ALLENTOWN, Pa.-- PP&L, Inc., a subsidiary of PP&L Resources, Inc. (NYSE: PPL), announced today (5/24) that it has signed a definitive agreement to sell its Sunbury plant and the principal assets of its wholly owned coal processing subsidiary, Lady Jane Collieries, to Sunbury Holdings, LLC. WPS Power Development, Inc. owns 100 percent of Sunbury Holdings, LLC.

Under terms of a three-year agreement, the new owner will sell some of the power generated by the Sunbury plant to PP&L, Inc., with the balance sold on the wholesale or retail open market. PP&L, Inc. expects to receive total cash proceeds of about $106 million for the assets, including coal inventory, which would translate into a one-time contribution of about 25 cents per share to PP&L Resources' 1999 earnings. The closing, which is subject to certain regulatory approvals and other closing conditions, is expected to occur during the third quarter of 1999.

WPS Power Development, a subsidiary of WPS Resources Corporation of Green Bay, Wis. (NYSE: WPS), develops and owns nonregulated energy generation facilities and provides services to the electric power generation industry in Wisconsin, Alabama, Arkansas and Oregon and is in the process of acquiring additional generation assets in Maine and in New Brunswick, Canada.

"We are pleased to announce this agreement with WPS Power Development," said Robert G. Byram, PP&L, Inc.'s senior vice president-Generation and chief nuclear officer. "The sale of Sunbury marks the successful completion of a strategy for our generation portfolio that we embarked on a number of months ago.

"Our employees at Sunbury have done an outstanding job operating this plant and deserve the highest praise for their skill, hard work and dedication," Byram said. "We look forward to working closely with WPS Power Development in ensuring a smooth transition."

Jerry Mroczkowski, WPS Power Development vice-president, said, "We're pleased to become a part of the Pennsylvania-New Jersey-Maryland energy market. It's on the leading edge of competitive generation and marketing. We look forward to the transition and to continuing the reliable and effective operation of the facilities provided by PP&L employees."

Under the terms of the agreement, WPS Power Development will operate the facilities, and employees at the Sunbury plant will have the choice to accept employment offers from the new owner or to stay with PP&L, Inc. IBEW Local 1600, which currently represents bargaining unit employees at that plant, will continue in that role with the new owner. Details of the agreement between IBEW Local 1600 and the new owner will be the subject of discussions as part of the closing process.

Employees at the plant will continue to be PP&L, Inc. employees until the closing of the sale. Meetings to further discuss the sale of the plant will be held with all Sunbury plant and Lady Jane employees and representatives from PP&L, Inc. and WPS Power Development over the next several weeks.

As part of PP&L, Inc.'s continual examination of its operations, an assessment was completed of how all of its power plants fit into the company's future plans in the competitive marketplace. At the conclusion of that effort last August, PP&L, Inc. said that it would seek a buyer for the Sunbury plant and close the Holtwood coal-fired power plant in Lancaster County. Last month, PP&L, Inc. ceased operations at the 73-megawatt Holtwood unit.

The Sunbury plant, located on 216 acres in the borough of Shamokin Dam, Pa., is a four-unit coal-fired generating station with a demonstrated winter capacity of 389 megawatts. The site also includes two oil-fired combustion turbine generators with a total installed peak reserve capacity of 42 megawatts, which were also included in the sale. The coal-fired plant began operation in 1949.

In addition, PP&L, Inc. is selling the principal assets of Lady Jane Collieries, a bituminous coal processing facility which processes and loads onto trains a significant portion of the coal used at the Sunbury plant. Lady Jane is located near Penfield, Pa. PP&L, Inc.'s anthracite silt reserves at Forestville and Buck Run in Schuylkill County are being sold along with the other Lady Jane assets.

The Wall Street firm of J. P. Morgan & Co. acted as exclusive financial advisor to PP&L, Inc. on the sale. PricewaterhouseCoopers Securities LLC is the financial advisor to WPS Power Development.