BUTTE, Mont. ---The Federal Energy Regulatory Commission (FERC), in two orders dated July 7, approved the transfer of licenses for 12 Montana Power Company (NYSE:MTP) hydroelectric projects in Montana to PP&L Montana, LLC, which is a wholly owned subsidiary of PP&L Global, Inc. PP&L Global is the second largest subsidiary of PP&L Resources, Inc. (NYSE: PPL) based in Allentown, Pa.

In addition to the 11 hydroelectric power plants and one storage reservoir, Montana Power intends to sell to PP&L Montana its undivided interest in the Colstrip Generation Station, its interest in the Corette power plant and other related assets, totaling 1,557 megawatts.

PP&L Montana, headquartered in Billings, Mont., will operate the generation assets and will hold the FERC licenses. PP&L Montana has agreed to accept all the terms and conditions of the licenses as they now exist.

"In its orders, the FERC concluded that PP&L Montana is qualified to hold the licenses and to operate the properties, and that the transfer of the licenses is in the public interest," said Perry Cole, Montana Power Co.'s vice president of Corporate Business Development. "We are pleased with FERC's ruling and view this as a positive step in concluding the asset sale."

PP&L Montana said it intends to retain Montana Power hydroelectric plant management and operations personnel and will maintain its hydroelectric staff offices in Butte.

"We have no plans to change the operation of the hydroelectric plants after the asset sale is completed," said Roger Petersen, PP&L Montana's president and chief executive officer. "People who use the rivers where the facilities are located should see the same commitment with respect to river management, environmental sensitivity and recreational access."

The licenses cover the following 11 hydroelectric power plants, in addition to a storage reservoir: Hauser, Holter, Black Eagle, Rainbow, Cochrane, Ryan, Morony, Thompson Falls, Kerr, Madison and Mystic Lake.

This purchase, along with other development projects, will increase the total domestic generating capacity of PP&L Resources to about 12,000 megawatts. PP&L Resources has an objective to increase its U.S. generating capacity to about 20,000 megawatts within the next five years.

"These FERC orders are another important factor in the acquisition of Montana Power's generation assets by PP&L Global," said Petersen. "The acquisition should be closed by the end of the year if other approvals are completed in a timely manner." Those approvals, among other things, include PP&L Montana's ability to become an Exempt Wholesale Generator (EWG) under federal law.

In June, PP&L EnergyPlus Co., LLC, a subsidiary of PP&L Resources, Inc., announced that it was acquiring Montana Power's energy marketing and trading operations.

The Montana Power Company was formed in 1912 through the merger of four small regional electric companies. Through its diversified enterprises, the company now operates or invests in businesses worldwide, supplying energy - electricity, natural gas, oil and coal - and providing energy and telecommunications services. The company has assets of $2.9 billion, consolidated revenues for the 12 months ending Dec. 31, 1998, of $1.25 billion, net income of $162 million, and 2,900 employees. For more information, visit The Montana Power Company's Web site at www.mtpower.com