PPL - Earnings call 4 2023 | PPL Corporation

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Operator

Good day, and welcome to the PPL Corporation Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] Please note this event is being recorded. I would now like to turn the conference over to Andy Ludwig, Vice President, Investor Relations. Please go ahead.

Andy Ludwig

Good morning, everyone, and thank you for joining the PPL Corporation Conference Call on Fourth Quarter and Full Year 2023 Financial Results. this the for our section slides website. provided presentation Investors on of We call Vincent and updates and begin prepared with We'll today's from Q&A following Joe Chief remarks. a CEO; Bergstein, Sorgi, Financial with Officer, conclude session our and President PPL

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

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

measures, We ongoing earnings from ongoing call. will to operations also non-GAAP including earnings refer or on this

the appendix. GAAP to over comparable the call refer please I'll Vince. turn to the to measures, For now reconciliations

Vincent Sorgi

Thank fourth and I continues for out to our why our fashion, is everyone. quarter I'm that look highlighting Welcome call and and XXXX as you, to excited good call. bright. And update. closed look very today's we strong today's investor Andy, forward morning, in to on year-end future

XXXX. to year short, Turning I'm of in proud our it team X. was and accomplish to was very PPL a promises met of able challenges what kept. Slide In

for reliability delivered each importantly, Most T&D This including companies we of in top Pennsylvania. to than Kentucky and top our decile in Island reliably included and our reliability at gas more record quartile safely our electricity and and performance natural customers. X.X Rhode utilities, million

ongoing we forma service on delivered impact mild our this in per best achieved of ongoing was earnings the despite forecast same Namely, delivering in over the from reliability per very despite achieved every financial each territories. nation. pro by from XXXX. storm share time we the growth shareowners. X% all Kentucky $X.XX and generation heightened and midpoint Our At and over activity weather share, one of exceeding earnings $X.XX to in of $X.XX our our the our commitments of storms, We among

We in Joe our cover review. focus achieved operational on that financial in areas and his outperformance this will strong through efficiency key

focus savings $X.X reliable, from to XXXX savings baseline, on $XXX $XX O&M mindset in and strong future. We target our to putting targeted annual in our our technology affordable in O&M reinforcing track spend continuous cleaner and transformation, on a business We solidly advance executed billion for on us planned million XXXX million achieving budget resilient, and on exceeded and energy improvement deliver time enterprise-wide also our capital savings through XXXX. by our

These operational us financial regulatory effective management future that and outcomes energy approval mix In $X Kentucky we part that reliably in and position CPCN secured our advancing The to a strong billion of business for we for by state. affordably achievements in needs secured matched by in sound planning generation the Underpinned Island. safely, in that continue about Kentucky, elsewhere KPSC's future proceedings, Rhode of energy success. we constructive cleaner can customers' and ensures and process results year. meet our regulatory of November concluded decision replacement last investments while as the in were

since secured approval acquiring our And safety first of reliability and Island we Island, infrastructure, in Rhode plans Energy. Rhode

resilient, dynamic more goals. lay metering smarter, a more across foundation more In and functionality reliable electric the grid of capable the for state's light a Rhode as deploy addition, received Island, advanced leading we to supporting green climate we

our disciplined transition us with our achievements mid-XXXX. exit smooth direct to XXXX and execution, seamless service a for a These our strategy. in to on milestones National Rhode Energy of agreements we transition to investment PPL continue Island remaining result ownership integration our planned stakeholders, keeping are completing provide Finally, all focus and Grid on track

Our our adjust of when we arise, Future across pursue our ability Strategy. purpose clarity Utility PPL the as leadership to and team experienced of challenges

we recognize to the we're progress we long-term best XXXX, we room as for determined and And to we our in U.S. ahead, to the make still company improve vision have Looking maximize utility as in customers to pursue be shareowners. continued both our seek value

