賓州電力 (PPL) 2023 Q3 法說會逐字稿

Good morning, and welcome to the PPL Corporation Third Quarter 2023 Earnings Conference Call. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note, this event is being recorded. I would now like to turn the conference over to Andy Ludwig, Vice President of Investor Relations. Please go ahead.

早安，歡迎參加 PPL 公司 2023 年第三季財報電話會議。 （操作員說明）今天的演示結束後，將有機會提問。 （操作員說明）請注意，正在記錄此事件。我現在想將會議交給投資者關係副總裁安迪路德維希 (Andy Ludwig)。請繼續。

Good morning, everyone, and thank you for joining the PPL Corporation conference call on third quarter 2023 financial results. We have provided slides for this presentation on the Investors section of our website. Begin today's call with updates from Vince Sorgi, PPL President and CEO; and Joe Bergstein, Chief Financial Officer and conclude with a Q&A session following our prepared remarks.

大家早安，感謝您參加 PPL 公司關於 2023 年第三季財務業績的電話會議。我們在我們網站的投資者部分提供了本次簡報的幻燈片。今天的電話會議首先介紹 PPL 總裁兼執行長 Vince Sorgi 的最新動態；財務長喬·伯格斯坦 (Joe Bergstein)，並在我們準備好的演講後以問答環節結束。

Before we get started, I'll draw your attention to Slide 2 and a brief cautionary statement. Our presentation today contains forward-looking statements about future operating results or other future events. Actual results may differ materially from these forward-looking statements. Please refer to the appendix of this presentation and PPL's SEC filings for a discussion of some of the factors that could cause actual results to differ from the forward-looking statements.

在我們開始之前，我將提請您注意投影片 2 和簡短的警告聲明。我們今天的演示包含有關未來經營業績或其他未來事件的前瞻性陳述。實際結果可能與這些前瞻性陳述有重大差異。請參閱本簡報的附錄和 PPL 向 SEC 提交的文件，以了解可能導致實際結果與前瞻性陳述不同的一些因素的討論。

We'll also refer to non-GAAP measures including earnings from ongoing operations or ongoing earnings on this call. For reconciliations to the comparable GAAP measures, please refer to the appendix. I'll now turn the call over to Vince.

我們也將參考非公認會計準則衡量標準，包括持續營運的收益或本次電話會議的持續收益。有關可比較 GAAP 衡量標準的調整表，請參閱附錄。我現在將把電話轉給文斯。

Thank you, Andy, and good morning, everyone. Welcome to our third quarter investor update. Let's start with an overview of our financial results on Slide 4. Today, we announced third quarter reported earnings of $0.31 per share. Adjusting for special items, third quarter earnings from ongoing operations were $0.43 per share compared with $0.41 per share a year ago. These results position us well to deliver our 2023 earnings guidance, despite the significant impact of mild weather and storms in the first half of the year.

謝謝你，安迪，大家早安。歡迎來到我們的第三季投資者更新。讓我們先概述幻燈片 4 上的財務表現。今天，我們宣布第三季報告的每股收益為 0.31 美元。調整特殊項目後，第三季持續營運收益為每股 0.43 美元，去年同期為每股 0.41 美元。儘管上半年溫和天氣和風暴造成了重大影響，但這些結果使我們能夠很好地實現 2023 年獲利指引。

As Joe will cover in his financial review, we've been successful in overcoming these headwinds through effective regulatory mechanisms, our continued focus on operating efficiently and outperformance in several other areas. The team has done an outstanding job in keeping us on track to deliver our 2023 financial objectives, while providing energy safely and reliably to our customers. As a result of our progress through Q3, we have narrowed our 2023 ongoing earnings forecast range to $1.55 to $1.60 per share, with the midpoint of $1.58 per share unchanged.

正如喬將在他的財務評論中介紹的那樣，我們透過有效的監管機制、持續專注於高效營運以及在其他幾個領域的出色表現，成功地克服了這些阻力。團隊表現出色，讓我們能夠實現 2023 年財務目標，同時為客戶提供安全可靠的能源。由於我們在第三季的進展，我們將 2023 年持續獲利預測範圍縮小至每股 1.55 美元至 1.60 美元，每股 1.58 美元的中點保持不變。

As we look to close out the year in a strong fashion, we also remain on track to invest nearly $2.5 billion to modernize the grid, strengthen grid resiliency and advance a cleaner energy mix. In addition, we're on pace to achieve our targeted $50 million to $60 million in O&M efficiencies this year. Looking forward, we've reaffirmed our projected earnings per share and dividend growth rates of 6% to 8% through at least 2026 as we remain confident in our low-risk business plan. This growth is supported by our $12 billion capital investment plan and targeted O&M savings of at least $175 million by 2026 to advance a reliable, resilient, affordable and cleaner energy future.

在我們希望以強勁的方式結束這一年的同時，我們也將繼續投資近 25 億美元來實現電網現代化、增強電網彈性並推進更清潔的能源結構。此外，我們今年還將實現 5,000 萬至 6,000 萬美元的營運和維護效率目標。展望未來，我們重申至少到 2026 年預計每股收益和股息成長率為 6% 至 8%，因為我們對低風險業務計劃仍然充滿信心。這一增長得益於我們 120 億美元的資本投資計劃以及到 2026 年至少 1.75 億美元的營運和維護節省目標，以推進可靠、有彈性、負擔得起和清潔的能源未來。

We expect to fund this growth without the need for equity issuances through at least 2026, while maintaining superior credit metrics and one of the strongest balance sheets in our sector. Turning to Slide 5 and some operational highlights. We continue to deliver top quartile reliability and advanced industry-leading grid innovation that drives efficiency and improve service to our customers as we execute our utility in the future strategy. In support of this work, the Department of Energy has selected PPL Electric Utilities and Rhode Island Energy to receive a combined $100 million in federal funding for planned smart grid projects in our service territories.

