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PPL · PPL

25 filings

10-K

PPL 10-K Annual Reports

PPL - 25 annual reports

Filing record · 2016–202610-K1110-Q328-K239

2025
PPL Annual Report, Year Ended Dec 31, 2025
PPL Corporation, a utility holding company headquartered in Allentown, Pennsylvania, reported 2025 net income of $1.181 billion, up from $888 million in 2024, and diluted EPS of $1.59 versus $1.20. Earnings from Ongoing Operations rose to $1.344 billion from $1.250 billion. Kentucky Regulated net income was $674 million, Pennsylvania Regulated $639 million and Rhode Island Regulated $85 million. Operating revenues increased to $9.042 billion from $8.462 billion, driven largely by higher PLR revenues at PPL Electric and RIE energy purchase recoveries. The company's capital program is large: projected capital expenditures total $17.35 billion for 2026 through 2028, and cash used in investing activities reached $4.004 billion in 2025 versus $2.818 billion in 2024. Long-term debt rose to $17.99 billion noncurrent at year-end, and PPL issued $3.045 billion of long-term debt during 2025. Pending regulatory matters are significant: PPL Electric requested a distribution base rate increase of about $356 million, LG&E and KU received KPSC orders on February 16, 2026 approving about $233 million of revenue increases at a 9.775% base ROE, and RIE requested about $181 million in its first year of a two-year plan. Investors should also note that a joint venture with Blackstone Infrastructure, in which PPL owns 51%, is developing data center generation, though no energy services agreements with hyperscalers had been signed as of the filing date. The company also cited ongoing wildfire, environmental and data center demand risks, and an EPA deregulatory initiative that could affect its coal-fired generation.
Feb 20, 2026
2024
PPL Annual Report, Year Ended Dec 31, 2024
PPL Corporation's 2024 combined Form 10-K, filed February 13, 2025, reports net income of $888 million for 2024, up from $740 million in 2023, and operating revenues of $8,462 million versus $8,312 million. Earnings from Ongoing Operations, a non-GAAP measure, rose to $1,250 million from $1,183 million. Growth was driven mainly by the Kentucky Regulated segment ($620 million net income), the Pennsylvania Regulated segment ($574 million) and the Rhode Island Regulated segment ($109 million), with weather-driven volume gains and higher recoveries offsetting lower PLR revenue at PPL Electric. Capital spending is the key investment theme. PPL projects total capital expenditures of $15.0 billion for 2025 through 2027, including $4.3 billion in 2025, $5.2 billion in 2026 and $5.5 billion in 2027. Long-term debt rose to $16.5 billion at year-end, and the company issued $1.9 billion of debt during 2024. Cash flow from operations was $2.34 billion. PPL declared a quarterly dividend of 27.25 cents per share on February 13, 2025, up from 25.75 cents. Key risks include regulatory outcomes, such as the pending KPSC decision on the Mill Creek Unit 1 retirement recovery and the PAPUC ruling on the DSIC cap waiver, along with environmental rules affecting coal-fired generation, Mill Creek Unit 5 construction (estimated at about $1.0 billion), and the pending RIPUC investigation into Rhode Island Energy's energy efficiency programs. The filing also notes a PPL Electric billing-issue settlement, which included a $1 million donation in place of a civil penalty.
Feb 13, 2025
2023
PPL Annual Report, Year Ended Dec 31, 2023
PPL Corporation reported 2023 net income of $740 million, up from $756 million in 2022 (which included $42 million from discontinued operations). Operating revenues rose to $8.31 billion from $7.90 billion, driven largely by the full-year inclusion of Rhode Island Energy (acquired May 25, 2022). Earnings from Ongoing Operations, a non-GAAP measure, increased to $1.183 billion from $1.041 billion. Net income for the period was reduced by special items totaling $443 million, including $99 million (after tax) in Talen litigation costs and $274 million in acquisition integration costs. Segment results show Kentucky Regulated net income of $552 million, Pennsylvania Regulated $519 million and Rhode Island Regulated $96 million, with Corporate and Other at a loss of $427 million. Interest expense rose to $666 million from $513 million. Operating cash flow was $1.758 billion, and capital expenditures are projected at $10.575 billion for 2024 through 2026. PPL declared a quarterly dividend of 25.75 cents per share on February 16, 2024, and the company settled the Talen litigation, paying Talen $115 million. The filing is a combined Form 10-K covering PPL Corporation, PPL Electric Utilities, Louisville Gas and Electric and Kentucky Utilities. Key regulatory items include a KPSC order approving a 640 MW natural gas combined cycle unit at Mill Creek and the retirement of two coal units, and an RIPUC approval for Rhode Island advanced metering deployment capped at about $153 million.
