PPL Reports Lower Supply Earnings on Reduced Margins

Ongoing earnings at PPL's Supply segment were lower at $205 million, versus $244 million a year ago, on lower energy margins as higher priced hedges continue to roll off.

PPL EnergyPlus retail electric sales, including POLR volumes to PPL, were 1,945 GWh in the quarter, versus 2,466 GWh a year ago.

During an earnings call, PPL Corp. CEO James Miller said that PPL's expectation for this month's Reliability Pricing Model auction is a clearing price in MAAC of around $150 to $200 per megawatt-day, which assumes certain transmission-related adjustments to the model as well as about up to 6,000 megawatts of retirements. Miller is "pretty certain" that 2,000 megawatts of retirements is "a given," and said that PPL's internal modeling shows another 4,000 megawatts in retirements may be expected.

Capacity prices for the rest of the pool are expected somewhere in the $30 to $50 per megawatt-day range, Miller said.

PPL has not yet filed a 10-Q.