Q2 2026 PPL Corp Earnings Call

August 7, 2026

Speaker #1: Good day . And welcome to the PPL Corporation . Conference call on second quarter 2026 financial results . All participants will be in listen only mode .

Operator: Good day. Welcome to the PPL Corporation's conference call on Q2 2026 financial results. All participants will be in listen-only mode. 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 touch-tone phone. To withdraw your question, please press star then two. Please note that this event is being recorded. I would now like to turn the conference over to Andy Ludwig, Vice President of Investor Relations. Please go ahead.

Speaker #1: 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.

Speaker #1: To ask a question, you may press star, then one on a touchtone phone. To withdraw your question, please press star, then two.

Speaker #1: Please note that this event is being recorded I'd now like to turn the conference over to Andy Ludwig , vice president of Investor Relations .

Speaker #1: Please go ahead .

Speaker #2: Good morning , and thank you for joining PPL Corporation's conference call on second quarter 2020 financial results . We provided presentation materials on the investor section of our website this morning .

Andy Ludwig: Good morning. Thank you for joining PPL Corporation's conference call on Q2 2026 financial results. We've provided presentation materials on the investor section of our website. This morning, you will hear from Vince Sorgi, PPL President and CEO, and Joe Bergstein, Chief Financial Officer. We'll conclude with a Q&A session following our prepared remarks. Before we get started, please turn to slide two for our cautionary statement. Today's presentation contains forward-looking statements subject to risks and uncertainties. Actual results may differ materially. Please refer to our SEC filings and the appendix for additional information. We will also refer to non-GAAP measures, including earnings from ongoing operations. Reconciliations to the corresponding GAAP measures are provided in the appendix. I'll now turn the call over to Vince.

Speaker #2: You will hear from Vincent Sorgi PPL , president and CEO , and Joseph Bergstein Chief Financial Officer . We'll conclude with a Q and A session following our prepared remarks .

Speaker #2: Before we get started, please turn to slide two for our cautionary statement. Today's presentation contains forward-looking statements, subject to risks and uncertainties.

Speaker #2: Actual results may differ materially Please refer to our SEC filings and the appendix for additional information . We will also refer to non-GAAP measures , including earnings from ongoing operations .

Speaker #2: Reconciliations to the corresponding GAAP measures are provided in the appendix . I'll now turn the call over to Vince Thank you , Andy , and good morning , everyone Let's begin on slide four with an overview of our second quarter performance .

Vince Sorgi: Thank you, Andy, good morning, everyone. Let's begin on slide four with an overview of our Q2 performance. Q2 was another quarter of disciplined execution, supporting our 2026 commitments while strengthening confidence in our long-term outlook. Today, we reported ongoing earnings of $0.33 per share. Based on our results through the H1 of the year and our expectations for the remainder of 2026, we are reaffirming our ongoing earnings forecast range of $1.90 to $1.98 per share, with a midpoint of $1.94 per share. We expect stronger earnings growth in the H2 of the year, supported by rate case outcomes in both Pennsylvania and Rhode Island, with Pennsylvania rates effective 1 July and Rhode Island rates expected to be effective 1 September.

Speaker #2: Q2 was another quarter of disciplined execution, supporting our 2026 commitments while strengthening confidence in our long-term outlook. Today, we reported ongoing earnings of $0.33 per share based on our results through the first half of the year and our expectations for the remainder of 2026.

Speaker #2: We are reaffirming our ongoing earnings forecast range of $1.90 to $1.98 per share . With a midpoint of $1.94 per share We expect stronger earnings growth in the second half of the year , supported by rate case outcomes in both Pennsylvania and Rhode Island , with Pennsylvania rates effective July 1st , and Rhode Island rates expected to be effective September 1st .

Speaker #2: We are on pace to deploy approximately $5 billion of capital investments in 2026 to support the delivery of safe, reliable, and affordable energy service.

Vince Sorgi: We are on pace to deploy approximately $5 billion of capital investments in 2026 to support the delivery of safe, reliable, and affordable energy service. As our investment plan has expanded, our teams have continued to demonstrate the ability to execute these programs safely, efficiently, and on schedule. Longer term, we continue to project $23 billion of capital investment needs through 2029, supporting average annual rate base growth of over 10%. We also reaffirmed our long-term financial targets, including 6% to 8% annual EPS growth through at least 2029, with compound annual growth expected to be near the top end of that range, 4% to 6% annual dividend growth, and FFO to debt of 16% to 18%. Importantly, these targets exclude any contribution from Invidium Energy, our joint venture with Blackstone, which represents meaningful long-term earnings and cash flow upside beyond the current plan.

Speaker #2: As our investment plan has expanded Our teams have continued to demonstrate the ability to execute these programs safely , efficiently and on schedule Longer term , we continue to project $23 billion of capital investment needs 2029 , supporting average annual rate base growth of over 10% .

Speaker #2: We also reaffirmed our long term financial targets , including 6 to 8% annual EPS growth through at least 2029 , with compound annual growth expected to be near the top end of that range , 4 to 6% annual dividend growth and FFO to debt of 16 to 18% .

Speaker #2: Importantly , these targets exclude any contribution from Nvidia Energy , our joint venture with Blackstone , which represents meaningful long term earnings and cash flow upside beyond the current plan Turning to slide five for a more comprehensive regulatory update coming into 2026 , we had base rate case proceedings underway in all three of our primary jurisdictions .

Vince Sorgi: Turning to slide five for a more comprehensive regulatory update. Coming into 2026, we had base rate case proceedings underway in all three of our primary jurisdictions. These rate case filings were after significant periods of stay out, ranging from 5 years in Kentucky, 8 years in Rhode Island, and over 10 years in Pennsylvania. We made excellent progress in these proceedings during the Q2, continuing to achieve constructive outcomes that de-risk our plan. In Pennsylvania, PPL Electric's rate case settlement became effective 1 July, with a positive outcome for both customers and share owners. The approved increase of $275 million supports critical investments we are making while reflecting less than a 4% increase across all of our rate classes. Importantly, even after our recent rate adjustment, PPL Electric's delivery rates remain nearly 20% below the latest published state average.

Vince Sorgi: Turning to slide five for a more comprehensive regulatory update. Coming into 2026, we had base rate case proceedings underway in all three of our primary jurisdictions. These rate case filings were after significant periods of stay out, ranging from five years in Kentucky, eight years in Rhode Island, and over 10 years in Pennsylvania. We made excellent progress in these proceedings during the Q2, continuing to achieve constructive outcomes that de-risk our plan. In Pennsylvania, PPL Electric's rate case settlement became effective 1 July, with a positive outcome for both customers and share owners. The approved increase of $275 million supports critical investments we are making while reflecting less than a 4% increase across all of our rate classes. Importantly, even after our recent rate adjustment, PPL Electric's delivery rates remain nearly 20% below the latest published state average.

Speaker #2: These rate case filings were after significant periods of stay out , ranging from five years in Kentucky , eight years in Rhode Island , and over ten years in Pennsylvania .

Speaker #2: We made excellent progress in these proceedings during the second quarter, continuing to achieve constructive outcomes that de-risk our plan in Pennsylvania. The PPL Electric rate case settlement became effective July 1, with a positive outcome for both customers and shareowners.

Speaker #2: The approved increase of $275 million supports critical investments . We are making while reflecting less than a 4% increase across all of our rate classes Importantly , even after our recent rate adjustment , PPL delivery rates remain nearly 20% below the latest published state average This outcome reflects the benefits of our utility of the future strategy that prioritizes system hardening , disciplined cost management , strategic use of technology , constructive engagement with stakeholders , and a strong focus on affordability .

Vince Sorgi: This outcome reflects the benefits of our Utility of the Future strategy that prioritizes system hardening, disciplined cost management, strategic use of technology, constructive engagement with stakeholders, and a strong focus on affordability. The settlement also includes a 2-year stay out provision. Through the continued use of the DIS mechanism and disciplined cost management, we will target remaining out of base rate cases beyond that period. In Kentucky, we're awaiting the Commission's decision on our reconsideration request following another thorough and constructive regulatory process. While we believe the original KPSC decision allows us to deliver on our overall plan objectives, we believe there were some flaws in that decision that require reconsideration by the KPSC. We appreciate the Commission's thoughtful review of our filing and continue to believe the investments and mechanisms supporting this filing are important to maintaining safe, reliable, and increasingly resilient service to our customers.

Vince Sorgi: This outcome reflects the benefits of our Utility of the Future strategy that prioritizes system hardening, disciplined cost management, strategic use of technology, constructive engagement with stakeholders, and a strong focus on affordability. The settlement also includes a two year stay out provision. Through the continued use of the DIS mechanism and disciplined cost management, we will target remaining out of base rate cases beyond that period. In Kentucky, we're awaiting the Commission's decision on our reconsideration request following another thorough and constructive regulatory process. While we believe the original KPSC decision allows us to deliver on our overall plan objectives, we believe there were some flaws in that decision that require reconsideration by the KPSC. We appreciate the Commission's thoughtful review of our filing and continue to believe the investments and mechanisms supporting this filing are important to maintaining safe, reliable, and increasingly resilient service to our customers.

Speaker #2: The settlement also includes a two-year stay-out provision through the continued use of the DISC mechanism and disciplined cost management. We will target remaining out of base rate cases.

Speaker #2: Beyond that period in Kentucky , we're awaiting the commission's decision on our reconsideration request following another thorough and constructive regulatory process . While we believe the original PSC decision allows us to deliver on our overall plan objectives , we believe there were some flaws in that decision that require reconsideration by the PSC We appreciate the Commission's thoughtful review of our filing and continue to believe the investments and mechanisms supporting this filing are important to maintaining safe , reliable and increasingly resilient service to our customers We've requested a decision from the PSC by August 14th .

Vince Sorgi: We've requested a decision from the KPSC by 14 August. Turning to Rhode Island, our base rate case proceeding remains on track. Hearings were completed in mid-July. Briefs have been filed, and public meetings are scheduled for 12 August to 20 August. New rates are expected to become effective 1 September. As mentioned earlier, this is the first base rate increase Rhode Island Energy has requested in eight years and builds on the significant reliability improvements we've achieved since our acquisition of the utility back in 2022. The filing supports the continued investment needed to strengthen the system and prepare for frequent and severe weather events and continued distributed renewable deployment in the state. We also continue to make progress with our holds harmless bill credit proposal, which is being considered in parallel with the broader rate case proceeding.

Speaker #2: Turning to Rhode Island , our base rate case proceeding remains on track Hearings were completed in mid-July . Briefs have been filed and public meetings are scheduled for August 12th to the 20th .