我們預計至少到 2026 年無需發行股票即可為此成長提供資金，同時保持卓越的信用指標和我們行業最強勁的資產負債表之一。轉向幻燈片 5 和一些操作亮點。我們將繼續提供最高四分之一的可靠性和先進的領先業界的電網創新，在我們執行未來的公用事業策略時，提高效率並改善為客戶提供的服務。為了支持這項工作，能源部已選擇 PPL 電力公用事業公司和羅德島能源公司獲得總計 1 億美元的聯邦資金，用於我們服務區域內計劃的智慧電網專案。

The projects that were selected by the DOE were generally included in our current capital plan. However, these grants will certainly help to support affordability for our customers, which we remain keenly focused on. Our Pennsylvania project will extend PPL Electric self-healing smart grid already one of the most sophisticated energy networks in the nation to further enhance great reliability and resiliency. Meanwhile, our Rhode Island project will accelerate Rhode Island Energy's investment in great resilience and smart grid capabilities to support the state's leading clean energy goals. The process to receive this funding through the IIJA was highly competitive. PPL was one of only a few companies to be selected for multiple awards in this initial round of funding.

DOE選定的項目一般都包含在我們目前的資本計畫中。然而，這些贈款肯定有助於支持我們的客戶的負擔能力，這是我們仍然密切關注的。我們的賓州計畫將擴展 PPL Electric 自癒智慧電網（該電網已經是全美最先進的能源網路之一），以進一步提高可靠性和彈性。同時，我們的羅德島計畫將加速羅德島能源公司對強大的彈性和智慧電網能力的投資，以支持該州領先的清潔能源目標。透過 IIJA 獲得這筆資金的過程競爭非常激烈。 PPL 是首輪融資中獲得多項獎項的少數公司之一。

As we focus on creating the utilities of the future that are agile, innovative and technology enabled, we continue to be recognized for our leadership in the smart grid space. During the third quarter, PPL Electric Utilities received 2 additional awards for innovative, industry-leading work that has helped improve the safety, reliability and affordability of electricity delivered to our more than 1.5 million customers in Pennsylvania. Moving to Rhode Island. We remain focused on supporting Rhode Island's clean energy goals and bringing more affordable offshore wind opportunities to the state. On October 13, we issued an RFP to procure 1,200 megawatts of offshore wind to help power the state's energy needs.

當我們專注於創建靈活、創新和技術支援的未來公用事業時，我們將繼續因其在智慧電網領域的領導地位而受到認可。第三季度，PPL Electric Utilities 因創新、業界領先的工作而獲得另外兩項獎項，這些工作幫助提高了向賓州超過 150 萬名客戶提供電力的安全性、可靠性和可負擔性。搬到羅德島。我們仍然專注於支持羅德島州的清潔能源目標，並為該州帶來更實惠的離岸風電機機會。 10 月 13 日，我們發布了採購 1,200 兆瓦離岸風電的 RFP，以滿足該州的能源需求。

The RFP was the state's largest ever renewable energy solicitation and was issued just a week after Connecticut, Massachusetts and Rhode Island signed a memorandum of understanding, paving the way for a potential multistate selection of offshore wind opportunities. Each state is conducting procurements in a similar time frame and we're hopeful that our larger procurement, a streamlined application process, flexibility on contract durations and the potential for multistate coordination will provide better economies of scale for developers, and reasonable pricing options for our customers. Bids are due by January 31, with any resulting selection expected next summer.

該徵求建議書是該州有史以來規模最大的可再生能源招標，在康乃狄克州、麻薩諸塞州和羅德島州簽署諒解備忘錄一週後發布，為潛在的多州選擇離岸風電機會鋪平了道路。每個州都在相似的時間範圍內進行採購，我們希望我們更大規模的採購、簡化的申請流程、合約期限的靈活性以及多州協調的潛力將為開發商提供更好的規模經濟，並為我們的客戶提供合理的定價選擇。顧客。投標截止日期為 1 月 31 日，最終的選擇預計將於明年夏天進行。

Many PPAs agreed to by Rhode Island Energy would be subject to review and approval by the Rhode Island Public Utilities Commission. Lastly, on this slide, LG&E began contract negotiations a few weeks ago for a labor contract that expires on November 10. The contract covers more than 600 of our employees in Kentucky. For decades, we have successfully worked together with our unions in Kentucky to reach agreement, and we're optimistic we can continue that success. We look forward to continued progress over the coming days and weeks to achieve an outcome that balances the needs of our employees and our customers. And importantly, the company has completed its preparedness plan to ensure we can continue to deliver safe and reliable service to our customers should negotiations break down.

羅德島能源公司同意的許多購電協議將受到羅德島公用事業委員會的審查和批准。最後，在這張幻燈片中，LG&E 幾週前開始就一份將於 11 月 10 日到期的勞動合約進行合約談判。該合約涵蓋我們在肯塔基州的 600 多名員工。幾十年來，我們與肯塔基州的工會成功合作達成了協議，我們對能夠繼續取得成功感到樂觀。我們期待在未來幾天和幾週內繼續取得進展，以實現平衡員工和客戶需求的結果。重要的是，公司已經完成了準備計劃，以確保在談判破裂時我們能夠繼續為客戶提供安全可靠的服務。

Moving to Slide 6 for a couple of key regulatory updates. We remain focused on advancing our generation investment plan as we seek to replace up to 1,500 megawatts of aging coal generation with an affordable, reliable and cleaner energy mix by 2028. We continue to believe that our plan represents the best path forward for our Kentucky customers. As proposed, it would replace several 1970s era coal units with over 1,200 megawatts of new combined cycle natural gas generation, nearly 1,000 megawatts of solar generation and 125 megawatts of battery storage. In addition, it would establish more than a dozen new energy efficiency programs. The Kentucky Public Service Commission conducted public hearings in August, followed by post-year increase in September. The hearings as well as the intervenor briefs have largely been as expected. And looking forward, we continue to expect a decision from the commission by November 6.

