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):  May 2, 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 May 2, 2008, PPL Corporation (“PPL”) issued a press release announcing its financial results for the quarter ended March 31, 2008, and other business matters. A copy of the press release is attached as Exhibit 99.1 and incorporated herein by reference.

Section 7 - Regulation FD

Item 7.01 Regulation FD Disclosure

On May 2, 2008, at 9:00 a.m. (Eastern 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 March 31, 2008, and other business matters. A copy of the slides to be used during the webcast is attached as Exhibit 99.2 and 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 May 2, 2008, announcing PPL’s financial results for the quarter ended March 31, 2008, and other business matters.
	99.2 -	Slides to be used on the May 2, 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:  May 2, 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 Reports First-Quarter 2008 Earnings;

Reaffirms 2008 and 2010 Earnings Forecasts

·   Reported earnings per share up versus a year ago, driven by special items in both periods, stronger results in international delivery business

·   Ongoing earnings per share down versus a year ago on loss of synfuel-related benefits, lower supply business margins, offset by stronger results in international delivery business

ALLENTOWN, Pa. (May 2, 2008) ― Driven by stronger results in its international delivery business segment and special items, PPL Corporation (NYSE: PPL) reported higher first-quarter 2008 earnings compared with a year ago, the company announced Friday (5/2).

PPL’s reported earnings in the most recent quarter were $0.69 per share, 33 percent higher than a year ago. The increase was primarily due to a net credit of $0.08 per share in special items recorded in the first quarter of 2008 compared with a net charge of $0.13 per share in special items recorded during the same period a year ago.

PPL’s first-quarter 2008 earnings from ongoing operations, which exclude special items, were 6 percent lower than a year ago, at $0.61 per share, primarily due to the expiration of the federal synfuel tax credit program at the end of 2007. This decline reflects a loss of $0.08 per share in synfuel benefits, $0.03 per share in lower energy margins from the company’s U.S. power plants, and $0.03 per share from the loss in earnings from PPL’s Latin American businesses as a result of their sales in 2007. Higher earnings of $0.10 per share from PPL’s U.K. electricity delivery businesses, including a $0.04 per share increase in delivery margins, partially offset these declines.

“PPL is solidly on target to achieve its 2008 ongoing earnings forecast,” said James H. Miller, PPL’s chairman, president and chief executive officer. “As we communicated late last year, our 2008 forecast incorporates the loss of several contributors to 2007 ongoing earnings, including synfuel benefits, the operating earnings of assets divested last year and tax benefits related to our international operations. We expect the loss of these items, which contributed 34 cents per share to our 2007 annual ongoing earnings, to be partially offset in 2008 by higher energy margins, stronger delivery margins and lower operating costs.

“Consistent with our results in 2007, we expect virtually all of the 2008 margin growth in our supply business segment to occur during the second half of the year,” Miller said. “We expect margin growth to be driven primarily by the replacement of expiring supply obligations with higher-margin wholesale energy contracts, by higher base load generation, and by expanded energy marketing and trading activities.”

Miller said first-quarter 2008 earnings from PPL’s regulated Pennsylvania delivery operations were essentially flat compared with a year ago. However, first-quarter earnings at PPL’s regulated electricity distribution businesses in the U.K. were higher compared with a year ago.

“In the current business environment, all of our business segments are performing as expected, and they are successfully executing their respective business plans,” Miller said.

PPL reaffirmed its 2008 forecast of earnings from ongoing operations 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. In addition, U.S. income tax benefits realized in 2007 are not likely to recur at a similar level in 2008. The company’s 2008 forecast of reported earnings is $2.43 to $2.53 per share, reflecting special items recorded through March 31, 2008.

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

“We are executing on the tactical plans to achieve the 2010 forecast,” Miller said. “One of our top priorities is to enhance the value of our electricity generation fleet, as well as to increase the value of our energy marketing and trading operations. We are extracting additional value from a wider array of wholesale products and services in more markets, beyond the firm electricity sales that are backed by our power plants.”

First-Quarter 2008 Earnings Details

Reported earnings in the first quarter of 2008 included special items of $0.08 per share in net credits. For the first quarter of 2008, PPL recorded a special credit of $0.13 per share related to the mark-to-market impacts of energy-related, non-trading economic hedges. The mark-to-market gains or losses on the energy hedges will reverse as the hedging contracts settle in the future.

