A Look at PPL Corporation’s Rate Base Growth



PPL Corporation: Rate base

PPL Corporation’s (PPL) projected 5% annual rate base growth is expected to drive its EPS growth in the next few years. PPL’s Pennsylvania Transmission rate base is expected to increase 10% while the UK (or Western Power Distribution) rate base is estimated to grow more than 5%, compounded annually through 2020.

PPL ppt

Incremental spending can improve a utility’s rate base, which can have a positive impact on its earnings. The business model of regulated utilities (XLU) generally supports the company in spending more in operational territories to earn more.

Article continues below advertisement

More From Market Realist