Looking for Rate Case Clarity in PA Today

Research evidence excerpt

Looking for Rate Case Clarity in PA Today

June 4, 2026 PPL Corporation

(PPL, Buy, $45 PT)UTILITIES Alex Kania

Looking for Rate Case Clarity in PA Today (212) 527-3572 akania@btig.com

Will Paterno WHAT YOU SHOULD KNOW: PUC decision expected today on PPL's PA rate case. PPL's (332) 400-5158 wpaterno@btig.com

PA rate case settlement is set to be considered by the PA PUC (and hopefully voted

Julia MessinaEQUITY on) at its public meeting this morning. Notwithstanding Governor Shapiro's recent

(212) 588-6563 jmessina@btig.com request to change rate case processes in future rate cases (see our notes here and

here), this settlement has the support of almost all intervenors in the case including Company Data

the Office of the Consumer Advocate and the PUC Staff. There is no opposition and Closing Price $35.02

only two intervenors did not sign on. Further, ALJ recommended that the PUC approve Price Target $45.00

the settlement without modification (see our note here). If approved, the settlement Market Cap (M) 27,515.21RESEARCH would mean a ~4% average residential bill increase. Approval would be a positive for Enterprise Value (M) $46,402.10

PPL, resolving its largest regulatory hurdle and allowing investor attention to turn to Shares Out (M) 785.70

its core growth story in PA/KY and the generation JV. We remain Buy on shares of PPL.

Avg Daily Vol-3 Months (M) 7.96

■ Reminder of settlement terms. As a reminder, the settlement includes an increase Dividend / Yield $1.15 / 3.3%

to annual base rate distribution revenues of ~$275mn (compared to PPL's initial ask

of ~$356mn) and at least a two-year stay-out. The settlement is silent with regard EPS (Adjusted)

to ROE and capital structure. The settlement also includes the creation of a new FY Dec 2025A 2026E 2027E