Q3 2025 PPL Corp Earnings Call

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Vincent Sorgi: I know there's a lot of discussion in the market about the quality of utility load forecasts related to these large loads, and I have a few thoughts on this issue as well. First, we know that load forecasting is a critical component of system planning, and it's also a fundamental part of the PJM capacity auction process. We are very supportive of efforts to ensure that load forecasts are reasonable, and generally prepared in a consistent manner. We are actively engaged with PJM and the other PJM utilities to review and potentially improve the load forecasting process given the amount and pace of interconnection requests. I will also point out that PJM discounts the load forecast it receives from the utilities by as much as 30%. The load forecasts that the utilities provide PJM are not the final forecasts used in the capacity auctions.

After todays presentation, there will be an opportunity to ask questions.

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I would now like to turn the conference over to Andy Ludwig Vice President of Investor Relations. Please go ahead.

Good morning, everyone and thank you for joining the PPL Corporation conference call on third quarter 2025 financial results.

We've provided slides for this presentation on the investors section of our website.

Well begin todays call with updates from Vince Sorgi, PPL, President and CEO, and Joe Bergstein, Chief Financial Officer.

I will conclude with a Q&A session following our prepared remarks.

Before we get started I'll draw your attention to slide two in our brief cautionary statements.

Vincent Sorgi: While reviewing this process is an important step, I want to be clear that these load additions are real, they are coming fast and furious, and focusing on load forecasts alone does not obviate the need to start building new generation now. Forecasts will continue to be refined as they always are, but the near-term risk of overbuilding generation simply does not exist. The bottom line is that we need to start building new generation as soon as possible. As you know, that is exactly why we continue to support state solutions like long-term contracting for generation, and a utility ownership backstop, while we are also active in PJM's large load customer collaboration and market reforms. We support the continued focus by Governor Shapiro to mitigate supply price increases for our customers, and encourage new generation development in the state.

Our presentation today contains forward looking statements.

Our future operating results or other future events actual results may differ materially from these forward looking statements.

Please for the appendix of this presentation and Ppl's SEC filings for a discussion of some of the factors that could cause actual results to differ from the forward looking statements.

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

Reconciliations to the comparable GAAP measures please refer to the appendix.

I'll now turn the call over to Vince.

Thanks, Andy and good morning, everyone.

Welcome to our third quarter Investor update.

Let's begin with highlights from our third quarter financial performance on slide four.

Today, we reported third quarter GAAP earnings of 43 per share.

Adjusting for special items third quarter earnings from ongoing operations were <unk> 48 per share.

Vincent Sorgi: A recent proposal to incentivize large loads to bring their own generation and bifurcate the capacity auctions between existing generation and new build are things that we think could have merit. We'll be involved in helping to shape details to advance workable proposals that protect reliability, accelerate economic development, and support affordable electricity for our customers. That also includes leveraging our joint venture with Blackstone Infrastructure, which is prepared to build new generation to directly support data center demand under long-term energy supply agreements. At the end of the day, our strategy and the solutions we've proposed are geared towards ensuring reliability, affordability, and resilience as we navigate this unprecedented wave of demand growth. Finally, we've updated our CapEx estimates related to the 20.5 gigawatts to be at least $1 billion, or an incremental $600 million to what is in our current capital plan.

Building on this strong performance, we have narrowed our 2025 ongoing earnings forecast range to $1 78 to $1 84 per share maintaining our midpoint of $1 81 per share.

<unk> confident in our ability to achieve at least this mid point supported by our continued operational discipline and strategic execution.

Throughout the quarter, we continued to advance our utility of the future strategy delivering meaningful progress across our operations.

We're on track to complete approximately $4 $3 billion in infrastructure improvements this year.

Critical investments that support reliable resilient affordable and cleaner energy networks for our customers now and in the future.

Speaker #4: Good day , and welcome to the ppl Corporation . Third quarter 2020 Earnings Conference Call . All participants will be in listen only mode .

Our continued focus on innovation and technology has us on pace to achieve our annual O&M savings target of at least $150 million compared to our 2021 baseline.

Speaker #4: Should you need assistance , please signal a conference specialist by pressing the star key , followed by zero . After today's presentation , there will be an opportunity to ask questions , to ask a question , you may press star , then one on a touchtone phone to withdraw your question , please press star .

Vincent Sorgi: Given the number of projects we have in their locations, we are seeing that some of the upgrades required for these data center projects were already included in our transmission capital plan. The prior sensitivity of 1 gigawatt representing $50 to 150 million of capital additions no longer holds true. We will continue to define the potential upside with each quarterly update, and, of course, we'll provide full details on the business plan refresh during our year-end call. Turning to Kentucky economic development on slide eight, the economic development pipeline continues to grow, fueled in large part by access to the reliable, affordable electricity that LG&E and KU provide, and most recently with the CPCN approval to build new generation resources. The economic development pipeline now totals just under 10 gigawatts of electricity demand.

Looking ahead.

We continue to project $20 billion in infrastructure investments from 2025 to 2028, driving average annual rate base growth of nine 8%. We also remain well positioned to deliver 6% to 8% annual EPS and dividend growth through at least 2028.

Speaker #4: Then, two. Please note this event is being recorded. I would now like to turn the conference over to Andy Ludwig, Vice President of Investor Relations.

With EPS growth expected to be in the top half of that range.

Importantly, we expect to maintain our strong credit profile.

Speaker #4: Please go ahead .

Speaker #5: Good morning , everyone , and thank you for joining the PPL Corporation conference call on third quarter 2020 financial results . We provided slides for this presentation on the investor section of our website .

With an <unk> to debt ratio of 16% to 18% and holding company to total debt ratio below 25%.

As is customary we will provide.

And updated business plan on our year end call, including our formal 2026 earnings forecast and roll forward of our longer term outlook.

Speaker #5: Within today's call , with updates from Vincent Sorgi president and CEO and Joseph Bergstein Chief Financial Officer and we'll conclude with a Q&A session following our prepared remarks .

Turning to some regulatory updates beginning on slide five.

In Kentucky, <unk> and Ku have reached a proposed settlement agreement with the majority of the intervenors in their base rate case proceedings.

Vincent Sorgi: This includes data center requests totaling about 8.7GW, an increase of 3GW from our Q2 update. About 4GW of these data center requests are considered highly active, with another 500MW that are under construction. While we saw a decrease in our non-data center demand due to a few large projects that were canceled or were reclassified into the data center category, the number of project requests continues to be robust and has increased quarter over quarter. With these updates, our refreshed probability-weighted demand growth projections now total about 2.8GW, a 300MW increase from our Q2 estimate. If this potential growth continues to materialize, additional generation resources will be required. As a result, we continue to monitor the progress of these projects very closely, as our recent CPCN only included about 1.8GW of new demand growth.

Speaker #5: Before we get started , I'll draw your attention to slide two and a brief cautionary statement . Our presentation today contains forward looking statements about future operating results or other future events .

<unk> filed with the commission on October 20th.

Includes a revised aggregate increase of approximately $235 million in annual revenues and an authorized ROE of nine 9%.

Speaker #5: Actual results may differ materially from these forward looking statements . Please refer to the appendix of this presentation and Ppl's SEC filings for a discussion of some of the factors that could cause actual results to differ from the forward looking statements .

The agreement also features a base rate stay out provision through August one 2028, providing stability for our customers and our business.

Speaker #5: We will also refer to non-GAAP measures , including earnings from ongoing operations or ongoing earnings on this call for reconciliations to the comparable GAAP measures .

In connection with the stay out.

Settlement introduces two new rate mechanisms designed to balance customer affordability with the need for continued investment in Kentucky energy infrastructure.

Speaker #5: Please refer to the appendix . I'll now turn the call over to Vince .

Speaker #6: Thanks , Andy , and good morning , everyone . Welcome to our third quarter investor update . Let's begin with highlights from our third quarter financial performance on slide four .

The first.

The generation cost recovery adjustment clause or at GCI.

We will provide recovery of and a return on investments associated with new generation and energy storage assets already approved by the commission, but not yet in service.

Speaker #6: Today we reported third quarter GAAP earnings of $0.43 per share . Adjusting for special items . Third quarter earnings from ongoing operations were $0.48 per share .

This would include the Mill Creek unit five and GCC.

Vincent Sorgi: Our success in supporting this growth was once again recognized in September, when LG&E and KU were named a top utility in economic development by Site Selection magazine, the 12th time they earned this distinction since 2012. Turning to slide nine, let's talk about affordability, one of our core commitments here at PPL. We know that affordability matters to our customers, and we're focused on keeping bills as low as possible while continuing to invest in reliability, resiliency, and economic growth. Success begins with a culture of continuous improvement and innovation across our organization. Through disciplined cost management and smart investments, we've delivered on initiatives that keep us on track to reduce O&M costs by an average of 2.5% per year from 2021 through 2026.

Speaker #6: Building on this strong performance, we've narrowed our 2025 ongoing earnings forecast range to $1.78 to $1.84 per share, maintaining our midpoint of $1.81 per share.

The Marianne in Mercer County, solar generating facilities.

And the EW Brown energy storage facility approved in our 2022 C PCN as.

As well as the recently approved EW Brown unit 12, and GCC from our 2025 CPC and proceeding.

Speaker #6: We remain confident in our ability to achieve at least this midpoint , supported by our continued operational discipline and strategic execution throughout the quarter , we continued to advance our utility of the future strategy , delivering meaningful progress across our operations .

The TCR does not cover Mill Creek unit six.

Is that units recovery was considered separately in our CPC on stipulation with intervenors.

I'll cover the commission CPC on order in a few moments.

Speaker #6: We're on track to complete approximately $4.3 billion in infrastructure improvements this year . Critical investments that support reliable , resilient , affordable and cleaner energy networks for our customers .

The second rate mechanism agreed to in our rate case stipulation is a sharing mechanism adjustment clause.

This mechanism would help to mitigate regulatory lag while protecting customers from potential over earning during the final 13 months of the stay out period.

Speaker #6: Now and in the future . Our continued focus on innovation and technology has us on pace to achieve our annual O&M savings target of at least $150 million , compared to our 2021 baseline .

Ensuring an ROE of no less than nine 4% and no more than 10, 5%.

Vincent Sorgi: These savings come from deploying smart grid technologies on our transmission and distribution networks, optimizing planned generation outages, and centralizing shared service functions to improve efficiency. We're also incorporating new technologies across PPL, including the use of artificial intelligence in all aspects of our business. From predictive maintenance to customer service to back office functions, to deliver better results for our customers at lower costs. We expect these technologies will enable us to achieve the next wave of future cost efficiencies. At the same time, we're supporting robust data center growth while protecting our other customers and ensuring rates remain fair. In Pennsylvania, connecting data centers to our grid lowers the transmission portion of the customer bill for the existing customer base, as these large load customers will pay a larger portion of the fixed transmission costs.

The stipulation also includes support of a new tariff designed for customers with large demands and very high load factors such as data centers.

Speaker #6: Looking ahead , we continue to project $20 billion in infrastructure investments from 2025 through 2028 , driving average annual rate base growth of 9.8% .

The tariff helps to attract these customers and continues to drive economic growth in our service territories, while ensuring adequate safeguards are in place for all customers.

Speaker #6: We also remain well positioned to deliver 6% to 8% annual EPS and dividend growth through at least 2028, with EPS growth expected to be in the top half of that range.

While the stipulation agreement remains subject to commission approval. We believe it represents a balanced result, and again underscores the collaborative approach, we take with key stakeholders in Kentucky to achieve fair and constructive outcomes.

Speaker #6: Importantly , we expect to maintain our strong credit profile with an FFO to debt ratio of 16 to 18% and a holding company to total debt ratio below 25% .

New rates are expected to take effect no earlier than January one 2026.

Speaker #6: As is customary , we'll provide an updated business plan on our year end call , including our formal 2026 earnings forecast and roll forward of our longer term outlook .

Hearings began earlier this week and we anticipate a decision from the PSC by the end of the year.

Turning to slide six for a few additional regulatory updates.

Speaker #6: Turning to some regulatory updates beginning on slide five . In Kentucky , LG and Ku have reached a proposed settlement agreement with the majority of the Intervenors in their base rate case proceedings .

Vincent Sorgi: In addition, our electric service agreements in Pennsylvania require data center customers to pay a minimum amount, generally 80% of their requested load forecast, even if they use less electricity until the costs incurred to extend service are fully recovered. We've proposed a new tariff in our rate case to memorialize these terms within our tariff structure. In Kentucky, as I mentioned earlier, we've also proposed a new tariff for large load customers, requiring them to make a 15-year commitment to pay for at least 80% of the forecasted demand for the entire term. These measures ensure that large load customers pay their fair share, and that our existing customers in Pennsylvania and Kentucky do not end up subsidizing the large load customers. We're also finding other creative ways to save customers money. In Rhode Island, we've agreed to credit customers a total of nearly $155 million.