請前往投影片 6，以了解一些關鍵的監管更新。我們仍然專注於推進我們的發電投資計劃，力求到2028 年用負擔得起、可靠和清潔的能源組合取代高達1,500 兆瓦的老化燃煤發電。我們仍然相信，我們的計劃代表了肯塔基州客戶的最佳前進道路。根據提議，它將用超過 1,200 兆瓦的新聯合循環天然氣發電、近 1,000 兆瓦的太陽能發電和 125 兆瓦的電池儲存取代幾個 1970 年代的燃煤機組。此外，還將制定十多個新的能源效率計劃。肯塔基州公共服務委員會於 8 月舉行了公開聽證會，隨後在 9 月進行了年後增長。聽證會和介入者簡報基本上符合預期。展望未來，我們繼續期待委員會在 11 月 6 日之前做出決定。

Shifting to Rhode Island. In late September, we received regulatory approval to deploy advanced metering functionality statewide as we lay the foundation for a smarter, more resilient, reliable and dynamic grid that supports the state's leading climate goals. As part of its unanimous decision, the Rhode Island Public Utilities Commission authorized capital investments of up to $153 million for this initiative. We're pleased with the outcome of the commission's decision for this important project. Advanced metering functionality, which we've deployed in Pennsylvania and are currently deploying in Kentucky is a key step in modernizing our energy networks.

轉移到羅德島。九月下旬，我們獲得了監管部門的批准，可以在全州部署先進的計量功能，為支持該州領先的氣候目標的更聰明、更有彈性、可靠和動態的電網奠定基礎。作為一致決定的一部分，羅德島州公用事業委員會授權為該計劃進行高達 1.53 億美元的資本投資。我們對委員會對這項重要項目的決定結果感到高興。我們已在賓州部署並目前正在肯塔基州部署先進的計量功能，這是我們能源網路現代化的關鍵一步。

And as we've seen in our other service territories, it delivers significant benefits for our customers. We expect to begin installing the digital meters in late 2024 and to complete the deployment over the next 3 years, capitalizing on our experience in both Pennsylvania and Kentucky. These investments will also be largely recoverable through the annual ISR process in Rhode Island. That concludes my operational update. I'll now turn the call over to Joe for the financial update.

正如我們在其他服務領域所看到的那樣，它為我們的客戶帶來了巨大的好處。我們預計將於 2024 年底開始安裝數位電錶，並利用我們在賓州和肯塔基州的經驗，在未來 3 年內完成部署。這些投資也將透過羅德島州的年度 ISR 流程大部分收回。我的操作更新到此結束。我現在將把電話轉給喬，以了解最新的財務狀況。

Thank you, Vince, and good morning, everyone. Let's turn to Slide 8. PPL's third quarter GAAP earnings were $0.31 per share compared to $0.24 per share in Q3 2022. We recorded special items of $0.12 per share during the third quarter, primarily due to the integration and related expenses associated with the acquisition of Rhode Island Energy. Adjusting for these special items, third quarter earnings from ongoing operations were $0.43 per share, an improvement of $0.02 per share compared to Q3 2022.

謝謝你，文斯，大家早安。讓我們轉向幻燈片8。PPL 第三季的GAAP 收益為每股0.31 美元，而2022 年第三季為每股0.24 美元。我們在第三季記錄的特殊項目為每股0.12 美元，主要是由於與收購相關的整合和相關費用羅德島能源。在對這些特殊項目進行調整後，第三季持續營運收益為每股 0.43 美元，比 2022 年第三季每股收益增加 0.02 美元。

The primary drivers of the $0.02 per share increase were favorable transmission and disc rider revenues in Pennsylvania and lower O&M in Kentucky partially offset by higher interest expense due to increased borrowings. While weather was a significant factor in our earnings for the first half of the year, for the third quarter, weather did not materially impact our financial results versus our expectations.

每股成長 0.02 美元的主要驅動因素是賓州有利的變速箱和盤式騎士收入以及肯塔基州較低的 O&M 部分被借款增加導致的利息支出增加所抵消。雖然天氣是我們上半年收益的一個重要因素，但在第三季度，天氣並沒有對我們的財務表現與我們的預期產生重大影響。

Turning to the ongoing segment drivers for the quarter on Slide 9. Our Pennsylvania Regulated segment results increased by $0.02 per share year-over-year. Results were primarily driven by higher transmission revenue and higher distribution rider recovery, partially offset by higher interest expense and higher O&M expense related to IT amortization costs. Our Kentucky segment results increased by $0.02 per share year-over-year. Results were primarily driven by lower O&M expense, partially offset by higher interest expense. Our Rhode Island segment results decreased by $0.01 per share compared to 3Q 2022, primarily driven by higher O&M expense as we had fewer open positions this year than we did in the third quarter of 2022 when we were in the early stages of staffing up our teams.

轉向幻燈片 9 中本季持續的細分市場驅動因素。我們的賓州監管細分市場業績每股同比增長 0.02 美元。業績主要是由更高的傳輸收入和更高的配送乘客恢復率推動的，但部分被更高的利息費用和與 IT 攤銷成本相關的更高的營運和維護費用所抵消。我們的肯塔基州分部業績每股年增 0.02 美元。業績主要受到營運和維護費用降低的推動，但利息費用的增加部分抵消了這一影響。與2022 年第三季相比，我們的羅德島分部業績每股下降了0.01 美元，主要是由於營運和維護費用增加，因為我們今年的空缺職位比2022 年第三季我們處於團隊人員配備的早期階段要少。 。

Finally, results in Corporate and Other decreased $0.01 per share compared to the prior year, primarily due to higher interest expense. Moving to Slide 10. Our Q3 performance puts PPL's ongoing earnings at $1.20 per share for the first 9 months of 2023 or a 6% increase compared to the same period last year. As Vince noted, our teams have done a fantastic job of executing our plan and have positioned us well to offset the significantly unfavorable weather and storm impacts we experienced in the first half of the year to deliver the midpoint of our earnings forecast. And as outlined on our second quarter call, we expected to achieve this objective through several areas, which are being reflected in our year-to-date results.

