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):  January 31, 2008

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 January 31, 2008, PPL Corporation (“PPL”) issued a press release announcing its financial results for the year ended December 31, 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 January 31, 2008, 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 year ended December 31, 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 January 31, 2008, announcing PPL’s financial results for the year ended December 31, 2007, and other business matters.
	99.2 -	Slides to be used on the January 31, 2008 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:  January 31, 2008

EX-99.1

Exhibit 99.1

Contacts:	For news media – George Biechler, 610-774-5997
	For financial analysts – Tim Paukovits, 610-774-4124
	PPL Corporation
	Two North Ninth St.
	Allentown, PA 18101
	Fax 610-774-5281

PPL Reports Strong Earnings Increase for 2007,

Reaffirms 2008 and 2010 Earnings Forecasts

ALLENTOWN, Pa. (Jan. 31, 2008) ― Driven by gains from the sale of its Latin American delivery businesses and improved margins from its unregulated energy supply business, PPL Corporation (NYSE: PPL) on Thursday (1/31) reported 2007 earnings of $3.40 per share, compared with $2.24 per share a year ago.

Excluding special items, PPL’s earnings from ongoing operations for 2007 were $2.60 per share, an increase of 16 percent over a year ago.

“While PPL’s strong reported earnings in 2007 resulted in large part from the sale of our Latin American businesses, the solid growth in our unregulated energy supply business led to record 2007 earnings from ongoing operations as well,” said James H. Miller, PPL’s chairman, president and chief executive officer.

Gains of $0.67 per share from the sale of PPL’s electricity delivery businesses in Chile, El Salvador and Bolivia contributed significantly to 2007 reported earnings results. A second major positive contributor to PPL’s 2007 reported earnings was a 37 percent increase, or $0.40 per share, in earnings from the company’s unregulated energy supply business segment. A decrease in the United Kingdom income tax rate effective April 1, 2008, also benefited PPL’s reported earnings by $0.14 per share in 2007 by reducing PPL’s net deferred tax liabilities.

PPL reaffirmed its 2008 earnings forecast of $2.35 to $2.45 per share. This forecast reflects the loss of earnings due to the expiration of the federal synfuel tax credit program at the end of 2007 and the sale of PPL’s Latin American businesses during 2007. PPL’s Latin American businesses earned $0.08 per share in 2007. Synfuel operations in 2007 benefited PPL’s earnings by $0.14 per share and also provided a $0.04 per share benefit in lower fuel expense. In addition, U.S. income tax benefits of $0.08 per share in 2007 are not likely to recur at a similar level in 2008.

The company also reaffirmed its 2010 earnings forecast of a range of $4.00 to $4.60 per share.

“We continue to see improvement in energy market fundamentals, driving up the value of PPL’s current business portfolio,” Miller said. “As we actively pursue new assets that can add further value to our business portfolio, these market fundamentals will provide continued growth in value for our shareowners. We are working diligently with elected officials and regulators on energy policies at the state and federal levels that serve the best interests of our customers and the competitive energy marketplace.”

Miller noted that the total return on investment for owners of PPL common stock who reinvested their dividends was more than 49 percent in 2007 and more than 254 percent from the start of 2003 to year-end 2007. “Those figures are among the best for U.S. energy companies and demonstrate that we are consistently growing shareowner value,” he said.

2007 Reported and Ongoing Earnings Details

PPL’s reported earnings for 2007 included net special item credits of $0.80 per share, including a special item credit of $0.67 per share from the sale of its Latin American businesses. Other special item credits were: $0.14 per share from an income tax rate decrease in the United Kingdom; $0.09 per share from revenue related to an energy supply contract settlement in Connecticut; and $0.08 per share in unrealized gains related to the mark-to-market impact of energy-related, non-trading economic hedges.

Special item charges in 2007 were: $0.06 per share from the sale of PPL’s telecommunication operations; $0.06 per share in tax adjustments related to the planned sale of PPL’s natural gas distribution and propane businesses; $0.04 per share from an impairment in the value of certain electricity transmission rights owned by PPL in Maine; and $0.02 per share in workforce reductions.

PPL is in the process of obtaining binding bids for the previously announced sale of its natural gas distribution and propane businesses, which are expected to be sold during the second half of 2008. Any gain from this sale would be recorded at completion of the transaction. Any loss indicated by this bid process would be reflected in 2007 reported earnings if this determination is made prior to PPL’s filing of its 2007 Form 10-K with the SEC, but it would not affect 2007 earnings from ongoing operations.

Special charges and credits for 2006 resulted in a net special item charge of $0.01 per share.

Excluding special items, PPL’s record earnings from ongoing operations for 2007 were $2.60 per share, a 16 percent increase compared with $2.25 per share in earnings from ongoing operations for 2006. This increase was primarily due to higher energy supply margins in the eastern United States.

Reported earnings are calculated in accordance with generally accepted accounting principles (GAAP) in the United States. 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)

	2007	2006	% Change
Reported Earnings	$1,309	$865	+51 %
Reported Earnings per Share	$3.40	$2.24	+52 %
Earnings from Ongoing Operations	$1,002	$869	+15 %
Per Share Earnings from Ongoing Operations	$2.60	$2.25	+16 %

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

Fourth-quarter 2007 Earnings Results

For the fourth quarter of 2007, PPL announced record reported earnings of $439 million, or $1.17 per share. This is an increase of $0.71 per share compared with the same period of 2006. This increase was primarily due to gains from the sale of PPL’s Chilean electricity delivery business. During the fourth quarter of 2007, the company recorded $0.57 in net special item credits compared with no impact of special items recorded in the same period of 2006. (See tables for details.)

Excluding special items, PPL’s earnings from ongoing operations for the fourth quarter of 2007 were $0.60 per share, an increase of $0.14 per share, or 30 percent, from a year ago. This increase was primarily due to higher energy supply margins in the eastern United States and lower U.S. income taxes on PPL’s international earnings.

