8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event reported):  August 2, 2007

Commission File Number	Registrant; State of Incorporation; Address and Telephone Number	IRS Employer Identification No.
1-11459	PPL Corporation (Exact name of Registrant as specified in its charter) (Pennsylvania) Two North Ninth Street Allentown, PA  18101-1179 (610) 774-5151	23-2758192

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition

On August 2, 2007, PPL Corporation (“PPL”) issued a press release announcing its financial results for the quarter ended June 30, 2007 and other business matters. A copy of the press release is attached as Exhibit 99.1 and is incorporated herein by reference.

Section 7 - Regulation FD

Item 7.01 Regulation FD Disclosure

On August 2, 2007, at 9:00 a.m. (Eastern Standard Time), members of PPL's senior management will hold a teleconference and webcast with financial analysts to discuss PPL’s financial results for the quarter ended June 30, 2007, and other business matters. A copy of the slides to be used during the webcast is attached as Exhibit 99.2 and is incorporated herein by reference. The event will be available live, in audio format, along with the slides, on PPL’s Internet Web site: www.pplweb.com. The webcast will be available for replay on PPL’s Web site for 30 days.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d)	Exhibits
	99.1 -	Press Release, dated August 2, 2007, announcing PPL’s financial results for the quarter ended June 30, 2007, and other business matters.
	99.2 -	Slides to be used on the August 2, 2007 webcast among members of PPL’s senior management and financial analysts.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PPL CORPORATION
By:	/s/ J. Matt Simmons, Jr.
	J. Matt Simmons, Jr. Vice President and Controller

Dated:   August 2, 2007

EX-99

Exhibit 99.1

www.pplnewsroom.com

Contacts:         For news media – George Biechler, 610-774-5997

For financial analysts – Tim Paukovits, 610-774-4124

PPL Corporation Reports Strong Quarterly Earnings,

Increases 2007 Earnings Forecast

·   Quarterly reported earnings per share up 87 percent primarily on successful sale of El Salvadoran business

·   Quarterly ongoing earnings per share up 19 percent on international segment tax benefit, higher energy supply margins and improved energy marketing results

ALLENTOWN, Pa. (Aug. 2, 2007) ― PPL Corporation (NYSE: PPL) on Thursday (8/2) reported second-quarter earnings of $0.88 per share, 87 percent higher than the $0.47 per share earned in the second quarter a year ago.

Driving this strong performance was a gain on the successful sale of PPL’s El Salvadoran business, a U.S. income tax benefit associated with PPL’s international delivery business segment, higher realized wholesale energy margins in PPL’s supply business and increased profitability in the company’s energy marketing operations.

Excluding special items, PPL’s earnings per share from ongoing operations for the second quarter increased by 19 percent to $0.63 per share compared with $0.53 per share in the same period of 2006.

For the first six months of 2007, PPL’s reported earnings increased by 18 percent per share compared with a year ago. Earnings from ongoing operations for the first six months of 2007 increased by 6 percent per share compared with a year ago.

“We are pleased with PPL’s solid results so far this year, which have benefited from higher wholesale energy prices, improving operational performance at our power plants, and our expanding energy marketing operations,” said James H. Miller, PPL’s chairman, president and chief executive officer. “We are growing shareowner value by further improving our outstanding generation, marketing and delivery assets as we pursue growth opportunities.”

Miller said the company is continuing to sharpen the focus on its core businesses by selling non-strategic assets. In late July, PPL announced that it is pursuing the sale of its natural gas and propane delivery operations. Earlier this year, the company completed the sales of its electricity delivery businesses in El Salvador and Bolivia and reached a definitive agreement to sell its telecommunications operations. PPL expects to complete the sale of its telecommunications operations and Chilean electricity delivery business in 2007 and its natural gas and propane delivery operations in 2008.

Miller said PPL is raising its existing 2007 forecast of earnings from ongoing operations from $2.30 to $2.40 per share to $2.40 to $2.50 per share, driven in part by a U.S. income tax benefit of $0.08 per share associated with the company’s international delivery business segment. Besides this tax benefit, which will not likely recur at similar levels in future periods, he said PPL looks to strong earnings growth in the second half of 2007 from the replacement of expiring supply obligations with higher-margin wholesale energy contracts and increased energy marketing profitability that includes new full-requirements contracts in the mid-Atlantic region.

Miller said PPL’s 2007 forecast of earnings from ongoing operations includes the operating results of PPL’s Latin American businesses but excludes special items related to the divestiture process. The company also has increased its 2007 forecast of reported earnings from $2.43 to $2.53 per share to $2.53 to $2.63 per share, which reflects special items recorded through June 30, 2007.

PPL’s revised 2007 earnings forecast excludes an estimated $0.13 to $0.15 per share U.K. income tax benefit expected to be recorded in the third quarter of 2007. This benefit results from a recent decrease in the U.K. statutory income tax rate from 30 percent to 28 percent, effective for fiscal tax years beginning on April 1, 2008, which will  reduce PPL’s deferred tax liabilities.

Second-Quarter Reported and Ongoing Earnings Details

PPL’s reported earnings in the most recent quarter included special item credits of $0.25 per share, consisting of $0.21 per share primarily from the sale of PPL’s El Salvadoran electricity delivery business and unrealized gains of $0.04 per share related to the mark-to-market impact of energy-related, non-trading economic hedges. The second quarter of 2006 reflected special items of $0.06 per share in net charges.

Excluding these special items, PPL’s earnings from ongoing operations for the second quarter of 2007 were $0.63 per share, a 19 percent increase compared with $0.53 per share in earnings from ongoing operations a year ago. This increase was primarily due to an $0.08 per share U.S. income tax benefit associated with PPL’s international delivery business segment and higher wholesale energy margins driven by higher wholesale prices compared with a year ago, as well as increased margins from new full-requirements contracts.

Reported earnings are calculated in accordance with generally accepted accounting principles (GAAP). Earnings from ongoing operations is a non-GAAP financial measure that excludes special items. Special items include charges or credits that are unusual or non-recurring as well as the mark-to-market impact of energy-related, non-trading economic hedges.

(Dollars in millions, except for per share amounts)

	2nd Quarter
	2007	2006	% Change
Reported Earnings	$345	$181	+91%
Reported Earnings per Share	$0.88	$0.47	+87%
Earnings from Ongoing Operations	$248	$205	+21%
Per Share Earnings from Ongoing Operations	$0.63	$0.53	+19%

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

First-Half Reported and Ongoing Earnings Details

For the first six months of 2007, PPL’s reported earnings were $1.41 per share, an 18 percent increase from $1.19 per share in the same period of 2006. These reported earnings included special items of $0.13 per share in net credits, consisting of an $0.11 net credit from the sale of PPL’s Latin American assets; unrealized gains of $0.07 related to the mark-to-market impact of energy-related, non-trading economic hedges; and a charge of $0.05 for the previously announced sale of the company’s telecommunication operations.  The same period of 2006 reflected special items of $0.02 per share in net charges.

