PPL reported a 32 GW data center pipeline and announced a $15 billion joint venture with Blackstone to finance interconnection infrastructure.

PPL Corporation delivered a steady second quarter that matched internal expectations, but the story for investors was less about the $0.33 in ongoing earnings per share and more about the accelerating pipeline of data center demand reshaping the utility's long-term growth prospects. CEO Vince Sorgi opened the call with a direct statement: "We are executing on our current plan while creating more visible upside beyond it."

That upside — anchored by a 32 GW queue of signed data center agreements in Pennsylvania and a rapidly expanding load pipeline in Kentucky — drove the conversation throughout the morning. PPL's second-quarter results were modest but in line with a back-half-weighted year that will benefit from new rate structures in Pennsylvania and Rhode Island.

PPL Corp. reported Q2 2026 ongoing earnings of $0.33 per share, a penny higher than a year ago, keeping the utility on track for its full-year target. CFO Joe Bergstein attributed special items to IT transformation costs and system integration impacts. For the full year, management reaffirmed its ongoing EPS forecast of $1.90–$1.98, with a midpoint of $1.94, and highlighted that capital deployment in the first half jumped 30% year-over-year to roughly $2.3 billion, keeping the company on pace to spend $5 billion in 2026.

The quarter was buoyed by structural tailwinds. A $275 million rate increase took effect in Pennsylvania on July 1. The Pennsylvania Electric rate case settlement translates to less than a 4% average increase across rate classes and carries a two-year stay-out provision. Even after the adjustment, delivery rates remain nearly 20% below the state average. Sorgi repeatedly emphasized this as proof that the utility's "Utility of the Future" strategy is working.

Rhode Island's first base-rate case in eight years wrapped hearings in July, with new rates expected by September 1. The parallel "hold harmless" bill credit proposal could materially offset customer impact, Sorgi said, calling it "another example of our balanced approach to affordability and investment."

Kentucky remains a consideration. The utility is awaiting a reconsideration decision from the Kentucky Public Service Commission by August 14. Sorgi said the original order allows the company to meet plan objectives but believes "there were some flaws in that decision that require reconsideration."

The centerpiece of the call was data center demand across PPL's service areas. Signed agreements in Pennsylvania reached 32 GW, with 11 GW now under binding electric service agreements. The Pennsylvania pipeline has grown for 10 consecutive quarters. Two facilities began taking power during the second quarter and are expected to ramp to roughly 2 GW of combined load by 2031. Sorgi noted: "This continued progression from agreement to construction to taking service is improving our line of sight into future infrastructure and generation needs."

Large-load tariffs in both Pennsylvania and Kentucky are designed to protect existing ratepayers with 10-to-15-year contracts, guaranteed minimum payments of 80% of reserved capacity, upfront collateral, and material termination fees. Starting in 2027, Pennsylvania's large-load customer class will contribute $11 million annually to low-income assistance. If the full 31.8 GW of advanced-stage projects materializes, existing customers could see roughly $25 a month shaved off their transmission bills. "These tariffs provide a disciplined framework to capture growth responsibly while ensuring that growth pays for growth," Sorgi said.

In Kentucky, the pipeline expanded to 13.7 GW — 11.6 GW from data centers and 2.1 GW from manufacturing — supported by signed reimbursement agreements covering 1.3 GW. Management lifted the probability-weighted load growth forecast to 3.7 GW by 2032, more than double its previous forecast. Sorgi indicated the trigger for a new generation CPCN filing by year-end would be the conversion of a data center developer's interest into an actual hyperscaler contract, a step that is "happening as we speak."

The Invitium Energy joint venture with Blackstone, formed to build and operate generation for large loads, is advancing on multiple fronts. PPL now has land positions capable of hosting 8–14 GW of generation, over 5 GW of combined-cycle gas turbine projects in the PJM interconnection queue, and more than 5 GW of turbine reservation agreements. Using a market consensus cost of $2,500–$3,000 per kilowatt, that implies a potential investment of $12.5–$15 billion, with PPL's 51% share. Sorgi said the venture expects one or more commercial agreements by year-end, though he cautioned that PJM's Reliability Base Product process was "likely affecting the timing for some of our counterparties." Bilateral negotiations are running in parallel and are not dependent on PJM auctions. "We're not waiting for those ESSAs to begin that development work. We're running those in parallel. We're ready to respond very quickly in concert with the customer negotiations."

CFO Bergstein addressed funding, saying the venture will use construction-period financing structures to keep debt off balance sheet until projects enter service, limiting near-term dilution. "We've talked about utility-like risk profile and returns, but we obviously have some flexibility in and around where that cap structure could be, with credit implications discussed with rating agencies," he said.

During the Q&A, Barclays analyst Michael Lonegan asked whether PJM's procurement process could delay deals. Sorgi was unequivocal: "Our ability to get to closure on bilateral contracts is irrespective of the PJM process," adding that any material agreement would be announced promptly rather than held for a quarterly update. J.P. Morgan analyst Jeremy Tonet questioned whether PPL would bid into the Reliability Base Product auction. Sorgi confirmed the company had submitted a matchmaking proposal but had not committed to bidding, noting that auction prices "are well below CONE on certainly some of the assets that we're talking about." The focus remains on bilateral contracting.

While project earnings won't be material until early next decade, PPL reaffirmed 6–8% EPS growth through 2029 and signaled the total incremental capital opportunity could reach $10–12 billion.