Speaker #2: New rates are expected to become effective September 1. As mentioned earlier, this is the first base rate increase Rhode Island Energy has requested in eight years and builds on the significant reliability improvements we've achieved since our acquisition of the utility back in 2022.

Speaker #2: The filing supports the continued investment needed to strengthen the system and prepare for frequent and severe weather events , and continue distributed renewable deployment in the state .

Speaker #2: We also continue to make progress with our hold harmless bill credit proposal , which is being considered in parallel with the broader rate case proceeding As a reminder , we've proposed accelerating customer bill credits associated with the deferred tax hold harmless commitment that we made when we acquired Rhode Island Energy .

Vince Sorgi: As a reminder, we've proposed accelerating customer bill credits associated with the deferred tax holds harmless commitment that we made when we acquired Rhode Island Energy. If approved, the credits would significantly offset the impact of the requested base rate increase for customers. This is another example of our balanced approach to affordability and investment, proposing creative solutions to help moderate customer bill impacts while continuing to invest in system reliability and resilience. Overall, these proceedings highlight the effectiveness of our regulatory strategy and provide a stronger foundation for continued investment. Moving to slide six. Against the backdrop of increasing national scrutiny around data center development, our Pennsylvania service territory continues to stand out because of its strong transmission reliability and access, proximity to major demand centers, and disciplined customer protections.

Speaker #2: If approved , the credits would significantly offset the impact of the requested base rate increase for customers . This is another example of our balanced approach to affordability and investment , proposing creative solutions to help moderate customer bill impacts while continuing to invest in system reliability and resilience Overall , these proceedings highlight the effectiveness of our regulatory strategy and provide a stronger foundation for investment .

Speaker #2: Moving to slide six . Against the backdrop of increasing national scrutiny around data center development , our Pennsylvania service territory continues to stand out because of its strong transmission , reliability and access , proximity to major demand centers , and disciplined customer protections .

Speaker #2: Signed data center agreements with PPL electric utilities increased for the 10th consecutive quarter to about 32GW , an increase of 3.5GW from last quarter .

Vince Sorgi: Signed data center agreements with PPL Electric Utilities increased for the 10th consecutive quarter to about 32 GW, an increase of 3.5 GW from last quarter, with over a GW coming from signed Energy Service Agreements or ESAs. We now have more than 11 GW under ESAs, which carry meaningful financial commitments from the customer, which I'll cover in more detail in a few slides. We also continue to see these projects enter the construction phase with more than 6.5 GW now under construction. And during the quarter, two of these data centers began taking utility service, which are expected to ramp to about 2 GW of load by 2031. This continued progression from agreement to construction to taking service is improving our line of sight into future infrastructure and generation needs, including from our Invidium Energy joint venture with Blackstone.

Speaker #2: With over a gigawatt coming from signed electric services agreements or ESAs We now have more than 11GW under ESAs , which carry meaningful financial commitments from the customer , which I'll cover in more detail in a few slides We also continue to see these projects enter the construction phase with more than 6.5GW now under construction , and during the quarter , two of these data centers began taking utility service , which are expected to to about two gigawatts of load by 2031 .

Speaker #2: This continued progression from agreement to construction to taking service is improving our line of sight into future infrastructure and generation needs, including from our NVI Energy joint venture with Blackstone.

Speaker #2: Turning to slide seven . Our Nvidia joint venture continues to make progress across a number of critical paths . Ratepayer protection pledges and PJM .

Vince Sorgi: Turning to slide seven. Our Invidium joint venture continues to make progress across a number of critical paths. Ratepayer protection pledges and PJM's recent FERC proposal reinforce the need for new generation to serve large load customers. While strong data center activity in PPL Electric Utility service territory is expanding the opportunity for long-term Energy Storage Services Agreements or ESSAs. During the quarter, we continued to move the joint venture from concept to execution. We now have strategic land sites capable of supporting between 8 and 14 GW of new generation, depending on the technology selected, and we are continuing to build our inventory of viable sites. We have over 5 GW of new CCGT generation that has been accepted in the PJM interconnection queue. We also have over 5 GW of reservation agreements for combined cycle gas turbines.

Vince Sorgi: Turning to slide seven. Our Invidium joint venture continues to make progress across a number of critical paths. Ratepayer protection pledges and PJM's recent FERC proposal reinforce the need for new generation to serve large load customers. While strong data center activity in PPL Electric Utility service territory is expanding the opportunity for long-term Energy Storage Services Agreements or ESSAs. During the quarter, we continued to move the joint venture from concept to execution. We now have strategic land sites capable of supporting between eight and 14 GW of new generation, depending on the technology selected, and we are continuing to build our inventory of viable sites. We have over 5 GW of new CCGT generation that has been accepted in the PJM interconnection queue. We also have over 5 GW of reservation agreements for combined cycle gas turbines.

Speaker #2: Recent Ferc proposal reinforced the need for new generation to serve large load customers . While strong data center activity in PPL electric utility service territory is expanding , the opportunity for long term energy supply services agreements or ESAs During the quarter , we continued to move the joint venture from concept to execution .

Speaker #2: We now have strategic land sites capable of supporting . Between 8 and 14GW of new generation , depending on the technology , and we are continuing to build our inventory of viable sites We have over five gigawatts of new Ccgt generation that has been accepted in the PJM interconnection queue .

Speaker #2: We also have over five gigawatts of reservation agreements for combined cycle gas turbines using the market consensus project cost of approximately 2500 to $3000 per kW That five gigawatts represents between 12.5 and $15 billion of potential future investment through 2032 , of which Ppl's share would be 51% .

Vince Sorgi: Using the market consensus project cost of approximately $2,500 to $3,000 per kW, that 5 gigawatts represents between $12.5 and $15 billion of potential future investment through 2032, of which PPL's share would be 51%. Collectively, these milestones give us increasing confidence that Invidium can support contracted growth and create incremental value for shareowners. While we do not expect the earnings contributions from the JV to be material through 2030, batteries or other shorter lead time technologies could begin contributing earnings in 2029 or 2030, which could enhance our projected EPS growth rate above the top end of our 6% to 8% range. We would expect more meaningful earnings and cash flows when the CCGTs come online, which could be as early as the 2031, 2032 timeframe.

Vince Sorgi: Using the market consensus project cost of approximately $2,500 to $3,000 per kW, that 5 GW represents between $12.5 and $15 billion of potential future investment through 2032, of which PPL's share would be 51%. Collectively, these milestones give us increasing confidence that Invidium can support contracted growth and create incremental value for shareowners. While we do not expect the earnings contributions from the JV to be material through 2030, batteries or other shorter lead time technologies could begin contributing earnings in 2029 or 2030, which could enhance our projected EPS growth rate above the top end of our 6% to 8% range. We would expect more meaningful earnings and cash flows when the CCGTs come online, which could be as early as the 2031, 2032 timeframe.

Speaker #2: Collectively, these milestones give us increasing confidence that Nvidia can support contracted growth and create incremental value for shareowners. While we do not expect the earnings contributions from the JV to be material through 2030.

Speaker #2: Batteries or other shorter lead time technologies could begin contributing earnings in 2029 or 2030, which could enhance our projected EPS growth rate above the top end of our 6% to 8% range.

Speaker #2: We would expect more meaningful earnings and cash flows when the CGS come online , which could be as early as the 2031 2032 timeframe .

Speaker #2: And as we've said , we will not move forward with construction or make material financial commitments until we have executed ESAs with appropriate risk profiles in those contracts or have cost reimbursement agreements in place based on progress to date , we expect to have one or more commercial agreements by year end .

Vince Sorgi: As we've said, we will not move forward with construction or make material financial commitments until we have executed ESSAs with appropriate risk profiles in those contracts or have cost reimbursement agreements in place. Based on progress to date, we expect to have one or more commercial agreements by year-end. Turning to slide eight. Kentucky also continues to see strong economic development activity. The current development pipeline has expanded to 13.7 gigawatts of potential load growth, with data center demand representing 11.6 gigawatts and manufacturing and other non-data center projects totaling 2.1 gigawatts. This is an increase of roughly 800 megawatts from last Q. Of that pipeline, approximately 1.3 gigawatts is now supported by signed reimbursement agreements, up from approximately 900 megawatts in Q1.

Vince Sorgi: As we've said, we will not move forward with construction or make material financial commitments until we have executed ESSAs with appropriate risk profiles in those contracts or have cost reimbursement agreements in place. Based on progress to date, we expect to have one or more commercial agreements by year-end. Turning to slide eight. Kentucky also continues to see strong economic development activity. The current development pipeline has expanded to 13.7 GW of potential load growth, with data center demand representing 11.6 GW and manufacturing and other non-data center projects totaling 2.1 GW. This is an increase of roughly 800 megawatts from last Q. Of that pipeline, approximately 1.3 GW is now supported by signed reimbursement agreements, up from approximately 900 megawatts in Q1.

Speaker #2: Turning to slide eight . Kentucky also continues to see strong economic development activity . The current development pipeline has expanded to 13.7GW of potential load growth , with data center demand representing 11.6GW and manufacturing and other Non-data center projects totaling 2.1GW .

Speaker #2: This is an increase of roughly 800 MW from last quarter. Of that pipeline, approximately 1.3 GW is now supported by signed reimbursement agreements, up from approximately 900 MW in the first quarter. Our updated probability-weighted projections now indicate 3.7 GW of expected new load by 2032.

Vince Sorgi: Our updated probability-weighted projections now indicate 3.7 gigawatts of expected new load by 2032, more than double the amount reflected in our 2025 CPCN filing. That demand is making it even more likely that we will need to file a CPCN for additional generation resources by year-end. Potential resources for the CPCN include the 266-megawatt Lewis Ridge Pumped Storage Project, the 400 megawatts of batteries that were deferred in the 2025 CPCN, and additional natural gas combined cycle generation. While we won't know the exact resource mix until we file the next CPCN, those projects represent an incremental $3.5 to 4 billion of potential investment to be incurred between 2027 and 2032.

Vince Sorgi: Our updated probability-weighted projections now indicate 3.7 GW of expected new load by 2032, more than double the amount reflected in our 2025 CPCN filing. That demand is making it even more likely that we will need to file a CPCN for additional generation resources by year-end. Potential resources for the CPCN include the 266-megawatt Lewis Ridge Pumped Storage Project, the 400 megawatts of batteries that were deferred in the 2025 CPCN, and additional natural gas combined cycle generation. While we won't know the exact resource mix until we file the next CPCN, those projects represent an incremental $3.5 to 4 billion of potential investment to be incurred between 2027 and 2032.