最後，公司及其他業務的業績與前一年相比每股下降 0.01 美元，主要是由於利息支出增加。轉到投影片 10。根據我們第三季的業績，PPL 2023 年前 9 個月的持續收益為每股 1.20 美元，與去年同期相比成長 6%。正如文斯所指出的那樣，我們的團隊在執行計劃方面做得非常出色，並使我們能夠很好地抵消今年上半年經歷的嚴重不利的天氣和風暴影響，從而實現我們盈利預測的中點。正如我們在第二季電話會議中概述的那樣，我們預計透過幾個領域實現這一目標，這反映在我們今年迄今的業績中。

In Pennsylvania, the disc mechanism has already more than offset the sales volume and storm cost implications in this segment. Our Rhode Island integration continues to go well, and we've already achieved our targeted ongoing earnings forecast for the year, setting us up to achieve the $0.01 to $0.02 per share of outperformance that we discussed on the Q2 call. And finally, the team continues to focus on operating the business efficiently, and we expect to achieve at least our targeted O&M savings of $50 million to $60 million this year.

在賓州，圓盤機制已經足以抵消該細分市場的銷售和風暴成本影響。我們的羅德島整合繼續進展順利，我們已經實現了今年的目標持續盈利預測，使我們能夠實現我們在第二季度電話會議上討論的每股 0.01 至 0.02 美元的優異表現。最後，團隊繼續專注於高效營運業務，我們預計今年至少實現 5,000 萬至 6,000 萬美元的營運和維護節省目標。

We remain very confident in achieving our 2023 earnings forecast due to this excellent year-to-date performance and expect to build on our track record of achieving our financial targets. As a result, we have tightened our forecast range with just a few months remaining in the year and a clear path to deliver on our objectives. Moving to Slide 11, recognizing the current macroeconomic environment of higher interest rates, I want to emphasize our strong credit position, one that places PPL among the best in our sector. This is a clear strategic advantage that provides the company with significant financial flexibility, and we continue to project strong credit metrics throughout our planning period despite the rising cost of new debt.

由於今年迄今的出色表現，我們對實現 2023 年獲利預測仍然非常有信心，並期望在實現財務目標的基礎上再接再厲。因此，我們在今年僅剩幾個月的情況下收緊了預測範圍，並為實現我們的目標提供了明確的路徑。轉向幻燈片 11，認識到當前利率較高的宏觀經濟環境，我想強調我們強大的信用狀況，這使 PPL 躋身我們行業中最好的行列。這是一個明顯的策略優勢，為公司提供了顯著的財務彈性，儘管新債務成本不斷上升，但我們在整個規劃期間繼續制定強有力的信貸指標。

This includes maintaining a 16% to 18% FFO-to-debt ratio and HoldCo to total debt ratio below 25%. During 2023, we've taken proactive steps to mitigate the impact of rising interest rates. This includes the financing activity that we completed during the first quarter which significantly reduced our floating rate exposure to less than 5% of our total debt portfolio. Looking forward, we have limited near-term refinancing risk through 2025 and with 0 holding company maturities and just over $600 million of total utility maturities through that time frame. In fact, we have less than $2 billion or just 13% of our total debt portfolio maturing through 2027.

這包括將 FFO 與負債比率維持在 16% 至 18%，並將 HoldCo 與總負債比率維持在 25% 以下。 2023 年，我們採取了積極措施來減輕利率上升的影響。這包括我們在第一季完成的融資活動，該活動將我們的浮動利率風險敞口大幅降低至總債務組合的 5% 以下。展望未來，到 2025 年，我們的近期再融資風險有限，控股公司的到期日為 0，在此期間，公用事業到期日總額略高於 6 億美元。事實上，到 2027 年到期的債務組合不到 20 億美元，僅佔總債務組合的 13%。

Finally, we also continue to be uniquely positioned to continue to fund our growth without requiring equity for the foreseeable future while maintaining excellent credit metrics. I'm extremely pleased with our position and outlook to execute our plan in this macro environment. That concludes my prepared remarks. I'll turn the call back over to Vince.

最後，我們也繼續處於獨特的地位，可以在可預見的未來繼續為我們的成長提供資金，而無需股權，同時保持良好的信用指標。我對我們在當前宏觀環境下執行計劃的立場和前景感到非常滿意。我準備好的發言就到此結束。我會把電話轉回給文斯。

Thank you, Joe. In closing, I'm proud of the work our team has done this year to keep us on track to deliver on our commitments to both customers and shareowners. As highlighted, we've narrowed our ongoing earnings forecast achieved significant success in offsetting this year's headwinds from mild weather and storms, and remain confident in our ability to achieve the midpoint of our earnings forecast of $1.58 per share.

謝謝你，喬。最後，我對我們的團隊今年所做的工作感到自豪，這些工作使我們能夠兌現對客戶和股東的承諾。正如所強調的，我們已經縮小了持續獲利預測的範圍，在抵消今年溫和天氣和風暴帶來的不利因素方面取得了重大成功，並對我們實現每股 1.58 美元盈利預測中點的能力充滿信心。

At the same time, we've continued to advance key regulatory proceedings, most recently achieving a positive outcome in our AMF filing in Rhode Island. I'm also proud of the rigorous generation replacement plan that our team developed and presented during the CPCN proceeding. A plan that is right for Kentucky. And while we believe our plan is the best plan forward for our customers, we remain confident we will be able to achieve our stated growth targets under a variety of outcomes in that case. Our integration of Rhode Island Energy continues to proceed as planned, putting us on pace to exit all remaining transition service agreements with National Grid in 2024.

同時，我們繼續推進關鍵的監管程序，最近在羅德島州向 AMF 提交的文件中取得了積極成果。我也為我們的團隊在 CPCN 進程中所製定和提出的嚴格的換代計畫感到自豪。適合肯塔基州的計劃。雖然我們相信我們的計劃是對客戶來說最好的未來計劃，但我們仍然相信，在這種情況下，我們將能夠在各種結果下實現我們既定的成長目標。我們對羅德島能源公司的整合繼續按計劃進行，這使我們預計在 2024 年退出與國家電網的所有剩餘過渡服務協議。

We're on track to complete more than $2.5 billion in infrastructure investments this year. And through the third quarter, we're ahead of plan in delivering $50 million to $60 million in targeted O&M savings to drive better value for customers and share owners alike. Across PPL, we continue to make progress in advancing our long-term vision to be the best utility company in the U.S. And I remain excited for our bright future that will continue to deliver for our customers and our shareholders. With that, operator, let's open it up for questions.

