PPL (NYSE:PPL) raised its long-term earnings growth target and outlined a $25 billion capital plan through 2030, as the utility seeks to meet rising electricity demand from data centers and other large customers.
On its third-quarter earnings call, the company also announced that its majority-owned Invitium Energy business had signed a letter of intent with QTS for approximately 2 gigawatts of generation capacity in Pennsylvania. The proposed project is excluded from PPL’s updated financial plan.
PPL now targets annual earnings-per-share growth of 7% to 9% through at least 2030, an increase of one percentage point from its prior target. President and CEO Vince Sorgi said the company expects growth in the top half of that range each year beginning in 2027.
Quarterly results and spending plan
PPL reported third-quarter GAAP earnings of $0.49 per share, up from $0.43 a year earlier. Earnings from ongoing operations, a non-GAAP measure, rose to $0.54 per share from $0.48. CFO Joe Bergstein attributed the improvement to rate increases across PPL’s three jurisdictions, recovery of capital investments and higher sales volumes, partly offset by higher depreciation, operating and interest costs.
The company narrowed its 2026 ongoing earnings forecast to $1.92 to $1.96 per share and said it was on track to achieve at least the $1.94 midpoint. For 2027, it forecast earnings of $2.06 to $2.14 per share, with the $2.10 midpoint representing 8.2% growth from the midpoint of the 2026 forecast.
The $25 billion capital plan for 2027 through 2030 is approximately $2 billion higher than the prior four-year plan and supports projected rate base growth of about 10% annually, from roughly $33 billion in 2026 to nearly $48 billion in 2030. The updated plan includes another natural gas combined-cycle unit in Kentucky, with a projected commercial operation date of 2032.
Bergstein said PPL expects approximately $3 billion in additional equity needs through 2030, beyond the more than $1.5 billion already executed on a forward basis. The company expects to use its at-the-market equity program as a primary funding vehicle. PPL maintained its target for funds from operations to debt of 16% to 18% and said it aims for dividend growth at the low end of its 4% to 6% annual range.
QTS project advances, with final agreements pending
Under the letter of intent, Invitium and QTS agreed on key commercial terms for generation serving QTS’s Salem Township data center project. The proposed portfolio consists of two combined-cycle natural gas plants, supplemented by fuel cells and battery storage. The initial term would be 20 years, with multiple five-year renewal options.
PPL estimated total project investment at $5 billion to $7 billion, with its 51% share at approximately $2.5 billion to $3.5 billion. Fuel cells and batteries could come online as early as 2029, while the gas plants are expected in 2032 and 2033, Sorgi said.
The parties also signed a cost reimbursement agreement covering specified development costs and commitments if certain approvals and conditions are not achieved. Sorgi said the teams are working toward a full-form agreement but did not provide a timetable. He said the negotiated terms include financial provisions and operating requirements.
The proposed payment structure includes a fixed monthly payment with annual escalation and variable payments covering fuel and other operating costs when the plants run. Sorgi said targeted returns are higher than utility returns but lower than those of a pure independent power producer, reflecting the contracted nature of the project.
Bergstein said he would not expect earnings or cash flow before the units come online. The interim fuel-cell and battery solutions could contribute to earnings toward the end of the current plan period, he said, but the material contribution would come from the gas plants.
Data center demand supports potential upside
In Pennsylvania, PPL’s pipeline of advanced-stage data center projects rose to 35.3 gigawatts, up 3.5 gigawatts from the second quarter. Approximately 11.4 gigawatts were under signed electric service agreements, including 8.5 gigawatts under construction. PPL said it had energized 300 megawatts of contracted load at two connected data centers.
In Kentucky, the company’s economic development pipeline reached 14.7 gigawatts of potential load through 2032, including 12.8 gigawatts from data centers. PPL said 2.3 gigawatts were under reimbursement agreements, up from 1.3 gigawatts at the end of the second quarter.
Beyond the base plan, PPL identified $3.5 billion to $4.5 billion in potential additional Kentucky generation investment through 2030. Bergstein said those projects could lift annualized EPS growth above 9% through 2030, with earnings contributions potentially beginning in 2028. The company plans to add the opportunities to its formal plan once it has signed agreements with large customers.
PPL also sees $6 billion to $9 billion of potential future Invitium investment through 2032, reflecting its ownership share and based on 5 gigawatts of executed turbine reservation agreements. That broader estimate excludes bridge solutions such as fuel cells and batteries.
Rates and customer affordability
Sorgi said incremental investment supporting the higher growth outlook is expected to be paid primarily by the large-load customers driving it. PPL’s large-load tariffs in Pennsylvania and Kentucky require data centers to cover the cost of serving them, he said.
In Kentucky, regulators approved an additional $7 million in annual revenue following reconsideration of the 2025 rate cases, bringing the aggregate increase for LG&E and KU to approximately $240 million. The utilities expect to file new base rate cases in the coming months.
In Rhode Island, new rates effective Sept. 1 include a $138 million annual revenue increase. PPL said the utility plans another rate case as early as next year after regulators declined a requested second-year increase. A separate settlement provides $163 million in customer bill credits from October 2026 through September 2027.
About PPL (NYSE:PPL)
PPL Corporation is an energy company that owns regulated electric and natural gas utilities. Its businesses generate, transmit and distribute electricity and deliver natural gas to residential, commercial and industrial customers.
PPL serves customers in Pennsylvania, Kentucky and Rhode Island through subsidiaries including PPL Electric Utilities, Louisville Gas and Electric Company, Kentucky Utilities and Rhode Island Energy. Its utility operations maintain the infrastructure used to provide energy and support related customer services.
The company traces its roots to Pennsylvania Power & Light, which was established in 1920.