Speaker #2: That's more than double the amount reflected in our 2025 CPCN filing. That demand is making it even more likely that we will need to file a CPCN for additional generation resources by year-end. Potential resources for the CPCN include the 266-megawatt Louis Ridge pumped storage project.

Speaker #2: The 400MW of batteries that were deferred in the 2025 Cpcn , and additional natural gas combined cycle generation While we won't know the exact resource mix until we file the next Cpcn , those projects represent an incremental three and a half to $4 billion of potential investment to be incurred between 2027 and 2032 .

Speaker #2: As you can see . Kentucky is emerging as a significant platform for incremental growth , which is why we've been so focused on large low tariff protections designed to preserve affordability for our existing customers Let's turn to slide nine for a discussion on how those large , low tariffs are protecting our customers The tariffs approved in Pennsylvania and Kentucky are grounded in a simple principle Large load customers pay their own way with enforceable provisions that protect existing customers from cost shifts .

Vince Sorgi: As you can see, Kentucky is emerging as a significant platform for incremental growth, which is why we've been so focused on large load tariff protections designed to preserve affordability for our existing customers. Let's turn to slide nine for a discussion on how those large load tariffs are protecting our customers. The tariffs approved in Pennsylvania and Kentucky are grounded in a simple principle. Large load customers pay their own way with enforceable provisions that protect existing customers from cost shifts. First, these tariffs require long contracts with a minimum term of 10 years in Pennsylvania and 15 years in Kentucky. Kentucky's term is longer because of the fully integrated business model with generation resources as well. Second, customers commit to guaranteed payments of at least 80% of the capacity they reserve, whether they use it or not. Third, we require collateral upfront.

Speaker #2: First , these tariffs require long contracts with a minimum term of ten years . In Pennsylvania and 15 years in Kentucky . Kentucky's term is longer because of the fully integrated business model , with generation , resources as well .

Speaker #2: Second, customers commit to guaranteed payments of at least 80% of the capacity they reserve, whether they use it or not. Third, we require collateral upfront.

Speaker #2: And finally , although no projects were signed , ESAs have been canceled to date . There are material termination fees in the event a developer walks away , even if they walk away Preco de .

Vince Sorgi: Finally, although no projects with signed ESAs have been canceled to date, there are material termination fees in the event a developer walks away, even if they walk away pre-COD. With all of these elements in mind, our existing customers are protected from bearing costs for projects that do not move forward. These financial commitments materially improve project quality and increase our confidence that signed ESAs represent serious executable demand. These tariffs also provide tangible customer benefits. Starting in 2027, Pennsylvania's large load customer class will contribute $11 million annually to low-income assistance, which was previously funded by our existing customers. Our existing Pennsylvania customers could also see about $25 a month come off the transmission component of their bills over time if the 31.8 gigawatts in advanced stages is realized.

Speaker #2: So with all of these elements in mind , our existing customers are protected from bearing costs for projects that do not move forward .

Speaker #2: These financial commitments materially improve project quality and increase our confidence that signed ESAs represent serious executable demand These tariffs also provide tangible customer benefits .

Speaker #2: Starting in 2027 . Pennsylvania's large load customer class will contribute $11 million annually to low income assistance , which was previously funded by our existing customers .

Speaker #2: Our existing Pennsylvania customers could also see about $25 a month come off the transmission component of their bills over time . If the 31.8GW in advanced stages is realized , that would help offset the more than $20 per month our Pennsylvania customers are currently paying .

Vince Sorgi: That would help offset the more than $20 per month our Pennsylvania customers are currently paying as a result of higher PJM capacity prices. Bottom line, these tariffs provide a disciplined framework to capture growth responsibly while ensuring that growth pays for growth. With that, I'll turn the call over to Joe for the financial update.

Speaker #2: As a result of higher PJM capacity prices Bottom line , these tariffs provide a disciplined framework to capture growth responsibly while ensuring that growth pays for growth .

Speaker #2: With that , I'll turn the Joe for the financial update .

Speaker #3: Thank you , Vince , and good morning , everyone . Let's turn to slide 11 . PPL second quarter GAAP earnings were $0.30 per share , compared to $0.25 per share in Q2 2025 .

Joseph P. Bergstein, Jr.: Thank you, Vince, and good morning, everyone. Let's turn to slide 11. PPL's Q2 GAAP earnings were $0.30 per share compared to $0.25 per share in Q2 2025. We recorded special items of $0.03 per share during Q2, primarily due to IT transformation costs and system integration impacts. Adjusting for these special items, Q2 earnings from ongoing operations were $0.33 per share, an improvement of $0.01 per share compared to Q2 2025, which was in line with our expectations. With the H1 2026 now complete, we remain firmly on track to achieve at least the midpoint of our 2026 ongoing earnings forecast of $1.94 per share. Base rate case outcomes in both Pennsylvania and Rhode Island support the stronger H2 earnings profile embedded in our plan.

Joe Bergstein: Thank you, Vince, and good morning, everyone. Let's turn to slide 11. PPL's Q2 GAAP earnings were $0.30 per share compared to $0.25 per share in Q2 2025. We recorded special items of $0.03 per share during Q2, primarily due to IT transformation costs and system integration impacts. Adjusting for these special items, Q2 earnings from ongoing operations were $0.33 per share, an improvement of $0.01 per share compared to Q2 2025, which was in line with our expectations. With the H1 2026 now complete, we remain firmly on track to achieve at least the midpoint of our 2026 ongoing earnings forecast of $1.94 per share. Base rate case outcomes in both Pennsylvania and Rhode Island support the stronger H2 earnings profile embedded in our plan.

Speaker #3: We recorded special items of $0.03 per share during the second quarter , primarily due to it transformation costs and system integration impacts Adjusting for these special items , second quarter earnings from ongoing operations were $0.33 per share , an improvement of $0.01 per share compared to Q2 2025 , which was in line with our expectations For the first half of 2026 , now complete , we remain firmly on track to achieve at least the midpoint of our 2026 ongoing earnings forecast of $1.94 per share Base rate case outcomes in both Pennsylvania and Rhode Island support the stronger second half earnings profile embedded in our plan .

Speaker #3: We've also made great progress on our CapEx program and have deployed approximately $2.3 billion through the end of the second quarter . This is roughly 30% more than what we deployed last year through the first six months .

Joseph P. Bergstein, Jr.: We've also made great progress on our CapEx program and have deployed approximately $2.3 billion through the end of Q2. This is roughly 30% more than what we deployed last year through the H1 as we continue to strengthen the safety and reliability of our networks. This also includes the great progress on our generation projects in Kentucky, which continue to be on budget and on schedule. Lastly, we continue to maintain a strong balance sheet supported by an improving credit profile with enhanced cash flows following our base rate cases and the settlement of previously priced equity, improving our credit metrics over time.

Joe Bergstein: We've also made great progress on our CapEx program and have deployed approximately $2.3 billion through the end of Q2. This is roughly 30% more than what we deployed last year through the H1 as we continue to strengthen the safety and reliability of our networks. This also includes the great progress on our generation projects in Kentucky, which continue to be on budget and on schedule. Lastly, we continue to maintain a strong balance sheet supported by an improving credit profile with enhanced cash flows following our base rate cases and the settlement of previously priced equity, improving our credit metrics over time.

Speaker #3: As we continue to strengthen the safety and reliability of our networks . This also includes the great progress on our generation projects in Kentucky , which continue to be on budget and on schedule Lastly , we continue to maintain a strong balance sheet supported by an improving credit profile with enhanced cash flows following our base rate cases and the settlement of previously priced equity Improving our credit metrics over time .

Speaker #3: That financial strength positions us to deliver our existing capital plan . While maintaining flexibility as the additional investment opportunities , including those that Vince discussed , emerge across our service territories .

Joseph P. Bergstein, Jr.: That financial strength positions us to deliver our existing capital plan while maintaining flexibility as the additional investment opportunities, including those that Vince discussed, emerge across our service territories. We completed our financing needs for 2026 earlier in Q2 with successful debt offerings at PPL Electric and Rhode Island Energy. Both transactions were very well subscribed and secured long-dated capital at attractive terms. Turning to the ongoing segment drivers for Q2 on slide 12. Our Kentucky segment results were flat compared to Q2 2025. These results were driven by higher base rate recovery due to higher retail rates that were effective on 1 January. This was offset by lower sales volumes due to less favorable weather than experienced in Q2 2025, higher operating costs, higher depreciation expense, and higher interest expense.

Joe Bergstein: That financial strength positions us to deliver our existing capital plan while maintaining flexibility as the additional investment opportunities, including those that Vince discussed, emerge across our service territories. We completed our financing needs for 2026 earlier in Q2 with successful debt offerings at PPL Electric and Rhode Island Energy. Both transactions were very well subscribed and secured long-dated capital at attractive terms. Turning to the ongoing segment drivers for Q2 on slide 12. Our Kentucky segment results were flat compared to Q2 2025. These results were driven by higher base rate recovery due to higher retail rates that were effective on 1 January. This was offset by lower sales volumes due to less favorable weather than experienced in Q2 2025, higher operating costs, higher depreciation expense, and higher interest expense.

Speaker #3: We completed our financing needs for 2026 . Earlier in the second quarter , with successful debt offerings at PPL Electric and Rhode Island Energy , both transactions were very well subscribed and secured .

Speaker #3: Long dated capital at attractive terms . Turning to the ongoing segment , drivers for the second quarter on slide 12 . Our Kentucky segment results were flat compared to the second quarter of 2025 .

Speaker #3: These results were driven by higher base rate recovery due to higher retail rates that were effective on January 1st . This was offset by lower sales volumes due to less favorable weather than experienced in Q2 2025 .

Speaker #3: Higher operating costs , higher depreciation expense , and higher interest expense . Our Pennsylvania regulated segment results were $0.01 lower compared to the same period a year ago These results were driven by higher depreciation expense and higher interest expense , partially offset by higher transmission revenue from additional capital investments .

Joseph P. Bergstein, Jr.: Our Pennsylvania regulated segment results were $0.01 lower compared to the same period a year ago. These results were driven by higher depreciation expense and higher interest expense, partially offset by higher transmission revenue from additional capital investments. Our Rhode Island segment results increased by $0.02 compared to Q2 2025, driven by higher rider revenue and lower operating costs, partially offset by higher depreciation expense. Lastly, results at Corporate and Other remained flat compared to Q2 2025, mainly driven by higher interest expense, offset by other factors that were not individually significant. Overall, our growth drivers are in motion to deliver on our commitments for the year. Our financing plan continues to advance, and we see ongoing opportunities to build on the plan that we've outlined for both our customers and shareowners. This concludes my financial update. I'll now turn the call back over to Vince.

