PPL Corporation outlines US$5B to US$7B QTS power plan, raises growth target
The nonbinding terms cover about 2 gigawatts, while the regulated capital plan requires US$3 billion in additional equity.
Ines Halvorsen
First power could arrive as early as 2029 under a roughly 2-gigawatt generation plan that PPL Corporation NYSEPPL outlined on Friday for QTS's Pennsylvania data centre campus. PPL's Nov. 6 presentation estimates total investment at US$5 billion to US$7 billion. The proposed arrangement with QTS covers an initial 20 years, with multiple five-year renewals permitted.
The term sheet is nonbinding and subject to customary conditions precedent. PPL's share of the estimated investment is US$2.5 billion to US$3.5 billion, according to the Nov. 6 presentation. Its Invitium Energy venture has signed a separate cost-reimbursement agreement covering development costs and commitments if certain approvals and development conditions are not achieved.
Separately, the utility raised its annual earnings-per-share growth target to 7 to 9 per cent through at least 2030, with growth expected in the upper half. Its Nov. 6 earnings release says that outlook excludes potential investment and earnings from Invitium.
PPL shares rose 0.42 per cent to US$36.15 on the New York Stock Exchange as of 1:38 p.m. EST on Friday, according to the NYSEPPL quote on Google Finance.
PPL operates regulated utility businesses in Pennsylvania, Kentucky and Rhode Island. Its updated regulated capital plan calls for US$25 billion from 2027 through 2030, supported by projected average annual rate-base growth of 10 per cent.
The Nov. 6 release identifies approximately US$3 billion in additional equity financing needs for that plan. This is beyond more than US$1.5 billion already executed through forward sales agreements during 2025 and 2026. The equity requirement applies to the regulated business plan, which excludes Invitium.
For the third quarter of 2026, reported net income reached US$367 million, compared with US$318 million a year earlier. Adjusted earnings from ongoing operations rose to US$0.54 per share from US$0.48.
Gas Plants Are Expected In 2032 And 2033
PPL's Nov. 6 presentation describes two proposed combined-cycle natural gas plants complemented by fuel cells and battery storage. The final fuel-cell and battery mix remains under development, with those components potentially online as early as 2029.
"The term sheet is nonbinding and subject to customary conditions precedent," PPL said in its Nov. 6 presentation.
The proposed payment structure includes fixed monthly payments, with annual escalation, covering capital recovery, returns and fixed operating costs. Variable payments would cover fuel and variable operating costs when the plants run. The presentation gives no electricity price per megawatt-hour.
PPL owns 51 per cent of Invitium. Across the venture, executed gas-turbine reservation agreements cover 5 gigawatts, the Nov. 6 release says; reservations do not establish commissioning dates for that wider portfolio.
Other US generators are also setting out their funding capacity for expansion. Vistra Corp. NYSEVST forecast on Nov. 6 adjusted free cash flow before growth of US$4.3 billion to US$5.1 billion for 2027. That measure leaves growth investment outside the forecast.
Read more: Vistra reports US$2.38B adjusted EBITDA and sets 2027 outlook
For the QTS plan, PPL's Nov. 6 schedule places the combined-cycle plants online in 2032 and 2033, after the potential 2029 fuel-cell and battery start. Those remain expected operating dates under a nonbinding term sheet.