(Dollars in millions, except for per share amounts)

	4Q 2007	4Q 2006	% Change
Reported Earnings	$439	$178	+147 %
Reported Earnings per Share	$1.17	$0.46	+154 %
Earnings from Ongoing Operations	$226	$177	+  28 %
Per Share Earnings from Ongoing Operations	$0.60	$0.46	+  30 %

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

Annual and Fourth-quarter Earnings by Business Segment

The following chart shows PPL’s earnings by business segment for the year and for the fourth quarter of 2007, compared with the same periods of 2006.

	Year						4th Quarter
	2007			2006			2007		2006
	(per share)						(per share)
Earnings from Ongoing Operations
Supply	$	1.42		$	1.18		$	0.29	$	0.26
Pennsylvania Delivery		0.40			0.38			0.09		0.07
International Delivery		0.78			0.69			0.22		0.13
Total	$	2.60		$	2.25		$	0.60	$	0.46
Special Items
Supply	$	0.06		$	(0.10	)	$	0.02	$	(0.06	)
Pennsylvania Delivery		(0.06	)		0.09			-		0.06
International Delivery		0.80			-			0.55		-
Total	$	0.80		$	(0.01	)	$	0.57	$	-
Reported Earnings
Supply	$	1.48		$	1.08		$	0.31	$	0.20
Pennsylvania Delivery		0.34			0.47			0.09		0.13
International Delivery		1.58			0.69			0.77		0.13
Total	$	3.40		$	2.24		$	1.17	$	0.46

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

Key Factors Impacting Business Segment Earnings from Ongoing Operations

Supply Segment

PPL’s supply business segmentprimarily 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 2007 increased by 20 percent, or $0.24 per share, over 2006. This increase primarily resulted from higher realized wholesale energy margins in the eastern and western U.S. driven by higher wholesale prices compared with a year ago, higher total margins from new and existing full-requirements energy supply contracts, increased base load generation output, and improved energy marketing activities. The supply business segment also recorded higher synfuel earnings and lower income taxes in 2007 compared with a year ago. Partially offsetting the impact of these positive factors were higher outage costs at PPL’s fossil, hydroelectric, and nuclear power plants and higher financing costs.

In the fourth quarter of 2007, per share earnings from ongoing operations for PPL’s supply business segment increased by 12 percent, or $0.03 per share, compared with the same period of 2006. This increase primarily resulted from higher realized wholesale energy margins in the eastern U.S., driven by higher wholesale prices, higher synfuel earnings and lower income taxes in 2007 compared with a year ago. Partially offsetting these gains were higher operation and maintenance expenses and higher financing costs.

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 2007 increased by 5 percent, or $0.02 per share, compared with 2006. This increase was the result of higher electricity delivery margins due to favorable weather impacts, partially offset by higher depreciation and higher operation and maintenance expenses. PPL's natural gas distribution and propane businesses also contributed to the increase in earnings, primarily due to higher revenues as a result of higher distribution rates that became effective in early 2007.

In the fourth quarter of 2007, per share earnings from ongoing operations for PPL’s Pennsylvania delivery business segment increased by 29 percent, or $0.02 per share, compared with the same period of 2006. Many of the same factors that affected 2007 results for this business segment also affected the results in the fourth quarter, including higher electricity delivery margins and higher operation and maintenance expenses.

International Delivery Segment

PPL’s international delivery business segment primarily includes investments in the regulated electric distribution companies in the United Kingdom and included operating results of the Latin American companies prior to the dates of their divestitures in 2007.

Per share earnings from ongoing operations for PPL’s international delivery business segment in 2007 increased by 13 percent, or $0.09 per share, compared with 2006. This increase was the result of lower U.S. income taxes, driven in part by U.S. tax benefits realized in 2007, a positive currency exchange rate in the U.K. and higher delivery revenues in the U.K. electric distribution businesses.

The positive earnings benefits were partially offset by higher local taxes and higher operation and maintenance expenses in the U.K., as well as lower operating results in PPL’s Latin American businesses as a result of the divestiture of these businesses throughout 2007. In addition, 2006 results benefited from higher income realized from the ongoing liquidation of certain nonstrategic businesses in the U.K.

In the fourth quarter of 2007, per share earnings from ongoing operations for PPL’s international delivery business segment increased by 69 percent, or $0.09 per share, compared with the same period of 2006. Many of the factors that affected 2007 results for this business segment also affected the results in the fourth quarter, including higher delivery margins, lower income taxes, and higher operation and maintenance expenses.

2008 Earnings Forecast by Business Segment

Earnings (per share)	2008 (forecast)	2007 (actual)
	Midpoint	Ongoing earnings
Supply	$1.34	$1.42
Pennsylvania Delivery	0.45	0.40
International Delivery	0.61	0.78
Total	$2.40	$2.60

PPL is reaffirming its 2008 earnings forecast of $2.35 to $2.45 per share, which excludes the potential impact of special items that may be recorded in 2008. This forecast reflects the loss of $0.18 per share of synfuel-related earnings as a result of the expiration of federal synfuel tax credits at the end of 2007, and reduced earnings of $0.08 per share as a result of the divestiture of Latin American operations in 2007. In addition, 2007 earnings included U.S. tax benefits of $0.08 per share, which are not likely to recur at similar levels. PPL expects to partially offset these negative effects through an increase in earnings from higher-valued wholesale energy contracts, higher base load generation, and increased revenues from its Pennsylvania delivery business segment as a result of PPL Electric Utilities’ distribution base rate increase that was effective Jan. 1, 2008.

Supply Segment

PPL projects lower earnings in its supply business segment in 2008 as compared with 2007 as a result of the loss of synfuel-related earnings and higher depreciation for scrubbers being installed at both coal-fired generation units at the Montour power plant and at Unit 3 of the Brunner Island power plant, both in Pennsylvania, which are expected to be placed in service during 2008. PPL expects these negative effects to be partially offset by higher energy margins as a result of higher-valued wholesale energy contracts and higher expected base load generation as compared with 2007.

Pennsylvania Delivery Segment

PPL projects higher earnings for its Pennsylvania delivery business segment, driven by higher revenues as a result of PPL Electric Utilities’ new distribution rates.

International Delivery Segment

PPL projects the earnings of its international delivery business segment will decline in 2008 compared with 2007. This decline is a result of the 2007 divestiture of PPL’s Latin American businesses and higher U.S. income taxes primarily driven by the U.S. income tax benefits realized in 2007. Partially offsetting the impact of these negative earnings drivers is lower pension expense at the U.K. electric distribution businesses.