Today, Turning to projected Slide at updated the business our outlook X. XXXX. extends we results announced which through growth our of plan, least

today, our this of In forecast per $X.XX long-term update, earnings XXXX connection this announced ongoing earnings of per range share. represents our targets. The XXXX X% share, growth per to target, consistent growth range, our with with $X.XX ongoing $X.XX we from midpoint share

we of from increase our today, dividend share. growth This with share announced aligns of commitment to with and quarterly dividend represents In in growth common a per $X.XXXX EPS the our targets. current X.X% per line dividend stock quarterly addition, a $X.XX

our midpoint off the X% our and extended EPS annual at X% based We've of targets earnings growth through least to dividend forecast range. XXXX XXXX

strengthen plan to plan In XXXX reliability X.X%. through resiliency from up includes without $XX.X billion X.X% advance average XXXX expected addition on to the to new capital today's energy drive from to The rate XXXX, and a rate annual of updated affordability. cleaner growth is forecast, growth and prior of grid updated growth mix our compromising base

targets balance sheet through our equity to the without well credit our the remain supported plan these issuances period our fund XXXX. additional as We by least investments throughout planned for metrics at need within exceptional

in recap target XXXX, in savings by multiyear I at we've million $XXX of XXXX. of As made progress outstanding my annual our O&M least highlighted towards

solidly progress on XXXX year, to remain we savings million track targeted to last the Based million. of $XXX our we deliver made on $XXX

anticipate in in Island. filings or Kentucky Rhode we in case Pennsylvania, timing 'XX In any terms of rate do not plan, case rate base the

filing XXXX, additional business. rate the in capital current have needs several side bit a beyond sooner Kentucky a decision CPCN including of projections case on our to base T&D and Looking us previously due than investment anticipated the the would factors,

XXXX. half Currently, believe first case a rate we earliest in of we the be will Kentucky the file would in

which file the For prior we earliest is XXXX, plan. Island, with Rhode is the late would consistent

We earliest. The have has for rate since to in invest to or increased Pennsylvania in filed recall at with DSIC again mechanism reliability and as period. a to which plans Pennsylvania, need support includes the case designed base and more increase operated LTIP, to infrastructure see investment a been planned system the have a improve rate in before modify in to XXXX, PUC an plan, between infrastructure cases. Pennsylvania the go over we request on distribution long-term in not no investment do long-term that improvement XXXX X-year Finally, an DSIC eligible our we

accelerated infrastructure. mechanism in the are We waiver of PUC Pennsylvania the to to requesting future, replacement filing aging support considering with modifications request near the a DSIC

factors, focus our the capital continue rates, And rate on need for affordability is a our and we always, maintaining on future conditions As market will regulatory interest variety of for customers. based plans, lag. to including cases evaluate

Turning to Slide X.

build smart Future climate expanding change and core Our continuing us? keep a data our and our even of including been yet mean to to What and do. against analytics, everything It invented cyber which criteria distribution systems AI haven't means of updated protect to transmission systems technology, plan It to is and technologies self-healing harden our supports we grid. that does means updating and the Strategy, Utility and use our to again business automation, outlook that design data industry-leading grids, secure our threats.

evolving plant safely, innovation advance cycle that Cane and grant the our reliably $XX to combined actually needs customers' zero. drive Run project net to technologies Like million capture R&D scaled in in can meet be investing carbon awarded at to a that our affordably to and energy achieve means was DOE Kentucky. It

and transition; using renewables At improve X-way connect significant the our an reliable in reliably and our energy; customers lastly, flows customers; our and time, growth more network distributed officials options incorporating manage advancing state digital reliability transmission connect enhance expanding affordable communities; with enable experience. we development energy keeping to tools clean for the to to and the efficiencies our same power and self-service economic distribution driving a local on generation customer support means our while cleaner energy technologies safe, and for ability partnering as it more to customers operational mix affordable; expanding to expanding and grid-enhancing

Turning to Slide X.

change a in hear, investments we you significant others reliable to energy and The generation requires and XXX% industry can the amounts across of entire additions which will As unless support economy. electricity see a the future demand, XXX% increase of requires zero our projecting it creating net of are to unprecedented business, utilities require conservation.

