PPL Corporation

“Due to environmental requirements, energy efficiency measures, and the relative cost of replacement resources, as of December 31, 2025, LG&E and KU have retired approximately 1,500 MW of coal-fired generation plants since 2010.”

Annual report 2025A · The company itself

“Risks Specific to Kentucky Regulated Segment (PPL, LG&E and KU) We are subject to financial, operational, regulatory and other risks related to requirements, developments and uncertainties in environmental regulation, including those affecting coal-fired generation facilities. Extensive federal, state and local environmental laws and regulations are applicable to LG&E's and KU's generation supply, including its air emissions, water discharges (ELGs) and the management of hazardous and solid wastes (CCRs), among other business-related activities, and the costs of compliance or alleged non-compliance cannot be predicted and could be material.”

Annual report 2025A · The company itself

“At some of our older generating facilities it may be uneconomic for us to install necessary pollution control equipment, which could cause us to retire those units.”

Annual report 2025A · The company itself

“During 2025, LG&E's and KU's power plants generated the following amounts of electricity: GWh Fuel Source LG&E KU Coal 10,331 14,738 Gas 1,613 4,899 Hydro 220 105 Solar 8 12 Total (a) 12,172 19,754 (a)This generation represents an increase for LG&E of 3% and an increase for KU of 5% from 2024 output.”

Annual report 2025A · The company itself

“Fuel inventory is maintained at levels estimated to be necessary to avoid operational disruptions at coal-fired generating units. Reliability of coal deliveries can be affected from time to time by several factors including fluctuations in demand, coal mine production issues, high or low river level events, lock outages and other supplier or transporter operating or financial difficulties.”

Annual report 2025A · The company itself

“LG&E and KU have entered into coal supply agreements with various suppliers for coal deliveries through 2030 and augment their coal supply agreements with spot market purchases, as needed.”

Annual report 2025A · The company itself

“The performance of coal markets and producers may be the subject of increased counterparty risk to LG&E and KU currently due to weaknesses in such markets and suppliers. The coal industry is subject to increasing competitive pressures from natural gas markets, political pressures and new or more stringent environmental regulation, including regulation of combustion byproducts and water inputs or discharges.”

Annual report 2025A · The company itself

“The electricity generating capacity at December 31, 2025 was: LG&E KU Primary Fuel/Plant Total MW Capacity Summer % Ownership or Other Interest Ownership or Other Interest in MW % Ownership or Other Interest Ownership or Other Interest in MW Coal Ghent - Units 1- 4 1,919 100.00 1,919 Mill Creek - Units 2- 4 1,165 100.00 1,165 E.W. Brown - Unit 3 412 100.00 412 Trimble County - Unit 1 (a) 493 75.00 370 Trimble County - Unit 2 (a) 732 14.25 104 60.75 445 4,721 1,639 2,776 Natural Gas/Oil E.W.”

Annual report 2025A · The company itself

“Table of Contents The business and capital investment plans of PPL depend, in part, on the continued growth and viability of data centers and large load customers in its service territories. PPL is anticipating increases in load demand, creating a business need for new power generating resources and transmission facilities. Much of this demand is driven by interconnecting with and providing power to data centers and large load customers to serve an increasingly digital economy and to support artificial intelligence.”

Annual report 2025A · The company itself

“Artificial Intelligence (AI) is an evolving area of technology that has the potential to affect multiple aspects of our business operations, grid management, critical infrastructure management, customer interactions, cybersecurity posture, and decision support processes. Because AI technologies remain in the early stages of development and industry standards are still emerging, their use, whether by PPL, its subsidiaries or third-party vendors, presents inherent risks.”

Annual report 2025A · The company itself

“Although we seek contractual protections and conduct due diligence with third-party vendors that incorporate AI technologies into their products or services, we may not have full visibility into, awareness of, or control over, the underlying data, supply chain dependencies, model training practices, performance, security safeguards, or compliance posture of such AI enabled tools. AI algorithms that we or our third-party vendors use may be flawed or may be based on datasets that are biased or insufficient, which may introduce risks involving data quality, data integrity, cybersecurity, adversarial manipulation, intellectual property, regulatory compliance, biased outcomes, or improper handling of sensitive information.”

Annual report 2025A · The company itself

“PPL is anticipating increases in load demand, creating the need for new power generating resources and transmission facilities. A substantial portion of this demand is driven by the current and projected power needs of data centers to serve an increasingly digital economy and to support artificial intelligence.”

