Investor Presentaiton
Pennsylvania Regulatory Overview
PPL Electric Utilities
Key Attributes
2022 Rate Base
Year-End Rate Base ($B)
$9.4
% of Total PPL Rate Base
39%
Allowed ROE
Electric Transmission
Electric Distribution
Capital Structure (2021A)
Equity
Debt
Last Base Rate Case
(rates effective date)
Test Year
ppl
Constructive Regulatory Features Mitigating Regulatory Lag
9.95%+adders (1)(2)
(3)
56%
44%
1/1/2016
FERC Formula Transmission Rates
Distribution System Improvement Charge (DSIC) Mechanism
■
An alternative ratemaking mechanism providing more-timely cost recovery of
qualifying distribution system capital expenditures
Pass through of energy purchases
Smart Meter Rider
Storm Cost Recovery
Alternative Ratemaking (4)
Forward Test Year
■
In Pennsylvania, there are various mechanisms available including:
decoupling mechanisms, performance-based rates, formula rates, and multi-
year rate plans
(1) 9.95% base allowed ROE per settlement approved by FERC in November 2021. PPL Electric's base return on equity for transmission will increase to 10.0% beginning on June 1, 2023 in connection with the terms of the settlement.
Adders include 50-basis points for RTO membership and incremental returns for certain projects.
(2)
(3)
Last Pennsylvania Distribution rate case was effective 1/1/2016 with an un-disclosed ROE.
(4)
Alternative ratemaking is available for next distribution base rate case.
22
22View entire presentation