We'll also refer to non-GAAP measures, including earnings from ongoing operations or ongoing earnings on this call. Adjusting for special items, second quarter earnings from ongoing operations were $0.32 per share. We also continue to project $20 billion in infrastructure improvements from 2025 to 2028, resulting in average annual Rate Base Growth of 9.8%. This does not include any capital expenditures that may be required under the new Joint Venture agreement with Blackstone Infrastructure to build new generation in Pennsylvania to directly serve data centers.
Lastly, we're well positioned to achieve our projected 6% to 8% annual earnings per share and dividend growth through at least 2028, with EPS growth expected in the top half of that range. It has been nearly five years since we saw the base rate increase in Kentucky. During the period from 2021 through 2024, the cumulative amount of inflation was 19.7%, which is significantly higher than the overall percentage increase of 10.7% that the companies are seeking in these cases. Earlier this month, we agreed with the Advocacy Section of the Division of Public Utilities and Carriers to settle the Hold Harmless Commitment related to our acquisition of Rhode Island Energy.
In summary, the acquisition accounting resulted in the elimination of certain accumulated deferred income taxes, which resulted in an increase in Rate Base. This is a very constructive solution that significantly improves affordability for Rhode Island customers when bills are at their highest in the winter, while at the same time satisfying a significant acquisition commitment. Now let's turn to Slide Seven and the exciting economic growth in Pennsylvania that is currently being powered by data centers. Our Pennsylvania subsidiary, PPL Electric Utilities, is particularly well suited to meet this demand.
| Metric | Period | Current guidance |
|---|---|---|
| 2025 ongoing earnings per share | FY2025 | at least midpoint of $1.81 (reaffirmed at least midpoint) |
| Annual EPS and dividend growth | through at least 2028 | 6% to 8%, with EPS growth in top half of range (maintained) |
| ATM equity issuance | FY2025 | about $350 million issued in first half, approaching full-year need (on track) |
| Metric | YoY | Note |
|---|---|---|
| GAAP EPS | $0.25 vs $0.26 in Q2 2024 | Special items of $0.07 per share primarily from IT transformation costs and Rhode Island integration costs. |
| Ongoing EPS | $0.32 vs $0.38 in Q2 2024 (down $0.06) | Timing of operating costs and true-ups, favorable prior-year weather, and higher interest expense. |
| Kentucky segment | flat vs Q2 2024 | Lower sales volumes from favorable prior-year weather offset by several insignificant factors. |
| Pennsylvania regulated segment | down $0.02 per share | Higher operating costs and timing of a transmission revenue true-up, partially offset by returns from capital investments. |
| Rhode Island segment | down $0.03 per share | Higher distribution revenues offset by timing of certain operating costs and other items. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Data center load pipeline (PA) | 11 GW in advanced stages (prior call) | about 14.5 GW in advanced stages, nearly 5 GW publicly announced | Growing |
| Blackstone JV for new generation | not previously in plan | newly announced 50/50 JV to build regulated-like contracted generation in PA | New initiative |
| Regulatory cadence | long stay-outs across jurisdictions | filing rate cases in Kentucky, Pennsylvania (first in a decade), and settling in Rhode Island | Returning to normal cadence |
| Transmission capital for data centers (PA) | $400 million in current $20 billion plan | projected need of $750 million to $1.25 billion | Increasing |