05232006 FutureGen Alliance

Public-private partnership developing $1 billion, zero-emissions coal-fired power plant

PPL Corporation (NYSE:PPL) has joined the FutureGen Industrial Alliance, a nonprofit consortium working with the U.S. Department of Energy to build the cleanest coal-fired power plant in the world.

PPL joins two other major American power generators – American Electric Power and Southern Company – and a number of domestic and international coal producers and electricity generators as an alliance member.

"FutureGen has enormous potential to demonstrate clean coal technologies," said William F. Hecht, PPL's chairman and chief executive officer. "This is the natural next step for PPL as we work to supply the growing demand for electricity in an environmentally responsible way."

PPL has significantly reduced emissions from its fleet of coal-fired power plants in Pennsylvania and Montana, Hecht noted, including a 27 percent reduction in sulfur dioxide emissions and a 57 percent reduction in nitrogen oxide emissions since 1990. During that time, PPL increased its generation output by 39 percent.

PPL is spending more than $1.5 billion on environmental controls over the next three years, including building "scrubbers" on five large coal-fired generating units in Pennsylvania to remove 97 percent of the remaining sulfur dioxide emissions, while also reducing emissions of fine particulates and mercury.

Additionally, PPL is testing new technologies to remove mercury from power plant emissions at facilities in Pennsylvania and Montana.

Meanwhile, the company is developing a portfolio of renewable energy projects including landfill gas, wind power, fuel cells and solar power. PPL also is considering an expansion that would more than double the generation capacity of its Holtwood hydroelectric plant south of Harrisburg, Pa., and is adding additional generating capacity at its hydroelectric dams in Maine and Montana.

As a member of FutureGen, PPL will provide financial support and will lend technical expertise. Twelve locations in seven states are in the running to be the site for the plant, which will generate electricity and hydrogen while capturing and permanently storing carbon dioxide deep underground.

"While we operate power plants that use a variety of fuels – including nuclear, natural gas and hydro power – we recognize that coal will play a major role in securing our nation's energy future," Hecht said. "This plant will demonstrate the ability to use coal to generate affordable electricity with minimal environmental impacts."

PPL Corporation (NYSE: PPL) controls about 12,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to more than 5 million customers in Pennsylvania, the United Kingdom and Latin America.