Excluding special items, PPL’s earnings from ongoing operations for the first six months of 2007 were $1.28 per share, a 6 percent increase from $1.21 a year ago. This increase was primarily due to an $0.08 per share U.S. income tax benefit associated with PPL’s international delivery business segment.

Second-Quarter and First-Half Earnings by Business Segment

	2nd Quarter					Year to Date
	2007		2006			2007		2006
Per share earnings from ongoing operations
Supply	$	0.30	$	0.25		$	0.62	$	0.58
Pennsylvania Delivery		0.07		0.08			0.23		0.22
International Delivery		0.26		0.20			0.43		0.41
Total	$	0.63	$	0.53		$	1.28	$	1.21
Special Items
Supply	$	0.04	$	(0.06	)	$	0.02	$	(0.02	)
Pennsylvania Delivery		-		-			-		-
International Delivery		0.21		-			0.11		-
Total	$	0.25	$	(0.06	)	$	0.13	$	(0.02	)
Reported earnings
Supply	$	0.34	$	0.19		$	0.64	$	0.56
Pennsylvania Delivery		0.07		0.08			0.23		0.22
International Delivery		0.47		0.20			0.54		0.41
Total	$	0.88	$	0.47		$	1.41	$	1.19

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

Key Earnings Factors by Business Segment

Supply Segment

PPL’s supply business segment primarily consists of the domestic energy generation and marketing operations of PPL Energy Supply.

Per share earnings from ongoing operations for PPL’s supply business segment in the second quarter of 2007 increased by 20 percent compared with a year ago. This increase primarily resulted from higher wholesale energy margins due to higher wholesale prices, increased energy marketing profitability and higher total margins from new and existing full-requirements supply contracts. Partially offsetting these higher margins were increased operation and maintenance costs related to planned nuclear and coal-fired power plant outages in the Eastern U.S.

Per share earnings from ongoing operations for PPL’s supply business segment during the first six months of 2007 increased by about 7 percent compared with a year ago. This increase was primarily due to the same factors as in the second quarter of 2007 as well as higher synfuel income. Partially offsetting these increases were higher operation and maintenance costs related to planned nuclear and coal-fired power plant outages in the Eastern U.S.

Pennsylvania Delivery Segment

PPL’s Pennsylvania delivery business segment includes the regulated electric and gas delivery operations of PPL Electric Utilities and PPL Gas Utilities.

Per share earnings from ongoing operations for PPL’s Pennsylvania delivery business segment in the second quarter of 2007 declined by about 13 percent compared with a year ago. Increased sales to residential and commercial electricity customers were more than offset by higher operation and maintenance costs and higher depreciation compared with a year ago.

Per share earnings from ongoing operations for PPL’s Pennsylvania delivery business segment during the first six months of 2007 increased by about 5 percent compared with a year ago. This increase was primarily due to increased sales to residential and commercial electricity customers, partially offset by higher operation and maintenance costs and higher depreciation compared with a year ago.

International Delivery Segment

The quarterly and six-month results for PPL’s international delivery business segment include regulated electric distribution companies in the United Kingdom and Latin America.

Per share earnings from ongoing operations for PPL’s international delivery business segment in the second quarter of 2007 increased by 30 percent compared with a year ago. This increase was primarily due to a U.S. income tax benefit of $0.08 per share, which will not likely recur at similar levels in future periods. Other positive earnings factors were a favorable currency exchange rate in the U.K. and higher earnings in the electricity delivery businesses in Chile compared with a year ago. These favorable results were partially offset by higher operation and maintenance expenses in the U.K. In addition, last year’s second-quarter results benefited from higher income recognized from the ongoing liquidation of certain non-core businesses in the U.K.

Per share earnings from ongoing operations for PPL’s international delivery business segment during the first six months of 2007 increased by about 5 percent compared with a year ago. This increase was primarily due to the same factors as in the second quarter of 2007, partially offset by lower electricity sales and higher local taxes in the U.K.

Long-Term Outlook

Because the provider-of-last-resort (POLR) contract between PPL EnergyPlus and PPL Electric Utilities expires at the end of 2009, PPL Electric Utilities will be required to purchase energy supply in 2010 for default supply for those residential and small commercial and industrial customers who do not shop in the competitive market. Those purchases will be made through six competitive solicitations during 2007 to 2009 in accordance with a plan approved by the PUC in May 2007.

In late July 2007, the PUC approved PPL Electric Utilities’ purchase of one-sixth of the electricity it expects to need in 2010 for default supply customers. The next competitive solicitation is scheduled to begin Aug. 27, with bids due Oct. 1 and PUC approval Oct. 4.

Miller said that the company expects to provide definitive guidance for 2008 and to revise its current 2010 earnings forecast of $3.50 per share later in 2007.  The 2010 revised forecast will incorporate the positive drivers of increases in market prices for energy and capacity since that forecast was developed in late 2005. He also said the company will be evaluating the market information provided by the capacity auctions of the PJM Interconnection, specifically the one scheduled for October, which will establish a value for capacity within PJM for a portion of 2010. This market information, as well as other factors, will assist PPL in developing an updated long-term earnings forecast.

Credit and Cash Flow Profiles

Miller said that the company’s improving credit profile, coupled with the sale of its Latin American assets and of its telecommunication operations, positions PPL to follow through on its previously announced program to repurchase up to $750 million of common stock. He said that as of July 31, 2007, about 3.6 million shares of PPL’s common stock already had been repurchased. He also said the company’s current business plan reflects additional common stock repurchases beginning in 2009, assuming the absence of other opportunities to enhance shareowner value at that time through business growth investments. “PPL’s improving credit and cash flow profiles provide a strong base for future investment,” Miller said.

Dividend Growth Rate

Miller said PPL expects that the growth rate of its common stock dividend in 2008 and 2009 will continue to exceed the growth rate in the company’s per share earnings from ongoing operations. The company increased the annualized dividend rate on its common stock from $1.10 to $1.22 per share, effective with the April 1, 2007 dividend payment. The current annual dividend rate equates to a 50 percent payout ratio based on the midpoint of the company’s revised 2007 forecast of earnings from ongoing operations. PPL expects its dividend payout ratio will be above 50 percent in 2008 and 2009.

PPL Corporation, headquartered in Allentown, Pa., controls more than 11,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to more than 4 million customers in Pennsylvania, the United Kingdom and Chile. More information is available at www.pplweb.com.