that At managed replacements in capacity. problem the this this rapidly a the that same in country generation our transition And dispatchable fuel fuel represents not capacity generation plants fossil are time, total appropriately. fossil if XX% potentially major more is of very aging considering of retired presents being reliable, than U.S., without

zero net phase. Most that half, in scalable sequestration, to SMRs, took by cut to long-duration We when we can up Math XX storage time technologies, currently in zero actually simply capture the to meet customers don't from doesn't new industry emissions available technology technologies proven, achieve nuclear to XXXX and demonstration especially energy hydrogen. the have carbon commercialize afford. that big about used our we as need years X think add targets, and net at frame potential least carbon

need and decarbonization why to in is today Those on balancing because reliability. can gaps otherwise commercially ramp us system That left are that country. are able is resources of the natural generation do our to that and to more deep by this the renewables. be down And it than to viable to carbon we vital exist to gas. reliability leverage benefits deploy natural quickly maintaining In footprint up allows achieving key the renewables while meantime, intermittent we dispatchable, the reduce would actually the gas of

transition maintains nutshell, affordability being the deliver and future energy customers. the a challenge to this in what way our energy is clean a that a makes In for able reliability such

every of for Kentucky ensures dynamic strategy generation approach energy reliability we know right our However, demand. that's transition in can And and It's plan of customers this our public reasoned brings and challenge and opportunity. is delivered Utility and why the the resiliency why is we the officials landscape. our maintain with Future

markets becoming afford New of same way will out critical the and efficient stakeholders. can transition O&M we more We out of is if it. strategy component deliver it's ISO cannot how take need and spend happen to on the like we figure vision actually capital we such our dollar impacting for energy can enhance long-term This And we a business, in why how all England. for customer intend the of to customers achieve do is $X we PJM a every to the won't because deregulated bill. value our The simply without

and front. beyond. continue will requires us doing It lead And to what exactly XXXX to from that we've and in is we what the been do

priorities and X our Slide XXXX. to for Turning

of midpoint our our In per executing addition grid. XXXX our and priorities Strategy, to to investments safe, advancing customers share Utility and a forecast, include earnings infrastructure Future in modernize the maintain for our at achieving billion the as energy also $X.X reliable affordable least

Delivering portfolio and optimize planning targets on centralization analytics deploy our as savings costs efforts maintenance. of to advantage O&M leverage our take economies created technologies across to we reduce by our of scalable continue scale data and asset and XXXX

Finally, Energy complete agreements exit we remaining to service of our with Rhode National and and Island integration tranches Grid. need all

in strengths line, these and our again Bottom once facing lead we're industry. on to are significant PPL's we very poised eager to issues showcase XXXX,

turn strategic to conviction look Joe our customers our update. in That on to and execute forward plan call update. shareowners. now financial business concludes ability delivering and our and to have tremendous the we again them for I'll And strategy both. over once commitments to my in We the business and

Joe Bergstein

good everyone. morning, and Vince, you, Thank

the per Rhode turn We PPL's the XXXX. QX $X.XX during agreement fourth were earnings XX. a Talen Corporation quarter, Energy share recorded due $X.XX special compared per as Let's GAAP of share per integration associated Slide related to Island with expenses items quarter to as $X.XX Energy. well fourth of in and settlement with to primarily share acquisition

lower returns weather drivers Adjusting fourth per in special fourth this ongoing mod XXXX. lower of were operations due investments were volumes, quarter improvement The sales earnings share, of items, for share experienced O&M capital expenses, on the continued increase by these of $X.XX to offset primarily $X.XX primary an partially quarter and compared per from QX XXXX. to the

or per our weather of GAAP plan. a to total, Adjusting for annual compared $X.XX per an share $X.XX special items XXXX In were compares recorded ongoing $X.XX earnings drag per increase $X.XX per results. from basis, ongoing of our share. our was XXXX XXXX the to on were share for This share. On $X throughout prior year earnings per our XX% share QX year, results earnings a those

$X.XX per our earnings earnings exceeding the Vince And as target forecast. share we noted, for midpoint delivered of XXXX, our

of offset job for significant fantastic a while activity, adverse executing impacts financial storm did our our goals, weather unfavorable maintaining teams plan enabled the in to Our steadfast our and of while which achieving us customers. remaining reliability

deal adding XXXX demonstrated commitments to achieve ability to our and ability to our customers our to adversity confidence our targets. our still earnings both achieve with in and shareowners,

Turning ongoing XX. drivers Slide quarter on the fourth to segment for the

Regulated to segment by compared and higher year primarily volumes Pennsylvania share the results offset lower Our $X.XX same sales lower ago. The was O&M revenue, partially and a by transmission driven increased period by per interest expense. increase higher

