form8k-exhibit99

form8k-exhibit99_2.htm

Second Quarter Earnings Call
August 5, 2010

Exhibit 99.2

Any statements made in this presentation about future operating
results or other future events are forward-looking statements under
the Safe Harbor Provisions of the Private Securities Litigation Reform
Act of 1995. Actual results may differ materially from such forward-
looking statements. A discussion of factors that could cause actual
results or events to vary is contained in the Appendix to this
presentation and in the Company’s SEC filings.

Cautionary Statements and Factors
That May Affect Future Results

J. H. Miller

P. A. Farr

W. H. Spence

Agenda

Second Quarter 2010 Earnings and 2010

Earnings Forecast and Outlook

Segment Results and Financial Overview

Operational Review

Q&A

Second Quarter

Reported Earnings

Second Quarter

Earnings from Ongoing Operations

Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.

Year-to-Date

Reported Earnings

Year-to-Date

Earnings from Ongoing Operations

Earnings Results

Forecast (1)

$2.02

$3.50

Per Share

$1.95

$3.05

Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.

Forecast (2)

(1) (1) Unadjusted for share dilution

(2) (2) Adjusted for share dilution

$3.10

$2.70

Strong Expected Earnings Growth

$ 0.30

$0.32

$0.62

Total

(0.03)

0.18

0.15

International Delivery

(0.01)

0.05

0.04

Pennsylvania Delivery

$ 0.34

$0.09

$0.43

Supply

Change

2009

2010

Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.

Ongoing Earnings Overview

Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.

	2nd Quarter
2009 EPS - Ongoing Earnings		$0.09
Margins - East	0.34
Margins - West	0.02
O&M	(0.02)
Depreciation	(0.02)
Income Taxes & Other	0.02
Total		0.34
2010 EPS - Ongoing Earnings		$0.43

Supply Segment
Earnings Drivers

Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.

	2nd Quarter
2009 EPS - Ongoing Earnings		$0.05
Delivery Margins	0.02
O&M	(0.02)
Income Taxes & Other	(0.01)
Total		(0.01)
2010 EPS - Ongoing Earnings		$0.04

Pennsylvania Delivery Segment
Earnings Drivers

Note: See Appendix for the reconciliation of earnings from ongoing operations to reported earnings.

	2nd Quarter
2009 EPS - Ongoing Earnings		$0.18
Delivery Revenue	0.03
O&M	(0.02)
Financing Costs	(0.03)
Effect of Exchange Rates	0.01
Income Taxes & Other	(0.02)
Total		(0.03)
2010 EPS - Ongoing Earnings		$0.15

International Delivery Segment
Earnings Drivers

Millions

Note: See Appendix for reconciliation of cash from operations to free cash flow before dividends.

Free Cash Flow before Dividends Forecast

PA and International Delivery Segments
Operational Update

PA Delivery

§ PPLEU completed another solicitation for 2011 to mid-2013
procurement period

– Generation service charge for 2011 could be 9% - 12% lower
than the current rate

§ Susquehanna to Roseland Transmission Line delayed

International Delivery

§ Distribution Price Control 5 (DPCR5) rates went into effect April 1

PPL Electric Utilities Rate Case

Schedule

Surrebuttal Testimony due August 5

Evidentiary Hearings August 9-13

Record Closes August 13

ALJ Recommend Decision expected by middle of October

Commission Order expected by middle of December

Financial Data

§ Seeking $114.7 million distribution rate increase

• Test year is 2010

• Requested ROE of 11.75%

• 2010 Common Equity of 48.4%

• 2010 Distribution Rate Base of $2.245 billion

§ 1% change in ROE = $20 million in revenue

§ Docket # R-2010-2161694

Supply Segment Operational Update

§ Susquehanna Unit 1

– Safely shut down on 7/16

– Significant condenser leak

– Non-nuclear related incident

§ Sold several load-following contracts

– Contracts were for 2010, 2011 and 2012

– Approximately 1,570 MW

– Cash proceeds of $249 million

As of June 30, 2010

*Represents expected sales based on current business plan assumptions

**Represents energy, capacity, congestion and other revenues

	2010	2011	2012
Baseload
Expected Generation* (Million MWhs)	51.2	51.4	55.4
East	42.8	43.1	46.9
West	8.4	8.3	8.5

