A U.S. energy holding company that delivers electricity and natural gas to millions of homes and businesses in Pennsylvania and Kentucky, through brands like PPL Electric Utilities and Louisville Gas & Electric. It began in 1920 as Pennsylvania Power & Light, formed by merging eight smaller electric utilities in central and eastern Pennsylvania, and took its current name in 2000. The name was chosen to plainly describe what the company did and where it served.
Kentucky rate relief and a Rhode Island turnaround lifted PPL Q2 2026 net income 26% to $230M, while capital spending more than doubled.
Rhode Island Regulated swung back to a profit after a year of losses. rose 10.8% to $2.77 billion and reached $0.60, driven by new Kentucky and higher transmission returns, though rising interest and costs partially offset the gains. The $17.35 billion capital plan is accelerating, with spending up sharply and reaching $19.0 billion.
Key takeaways
Rhode Island Regulated swung to a $10 million profit from a $17 million loss a year ago, as lower energy purchases and a $12 million decrease in storm recovery fund expenses more than offset the prior year's $26 million ISO-NE transmission charge.
Kentucky Regulated rose $5 million to $131 million, as $49 million in new effective January 2026 and higher RAR were largely offset by higher , interest, and generation maintenance costs.
Section summaries
Management's Discussion and Analysis
PPL Q2 2026 net income rose 26% to $230M, driven by new Kentucky base rates and higher transmission returns, partially offset by higher interest and depreciation.
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Consolidated operating revenues increased $86M to $2.1B, primarily from new Kentucky base rates effective Jan 2026 and higher PPL Electric due to increased energy prices and customer volumes.
Pennsylvania Regulated fell $7 million to $132 million, as higher transmission and lower storm costs were more than offset by increased energy purchases, , and .
Consolidated widened 5.9 points sequentially to 26.9%, though it was down 0.2 points from the prior-year quarter's 27.1%.
reached $2.34 billion for the first half of 2026, more than double the prior-year period, driven by transmission, distribution, and generation projects including Mill Creek Unit 5 and battery storage.
PPL issued $1.15 billion in equity units and its subsidiaries issued $900 million in during the quarter to fund the capital program and repay short-term debt.
What changed
The $26 million ISO-NE transmission charge that cut Rhode Island earnings in Q1 2026 did not repeat, and the swung to a $10 million profit as the charge proved to be a one-time item.
The Kentucky rate relief that added $70 million to Q1 2026 earnings contributed $49 million this quarter, a smaller sequential benefit as the new rates annualize, while higher and interest costs absorbed more of the gain.
accelerated further, reaching $2.34 billion in the first half of 2026 compared to $1.06 billion in Q1 alone, as the $17.35 billion 2026-2028 plan moves into full execution.
rose to $19.0 billion, up from $18.0 billion at year-end 2025, as subsidiary debt issuance continued to fund the growing capital program despite the $1.15 billion equity unit issuance.
What to watch
Whether the Rhode Island Regulated 's $10 million quarterly profit represents a sustainable run-rate after the one-time ISO-NE charge and storm cost reductions, or if underlying cost pressures return.
Kentucky Regulated earnings trajectory now that the initial $49 million quarterly rate benefit is in the base: whether and interest cost growth continue to erode the rate relief.
trajectory relative to the accelerating capital spend, after more than doubled in the first half, to assess how much additional debt or equity the $17.35 billion plan will require.
through the seasonally higher-cost summer and winter quarters, after 26.9% in Q2, to assess whether the Kentucky rate relief and Rhode Island cost improvements can sustain margin above the 23.5% full-year 2025 level.
Kentucky Regulated grew $5M to $131M, as $49M in higher retail rates and $5M in were partly offset by higher , interest, and generation maintenance costs.
Pennsylvania Regulated fell $7M to $132M, as higher transmission formula rate and lower storm costs were more than offset by increased energy purchases, , and .
Rhode Island Regulated swung to a $10M from a $17M loss, primarily due to lower energy purchases and O&M expenses, including a $12M decrease in storm recovery funds.
was $1.14B, while surged to $2.34B, driven by increased transmission, distribution, and generation projects including Mill Creek Unit 5 and battery storage.
PPL issued $1.15B in equity units and its subsidiaries issued $900M in to fund capital investments and repay short-term debt, with new PA base rates effective July 1, 2026.
For information regarding legal, tax, regulatory, environmental or other administrative proceedings that became reportable events or were pending in the second quarter of 2026 see: •"Item 3. Legal Proceedings" in each Registrant's 2025 Form 10-K; and •Notes 5, 6, and 10 to the F…
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For information regarding legal, tax, regulatory, environmental or other administrative proceedings that became reportable events or were pending in the second quarter of 2026 see:
•"Item 3. Legal Proceedings" in each Registrant's 2025 Form 10-K; and
•Notes 5, 6, and 10 to the Financial Statements.
There have been no material changes in the Registrants' risk factors from those disclosed in "Item 1A. Risk Factors" of the Registrants' 2025 Form 10-K.
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There have been no material changes in the Registrants' risk factors from those disclosed in "Item 1A. Risk Factors" of the Registrants' 2025 Form 10-K.