I'm also pleased to report that LG <unk> received approval in a K PSC order for much of the Companys July 2020, <unk> stipulation agreement.

Speaker #6: The agreement filed with the Commission on October 20th includes a revised aggregate increase of approximately $235 million in annual revenues and an authorized ROE of 9.9% .

This decision marks a significant milestone in our long term generation investment strategy.

And then again reflects our ability to work collaboratively with stakeholders to deliver reliable cost effective energy solutions.

Speaker #6: The agreement also features a base rate stay-out provision through August 1, 2028, providing stability for our customers and our business.

With this approval <unk> and Ku will construct two new 645 megawatt natural gas combined cycle units around 12, and Bell Creek six.

Speaker #6: In connection with this, stay out. The settlement introduces two new rate mechanisms designed to balance customer affordability with the need for continued investment in Kentucky's energy infrastructure.

These units will be similar to the Mill Creek five combined cycle units currently under construction.

In addition, <unk> will install an SCR to mitigate Nox emissions at unit two of the <unk> generating station.

Speaker #6: The first , a generation cost recovery adjustment clause , or a GCR , will provide recovery of and a return on investments associated with new generation and energy storage assets already approved by the Commission , but not yet in service .

These investments will ensure we continue to meet Kentucky's growing energy needs driven by record breaking economic development and data center expansion.

All while maintaining reliability and affordability for our customers.

Vincent Sorgi: In January, February, and March of 2026 and 2027, when winter bills tend to be the highest, this arrangement is net present value neutral for PPL. It provides our customers with some much-needed near-term bill support, with the average electricity customer receiving $20 to $25 a month and the average gas customer receiving $40 to $45 a month. These credits were approved by the Rhode Island Division of Public Utilities and Carriers, or the division, to satisfy a deferred tax hold harmless commitment tied to our acquisition of Rhode Island Energy. The division is a separate organization from the Rhode Island Public Utility Commission. It was the division that approved our acquisition of Rhode Island Energy, and it was the division that we made the hold harmless commitment to. The settlement is currently in front of the Rhode Island Public Utility Commission for final implementation approval.

Speaker #6: This would include the Mill Creek Unit V and GCC, the Marion and Mercer County solar generating facilities, and the E.W. Brown Energy Storage Facility, approved in our 2022 CPCN, as well as the recently approved E.W.

The approval also supports request regarding regulatory asset treatment for <unk> and recovery of the Gen. Two SCR costs through the existing environmental cost recovery mechanism.

<unk> decided not to approve two proposed cost recovery mechanisms for the recovery of Mill Creek, six and the recovery of costs associated with keeping mill Creek to open beyond its original retirement date in 2027.

Speaker #6: Brown unit 12 . From our 2025 Cpcn proceeding . The GCR does not cover Mill Creek Unit six as that unit's recovery was considered separately and our cpcn stipulation with Intervenors I'll cover the Commission's cpcn order in a few moments .

However, the <unk> encouraged <unk> to provide additional evidence on such matters and separate proceedings, including the open rate case proceedings we.

Speaker #6: The second rate mechanism agreed to in our rate case stipulation is a sharing mechanism adjustment clause . This mechanism would help to mitigate regulatory lag while protecting customers from potential overturning during the final 13 months of the stay out period , ensuring an ROE of no less than 9.4% and no more than 10.15% .

We have decided to address the recovery of the mill Creek to stay open costs in the pending rate case proceedings and will address the mill Creek six recovery in a future proceeding since that unit is not expected to come online until 2031.

Vincent Sorgi: While we cannot predict the outcome of that proceeding, given our collaborative approach and the division's prior approval, we are optimistic about a positive outcome and look forward to delivering meaningful bill credits to our Rhode Island customers. In Pennsylvania, we're supporting legislation that would incentivize new generation build in the state, helping to address resource adequacy needs and lower wholesale capacity prices. Our joint venture with Blackstone Infrastructure is another prime example, as it intends to build new generation to serve data center load, mitigating rising prices for customers and delivering value for shareholders. Affordability isn't just a talking point; it's embedded in everything we do. By combining innovation, disciplined cost control, and strategic partnerships, we're ensuring that customers benefit from a reliable, resilient, and affordable energy future.

We appreciate the commission's constructive feedback and remain confident in our ability to present compelling evidence and upcoming proceedings.

Speaker #6: The stipulation also includes support for a new tariff designed for customers with large demands and very high load factors, such as data centers.

Our team is committed to securing cost recovery that supports continued investment in reliable energy infrastructure to meet the growing needs in the Commonwealth.

Speaker #6: The tariff helps to attract these customers and continues to drive economic growth in our service territories while ensuring adequate safeguards are in place for all customers .

In other updates on September 30th PPL Electric utilities filed a request with the Pennsylvania Public utility Commission to increase annual base distribution revenues, which would represent its first distribution base rate change and more than a decade.

Speaker #6: While the stipulation agreement remains subject to commission approval , we believe it represents a balanced result . And again underscores the collaborative approach we take with key stakeholders in Kentucky to achieve fair and constructive outcomes .

The requested increase supports our need to build and maintain a stronger smarter and more resilient electric grid to better withstand increasingly severe weather prevent outages and improve service to our customers.

Speaker #6: New rates are expected to take effect no earlier than January 1st , 2026 . Official hearings began earlier this week , and we anticipate a decision from the PSC by the end of the year .

Over the past 10 years, we've been successful in avoiding base rate increases, while creating one of the nation's most sophisticated and efficient grids.

Vincent Sorgi: As you have heard countless times from us, every dollar of O&M savings achieved can be reinvested as about $8 of capital without impacting customer bills. That's the power of disciplined cost management and operating efficiency, creating room for critical investments while keeping affordability front and center. That concludes my business update. I'll now turn the call over to Joe for the financial update. Thank you, Vince, and good morning, everyone. Let's turn to slide 11. PPL's third quarter GAAP earnings were $0.43 per share compared to $0.29 per share in Q3 2024. We recorded special items of $0.05 per share during the third quarter of 2025, primarily due to IT transformation costs and certain costs related to the integration of Rhode Island Energy.

Speaker #6: Turning to slide six for a few additional regulatory updates . I'm also pleased to report that LG and Ku received approval in a PSC order for much of the company's July 2025 , Cpcn stipulation agreement .

In fact, PPL electric's operating and maintenance expenses have increased by only seven 4% nominally since 2015.

Compared to 32% inflation over that same period.

Speaker #6: This decision marks a significant milestone in our long term generation investment strategy , and it again reflects our ability to work collaboratively with stakeholders to deliver reliable , cost effective energy solutions .

We are requesting a net revenue increase of just over $300 million or eight 6%.

It's more than $50 million of the base rate request includes revenue that is already reflected in customer bills through riders like the desk.

Speaker #6: With this approval , LGD and Ku will construct two new 645 megawatt natural gas combined cycle units around 12 and Mill Creek six .

Also as part of this base rate case.

The amount of rate base included in the disc mechanism will reset to zero.

Speaker #6: These units will be similar to the Mill Creek five combined cycle unit , currently under construction . In addition , LG and NQ will install an SCR to mitigate NOx emissions at unit two of the generating station .

And the cap on the desk revenue would also reset back to 5% of base distribution revenues.

Our rate case application is supported by a fully forecasted test year that begins July one 2026, and a requested ROE of 11, 3%.

Vincent Sorgi: Adjusting for these special items, third quarter earnings from ongoing operations were $0.48 per share, a $0.06 per share increase compared to Q3 2024. The increase was primarily due to several favorable factors, including higher revenues from formula rates and rider recovery mechanisms, as well as lower operating costs, which were partially offset by higher interest expense. As Vince mentioned in his remarks, with a strong quarter of the results, we've narrowed our 2025 ongoing earnings forecast range and remain confident in achieving at least the midpoint of $1.81 per share. During the third quarter, we took the opportunity to de-risk a sizable portion of our equity financing needs as we fund our substantial growth. In August, we entered into forward contracts to sell approximately $1 billion of equity. We completed these transactions under the ATM, which minimized fees and enabled efficient execution.

Speaker #6: These investments will ensure we continue to meet Kentucky's growing energy needs , driven by record breaking economic development and data center expansion , all while maintaining reliability and affordability for our customers .

We anticipate a decision from the PUC on our case in the second quarter of next year with.

With new rates effective on July one 2026.

Speaker #6: The approval also supports requests regarding regulatory asset treatment for Afudc and recovery of the Gen two SCR costs through the existing environmental cost recovery mechanism .

And finally in our last regulatory update we continue to expect Rhode Island energy to file a distribution base rate request before the end of this year.

Now, let's turn to slide seven and our datacenter updates in Pennsylvania.

Speaker #6: The PSC decided not to approve two proposed cost recovery mechanisms for the recovery of Mill Creek Six and the recovery of costs associated with keeping Mill Creek Two open beyond its original retirement date in 2027.

There's a lot to unpack in this quarter's update as shown on this slide.

First.

Momentum continues to build and PPL electric utility service territory in terms of interconnection requests to our transmission network.

Speaker #6: However , the PSC encouraged LG and to provide additional evidence on such matters in separate proceedings , including the open rate case proceedings .

Since our last update the number of data center projects in advanced stages of planning.

Those projects that have either assigned electric service agreement or an Esa.

Speaker #6: We have decided to address the recovery of the Mill Creek two stay open costs in the pending rate case proceedings , and we'll address the Mill Creek six recovery in a future proceeding .

Or a signed letter of agreement LOI have jumped more than 40% from $14 four gigawatts to two five gigawatts.

Vincent Sorgi: This brings the total amount of equity executed under the forward agreements to approximately $1.4 billion of the $2.5 billion forecasted equity needs through 2028. Approximately $400 million will settle at the end of this year, with another $500 million to settle at the end of 2026, and the remaining $500 million settling in mid-2027. Turning to the ongoing segment drivers for the third quarter on slide 12, our Kentucky segment results increased by $0.02 per share compared to the third quarter of 2024. This increase was driven by higher sales volumes, largely due to favorable weather in Q3 2025, lower operating costs, and higher earnings from additional capital investments, partially offset by higher interest expense. Our Pennsylvania regulated segment results also increased by $0.02 per share compared to the same period a year ago.

Speaker #6: Since that unit is not expected to come online until 2031, we appreciate the Commission's constructive feedback and remain confident in our ability to present compelling evidence in upcoming proceedings.

This marks yet another increase in our data center pipeline since we initially announced about three gigawatts in advanced stages in the first quarter of 2024.

Speaker #6: Our team is committed to securing cost recovery that supports continued investment in reliable energy infrastructure to meet the growing needs in the Commonwealth .

Both of these agreements require significant financial support from the Counterparties.

Loa's carry significant financial burden for Counterparties as they agreed to pay for all the engineering and long lead time materials, which could easily run into the tens of millions of dollars.

Speaker #6: In other updates , on September 30th , Polytechnic Utilities filed a request with the Pennsylvania Public Utility Commission to increase annual base distribution revenues , which would represent its first distribution base rate change in more than a decade .

The Esa as include all the commitments and the Loa's plus customer commitments around additional credit support.

And require the counterparty to pay a minimum load requirement based on 80% of their load forecast.

Speaker #6: The requested increase supports our need to build and maintain a stronger, smarter, and more resilient electric grid to better withstand increasingly severe weather, prevent outages, and improve service to our customers.

Over 11, Gigawatts of the $20 five gigawatts under signed agreements have been publicly announced including about five gigawatts that have already begun construction.

Speaker #6: Over the past ten years , we've been successful in avoiding base rate increases while creating one of the nation's most sophisticated and efficient grids .

So overall, we're very confident that at least 25 gigawatts of demand is real.

Vincent Sorgi: The increase was primarily driven by higher transmission revenue from additional capital investments and higher distribution rider recovery, partially offset by higher interest expense. Our Rhode Island segment results increased by $0.01 per share compared to the same period a year ago. The primary driver of this increase was lower operating costs. Finally, results at corporate and other increased by $0.01 per share compared to the prior period due to several factors that were not individually significant. We are pleased with our performance through three quarters of the year, and remain well-positioned to deliver on our commitments to share owners in 2025 and beyond. Our focus on providing real value to our customers underpins our robust business plan, and our confidence in our long-term financial targets.

Especially given we have an additional 70 gigawatts of demand in the queue.

Speaker #6: In fact, PPL operating and maintenance expenses have increased by only 7.4% nominally since 2015, compared to 32% inflation over that same period.

I know theres a lot of discussion in the market about the quality of utility load forecasts related to these large loads.

Have a few thoughts on this issue as well.

Speaker #6: We are requesting a net revenue increase of just over $300 million , or 8.6% , as more than 50 million of the base rate request includes revenue .