Current Hedges (%)	99%	97%	61%
East	100%	98%	57%
West	98%	92%	83%

Average Hedged Price (Energy Only) ($/MWh)	$59	$57	$59
East	$60	$58	$60
West	$50	$54	$56

Expected Average Price (Fully Loaded) ($/MWh)	$69	$64	$64
East**	$71	$65	$66
West	$50	$54	$56

% Hedged Through Swaps/Options Energy Transactions	96%	96%	61%
% Hedged Through Load-following Transactions	3%	1%	0%
Intermediate/Peaking
Expected Generation (Million MWhs)	5.5	5.2	5.2
Current Hedges (%)	56%	0%	0%

Supply Segment Asset Hedge Positions

Note: As of June 30, 2010

(1) Weighted Average $/ton at mine for east wholly owned plants; excludes Keystone & Conemaugh

2010 2011 2012

Uranium 100% 100% 100%

Coal

East 100% 98% 93%

West 100% 100% 92%

Total 100% 98% 93%

	2010		2011		2012
	Hedge Level	Price	Hedge Level	Price	Hedge Level	Price
% Fixed Base Price	93%	$49	44%	$51	32%	$64
% Collars	0%	N/A	52%	$48-$53	68%	$44-$52
% Diesel Surcharge	7%	$45	4%	$45	0%	N/A

Eastern Coal Contracts (1)

Current Fuel Contracts - Base Prices

ppl

A-1

(1)	Market prices based on the average of broker quotes as of 6/30/2010
(2)	24-hour average
(3)	NYMEX and TZ6NNY forward gas prices on 6/30/2010
(4)	Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price

Market Prices

Market Prices ELECTRIC PJM On-Peak Off-Peak ATC(2) Mid-Columbia On-Peak Off-Peak ATC(2) GAS(3) NYMEX TZ6NNY PJM MARKET HEAT RATE(4) CAPACITY PRICES (Per MWD) EQA Actual 2009 Jul Dec 2010 2011 2012 $44 $54 $53 $54 $31 $38 $39 $40 $38 $46 $46 $47 $36 $43 $44 $48 $29 $35 $36 $38 $33 $40 $40 $44 $3.92 $4.82 $5.34 $5.68 $4.63 $5.28 $5.93 $6.17 9.5 10.2 8.9 8.8 $158.24 $181.39 $136.79 $123.63 88.5% 91.5% 89.4% 90.9% Forward(1) (1) Market prices based on the average of broker quotes as of 6/30/2010 (2) 24-hour average (3) NYMEX and TZ6NNY forward gas prices on 6/30/2010 (4) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price © PPL Corporation 2010 A-1

Millions

$1,675

$1,826

$1,796

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Capital Expenditures by Segment

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August 11, 2009 July 19, 2011

October 20, 2009 October 18, 2011

January 19, 2010 January 9, 2012

April 20, 2010 April 3, 2012

July 20, 2010 July 17, 2012

October 19, 2010 October 16, 2012

April 18, 2011 January 22, 2013

Completed

PPL Electric Utilities 2011 to mid-2013
Procurement Plan Schedule

§ Due dates for bids:

$/Share

Annualized

Dividend Profile

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Note: As of June 30, 2010

(1) Bonds defeased in substance in 2008 by depositing sufficient funds with the trustee

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Debt Maturities

Debt Maturities (Millions) 2010 2011 2012 2013 2014 PPL Energy Supply $0 $500 $0 $737 $300 PPL Capital Funding 0 0 0 0 0 PPL Electric Utilities 0 0 0 400 10 (1) WPD Group 0 0 0 0 0 Total $0 $500 $0 $1,137 $310 Note: As of June 30, 2010 (1) Bonds defeased in substance in 2008 by depositing sufficient funds with the trustee © PPL Corporation 2010 A-5

(1) Reported as of June 30, 2010

Domestic facilities consist of a diverse bank group, with no bank and its
affiliates providing an aggregate commitment of more than 15% of the total
committed capacity.