Feb 16, 2024
2022
PPL Annual Report, Year Ended Dec 31, 2022
PPL Corporation's 2022 combined Form 10-K, filed February 17, 2023, covers PPL and three subsidiaries: PPL Electric Utilities, Louisville Gas and Electric Company, and Kentucky Utilities Company. PPL reported 2022 net income of $756 million, compared with a net loss of $1,480 million in 2021, which included discontinued operations from the U.K. utility business sold in June 2021. Income from continuing operations rose to $714 million from $18 million, and PPL's Earnings from Ongoing Operations were $1,041 million versus $806 million. Operating revenues were $7,902 million, up from $5,783 million, largely due to the May 25, 2022 acquisition of Narragansett Electric (now Rhode Island Energy), which contributed $1,038 million of revenue and $1.59 billion of goodwill assigned across segments. The filing describes PPL as a utility holding company with three reportable segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The company projects capital expenditures of $8,517 million for 2023 through 2025, with the largest share in transmission, electric distribution, and generation. Total long-term debt was $13,243 million at year-end 2022, and the Acquisition was funded with the U.K. sale proceeds. Pending matters include a KPSC filing for two 621 MW natural gas combined-cycle units and retirement schedules for several coal units, a Talen-related adversary proceeding seeking recovery of about $900 million in alleged fraudulent transfers, and a Pennsylvania Public Utility Commission investigation into billing issues. For investors, the key points are the step-up in regulated earnings from the Rhode Island acquisition, the growing capital plan, and the legal and regulatory uncertainties noted in the filing, which management says it cannot predict.
Feb 17, 2023
2021
PPL Annual Report, Year Ended Dec 31, 2021
PPL Corporation's 2021 combined Form 10-K, filed February 18, 2022, reports consolidated net loss of $1.48 billion, or $(1.93) per basic share, driven by a $1.61 billion pre-tax loss on the sale of its U.K. utility business, completed June 14, 2021, which generated net proceeds of $10.4 billion. Income from continuing operations fell to $18 million from $640 million in 2020, largely due to a $395 million loss on extinguishment of debt, a $383 million U.K. tax-rate-change deferred tax expense, and higher interest expense. Earnings from Ongoing Operations, a non-GAAP measure, rose to $806 million from $774 million, with Kentucky Regulated at $465 million and Pennsylvania Regulated at $465 million. The company's regulated operations remain the core of the business. Kentucky Regulated net income was $468 million and Pennsylvania Regulated net income was $445 million. Operating revenues were $5.78 billion. The KPSC approved a rate increase of $207 million, effective July 1, 2021, with a four-year base-rate stay-out through July 1, 2025. A PPL Electric transmission ROE settlement reduced 2021 revenue by $78 million, with a base ROE of 9.90% stepping up to 10.00% from June 2023. PPL is reshaping its portfolio with a pending $3.8 billion acquisition of Narragansett Electric, funded by U.K. sale proceeds, with a Massachusetts appeal still pending. The company repurchased 34.8 million shares for $1.0 billion under a $3 billion authorization. Capital expenditures are projected at about $2.0 billion for 2022 and $3.7 to $4.2 billion for 2023 through 2024. Total long-term debt was $11.14 billion at year-end, down from $14.69 billion, after $3.88 billion of debt tender and redemption activity.
Feb 18, 2022
2020
PPL Annual Report, Year Ended Dec 31, 2020
PPL Corporation, along with its subsidiaries PPL Electric Utilities Corporation, LG&E and KU Energy LLC, Louisville Gas and Electric Company and Kentucky Utilities Company, filed this combined Form 10-K for the year ended December 31, 2020. PPL reported 2020 net income of $1.469 billion, down from $1.746 billion in 2019, and operating revenues of $7.607 billion versus $7.769 billion. Earnings from Ongoing Operations, a non-GAAP measure, were $1.847 billion compared with $1.806 billion in 2019. The decline in GAAP net income was driven largely by $341 million of after-tax special items at the U.K. Regulated segment, including a $216 million after-tax loss on foreign currency economic hedges and a $102 million charge from the U.K. tax rate change. The most significant strategic development is PPL's August 10, 2020 announcement that it initiated a formal process to sell its U.K. utility business (WPD). The filing states there can be no assurance of any specific outcome, and PPL is not providing future earnings guidance while the sale process is underway. The filing notes that cash flow analyses for the U.K. business exceeded its carrying value, but a change in the sale outcomes could lead to a future impairment. Operating cash flow was $2.746 billion in 2020, and capital expenditures are projected at $14.691 billion for 2021 through 2025. The U.S. regulated businesses are central to the outlook. In Kentucky, LG&E and KU requested a combined increase of about $331 million in electricity and gas revenues in November 2020, with a requested 10.0% return on equity and rates expected to take effect July 1, 2021 if approved. PPL Electric faces a FERC complaint challenging its transmission formula rate base return on equity of 11.18%, and revenue earned from May 21, 2020 may be subject to refund. The filing also reports that PPL's external credit facilities had approximately $3.2 billion of combined unused capacity at year end.
Feb 18, 2021
2019
PPL Annual Report, Year Ended Dec 31, 2019
PPL Corporation, a utility holding company headquartered in Allentown, Pennsylvania, reports 2019 net income attributable to PPL shareowners of $1,746 million, down from $1,827 million in 2018, and diluted EPS of $2.37 versus $2.58. Earnings from Ongoing Operations, a non-GAAP measure, rose to $1,806 million from $1,705 million. The company operates three regulated segments: U.K. Regulated (WPD, which generated $977 million of net income), Kentucky Regulated ($436 million) and Pennsylvania Regulated ($458 million). The filing states that approximately 56% of PPL's 2019 net income came from its U.K. businesses, so currency and Ofgem regulatory outcomes are central to the investment case. Operating revenues were $7,769 million in 2019 versus $7,785 million in 2018. Operating income was $2,840 million, and the company reported $1.1 billion of net proceeds from settling the remaining forward sale agreements in November 2019. Management projects higher net income in 2020, driven by higher base demand revenues and higher assumed GBP exchange rates in the U.K. and higher retail rates in Kentucky, partly offset by lower true-up mechanisms, lower pension income and higher interest expense. On February 14, 2020, PPL announced a quarterly dividend increase to 41.5 cents per share ($1.66 annualized). Key risks flagged in the filing include Brexit-related exposure to GBP weakness (90% of 2020 budgeted U.K. earnings hedged at $1.48 per GBP), uncertainty over RIIO-ED2 price control terms beginning April 2023, the Talen litigation over the 2014 distribution of PPL Montana proceeds, and environmental compliance costs for coal-fired generation in Kentucky. Capital expenditures are projected at $14.3 billion for 2020 through 2024.