First we know that load forecasting is a critical component of system planning and it's also a fundamental part of the PJM capacity auction process.

So we are very supportive of efforts to ensure that load forecast are reasonable and generally prepared in a consistent manner.

Speaker #6: That is already reflected in customer bills through riders like the disc . Also , as part of this base rate case , the amount of rate base included in the disc mechanism will reset to zero , and the cap on the disc revenue would also reset back to 5% of base distribution revenues .

We are actively engaged with PJM and the other PJM utilities to review and potentially improve the load forecasting process, given the amount and pace of interconnection requests.

Vincent Sorgi: We continue to make excellent progress on de-risking that plan through constructive regulatory outcomes and financial discipline, while driving initiatives that can support future growth. This concludes my prepared remarks. I'll now turn the call back over to Vince. Thank you, Joe. In closing, PPL is delivering strong results today, and we're building a strong foundation for tomorrow. We've narrowed our earnings guidance. We remain confident in achieving at least the midpoint of that guidance, supported by disciplined execution and a clear vision. We're advancing our utility-to-the-future strategy, investing in infrastructure, deploying technology, and driving innovation, all while maintaining affordability for our customers. PPL's disciplined execution and strategic investments, coupled with our focus on innovation, data center expansion, and operational efficiency, set us apart in the utility sector. That focus creates value for both our customers and our shareholders alike.

I'll also point out that PJM discounts the load forecast it receives from the utilities by as much as 30%.

Speaker #6: Our rate case application is supported by a fully forecasted test year begins July 1st , 2026 , and a requested ROE of 11.3% .

So the load forecast that the utilities provide PJM or not the final forecast used in the capacity auctions.

Speaker #6: We anticipate a decision from the PUC on our case in the second quarter of next year with new rates effective on July 1st , 2026 , and finally , in our last regulatory update , we continue to expect Rhode Island Energy to file a distribution base rate request before the end of this year .

And while reviewing this process is an important step.

To be clear that these load additions are real they are coming fast and furious.

And focusing on load forecast alone does not obviate the need to start building new generation now.

Speaker #6: Now , let's turn to slide seven and our data center updates in Pennsylvania . There's a lot to unpack in this quarter's update as shown on this slide .

Forecast will continue to be refined as they always are but the near term risk of overbuilding generation simply does not exist.

The bottom line is that we need to start building new generation as soon as possible.

Speaker #6: First , momentum continues to build in political utility service territory . In terms of interconnection requests to our transmission network . Since our last update , the number of data center projects in advanced stages of planning those projects that have either assigned electric service agreement or an essay , or a signed letter of agreement have jumped more than 40% from 14.4GW to 20.5GW .

And as you know that is exactly why we continue to support state solutions like long term contracting for generation and a utility ownership backstop.

While we are also active in pjm's large load customer collaboration and market reforms.

We support the continued focus by Governor Shapiro to mitigate supply price increases for our customers and encourage new generation development in the state.

Vincent Sorgi: Thank you for your continued confidence in PPL and our team. With that, operator, let's open it up for questions. We will now begin the question-and-answer session. To ask a question, you may press star then one on your touch-tone phone. If you are using a speakerphone, please pick up your handset before pressing the keys. If at any time your question has been addressed and you would like to withdraw the question, please press star then two. At this time, we will pause momentarily to assemble our roster. Now, operator, while you're compiling the roster, I just want to take a moment to acknowledge the UPS plane crash that occurred yesterday in Louisville. Our hearts go out to the families of those who lost their lives and those who have been injured. Fortunately, our employees are all accounted for and safe. Yesterday, we supported the emergency responders.

A recent proposal to incentivize large loads to bring their own generation and bifurcate the capacity auctions between existing generation and newbuild or things that we think could have merit.

Speaker #6: This marks yet another increase in our PA data center pipeline , since we initially announced about three gigawatts in advanced stages in the first quarter of 2024 .

We'll be involved in helping to shape details to advance workable proposals that protect reliability.

Speaker #6: Both of these agreements require significant financial support from the counterparties . Lows carry significant financial burden for counterparties as they agree to pay for all the engineering and long lead time materials , which could easily run into the tens of millions of dollars .

Accelerate economic development and support affordable electricity for our customers.

That also includes leveraging our joint venture with Blackstone infrastructure, which is prepared to build new generation to directly support data center demand under long term energy supply agreements.

Speaker #6: The ESAs include all the commitments in the lows , plus customer commitments around additional credit support , and require the counterparty to pay a minimum load requirement based on 80% of their load forecast .

At the end of the day, our strategy and the solutions. We've proposed are geared towards ensuring reliability affordability and resilience as we navigate this unprecedented wave of demand growth.

Speaker #6: Over 11GW of the 20.5GW under signed agreements have been publicly announced , including about five gigawatts that have already begun construction . So overall , we're very confident that at least 25GW of demand is real , especially given we have an additional 70GW of demand in the Q I know there's a lot of discussion in the market about the quality of utility load forecasts related to these large loads , and I have a few thoughts on this issue as well .

Vincent Sorgi: We ended up de-energizing transmission lines that were going into a nearby substation, and we ended up cutting off some nearby gas lines to ensure the safety of those first responders. The impact to our customers was minimal, but we are working to get everyone back online, to do so as safely as we can. We also had team members embedded in the Louisville operator center to assist as needed, and we remain committed to supporting the community and first responders any way that we can. It is certainly a sad day for our entire Louisville community. Operator, who has our first question? Our first question comes from Shar Pereza with Wells Fargo. Please go ahead. Hey, guys. Good morning. Good morning. Good morning.

And finally.

We've updated our capex estimates related to the $20 five gigawatts to be at least $1 billion or an incremental $600 million to what is in our current capital plan.

Given the number of projects we have in their locations. We are seeing that some of the upgrades required for these data center projects were already included in our transmission capital plan.

So the prior sensitivity of one gigawatt, representing $50 million to $150 million of capital additions no longer holds true.

Speaker #6: First , we know that load forecasting is a critical component of system planning . And it's also a fundamental part of the PJM capacity auction process .

But we will continue to define the potential upside with each quarterly update and of course, we'll provide full details on the business plan refresh during our year end call.

Speaker #6: So we are very supportive of efforts to ensure that load forecasts are reasonable and generally prepared in a consistent manner . We are actively engaged with PJM and the other PJM utilities to review and potentially improve the load forecasting process .

Turning to Kentucky economic development on slide eight.

Vincent Sorgi: Vince, just on the Kentucky CPCN case, obviously you mentioned the tracking mechanism for Mill Creek 2 stay open cost and Mill Creek 6 were rejected. You highlighted denied without prejudice. I guess, what information was missing for them to decide why the denial and any sort of near-term EPS impact there we should be thinking about? Thanks. Sure, Shar. Not concerned from an earnings perspective per se. I'll kind of take Mill Creek 2 separate from Mill Creek 6. For Mill Creek 6, the commission did approve AFUDC treatment, so that project will be in construction through 2031 when it goes into service. Really no earnings impact there. The new mechanism would not have gone into effect until the in-service date, so we have plenty of time to address Mill Creek 6. As you said, those mechanisms were designed without prejudice.

The economic development pipeline continues to grow.

Fueled in large part by access to reliable affordable electricity that LG <unk>, you provide and most recently with the CPC on approval to build new generation resources.

Speaker #6: Given the amount and pace of interconnection requests, I will also point out that PJM discounts the load forecasts it receives from the utilities by as much as 30%.

The economic development pipeline now totals just under 10 gigawatts of electricity demand.

Speaker #6: So the load forecast that the utilities provide PJM are not the final forecast used in the capacity auctions . And while reviewing this process is an important step , I want to be clear that these load additions are real .

This includes data center requests totaling about $8 seven gigawatts an.

An increase of three gigawatts from our second quarter update.

About four Gigawatts of these data center requests are considered highly active with another 500 megawatts that are under construction.

Speaker #6: They are coming fast and furious, and focusing on load forecasts alone does not obviate the need to start building new generation. Now.

While we saw a decrease in our non data center demand due to a few large projects that were canceled or were reclassified into the data center category. The number of project request continues to be robust and has increased quarter over quarter with these updates our refreshed probability weighted demand growth projections now.

Speaker #6: Forecasts will continue to be refined as they always are , but the near term risk of overbuilding generation simply does not exist . The bottom line is that we need to start building new generation as soon as possible .

Speaker #6: And as you know , that is exactly why we continue to support state solutions like long term contracting for generation and a utility ownership backstop , while we are also active in PJM , large load customer collaboration and market reforms , we support the continued focus by Governor Shapiro to mitigate supply price increases for our customers and encourage new generation development in the state .

Total about two eight gigawatts of.

The 300 megawatt increase from our Q2 estimate.

If this potential growth continues to materialize additional generation resources will be required.

Vincent Sorgi: Not only do we have the ability to refile for those, but the commission actually encouraged us to refile those mechanisms in either a future proceeding or even the current open proceeding for the rate cases to which we are dealing with this week in hearings. For Mill Creek 2, we want to get that one addressed sooner, obviously, because we are actively spending money, a little bit this year, but going forward to enable us to continue to operate that plant beyond 2027. We really need to get recovery of any of those costs before we would agree to continue to operate that plant beyond 2027. We would be incurring about $30 million of additional O&M, about $40 million of additional CapEx from now until 2030, in addition to what was filed in the base rate case request for Mill Creek 2.

As a result, we continue to monitor the progress of these projects very closely as our recent CP CN only included about one eight gigawatts of new demand growth our success in supporting this growth was once again recognized in September one.

Speaker #6: A recent proposal to incentivize large loads to bring their own generation and bifurcate the capacity auctions between existing generation and new build are things that we think could have merit .

<unk> and Ku were named a top utility and economic development by site selection magazine. The 12 time. They earned this distinction since 2012.

Speaker #6: We'll be involved in helping to shape details to advance workable proposals that protect reliability , accelerate economic development and support affordable electricity for our customers .

Turning to slide nine.

Let's talk about affordability.

One of our core commitments here at PPL.

Speaker #6: That also includes leveraging our joint venture with Blackstone Infrastructure , which is prepared to build new generation to directly support data center demand under long term energy supply agreements .

We know that affordability matters to our customers.

And we're focused on keeping bills as low as possible, while continuing to invest in reliability resiliency and economic growth success.

Speaker #6: At the end of the day, our strategy and the solutions we've proposed are geared towards ensuring reliability, affordability, and resilience as we navigate this unprecedented wave of demand growth.

Success begins with a culture of continuous improvement and innovation across our organization.

Through disciplined cost management and smart investments, we have delivered on initiatives that keep us on track to reduce O&M costs by an average of two 5% per year from 2021 through 2026.

Speaker #6: And finally , we've updated our CapEx estimates related to the 20 and half gigawatts to be at least $1 billion or an incremental $600 million to what is in our current capital plan , given the number of projects we have in their locations , we are seeing that some of the upgrades required for these data center projects we're already included in our transmission capital plan .

Vincent Sorgi: We would want to see recovery of that. We updated the testimony last Friday to address Mill Creek 2, and that's part of the hearings this week. As I said, Mill Creek 2, we're addressing that now. Mill Creek 6, we'll deal with that in a future proceeding. You asked what was missing, but not sure that a whole lot was missing necessarily, although I think it's safe to assume that the commission felt that the CPCN proceeding was not the proper arena to deal with rate mechanisms, and they would rather deal with that in a rate proceeding. Got it. Okay. No, that's perfect. Just on the resource adequacy topic in Pennsylvania specifically, there's obviously two bills sitting at the House and Senate. I think they'll reconvene in November.

These savings come from deploying smart grid technologies on our transmission and distribution networks optimizing plant generation outages and centralizing shared service functions to improve efficiency.

We're also incorporating new technologies across PPL, including the use of artificial intelligence and all aspects of our business from.

Speaker #6: So the prior sensitivity of one gigawatt representing 50 to 150 million of capital additions , no longer holds true . But we will continue to define the potential upside with each quarterly update .

From predictive maintenance to customer service to back office functions to deliver better results for our customers at lower cost.

Speaker #6: And of course , we'll provide full details on the business plan refresh during our year end call . Turning to Kentucky Economic development on slide eight , the economic development pipeline continues to grow , fueled in large part by access to the reliable , affordable electricity that LG and EKU provide .

We expect these technologies will enable us to achieve the next wave of future cost efficiencies.

At the same time, we're supporting robust data center growth, while protecting our other customers and ensuring rates remain fair.

And Pennsylvania connect.

Connecting data centers to our grid lowers the transmission portion of the customer bill for the existing customer base as these large load customers will pay a larger portion of the fixed transmission costs.

