Utility PPL will raise CAPEX plans by nearly 40% in electricity demand

(Reuters) – PPL Corp on Thursday raised its 2025-2028 infrastructure investment target to $20 billion. This has increased nearly 40% from previous plans as it appears to strengthen the grid from the storm and expect an increase in electrification.

The company plans to invest $4.3 billion in infrastructure investment this year.

The U.S. Energy Information Agency has announced that increasing usage from data centers and increasing energy needs for heating and transporting homes and businesses will lead to the next level of electricity demand in the US, reaching this year and next level. I think it has reached the level of

From 2024 to 2027, PPL was expected to spend $14.3 billion. New investments are expected to increase from 6.3% in the previous planning period, with an average annual base of 9.8% through 2028.

A $2.5 billion equity needs are expected during the planning period to support the increase.

The Allentown, Pennsylvania-based company rose 6% to $0.2725 per share.

However, data compiled by LSEG shows that earnings on an adjusted basis were 34 cents per share in the fourth quarter, with analyst estimates below 37 cents.

PPL shares fell 1% in pre-market trading. This is because the company’s operating expenses have also risen by nearly 12% since last year.

The company provides electricity and natural gas services to more than 3.5 million customers across service areas in Kentucky, Pennsylvania and Rhode Island.

PPL’s ​​forecast of 2025 earnings ranged from $1.75 to $1.87 per share, which is higher than $1.73 per share than last year’s $1.67 per share.

We also extended our annual revenue per share and dividend growth targets by 6% throughout at least 2028.

(Provided by Seher Dareen, edited by Maju Samuel)