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Liquidity Profile

Liquidity Profile Total Letters of Credit Expiration Facility Outstanding (1) Drawn (1) Availability Institution Facility Date (Millions) (Millions) (Millions) (Millions) PPL Energy Supply 5-year Credit Facility Jun-2012 $3,225 $245 $285 $2,695 3-Year Bilateral Credit Facility Mar-2013 200 4 0 196 5-year Structured Credit Facility Mar-2011 300 280 0 20 364-day Credit Facility Sep-2010 400 0 0 400 $4,125 $529 $285 $3,311 PPL Electric Utilities 5-year Credit Facility May-2012 $190 $13 $0 $177 Asset-backed Credit Facility Jul-2010 150 0 0 150 $340 $13 $0 $327 WPD 3-year Credit Facility Jul-2012 £210 £0 £0 £210 5-year Credit Facility Jan-2013 150 0 123 27 Uncommitted Credit Facilities 63 3 0 60 £423 £3 £123 £297 Domestic facilities consist of a diverse bank group, with no bank and its affiliates providing an aggregate commitment of more than 15% of the total committed capacity. (1) Reported as of June 30, 2010 © PPL Corporation 2010 A-6

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	2009	2010
Cash from Operations	$1,310	$1,255
Increase/(Decrease) in cash due to:
Capital Expenditures	(720)	(952)
Investment in Energy Project
Asset Sales (1) (2)	84	152
Sale of Load-Following Deals		249
Other Investing Activities - Net	(75)	(24)
Free Cash Flow before Dividends	$599	$680

(1) 2009 includes sale of Wyman and initial payment for the Maine hydro assets from ArcLight

(2) 2010 includes February 2010 sale of the Long Island generating assets, contingent payment on the pending sale of the
remaining Maine hydro assets from ArcLight, and completion of the pending sale of the remaining Maine hydro assets to the
Penobscot Trust

(Millions)

Actual Projected

Supply Segment Reconciliation of Cash from Operations
to Free Cash Flow before Dividends

A-8

	2009	2010
Cash from Operations	$294	$177
Less Transition Bond Repayment
Increase/(Decrease) in cash due to:
Capital Expenditures	(298)	(403)
Asset Sales & Other	3	2
Free Cash Flow before Dividends	($1)	($224)

(Millions)

Actual Projected

PA Delivery Segment Reconciliation of Cash from
Operations to Free Cash Flow before Dividends

A-9

	2009	2010
Cash from Operations	$248	$146
Increase/(Decrease) in cash due to:
Capital Expenditures Other Investing Activities - Net	(247) 1	(320) 1
Free Cash Flow before Dividends	$2	($173)

(Millions)

Actual Projected

International Delivery Segment Reconciliation of Cash
from Operations to Free Cash Flow before Dividends

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(Millions)

Reconciliation of Second Quarter Earnings from
Ongoing Operations to Reported Earnings

Reconciliation of Second Quarter Earnings from Ongoing Operations to Reported Earnings Quarter Ending June 30, 2010 Earnings from Ongoing Operations Special Items: Energy-related economic activity Foreign currency-related economic hedges unrealized impacts Sales of assets: Sundance indemnification Impairments: Impacts from emission allowances Pending E.ON U.S. acquisition-related costs: Monetization of certain full-requirement sales contracts Deferred Bridge Facility financing costs Other pending acquisition-related costs Other: Montana hydroelectric litigation Total Special Items Reported Earnings* Quarter Ending June 30, 2009 Earnings from Ongoing Operations Special Items: Energy-related economic activity Foreign currency-related economic hedges unrealized impacts Sales of assets: Long Island generation business Impairments: Adjustments - NDT investments Total Special Items Reported Earnings* Change in Earnings from Ongoing Operations * Represents net income attributable to PPL Corporation. (Millions) Pennsylvania Supply Delivery International Delivery Unallocated Costs Total 164 $ 16 $ 59 $ -$ $ 239 (54) (54) (1) (1) 1 1 (5) (5) (75) (13) (6) (75) (13) (6) (1) (134) - 30 $ 16 $ (1) 58 $ (19) (19) $ $ (1) (154) 85 34$ 17 $ 68 $ -$ $ 119 (88) (88) (6) (6) (34) (34) 2 (120) - (86) $ 17 $ (6) 62 $ $ - -$ 2 (126) (7) $ 130 $ (1) $ (9) -$ $ 120 © PPL Corporation 2010 A-10

