Based on these results and our outlook for the remainder of the year, we are reaffirming our 2026 ongoing earnings guidance of $1.90-$1.98 per share, with a midpoint of $1.94 per share. Longer term, we continue to project approximately $23 billion of capital investment through 2029, resulting in average annual rate base growth of 10.3%. This capital projection excludes any investments that may stem from our joint venture with Blackstone, which I'll provide an update on shortly. We're also reaffirming our long-term financial targets, including 6%-8% annual EPS growth through at least 2029, with compound annual growth expected near the top end of that range.
We also continue to target annual dividend growth of 4%-6%, along with strong credit metrics throughout our plan period, which support a very compelling risk-adjusted total return for our share owners. The settlement achieves a balance between our strong commitment to affordability and maintaining safe and reliable service for our customers while supporting the significant demand growth in our service territory with large load customers. The settlement also enhances support for vulnerable customers by increasing hardship fund bill credits, improving access to assistance programs, eliminating reconnection fees, streamlining return of security deposits, and boosting the annual low-income weatherization budget. The reconsideration focuses on a limited number of substantive issues, including such modifications the KPSC made to the settlement and certain cost recovery and return determinations.
Parties have until May 26 to request a hearing or to ask for a decision based on the record in the case. In Kentucky, we're excited to announce a couple of new partnerships to explore innovative generation technologies in support of the increasing electricity demand in our service territory. This project is not in our current capital plan or earnings projections. Any decision to move forward would be gated by economics, regulatory certainty, and our long-standing commitment to capital discipline.
| Metric | Period | Current guidance |
|---|---|---|
| 2026 ongoing earnings per share | FY2026 | $1.90-$1.98, midpoint $1.94 (reaffirmed) |
| 2026 planned investments | FY2026 | approximately $5.1 billion (on track) |
| Capital investment plan | through 2029 | approximately $23 billion (excludes Blackstone JV) (reaffirmed) |
| Rate base growth | through 2029 | 10.3% average annual (reaffirmed) |
| Annual EPS growth target | through at least 2029 | 6%-8%, CAGR near top end (reaffirmed) |
| Annual dividend growth target | plan period | 4%-6% (reaffirmed) |
| Metric | YoY | Note |
|---|---|---|
| GAAP EPS | $0.60 vs $0.56 in Q1 2025 | Special items of $0.03 per share from ISO New England transmission ROE reduction and system integration impacts, partially offset by regulatory asset treatment of Kentucky IT transformation costs. |
| Ongoing EPS | $0.63 vs $0.60 in Q1 2025 (up $0.03) | Higher base rate recovery in Kentucky and higher transmission revenues from capital investments, partially offset by higher depreciation and higher financing costs. |
| Kentucky segment | up $0.03 per share | Higher base rate recovery from new retail rates effective January 1, partially offset by lower sales volumes from less favorable weather, higher operating costs, depreciation, and interest expense. |
| Pennsylvania regulated segment | flat | Higher transmission revenue from capital investments offset by higher operating costs, depreciation, and interest expense. |
| Rhode Island segment | flat | Higher rider revenue returns including ISR mechanism and FERC formula rates offset by higher depreciation expense. |
| Topic | Previous mention | Current period | Trend |
|---|---|---|---|
| Data center pipeline / transmission CapEx (PA) | $1.3 billion incremental transmission CapEx in plan | 28 GW pipeline; at least another half billion of upside beyond plan | Growing |
| Kentucky generation needs | 1.8 GW supported in CPCN; 3.5 GW probability-weighted demand | increasingly likely to file another CPCN later this year | Intensifying |
| Blackstone JV | advancing, no contracts signed | positive momentum; likely to announce something meaningful this year | Advancing |
| New generation technologies (KY) | primarily gas CCGTs | adding pumped storage hydro (Rye) and small modular nuclear (X-energy) collaborations | Diversifying |
| Equity funding | two-thirds de-risked path | $1.15 billion equity units offering executed; about two-thirds of total equity de-risked | De-risked |