###

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

Conference Call and Webcast

PPL invites interested parties to listen to the live Webcast of management’s teleconference with financial analysts about second-quarter 2007 financial results at 9 a.m. EDT Thursday, Aug. 2. The meeting is available online live, in audio format, along with slides of the presentation, on PPL’s Web site: www.pplweb.com. The Webcast will be available for replay on the PPL Web site for 30 days. Interested individuals also can access the live conference call via telephone at 719-457-2681.

PPL CORPORATION AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED FINANCIAL INFORMATION (a)

Condensed Consolidated Balance Sheet (Unaudited)

(Millions of Dollars)

	June 30, 2007			Dec. 31, 2006
Assets
Cash and cash equivalents	$	567		$	794
Assets held for sale		730			0
Other current assets		2,782			2,836
Investments		595			564
Property, plant and equipment
Electric plant		19,268			19,395
Gas and oil plant		379			373
Other property		192			311
		19,839			20,079
Less: accumulated depreciation		7,857			8,010
		11,982			12,069
Recoverable transition costs		732			884
Goodwill and other acquired intangibles		1,327			1,521
Regulatory and other noncurrent assets		1,291			1,079
Total assets	$	20,006		$	19,747
Liabilities and Equity
Short-term debt (including current portion of long-term debt)	$	839		$	1,149
Liabilities held for sale and related minority interest		377			0
Other current liabilities		1,824			2,199
Long-term debt (less current portion)		6,841			6,728
Deferred income taxes and investment tax credits		2,137			2,331
Other noncurrent liabilities		2,292			1,857
Minority interest		26			60
Preferred securities of a subsidiary		301			301
Earnings reinvested		2,937			2,626
Common stock and capital in excess of par value		2,787			2,814
Accumulated other comprehensive loss		(355	)		(318	)
Total liabilities and equity	$	20,006		$	19,747

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

Condensed Consolidated Income Statement (Unaudited)

(Millions of Dollars, Except per Share Data)

			3 Months Ended June 30,					6 Months Ended June 30,
			2007(a)		2006(a)(b)			2007(a)		2006(a)(b)
Operating Revenues
	Utility		$	1,021	$	946		$	2,196	$	2,058
	Unregulated retail electric			23		20			45		45
	Wholesale energy marketing			379		383			628		718
	Net energy trading margins			6		1			13		11
	Energy-related businesses			184		154			369		322
				1,613		1,504			3,251		3,154
Operating Expenses
	Fuel and energy purchases			420		443			839		907
	Other operation and maintenance			359		326			695		637
	Amortization of recoverable transition costs			70		63			151		135
	Depreciation			112		104			230		206
	Taxes, other than income			71		69			150		139
	Energy-related businesses			201		140			403		298
				1,233		1,145			2,468		2,322
Operating Income				380		359			783		832
Other Income – net				22		30			48		38
Interest Expense				121		114			242		228
Income from Continuing Operations Before
	Income Taxes, Minority Interest and
	Dividends on Preferred Securities of a Subsidiary			281		275			589		642
Income Taxes				33		80			107		175
Minority Interest				0		1			1		1
Dividends on Preferred Securities of a Subsidiary				4		4			9		5
Income from Continuing Operations				244		190			472		461
		Income (Loss) from Discontinued Operations
		(net of income taxes)		101		(9	)		76		0
Net Income			$	345	$	181		$	548	$	461
Earnings per share of common stock – basic
	Earnings from ongoing operations		$	0.64	$	0.54		$	1.30	$	1.23
	Special items			0.25		(0.06	)		0.12		(0.02	)
	Net Income		$	0.89	$	0.48		$	1.42	$	1.21
Earnings per share of common stock – diluted
	Earnings from ongoing operations		$	0.63	$	0.53		$	1.28	$	1.21
	Special Items			0.25		(0.06	)		0.13		(0.02	)
	Net Income		$	0.88	$	0.47		$	1.41	$	1.19
Average shares outstanding (thousands)
	Basic			385,300		380,141			385,053		379,981
	Diluted			390,109		385,590			389,645		385,589

(a)	Earnings in the 2007 and 2006 periods were impacted by several special items, as described in the text and tables of this news release. Earnings from ongoing operations excludes the impact of these special items.
(b)	Certain amounts from 2006 have been reclassified to conform to the current year presentation, including the reclassification of Latin American accounts to Income (Loss) from Discontinued Operations.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Millions of Dollars)

	6 Months Ended June 30,
	2007			2006
Cash Flows from Operating Activities
Net income	$	548		$	461
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		236			219
Amortizations-recoverable transition costs and other		209			151
Pre-tax gain on the sale of a Latin American business		(94	)		0
Pre-tax loss from the sale of interest in the Griffith plant		0			40
Deferred income taxes and investment tax credits		(38	)		(51	)
Pension and other postretirement benefits		38			(1	)
Impairment of assets held for sale		70			0
Changes in working capital		(235	)		(98	)
Other		(115	)		(26	)
Net cash provided by operating activities		619			695
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(692	)		(478	)
Proceeds from sale of a Latin American business		180			0
Net sales (purchases) of emission allowances		31			(25	)
Net sales (purchases) of short-term investments		9			(9	)
Proceeds from sale of interest in Griffith plant		0			115
Other investing activities		(70	)		0
Net cash used in investing activities		(542	)		(397	)
Cash Flows from Financing Activities
Net retirements of long-term debt		(63	)		(263	)
Repurchase of common stock		(77	)		0
Payment of common stock dividends		(225	)		(200	)
Net increase (decrease) in short-term debt		61			(171	)
Issuance of preference stock, net of issuance costs		0			245
Other financing activities		13			3
Net cash used in financing activities		(291	)		(386	)
Effect of Exchange Rates on Cash and Cash Equivalents		1			1
Net Decrease in Cash and Cash Equivalents		(213	)		(87	)
Cash and cash equivalents at beginning of period		794			555
Cash and cash equivalents included in assets held for sale		(14	)		0
Cash and cash equivalents at end of period	$	567		$	468

Key Indicators

Financial

	12 Months Ended June 30, 2007	12 Months Ended June 30, 2006
Dividends declared per share	$1.16	$1.05
Book value per share (a)	$13.95	$12.84
Market price per share (a)	$46.79	$32.30
Dividend yield (a)	2.5%	3.3%
Dividend payout ratio (b)	47%	48%
Dividend payout ratio - earnings from ongoing operations (b)(c)	50%	46%
Price/earnings ratio (a)(b)	19.1	14.7
Price/earnings ratio - earnings from ongoing operations (a)(b)(c)	20.2	14.1
Return on average common equity	18.52%	18.58%
Return on average common equity -  earnings from ongoing operations (c)	17.49%	19.11%

(a)	End of period.
(b)	Based on diluted earnings per share.
(c)	Calculated using earnings from ongoing operations, which excludes the impact of special items, as described in the text and tables of this news release.

