PPL: Signed, Sealed and Delivered! PA Rate Settlement Is Approved with VERY Narrow Modification

Research evidence excerpt

PPL: Signed, Sealed and Delivered! PA Rate Settlement Is Approved with VERY Narrow Modification

Equity Research

Flash Comment — June 4, 2026

Regulated Electric Utilities

PPL Corporation

Signed, Sealed and Delivered! PA Rate Settlement Is Overweight

Approved with VERY Narrow Modification Price Target: $43.00

Ticker PPL

Our Call Upside/(Downside) to Target 22.5%

PAPUC approved settlement. Don't Panic! The mod is too small to relitigate & we Price (06/04/2026) $35.09

don't think the ROE is 9.4%, as mentioned, our math ~high 9's. We wait for potential 52 Week Range $33.17 - 40.10

commentary from Shapiro, but less commentary the better. We caught up w/ the Market Cap (MM) $26,569

company.

Source: Company Data, Wells Fargo Securities estimates, and Factset.

NA = Not Available, NC = No Change, NE = No Estimate

Initial Thoughts Shahriar (Shar) Pourreza, CFA

This outcome is in line with our expectations of approval (see here), but the stock has Equity Analyst | Wells Fargo Securities, LLC

Shahriar.Pourreza@wellsfargo.com | 212-214-5422

reactive negatively with likely misconceptions. We see two possible reasons for the

reaction 1) the modification opens a 5- day window for intervenors to withdraw from the Constantine Lednev

settlement 2) Vice-Chair Barrow stated that the evidentiary record shows the settlement Equity Analyst | Wells Fargo Securities, LLC Constantine.Lednev@wellsfargo.com | 212-214-5438

to be based on a 9.4% ROE; we see the mod. as too small for an intervenor to withdraw

Alexander Calvertand re-litigate, and we see the ROE closer to 9.75-10%.

Associate Equity Analyst | Wells Fargo Securities, LLC

Alexander.J.Calvert@wellsfargo.com | 212-214-5434

The modification: There is NO modification to the $275M revenue increase in the Whitney Mutalemwa

settlement.