Insight and perspective on our business, strategies and people | Second Issue 2015

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ployee Magazine

Building the new PPLAlso in this issue:

- Seven things to know about our company

- New Cane Run gas unit goes live

- Contact Center refurbished in Wales

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dimensionsSenior Manager - Corporate Relations Lissette Santana (610) 774-3357 | losantana@pplweb.com

Providing insight, perspective and analysis of PPL news, strategies and people to engage employees and retirees, encourage dialogue and generate ideas that contribute to the corporation’s success.

Comments dimensions@pplweb.com | www.pplweb.com

Printed on recycled paper and recyclable.©2015 by PPL CORPORATION

CONTENTMoving forward

3 A new day dawns on PPL Changing times for the company

4 Seven things to know about the ‘new PPL’ Our team, our facilities, our industry

Also in this issue:

6 All down the line Work, openness make Susquehanna-Roseland a success

8 Cane Run’s NGCC unit goes live

LG&E and KU make history with state’s first combined-cycle unit

9 Taking technology to new heights Unmanned aircraft show promise for utility use

10 We have contact WPD completes renovation of major contact center

12 Rate case update Rundowns on the Kentucky, Pennsylvania requests

14 The hub of success WPD wraps up successful Low Carbon Hub project

16 A new step in the journey Retiree finds new meaning in leadership coaching

17 PPL and employees give generously Recent projects and campaigns

17 Around the company

18 In memoriam

19 Lineman promotes safety on poster

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Times change. Companies change.

That’s certainly true for PPL.

For the first 75 years of its existence, PPL grew from a diverse group of small-town utilities to a multi-billion dollar company, electrifying communities large and small and powering progress across eastern and central Pennsylvania.

In the two decades since, PPL has transformed at a pace like none other in its history. It has expanded from a regional utility to one of the Top 10 largest companies in the U.S. utility sector. From Pennsylvania power provider to geographically diverse corporation with a strong presence in both the U.S. and United Kingdom. From so-called “hybrid” utility, with one foot in competitive markets and one in traditional regulated businesses, to a utility company focused solely on the regulated arena.

Now, with the spinoff of PPL Energy Supply complete, a new day has dawned and the future looks bright.

“I have never been more excited about where we’re headed,” said PPL Chairman Bill Spence. “Our focus has never been clearer. Our ability to control our own destiny by executing our business plans has never been greater. We are poised to deliver for our customers and our shareowners.”

Sizing up the new PPL

The new PPL boasts seven high-performing, award-winning and growing utility companies that time and again have proven themselves to be among the very best in the sector – four in the U.K. and three in the U.S.

These businesses are diverse, located in different regions with different regulatory structures. Each utility operates in what the company considers premium jurisdictions that will enable PPL in the coming years to begin earning a return on more than three-quarters of new infrastructure spending within six months, considerably quicker than has historically been the case.

Each utility has an outstanding reputation with its regulators. In addition, all are investing heavily in infrastructure, producing substantial benefits for customers while creating value for shareowners and fueling business growth. In the U.S. alone, PPL’s rate base – the value of property on which it is allowed by regulators to earn a specific return – is expected to grow by 30 percent over the next five years, the equivalent of adding another major utility to PPL’s business mix.

That, in turn, is driving earnings growth – expected to total 4 to 6 percent compounded annually through 2017.

“When you combine our projected earnings growth with our strong balance sheet, strong cash flows, strong credit ratings and a very competitive dividend, it makes PPL a unique and compelling investment option in the U.S. utility sector,” said Spence.

Telling PPL’s story

With the spinoff complete, the company is intent on sharing the story of the new PPL with current and potential investors this fall, embarking on visits with analysts and some of its largest investors.

“We have a great story to tell about our

company moving forward,” said Vince Sorgi, senior vice president and Chief Financial Officer.

“In fact, I’d stack our mix of regulated assets up against anyone else’s in the utility sector. Thanks to our outstanding diversity and the premium jurisdictions in which we operate, our overall business and regulatory risks are low. On top of that, we have a proven track record of earnings performance, of transparency and of delivering on our commitment to shareowners. All of this, I believe, sets us apart from our peers,” said Sorgi.

Behind it all, said Spence, are 13,000 employees who are passionate about making a difference for PPL’s customers and communities, employees who are building stronger delivery systems, helping customers save, giving back and working with quiet determination each day to make sure our customers have the electricity they count on to power their lives.

“I’m confident in our ability to deliver on our business plans because I know the kind of people we have within PPL,” said Spence.

“Now, as we look forward, we have a tremen-dous opportunity ahead of us. The past two decades have really put PPL on the map. The past five years have transformed PPL into a powerful regulated utility business. While there are many qualities that already set us apart, the years ahead offer us the unique opportunity to establish PPL as the gold standard in our industry in all of the areas that matter most to our customers and shareowners.

“It’s that challenge that excites me as we move forward with confidence as a new PPL.”

RYAN HILL

A new day dawns on PPL

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Seven things you should know about the new PPL

1 WE RELY ON ALL PARTS OF OUR TEAM.

All areas of the new PPL Corporation have significant contributions to make to the company’s success.

Western Power Distribution is expected to account for more than 60 percent of earnings per share in 2015, now that the spinoff of the Energy Supply business is complete. The Kentucky operations will represent an estimated 23 percent of earnings per share, with PPL Electric Utilities accounting for about 17 percent. (Corporate and other costs are expected to account for several percentage points against the bottom line.)

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KY U.K.

2 WE OPERATE GENERATING PLANTS.

The Talen Energy spinoff removes PPL from the competitive generation business. However, our Kentucky utilities continue to own and operate about 8,000 megawatts of generating capacity as part of their regulated utility operations. So issues related to the generation industry, such as environmental rules and regulations, are still very important to PPL.

3 WE’RE A MAJOR PLAYER IN OUR INDUSTRY.

The new PPL Corporation is by no means a small company. We’ll have about 13,000 full-time employees in the United States and United Kingdom, continuing the safe, reliable delivery of electricity and natural gas to more than 10 million customers.

