ALLENTOWN, Pa. - PPL Corporation (NYSE:PPL)'s subsidiary, Rhode Island Energy, recently secured approval from the Rhode Island Public Utilities Commission for a significant investment in the state's electric and gas infrastructure.
The unanimous decision, made last Thursday, allows for approximately $326 million in spending for the fiscal year starting April 1, 2024, and ending March 31, 2025. This funding is aimed at enhancing the safety and reliability of Rhode Island's energy networks.
The approved expenditure is part of Rhode Island Energy's annual electric and gas Infrastructure, Safety and Reliability plans. It includes around $300 million in capital investments, with $132 million allocated for electric and $168 million for gas infrastructures.
Moreover, $26 million is earmarked for operating costs, which will cover vegetation management, restoration paving following gas main replacement projects, system inspections, and other essential maintenance activities.
Vincent Sorgi, President and CEO of PPL, highlighted the importance of these investments. He stated that they are crucial for maintaining and improving the safety and reliability of electricity and gas services for customers in Rhode Island. Moreover, these investments support Rhode Island's progressive clean energy transition goals, which are among the most ambitious in the United States.
In conjunction with the approval announcement, PPL reaffirmed its 2024 earnings forecast, projecting a range of $1.63 to $1.75 per share, with a midpoint of $1.69 per share. The company also reiterated its anticipated annual earnings per share growth of 6% to 8% through at least 2027 and confirmed its $14.3 billion capital investment plan spanning from 2024 to 2027.
Rhode Island Energy, part of the PPL family of companies, delivers essential energy services to nearly 800,000 customers across Rhode Island. PPL Corporation, based in Allentown, Pennsylvania, serves over 3.5 million customers in the U.S. and is committed to providing safe, reliable, and affordable electricity and natural gas.
The company is known for its high-performing utilities that are actively building smarter, more resilient, and dynamic power grids while advancing sustainable energy solutions.
This report is based on a press release statement from PPL Corporation and Rhode Island Energy.
InvestingPro Insights
PPL Corporation's recent approval for infrastructure investment is a significant step in enhancing the company's service reliability and supporting Rhode Island's clean energy initiatives. To provide additional context to the company's financial health and investment potential, here are some insights based on real-time data and InvestingPro Tips:
InvestingPro Data:
- PPL Corporation has maintained a stable market capitalization of $20.35 billion, showcasing its substantial presence in the energy sector.
- The company's P/E ratio stands at 21.9 based on the last twelve months as of Q4 2023, indicating investor perspectives on its earnings.
- With a dividend yield of 3.75% as of the most recent data, PPL continues to reward shareholders, having done so for 54 consecutive years.
InvestingPro Tips:
- Despite two analysts revising their earnings downwards for the upcoming period, PPL Corporation has been profitable over the last twelve months and analysts predict it will remain profitable this year.
- The stock is known to trade with low price volatility, which could appeal to investors looking for stability in their portfolio.
For investors interested in a deeper analysis of PPL Corporation's financials and future outlook, additional InvestingPro Tips are available. There are 5 more tips listed on InvestingPro, which can be accessed by visiting https://www.investing.com/pro/PPL. Utilize the coupon code PRONEWS24 to get an extra 10% off a yearly or biyearly Pro and Pro+ subscription, offering even more valuable insights for informed investment decisions.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.