PPL Corp: Rhode Island Energy Rate Case Decision Approves $137.8M

What Happened
PPL Corporation reported that on August 21, 2026 the Rhode Island Public Utilities Commission (RIPUC) approved oral motions in The Narragansett Electric Company d/b/a Rhode Island Energy’s (RIE) base distribution rate case (filed Nov 2025). The RIPUC authorized annual revenue increases of $44.1 million for electric and $93.7 million for gas, set a return on equity of 9.275% and a capital structure of 48% debt / 52% equity. RIE made the required compliance filing on August 27, 2026, and the approved rates will be effective September 1, 2026; a final written order is expected in the coming weeks.

Key Details

• Annual revenue increases: $44.1M (electric) and $93.7M (gas).
• Authorized return on equity: 9.275%; capital structure: 48% debt / 52% equity.
• RIPUC denied RIE’s originally proposed second rate year but left open future consideration; directed new tariff for extra-large electric loads by Dec 31, 2026.
• Hold Harmless Commitment: RIPUC approved an alternative that increases accelerated customer bill credits by ≈$11M, bringing total credits to ≈$170M; credits to be issued Oct 2026 through Sep 2027.
• RIE voluntarily accepted the RIPUC alternative on Aug 25, 2026; RIE and intervenors may appeal.

Why It Matters
These regulatory decisions directly affect RIE’s allowed revenue, returns and near-term cash flows and will influence PPL’s regulated utility earnings. PPL reaffirmed its 2026 ongoing EPS forecast and long‑term earnings growth targets despite the decision. Investors should note the timing: new rates effective Sept 1, 2026 and customer credits Oct 2026–Sep 2027, while the final written RIPUC order and any appeals could change outcomes.