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PPL Corporation Reports First-Quarter Earnings

                PPL Corporation Reports First-Quarter Earnings

--Announces solid increases in results from regulated businesses

--Finalizes remarketing plan for equity units; updates per-share earnings
guidance to reflect accelerated recognition of common stock underlying equity
units

--Announces reduction in future equity needs

--Affirms underlying 2013 forecast of net income

PR Newswire

ALLENTOWN, Pa., May 2, 2013

ALLENTOWN, Pa., May 2, 2013 /PRNewswire/ --PPL Corporation (NYSE: PPL)
announced first-quarter 2013 reported earnings on Thursday (5/2) of $413
million, or $0.65 per share, a decrease from $541 million, or $0.93 per share,
a year ago.

Adjusting for special items, quarterly earnings from ongoing operations were
$454 million, or $0.71 per share, an increase from $409 million, or $0.70 per
share, in the first quarter of 2012.

First-quarter per-share reported and ongoing earnings reflect accelerated
recognition of the common stock underlying the equity units issued to fund the
company's 2010 and 2011 acquisitions in Kentucky and the United Kingdom.
Excluding the impact of the accelerated share recognition, per-share earnings
from ongoing operations would have been $0.06 higher.

"We delivered strong quarter-over-quarter growth in each of the regulated
business segments, keeping us on track to achieve our 2013 net income target,"
said William H. Spence, PPL chairman, president and chief executive officer.

"Late in the first quarter we finalized our financing plans to remarket $2.1
billion of debt securities related to the equity units issued in 2010 and
2011," he said. As a result of those activities, effective Jan. 1, 2013, PPL
is reflecting the full expected impact of common stock underlying both series
of equity units in its calculation of earnings per share.

Terms of the equity units have not changed and the actual issuance of common
stock under the equity units remains scheduled to occur July 1, 2013, and May
1, 2014, for the 2010 and 2011 Equity Units, respectively.

"Additionally, we are announcing today a reduction in future equity needs,"
Spence said. PPL has removed approximately $100 million per year in previously
planned equity offerings from its financing plans for 2013 and beyond.

As a result of the accelerated recognition of common stock related to the
equity units and the change in financing plans, PPL's 2013 earnings per share
forecasts have been adjusted downward by $0.10 per share. The revised forecast
of ongoing earnings is a range of $2.15 to $2.40 per share, with a midpoint of
$2.27. The forecast of reported earnings is now $2.09 to $2.34 per share,
reflecting special items recorded through the first quarter.

First-Quarter 2013 Earnings Details

PPL's reported earnings for the first quarter of 2013 included net special
item charges of $41 million, or $0.06 per share, reflecting a charge of $0.18
per share for adjusted energy-related economic activity (primarily
mark-to-market losses on commodity hedges), partially offset by a credit of
$0.12 per share for foreign currency-related economic hedges.

Reported earnings are calculated in accordance with U.S. generally accepted
accounting principles (GAAP). "Earnings from ongoing operations" is a non-GAAP
financial measure that is adjusted for special items including the impact of
adjusted energy-related economic activity, foreign currency-related economic
hedges, as well as other impacts fully detailed at the end of this news
release.

(Dollars in millions, except for per share amounts)

                                           1^st Quarter 1^st Quarter
                                           2013         2012         % Change
Reported Earnings                          $413         $541         -24%
Reported Earnings Per Share                $0.65        $0.93        -30%
Earnings from Ongoing Operations           $454         $409         11%
Earnings from Ongoing Operations Per Share $0.71        $0.70        1%



(See the tables at the end of the news release for details as to the
reconciliation of earnings from ongoing operations to reported earnings.)

First-Quarter Earnings by Business Segment

The following chart shows PPL's earnings per share by business segment for the
first quarter of 2013 compared with the same period of 2012.



                                  1^st Quarter
Earnings from ongoing operations  2013      2012
Kentucky Regulated                $ 0.14     $ 0.06
U.K. Regulated                      0.37       0.31
Pennsylvania Regulated              0.10       0.06
Supply                              0.11       0.27
Corporate and Other^1               (0.01)     –
Total                         $ 0.71     $ 0.70
Special items
Kentucky Regulated                $ –        $ 0.01
U.K. Regulated                      0.12       (0.03)
Pennsylvania Regulated              –          –
Supply                              (0.18)     0.25
Corporate and Other^1               –          –
Total                         $ (0.06)   $ 0.23
Reported earnings
Kentucky Regulated                $ 0.14     $ 0.07
U.K. Regulated                      0.49       0.28
Pennsylvania Regulated              0.10       0.06
Supply                              (0.07)     0.52
Corporate and Other^1               (0.01)     –
Total                         $ 0.65     $ 0.93



^1 This category primarily includes unallocated corporate-level financing and
other costs. Non-financing costs included in this category are not expected to
be significant in 2013.