Reconciliation of Business Segment Earnings from Ongoing Operations and Reported Earnings (Diluted)
2nd Quarter 2007					(millions of dollars)											(per share)
					Supply			PA Delivery			Int'l Delivery		Total			Supply			PA Delivery			Int'l Delivery		Total
Earnings from Ongoing Operations					$	118		$	30		$	100	$	248		$	0.30		$	0.07		$	0.26	$	0.63
	Special Items
		MTM adj's from energy-related,
			non-trading economic hedges			16								16			0.04								0.04
		Divestiture of Latin American businesses										83		83									0.21		0.21
		Impairment of telecommunication assets				(2	)							(2	)
				Total special items		14						83		97			0.04						0.21		0.25
Reported earnings					$	132		$	30		$	183	$	345		$	0.34		$	0.07		$	0.47	$	0.88
Year-to-Date June 30, 2007					(millions of dollars)											(per share)
					Supply			PA Delivery			Int'l Delivery		Total			Supply			PA Delivery			Int'l Delivery		Total
Earnings from Ongoing Operations					$	244		$	88		$	168	$	500		$	0.62		$	0.23		$	0.43	$	1.28
	Special Items
		MTM adj's from energy-related,
			non-trading economic hedges			26								26			0.07								0.07
		PJM billing dispute (Q1, '07)				(1	)							(1	)
		Divestiture of Latin American businesses
			(Q1, '07; Q2, '07)									43		43									0.11		0.11
		Impairment of telecommunication
			assets (Q1, '07; Q2, '07)			(20	)							(20	)		(0.05	)							(0.05	)
			Total special items			5						43		48			0.02						0.11		0.13
Reported earnings					$	249		$	88		$	211	$	548		$	0.64		$	0.23		$	0.54	$	1.41
12 Months Ended June 30, 2007					(millions of dollars)											(per share)
					Supply			PA Delivery			Int'l Delivery		Total			Supply			PA Delivery			Int'l Delivery		Total
Earnings from Ongoing Operations					$	476		$	150		$	276	$	902		$	1.22		$	0.39		$	0.71	$	2.32
	Special Items
		MTM adj's from energy-related,
			non-trading economic hedges			15								15			0.04								0.04
		PJM billing dispute (Q4, '06; Q1, '07)				(18	)		20					2			(0.04	)		0.05					0.01
		Sale of interest in Griffith (Q4, '06)				1								1
		Write-off of Hurricane Isabel
			regulatory asset (Q3, '06)						(6	)				(6	)					(0.02	)				(0.02	)
		Benefits related to Black Lung
			Trust assets (Q3, '06)						21					21						0.06					0.06
		Susquehanna workforce reduction (Q4, '06)				(3	)							(3	)		(0.01	)							(0.01	)
		Impairment of nuclear decom.
			trust investments (Q4, '06)			(3	)							(3	)		(0.01	)							(0.01	)
		Divestiture of Latin American
			businesses (Q1, '07; Q2, '07)									43		43									0.11		0.11
		Impairment of telecommunication
			assets (Q1, '07; Q2, '07)			(20	)							(20	)		(0.05	)							(0.05	)
				Total special items		(28	)		35			43		50			(0.07	)		0.09			0.11		0.13
Reported earnings					$	448		$	185		$	319	$	952		$	1.15		$	0.48		$	0.82	$	2.45

Reconciliation of Business Segment Earnings from Ongoing Operations and Reported Earnings (Diluted)

2nd Quarter 2006					(millions of dollars)										(per share)
					Supply			PA Delivery		Int'l Delivery		Total			Supply			PA Delivery		Int'l Delivery		Total
Earnings from Ongoing Operations					$	98		$	28	$	79	$	205		$	0.25		$	0.08	$	0.20	$	0.53
	Special Items
		MTM adj's from energy-related,
			non-trading economic hedges			(8	)						(8	)		(0.02	)						(0.02	)
		Off-site remediation of ash basin leak				5							5			0.01							0.01
		Enron reserve adjustment				2							2			0.01							0.01
		Sale of interest in Griffith				(17	)						(17	)		(0.05	)						(0.05	)
		Synfuels impairment				(6	)						(6	)		(0.01	)						(0.01	)
				Total special items		(24	)						(24	)		(0.06	)						(0.06	)
Reported earnings					$	74		$	28	$	79	$	181		$	0.19		$	0.08	$	0.20	$	0.47
Year-to-Date June 30, 2006					(millions of dollars)										(per share)
					Supply			PA Delivery		Int'l Delivery		Total			Supply			PA Delivery		Int'l Delivery		Total
Earnings from Ongoing Operations					$	224		$	84	$	159	$	467		$	0.58		$	0.22	$	0.41	$	1.21
	Special Items
		MTM adj's from energy-related,
			non-trading economic hedges			(1	)						(1	)
		Off-site remediation of ash basin
			leak (Q1, '06; Q2, '06)			6							6			0.01							0.01
		Enron reserve adjustment (Q1, '06; Q2, '06)				11					1		12			0.03							0.03
		Sale of interest in Griffith (Q2, '06)				(17	)						(17	)		(0.05	)						(0.05	)
		Synfuels impairment (Q2, '06)				(6	)						(6	)		(0.01	)						(0.01	)
				Total special items		(7	)				1		(6	)		(0.02	)						(0.02	)
Reported earnings					$	217		$	84	$	160	$	461		$	0.56		$	0.22	$	0.41	$	1.19
12 Months Ended June 30, 2006					(millions of dollars)										(per share)
					Supply			PA Delivery		Int'l Delivery		Total			Supply			PA Delivery		Int'l Delivery		Total
Earnings from Ongoing Operations					$	443		$	182	$	258	$	883		$	1.15		$	0.47	$	0.67	$	2.29
	Special Items
		MTM adj's from energy-related,
				non-trading economic hedges
		Off-site remediation of ash basin
				leak (Q3, '05; Q4, '05; Q1, '06; Q2, '06)		(21	)						(21	)		(0.05	)						(0.05	)
		Conditional asset retirement
				obligation (Q4, '05)		(8	)						(8	)		(0.02	)						(0.02	)
		Enron reserve adjustment (Q1, '06; Q2, '06)				11					1		12			0.03							0.03
		Sale of interest in Griffith (Q2, '06)				(17	)						(17	)		(0.05	)						(0.05	)
		Synfuels impairment (Q2, '06)				(6	)						(6	)		(0.01	)						(0.01	)
				Total special items		(41	)				1		(40	)		(0.10	)						(0.10	)
Reported earnings					$	402		$	182	$	259	$	843		$	1.05		$	0.47	$	0.67	$	2.19