Annual report 2025A · The company itself

“Table of Contents The business and capital investment plans of PPL depend, in part, on the continued growth and viability of data centers and large load customers in its service territories. PPL is anticipating increases in load demand, creating a business need for new power generating resources and transmission facilities. Much of this demand is driven by interconnecting with and providing power to data centers and large load customers to serve an increasingly digital economy and to support artificial intelligence.”

Annual report 2025A · The company itself

“The regulated utility businesses are capital intensive and require significant investments in energy generation (in the case of LG&E and KU) and transmission, distribution and other infrastructure projects, including providing service to new data centers and large load customers, constructing projects for environmental compliance and maintaining system reliability.”

Annual report 2025A · The company itself

“Extending service to these facilities necessitates significant capital expenditures, which in turn requires sufficient access to sources of capital. These additional capital needs, the increased concentration of business within a single industry based on emerging technologies, and uncertainties regarding the actual capacity required to satisfy the projected new demands of these new industries creates risks for PPL.”

Annual report 2025A · The company itself

“PPL is anticipating increases in load demand, creating the need for new power generating resources and transmission facilities. A substantial portion of this demand is driven by the current and projected power needs of data centers to serve an increasingly digital economy and to support artificial intelligence.”

Annual report 2025A · The company itself

“(PPL, LG&E and KU) EPA Deregulatory Initiative On March 12, 2025, the EPA announced a plan to reconsider 31 environmental rules including the Section 111 performance standards and emissions limits for greenhouse gases, the endangerment finding for greenhouse gases, the Good Neighbor Plan, the Mercury and Air Toxics Standards, revisions to the fine particulate matter standard, the ELGs, and the CCRs Rule. Supplementing previous Executive Orders directing various regulatory changes, on April 9, 2025, President Trump issued an Executive Order and Presidential Memorandum directing review of existing rules, repeal of unlawful rules, and initiation of a zero-based budgeting process by which certain rules would automatically expire unless extended.”

Annual report 2025A · The company itself

“Greenhouse gas regulation such as the EPA's May 2024 rule governing emissions from certain fossil fuel-fired electric generating units could increase the cost of electricity, and such increases could have a depressive effect on regional economies.”

Annual report 2025A · The company itself

“PPL has adopted a goal of net-zero carbon emissions by 2050, which PPL expects will include continuing to retire uneconomic generation, deploying newer generation technology and investing in research and innovation that will help to achieve this goal, while maintaining reliable and affordable energy in our service territories. The net-zero goal relates to direct and indirect carbon emissions consistent with Greenhouse Gas Protocol guidance and referenced by the EPA Center for Corporate Climate Leadership.”

Annual report 2025A · The company itself

“(PPL and LG&E) We are subject to regulatory and other risks regarding natural gas supply infrastructure. The PHMSA enforces regulations that govern the design, construction, operation and maintenance of pipeline facilities.”

Annual report 2025A · The company itself

“The PHMSA enforces regulations that govern the design, construction, operation and maintenance of pipeline facilities. Failure to comply with these regulations could result in the assessment of fines or penalties against RIE.”

Annual report 2025A · The company itself

“During 2025, LG&E's and KU's power plants generated the following amounts of electricity: GWh Fuel Source LG&E KU Coal 10,331 14,738 Gas 1,613 4,899 Hydro 220 105 Solar 8 12 Total (a) 12,172 19,754 (a)This generation represents an increase for LG&E of 3% and an increase for KU of 5% from 2024 output.”

Annual report 2025A · The company itself

“To enhance the reliability of natural gas supply, LG&E and KU have secured firm long-term pipeline transport capacity services with contracts of various durations through 2056 on the interstate pipeline serving Cane Run Unit 7, six simple cycle combustion turbines at the Trimble County site, and the future Mill Creek Unit 5. This pipeline also serves the two simple cycle units at the Paddy's Run site.”

Annual report 2025A · The company itself

“LG&E and KU have firm contracts for a portion of the natural gas fuel for Cane Run Unit 7 through 2027. The bulk of the natural gas fuel is expected to be purchased on the spot market.”

Annual report 2025A · The company itself

“LG&E purchases natural gas supply transportation services from two pipelines. LG&E has a set of contracts with one pipeline that are subject to termination by LG&E between 2028 and 2031. Total winter season capacity under these contracts is 184,900 MMBtu/day and summer season capacity is 60,000 MMBtu/day.”

