Through 2008 and early 2009, PPL Corporation (NYSE: PPL) has taken steps to prepare the company for the future following some of the most severe economic challenges in its 85-year history, the company’s chairman told shareowners Wednesday (5/20).

Among those challenges were the near collapse of the nation’s banking system; unprecedented volatility and liquidity issues in wholesale energy markets; extended outages at two of PPL’s power plants; and escalating costs.

“While it’s too early to declare victory and say that we’ve overcome the difficulties that have hit PPL and the entire utility sector in 2008 and 2009, I believe your company is well-positioned to capture value as the economy recovers,” said James H. Miller, chairman, president and chief executive officer, during the company’s annual meeting at a Lehigh Valley, Pa., conference center.

Miller highlighted proactive measures taken by PPL in 2008 and ongoing in 2009:

• Limiting capital spending.
• Aggressively reducing its operation and maintenance spending.
• Reducing risk exposure to wholesale electricity markets.
• Maintaining adequate credit capacity and successfully accessing the debt capital markets.

Miller also highlighted the company’s performance as a long-term investment. “If you had invested $100 in PPL stock on May 15, 1999, and reinvested all the dividends you received in that time, your investment would be worth $307 today,” he said. During that time, Miller said, the market value of PPL increased by 153 percent.

While other companies have decreased or eliminated their dividends paid to shareowners over the near term, Miller said, PPL has increased its cash dividends. With a dividend increase to PPL common shareowners effective in April, PPL has increased its cash dividend by 68 percent over the past five years.

“We’re hopeful that our excellent growth prospects going into 2010 and our strong dividend record will lead to superior returns for shareowners,” Miller said. He also thanked shareowners for “sticking with us as we faced the challenges of the most severe economic downturn in our lifetimes.”

During the meeting, shareowners re-elected three directors to three-year terms: John W. Conway, chairman, president and chief executive officer of Crown Holdings, Inc.; E. Allen Deaver, retired executive vice president and director of Armstrong World Industries, Inc.; and Miller.

Continuing to serve on the board are (current term expiration in parentheses): Frederick M. Bernthal, president, Universities Research Association (2011); Louise K. Goeser, president and chief executive officer, Grupo Siemens S.A. de C.V. (2011); Keith H. Williamson, senior vice president, secretary and general counsel of Centene Corporation (2011); Stuart E. Graham, retired president and chief executive officer of Skanska AB (2010); Stuart Heydt, retired chief executive officer of the Geisinger Health System (2010); Craig A. Rogerson, president and chief executive officer of Chemtura Corporation (2010); and W. Keith Smith, retired vice chairman of Mellon Financial Corporation and senior vice chairman of Mellon Bank, N.A. (2010).

Shareowners also approved a shareowner proposal recommending that PPL take steps necessary to eliminate its classified board structure to allow for the election of each director on an annual basis. Although this vote is non-binding, the company’s board of directors is expected to consider the issue again prior to next year’s annual meeting.

During the meeting, shareowners also ratified the appointment of Ernst & Young LLP as the company’s independent auditing firm for the year ending Dec. 31, 2009.

PPL Corporation, headquartered in Allentown, Pa., owns or controls more than 12,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to about 4 million customers in Pennsylvania and the United Kingdom.