Joe Bergstein: Our Pennsylvania regulated segment results were $0.01 lower compared to the same period a year ago. These results were driven by higher depreciation expense and higher interest expense, partially offset by higher transmission revenue from additional capital investments. Our Rhode Island segment results increased by $0.02 compared to Q2 2025, driven by higher rider revenue and lower operating costs, partially offset by higher depreciation expense. Lastly, results at Corporate and Other remained flat compared to Q2 2025, mainly driven by higher interest expense, offset by other factors that were not individually significant. Overall, our growth drivers are in motion to deliver on our commitments for the year. Our financing plan continues to advance, and we see ongoing opportunities to build on the plan that we've outlined for both our customers and shareowners. This concludes my financial update. I'll now turn the call back over to Vince.

Speaker #3: Our Rhode Island segment results increased by $0.02 compared to Q2 2025 , driven by higher rider revenue and lower operating costs , partially offset by higher depreciation expense Lastly , results at corporate and other remained flat compared to Q2 of 2025 , mainly driven by higher interest expense , offset by other factors that were not individually significant Overall , our growth drivers are in motion to deliver on our commitments for the year .

Speaker #3: Our financing plan continues to advance , and we see ongoing opportunities to build on the plan that we've outlined for both our customers and Shareowners This concludes my financial update .

Speaker #3: I'll now turn the call back over to Vince .

Speaker #2: Thanks , Joe Before we open it up for questions , I'll leave you with a few closing thoughts . The headline for this quarter is straightforward .

Vince Sorgi: Thanks, Joe. Before we open it up for questions, I'll leave you with a few closing thoughts. The headline for this quarter is straightforward. We are executing on our current plan while creating more visible upside beyond it. We delivered solid Q2 results, reaffirmed our 2026 earnings forecast and long-term financial outlook. We've made great progress in achieving constructive outcomes in our base rate cases, supporting timely recovery of critical investments while maintaining customer affordability. At the same time, accelerating customer demand across our Pennsylvania and Kentucky service territories is giving us a clearer line of sight into the infrastructure and generation investments required to support meaningful future growth. We've also advanced tariffs that protect our existing customers as that large load demand becomes more visible.

Speaker #2: We are executing on our current plan while creating more visible upside beyond it We delivered solid second quarter results , reaffirmed our 2026 earnings forecast and long term financial outlook We've made great progress in achieving constructive outcomes in our base rate cases , supporting timely recovery of critical investments while maintaining customer affordability .

Speaker #2: At the same time , accelerating customer demand across our Pennsylvania and Kentucky service territories is giving us a clearer line of sight into the infrastructure and generation investments required to support meaningful future growth We've also advanced tariffs that protect our existing customers , as that large load demand becomes more visible .

Speaker #2: We continue to make considerable progress on the Nvidia Energy joint venture , with Blackstone , and expect one or more commercial agreements to be announced by year end And finally , the Kentucky generation and Nvidia energy potential upsides could drive between 10 and $12 billion of incremental capital investment through 2032 , which strengthens our growth outlook beyond the current plan period With that operator , let's open it up for questions

Vince Sorgi: We continue to make considerable progress on the Invidium Energy joint venture with Blackstone and expect one or more commercial agreements to be announced by year-end. Finally, the Kentucky generation and Invidium Energy potential upsides could drive between $10 and $12 billion of incremental capital investment through 2032, which strengthens our growth outlook beyond the current plan period. With that, operator, let's open it up for questions.

Speaker #1: Thank you . We will now begin the question and answer session . To ask a question , you may press star then one on your touchtone phone .

Vince Sorgi: Thank you. 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're 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 your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Michael Lonegan with Barclays. Please go ahead.

Operator: Thank you. 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're 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 your question, please press star then two. At this time, we will pause momentarily to assemble our roster. The first question today comes from Michael Lonegan with Barclays. Please go ahead.

Speaker #1: If you're 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 your question , please press star then two at this time , we will pause momentarily to assemble our roster The first question today comes from Michael Logan with Barclays .

Speaker #1: Please go ahead

Speaker #4: Hi . Good morning . Thanks for taking my question I'm wondering .

Michael Lonegan: Hi. Good morning. Thanks for taking my question.

Vince Sorgi: Morning, Michael.

Speaker #5: If you could .

Speaker #4: Morning . Just wondering if you could talk about the interaction of the Nvidia JV with the bilateral process and be a procurement . Would you have to wait for procurement to happen , or could you announce at any time .

Michael Lonegan: Morning. Just wondering if you could talk about the interaction of the Invidium JV with the bilateral process and RBP procurement. Would you have to wait for procurement to happen, or could you announce at any time? If you announce a deal, would it be included in the procurement?

Speaker #4: And if you announce a deal, would it be included in the procurement?

Speaker #6: Yeah . So we are Actively negotiating bilaterally . And we've been doing that way before the PJM Rvp process . Michael . So our ability to get to closure on bilateral contracts is irrespective of the PJM process .

Vince Sorgi: Yeah. We are actively negotiating bilaterally, and we've been doing that way before the PJM RBP process, Michael. Our ability to get to closure on bilateral contracts is irrespective of the PJM process. We did submit proposals into that process just to maximize our customer contacts. The two are not necessarily related given the activity we've been doing before the PJM process.

Speaker #6: We did submit proposals into that process just to maximize our our , you know , customer contacts . But but the , the two are not necessarily related given the activity we've been doing before , the .

Speaker #2: PJM process

Speaker #4: Great . Thanks . And then sticking with the JV , you said you could reach one or more agreements by year end Anything you could say about the size of the near-term ones in terms of gigawatts and investment opportunity and could the announcement come when the agreements are reached or or would that be potentially a Q4 update

Michael Lonegan: Great. Thanks. Sticking with the JV, you said you could reach one or more agreements by year-end. Anything you could say about the size of the near-term ones in terms of gigawatts and investment opportunity? Could the announcement come when the agreements are reached, or would that be essentially a Q4 update?

Michael Lonegan: Great. Thanks. Sticking with the JV, you said you could reach one or more agreements by year-end. Anything you could say about the size of the near-term ones in terms of GW and investment opportunity? Could the announcement come when the agreements are reached, or would that be essentially a Q4 update?

Speaker #2: Yeah , sure . So not able to give a size at this point depending on , you know , which ones happen first .

Vince Sorgi: Yeah, sure. Not able to give a size at this point, depending on which ones happen first. We'll defer that until we actually make the announcements. I would say timing of the announcements, again, materiality will really dictate that, Michael. Anything material, we would certainly not wait for an earnings call to announce. We would do that, I would say, in concert with signing of those agreements. Maybe just broadly on timing, I'll make a few comments where, in terms of announcement timing, I would say the PJM RBP process is likely affecting the timing for some of our counterparties. Our customer engagement really, I would say, remains very strong, and we're continuing to see a clear path to the bilateral commercial agreements that support all this new generation.

Speaker #2: So I'll we'll defer that until we actually make the , the , the , the announcements . I would say timing of the announcements .

Speaker #2: Again , materiality will really dictate that . Michael . So , you know . Anything material we would certainly not wait for an earnings call to announce .

Speaker #2: We would do that . I would say in concert with signing of those agreements , maybe just broadly on timing . I'll make a few comments where in terms of announcement timing , I would say the PJM Rvp process is likely affecting the timing for some of our counterparties , but our our customer engagement really , I would say , remains very strong .

Speaker #2: And we're continuing to see a clear path to the bilateral commercial agreements that support all this new generation . I would say , even with PJM proposal and the rules in their Ferc filing , right ?

Vince Sorgi: I would say even with the PJM proposal and the rules in their FERC filing, they are really pushing towards bilateral contracting. We continue to believe that bilateral contracting will likely be the predominant path for getting new generation development in PJM at least. Given the progress that we've made to date and what I've said on the call, again, with the discussions we're having with our customers, but all of the other development work around site readiness, the turbine access, the interconnection activity that we've done with PJM, and I'd even add fuel supply to that's why we're expecting that we would have one or more announcements by year-end. I will say it could happen sooner. I wouldn't want to speculate on exact timing just because these are complex, they're long-term agreements, and of course, it takes two parties to finalize them.

Speaker #2: They are they are really pushing towards bilateral contracting . And we continue to believe that bilateral contracting will likely be the predominant path for getting new generation development in in PJM , at least Given the progress that we've made to date and what I've said on the call again , with the discussions we're having with our customers , but all of the other development work around site turbine access , the interconnection activity that done with PJM .

Speaker #2: And I'd even add fuel supply to that. That's why we're expecting that we will have one or more announcements by year-end.

Speaker #2: I will say it could happen sooner , but I wouldn't want to speculate on exact timing , just because these are complex . They're long term agreements .

Speaker #2: And of course , it takes two parties to finalize them . So I think the key for us is we're not waiting for those essays to to begin that development work that we've talked about on the call today .

Vince Sorgi: I think the key for us is we're not waiting for those ESSAs to begin that development work that we've talked about on the call today. We're running those in parallel. We're ready to respond very quickly in concert with the customer negotiations.

Speaker #2: We're running those in parallel . And so we're we're ready to respond very quickly in concert with the the customer negotiations

Speaker #4: Great . Thank you very much

Michael Lonegan: Great. Thank you very much.

Speaker #7: Sure .

Vince Sorgi: Sure.

Speaker #1: The next question comes from Jeremy Tonet with J.P. Morgan . Please go ahead .

Vince Sorgi: The next question comes from Jeremy Tonet with JPMorgan. Please go ahead.

Operator: The next question comes from Jeremy Tonet with JPMorgan. Please go ahead.

Speaker #2: Hey , Jeremy .

Vince Sorgi: Hey, Jeremy.

Speaker #8: Hi . Good morning Hi . Good morning . Just wanted to . You know , maybe follow up a little bit on on the last , you know , points there .

Jeremy Tonet: Hi, good morning.

Vince Sorgi: Hi. Good morning.

Jeremy Tonet: Just wanted to maybe follow up a little bit on the last points there. Just when do you expect to see the first results from the PJM capacity matching process? How do you view this process versus bidding into the actual RBP auction?

Speaker #8: When do you expect to see the first results from the PJM capacity matching process? And how do you view this process versus bidding into the actual RRP auction?

Speaker #2: Yeah . So we have not committed yet into bidding into the RRP auction . We we did provide a proposal for the match making part of the process .

