Aug. 17, 2026
— Jeff Ward, Lehigh Valley News Briefs
PPL Corp. said in a federal filing today that Kentucky’s utility regulator approved rate increases that will add millions of dollars in revenue at the company’s Bluegrass State operations.
The Allentown-based utility serves Kentucky via Louisville Gas and Electric, and Kentucky Utilities Co.
On Friday, the Kentucky Public Service Commission (KPSC) issued an order approving some, but not all, of what PPL sought.
As a result, PPL’s two Kentucky businesses “currently estimate that the KPSC order represents increases of approximately $4 million in annual LG&E electricity and gas revenues and approximately $3 million in annual KU electricity revenues, above the increased amounts contained in the KPSC’s February 2026 order.”
PPL operates in Pennsylvania, Kentucky and Rhode Island. Kentucky has pushed back on some of the company’s plans to burn less coal.
Coal is Kentucky’s state rock. Until 2024, coal was the state mineral but coal is not a mineral. For the geology challenged, coal can’t be a mineral because it lacks a crystalline structure and it is composed of ancient plants. Its content varies. When coal became the state rock, Kentucky deemed calcite to be the state mineral.
In the Lehigh Valley, PPL raised its distribution rate for the first time in 10 years and increased the “default rate” it charges customers who do not shop around for electricity this year.
The Kentucky decision does not affect PPL’s financial forecasts, according to the filing: “In connection with the KPSC order, PPL Corporation reaffirms its previously disclosed long-term earnings per share growth targets.”
The additional revenue of $7 million or so won’t make a huge difference at the energy company. PPL’s 2025 operating revenue was $9.04 billion.
The closing price of PPL shares (NYSE:PPL) on Friday was $36.02, giving the company a market capitalization of $27.1 billion. It provides natural gas and electricity to more than 3.6 million customers, and in Pennsylvania and Kentucky, is preparing to provide energy to data centers.
Disclosure: I own shares of PPL.
Here is a link to the filing and below is a cut-and-paste version of the SEC document:
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On August 14, 2026, the Kentucky Public Service Commission (“KPSC”) issued an order in the base rate proceedings of Louisville Gas and Electric Company (“LG&E”) and Kentucky Utilities Company (“KU”, and collectively with LG&E, the “Companies”) relating to the Companies’ requests for rehearing of the KPSC’s February 2026 orders granting certain increases in the Companies’ annual electricity and gas revenues and associated accounting and other matters.
The KPSC order approved certain elements of the Companies’ rehearing requests, including matters relating to incorporating regulatory assets and liabilities in rate base calculations and recovery therein, utilizing updated cost estimates in a potential recovery cap in the Companies’ Pilot Generation Recovery Clause mechanism, and allowing pre-2026 costs to be included in a regulatory asset relating to LG&E’s stay-open costs regarding Mill Creek Unit 2.
The KPSC order denied other elements of the Companies’ rehearing requests, including seeking reinstatement of certain other aspects of a prior October 2025 stipulation and recommendation of the Companies and certain intervenors in the rate increase proceedings.
The Companies currently estimate that the KPSC order represents increases of approximately $4 million in annual LG&E electricity and gas revenues and approximately $3 million in annual KU electricity revenues, above the increased amounts contained in the KPSC’s February 2026 order. The revised rates are effective for services on and after the date of the order.
In connection with the KPSC order, PPL Corporation reaffirms its previously disclosed long-term earnings per share growth targets.
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Lehigh Valley News Briefs 