Annual report 2025A · The company itself

“Natural Gas Distribution Supply To meet the projected annual gas supply requirements of approximately 35 Bcf, RIE has a portfolio of gas supply arrangements of varying contractual terms and durations to provide service to its customers. These natural gas supply arrangements include contracts with natural gas producers and marketers that reflect market price signals. RIE also has firm pipeline and underground storage capacity contracts to support the delivery of natural gas supplies to its customers.”

Annual report 2025A · The company itself

“The RIE gas supply portfolio includes contracts for firm transportation service with eleven interstate pipeline companies and natural gas storage operators. These contracts have various termination dates with certain contracts being subject to evergreen renewal provisions providing RIE with flexibility in managing its upstream resource portfolio.”

Annual report 2025A · The company itself

“We purchase from a variety of suppliers energy, capacity, fuel, natural gas, transmission service and certain commodities used in the physical operation of our businesses, as well as goods or services, including information technology rights and services, used in the administration of our businesses.”

Annual report 2025A · The company itself

“Table of Contents On November 6, 2023, the KPSC issued an order approving LG&E's and KU's December 15, 2022 CPCN requests (i) to construct a 645 MW net summer rating NGCC combustion turbine at LG&E's Mill Creek Generating Station in Jefferson County, Kentucky, (ii) to construct a 120 MWac solar photovoltaic electric generating facility in Mercer County, Kentucky, (iii) to acquire a 120 MWac solar facility to be built by a third-party solar developer in Marion County, Kentucky and (iv) to construct a 125 MW, 4-hour battery energy storage system facility at KU's E.W. Brown Generating Station.”

Annual report 2025A · The company itself

“Table of Contents (PPL and LG&E) Natural Gas Distribution Supply Four underground natural gas storage fields in service, with a current working natural gas capacity of approximately 11 Bcf, are used to provide natural gas service to LG&E's firm sales customers. Natural gas is stored during the summer season for withdrawal during the following winter heating season. Without this storage capacity, LG&E would need to purchase additional natural gas and pipeline transportation services during winter months when customer demand increases, and the cost of natural gas supply and pipeline transportation services are expected to be higher.”

Annual report 2025A · The company itself

“LG&E has a portfolio of supply arrangements of varying terms that provide competitively priced natural gas designed to meet its firm sales obligations. These natural gas supply arrangements include pricing provisions that are market-responsive.”

Annual report 2025A · The company itself

“RIE's distribution base rates are calculated based on a return on rate base (net utility plant plus a cash working capital allowance less plant-related deferred taxes and other miscellaneous additions and deductions).”

Annual report 2025A · The company itself

“To manage the winter peak requirements for RIE customers, RIE contracts for liquified natural gas (LNG) service and owns and operates certain LNG storage facilities.”

Annual report 2025A · The company itself

“LG&E, headquartered in Louisville, Kentucky, is a wholly-owned subsidiary of LKE and a regulated utility engaged in the generation, transmission, distribution and sale of electricity and distribution and sale of natural gas in Kentucky. LG&E is subject to regulation as a public utility by the KPSC, and certain of its transmission activities are subject to the jurisdiction of the FERC under the Federal Power Act.”

Annual report 2025A · The company itself

“Rhode Island Regulated Segment (PPL) The Rhode Island Regulated segment consists primarily of the regulated electricity transmission and distribution operations and regulated distribution and sale of natural gas conducted by RIE. Table of Contents RIE is engaged in the regulated transmission, distribution and sale of electricity and regulated distribution and sale of natural gas in Rhode Island. RIE provides electric service to approximately 515,000 customers and natural gas service to approximately 280,000 customers.”

Annual report 2025A · The company itself

“Brown - Unit 3 412 100.00 412 Trimble County - Unit 1 (a) 493 75.00 370 Trimble County - Unit 2 (a) 732 14.25 104 60.75 445 4,721 1,639 2,776 Natural Gas/Oil E.W. Brown Unit 5 (b) E.W.”

Annual report 2025A · The company itself

“Kentucky Pennsylvania Rhode Island Regulated Regulated Regulated For the year ended December 31, 2025: Operating Revenues (in billions) $ 3.8 $ 3.1 $ 2.2 Net Income (in millions) $ 674 $ 639 $ 85 Electricity delivered (GWh) 31,368 37,186 7,165 Natural gas delivered (Bcf) 47 — 40 At December 31, 2025: Regulatory Asset Base (in billions) (a) $ 13.6 $ 11.1 $ 4.3 Service area (in square miles) 8,000 10,000 1,200 Customers (in millions) 1.4 1.5 0.8 (a)Represents capitalization for Kentucky Regulated and rate base for Pennsylvania Regulated and Rhode Island Regulated.”

