How much of a rate increase is being requested under the agreement?

The agreement proposes a revised aggregate increase in annual electricity and gas revenues of approximately $235 million, including $58 million and $132 million in electricity revenues at LG&E and KU, respectively, and $45 million in gas revenues at LG&E.

What return on equity does the agreement propose?

The agreement proposes a revised authorized return on equity of 9.90%.

When would the next base rate increase take effect?

Under the stay-out commitment, the companies would refrain from effective base rate increases before August 1, 2028, subject to certain exceptions.

Is the agreement final, and what happens to parties that did not join it?

The agreement, along with matters raised by non-agreeing intervenors, is subject to KPSC review and action, including approval, denial or modification. Parties that did not join the agreement retain the same opportunities as usual to participate in the regulatory process.

PPL/PPLC 8-K SEC Disclosure

01—Abstract

Summary

Summary of the 8-K filed October 20, 2025. Cited figures are marked; the original filing is the authoritative source.

PPL Corporation's regulated Kentucky utilities, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), filed a stipulation and recommendation with the Kentucky Public Service Commission (KPSC) on October 20, 2025.

The agreement, reached with a majority of intervenors, proposes a revised aggregate increase in annual electricity and gas revenues of approximately $235 million^a, comprising $58 million and $132 million in electricity revenues at LG&E and KU, respectively, and $45 million in gas revenues at LG&E. It also proposes a revised authorized return on equity of 9.90%. The agreement includes a stay-out commitment, under which the companies would not implement effective base rate increases before August 1, 2028, subject to certain exceptions.

It proposes two new rate trackers: a Generation Cost Recovery Adjustment Clause covering new generation and energy storage projects, including Mill Creek Unit 5, several solar and battery facilities, and E.W. Brown Unit 12 (subject to KPSC approval), and a Sharing Mechanism Adjustment Clause covering base rate deficiencies or surpluses during July 2027 through July 2028. The agreement also authorizes regulatory deferral accounting for certain expenses, including pension and post-retirement benefits, storm restoration and vegetation management.

The agreement and the positions of non-agreeing intervenors remain subject to KPSC review, including approval, denial or modification. A KPSC hearing is scheduled to begin November 3, 2025.

The companies anticipate a ruling in the fourth quarter of 2025, and the KPSC has until March 31, 2026 to issue its final order. The companies cannot predict the outcome.

02—Key points

Key Highlights

Proposed aggregate revenue increase of approximately $235 million: $58 million electricity and $45 million gas at LG&E, and $132 million electricity at KU.
Proposed revised authorized return on equity of 9.90%.
Stay-out commitment: no effective base rate increases before August 1, 2028, subject to certain exceptions.
New Generation Cost Recovery Adjustment Clause (GCR) to recover costs and return on investment for new generation and energy storage assets as they come into service, excluding fuel and excluding the proposed Mill Creek Unit 6 NGCC, which is under separate review in the 2025 CPCN proceeding.
New Sharing Mechanism Adjustment Clause (SM) addressing base rate deficiencies or surpluses relative to a 9.40% to 10.15% ROE band during July 2027 through July 2028, collected or returned over a thirteen-month billing period beginning November 2028.
Agreement authorizes regulatory deferral accounting for certain expenses, with recovery to be addressed in future rate cases.
KPSC hearing scheduled for November 3, 2025; ruling anticipated in Q4 2025 and final order due by March 31, 2026.

03—Questions

Frequently Asked Questions

How much of a rate increase is being requested under the agreement?
The agreement proposes a revised aggregate increase in annual electricity and gas revenues of approximately $235 million, including $58 million and $132 million in electricity revenues at LG&E and KU, respectively, and $45 million in gas revenues at LG&E.
What return on equity does the agreement propose?
The agreement proposes a revised authorized return on equity of 9.90%.
When would the next base rate increase take effect?
Under the stay-out commitment, the companies would refrain from effective base rate increases before August 1, 2028, subject to certain exceptions.
When will the Kentucky Public Service Commission decide on the case?
A KPSC hearing is scheduled to commence on November 3, 2025. The companies anticipate a ruling in the fourth quarter of 2025, and the KPSC has until March 31, 2026 to issue its final order. The companies cannot predict the outcome.
Is the agreement final, and what happens to parties that did not join it?
The agreement, along with matters raised by non-agreeing intervenors, is subject to KPSC review and action, including approval, denial or modification. Parties that did not join the agreement retain the same opportunities as usual to participate in the regulatory process.

04—Continue

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