Slide 1: 3rd Quarter 2024 Investor Update
PPL CORPORATION 3rd Quarter 2024 Investor Update November 1, 2024
Slide 2: Cautionary Statements and Factors That May Affect Future Results
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 diff
Slide 3: Business Update
Business Update 3rd QUARTER 2024 INVESTOR UPDATE Vince Sorgi President & Chief Executive Officer November 1, 2024 3
Slide 4: 3rd Quarter Financial Highlights
3rd Quarter Financial Highlights Another quarter of delivering solid financial results ➢ Reported Q3 2024 GAAP results of $0.29 per share and ongoing earnings of $0.42 per share ➢ Narrowed 2024 ongoing earnings forecast range to $1.67 - $1.73 per share (from $1.63 - $1.75), increasing the midpoint t
Slide 5: Integrated Resource Plan (IRP) Filed in Kentucky
Integrated Resource Plan (IRP) Filed in Kentucky Overview of 15-year resource planning period for LG&E and KU 2024 Kentucky IRP Highlights Select 2024 IRP Scenarios (2)(3) ➢ Comprehensive review of several scenarios and assumptions, including various Recommended Enhanced Solar Year load growth proje
Slide 6: Data Center Update
Data Center Update PA and KY service territories continue to be attractive locations for data centers PA Data Center Requests in Advanced Stages KY Data Center Requests in Advanced Stages Requested Load In-Service Dates (in MW) Requested Load In-Service Dates (in MW) 0 2 0 00 0 1 21 02 02 02 02 02 0
Slide 7: Other Operational and Regulatory Updates
Other Operational and Regulatory Updates ➢ Kentucky • Strong storm response to Helene and other weather events in 3rd quarter • Filed application of the Retired Asset Recovery rider (RAR) related to retirement of Mill Creek Unit 1 (to be retired by year end); mechanism provides for recovery of and o
Slide 8: Financial Update
Financial Update 3rd QUARTER 2024 INVESTOR UPDATE Joe Bergstein Executive Vice President & Chief Financial Officer November 1, 2024 8
Slide 9: Financial Overview
Financial Overview 3rd Quarter and year-to-date financial results (Earnings per share) Q3 2024 Q3 2023 YTD 2024 YTD 2023 Reported Earnings (GAAP) $0.29 $0.31 Reported Earnings (GAAP) $0.96 $0.85 Less: Special Items ($0.13) ($0.12) Less: Special Items ($0.38) ($0.35) Ongoing Earnings $0.42 $0.43 Ongo
Slide 10: Review of 3rd Quarter Financial Results
Review of 3rd Quarter Financial Results Ongoing Earnings Walk: Q3 2024 vs. Q3 2023 (Earnings per share) Sales Volumes +$0.01 (Primarily Weather) Property Taxes +$0.01 ECR Transmission Interest Expense ($0.01) ($0.01) +$0.01 Adjustment(1) Revenue Operating Costs ($0.02) Segment KY Regulated PA Regula
Slide 11: Closing Remarks
Closing Remarks 3rd QUARTER 2024 INVESTOR UPDATE Vince Sorgi President & Chief Executive Officer November 1, 2024 11
Slide 12: Appendix
Appendix 3rd QUARTER 2024 INVESTOR UPDATE November 1, 2024
Slide 13: PPL Investment Highlights
PPL Investment Highlights 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, FERC formula rates, and real-time recovery mechanisms of over 6
Slide 14: PPL's Strategic Framework
PPL’s Strategic Framework Our objective is to deliver exceptional value for all our stakeholders Vision Be the best utility company in the U.S. Mission Provide safe, affordable, reliable, sustainable energy to our customers and competitive, long-term returns to investors Strategy: Create Utilities o
Slide 15: Visible and Predictable Earnings and Dividend Growth
Visible and Predictable Earnings and Dividend Growth Projecting 6% - 8% annual EPS and dividend growth through at least 2027 Projected Earnings Per Share Projected Annualized Dividends Per Share (2) 6% - 8% 6% - 8% CAGR CAGR (2) (1) Projecting predictable, stable annual EPS growth Dividend growth in
Slide 16: Constructive Regulatory Jurisdictions
Constructive Regulatory Jurisdictions Supportive of prudent investments in our electric and gas networks Key Regulatory Highlights PPL’s Total Rate Base (1) ➢ Contemporaneous recovery for over 60% of capital plan (Year-end rate base, $ in billions) • FERC formula rates for transmission in both PA an