今年我們可望完成超過 25 億美元的基礎建設投資。在第三季度，我們提前實現了 5,000 萬至 6,000 萬美元的目標營運和維護成本節省，為客戶和股東帶來更好的價值。在整個 PPL 中，我們在實現成為美國最好的公用事業公司的長期願景方面不斷取得進展。我對我們​​將繼續為我們的客戶和股東帶來光明的未來感到興奮。那麼，操作員，讓我們開始提問吧。

(Operator Instructions) Our first question will come from Nick Campanella of Barclays.

（操作員說明）我們的第一個問題將來自巴克萊銀行的尼克·坎帕內拉（Nick Campanella）。

Hey, I just want to start right off the bat. Sorry if I missed it, but I know that there has been some sales volume declines this year. Obviously, higher interest rates is hurting everyone. To your point, no major maturities in '24, which is great across the business. But can you just confirm, as you kind of wrap this all together that you can continue to kind of grow the business from an EPS perspective linearly, '24 and '25? And how we should kind of think about that?

嘿，我只想立即開始。抱歉，如果我錯過了，但我知道今年的銷量有所下降。顯然，更高的利率正在傷害每個人。就您而言，24 年沒有重大到期，這對整個行業來說都是很好的。但你能否確認，當你把這一切整合在一起時，你可以繼續從 EPS 的角度線性增長業務，'24 和 '25？我們該如何思考這個問題？

Yes. Hey Nick, it's Joe. Thanks for the question. Yes, we expect linear growth through our plan period, as we've talked about before. Obviously, there's market forces at place, as you mentioned, but we think that they're manageable and can deliver that linear growth.

是的。嘿，尼克，我是喬。謝謝你的提問。是的，正如我們之前討論過的，我們預計在整個計劃期內實現線性增長。顯然，正如您所提到的，存在市場力量，但我們認為它們是可控的並且可以實現線性成長。

That's helpful. And then I know that on the current plan today, there's no rate cases and you'll be staying out. But can you just help us understand what would force you to file if you had to in the next few years? Is it more dependent on current regulatory proposals in front of you in Rhode Island and Kentucky and how those go? Or is it more dictated by the size of the capital plan and ROEs?

這很有幫助。然後我知道，根據今天的當前計劃，沒有費率案例，您將不會參與。但您能否幫助我們了解，如果您必須在未來幾年內提​​交申請，什麼會迫使您提交申請？它是否更依賴羅德島州和肯塔基州目前的監管提案以及這些提案的進展？還是更取決於資本計劃和股本回報率的規模？

Yes, sure. Well, you're right. In our current plan, we just have one rate case in Rhode Island in the back half of 2026. There's obviously a lot of factors that go into determining rate case timing, including -- and you named a few of them, capital plans, interest rates, regulatory lag on capital that doesn't run through some sort of mechanism and many, many more. We're going through our business planning process now, Nick, and we assess all of those factors as we do so. We'll provide views on what we think about rate case and potential timing when we give an update on our year-end call.

是的，當然。嗯，你是對的。在我們目前的計劃中，我們只會在2026 年下半年在羅德島州進行一次利率案例。顯然，確定利率案例時間的因素有很多，包括——你列舉了其中的一些因素，資本計劃、利息利率、未透過某種機制運作的資本監管落後等等。尼克，我們現在正在經歷我們的業務規劃流程，我們將在過程中評估所有這些因素。當我們提供年終電話會議的最新情況時，我們將提供我們對費率案例和潛在時機的看法。

All right. Thanks a lot. We'll see you in Arizona.

好的。多謝。我們在亞利桑那州見。

Yes. Great.

是的。偉大的。

The next question comes from David Arcaro of Morgan Stanley.

下一個問題來自摩根士丹利的大衛‧阿卡羅。

Let's see. With the CPCN, I was wondering, we've seen inflation across supply chains fairly broadly and a lot of components. Wondering if costs have risen for the solar that you're requesting and for the CCGTs that you've got in the plan in front of Kentucky since your initial filing.

讓我們來看看。我想知道，在 CPCN 中，我們已經看到供應鏈中相當廣泛的通貨膨脹，並且涉及許多組成部分。想知道自您最初提交申請以來，您所申請的太陽能以及肯塔基州計劃中的 CCGT 的成本是否有所上升。

Yes, David, we have seen cost increases for the replacement generation plan. We updated all of that in our testimony for the commission. So they have the latest CapEx estimates for our plan. Those are confidential, so I can't disclose here at this time how much those went up. But even with those higher costs, where our analysis is showing that our proposed generation replacement plan is still significantly NPV positive and is, again, the best option that we're showing for customers. So the commission has all of that in the record as they're looking at it.

是的，大衛，我們已經看到更換發電計劃的成本增加。我們在委員會的證詞中更新了所有這些內容。因此他們對我們的計劃有最新的資本支出估算。這些都是保密的，所以我現在不能透露這些上漲了多少。但即使成本較高，我們的分析表明，我們提出的發電更換計劃仍然具有顯著的 NPV 正值，並且再次是我們向客戶展示的最佳選擇。因此，委員會在調查時已將所有這些內容記錄在案。

Yes, makes sense. So it's still economic, and I presume, so a higher CapEx essentially for kind of the full plan that's in front of the commission now.

是的，有道理。所以我認為這仍然是經濟的，所以更高的資本支出本質上是針對現在委員會面前的完整計劃。

That's correct. If the whole plan is approved, it would be incremental to what we have, yes.

這是正確的。如果整個計劃獲得批准，這將是我們現有計劃的增量，是的。

Yes. Okay. Yes. And then as you look forward toward rolling the capital plan forward a year, should we expect equity to be incorporated into the financing strategy? Or is there still balance sheet headroom as you look out to add more CapEx and rate base growth?

