Utility PPL Raises Capex Plan by Nearly 40% on Power Demand

PPL Corporation (NYSE: PPL), a large-cap, regulated U.S. utility, has announced an updated business plan that includes a significant increase in its capital expenditure (capex) plan. The company is raising its planned infrastructure investments to $20 billion from 2025 through 2028, up from the previous plan of $14.3 billion from 2024 to 2027. This increase of nearly 40% reflects PPL's commitment to driving growth and maintaining affordability for its customers in a changing energy landscape.

The increased capex plan is expected to result in 9.8% average annual rate base growth through 2028, up from 6.3% over the prior plan period. PPL is targeting $4.3 billion in infrastructure investments in 2025 alone. This significant investment in the company's future will support its strategy to create utilities of the future — stronger, smarter, increasingly clean, and built for growth and success in a changing energy landscape.



The increased capex plan aligns with PPL's long-term strategy to drive growth and maintain affordability for customers in several ways:

1. Grid Resilience and Modernization: The additional $2.5 billion in capital investments will strengthen grid resilience and advance the clean energy transition. This includes investments in critical infrastructure, grid modernization, digital transformation, and generation replacement in Kentucky. These investments will help PPL better withstand more frequent and severe storms, speed up restoration and recovery when outages occur, and improve overall service to customers.
2. Clean Energy Transition: The increased capex plan supports PPL's goal to achieve net-zero carbon emissions by 2050. The company plans to retire nearly 1,500 megawatts of aging coal generation in Kentucky by 2028, replacing it with cleaner energy sources such as natural gas, solar, and battery storage. This will help PPL meet its carbon emissions reduction targets of 67% from 2010 levels by 2030.
3. Efficiency and Affordability: PPL is increasing its targeted operations and maintenance (O&M) savings by $25 million to $175 million of annual O&M savings by 2026. The added savings will be driven largely by the company's transmission and distribution operations as PPL continues to deploy scalable technologies and data science. This focus on efficiency helps maintain affordable rates for customers while investing in the future.
4. Regulatory Lag Mitigation: Over 60% of PPL's capital investment plan is subject to "contemporaneous recovery," which reduces the impact of regulatory lag on earnings for investments. This allows the company to fund long-term projects more easily and maintain a strong balance sheet, supporting its growth strategy without equity issuances.

PPL's increased capex plan demonstrates the company's commitment to driving growth and maintaining affordability for customers in a changing energy landscape. By investing in critical infrastructure, grid modernization, and clean energy sources, PPL is well-positioned to deliver top-tier, sustainable growth through an affordable, clean energy future.