2009

2008

FINANCIAL ^(a)

Operating revenues (millions) ^(b)

$7,556

$8,007

Net income attributable to PPL (millions)

$407

$930

Earnings from ongoing operations (millions) ^(a)

$738

$761

Total assets (millions) ^(c)

$22,165

$21,405

Earnings per share - Basic

$1.08

$2.48

Earnings per share - Diluted

$1.08

$2.47

Earnings from ongoing operations per share - Basic^(e)

$1.95

$2.03

Earnings from ongoing operations per share - Diluted^(e)

$1.95

$2.02

Dividends declared per share

$1.38

$1.34

Book value per share ^(c)

$14.57

$13.55

Market price per share ^(c)

$32.31

$30.69

Dividend yield ^(c)

4.3%

4.4%

Dividend payout ratio ^(d)

128%

54%

Dividend payout ratio - Earnings from ongoing operations ^(d,e)

71%

66%

Market price/Book value ratio ^(c)

222%

226%

Price/earnings ratio ^(c,d)

29.9

12.4

Price/earnings ratio - Earnings from ongoing operations ^(c,d,e)

16.6

15.2

Return on average common equity

7.48%

16.88%

Return on average common equity - Earnings from ongoing operations ^(e)

13.61%

14.46%

OPERATING - DOMESTIC ENERGY

Total retail electricity delivered (millions of kwh)

36,717

38,058

Total retail electricity supplied (millions of kwh)

38,912

40,374

Total wholesale electricity supplied (millions of kwh)

38,988

42,712

OPERATING - INTERNATIONAL DELIVERED

United Kingdom (millions of kwh)

26,358

27,724

(a)

Earnings and certain financial ratios were affected by several special items. “Earnings from ongoing operations” is adjusted for the impact of these special items. Click on the link at the top of this schedule to reference a reconciliation of earnings from ongoing operations to reported earnings, or net income attributable to PPL. “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 financial measure, is also useful and meaningful to investors because it provides them with management’s view of PPL’s fundamental 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.

Special items include:
•  The impact of energy-related economic activity (see footnote (b) for additional information).
•  Foreign currency-related economic hedges.
•  The impact of sales of assets not in the ordinary course of business.
•  Impairment charges (including impairments of securities in the company’s nuclear decommissioning trust).
•  Workforce reduction and other restructuring impacts.
• Other charges or credits that are, in management’s view, not reflective of the company’s ongoing operations.

(b)

PPL enters into certain non-trading energy or energy-related contracts to hedge future cash flows that are not eligible for hedge accounting, or where hedge accounting is not elected. These transactions are considered economic activity, and include the changes in fair value of positions used to hedge a portion of the economic value of PPL’s generation assets, 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 are the ineffective portion of qualifying cash flow hedges and the premium amortization associated with options classified as economic activity. Consistent with the treatment of the hedged item, unrealized and realized gains and losses on these transactions are reflected in wholesale energy marketing and unregulated retail electric and gas, components of “Operating revenues.” These similar impacts also affect fuel and energy purchases, components of operating expenses.

(c)

End of period.

(d)

Calculated using diluted shares.

(e)

Calculated using earnings from ongoing operations.