Vincent Sorgi: I guess, thoughts there, Vince, and more importantly, can sort of the wires companies strike a middle ground with the IPPs, maybe around a long-term resource adequacy agreement structure that's also being proposed in the legislation versus this kind of push-pull around rate-basing generation? I guess, how are discussions going, and can you guys strike a deal there? Yeah, sure. Maybe just broadly, what's happening with the legislation, right? I think we need to see a couple of things before you'll really see movement on this proposed legislation, but really any meaningful movement of legislation. The first is just the state budget. Obviously, the budget impasse is negatively impacting broader discussions around legislation. I would throw Reggie into the mix as well. That seems to be a gating issue for energy policy discussions.

Speaker #6: And most recently , with the Cpcn approval to build new generation resources . The economic development pipeline now totals just under ten gigawatts of electricity demand .

In addition, our electric service agreements in Pennsylvania require datacenter customers to pay a minimum amount generally 80% of their requested load forecast, even if they use less electricity until the costs incurred to extend service are fully recovered.

Speaker #6: This includes data center requests totaling about 8.7GW , an increase of three gigawatts from our second quarter update . About four gigawatts of these data center requests are considered highly active , with another 500MW that are under construction .

And we have proposed a new tariff in our rate case to memorialize these terms within our tariff structure.

Speaker #6: While we saw a decrease in our Non-data center demand due to a few large projects that were canceled or were reclassified into the data center category , the number of project requests continues to be robust and has increased quarter over quarter , with these updates , our refreshed probability weighted demand growth projections now total about 2.8GW , a 300 megawatt increase from our Q2 estimate .

In Kentucky as I mentioned earlier.

We have also proposed a new tariff for large load customers requiring them to make a 15 year commitment to pay for at least 80% of the forecasted demand for the entire term.

These measures ensure that large load customers pay their fair share and that our existing customers in Pennsylvania, and Kentucky do not end up subsidizing the large load customers.

Speaker #6: If this potential growth continues to materialize , additional generation resources will be required as a result , we continue to monitor the progress of these projects very closely as our recent Cpcn only included about 1.8GW of new demand growth .

Vincent Sorgi: Both of those, I think, could be resolved by the end of the year. Probably more imminent for the budget, Reggie, maybe before the end of the year. That's kind of, I would say, the background on not a whole lot of movement with those two bills that you had referenced. Clearly, there's a lot of legislative support in the state to find ways to spur new generation, particularly in light of the data center load that we're seeing and just the two cost increases that we saw in the last two capacity auctions. Of course, our governor has been extremely engaged with PJM on this. It's great to see that there is focus on the issue. I would expect the next steps we would see, really, Shar, I would say more so in the beginning of the year, would be the debating of the issues.

We're also finding other creative ways to save customers money.

In Rhode Island, we have agreed to credit customers a total of nearly $155 million in January February and March of 2026, and 2027 when winter bills tend to be the highest.

Speaker #6: Our success in supporting this growth was once again recognized in September , when land and CU were named a top utility in economic development by site Selection Magazine .

This arrangement is net present value neutral for PPL.

But provides our customers with some much needed near term bill support with the average electricity customer receiving 20% to $25 a month.

Speaker #6: The 12th time they earned this distinction . Since 2012 , turning to slide nine , let's talk about affordability . One of our core commitments here at PPL .

And the average gas customer receiving 40% to $45 a month.

These credits were approved by the Rhode Island Division of public utilities and carriers or the division to satisfy a deferred tax hold harmless commitment tied to our acquisition of Rhode Island energy.

Speaker #6: We know that affordability matters to our customers and we're focused on keeping bills as low as possible while continuing to invest in reliability , resiliency and economic growth .

The division as a separate organization from the Rhode Island Public Utility Commission.

Speaker #6: Success begins with a culture of continuous improvement and innovation across our organization through disciplined cost management and smart investments , we have delivered on initiatives that keep us on track to reduce O&M costs by an average of 2.5% per year , from 2021 through 2026 .

And it was the division that approved our acquisition of Rhode Island Energy and it was the division that we made the hold harmless commitment too.

Vincent Sorgi: Sorry, of the legislation in the respective committees. Of course, you know they are still debating, I would say, within the legislature whether or not to permit regulated generation to be part of the solution. In terms of discussions with the IPPs or coming up with some middle ground with the IPPs, look, we've said all along that the goal here is to incentivize new generation and ultimately get steel in the ground to ensure that we have enough electricity to supply all this load that we're connecting, but also to stabilize capacity prices in the wholesale markets. If there's a way that we could do that where the utilities and the IPPs can agree to a solution, certainly, we would be open to that. Got it. Super helpful, Vince. See you in a couple of days. Thanks so much, guys.

The settlement is currently in front of the Rhode Island Public utility Commission for final implementation approval.

While we cannot predict the outcome of that proceeding given our collaborative approach in the divisions. Prior approval. We are optimistic about a positive outcome and look forward to delivering meaningful bill credits to our Rhode Island customers.

Speaker #6: These savings come from deploying smart grid technologies on our transmission and distribution networks , optimizing planned generation outages , and centralizing shared service functions to improve efficiency .

And in Pennsylvania, we're supporting legislation that would incentivize new generation build in the state helping to address resource adequacy needs and lower wholesale capacity prices.

Speaker #6: We're also incorporating new technologies across PPL Corp , including the use of artificial intelligence and all aspects of our business from predictive maintenance to customer service to back office functions , to deliver better results for our customers at lower costs .

Our joint venture with Blackstone infrastructure is another Prime example, as it intends to build new generation to serve datacenter load mitigating rising prices for customers and delivering value for shareholders.

Speaker #6: We expect these technologies will enable us to achieve the next wave of future cost efficiencies . At the same time , we're supporting robust data center growth while protecting our other customers and ensuring rates remain fair in Pennsylvania , connecting data centers to our grid lowers the transmission portion of the customer bill for the existing customer base , as these large , low customers will pay a larger portion of the fixed transmission costs .

Affordability isn't just a talking point.

Embedded in everything we do by.

By combining innovation disciplined cost control and strategic partnerships, we're ensuring that customers benefit from our reliable resilient and affordable energy future.

Vincent Sorgi: Our next question comes from Jeremy Tonnet with JPMorgan. Please go ahead. Hey, Jeremy. Hi. Good morning. Morning. Just wanted to echo your sentiment there on condolences to those impacted, and our prayers go out to them. Thank you. Just wanted to thank you. Start off maybe. As far as the pipeline in Pennsylvania, the 20.5 gigawatts there, I was wondering if you might be able to peel back a little bit more, I guess, what that looks like, sizing there, and really just wanted to get a better feeling for how you think the cadence could come together for formalizing parts of that pipeline here. Sure. In the appendix of the deck, we actually have the ramp rate for that 20.5 gigawatts. I'll get you the slide number in a second here. Slide number 25. That's the old chart that we used to show.

As you have heard countless times from US every dollar of O&M savings achieved can be reinvested is about $8 of capital without impacting customer bills. That's the power of disciplined cost management and operating efficiency, creating room for critical investments, while keeping affordability front and center.

Speaker #6: In addition , our electric service agreements in Pennsylvania require data center customers to pay a minimum amount , generally , 80% of their requested load forecast , even if they use less electricity until the costs incurred to extend service are fully recovered .

That concludes my business update I will now turn the call over to Joe for the financial update.

Speaker #6: And we've proposed a new tariff in our rate case to memorialize these terms within our tariff structure in Kentucky . As I mentioned earlier , we've also proposed a new tariff for large load customers , requiring them to make a 15 year commitment to pay for at least 80% of the forecasted demand for the entire term .

Thank you Vince and good morning, everyone, let's turn to slide 11.

Ppl's third quarter GAAP earnings were <unk> 43 per share compared to 29 per share in Q3 2024.

We recorded special items of <unk> <unk> per share during the third quarter of 2025, primarily due to it transformation costs and certain costs related to the integration of Rhode Island energy.

Speaker #6: These measures ensure that large load customers pay their fair share , and that our existing customers and Pennsylvania and Kentucky do not end up subsidizing the large load customers .

Adjusting for these special items.

Third quarter earnings from ongoing operations were <unk> 48 per share.

Speaker #6: We're also finding other creative ways to save customers money in Rhode Island . We've agreed to credit customers a total of nearly $155 million in January , February and March of 2026 and 2027 , when winter bills tend to be the highest .

Vincent Sorgi: What I did want to show this time was just how much we've seen that the ramp of each quarterly addition to the pipeline in advanced stages since Q1 of last year, starting with the 3 gigawatts. The amount of growth has been phenomenal. I go back to just the quality of the backbone of our transmission grid and our ability to connect these large loads very quickly, which provides speed to market for the hyperscalers, but also to be able to do it very cost-competitively. Given kind of where we are with our transmission grid, we feel very comfortable that we can connect this 20.5 gigawatts. Every one of these projects, Jeremy, does require some level of upgrade, and some are more than others.

<unk> per share increase compared to Q3 2024.

The increase was primarily due to several favorable factors included higher revenues from formula rates and rider recovery mechanisms as well as lower operating costs, which were partially offset by higher interest expense.

Speaker #6: This arrangement is net present value neutral for PPL , but provides our customers with some much needed near-term bill support . With the average electricity customer receiving 20 to $25 a month and the average gas customer receiving 40 to $45 a month , these credits were approved by the Rhode Island Division of Public Utilities and Carriers , or the Division to satisfy a deferred tax hold harmless commitment tied to our acquisition of Rhode Island Energy .

As Vince mentioned in his remarks with the strong quarterly results. We've narrowed our 2025 ongoing earnings forecast range and remain confident in achieving at least the midpoint of $1 81 per share.

During the third quarter, we took the opportunity to Derisk, a sizable portion of our equity financing needs as we fund our substantial growth.

Speaker #6: The division is a separate organization from the Rhode Island Public Utility Commission , and it was the division that approved our acquisition of Rhode Island Energy .

In August we entered into forward contracts to sell approximately $1 billion of equity.

We completed these transactions under the ATM, which minimized fees and enabled efficient execution.

Vincent Sorgi: Each time we make those upgrades, it kind of keeps us in front of the demand in terms of our starting point of having a strong grid. Even at the 20.5 gigawatts, to connect that or even to connect additional capacity beyond that is good because, as I mentioned, we have 70 gigawatts above what's in the 20 that's still in the queue. The 20 are those projects that either have an ESA signed or an LOA signed, which brings with it significant financial commitments on the part of the counterparties to either fund long lead-time purchase of materials or engineering and development work. Obviously, the ESAs go a step further. They provide us with.

This brings the total amount of equity executed under the forward agreements to approximately $1 4 billion of the $2 5 billion forecasted equity needs through 2028.

While we cannot predict the outcome of that proceeding given our collaborative approach in the divisions. Prior approval. We are optimistic about a positive outcome and look forward to delivering meaningful bill credits to our Rhode Island customers.

Approximately $400 million will settle at the end of this year.

With another 500 million to settle at the end of 2026.

And in Pennsylvania, we're supporting legislation that would incentivize new generation build in the state helping to address resource adequacy needs and lower wholesale capacity prices.

And the remaining 500 million settling in mid 2027.

Turning to the ongoing segment drivers for the third quarter on slide 12.

Okay talk to your segment results increased by <unk> <unk> per share compared to the third quarter of 2024.

Our joint venture with Blackstone infrastructure is another Prime example.

<unk> intends to build new generation to serve datacenter load mitigating rising prices for customers and delivering value for shareholders.

This increase was driven by higher sales volumes largely due to favorable weather in Q3 2025.

Affordability isn't just the talking point, it's embedded in everything we do by.

Lower operating costs and higher earnings from additional capital investments, partially offset by higher interest expense.

By combining innovation disciplined cost control and strategic partnerships, we're ensuring that customers benefit from our reliable resilient and affordable energy future.

Our Pennsylvania regulated segment results also increased by <unk> <unk> per share compared to the same period a year ago.

Vincent Sorgi: Commitments around credit support for 100% of the cost of construction for anything that would be socialized in the formula rate, as well as generally an 80% minimum load against their forecasted load. A lot in there, but we feel really good about at least the 20.5 in our pipeline, and that would likely continue to grow based on what we've been seeing. Got it. Thank you for that. I just wanted to pivot to the Blackstone JV, if we could. Just wondering, any incremental thoughts with regard to when we could see news flow, more developments on that side? Sure. Obviously, we don't have an announcement that we're making. Otherwise, I would have done that. I can assure you that there is a lot of activity going on between the PPL team and the Blackstone team. We're extremely focused with the hyperscalers, with other.

The increase was primarily driven by higher transmission revenue from additional capital investments and higher distribution rider recovery, partially offset by higher interest expense.

As you have heard countless times from US every dollar of O&M savings achieved can be reinvested is about $8 of capital without impacting customer bills. That's the power of disciplined cost management and operating efficiency, creating room for critical investments, while keeping affordability front and center.