Feb 14, 2020
2018
PPL Annual Report, Year Ended Dec 31, 2018
PPL Corporation's combined 2018 Form 10-K, filed February 14, 2019, reports net income attributable to PPL shareowners of $1.827 billion for 2018, up from $1.128 billion in 2017, and operating revenues of $7.785 billion. Earnings from Ongoing Operations, a non-GAAP measure, were $1.705 billion in 2018 versus $1.553 billion in 2017. The U.K. Regulated segment, operated through Western Power Distribution (WPD), produced $1.114 billion of net income in 2018, about 61% of PPL's total, while the Kentucky Regulated and Pennsylvania Regulated segments contributed $411 million and $431 million. Management projects lower 2019 net income than 2018, mainly because 2018 included favorable unrealized gains on foreign currency economic hedges, though it expects Ongoing Operations earnings to rise. The filing highlights significant uncertainty around Brexit, including the January 2019 rejection of the U.K. withdrawal agreement by Parliament and a default exit date of March 29, 2019. PPL reports that its foreign exchange exposure for 2019 budgeted earnings is 100% hedged at an average of $1.39 per GBP. The company also faces a major legal dispute: Talen Montana filed suits in October 2018 alleging that a November 2014 distribution of $733 million to PPL's subsidiaries rendered PPL Montana insolvent, and PPL states it believes it has meritorious defenses. Capital expenditure projections total $14.551 billion for 2019 through 2023, and the filing discloses that a 2018 forward equity sale and the at-the-market program provided additional equity funding. In the Kentucky and Pennsylvania regulated businesses, LG&E and KU filed a rate case in September 2018 seeking increases of approximately $112 million at KU and $35 million (electric) and $25 million (gas) at LG&E, with new rates expected May 1, 2019. Most revenue in the U.S. utilities was affected by Tax Cuts and Jobs Act refunds to customers. The company announced on February 14, 2019 that its quarterly dividend would increase to 41.25 cents per share.
Feb 14, 2019
2017
PPL Annual Report, Year Ended Dec 31, 2017
PPL Corporation (PPL) filed this combined Form 10-K on February 22, 2018, covering PPL and its subsidiaries PPL Electric Utilities Corporation, LG&E and KU Energy LLC, Louisville Gas and Electric Company, and Kentucky Utilities Company. PPL reported 2017 net income of $1,128 million, or $1.64 per diluted share, down from $1,902 million ($2.79 per diluted share) in 2016. Earnings from Ongoing Operations were $1,553 million, compared with $1,674 million in 2016. The decline was driven mainly by the U.K. Regulated segment, where net income fell to $652 million from $1,246 million, largely due to foreign currency exchange rates, unrealized losses on foreign currency economic hedges, and the impact of U.S. tax reform. Operating revenues were $7,447 million, and the company reported $41,479 million in total assets. The filing highlights the Tax Cuts and Jobs Act, which PPL says had a significant impact on 2017 results: the company recorded $321 million of income tax expense from the enactment, and regulatory liabilities at PPL rose by $2,185 million as a result. PPL expects cash flows at its domestic utilities to decline as the lower federal rate is passed to customers, and it plans to issue about $1 billion of equity in 2018 to help maintain its credit rating. On February 22, 2018, PPL announced an increase in its quarterly common stock dividend to 41.0 cents per share from 39.5 cents. PPL projects higher 2018 net income versus 2017, with the increase primarily in the U.K. Regulated and Pennsylvania Regulated segments. PPL's business is organized into three segments: U.K. Regulated (WPD's electricity distribution, with $2,091 million of 2017 revenues), Kentucky Regulated (LG&E and KU, $3,156 million), and Pennsylvania Regulated (PPL Electric, $2,195 million). The company forecasts $15,420 million of capital expenditures for 2018 through 2022. Key risks include U.K. withdrawal from the European Union, the Ofgem mid-period review of WPD's RIIO-ED1 price control, and the outcome of Kentucky and Pennsylvania rate proceedings related to the TCJA.
