“I’m pleased to tell you today that PPL is strong, growing and well-positioned to take advantage of new opportunities in the continually evolving electricity business.”

With those words, James H. Miller, chairman, president and chief executive officer of PPL Corporation (NYSE: PPL), kicked off his “state of the company” remarks Wednesday (5/23) at PPL’s annual meeting of shareowners.

“Your company is one of the growth leaders in the U.S. electricity industry,” Miller said during the session at the Holiday Inn Conference Center in Fogelsville, Pa. “In 2006, our total return — for shareowners who reinvested their dividends — was 26 percent, among the best in our industry.”

He also told shareowners that the company continues to forecast 2010 earnings of $3.50 per share, which would be an increase of 90 percent over the company’s earnings as recently as 2004.

PPL’s forecast for continued growth is built on a solid foundation, Miller said.

“The three essential building blocks of this foundation are: exceptional people who understand the energy business and what it takes to succeed; extraordinary, high- performing assets; and a proven business model that includes both unregulated and regulated businesses,” he said.

“While our performance over the past decade is among the best in our business and we are forecasting growth that also is among the best in our sector through 2010, we are not relaxing our efforts to further grow value for you,” said Miller.

He told the shareowners that the company is expanding the capabilities of its marketing operation; increasing the capacity of its existing power plants; exploring construction of new power plants; and pursuing acquisition of plants, principally in the mid-Atlantic region.

Miller also told shareowners that the company is committed to ensuring that “we are making the best use of the resources that you entrust to us.” As a result, Miller said, the company has reached agreements to sell its electricity delivery companies in Bolivia and El Salvador and is continuing with efforts to sell its Chilean electricity distribution company and its small telecommunication operation in the U.S.

This change in the company’s business mix, he said, will allow PPL to reinvest the proceeds in growth opportunities in its core business or to repurchase securities, including common stock.

Miller also said that one of the hallmarks of PPL has been the company’s ability to identify new opportunities while not losing sight of the day-to-day essentials of its business.

“Our electricity delivery operations continue to earn the praise of customers. In the United Kingdom, our Western Power Distribution operation has won the prestigious Charter Mark customer service award for the fifth time. WPD is the only electricity delivery company ever to win the award,” Miller said.

Also, PPL’s Pennsylvania energy delivery companies recently earned the highest customer satisfaction marks for combined U.S. electricity and natural gas utilities in the American Customer Satisfaction Index, a ranking compiled by the University of Michigan. This was the seventh consecutive year the company achieved the highest ranking for combined utilities.

He also said that the company’s $1.5 billion installation of state-of-the-art air  pollution control equipment at two of its major Pennsylvania power plants is expected to be completed on schedule and on budget.

As part of the meeting, shareowners re-elected three directors and ratified the appointment of Ernst & Young LLP as the company’s independent auditing firm for the year ending Dec. 31, 2007.

Shareowners also approved a shareowner proposal recommending that the board of directors take steps necessary for the adoption of a simple majority vote, to the greatest extent possible, on issues that can be subject to a shareowner vote. Miller said that the board would review the company’s voting standards in light of the recommendation.

Elected to serve three-year terms on the board were: Stuart Heydt, retired chief executive officer of the Geisinger Health System; Craig A. Rogerson, president and chief executive officer of Hercules Incorporated; and W. Keith Smith, retired vice chairman of Mellon Financial Corporation and senior vice chairman of Mellon Bank, N.A.

Continuing to serve on the board are (current term expiration in parentheses): Frederick M. Bernthal, president, Universities Research Association (2008); John W. Conway, chairman, president and chief executive officer of Crown Holdings, Inc. (2009); E. Allen Deaver, retired executive vice president and director of Armstrong World Industries, Inc. (2009); Louise K. Goeser, president and chief executive officer, Ford of Mexico (2008); Miller (2009); Susan M. Stalnecker, vice president and treasurer of E.I. du Pont de Nemours and Company (2009); and Keith H. Williamson, senior vice president, secretary and general counsel of Centene Corporation (2008).

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.

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Statements contained in this news release, including statements with respect to future earnings, marketing performance, growth, business disposition, financing, corporate strategy, capital additions and expenditures, and generating capacity, 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 the phaseout of synthetic fuel tax credits and synthetic fuel operations; 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 due to weather conditions, contractor performance or other reasons; 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 and its subsidiaries, 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; any impact of 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; disposition proceeds; 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.