Our Rhode Island segment results increased by <unk> <unk> per share compared to the same period a year ago.

Primary driver of this increase was lower operating costs.

That concludes my business update I will now turn the call over to Joe for the financial update.

Finally results of corporate and other increased by one seven per share compared to the prior period due to several factors that were not individually significant.

Thank you Vince and good morning, everyone, let's turn to slide 11.

Ppl's third quarter GAAP earnings were <unk> 43 per share compared to 29 per share in Q3 2024.

Pleased with our performance through three quarters of the year and remained well positioned to deliver on our commitments to shareowners in 2025 and beyond.

We recorded special items of <unk> <unk> per share during the third quarter of 2025, primarily due to it transformation costs and certain costs related to the integration of Rhode Island energy.

Our focus on providing real value to our customers underpins, our robust business plan and our confidence in our long term financial targets.

And we continue to make excellent progress on de risking that plan through constructive regulatory outcomes and financial discipline, while driving initiatives that can support future growth.

Adjusting for these special items.

Third quarter earnings from ongoing operations were <unk> 48 per share.

Vincent Sorgi: Data center developers, with landowners, pipeline companies, etc. While there's no announcement today, tons of activity, I would say, going on there. Hard to say timing-wise, Jeremy, when we would have an announcement there. As you can appreciate, these are very complex deals. They take a long time to negotiate to make sure that we're structuring an agreement that's got the proper risk profile for our customers and our shareholders, and ultimately is meeting the needs that we're trying to do with this JV. I will say, though, with the amount of new connections or new requests in the advanced stages, so up to this 20.5 gigawatts, we are starting to see a lot more interest, and the discussions are moving a lot more towards.

This concludes my prepared remarks, I'll now turn the call back over to Vince.

<unk> per share increase compared to Q3 2024.

Thank you Joe.

Greece was primarily due to several favorable factors included higher revenues from formula rates and rider recovery mechanisms as well as lower operating costs, which were partially offset by higher interest expense.

In closing PPL is delivering strong results today, and we're building a strong foundation for tomorrow.

We've narrowed our earnings guidance.

We remain confident in achieving at least the midpoint of that guidance supported by disciplined execution and a clear vision.

As Vince mentioned in his remarks with a strong quarterly results. We've narrowed our 2025 ongoing earnings forecast range and remain confident in achieving at least at the midpoint of $1 81 per share.

We're advancing our utility of the future strategy.

Vesting and infrastructure deploying technology and driving innovation, all while maintaining affordability for our customers.

During the third quarter, we took the opportunity to Derisk, a sizeable portion of our equity financing needs as we fund our substantial growth.

Ppl's disciplined execution and strategic investments coupled with our focus on innovation datacenter expansion and operational efficiency sets us apart in the utility sector and that focus creates value for both our customers and our shareholders alike. Thank.

In August we entered into forward contracts to sell approximately $1 billion of equity.

We completed these transactions under the ATM, which minimize fees and enabled efficient execution.

Thank you for your continued confidence in PPL in our team and with that operator, let's open it up for questions.

Vincent Sorgi: Data center companies wanting to shore up generation, not just shore up their interconnection on the transmission grid, which we've been talking about, as you know, for a while. I think one of the pluses and minuses of our grid is we've been able to connect customers very quickly to the transmission grid, and that has been their primary focus. They've been able to wait a little bit longer on worrying about the generation part of the equation. I think we're starting to see them shift to the gen part of the equation, and the JV, I think, is situated nicely to take advantage of that. Got it. That's very helpful. Just one last quick one, just to clarify if I could, with regards to Mill Creek 2, the O&M number you quoted before, if that was an annualized number or just wanted to get the context there.

It brings the total amount of equity executed under the forward agreements to approximately $1 4 billion of the $2 5 billion forecasted equity needs through 2028.

We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone you are using a speakerphone. Please pick up your handset before pressing the keys. If anytime. Your question has been addressed and you would like to withdraw the question. Please press Star then two.

Approximately 400 million will settle at the end of this year.

With another 500 million to settle at the end of 2026.

And the remaining 500 million settling in mid 2027.

This time, we will pause momentarily to assemble our roster.

Turning to the ongoing segment drivers for the third quarter on slide 12.

Now operator, while you are compiling the roster I just wanted to take a moment.

Our Kentucky segment results increased by <unk> <unk> per share compared to the third quarter of 2024.

Knowledge UBS plane crash that occurred yesterday in Louisville.

This increase was driven by higher sales volumes largely due to favorable weather in Q3 2025.

Our Hearts go out to the families of those who lost their lives and those who have been injured.

Fortunately our employees are all accounted for and safe.

Lower operating costs and higher earnings from additional capital investments, partially offset by higher interest expense.

Yesterday, we supported the emergency responders, we ended up the energizing transmission lines that were going into a nearby substation.

Vincent Sorgi: Yeah. Those are the total increases between now and 2030. So $30 million of incremental O&M over that time period and $40 million of incremental CapEx. Great. Thank you very much. Sure. Our next question comes from Paul Zimbardo with Jefferies. Please go ahead. Hey, Paul. Hi. Good morning, team. Thank you. The first one I wanted to ask about just after the Kentucky rate case stipulation, the Pennsylvania rate case filing, could you comment a little bit on the linearity of the growth rate in the plan? It just seems like with Kentucky stepping up in 2026, Pennsylvania stepping up in 2027, the growth would be a little bit more front-end loaded in the plan. I was curious what your perspectives are there. Thank you. Yeah. Paul, it's Joe. No, I don't necessarily think it's front-end loaded. Obviously, you're right on the timing of those.

Our Pennsylvania regulated segment results also increased by <unk> <unk> per share compared to the same period a year ago.

We ended up cutting off some nearby gas lines to ensure the safety of those first responders.

The increase was primarily driven by higher transmission revenue from additional capital investments and higher distribution rider recovery, partially offset by higher interest expense.

Impact to our customers was minimal, but we are working to get everyone back online, but to do so as safely as we can.

We also had team members embedded in our local operators center to assist as needed.

Our Rhode Island segment results increased by one cents per share compared to the same period a year ago.

And we remain committed to supporting the community and first responders any way that we can.

The primary driver of this increase with lower operating costs.

It is certainly a sad day for our entire Louisville community.

Finally results of corporate and other increased by one seven per share compared to the prior period due to several factors that were not individually significant we.

Operator, who has our first question.

Our first question comes from Shar <unk> with Wells Fargo. Please go ahead.

We are pleased with our performance through three quarters of the year and remained well positioned to deliver on our commitments to shareowners in 2025 and beyond.

Hey, guys. Good morning, good morning, good morning.

Our focus on providing real value to our customers underpins, our robust business plan and our confidence in our long term financial targets and.

Vince just on the Kentucky CPC Encase, obviously, you mentioned the tracking mechanism for Mill Creek to stay open cost and Mill Creek six were rejected the highlighted denied without prejudice.

And we continue to make excellent progress on Derisking that plan through constructive regulatory outcomes and financial discipline, while driving initiatives that can support future growth.

What information was missing for them to decide why the denial and any sort of near term EPS impact there we should be thinking about thanks.

Vincent Sorgi: Rate cases and when they're coming into the plan, we have significant capital investment that runs through the plan. We have the riders in the jurisdictions that will get recovery of that spend. No, I don't necessarily see it front-end loaded. Yeah, PA is coming in mid-year too. Okay, thank you. Paul, on the Kentucky load side, is there a good amount of megawatts to think about you would include in that new capital plan roll forward? Should we think about the full gigawatt? I know that's through 2032. Just any color you can provide there would be helpful, thank you. You're referencing the gigawatt above the 1.8 that was in the CPCN? Is that what you're—correct. Yes, the 2.8 versus the 1.8. Yes. Yeah, I mean, we continue to assess that additional load, Paul, and based on our conversations with.

This concludes my prepared remarks, I'll now turn the call back over to Vince.

Thank you Joe.

Sure sure so.

In closing PPL is delivering strong results today, and we're building a strong foundation for tomorrow.

Not concerned from an earnings perspective.

Per se I'll kind of take Mill Creek, two separate from Elk Creek six.

We've narrowed our earnings guidance.

We remain confident in achieving at least the midpoint of that guidance supported by disciplined execution and a clear vision.

So for Mill Creek six.

The commission did approve a a few DC treatment. So that project will be in construction through 2031, when it goes into service so really no earnings impact there.

We're advancing our utility of the future strategy.

Vesting and infrastructure deploying technology and driving innovation, all while maintaining affordability for our customers.

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The new mechanism would not have gone into effect until the in service dates. So we have plenty of time to address Mill Creek six and as you said they were.

Those mechanisms were designed without prejudice.

Not only do we have the ability to re file for those but the commission actually encouraged us to.

Thank you for your continued confidence in PPL in our team and with that operator, let's open it up for questions.

Refile those mechanisms in either a future proceeding or even the current open proceeding for the rate cases.

We will now begin the question and answer session to ask a question you May Press Star then one on your Touchtone phone. If you were using a speakerphone. Please pick up your handset before pressing the keys. If at any time. Your question has been addressed and you would like to withdraw. The question. Please press Star then two at.

Vincent Sorgi: Developers and others in the state that are driving that. We'll continue to assess the probability of that, and we'll make the determination of how much we would put in the plan. Really, what that would drive is additional generation investment beyond what we have, perhaps some smaller amounts on the T&D side, but really, the larger numbers would come from generation. We'll continue to look at that and assess the need as we're going through this planning process and future plan updates and IRPs. Yeah, Paul, I would just say the team is really keeping a very close eye on that pipeline. That 2.8 is a probability-weighted forecast. We're just keeping a very close eye on how and when those projects are materializing so that we can get in front of this additional generation need as soon as we would need to.

To which we are dealing with this week and hearings.

For our Mill Creek too.

We want to get that when addressed sooner obviously, because we are at.

Actively spending money.

A little bit this year, but going forward to enable us to continue to operate that plant beyond 2027.

This time, we will pause momentarily to assemble our roster.

Now operator, while you are compiling the roster I just wanted to take a moment.

And we really need to get recovery of any of that was cost before we would agree to continue to operate that plant beyond 2027.

This knowledge the UBS plane crash that occurred yesterday in Louisville.

Our Hearts go out to the families of those who lost their lives and those who have been injured.

With the inquiring about.

$30 million of additional O&M about $40 million of additional capex.

Fortunately our employees are all accounted for and safe.

Yesterday, we supported the emergency responders, we ended up the energizing transmission lines that were going into a nearby substation.

From now until 2030. In addition to what was filed in the base rate case request for Mill Creek too. So we would want to see recovery of that and so we update the testimony last Friday to address Mill Creek too and Thats part of the hearings this week so.

We ended up cutting off some nearby gas lines to ensure the safety of those first responders <unk>.

The impact to our customers was minimal, but we are working to get everyone back online, but to do so safely as we can.

Vincent Sorgi: I would say likely. If we determine we need additional gen, likely the battery project that we delayed might be the first project to come back into play. The team's really watching this, as I said, very closely so that we can stay in front of it. The battery is one that we can build very quickly and provide that peaking support that we might need, again, depending on the types of load that come in. No decision on it yet, but watching it very closely. Okay. Understood. Thank you very much. Our next question comes from Steve Fleischman with Wolfe Research. Please go ahead. Yeah. Hi. Good morning. Hi, Vince. The 11 gigawatts of publicly announced data centers, could you give us a little more color on the details of that? Just what those are.

As I said milkshake too.

We also had team members embedded in a little operator center to assist as needed and.

Resting that now Bell Creek, six well deal with that in a future proceeding.

And we remain committed to supporting the community and first responders any way that we can.

You asked what was missing but not sure that a whole lot was missing necessarily.

It is certainly a sad day for our entire Louisville community.

Although I think it's safe to assume that the commission felt it was.

Operator, who has our first question.

The <unk> proceeding was not the proper.

Our first question comes from Shar <unk> with Wells Fargo. Please go ahead.

Rina to deal with rate mechanisms that they would rather deal with that in a rate proceeding.

Hey, guys good morning.

Got it Okay, no thats perfect and then just on the resource adequacy topic in Pennsylvania, specifically Theres, obviously, two bill sitting at the House and Senate I think they will reconvene in November I guess thoughts there Vince and more importantly, Ken the wireless companies.

Good morning, good morning.

Just on the Kentucky CPC Encase. The obviously you mentioned the tracking mechanism for Mill Creek to stay open cost and Mill Creek. Six were rejected you highlighted denied without prejudice I guess, what information was missing for them to decide why the denial and any sort of near term EPS impact.

Michael Middle ground with the Ipp's may be around a long term resource.