Vince Sorgi: Yeah. We have not committed yet into bidding into the RBP auction. We did provide a proposal for the matchmaking part of the process. Ultimately, PJM is looking to come out at the end of September with all of that. We'll ultimately see how that plays out. Just the caps that we're seeing in the PJM auction part of it, those are well below CONE on certainly some of the assets that we're talking about, Jeremy. More to come on how aggressively we're participating in that process. I will say, just like last quarter, our focus continues to be on the bilateral contracting process directly with our customer base.

Speaker #2: Right ? Ultimately , PJM is looking to . Come out , you know , at the end of September with all of that will will ultimately see how that plays out .

Speaker #2: Just the the the caps that we're seeing in the PJM auction , part of it , you know , those those are well below cone on certainly some of the assets that we're talking about .

Speaker #2: Jeremy . So more to come on , on how aggressively we're participating in that process . I will say , just like last quarter , our focus continues to be on the bilateral contracting process directly with our our customer base

Speaker #8: Got it . That makes sense . Just wondering , you know , maybe a little bit on timing . If the assets you bid into the matching process were selected , will we know by the end of September , or how should we think about next steps

Jeremy Tonet: Got it. That makes sense. Just wondering, maybe a little bit on timing. If the assets you bid into the matching process were selected, will we know by the end of September, or how should we think about next steps?

Speaker #2: I'm not exactly sure of the timing on when we would know that, Jeremy. Certainly, that's something we'll continue to think through as we progress through that process.

Vince Sorgi: I'm not exactly sure of the timing on when we'll know that, Jeremy. Certainly something we'll continue to think through as we progress through that process. I'm not exactly sure of the timing though, when we'll hear back from them.

Speaker #2: I'm not exactly sure the timing . When we'll hear back from them

Speaker #8: Got it . Fair enough . And , you know , maybe going over to Kentucky , everything you talked about there , you know , a lot of Upsizing opportunities Just wondering , I guess , is there a milestone for that ?

Jeremy Tonet: Got it. Fair enough. Maybe going over to Kentucky, everything you talked about there, a lot of upsizing opportunity. Just wondering, I guess, is there a milestone that you need to hit before you could do the additional CPCN filing that could be filed by year-end?

Speaker #8: You need to hit before you could do the additional Cpcn filing ? That could be filed by year end ?

Speaker #2: Yeah . You cut out on us there , but I think you were asking about what what are maybe some triggers for the Cpcn filing

Vince Sorgi: Yeah, you cut out on us there, I think you were asking about what are maybe some triggers for the CPCN filing.

Speaker #8: Yes .

Jeremy Tonet: Yes.

Speaker #2: Do I have that right ? Okay . Yeah . So look , I think we're you know , we are seeing some of those triggers already .

Vince Sorgi: Do I have that right? Okay. Yeah. Look, I think we are seeing some of those triggers already, as we're seeing the continued increase in the pipeline. We are signing various agreements for new load with data center developers and also with non-data center customers. All of that continues to move in the right direction, and that's really what's driving our new probability weighted load of 3.7 gigawatts. That's twice what we had in the last CPCN. I would say the one area that we would want to see, in addition to the commission, is the conversion from the data center developer to an actual hyperscaler contract. I will say, those activities are happening as we speak. I would say once we have one of those, that would be a pretty big trigger to prompt us to make that filing before year-end.

Vince Sorgi: Do I have that right? Okay. Yeah. Look, I think we are seeing some of those triggers already, as we're seeing the continued increase in the pipeline. We are signing various agreements for new load with data center developers and also with non-data center customers. All of that continues to move in the right direction, and that's really what's driving our new probability weighted load of 3.7 GW. That's twice what we had in the last CPCN. I would say the one area that we would want to see, in addition to the commission, is the conversion from the data center developer to an actual hyperscaler contract. I will say, those activities are happening as we speak. I would say once we have one of those, that would be a pretty big trigger to prompt us to make that filing before year-end.

Speaker #2: As you know , we're seeing right , the continued increase in the pipeline . We are signing various agreements for new load with data center developers and also with non center customers .

Speaker #2: So , you know , all of that continues to move in the right direction . And and that's really what's driving our new probability weighted load of 3.7GW .

Speaker #2: That's twice what we had in the in the last cpcn . So I would say the , the one area that we would want to see in addition to the commission is the conversion from the data center developer to an actual hyperscale or contract .

Speaker #2: And I will say those activities are happening as we speak. And I would say, once we have one of those, that would—

Speaker #2: That would be a pretty big trigger to prompt us to make that filing before year-end.

Speaker #8: Got it . Understood . Thank you

Jeremy Tonet: Got it. Understood. Thank you.

Speaker #7: Sure .

Vince Sorgi: Sure.

Speaker #1: The next question comes from Paul Zimbardo with Jefferies . Please go ahead

Vince Sorgi: The next question comes from Paul Zimbardo with Jefferies. Please go ahead.

Operator: The next question comes from Paul Zimbardo with Jefferies. Please go ahead.

Speaker #7: Hey , Paul .

Vince Sorgi: Hey, Paul.

Speaker #9: Hi . Good morning team .

Paul Zimbardo: Hi, good morning, team.

Speaker #7: Good morning

Vince Sorgi: Morning.

Paul Zimbardo: Thank you for taking the time. I just wanted to dive a little bit more, of course, into the joint venture. I know you've been consistent that we shouldn't expect to see material earnings before 2030. How would you envision articulating what the earnings contribution is? Would you do a separate joint venture earnings separate from kind of the base business, more long duration gig or beyond 2030? If you could help on kind of what kind of disclosures we should expect.

Speaker #9: Thank you for taking the time . I just wanted to dive a little bit more , of course , into the joint venture .

Speaker #9: So, I know you've been consistent that we shouldn't expect to see material earnings before 2030. Just how would you envision articulating what the earnings contribution is?

Speaker #9: Would you do like a separate joint venture earnings separate from kind of the base business , more long duration beyond 2030 ? Just if you could help on kind of what kind of disclosures we should expect ?

Speaker #7: Yeah . Paul . It's . Joe . Yeah , we would give something separate from from the base utility business . So you could see the , the , the earnings and the growth in the trajectory of , of earnings coming out of the JV .

Joseph P. Bergstein, Jr.: Yeah. Paul, it's Joe. Yeah. We would give something separate from the base utility business. You could see the earnings and the growth and the trajectory of earnings coming out of the JV. Then obviously, we provide an update on its impact on the CAGR that we have currently. Yes, I think you're right. You're thinking about it correctly on both of those.

Joe Bergstein: Yeah. Paul, it's Joe. Yeah. We would give something separate from the base utility business. You could see the earnings and the growth and the trajectory of earnings coming out of the JV. Then obviously, we provide an update on its impact on the CAGR that we have currently. Yes, I think you're right. You're thinking about it correctly on both of those.

Speaker #7: And then obviously we provide an update on , on its impact on the CAGR that we that we have currently . So yes , I think you're right .

Speaker #7: You think about it correctly on both of those.

Speaker #2: Yeah . And Paul , this is this is equity method for accounting purposes . So , right . Single line items on the financials .

Vince Sorgi: Yeah. Paul, this is equity method for accounting purposes. Right, single line items on the financials. We'll clearly break all that out in additional disclosure for this part of the business once it starts to materialize.

Speaker #2: So we'll clearly break break all that out in additional disclosure for the for this part of the business . Once it starts to materialize

Speaker #9: Okay , great . I understand there and then shifting to Kentucky for a second , I saw the governor's executive order on data centers and going to focus on emissions , water , and some of those things .

Paul Zimbardo: Okay. Great. I understand there. Shifting to Kentucky for a second, I saw the governor's executive order around data centers and focus on emissions, water, and some of those things. Does that shift what you could procure to support the data centers? I know you mentioned the pumped storage, just any thoughts on the executive order would be helpful.

Speaker #9: Does that shift what you could procure to support the data centers ? Like I know you mentioned the the pump storage , but just any thoughts on the executive order would be helpful ?

Speaker #2: Yeah , no , it was good to see the the order come out . I , I , we view it as fully consistent with the ratepayer protection principles that we've been championing .

Vince Sorgi: Yeah, no. It was good to see the order come out. We view it as fully consistent with the ratepayer protection principles that we've been championing and even the ratepayer protection pledge that we signed recently, where new large load customers should be supporting and paying for the infrastructure and the resources that are needed to serve them. Importantly, right, the order did not prohibit or put a moratorium on data center development. It simply is reinforcing that we need to have customer protections built into the process, which of course, we have built into our approach. I would say that LG&E and KU, with our tariff structure that we've gotten approved in the state, we're well-positioned within that tariff structure to align very nicely with our governor's executive order. Not concerned at all.

Speaker #2: And even the ratepayer Protection pledge that we signed recently where , you know , new large load customers should be supporting and paying for the infrastructure and the resources that are needed to serve them .

Speaker #2: So importantly , right , the order did not prohibit or put a moratorium on data center development . It simply is reinforcing that we need to have customer protections built into to to the process .

Speaker #2: Which of course , we have built into our approach . So I would say that LG and Ku , with our tariff structure that we've gotten approved in the state , we're well positioned within that tariff structure to align very nicely with our governor's executive order .

Speaker #2: So, not concerned at all. We don't think it will slow down the development that we're seeing in Kentucky or our ability to serve it.

Vince Sorgi: We don't think it will slow down the development that we're seeing in Kentucky or our ability to serve it.

Speaker #9: Okay, great. Thank you very much, team.

Paul Zimbardo: Okay, great. No, thank you very much, team.

Joseph P. Bergstein, Jr.: Sure.

Vince Sorgi: Sure.

Speaker #1: The next question comes from Shar Perez with Wells Fargo . Please go ahead .

Joseph P. Bergstein, Jr.: The next question comes from Shar Pourreza with Wells Fargo. Please go ahead.

Operator: The next question comes from Shar Pourreza with Wells Fargo. Please go ahead.

Speaker #10: Hi . Actually , it's Andrew Kadavy on for Shah . Thanks for taking my question . Hey .

Andrew Godavich: Hi. Actually, it is Andrew Godavich on for Shar. Thanks for taking my question.

Andrew Kadavy: Hi. Actually, it is Andrew Godavich on for Shar. Thanks for taking my question.

Vince Sorgi: Hey. Hey, Andrew.

Speaker #2: Hey , Andrew .

Speaker #10: So, with the longer-dated opportunities kind of on your plate, could we see maybe a longer planning window next time you guys update guidance?

Andrew Godavich: With the longer-dated opportunities kind of on your plate, could we see maybe a longer planning window next time you guys update guidance? And what are some of the considerations that go into that decision?

