ppl local roots-global reach 0711

PPL: Local roots, global reach

© PPL Corporation 2011Proprietary and Confidential

Today’s PPL

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Dramatic changes in recent years

Global company with strong portfolio

Transformed business mix with major acquisitions

One of America’s major energy companies


PPL then and now

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Year End 1994 TodayGenerating capacity 7,800 megawatts 19,000 megawatts

Revenue $2.7 billion $11 billion

Energy delivery customers 1.4 million 10 million

Number of employees 7,400 More than 15,000

Geographic scope Eastern and Pennsylvania, Montana, central PA Kentucky, Virginia,

south east Englandand Wales


Global growth strengthens local roots

Still dedicated to customer service

Major investment in Pennsylvania delivery networks

Strong investor in communities

Good-paying jobs

Tax revenues

Reliable dividend

Only major energy company headquartered in Pennsylvania

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PPL’s businesses: Regulated

In Pennsylvania: Transmission regulated by FERC Distribution regulated by PUC

In Kentucky: Generation and delivery regulated

by state PSC

In the United Kingdom: Delivery regulated by Ofgem (federal)

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PPL’s businesses: Unregulated

In Pennsylvania and Montana:

Generation capacity

Decisions on adding new capacity

Improving efficiency/output from existing plants

PPL EnergyPlus marketing operations

Keeping options open for additional nuclear capacity

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Why “regulated vs. unregulated” matters

Advantages of regulated businesses Steady cash flow Opportunity for growing rate base Strong relationships with regulatory agencies

Advantages of unregulated businesses Opportunity for profit when energy prices

increase Efficiently run, competitive assets Environmentally responsible

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Why “regulated vs. unregulated” matters

Recently transformed business mix

Acquired regulated businesses in Kentucky, United Kingdom

Regulated business now 75 percent of earnings

Improves risk and credit profiles

Solid support for our dividend

Achieved targeted business balance

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Other advantages of recent acquisitions

Kentucky: Well-run companies Recognized for strong customer service

WPD Midlands: Adjacent to existing PPL operations

in the United Kingdom Offers opportunity for cost-saving synergies Under strong WPD management

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Pennsylvania after deregulation

Opportunities to save by shopping

More than one-third of customers buying power from competitive supplier

Most large businesses shopping

Rates considerably lower than some predicted Lower natural gas prices led to lower

electricity prices Law of supply and demand

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PPL’s investment in Pennsylvania

Investing more than $3 billion in delivery infrastructure over 5 years

Improving reliability

Creating jobs and boosting area companies

Keeping infrastructure current

Vegetation management

Siting new lines

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Making investment easier

Current Pennsylvania ratemaking method inefficient Could require frequent rate cases

PPL backs new legislative/regulatory proposals to fund infrastructure investment

Assure more timely, certain recovery of new investments

Working with lawmakers

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Smart grid project

Another example of PPL improving its infrastructure

Demonstrating benefits of “smart grid” technology in Harrisburg area Improving operations, strengthening service

reliability, supporting energy savings

Will apply model design to entire grid

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Making our communities better places

Shared commitment to communities in all our areas

PPL donates to agencies, educational institutions

PPL supports economic development agencies

Strong employee and company support for United Way campaign

Employee volunteers give countless hours

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Innovative ways to serve customers

Offering customer service unheard-of 10 years ago Track your usage, bill on website

Price to compare enables shopping

Customer focused energy-saving programs

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The future looks bright

Solid business performance

Smart mix of companies

Innovative services to customers

Focus on strong service

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Questions

Thank you.

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ppl local roots-global reach 0711

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