From a financial standpoint, we’ll remain a FORTUNE 500 company, and will continue to rank among the 10 largest utility companies headquartered in the U.S.

And we’ll remain active in groups, like the Edison Electric Institute and the Electric Power Research Institute, that are helping to shape the future of our industry.

4 WE’RE A MAJOR SUPPORTER OF OUR COMMUNITIES.

The United Way and Power of One charitable fundraising campaigns will continue, and we expect to remain a major supporter of United Ways and related nonprofit community organizations in all the places where we do business.

Utility programs that support lower-income customers will continue as well. And so will the employee volunteer opportunities that bring many of PPL’s people out into local towns and cities to improve quality of life.

In short, while the contributions of our former Energy Supply colleagues will be missed, the “new PPL” will stay a strong presence working to support and improve our communities.

5 WE HAVE A SLIGHTLY DIFFERENT PEER GROUP.

We’ll be comparing our performance against companies that, like PPL, are strongly or exclusively focused on regulated utility operations.

Analysts and investors will also compare us to these companies. It’s important that our financial performance stacks up well against these companies, so these critical constituencies see PPL as a strong place to invest.

Our peer group, in alphabetical order:

AEP

Ameren

CenterPoint

Con Ed

Dominion

DTE

Duke

Edison

Eversource

PG&E

Southern

Xcel

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Looking Ahead

7 OUR VISION, MISSION AND VALUES ARE NOT CHANGING.

We are committed, as always, to providing reliable, safe, competitively priced energy to our customers and best-in-class returns to our shareowners. Our corporate vision is still to empower economic vitality and quality of life.

And our corporate values – safety and health, customer focus, employee commitment and diversity, integrity and openness, performance excellence, and corporate citizenship – will continue to guide the decisions we make and the actions we take every day, as part of the “new” PPL Corporation.

KURT BLUMENAU

6 WE OPERATE INDEPENDENTLY FROM TALEN ENERGY, AND VICE VERSA.

PPL Corporation and Talen Energy will provide a limited range of services to each other for a defined period of time, under the terms of transition service agreements. In a few areas, it will take time for each company to set up its own, fully independent services.

From a legal and business standpoint, though, PPL and Talen Energy are now two separate companies, each with its own headquarters, workforce and publicly traded stock. PPL has no ownership stake in Talen Energy.

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Construction on the line began three years ago and ended earlier this year.

FactsPENNSYLVANIA PORTION OF THE PROJECT:Length ..................... 101 miles

Number of poles .. 525, weighing a total of 25,000 tons

Miles of wire ......... 1,097 (just about enough to stretch from Allentown to Louisville and back)

Cubic yards of concrete ............ 48,000

Time spent on construction .......... 1.75 million

man-hours

Cost.......................... $630 million

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Everything about the Susquehanna-Roseland transmission project was super-sized, including the three-year construction effort, the formidable steel poles and even the public controversy it generated. But the final step to put the line into service was one simple click of a transmission operator’s mouse.

With the closing of that remote-controlled circuit breaker, 500,000 volts of electricity zipped down the 146-mile route for the first time, starting at the Susquehanna nuclear plant near Berwick, Pa., passing through several new or upgraded substations along the way, and arriving at Roseland, N.J.

And when it happened, the millions of electricity users in the region didn’t notice. But thanks to the efforts of hundreds of PPL people involved in the project, those customers can rest easier now. Susquehanna-Roseland will be making electric service more reliable long into the future.

Planning for the line began 10 years ago when PJM Interconnection, the regional grid operator, determined that a new high-voltage line was needed to prevent other transmission lines from becoming overloaded. PJM directed PPL Electric Utilities to build the Pennsylvania part of the line, and Public Service Electric and Gas Co. to handle the New Jersey side.

At that time, few could foresee the full extent of the obstacles the companies would have to overcome: dogged opposition from special interest groups, two lawsuits attempting to block construction, and a grueling federal permitting process that turned company executives into frequent visitors to the Energy and Interior departments in Washington, D.C.

Those challenges were overcome by engaging openly and honestly with opponents, by adhering to a strong commitment to meet every term of every environmental permit, and by continuing to emphasize that the line was needed and would provide strong benefits to customers.

Those practices also turned out to be the major lessons learned from Susquehanna-Roseland, and they will help ensure success as PPL Electric Utilities plans and builds other transmission projects in the future.

The line used existing right of way for more than 90 percent of the route, but that route also passed through the Delaware Water Gap National Recreation Area and crossed two other National Park Service properties. Eventually federal permits were received, and the companies agreed to fund significant property expansion and improvements to the park lands.

“Susquehanna-Roseland was the first major transmission line built by PPL Electric Utilities in a long time, and the first of many such projects we will build as we continue to improve reliability for our own customers, as well as take advantage of opportunities to participate in the competitive transmission market beyond our service territory,” said Stephanie Raymond, vice president-Transmission & Substations.

“I’m proud of the team and the work they accomplished on Susquehanna-Roseland,” she said. “This line is a remarkable achievement. It was built safely, and it is a lasting enhancement to the nation’s high-voltage power grid.”

PAUL WIRTH

All down the lineYears of hard work, openness turn Susquehanna-Roseland project into a major success

The end of an era

On the afternoon of June 15, Cane Run Operations received word to “burn down the coal in bunkers.” The operators commenced to do so with mixed emotions. The last of the coal had been moved into the plant, and the remaining fuel in the bunkers that fed Units 4 and 5, the plant’s last operating units, would be depleted in preparation to shut down and retire the units. These steps indicated that the final megawatts generated from the Cane Run coal-fired plant were near. Unit 4 shut down on the morning of June 16, with Unit 5 following just past noon. Greg Tinsley (above top), material handling leader, has worked for 38 years in the Cane Run coal yard, which is practically empty now. At the peak of production, Cane Run burned around 1.7 million tons of coal annually. Operator George Dunaway, Cane Run Operations (above bottom), was at the helm of Unit 4 and received the word to begin the shutdown process. The units officially retired on July 1.