Kentucky segment Our The mild lower partially lower due share primarily per increased driven were sales by improvement compared to quarter volumes results by fourth XXXX. O&M the in $X.XX results Kentucky's offset to expense, of weather. by the

capital partially from $X.XX increase by Our higher per Rhode share. higher results segment expense. interest primarily was by driven revenue by offset This rider Island investments, increased

Corporate period, expense. at to taxes, by higher lower and flat income due Other were the compared primarily to prior O&M results offset Finally,

Slide strategic which from pro pivotal a XXXX year the reflected we year earnings per for completed our we of midpoint XXXX. a growth midpoint our representing per share, forma range from $X.XX repositioning, following the of Heading set a year, earnings XX. share, $X.XX to forecast with Island into X% XXXX full which in PPL Energy. was Rhode Moving XXXX of

the and by by X% our mild achievement earnings impacted $X.XX $X.XX forecast our results experienced, outperformed pro significant more year, which own the we the beating we than And for targets, and forecast was per over This given a XXXX midpoint. growth achieving weather share. second abnormally storms forma for consecutive

numerous deliver I past challenges our confident team and the would over to were overcome commitments that As said we both our times our those and year, on shareowners. customers

Energy DSIC of critical and management recovery of areas of without mechanisms, the investments excellent and integration including several plan. Rhode mechanism, PA our of regulatory through in infrastructure outperformance optimization prudent execution and costs Island sacrificing included constructive This financing of reliability,

the which Looking to range earnings of our growth into again extending I'll $X.XX of done a couple midpoint by earnings with remain detail is forecast to our that at from again of extension growth while share, per XXXX, X% we future. X% we've today capital in targets plan, X% Since our that trajectory supported earnings the communicated forecast. XXXX which discuss that the an slides. the midpoint growth of further XXXX, to on targets more represents investment our we investors, And updated growth in consistent initially

forecast, Slide XX. of provided to we've from drivers On actual our results to this share a increase walk the Moving XXXX midpoint slide, the projected segment. the our XXXX of $X.XX year-over-year by per highlighting of

less results primarily to to share interest increase on sales $X.XX recovery additional investments O&M, by in offset and higher lower volume capital in and per Pennsylvania expected due Our segment partially rider returns XXXX, by distribution are expense. transmission, higher

primarily return weather. driven to We the project normal our in XXXX, to sales volumes due results expected segment $X.XX Kentucky share by increase to per by higher

per to lower investment This are to due results segment to compared higher expected results. Island is by share increase capital higher XXXX primarily offset and Rhode Our rider expense. partially our depreciation revenue in XXXX by O&M, $X.XX

decrease Corporate results Finally, Other we share to other expense our individually project factors primarily $X.XX by that interest and in are XXXX, due significant. not per and higher to

XX. to Turning Slide

and experience industry-leading customer next of networks price. billion and transmission the approved the in safety our capital grid our plan delivering $XX.X includes service planned generation investments on gas our replacement This superior years, while overall networks, and enhancing Over expanding affordable of implementing improving Kentucky. an focused X hardening natural have we the advancing maintaining modernization,

modernize is plan. to investments expected the period. transmission the XXXX resiliency. $X.X in X-year billion prior to systems reliability and a $X and occur we that increase projected electric enhanced to that XXXX in represents as is in of to to distribution Kentucky Most and plan Approximately increase capital compared billion of increase and This Pennsylvania be our continue

as end this forecast. reflected We of until continue the needs significant to decade our XXXX on investment expect

we continuing the on investment resiliency This investment energy related and prepare gas severe replacing over electric transmission plan. systems in replacement the focus and rates. FERC further of primarily reliable XX% to it of $XXX execute $X.X is to And maintain to increasingly resources levels includes approximately in as of includes and investment our nearly grid in generation storms, continue formula under our of which Kentucky, for safe $X.X by and to million clean enhance Rhode enhancements T&D billion against billion network significant Island while leak-prone pipe. a Pennsylvania, gas

Turning to These base X.X% plan to capital XXXX. to in lead rate from This XXXX compares prior growth Slide to growth base of X.X% XX. period to rate investments annual our annual XXXX are additional from XXXX. to of projected

can relates significant needs As see as rate our on electric to given strengthen and the of grid. networks, we you modernize investments in chart, X/X the T&D the base our