Feb 22, 2018
2016
PPL Annual Report, Year Ended Dec 31, 2016
PPL Corporation, a utility holding company, reported 2016 net income of $1.90 billion ($2.79 diluted EPS) on operating revenues of $7.52 billion, up from $682 million in 2015, which was depressed by an $879 million loss on the June 2015 spinoff of PPL Energy Supply (now Talen Energy). Earnings are now driven by three fully regulated segments: U.K. Regulated (WPD distribution, net income $1.25 billion), Kentucky Regulated (LG&E and KU, $398 million) and Pennsylvania Regulated (PPL Electric, $338 million). The U.K. segment accounted for 66% of 2016 net income, so the company's results depend heavily on the British pound. The filing describes the June 23, 2016 U.K. referendum to leave the EU and notes that PPL hedged 92% of 2017 budgeted GBP earnings at an average of $1.21 per GBP. Management projects lower 2017 net income, mainly from the lower assumed GBP rate and 2016 tax benefits that are not expected to recur. Capital spending is large: PPL projects $15.9 billion of capital expenditures for 2017 through 2021, including $8.8 billion for distribution facilities and $4.1 billion for transmission. Operating cash flow was $2.89 billion in 2016. Long-term debt was $18.3 billion at year-end, and the company's common dividend rose to 39.5 cents per quarter ($1.58 annualized) after the February 1, 2017 announcement. Pending matters include a rate case filed at LG&E and KU seeking about $103 million at KU and $94 million plus $14 million at LG&E, with a requested 10.23% return on equity and new rates expected July 1, 2017.
Feb 17, 2017
2015
PPL Annual Report, Year Ended Dec 31, 2015
PPL Corporation, together with PPL Electric Utilities Corporation, LG&E and KU Energy LLC, Louisville Gas and Electric Company and Kentucky Utilities Company, filed this combined Form 10-K for the fiscal year ended December 31, 2015. The defining event of the year was the June 1, 2015 spinoff of PPL Energy Supply, which formed Talen Energy; PPL recorded an $879 million loss on the spinoff and reported net income of $682 million for 2015, down from $1,737 million in 2014. PPL now describes itself as a fully regulated utility holding company with three segments: U.K. Regulated (WPD), Kentucky Regulated (LKE, LG&E, KU) and Pennsylvania Regulated (PPL Electric). Earnings from Ongoing Operations rose to $1,489 million from $1,349 million in 2014. The U.K. Regulated segment contributed $1,121 million of net income and began the eight-year RIIO-ED1 price control on April 1, 2015, which the filing says will keep earnings relatively flat from 2015 to 2017. The Kentucky and Pennsylvania segments are expected to drive higher earnings in 2016, supported by base rate increases and rate base growth. Capital expenditure plans total $16.4 billion for PPL over 2016 through 2020, including $1.9 billion of environmental spending at LKE. Key risks flagged include the ongoing EPA Clean Power Plan (stayed by the Supreme Court on February 9, 2016), the CCR rule that led to $228 million of ARO increases, sterling exposure from the U.K. business, and a $301 million LKE indemnification tied to the former WKE lease, where a counterparty has filed suit. PPL also announced a dividend increase to $1.52 per share annualized on February 4, 2016.
Feb 19, 2016
2014
PPL Annual Report, Year Ended Dec 31, 2014
PPL Corporation, an energy and utility holding company headquartered in Allentown, Pennsylvania, reported 2014 operating revenues of $11.50 billion and net income attributable to PPL shareowners of $1.74 billion, or $2.61 diluted EPS, up from $1.76 diluted EPS in 2013. Operating income rose to $3.27 billion from $2.28 billion, and the 2013 results included a $697 million charge for terminating the Colstrip operating lease. The U.K. Regulated segment contributed 57% of 2014 net income attributable to PPL shareowners, and PPL's management projects higher 2015 earnings excluding special items, with the U.K., Kentucky and Pennsylvania regulated businesses expected to drive the outlook. The most significant strategic development is the planned spinoff of PPL Energy Supply, which will be combined with RJS Power into Talen Energy, a new publicly traded company in which PPL shareowners will own 65%. The transaction is expected to close in the second quarter of 2015 and is subject to conditions including regulatory approvals and at least $1 billion of undrawn credit capacity. Following the spinoff, PPL will focus on its regulated utilities and expects to reduce annual ongoing corporate support costs by approximately $75 million. Other items investors should note include the $900 million cash sale of 633 MW of Montana hydroelectric facilities in November 2014, the $2.4 billion environmental capital expenditure forecast for 2015-2019, and a $19.1 billion total construction expenditure plan for 2015-2019. The filing also highlights risks including PPL Energy Supply's below-investment-grade credit rating after 2014 downgrades, exposure to U.K. currency translation and Ofgem regulation, low wholesale energy and capacity prices, and pending environmental rules such as MATS, CCR and carbon regulations. Long-term debt was $20.39 billion at year-end 2014, and cash and cash equivalents were $1.75 billion.
Feb 23, 2015
2013
PPL Annual Report, Year Ended Dec 31, 2013
PPL Corporation, an energy and utility holding company headquartered in Allentown, Pennsylvania, reported 2013 operating revenues of $11.86 billion and net income attributable to PPL shareowners of $1.13 billion, compared with $1.53 billion in 2012. Diluted EPS was $1.76, down from $2.60 in 2012. The filing attributes the decline mainly to a $697 million pre-tax ($413 million after-tax) charge for terminating the Colstrip operating lease ahead of the planned sale of Montana hydroelectric facilities, along with lower baseload energy prices at the Supply segment. Excluding special items, the filing projects lower earnings in 2014 than 2013, with the U.K. Regulated segment roughly flat and Pennsylvania Regulated higher. The U.K. Regulated segment, operated through Western Power Distribution, contributed $922 million of net income, or 82% of the total for 2013 per the filing, and the filing says PPL projects nearly all of its 2014 earnings will come from rate-regulated businesses. Kentucky Regulated net income rose to $307 million and Pennsylvania Regulated to $209 million, while the Supply segment swung to a loss of $272 million. Total 2014-2018 capital expenditure projections are $19.1 billion, including $2.4 billion of environmental spending. The filing also covers a pending $900 million sale of 633 MW of Montana hydroelectric facilities to NorthWestern, expected to close no earlier than the second half of 2014, and U.K. distribution revenue reductions of £5 per residential customer. Quarterly dividends were $0.3675 per share in 2013, and the board declared $0.3725 for April 2014.
