PPL Corporation

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PPL Corporation
TypePublic
IndustryElectric utilities
FoundedJune 4, 1920; 101 years ago (June 4, 1920)
Headquarters,
U.S.
Key people
Vincent Sorgi, President and Chief Executive Officer
RevenueUS$7.6 billion (Q4 2020)
US$1.469 billion (Q4 2020)
Number of employees
more than 5,600 (2021)
Websitepplweb.com

PPL Corporation is an energy company headquartered in Allentown, Pennsylvania, United States. It generates about 7,500 megawatts of power in Kentucky.

The company is publicly traded on the New York Stock Exchange.

History[edit]

Pennsylvania Power & Light was founded in 1920 out of a merger of eight smaller Pennsylvania utilities. It gradually extended its service territory to a crescent-shaped region of central and northeastern Pennsylvania stretching from Lancaster, through the Lehigh Valley into Scranton and Wilkes-Barre. In 1995, it reorganized as a holding company, PP&L Resources, which changed its name to the current PPL Corporation in 2000.

The company limited its activities to Pennsylvania until deregulation of electrical utilities in the 1990s encouraged PPL to purchase assets in other states. The largest of these transactions was PPL's 1998 purchase of 13 plants from Montana Power (leaving NorthWestern Energy – the buyer of the former Montana Power transmission and distribution systems – vulnerable to high "spot" prices on the energy market). This added over 2,500 MW of capacity and was the largest expansion in PPL's history. In 2014, those hydroelectric facilities were sold to NorthWestern.[1]

In 2010, PPL completed the acquisition of two regulated utilities in Kentucky: Louisville Gas and Electric and Kentucky Utilities.

In 2011, PPL completed the acquisition of two regulated regional electricity distribution companies in the United Kingdom. Together, with two previously acquired regional electricity distribution companies, they operate under the name Western Power Distribution (WPD).

On June 6, 2014, PPL announced it would divest its electrical generation facilities to a newly formed company, Talen Energy.[2] On June 1, 2015, the Talen spinoff was completed, allowing PPL to concentrate on the transmission and distribution aspects of the electric utility business.[3]

In 2020, PPL initiated a formal process to sell WPD in order to position PPL as a purely U.S.-focused energy company and create additional shareowner value. This resulted in a March 18, 2021, announcement of agreements to sell WPD to National Grid plc for £7.8 billion and acquire National Grid's Rhode Island electric and gas utility, the Narragansett Electric Company, for $3.8 billion.[4] The sale of WPD was completed on June 14, 2021.

Subsidiaries[edit]

Customer satisfaction[edit]

PPL's companies regularly rank high in customer satisfaction studies. PPL Electric Utilities, which serves 1.4 million customers in 29 counties in Pennsylvania, has received 28 J.D. Power and Associates awards for customer satisfaction.

Louisville Gas and Electric and Kentucky Utilities, which serve 1.3 million customers in almost 100 counties across Kentucky and Virginia, have won 26 J.D. Power awards for customer satisfaction.

Headquarters[edit]

The PPL Building is the tallest building in Allentown, Pennsylvania.

PPL Building[edit]

The PPL Building is now the tallest building in not just Allentown, but in the greater Lehigh Valley, after the demolition of the Martin Tower on May 19, 2019. The building has 23 stories and is 322 feet (98 m) tall. It is located at the intersection of Hamilton and Ninth Streets in the downtown area of the city.

Investments[edit]

In a speech before the Edison Electric Institute Financial Conference in November 2019, William Spence, PPL's former chairman and chief executive officer, said that the company is focusing on building more advanced cleaner energy technologies and is also increasing its effort on a strategy known as "Energy Forward." The company is investing around $15 billion through 2022 to improve infrastructure and technology in order to "create a smarter, more reliable and resilient energy grid," according to Spence. In the third quarter of 2019, PPL completed a $470 million investment in replacing meters with "advanced" meters in Pennsylvania.[5]

Marketing[edit]

In February 2010, PPL Corporation purchased the naming rights to the venue originally known as PPL Park in Chester, Pennsylvania (which is outside of PPL's service territory), the home stadium of Major League Soccer's Philadelphia Union. As part of the $25 million, 11-year deal, PPL EnergyPlus provides sustainable energy to PPL Park derived from other sources in Pennsylvania.[6] After PPL spun off its non-regulated generation business into the separate Talen Energy, the stadium naming rights were assumed by the spinoff company and the venue became known as Talen Energy Stadium.[7] In February 2020, the park was named Subaru Park.[8]

PPL owns the naming rights to the PPL Center in Allentown, which hosts the Lehigh Valley Phantoms of the American Hockey League starting with the 2014 season. PPL paid an undisclosed sum over ten years.[9]

References[edit]

  1. ^ "NorthWestern Energy closes deal to purchase PPL Montana hydroelectric facilities".
  2. ^ Poole, Claire (June 10, 2014). "PPL, Riverstone create Talen Energy". The Street. Retrieved March 18, 2015.
  3. ^ Kraus, Scott (June 1, 2015). "Talen Energy launches Monday, sells stock Tuesday". The Morning Call. Retrieved June 1, 2015.
  4. ^ Fitzpatrick, Edward (18 March 2021). "Narragansett Electric Company sold to Pennsylvania company - The Boston Globe". BostonGlobe.com. Retrieved 2021-03-18.
  5. ^ "PPL CEO says utilities focused on investing in sustainable energy, delivering fair shareholder returns". Daily Energy Insider. 2019-11-13. Retrieved 2019-11-18.
  6. ^ Jasner, Andy (February 25, 2010). "PPL buys naming rights". Philadelphia Union. Retrieved February 26, 2010.[permanent dead link]
  7. ^ "Talen Energy Assumes Stadium Naming Rights". Philadelphia Union (Press release). Retrieved December 1, 2015.
  8. ^ "Philadelphia Union and Subaru of America Announce Stadium Naming Rights Partnership" (Press release). Philadelphia Union. February 18, 2020. Retrieved July 31, 2020.
  9. ^ "Allentown hockey arena will be PPL Center". Lehigh Valley Live. Allentown. February 2013. Retrieved February 27, 2013.

External links[edit]