(For more details and a breakout of special items by segment, see the
reconciliation tables at the end of this news release.)

Key Factors Impacting Business Segment Earnings from Ongoing Operations

Kentucky Regulated Segment
PPL's Kentucky Regulated segment primarily consists of the regulated
electricity and natural gas operations of Louisville Gas and Electric Company
and Kentucky Utilities Company.

Segment earnings from ongoing operations in the first quarter of 2013
increased by $0.08 per share compared with a year ago. This increase was
primarily due to new electric and gas rates that went into effect Jan. 1, and
higher sales volumes due to weather, partially offset by dilution of $0.01 per
share.

U.K. Regulated Segment
PPL's U.K. Regulated segment primarily consists of the regulated electricity
delivery operations of Western Power Distribution, serving Southwest and
Central England and South Wales.

Segment earnings from ongoing operations in the first quarter of 2013
increased by $0.06 per share compared with a year ago. This increase was
primarily due to higher delivery revenue as a result of higher prices, and
lower income taxes, partially offset by dilution of $0.04 per share.

Pennsylvania Regulated Segment
PPL's Pennsylvania Regulated segment consists of the regulated electricity
delivery operations of PPL Electric Utilities.

Segment earnings from ongoing operations in the first quarter of 2013
increased by $0.04 per share compared with a year ago. This increase was
primarily due to higher delivery revenues as a result of new distribution
rates that went into effect Jan. 1, higher sales volumes due to weather, and
lower operation and maintenance expense, partially offset by dilution of $0.01
per share.

Supply Segment
PPL's Supply segment  consists primarily of the competitive domestic
electricity generation and energy marketing operations of PPL Energy Supply.

Segment earnings from ongoing operations in the first quarter of 2013
decreased by $0.16 per share compared with a year ago. This decrease was
primarily due to lower Eastern energy margins due to lower baseload energy
prices, which were partially offset by higher baseload unit availability,
higher capacity prices and higher margins on intermediate and peaking units;
lower Western energy margins due to lower prices; higher income taxes; and
dilution of $0.01 per share.

2013 Earnings from Ongoing Operations Forecast by Business Segment

                        Forecast
                       2013 original  2013 revised
Earnings per share                    midpoint      2012 Actual
                       midpoint
Kentucky Regulated     $0.47          $ 0.46        $ 0.33
U.K. Regulated         1.25           1.20          1.19
Pennsylvania Regulated 0.29           0.27          0.22
Supply                 0.40           0.37          0.68
Corporate and Other    (0.04)         (0.03)        -
 Total         $2.37          $ 2.27        $ 2.42



PPL expects lower earnings per share in 2013 compared with 2012, primarily due
to lower earnings in the Supply segment, higher earnings in the three
regulated segments and dilution of $0.21 per share associated with shares
related to the 2010 and 2011 Equity Units and the April 2012 forward stock
sale that settles in 2013.

Kentucky Regulated Segment
PPL expects higher segment earnings in 2013 compared with 2012, primarily
driven by electric and gas base rate increases, returns on additional
environmental capital investments, and load growth, partially offset by higher
operation and maintenance expense. Dilution is expected to be $0.03 per share.

U.K. Regulated Segment
PPL expects higher segment earnings in 2013 compared with 2012, primarily
driven by higher electricity delivery revenue and lower income taxes,
partially offset by higher operation and maintenance expense, higher
depreciation and higher interest expense. Dilution is expected to be $0.10 per
share.

Pennsylvania Regulated Segment
PPL expects higher segment earnings in 2013 compared with 2012, primarily
driven by higher distribution revenues from a distribution base rate increase
and higher transmission margins, partially offset by higher depreciation.
Dilution is expected to be $0.03 per share.

Supply Segment
PPL expects lower segment earnings in 2013 compared with 2012, primarily
driven by lower energy prices, higher fuel costs, higher operation and
maintenance expense, higher depreciation, and higher financing costs,
partially offset by higher capacity prices and higher nuclear generation
output despite scheduled outages for both Susquehanna units to implement a
long-term solution to turbine blade issues. Dilution is expected to be $0.05
per share.