Importantly, while related to coal to we generation continues decline from grow, project base XXXX. to our to total XXXX rate rate base

In the than our coal this end of And be down we less the on XX% expect today. the XX% expected to rate to generation XX% to XXXX, by percentage decline under of be base fact, by and about trajectory, to is this related total of the based decade. end continue from

evolving of updated earnings and gap investment needs projected result growth base targets summary, increase narrows our rate as In energy plan to continue growth landscape. between with the the the our

As such, we maximizing spend. to every dollar we on be and very focused continue affordability

rate in for believe to and we by and near growth efficiencies value driven shareowners. maximizes growth be that continues earnings base term Our combination of the the operating customers both

compared share earnings aligns with to The annualized our we XX. and of long-term results Slide to $X.XX dividend share. XXXX quarterly projected an per X.X% forecasted growth targets. growth increase $X.XXXX cash EPS our to per our an This $X.XX in share. dividend per dividend announced increase in Today, of Moving annualized prior

dividend future earnings to expect with align growth to continue growth our We targets.

dividend The XXXX investors range X% updated the of EPS of within total XX% forecast. dividend PPL's our growth on provides an to our remains based range combination the in payout XX% XX%. of proposition with The targeted return yields of to earnings midpoint dividend and attractive

PPL's an credit on XXXX update XX. and Moving to plan financing our for on Slide

to believe a with having strongest financial of continue that the clear the provides sheets advantage one balance significant flexibility. that strategic company sector's We is

below plan debt throughout. XX% business FFO-to-debt XX% metrics a to maintains maintaining XX%. strong updated to a company ratio credit This ratio and Our holding includes total

with X XXXX. $XXX have risk maintain in plan. continue floating and mitigating near-term We refinancing maturities volatility of we debt our to And in limited limited total in maturities million only XXXX rate exposure,

We also continue continue updated fund without now growth the planning extended equity throughout to be to to is positioned period, uniquely our which need through XXXX. our for

PPL As focused to financing We've our on about primarily executed activity utility they our this should XXXX, Electric at a Utilities of investors company with capital think with deal $XXX plan be our million for was January, which operating attractive debt. portion our pricing. plans plan in executed already expect funding

the offering We're the Island planning for since first market also to with acquisition. debt be in Rhode our

plan. call In remarks. our I'm back no area plans an Vince. but to year, strong a Kentucky my prepared financial continue we'll funding outlook that We conditions is in PPO the debt and execute our opportunistically this current updated position our closing, for capital and issuances with with in connection This position. financial or have to turn now I'll to over evaluate market pleased concludes extremely

Vincent Sorgi

you, Joe. Thank

our strength. with is requires industry a is for for our this being of energy the earlier, time challenges mentioned and There able transition affordably time lead shortage a deliver reliably clean no facing us I our customers. to pivotal industry, and safely, to As that

morning be a for bed to the alike. shareowners this gets why strength time, value right the time. is efficiency this that have of and of and I'm built for long-term core right our I'm out and we at me a will This convinced moment prioritizes part strategy strategy in affordability excited what on every so industry customers and maximize

investors plan XX% predictable earnings We've future business established that energy year. and while our with a to a positioned advances growth of long-term and return reliable, a and providing attractive well are We affordable an safe, derisked continue disciplined proposition. sustainable competitive

open experienced an X,XXX by And finally, operator, dedicated delivering to questions. that, leadership these we strong that is XXX% up backed committed With objectives on for let's and team of it across team a have PPL.

Operator

Instructions] [Operator Pourreza today from The Shahriar question Guggenheim Partners. with first comes

Shahriar Pourreza

I recent transmission million hundred much side, transfer just So I'm is reason Window you've to why and couple of in we've the asking needs How added X the Pennsylvania on awards? is seen to in see significant E-MAC. that across of and transmission PJM Eastern tied a some capability RTEP The utilities the plan. increases

trickle get your to trying plan versus has a for just started what sense into incremental. to So

Joe Bergstein

of we what Shahriar, half increase is were window. that by it's in Joe. you're About what PJM recent and that driven awarded describing

Shahriar Pourreza

deferred, not then CCGT. CPCN it. just Perfect. the Kentucky a kind to could incremental of the but the something outer plan? second for the closed spend and that the trying land next to you the start the years to And to obviously, the Just Is Got of coming door get like latest back revisit focus. quite spend, process, had sense could in