After more than 2 ½ years and more than 2 million construction hours, Louisville Gas and Electric and Kentucky Utilities’ new 640-megawatt natural gas combined-cycle generating unit – known as Cane Run Unit 7, or CR7 for short – is now commercially available, providing customers with another source of safe, reliable energy.

Employees and contractors working on the project wrapped up the unit’s final commissioning and testing phases June 18, clearing the way for the company to take control of the unit and commence its official commercial operation at midnight. The NGCC unit is the first of its kind in Kentucky, making the changeover historic for both the company and the state.

“The planning, permitting, construction and testing of this facility have been years in the making, so it’s exciting to reach this point and see things come together,” said Chief Operating Officer Paul Thompson. “Not only is this generating unit significant for our state, it’s also a significant part of our ongoing efforts to look down the road and, with approval from the Kentucky Public Service Commission, put resources in place that allow us to meet the future energy needs of our customers and evolve with our ever-changing industry.”

Thanks to thoughtful spending that minimized budgeted costs and lower consumption of natural gas than projected during the unit’s testing phase, the company will achieve an estimated $18 million reduction in costs from the previous project forecast of $563 million.

CR7’s commercial operation marks the end of a remarkable construction period that saw more than 600 construction employees working on the project at its peak; a recordable incident rate of 0.37, which is one-tenth the average for industrial construction companies; and zero lost-time incidents.

The NGCC power plant first generates electricity through two natural gas-fired turbines, and uses the exhaust heat from those units to generate steam and produce additional electricity using a steam turbine.

The unit will replace the bulk of the electric energy produced from 800 megawatts of coal-fired generation the company is retiring. LG&E and KU announced the retirement plans in 2011 as the result of stricter U.S. Environmental Protection Agency mandates, which, after a thorough analysis of available options, made building this new unit the most economical option to pursue.

With CR7 fully operational and serving customers, the company will continue executing closure plans for Cane Run’s coal-fired operations. Cane Run Unit 6 was retired at the end of March, and Units 4 and 5 officially retired on July 1. The plans also include capping and closing the facility’s special waste landfill and ash pond, which should be completed in 2016.

The transition from coal to natural gas will bring an end to coal-fired generation at Cane Run that spanned more than six decades and pioneered award-winning, environmental technology for the utility industry, prompting a visit from President Jimmy Carter in 1979. The NGCC also will mean greater efficiency in power production and further reduction of emissions.

With these environmental efforts and CR7’s commercial operation, the company continues to produce energy cleaner than ever before – at Cane Run alone, particulate emissions will be reduced by more than half, sulfur dioxide emissions by 99 percent and nitrogen oxide emissions by 82 percent.

NATASHA COLLINS

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Cane Run’s NGCC unit goes liveLG&E and KU make history with Kentucky’s first natural gas combined-cycle unit

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Technology already allows PPL Electric Utilities to remotely switch electricity around trouble spots. Other equipment senses network problems, communicates and more.

Now, another technology is poised to enhance the quest for first-quartile performance. Unmanned aircraft systems, sometimes referred to as drones, will allow the company to get a bird’s-eye view of power lines and substations without using a manned helicopter or a bucket truck.

The utility recently was granted a request by the Federal Aviation Administration that will allow it to use the systems within its service territory. Very few utilities have such permission, though more are applying.

Some airspace is restricted around certain airports. But for the most part, the sky’s the limit, and the company intends to use the technology to perform existing work more safely, quickly and cost-effectively than current line inspection practices.

The FAA approval allows PPL Electric Utilities to use the unmanned aircraft systems for all

distribution and transmission lines, as well as substations. The company will start out with three units.

However, using humans and helicopters to inspect transmission lines or check for storm damage isn’t going away any time soon. And there still will be a lot of workers in bucket trucks.

The FAA regulates various aspects of unmanned aircraft use, including how high and fast the units can go. Because current regulations require pilot training, a vendor will operate the units, with data coming back to the utility to be analyzed and stored. If FAA regulations change, the seven-pound, six-rotor units could be operated someday by PPL employees.

This year at PPL Electric Utilities will likely be devoted to internal research and development for the units and related support. It will then be time to put what is on paper into practice.

The units give the company the ability to do more and increase consistent data collection. Unmanned aircraft units are able to return to exact, predetermined points so changes can be

monitored over time. Their small size and high-quality images allow for clear, up-close inspections.

“Using unmanned aircraft systems is about being on the cutting edge and not necessarily being confined by conventional thinking,” said Joel Eline, manager of transmission and substation maintenance for the utility. “There are just a handful of utilities in the country that have the FAA approval we have. That’s something we’re very proud of.”

PPL Electric Utilities has been involved in an Edison Electric Institute working group on unmanned aircraft. The technology is also being studied by the Electric Power Research Institute. Fabio Bologna, a senior program manager with EPRI, said the technology has been studied for the past several years for applications in the electric utility industry. Those studies continue.

“A lot of utilities have applied (for FAA exemptions),” Bologna said. “It’s really beginning to grow.”

JOE NIXON

Taking technology to new heightsHow unmanned aerial equipment will change the status quo

Jonathan Fuge, senior engineer with PPL Electric Utilities, adjusts an unmanned aerial unit.

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It’s a high-tech hub managing and controlling the network that serves 2.5 million customers in South West England and South Wales around the clock.

And now, after months of work, the Western Power Distribution customer contact and control center at Lamby Way in Cardiff, Wales, has been transformed following a £1 million (about $1.5 million) investment.

The work, which has included constructing a new mezzanine floor, began in January 2014 and has provided much-needed space for the 133 people who work there.

Contact Center Manager Chris Griffiths explained: “The storms of 2013-14 proved we needed the additional space to be able to ramp up effectively in the contact center, dispatch and control while maintaining the same workflow for the teams to communicate.

“This, together with the introduction of social

media activity like Twitter, Facebook and Web Chat, led to the creation of a new team, which was another reason to create more space.