PPL also recorded special charges of $0.04 per share as a result of a valuation adjustment to prior-year synfuel tax credits and $0.01 per share for a groundwater litigation settlement offer related to the Colstrip generating plant in Montana. Synfuel operations ceased production at the end of 2007. In the first quarter of 2007, PPL recorded net special charges of $0.13 per share, which included an $0.11 per share special charge related to the sales of its Latin American electricity delivery businesses.

(See tables for other special items.)

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 nonrecurring as well as the mark-to-market impact of energy-related, non-trading economic hedges.

(Dollars in millions, except for per share amounts)

	1st Quarter
	2008	2007	% Change
Reported Earnings	$260	$203	+28%
Reported Earnings per Share	$0.69	$0.52	+33%
Earnings from Ongoing Operations	$228	$252	-10%
Per Share Earnings from Ongoing Operations	$0.61	$0.65	-6%

(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-Quarter 2008 Earnings by Business Segment

The following chart shows PPL’s earnings by business segment for the first quarter of 2008, compared with the same period of 2007.

	1st Quarter
	2008		2007
	(per share)
Earnings from Ongoing Operations
Supply	$	0.19	$	0.32
Pennsylvania Delivery		0.16		0.15
International Delivery		0.26		0.18
Total	$	0.61	$	0.65
Special Items
Supply	$	0.08	$	(0.02	)
Pennsylvania Delivery		-		-
International Delivery		-		(0.11	)
Total	$	0.08	$	(0.13	)
Reported Earnings
Supply	$	0.27	$	0.30
Pennsylvania Delivery		0.16		0.15
International Delivery		0.26		0.07
Total	$	0.69	$	0.52

(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 declined in the first quarter of 2008 by $0.13 per share, or 41 percent, compared with a year ago. This decline was primarily driven by an $0.08 per share loss of synfuel-related benefits as a result of the expiration of federal synfuel tax credits at the end of 2007 and lower wholesale energy margins in the eastern U.S.

The change in energy margins was the net result of higher average fuel prices; lower base load generation following the shutdown of two coal-fired units at PPL’s Martins Creek power plant in Pennsylvania; and improved margins from energy marketing and trading activities. In addition, this business segment incurred higher operating expenses in the current quarter compared with a year ago.

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 increased in the first quarter of 2008 by $0.01 per share, or 7 percent, compared with a year ago. This increase was primarily driven by higher electricity delivery revenues, which were a result of load growth and PPL Electric Utilities’ base rate increase that went into effect on Jan. 1, 2008. These positive factors were partially offset by higher operating expenses.

International Delivery Segment

PPL’s international delivery business segment primarily includes the regulated electricity distribution companies in the U.K. and included the operating results of the Latin American companies prior to their sales in 2007.

Per share earnings from ongoing operations for PPL’s international delivery business segment increased in the first quarter of 2008 by $0.08 per share, or 44 percent, compared with a year ago. This increase was primarily driven by higher U.K. delivery revenues, due to higher rates incorporating the annual regulatory adjustment for inflation; lower operating expenses; and lower U.K. income taxes. These positive benefits were partially offset by the loss in earnings from PPL’s Latin American businesses as a result of their sales in 2007.

2008 Ongoing Earnings Forecast by Business Segment

Earnings (per share)	2008 (forecast)	2007 (actual)
	Midpoint
Supply	$1.31	$1.42
Pennsylvania Delivery	0.42	0.40
International Delivery	0.67	0.78
Total	$2.40	$2.60

Supply Segment

PPL projects lower earnings from ongoing operations in its supply business segment in 2008 compared with 2007 as a result of the loss of synfuel-related benefits and higher depreciation and operating expenses for scrubbers that have been or will be installed during 2008 at its Montour and Brunner Island coal-fired power plants, both in Pennsylvania. 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 compared with 2007. PPL expects most of the increase in energy margins to be realized in the second half of 2008.

Pennsylvania Delivery Segment

PPL projects higher earnings from ongoing operations for its Pennsylvania delivery business segment, driven by higher revenues as a result of PPL Electric Utilities’ new distribution rates, partially offset by higher operating expenses.

International Delivery Segment

PPL projects the earnings from ongoing operations 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 certain U.S. income tax benefits realized in 2007. Partially offsetting the impact of these negative earnings drivers are higher revenues in PPL’s U.K. electricity distribution businesses and lower U.K. pension expense.