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(Dollars Per Share)

Reconciliation of Second Quarter Earnings from
Ongoing Operations to Reported Earnings

Reconciliation of Second Quarter Earnings from Ongoing Operations to Reported Earnings (Dollars Per Share) Quarter Ending June 30, 2010 Earnings from Ongoing Operations Special Items: Energy-related economic activity Impairments: Impacts from emission allowances Pending E.ON U.S. acquisition-related costs: Monetization of certain full-requirement sales contracts Deferred Bridge Facility financing costs Other pending acquisition-related costs Total Special Items Reported Earnings* Pennsylvania Supply Delivery 0.43 $ 0.04 $ (0.14) (0.01) (0.20) (0.35) - 0.08 $ 0.04 $ International Delivery 0.15 $ - 0.15 $ Unallocated Costs -$ (0.03) (0.02) (0.05) (0.05) $ $ $ Total 0.62 (0.14) (0.01) (0.20) (0.03) (0.02) (0.40) 0.22 Quarter Ending June 30, 2009 Earnings from Ongoing Operations Special Items: Energy-related economic activity Foreign currency-related economic hedges unrealized impacts Sales of assets: 0.09 $ 0.05 $ (0.23) 0.18 $ (0.02) -$ $ 0.32 (0.23) (0.02) Long Island generation business Total Special Items Reported Earnings* (0.09) (0.32) - (0.23) $ 0.05 $ (0.02) 0.16 $ $ - -$ (0.09) (0.34) (0.02) Change in Earnings from Ongoing Operations $ 0.34 $ (0.01) $ (0.03) -$ $ 0.30 * Represents net income attributable to PPL Corporation. © PPL Corporation 2010 A-11

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(Millions)

Reconciliation of Year-to-Date Earnings from Ongoing
Operations to Reported Earnings

Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings Year-to-Date June 30, 2010 Earnings from Ongoing Operations Special Items: Energy-related economic activity Foreign currency-related economic hedges unrealized impacts Sales of assets: Sundance indemnification Impairments: Impacts from emission allowances Pending E.ON U.S. acquisition-related costs: Monetization of certain full-requirement sales contracts Deferred Bridge Facility financing costs Other pending acquisition-related costs Other: Montana hydroelectric litigation Health Care Reform - tax impact Total Special Items Reported Earnings* (Millions) Pennsylvania Supply Delivery 408 $ 53 $ (119) 1 (7) (75) (33) (8) (241) - 167 $ 53 $ International Delivery 135 $ (1) (1) 134 $ Unallocated Costs -$ (13) (6) (19) (19) $ $ $ Total 596 (119) (1) 1 (7) (75) (13) (6) (33) (8) (261) 335 Year-to-Date June 30, 2009 Earnings from Ongoing Operations Special Items: Energy-related economic activity Foreign currency-related economic hedges unrealized impacts Sales of assets: Long Island generation business Impairments: Impacts from emission allowances Adjustments - NDT investments Other asset impairments Workforce reduction Total Special Items Reported Earnings* 115 $ 72 $ (38) (34) (15) (1) (2) (1) (6) (5) (96) (6) 19 $ 66 $ 158 $ (6) (1) (2) (9) 149 $ -$ - -$ $ $ 345 (38) (6) (34) (15) (1) (4) (13) (111) 234 Change in Earnings from Ongoing Operations $ 293 $ (19) $ (23) -$ $ 251 * Represents net income attributable to PPL Corporation. © PPL Corporation 2010 A-12

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(Dollars Per Share)

Reconciliation of Year-to-Date Earnings from Ongoing
Operations to Reported Earnings

