PPL Corp 8-K

What Happened

• On March 13, 2026 PPL Electric Utilities Corporation filed a joint petition with the Pennsylvania Public Utility Commission (PUC) reflecting a non‑unanimous settlement to resolve its base rate case. The Settlement, supported or not opposed by most intervenors (with limited objections from two parties on large net‑metering classifications), is expected to be decided by the PUC before the end of Q2 2026.
• If approved as proposed, the Settlement would authorize an annual electric base distribution revenue increase of approximately $275 million (vs. PPL Electric’s originally filed request of about $356 million). The Settlement is based on a fully projected future test year ending June 30, 2027, with new rates proposed to take effect for service on and after July 1, 2026. The Settlement does not set a return on equity or capital structure.

Key Details

• Proposed annual base distribution revenue increase: ≈ $275 million (filed request was ≈ $356 million).
• Proposed effective date for rates: July 1, 2026; test year ends June 30, 2027; PUC decision expected by end of Q2 2026.
• DSIC treatment: DSIC‑eligible capital rolled into base rates; DSIC reset to 0% on implementation and capped at 5.0% of annual distribution revenues; DSIC return based on PUC’s most recent equity return rate.
• Other material provisions: SDER (storm) expense set to $32M/year (up from $20M); capitalization of IT upgrades ≈ $54M (incl. AFUDC); new LP‑6 large‑load tariff framework that provides $11M for residential low‑income program; Low‑Income Usage Reduction Program budget increased by $1.5M (to $13.5M) starting Jan 1, 2027; waiver of reconnection fees for low‑income customers beginning July 1, 2027.

Why It Matters

• For investors, the Settlement could materially affect PPL Electric’s regulated revenue and near‑term cash flow: it reduces the company’s requested increase ($356M) to about $275M if approved as filed, but final outcomes depend on the PUC and could be modified.
• The DSIC reset and rolling eligible investments into base rates may shift the timing and composition of future distribution revenue and regulatory recoveries. Increased storm cost recovery and other rider adjustments aim to reduce earnings volatility from severe weather.
• The filing is regulatory in nature — not a guarantee of outcome. Timing and exact financial impact remain subject to PUC review, potential modifications, and implementation details in compliance filings.