Vincent Sorgi

your should To we another back suggested an second date XXXX. with Shahriar, the CPCN in-service point, that with in that for Yes. CCGT filing come order

we a that. And updating go process we generation And as in be would prepare that through to that on this for so to IRP and economics at load obviously, year that. all the and of years' time we'll couple start plan doing looking

have is filing then service plant ultimately, to updated So the really first be IRP and in that file that a year to feed in a this -- will XXXX. point we'll CPCN the into

Operator

next Evercore Durgesh ISI. Chopra question The comes from with

Durgesh Chopra

the your had or rate at Maybe a their in -- state, the elaborate of commission. water you is case are just new just The the utility color any ask the you there reason peer attention, can drawing why share commissioners on do you I I on Pennsylvania. on to a district plan can is itself? lot what question

DSIC to share the you So you do any on be mechanism, that the the environment in state. color just to amending maybe regulatory just And could if try then great? might would what with talk -- what

Vincent Sorgi

Sure.

the to to That's XXXX Durgesh. is really maybe infrastructure the LTIP our have modify from process DSIC covers the to state, period. January the with long-term filed we a a waiver in the we commission covers mid-January, which precursor the improvement that that XX/XX/XX. petition In plan X, period So the LTIP,

significant into So to be this current LTIP already LTIP DSIC plan. for we're that to really that did of the adjustments is would some the which a flow plan, mechanism. the eligible we year for the file projects then types through precursor

proposing we're new We're to a that actually LTIP $XXX lot some about million for enable a put million. on of program to including about and that it new equipment we from $XXX that doing identify increase predictive plan actually We've fails causes failing new to a us been project grid an or technology. devices on outage. testing failure before the can

have there We're other at we just want distribution that also to money projects. So reliability include. in some we looking

Our being reliability led in strong transmission Pennsylvania very by results our there.

process we And money We course, for there that. approved distribution updated then, the X. reliability, continue that the have additional projects need improve of to we also IIJA so to LTIP in our through the

comments So actually today. parties file those to have are comments And due the our filing. LTIP on days

review file So DSIC we'll before request. to want those waiver the we for comments

it still intention we'd in expect And We the higher on the that notified what of the the that relatively on, working will we're waiver this Durgesh. our soon, At to DSIC. file likely file the point, PUC request. be request form have to of cap

Operator

with Storozynski Agnieszka Seaport. question comes next from The

Agnieszka Storozynski

of it's I -- question, admit. unfair bit a I an So

or which large directly to to obviously, Susquehanna your next to So next center is we're -- and be to see developed potential former waiting territory service nuclear your asset. data plant, this the

you wondering, of T&D were would type that data almost megawatts what just embedded already And perspective? from this happen, have your So that a in like so I'm X,XXX if if investments to were from center, require it we plan? to is guys

Vincent Sorgi

Yes.

centers So talk about let broadly. me more maybe data

to You're plant. one tied or will specifically nuclear related that's referring the Susquehanna to be

center. most for the the center there of although is that Talen to is ensure supply power Talen data with entity, really reliability So between we working are that activity of and that

work Angie. incremental So some there,

What top size I a activity, Pennsylvania instances, reliability where the quartile, we though, with centers that well. of large that, in in again, smaller -- some some decile are some range, Kentucky, side broadly, some And attributes some extremely the to in there these more number territories, than very specific have our we in looking started only would our these for. our X-gig Not from is X-gig power we've projects say, but beyond center pulling positive transmission are business, very requirements, really data of that our is see both as load and are generally seeing reliability strong especially which data is top high. their projects,

we is incredibly the more the that have bill and also in We can particular, a could land to because without Pennsylvania, cost relatively that beneficial decent inexpensive we for that of retail our land And will customers transmission still of have our that we jurisdictions of more lot lower on in connect of for and that investment our in load overall still a load the and both network. this customers, network in Kentucky. then an amount abundance and add PA capacity the transmission

And you of Mid-Atlantic the to close New England region, about think we're then, especially as and course, Pennsylvania.

our in that make number things territories And So there's cheap power this Kentucky, a of attractive. of in prices. we relatively course, have

active data the So working center companies. very in with

in haven't this We our included point. forecast load at these

time the you're with if But a of I at on going appropriate when with this We lot would as centers we that with will some data close as point, these activity and of hearing the at peers folks. well. deals do just our say these