是的。好的。是的。然後，當您期待將資本計劃向前推進一年時，我們是否應該期望將股權納入融資策略？或者，當您希望增加更多資本支出和利率基礎成長時，資產負債表是否仍有空間？

Yes, Joe, do you want to talk about that?

是的，喬，你想談談這個嗎？

Yes, sure. So as I talked about in my prepared remarks, Dave, the balance sheet is strong, and we expect to operate in that 16% to 18% FFO or CFO to debt range that we've been talking about. Clearly, we can finance the current capital plan without any need for equity even in today's market. We'll see as we roll the plan forward what that looks like.

是的，當然。因此，戴夫，正如我在準備好的發言中談到的那樣，資產負債表強勁，我們預計 FFO 或 CFO 與債務的比例為 16% 至 18%，這就是我們一直在談論的。顯然，即使在今天的市場上，我們也可以為當前的資本計劃提供資金，而無需任何股權。當我們推進計劃時，我們會看到它是什麼樣子。

Clearly, we have needs for capital investment beyond what's in our plan and how that comes into view. But I feel really good about where our balance sheet is. The strength of the balance sheet and able to maintain our current credit ratings without the need for equity.

顯然，我們對資本投資的需求超出了我們的計劃以及如何考慮。但我對我們的資產負債表狀況感到非常滿意。資產負債表實力雄厚，無需股權即可維持我們目前的信用評等。

Next question comes from Shar Pourreza of Guggenheim Partners.

下一個問題來自古根漢合夥人公司的 Shar Pourreza。

So Vince, I know you mentioned that the O&M savings year-to-date is tracking ahead of the original forecast. It obviously was a key point of the talking points. I guess maybe taking that a step further, can you speak to how you're tracking for the total $175 million by '26. Is there room to exceed now that you've gone further into it?

Vince，我知道您提到今年迄今為止的營運和維護節省量超出了最初的預測。這顯然是談話要點中的一個要點。我想也許更進一步，你能談談你是如何追蹤到 26 年的 1.75 億美元總額的嗎？既然你已經更深入了，還有超越的空間嗎？

Well, overall, Shar, we're tracking very well against the $175 million. So obviously, we have that layered in '24, '25, '26. Joe, I'll let you cover a little more detail on kind of the outperformance for '23. Of course, when we're looking at the additional storm costs and weather, those are anomalistic. And so some of the areas that we targeted to help offset that are things like open positions looking at our maintenance schedules, et cetera. So some of those things will not be permanent, Shar, but we're tracking very well on the $50 million to $60 million, which obviously are permanent on our way to the $175 million.

嗯，Shar，總的來說，我們對 1.75 億美元的追蹤情況非常好。顯然，我們將其分層為「24」、「25」、「26」。 Joe，我會讓您更詳細地了解 23 年的出色表現。當然，當我們考慮額外的風暴成本和天氣時，這些都是反常的。因此，我們旨在幫助抵消的一些領域是諸如未平倉頭寸、查看我們的維護計劃等。所以，Shar，其中一些事情不會是永久性的，但我們在 5,000 萬至 6,000 萬美元方面進展順利，這顯然是永久性的，在我們達到 1.75 億美元的過程中。

Yes, got it. I would just add that we -- as we talked about, we're on track to achieve at least the $50 million to $60 million of efficiencies this year, which gives us confidence in our ability to achieve the $175 million. We have a robust pipeline of initiatives that we're working on. So the team has clearly been extremely focused on delivering on the initiatives that we've established, which is why we're tracking ahead. So we feel really good about where we are today and our ability to hit that $175 million.

是的，明白了。我想補充一點，正如我們所說，今年我們預計將實現至少 5,000 萬至 6,000 萬美元的效率，這讓我們對實現 1.75 億美元的目標充滿信心。我們正在進行一系列強而有力的措施。因此，團隊顯然非常專注於實現我們已經制定的計劃，這就是我們不斷前進的原因。因此，我們對目前的狀況以及實現 1.75 億美元目標的能力感到非常滿意。

Got it. Perfect. And then Vince, I know -- just to maybe reiterate our conversation from the prior call. I mean at this point, are you prepared to be flexible in your plans, depending on how the Kentucky PSC ultimately rules on the CPCN next week? Is that something, I guess, you will be prepared to talk about right after that at EEI? Or you have to wait for the 4Q update?

知道了。完美的。然後是文斯，我知道——也許只是為了重申我們之前通話中的對話。我的意思是，在這一點上，您是否準備好根據肯塔基州 PSC 下週最終對 CPCN 的裁決而靈活調整您的計劃？我想，您會準備在 EEI 之後立即談論這一點嗎？還是要等4Q更新？

Sure. So from a communications perspective, Shar, in a very timely fashion, we'll respond to the decision coming out, what we expect would be next Monday. So you'll hear from us shortly after that. Of course, we'll see many of you all investors and analysts at the EEI Conference the week after that. So likely, I'll be able to get into more detail there. And then we'll do the full business plan update incorporating all of this plus all the other business plan refreshes at our normal cadence of the year-end call.

當然。因此，從溝通的角度來看，Shar，我們將非常及時地對所做的決定做出回應，我們預計下週一就會做出決定。因此，您很快就會收到我們的訊息。當然，我們將在下週的 EEI 會議上見到你們中的許多投資者和分析師。因此，我很可能能夠在那裡了解更多細節。然後我們將按照年終電話會議的正常節奏進行完整的業務計劃更新，其中包含所有這些內容以及所有其他業務計劃的更新。

As we think about the various outcomes of the CPCN, we've talked about this before. Based on all of the testimonials that's been filed, I don't see the outcome being an all or nothing situation regarding the coal plant retirements. But as we just think about the generation portfolio, I've talked about in the past that the CapEx that would be needed to run those plants safely and reliably if we do not retire them would be in that $500 million to $1.5 billion range, really depending on where we end up on the ELG regulations. The source of that is we have to put the maintenance capital for the 4 coal units back in. That would be a couple of hundred million dollars.

