Here are some reasons to learn more about PPL:

Commitment:

PPL Corporation strives to balance our commitment to our customers, our communities and our environment. But we also understand that each business decision must ultimately build a foundation for shareowner value.

Yes, the marketplace has changed dramatically. The 1990s saw an end to the traditional electric utility. In this exciting new era of competition, PPL has positioned itself to take advantage of new opportunities in both the regulated and deregulated industry. Our corporate strategies emphasize growth in shareowner value through expansion into new markets and the offering of new energy-related products and service.

Performance:

• PPL’s reported a slight decline in first-quarter earnings for 2009, compared with the same quarter of 2008.

• PPL’s reported earnings in the most recent quarter were $0.64 per share, compared with $0.69 per share a year ago. Excluding special items, PPL’s earnings from ongoing operations for the quarter were $0.60 per share, compared with $0.61 per share a year ago.

• The primary drivers of PPL’s earnings from ongoing operations in the most recent quarter were less favorable U.K. currency exchange rates and lower wholesale energy margins in the U.S., offset by financing activity benefits and lower operating expenses both in the U.S. and the U.K.

• Reported earnings in the first quarter of 2009 included a net special item credit of $0.04 per share, including a $0.13 per share credit related to the mark-to-market impacts of energy-related, non-trading economic hedges.

• Special item charges in the first quarter of 2009, totaling $0.09 per share, were: $0.04 per share related to the impairment of emission allowances; $0.03 per share related to the recent workforce reduction; $0.01 per share related to impairments of securities in PPL’s nuclear decommissioning trust funds; and $0.01 per share related to other smaller asset impairments. For the first-quarter of 2008, PPL recorded a net special item credit of $0.08 per share.

Reported earnings are calculated in accordance with generally accepted accounting principles (GAAP). Earnings from ongoing operations is a non-GAAP financial measure that excludes special items. Special items include charges or credits that are unusual or nonrecurring. Special items also include the mark-to-market impact of energy-related, non-trading economic hedges and impairments of securities in PPL’s nuclear decommissioning trust funds. 

“Earnings from ongoing operations” excludes the impact of special items. Special items include charges or credits that are unusual or nonrecurring. Special items also include the mark-to-market impact of energy-related, non-trading economic hedges and impairments of securities in PPL’s nuclear decommissioning trust funds. These energy-related, non-trading economic hedges are used to hedge a portion of the economic value of PPL’s generation assets and PPL’s load-following and retail activities. This economic value is subject to changes in fair value due to market price volatility of the input and output commodities (e.g., coal and power).  The mark-to-market impact of these hedges is economically neutral to the company because the mark-to-market gains or losses on the energy hedges will reverse as the hedging contracts settle in the future. Earnings from ongoing operations should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAAP). PPL believes that earnings from ongoing operations, although a non-GAAP measure, is also useful and meaningful to investors because it provides them with PPL’s underlying earnings performance as another criterion in making their investment decisions. PPL’s management also uses earnings from ongoing operations in measuring certain corporate performance goals. Other companies may use different measures to present financial performance. 

For more information, contact PPL Investor Services at 1-800-345-3085.