2010 Earnings Forecast

PPL also reaffirmed its 2010 earnings forecast 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 in the competitive marketplace and the 2010 capacity prices set in PJM Interconnection’s auctions, 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 webcast of management’s teleconference with financial analysts about first-quarter 2008 financial results at 9 a.m. EDT Friday, May 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 702-696-4769 (ID# 44159434).

PPL CORPORATION AND SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED FINANCIAL INFORMATION (a)

Condensed Consolidated Balance Sheet (Unaudited)

(Millions of Dollars)

	March 31, 2008			Dec. 31, 2007
Assets
Cash and cash equivalents	$	495		$	430
Assets held for sale		315			318
Other current assets		3,179			2,420
Investments		612			608
Property, plant and equipment
Electric plant		20,244			20,109
Gas and oil plant		67			66
Other property		197			202
		20,508			20,377
Less: accumulated depreciation		7,850			7,772
		12,658			12,605
Recoverable transition costs		497			574
Goodwill and other intangibles		1,313			1,326
Regulatory and other noncurrent assets		1,986			1,691
Total assets	$	21,055		$	19,972
Liabilities and Equity
Short-term debt (including current portion of long-term debt)	$	838		$	770
Liabilities held for sale		58			68
Other current liabilities		2,660			2,044
Long-term debt (less current portion)		7,067			6,890
Deferred income taxes and investment tax credits		2,113			2,192
Other noncurrent liabilities		2,415			2,132
Minority interest		19			19
Preferred securities of a subsidiary		301			301
Earnings reinvested		3,583			3,448
Common stock and capital in excess of par value		2,161			2,176
Accumulated other comprehensive loss		(160	)		(68	)
Total liabilities and equity	$	21,055		$	19,972

(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 March 31,						12 Months Ended March 31,
		2008(a)			2007(a)(b)			2008(a)		2007(a)(b)
Operating Revenues
	Utility	$	1,120		$	1,081		$	4,153	$	3,921
	Unregulated retail electric		34			22			114		88
	Wholesale energy marketing		258			249			1,481		1,446
	Net energy trading margins		(2	)		9			30		34
	Energy-related businesses		116			185			700		635
			1,526			1,546			6,478		6,124
Operating Expenses
	Fuel and energy purchases		298			355			1,569		1,700
	Other operation and maintenance		377			325			1,425		1,291
	Amortization of recoverable transition costs		76			81			305		291
	Depreciation		112			116			442		435
	Taxes, other than income		75			78			295		289
	Energy-related businesses		108			202			668		682
			1,046			1,157			4,704		4,688
Operating Income			480			389			1,774		1,436
Other Income - net			8			27			76		82
Interest Expense			108			120			462		455
Income from Continuing Operations Before
	Income Taxes, Minority Interest and
	Dividends on Preferred Securities of a Subsidiary		380			296			1,388		1,063
Income Taxes			129			69			330		246
Minority Interest			0			1			2		4
Dividends on Preferred Securities of a Subsidiary			5			5			18		18
Income from Continuing Operations			246			221			1,038		795
Income (Loss) from Discontinued Operations (net of   income taxes)			14			(18	)		307		(7	)
Net Income		$	260		$	203		$	1,345	$	788
Earnings per share of common stock – basic
	Earnings from ongoing operations	$	0.61		$	0.66		$	2.58	$	2.25
	Special items		0.09			(0.13	)		0.99		(0.19	)
	Net Income	$	0.70		$	0.53		$	3.57	$	2.06
Earnings per share of common stock – diluted
	Earnings from ongoing operations	$	0.61		$	0.65		$	2.56	$	2.22
	Special items		0.08			(0.13	)		0.97		(0.19	)
	Net Income	$	0.69		$	0.52		$	3.53	$	2.03
Average shares outstanding (thousands)
	Basic		372,782			384,793			377,795		381,923
	Diluted		376,602			389,168			382,204		387,590

(a)	Earnings in the 2008 and 2007 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 2007 have been reclassified to conform to the current year presentation. This includes the reclassification of PPL Gas Utilities Corporation accounts to Discontinued Operations.