Reconciliation of Year-to-Date Earnings from Ongoing Operations to Reported Earnings Year-to-Date June 30, 2010 Earnings from Ongoing Operations Special Items: Energy-related economic activity Impairments: Impacts from emission allowances Pending E.ON U.S. acquisition-related costs: Monetization of certain full-requirement sales contracts Deferred Bridge Facility financing costs Other pending acquisition-related costs Other: Montana hydroelectric litigation Health Care Reform - tax impact Total Special Items Reported Earnings* Year-to-Date June 30, 2009 Earnings from Ongoing Operations Special Items: Energy-related economic activity Foreign currency-related economic hedges unrealized impacts Sales of assets: Long Island generation business Impairments: Impacts from emission allowances Other asset impairments Workforce reduction Total Special Items Reported Earnings* Change in Earnings from Ongoing Operations * Represents net income attributable to PPL Corporation. (Dollars Per Share) Pennsylvania Supply Delivery International Delivery Unallocated Costs Total 1.07 $ 0.14 $ 0.35 $ -$ $ 1.56 (0.30) (0.30) (0.02) (0.02) (0.20) (0.03) (0.02) (0.20) (0.03) (0.02) (0.09) (0.02) (0.63) - 0.44 $ 0.14 $ - 0.35 $ (0.05) (0.05) $ $ (0.09) (0.02) (0.68) 0.88 0.30 $ 0.19 $ 0.42 $ -$ $ 0.91 (0.10) (0.10) (0.02) (0.02) (0.09) (0.09) (0.04) (0.01) (0.01) (0.01) (0.25) (0.01) 0.05 $ 0.18 $ (0.01) (0.03) 0.39 $ - -$ $ (0.04) (0.01) (0.03) (0.29) 0.62 $ 0.77 $ (0.05) $ (0.07) -$ $ 0.65 © PPL Corporation 2010 A-13

A-14

Reconciliation of PPL’s Earnings from Ongoing
Operations to Reported Earnings

Reconciliation of PPL’s Earnings from Ongoing Operations to Reported Earnings Forecast [a] Actual High Low 2010 2010 2009 2008 Earnings from Ongoing Operations per share of common stock 3.05 $ 2.70 $ $ 1.95 $ 2.02 Special Items: Energy-related economic activity (0.27) (0.27) (0.59) 0.67 Sales of assets: Long Island generation business (0.09) Latin American businesses (0.07) Interest in Wyman Unit 4 (0.01) Gas and propane businesses (0.01) Majority of Maine hydroelectric generation business 0.06 Impairments: Impacts from emission allowances (0.02) (0.02) (0.05) (0.07) Adjustments - NDT investments (0.04) Holtwood hydroelectric plant (0.03) Other asset impairments (0.01) (0.01) Pending E.ON U.S. acquisition-related costs: Monetization of certain full-requirement sales contracts (0.17) (0.17) Deferred Bridge Facility financing costs (0.03) (0.03) Other pending acquisition-related costs (0.01) (0.01) Workforce reductions (0.03) (0.01) Other: Montana hydroelectric litigation (0.08) (0.08) (0.01) Health Care Reform - tax impact (0.02) (0.02) Change in tax accounting method related to repairs (0.07) Synfuel tax adjustment (0.04) Montana basin seepage litigation (0.01) Total Special Items (0.60) (0.60) (0.87) 0.45 Reported Earnings per share of common stock 2.45 $ 2.10 $ $ 1.08 $ 2.47 Note: Per share amounts are based on diluted shares outstanding. [a] 2010 forecast amounts reflect the dilution associated with the June 2010 offering of common stock. © PPL Corporation 2010 A-14

(a) See additional information on the following slide.

A-15

(Millions of Dollars)

Reconciliation of Second Quarter Operating
Income to Domestic Gross Energy Margins

Reconciliation of Second Quarter Operating Income to Domestic Gross Energy Margins (Millions of Dollars) Three Months Ended June 30, Eastern U.S., pre-tax Western U.S., pre-tax Domestic gross energy margins, pre-tax $ $ 2010 533 88621 $ $ 2009 312 77 389Change $ 221 11 $ 232 Per Share Diluted (after-tax) 0.34 $ 0.02 0.36 $ (a) See additional information on the following slide. Operating Income Adjustments: Utility Energy-related businesses, net Other operation and maintenance Amortization of recoverable transition costs Depreciation Taxes, other than income Revenue adjustments (a) Expense adjustments (a) Domestic gross energy margins2010 2009 $ 238 $ 104 (692) (881) (10) (7) 423 354 70 130 114 54 67 719 530 (241) 38 $ 621 $ 389 Three Months Ended June 30, © PPL Corporation 2010 A-15