Corporate and Other
This category primarily includes unallocated corporate-level financing and
other costs.

PPL Corporation (NYSE: PPL), with annual revenue of more than $12 billion, is
one of the largest companies in the U.S. utility sector. The PPL family of
companies delivers electricity and natural gas to about 10 million customers
in the United States and the United Kingdom, owns more than 18,000 megawatts
of generating capacity in the United States and sells energy in key U.S.
markets. More information is available at www.pplweb.com.

(Note: All references to earnings per share in the text and tables of this
news release are stated in terms of diluted earnings per share unless
otherwise noted.)

Conference Call and Webcast

PPL invites interested parties to listen to a live Internet webcast of
management's teleconference with financial analysts about first-quarter 2013
financial results at 8:30 a.m. Eastern Time on Thursday, May 2. The meeting is
available online live, in audio format, along with slides of the presentation,
on PPL's website: www.pplweb.com. The webcast will be available for replay on
the PPL website for 30 days. Interested individuals also can access the live
conference call via telephone at 702-696-4769 (ID#57179671).

"Earnings from ongoing operations," also referred to as "ongoing earnings,"
should not be considered as an alternative to reported earnings, or net income
attributable to PPL shareowners, which is an indicator of operating
performance determined in accordance with U.S. generally accepted accounting
principles (GAAP). PPL believes that "earnings from ongoing operations,"
although a non-GAAP financial measure, is also useful and meaningful to
investors because it provides management's view of PPL's fundamental earnings
performance as another criterion in making investment decisions. PPL's
management also uses "earnings from ongoing operations" in measuring certain
corporate performance goals. Other companies may use different measures to
present financial performance.

"Earnings from ongoing operations" is adjusted for the impact of special
items. Special items include:

  oAdjusted energy-related economic activity (as discussed below).
  oForeign currency-related economic hedges.
  oGains and losses on sales of assets not in the ordinary course of
    business.
  oImpairment charges (including impairments of securities in the company's
    nuclear decommissioning trust funds).
  oWorkforce reduction and other restructuring effects.
  oAcquisition-related adjustments.
  oOther charges or credits that are, in management's view, not reflective of
    the company's ongoing operations.

Adjusted energy-related economic activity includes the changes in fair value
of positions used to economically hedge a portion of the economic value of
PPL's competitive generation assets, full-requirement sales contracts and
retail activities. This economic value is subject to changes in fair value due
to market price volatility of the input and output commodities (e.g., fuel and
power) prior to the delivery period that was hedged. Also included in adjusted
energy-related economic activity is the premium amortization associated with
options and the ineffective portion of qualifying cash flow hedges and
economic activity realized associated with the monetization of certain
full-requirement sales contracts in 2010. This economic activity is deferred,
with the exception of the full-requirement sales contracts that were
monetized, and included in earnings from ongoing operations over the delivery
period of the item that was hedged or upon realization. Management believes
that adjusting for such amounts provides a better matching of earnings from
ongoing operations to the actual amounts settled for PPL's underlying hedged
assets. Please refer to the Notes to the Consolidated Financial Statements and
MD&A in PPL Corporation's periodic filings with the Securities and Exchange
Commission for additional information on adjusted energy-related economic
activity.

Statements contained in this news release, including statements with respect
to future earnings, cash flows, financing, regulation and corporate strategy,
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
are subject to 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; weather conditions affecting customer energy usage
and operating costs; competition in power markets; the effect of any business
or industry restructuring; the profitability and liquidity of PPL Corporation
and its subsidiaries; new accounting requirements or new interpretations or
applications of existing requirements; operating performance of plants and
other facilities; the length of scheduled and unscheduled outages at our
plants; environmental conditions and requirements and the related costs of
compliance, including environmental capital expenditures and emission
allowance and other expenses; system conditions and operating costs;
development of new projects, markets and technologies; performance of new
ventures; asset or business acquisitions and dispositions, and PPL
Corporation's ability to realize the expected benefits from acquired
businesses, including the 2010 acquisition of Louisville Gas and Electric
Company and Kentucky Utilities Company and the 2011 acquisition of the Central
Networks electricity distribution businesses in the U.K.; any impact of
hurricanes or other severe weather on our business, including any impact on
fuel prices; receipt of necessary government permits, approvals, rate relief
and regulatory cost recovery; capital market conditions and decisions
regarding capital structure; the impact of state, federal or foreign
investigations applicable to PPL Corporation and its subsidiaries; the outcome
of litigation against PPL Corporation and its subsidiaries; stock price
performance; the market prices of equity securities and the impact on pension
income and resultant cash funding requirements for defined benefit pension
plans; the securities and credit ratings of PPL Corporation and its
subsidiaries; political, regulatory or economic conditions in states, regions
or countries where PPL Corporation or its subsidiaries conduct business,
including any potential effects of threatened or actual terrorism or war or
other hostilities; foreign exchange rates; new state, federal or foreign
legislation, including new tax legislation; 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.