Condensed Consolidated Statements of Cash Flows (Unaudited)

(Millions of Dollars)

	3 Months Ended March 31,
	2008			2007
Cash Flows from Operating Activities
Net income	$	260		$	203
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		112			124
Amortizations - recoverable transition costs and other		94			108
Unrealized gain on derivatives and other hedging activities		(63	)		(22	)
Deferred income taxes and investment tax credits		(38	)		(32	)
Impairment of assets		0			65
Changes in working capital		39			(175	)
Other		20			15
Net cash provided by operating activities		424			286
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(330	)		(341	)
Net (purchases) sales of emission allowances		(18	)		26
Net (purchases) sales of other investments		(25	)		5
Other investing activities		(89	)		11
Net cash used in investing activities		(462	)		(299	)
Cash Flows from Financing Activities
Net issuances of long-term debt		308			304
Repurchase of common stock		(38	)		0
Payment of common stock dividends		(113	)		(105	)
Net (decrease) increase in short-term debt		(50	)		29
Other financing activities		1			(7	)
Net cash provided by financing activities		108			221
Effect of Exchange Rates on Cash and Cash Equivalents		(2	)		(1	)
Net Increase in Cash and Cash Equivalents		68			207
Cash and cash equivalents at beginning of period		430			794
Cash and cash equivalents included in assets held for sale		(3	)		(36	)
Cash and cash equivalents at end of period	$	495		$	965

Key Indicators

Financial

	12 Months Ended March 31, 2008	12 Months Ended March 31, 2007
Dividends declared per share	$1.25	$1.13
Book value per share (a)	$14.97	$13.68
Market price per share (a)	$45.92	$40.90
Dividend yield (a)	2.7%	2.8%
Dividend payout ratio (b)	35%	56%
Dividend payout ratio - earnings from ongoing operations (b)(c)	49%	51%
Price/earnings ratio (a)(b)	13.0	20.1
Price/earnings ratio - earnings from ongoing operations (a)(b)(c)	17.9	18.4
Return on average common equity	25.13%	15.72%
Return on average common equity -  earnings from ongoing operations (c)	18.71%	17.03%

(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)
1st Quarter 2008				(millions of dollars)												(per share)
				Supply			PA Delivery			Int'l Delivery			Total			Supply			PA Delivery			Int'l Delivery			Total
Earnings from Ongoing Operations				$	70		$	60		$	98		$	228		$	0.19		$	0.16		$	0.26		$	0.61
	Special Items
		MTM adj's from energy-related, non-    trading economic hedges			50									50			0.13									0.13
		Synfuel tax adjustment			(13	)								(13	)		(0.04	)								(0.04	)
		Colstrip groundwater litigation			(5	)								(5	)		(0.01	)								(0.01	)
			Total special items		32									32			0.08									0.08
Reported earnings				$	102		$	60		$	98		$	260		$	0.27		$	0.16		$	0.26		$	0.69
12 Months Ended March 31, 2008				(millions of dollars)												(per share)
				Supply			PA Delivery			Int'l Delivery			Total			Supply			PA Delivery			Int'l Delivery			Total
Earnings from Ongoing Operations				$	489		$	157		$	331		$	977		$	1.28		$	0.41		$	0.87		$	2.56
	Special Items
		MTM adj's from energy-related, non-    trading economic hedges			71									71			0.19									0.19
		Workforce reduction (Q4, '07)			(4	)		(1	)		(4	)		(9	)		(0.01	)					(0.01	)		(0.02	)
		Sale of Latin American businesses     (Q2, '07; Q3, '07; Q4, '07)									299			299									0.78			0.78
		Sale of domestic telecommunication     operations (Q2, '07; Q3, '07; Q4, '07)			(5	)								(5	)		(0.01	)								(0.01	)
		Colstrip groundwater litigation    (Q1, ’08)			(5	)								(5	)		(0.01	)								(0.01	)
		Sale of gas and propane businesses    (Q3, '07; Q4, '07)						(44	)					(44	)					(0.11	)					(0.11	)
		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;    Q4, '07)									54			54									0.14			0.14
		Synfuel tax adjustment (Q1, '08)			(13	)								(13	)		(0.04	)								(0.04	)
			Total special items		64			(45	)		349			368			0.17			(0.11	)		0.91			0.97
Reported earnings				$	553		$	112		$	680		$	1,345		$	1.45		$	0.30		$	1.78		$	3.53

