Business Context and Reporting Period
This Form 8-K Current Report, dated October 28, 2025, is filed by PPL Corporation and its subsidiaries, Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU). The filing addresses a regulatory order issued by the Kentucky Public Service Commission (KPSC) regarding a proceeding commenced in February 2025 concerning certificates of public convenience and necessity (CPCN) for new generation facilities.
Key Financial Metrics
The filing text does not provide specific financial metrics such as revenue, profit, cash flow, margins, debt, or liquidity figures. The report focuses exclusively on regulatory approvals and denials related to capital projects.
Material Changes and Regulatory Outcomes
The KPSC issued an order with the following key determinations:
- Approved Projects: CPCNs and site permits were granted for E.W. Brown Unit 12 (645 MW natural gas combined-cycle), Mill Creek Unit 6 (645 MW natural gas combined-cycle), and the selective catalytic reduction (SCR) environmental facility for Ghent Unit 2.
- Cost Recovery: The order authorized the inclusion of Ghent Unit 2 SCR costs in existing environmental cost recovery mechanisms and approved regulatory asset deferral accounting for certain allowance-for-funds-used-during-construction amounts.
- Denied Mechanisms: The KPSC denied requests for new rate adjustment cost recovery mechanisms for Mill Creek Unit 6 construction costs and for operating the Mill Creek 2 coal unit beyond its 2027 retirement date. These denials were without prejudice to resubmission.
- Withdrawn Project: The order did not include a CPCN for the Cane Run battery energy storage system (BESS) due to a conditional withdrawal in the stipulation agreement. LG&E and KU retain the right to seek approval for this or substitute projects in the future.
- Unresolved Matters: The KPSC declined to rule on the retirement date of Mill Creek Unit 2.
Guidance, Outlook, and Risks
Management is evaluating the order and potential next steps, including addressing the recovery of denied costs in pending rate case proceedings. The Companies cannot predict the outcome of potential appeals or rehearing requests. The filing includes a cautionary statement noting that forward-looking statements are subject to risks including regulatory cost recovery, market demand, and political or economic conditions.
Investor Verification Checklist
- Verify the status of the pending rate case proceedings where the Companies intend to seek recovery for denied Mill Creek Unit 6 and Mill Creek 2 coal unit costs.
- Monitor for any future regulatory filings regarding the Cane Run BESS project or substitute energy storage initiatives.
- Track the timeline and outcome of any potential appeals or rehearing requests filed by the Companies or intervenors regarding the KPSC order.
- Review the stipulation agreement details regarding tariffs and power supply contracts for potential future data center or high load customers.