當我們思考CPCN的各種成果時，我們之前已經討論過這一點。根據所有已提交的證詞，我認為關於燃煤電廠退役的結果不會是全有或全無的情況。但當我們只考慮發電投資組合時，我過去曾談到，如果我們不退役這些工廠，安全可靠地運行這些工廠所需的資本支出將在 5 億至 15 億美元範圍內，實際上取決於我們最終遵守ELG 法規的情況。原因是我們必須重新投入 4 個燃煤機組的維護資金。這將是幾億美元。

We have a few SCRs that would have to go on some of the plants. So that's in the $300 million, $400 million range. There's some ancillary environmental upgrades that would also need to be done to keep these plants in compliance. That's about another $100 million. And then the ELG regs, as I said, can be quite a significant amount of investment. But on the low end of the range, we think the estimate there is likely around $150 million. Also just talked about the CCGTs. And if we were to get one and not both, right, there is some incremental CapEx there as the prices have gone up from what we had originally had in our plan.

我們有一些 SCR 必須用於某些工廠。所以這個數字在 3 億至 4 億美元之間。為了維持這些工廠的合規性，還需要進行一些輔助環境升級。這大約還需要 1 億美元。然後，正如我所說，ELG 法規可能是一筆相當大的投資。但就該範圍的低端而言，我們認為估計值可能約為 1.5 億美元。剛才還談到了 CCGT。如果我們要獲得其中一個而不是兩者，對吧，那裡會有一些增量資本支出，因為價格比我們最初計劃中的價格有所上漲。

Beyond the generation portfolio, though, we continue to see the need for significant grid-enhancing investments in T&D, particularly transmission and especially in Kentucky. As we've talked about in the past, the large generation investments that we've been making in Kentucky have really resulted in less T&D investment there. However, the need there is great. And so we really need to start making those T&D investments, primarily transmission as soon as we can. So once we have the decision from the commission, we can factor all of these things into ultimately what the capital plan will look like as we update it.

不過，除了發電組合之外，我們仍然認為需要在輸電與發展領域進行大量的電網增強投資，特別是輸電，尤其是在肯塔基州。正如我們過去談到的，我們在肯塔基州進行的大規模發電投資實際上導致了那裡的輸電與發展投資減少。然而，那裡的需求是巨大的。因此，我們確實需要盡快開始進行這些輸電與發展投資，主要是輸電投資。因此，一旦委員會做出決定，我們就可以將所有這些因素納入最終更新資本計畫的內容中。

But we feel very confident that the investment needs are there, Shar. We can finance them with the balance sheet that we have that Joe talked about, not only finance them, but finance them without equity. And so it's why we're confident that we should be able to deliver our growth targets really under various scenarios that we might see next week.

但我們對投資需求的存在非常有信心，Shar。我們可以用喬談到的資產負債表為他們提供資金，不僅為他們提供資金，而且在沒有股權的情況下為他們提供資金。因此，這就是為什麼我們有信心在下周可能看到的各種情況下我們應該能夠真正實現我們的成長目標。

The next question comes from Angie Storozynski of Seaport.

下一個問題來自 Seaport 的 Angie Storozynski。

So I only have 1 question about the fraudulent conveyance lawsuit from Talen. It's -- you guys have tried to have a dismiss. It goes back to 2014. We're talking about potentially very large amounts. And I just wonder if you have any comment.

關於 Talen 的詐欺性產權轉讓訴訟，我只有 1 個問題。這是——你們試圖解僱。這可以追溯到 2014 年。我們談論的是潛在的非常大的金額。我只是想知道你是否有任何評論。

Yes, Angie, no real update since our last call. As you know, the trial date has been set for February of next year. We're looking forward to that trial. As we said all along, we fully believe the distribution of those proceeds were in compliance with all applicable laws, and we stand ready to vigorously defend that position. So nothing really, really new. It being in bankruptcy court, not surprising that some of our motions were not accepted. So not surprising there, but still feel very confident in our case..

是的，安吉，自從我們上次通話以來沒有真正的更新。如您所知，審判日期定於明年二月。我們期待著這次審判。正如我們一直以來所說的，我們完全相信這些收益的分配符合所有適用的法律，我們隨時準備大力捍衛這一立場。所以沒有什麼真正非常新的東西。在破產法庭上，我們的一些動議沒有被接受也就不足為奇了。所以這並不奇怪，但仍然對我們的情況充滿信心。

The next question comes from Paul Zimbardo of Bank of America.

下一個問題來自美國銀行的保羅‧津巴多。

Just to follow up a little bit on the transmission opportunity side. I know you addressed Kentucky pretty well, but what about the Eastern side, the PJM footprint? Like I think there was like a $145 million award. And just holistically, if you could talk about some of the opportunities from Pennsylvania, PJM broadly transmission.

只是在傳輸機會方面進行一些跟進。我知道你對肯塔基州的描述很好，但是東部的 PJM 足跡呢？我認為大概有 1.45 億美元的獎金。就整體而言，如果您能談談賓州、PJM 廣泛傳播的一些機會。

Yes. We'll continue to see opportunity for transmission investments in and throughout PJM to your point, that's an area that we think there's additional opportunity in PPL Electric Utilities, not only supporting within our territory, but also some of the solicitations that are happening to support constraints that are outside of our territory. And as you know, we're active in pursuing those. And so we'll continue to do that. To your point, I think there's additional opportunity beyond what's in the plan.

是的。我們將繼續看到PJM 內和整個PJM 輸電投資的機會，正如您所說，我們認為PPL 電力公用事業公司在這個領域還有額外的機會，不僅在我們的領土內提供支持，而且還支持一些正在進行的招標我們領土之外的限制。如您所知，我們正在積極追求這些目標。所以我們將繼續這樣做。就你的觀點而言，我認為除了計劃之外還有其他機會。

We'll provide more color around that as we provide our fulsome capital updates and update the plan. But to your point, I definitely see transmission, not just in Kentucky as a real need, but also in Pennsylvania and even Rhode Island.

當我們提供豐富的資本更新並更新計劃時，我們將提供更多的色彩。但就你的觀點而言，我確實認為傳輸不僅在肯塔基州是真正的需求，而且在賓夕法尼亞州甚至羅德島州也是如此。

Okay. And then another one, probably fairly obvious, but I just want to check the box there. On the long-term emphasis on long-term refinancing for cap funding, like you're assuming kind of a market interest rate on those maturities with the CAGR purposes?