Reconciliation of Business Segment Earnings from Ongoing Operations and Reported Earnings (Diluted)
1st 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				$	126		$	58		$	68		$	252		$	0.32		$	0.15		$	0.18		$	0.65
	Special Items
		MTM adj's from energy-related, non-    trading economic hedges			10									10			0.03									0.03
		PJM billing dispute			(1	)								(1	)
		Sale of Latin American businesses									(40	)		(40	)								(0.11	)		(0.11	)
		Sale of domestic telecommunication     operations			(18	)								(18	)		(0.05	)								(0.05	)
			Total special items		(9	)					(40	)		(49	)		(0.02	)					(0.11	)		(0.13	)
Reported earnings				$	117		$	58		$	28		$	203		$	0.30		$	0.15		$	0.07		$	0.52
12 Months Ended March 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				$	455		$	149		$	255		$	859		$	1.18		$	0.38		$	0.66		$	2.22
	Special Items
		MTM adj's from energy-related, non-    trading economic hedges			(8	)								(8	)		(0.02	)								(0.02	)
		PJM billing dispute (Q4, '06; Q1, '07)			(18	)		20						2			(0.05	)		0.06						0.01
		Off-site remediation of ash basin leak     (Q2, '06)			5									5			0.01									0.01
		Reduction in Enron reserve (Q2, '06)			2									2			0.01									0.01
		Sale of interest in Griffith (Q2, '06;    Q4, '06)			(17	)								(17	)		(0.04	)								(0.04	)
		Impairment of synfuel-related assets      (Q2, '06)			(6	)								(6	)		(0.01	)								(0.01	)
		Reversal of cost recovery – Hurricane    Isabel (Q3, '06)						(6	)					(6	)					(0.02	)					(0.02	)
		Realization of benefits related to Black     Lung Trust assets (Q3, '06)						21						21						0.05						0.05
		Workforce reduction (Q4, '06)			(3	)								(3	)		(0.01	)								(0.01	)
		Impairment of nuclear decom. trust     investments (Q4, '06)			(3	)								(3	)		(0.01	)								(0.01	)
		Sale of Latin American businesses    (Q1, '07)									(40	)		(40	)								(0.11	)		(0.11	)
		Sale of domestic telecommunication    operations (Q1, '07)			(18	)								(18	)		(0.05	)								(0.05	)
			Total special items		(66	)		35			(40	)		(71	)		(0.17	)		0.09			(0.11	)		(0.19	)
Reported earnings				$	389		$	184		$	215		$	788		$	1.01		$	0.47		$	0.55		$	2.03

Operating - - Domestic and International Electricity Sales

(millions of kwh)
	3 Months Ended March 31				12 Months Ended March 31
	2008	2007	Percent Change		2008	2007	Percent Change
Domestic Retail
Delivered (a)	10,569	10,307	2.5%		38,211	37,057	3.1%
Supplied	11,123	10,842	2.6%		40,356	39,175	3.0%
International Delivered
United Kingdom	7,754	7,724	0.4%		27,917	28,423	(1.8%	)
Domestic Wholesale
East	5,929	4,248	39.6%		22,497	18,899	19.0%
West
NorthWestern Energy	567	834	(32.0%	)	2,542	3,366	(24.5%	)
Other West	3,530	2,731	29.3%		14,625	9,541	53.3%

(a) Electricity delivered to retail customers represents the kwh delivered to customers within PPL Electric Utilities Corporation’s service territory.

“Earnings from ongoing operations” excludes the impact of special items. Special items include charges, credits or gains that are unusual or nonrecurring 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 because the mark-to-market gains or losses on the energy hedges will reverse as the hedging contracts settle in the future. 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; 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

First Quarter Earnings Call  May 2, 2008  Exhibit 99.2

 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  • First Quarter 2008 Earnings and  Review of 2008 and 2010  Earnings Forecast and Outlook  • First Quarter Segment Results  and Financial Overview  • Operational Review  • Q&A  J. H. Miller  P. A. Farr  W. H. Spence  2

 First Quarter Results  Earnings from Ongoing Operations  Per  share  $0.65 $0.61  $0.00  $0.50  $1.00  1Q 2007 1Q 2008  3  Note: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations.  Per  share  $0.52  $0.69  $0.00  $0.50  $1.00  1Q 2007 1Q 2008  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  4  *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

 Pennsylvania Update  • Legislative discussions continuing in four areas:  – Demand management, conservation  – Procurement  – Rate Mitigation  – Energy Independence fund  • PPL efforts  – Continuing discussions with legislators, regulators,  administration, other utilities --many areas of  agreement  – One-half of 2010 needs now under contract  – Phase-in plan approval delayed  5

 Ongoing Earnings Overview  $(0.04)$0.65$0.61Total  0.080.180.26International Delivery  0.010.150.16Pennsylvania Delivery  $(0.13)$0.32$0.19Supply  Change  Q1  2007  Q1  2008  6  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.