A-16

(Millions of Dollars)

Reconciliation of Second Quarter Operating
Income to Domestic Gross Energy Margins

Reconciliation of Second Quarter Operating Income to Domestic Gross Energy Margins (Millions of Dollars) Three Months Ended June 30, 2010 2009 Revenue adjustments Impact from energy-related economic activity $ 656 $ 111 PLR revenue from energy supplied to PPL Electric by PPL EnergyPlus 64 411 Gains (losses) from sale of RECs (1) 1 Revenues from Supply segment discontinued operations - 7 Total revenue adjustments $ 719 $ 530 Expense adjustments Impact from energy-related economic activity $ 436 $ (39) External PLR energy purchases (209) (11) Other 14 12 Total expense adjustments $ 241 $ (38) © PPL Corporation 2010 A-16

(a) See additional information on the following slide.

A-17

Reconciliation of Second Quarter Operating
Income to Domestic Gross Delivery Margins

Reconciliation of Second Quarter Operating Income to Domestic Gross Delivery Margins (Millions of Dollars) Three Months Ended June 30, Domestic gross delivery margins, pre-tax $ 2010 199 $ 2009 185 Change $ 14 Per Share Diluted (after-tax) 0.02 $ 2010 2009 Three Months Ended June 30, Operating Income Adjustments: Unregulated retail electric and gas Wholesale energy marketing Net energy trading margins Energy-related businesses, net Fuel Energy purchases Other operation and maintenance Depreciation Taxes, other than income Revenue adjustments (a) Expense adjustments (a) Domestic gross delivery margins $ $ 238 (101) (595) (5) (10) 263 295 423 130 54 (236) (257) 199 $ $ 104 (32) (646) (7) (7) 186 678 354 114 67 (566) (60) 185 (a) See additional information on the following slide. © PPL Corporation 2010 A-17

A-18

(Millions of Dollars)

Reconciliation of Second Quarter Operating
Income to Domestic Gross Delivery Margins

Reconciliation of Second Quarter Operating Income to Domestic Gross Delivery Margins (Millions of Dollars) Three Months Ended June 30, 2010 2009 Revenue adjustments WPD utility revenue $ (172) $ (155) PLR revenue from energy supplied to PPL Electric by PPL EnergyPlus (64) (411) Total revenue adjustments $ (236) $ (566) Expense adjustments External PLR energy purchases $ 209 $ 11 Gross receipts tax 27 44 Act 129 19 Other 2 5 Total expense adjustments $ 257 $ 60 © PPL Corporation 2010 A-18

A-19

Statements contained in this press release, including statements with respect to future events and their timing, including statements
concerning the acquisition by PPL Corporation of E.ON U.S. LLC and its subsidiaries Louisville Gas and Electric Company and
Kentucky Utilities Company (collectively, the “E.ON Entities”), the expected results of operations of any of the E.ON Entities or PPL
Corporation both before or following PPL Corporation’s acquisition of the E.ON Entities, as well as statements as to future earnings,
energy prices, margins and sales, growth, revenues, expenses, cash flow, credit profile, ratings, financing, asset disposition, marketing
performance, hedging, regulation, corporate strategy and generating capacity and performance, 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 expectations, assumptions and 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: capital market conditions and
decisions regarding capital structure; 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; stock
price performance; receipt of necessary government permits, approvals, rate relief and regulatory cost recovery; 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, the E.ON Entities and
either of their subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating
performance of plants and other facilities; 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 acquisitions and dispositions; any impact of hurricanes
or other severe weather on our business, including any impact on fuel prices; the impact of state, federal or foreign investigations
applicable to PPL Corporation, the E.ON Entities and either of their subsidiaries; the outcome of litigation against PPL Corporation, the
E.ON Entities and either of their subsidiaries; political, regulatory or economic conditions in states, regions or countries where PPL
Corporation, the E.ON Entities and either of their 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 or environmental
legislation or regulation; and the commitments and liabilities of PPL Corporation, the E.ON Entities and each of their 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.

