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During an earnings call PPL Corp. CEO Vincent Sorgi said that allowing Pennsylvania distribution utilities to invest in generation would be the most “impactful” and timely solution to address resource adequacy “gaps” facing the state and PJM.  

In discussing PJM’s recent delay of PJM’s 2026-27 base residual auction for capacity, Sorgi said, “I think that just reinforces the need for the state [Pennsylvania] to take control of this issue.”

“I truly hope that Pennsylvania continues to pursue state solutions and does not slow that down as a result of the delay in the auction.” 

“We continue our discussions with all of the important decision-makers, the Governor’s office, the state legislature, as well as the PUC. In fact, the PUC has scheduled a resource adequacy technical conference towards the end of this month; we’ll be participating in that.” 

“And then as we’ve talked in the past, just thinking about what this legislation could look like. Obviously, we don’t have anything out there right now to comment on. But as I think about the options, obviously, there’s the permitting of utilities to invest in generation, which we’ve been talking about, and they could support us in building that new generation in the state, putting it in rate base.” 

“[W]e continue to believe that allowing the utilities to directly invest in the generation would be the most impactful in getting generation built in the state — certainly in the time frame necessary to address the gaps that we’re seeing around resource adequacy.” 

“I think they [lawmakers, etc.] can also create some incentives for utilities and the IPPs to enter into long-term power purchase agreements, beyond what we are currently able to do under our default service plan. So, we have some ability to do that, but it’s not as extensive as I think potentially, they could incentivize us to do.”