 Supply Segment  Earnings Drivers  (0.03)O&M  (0.08)Synfuel  0.01Income taxes and other  $0.192008 EPS – Ongoing Earnings  (0.13)Total  (0.01)Margins – West  $(0.02)Margins – East  $0.322007 EPS – Ongoing Earnings  1st Quarter  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.  7

 Pennsylvania Delivery Segment  Earnings Drivers  $0.162008 EPS – Ongoing Earnings  0.01Total  (0.02)O&M  $0.03Delivery Margins  $0.152007 EPS – Ongoing Earnings  1st Quarter  8  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.

 International Delivery Segment  Earnings Drivers  (0.03)Latin American Operations  $0.262008 EPS – Ongoing Earnings  0.08Total  0.05Income Taxes & Other  0.02O&M  $0.04Delivery Margins  $0.182007 EPS – Ongoing Earnings  1st Quarter  9  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.

 Expected 2008 Earnings Contributions  10  * 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  $3.00  2007A*  $2.60  Energy  Margins  $0.10 Net Impact  of Asset  Divestiture  ($0.08)  O&M  $0.04  International  Tax Benefit  ($0.08)  $2.40**  Depreciation  ($0.05)  Delivery  Margins  $0.06  Synfuels  ($0.18)  Other  ($0.01)  Per Share  2008E*

 $2.00  $3.00  $4.00  $5.00  2008E* 2010E  Expected 2010 Earnings Contributions  11  * Earnings from ongoing operations – See Appendix for the per share reconciliation of report earnings and earnings from ongoing operations  ** Midpoint of forecast  $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  2007A 2008E 2009E 2010E  Free cash flow before dividends  12  Note: See Appendix for the reconciliation of cash flow measures.

 $0.82  $0.92  $1.00  $1.10  $1.22  $1.34  $0.00  $0.25  $0.50  $0.75  $1.00  $1.25  $1.50  2004 April  2005  October  2005  2006 2007 2008  $/Share  Annualized  Continued Dividend Growth  713

 PPL EU Completed Third RFP for 2010  14  • Solicitation for 850 MWs of residential and small  commercial and industrial load  • 50% of 2010 expected load now under contract  • PUC approval of winning bids received March  27, 2008  • Prices contracted in the third auction were about  $3/MWH higher than the previous auction  • Fourth solicitation bids due September 29, PUC  approval expected October 2

 Scrubbers Expected to be Completed  on Budget and on Schedule  Q2-09Brunner Island 1 & 2  Q4-08Brunner Island 3  Being commissioned Montour 1  In Service 3/8/2008 Montour 2  Scheduled In-Service Dates  December, 2006 March, 2008  Montour Scrubber Construction  1115

 Expansion of Generation Portfolio  • Agreed to acquire long-term tolling  agreement of 664 MW natural-gas  combined-cycle plant in PJM  • Susquehanna Unit 1 uprate, phase 1, is  now completed  • Progressing on other previously  announced uprate projects  • Investing in renewable energy projects  16

 Nuclear Development Schedule  Late 2008 (Estimate)Order Long Lead-Time Materials  2016 to 2018 (Estimate)Commercial Operation  2011 (Estimate)Begin Construction  2011 (Estimate)NRC Approval of COLA  2009Early Site Work  Sept. 2008Submit DOE Loan Application  Sept. 2008Submit COLA  13PPL has not yet decided to move forward with construction.  17

 RPM Update  • In April 2008, FERC denied PJM request to increase CONE price in capacity pricing formula beginning with the 2011/2012 RPM auction  • FERC issued a separate April 2008 order regarding Duquesne, which stated that PJM may grant network transmission rights to capacity resources in the Duquesne zone for 2011/2012 RPM auction  • On April 29, PPL, CEG and MIR filed with FERC requesting clarification of the Duquesne order  • The impact of including Duquesne’s capacity resources is expected to reduce capacity prices for 2011/2012RPM auction in May 2008 and possibly future auctions  • There could be an offsetting positive impact on heat rates  18

 Hedge and Supply Update • Recent supply and demand events have produced higher coal prices  • PPL consumes approximately 9.2 million tons of coal in the east, and 3.3 million tons of coal in  the west  – In the west, 100% hedged 2008-2010  – In the east, 89% hedged 2008-2010  • Our 1,600 fleet rail cars have been helpful in maintaining our deliveries  • Evaluating options to blend other coal sources at eastern units  19