“Staff numbers have increased and a designated Twitter team of eight is now in place, as well as a team of 10 recruited to data-cleanse the Priority Service Register, which already has more than a million customers registered. Providing fast, accurate customer information is vital and the expansion and redesign can only help to improve the already first-class service that we give.”

Contact Center Team Leader Alun Hopkins, who coordinated the refurbishment work, said the refurbishment also included energy-efficient LED lighting and state-of-the-art computer equipment. It also saw 190 kilometers (more than 623,000 feet) of cable installed, alongside 125 new phone lines and extra seating.

“We’ve also created a Gold Command room and two other meeting and training rooms with

We have contactWPD completes refurbishment of major customer contact center

Lamby Way contact center staff now have more space and better working conditions.

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video conferencing facilities,” Hopkins said. “These have already been extensively used over the past few months for training workshops for the new team and existing staff. In addition, we

built a breakout facility for the team to use.

“Seven modular buildings were placed in the car park for storage and as temporary office space, while much of the work was undertaken

on weekends to minimize disruption to staff,” Hopkins said.

However, Hopkins explained, some challenges were also involved: “One weekend, we needed to move everyone out to work on the main electricity supply in the building, so staff were temporarily moved to other locations.

“On another occasion we moved over 40 staff, all in one go. It was like a military operation involving lots of storage boxes and plenty of forward planning.

“We had detailed plans of who was moving there and it all worked like a dream. It was no mean feat but everyone was really flexible and cooperative. In fact, I’d like to thank everyone involved in the refurbishment for their cooperation – and in particular, our Information Resources department for providing seamless service.”

KAREN WELCH

Shift Manager John Hulme in the refurbished control room.

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PPL Electric Utilities and the advocates and interest groups who intervened in the company’s rate proceeding have reached a settlement that would increase delivery rates and help fund additional reliability improvements.

The company will use the increased funding to continue its work to prevent power outages for the 3 million people who depend on PPL for safe and reliable electric service.

“To reduce the number and duration of outages and better operate our system, we need to replace and improve equipment,” said Beth Johnson, PPL Electric Utilities’ regulatory compliance manager. “This includes making the system better able to withstand storms.”

If approved, the settlement would mean a residential customer using 1,000 kilowatt-hours

per month who does not shop for electricity supply would see an increase of about $7.55 a month. Their bill would increase from the current $147.31 per month to $154.86.

The majority of the company’s residential customers – about 65 percent of them – uses less electricity and would have a smaller increase in their monthly bills.

“We are in the midst of game-changing improvements in the quality of service for our customers,” said Greg Dudkin, president of PPL Electric Utilities. The company plans to spend more than $5 billion during the next five years to renew, strengthen and modernize its electricity delivery network.

PPL Electric Utilities will continue to invest in smart grid technology, new power lines and substations, continued tree trimming activities

and stronger poles and wires – all aimed at preventing outages from storms and other causes.

The investments are paying off for customers. Customers now have 20 percent fewer outages than they did in 2007. Tree-related power outages are down 18 percent compared to the average of the previous 10 years. In the first half of 2015, nearly 200,000 power outages were prevented because of PPL’s work to improve its system.

The rate case settlement must be approved by the state Public Utility Commission administrative law judge and the PUC. If approved, the increase would take effect on Jan. 1, 2016.

Rate case roundupPPL’s regulated utilities in Kentucky reach favorable outcome in rate case, while PPL Electric Utilities takes positive step with rate case settlement.

PPL Electric Utilities reaches settlement in rate caseIncrease would support continued system and reliability improvements

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Louisville Gas and Electric Company and Kentucky Utilities Company reached a unanimous settlement agreement in late April with all of the parties in the base rate cases before the Kentucky Public Service Commission. The settlement agreement was approved by the commission June 30.

LG&E had requested an increase of $30 million in revenue (2.7 percent) for the electric business and an increase of $14 million in revenue (4.2 percent) for the natural gas business. KU requested an increase of $153 million in revenue (9.6 percent).

Under the settlement agreement, the per-kilowatt charge has been modified to provide additional annual cost-recovery revenues of $125 million for KU, incorporating costs associated with the new 640-megawatt natural gas combined-cycle generating plant at the company’s Cane Run site, among other investments. KU owns 78 percent of that facility, with LG&E owning the remaining 22 percent.

The settlement agreement provides no increase in revenues for LG&E’s electric operations and a $7 million increase in LG&E’s gas operations.

A settlement does not attach specific dollars or concessions to any particular issue in the case, but provides an overall settlement that, on balance, is a fair, just and reasonable result. No return on equity was established with respect to base rates; however, the average customer’s monthly bill will reflect a 10 percent return on equity investment

related to the environmental cost recovery mechanism and the gas line tracker mechanism. The settlement agreement also provides for deferred cost recovery of a portion of the costs associated with pensions and KU’s Green River plant, which is currently scheduled to be retired in April 2016.

“The open and direct dialogue between all parties enabled this settlement agreement,” said Kent Blake, Chief Financial Officer. “While it is likely no single party got everything they wanted, this settlement agreement provided all parties with an agreement they could support in the best interests of our customers.”

KU, which does business as Old Dominion Power in Virginia, submitted a request June 30 with the Virginia State Corporation Commission for an increase of $7.2 million (approximately 10 percent) in its base rates. Similar to the Kentucky cases, the key driver for the Virginia filing is to recover costs

associated with the new natural gas combined-cycle generating plant. In addition, the request is designed to help recover costs associated with environmental upgrades, since KU does not have an environmental cost recovery mechanism in Virginia.

CHRIS WHELAN

Unanimous settlement approved in Kentucky rate case; Virginia filing submitted

While it is likely no single party got everything they wanted, this settlement agreement provided all parties with an agreement they could support in the best interests of our customers. Kent Blake, Chief Financial Officer, Louisville Gas and Electric Company and Kentucky Utilities Company

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Philip Bale, innovation and low carbon engineer, reviews data on a transmission system device.