Agnieszka Storozynski

ask I can about And Kentucky.

nuclear actually plants Does cheap data make one, sort look don't at is? really So care you state? mentioned power new is footprint know, renewables? plans that that coal does carbon the gas they the I or the those do it gas grid coal about is the retirements about and Do the from total emissions? center or how versus providers power matter? thermal perspective. cost mostly of and how you getting in Or of power additions I tighter it also, of reassess from And supply mean, the plants your and/or

Vincent Sorgi

Yes.

the reliability what Angie, we're power. part, of For most reliability is and seeing,

earlier. right, companies sources are I you power green from there But that these want power for the to data centers the also ensure of cost energy for are Susquehanna, electricity because, seeing data think some of is the cost itself. up coming what as mentioned center that huge we're reliability most part, and like these in about it's that, the that costs you're is obviously,

point, as much in capacity have here we Kentucky in up your do to So don't Pennsylvania. as we

in more need as mentioning to there will And Certainly, so this term would Kentucky in at be support near so data least perhaps into, Pennsylvania. expect than in investment as we incremental needed our we was I before, feed centers generation to would load to IRP the thinking we that. think say I need current early look growth our a we too modify we would replacement to as say, into our little our strategy, about process on at

that if But of the large these from we're ultimately have into of years clearly, couple centers going IRP now. a hit, request factor some to that to CPCN then and into

Operator

America. Zimbardo from comes Paul with Bank question next of The

Paul Zimbardo

like $XX the and First It one me around target but correct the reaffirmed wrong. all, on you million. target like looks XXXX please O&M I'm by exceeded if them

drove least, what what to of the Just at -- outperformance target? targets? kind increase kind targets to see And need know initial would what would of those I are you that versus

Joe Bergstein

it's Paul, sure. Yes, Joe.

So first XXXX. in outperformance drove focusing on the what

milestones for savings. all we process, started XXXX. we for coming of all have compared that and will driven the into of these $XX some million $XX noted, of the the these initiatives year. we the to had we from to by It TMO projects we we've in million owners really initiative achieved acceleration And was million $XX set them. deliver that savings target As KPIs When

And has which areas, allowed some the rigor to we to bringing overall. actually and us us year $XXX so to in $XXX in saw accelerate achieving the million million that what process the gives next confidence million $XXX

is remarks, customers on about we the of Future talked about in talked for Utility As as affordability -- key. ensuring the and Vince his focused

to from more through so we And look as to that continue go plan. the we'll get perspective, efficient

is we're the extending we holding growth doesn't million efficiencies. that I further today What rely that But at are here and million talking into say as we're XXXX is where about least we said. -- $XXX that can on still $XXX

in So upside to that current to that be more of plan. extent successful would the we're the identifying

Paul Zimbardo

how Very Great. factors. for one timing of know I a wasn't Vince about of then rate on case them cases clear. rate the And But peers. strategy, go bunch Okay. listed

Just the your the curious rate especially you that important -- as given of to Durgesh kind is is important the think cases through of how lot a process, in Pennsylvania, mentioning, how own assess how was that just plan? As

Vincent Sorgi

to rate environment regulatory assess we that clearly, the peers Well, no able cases Yes. XXXX and have across our the getting. we're board, are outcomes because the in

that we good that about our something every making. we As right same it's into will company likely the rest wouldn't clearly, same feed don't -- it our decision for will have gets under certainly XXXX. we in fact keep not first the the sometime I our decision. this And the down be But plan anything know, in so timing have we now. again, outcome the pretty of even and eye totally feel in the and impact the jurisdiction, one Kentucky on an year

Operator

from [Operator Crowdell comes with Mizuho. Anthony Instructions] next question The

Anthony Crowdell

Congrats on a good quarter.

a assuming to up couple 'XX?? ones. for growth forecast of load this What's quick Just you're question. from Angie's One follow-up

Joe Bergstein

Anthony, Joe. planning points load assuming basis it's growth throughout our XX horizon. We're

