British Regulators Fast-Track PPL Corporation's Rate Hikes

The company expects an extra $35 million, but keeps earnings estimates steady.

Feb 28, 2014 at 6:42PM

PPL Corporation (NYSE:PPL) celebrated a regulatory win today as the United Kingdom gave the approval for PPL to speed up its price hikes.

Compliments of the Brit's regulatory body, PPL Corporation's four U.K. utilities are now cleared to charge customers at a rate of 6.4% the real cost of equity starting April 1, 2015. For other utilities without the early go-ahead, they'll have to keep rates at 6%.

While PPL's future earnings estimates remain unchanged, the company expects extra revenue equivalent to 2.5% of total annual spending -- around $35 million.

"The well-justified business plans we submitted in July 2013 reflect the excellence in reliability, cost and customer satisfaction that our U.K. team has consistently delivered," said PPL Corporation Global President Rick Klingensmith in a statement today. "We appreciate Ofgem's [U.K. regulatory body] recognition of the high quality in our business plans, and our ability to deliver value to customers."

The four approved subsidiaries carry a collective customer base of 7.8 million, around 12% of the country's total population.

Justin Loiseau has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

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Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

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KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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