This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

PPL's United Kingdom Subsidiaries Accepted For 'Fast Tracking'

ALLENTOWN, Pa., Feb. 28, 2014 /PRNewswire/ -- PPL Corporation (NYSE: PPL) received official confirmation Friday (2/28) that business plans submitted by its four Western Power Distribution subsidiaries in the United Kingdom have been accepted in full, subject to a cost of equity change, for the 8-year price control period starting April 1, 2015.

In announcing its final "fast track" decision for the WPD subsidiaries, the Office of Gas and Electricity Markets (Ofgem) issued a final determination of base revenues for the period, and operating results that must be delivered in order to earn bonus revenue for exceptional performance.

"The well-justified business plans we submitted in July 2013 reflect the excellence in reliability, cost and customer satisfaction that our U.K. team has consistently delivered," said Rick L. Klingensmith, president of PPL Global. "We appreciate Ofgem's recognition of the high quality in our business plans, and our ability to deliver value to customers."

Ofgem set the real cost of equity for the WPD subsidiaries at 6.4 percent, above the 6.0 percent rate for electric distribution companies not accepted for fast tracking. Projected earnings ranges for PPL's U.K. Regulated business segment are unchanged from the company's announcement in July 2013.

Fast tracking affords several benefits to the WPD subsidiaries, including the ability to collect additional annual revenue equivalent to 2.5 percent of total annual expenditures, or approximately $35 million, a higher level of cost savings retention, and completion of the regulatory review process nine months earlier than other electricity distribution companies.

"With the final determination in place, we can turn our full attention to preparing to execute on our business plans starting next April, delivering the expected results for our customers, the regulator and PPL shareowners," Klingensmith said.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs