Blog In our fourth blog, we review what simplifying the price control means, and the changes the industry faces.
Operator Instructions Please note, this event is being recorded. Ludwig, please go ahead. Thank you for joining the PPL conference call on the second quarter results as well as our general business outlook.
We're providing slides of this presentation on our website at pplweb. Any statements made in this presentation about future operating results or other future events are forward-looking statements under the Safe Harbor provisions of the Private Securities Litigation Reform Act of Actual results may differ materially from forward-looking statements.
A discussion of factors that could cause actual results to differ is contained in the appendix to the presentation and in the company's SEC filings.
We will refer to earnings from ongoing operations or ongoing earnings, a non-GAAP measure, on this call. For reconciliations to the Ofgem riio ed1 business plans measure, you should refer to in the press release, which has been posted on our website and furnished to the SEC.
We're pleased that you've joined us for our second quarter earnings call. Moving to Slide 3. Our agenda for this morning begins with highlights of our second quarter results, and a brief review of regulatory developments in the U. Vince will then review our second quarter segment earnings results.
As always, we'll leave ample time to answer your questions.
Story continues Turning to Slide 4. Adjusting for special items, primarily related to unrealized gains on our U. This increase was primarily driven by higher earnings in our U. In addition to delivering strong financial results, we also took the necessary steps to strengthen our balance sheet to mitigate the impacts of U.
This further supports our solid investment grade credit ratings, which Moody's reaffirmed with a stable outlook in June.
The business plans submitted by WPD subsidiaries, and key milestones in the RIIO-ED1 process, are posted on PPL's website. PPL Corporation, with revenues of $12 billion, is one of the largest. See documents below called RIIO-ED1 business plan expenditure assessment - methodology and results or Fast track comparisons. It provides a more detailed, and technical, explanation of our assessment of the expenditures proposed in the electricity distribution companies’ business plans for the next distribution price control (RIIO-ED1). Ofgem finance change ‘could cost DNOs £60m a year’ all but one of which were sent back to the drawing board with their RIIO-ED1 business plans on Friday, Ofgem made the surprise.
In addition to disciplined financial execution, I would also highlight that each of PPL's utilities remains strong, among the very best in the regions they serve. Power Awards for residential customer satisfaction in July.
Achieving the highest overall marks in their respective categories and regions based on customer surveys. I'm proud of our team's track record in achieving such great customer service excellence.
Our focus on meeting and exceeding customer expectations is one that is shared and emphasized every day across all of our operating companies. In fact, overall, PPL's domestic utilities have now won 47 J.
At the same time, in the U. Looking ahead, PPL remains well-positioned to deliver competitive earnings growth and a secure and growing dividend for our shareowners. Turning to Slide 5.
PPL's success and customer satisfaction begins by delivering power reliably for those who count on us each day. In that regard, our utilities continued to strengthen reliability for customers by investing in a smarter, more resilient grid.
Over the past 7 years, which marks the time period that we have owned and operated the current portfolio, our regulated utilities in Pennsylvania, Kentucky and the U. And WPD continues to perform well against its reliability benchmarks.
The substantial improvement in reliability is one of the driving factors leading to our continued improvement and success at achieving the customer service awards, we are [accustomed] to at PPL.
These achievements across our utilities reflect our ongoing commitment to operational excellence and our strategy for growth and success. Turning to Slide 6, for a U. Last week, Ofgem released its decision on the overall RIIO-2 framework, which has defined some of -- has defined some of the high-level aspects of the next price control, which will begin for us in May 03, · Ofgem's RIIO-ED1 'Slow Track' Final Determinations – FTI Consulting 5 Dec owns Scottish Power Distribution (SPD) and Scottish Power submitted business plans which Ofgem considered were sufficiently.
RIIO‐ED1 Business Plan Review • Well‐justified business plans – Requirement to submit a high‐quality, long‐term “Well‐Justified Business Plan” • In order to address the uncertainty in the 8‐year RIIO‐ED1 period, Ofgem has.
Simplifying price controls to encourage solid business plans In the next round of price review, RIIO-2, there is a commitment from Ofgem to simplify price controls. In their framework decision Ofgem quote “We want to clarify and simplify our approach to setting outputs and cost allowances.
Ofgem finance change ‘could cost DNOs £60m a year’ all but one of which were sent back to the drawing board with their RIIO-ED1 business plans on Friday, Ofgem made the surprise.
inform business development decisions. UKPN has a robust Stakeholder Engagement Strategy in place that is regularly reviewed and updated. This strategy ensures UKPN is aligned with the principles of AA International Standard and is in compliance with all elements of the RIIO-ED1 framework as stipulated by Ofgem.
Expected Ofgem RIIO Timelines. RIIO-ED1 Indicative Timetable. RIIO-ED2 Preparation and Implementation. Slow-track assessment Policy development Fast-track assessment.
Mid RIIO- ED2 Strategy Consultation Early RIIO-ED2 Strategy Decision July RIIO-ED2 Business Plan Submission Nov RIIO-ED2 Fast.