Feb 24, 2014
2012
PPL Annual Report, Year Ended Dec 31, 2012
PPL Corporation's combined 2012 Form 10-K, filed with five subsidiary registrants, reports operating revenues of $12.3 billion, operating income of $3.1 billion and net income attributable to PPL shareowners of $1.53 billion, or $2.60 diluted EPS. The filing states that about 56% of operating revenues came from regulated businesses and about 71% of assets and 73% of net income came from regulated businesses. Earnings rose 2% over 2011, driven by the 2010 LKE and 2011 WPD Midlands acquisitions, while Supply segment net income fell to $414 million from $776 million. The filing states that Supply segment earnings declined because of depressed wholesale power and gas prices and a shift from coal-fired to combined-cycle gas generation, with Pennsylvania coal plant utilization falling to 69% in 2012 from 87% in 2009-2011. PPL Energy Supply recorded $29 million of pre-tax coal contract modification charges. The company projects higher 2013 earnings excluding special items for the Kentucky and Pennsylvania regulated segments and lower earnings for the Supply segment. Capital expenditures are projected at about $18.5 billion for 2013-2017, with environmental spending of $750 million in 2013 at the consolidated level. The filing also discloses the outstanding IRS case on the U.K. Windfall Profits Tax, which the U.S. Supreme Court agreed to review, and a 2013 dividend increase to $1.47 per share annualized.
Feb 28, 2013
2011
PPL Annual Report, Year Ended Dec 31, 2011
PPL Corporation, headquartered in Allentown, Pennsylvania, is an energy and utility holding company that generates electricity, markets wholesale and retail energy, and delivers electricity to customers in Pennsylvania, Kentucky, Virginia, Tennessee and the U.K., and natural gas in Kentucky. In 2011 it completed two acquisitions: WPD Midlands, acquired April 1, 2011 for cash consideration of $5.8 billion, and LG&E and KU Energy LLC (LKE), acquired November 1, 2010 for cash of $6.8 billion. At December 31, 2011, PPL reported $12.7 billion in operating revenues, about 10.5 million end-users, approximately 19,000 MW of generation and approximately 18,000 full-time employees. The filing states that approximately 70% of PPL's assets are now in regulated businesses following the acquisitions. Net income attributable to PPL Corporation was $1.5 billion in 2011, compared with $938 million in 2010 and $407 million in 2009, and diluted EPS was $2.70 versus $2.17 in 2010. Operating income rose to $3.1 billion from $1.9 billion. Operating cash flow was $2.5 billion, and capital expenditure projections for 2012 through 2016 total approximately $18.7 billion. The company declared an increase in its annualized dividend to $1.44 per share in February 2012, from $1.40. Key items in the year included a $39 million expense from an adverse U.S. Court of Appeals ruling on U.K. Windfall Profits Tax creditability, a $63 million after-tax impact from turbine blade replacements at the Susquehanna nuclear plant, and a reversal of an $89 million Montana hydroelectric litigation loss accrual after a February 2012 U.S. Supreme Court decision. The filing also covers the combined reporting of PPL Energy Supply, PPL Electric Utilities, LKE, Louisville Gas and Electric and Kentucky Utilities. Energy Supply net income was $768 million in 2011, Pennsylvania-regulated PPL Electric net income available to PPL was $173 million, and environmental capital requirements for LG&E and KU include projected expenditures of about $3.1 billion over the next five years. Pending items include the Ironwood facility acquisition agreed in February 2012 for cash of $87 million plus assumption of about $217 million of net project debt.
Feb 28, 2012
2010
PPL Annual Report, Year Ended Dec 31, 2010
PPL Corporation, headquartered in Allentown, PA, is an energy and utility holding company. Its 2010 results were shaped by the November 1, 2010 acquisition of E.ON U.S. LLC, renamed LG&E and KU Energy LLC (LKE), for approximately $7.6 billion including debt assumed through consolidation. PPL states that the acquisition increases the regulated portion of its business and that it projects 50% of 2011 net income will come from regulated businesses, with the remainder from competitive supply businesses. PPL reported 2010 net income attributable to PPL Corporation of $1,288 million and diluted EPS of $2.17, compared with $1.08 in 2009, and operating revenues of $8,521 million, up from $7,449 million. LKE contributed only two months of results in 2010. The filing reports that the expiration of Pennsylvania generation rate caps and a long-term PLR supply contract at the end of 2009 had a significant positive effect on 2010 unregulated gross energy margins, which PPL states increased over $600 million after tax. PPL expects lower Supply segment earnings in 2011 due to lower energy and capacity prices in the East, higher fuel costs and higher operation and maintenance expense, while Pennsylvania Regulated earnings are expected to rise on a $77.5 million distribution rate increase effective January 1, 2011. Financing was substantial: PPL issued 103.5 million common shares and $1.15 billion of Equity Units in June 2010, and net cash used in investing activities was $8,229 million, primarily for the LKE acquisition. Total assets rose to $32,837 million from $22,165 million. Key risks disclosed include a pending IRS appeal of the Tax Court's Windfall Profits Tax ruling, a Montana hydroelectric streambed litigation charge of $56 million pre-tax in the first quarter of 2010, an FERC challenge to PJM capacity pricing, a new New Jersey capacity law that PPL says may depress PJM capacity prices, and environmental rules on air, coal combustion residuals and greenhouse gases whose capital costs could be significant. The Trimble County Unit 2 construction contract remains subject to unresolved contractor claims, and PPL states it cannot estimate the ultimate outcome.