Andrew Kadavy: With the longer-dated opportunities kind of on your plate, could we see maybe a longer planning window next time you guys update guidance? And what are some of the considerations that go into that decision?

Speaker #10: And what are some of the considerations that go into that decision?

Speaker #7: Yeah , I , I think that's , that's certainly possible , right ? Given the timing that we're talking about as to when we see earnings contributions from these agreements and given the logistics and timing around getting ccgt into service .

Joseph P. Bergstein, Jr.: Yeah, I think that's certainly possible, right? Given the timing that we're talking about as to when we see earnings contributions from these agreements and given the logistics and timing around getting CCGTs into service. That's certainly a consideration.

Joe Bergstein: Yeah, I think that's certainly possible, right? Given the timing that we're talking about as to when we see earnings contributions from these agreements and given the logistics and timing around getting CCGTs into service. That's certainly a consideration.

Speaker #7: So that's certainly a consideration

Speaker #10: And then just circling back to PJM , can you share how potential Nvidia customers are viewing the connect the manage and IRS rulings in PJM and has the clarity around that helped progress some of your commercial discussions

Andrew Godavich: Just circling back to PJM. Can you share how potential Invidium customers are viewing the connect and manage and IRAS rulings in PJM? Has the clarity around that helped progress some of your commercial discussions?

Andrew Kadavy: Just circling back to PJM. Can you share how potential Invidium customers are viewing the connect and manage and IRAS rulings in PJM? Has the clarity around that helped progress some of your commercial discussions?

Speaker #11: Well .

Vince Sorgi: Well, right, the IRAS framework was not included in, right, what was in the letter, at least, was not included in the filing last week. We are expecting that imminently, perhaps even today. I'll reserve judgment on that until I see the actual filing. I would say coming from the letter that PJM put out with their guiding principles, I think what you're starting to see is some clarity on what large loads we'll need to procure during the ramp phases, right? There was a lot of early questions on do you need to just have BYOG online when you hit your max load, or do you need to follow your ramp, or can you do it in chunks? Obviously, the load comes on in different megawatt chunks than you're able to bring generation on if you're using certain types of generation.

Speaker #2: So right , the IRS framework was not included in what was in the letter at least was not included in the filing last week .

Speaker #2: We we are expecting that imminently , perhaps even today . So I'll I'll reserve judgment on that until I see the actual filing .

Speaker #2: But I would say coming from the From the letter that PJM put out with their with their guiding principles I think what you'll what you're starting to see is some clarity on what large loads will need to procure during the ramp phases .

Speaker #2: So there were a lot of early questions on, you know, do you need to just have BYOG online when you hit your max load?

Speaker #2: Or do you need to follow your ramp or can you do it in chunks ? Obviously , the load comes on in different megawatt chunks .

Speaker #2: Then you're able to bring generation on . If you're using certain types of generation . So I think you'll you'll see certainly as we as we think about following ramps , so that the , the hyperscalers are not in that connected manage or interruptible phase , they'll want to try to match that ramp the best they can .

Vince Sorgi: I think you'll see, certainly, as we think about following ramps so that the hyperscalers are not in that connected manage or interruptible phase. They'll want to try to match that ramp the best they can, and that I think will prompt batteries and other types of smaller generation that can come online quickly and at smaller amounts. You're kind of anchored with some of the larger asset types that we're talking about. All of those are part of our discussions with the hyperscalers, all of those types of technologies and following ramp curves, for sure.

Speaker #2: And , and that , I think will prompt , you know , batteries and other types of smaller generation that can come online quickly .

Speaker #2: And at smaller amounts . And then you're kind of anchored with some of the larger asset types that we're talking about . But all of those are part of our discussions with , with the hyperscalers .

Speaker #2: All of those types of technologies . And , and following ramp curves , for sure .

Speaker #10: Thank you for that . I'll leave it there .

Andrew Godavich: Thank you for that. I'll leave it there.

Andrew Kadavy: Thank you for that. I'll leave it there.

Speaker #11: Sure .

Vince Sorgi: Sure.

Speaker #1: The next question comes from Steve Fleishman with Wolfe Research . Please go ahead

Vince Sorgi: The next question comes from Steve Fleishman with Wolfe Research. Please go ahead.

Operator: The next question comes from Steve Fleishman with Wolfe Research. Please go ahead.

Speaker #12: Hey , good morning everybody . So good morning . So the a couple questions on the joint venture . Just going back to the shorter term potential projects , you mentioned batteries .

Steve Fleishman: Hey, good morning, everybody.

Joseph P. Bergstein, Jr.: Morning.

Joe Bergstein: Morning.

Vince Sorgi: Good morning.

Steve Fleishman: Good morning. Couple questions on the joint venture. Just going back to the shorter-term potential projects. You mentioned batteries. What other technologies are you likely to be using for shorter term? Is it mainly just like recepts or AROs? Anything else? CTs.

Speaker #12: What other technologies are you likely to be using for the shorter term? Is it mainly just things like reclosers or ARRs, or is there anything else?

Speaker #2: Yeah , I would say those are the those are the main , right . The CTS are still , I would say the CTS are quicker than the Ccgt , but probably outside of our 29 , right , which is our current , our current plan period .

Vince Sorgi: Yeah, I would say those are the main, right? The CTs are quicker than the CCGTs, but probably outside of our 2029, right? Which is our current plan period, Steve. CTs probably in the 2030, 2031 range, with the CCGTs in the 2031, 2032 range. You mentioned the types of technologies that could get in more in that 2029, 2030 timeframe.

Speaker #2: Steve . So CTS could be probably in the 3031 range with , with the Ccgt in the 3132 range , and then , yeah , you mentioned the types of technologies that could get in More in that , in that 29 , 30 timeframe .

Speaker #12: Fuel cells

Steve Fleishman: Fuel cells?

Speaker #2: We are engaged with the fuel cell manufacturers . So it is on the list of technologies . Ultimately , will will depend on what the hyperscalers would like us to procure and operate .

Vince Sorgi: We are engaged with the fuel cell manufacturers, so it is on the list of technologies. Ultimately, will depend on what the hyperscalers would like us to procure and operate, but we are open to those as well, yes.

Speaker #2: But we are open to to those as well . Yes .

Speaker #12: Yeah . And then just in thinking about the how should we think about funding the joint venture and the projects and , and just how much is likely to be equity from PPL and , you know , and are you looking at kind of alternative financing structures and even just the economics , are you just going to do a straight 50 , 50 or sometimes you can , you know , when you have a financial partner , you can kind of manage the path of cash flow and earnings .

Steve Fleishman: Yeah. Just in thinking about how should we think about funding the joint venture and the projects and just how much is likely to be equity from PPL and are you looking at kind of alternative financing structures? Even just the economics, are you just going to do a straight 50/50 or sometimes when you have a financial partner, you can kind of manage the path of cash flow and earnings. Just any thoughts on all that.

Speaker #12: Just any thoughts on all that ?

Speaker #7: Yeah , sure . So first , on the financing question , during the construction period , we'll use construction period type financing structures that will keep the off balance sheet to limit any near-term dilution .

Joseph P. Bergstein, Jr.: Yeah, sure. First on the financing question. During the construction period, we'll use construction period type financing structures that will keep the off-balance sheet to limit any near-term dilution. Once those projects go COD, we'll put in place a permanent financing structure. As far as the cap structure, we've talked about utility like risk profile and returns, but we obviously have some flexibility in and around where that cap structure could be, but we'll keep that in mind as we think about longer term credit implications. We obviously want to maintain our strong credit position, so we'll have to take that into consideration with discussions with the rating agencies as they think about it as well.

Joe Bergstein: Yeah, sure. First on the financing question. During the construction period, we'll use construction period type financing structures that will keep the off-balance sheet to limit any near-term dilution. Once those projects go COD, we'll put in place a permanent financing structure. As far as the cap structure, we've talked about utility like risk profile and returns, but we obviously have some flexibility in and around where that cap structure could be, but we'll keep that in mind as we think about longer term credit implications. We obviously want to maintain our strong credit position, so we'll have to take that into consideration with discussions with the rating agencies as they think about it as well.

Speaker #7: And then once those projects go Cod , we'll put in place a permanent financing structure . As far as the the cap structure , I mean , we've talked about utility like risk profile and returns , but , you know , we obviously have some flexibility in and around where that cap structure could be .

Speaker #7: But we'll keep that in mind as we think about longer-term implications, and we obviously want to maintain our strong credit position. So we'll have to take that into consideration with discussions with the rating agencies as they think about it, as well.

Speaker #12: Okay Great . Thank you

Steve Fleishman: Okay. Great. Thank you.

Speaker #2: Thanks .

Speaker #11: Steve .

Vince Sorgi: Thanks, Steve.

Speaker #1: The next question comes from Angie Stravinsky with Seaport. Please go ahead.

Vince Sorgi: The next question comes from Angie Storozynski with Seaport. Please go ahead.

Operator: The next question comes from Angie Storozynski with Seaport. Please go ahead.

Speaker #13: Thank you. I wanted to ask about Pennsylvania. How are you on the regulated regulatory side? So, you have concluded your rate case.

Angie Storozynski: Thank you. I want to talk about Pennsylvania-

Vince Sorgi: Yeah, Angie.

Angie Storozynski: How are you on the regulatory side. You have concluded your rate case. You are not allowed to have another one until what? Middle of 2028 at least. Yeah. Just wondering-

Speaker #13: You are not allowed to have another one until , what , middle of 2028 , at least ? Newton . Yeah . And then just wondering , I mean , are you hoping to maybe rely more on , on the , the disc mechanism , you know , any ways to maybe reduce costs so that you don't have to file that rate case anywhere near that's eight , 29 timeframe .

Angie Storozynski: Are you hoping to maybe rely more on the DISC mechanism, any ways to maybe reduce costs so that you don't have to file that rate case anywhere near the 2028, 2029 timeframe?

Speaker #7: Yeah . Angie , you're exactly right on the settlement provisions , there's a two year stay out agreement that we will not increase base rates during that period , which extends through July 1st , 2028 .

Joseph P. Bergstein, Jr.: Yeah, Angie, you're exactly right on the settlement provisions. There's a two-year stay out agreement that we will not increase base rates during that period, which extends through 1 July 2028. We always look to maximize the time between rate cases, we've done that very effectively across all jurisdictions. As you know, in Pennsylvania, it was 10 years since our last rate case, prior to this one. I don't know that we can go another 10 years, but we'll certainly use that same discipline that we have. We've utilized the DISC extremely effectively over that time period, we look to continue to do so. We've also managed our costs very well, we continue to focus on that in that area as we've been, and will continue to be focused on affordability for customers.

