FERC Sets New England Transmission Owners' Base ROE at 9.57%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2026
0mins
Should l Buy PPL?
According to a regulatory filing, on March 19, 2026, the Federal Energy Regulatory Commission issued Opinion No. 594, addressing several longstanding complaints commencing with Coakley v. Bangor Hydro-Elec. Co., EL11-66-001, et al. regarding the return on equity for New England transmission owners under the ISO New England tariff. Pursuant to the Order, the FERC adopted a new methodology for determining ROE and set NETOs' base ROE at 9.57%, with a maximum including incentives not to exceed 12.09%, retroactive to October 16, 2014. The FERC also ordered refunds with interest for certain periods affected by the decision. The order affects Rhode Island Energy, a wholly-owned subsidiary of PPL Corporation. PPL and RIE are evaluating next steps, including coordinating with the other NETOs, which may include an appeal of the Order. PPL does not expect the Order's potentially relevant components to have a material impact on its operations or financial condition.
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Analyst Views on PPL
Wall Street analysts forecast PPL stock price to rise
12 Analyst Rating
9 Buy
3 Hold
0 Sell
Strong Buy
Current: 38.020
Low
36.00
Averages
40.58
High
45.00
Current: 38.020
Low
36.00
Averages
40.58
High
45.00
About PPL
PPL Corporation is an energy company. The Company is focused on providing electricity and natural gas in the United States. The Company operates through three segments: Kentucky Regulated, Pennsylvania Regulated, and Rhode Island Regulated. The Kentucky Regulated segment consists primarily of the regulated electricity generation, transmission and distribution operations conducted by Louisville Gas & Electric Company (LG&E) and Kentucky Utilities Company (KU), as well as LG&E's regulated distribution and sale of natural gas. LG&E and KU are engaged in the regulated generation, transmission, distribution and sale of electricity in Kentucky and, in KU's case, also Virginia. The Pennsylvania Regulated segment includes the regulated electricity transmission and distribution operations of PPL Electric. The Rhode Island Regulated segment includes the regulated electricity transmission and distribution operations and regulated distribution and sale of natural gas conducted by RIE.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Sector Investment Appeal: The utility sector's capital-intensive, domestically oriented, and highly regulated business model ensures strong revenue visibility and stable earnings, thereby supporting ongoing infrastructure expansion.
- Clean Energy Transition: As demand for reliable clean power grows, utility companies are retiring fossil fuel plants, expanding renewable energy usage, and adopting low-emission technologies to maintain grid reliability.
- Capital Investment Plans: PPL Corporation plans to invest nearly $23 billion from 2026 to 2029 to strengthen its infrastructure, while Ameren Corporation aims to invest $31.8 billion from 2026 to 2030 to enhance its electric transmission, distribution, and generation infrastructure.
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- Rate Adjustment Proposal: PPL Electric has submitted a petition to the Pennsylvania Public Utility Commission seeking approval for a $275 million increase in base distribution rates to support investments in a safe, reliable, and resilient electric system while maintaining affordability for customers.
- Customer Impact: If approved, the new base rates will take effect on July 1, 2026, impacting customer bills, although there will be no further increases for two years following the implementation of the new rates.
- Stakeholder Engagement: The settlement agreement has garnered support from a diverse group of stakeholders, including low-income, residential, and business consumer advocates, with only two parties raising limited objections, indicating a broad consensus.
- Quality of Service Improvement: The rate increase will be directed towards enhancing system reliability, improving customer service, and supporting vital investments for future growth, ensuring safe and dependable electric distribution service for the communities served by PPL Electric.
See More
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- Rate Adjustment Proposal: PPL Electric Utilities has submitted a petition to the Pennsylvania Public Utility Commission seeking a $275 million increase in base distribution rates, aimed at enhancing the safety and reliability of the electric system, marking the first rate hike since 2016.
- Customer Bill Impact: If approved, residential customers using 1,000 kilowatt-hours per month could see their bills rise by approximately $7.42, while commercial and industrial customers will also experience increases, indicating a broad impact across customer segments.
- Support for Vulnerable Customers: The new settlement includes provisions to enhance support for vulnerable customers by increasing hardship fund bill credits, improving access to assistance programs, and eliminating reconnection fees, thereby aiming to bolster customer affordability.
- Future Investment Commitment: The agreement will establish a new large load customer rate class, providing $11 million in support for the residential low-income program, while ensuring no increase in distribution base rates for two years, thereby promoting long-term economic competitiveness.
See More
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- Implementation Timeline: The proposed changes will be implemented if they receive the necessary approvals before the effective date.
See More
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See More
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