Feb 28, 2011
2009
PPL Annual Report, Year Ended Dec 31, 2009
PPL Corporation, an energy and utility holding company headquartered in Allentown, Pennsylvania, reported 2009 net income attributable to PPL of $407 million, or $1.08 per diluted share, down from $930 million ($2.47) in 2008. Operating revenues were $7.556 billion versus $8.007 billion in 2008, and operating income fell to $961 million from $1.793 billion. The filing attributes much of the decline to special items, including a $476 million after-tax swing in energy-related economic activity tied to hedge-effectiveness failures, and to lower domestic gross energy margins. Income from continuing operations attributable to PPL was $447 million, compared with $907 million a year earlier. The company's three segments are Supply, International Delivery (WPD in the U.K.) and Pennsylvania Delivery (PPL Electric). Supply net income attributable to PPL fell to $40 million from $479 million, while International Delivery earned $243 million and Pennsylvania Delivery earned $124 million. PPL Electric's transition period and its supply contracts with PPL EnergyPlus expired at the end of 2009; beginning January 1, 2010, its generation rates are no longer capped and are set through competitive solicitation, with the filing stating the average residential customer will pay approximately 30% more. The filing also notes that PPL Electric expected to file a distribution rate request with the PUC in late March 2010, and that Ofgem allowed WPD an average annual revenue increase of 6.9% for April 2010 through March 2015. Financially, PPL reported cash and cash equivalents of $801 million at year-end 2009, net cash from operating activities of $1.852 billion, and total capital expenditures of $1.265 billion. Ratings outlooks were negative at Moody's and S&P for PPL and PPL Electric, and the company planned to issue up to $300 million and £400 million of long-term debt in 2010 while paying a $1.38 annualized common dividend.
Feb 26, 2010
2008
PPL Annual Report, Year Ended Dec 31, 2008
PPL Corporation, an energy and utility holding company headquartered in Allentown, PA, reported 2008 net income of $930 million, or $2.47 diluted EPS, compared with $1,288 million in 2007 and $865 million in 2006. Operating revenues were $8,044 million in 2008, up from $6,498 million in 2007. The filing attributes the earnings decline largely to lower net energy trading margins and lower Eastern U.S. non-trading margins, partly offset by Pennsylvania Delivery and special items. Income in 2007 was boosted by the sale of Latin American businesses, which generated gains in discontinued operations. The company's central investor concern is the expiration at the end of 2009 of the full-requirements PLR contracts between PPL EnergyPlus and PPL Electric, which supply PPL Electric's default customers at capped rates. The filing states that PPL Electric's post-2009 supply cost recovery is uncertain, that Pennsylvania legislators have introduced bills to extend rate caps, and that the Governor has called for a phase-in of price increases. The filing says such legislation could cause PPL Electric substantial operating losses and cash flow shortfalls. Management also reports that a 2009 outlook projects higher Supply segment earnings and lower Pennsylvania Delivery and International Delivery earnings. Balance sheet and liquidity items include total assets of $21,405 million, long-term debt of $7,838 million, and cash and cash equivalents of $1,100 million at year-end 2008. S&P revised the outlook on PPL and PPL Energy Supply to negative in January 2009. The filing reports that capital expenditures are projected at about $8.1 billion for 2009 through 2013, and that PPL announced in February 2009 a cost reduction initiative eliminating roughly 200 management and staff positions.
Feb 27, 2009
2007
PPL Annual Report, Year Ended Dec 31, 2007
PPL Corporation, headquartered in Allentown, PA, is an energy and utility holding company that generates electricity in the northeastern and western U.S. and delivers electricity to approximately 4 million customers in Pennsylvania and the U.K. Net income rose to $1.288 billion in 2007 from $865 million in 2006, and diluted EPS was $3.35 versus $2.24, with income from discontinued operations of $275 million reflecting the sales of its Latin American businesses. The company sold its El Salvadoran, Bolivian and Chilean businesses and its domestic telecommunications operations in 2007, and announced plans to sell its natural gas distribution and propane businesses in the second half of 2008. Segment net income was $568 million for Supply, $610 million for International Delivery and $110 million for Pennsylvania Delivery. The filing highlights regulatory uncertainty for PPL Electric after its capped-rate PLR contracts with PPL EnergyPlus expire at the end of 2009. PPL Electric has contracted one-third of its expected 2010 supply through competitive solicitations, and the filing states that an average residential bill in 2010 would rise about 34.5% over 2009 levels if recent prices held. Pennsylvania legislators have proposed extending rate caps, which PPL says could cause severe financial impacts. Capital expenditure projections for 2008 through 2012 total approximately $7.5 billion, largely for pollution control equipment and transmission. The company repurchased 14,929,892 shares for $712 million under a $750 million program authorized in June 2007, and it expects to repurchase additional shares beginning in 2009. Quarterly common dividends increased to 30.5 cents in 2007 and to 33.5 cents effective April 1, 2008. Credit ratings were stable at all major rating agencies, with PPL Corporation's issuer rating at Baa2 from Moody's and BBB from S&P and Fitch at year-end 2007.