 Current Hedge Positions -Electricity and Fuel  20  2008 2009 2010  Electricity Sales  East 98% 97% 66%  West 100% 81% 66%  Total 99% 94% 66%  Uranium 100% 100% 100%  Coal  East 99% 91% 77%  West 100% 100% 100%  Total 99% 93% 83%  Average Delivered  Coal Price Increase 10%-15% 10%-15% 3%-7%  Note: As of 3/31/2008

 Key Driver of Fleet Value: Open EBITDA  21  2010E  Generation Output -millions of MWH 56.2  Implied Gross Margin -millions * 3,698 $  O&M - -millions (814) $  Open EBITDA -millions $ 2,884  Below-Market Value of Hedges -millions * (240) $  * Based on forward market prices as of March 31, 2008

 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  8.58.48.4  $10.20$10.93$10.92  $9.04$9.74$9.87  $68$71$71  $60$62$63  $75$78$78  $72$76$76  $59$62$61  $87$91$92   (1) Market prices based on the average of broker quotes as of 3/31/2008.  (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 3/31/2008.  (5) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price.  A-1

 PPL Supply Business Overview  2008E  Production GWH  A-2  Gas/Oil  33%  Coal  37%  Nuclear  19%  Hydro8%  QFs 3%  2008E  Installed Capacity MW  Gas/  Oil  8%  Coal  54%  Nuclear  31%  Hydro  7%

 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-3

 Summary of Completed RFP’s  Small Commercial and  Residential Customers   Industrial Customers   Round 1 (July 2007)  Retail Price Per MWH $101.77 $105.11  Round 2 (October 2007)  Retail Price Per MWH $105.08 $105.75  Round 3 (March 2008)  Retail Price Per MWH $108.80 $108.76  Average  Retail Price Per MWH  Increase in 2010  $105.22  34.4%  $106.54  23.8% to 42.8%   A-4

 62.00  64.00  66.00  68.00  70.00  72.00  74.00  76.00  1-Jan4-Jan7-Jan10-Jan13-Jan16-Jan19-Jan22-Jan25-Jan28-Jan31-Jan3-Feb6-Feb9-Feb12-Feb15-Feb18-Feb21-Feb24-Feb27-Feb1-Mar4-Mar7-Mar10-Mar13-Mar16-Mar19-Mar22-Mar25-Mar  7.00  7.50  8.00  8.50  9.00  9.50  10.00  $/MWH  2008 PJM Power & Natural Gas Prices  West Hub 2010 ATC  Power  2010 NYMEX Natural Gas  $/MMBtu  9 A-5  3/24 – Bids due for PPL  EU 3rd RFP

 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-6  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

 PPL’s Generation Portfolio  Total Domestic Generation: 11,358 MW  Planned Uprate Projects:  331 MW  * Reflects reduction of 60 MW expected loss due to increased  plant usage during scrubber operation.  A-7  Coal 3,483*  Nuclear 2,117  Oil 1,716  Gas 1,582  Hydro 343  CTs 474  QFs 356  East 10,071 MW*  Coal 683  Hydro 604  West 1,287 MW  Coal Uprate (2008) 6  Hydro Uprate (2011) 28  Nuclear Uprate (2008-2010) 143  Hydro Uprate (2009, 2011) 128  Coal Uprate (2008-2009) 26  *

 Reconciliation of Cash from Operations  to Free Cash Flow before Dividends  (Millions of Dollars)  A-8  $972 $153 ($29) $513Free Cash Flow before Dividends  (65) 74 66 937 Other Investing Activities-net  (1,490) (1,456) (1,609) (1,685) Capital Expenditures  --(310) (310) Transition Bond Repayment   Increase/(Decrease) in cash due to:  $2,527 $1,535 $1,824 $1,571 Cash from Operations  2010 2009 2008 2007  Note: 2007 free cash flow before dividends includes the net proceeds from the disposition of Latin American and domestic  telecommunication operations. 2008 forecast includes expected net proceeds from the disposition of gas and propane businesses,  as well as the investment in the Ironwood tolling agreement.