Annual report 2025A · The company itself

“LG&E provides electric service to approximately 443,000 customers and provides natural gas service to approximately 336,000 customers in Louisville and 16 surrounding counties, covering approximately 700 square miles.”

Annual report 2025A · The company itself

“The PPL Electric transmission business, operating under a FERC-approved PJM Open Access Transmission Tariff, is subject to competition pursuant to FERC Order 1000 from entities that are not incumbent PJM transmission owners with respect to the construction and ownership of transmission facilities within PJM.”

Annual report 2025A · The company itself

“Competition Pursuant to authorizations from the Commonwealth of Pennsylvania and the PAPUC, PPL Electric operates a regulated distribution monopoly in its service area. Accordingly, PPL Electric does not face competition in its electricity distribution business.”

Annual report 2025A · The company itself

“Rates and Regulation Transmission PPL Electric's transmission facilities are within PJM, which operates the electricity transmission network and electric energy market in the Mid-Atlantic and Midwest regions of the U.S. PJM serves as a FERC-approved Regional Transmission Operator (RTO) to promote greater participation and competition in the region it serves.”

Annual report 2025A · The company itself

“Table of Contents Distribution PPL Electric's distribution base rates are calculated based on a return on rate base (net utility plant plus a cash working capital allowance less plant-related deferred taxes and other miscellaneous additions and deductions).”

Annual report 2025A · The company itself

“PPL Electric's electricity generation costs are established based upon the results of a competitive solicitation process. In November 2024, the PAPUC approved PPL Electric's default service plan for the period of June 1, 2025 through May 31, 2029, which included a total of eight solicitations for electricity supply held semiannually in February and July. Through December 31, 2025, two auctions of the plan were completed.”

Annual report 2025A · The company itself

“RIE's distribution base rates are calculated based on a return on rate base (net utility plant plus a cash working capital allowance less plant-related deferred taxes and other miscellaneous additions and deductions).”

Annual report 2025A · The company itself

“Table of Contents LRS RIE is required by the RIPUC and by statute to provide LRS to all customers who have not elected to receive their electric supply from a non-regulated power producer or any customer who, for any reason, has stopped receiving generation service from a non-regulated power producer. The charge for LRS is the sum of the applicable LRS charges in addition to all appropriate Retail Delivery charges as stated in the applicable tariff.”

Annual report 2025A · The company itself

“LG&E, headquartered in Louisville, Kentucky, is a wholly-owned subsidiary of LKE and a regulated utility engaged in the generation, transmission, distribution and sale of electricity and distribution and sale of natural gas in Kentucky. LG&E is subject to regulation as a public utility by the KPSC, and certain of its transmission activities are subject to the jurisdiction of the FERC under the Federal Power Act.”

Annual report 2025A · The company itself

“Table of Contents KU, headquartered in Lexington, Kentucky, is a wholly-owned subsidiary of LKE and a regulated utility engaged in the generation, transmission, distribution and sale of electricity in Kentucky and Virginia.”

Annual report 2025A · The company itself

“Table of Contents Pennsylvania Regulated Segment (PPL) The Pennsylvania Regulated segment consists of PPL Electric, a regulated public utility engaged in the distribution and transmission of electricity. (PPL and PPL Electric) PPL Electric delivers electricity to approximately 1.5 million customers in a 10,000-square mile territory in 29 counties within eastern and central Pennsylvania.”

Annual report 2025A · The company itself

“PPL Electric also provides electricity to retail customers in this territory as a PLR under the Customer Choice Act.”

Annual report 2025A · The company itself

“Rhode Island Regulated Segment (PPL) The Rhode Island Regulated segment consists primarily of the regulated electricity transmission and distribution operations and regulated distribution and sale of natural gas conducted by RIE. Table of Contents RIE is engaged in the regulated transmission, distribution and sale of electricity and regulated distribution and sale of natural gas in Rhode Island. RIE provides electric service to approximately 515,000 customers and natural gas service to approximately 280,000 customers.”

Annual report 2025A · The company itself

“Kentucky Pennsylvania Rhode Island Regulated Regulated Regulated For the year ended December 31, 2025: Operating Revenues (in billions) $ 3.8 $ 3.1 $ 2.2 Net Income (in millions) $ 674 $ 639 $ 85 Electricity delivered (GWh) 31,368 37,186 7,165 Natural gas delivered (Bcf) 47 — 40 At December 31, 2025: Regulatory Asset Base (in billions) (a) $ 13.6 $ 11.1 $ 4.3 Service area (in square miles) 8,000 10,000 1,200 Customers (in millions) 1.4 1.5 0.8 (a)Represents capitalization for Kentucky Regulated and rate base for Pennsylvania Regulated and Rhode Island Regulated.”

