PP&L Resources, Inc. (NYSE: PPL) is well positioned to succeed in the rapidly changing energy marketplace, the company's top executive told about 800 shareowners Wednesday (4/23).

"We will be successful in this new market because we understand the importance of promises made — and promises kept," William F. Hecht, PP&L Resources' chairman, president and chief executive officer, said during the company's annual meeting of shareowners. "In a dramatically changing electricity business, only companies that understand — and meet — the needs of customers and shareowners will thrive. PP&L Resources is one of those companies."

Hecht said PP&L Resources, through its subsidiaries, will continue to expand its scope as new state and federal laws and regulations change the structure of the electric utility industry.

PP&L Resources' subsidiaries are: Pennsylvania Power & Light Co., which generates and delivers electricity to 1.2 million customers in eastern and central Pennsylvania; Power Markets Development Co., an international independent power company; and Spectrum Energy Services Corp., which markets energy-related services and products.

Hecht told the shareowners that PP&L Resources will build on its legacy of customer-focus and financial stability by:

• Providing high-quality, competitively priced electricity to customers throughout the Mid-Atlantic region.
• Continuing to provide excellent electricity delivery services to the homes and businesses of central and eastern Pennsylvania.
• Increasing the volume and profitability of wholesale electricity sales.
• Continuing to expand its worldwide operations, making prudent acquisitions and investments that take advantage of its extensive energy business experience.
• Continuing to expand its energy management, engineering and other services throughout the United States and internationally.

Hecht said that the Allentown-based company has made substantial progress in pursuing a strategic direction that was set in 1993, in anticipation of significant changes in the nation's electricity business.

"Our PMDC and Spectrum subsidiaries are pursuing opportunities outside our traditional business and our reshaped electric utility subsidiary is an aggressive — and successful — competitor in today's new electricity business," said Hecht.

Pennsylvania Power & Light Co., the company's electric utility subsidiary, was a strong supporter of legislation that will permit Pennsylvania's consumers and businesses to select the company that generates their electricity beginning in 1999. Under the new law, the company's electric utility subsidiary will continue to provide delivery services to customers in its service territory.

To take advantage of new sales opportunities, the company has formed a Retail Energy Supply group that will market electricity not only in PP&L's current service territory, but throughout Pennsylvania.

Meanwhile, PMDC has established itself in the international electricity business, Hecht said. That company now has investments and commitments totaling $370 million in the United Kingdom, Bolivia, Peru, Argentina, Portugal, Spain and Chile.

In addition, Spectrum Energy Services is marketing the company's engineering and energy management skills to companies throughout the world.

"Through our three operating companies, we are taking advantage of the increasing opportunities in the national and international electricity business," said Hecht. "We are particularly excited about the opportunity to market electricity to customers throughout Pennsylvania and, as laws permit, to customers in other Mid-Atlantic states."

During the meeting, held at Stabler Arena on the campus of Lehigh University, shareowners ratified the appointment of Price Waterhouse LLP as the company's independent auditors.

Shareowners also re-elected four directors to three-year terms: E. Allen Deaver, executive vice president, Armstrong World Industries Inc., Lancaster, Pa.; Nance K. Dicciani, vice president and Monomers Business Unit Director, Rohm and Haas Co., Philadelphia; Elmer D. Gates, vice chairman, Fuller Co., Bethlehem; and Norman Robertson, former senior vice president and chief economist, Mellon Bank, Pittsburgh. They will serve through April of 2000.

About 78 percent of the 163 million outstanding common shares were voted during the meeting.

Directors continuing in office, and therefore not standing for re-election this year are (term expiration year in parentheses): Frederick M. Bernthal, president of Universities Research Association, Washington, D.C. (1999); William J. Flood, secretary-treasurer of Highway Equipment & Supply Co., Harrisburg, Pa. (1999); Derek C. Hathaway, chairman, president and chief executive officer of Harsco Corp., Camp Hill, Pa. (1998); Hecht (1999); Stuart Heydt, president and chief executive officer of Geisinger Foundation, Danville, Pa. (1998); Clifford L. Jones, former president of the Capital Region Economic Development Corp., Camp Hill, Pa. (1998); Ruth Leventhal, professor of biology at the Penn State Milton S. Hershey Medical Center, Hershey, Pa. (1998); and Frank A. Long, executive vice president of PP&L Resources (1999).

Pennsylvania Power & Light Co.'s principal officers also were re-elected at a board meeting Wednesday: Hecht, chairman, president & chief executive officer; Long, executive vice president and chief operating officer; Robert G. Byram, senior vice president-Generation and chief nuclear officer; Robert J. Grey, senior vice president, general counsel and secretary; Ronald E. Hill, senior vice president-Financial; James E. Abel, treasurer; Linda Curry Bartholomew, vice president-Public Affairs; John R. Biggar, vice president-Finance; John M. Chappelear, vice president-Investments and Pensions; Robert M. Geneczko, vice president-Power Delivery; Robert S. Gombos, vice president-Mobile Work Force; Michael D. Hill, vice president-Information Services; George T. Jones, vice president-Nuclear Operations; Michael E. Kroboth, vice president-Strategic Development; Joseph J. McCabe, vice president and controller; John R. Menichini, vice president-Customer Services; Robert J. Shovlin, vice president-Power Production and Engineering; John F. Sipics, vice president-Retail Energy Supply; and Raymond F. Suhocki, vice president-Delivery Services and Economic Development.