Joe Bergstein: Yeah, Angie, you're exactly right on the settlement provisions. There's a two-year stay out agreement that we will not increase base rates during that period, which extends through 1 July 2028. We always look to maximize the time between rate cases, we've done that very effectively across all jurisdictions. As you know, in Pennsylvania, it was 10 years since our last rate case, prior to this one. I don't know that we can go another 10 years, but we'll certainly use that same discipline that we have. We've utilized the DISC extremely effectively over that time period, we look to continue to do so. We've also managed our costs very well, we continue to focus on that in that area as we've been, and will continue to be focused on affordability for customers.

Speaker #7: We always look to maximize the time between rate cases . And we've done that very effectively across all the jurisdictions . And as you know , in Pennsylvania , it was ten years since our last rate case prior to this one .

Speaker #7: I don't know that we can go another ten years, but we'll certainly use that same discipline that we have. We've utilized the discipline extremely effectively over that time period.

Speaker #7: And will look to continue to do so . We've also managed our costs very , very well , and we continue to to focus on that in that area .

Speaker #7: As we've been, and will continue to be, focused on affordability for customers. Our current LTIP plan, which is the capital that is eligible for the DISC, runs through 2027.

Joseph P. Bergstein, Jr.: Our current LTIP plan, which is the capital that is eligible for the DISC, runs through 2027. We'll be looking to file an updated five-year LTIP plan next year. Again, looking to maximize that and maximizing the use of the DISC mechanism. I think too early to tell as to when our next rate case would be, we are always looking to, as I said, maximize the time between cases.

Joe Bergstein: Our current LTIP plan, which is the capital that is eligible for the DISC, runs through 2027. We'll be looking to file an updated five-year LTIP plan next year. Again, looking to maximize that and maximizing the use of the DISC mechanism. I think too early to tell as to when our next rate case would be, we are always looking to, as I said, maximize the time between cases.

Speaker #7: So, we'll be looking to file an updated five-year plan next year. Again, looking to maximize that and maximize the use of the DISC mechanism.

Speaker #7: So I think too early to tell as to what our next rate case would would be . But but we are always looking to , as I said , maximize the time between cases .

Speaker #2: Yeah . And I would just add to that , Angie , you know , you've heard from our , our chair and our commission that they want to take a look at the disc mechanism where maybe , maybe have more formula based ROE setting in the mechanism , maybe provide some performance band around that base ROE .

Vince Sorgi: Yeah, I would just add to that, Angie. You've heard from our chair and our commission, that they want to take a look at the DISC mechanism where maybe have more formula-based ROE setting in the mechanism, maybe provide some performance band around that base ROE. The goal is really to provide a mechanism for the utilities to be able to stay out of base rate cases longer. We will certainly be engaging with our commission, obviously the other EDCs in the state and other stakeholders as we go through that process with the PUC. I think that could be encouraging as well. Depending on how that plays out, we'll have to factor that into our rate case timing.

Speaker #2: But the goal is really to provide a mechanism for the utilities to be able to stay out of base rate cases longer. And so we will certainly be engaging with our commission.

Speaker #2: Obviously , the the other edcs in the state and other stakeholders as we go through that process with with the PUC . But I think that could be encouraging as well .

Speaker #2: And so depending on on how that plays out , we'll have to factor that into our rate case timing . But I think all of that is boding well for our likely being able to stay out beyond just the two years that are in the , in the settlement

Vince Sorgi: I think all of that is boding well for our likely being able to stay out beyond just the two years that are in the settlement.

Speaker #13: Great . And then changing topics to the the data centers in the PPL zone . So , you know , the projects that you have already supported by ESAs are well above the , the current generation in the PPL zone .

Angie Storozynski: Great. Then changing topics to the data centers in the PPL zone. The projects that you have already supported by ESAs are well above the current excess generation in the PPL zone. I know that we're still waiting for the connect and manage filing, but I'm just wondering if there were to be forced curtailment in the future, supposedly in your zone that would be pretty much least likely, again, given excess generation capacity, but again it will be depleted. How do you see, do you think that this connect and manage could potentially actually give you a competitive advantage for other zones in PJM simply because again, the forced curtailment would be probably least likely in your zone.

Speaker #13: And I know that we're still waiting for the , the connected manage filing , but I'm just wondering , you know , if there were to be forced curtailment in the future , supposedly in your zone , that would be pretty much least likely again , given access capacity .

Speaker #13: But again , it will be depleted . So how do you see it ? Do you think that this could potentially actually give you a competitive advantage versus other zones in PJM ?

Speaker #13: Simply because, again, the force element would be probably least likely in your zone.

Speaker #11: Yeah .

Speaker #2: You cut out on us a little bit there , but I think what you were saying was just with the , with the generation length that we currently have , and then that being depleted by the , by the ESAs , the 11 gigs of ESAs , and of course , that continues to grow .

Vince Sorgi: Yeah, you cut out on us a little bit there, but I think what you were saying was just with the generation length that we currently have and then that being depleted by the ESAs, the 11 gigs of ESAs, and of course, that continues to grow. Yeah. I think it's one of the reasons why we have so much interest in the sites that we have in our joint venture, and we've been very strategic in accumulating the sites that we have. In order to qualify for BYOG now with the N, even under the new proposed rules, you don't have to be co-located to the load. The fact that we are very near the load creates a very competitive position for us as you think about PJM planning, interconnection studies, all of that, where the generation and the load are very tightly situated.

Speaker #2: Yeah. I mean, I think it's one of the reasons why we have so much interest in the sites that we have in our joint venture.

Speaker #2: And we've been very strategic in accumulating the sites that we have . So in order to qualify for by now , with the end , even under the new proposed rules , right , you don't have to be co-located to the load .

Speaker #2: But the fact that we are very near the load creates a very competitive position for us as , as you think about PJM planning , interconnection studies , all of that where the the generation and the load are very tightly situated .

Speaker #2: So , so that all bodes well . I would say for , for our territory and where we're siting or proposing to site all of this new generation , it really helps to strengthen the reliability of the grid overall .

Vince Sorgi: That all bodes well, I would say, for our territory and where we're proposing to site all of this new generation. It really helps to strengthen the reliability of the grid overall and then get back to that long position for generation coming from Pennsylvania, which, as you know, us and West Virginia are the two power generation sources for PJM. I think that, again, you cut out on me, but I think that's what you were asking, and I agree that our position within the state provides that advantage, a competitive advantage.

Speaker #2: And then , and then get back to that long position for generation coming from Pennsylvania , which , as you know , us in West Virginia are the two power generation sources for , for PJM .

Speaker #2: So I think that , again , you cut out on me , but I think that's what you were asking . And , and I agree that that our position within the state provides that advantage , a competitive advantage

Speaker #13: Great . Thank you

Angie Storozynski: Great. Thank you.

Speaker #2: Sure. Thanks, Angie.

Vince Sorgi: Sure. Thanks, Andy.

Speaker #1: The next question comes from Nick Almasri with Evercore ISI. Please go ahead.

Vince Sorgi: The next question comes from Nick Amichetti with Evercore ISI. Please go ahead.

Operator: The next question comes from Nick Amichetti with Evercore ISI. Please go ahead.

Speaker #2: Morning , Nick .

Vince Sorgi: Morning, Nick.

Speaker #14: Hey , Joe . It's Omikuji . But you know , vowels . We know how it goes . I wanted to quickly just kind of piggybacking on , on Steve's question before , just when we think about kind of those shorter lead time technologies as early as 2029 or 2030 , are those going to require a separate ESA or could they or are they going to be typically riding on the Ccgt contracts

Nick Amichetti: Hey. It's Amicucci, but vowels. We know how it goes. I wanted to ask quickly, just kind of piggybacking on Steve's question before, just when we think about those shorter lead time technologies as early as 2029 or 2030, are those going to require a separate ESSA, or are they going to be typically riding on the CCGT contracts?

Nick Amicucci: Hey. It's Amicucci, but vowels. We know how it goes. I wanted to ask quickly, just kind of piggybacking on Steve's question before, just when we think about those shorter lead time technologies as early as 2029 or 2030, are those going to require a separate ESSA, or are they going to be typically riding on the CCGT contracts?

Speaker #2: Yeah, no, the ESA contract is for generation to supply a data center, so it does not need to be limited to the CCGT.

Vince Sorgi: Yeah, no, the ESSA contract is for generation to supply a data center. It does not need to be limited to the CCGT. It will be whatever suite of assets that we ultimately agree with the hyperscaler for or the third-party data center developers, which are also now getting involved in the BYOG and then providing that full rack service to hyperscalers as one package. We're now seeing other entrants into the interest into the product offering. I will say, though, while the batteries are certainly the fastest to market, they're also the easiest for the hyperscalers to embed in their designs and may just make it part of the data center construction project.

Speaker #2: It will be whatever suite of of assets that we ultimately agree with . The , the Hyperscaler for or the third party data center developers , which are also now getting involved in the B , Y , and then providing that that full wrap service to , to hyperscalers as one package .

Speaker #2: So we're now seeing other , other entrants into , into the interest into the , into the product offering . I will say , though , while the batteries are certainly the fastest to market , they're also the easiest for the hyperscalers to embed in their designs and make , just make it part of the data center Construction projects .

Speaker #2: Part of the issue that we have with predicting how much will show up through '29 is I'm convinced there'll be batteries that are coming on system by 2029.

Vince Sorgi: Part of the issue that we have with predicting how much will show up to 2029 is I'm convinced there'll be batteries that are coming on system by 2029, but some of that could be owned directly by the hyperscalers as opposed to third-party generators like Invidium, if that makes sense.

Speaker #2: But some of that could be owned directly by the hyperscalers, as opposed to third-party generators like Nvidia, if that makes sense.

Speaker #14: Got it . Yeah . No , that makes perfect sense . Thanks , Vince . And then just really quickly too , on the on the two data centers that that began taking service within Pennsylvania in two .

Nick Amichetti: Got it. Yeah, no, that makes perfect sense. Thanks.

Nick Amicucci: Got it. Yeah, no, that makes perfect sense. Thanks.

Vince Sorgi: Great.

Nick Amichetti: Just really quickly, too, on the two data centers that began taking service within Pennsylvania in Q2. Has the LP-6 minimum demand billing started, or is there a ramp schedule associated with that, too, as those continue to come online?

