PPL (PPL) risk factors, FY2025 10-K

Other

1. 01A. Risk Related to Registrant Holding Company
2. 02B. Risks Related to Regulated Utility Operations
3. 03The 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 territoriesNew
4. 04Our 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
5. 05Our utility businesses are subject to significant and complex governmental regulation
6. 06Our 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 costs71% rewritten
7. 07We are or may be subject to costs of remediation of environmental contamination at facilities that are currently owned by us or that are owned or operated by our former subsidiaries
8. 08We 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
9. 09We are subject to regulatory and other risks regarding natural gas supply infrastructure
10. 10We face competition for transmission projects, which could adversely affect our rate base growth
11. 11We could be subject to higher costs and/or penalties related to Pennsylvania Conservation and Energy Efficiency Programs
12. 12We are subject to regulatory and other risks regarding natural gas supply infrastructure in Rhode Island
13. 13Our business operations are continually subject to cyber-based security and data integrity risks from vulnerabilities related to our IT systems, operational technology infrastructure and supply chain relationships
14. 14Artificial 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 processesNew
15. 15Natural disasters or operational accidents may adversely affect the Registrants' operating results
16. 16We are subject to risks associated with federal and state tax laws and regulations
17. 17Increases in electricity prices and/or a weak economy can lead to changes in legislative and regulatory policy, including the promotion of energy efficiency, conservation and distributed generation or self-generation, which may adversely affect our business
18. 18We could be negatively affected by rising interest rates, downgrades to our credit ratings, adverse credit market conditions or other negative developments in our ability to access capital markets
19. 19A downgrade in our credit ratings could negatively affect our ability to access capital and increase the cost of maintaining our credit facilities and any new debt
20. 20Our operating revenues could fluctuate on a seasonal basis, especially as a result of extreme weather conditions, including storms, or from changes in average temperatures for extended periods, which may be caused or exacerbated by climate change
21. 21Our businesses are subject to physical, market and economic risks relating to potential effects of climate change
22. 22We cannot predict the outcome of legal proceedings or investigations related to our businesses in which we are periodically involved. An unfavorable outcome or determination in any of these matters could have a material adverse effect on our financial condition, results of operations or cash flows
23. 23Significant increases in our operation and maintenance expenses, including health care and pension costs, could adversely affect our future earnings and liquidity
24. 24We may incur liabilities in connection with divestitures
25. 25We are subject to liability risks relating to our generation, transmission and distribution operations
26. 26Our facilities may not operate as planned, which may increase our expenses and decrease our revenues and have an adverse effect on our financial performance
27. 27We are required to obtain, and to comply with, government permits and approvals
28. 28War, other armed conflicts or terrorist attacks could have a material adverse effect on our business
29. 29We are subject to counterparty performance, credit or other risk in the provision of goods or services to us, which could adversely affect our ability to operate our facilities or conduct business activities
30. 30We are subject to the risk that our workforce and its knowledge base may become depleted in coming years