PPL Corporation

PPL has stopped growing by cutting costs and started growing by selling grid capacity to data centers: signed agreements have risen ten quarters in a row, and a Blackstone joint venture is now its biggest lever. Not one dollar of that venture is in the plan yet. How much of the 32 gigawatt pipeline is taking power today?

• Data center demand turned from a queue into signed contracts.

  Signed agreements with real money behind them have grown for ten straight quarters, to 32 gigawatts in Pennsylvania. The terms make it bankable: developers pay for 80% of the capacity they reserve and post collateral upfront.

• The Blackstone venture became the growth lever, and it earns nothing yet.

  Land for up to 14 gigawatts of new generation, turbines reserved, and PPL holding 51% of a business it kept out of its own forecast. First contracts are expected by year-end, so anything it earns is upside the plan does not need. What would the Blackstone venture earn on PPL's 51% share?

• The spending lands years before the customers who pay for it.

  Capital needs grew to $23 billion and free cash flow has stayed negative every quarter, so the build is partly paid for by selling new shares. Management cut its promised dividend growth, so today's owners fund the growth first. When does PPL expect free cash flow to turn positive again?