 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-9

 Reconciliation of First Quarter Reported  Earnings and Earnings from Ongoing Operations  A-10  (Millions of Dollars)  Pennsylvania International  Supply Delivery Delivery Total  Qtr. Ending March 31, 2008  Reported earnings $102 $60 $98 $260  Special Items:  MTM adj's from energy-related, non-  trading economic hedges 50 50  Synfuel tax adjustment (13) (13)  Colstrip groundwater litigation (5) (5)  32 32  Earnings from ongoing operations $70 $60 $98 $228  Qtr. Ending March 31, 2007  Reported earnings $117 $58 $28 $203  Special Items:  MTM adj's from energy-related, non-  trading economic hedges 10 10  PJM billing dispute (1) (1)  Sale of Latin American businesses (40) (40)  Sale of domestic telecommunication operations (18) (18)  (9) (40) (49)  Earnings from ongoing operations $126 $58 $68 $252  Change excluding special items ($56) $2 $30 ($24)

 Reconciliation of First Quarter Reported  Earnings and Earnings from Ongoing Operations  A-11  Pennsylvania International  Supply Delivery Delivery Total  Qtr. Ending March 31, 2008  Reported earnings $0.27 $0.16 $0.26 $0.69  Special Items:  MTM adj's from energy-related, non-  trading economic hedges 0.13 0.13  Synfuel tax adjustment (0.04) (0.04)  Colstrip groundwater litigation (0.01) (0.01)  0.08 0.08  Earnings from ongoing operations $0.19 $0.16 $0.26 $0.61  Qtr. Ending March 31, 2007  Reported earnings $0.30 $0.15 $0.07 $0.52  Special Items:  MTM adj's from energy-related, non-  trading economic hedges 0.03 0.03  Sale of Latin American businesses (0.11) (0.11)  Sale of domestic telecommunication operations (0.05) (0.05)  (0.02) (0.11) (0.13)  Earnings from ongoing operations $0.32 $0.15 $0.18 $0.65  Change excluding special items ($0.13) $0.01 $0.08 ($0.04)  (Dollars Per Share)

 Reconciliation of PPL’s Reported Earnings and  Earnings from Ongoing Operations  High Low  2008 2008 2007 2006  Per Share Earnings from Ongoing Operations $2.45 $2.35 $2.60 $2.25  Special items (net of taxes):  economic hedges 0.13 0.13 0.08 (0.03)  Reversal of cost recovery - Hurricane Isabel (0.02)  Impairment of synfuel-related assets (0.01)  Sale of interest in Griffith (0.04)  Reduction in Enron reserve 0.03  Off-site remediation of ash basin leak 0.02  PJM billing dispute 0.01  Realization of benefits related to Black Lung Trust  assets 0.05  Susquehanna workforce reduction (0.01)  Impairment of nuclear decom. trust investments (0.01)  Sale of Latin American businesses 0.67  Sale of domestic telecommunication operations (0.06)  Sale of gas and propane businesses (0.11)  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)  Synfuel tax adjustment (0.04) (0.04)  Colstrip ground water litigation (0.01) (0.01)  0.08 0.08 0.75 (0.01)  Reported Earnings Per Share $2.53 $2.43 $3.35 $2.24  Note: Per share amounts are based on diluted shares outstanding.  Forecast  MTM adj's from energy-related, non-trading  Actual  A-12

 Credit Ratings  A-13  BBB Issuer Rating  AAAAaa Tax-Exempt Bonds*  STABLE STABLE STABLE Outlook  A-A-A3Senior Secured Debt  F-2A-2P-2Commercial Paper  BBBBBBBaa3Preferred Stock  BBBA-Baa1Issuer Rating  A-A-A3First Mortgage Bonds  AAA/A Aaa/Baa1***Tax-Exempt Bonds**  BBBBBBBaa3Preference Stock  PPL Electric Utilities  BBBBBB-Baa2Senior Unsecured Debt  BBB-BB+ 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  *** Ratings may differ for each issuance due to differences on Bond Insurer Ratings

 Credit Ratings (cont.)  A-14  A-3Commercial Paper  A-BBB+ Baa1Senior Unsecured Debt  F2A-2P-2Commercial Paper  STABLE STABLE STABLE Outlook  BBB+ BBB+ Baa1Issuer Rating  A-BBB+ 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 Outlook  BBBBBB-Issuer Rating  WPD Holdings LLP  BBB-BBB-Baa3Issuer Rating  BBBBBB-Baa3Senior Unsecured Debt  A-3Commercial Paper  WPD Holdings Limited  BBBBBB-Baa3Pass-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 presentation, 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; 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-15

 Definitions of Financial Measures  A-16  “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 because the mark-to-market gains or losses  on the energy hedges will reverse as the hedging contracts settle in the future. 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.