2010 Earnings Forecast

PPL also reaffirmed its 2010 earnings forecast of a range of $4.00 to $4.60 per share. This forecast is driven primarily by higher energy margins based on higher wholesale electricity and capacity prices, higher expected generation output, and increased earnings from marketing and trading activities.

At the end of 2009, the full-requirements supply contract between PPL EnergyPlus and PPL Electric Utilities will expire. As a result of higher forward energy prices seen in the competitive marketplace and the 2010 capacity prices set in PJM Interconnection’s October 2007 auction, PPL expects a significant improvement in energy margins in 2010.

This forecast does not include the effect of any new assets being added to the company’s portfolio and assumes PPL Electric Utilities’ ability to fully recover its market-based energy costs as provided under Pennsylvania law.

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 about 4 million customers in Pennsylvania and the United Kingdom. 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.)

PPL invites interested parties to listen to a live Internet web cast of management’s teleconference with financial analysts about annual and fourth-quarter 2007 financial results at 9 a.m. EST Thursday, Jan. 31. The meeting is available online live, in audio format, along with slides of the presentation, on PPL’s Web site: www.pplweb.com. The web cast 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 719-325-4912.

PPL CORPORATION AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED FINANCIAL INFORMATION (a)

Condensed Consolidated Balance Sheet (Unaudited)

(Millions of Dollars)

	Dec. 31, 2007			Dec. 31, 2006
Assets
Cash and cash equivalents	$	430		$	794
Assets held for sale		366			0
Other current assets		2,574			2,836
Investments		608			564
Property, plant and equipment
Electric plant		20,109			19,395
Gas and oil plant		66			373
Other property		202			311
		20,377			20,079
Less: accumulated depreciation and amortization		7,772			8,010
		12,605			12,069
Recoverable transition costs		574			884
Goodwill and other acquired intangibles		1,326			1,521
Regulatory and other noncurrent assets		1,508			1,079
Total assets	$	19,991		$	19,747
Liabilities and Equity
Short-term debt (including current portion of long-term debt)	$	770		$	1,149
Liabilities held for sale		68			0
Other current liabilities		2,122			2,199
Long-term debt (less current portion)		6,890			6,728
Deferred income taxes and investment tax credits		2,184			2,331
Other noncurrent liabilities		2,051			1,857
Minority interest		19			60
Preferred securities of a subsidiary		301			301
Earnings reinvested		3,471			2,626
Common stock and capital in excess of par value		2,176			2,814
Accumulated other comprehensive loss		(61	)		(318	)
Total liabilities and equity	$	19,991		$	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 Dec. 31,				12 Months Ended Dec. 31,
		2007(a)		2006(a)(b)		2007(a)		2006(a)(b)
Operating Revenues
	Utility	$	1,040	$	963	$	4,114	$	3,855
	Unregulated retail electric		29		23		102		91
	Wholesale energy marketing		327		368		1,472		1,532
	Net energy trading margins		4		9		42		35
	Energy-related businesses		206		164		769		618
			1,606		1,527		6,499		6,131
Operating Expenses
	Fuel and energy purchases		382		410		1,624		1,736
	Other operation and maintenance		377		352		1,373		1,266
	Amortization of recoverable transition costs		81		72		310		282
	Depreciation		112		111		446		419
	Taxes, other than income		75		68		298		281
	Energy-related businesses		181		185		762		638
			1,208		1,198		4,813		4,622
Operating Income			398		329		1,686		1,509
Other Income - net			24		7		95		62
Interest Expense			117		109		474		447
Income from Continuing Operations Before
	Income Taxes, Minority Interest and
	Dividends on Preferred Securities of a Subsidiary		305		227		1,307		1,124
Income Taxes			83		54		271		268
Minority Interest			1		1		3		3
Dividends on Preferred Securities of a Subsidiary			4		4		18		14
Income from Continuing Operations			217		168		1,015		839
Income from Discontinued Operations (net of income taxes)			222		10		294		26
Net Income		$	439	$	178	$	1,309	$	865
Earnings per share of common stock – basic
	Earnings from ongoing operations	$	0.61	$	0.47	$	2.63	$	2.28
	Special items		0.57		0.00		0.81		(0.01	)
	Net Income	$	1.18	$	0.47	$	3.44	$	2.27
Earnings per share of common stock – diluted
	Earnings from ongoing operations	$	0.60	$	0.46	$	2.60	$	2.25
	Special items		0.57		0.00		0.80		(0.01	)
	Net Income	$	1.17	$	0.46	$	3.40	$	2.24
Average shares outstanding (thousands)
	Basic		372,943		382,060		380,563		380,754
	Diluted		377,270		388,110		385,111		386,769

(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. This includes the reclassification of Latin American and PPL Gas Utilities Corporation accounts to Discontinued Operations.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Millions of Dollars)

	12 Months Ended Dec. 31,
	2007			2006
Cash Flows from Operating Activities
Net income	$	1,309		$	865
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		458			446
Amortizations - recoverable transition costs and other		433			309
Pre-tax gain from the sale of Latin American businesses		(398	)		0
Pre-tax loss from the sale of interest in Griffith plant		0			39
Deferred income taxes and investment tax credits		43			(25	)
Pension and other postretirement benefits		(39	)		(115	)
Impairment of assets		99			0
Changes in working capital		(180	)		161
Other		(154	)		78
Net cash provided by operating activities		1,571			1,758
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(1,685	)		(1,394	)
Proceeds from the sale of the Latin American businesses		851			0
Proceeds from the sale of telecommunication operations		47			0
Proceeds from the sale of interest in the Griffith plant		0			110
Net sales (purchases) of emission allowances		74			(30	)
Net sales (purchases) of short-term investments		259			(296	)
Other investing activities		(160	)		(7	)
Net cash used in investing activities		(614	)		(1,617	)
Cash Flows from Financing Activities
Net (retirements) issuances of long-term debt		(231	)		450
Repurchase of common stock		(712	)		0
Payment of common stock dividends		(459	)		(409	)
Net increase (decrease) in short-term debt		61			(173	)
Issuance of preference stock, net of issuance costs		0			245
Other financing activities		15			(18	)
Net cash (used in) provided by financing activities		(1,326	)		95
Effect of Exchange Rates on Cash and Cash Equivalents		5			3
Net (Decrease) Increase in Cash and Cash Equivalents		(364	)		239
Cash and cash equivalents at beginning of period		794			555
Cash and cash equivalents at end of period	$	430		$	794