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One of the largest projects in Western Power Distribution’s Low Carbon Network Fund portfolio has reached its conclusion.

The Low Carbon Hub, which has been based in East Lincolnshire, U.K., since 2011, was designed to test various innovative techniques to accommodate significant low-carbon generation on the electricity network without conventional reinforcement.

WPD received £3 million (about $4.7 million) from regulator Ofgem to carry out the project. The project included six novel techniques to enable network connections where conventional connections wouldn’t be possible.

Lincolnshire is suitable for a range of renewable generation operations, including wind farms and large-scale photovoltaic solar development. But many generators could not connect because of the effect a connection could have on voltage fluctuations and impedance, which affects network operation.

However, the Low Carbon Hub has enabled WPD to offer more than 171 megavolt amperes (MVA) of generation quotes in Lincolnshire, with 54 MVA of generation connections being accepted to date. And, successful techniques from the project are now ready to be used across the business.

Active Network Management, for instance, enables WPD to offer alternative generation connections with constraints—giving customers the option to unlock existing generation capacity with restrictions on use at certain times of the year. This reduces customer costs and long time frames associated with traditional network reinforcement.

It is set to be rolled out in 11 areas where generation connections are limited due to voltage and thermal constraints. A second active network management system was installed in Corby in March and one will be installed every six months until 2017.

In addition, a constraint analysis tool has been developed for customers and staff—the first time this type of tool has been developed for customer use—enabling users to estimate the level of generation that can be installed at a proposed location.

Another major success has been STATCOM, a flexible AC transmission system device that will increasingly be used in key distribution locations to improve voltage control and support further generation connections.

Philip Bale, innovation and low carbon engineer, credited the efforts of many WPD teams for the success of the project.

MICHAEL CLARKE

WPD’s Philip Bale, Alex Frost-Phillips, James Kelly and Richard Horlington review site drawings.

The hub of successWPD regional low-carbon project wraps up tests of innovative techniques, technology

Sometimes, the next step in life is visible well in advance. Other times, it takes some soul-searching.

Paulette Carnicelli Pidcock learned this during her doctoral program in audiology, when she left years of study to pursue a different career. Unclear on her next professional move, she found a more natural calling in the field of federal government lobbying, where she worked for 35 years in the utility industry – including eight years as PPL’s vice president-Federal Government Relations.

After retiring from PPL in 2013, Pidcock launched into another period of self-examina-tion, leading to a new career as a leadership coach in the Washington, D.C., area. She partners with clients in a thought-provoking process to identify strengths, develop leadership skills and focus on core personal values.

The decision to enter coaching was not an obvious one, Pidcock said. She had never been coached during her career, and did not have a goal to enter the business. (Professional or life coaching, she points out, is not the same thing as mentoring.)

As she prepared for retirement by reading, researching and talking with colleagues, she became more aware of the coaching profession and how it had grown to be an integral part of leadership development in business and the nonprofit community. It resonated with her core strengths honed during her lobbying years and as an industry leader, including empathy and building trust working with people.

“I love being with people, and I thought, ‘Maybe this is something I could pursue, because of the connection I have with people,’ “ she said.

Pidcock earned her leadership coaching certificate from Georgetown University and launched her own business, Pidcock Coaching Partners, LLC, working with individual clients and groups. Last year, Pidcock also became a member of the Society of International Business Fellows, which sponsors leadership academies around the world. She recently participated as a learning group facilitator in Malaysia and the U.S. and traveled to Turkey in July to work in a similar capacity.

The coaching process generally begins with an hour-long phone consultation to create a shared trust with the prospective client. Depending on the needs of the client, Pidcock and her clients may meet twice a month over a four- to five-month period, identifying goals and creating plans to achieve them. Clients may receive assignments that follow up on discussions during the meetings.

“Leadership coaching is about asking powerful questions so the client gains a greater insight into their own potential and can help facilitate productive change,” she said.

In today’s business environment, it is important that more relational, collaborative and consultative models evolve in the workplace. As a leadership coach, Pidcock helps leaders learn how to optimize the value of teams and organizations.

The process is intended to be transformational for the client – leading them to greater self-awareness, growth, development and strength as a leader.

It’s had a similar impact on Pidcock, who says her new career has brought “intention, resilience and a greater purpose” to her life, and reminds her that growth and exploration is possible at any point in life.

“Life is a journey,” she says, “not a destination.”

For more information, visit pcpidcock.com.

KURT BLUMENAU

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Retir

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potlig

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PPL Retiree Club ContactsLE-GEN.: Jim Carr, president, home (610) 434-8804, cell (484) 375-5121, jhcarr@ptd.net

Scranton/Northeast, Pa.: Anthony DePaola, president, 570-347-6324, tonypsu@comcast.net

Hazleton/NE Region, Pa.: Larry Piehota, president, 570-450-6903, lpiehota@ptd.net

Lancaster, Pa.: Merle Farmer, president, 717-786-0125, mfarmer13@comcast.net

Harrisburg, Pa.: Corrin Aughenbaugh, president, 717-697-3146; contact Connie Etzweiler, cele3155@comcast.net

Montoursville/Susquehanna, Pa.: Richard DiGiacomo, rdigi@ptd.net

Lexington, Ky.: Tom Moore, 859-271-2013, thomas.moore1@twc.com

Louisville, Ky.: Sandy Gentry, 502-627-2713, sandy.gentry@lge-ku.com

A new step in the journeyFormer D.C. lobbyist Pidcock finds unexpected new career in leadership coaching

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PPL CORPORATION When a fire disrupted the daily operations of a local elementary school, employees in the Allentown, Pa., area stepped up to help.

On Feb. 24, a fire caused extensive damage to Cleveland Elementary School in center-city Allentown. None of the school’s 283 students were in the building at the time, and all faculty and staff got out safely, but the building was unusable – and many of the materials inside were lost. Temporary classrooms at two other city schools were quickly arranged.

