PPL Corporation (NYSE: PPL) announced Tuesday (5/1) that it is seeking a buyer for its PPL Telcom subsidiary, which provides broadband connectivity for telecommunication companies, wireless and Internet service providers and large businesses and institutions.

Located in the mid-Atlantic region, PPL Telcom’s network utilizes more than 4,000 route miles of fiber with advanced optical systems, and provides service to customers throughout the northeast corridor from New York to Washington, D.C.

“While we have had some significant successes in this operation as we investigated its potential as part of PPL’s business portfolio, we have determined that telecommunication will not be part of our core business going forward,” said William H. Spence, PPL executive vice president and chief operating officer. 

“In light of our continued strategic focus on our core energy supply and delivery businesses and the significant level of capital necessary to take the telecommunication operations to the next level, we have decided to proceed with this sale process,” said Spence.

Once an agreement of sale is executed, PPL expects the sale process to take several months to complete. In connection with the decision to proceed with the sale process, the company expects to take an unusual after-tax charge of about $18 million, or 5 cents per share of PPL Corporation earnings, in the first quarter of 2007. Spence said this charge will not affect PPL’s 2007 forecast of earnings from ongoing operations.

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.

Certain statements contained in this news release, including statements with respect to future earnings impacts and business 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: receipt of necessary governmental and other approvals; capital markets; and disposition proceeds. 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.