Operating - Domestic and International Electricity Sales

(millions of kwh)
	3 Months Ended June 30				6 Months Ended June 30
	2007	2006	Percent Change		2007	2006	Percent Change
Domestic Retail
Delivered (a)	8,872	8,407	5.5%		19,180	18,341	4.6%
Supplied	9,395	8,946	5.0%		20,236	19,424	4.2%
International Delivered
United Kingdom	6,840	7,353	(7.0%	)	14,565	15,430	(5.6%	)
Chile	752	706	6.5%		1,538	1,436	7.1%
El Salvador and Bolivia (c)	465	449	3.6%		907	872	4.0%
Domestic Wholesale
East	4,563	5,135	(11.1%	)	8,811	9,867	(10.7%	)
West
NorthWestern Energy	836	845	(1.0%	)	1,669	1,668	0.1%
Other West (b)	2,651	2,701	(1.8%	)	5,445	5,434	0.2%

(a)	Electricity delivered to retail customers represents the kwh delivered to customers within PPL Electric Utilities Corporation’s service territory.
(b)	Certain amounts have been reclassified to conform to the current year presentation.
(c)	PPL’s business in El Salvador was sold on May 24, 2007, and electricity deliveries were made to the date of sale.

 “Earnings from ongoing operations” excludes the impact of special items. Special items include charges, credits or gains that are unusual or non-recurring and the mark-to-market impact of energy-related, non-trading economic hedges. The mark-to-market impact of these hedges is economically neutral to the company in that offsetting gains or losses on underlying accrual positions will be recognized as energy is delivered over the terms of the contracts. Earnings from ongoing operations should not be considered as an alternative to reported earnings, or net income, 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 measure, is also useful and meaningful to investors because it provides them with PPL’s underlying 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.

Statements contained in this news release, including statements with respect to future earnings, energy prices, margins, sales and supply, marketing performance, growth, revenues, expenses, rates, cash flows, credit profile, financing, dividends, business disposition, 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 statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: market demand and prices for energy, capacity and fuel; market prices for crude oil and the potential impact on the phaseout of synthetic fuel tax credits and synthetic fuel operations; weather conditions affecting generation production, customer energy usage and operating costs; competition in retail and wholesale power markets; liquidity of wholesale power markets; the effect of any business or industry restructuring; the profitability and liquidity, including access to capital markets and credit facilities of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operation and availability of existing generation facilities and operating costs; transmission and distribution system conditions and operating costs; current and future environmental conditions and requirements and the related costs of compliance, including environmental capital expenditures and emission allowance and other expenses; significant delays in the planned installation of pollution control equipment at certain coal-fired generating units in Pennsylvania due to weather conditions, contractor performance or other reasons; development of new projects, markets and technologies; performance of new ventures; asset acquisitions and dispositions; political, regulatory or economic conditions in states, regions or countries where PPL Corporation or its subsidiaries conduct business; any impact of hurricanes or other severe weather on PPL and its subsidiaries, including any impact on fuel prices; receipt of necessary governmental permits, approvals and rate relief; new state, federal or foreign legislation, including new tax legislation; state, federal and foreign regulatory developments; any impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries and the energy industry; capital markets conditions, including changes in interest rates, and decisions regarding capital structure; stock price performance of PPL Corporation; the market prices of equity securities and the impact on pension costs and resultant cash funding requirements for defined benefit pension plans; securities and credit ratings; disposition proceeds; foreign currency exchange rates; the outcome of litigation against PPL Corporation and its subsidiaries; potential effects of threatened or actual terrorism or war or other hostilities; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such important factors and in conjunction with PPL Corporation’s Form 10-K and other reports on file with the Securities and Exchange Commission.

#     #    #

Note to Editors: Visit PPL’s media Web site at www.pplnewsroom.com for additional news and background about the corporation and its subsidiaries.

EX-99

Cautionary Statements And Factors ThatMay Affect Future Results&nbs p;Any statements made in this presentationabout future operating results or other futureevents are forward-looking statements underthe Safe Harbor Provisions of the PrivateSecurities Litigation Reform Act of 1995.Actual results may differ materially from suchforward-looking statements. A discussion offactors that could cause actual results orevents to vary is contained in the Appendix tothis presentation and in the Company’s SECfilings.1 

Agenda•Second Quarter 2007 Earningsand Review of Longer-TermEarnings and Outlook•Second Quarter OperatingResults, 2007 Forecast andFinancial Overview•Operational Review•Q&AJ. H. MillerP. FarrW. H. Spence 

Strong Second Quarter ResultsEarnings from Ongoing OperationsPershare$0.53$0.63$0.00$0.50$1.002Q 2006 2Q 20073Note: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations.Pershare < /font>$0.47$0.88$0.00$0.50$1.002Q 2006 2Q 2007Reported Earn ings 

Solid Year-to-Date ResultsEarnings from Ongoing OperationsPershare$1.21 $1.28$0.00$0.50$1.00$1.50YTD 2006 YTD 20074Note: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations.Pershare$1.19$1.41$0.00$0.50$1.00$1.50YTD 2006 YTD 2007Reported Earnings 

Strong Long-Term Earnings GrowthForecast5** Earnings from ongoing operations – See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.* Midpoint of $2.40 to $2.50 earnings forecast.$3.50$2.25 $2.45$0.00$1.00$2.00$3.00$4.002006A** 2007 2010To beupda tedlater in2007 

 Ongoing Earnings Overview2ndQuarterTotal $0.63 $0.53 $0.10International Delivery 0.26 0.20 0.06Pennsylvania Delivery 0.07 0.08 (0.01)Supply $0.30 $0.25 $ 0.052007 2006 Change(Dollars per Share)6Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing ope rations.

Supply SegmentEarnings DriversQ2 2007 EPS – Ongoing Earnings $0.30Total 0.05O&M (0.02)Margins–West -Margins–East $0.07Q2 2006 EPS – Ongoing Earnings $0.252ndQuarter(Dollars per Share)7Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. 

Pennsylvania Delivery SegmentEarnings DriversQ2 2007 EPS – Ongoing Earnings $0.07Total (0.01)Income Taxes & Other (0.01)O&M (0.01) Delivery Margins $0.01Q2 2006 EPS – Ongoing Earnings $0.082ndQuarter8(Dollars per Share)Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. 

International Delivery SegmentEarnings DriversLatin American Operations 0.03Foreign currency translation 0.02Q2 2007 EPS – Ongoing Earnings $0.26Total 0.06Income Taxes & Other 0.03O&M (0.02)Delivery Margins -Q2 2006 EPS – Ongoing Earnings $0.202ndQuarter(Dollars per Share)9Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. 