Cleveland is one of several Allentown schools with which PPL has a longstanding partner relationship. So, when news of the fire got out, employees were quick to ask how they could help.

School officials requested monetary donations to purchase new supplies for Cleveland students, including books for the school’s reading program. Employees and community members raised $5,000, and the company matched those donations, bringing total support for the school to $10,000.

“The donations raised will be integral to the smooth transition for our students, teachers and families back to Cleveland,” Principal Tonya Swavely and Community School Coordinator Er-icka Davis wrote in a joint letter to the company, about a month after the fire. “Please accept this letter as an expression of our sincere gratitude for your support through this trying time.”

Following repairs, the school reopened April 7.

LOUISVILLE GAS AND ELECTRIC/ KENTUCKY UTILITIES While many students look forward to summer vacations, for some it can mean going without access to technology and educational activi-ties until the following school year. A recent donation from LG&E and KU offers a unique way to bridge an educational gap this summer for students who reside in low-income areas in Union County, Kentucky.

In May, the company’s Safety Governance Council donated $3,000 to the Henderson Com-munity College Foundation for “Tech Tank,” a converted bus that’s outfitted with 12 computer stations and various enrichment activities. Tech Tank travels to locations county-wide and, last summer, reached nearly 70 students in four weeks. The donation will be used to help Tech Tank reach more students this summer and help offset operational costs.

“As a company, we continually explore op-portunities to help enrich Kentucky’s communi-ties, support education initiatives and further strengthen our communities’ future leaders who are the students sitting in classrooms today,” said Paul Thompson, LG&E and KU Chief Operating Officer. “Tech Tank offers an inspiring and unique opportunity to reach students who may not otherwise have access to technology and educational activities during the summer months.”

Tech Tank also is supported in part by United Way of the Ohio Valley, a longtime beneficiary of the LG&E and KU Power of One campaign.

WESTERN POWER DISTRIBUTION

Two groups of residents in the communities of Ely, Cardiff, and Easton, Bristol, have received Western Power Distribution checks for nearly £4,000 (about $6,200) to mark their energy-saving efforts.

WPD is leading the Less is More project, supported through Ofgem’s Low Carbon Network Fund, which involves residents in both areas reducing their electricity usage during peak hours and banking the money saved.

The pilot scheme has also helped WPD better understand householders’ responses to energy-related community engagement. This knowledge will help the company find cheaper and more customer-friendly ways to prepare the electricity grid for the growth of low-carbon technologies.

Among the local politicians lending their support to the campaign is Kevin Brennan, Member of Parliament for Cardiff West, who said: “This is great news for local residents. The actions of WPD and (local charity) Action in Caerau and Ely in developing innovative ways to support local communities on such an important matter should be highly commended.”

The residents have fittingly voted to invest the cash in energy-saving devices to benefit the local community.

KURT BLUMENAU, CLAUDIA HENDRICKS & TRACY CARR

PPL Corporation and its employees give generously of their time, effort and money to help their communities.Here’s a look at a few noteworthy recent projects and campaigns.

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Reflecting a $1 billion loss, or $1.50 per share, from discontinued operations associated with the June 1 spinoff of its competitive supply business, PPL Corporation on Aug. 3 reported a second-quarter 2015 loss of $757 million, or $1.13 per share. The loss from discontinued operations included an $879 million loss reflecting the fair value of the supply business at the time of the spinoff compared to the recorded value of that segment. For the second quarter of 2014, the company’s reported earnings were $229 million, or $0.34 per share.

The reported loss for the first six months of 2015 was $110 million, or $0.17 per share, which includes a loss from discontinued operations of $912 million, or $1.36 per share. The company’s reported earnings for the first half of 2014 were $545 million, or $0.83 per share.

Adjusting for special items, including results from discontinued operations of PPL’s former Supply segment, second-quarter 2015 earnings from ongoing operations were $329 million, or $0.49 per share, an increase of more than 11 percent from $296 million in earnings from ongoing operations (adjusted), or $0.44 per share, in the second quarter of 2014.

Earnings from ongoing operations for the first half of 2015 were $848 million, or $1.26 per share. This compares to earnings from ongoing operations (adjusted) of $722 million, or $1.10 per share, in the first half of 2014, representing a 15 percent increase on a per-share basis.

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PPL Corporation increased the midpoint of its 2015 earnings forecast on Aug. 3, based on the continued strong performance of PPL’s seven regulated utility businesses in both the U.S. and U.K., the continued rate base growth from its signficant infrastructure investment and its solid business plan to grow earnings per share. The company narrowed its 2015 forecast range for earnings from ongoing operations to $2.15 to $2.25 per share from $2.05 to $2.25 per share, increasing the midpoint from $2.15 to $2.20 per share. The 2015 forecast for reported earnings is $0.72 to $0.82 per share,

reflecting special items through the second quarter.

PPL also announced that the company is increasing its common stock dividend to $0.3775 per share on a quarterly basis. The increased dividend will be payable Oct. 1 to shareowners of record as of Sept. 10. The increase, PPL’s 13th in 14 years, raises the annualized dividend from $1.49 per share to $1.51 per share.

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PPL Corporation is well-positioned for continued growth and success following the Talen Energy spinoff, Chairman Bill Spence told shareowners at PPL’s annual meeting. The meeting was held May 20 at the new PPL Center arena in Allentown, Pa. Spence told the audience that PPL expects to achieve compound annual earnings growth of 4 to 6 percent through at least 2017 as the company continues a major, corporate-wide effort to rebuild and modernize transmission and distribution networks in ways that are making the grid safer, more efficient and more reliable.

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PPL Corporation announced the upcoming retirement of Bob Grey, the company’s longtime executive vice president, general counsel and secretary, who plans to retire on Jan. 31, 2016. Joanne Raphael was named Senior Vice President, general counsel and corporate secretary of PPL Corporation, effective June 1. Grey, who will serve as the company’s executive vice president and Chief Legal Officer until his retirement, was PPL’s general counsel for two decades. Spence praised Grey’s “superb insight” and contributions to the corporation’s growth, and said the company is fortunate to have someone with Raphael’s legal background and extensive company knowledge to step into the role. Raphael joined PPL in 1988 and has led the company’s government relations and communications functions since 1998.