Anthony Crowdell

jump I the then question, talked And DSIC, to if think Great. you're Durgesh's it. you're raise looking the Pennsylvania, and cap I could in about you on filing

saying does approval, curious it but to rate longer? if get out get approved. not stay increase again, you you Pennsylvania a the in But the have it's Just here filing, could that -- -- frequency I'm still that that believe don't I'm little other doesn't you offsets say you of

Vincent Sorgi

Anthony. latter, the it's Yes,

DSIC the some the modest from coming in value filing. We plan have

we've Pennsylvania real point, the enable us the talked is benefit if longer would stay that request out we're approved, some reason get in manage to that comfortable make think about. had it that that, growth investments talked maintain to is your not and about. But yes, targets that I can still the for we and we

Anthony Crowdell

then detail XX. -- near-term And just appreciate you on lastly financing. don't Great. the any the have on Slide I

you funding electric just there. just financing those over have think you vehicles? those -- XXXX, vehicles is vehicles? the roll plan you do what also see on you the curious maturities, funding, Do retire you'll in On that. think financing Just capital on those I'm you your utility those

Joe Bergstein

will big Yes, Anthony, interest what are play get to in that Obviously, do assess where have a role we'll closer. we as there. rates we

So I early think to how on tell those. it's treat a little we'll

them that is refi assumption Our we

Operator

from The David comes next question Paz with Wolfe.

David Paz

Can you hear me?

Joe Bergstein

Yes.

David Paz

Great. Okay.

the Just of that the of actually does plan? -- that are you to up previous over that what's particular, on the following XX% -- your of currently? XX% course how question. kind where where to FFO profile in debt, And in

Joe Bergstein

the cost in just that part would early see the -- range. in integration and then the we comfortably those plan. you obviously increase CapEx -- to to are continue XX% away. in Rhode impact I plan, Yes. say And have later that the the credit metric roll We of we're XX% for Island

So where around comfortably of that midpoint. we really kind we about and feel range good are the within operate

David Paz

opportunities transmission? wind what -- pending don't you I if you plan, this, Just provide, more opportunities Perfect. color solicitations And are be if but can then see do know or from touched that -- your anything? What on your offshore just the in great. any you what would you have do

Vincent Sorgi

Sure.

a we issued have in Obviously, couple the we've there. Island. of that opportunities Rhode So RFP

we that the would that, We be of the of owners generation. not but are offtaker

we to transmission load. the so wind And your in plan that do enhancements -- point, have to to the to grid handle we required offshore have the transmission

venture up we England grid sorts with broadly but we the build-out. wet of past build network New wind Rhode solutions the of them partner transmission would joint on generation, wind Island more lower a the cost a provide We -- not out the that overall our in or have the turbine turbine in potentially mesh where transmission about to would with would to talked -- own we

about of provisions out out IRA. think That for ultimately offshore being there. Treasury will upwards implementation we their As the XX U.S. over built depend highly opportunity where on on say, comes the gigs the next, of wind decade

of very is would transmission the The think regulations owns owned were only ITC wind initial themselves. eligibility the monitoring for closely. taxpayer that we that came error we limit turbines in same by that regs proposing in regulations the those credit are wet the So out the that if that transmission from the treasury,

out the we limitation, That offshore quite the if is wind way, challenged. would final know of that raise industry, come cost which rules unnecessarily the

the not can try expand running And source bring offshore continue we very administration to this down that taxpayers, so cost regulation with so and the get other ones the policymakers U.S. overall we and that engage of just up in to of to to that turbines it own try important energy to wind kind and improve the to final all and clean

would coming solution, this. all on on at this partnering believe is our upside have kind what But any point. wind the in there of projections terms final say. broader that this our any we that really growth I offshore hinges can't rule plan. going in I can say, don't It's of states not will of say which down. And then bring I in together potential give we at to up you the assurance and certainly business of cost

Operator

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

Vincent Sorgi

about think the to We strong where with as to want an as and really sheet thanks overall Future say beyond. us. earnings. forward dividend our bit area us strength and strategy. we're XXXX of of the quite differentiates that dividend of our growing policy from end for peers looking that's Just balance Utility well talking a spent the I've line in Again, do to XXXX, time joining the our

Thanks calling So and updates much. for for as just we look the so year. go everybody forward us and joining appreciate to us providing through

Operator

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

may disconnect. You now

PPL (PPL) 16 Feb 242023 Q4 Earnings call transcript