2007 Ongoing Earnings ForecastEPS(Dollars per Share)$1.00$1.25$1.50$1.75$2.00$2.25$2.50 2005A 2006A 2007Forecast$2.08$2.25$2.40to$2.5010Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations. 

Expected 2007 Ongoing Earnings Contributions(Dollars per Share)11*Midpoint of forecastNote: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations.$1.50$2.00$2.50$3.002006A$2.25EnergyMargins$0.22LatinAme ricanOperations($0.03)U.K.Liquidations($0.07) O&M($0.04)IncomeTaxes&Other($0.03)$2.45*Int’lTaxBenefit$0.08ForeignCurrencyTranslation$0.04PADeliveryMargins$0.032007E 

Cash Flow ForecastMillions-$300-$100$100$300$500$700$900$1,1002006A 2007 2008 2009 2010Free cash flow before dividends12Note: See Appendix for the reconciliation of cash flow measures. 

$0.82$0.92$1.00$1.10$1.22$0.00$0.25$0.50$0.75$1.00$1.252004 April2005October2005April2006April2007*$/shareAnnualized*Annualized rate based on quarterly dividend declared in February 2007. 

Operational Update•Scrubbers expected to be completed onschedule and on budget•Generation uprates continue to progress•PPL Electric Utilities completed firstsolicitation for 2010 generation supply•Continue to work through process of PPLEU rate increase•Divestiture of non-core businesses14 

PPL EU Completed First RFP for 2010•Solicitation for 850 MWs of residential andsmall commercial and industrial load•PUC approval of winning bids received July26, 2007•Based on first solicitation results, residentialbills could increase by approximately 28%•Second solicitation bids due October 1,PUC approval expected October 415 

PPL Electric Utilities Distribution Rate Case FactsDist ribution rate base $2,020 million $2,015 million $2,017 million (est.)Common equity 43.1% 43.1% 43.1%Return on equity 11.5% 9.36% 10.13%Revenue increase $77.0 million $27.0 million $49.0 million (est.)Office ofTrial Staff < /font>Office ofConsumer AdvocatePPL ElectricUtilities RequestSensitivity: 1% change in ROE = $16.0 millionDocket No. R-0007215516 

Growing Constrained Region in PJMIncreases Value of PPL Generation17CCoonnssttrraainineedd R ReeggioionnCCoonnssttrraainineedd R ReeggioionnMontourBrunner IslandHoltwoodWallenpaupackMartins CreekKeystoneConemaughSafe HarborPA Combustion Turbines Lower Mt. BethelSusquehannaEExxisisttiningg C CoonnssttrraaininttSource: Map developed based on PJM RPMPlanning Period Parameters. 

RPM Auction Provided Robust Prices18$111.92$148.80$210.11$188.54$197.67$40.80$0.00$20.00$40.00$60.00$80.00$100.00$120.00$140.00$160.00$180.00$200.00$220.00Rest of Pool Eastern MAAC Southwest MAACApril 2007 Auction Results - 07/08 Planning YearJuly 2007 Auction Results - 08/09 Planning Year$/MWDPJM RPM Auction Results•09/10 Planning year auction – Oct. 2007•10/11 Planning year auction – Jan. 2008 

Market Prices(1)Market prices based on the average of broker quotes as of 6/29/2007.(2)24-hour average.(3)NYMEX and TZ6NNY forward gas prices on 6/29/2007.(4)Prices at 12/2005 when 2010 earnings forecast of $3.50 was developed.(5)Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price.A-18.5 8.5 8.2 8.4 8.0PJM MARKET HEATRATE(5)TZ6NNY $7.30 $8.27 $9.52 $9.38 $9.01NYMEX $7.25 $7.24 $8.41 $8.36 $8.00GAS(3)ATC(2)$45 $54 $64 $66 $58Off-Peak $39 $48 $57 $58 $52On-Peak $50 $59 $69 $72 $62Mid-ColumbiaWESTATC(2)$51 $56 $62 $64 $59Off-Peak $37 $44 $49 $51 $48On-Peak $62 $70 $78 $79 $72PJMEAST2006 2007 2008 2010 2010Actual Forward (1) At 12/05 (4) 

Current Hedge Positions - Electricity and FuelA-2Total 97% 86% 78%CoalEast 96% 80% 70%West 100% 100% 100%Total 98% 97% 94%West 100% 100% 77%East 97% 97% 97%Electricity Sales2007 2008 2009 

PPL’s Generation PortfolioOil 52Hydro 44Total Domestic Generation: 11,196 MWPlanned Uprate Projects: 355 MWCoal 3,454*Nuclear 2,120Oil 1,722Gas 1,524Hydro 337CTs 451QFs 299East 9,907 MW*Nuclear Uprate (2008-2010) 143Hydro Uprate (2011) 125Coal Uprate (2007-2009) 37Coal 687Hydro 602West 1,289 MWCoal Uprate (2007-2008) 10Hydro Uprate (2007) 12Hydro Uprate (2011) 28*Reflects reduction of 300 MW at Martins Creek that PPL has agreed to shut down bySeptember 2007 and 60 MW expected loss due to increased plant usage during scrubberoperation.A-3 

PPL’s Generation PortfolioOil 52H ydro 44Total Domestic Generation: 11,196 MWPlanned Uprate Projects: 355 MWCoal 3,454*Nuclear 2,120Oil 1,722Gas 1,524Hydro 337CTs 451QFs 299East 9,907 MW*Nuclear Uprate (2008-2010) 143 < /strong>Hydro Uprate (2011) 125Coal Uprate (2007-2009) 37Coal 687Hydro 602West 1,289 MWCoal Uprate (2007-2008) 10Hydro Uprate (2007) 12Hydro Uprate (2011) 28*Reflects reduction of 300 MW at Martins Creek that PPL has agreed to shut down bySeptember 2007 and 60 MW expected loss due to increased plant usage during scrubberoperation.A-3PPL Supply Business OverviewProduction GWhA-4Gas/Oil32%Coal39%Nuclear18%Hydro8%QFs 3%Installed Capacity MWGas/Oil6%Coal56%Nuclear30%Hydro8%��In 2007, 94% of our owned generation outputis expected to be produced at a fuel cost ofapproximately $16/MWh or less. 