PPL CORPORATION AND SUBSIDIARIES
CONDENSED CONSOLIDATED FINANCIAL INFORMATION (a)
Condensed Consolidated Balance Sheets (Unaudited)
(Millions of Dollars)
                                                       March31,  December31,
                                                       2013       2012
Assets
Cash and cash equivalents                              $ 853      $   901
Price risk management assets - current                   1,284        1,525
Other current assets                                     2,852        2,642
Investments                                              812          759
Property, Plant and Equipment
 Regulated utility plant                                 25,054       25,196
 Less: Accumulated depreciation - regulated utility      4,258        4,164
 plant
          Regulated utility plant, net                   20,796       21,032
 Non-regulated property, plant and equipment             12,948       12,545
 Less: Accumulated depreciation - non-regulated          6,039        5,942
 property, plant and equipment
          Non-regulated property, plant and              6,909        6,603
          equipment, net
 Construction work in progress                           2,270        2,397
 Property, Plant and Equipment, net                      29,975       30,032
Regulatory assets - noncurrent                           1,464        1,483
Goodwill and other intangibles                           4,905        5,083
Price risk management assets - noncurrent                598          572
Other noncurrent assets                                  598          637
Total Assets                                           $ 43,341   $   43,634
Liabilities and Equity
Short-term debt                                        $ 1,061    $   652
Long-term debt due within one year                       751          751
Accounts payable                                         1,071        1,252
Price risk management liabilities - current              972          1,065
Other current liabilities                                1,795        1,905
Long-term debt - noncurrent                              18,881       18,725
Deferred income taxes and investment tax credits         3,917        3,715
Price risk management liabilities - noncurrent           533          629
Accrued pension obligations                              1,596        2,076
Regulatory liabilities - noncurrent                      1,016        1,010
Other noncurrent liabilities                             1,206        1,356
Common stock and additional paid-in capital              6,994        6,942
Earnings reinvested                                      5,676        5,478
Accumulated other comprehensive loss                     (2,146)      (1,940)
Noncontrolling interests                                 18           18
Total Liabilities and Equity                           $ 43,341   $   43,634



    The Financial Statements in this news release have been condensed and
(a) summarized for purposes of this presentation. Please refer to PPL
    Corporation's periodic filings with the Securities and Exchange Commission
    for full financial statements, including note disclosure.



PPL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Income (Unaudited)
(Millions of Dollars, Except Share Data)
                                                  Three Months Ended March31,
                                                  2013             2012
Operating Revenues
    Utility                                       $   1,950        $  1,714
    Unregulated retail electric and gas (a)           237             223
    Wholesale energy marketing
          Realized                                    976             1,208
          Unrealized economic activity (a)            (822)           852
    Net energy trading margins                        (11)            8
    Energy-related businesses                         127             107
    Total Operating Revenues                          2,457           4,112
Operating Expenses
    Operation
          Fuel (a)                                    529             424
          Energy purchases
                Realized                              691             883
                Unrealized economic activity (a)      (634)           591
          Other operation and maintenance             676             706
    Depreciation                                      284             264
    Taxes, other than income                          96              91
    Energy-related businesses                         122             102
    Total Operating Expenses                          1,764           3,061
Operating Income                                      693             1,051
Other Income (Expense) - net                          122             (17)
Interest Expense                                      251             230
Income Before Income Taxes                            564             804
Income Taxes                                          151             259
Net Income                                            413             545
Net Income Attributable to Noncontrolling                             4
Interests
Net Income Attributable to PPL Shareowners        $   413          $  541
Earnings Per Share of Common Stock
    Basic                                         $   0.70         $  0.93
    Diluted                                       $   0.65         $  0.93
Weighted-Average Shares of Common Stock
Outstanding
 (in thousands)
    Basic                                             582,640         579,041
    Diluted                                           657,020         579,527



    Includes activity from energy-related contracts to hedge future cash flows
(a) that are not eligible for hedge accounting, or for which hedge accounting
    was not elected.