Key Indicators

Financial

	12 Months Ended Dec. 31, 2007	12 Months Ended Dec. 31, 2006
Dividends declared per share	$1.22	$1.10
Book value per share (a)	$14.96	$13.30
Market price per share (a)	$52.09	$35.84
Dividend yield (a)	2.3%	3.1%
Dividend payout ratio (b)	36%	49%
Dividend payout ratio - earnings from ongoing operations (b)(c)	47%	49%
Price/earnings ratio (a)(b)	15.3	16.0
Price/earnings ratio - earnings from ongoing operations (a)(b)(c)	20.0	15.9
Return on average common equity	24.85%	17.81%
Return on average common equity -  earnings from ongoing operations (c)	19.25%	17.69%

(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)
4th 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				$	109		$	35		$	82		$	226		$	0.29		$	0.09	$	0.22		$	0.60
	Special Items
		MTM adj's from energy-related, non-trading economic hedges			12									12			0.03								0.03
		Divestiture of Latin American businesses									211			211								0.56			0.56
		Impairment of certain transmission rights			(1	)								(1	)
		Workforce reductions			(4	)		(1	)		(4	)		(9	)		(0.01	)				(0.01	)		(0.02	)
			Total special items		7			(1	)		207			213			0.02					0.55			0.57
Reported earnings				$	116		$	34		$	289		$	439		$	0.31		$	0.09	$	0.77		$	1.17

Year to date Dec. 31, 2007				(millions of dollars)												(per share)
				Supply			PA Delivery			Int'l Delivery			Total			Supply			PA Delivery			Int'l Delivery			Total
Earnings from Ongoing Operations				$	546		$	155		$	301		$	1,002		$	1.42		$	0.40		$	0.78		$	2.60
	Special Items
		MTM adj's from energy-related, non-trading economic hedges			32									32			0.08									0.08
		PJM billing dispute (Q1, '07)			(1	)								(1	)
		Divestiture of Latin American businesses (Q1, '07; Q2, '07; Q3, '07; Q4, '07)									257			257									0.67			0.67
		Sale of telecommunication operations (Q1, '07; Q2, '07; Q3, '07; Q4, '07)			(23	)								(23	)		(0.06	)								(0.06	)
		Sale of gas and propane businesses (Q3, '07)						(23	)					(23	)					(0.06	)					(0.06	)
		Settlement of Wallingford cost-based rates (Q3, '07)			33									33			0.09									0.09
		Impairment of certain transmission rights (Q3, '07; Q4, '07)			(13	)								(13	)		(0.04	)								(0.04	)
		Change in U.K. tax rate (Q3, '07)									54			54									0.14			0.14
		Workforce reductions (Q4, '07)			(4	)		(1	)		(4	)		(9	)		(0.01	)					(0.01	)		(0.02	)
			Total special items		24			(24	)		307			307			0.06			(0.06	)		0.80			0.80
Reported earnings				$	570		$	131		$	608		$	1,309		$	1.48		$	0.34		$	1.58		$	3.40

Reconciliation of Business Segment Earnings from Ongoing Operations and Reported Earnings (Diluted)
4th 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				$	99		$	29		$	49	$	177		$	0.26		$	0.07		$	0.13	$	0.46
	Special Items
		MTM adj's from energy-related, non-trading economic hedges			3								3			0.01								0.01
		PJM billing dispute			(18	)		21					3			(0.05	)		0.06					0.01
		Sale of interest in Griffith			1								1
		Susquehanna workforce reduction			(3	)							(3	)		(0.01	)							(0.01	)
		Impairment of nuclear decom. trust investments			(3	)							(3	)		(0.01	)							(0.01	)
			Total special items		(20	)		21					1			(0.06	)		0.06
Reported earnings				$	79		$	50		$	49	$	178		$	0.20		$	0.13		$	0.13	$	0.46
Year to date Dec. 31, 2006				(millions of dollars)											(per share)
				Supply			PA Delivery			Int'l Delivery		Total			Supply			PA Delivery			Int'l Delivery		Total
Earnings from Ongoing Operations				$	456		$	146		$	267	$	869		$	1.18		$	0.38		$	0.69	$	2.25
	Special Items
		MTM adj's from energy-related, non-trading economic hedges			(11	)							(11	)		(0.03	)							(0.03	)
		PJM billing dispute (Q4, '06)			(18	)		21					3			(0.05	)		0.06					0.01
		Off-site remediation of ash basin leak (Q1, '06; Q2, '06)			6								6			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; Q4, '06)			(16	)							(16	)		(0.04	)							(0.04	)
		Synfuels impairment (Q2, '06)			(6	)							(6	)		(0.01	)							(0.01	)
		Write-off of Hurricane Isabel regulatory assets (Q3, '06)						(7	)				(7	)					(0.02	)				(0.02	)
		Realization of benefits related to Black Lung Trust assets (Q3, '06)						21					21						0.05					0.05
		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	)
			Total special items		(40	)		35			1		(4	)		(0.10	)		0.09					(0.01	)
Reported earnings				$	416		$	181		$	268	$	865		$	1.08		$	0.47		$	0.69	$	2.24

Operating - Domestic and International Electricity Sales

(millions of kwh)
	3 Months Ended Dec. 31				12 Months Ended Dec. 31
	2007	2006	Percent Change		2007	2006	Percent Change
Domestic Retail
Delivered (a)	9,071	8,607	5.4%		37,950	36,683	3.5%
Supplied	9,590	9,111	5.3%		40,074	38,810	3.3%
International Delivered
United Kingdom	6,997	7,001	(0.1%	)	27,888	28,776	(3.1%	)
Latin America (c)	534	1,153	N/A		3,764	4,576	N/A
Domestic Wholesale
East	5,179	4,374	18.4%		20,816	19,399	7.3%
West
NorthWestern Energy	571	838	(31.9%	)	2,809	3,356	(16.3%	)
Other West (b)	3,354	2,414	38.9%		12,050	9,847	22.4%

(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 businesses in El Salvador, Bolivia and Chile were sold on May 24, 2007, July 12, 2007, and November 6, 2007, respectively, and electricity deliveries were made up until the dates of sale.