Annual report 2025A · The company itself

“LG&E provides electric service to approximately 443,000 customers and provides natural gas service to approximately 336,000 customers in Louisville and 16 surrounding counties, covering approximately 700 square miles.”

Annual report 2025A · The company itself

“KU provides electric service to approximately 553,000 customers in 77 counties in central, southeastern and western Kentucky and approximately 28,000 customers in five counties in southwestern Virginia, covering approximately 4,800 non-contiguous square miles.”

Annual report 2025A · The company itself

“PLR The Customer Choice Act requires electric distribution companies, including PPL Electric, or an alternative supplier approved by the PAPUC, to act as a PLR of electricity supply for customers who do not choose to shop for supply with a competitive supplier and provides that electricity supply costs will be recovered by the PLR pursuant to PAPUC regulations. In 2025, the following average percentages of PPL Electric's customer load were provided by competitive suppliers: 40% of residential, 81% of small commercial and industrial and 98% of large commercial and industrial customers.”

Annual report 2025A · The company itself

“(PPL and LG&E) LG&E's current collective bargaining agreement with IBEW Local 2100, which covers approximately 600 employees, is scheduled to expire October 1, 2026.”

Annual report 2025A · The company itself

“At December 31, 2025, the Registrants had the following full-time employees and employees represented by labor unions: Total Full-Time Employees Number of Union Employees Percentage of Total Workforce PPL 6,546 2,368 36 % PPL Electric 1,378 902 65 % LG&E 908 578 64 % KU 720 107 15 % (PPL) In May 2025, PPL and the Rhode Island United Steelworkers (USW) Local 12431 reached a five-year tentative agreement that was ratified and effective from June 2, 2025, through June 2, 2030.”

Annual report 2025A · The company itself

“The completion of these projects without delays or cost overruns is subject to risks in many areas, including: •approval, licensing and permitting; •land acquisition and the availability of suitable land; •skilled labor or equipment shortages; •construction problems or delays, including disputes with third-party intervenors; •increases in commodity prices or labor rates; •potential supply chain disruptions or delays; and 19 Table of Contents •contractor performance.”

Annual report 2025A · The company itself

“Increased costs of materials and labor may result from general inflation, increased regulatory requirements (especially in respect of environmental regulations), the need for higher-cost expertise in the workforce or other factors.”

Annual report 2025A · The company itself

“•Professional development - Invest in the current and future workforce through training and development, succession planning and creation of a pipeline for internal advancement. Senior management reviews succession planning with the People and Compensation Committee of the Board on an annual basis.”

Annual report 2025A · The company itself

“Table of Contents •Comprehensive benefits - In addition to challenging careers and competitive salaries, PPL offers competitive benefits programs to attract and retain talent and support employees' well-being. PPL offers competitive vacation time, expanded leave for new parents, retirement programs, and internal and external development opportunities, including tuition reimbursement offerings for undergraduate and certain graduate degrees.”

Annual report 2025A · The company itself

“Act 129 created an energy efficiency and conservation program, a demand side management program, smart metering technology requirements, new PLR generation supply procurement rules, remedies for market misconduct and changes to the existing AEPS. Act 11 authorizes the PAPUC to approve two specific ratemaking mechanisms: the use of a fully projected future test year in base rate proceedings and, subject to certain conditions, the use of a DSIC. Such alternative ratemaking procedures and mechanisms provide opportunity for accelerated cost-recovery and, therefore, are important to PPL Electric as it is in a period of significant capital investment to maintain and enhance the reliability of its delivery system, including the replacement of aging assets.”

Annual report 2025A · The company itself

“PPL Electric is subject to Act 129, which contains requirements for energy efficiency and conservation programs and for the use of smart metering technology, imposes PLR electricity supply procurement rules, provides remedies for market misconduct, and made changes to the existing Alternative Energy Portfolio Standard. The law also requires electric utilities to meet specified goals for reduction in customer electricity usage and peak demand.”

Annual report 2025A · The company itself

“Deferral Mechanisms RIE records revenues in accordance with accounting principles for rate-regulated operations for arrangements between RIE and the applicable regulator. These include various deferral mechanisms such as capital trackers, energy efficiency programs, and other programs that qualify as Alternative Revenue Programs (ARPs). ARPs enable RIE to adjust rates in the future, in response to past activities or completed events.”