Feb 29, 2008
2006
PPL Annual Report, Year Ended Dec 31, 2006
PPL Corporation, headquartered in Allentown, PA, is an energy and utility holding company whose 2006 Form 10-K reports consolidated net income of $865 million, or $2.24 diluted EPS, up from $678 million in 2005, on operating revenues of $6.90 billion. Its three reportable segments are Supply (domestic generation and marketing, with 11,556 MW of generating capacity), International Delivery (electricity distribution in the U.K., Chile, El Salvador and Bolivia), and Pennsylvania Delivery (regulated delivery by PPL Electric and gas utility PPL Gas Utilities). Supply segment net income rose to $416 million, International Delivery to $268 million and Pennsylvania Delivery to $181 million. The filing highlights a large capital program: total capital expenditures are projected at about $6.8 billion for 2007 through 2011, with environmental spending (mainly sulfur dioxide scrubbers) of $612 million planned for 2007 alone. Management expects significantly higher Supply segment earnings in 2007 from replacing expiring fixed-price PLR supply obligations with higher-margin contracts, while International Delivery earnings are projected to decline and Pennsylvania Delivery earnings are expected to be flat. PPL also plans to file a distribution rate request in March 2007 and says customer rates for PLR supply could rise about 20% in 2010 at current forward prices. Key risks include the expiration of PPL Electric's capped PLR contracts after 2009, pending Pennsylvania PUC rules and proposed legislation, commodity price and counterparty exposure, environmental and nuclear regulation, and the phase-out of synthetic fuel tax credits. Liquidity appears adequate, with $3.4 billion of committed credit facilities and $1.15 billion of cash and short-term investments at year-end 2006, while PPL plans to issue up to $1.1 billion of long-term debt in 2007 and expects to begin repurchasing common stock in 2009.
Feb 28, 2007
2005
PPL Annual Report, Year Ended Dec 31, 2005
PPL Corporation, headquartered in Allentown, PA, is an energy and utility holding company whose 2005 Form 10-K was filed March 3, 2006 jointly with PPL Energy Supply, LLC and PPL Electric Utilities Corporation. PPL reported 2005 net income of $678 million (diluted EPS $1.77), down from $698 million ($1.89) in 2004, on operating revenues of $6,219 million. The decline was driven by unusual items including the $47 million after-tax loss on the sale of the Sundance plant, a $31 million after-tax charge for the Martins Creek ash basin leak, and a $27 million after-tax PJM billing dispute charge at PPL Electric. Segment results show Supply net income falling to $311 million from $421 million, while International Delivery rose to $215 million and Pennsylvania Delivery rose to $152 million from $80 million. PPL's capital expenditure plan totals about $5.8 billion for 2006-2010, with environmental spending (largely sulfur dioxide scrubbers) of $1.5 billion through 2010 cited in the filing. Cash from operations was $1,388 million in 2005, and the company expects to issue about $1.1 billion of long-term debt and $250 million of preferred securities in 2006. Dividends declared rose to $0.96 per share in 2005, and management announced a further increase to $1.10 per annum in February 2006, with plans to repurchase common stock beginning in 2009. Investors should note the significant exposure in the Supply segment to wholesale power prices, the PLR contracts that cap rates for PPL Electric's customers through 2009 (with PPL EnergyPlus' collateral position about $4.2 billion in favor of PPL Electric), the phase-out risk for synthetic fuel tax credits tied to crude oil prices, and multiple pending legal and regulatory matters including the Montana Power shareholder litigation and FERC review of PPL Montana's market-based rate authority.
Mar 3, 2006
2004
PPL Annual Report, Year Ended Dec 31, 2004
PPL Corporation, an energy and utility holding company headquartered in Allentown, PA, reported 2004 net income of $698 million, or $3.77 per diluted share, compared with $734 million in 2003. Operating revenues rose to $5.812 billion from $5.596 billion. Income from continuing operations was $700 million. Results were affected by unusual items, including a $22 million tax benefit tied to a reduction in stranded-cost securitization tax reserves and a $63 million after-tax ARO accounting gain in 2003. The company operates through three segments: Supply (generation and marketing, with 12,274 MW of capacity), Delivery (PPL Electric, which serves about 1.4 million customers in Pennsylvania), and International (WPD in the U.K. and distribution companies in Chile, El Salvador and Bolivia). Key risks and developments disclosed include a PUC-approved distribution rate increase of about $194 million effective January 1, 2005, rising pension costs (about $22 million after tax expected in 2005), and the expiration of PPL Electric's rate cap at the end of 2004. PPL Electric's provider-of-last-resort supply obligation is capped through 2009. PPL also faces numerous legal and regulatory matters, including Montana litigation, California refund proceedings, and PJM-related claims. In January 2005, Fitch downgraded the WPD companies by one notch, citing high pension-adjusted leverage. The Board adopted a dividend policy in December 2004 to grow the dividend faster than earnings per share from ongoing operations, until the payout ratio reaches 50%. The February 2005 dividend increase to $1.84 per share annualized was also announced. The filing is a combined report covering PPL Corporation, PPL Energy Supply, LLC and PPL Electric Utilities Corporation. Its figures show the company's continued capital investment, with projected 2005-2009 capital expenditures of about $5.0 billion, and continued reliance on long-term contracts to cover about 83% of expected generation output.