Nick Amicucci: Just really quickly, too, on the two data centers that began taking service within Pennsylvania in Q2. Has the LP-6 minimum demand billing started, or is there a ramp schedule associated with that, too, as those continue to come online?

Speaker #14: Q does so has the LP six minimum demand billing started or is there kind of like a ramp schedule associated with that too , as those continue to come online ?

Speaker #2: Yeah . So that , that two gigs is not until 20 . That's the ramp through 2031 . So it's the , it's the , it's the smaller ramp that that's kicking in .

Vince Sorgi: Yeah. That two gigs is not until twenty That's the ramp through 2031.

Nick Amichetti: Right

Nick Amicucci: Right

Vince Sorgi: yeah, it's the smaller ramp that's kicking in now under the tariff, yeah.

Speaker #2: Now, under the tariff. Yet—

Nick Amichetti: Got it. Thanks, guys.

Nick Amicucci: Got it. Thanks, guys.

Speaker #14: Thanks , guys .

Speaker #2: Sure .

Vince Sorgi: Sure.

Speaker #1: Again , if you have a question , please press star then one the next question comes from Paul Patterson with Glenrock Associates . Please go ahead .

Vince Sorgi: Again, if you have a question, please press star then one. The next question comes from Paul Patterson with Glenrock Associates. Please go ahead.

Operator: Again, if you have a question, please press star then one. The next question comes from Paul Patterson with Glenrock Associates. Please go ahead.

Speaker #15: Hey , good morning Just a one question left here with Pennsylvania . I know we're on recess and stuff , but any , any any thoughts or or outlook about what we might see legislatively with respect to some of the legislation that's passed or anything , perhaps on the go .

Paul Patterson: Hey, good morning.

Vince Sorgi: Good morning.

Paul Patterson: Just one question left here. With Pennsylvania, I know we're on recess and stuff, but any thoughts or outlook about what we might see legislatively with respect to some of the legislation that's passed or anything perhaps. I mean, all the stuff that was happening this spring. I'm just wondering, have you heard anything over the summer here about what might happen in the next few months in Harrisburg?

Speaker #15: I mean , all the stuff that was happening this spring , I'm just wondering , have you heard anything over the summer here about what might happen in the next few months in Harrisburg

Speaker #2: Yeah . So there was quite a bit of activity prior to the budget being approved . As you're alluding to . Look , I would just say overall , as you can see from our pipeline alone , right , that there's tremendous data center interest in Pennsylvania and in particular , our zone .

Vince Sorgi: Yeah. There was quite a bit of activity prior to the budget being approved as you're alluding to. Look, I would just say overall, as you can see from our pipeline alone, that there's tremendous data center interest in Pennsylvania, and in particular, our zone. Look, for some of our local communities, these projects represent very material investments, which is good, but it also can overwhelm these local communities. I think what we're seeing, Paul, is just at the local level with the support of their elected officials. Right. Just this move to slow down a little bit so that they can effectively review the projects, update their zoning requirements as needed, but really just take some time to make sure that they're doing this the right way. That seems very reasonable to us.

Speaker #2: And look for some of our local communities , right ? These projects represent very material investments , which is good . But it also can overwhelm these local communities .

Speaker #2: And so I think what we're seeing , Paul , is just at the local level with the support of their elected officials , right ?

Speaker #2: Just this move to slow down a little bit so that they can effectively review the projects , update their zoning requirements as needed .

Speaker #2: But really , just , you know , just take some time to make sure that they're doing this the right way . And , and that seems very reasonable to us .

Speaker #2: And I think that's what you're seeing with some of the proposed legislation coming from some of our elected officials and while there was there was some litigation legislation advance in the House , you know , I would say that the state continues to remain supportive of this type of development in the sector .

Vince Sorgi: I think that's what you're seeing with some of the proposed legislation coming from some of our elected officials. While there was some legislation advanced in the House, I would say that the state continues to remain supportive of this type of development in the sector as long as our customers and our communities are protected. You're starting to see some of that legislation designed to ensure that those protections happen. I will say, I'm seeing a shift in the developers and how they're engaging with the local communities and putting together differentiated community benefit packages. Right. What one community might think is a benefit, another may not. Doing that kind of community by community engaging earlier, more transparently, I think all of that, while we wish it had happened from day one, we're starting to see the shifts in that.

Speaker #2: As long as our customers and our communities are protected . And so , you know , you're starting to see some of that legislation designed to to ensure that those protections happen .

Speaker #2: I will say I'm seeing a shift in the developers and how they're engaging with the local communities and putting together differentiated community benefit packages.

Speaker #2: Right . What what one community might think is a benefit , another may not . So doing that kind of community by community engaging earlier , more transparently , I think all of that , while we wish it had happened from day one , starting to see the shifts in that .

Speaker #2: And I know the folks are appreciating that level of transparency and really willingness to work and come up with a win-win for both the data center and for the community.

Vince Sorgi: I know the folks are appreciating that level of transparency and really willingness to work and come up with a win-win for both the data center and for the community. It's the same areas that you're hearing, right. It's the water, it's the land, it's the noise, it's power prices and power reliability, both of which we have well at hand. We will be, I would say, pushing that even further as we can build new generation under Invidium and just take some pressure off the supply-demand curve at the wholesale level. All of these things, I think, are moving us in a consistent direction with where some of this legislation, or at least the ideas behind some of this legislation, were coming from. Again, I don't think it's misplaced.

Speaker #2: And it's the same areas that that you're hearing , right ? It's the water , it's the land , it's the noise . It's power prices .

Speaker #2: And power reliability , both of which we have well at hand . And we will be , I would say , pushing that even further as we can build new generation under Nvidia and just take some some pressure off the supply demand curve at the wholesale level .

Speaker #2: But all of these things , I think are moving us in a consistent direction with where some of this legislation , or at least the ideas behind some of this legislation were coming from , again , I don't think it's misplaced .

Speaker #2: I don't think you're going to see , you know , moratoriums or we just can't add data centers in Pennsylvania . We just need to make sure that our our customers and our communities are protected as we do it .

Vince Sorgi: I don't think you're going to see moratoriums, or we just can't add data centers in Pennsylvania. We just need to make sure that our customers and our communities are protected as we do it. Again, I think all that's reasonable.

Speaker #2: And again, I think all that's reasonable.

Speaker #15: Okay . So when when you look at that's sort of on the wholesale side , do you think that sort of transfers this , this sort of constructive way of sort of putting some relief on , on the wholesale prices , that sort of translates to to some of this regulated generation legislation related generation , you know , related , excuse me , regulated utility legislation .

Paul Patterson: Okay. When you look at that on the wholesale side, do you think that transfers this constructive way of putting some relief on the wholesale prices that translates to some of this regulated generation legislation, regulated utility legislation? How do you see that impacting that? Do you think that's pretty much on ice as a result of what you're doing on the wholesale side, if you follow what I'm saying? Do I make sense?

Speaker #15: Do you see that ? Do you see that ? Do you see how do you see that impacting that ? Does that do you think that's pretty much sort of on on ice as a result of , of what you're doing on the wholesale side ?

Speaker #15: If you follow what I'm saying, do I make sense?

Speaker #2: Yeah , yeah , no , I do think I don't know if it's totally on ice . It is still part of the discussion , but I would say with all of the moving parts that we've been seeing at PJM and at Ferc The legislature is certainly , I would say , keyed into all of those moving parts .

Vince Sorgi: Yeah. No, I don't know if it's totally on ice. It is still part of the discussion, but I would say with all of the moving parts that we've been seeing at PJM and at FERC, the legislature is certainly, I would say, keyed into all of those moving parts and seeing if, in fact, that they will help address the resource adequacy concerns that we've been talking about. Again, we're a bit skeptical that the PJM FERC filing will in fact resolve that long term. We think the bilateral process is probably going to be the predominant way to get things built in PJM. I think the legislature needs to see that play out. Our governor needs to see that play out a little bit. While regulated generation, I wouldn't say that it's totally off the table.

Speaker #2: And seeing , you know , if in fact , that they will help address the resource adequacy concerns that we've been talking about .

Speaker #2: Again , we have we're a bit skeptical that the PJM , Ferc filing will , in fact , resolve that long term . And we think the Bilat process is probably going to be the predominant way to get get things built in PJM .

Speaker #2: But I think the legislature needs to see that play out. Our governor needs to see that play out a little bit.

Speaker #2: So while regulated generation , I wouldn't say that it's totally off the table . I think they want to see how some of these other things progress to see if they need to pull that lever or not .

Vince Sorgi: I think they want to see how some of these other things progress to see if they need to pull that lever or not. Of course, we continue to have regular discussions with them. This will play out as those bills are debated in their respective committees, and we'll see whether they come out of committee or not. There's been so much activity, as you know, at both FERC and PJM, that that legislation, I don't think, has been the highest priority for obvious reasons.

Speaker #2: And of course , we continue to have regular discussions with them . And this will this will play out as those bills are debated in their respective committees .

Speaker #2: And we'll see whether they come out of committee or not . But there's been so much activity , as you know , at both Ferc and PJM that that legislation , I don't think has been the highest priority for obvious reasons .

Speaker #15: Okay, great. I really appreciate it. Have a good weekend.

Paul Patterson: Okay, great. I really appreciate it. Have a good weekend.

Speaker #16: Sure .

Vince Sorgi: Sure. You, too.

Speaker #2: You too .

Speaker #1: This concludes our question-and-answer session. I would like to turn the conference back over to Vincent Sorgi for any closing remarks.

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

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

Speaker #2: Great . Thank you . Operator . So look , as we wrap up , the key takeaway from today is , you know , our investment case continues to get stronger .

Vince Sorgi: Great. Thank you, operator. Look, as we wrap up, the key takeaway from today is our investment case continues to get stronger. We're executing a strong base plan today while building additional strong growth opportunities for tomorrow. With continued regulatory execution and accelerating demand growth and the progress that we're making at Invidium Energy, we believe the upside is increasingly visible and remains incremental to the outlook that we've reaffirmed today. Thanks for joining us, and we look forward to seeing you soon.

Speaker #2: We're executing a strong base plan today while building additional strong growth opportunities for tomorrow. And with continued regulatory execution, accelerating demand growth, and the progress that we're making at PPL Energy, we believe the upside is increasingly visible and remains incremental to the outlook that we've reaffirmed today.

Speaker #2: Thanks for joining us, and we look forward to seeing you soon.

Vince Sorgi: The conference has concluded. Thank you for attending today's presentation. You may now disconnect.

Operator: The conference has concluded. Thank you for attending today's presentation. You may now disconnect.

Q2 2026 PPL Corp Earnings Call

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