Slide 17: Significant Piece of Capital Plan Recovered Real-time
Significant Piece of Capital Plan Recovered Real-time Over 60% of PPL’s capital investment plan is subject to contemporaneous recovery Capital Plan Recovery by Segment (2024 - 2027) Total PPL Capital Plan Recovery KY (1) PA RI Base, 39% 7% 25% 33% 34% AFUDC, 15% $6.4B $4.8B $3.1B 12% 61% near 64% 63
Slide 18: 2024 – 2027 Capital Investment Plan
2024 – 2027 Capital Investment Plan Over $14 billion of capital investments that deliver value for customers ($ in billions) Key Capital Plan Considerations ➢ Plan reflects only identified projects without $14.3 billion of planned capital investments any big bets ➢ Upside potential to current plan:
Slide 19: Average Annual Rate Base of 6.3% Through 2027
Average Annual Rate Base of 6.3% Through 2027 Driven by significant investments in T&D infrastructure and non-coal generation (1) (Year-end rate base, $ in billions) 6.3% CAGR ➢ Two-thirds of rate base relates to investments in electric transmission and distribution infrastructure ➢ Growth in non-co
Slide 20: Prioritizing Efficiency and Affordability
Prioritizing Efficiency and Affordability A clear path to deliver at least $175M of annual savings by 2026 from 2021 Reducing O&M by an average of 2.5% per year ➢ T&D Operations (1) • Smart Grid Technology – more efficient and (O&M savings, $ in millions) At Least condition-based maintenance for sub
Slide 21: The TMO: Delivering the Efficiency of our Strategy
The TMO: Delivering the Efficiency of our Strategy Transformation Management Office (TMO) adds rigor and durability to savings 2023 O&M Savings Robust planning has identified over $175M of opportunities (1) >35% AHEAD Bottom-up planning: Implementation: value OF SCHEDULE IN 2023 $75M initiative plan
Slide 22: Balance Sheet Strength Provides Financial Flexibility
Balance Sheet Strength Provides Financial Flexibility Uniquely positioned to fund planned growth without equity ➢ Premier credit ratings among peers PPL’s Debt Maturity Outlook (1) ($ in millions) • Baa1 rating at Moody’s • A- rating at S&P ➢ Supported by strong credit metrics • Targeting 16% - 18%
Slide 23: Regulatory Overview
Regulatory Overview 3rd QUARTER 2024 INVESTOR UPDATE November 1, 2024
Slide 24: Pennsylvania Regulatory Overview
Pennsylvania Regulatory Overview PPL Electric Utilities Key Attributes Constructive Features Mitigating Regulatory Lag 2023 Rate Base ✓ FERC Formula Transmission Rates Year-End Rate Base ($B) $9.8 % of Total PPL Rate Base 38% ✓ Distribution System Improvement Charge (DSIC) ▪ An alternative ratemakin
Slide 25: A Review of the DSIC Mechanism in Pennsylvania
A Review of the DSIC Mechanism in Pennsylvania Reduces regulatory lag associated with certain electric distribution investments ➢ Distribution system improvement charge (DSIC) allows PPL Electric to recover reasonable and prudent costs incurred to repair, improve, or replace eligible property betwee
Slide 26: Summary of DSIC Waiver Filing in Pennsylvania
Summary of DSIC Waiver Filing in Pennsylvania Filing Overview Matter Date ▪ Docket: P-2024-3048732 Settlement Conference July 30, 2024 ▪ PPL Electric filed a request with the PAPUC for an Rebuttal Testimony August 13, 2024 increase to the ompany’s istribution System Surrebuttal Testimony August 27,
Slide 27: Kentucky Regulatory Overview
Kentucky Regulatory Overview Louisville Gas & Electric and Kentucky Utilities Key Attributes Constructive Features Mitigating Regulatory Lag 2023 Rate Base ✓ Environmental Cost Recovery (ECR) Surcharge Year-End Rate Base ($B) $11.9 ▪ Provides near real-time recovery for approved environmental projec
Slide 28: Rhode Island Regulatory Overview