好的。然後是另一個，可能相當明顯，但我只想勾選那裡的方塊。關於長期強調上限融資的長期再融資，就像您假設這些到期日具有複合年增長率的市場利率一樣？

We are, yes.

我們是，是的。

The next question comes from the line of Anthony Crowdell of Mizuho, please go ahead.

下一個問題來自瑞穗銀行的安東尼克勞德爾，請繼續。

Just one quick one. You talked about the RFP for offshore wind in Rhode Island. Just curious how committed the state is to offshore wind, as you've noticed some other states, particularly New York seems to be bulking at the higher power prices.

就快一點吧。您談到了羅德島州海上風電的 RFP。只是好奇該州對離岸風電的投入程度如何，正如您所注意到的其他一些州，特別是紐約似乎因電價上漲而膨脹。

Yes. Look, I think New England in general, Anthony, is committed right -- their strategy is heavily relying on offshore wind for their clean energy future. We're committed to helping certainly Rhode Island helped to achieve those goals. I think what you saw in New York was as much procedural as it is pricing, where I think the states have concerns just modifying existing PPAs without reopening those up for bid because you may get better pricing if you reopen them. So I think it's more process driven than it is just the price.

是的。安東尼，我認為新英格蘭總體上的承諾是正確的——他們的策略是嚴重依賴離岸風電來實現清潔能源的未來。我們致力於幫助羅德島州實現這些目標。我認為你在紐約看到的程序和定價一樣重要，我認為各州擔心只是修改現有的購電協議而不重新開放投標，因為如果重新開放它們，你可能會得到更好的定價。所以我認為這更多是由流程驅動的，而不僅僅是價格。

Having said that, we rejected our original RFP due to price and other factors. So this latest RFP that we issued, we included an upsized RFP to 1,200 megawatts, which is a more efficient generation size for the developers versus the 800 plus that we had originally went out for -- we're allowing for a longer PPA term beyond 20 years. And then there's the possibility of a multistate solution with Massachusetts and Connecticut, as I talked about in my remarks. So hopefully, those things will be enough for the developers to bring the prices down for our customers. And at a level that both we and the state will be able to accept. So we'll see.

話雖如此，由於價格和其他因素，我們拒絕了最初的 RFP。因此，在我們發布的最新RFP 中，我們將RFP 擴大到1,200 兆瓦，這對開發商來說是一個更有效率的發電規模，而我們最初的目標是800 多兆瓦——我們允許更長的PPA 期限20年。正如我在發言中談到的，也有與馬薩諸塞州和康乃狄克州達成多州解決方案的可能性。因此，希望這些東西足以讓開發商為我們的客戶降低價格。並且達到我們和國家都能接受的水準。所以我們拭目以待。

The next question comes from Ryan Levine of Citi.

下一個問題來自花旗銀行的 Ryan Levine。

Quick question. In terms of the 2.3% industrial load decline in Kentucky for the quarter on a weather-normalized basis, what was the driver of that? And what's your longer-term outlook for industrial growth in Kentucky ahead of the CPCN decision next Monday?

快問。在天氣正常化的基礎上，肯塔基州本季工業負荷下降了 2.3%，其驅動因素為何？在下週一 CPCN 做出決定之前，您對肯塔基州工業成長的長期前景有何看法？

Yes. Ryan, it's Joe. Yes. The -- what you're talking about in Kentucky is that variance is really driven by one large steel manufacturer that's experiencing usage normalization after they saw a large spike during COVID. So they're just normalizing back to where they had been prior to that. And you're seeing that in the year-to-date or the quarterly variances. As we think about longer term for Kentucky, there's been -- and we've talked about it a number of times, significant economic development over the last 2 years or more really 2021 and 2022 at $10 billion of economic development each year.

是的。瑞安，是喬。是的。你在肯塔基州所說的是，這種差異實際上是由一家大型鋼鐵製造商造成的，該製造商在新冠疫情期間看到用量大幅飆升後，正在經歷使用量正常化。所以他們只是恢復到之前的狀態。您可以在年初至今或季度差異中看到這一點。當我們考慮肯塔基州的長期發展時，我們已經多次討論過，在過去兩年或更長時間裡，實際上是 2021 年和 2022 年，每年的經濟發展達到 100 億美元。

The state is expecting another $8 billion this year. It's not all in our service territory, but we're seeing a good portion of it coming to our service territory. So longer-term outlook remains positive for low growth in Kentucky.

該州預計今年還會再投入 80 億美元。它並不全部在我們的服務區域內，但我們看到其中很大一部分進入了我們的服務區域。因此，肯塔基州低成長的長期前景仍然樂觀。

Yes. And Ryan, generally, the industrial class, especially in Kentucky, the margins are not as affected by kilowatt hours as they're predominantly driven on demand and fixed charges. So as Joe said, that was pretty much one customer driving that, but very little impact on margin.

是的。瑞安，一般來說，工業階層，尤其是在肯塔基州，利潤率不會受到千瓦時的影響，因為它們主要是由需求和固定費用所驅動的。正如喬所說，這幾乎是由一個客戶推動的，但對利潤率的影響很小。

This concludes our question-and-answer session. I would like to turn the conference back over to Vince Sorgi for any closing remarks.

我們的問答環節到此結束。我想將會議轉回文斯·索爾吉（Vince Sorgi）發表閉幕詞。

Thanks, operator, and thanks, everybody, for joining us today. As I said, you'll hear from us next week following the decision from the KPSC on the CPCN and then look forward to seeing you all at EEI the following week. So thanks again for joining us.

謝謝接線生，也謝謝大家今天加入我們。正如我所說，下週 KPSC 對 CPCN 做出決定後，您將收到我們的消息，然後期待下週在 EEI 見到您。再次感謝您加入我們。

Conference has now concluded. Thank you for attending today's presentation, and you may now disconnect.

會議現已結束。感謝您參加今天的演示，您現在可以斷開連接了。