Lucy agreement structure, that's also being proposed legislation versus this kind of push pull around rate basing generation. So I guess, how are discussions going and can you guys strike a deal there.

Are we should be thinking about thanks.

Sure sure so.

Not concerned from an earnings perspective.

Vincent Sorgi: I mean, obviously, we know talent that's going on with AWS, and we know the Homer City and stuff. Just, I mean, can you give us the pieces of that? Yeah. For confidentiality reasons, we don't provide who those hyperscalers or data centers are or where they're located. Obviously, that could have implications on other data center activity, so we're very careful not to do that, Steve. I would say, as we kind of think about the amount of investment needed to support those, it's about $800 million of capital for the 11.3 gigs and about $400 million of capital for the 5 gigs under construction. Just when you're defining these as publicly announced, what is the definition of that? Some of that is what was announced during the summit that we had in Pittsburgh, and then there have been other public announcements following that.

Per se all kind of.

Yes, sure. So maybe just broadly what's happening with the legislation right. So I.

Bell Creek, two separate from Elk Creek six.

So for Mill Creek six.

I think we need to see a couple of things before Youll Youll really see movement on.

The commission did approve a a few DC treatment. So that project will begin construction through 2031, when it goes into service so really no earnings impact there.

This proposed legislation, but really any meaningful movement of legislation in the first is just the state budget, obviously the budget impasse is negatively impacting.

Broader discussions around legislation I would I would throw <unk> into the mix as well that.

The new mechanism would not have gone into effect until the in service dates. So we have plenty of time to address Mill Creek six and as you said they were.

That seems to be a gating issue for energy policy discussions.

Those mechanisms were designed without prejudice.

Both of those I think could be resolved by the end of the year.

Not only do we have the ability to re file for those but the commission actually encouraged us to.

<unk>.

Probably more eminent for the budget Rajiv maybe.

Before the end of the year.

Refile those mechanisms in either a future proceeding or even the current open proceeding for the rate cases.

So that's kind of I would say the background on not a whole lot of movement with those two bills that you had referenced but clearly there is a lot of legislative support in the state to find ways to spur new generation.

To which we are dealing with this week and hearings.

Mill Creek too.

We want to get that when addressed sooner obviously, because we are actively spending money.

Particularly in light of the data center load that we're seeing and.

The two cost increases that we saw in the last two capacity auction of course, our governor has been extremely engaged with PJM on this so it's great to see that there is focus on the issue.

A little bit this year, but going forward to enable us to continue to operate that plant beyond 2027.

Vincent Sorgi: Some of the customers would have made, but those are, I think those are for them to discuss, not us. Yeah. Okay. Just this profile of the data center growth, how does that compare to what is in the kind of, whatever latest load forecast you gave to PJM? I don't know if they've been updated since the beginning of the year, but has at least your zone gone way up relative to what you expect forecasted previously? Yeah, the latest we have with PJM is about 16 gigawatts, Steve. Okay. I guess the customer savings that used to give a ratio of how much T&D rates maybe would be saved, customer reductions, could you give us some sense based on what—I don't know which number you want to use—what the customer savings are from sharing the transmission grid? Yeah. In the early.

And we really need to get recovery of any of that is cost before we would agree to continue to operate that plant beyond 2027.

I would expect the next steps, we would see really Shar I would say more so in the beginning of the year would be the debating of the issues.

Would be incurring about.

$30 million of additional O&M.

The legislation.

$40 million of additional Capex.

In the respective committees.

Bob.

Now until 2030. In addition to what was filed in the base rate case request for Mill Creek too. So we would want to see recovery of that and so we update the testimony last Friday to address Mill Creek too and Thats part of the hearings this week.

And of course, you know they are still debating I would say within the legislature, whether or not to permit.

Regulated generation to be part of the solution.

In terms of.

Discussions with the Ips are coming up with some middle ground with the IPP look.

Look we said all along that the goal here is to incentivize new generation and ultimately get steel in the ground.

As I said Milky too, we're addressing that now Bell Creek six we'll deal with that in a future proceeding.

You asked what was missing but not sure that a whole lot was missing necessarily.

To ensure that we have enough electricity to supply all of its slowed.

No I think it's safe to assume that the commission felt it was that.

We're connecting but also to a stabilized capacity prices in the wholesale markets.

That the CPC and proceeding was not the proper.

If there's a way that we can do that where the utilities and the ipp's can agree to a solution.

Arena to deal with rate mechanisms that they would rather deal with that in a rate proceeding.

Certainly we would be open to that.

Got it Okay, no thats perfect and then just on the resource adequacy topic in Pennsylvania, specifically Theres, obviously, two bill sitting at the House and Senate I think they will reconvene in November I guess thoughts there Vince and more importantly can sort of the wireless companies.

Got it Super helpful. Thanks.

<unk> seen a couple of days thanks, so much guys.

Okay.

Our next question comes from Jeremy Tonet with Jpmorgan. Please go ahead.

Vincent Sorgi: Pieces, it's about 10% savings on the transmission component per gig. That was about $3, but the more you add, that gets diluted a little bit. I don't know if Joe and Andy, maybe we can provide that. We'll provide that, Steve. There's still savings. Each time more gets added? Yes. Yes. Yeah. Okay. Okay. Great. Thank you. Our next question comes from Angie Storozynski with Seaport. Please go ahead. Thank you. I have no complaints about earnings. I just wanted to make it clear because I've been picking over the last couple of quarters, but nothing to pick on this time. My question—two questions. One is you mentioned that as the data center pipeline grows, the rule of thumb about how much transmission spending is needed for every gigawatt of load added no longer holds.

Like a middle ground with the IP piece may be around a long term resource.

Hey, Jeremy good morning.

Good morning, just want just wanted to echo your sentiment there on.

Adequacy agreement structure. That's also being proposed legislation versus this kind of push pull around rate basing generation. So I guess, how are discussions going and can you guys strike a deal there.

Condolences to those.

Impacted in our prayers go out to them.

Thanks, just wanted to thank you.

Start off maybe.

As far as the pipeline in Pennsylvania at the 25 Gigawatts. There I was wondering if you might be able to peel back a little bit more I guess, what that looks like sizes sizing there.

Yes, sure. So maybe just broadly what's happening with the legislation right. So.

I think we need to see a couple of things before you'll you'll really see movement on.

This proposed legislation, but really any meaningful movement of legislation in the first is just the state budget, obviously the budget impasse is negatively impacting.

Really just wanted to get a better feeling for how you think the cadence could come together for formalizing.

Parts of that pipeline here.

Broader discussions around legislation I would I would throw <unk> into the mix as well that.

Sure. So in the appendix of the deck, we actually have the ramp rate for that 25 gigawatts.

That seems to be a gating issue for energy policy discussions.

Got you the slide number in a second here.

Both of those I think could be resolved by the end of the year.

Slide number 25, so that's the old chart that we used to show what I, what I did want to show at this time we suggest.

Probably more eminent for the budget Rajiv maybe.

Before the end of the year.

How much we've seen that.

So that's kind of I would say the background on not a whole lot of movement with those two bills that you had referenced but clearly theres a lot of legislative support in the state to find ways to spur new generation.

The ramp up of each quarterly additions to the pipeline in advanced stages.

Vincent Sorgi: I just wanted you to give me a little bit more info on that. Secondly, on the joint venture with Blackstone, we're seeing a number of secondary gas plants in your zone changing hands. We'll see if any of them go to your joint venture. I'm just wondering if that is at all part of the plan to acquire existing sites and to expand them, or is this just a brand new build that you would consider only once you have secured long-term contracts? Sure. Maybe I'll take the second one first. On the JV with the gas plants, we created the JV, Angie, to really help deal with the resource adequacy concerns that we were seeing in PJM. Obviously, with our territory and PPL sitting right on top of Marcellus Shale, we—

Q1 of last year, starting with the three gigawatt. So the amount of growth has been has been phenomenal and again I go back to just the quality of the backbone of our transmission grid.

Particularly in light of the data center load that we're seeing and just.

And our ability to connect these large loads.

The two cost increases that we saw in the last two capacity auction of course, our governor has been extremely engaged with PJM on this so it's great to see that there is focus on the issue.

Very quickly, which provide speed to market for the hyper scaler, but also to be able to do it very cost competitively so given kind of where we are with.

I would I would expect the next steps, we would see really shar I would say more so in the beginning of the year would be the debating of the issues.

With our transmission grid, we feel very comfortable that we can connect is 25 gigawatts.

Every one of these projects Jeremy does require some level of upgrade and some are more than others.

The legislation.

In the respective committees.

And each time, we make those upgrades it kind of keeps us in front of the demand in terms of our starting point of having a strong grid. So even at the 25 gigawatts.

And of course, you know they are they are still debating I would say within the legislature, whether or not to permit.

Regulated generation to be part of the solution.

In terms of.

Discussions with the Ips are coming up with some middle ground with the ICP.

To connect that or even to connect additional capacity beyond that.

Look we've said all along that the goal here is to <unk>.

Which is good because as I mentioned, we have.

70, gigawatts above what's in the 'twenty, that's still in the queue, but the 'twenty are those projects that either have.

Vincent Sorgi: Felt and continue to believe that we can provide a very competitive solution to a data center that is looking to contract and basically procure generation. Buying existing assets does not necessarily support additional resource adequacy unless we can expand them like you described. However, there could be some benefit in buying existing generation if, for instance, it is an old asset that we need for five or six years until we can get the new asset up and running, and the hyperscaler wants to have an asset-backed deal. Maybe there is a scenario where it would make sense for us to buy existing gen, but that is not the core part of the strategy. I would not preclude it. Kind of my thoughts there. On the 50 to 150, what I would say on that is.

Incentivize new generation and ultimately get steel in the ground to ensure that we have enough electricity to supply all of its load that we're connecting but also to stabilized capacity prices in the wholesale markets.

And Esa signed or in LOI signed which brings with it.

Significant financial commitments.

If there's a way that we could do that where the utilities and the ipp's can agree to a solution.

On the part of the Counterparties to either fund.

Long lead time purchase of materials or engineering and development work.

Certainly we would be open to that.

Got it Super helpful. Thanks.

Obviously, the ESA go a step further they provide us with.

Seen a couple of days thanks, so much guys.

Okay.

Commitments around credit support for 100% of the cost of construction for anything that would be socialized in the formula rate as well as generally at 80% minimum load against their forecasted load. So.

Okay.

Our next question comes from Jeremy Tonet with J P. Morgan. Please go ahead.

Hi, Jeremy good morning.

Good morning, just want just wanted to echo your sentiment there on.

So a lot a lot in there, but we feel really good about at least the 25.

Condolences to those impacted and our prayers go out to them.

Thanks, just wanted to thank you.

And our pipeline that would likely continue to grow based on what we've been saying.

Start off maybe.

As far as the pipeline in Pennsylvania at the 25 Gigawatts. There I was wondering if you might be able to pay.

Got it thank you for that and just wanted to pivot to the Blackstone JV if it could just wondering any inc.

Peel back a little bit more I guess.

Vincent Sorgi: Look, generally, that $50 to 150 per gigawatt is a good rule of thumb. The only caution that we are providing with this update is, in our five-year CapEx plan or four- or five-year CapEx plan for transmission, some of the upgrades that we may have had in that plan are starting to overlap with the upgrades that would be required for a particular data center project. So the $50 to 150 to serve the data center may still hold, but that may not be incremental to what's in the plan. Does that make sense? Sure, it does. Okay, thank you. Well, our next question comes from Anthony Crowdell with Mizuho. Please go ahead. Hey, good morning, team. I just have one quick follow-up, I guess. Appreciate the update. You mentioned the growth in Kentucky and Pennsylvania is quite impressive. Just the company has done a great job.

What that looks like sizes sizing there.

Incremental thoughts with regard to when we could see.

Really just wanted to get a better feeling for how you think the cadence could come together for formalizing.

News flow more developments on that side.

Parts of that pipeline here.

Sure. So obviously, we don't have an announcement that were making otherwise I would have I would have done that but I can.

Sure. So in the appendix of the deck, we actually have the ramp rate for that 25 gigawatts.

I assure you that there is a lot of activity going on between the <unk> team and the Blackstone team, we're extremely focused with.

Get you the slide number in a second here.

Slide number 25, so that's the old chart that we used to show what I, what I did want to show at this time we suggest.

With the hyperscale or with other.

Data center developers with landowners pipeline companies et cetera. So.

How much we see that the.

While there is no announcement today tons of activity I would say going on there.

The ramp up of each quarterly addition to the pipeline in advanced stages.

Hard to say timing wise, Jeremy when we would have an announcement there as you can appreciate these are very complex deals. They take a long time to negotiate to make sure that we're <unk>.

Q1 of last year, starting with the three gigawatt.

The amount of growth has been has been phenomenal and again I go back to just the quality of the backbone of our transmission grid.