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PPL Corporation also announced the upcoming retirement of Rick Klingensmith, president of PPL Global. He will retire at the end of September as part of the ongoing transition related to the creation of Talen Energy and PPL’s corporate restructuring. “Rick was instrumental in the evolution of the company’s global portfolio, especially in the very successful expansion of our United Kingdom operations,” said Bill Spence. As a result of the corporate realignment, Robert Symons, chief executive of PPL’s United Kingdom subsidiary, is now reporting directly to Spence.

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Thousands of online viewers tuned in to watch a pair of peregrine falcons nesting at Louisville Gas and Electric’s Mill Creek Generating Station. LG&E and the Kentucky Department of Fish and Wildlife Resources installed the state’s first peregrine falcon webcam inside the nest box in 2013. Since the webcam first launched, it has drawn nearly 200,000 viewers. Power plant crevices and alcoves remind the falcons of natural nesting locations, such as mountain cliffs and ledges, and attract ample food supply of pigeons and starlings. The nest box at Mill Creek is located in the window of a concrete power plant stack about 300 feet above ground. More than 100 falcons have hatched from nest boxes at LG&E and Kentucky Utilities’ power plants.

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PPL Electric Utilities announced a new price to compare for residential and small-business customers – its first on a new schedule. The utility will now adjust its price to compare on June 1 and Dec. 1 each year, rather than every three months. The price to compare only applies to customers who do not shop for their energy; customers may be able to obtain energy at lower cost by buying from a competitive provider. Information about shopping for electric supply can be found on the Pennsylvania Public Utility Commission’s website, www.PAPowerSwitch.com, or at www.pplelectric.com/choice.

KURT BLUMENAU

Around the Company

EMPLOYEESLorraine J. Dorsey of Newark, Del., died May 7, 2015. Dorsey was a results clerk from PPL Generation.

John J. Geosits of Coplay, Pa., died Apr. 5, 2015. Geosits was a senior engineer from PPL Susquehanna.

John Senawaitis of Marlin, Pa., died Feb. 23, 2015. Senawaitis was an electrician leader from PPL Electric Utilities.

RETIREESRussell Allen of Macungie, Pa., died Apr. 11, 2015. Allen retired in 1988 as a superintendent of the General Office complex from the former PP&L.

Julius Ardan of Elysburg, Pa., died Jan. 24, 2015. Ardan retired in 1994 as a coal equipment operator from the former PP&L.

Harold Bickel of Louisville, Ky., died March 10, 2015. Bickel retired in 2001 from LG&E as a facility attendant.

W. E. Burdyn Jr. of Scranton, Pa., died Jan. 5, 2015. Burdyn retired in 1997 as MWF area planner from the former PP&L.

Robert Butler Jr. of Harrisburg, Pa., died Feb. 11, 2015. Butler retired in 2009 as operations manager from PPL Electric Utilities.

Arvel Childress of Morgantown, Ky., died March 20, 2015. Childress retired from LG&E in 1999.

Thomas Clan of Shepherdsville, Ky., died Feb. 6, 2015. Clan retired in 2001 from LG&E as a mechanic repair technician.

Joseph Clauser of Port Royal, Pa., died Apr. 4, 2015. Clauser retired in 2003 as a tool and material services leader from PPL Services.

Frank Crow of Louisville, Ky., died Feb. 18, 2015. Crow retired from LG&E in 2000 as a material handling operator.

Kenneth Cummins of Madison, Miss., died March 21, 2015. Cummins retired in 1992 from KU.

Clyde W. Diehl of Milton, Pa., died Dec. 17, 2014. Diehl retired in 1975 from the former PP&L.

James Dukes of Elizabethtown, Ky., died March 4, 2015. Dukes retired from LG&E in 1981.

Neil Dwyer Jr. of Sugarloaf, Pa., died Apr. 14, 2015. Dwyer retired in 1994 as a power services engineer from the former PP&L.

Leroy Dye of Northampton, Pa., died May 15, 2015. Dye retired in 1994 as a protection and control technician from the former PP&L.

John Dzurenda of Pennsburg, Pa., died Jan. 16, 2015. Dzurenda retired in 1994 as security representative from the former PP&L.

William Dzurko of Mountaintop, Pa., died Jan. 1, 2015. Dzurko retired in 1986 as senior power engineer from the former PP&L.

John Emery of Stroudsburg, Pa., died Feb. 25, 2015. Emery retired in 1989 as area foreman from the former PP&L.

Daniel Erisman of Conestoga, Pa., died May 14, 2015. Erisman retired in 2014 as a plant control operator from PPL Generation.

George Fegley of Richfield, Pa., died Jan. 12, 2015. Fegley retired in 2000 as lineman leader from PPL Electric Utilities.

Ruth Fleming of Bethlehem, Pa., died Jan. 23, 2015. Fleming retired in 1987 as confidential secretary and clerk financial reporting from the former PP&L.

Warren Forsythe of Berwick, Pa., died Feb. 18, 2015. Forsythe retired in 2002 as maintenance production foreman.

Carl Gottshall of Bethlehem, Pa., died Jan. 14, 2015. Gottshall retired in 1994 as a lineman leader from the former PP&L.

Steven Hess of Quarryville, Pa., died Mar. 29, 2015. Hess retired in 2008 as a line maintenance inspector from PPL Electric Utilities.

Charles Hoffman of York Haven, Pa., died May 14, 2015. Hoffman retired in 2014 as journeyman mechanic from PPL Generation.

Larry Holley of Newport, Pa., died Mar. 30, 2015. Holley retired in 2003 as a customer contact representative from PPL Electric Utilities.

Paul Hummel of Mechanicsburg, Pa., died May 16, 2015. Hummel retired in 1991 as a foreman-substation repair from the former PP&L.

