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$PPL·8-K

PPL Corp · Mar 24, 5:05 PM ET

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PPL Corp 8-K

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PPL Corp Reports FERC ROE Order Affecting Rhode Island Energy

What Happened
PPL Corporation filed an 8-K on March 24, 2026 reporting a Federal Energy Regulatory Commission (FERC) order in Coakley v. Bangor Hydro-Elec. Co., EL11-66-001, et al. The Order adopts a new methodology for determining return on equity (ROE) for New England transmission owners (NETOs), sets the base ROE at 9.57% and a maximum ROE including incentives at 12.09%, and applies retroactively to October 16, 2014. The Order also directs refunds with interest for certain affected periods. The decision affects Rhode Island Energy (RIE), a wholly owned subsidiary of PPL. PPL and RIE are evaluating next steps, coordinating with other NETOs, and may appeal the Order.

Key Details

  • FERC docket: Coakley v. Bangor Hydro-Elec. Co., EL11-66-001, et al.
  • New base ROE: 9.57%; maximum including incentives: 12.09%; retroactive effective date: October 16, 2014.
  • FERC ordered refunds with interest for certain periods impacted by the decision.
  • Affected entity: Rhode Island Energy (RIE), a wholly owned PPL subsidiary; PPL is evaluating appeals/coordination with other NETOs.
  • PPL states it does not expect the potentially relevant components of the Order to have a material impact on its operations or financial condition and reaffirms 2026 EPS guidance of $1.90–$1.98 and an annual EPS growth target of 6%–8% (CAGR near the top end through at least 2029).

Why It Matters
The FERC Order could require refunds and change allowed ROEs for New England transmission owners, which directly affects RIE’s regulatory revenue and cash flows depending on refund amounts and final outcomes. PPL’s immediate view—per the 8-K—is that the Order’s components are not expected to be material to the company overall, and management has reaffirmed its 2026 guidance and multi-year growth targets. Investors should watch for follow-up filings (including any appeals, coordination with other NETOs, or details on refund amounts) that could change the financial impact. The filing also contains standard forward-looking statement cautions about risks and uncertainties.

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