ALLENTOWN, Pa.---PP&L Resources, Inc. Friday (1/23) reported net income of $73.3 million or 44 cents per share during the fourth quarter of 1997, compared to $73.1 million or 45 cents per share reported in the same period last year. When adjusted for normal weather in both periods, earnings per share would have been 41 cents in the fourth quarter of 1997, compared to 43 cents in the fourth quarter of 1996.

Revenues from traditional sales of PP&L, Inc., the company's electric utility subsidiary, were comparable in both quarterly periods. However, the fourth quarter of 1997 saw higher revenues from bulk power sales and trading activities of the company's Energy Marketing Center. This group markets and trades energy in 18 states. The efforts of the Energy Marketing Center essentially offset the reduced revenues from the phase out of contractual sales to a New Jersey utility.

PP&L, Inc. also incurred start-up costs and increased marketing expenses associated with the move to competition and the beginning of the Pennsylvania Customer Choice Pilot Program.

"We are establishing an organization and programs that will enable us to succeed in retail energy sales when electricity customers throughout Pennsylvania begin to choose their energy supplier in 1999," said Ronald E. Hill, senior vice president-Financial. "We currently expect that in 1998, this will require operating expenses of about $35 million more than last year in order to have the people, programs and systems in place to successfully compete in 1999." These additional expenses are expected to adversely affect earnings in 1998.

The company's electricity brand, PP&L EnergyPlus, is being marketed to customers both inside and outside PP&L's traditional Pennsylvania service territory.

For the 12 months ended Dec. 31, 1997, PP&L Resources reported earnings of $1.80 per share, compared to $2.05 per share for the 12 months ended Dec. 31, 1996. Excluding the effects of weather and one-time adjustments, earnings were $2.03 per share for 1997, compared to $2.00 per share for 1996. The effects of milder weather in 1997, coupled with a colder winter season in 1996, adversely affected earnings by 3 cents per share in 1997 and favorably affected earnings by 5 cents per share in 1996.

Previously reported one-time adjustments reduced 1997 earnings by 20 cents per share. These adjustments included two one-time charges -- first, a windfall profits tax in the United Kingdom based on PP&L Global's equity interest in a U.K. utility and, second, the pending acquisition of a local gas distribution business in the United States. These charges were partially offset by a one-time benefit resulting from a reduction of the U.K. corporate income tax rate.

Growth in sales to service area customers increased only 0.2 percent in 1997 compared to 1996, when sales are adjusted for variations in weather. A major factor in this low growth was the shutdown of a large steel-producing facility. Excluding the steel-related sales losses, weather normalized service area energy sales would have increased 1.1 percent in 1997, when compared to 1996. Revenues from wholesale sales and trading activity of the Energy Marketing Center offset the impact of reduced contractual sales to a New Jersey utility.

Refinancing activities contributed 6 cents per share to earnings for the year ended Dec. 31, 1997, and, excluding one-time adjustments, the ongoing operations of PP&L Global added another 6 cents per share. A change in the regulatory treatment of energy costs and higher depreciation in 1997 partially offset these earnings gains.