Forward-Looking Information Statement

A-20

“Earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL,
which is an indicator of operating performance determined in accordance with 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 them with management’s view of PPL’s fundamental earnings performance as another criterion in making their
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:

• Energy-related economic activity (as discussed below).

• Foreign currency-related economic hedges.

• Gains and losses on sales of assets not in the ordinary course of business.

• Impairment charges (including impairments of securities in the company’s nuclear decommissioning trust funds).

• Workforce reduction and other restructuring impacts.

• Costs related to the pending E.ON U.S. acquisition, including gains or losses associated with the sale of certain full-requirement
sales contracts in support of raising cash for the acquisition.

• Other charges or credits that are, in management’s view, not reflective of the company’s ongoing operations.

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 generation assets, load-following 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). Also included in this special item is the ineffective portion of
qualifying cash flow hedges and the premium amortization associated with options classified as economic activity. These items are
included in ongoing earnings 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 energy-related economic activity.

“Free cash flow before dividends” is derived by deducting capital expenditures and other investing activities-net, from cash flow from
operations. Free cash flow before dividends should not be considered as an alternative to cash flow from operations, which is determined
in accordance with GAAP. PPL believes that free cash flow before dividends, although a non-GAAP measure, is an important measure to
both management and investors since it is an indicator of the company’s ability to sustain operations and growth without additional outside
financing beyond the requirement to fund maturing debt obligations. Other companies may calculate free cash flow before dividends in a
different manner.

Definitions of Non-GAAP Financial Measures

A-21

"Domestic Gross Energy Margins" and "Domestic Gross Delivery Margins" are not intended to replace "Operating Income," which is
determined in accordance with GAAP, as an indicator of overall operating performance.

•"Domestic Gross Energy Margins" is a single financial performance measure of PPL's domestic energy non-trading and trading
activities. In calculating this measure, the Supply segment's energy revenues are offset by the cost of fuel and energy purchases, and
adjusted for other related items. This performance measure excludes utility revenues and includes PLR revenues from energy sales to
PPL Electric by PPL EnergyPlus. In addition, PPL excludes from "Domestic Gross Energy Margins" energy-related economic activity,
which includes the changes in fair value of positions used to economically hedge a portion of the economic value of PPL's generation
assets, full-requirement 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 this energy-related
economic activity is the ineffective portion of qualifying cash flow hedges, losses on the monetization of certain full-requirement sales
contracts and premium amortization associated with options. This economic activity is deferred, with the exception of the full-
requirement sales contracts monetized, and included in domestic gross energy margins earnings over the delivery period that was
hedged or upon realization. PPL believes that "Domestic Gross Energy Margins" provides another criterion to make investment
decisions. This performance measure is used, in conjunction with other information, internally by senior management and the Board of
Directors to manage its domestic energy non-trading and trading activities. PPL's management also uses "Domestic Gross Energy
Margins" in measuring certain corporate performance goals used in determining variable compensation. Other companies may use
different measures to present the results of their energy non-trading and trading activities.

•"Domestic Gross Delivery Margins" is a single financial performance measure of PPL's domestic regulated electric delivery operations,
which includes transmission and distribution activities, including PLR supply. In calculating this measure, domestic regulated utility
revenues and expenses associated with approved recovery mechanisms, including energy provided as a PLR, are offset. These
mechanisms allow for full cost recovery of certain expenses; therefore certain expenses and revenues offset with minimal impact on
earnings. As a result, this measure represents the net revenues from PPL's domestic regulated electric delivery operations. This
performance measure is used, in conjunction with other information, internally by senior management and the Board of Directors to
manage its domestic regulated electric delivery operations. PPL believes that "Domestic Gross Delivery Margins" provides another
criterion to make investment decisions. Other companies may use different measures to present the results of their regulated electric
delivery operations.

Definitions of Non-GAAP Financial Measures
(continued)