01—Abstract
Summary
Summary of the 8-K filed August 27, 2026. Cited figures are marked; the original filing is the authoritative source.
PPL Corporation reported that on August 21, 2026, the Rhode Island Public Utilities Commission (RIPUC) approved oral motions in the base distribution rate case of The Narragansett Electric Company d/b/a Rhode Island Energy (RIE), which RIE filed in November 2025.
The decisions authorize annual revenue increases of $44.1 milliona for electric and $93.7 million for gas, a return on equity of 9.275%, and a capital structure of 48 percent debt to 52 percent equity. The RIPUC did not approve a proposed second rate year, though it noted the matter could be considered later. The approved rate changes take effect September 1, 2026, and a final written order is expected in the coming weeks.
RIE and intervening parties may appeal, and PPL and RIE state they cannot predict the ultimate outcome. The RIPUC also addressed RIE's Hold Harmless Commitment, which relates to potential tax impacts from PPL's May 2022 acquisition of RIE. The RIPUC denied RIE's proposal as submitted but approved an alternative that increases accelerated bill credits by approximately $11 millionb, for total credits of approximately $170 million.
RIE voluntarily accepted this alternative on August 25, 2026, and the credits will be issued to electric and gas customers from October 2026 through September 2027. The filing states the alternative fully satisfies RIE's obligation under the commitment.
In connection with these matters, PPL reaffirmed its previously disclosed 2026 ongoing earnings per share forecast and long-term earnings growth targets. The filing also notes RIE made its required compliance filing on August 27, 2026, and must file a new tariff for extra-large electric loads by December 31, 2026.
02—Key points
Key Highlights
- RIPUC approved oral motions on August 21, 2026 in RIE's base distribution rate case, filed November 2025.
- Authorized annual revenue increases of $44.1 million for electric and $93.7 million for gas.
- Approved return on equity of 9.275% and a 48% debt / 52% equity capital structure.
- RIPUC did not approve a proposed second rate year, but noted it could be considered later.
- Hold Harmless Commitment resolved via alternative proposal adding roughly $11 million in bill credits, for about $170 million total, issued October 2026 through September 2027.
- Approved rate changes take effect September 1, 2026; a final written order is expected in the coming weeks.
- PPL reaffirmed its 2026 ongoing earnings per share forecast and long-term earnings growth targets.
03—Questions
Frequently Asked Questions
What rate increases did the Rhode Island Public Utilities Commission approve for Rhode Island Energy?
The RIPUC authorized annual revenue increases of $44.1 million for electric service and $93.7 million for gas service, with a return on equity of 9.275% and a capital structure of 48 percent debt and 52 percent equity.
When do the new rates take effect?
The approved rate changes will be effective as of September 1, 2026, following RIE's compliance filing made on August 27, 2026.
What is the Hold Harmless Commitment and how was it resolved?
The Hold Harmless Commitment relates to protecting customers from certain potential tax impacts of PPL's May 2022 acquisition of RIE. The RIPUC denied RIE's proposal as submitted but approved an alternative increasing accelerated bill credits by about $11 million, for total credits of about $170 million. RIE accepted the alternative on August 25, 2026, and the filing states it fully satisfies RIE's obligation.
Does PPL's earnings outlook change as a result of these decisions?
No. In connection with these matters, PPL reaffirmed its previously disclosed 2026 ongoing earnings per share forecast and long-term earnings growth targets.
Can the decisions be challenged?
Yes. RIE and all intervening parties have the right to appeal the RIPUC decisions. RIE is still evaluating the decisions and possible next steps, and PPL and RIE state they cannot predict the ultimate outcome.
04—Continue