Proactive Coal Supply ManagementSupports Growth in MarginsProjected 2007 Coal Supply•Supply region diversity•Fleet trains (1600 cars)•Average delivered costs–4%-5% annualincrease2006 to 2010A-5Central PA16%PRB6%MontanaMine-mouth21%CentralAppalachia12%Southwest PA45%

Key Drivers/Challenges Through 2010•Increased prices for POLR sales•Expiration of supply contracts remarketed at currentforward prices•Power plant uprates•Net economic benefits from the installation ofscrubbers at the Montour and Brunner Island coalfiredpower plants•Increased fuel and O&M costs•Loss of synfuel tax credits and increasedreplacement coal costs•Cost of compliance with evolving environmentalregulationA-6 

Increasing Prices Under the POLR Contract$42.30 $42.70 $43.30 $44.10$47.80 $48.40 $49.10 $50.2001020304050602002 2003 2004 2005 2006 2007 2008 2009$/MWhA-7Note: Includes Gross Receipts Tax (GRT) at a rate of 4.4%. 

Distribution Rate Case TimetableJune 2007 Public input hearingsJanuary 1, 2008 New distribution rates effectiveDecember 2007 PUC adopts and enters final orderAdministrative Law Judge issuesrecommended decision (non-binding)October 2007August 2007 Evidentiary hearingsMay 30, 2007 Rate case suspended for investigationMarch 29, 2007 Rate case filed with PUC A-8 

Scrubbers Expected to be Completedon Budget and on ScheduleMontour Unit #2 AbsorberA-9Brunner Island 1 & 2 Q2-09Brunner Island 3 Q4-08Montour 2 Q2-08Montour 1 Q1-08In-Service Dates 

Reconciliation of Cash from Operationsto Free Cash Flow before Dividends(Millions of Dollars)A-10Free Cash Flow before Dividends $167 $(89) $90 $391 $832Other Investing Activities-net 85 310 19 (2) 34Capital Expenditures (1,394) (1,747) (1,398) (1,286) (1,284)Transition Bond Repayment (282) (294) (310) - -Increase/(Decrease) in cash due to:Cash from Operations $1,758 $1,642 $1,779 $1,679 $2,0822006 2007 2008 2009 2010 

 Millions$738$1,121$819$643 $570 $603$340$315$291$348 $409 $469$316& nbsp;$311$288$295 $305$311$0$400$800$1,200$1,600$2,0002006A 2007E 2008E 2009E 2010E 2011ESupply PA Delivery International Delivery$1,394$1,284$1,383$1, 286$1,398$1,747 A-11

  ;

Reconciliation of Second Quarte r ReportedEarnings and Earnings from Ongoing OperationsA-12(Millions of Dollars)Pennsylvania InternationalSupply Delivery Delivery TotalQtr. Ending June 30, 2007Reported earnings $132 $30 $183 $345Special Items:MTM adj's from energy-related, nontradingeconomic hedges 16 16Divestiture of Latin American businesses 83 83Impairment of telecommunication assets (2) (2)1 4 83 97Earnings from ongoing operations $118 $30 $100 $248Qtr. Ending June 30, 2006Reported earnings $74 $28 $79 $181Special Items:MTM adj's from energy-related, nontradingeconomic hedges (8) (8)Off-site remediation of ash basin leak 5 5Enron reserve adjustment 2 2Sale of interest in Griffith (17) ( 17)Synfuels impairment (6) (6)( 24) (24)Earnings from ongoing operations $98 $28 $79 $205Change excluding special items $20 $2 $21 $43

econciliation of Second Quarter ReportedEarnings and Earnings from Ongoing OperationsA-13(Dollars Per Share)Pennsylvania InternationalSupply Delivery Delivery TotalQtr. Ending June 30, 2007Reported earnings $0.34 $0.07 $0.47 $0.88Special Items:MTM adj's from energy-related, non-tradingeconomic hedges 0.04 0.04Divestiture of Latin American businesses 0.21 0 .210.04 0.21 0.25Earnings from ongoing operations $0.30 $0.07 $0.26 $0.63Qtr. Ending June 30, 2006Reported earnings $0.19 $0.08 $0.20 $0.47Special Items:MTM adj's from energy-related, non-tradingeconomic hedges (0.02) (0.02)Off-site remediation of ash basin leak 0.01 0 .01Enron reserve adjustment  .01Sale of interest in Griffith (0.05) ( 0.05)Synfuels impairment (0.01) (0.01)(0.06) (0.06)Earnings from ongoing operations $0.25 $0.08 $0.20 $0.53Change excluding special items $0.05 ($0.01) $0.06 $0.10

Reconciliation of Year-to-Date ReportedEarnings and Earnings from Ongoing OperationsA-14(Millions of Dollars)Pennsylvania InternationalSupply Delivery Delivery TotalYear-to-DateJune 30, 2007Reported earnings $249 $88 $211 $548Special Items:MTM adj's from energy-related, nontradingeconomic hedges 26 26PJM billing dispute (1) ( 1)Divestiture of Latin American businesses 43 43Impairment of telecommunication assets (20) (20)5 43 48Earnings from ongoing operations $244 $88 $168 $500Year-to-DateJune 30, 2006Reported earnings $217 $84 $160 $461Special Items:MTM adj's from energy-related, nontradingeconomic hedges (1) (1)Off-site remediation of ash basin leak 6 6Enron reserve adjustment 11 1 1 2Sale of interest in Griffith (17) ( 17)Synfuels impairment (6) (6)( 7) 1 (6)Earnings from ongoing operations $224 $84 $159 $467Change excluding special items $20 $4 $9 $33 

Reconciliation of Year-to-Date Reported Earningsand Earnings from Ongoing OperationsA-15(Dollars Per Share)Pennsylvania InternationalSupply Delivery Delivery TotalYear-to-DateJune 30, 2007Reported earnings $0.64 $0.23 $0.54 $1.41Special Items:MTM adj's from energy-related, non-trading economic hedges 0.07 0.07PJM billing disputeDivestiture of Latin American businesses 0.11 0 .11Impairment of telecommunication assets (0.05) (0.05)0.02 0.11 0.13Earnings from ongoing operations $0.62 $0.23 $0.43 $1.28Year-to-DateJune 30, 2006Reported earnings $0.56 $0.22 $0.41 $1.19Special Items:MTM adj's from energy-related, non-tradingeconomic hedgesOff-site remediation of ash basin leak 0.01 0 .01Enron reserve adjustment 0.03 0 .03Sale of interest in Griffith (0.05) ( 0.05)Synfuels impairment (0.01) (0.01)(0.02) (0.02)Earnings from ongoing operations $0.58 $0.22 $0.41 $1.21Change excluding special items $0.04 $0.01 $0.02 $0.07 