“Earnings from ongoing operations” excludes the impact of unusual items. 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 and sales, growth, revenues, expenses and pension costs,  marketing performance, regulation, asset dispositions and acquisitions, corporate strategy, capital additions, 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 synthetic fuel tax credits and our synthetic fuel operations; weather conditions affecting customer energy usage and operating costs; competition in power markets; the effect of any business or industry restructuring; the profitability and liquidity of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating performance of plants and other facilities; 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; receipt of necessary government permits, approvals and rate relief; capital market conditions and decisions regarding capital structure; the impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries; the outcome of litigation against PPL Corporation and its subsidiaries; stock price performance; the market prices of equity securities and the impact on pension income and resultant cash funding requirements for defined benefit pension plans; the securities and credit ratings of PPL Corporation and its subsidiaries; political, regulatory or  economic conditions in states, regions or countries where PPL Corporation or its subsidiaries conduct business, including any potential effects of threatened or actual terrorism or war or other hostilities; foreign exchange rates; new state, federal or foreign legislation, including new tax legislation; and the commitments and liabilities of PPL Corporation and its subsidiaries.  Any such forward-looking statements should be considered in light of such important factors and in conjunction with PPL Corporation’s Form 10-K and other reports on file with the Securities and Exchange Commission.

#     #     #

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-99.2

                Exhibit 99.2

Fourth Quarter Earnings Call  January 31, 2008

 Cautionary Statements And Factors That  May Affect Future Results  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.  1

 Agenda  • 2007 Earnings and Review of  2010 Earnings Forecast and  Outlook  • Fourth Quarter and Year-End  Segment Results and Financial  Overview  • Operational Review  • Q&A  J. H. Miller  P. A. Farr  W. H. Spence  2

 Strong Fourth Quarter Results  Earnings from Ongoing Operations  Per  share  $0.46  $0.60  $0.00  $0.50  $1.00  4Q 2006 4Q 2007  3  Note: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations.  Per  share  $0.46  $1.17  $0.00  $0.50  $1.00  $1.50  4Q 2006 4Q 2007  Reported Earnings

 Outstanding 2007 Results  Earnings from Ongoing Operations  Per  share  $2.25  $2.60  $0.00  $0.50  $1.00  $1.50  $2.00  $2.50  $3.00  2006 2007  4  Note: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations.  Per  share  $2.24  $3.40  $0.00  $0.50  $1.00  $1.50  $2.00  $2.50  $3.00  $3.50  2006 2007  Reported Earnings

 $2.00  $2.50  $3.00  $3.50  $4.00  $4.50  $5.00  2007A* 2008 2010  Strong Long-Term Earnings Growth  Forecast  5  *Earnings from ongoing operations – See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.  $2.60  $2.35  $2.45  $4.00  $4.60  Per Share

 Ongoing Earnings Overview  $0.14$0.46$0.60Total  0.090.130.22International Delivery  0.020.070.09Pennsylvania Delivery  $ 0.03$0.26$0.29Supply  Change  Q4  2006  Q4  2007  6  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.  $0.35$2.25$2.60Total  0.090.690.78International Delivery  0.020.380.40Pennsylvania Delivery  $ 0.24$1.18$1.42Supply  Change20062007

 Supply Segment  Earnings Drivers  (0.05)O&M  0.06Synfuel  0.01Income taxes and other  $1.422007 EPS – Ongoing Earnings  0.24Total  0.02Margins – West  $0.20Margins – East  $1.182006 EPS – Ongoing Earnings  2007  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.  7

 Pennsylvania Delivery Segment  Earnings Drivers  0.02Discontinued Operations  $0.402007 EPS – Ongoing Earnings  0.02Total  (0.03)Income Taxes & Other  (0.01)O&M  $0.04Delivery Margins  $0.382006 EPS – Ongoing Earnings  2007  8  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.

 International Delivery Segment  Earnings Drivers  0.02Depreciation  (0.01)Latin American Operations  0.06Foreign currency translation  $0.782007 EPS – Ongoing Earnings  0.09Total  0.03Income Taxes & Other  (0.04)O&M  0.03Delivery Margins  $0.692006 EPS – Ongoing Earnings  2007  9  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.

 2007 Ongoing Earnings Contributions  10  Note: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations.  $2.00  $2.25  $2.50  $2.75  $3.00  2006A 2007A  $2.25  Energy  Margins  $0.22  U.K.  Liquidations  ($0.07)  O&M  ($0.10)  Int’l Tax  Benefit  $0.08  $2.60  Foreign  Currency  Translation  $0.06  PA  Delivery  Margins  $0.04  Income  Taxes &  Other  $0.03  Int’l  Delivery  Margins  $0.03Synfuel  Earnings  $0.06  Per Share

 $2.00  $2.25  $2.50  $2.75  2006A* 2007A* 2008E  2008 Earnings Forecast  11  *Earnings from ongoing operations – See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.  $2.25  $2.60  $2.35  $2.45  Per Share

 Expected 2008 Earnings Contributions  12  * Earnings from ongoing operations – See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.  **Midpoint of forecast  $2.00  $2.25  $2.50  $2.75  2007A*  $2.60  Energy  Margins  $0.06  Net Impact  of Asset  Divestiture  ($0.08)  O&M  $0.06  International  Tax Benefit  ($0.08)  $2.40**  Depreciation  ($0.05)  PA Delivery  Margins  $0.02  Synfuels  ($0.14)  Other  $0.01  Per Share  2008E

 Expected 2010 Earnings Contributions  13  *Midpoint of forecast  $2.00  $3.00  $4.00  $5.00  2008E 2010E  $2.40*  Increased  Energy  Margins  $2.28  $4.30*  Increased  O&M  $(0.15)  Increased  Interest  $(0.10)  Increased  Depreciation  $(0.07) Other  $(0.06)  Per Share

 Cash Flow Forecast  Millions  ($200)  $0  $200  $400  $600  $800  $1,000  2006A 2007A 2008E 2009E 2010E  Free cash flow before dividends  14  Note: See Appendix for the reconciliation of cash flow measures.