Mar 1, 2005
2003
PPL Annual Report, Year Ended Dec 31, 2003
PPL Corporation, an energy and utility holding company, reports that for 2003 it generated net income of $734 million (EPS diluted $4.24), up from $208 million in 2002, on operating revenues of $5.587 billion. Results were lifted by unusual items, including a $63 million after-tax cumulative effect from adopting SFAS 143 and the complete ownership of WPD, and were affected by a $27 million after-tax charge for FIN 46 consolidation. Operating income rose to $1.340 billion from $1.246 billion. Net cash provided by operating activities was $1.340 billion. Total assets were $17.123 billion, long-term debt $7.859 billion, and shareowners' common equity $3.259 billion. The company operates three segments (Supply, Delivery and International). Its Supply segment includes 11,527 MW of generation capacity, and PPL Electric provides delivery service to about 1.3 million customers in Pennsylvania. The International segment includes WPD in the U.K. and distribution companies in Chile, El Salvador and Bolivia. PPL expects to file a distribution rate increase request with the PUC in March 2004, with new rates effective January 2005 when the rate cap expires. Credit ratings were downgraded by Moody's in May 2003 and S&P has a negative outlook on several entities. The filing also discloses material legal and regulatory matters, including the NorthWestern Corporation litigation, a Montana Hydroelectric lawsuit, California and western markets proceedings, PJM capacity transaction complaints, and a DOE spent-fuel suit filed January 22, 2004. Management states it cannot predict the outcome of these matters, some of which may be material.
Mar 1, 2004
2002
PPL Annual Report, Year Ended Dec 31, 2002
PPL Corporation, an energy and utility holding company, reports 2002 net income of $208 million, or $1.36 diluted EPS, compared with $179 million in 2001, while income from core operations was $541 million ($3.54 diluted EPS) versus $620 million in 2001. Operating revenues rose to $5.43 billion from $5.08 billion, driven largely by the September 2002 acquisition of a controlling interest in Western Power Distribution (WPD), the U.K. distribution business, for about $236 million. Results were pressured by lower wholesale energy prices in the East and West, a $150 million goodwill impairment from adopting SFAS 142, a $100 million CEMAR (Brazil) impairment, and a $75 million workforce reduction charge. The filing shows PPL deconsolidated its Brazilian CEMAR investment after ANEEL assumed control in August 2002. Balance sheet growth was substantial: total assets rose to $15.57 billion from $12.56 billion, largely from consolidating WPD, and short-term debt increased to $943 million. Net cash from operations was $796 million, and capital expenditure projections for 2003-2007 total about $3.7 billion, with the company stating that capital needs are expected to decrease significantly in 2003. The company also raised its quarterly dividend to 38.5 cents per share from 36 cents. Management flags material uncertainty from the low wholesale energy price environment, a possible impairment of new gas-fired generation assets, and pending litigation including PJM capacity-market investigations, the Montana Power shareholder suit, and the Lower Mt. Bethel project appeals. S&P lowered PPL's corporate credit rating to BBB from BBB+ in May 2002 and revised its outlook to negative in September 2002, citing declining wholesale power prices and setbacks in international operations, particularly Brazil.
Mar 3, 2003
1996
PPL Annual Report, Year Ended Dec 31, 1996
PP&L Resources, Inc. (filed under this name; the registrant also includes Pennsylvania Power & Light Company, PP&L) reported 1996 earnings of $2.05 per share, unchanged from 1995 and up from $1.41 in 1994. Excluding workforce reductions and one-time adjustments, earnings per share were $2.05 in 1996 versus $1.79 in 1995 and $2.02 in 1994. Operating revenues rose $158 million, or 5.8%, to $2,910 million, driven by the 3.8% base rate increase from the September 1995 PUC Decision, stronger sales across customer classes, and sales to other utilities, including a one-year contract to supply PSE&G. Net income was $329 million. PP&L is the principal subsidiary, accounting for about 97% of consolidated assets, so its results drive the parent's results. The filing's main forward-looking issue is the restructuring of Pennsylvania's electric industry, enacted in December 1996 and effective January 1, 1997. It introduces retail customer choice phased in from 1999 to 2001, rate caps for at least 4-1/2 years on transmission and distribution and up to 9 years on generation, and the possibility of recovering stranded costs through transition bonds. PP&L plans to file its restructuring plan on April 1, 1997, and says it cannot yet predict the legislation's ultimate effect on its finances. The filing also notes that reduced contractual bulk power sales to JCP&L and other major utilities will continue to weigh on earnings over the next few years. On the balance sheet, total assets were $9,636 million and long-term debt was $2,832 million at year-end 1996. The company reported a 12.30% return on average common equity, down from 12.81% in 1995, and planned construction and capital expenditures of about $1.7 billion for 1997-2001. Investments in unregulated subsidiary PMDC include a 25% interest in SWEB, the British regional electric utility, acquired for about $189 million, and a planned purchase of a 25.05% interest in Chile's Empresas Emel for about $120 million in mid-1997. Environmental and Superfund exposures are significant, and several legal proceedings are pending, though most are described as not expected to be material.
Feb 28, 1997