Reconciliation of PPL’s Reported Earnings andEarnings from Ongoing OperationsHigh Low2007 2007 2006 2005Per Share Earnings from Ongoing Operations $2.50 $2.40 $2.25 $2.08Special items (net of taxe s):economic hedges 0.07 0.07 (0.03)Write-off of Hurricane Isabel regulatory asset (0.02)Synfuels impairment (0.01)Sale of interest in Griffith (0.04)Enron reserve adjustment 0.03Stock-based compensation adjustment (0.01)Conditional asset retirement obligation (0.02)Off-site remediation of ash basin leak 0.02 (0.07)Sale of Sundance (0.12)PJM billing dispute 0.01 (0.07)NorthWestern litigation (0.02)Benefits related to Black Lung Trust assets 0.05Susquehanna w orkforce reduction (0.01)Impairment of nuclear decom. trust investments (0.01)Divestiture of Latin American businesses 0.11 0.11Impairment of telecommunication assets (0.05) (0.05)0.13 0.13 (0.01) (0.31)Reported Earnings Per Share $2.63 $2.53 $2.24 $1.77Note: Per share amounts are based on diluted shares outstanding.ForecastMTM adj's from energy-related, non-tradingActualA-16 

Credit RatingsA-17Outlook STABLE STABLE STABLESenior Secured Debt A3 A- ACommercialPaper P-2 A-2 F-2Preferred Stock Baa3 BBB BBB+Issuer Rating Baa1 AFirstMortgage Bonds A3 A- AP ollutionControl Bonds* Aaa AAAPreference Stock Baa3 BBB BBBPPL Electric UtilitiesSenior Unsecured Debt Baa2 BBB- BBBSubordinated Debt Baa3 BB+ BBBMedium-Term Notes Baa2 BBB- BBBOutlook STABLE STABLE STABLEPPL Capital FundingIssuer Rating BBBSenior Notes Baa2 BBB BBB+Commercial paper P-2 A-2 F-2Outlook STABLE STABLE STABLEPPL Energy SupplyOutlook STABLE STABLE STABLEIssuer Rating Baa2 BBBPPL CorporationMoody’s Standard & Poor’s Fitch

Credit Ratings (cont.)A-18Commercial Paper A-3Issuer Rating Baa1 BBB+ BBB+Senior Unsecured Debt Baa1 BBB+ ACommercialPaper P-2 A-2 F2Outlook STABLE STABLE STABLEWestern Power Distribution (South West) PLCIssuer Rating BBB+ BBB+Senior Unsecured Debt Baa1 BBB+ ACommercialPaper A-2 F2Outlook STABLE STABLE STABLEWestern Power Distribution (South Wales) PLCOutlook STABLE STABLE STABLE&n bsp;Outlook STABLE STABLE STABLEPreferred Stock Baa3 BB BBBIssuer Rating BBB- BBBWPD Holdings LLPIssuer Rating Baa3 BBB- BBBSeniorUnsecured Debt Baa3 BBB- BBBCommercial Paper A-3WPD Holdings LimitedPass-Through Certificates Baa3 BBB- BBBOutlook STABLE STABLEPPL MontanaTransition Bonds Aaa AAA AAAPPL Transition Bond Co. Moody’s Standard & Poor’s Fitch 

Forward-Looking Information StatementStatements contained in this news release, including statements with respect to future earnings, energy prices, margins, salesand supply, marketing performance, growth, revenues, expenses, rates, cash flows, credit profile, financing, div idends,business disposition, corporate strategy, capital additions and expenditures, and generating capacity and performance, are“forward-looking statements” within the meaning of the federal securities laws. Although PPL Corporation believes that theexpectations and assumptions reflected in these forward-looking statements are reasonable, these statements involve a< em>number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. Thefollowing are among the important factors that could cause actual results to differ materially from the forward-lookingstatements: market demand and prices for energy, capacity and fuel; market prices for crude oil and the potential impact onthe phaseout of synthetic fuel tax credits and synthetic fuel operations; weather conditions affecting generation p roduction,customer energy usage and operating costs; competition in retail and wholesale power markets; liquidity of wholesale powermarkets; the effect of any business or industry restructuring; the profitability and liquidity, including access to capital marketsand credit facilities of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations orapplications of existing requirements; operation and availability of existing generation facilities and operating costs;transmission and distribution system conditions and operating costs; current and future environmental conditions andrequirements and the related costs of compliance, including environmental capital expenditures and emission allowance andother expenses; significant delays in the planned installation of pollution control equipment at certain coal-fired generatingunits in Pennsylvania due to weather conditions, contractor performance or other reasons; development of new projects,markets and technologies; performance of new ventures; asset acquisitions and dispositions; political, regulatory or economicconditions in states, regions or countries where PPL Corporation or its subsidiaries conduct business; any impact ofhurricanes or other severe weather on PPL and its subsidiaries, including any impact on fuel prices; receipt of necessarygovernmental permits, approvals and rate relief; new state, federal or foreign legislation, including new tax legislation; state,federal and foreign regulatory developments; any impact of state, federal or foreign investigations applicable to PPLCorporation and its subsidiaries and the energy industry; capital markets conditions, including changes in inter est rates, anddecisions regarding capital structure; stock price performance of PPL Corporation; the market prices of equity securities andthe impact on pension costs and resultant cash funding requirements for defined benefit pension plans; securities and creditratings; disposition proceeds; foreign currency exchange rates; the outcome of litigation against PPL Corporation and itssubsidiaries; potential effects of threatened or actual terrorism or war or other hostilities; and the commitments and liabilities ofPPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such importantfactors and in conjunction with PPL Corporation’s Form 10-K and other reports on file with the Securities and ExchangeCommission.A-19

Definitions of Financial MeasuresA-20“Earnings from ongoing operations” excludes the impact of special items. Special items include charges, creditsor gains that are unusual or non-recurring and the mark-to-market impact of energy-related, non-trading economichedges. The mark-to-market impact of these hedges is economically neutral to the company in t hat offsettinggains or losses on underlying accrual positions will be recognized as energy is delivered over the terms of thecontracts. Earnings from ongoing operations should not be considered as an alternative to reported earnings, ornet income, which is an indicator of operating performance determined in accordance with generally acceptedaccounting principles (GAAP). PPL be lieves that earnings from ongoing operations, although a non-GAAPmeasure, is also useful and meaningful to investors because it provides them with PPL’s underlying earningsperformance as another criterion in making their investment decisions. PPL’s management also uses earningsfrom ongoing operations in measuring certain corporate performance goals. Other companies may use differentmeasures to present financial performance.“Free cash flow before dividends” is derived by deducting capital expenditures and other investing activities-net,as well as the repayment of transition bonds, from cash flow from operations. Free cash flow before dividendsshould not be considered as an alternative to cash flow from operations, which is determined in accordance withGAAP. PPL b elieves that free cash flow before dividends, although a non-GAAP measure, is an importantmeasure to both management and investors since it is an indicator of the company’s ability to sustain operationsand growth without additional outside financing beyond the requirement to fund maturing debt obligations. Othercompanies may calculate free cash flow before dividends in a different manner.