 Operational Update  • PUC approved distribution rate increase  effective January 1, 2008  • Bids for third PPL Electric Utilities  solicitation for 2010 POLR supply due  March 24, 2008; PUC approval expected  March 27, 2008  • Scrubbers expected to be completed on  schedule and on budget  15

 Operational Update (cont.)  • Generation uprates continue to progress  • Selected UniStar Nuclear Energy to  prepare COLA application based on  AREVA reactor design  • 2010/2011 RPM auction results due  February 1, 2008  • Asset expansion plan  16

 Scrubbers Expected to be Completed  on Budget and on Schedule  17  Q2-09Brunner Island 1 & 2  Q4-08Brunner Island 3  Q2-08Montour 1  Q1-08Montour 2  Scheduled In-Service Dates  December, 2006 December, 2007  Montour Scrubber Construction

 Growing Constrained Region in PJM  Increases Value of PPL Generation  Source: PJM web site. 18

 Expected Changes in Margins -2007 to 2008  *Includes power price and spark spread changes as well as value from portfolio management.  1700  1800  1900  2000  2007A 2008E  $/Million  $1,824  $1,866  Improved  Power  Value* $95  Higher  Nuclear  Generation  $26  Higher  Coal  Generation  $18  Higher  Hydro  Generation  $9  Higher  Fuel  Costs  ($74)  Loss of  MC 1&2  Energy  Value  ($32)  19

 Key Driver of Fleet Value: Open EBITDA  20  2010E  Generation Output -millions of MWh 56.2  Unhedged Gross Margin -millions * 3,712 $  O&M -millions (814) $  Open EBITDA -millions 2,898$  Market value of Hedges -millions * (254) $  * Based on forward market prices as of December 31, 2007

 2010 Margin Sensitivities  • PJM electricity price change of $1/MWh = ±$19M  (Based on average ATC price of $64/MWh)  • PJM capacity price change of $1/MWD = ±$1.7M  (Based on PJM capacity price of $191/MWD)  • Baseload generation availability change of 1% = ±$20M  (Based on an EQA of 91%)  21

 PPL

 Market Prices  EAST   PJM  On-Peak  Off-Peak  ATC (3)   WEST   Mid-Columbia   On-Peak  Off-Peak  ATC (3)   GAS (4)  NYMEX  TZ6NNY   PJM MARKET  HEAT  RATE (5)   Actual Forward (1) At 10/2007(2)  2007 2008 2009 2010 2010  9.4  $7.78  $6.86  $51  $45  $57  $57  $43  $73  8.8  $9.04  $8.08  $60  $53  $67  $64  $51  $79  8.98.88.9  $9.56$9.52$8.82  $8.59$8.52$7.81  $64$62$56  $56$54$48  $71$69$61  $69$68$63  $54$53$50  $85$84$78   (1) Market prices based on the average of broker quotes as of 12/31/2007.  (2) Prices at 10/2007 when 2010 earnings forecast of $4.00-$4.60 was developed.  (3) 24-hour average.  (4) NYMEX and TZ6NNY forward gas prices on 12/31/2007.  (5) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price.  A-1

 Current Hedge Positions -Electricity and Fuel  A-2  2008 2009 2010  Electricity Sales  East 96% 94% 61%  West 100% 80% 64%  Total 96% 92% 62%  Coal  East 94% 76% 70%  West 100% 100% 100%  Total 95% 82% 78%

 PPL Supply Business Overview  2008E  Production GWh  A-3  Gas/Oil  33%  Coal  37%  Nuclear  19%  Hydro8%  QFs 3%  2008E  Installed Capacity MW  Gas/  Oil  8%  Coal  54%  Nuclear  31%  Hydro  7%

 Proactive Coal Supply Management  Supports Growth in Margins  Projected 2008 Coal Supply  • Supply region diversity  • Fleet trains (1600 cars)  • Average delivered costs  – 4% to 5% annual  increase from  2007 to 2010  A-4  Central PA  20%  PRB  6%  Montana  Mine-mouth  20%  Central  Appalachia  13%  Southwest PA  41%

 Key Drivers/Challenges Through 2010 and Beyond  • Increased prices for POLR sales  • Expiration of supply contracts remarketed at current forward prices  • Power plant uprates and planned levels of equivalent  availability of generation  • Net economic benefits from the installation of scrubbers  at the Montour and Brunner Island coal-fired power plants  • Continued growth of marketing and trading activities  • Increased fuel and O&M costs  • Cost of compliance with evolving environmental regulation  • Stable electricity regulatory environment at Federal and State levels  A-5

 $188.54  $111.92 $111.92  $148.80  $210.11  $40.80 $40.80  $197.67 $191.32 $191.32  $102.04  $0.00  $20.00  $40.00  $60.00  $80.00  $100.00  $120.00  $140.00  $160.00  $180.00  $200.00  $220.00  $240.00  $260.00  Rest of Pool MAAC/APS Eastern MAAC Southwest MAAC  April 2007 Auction Results - 07/08 Planning Year  July 2007 Auction Results - 08/09 Planning Year  October 2007 Auction Results - 09/10 Planning Year  RPM Auction Continues to Provide Robust Prices  A-6  PJM RPM Auction Results  10/11 Auction results – Feb. 1, 2008  PPL Capacity Hedge Position  46%100%97% 97%  2010200920082007  $/MWD  $237.33

 0 20 40 60 80 100 120  2009  2009  2010  $/MWh  Shaped Energy & Capacity Including Congestion Other Adders Line Losses GRT  Load-following Components Example  A-7  Total  $105 $82.00*  $45.47 Total  $51.23  * Shaped price based on $63/MWh ATC energy price, $150/MW-Day capacity price, and congestion.  $48.29 Total  $54.41  Residential and Small C&I  Residential and Small C&I  All Customers  50.20  $10  Volumetric  Risk  Credit Ancillary  Green  $8 $5

