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 announced declines in both third-quarter and nine-month reported earnings for 2009, compared with the same periods of 2008. PPL’s earnings from ongoing operations, which exclude the effect of special items, rose in the third quarter but remained lower for the nine-month period, compared with a year ago.

• PPL’s reported earnings for the third quarter of 2009 were $0.05 per share, compared with $0.54 per share a year ago. For the first nine months of 2009, PPL’s reported earnings were $0.67 per share, compared with $1.73 per share a year ago.

• The primary drivers of the 2009 reported earnings declines versus 2008 were special item charges for certain economic hedge activity and the impact of two nonrecurring income tax matters in the current quarter, as well as an impairment for the pending sale of generation assets on Long Island, N.Y., announced last quarter. The special item charges for the third quarter of 2009 totaled $0.47 per share, compared with net special item credits of $0.09 per share a year ago. PPL’s reported earnings for the first nine months of 2009 included special item charges of $0.76 per share, compared with net special item credits of $0.17 per share for the same period of 2008.

• Earnings from ongoing operations were $0.52 per share in the third quarter of 2009, compared with $0.45 per share a year ago. For the first nine months of 2009, earnings from ongoing operations were $1.43 per share, compared with $1.56 per share a year ago.

• At this point in the year PPL is pleased with its financial performance despite ongoing pressure on wholesale energy prices and customer demand due to the continuing weak economy and mild weather. The relatively strong ongoing earnings results for the third quarter of 2009 reflect the continued benefits of cost-control actions taken early in the year.

“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 unrealized gains and losses from energy-related non-trading economic hedges, foreign currency-related economic hedges and impairments of securities in PPL’s nuclear decommissioning trust funds. The 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., fuel and power). Also included in this special item is the ineffective portion of qualifying cash flow hedges. The foreign currency-related economic hedges are used to hedge a portion of the net income of the international delivery business segment. This economic value in U.S. dollars is subject to changes in the British Pound Sterling to the U.S. dollar exchange rate. Management believes that the exclusion of such amounts provides a better matching of earnings from ongoing operations to the actual amounts settled for PPL’s underlying hedged assets. 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.