And our ability to connect these large loads.

Structuring an agreement that's got the proper risk profile for our customers and our shareholders and ultimately is meeting the needs that we're trying to do with this with this JV I will say, though with the.

Very quickly, which provide speed to market for the hyper scaler, but also to be able to do it very cost competitively so given kind of where we are with.

Amount of.

With our transmission grid, we feel very comfortable that we can connect those 20 gigawatts.

New connections or new requests in the advanced stages, so up to this $20 five gigawatt.

Vincent Sorgi: In the regulatory arena as we see more and more data centers connecting, is there a concern of maybe an unhealthy revenue concentration that potentially could offset the solid regulatory balance you guys have achieved over the past several years? It just looks like more and more load is coming from one sector. Wondering if that could create an unhealthy regulatory balance going forward. Yeah. Look, I think that's a really good question. I don't necessarily think that. We're feeling concerned about an overconcentration of risk to the data centers because of the protections that we're building into the tariff structures and the ESAs that folks are signing for these large loads. Really, I think the issue becomes, Anthony, you build all this stuff, it's in rate base, and then for whatever reason, the customers aren't using as much power, and those costs are.

Every one of these projects Jeremy does require some level of upgrade and some are more than others.

We are starting to see a lot more interest.

And the discussions are moving a lot more towards.

And each time, we make those upgrades it kind of keeps us in front of the demand in terms of our starting point of having a strong grid. So even at the 25 gigawatts.

Data center companies wanting to shore up generation not just sure up their interconnection on the transmission grid, which we've been talking about as you know for a while.

One of the.

The pluses and minuses of our grid is we've been able to connect customers very quickly to the transmission grid and that has been their primary focus.

Connect that or even to connect additional capacity beyond that.

Which is good because as I mentioned, we have <unk>.

And they've been able to wait a little bit longer on worrying about the generation part of the equation I think we are starting to see them shift to the gen part of the equation and the JV.

70, gigawatts above what's in the 'twenty, that's still in the queue, but the 'twenty are those projects that either have.

And Esa signed or in LOI signed which brings with it.

I think it's situated nicely to take advantage of that.

Got it that's very helpful and just one last quick one just to clarify if I could with regards to mill Creek to the O&M number you quoted before if that was an annualized number or just wanted to get the context there.

Significant financial commitments.

On the part of the Counterparties to either fund.

Long lead time purchase of materials or engineering and development work.

No those are the total increases between now and 2030, so $30 million of incremental O&M over that time period and $40 million of incremental capex.

Obviously, the ESA go a step further they provide us with.

Vincent Sorgi: Being defrayed to our existing customer base. We've built the protections in for that. I would say in Pennsylvania, the PUC is proposing their large load tariff this week. I think what we have in our proposed tariff in the rate case, those protections will be in that tariff, and that tariff may go even further than what we have proposed. Overall, I think as long as we have these proper protections in place, not overly concerned about concentration risk. The other broader, I would say, aspect to this is certainly in the early stages, which we are. I don't see these hyperscalers not needing the amount of power that they're signing up for. In fact, they're probably going to need even more. As you think about the advancements in the chips themselves, those advancements basically enable more compute power in the same physical.

Commitments around credit support for 100% of the cost of construction for anything that would be socialized in the formula rate as well as generally get 80% minimum load against their forecasted loans. So.

Great. Thank you very much.

Sure.

Our next question comes from Paul Zimbardo with Jefferies. Please go ahead.

So a lot a lot in there, but we feel really good about at least the 25.

Hey, Paul.

Hi, Hi, good morning team. Thank you.

And our pipeline that would likely continue to grow based on what we've been saying.

The first one I wanted to ask about just after the Kentucky rate case stipulation in the Pennsylvania rate case filing could.

Got it thank you for that and just wanted to pivot to the Blackstone JV. If he could just wondering any inc.

Could you comment a little bit on the linearity of the growth rate in the plan.

Incremental thoughts with regards to when we could see.

It seems like with Kentucky stepping up in 2006, Pennsylvania stepping up from 27 growth would be a little bit more front end loaded in the plants I was curious what your perspectives are there. Thank you.

News flow more developments on that side.

Sure. So obviously, we don't have an announcement that were making otherwise I would have I would have done that but I can.

I assure you that there is a lot of activity going on between the <unk> team and the Blackstone team, we're extremely focused with.

Yes, Paul it's Joe.

I don't necessarily think it's front end loaded.

Obviously youre right on the timing of those.

Our rate cases, and when they are coming into the plan, but we have <unk>.

With the hyperscale or with other.

Data center developers with landowners pipeline companies et cetera. So.

<unk> capital investment that runs through the plant.

We have the riders in the jurisdictions that we will get recovery of that spend so.

Vincent Sorgi: Space that the prior generation was. Well, compute power equals electricity. If anything, I think we're going to need to continue to support these data centers with additional power needs, not less. Great. Just one follow-up. I'm not sure if you were leading this way, and that's my question. I don't know if it was to Angie's question or to the person before. You talked about maybe the haircut thing of the load forecast when the utilities submitted to PJM. PJM haircuts even more. You're seeing greater load growth in your areas. Are you trying to highlight that the potential that the region PPL serves is a candidate for breaking out in the next auction, or that's not what you were trying to say? Just overall, the resource adequacy has an issue. Yeah. I was not suggesting that the PL zone would necessarily break out.

While there is no announcement today tons of activity I would say going on there.

No I don't necessarily see it front end loaded ph.

<unk> is coming in mid year.

Hard to say timing wise, Jeremy when we would have an announcement there as you can appreciate these are very complex deals. They take a long time to negotiate to make sure that we're <unk>.

Okay. Okay.

Okay. Thank you.

On the Kentucky load side.

Is there a good amount of megawatts to think about you would include in that new capital plan roll forward should we think about the full gigawatt I know thats through 2032, now, but just any color you could provide there would be helpful. Thank you.

Structuring an agreement that's got the proper risk profile for our customers and our shareholders and ultimately is meeting the needs that we're trying to do with this with this JV I will say, though with the.

Amount of.

Youre referencing the gigawatt above the $1 eight there was in the <unk>.

New connections or new requests in the advanced stages, so up to this 25 gigawatt.

Correct, Yeah, the two eight versus the $1 eight.

We are starting to see a lot more interest.

Yes, yes, yes, I mean, we continue to assess that.

And the discussions are moving a lot more towards.

Additional load Paul and based on our conversations with.

Data center companies wanting to shore up generation not just sure up their interconnection on the transmission grid, which we've been talking about as you know for a while.

Developers and others in the state that are that are driving that and so we will continue to assess the probability of that in.

One of the.

The pluses and minuses of our grid is we've been able to connect.

Make the determination of how much we would put in the plan really the.

Vincent Sorgi: The load forecasts that we provide PJM are the projects that we're including in that are consistent with the projects that we're including in the 20.5 gigawatts. There are just timing differences between when we update the intervals on when we're updating PJM and when we're having our investor updates on our quarterly calls. The last time we updated was about, like I said, 16 gigawatts, but that would represent those projects at that time that we had ESAs and LOAs signed by customers. The next update for PJM would be this 20.5, and then PJM would go through their process to haircut that 20, 30%, whatever they deem appropriate. No, I was not. Great. Thank you. My question. Yeah. Sure. This concludes the question and answer session.

Customers very quickly to the transmission grid and that has been their primary focus.

That would drive us additional generation investment beyond what we have perhaps some smaller amounts on the T&D side, but really the larger numbers would come from generation. So we'll continue to look at that and assessed the need as we're going through.

And they've been able to wait a little bit longer on worrying about the generation part of the equation I think we're starting to see them shift to the gen part of the equation and the JV.

I think it's situated nicely to take advantage of that.

This planning process and future future plan updates in IRR.

Got it that's very helpful and just one last quick one just to clarify if I could with regards to mill Creek to the O&M number you quoted before if that was an annualized number or just wanted to get the context there.

Yes, Paul I would just say the team is really keeping a very close eye on that pipeline.

So that $2 eight it's a probability weighted forecast. So we're just keeping a very close eye on.

No those are the total increases between now and 2030, so $30 million of incremental O&M over that time period and $40 million of incremental capex.

How and when those projects are materializing, so that we can get in front of.

Great. Thank you very much.

This additional generation need as soon as we would need to.

Sure.

I would say likely.

Our next question comes from Paul Zimbardo with Jefferies. Please go ahead.

If we determine we need additional jan that likely the battery project that we delay it might be the first project to come back into play but.

Hey, Paul.

Vincent Sorgi: I would like to turn the conference back over to Vince Sorgi, President and CEO, for any closing remarks. Yeah. Thanks for joining us this quarter. Again, continue to execute. Third quarter strong results set us up really nicely for finishing strong in 2025. Look forward to providing our full update on the year-end call. Of course, we will see many, if not all of you, next week at the EI Financial Conference. Thanks, everybody. The conference is now concluded. You may now disconnect.

Okay.

Hi, Hi, good morning team. Thank you.

But the teams really are watching this as I said very closely so that we can stay in front of it but the battery is one that we can build very quickly and provide that peaking support that we might need.

The first one I wanted to ask about just after the Kentucky rate case stipulation, the Pennsylvania rate case filing could.

Could you comment a little bit on the linearity of the growth rate in the plan.

Again, depending on the types of loans that come in.

So no decision on it yet but watching it very closely.

It seems like with Kentucky stepping up in 2006, Pennsylvania stepping up from 27.

Okay understood. Thank you very much.

It'd be a little bit more front end loaded in the plants I was curious what your perspectives are there. Thank you.

Yeah.

Yes, Paul it's Joe.

Our next question comes from Steve Fleishman with Wolfe Research. Please go ahead.

I don't necessarily think it's front end loaded.

Obviously youre right on the timing of those rate cases, and when they are coming into the plan, but we have significant capital investment that runs through the plant.

Yes, hi, good morning.

Hi, Dan.

The 11 Gigawatts of publicly announced data centers could you give us a little more color on the details of that.

We have the riders and the jurisdictions that we will get recovery of that spend so no.

Just.

No I don't necessarily see it front end loaded ph.

Those are obviously, we know talents Susquehanna.

<unk> is coming in mid year.

Okay.

AWS in Reno.

Okay.

The Homer city and stuff, but just I mean is there can.

And on the Kentucky load.

Can you give us the pieces of that.

Good.

Yes, so for confidentiality reasons, we don't provide.

Is there a good amount of megawatts to think about you would include in that new capital plan roll forward should we think about the four gigawatt.

Those.

Hyperscale data centers are or where they are located obviously there that could have implications on on other data center activity. So we're very careful not to do that Steve.

I know thats through 2032, now, but just any color you can provide there would be helpful. Thank you.

Yeah.

You are referencing that gigawatt above the $1 eight there was in the <unk>.

I would say.

As we kind of think about the amount of investment needed to to support those its about $800 million of capital for the 11, three gigs and about $400 million of capital for the five cakes under construction.

Correct, Yeah, the two eight versus the one yes.

Yes, yes, yes, I mean, we continue to assess that.

Additional load Paul and based on our conversations with.

So just when you're defining these as publicly announced like is that.

Developers and others in the state that are that are driving that and so we will continue to assess the probability of that in.

What is the definition of that.

Make the determination of how much we would put in the plan really the.

So some of that is what was announced during the.

Summit that we had in Pittsburgh and then there have been other public announcements following that.

That would drive us additional generation investment beyond what we have perhaps some smaller amounts on the T&D side, but really the larger numbers would come from generation. So we'll continue to look at that and assessed the need as we're going through.

Some of the customers.

<unk> would have made those are.

I think those are for them to discuss not.

This planning process and future future plan updates in <unk>.

Yes, okay.

Just this profile of the data center growth, how does that compare to.

Yes, Paul I would just say the team is really keeping a very close eye on that pipeline.

What is in the <unk>.

Got it.

So that $2 eight it's a probability weighted forecast. So we're just keeping a very close eye on.

Whatever latest both forecast you gave to PJM.

I don't know if they have been updated since beginning of the year, but is it.

How and when those projects are materializing, so that we can get in front of.

Because this has your at least your zone gone way up relative to what you had.

This additional generation need as soon as we would need to I would say likely.

Forecasted previously.

Yes, so the latest we have with PJM.

It's about 16 Gigawatts statements.

If we determined we need additional Jan that likely the battery project that we delay might be the first project to come back into play but.

Okay.

And I guess the customer savings that are used to give a ratio of how much T&D rates.

But the teams really are watching this as I said very closely so that we can stay in front of it but the battery is one that we can build very quickly and provide that peaking support that we might need.

Maybe would be saved.

Customer reductions could you give us some sense based on what I.

Again, depending on the types of loans that come in.

I don't know, which number you want to use like what the customer savings are.

