Reflecting a decision to concentrate on the delivery of electricity, PP&L Global's United Kingdom subsidiary, South Western Electricity plc, Friday (6/11) announced an agreement to sell a portion of its operations known as the electricity "supply business." PP&L Global is a subsidiary of PP&L Resources, Inc. (NYSE: PPL).

South Western Electricity plc, known as SWEB, is selling the so-called supply business to London Electricity for #160 million (about $256 million, based on current exchange rates). PP&L Global owns 51 percent of SWEB. Southern Energy, based in Atlanta, owns 49 percent and has operational and management control of SWEB.

In the deregulated U.K. electricity market, a supply business purchases wholesale electricity and then sells it to retail customers in the competitive marketplace. SWEB will continue to own and operate an extensive power network in southwest Britain, transporting and delivering electricity to 1.4 million customers. PP&L Global and Southern Energy will continue joint ownership of the SWEB delivery business, said Paul Champagne, PP&L Global's president.

"Along with Southern Energy, we have dramatically improved SWEB's delivery business, especially in terms of reliability and customer service," said Champagne. "The sale of the supply business reflects SWEB's decision to further sharpen its focus on providing excellent electricity delivery services to the people of southwest Britain."

Noting that the supply business represents about 15 percent of its annual earnings, Champagne said SWEB was faced with a decision of either attempting to grow that business substantially in order to compete effectively or to sell the business. "We concluded, along with our Southern Energy partners, that a sale was appropriate and that this was an opportune time to do so," said Champagne. "This transaction also will ensure that SWEB's customers have access to the most competitive sources of energy as the market continues to develop."

PP&L Global paid a total $351 million for its 51 percent interest in SWEB. It acquired 25 percent of the company from Southern Energy in 1996 for $181 million and another 26 percent last year for $170 million.

Southern Energy is a unit of Southern Company, which also is the parent company of Alabama Power, Georgia Power, Gulf Power, Mississippi Power and Savannah Electric.

PP&L Global announced earlier this week that it has reached agreement to acquire majority ownership of Empresas Emel, one of Chile's largest electricity distribution companies. PP&L Global now has investments and commitments totaling more than $2 billion in Europe, Latin America and various U.S. locations.