PPL Corp Reports Kentucky PSC Order Approving Rate Adjustments

What Happened
PPL Corporation filed an 8‑K disclosing that on August 14, 2026 the Kentucky Public Service Commission (KPSC) issued an order in Louisville Gas & Electric Company (LG&E) and Kentucky Utilities Company (KU) rehearing proceedings. The order approved certain rehearing requests (including treatment of regulatory assets/liabilities, updated cost estimates for the Pilot Generation Recovery Clause, and allowing pre‑2026 LG&E stay‑open costs for Mill Creek Unit 2 to be included in a regulatory asset) and denied other rehearing requests (including reinstatement of aspects of an October 2025 stipulation). PPL reaffirmed its previously disclosed long‑term earnings‑per‑share growth targets.

Key Details

• KPSC order date: August 14, 2026; revised rates effective for services on and after that date.
• Estimated revenue impact: ≈ $4 million of additional annual LG&E electricity & gas revenues and ≈ $3 million of additional annual KU electricity revenues (about $7M total) above amounts in the KPSC’s February 2026 order.
• Specific approvals: inclusion of certain regulatory assets/liabilities in rate base calculations; use of updated cost estimates in a potential recovery cap for the Pilot Generation Recovery Clause; allowing pre‑2026 LG&E Mill Creek Unit 2 stay‑open costs to be a regulatory asset.
• Specific denials: KPSC refused to reinstate other aspects of the October 2025 stipulation and recommendation sought by the Companies and some intervenors.

Why It Matters
The KPSC order modestly increases PPL’s regulated utility revenues (roughly $7M annually) relative to the February 2026 orders, which can support utility cash flow and earnings. The decisions on regulatory asset treatment and recovery mechanisms affect how and when certain costs are recovered from customers, which matters for future regulated revenue and rate stability. PPL’s reaffirmation of its long‑term EPS growth targets indicates management sees this outcome as consistent with its financial outlook, but the company noted that forward‑looking statements remain subject to regulatory, market, and other risks.