Chairman's Letter

Responsibility reporting is still a new concept for American businesses, but the idea of conducting business in a responsible and sustainable manner is nothing new for PPL Corporation.

PPL and its employees understand the important responsibilities we have to our shareowners, to the environment, to the communities where we do business and to the publics we serve. We demonstrate time and again that we take our duty to be a responsible corporate citizen very seriously.

PPL has a history of transparency and accountability. In addition to required annual and quarterly reports we issue on PPL’s financial condition, we have published environmental reports since 1993, Ceres reports since 1997, and community and environmental reports since 2002.

In 2006, we adopted the reporting guidelines of the Global Reporting Initiative in producing our first responsibility report, which combines elements of our financial reports, the community and environmental report and Ceres report. For 2007, we have updated the information from last year’s report.

This report brings together topics of interest to our shareowners, customers, employees and other stakeholders. It reveals areas of strength, and areas where we can — and will — improve.

For example, we continue to evaluate our position on climate change and other key issues facing the energy sector and society in general. PPL took the step in 2007 of supporting federal legislation in the United States to limit greenhouse gas emissions. We continue to remain active in the legislative process as proposals take shape.

PPL has developed biogas and solar energy projects, and will invest more than $100 million over the next five years in renewable energy projects. One of our renewable energy projects was selected as a “Project of the Year” by the Environmental Protection Agency.

PPL Electric Utilities is an industry leader in establishing programs to help customers with financial hardships. We have offered such programs for a quarter of a century, and we continue to increase financial support for them.

To promote energy conservation, PPL Electric Utilities has launched new Web-based tools that help customers analyze their home energy use and identify actions they can take to reduce it.

Our utility operations in the United States and United Kingdom continue to receive honors for exceptional service and customer satisfaction.

PPL maintains standards for integrity and ethical behavior, and an environmental policy. We expect every PPL employee to live up to the standards and policy in everything that we do. This is the framework of PPL’s commitment to sustainable business practices.

We invite you to read our 2007 report and learn more about PPL. PPL is proud of its past, is optimistic about the future, and will continue to set high standards and work with our stakeholders to address their expectations.

James H. Miller
Chairman, President and Chief Executive Officer
October 2007

 This page addresses the following GRI indicators: 1.1, 1.2, 2.1, 2.12 and 3.14