We're Gonna Take It Slow, Just As Fast As We Can: Utilities Earnings Recap:

Research evidence excerpt

We're Gonna Take It Slow, Just As Fast As We Can: Utilities Earnings Recap:

h expectations to trend

toward the upper end of the range beginning in 2027. Regulatory execution remains a key pillar,

highlighted by a constructive settlement in Pennsylvania (first base rate case in over a decade),

including a two-year stay-out provision and affordability-focused outcomes (sub-4% bill impact),

supporting near-term earnings stability. Additional progress across jurisdictions, including ISR

approvals in Rhode Island (~$330M) and ongoing recovery mechanisms in Kentucky, continues

to reinforce visibility into cost recovery and returns. Strategically, we believe the most notable

development remains accelerating large-load demand, particularly in Pennsylvania, where the

data center pipeline has expanded to ~28.3 GW (with ~10 GW under ESAs and ~5 GW under

construction), providing a significant driver of incremental transmission and generation

investment over time. This demand is also driving momentum in the Blackstone JV, with

management highlighting increasing engagement from hyperscalers and progress on generation

development (including turbine reservations and interconnection activity), thereby positioning

PPL to capture incremental earnings through contracted generation solutions. At the same time,

Kentucky continues to see strong economic development activity (~12.9 GW pipeline),

supporting the potential need for incremental generation filings as early as 2026, while

management emphasized a disciplined approach to capital deployment and customer

protections across all jurisdictions.

Valuation Update: We maintain our Outperform rating, supported by a visible regulated growth

profile and upside optionality from data center demand and generation development. While near-