Annual report 2025A · The company itself

“Risks Specific to Pennsylvania Regulated Segment (PPL and PPL Electric) We face competition for transmission projects, which could adversely affect our rate base growth.”

Annual report 2025A · The company itself

“(PPL and PPL Electric) PPL Electric delivers electricity to approximately 1.5 million customers in a 10,000-square mile territory in 29 counties within eastern and central Pennsylvania.”

Annual report 2025A · The company itself

“Table of Contents On November 6, 2023, the KPSC issued an order approving LG&E's and KU's December 15, 2022 CPCN requests (i) to construct a 645 MW net summer rating NGCC combustion turbine at LG&E's Mill Creek Generating Station in Jefferson County, Kentucky, (ii) to construct a 120 MWac solar photovoltaic electric generating facility in Mercer County, Kentucky, (iii) to acquire a 120 MWac solar facility to be built by a third-party solar developer in Marion County, Kentucky and (iv) to construct a 125 MW, 4-hour battery energy storage system facility at KU's E.W. Brown Generating Station.”

Annual report 2025A · The company itself

“Brown Units 8 - 11 (b) 100.00 Haefling - Units 1 - 2 2,745 760 1,985 Hydro Ohio Falls - Units 1-8 64 100.00 64 Dix Dam - Units 1-3 32 100.00 32 96 64 32 Solar E.W. Brown Solar (c) 8 39.00 3 61.00 5 Total 7,570 2,466 4,798 (a)Trimble County Unit 1 and Trimble County Unit 2 are jointly owned with Illinois Municipal Electric Agency and Indiana Municipal Power Agency.”

Annual report 2025A · The company itself

“Table of Contents On November 6, 2023, the KPSC issued an order approving LG&E's and KU's December 15, 2022 CPCN requests (i) to construct a 645 MW net summer rating NGCC combustion turbine at LG&E's Mill Creek Generating Station in Jefferson County, Kentucky, (ii) to construct a 120 MWac solar photovoltaic electric generating facility in Mercer County, Kentucky, (iii) to acquire a 120 MWac solar facility to be built by a third-party solar developer in Marion County, Kentucky and (iv) to construct a 125 MW, 4-hour battery energy storage system facility at KU's E.W. Brown Generating Station.”

Annual report 2025A · The company itself

“BUSINESS General (All Registrants) PPL, headquartered in Allentown, Pennsylvania, is a utility holding company, incorporated in 1994. PPL, through its regulated utility subsidiaries, delivers electricity to customers in Pennsylvania, Kentucky, Virginia, and Rhode Island; delivers natural gas to customers in Kentucky and Rhode Island; and generates electricity from power plants in Kentucky.”

Annual report 2025A · The company itself

“PPL is aware of the various risks associated with climate change, including increased frequency and severity of severe weather. To address these risks, PPL continues to work to advance grid modernization and improve the company's equipment to help mitigate the impacts of extreme weather events and improve reliability.”

Annual report 2025A · The company itself

“Table of Contents Natural disasters or operational accidents (such as wildfires, earthquakes, hurricanes or natural gas transmission pipeline explosions) could have direct or indirect impacts on the Registrants or key contractors or suppliers.”

Annual report 2025A · The company itself

“Climate change may produce changes in weather or other environmental conditions, including temperature or precipitation levels, and thus may impact consumer demand for electricity. In addition, the potential physical effects of climate change, such as increased frequency and severity of storms, floods, and other climatic events, could disrupt our operations and cause us to incur significant costs to prepare for or respond to these effects.”

Annual report 2025A · The company itself

“Although rate regulation is generally premised on the recovery of prudently incurred costs and a reasonable rate of return on invested capital, there can be no assurance that regulatory authorities will consider all of our costs to have been prudently incurred or that the regulatory process by which rates are determined will always result in rates that achieve full or timely recovery of our costs or an adequate return on our capital investments. Federal or state agencies, intervenors and other permitted parties may challenge our current or future rate requests, structures or mechanisms, and ultimately reduce, alter or limit the rates we receive.”

Annual report 2025A · The company itself

“Our regulated utility businesses are subject to substantial capital expenditure requirements over the next several years, which may require rate increase requests to the regulators in the future. If our costs are not adequately recovered through rates, it could have an adverse effect on our business, results of operations, cash flows and financial condition.”