John Y. Johnson Jr. of Berwick, Pa., died Feb. 24, 2015. Johnson retired in 1993 as mechanic generation structural from the former PP&L.

Dennis Kennedy of Berwick, Pa., died Jan 20, 2015. Kennedy retired in 2008 as a chemistry foreman from PPL Generation.

Gerald Kresge of Gilbert, Pa., died Mar. 4, 2015. Kresge retired in 1994 as assistant shift supervisor from the former PP&L.

Dennis Kuchinos of Northampton, Pa., died Feb. 26, 2015. Kuchinos retired in 2013 as Martins Creek specialist from PPL Generation.

Robert Kutoloski of Schnecksville, Pa., died Apr. 7, 2015. Kutoloski retired in 2002 from PPL Services.

Russell Lippy of Middletown, Pa., died Jan. 17, 2015. Lippy retired in 1991 as lineman leader from the former PP&L.

James Logsdon of Louisville, Ky., died Feb. 11, 2015. Logsdon retired in 1994 from LG&E.

Ralph Lutz Jr. of Scranton, Pa., died Apr. 10, 2015. Lutz retired in 1991 as an equipment operator from the former PP&L.

Jerry Mensinger of Northampton, Pa., died Feb. 9, 2015. Mensinger retired in 2007 as plant control operator from PPL Generation.

James Minneman of Allentown, Pa., died Jan. 16, 2015. Minneman retired in 2014 as financial director from PPL Solutions.

Ronald Moore of Bloomsburg, Pa., died Apr. 19, 2015. Moore retired in 1996 as a construction foreman-line from the former PP&L.

John Moser of Allentown, Pa., died Feb. 3, 2015. Moser retired in 1990 as a bookkeeper from the former PP&L.

Martin Murray of Conyngham, Pa., died Jan. 14, 2015. Murray retired in 2004 as tool and material support clerk from PPL Services.

Matthew Neal Jr. of Powderly, Ky., died Feb. 2, 2015. Neal retired from KU in 1991.

Richard Nesfeder of Bethlehem, Pa., died Apr. 15, 2015. Nesfeder retired in 1992 from the former PP&L.

Vincent Oliver of Old Forge, Pa., died Apr. 5, 2015. Oliver retired in 2008 as a foreman electrical from PPL Electric Utilities.

Jean Patterson of Allentown, Pa., died Apr. 9, 2015. Patterson retired in 1994 as a supervising analyst-Plant Records from the former PP&L.

Margaret Potter of Hazleton, Pa., died May 5, 2015. Potter retired in 1990 as a steno/clerk from the former PP&L.

Irvin Ramer of Kreamer, Pa., died May 14, 2015. Ramer retired in 1986 as a survey corpsman from the former PP&L.

Chester Reitz of Lititz, Pa., died Apr. 6, 2015. Reitz retired in 1983 as a research test engineer from the former PP&L.

Donald Roederer of Louisville, Ky., died Feb. 9, 2015. He retired in 1996 from LG&E.

Charles Russoli of Allentown, Pa., died Mar. 16, 2015. Russoli retired in 1993 as executive vice president and Chief Financial Officer from the former PP&L.

Richard Sable of Avoca, Pa., died Jan. 23, 2015. Sable retired in 1993 from the former PP&L.

Henry Schaffer of Allentown, Pa., died Apr. 16, 2015. Schaffer retired in 1994 as a senior drafter from the former PP&L.

Mary Semyon of Avoca., Pa., died Feb. 24, 2015. Semyon retired in 1999 as line maintenance inspector from the former PP&L.

David Skeath of Orefield, Pa., died Jan. 15, 2015. Skeath retired in 1999 as senior specialist-marketing from PPL EnergyPlus.

Robert Smith of Allentown, Pa., died Feb. 28, 2015. Smith retired in 1986 as service coordinator from the former PP&L.

William Stankus Sr. of Bethlehem, Pa., died Mar. 15, 2015. Stankus retired in 1994 as electrical test technician from the former PP&L.

R. L. Starinieri of Phillipsburg, N.J., died Apr. 25, 2015. Starinieri retired in 2004 as a results analyst from PPL Generation.

Terry Thieneman of Louisville, Ky., died March 31, 2015. Thieneman retired from LG&E in 2001 as a mechanic.

Bruce Thompson of Alburtis, Pa., died Feb. 15, 2015. Thompson retired in 1994 as inspector-lines from the former PP&L.

Herbert Webb of Allentown, Pa., died Jan. 4, 2015. Webb retired in 2010 as supervisor of design engineering programs from PPL Generation.

Ralph Zampetti of Wilkes-Barre, Pa., died Feb. 27, 2015. Zampetti retired in 1994 as electric equipment repairman from the former PP&L.

Robert Zundel of Clemson, S.C., died May 18, 2015. Zundel retired in 1986 as manager-real estate services from the former PP&L.

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The PPL family has sadly said goodbye to some of our colleagues. We pay tribute here to them.

In Memoriam

Presorted StandardU.S. Postage

PAIDLehigh Valley, PAPermit No. 104

Matt and Monica Manchester know the potential hazards of Matt’s job as a lineman for PPL Electric Utilities. But they also know the company and its employees place a high value on following safety rules and using human performance tools on every job. And for that, they are grateful.

Safety is a top priority no matter what the day’s assignment, says Matt, who has been with the company for about five years. Once at the job site, Matt and his co-workers always complete a comprehensive tailboard. Matt is also sure to attend monthly safety meetings.

“I do it for my wife and my two children, Colton, 2, and Mackenzie, who was born March 22,” he says. “If you don’t, and something should happen, it could mean someone doesn’t go home.”

Matt Manchester recently posed with baby Mackenzie for a safety poster to be displayed throughout the utility’s facilities. The poster reminds employees about the personal stakes involved in caring about safety on every job.

BETH ORENSTEIN

Statements contained in this issue of Dimensions 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. 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.

Lineman brings it all back home on safety poster