Increase Brings Dividend Payout Ratio to 52 percent;
Dividend up 130 Percent in Five Years

PPL Corporation (NYSE: PPL) on Friday increased its common stock dividend by 11 percent. With this increase, the dividend will have risen 130 percent over the past five years.

The company has increased its quarterly dividend from $0.275 to $0.305 per share, or from $1.10 to $1.22 per share on an annualized basis. The increased dividend is payable April 1, 2007, to shareowners of record as of March 9, 2007.

This is the company’s 245th consecutive quarterly dividend and the sixth consecutive year that PPL has increased the dividend. PPL increased the dividend twice in 2005 and once in 2006, and the annualized dividend rate is up by 49 percent since the start of 2005.

Based on the company’s closing stock price Thursday of $36.95 per share, Friday’s dividend increase would improve the current yield on PPL common stock to 3.3 percent.

John R. Biggar, PPL’s executive vice president and chief financial officer, said the new annualized dividend rate of $1.22 per share will bring the payout ratio to 52 percent. The ratio is based on the $2.35 per share midpoint of the company’s current 2007 earnings forecast of $2.30 to $2.40 per share. The 11 percent increase in the dividend rate significantly exceeds the company’s projected earnings growth of 6 percent, based on the midpoint of the 2007 earnings forecast.

Biggar said PPL expects that the growth rate of its common stock dividend over the next few years will continue to exceed the growth rate in the company’s earnings per share from ongoing operations, and, therefore, PPL will continue to maintain a dividend payout ratio above 50 percent. All future dividend decisions, Biggar noted, are subject to quarterly dividend declarations based on the company’s financial position and other relevant considerations at the time.

PPL Electric Utilities Corporation, a PPL subsidiary, on Friday also declared the following quarterly dividends on its preferred stock and preference stock, payable April 1, 2007, to shareowners of record as of March 9, 2007.

Each depositary share represents a ¼ interest in a share of the preference stock. Accordingly, holders of record of the depositary shares will receive a dividend equal to ¼ of the dividend paid on the preference stock.

PPL Corporation, headquartered in Allentown, Pa., controls more than 11,000 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.

Statements contained in this news release, including statements with respect to future earnings and dividends, 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; market prices for crude oil and the potential impact on synthetic fuel operations, synthetic fuel purchases from third parties and the phaseout of synthetic fuel credits; weather conditions affecting generation production, customer energy usage and operating costs; competition in retail and wholesale power markets; liquidity of wholesale power markets; the effect of any business or industry restructuring; the profitability and liquidity, including access to capital markets and credit facilities, of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operation and availability of existing generation facilities and operating costs; transmission and distribution system conditions and operating costs; current and future environmental conditions and requirements and the related costs of compliance, including environmental capital expenditures and emission allowance and other expenses; significant delays in the planned installation of pollution control equipment at certain coal-fired generating units in Pennsylvania because of weather conditions, contractor performance or other reasons; market prices of commodity inputs for ongoing capital expenditures; collective labor bargaining negotiations; development of new projects, markets and technologies; performance of new ventures; asset acquisitions and dispositions; political, regulatory or economic conditions in states, regions or countries where PPL Corporation or its subsidiaries conduct business; any impact of  hurricanes or other severe weather on PPL Corporation’s business, including any impact on fuel prices; receipt of necessary governmental permits, approvals and rate relief; new state, federal or foreign legislation, including new tax legislation; state, federal and foreign regulatory developments; the impact of any state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries and the energy industry; capital markets conditions, including changes in interest rates, and decisions regarding capital structure; stock price performance of PPL Corporation; the market prices of equity securities and the impact on pension costs and resultant cash funding requirements for defined benefit pension plans; securities and credit ratings; foreign currency exchange rates; the outcome of litigation against PPL Corporation and its subsidiaries; potential effects of threatened or actual terrorism or war or other hostilities; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such important factors and in conjunction with PPL Corporation’s Form 10-K and other reports on file with the Securities and Exchange Commission.