Annual report 2025A · The company itself

“Our utility businesses are subject to significant and complex governmental regulation. In addition to regulating the rates we charge, various federal and state regulatory authorities regulate many aspects of our utility operations, including: •the terms and conditions of our service and operations; •financial and capital structure matters, and issuance of securities; •siting, construction and operation of facilities; •mandatory reliability and safety standards under the Energy Policy Act of 2005 and other standards of conduct; •accounting, depreciation and cost allocation methodologies; •tax matters; •affiliate transactions; •acquisition, retirement and disposal of utility assets; and •various other matters, including energy efficiency.”

Annual report 2025A · The company itself

“Numerous functions affecting the efficient operation of our businesses are dependent on the secure and reliable storage, processing and communication of electronic data and the use of sophisticated computer hardware and software systems and network infrastructure. The operation of our transmission and distribution systems, including gas distribution systems, as well as our generation plants, are all reliant on cyber-based, complex and integrated technologies.”

Annual report 2025A · The company itself

“In addition, these complex systems are subject to the risk that they could be the target of disruptive actions by terrorists, nation state actors or criminals or otherwise be compromised. Attacks may come through ransomware, software updates or patches, use of opensource software, firmware that hackers can manipulate to include malicious codes for exploitation at a later date, or the compromising of hardware by bad actors, creating serious risks to our security, the security of our customers' information, and potentially to our ability to provide power.”

Annual report 2025A · The company itself

“The completion of these projects without delays or cost overruns is subject to risks in many areas, including: •approval, licensing and permitting; •land acquisition and the availability of suitable land; •skilled labor or equipment shortages; •construction problems or delays, including disputes with third-party intervenors; •increases in commodity prices or labor rates; •potential supply chain disruptions or delays; and 19 Table of Contents •contractor performance.”

Annual report 2025A · The company itself

“Due to general inflation with respect to such costs, the aging demographics of our workforce and other factors, we have experienced significant health care cost inflation in recent years, and we expect our health care costs, including prescription drug coverage, to continue to increase despite measures that we have taken and expect to take to require employees and retirees to bear a higher portion of the costs of their health care benefits.”

Annual report 2025A · The company itself

“Our profitability is highly dependent on our ability to recover the costs of providing energy and utility services to our customers and earn an adequate return on our capital investments. Regulators may not approve the rates we request and existing rates may be challenged.”

Annual report 2025A · The company itself

“Our businesses are capital-intensive and, in the ordinary course of business, we are reliant upon adequate long-term and short-term financing to fund our significant capital expenditures, debt service and operating needs. As a result, we are sensitive to developments in interest rates, credit rating considerations, insurance, security or collateral requirements, market liquidity and credit availability and refinancing opportunities necessary or advisable to respond to credit market changes.”

Annual report 2025A · The company itself

“Table of Contents Water/Waste (PPL, LG&E and KU) Clean Water Act Regulations under the federal Clean Water Act dictate permitting and mitigation requirements for facilities and construction projects that impact "Waters of the United States". Many other requirements relate to power plant operations, including the treatment of pollutants in effluents prior to discharge, the temperature of effluent discharges and the location, design and construction of cooling water intake structures at generating facilities, and standards intended to protect aquatic organisms that become trapped at or pulled through cooling water intake structures at generating facilities. These requirements could impose significant costs for LG&E and KU, which are expected to be subject to rate recovery.”

Annual report 2025A · The company itself

“Clean Water Act Jurisdiction Environmental groups and others have claimed that discharges to groundwater from leaking CCR impoundments at power plants are subject to Clean Water Act permitting. On April 12, 2019, the EPA released regulatory clarification finding that Clean Water Act jurisdiction does not cover such discharges to groundwater.”

Annual report 2025A · The company itself

“(PPL, LG&E and KU) EPA Deregulatory Initiative On March 12, 2025, the EPA announced a plan to reconsider 31 environmental rules including the Section 111 performance standards and emissions limits for greenhouse gases, the endangerment finding for greenhouse gases, the Good Neighbor Plan, the Mercury and Air Toxics Standards, revisions to the fine particulate matter standard, the ELGs, and the CCRs Rule. Supplementing previous Executive Orders directing various regulatory changes, on April 9, 2025, President Trump issued an Executive Order and Presidential Memorandum directing review of existing rules, repeal of unlawful rules, and initiation of a zero-based budgeting process by which certain rules would automatically expire unless extended.”

Annual report 2025A · The company itself

“Achievement of our emissions goal may be affected by factors that are outside of our control including potential load growth, especially from large load customers, energy policy and regulations at the state and federal level, technological developments, and the cost of new generation technology.”

