PPL Corporation (NYSE: PPL) has agreed to sell its 50 percent ownership interest in the 600-megawatt Griffith power plant in Kingman, Ariz., to a subsidiary of LS Power Equity Partners for $115 million in cash. Closing is targeted for June 2006, subject to approval by the Federal Energy Regulatory Commission and customary closing conditions.

The plant began commercial operation in January 2002 and was jointly owned by subsidiaries of PPL and Duke Energy Corporation. A subsidiary of LS Power acquired Duke's interest in the Griffith power plant on May 4, 2006.

"The Griffith plant has operated reliably to meet the obligations of our various energy supply contracts," said John R. Biggar, PPL's executive vice president and chief financial officer. "However, Griffith is the only generation asset that PPL owns in the southwest U.S. market and is not strategic to PPL's western generation."

In May 2005, PPL sold its 450-megawatt Sundance power plant, located about 55 miles southeast of Phoenix, to the Arizona Public Service Company.

After completing the sale of the Griffith plant, PPL will own and operate power plants with total generating capacity of about 11,500 megawatts in six states: Pennsylvania, Montana, Connecticut, Illinois, New York and Maine.

Biggar said PPL will record an unusual, non-cash charge related to the Griffith transaction of about $15 million, after taxes, or $0.04 per share, in the second quarter of 2006. The transaction would enhance PPL's cash flow position and, excluding the unusual charge, would be accretive to the company's earnings in 2006 and in subsequent years. Proceeds of the sale will be used to fund a portion of PPL's capital expenditure requirements.

Certain statements contained in this news release, including statements with respect to future earnings, cash flow and asset disposition, are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: market demand and prices for energy, capacity and fuel; competition; accounting requirements; operating performance and costs of plants and other facilities; political, regulatory or economic developments and conditions; and regulatory approvals. Any such forward-looking statements should be considered in light of such factors and in conjunction with PPL Corporation's Form 10-K and other reports on file with the Securities and Exchange Commission.

Click here for a photo of the Griffith Power Plant.