PPL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Millions of Dollars)
                                                  Three Months Ended March31,
                                                  2013             2012
Cash Flows from Operating Activities
 Net income                                       $    413         $   545
 Adjustments to reconcile net income to net cash
 provided by operating activities
    Depreciation                                       284             264
    Amortization                                       64              55
    Defined benefit plans - expense                    51              42
    Deferred income taxes and investment tax           80              257
    credits
    Unrealized (gains) losses on derivatives,          98              (235)
    and other hedging activities
    Other                                              30              20
 Change in current assets and current
 liabilities
    Accounts receivable                                (187)           32
    Counterparty collateral                            (64)            65
    Other                                              (70)            (82)
 Other operating activities
    Defined benefit plans - funding                    (429)           (208)
    Other                                              (26)            (27)
             Net cash provided by operating            244             728
             activities
Cash Flows from Investing Activities
 Expenditures for property, plant and equipment        (828)           (682)
 Purchases of nuclear plant decommissioning            (28)            (38)
 trust investments
 Proceeds from the sale of nuclear plant               24              34
 decommissioning trust investments
 Proceeds from the sale of other investments                           16
 Net (increase) decrease in restricted cash and        (52)            (22)
 cash equivalents
 Other investing activities                            (15)            (19)
             Net cash used in investing                (899)           (711)
             activities
Cash Flows from Financing Activities
 Issuance of long-term debt                            450
 Retirement of long-term debt                          (8)
 Issuance of common stock                              20              16
 Payment of common stock dividends                     (210)           (203)
 Debt issuance and credit facility costs               (18)            (3)
 Contract adjustment payments                          (24)            (23)
 Net increase (decrease) in short-term debt            416             93
 Other financing activities                            (5)             (4)
             Net cash provided by (used in)            621             (124)
             financing activities
Effect of Exchange Rates on Cash and Cash              (14)            8
Equivalents
Net Increase (Decrease) in Cash and Cash               (48)            (99)
Equivalents
Cash and Cash Equivalents at Beginning of Period       901             1,202
Cash and Cash Equivalents at End of Period        $    853         $   1,103



Key Indicators (Unaudited)
                                                             12 Months Ended
                                                             March31,
Financial                                                    2013      2012
Dividends declared per share                                $ 1.4475  $ 1.41
Book value per share (a)(b)                                  $ 18.04   $ 19.44
Market price per share (a)                                   $ 31.31   $ 28.26
Dividend yield (a)                                           4.6%      5.0%
Dividend payout ratio (c)                                    62%       50%
Dividend payout ratio - earnings from ongoing                59%       54%
operations (c)(d)
Price/earnings ratio (a)(c)                                  13.4      10.0
Price/earnings ratio - earnings from ongoing                 12.8      10.8
operations (a)(c)(d)
Return on average common equity                              12.84%    15.35%
Return on average common equity - earnings from              13.44%    14.19%
ongoing operations (d)
(a) End of period.
(b) Based on 583,214 and 579,520 shares of common stock outstanding
(in thousands) at March 31, 2013 and March 31, 2012.
(c) Based on diluted earnings per share.
(d) Calculated using earnings from ongoing operations,
which is a non-GAAP financial measure that excludes the
     impact of special items, as described in the text and
     tables of this news release.
Operating - Domestic & International Electricity Sales (Unaudited)
                                                     3 Months Ended March31,
                                                                       Percent
(GWh)                                                2013    2012      Change
Domestic Retail Delivered
     PPL Electric Utilities (a)                      9,883   9,368     5.5%
     LKE                                             8,000   7,505     6.6%
                   Total                             17,883  16,873    6.0%
Domestic Retail Supplied (b)
     PPL EnergyPlus                                  3,281   2,702     21.4%
     LKE                                             8,000   7,505     6.6%
                   Total                             11,281  10,207    10.5%
International Delivered
     United Kingdom                                  21,752  21,423    1.5%
Domestic Wholesale
     PPL EnergyPlus - East                           14,457  12,418    16.4%
     PPL EnergyPlus - West                           1,910   1,918     (0.4%)
     LKE (c)                                         575     589       (2.4%)
                   Total                             16,942  14,925    13.5%
(a) Prior period volumes were restated to include unbilled volumes.
(b) Represents GWh supplied by PPL EnergyPlus to PPL Electric Utilities as
PLR, and to other retail customers in Pennsylvania, New Jersey,
      Montana, Delaware and Maryland. Also includes GWh supplied by LKE to
     retail customers in Kentucky, Virginia and Tennessee.
(c) Represents FERC-regulated municipal and unregulated off-system sales.