Annual report 2025A · The company itself

“Energy consumption is significantly impacted by overall levels of economic activity and costs of energy supplies. Economic downturns or periods of high energy supply costs can lead to changes in or the development of legislative and regulatory policy designed to promote reductions in energy consumption and increased energy efficiency, alternative and renewable energy sources, and distributed or self-generation by customers.”

Annual report 2025A · The company itself

“Rapid advances in AI capabilities, as well as the emerging regulatory landscape in the United States and internationally, may also require modifications to our systems, adoption of enhanced governance processes or implementation of new safeguards. Future laws, regulations, Executive Orders, or industry standards relating to AI (which may be conflicting), including those addressing transparency, data usage, cybersecurity, accountability, or risk management, could materially affect how we design, procure, or use AI technologies and could increase compliance costs.”

Annual report 2025A · The company itself

“Our regulated businesses undertake significant capital projects and these activities are subject to unforeseen costs, delays or failures, as well as risk of inadequate recovery of resulting costs. The regulated utility businesses are capital intensive and require significant investments in energy generation (in the case of LG&E and KU) and transmission, distribution and other infrastructure projects, including providing service to new data centers and large load customers, constructing projects for environmental compliance and maintaining system reliability.”

Annual report 2025A · The company itself

“War, terrorist attacks and unrest have caused and may continue to cause instability in the world's financial and commercial markets. In addition, unrest could lead to acts of terrorism in the United States or elsewhere, and acts of terrorism could be directed against companies such as ours.”

Annual report 2025A · The company itself

“As a result, we are subject to risks of disruptions, curtailments or increased costs in the operation of our businesses if such goods or services are unavailable or become subject to price spikes or if a counterparty fails to perform. Such disruptions could adversely affect our ability to operate our facilities or deliver services and collect revenues, which could result in lower sales and/or higher costs and thereby adversely affect our results of operations.”

Annual report 2025A · The company itself

“Pennsylvania's Alternative Energy Portfolio Standard (AEPS) requires electric distribution companies and electricity generation suppliers to obtain from alternative energy resources a portion of the electricity sold to retail customers in Pennsylvania. Under the default service procurement plans approved by the PAPUC, PPL Electric purchases all of the alternative energy generation supply it needs to comply with the AEPS.”

Annual report 2025A · The company itself

“Kentucky Pennsylvania Rhode Island Regulated Regulated Regulated For the year ended December 31, 2025: Operating Revenues (in billions) $ 3.8 $ 3.1 $ 2.2 Net Income (in millions) $ 674 $ 639 $ 85 Electricity delivered (GWh) 31,368 37,186 7,165 Natural gas delivered (Bcf) 47 — 40 At December 31, 2025: Regulatory Asset Base (in billions) (a) $ 13.6 $ 11.1 $ 4.3 Service area (in square miles) 8,000 10,000 1,200 Customers (in millions) 1.4 1.5 0.8 (a)Represents capitalization for Kentucky Regulated and rate base for Pennsylvania Regulated and Rhode Island Regulated.”

Annual report 2025A · The company itself

“RIE provides electric service to approximately 515,000 customers and natural gas service to approximately 280,000 customers.”

Annual report 2025A · The company itself

“PROPERTIES Kentucky Regulated Segment (PPL, LG&E and KU) LG&E's and KU's properties consist primarily of regulated generation facilities, electricity transmission and distribution assets and natural gas transmission and distribution assets in Kentucky.”

Annual report 2025A · The company itself

“Kentucky Pennsylvania Rhode Island Regulated Regulated Regulated For the year ended December 31, 2025: Operating Revenues (in billions) $ 3.8 $ 3.1 $ 2.2 Net Income (in millions) $ 674 $ 639 $ 85 Electricity delivered (GWh) 31,368 37,186 7,165 Natural gas delivered (Bcf) 47 — 40 At December 31, 2025: Regulatory Asset Base (in billions) (a) $ 13.6 $ 11.1 $ 4.3 Service area (in square miles) 8,000 10,000 1,200 Customers (in millions) 1.4 1.5 0.8 (a)Represents capitalization for Kentucky Regulated and rate base for Pennsylvania Regulated and Rhode Island Regulated.”

Annual report 2025A · The company itself

“(PPL and PPL Electric) PPL Electric delivers electricity to approximately 1.5 million customers in a 10,000-square mile territory in 29 counties within eastern and central Pennsylvania.”

Annual report 2025A · The company itself

“RIE provides electric service to approximately 515,000 customers and natural gas service to approximately 280,000 customers.”

Annual report 2025A · The company itself