PPL Corp: 2Q Preview: Focus on Blackstone JV and Pennsylvania Developments

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PPL Corp: 2Q Preview: Focus on Blackstone JV and Pennsylvania Developments

Barclays | PPL Corp

ago. PPL's Pennsylvania electric distribution business represents roughly 20% of our 2026

consolidated rate base estimate for the company.

• Blackstone acquisition: Blackstone Credit & Insurance (BXCI) has agreed to acquire an

approximately 49% equity stake in Williams’ 2.6 GW portfolio of five behind-the-meter simple-

cycle generation projects that will serve a hyperscale data center customer. We see this

development as somewhat of a read-through to PPL's Blackstone JV, although we note that

the company's JV is with the Blackstone Infrastructure business and not the Credit &

Insurance one. The announced transaction highlights Blackstone’s growing focus on AI-driven

data center and power infrastructure investments.

• Blackstone JV update: The Blackstone JV continues to advance with strong hyperscaler

interest. The JV is securing turbine reservations, pipeline access to Marcellus gas, and

interconnection queue positions, with land under control. Projects will use long-term ESSAs

and deliver utility-like risk profiles, with returns expected above utility levels (not disclosed).

The JV is not in the base plan but represents incremental upside with potential

announcements in 2026.

• Pennsylvania HB2224: This proposed legislation includes a provision that would cap the

ROEs in the state at the 10-year Treasury yield plus 2%. The bill passed the House

unanimously in a 202-0 vote and was referred to the Senate Consumer Protection &

Professional Licensure Committee. While the $1.7 billion in electricity tax cuts may

have made the bill politically difficult to vote against on the House floor, the Republican-led