So no decision on it yet but watching it very closely.

From sharing the transmission grid.

Okay understood. Thank you very much.

Yes.

Yes.

Our next question comes from Steve Fleishman with Wolfe Research. Please go ahead.

In the early pieces.

10% savings on the transmission component per gig that was about three box, but the more you add that gets diluted a little bit.

Yes, hi, good morning.

Hi, Dan.

The 11 Gigawatts of publicly announced data centers could you give us a little more color on the details of that.

<unk>.

Joe and Andy maybe you can provide that will provide that but theres still savings theres still savings each time mortgage yes.

Just.

Those are I mean, we obviously, we know talents Susquehanna.

Yes, yes, okay.

The AWS in Reno.

Okay, great. Thank you.

Homer city and stuff, but just I mean is there can you give us the pieces of that.

Yeah, so for confidentiality reasons, we don't provide.

Our next question comes from Angie <unk> with Seaport. Please go ahead.

Who knows.

Hyperscale or as our data centers are or where they are located obviously there that could have implications on.

Thank you I have no complaints I have no complaints about earnings.

So I just wanted to make clear make it clear because they've been picking over the last couple of quarters, but nothing to pick on this time.

Other data center activity. So we're very careful not to do that Steve I.

I would say.

So.

As we kind of think about the amount of investment needed to to support those its about $800 million of capital for the 11, three gigs and about $400 million of capital for the five to six under construction.

My question. So two questions. One is you mentioned that.

The data center pipeline grows the rule of thumb about how much transmission spending is needed.

Gigawatt of load at it no longer holds.

So just when you're defining these as publicly announced.

And I just wanted to just give me a little bit more info on that and then secondly on the.

Ed.

What is the definition of that.

Joint venture with Blackstone So.

Yeah.

We're seeing a number of <unk>.

So some of that is what was announced during the.

Secondary gas plans in your zone changing hands.

Summit that we had in Pittsburgh and then there have been other public announcements following that.

And again, we'll see.

If any of them go.

Two.

<unk>.

Joint venture and just wondering.

That sounds.

Some of the customers.

If that is that all part of the plan to acquire existing sites and to expand to them or is this just a brand new.

That would have made those are.

I think those are for them to discuss not us.

Yes, Okay and.

Do you believe that you would consider only once you have secured long term contracts.

This profile of the data center growth, how does that compare to.

Sure.

What is in the <unk>.

Maybe I'll take the second one first so on the.

Got it.

Whatever latest forecast you gave to PJM.

The JV with the gas plants.

I don't know if they have been updated since beginning of the year, but is it.

We created the JV Angie to really.

Has it has your at least your zone gone way up relative to what you'd expect forecasted previously.

To help deal with the resource adequacy concerns that we were seeing in PJM.

Yes, so the latest we have with PJM.

And obviously with our.

Territory and <unk>.

It's about 16 Gigawatts Steve.

<unk> sitting right on top of Marcellus shale.

Okay.

We felt and continue to believe that we can provide a very competitive solution to a data center.

And I guess the customer savings that are used to give a ratio of how much T&D rates.

Lucky too.

Contract basically procure generation.

Maybe would be saved.

Customer reductions could you give us some sense based on what I.

Buying existing assets.

Don't necessarily.

I don't know, which number you wanted use like what the customer savings are.

Support additional resource adequacy, unless we can expand them like you described however, there could be some benefit in.

From sharing the transmission grid.

Yeah.

And procure and buying existing generation if.

Yeah.

For instance, it's an old asset that we need for five or six years until we can get the new asset up and running and the data and the Hyperscale are.

So.

In the early pieces, it's about.

10% savings on the transmission components are.

<unk> wants to have an asset back deal maybe there is there is a scenario where it would make sense.

That was about three box, but the more you add that gets diluted a little bit.

For us to buy existing gen, but thats not the core part of our strategy.

Jo Anne maybe you can provide that will provide that but theres still savings there still savings each time more gets added yes, yes.

But I wouldn't preclude it.

So kind of my thoughts there and then on the.

Yes, yes, okay.

On the 50 to 150.

Okay, great. Thank you.

So what I would say on that is is look generally that 50 to $1 50 per gigawatt.

Our next question comes from Angie stores and ski with Seaport. Please go ahead.

A good rule of thumb the only the only.

Caution that we are providing with this update is.

Thank you I have no complaints I have no complaints about earnings.

In our five year Capex plan are four or five year Capex plan for transmission.

So I just wanted to make clear sneak it clear because they've been taking over the last couple of quarters, but nothing to pick on this time.

Some of the upgrades that we may have had in that plan.

So.

My question. So two questions. One is you mentioned that.

Our starting to overlap with the upgrades that would be required for a particular data center projects.

The datacenter pipeline grows the rule of thumb about how much.

The 50 to 150 to serve the data center may still hold but that may not be incremental to what's in the plan does that makes sense.

Spending is needed for every gigawatt of load at it no longer holds.

And I just wanted to just to give me a little bit more on that and then secondly on the joint.

Sure It does.

Joining venture with Blackstone so.

Okay.

Thank you.

We're seeing a number of.

Well.

Secondary gas plans in your zone changing hands.

Our next question comes from Anthony <unk> with Mizuho. Please go ahead.

And again, we'll see if.

If any of them go to <unk>.

Hey, good morning team I just have one quick follow up I guess.

<unk> joint venture and just wondering.

If that is that all part of the plan to acquire existing sites and to expand them or is this just a brand new.

I appreciate the update you mentioned the growth in Kentucky and Pennsylvania.

Quite impressive.

New build that you would consider only once you have secured long term contracts.

The company has done a great job.

In the regulatory arena as as we see more and more data as that is connecting is there a concern of maybe an unhealthy revenue concentration that potentially could offset the solid regulatory balance you guys have achieved over the past several years, just it looks like more and more load is coming from one sector.

Sure.

Maybe I'll take the second one first so on the.

The JV with the gas plants.

We created the JV Angie to really.

I'm wondering if that could create an unhealthy regulatory balance going forward.

Help deal with the resource adequacy concerns that we were seeing in PJM.

Yes look I think that's a really good question I don't I don't necessarily think that.

And obviously with our.

Territory and PPL.

<unk> sitting right on top of Marcellus shale we.

We're feeling concerned about a.

We felt and continue to believe that we can provide a very competitive solution to a data center that is lucky too.

And over concentration of risks to the data centers because of the protections that we are building into the.

The tariff structures and the Esa that folks are signing for these large load so.

Contract and basically procure generation.

Buying existing assets.

Really I think the issue becomes Anthony.

Don't necessarily.

Support additional resource adequacy, unless we can expand that like you've described however, there could be some benefit in.

All of this stuff it's in rate base and then.

For whatever reason the customers aren't using as much power and those costs are being defrayed to our existing customer base and so we built the protections in for that I would say in Pennsylvania.

And procure in buying existing generation if.

For instance, it's an old asset that we need for five or six years until we can get the new asset up and running and the data and the hyperscale or.

The PUC is proposing theyre large low tariff.

Wants to have an asset back deal maybe there is there is a scenario where it would make sense.

This week and I think what we have in our proposed tariff in the rate case.

For us to buy existing gen, but thats not the core part of the strategy.

Those protections will be in that tariff and that tariff may go even further than what we have proposed.

But I wouldn't preclude it.

So kind of my thoughts there and then on the.

On the 50 to $1 50.

So overall I think as long as we have these proper protections in place.

So what I would say on that is is look generally that 50 to $1 50 per gigawatt.

Not overly concerned about concentration risk.

The other broader I would say aspect to this is Seth.

Is a good rule of thumb the only the only.

Certainly in the early stages, which we are.

Caution that we are providing with this update is.

<unk>.

I don't see these hyperscale or not meeting the amount of power that they are signing up for in fact, they are probably going to need even more so as you think about the advancements in the.

In our five year Capex plan are four to five year Capex plan for transmission.

Some of the upgrades that we may have had in that plan.

The chips themselves.

Our starting to overlap with the upgrades that would be required for a particular data center projects. So the 50 to 150 to serve the data center.

Those advancements.

Basically enable more compute power in the same physical store.

Base that the prior generation, what's while compute power equals electricity so.

Ill hold but that may not be incremental to what's in the plan because that makes sense.

If anything I think we're going to need to continue to support these data centers.

Sure.

Okay.

Thank you.

With additional power needs not less.

Well.

Great and then just one follow up.

Our next question comes from Anthony <unk> with Mizuho. Please go ahead.

I'm not sure if you were leading this way and that's my question.

It was andrew's question or to the person before but you talked about maybe.

Hey, good morning team I just have one quick follow up I guess.

The heritage of the load forecast when utilities submitted to PJM PJM.

I appreciate the update you mentioned the growth in Kentucky and Pennsylvania.

Haircuts even more.

Quite impressive.

Youre seeing greater load growth in your areas.

Just the company has done a great job.

In the regulatory arena as as we see more and more data center connecting is there a concern of maybe an unhealthy revenue concentration that potentially could offset the solid regulatory balance you guys have achieved over the past several years, just it looks like more and more load is coming from one sector.

Are you trying to highlight that the potential that the regions.

PJM PPL serves.

Is it a candidate for breaking out in the next auction.

Or that's not what you were trying to say just overall the resource adequacy has an issue.

I'm wondering if that could create an unhealthy regulatory balance going forward.

Yeah, I was not suggesting that the <unk> zone with necessarily breakout.

Yeah look I think that's a really good question I don't I don't necessarily think that.

And so the load forecast that we provide PJM.

We're feeling concerned about a.

Are the projects that we're including in that are consistent with.

And over concentration of risks to the data centers because of the protections that we are building into the.

The projects that we're including in the $20 five gigawatt.

There are just timing differences between.

The tariff structures and the Esa that folks are signing for these large load so.

When we update the intervals on when we're updating.

PJM and when we're having our investor updates on our quarterly call. So the last time, we updated was about like I said 16, gigawatts, but that would represent.

Really I think the issue becomes Anthony.

All this stuff it's in rate base and then.

So for whatever reason the customers aren't using as much power and those costs are being defrayed to our existing customer base. So we built the protections in for that I would say in Pennsylvania.

Those projects at that time that we had <unk> and LOE and signed by customers. So the next update for PJM would be this.

25, and that PJM would go through their process.

Haircut that 2030% whatever the whatever they deem appropriate.

The PUC is proposing theyre large low tariff.

Great. Thanks for taking my question.

This week and I think what we have in our proposed tariff in the rate case.

Yes sure.

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

Those protections will be in that tariff and that tariff may go even further than what we have proposed.

So overall I think as long as we have these proper protections in place.

Thanks for joining us.

This quarter.

Again continue to execute third quarter.

Not overly concerned about concentration risk.

That the other broader I would say aspect to this is.

Strong results set us up really nicely for.

Finishing strong in 2025.

Certainly in the early stages, which we are.

Look forward to our providing our full update on the year end call and of course, we will see many if not all of you.

<unk>.

I don't see these hyperscale or not meeting the amount of power that they are signing up for in fact, they're probably going to need even more so as you think about the advancements in the.

Next week at the EI financial conference. Thanks, everybody.

The chips themselves.

The conference has now concluded you may now disconnect.

Those advancements.

Basically enable more compute power in the same physical space that the prior generation was while compute power equals electricity. So.

So if anything I think we're going to need to continue.

To support these data centers.

With additional power needs not less.

Great and then just one follow up.

I'm not sure if you were leading this way and that's my question.

It was andrew's question or to the person before but you talked about maybe.

The hair cutting of the load forecast when utilities submitted to PJM PJM.

Haircuts even more.

Youre seeing greater load growth in your areas.

Are you trying to highlight that the.

Potential that the regions.

PJM PPL serves.

Is it a candidate for breaking out in the next auction.

Or that's not what you were trying to say just overall the resource adequacy has an issue.

Yes.

Suggesting that the <unk> zone would necessarily breakout.

And so the load forecast that we provided PJM.

Are the projects that we're including in that are consistent with.

The projects that we're including in the 25 Gigawatts.

There are just timing differences between.

When we update the intervals on when we're updating.

PJM and when we're having our investor updates on our quarterly call. So the last time, we updated was about like I said 16, gigawatts, but that would represent.

Those projects at that time that we had <unk> in L. O N signed by customers. So the next update for PJM would be this.

25, and that PJM would go through their process.

Haircut that 2030% whatever the whatever they deem appropriate.

Great. Thanks for taking my questions.

Yes sure.

Okay.

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

Yes, thanks for joining us.

This quarter.

Again continue to execute third quarter.

Strong results sets us up really nicely for.

Finishing strong in 2025.

Look forward to our providing our full update on the year end call and of course, we will see many if not all of you.

Next week at the EI Financial conference.

Everybody.

The conference has now concluded you may now disconnect.