PPL Corporation (NYSE:PPL) Q1 2024 Earnings Call Transcript

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Vince Sorgi: Thanks, Durgesh.

Operator: And our next question comes from Steve Fleishman with Wolfe Research. Please go ahead.

Vince Sorgi: Hey, Steve. Good morning.

Steve Fleishman: Hey. Good morning. Thanks. So just to kind of, because we’re hearing a lot about data centers. Could you give us any sense of just like how meaningful the deposits are for you to be pursuing this in terms of just the scheme of scale the whole thing? Just as these kind of helps to assess just likelihood, I guess?

Vince Sorgi: Yes. So I don’t want to get into details around like deposits or anything like that, we may [ph], although I will say the agreement, again that we are – that we signed in Pennsylvania, those agreements permit us to start spending on these and then we would get recovery of those for some reason if we don’t move forward. So I think the curiousness of the counterparties as they are seen clearly.

Steve Fleishman: Yes.

Vince Sorgi: Right, and for all the reasons I talked about in my prepared remarks, I think we do bring a number of benefits to bear for these folks. Not the least of which is not only our capacity to connect them, but our ability to meet their in-service deadlines. So we can get this work done in time for 2026 in service states to these data centers. So as of right now, again to your point it’s never done until it’s done, and I appreciate that. But as of now, I’d be pretty disappointed if we didn’t get at least one data center in our service territories. I would expect more than that though.

Steve Fleishman: Okay. And then just in terms of – I mean, we’re hearing data center growth in several other parts of the PJM market. And I’m just wondering, do you see the potential need for more transmission, not for necessarily your own data center, but just for all this broader growth potential in PJM that could create more need and obviously move power flows and the like. Any thoughts there?

Vince Sorgi: Yes, absolutely. And you saw some of that. We’ve won in a FERC 1000 process last year to build into the Dominion Zone for some of the data center load down there. So yes, to your point, depending on where these pockets set up, because generally, as we’re talking with, with these data center companies, it’s not necessarily just one and done. If they can build one, their intention is to expand upon that. And so I think you’ll start to see these data center hubs, start to get created around the country. Obviously, there’s economies of scale if they’re kind of bundling together. And to your point, that creates a demand for transmission into those areas and again, in the Dominion Zone, we ended up winning it was like $100 million to $150 million project to help handle that congestion. So yes, I do think that’s a continued opportunity indeed.

Steve Fleishman: Okay. And then a different topic. Just in Pennsylvania on the DSIC waiver filing. Is this something that is something that could be settleable thing? Or is this something really where the commission just needs to decide?

Vince Sorgi: Yes. In general, certainly, where we can engage with the commission and end up with something in between? Sure, certainly.

Steve Fleishman: Okay. Great. Thank you.

Vince Sorgi: Great. Thank you.

Operator: Thank you. And ladies and gentlemen, this concludes the questions-and-answer session. I’d like to turn the conference back over to Vince Sorgi for closing remarks.

Vince Sorgi: Thanks a lot. And I just want to thank everybody for joining us on today’s call. I do want to remind everyone that this Saturday is the 150th running of the Kentucky Derby, which is the most exciting two minutes in sport. So enjoy the race, and we hope to see you soon. Thanks, everybody.

Operator: Thank you. This concludes today’s conference call. We thank you all for attending today’s presentation. You may now disconnect your lines, and have a wonderful day.

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