Rhode Island Regulatory Overview Rhode Island Energy Key Attributes Constructive Features Mitigating Regulatory Lag 2023 Rate Base ✓ FERC Formula Transmission Rates Year-End Rate Base ($B) $3.7 % of Total PPL Rate Base 15% ✓ Multi-year rate plans for electric and gas distribution Allowed ROE ✓ Infra
Slide 29: Quarterly Supplemental Information
Quarterly Supplemental Information 3rd QUARTER 2024 INVESTOR UPDATE November 1, 2024
Slide 30: Review of YTD Financial Results Through Sept. 30th
Review of YTD Financial Results Through Sept. 30th Ongoing earnings walk: YTD 2024 vs. YTD 2023 (Earnings per share) Distribution +$0.03 Transmission Revenue +$0.04 Sales Volumes Revenue Transmission Interest Expense ($0.02) +$0.07 +$0.01 (Primarily Weather) Revenue Sales Volumes +$0.03 Operating Co
Slide 31: Electricity Sales Volumes
Electricity Sales Volumes Quarterly and trailing twelve-month retail sales comparison by segment (1) (GWh) Weather-Normalized Electricity Sales Volume Actual Electricity Sales Volume Annual EPS Sensitivity Pennsylvania Three Months Ended Sept. 30, Trailing Twelve Months Ended Sept. 30, Three Months
Slide 32: Capital Expenditure Plan
Capital Expenditure Plan ($ in millions) 2024 2025 2026 2027 4-Year Total Pennsylvania Electric Distribution $500 $425 $400 $425 $1,750 Electric Transmission $675 $800 $825 $725 $3,025 Pennsylvania Total $1,175 $1,225 $1,225 $1,150 $4,775 Kentucky Electric Distribution $325 $400 $400 $350 $1,475 Ele
Slide 33: Projected Rate Base (Year-End)
Projected Rate Base (Year-End) (Year-end rate base, $ in billions) 2023A 2024 2025 2026 2027 Pennsylvania Electric Distribution $4.3 $4.6 $4.7 $4.9 $5.0 Electric Transmission $5.5 $5.8 $6.1 $6.6 $6.9 Pennsylvania Total $9.8 $10.3 $10.9 $11.4 $11.9 Kentucky Electric Distribution $3.0 $3.2 $3.5 $3.8 $
Slide 34: Debt Maturities
Debt Maturities ($ in millions) 2024 2025 2026 2027 2028 2029+ Total PPL Capital Funding $0 $0 $650 $0 $1,000 $2,146 $3,796 PPL Electric Utilities $0 $0 $0 $108 $0 $5,191 $5,299 Louisville Gas & Electric(1) $0 $300 $90 $260 $0 $1,839 $2,489 Kentucky Utilities(1) $0 $250 $164 $60 $0 $2,615 $3,089 Rho
Slide 35: Liquidity Profile
Liquidity Profile ($ in millions) (1 )(2 ) Entity Facility Expiration Date Capacity Borrowed LCs & CP Issued Unused Capacity PPL Capital Funding Syndicated Credit Facility (3) Dec-2028 $1,250 $0 $0 $1,250 Bilateral Credit Facility Feb-2025 $100 $0 $0 $100 (4) Bilateral Credit Facility Feb-2025 $100
Slide 36: PPL's Credit Ratings
PPL’s redit Ratings PPL Corporation Credit Rating S&P Moody’s Secured NR NR PPL Capital Funding Unsecured NR NR Credit Rating S&P Moody’s Long-term Issuer A- Baa1 Outlook Stable Stable Secured NR NR Unsecured BBB+ Baa1 Long-term Issuer A- NR Outlook Stable Stable Rhode Island Energy LG&E and KU PPL
Slide 37: Reconciliation of Segment Reported Earnings to Ongoing Earnings: Current Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Current Year After-Tax (Unaudited) Three Months Ended September 30, 2024 Nine Months Ended September 30, 2024 ($ in millions) KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total Repor
Slide 38: Reconciliation of Segment Reported Earnings to Ongoing Earnings: Prior Year
Reconciliation of Segment Reported Earnings to Earnings From Ongoing Operations: Prior Year After-Tax (Unaudited) Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 ($ in millions) KY Reg. PA Reg. RI Reg. Corp. & Other Total KY Reg. PA Reg. RI Reg. Corp. & Other Total Reporte
Slide 39: Reconciliation of PPL's Earnings Forecast
Reconciliation of PPL’s Earnings Forecast After-Tax (Unaudited) 2024 Forecast Range (per share - diluted) Midpoint High Low Estimate of Reported Earnings $ 1.32 $ 1.35 $ 1.29 Less: Special Items (expense) benefit: (1) Strategic corporate initiatives (2) (0.01) (0.01) (0.01) Acquisition integration (
Slide 40: Forward-Looking Information Statement
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
Slide 41: Definitions of Non-GAAP Financial Measures
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 believe