 Expected 2008 to 2010 Margin Walk  A-8  1700  2100  2500  2900  3300  3700  2008E 2010E  $1,866  $3,307  Improved  Power  Value*  $969  Higher  Capacity  Value  $540  Higher  Nuclear  Generation  $61  Higher  Fuel  Costs  ($80)  Increased  Environmental  Costs  ($49)  *Includes power prices and spark spread changes as well as value from portfolio management.  $/Million

 Shrinking Reserve Margins Create  Potential Value for PPL  5%  10%  15%  20%  2007 2008 2009 2010  PJM Mid-Atlantic Expected Reserve Margin  PJM Required 15% Reserve Margin  A-9

 PPL’s Generation Portfolio  Total Domestic Generation: 11,279 MW  Planned Uprate Projects:  328 MW  *Reflects reduction of 60 MW expected loss due to increased plant usage during scrubber  operation.  A-10  Coal 3,468*  Nuclear 2,117  Oil 1,715  Gas 1,548  Hydro 337  CTs 446  QFs 347  East 9,978 MW*  Nuclear Uprate (2008-2010) 143  Hydro Uprate (2011) 125  Coal Uprate (2008-2009) 26  Coal 697  Hydro 604  West 1,301 MW  Coal Uprate (2008) 6  Hydro Uprate (2011) 28

 $0.82  $0.92  $1.00  $1.10  $1.22  $0.00  $0.25  $0.50  $0.75  $1.00  $1.25  2004 April  2005  October  2005  April  2006  April  2007  $/share  Annualized  Continued Dividend Growth  A-11

 PPL Electric Utilities Phase-in Plan Proposal  A-12  54-Month Phase-In Plan  Average Residential Customer - 1,000 kWh per month  $1,000.00  $1,100.00  $1,200.00  $1,300.00  $1,400.00  $1,500.00  $1,600.00  $1,700.00  $1,800.00  1/1/2008 7/1/2008 2009 2010 2011 2012  Annualized Electric Cost  ~6%  ~7%  ~7%  ~6%  ~6%

 Reconciliation of Cash from Operations  to Free Cash Flow before Dividends  (Millions of Dollars)  A-13  $994$154($100)$513$167Free Cash Flow before Dividends  (15)101493785Other Investing Activities-net  (1,490)(1,456)(1,609)(1,685)(1,394)Capital Expenditures  --(310)(310)(282)Transition Bond Repayment  Increase/(Decrease) in cash due to:  $2,499$1,509$1,815$1,571$1,758Cash from Operations  20102009200820072006  Note: 2007 free cash flow before dividends includes the net proceeds from the disposition of Latin American and domestic  telecommunication operations. 2008 forecast excludes expected net proceeds from the disposition of gas and propane businesses.

 Millions  $1,043 $1,030  $824 $750 $692  $514  $302 $281  $305 $404 $521  $511  $340 $298  $327 $336 $343  $351  $0  $400  $800  $1,200  $1,600  $2,000  2007A 2008E 2009E 2010E 2011E 2012E  Supply PA Delivery International Delivery  $1,685  $1,556  $1,376  $1,490$1,456  $1,609  Capital Expenditures by Segment  A-14

 Pennsylvania International  Supply Delivery Delivery Total  Qtr. Ending December 31, 2007  Reported earnings $116 $34 $289 $439  Special Items:  MTM adj's from energy-related, nontrading  economic hedges 12 12  Divestiture of Latin American businesses 211 211  Impairment of certain transmission rights (1) (1)  Workforce reductions (4) (1) (4) (9)  7 (1) 207 213  Earnings from ongoing operations $109 $35 $82 $226  Qtr. Ending December 31, 2006  Reported earnings $79 $50 $49 $178  Special Items:  MTM adj's from energy-related, nontrading  economic hedges 3 3  PJM billing dispute (18) 21 3  Sale of interest in Griffith 1 1  Susquehanna workforce reduction (3) (3)  Impairment of nuclear decom. trust investments (3) (3)  (20) 21 0 1  Earnings from ongoing operations $99 $29 $49 $177  Change excluding special items $10 $6 $33 $49  Reconciliation of Fourth Quarter Reported  Earnings and Earnings from Ongoing Operations  A-15  (Millions of Dollars)

 Pennsylvania International  Supply Delivery Delivery Total  Qtr. Ending December 31, 2007  Reported earnings $0.31 $0.09 $0.77 $1.17  Special Items:  MTM adj's from energy-related, nontrading  economic hedges 0.03 0.03  Divestiture of Latin American businesses 0.56 0.56  Workforce reductions (0.01) (0.01) (0.02)  0.02 0.00 0.55 0.57  Earnings from ongoing operations $0.29 $0.09 $0.22 $0.60  Qtr. Ending December 31, 2006  Reported earnings $0.20 $0.13 $0.13 $0.46  Special Items:  MTM adj's from energy-related, nontrading  economic hedges 0.01 0.01  PJM billing dispute (0.05) 0.06 0.01  Susquehanna workforce reduction (0.01) (0.01)  Impairment of nuclear decom. trust investments (0.01) (0.01)  (0.06) 0.06 0.00 0.00  Earnings from ongoing operations $0.26 $0.07 $0.13 $0.46  Change excluding special items $0.03 $0.02 $0.09 $0.14  Reconciliation of Fourth Quarter Reported  Earnings and Earnings from Ongoing Operations  A-16  (Dollars Per Share)

