PPL packs a powerful punch in Kentucky, Pennsylvania, Tennessee, Virginia, and the UK. It distributes electricity to 10 million customers through regulated subsidiaries PPL Electric Utilities, two utilities in Kentucky, and Western Power Distribution Holdings in the UK. The company has 19,000 MW of generating capacity and also sells energy wholesale in key US markets. Western Power Distribution operates four of the 15 distribution networks providing electricity service in the UK, though WPD (South West) and WPD (South Wales). In 2015 PPL sold its competitive energy operations in order to focus on its regulated utility businesses.
In a major move, in 2015 PPL spun off its non-regulated wholesale energy supply business and combined it with the competitive generation business of Riverstone Holdings to create a stand-alone, publicly traded independent power producer -- Talen Energy Corporation. PPL shareholders own 65% of Talen Energy; affiliates of Riverstone, 35%.
PPL delivers electricity to customers in Kentucky, Pennsylvania, Tennessee, Virginia, and the UK, and natural gas to customers in Kentucky.
In 2014 US accounted for 77% of company’s revenues.
PPL has three business segments: Kentucky Regulated; U.K. Regulated; and Pennsylvania Regulated; PPL operates electricity distribution companies with 1.4 million customers in the US (PPL Electric Utilities, Louisville Gas and Electric-LG&E, and Kentucky Utilities, KU) and more than 7.8 million customers in the UK (Western Power Distribution). The utility operations have 200,000 miles of electric lines.
The Kentucky Regulated Segment (LG&E and KU) is engaged in the regulated generation, transmission, distribution and sale of electricity in Kentucky, Virginia, and Tennessee.
LG&E provides electric service 400,000 customers in Louisville and adjacent areas in Kentucky, covering approximately 700 square miles in nine counties and provides natural gas service to 321,000 customers in its electric service area and eight additional counties in Kentucky. LG&E also engages in the distribution and sale of natural gas in Kentucky.
KU provides electric service to 515,000 customers in 77 counties in central, southeastern and western Kentucky, 28,000 customers in five counties in southwestern Virginia, and fewer than ten customers in Tennessee, covering 4,800 non-contiguous square miles. n Virginia, KU operates under the name Old Dominion Power Company.
In 2014 PPL's net revenues declined by 3% due to a loss of sales from discontinued operations.
The company's net income spiked by 53.7% due to the gain on the sale of its Montana hydroelectric generating facilities.
In 2014 PPL's cash from operating activities increased by 19% due to changes in deferred income taxes and investment tax credits and a pre-tax gain from the sale of the Montana hydroelectric generation business.
Once a global power player with interests in distribution companies worldwide, the company has opted for the UK as its non-US focus. PPL also seeks long term stability by focusing on its regulated power distribution businesses through efficient operations and strong customer and regulatory relations.
The strategy for the regulated businesses of WPD, PPL Electric, LKE, LG&E and KU is to provide efficient, reliable and safe operations and strong customer service, maintain constructive regulatory relationships, and achieve timely recovery of costs.
In 2014, PPL Montana sold its NorthWestern unit (633 MW of hydroelectric generating facilities) for $900 million in cash. The sale included 11 hydroelectric power facilities and related assets, included in the Supply segment. It also sold Hebgen Lake reservoir. Included in the sale were the Thompson Falls Dam on the Clark Fork River; Kerr Dam on the Flathead River; Madison Dam on the Madison River; Mystic Lake Dam on West Rosebud Creek; and Hauser, Holter, Black Eagle, Rainbow, Cochrane, Ryan and Morony dams on the Missouri River.