Reconciliation of Segment Earnings from Ongoing Operations to Reported Earnings
(After Tax)
(Unaudited)
1st Quarter 2013      (millions of dollars)
                      Kentucky   U.K.       Pennsylvania              Corporate
                      Regulated  Regulated  Regulated     Supply      and Other  Total
Earnings from         $   84     $   238    $    64       $ 71      $ (3)        $ 454
Ongoing Operations
Special Items:
Adjusted
energy-related                                              (117)                  (117)
economic activity,
net
Foreign
currency-related                     78                                            78
economic hedges
Acquisition-related
adjustments:
 WPD Midlands
 Separation benefits                 (1)                                           (1)
 Other
 acquisition-related                 (2)                                           (2)
 adjustments
Other:
 EEI adjustments          1                                                        1
Total Special Items       1          75                     (117)                  (41)
Reported Earnings     $   85     $   313    $    64       $ (46)    $ (3)        $ 413
                      (per share - diluted) (a)
                      Kentucky   U.K.       Pennsylvania              Corporate
                      Regulated  Regulated  Regulated     Supply      and Other  Total
Earnings from         $   0.14   $   0.37   $    0.10     $ 0.11    $ (0.01)     $ 0.71
Ongoing Operations
Special Items:
Adjusted
energy-related                                              (0.18)                 (0.18)
economic activity,
net
Foreign
currency-related                     0.12                                          0.12
economic hedges
Total Special Items                  0.12                   (0.18)                 (0.06)
Reported Earnings     $   0.14   $   0.49   $    0.10     $ (0.07)  $ (0.01)     $ 0.65
(a) The "If-Converted Method" was applied to PPL's Equity Units beginning in the first
quarter of 2013, resulting in $15 million of interest
 charges (after tax) being added back to net income and approximately 72 million shares
 of PPL Common Stock being treated as
 outstanding. Both adjustments are only done for purposes of calculating earnings per
 share diluted.



Reconciliation of Segment Earnings from Ongoing Operations to Reported
Earnings
(After Tax)
(Unaudited)
1st Quarter 2012       (millions of dollars)
                       Kentucky   U.K.       Pennsylvania
                       Regulated  Regulated  Regulated     Supply    Total
Earnings from Ongoing  $   38     $  183     $    33       $ 155     $ 409
Operations
Special Items:
Adjusted
energy-related                                               150       150
economic activity,
net
Foreign
currency-related                     (14)                              (14)
economic hedges
Impairments:
  Adjustments -
  nuclear                                                    1         1
  decommissioning
  trust investments
Acquisition-related
adjustments:
  WPD Midlands
  Separation benefits                (4)                               (4)
  LKE
  Net operating loss
  carryforward and         4                                           4
  other tax-related
  adjustments
Other:
  Counterparty                                               (6)       (6)
  bankruptcy
  Ash basin leak
  remediation                                                1         1
  adjustment
Total Special Items        4         (18)                    146       132
Reported Earnings      $   42     $  165     $    33       $ 301     $ 541
                       (per share - diluted)
                       Kentucky   U.K.       Pennsylvania
                       Regulated  Regulated  Regulated     Supply    Total
Earnings from Ongoing  $   0.06   $  0.31    $    0.06     $ 0.27    $ 0.70
Operations
Special Items:
Adjusted
energy-related                                               0.26      0.26
economic activity,
net
Foreign
currency-related                     (0.02)                            (0.02)
economic hedges
Acquisition-related
adjustments:
  WPD Midlands
  Separation benefits                (0.01)                            (0.01)
  LKE
  Net operating loss
  carryforward and         0.01                                        0.01
  other tax-related
  adjustments
Other:
  Counterparty                                               (0.01)    (0.01)
  bankruptcy
Total Special Items        0.01      (0.03)                  0.25      0.23
Reported Earnings      $   0.07   $  0.28    $    0.06     $ 0.52    $ 0.93



SOURCE PPL Corporation

Website: http://www.pplweb.com
Contact: For news media: George C. Lewis, 610-774-5997; or For financial
analysts, Joseph P. Bergstein, 610-774-5609
 
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