in wondering, the again, places program, Rhode Rhode Island investment gas what How aggressive efforts case electrification that in strained guess is, do with like respect the know to jurisdictions, comes of I just at idea potential respect sort but gas thinking does you're for of of myself. mind Island plans that when of have greenhouse with reduction it's these sort what broad or I how when to I'm electrification and sort picture what carbon different think your this, gas about you CapEx the efforts. you really do about of you? and sort How to you?

Vince Sorgi

Yeah, go One is that, cost electrification. of factors of that the into a number I there's think Paul.

the the electricity. Obviously in natural electrified has to to XXXX. of if of is electricity economy the state becomes second ultimately, the and is economy-wide economy supplying targets zero reliability The diversity having majority addition benefits of or fuel by net the bulk gas of vast be the the by then

net renewable XXX% On the basically driven electricity XXXX. by side,

Our are investment plans on geared renewable networks the that T&D date. towards XXX% XXXX,

We are gas the with the in stakeholders PUC of Rhode docket. Island, including future numerous on actively engaged

the with doing used will how Island gas or scenarios actively on the engaged economy not. see on so the be natural there ultimately Rhode the we and future system feeding sector we Energy analysis of could are various And how

have implementing organization, report government the then to state its within issue target of report climate agency rules the XXXX. issuing In of a of in that would to the and this expect to that's ECX, then expect initial would the we of would Act charge that view on in spring next their year. issue report year, We and late the fall our to PUC the PUC

different possibilities molecules in So, a see lot things. docket and we're could right, natural various through it's think gas, a exactly that whether renewable of question. pipes, not to the great natural or work of formal maybe more those using I we're question. all There's actually blending not there, gas, a hydrogen And you using the we're answer commission within combination

So of really, to Paul, in as analysis more coming right it and we're progress those on of reports the ultimately those and agencies. I that now right come we middle make various out think

Paul Patterson

Okay, have been there. have little have more And just off know a to Rhode and then reliability PJM things for in you. But Kentucky you initiative you Island structure bells some or what Pennsylvania obviously reliability. obviously ringing and time as ringing given limited a And the places like in regarding in alarm are awesome. there's off bit some

long-term about stuff know seeing of you I'm in wondering, to of here, electric And any reliability some what is there batteries, potential what New just guys power the have in that you. the terms terms maybe plants, and side side you. have Hampshire either We're or PPAs I potentially on with in virtual or own thinking don't longer-term PPAs are just respect generation

I Senate what terms with the just another of sort a of that. In we're – time issues Or of or just like is to capacity yet than gap] pivot wondering way hearing saying. PJM, what lot at been, about, are just you, relying I'm follow I'm terms these don't construct if just model bit of least sort which of market [audio what the I'm you thoughts on little right that FERC. on capacity to have addressing markets a I'm and of remake, know, of RPM maybe look has structures your at as the sort other or opposed hearing it's sort now maybe thinking maybe

Vince Sorgi

is a things to to just thinking of the the we're mentioned. starting an formulate that of yes of time all spend and say lines would I that area I along about our you strategy This many that. lot of

of I generation So about to very your very concerned point, be amount come is gigawatts generation PJM XX themselves announced XX XXXX. ISO, of reliable, are That's that think to thermal between the to dispatchable out now gen to scheduled incredible out the and retired stack. an of of

built. it permitting almost developers any the getting replacement hard having renewables and are the The vast time all majority, of siting are and intermittent getting of or generation a

it which of gets the lot you're very intermittent there's if generation energy get this reliable, when built, built, concern in with dispatchable does I of timing of, replacing energy. terms even replacement a So think

at do on concerned PJM I do ensure which course makes looking and stack in their as then think of Island. Pennsylvania Rhode generation the have focus ISO we electrons flowing me itself, through and thinking we so they're is about wires how And our

this, yeah, on say. on focused laser would So are this absolutely we focused I

to shore And mentioned, we the of had supply our are take those own all the you I in gen question. think at things can say to areas jurisdictions. Great some we up of think look a would try I that that

Paul Patterson

changes regimes take on recognize open Do to have they follow-up do quick in officials are of it the I'm might you they open to the what mean, part do this are you follow assume those in that. think, on saying? states you would whatever, those or... it states. legislature I or a Do ideas Just lawmakers, in those the think to the whatever well? people I the the or Because as

Vince Sorgi

for new. This new it's topic think is I a them.

be rules as not forward. page the have suggested. our we're make to our energy engaging on of what within look do you a current only will sure all the we just We of same legislators, flexibility to that going we lot at with regulators, But but security

of of within shore if handicap today we'll I use beyond So, regulation levers current supply. requires the not your and to need to can't change up change. to and legislation that all the that. of But go we this might legislative that, point, gen so certainly legislative as require likelihood much

Paul Patterson

much, you. Okay. got so I guys. Awesome. Thanks

Vince Sorgi

Sure.

Operator

come will Please with Ross The go question ahead. UBS. next from Fowler

Ross Fowler

morning. Good

Vince Sorgi

morning, Ross. Good

Ross Fowler

context one. can questions been past or drag Most answered, Talen, around and at out you if here here, sort any sort the give the ask us least apologies maybe and have actually fraudulent or And process let against in this the PPL this but my of if claim asked I but me contention there there's with Hydro resolving of out that? timeline that's conveyance of

Vince Sorgi

Sure.

the was when PPL we when when we assets to we that and million Northwestern assets those of still still proceeds merging Riverstone’s understood, energy well owned to the sold Energy owned the created case assets, was That out well following part the spinning we that known $XXX back that documented. and as distributed to of had PPL supply proceeds Montana, with PPL all PPL Montana, relates So negotiated and those so Talen and sale. of itself hydro

The at made, as doing PPL distributions contention that fraudulent law is in so applicable the PPL to were confident made conveyance we was and all in not that, we laws time that the those is and but relevant that compliance also with the was extremely that times defense somehow by solvent it it insolvent the all Montana only We relates distributions. feel at charge. position our Montana in

have court parties we're that So, the situation on year, an to just court. discontinued could of the to update did case, proceeding mediation, the agreement into the and the so in we hopefully the mediation basically in in between by not would resolve with end bankruptcy and that go the back terms recently. We we of come so expect Ross. We this with

the This certain months. need So within of do the end on resolved can necessarily by will that, out not we coming Talen next before do the and resolved year. has issue expect of indicated be will it be timeframes couple but not they to does bankruptcy

Ross Fowler

Thank fantastic Vince. that's Yeah, you. a update,

Vince Sorgi

Sure.

Operator

I Sorgi go Please to conference session. would our concludes remarks. Vince This question-and-answer back to any over turn sir. for the ahead, like Mr. closing

Vince Sorgi

here or of Shareholders for this the speaking you weeks forward our a investors we'll Well, Meeting see thanks us again joining couple on at We in road to morning. soon. Annual look with perhaps

close and thanks out. we'll for again So, joining us,

Operator

concluded. The now conference for Thank is attending you presentation. today's

You may now disconnect.

PPL (PPL) 4 May 232023 Q1 Earnings call transcript