ALLENTOWN, Pa.---PP&L Resources, Inc. (NYSE: PPL), parent company of PP&L, Inc., Friday (5/22) declared the regular quarterly dividend on common stock of 41.75 cents per share, payable July 1, 1998, to shareowners of record June 10, 1998.

The company also declared the following quarterly dividends on its preferred stock, payable July 1, 1998, to shareowners of record June 10, 1998:

Preferred

4 1/2%....................$1.125

3.35% Series.........$.8375

4.40% Series.........$1.10

4.60% Series.........$1.15

5.95% Series.........$1.4875

6.05% Series.........$1.5125

6.125% Series.......$1.53125

6.15% Series.........$1.5375

6.33% Series.........$1.5825

6.75% Series.........$1.6875

On June 4, the Pennsylvania Public Utility Commission is expected to issue its final order in PP&L, Inc.'s restructuring proceeding under the Pennsylvania Electricity Generation Customer Choice and Competition Act (Customer Choice Act). PP&L Resources is unable to predict the ultimate outcome of the PUC proceeding. The company noted, however, that if the final order is consistent with the motion adopted by the PUC on May 14, there could be a material adverse financial impact on PP&L Resources.

After the PUC issues its final order, PP&L Resources plans to conduct an overall assessment of its financial position, said John R. Biggar, senior vice president-Financial.

"This assessment will include, among other things, an examination of the appropriate level of PP&L Resources' common stock dividend to determine the dividend payout ratio that allows PP&L Resources to properly balance current returns to shareowners through dividends with the opportunity for growth in shareowner value through the investment of retained earnings," said Biggar. "As a result of this examination, PP&L Resources may reduce its common stock dividend."

Biggar said that, over the past five years, and in preparation for competition in the Pennsylvania electricity market, PP&L Resources has invested nearly $500 million in energy projects internationally; has established an Energy Marketing Center that trades electricity, gas and oil in 23 states and Canada; and has established a major retailing arm that provides a full range of bundled energy products and services.

In addition, Biggar said the company has dramatically reduced operating costs in its electric utility business, enabling it to continue to provide customers with electricity rates that are among the lowest in Pennsylvania. Biggar said PP&L, Inc. customers today buy electricity at essentially the same prices that they paid in 1986. Considering inflation, customers actually have experienced a 40 percent reduction in prices over the past dozen years.

PP&L, Inc., PP&L Resources' largest subsidiary, provides electricity delivery service to 1.2 million customers in Pennsylvania; generates electricity; sells retail electricity throughout Pennsylvania through its PP&L EnergyPlus brand; and markets wholesale energy.

Other PP&L Resources' subsidiaries include PP&L Global, Inc., a worldwide independent power company; PP&L Spectrum, Inc., which markets energy-related services and products; and H. T. Lyons, Inc., an energy management and heating, ventilating and air-conditioning firm.