8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 

Date of Report (Date of earliest event reported):  August 20, 2021

 

Commission File Number	Registrant; State of Incorporation; Address and Telephone Number				IRS Employer Identification No.
1-11459	PPL Corporation				23-2758192
	(Exact name of Registrant as specified in its charter)
	Pennsylvania
	Two North Ninth Street
	Allentown,		PA	18101-1179
	(610)	774-5151
1-905	PPL Electric Utilities Corporation				23-0959590
	(Exact name of Registrant as specified in its charter)
	Pennsylvania
	Two North Ninth Street
	Allentown,		PA	18101-1179
	(610)	774-5151

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol:	Name of each exchange on which registered
Common Stock of PPL Corporation	PPL	New York Stock Exchange
Junior Subordinated Notes of PPL Capital Funding, Inc.
2007 Series A due 2067	PPL/67	New York Stock Exchange

Indicate by a check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
☐	PPL Corporation
☐	PPL Electric Utilities Corporation
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
☐	PPL Corporation
☐	PPL Electric Utilities Corporation

Section 8 – Other Events

Item 8.01 Other Events

On August 20, 2021, PPL Electric Utilities Corporation ("PPL Electric"), a subsidiary of PPL Corporation, announced it entered into a settlement agreement (the "Settlement") with the PP&L Industrial Customer Alliance ("PPLICA") and all other parties, with respect to the complaint filed by PPLICA with the Federal Energy Regulatory Commission (the "Commission") (Docket No. EL20-48) on May 21, 2020. The other parties to the Settlement, in addition to PPL Electric and PPLICA, are: the Pennsylvania Public Utility Commission, the Pennsylvania Office of Consumer Advocate and American Municipal Power, Inc.

Key aspects of the Settlement include:

•changes to PPL Electric’s base return on equity (ROE):

◦beginning as of May 21, 2020 and continuing through May 31, 2022, the ROE shall be 9.90%;

◦beginning on June 1, 2022 and continuing through May 31, 2023, the ROE shall be 9.95%;

◦beginning on June 1, 2023, the ROE shall be 10.00%, which shall continue in effect unless and until changed as permitted by the terms of the Settlement;

•changing the equity component of PPL Electric’s capital structure to be the lower of (i) PPL Electric’s actual equity component, calculated in accordance with the formula rate template, or (ii) 56.00%;

•that PPL Electric will file within 180 days the following additional changes to its formula rate and that the settling parties agree not to oppose:

◦modifying its current formula rate based on a historic test year to reflect a projected rate year;

◦modifying its current rate year from a June 1 to May 31 period to a calendar year of January 1 to December 31;

•refunds, with respect to which PPL Electric has established a reserve as described in its Quarterly Report on Form10-Q for the period ended June 30, 2021, to be paid by PPL Electric based on the difference between charges that were calculated using the ROE in effect and reduced charges calculated using the ROE provided for in the Settlement, plus interest at the FERC interest rate; and

•a moratorium preventing parties to the Settlement from proposing any changes to the elements of the Settlement that lasts through May 31, 2025.

The change to the ROE based on the Settlement is expected to lower PPL Electric’s net income by approximately $36 million, on an annual basis. The Settlement is subject to review and action by the Commission, including approval, denial or modification. PPL Electric cannot predict the outcome of the Commission’s review of the Settlement. A copy of the press release is filed herewith as Exhibit 99.1 and incorporated by reference herein.

Cautionary Statement on Forward-Looking Statements

Statements in this report regarding future events and their timing, including PPL Electric’s proposed rate changes, future rates, rate mechanisms or returns on equity, as well as statements as to future costs or expenses, regulation, corporate strategy and performance, are “forward-looking statements” within the meaning of the federal securities laws. Although PPL Electric and PPL Corporation (together, the “Companies”) believe that the expectations and assumptions reflected in these forward-looking statements are reasonable, these expectations, assumptions and statements are subject to a number of

risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: subsequent phases of rate proceedings and regulatory cost recovery; market demand and prices for electricity and natural gas; political, regulatory or economic conditions in states and regions where the Companies conduct business; and the progress of actual construction, purchase or installation of assets or operations subject to tracker mechanisms. All forward-looking statements should be considered in light of these important factors and in conjunction with the Companies’ Form 10-K and other reports on file with the Securities and Exchange Commission.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d)	Exhibits
	99.1 -	Press release, dated August 20, 2021, announcing PPL Electric Reaches Agreement to Lower Transmission Rates
	104 -	Cover Page Interactive Data File (the Cover Page Interactive Data File is embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, each Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PPL CORPORATION
By:	/s/ Marlene C. Beers
	Marlene C. Beers Vice President and Controller
PPL ELECTRIC UTILITIES CORPORATION
By:	/s/ Stephen K. Breininger
	Stephen K. Breininger Vice President-Finance and Regulatory Affairs and Controller

Dated:  August 20, 2021

EX-99.1

Exhibit 99.1
news release
www.pplnewsroom.com

Contacts: For news media: Caitlin Brady, 610-774-4490 For financial analysts: Andy Ludwig, 610-774-3389

PPL Electric Utilities Reaches Agreement to Lower Transmission Rates

Savings are anticipated to hit customer bills beginning Dec. 1, 2021

ALLENTOWN, Pa. (Aug. 20, 2021) – PPL Electric Utilities (PPL Electric) reached an agreement today that, if approved by the Federal Energy Regulatory Commission, will reduce the company's transmission rates and lower customer bills.

The agreement, reached with a group of industrial and municipal customers, would reset the base return on equity for PPL Electric’s transmission formula rate from 11.18% to 9.9%, saving the typical residential customer about $1.54 and the typical business customer about $2.15 on their monthly electric bill over a 12-month period. The savings and refunds will be effective Dec. 1, 2021.

The transmission rate is a component of the supply charge listed on customer bills, and PPL Electric passes those savings directly on to its customers who choose PPL’s Price to Compare service. However, suppliers are not required to do the same. Shopping customers who have chosen an energy supplier – especially those with long-term contracts – are encouraged to contact their supplier to confirm that the lower transmission rate will be reflected in their bill.

"We're committed to keeping the lights on for customers at a reasonable cost," said PPL Electric President Steph Raymond. "Because of our forward-thinking investments, we have one of the most reliable grids, and our customers continue to pay below the average rate for the mid-Atlantic region."

PPL Electric provides electric delivery service to more than 1.4 million homes and businesses in Pennsylvania and ranks among the best utility companies in the country for customer service and reliability. PPL Electric is a major employer in the communities it serves. It is a subsidiary of PPL Corporation (NYSE: PPL). For more information visit www.pplelectric.com.

# # #

Note to Editors: Visit our media website at www.pplnewsroom.com for additional news and background about PPL Corporation and PPL Electric.

XML

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Document Entity Information [Line Items]
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Entity Central Index Key	0000922224
Entity Emerging Growth Company	false
Written Communications	false
Document Type	8-K
Entity File Number	1-11459
Entity Registrant Name	PPL Corporation
Entity Tax Identification Number	23-2758192
Entity Incorporation, State or Country Code	PA
Entity Address, Address Line One	Two North Ninth Street
Entity Address, City or Town	Allentown,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18101-1179
City Area Code	(610)
Local Phone Number	774-5151
Document Period End Date	Aug. 20, 2021
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Common Stock [Member]
Document Entity Information [Line Items]
Title of 12(b) Security	Common Stock of PPL Corporation
Trading Symbol	PPL
Security Exchange Name	NYSE
2007 Series A Due 2067 [Member]
Document Entity Information [Line Items]
Title of 12(b) Security	2007 Series A due 2067
Trading Symbol	PPL/67
Security Exchange Name	NYSE
PPL Electric Utilities Corp [Member]
Document Entity Information [Line Items]
Amendment Flag	false
Entity Central Index Key	0000317187
Entity Emerging Growth Company	false
Entity File Number	1-905
Entity Registrant Name	PPL Electric Utilities Corporation
Entity Tax Identification Number	23-0959590
Entity Incorporation, State or Country Code	PA
Entity Address, Address Line One	Two North Ninth Street
Entity Address, City or Town	Allentown,
Entity Address, State or Province	PA
Entity Address, Postal Zip Code	18101-1179
City Area Code	(610)
Local Phone Number	774-5151