 Reconciliation of Year-to-Date Reported  Earnings and Earnings from Ongoing Operations  A-17  (Millions of Dollars)  Pennsylvania International  Supply Delivery Delivery Total  Year-to-Date December 31, 2007  Reported earnings $570 $131 $608 $1,309  Special Items:  MTM adj's from energy-related, nontrading  economic hedges 32 32  PJM billing dispute (1) (1)  Divestiture of Latin American businesses 257 257  Sale of telecommunication operations (23) (23)  Sale of gas and propane businesses (23) (23)  Settlement of Wallingford cost-based rates 33 33  Impairment of certain transmission rights (13) (13)  Change in U.K. tax rate 54 54  Workforce reductions (4) (1) (4) (9)  24 (24) 307 307  Earnings from ongoing operations $546 $155 $301 $1,002  Year-to-Date December 31, 2006  Reported earnings $416 $181 $268 $865  Special Items:  MTM adj's from energy-related, nontrading  economic hedges (11) (11)  PJM billing dispute (18) 21 3  Off-site remediation of ash basin leak 6 6  Enron reserve adjustment 11 1 12  Sale of interest in Griffith (16) (16)  Synfuels impairment (6) (6)  Write-off of Hurricane Isabel regulatory assets (7) (7)  Realization of benefits related to Black Lung Trust  assets 21 21  Susquehanna workforce reduction (3) (3)  Impairment of nuclear decom. trust investments (3) (3)  (40) 35 1 (4)  Earnings from ongoing operations $456 $146 $267 $869  Change excluding special items $90 $9 $34 $133

 Reconciliation of Year-to-Date Reported  Earnings and Earnings from Ongoing Operations  A-18  Pennsylvania International  Supply Delivery Delivery Total  Year-to-Date December 31, 2007  Reported earnings $1.48 $0.34 $1.58 $3.40  Special Items:  MTM adj's from energy-related, nontrading  economic hedges 0.08 0.08  Divestiture of Latin American businesses 0.67 0.67  Sale of telecommunication operations (0.06) (0.06)  Sale of gas and propane businesses (0.06) (0.06)  Settlement of Wallingford cost-based rates 0.09 0.09  Impairment of certain transmission rights (0.04) (0.04)  Change in U.K. tax rate 0.14 0.14  Workforce reductions (0.01) (0.01) (0.02)  0.06 (0.06) 0.80 0.80  Earnings from ongoing operations $1.42 $0.40 $0.78 $2.60  Year-to-Date December 31, 2006  Reported earnings $1.08 $0.47 $0.69 $2.24  Special Items:  MTM adj's from energy-related, nontrading  economic hedges (0.03) (0.03)  PJM billing dispute (0.05) 0.06 0.01  Off-site remediation of ash basin leak 0.02 0.02  Enron reserve adjustment 0.03 0.03  Sale of interest in Griffith (0.04) (0.04)  Synfuels impairment (0.01) (0.01)  Write-off of Hurricane Isabel regulatory assets (0.02) (0.02)  Realization of benefits related to Black Lung Trust  assets 0.05 0.05  Susquehanna workforce reduction (0.01) (0.01)  Impairment of nuclear decom. trust investments (0.01) (0.01)  (0.10) 0.09 0.00 (0.01)  Earnings from ongoing operations $1.18 $0.38 $0.69 $2.25  Change excluding special items $0.24 $0.02 $0.09 $0.35  (Dollars Per Share)

 Reconciliation of PPL’s Reported Earnings and  Earnings from Ongoing Operations  Actual  High Low  2008 2008 2007 2006 2005  Per Share Earnings from Ongoing Operations $2.45 $2.35 $2.60 $2.25 $2.08  Special items (net of taxes):  economic hedges 0.08 (0.03)  Write-off of Hurricane Isabel regulatory assets (0.02)  Synfuels impairment (0.01)  Sale of interest in Griffith (0.04)  Enron reserve adjustment 0.03  Stock-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)  Realization of benefits related to Black Lung Trust  assets 0.05  Susquehanna workforce reduction (0.01)  Impairment of nuclear decom. trust investments (0.01)  Divestiture of Latin American businesses 0.67  Sale of telecommunication operations (0.06)  Sale of gas and propane businesses (0.06)  Settlement of Wallingford cost-based rates 0.09  Impairment of certain transmission rights (0.04)  Change in U.K. tax rate 0.14  Workforce reductions (0.02)  0.00 0.00 0.80 (0.01) (0.31)  Reported Earnings Per Share $2.45 $2.35 $3.40 $2.24 $1.77  Note: Per share amounts are based on diluted shares outstanding.  Forecast  MTM adj's from energy-related, non-trading  A-19

 Credit Ratings  A-20  BBB Issuer Rating  AAAAaa Tax-Exempt Bonds*  STABLE STABLE STABLE Outlook  AAA3Senior  Secured Debt  F-2A-2P-2Commercial Paper  BBB+ BBBBaa3Preferred Stock  BBBABaa1Issuer  Rating  AAA3First  Mortgage Bonds  AAAAaa Tax-Exempt Bonds**  BBBBBBBaa3Preference Stock  PPL Electric Utilities  BBBBBBBaa2Senior  Unsecured Debt  BBBBB+  Baa3Subordinated Debt  STABLE STABLE STABLE Outlook  PPL Capital Funding  BBBBBB Issuer Rating  BBB+ BBBBaa2Senior Notes  F-2A-2P-2Commercial paper  STABLE STABLE STABLE Outlook  PPL Energy Supply  STABLE STABLE STABLE Outlook  BBBBBBBaa2Issuer Rating  PPL Corporation  Fitch Standard & Poor’s Moody’s  *Letter of Credit-Backed Security  **Insured Security

 Credit Ratings (cont.)  A-21  A-3Commercial Paper  ABBB+  Baa1Senior Unsecured Debt  F2A-2P-2Commercial Paper  STABLE STABLE STABLE Outlook  BBB+ BBB+ Baa1Issuer Rating  ABBB+  Baa1Senior Unsecured Debt  F2A-2Commercial Paper  STABLE STABLE STABLE Outlook  Western Power Distribution (South West) PLC  BBB+ BBB+ Issuer Rating  Western Power Distribution (South Wales) PLC  STABLE STABLE STABLE Outlook  STABLE STABLE STABLE Outlook  BBBBBB-Issuer Rating  WPD Holdings LLP  BBBBBBBaa3Issuer  Rating  BBBBBBBaa3Senior  Unsecured Debt  A-3Commercial Paper  WPD Holdings Limited  BBBBBBBaa3Pass- Through Certificates  STABLE STABLE Outlook  PPL Montana  AAAAAAAaa Transition Bonds  PPL Transition Bond Co.  Fitch Standard & Poor’s Moody’s

 Forward-Looking Information Statement  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, regulation, cash flows, credit profile, financing,  dividends, 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 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.  A-22

 Definitions of Financial Measures  A-23  “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.  “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 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.