EX-99.1 2 form8k-exhibit99_1.htm EXHIBIT 99.1 form8k-exhibit99_1.htm
Exhibit 99.1

Contacts:
For news media – George Biechler, 610-774-5997
 
For financial analysts – Joseph P. Bergstein, 610-774-5609


PPL reports increase in first-quarter earnings versus year ago

·  
Energy supply business margins and earnings improve
·  
Company reaffirms 2010 earnings forecast

ALLENTOWN, Pa. (May 6, 2010) ― PPL Corporation (NYSE: PPL) on Thursday (5/6) reported an increase in first-quarter earnings for 2010, compared with the same quarter of 2009.

PPL’s reported earnings in the most recent quarter were $0.66 per share, up from $0.64 per share a year ago. Adjusting for special items, PPL’s earnings from ongoing operations for the quarter were $0.94 per share, compared with $0.60 per share a year ago.

Driving PPL’s significantly higher quarterly earnings from ongoing operations were higher wholesale electricity margins in the company’s energy supply business. Partially offsetting the higher margins were lower earnings in PPL’s regulated electric delivery businesses in Pennsylvania and the United Kingdom.

PPL reaffirmed its 2010 forecast of $3.10 to $3.50 per share in earnings from ongoing operations. PPL’s 2010 forecast of reported earnings is $2.82 to $3.22 per share, reflecting special items recorded through March 31, 2010. The company’s forecast does not reflect any impact of the recently announced agreement to acquire E.ON U.S., LLC, including the required financing related to that acquisition.

“As expected, earnings from our energy supply business increased significantly in the first quarter, following the expiration of a decade-long contract with our Pennsylvania electric delivery company,” said James H. Miller, PPL’s chairman, president and chief executive officer.

“Although declining energy prices, lower electricity demand and lingering economic uncertainty present continuing challenges for our sector, we are reiterating our 2010 forecast of earnings from ongoing operations,” Miller said. “Our supply business will benefit from wholesale energy prices that were contractually hedged in prior years at prices higher than current forward prices.”

First-Quarter 2010 Earnings Details

Special item charges in the quarter, totaling $0.28 per share, were: $0.16 per share for energy-related economic activity; $0.09 per share related to hydroelectric litigation in Montana; $0.02 per share for a tax change related to retiree prescription drug coverage, in connection with the recent federal health care legislation; and $0.01 per share related to the impairment of emission allowances. For the first quarter of 2009, PPL recorded a net special item credit of $0.04 per share.

Reported earnings are calculated in accordance with generally accepted accounting principles (GAAP). Earnings from ongoing operations is a non-GAAP financial measure that is adjusted for special items. Special items include the impact of energy-related economic activity (principally changes in fair value of economic hedges and the ineffective portion of qualifying cash flow hedges), as well as other impacts fully detailed at the end of this news release.

(Dollars in millions, except for per share amounts)

 
1st Quarter
1st Quarter
 
 
2010
2009
% Change
Reported Earnings
$250
$241
+4%
Reported Earnings Per Share
$0.66
$0.64
+3%
Earnings from Ongoing Operations
$357
$226
+58%
Per Share Earnings from Ongoing Operations
$0.94
$0.60
+57%

(See the tables at the end of this news release for details as to all special items and the reconciliation of earnings from ongoing operations to reported earnings.)

First-Quarter 2010 Earnings by Business Segment

The following chart shows PPL’s earnings by business segment for the first quarter of 2010, compared with the same period of 2009.

   
1st Quarter
   
2010
 
2009
(per share)
     
Earnings from Ongoing Operations
               
                 
Supply
 
$
0.64
   
$
0.22
 
Pennsylvania Delivery
   
0.10
     
0.14
 
International Delivery
   
0.20
     
0.24
 
Total
 
$
0.94
   
$
0.60
 
             
Special Items
               
                 
Supply
 
$
(0.28
)
 
$
0.06
 
Pennsylvania Delivery
   
-
     
(0.01
)
International Delivery
   
-
     
(0.01
)
Total
 
$
(0.28
)
 
$
0.04
 
             
Reported Earnings
               
                 
Supply
 
$
0.36
   
$
0.28
 
Pennsylvania Delivery
   
0.10
     
0.13
 
International Delivery
   
0.20
     
0.23
 
Total
 
$
0.66
   
$
0.64
 


(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 segment primarily consists of the domestic energy generation and marketing and trading operations of PPL Energy Supply.
 
Earnings from ongoing operations for PPL’s supply business segment in the first quarter of 2010 increased by $0.42 per share compared with 2009. This increase was primarily due to significantly higher eastern baseload generation pricing compared to the prices realized under the full-requirements supply contract with PPL’s electricity delivery company that expired at the end of 2009.

Partially offsetting these positive earnings were lower realized net margins from load-following agreements due to continued lower customer demand, higher operation and maintenance expenses at PPL’s Susquehanna nuclear plant as a result of the timing of this year’s refueling outage, and the absence of a gain recorded in 2009 when PPL Energy Supply repurchased a portion of its outstanding debt.

Pennsylvania Delivery Segment
PPL’s Pennsylvania delivery business segment includes the regulated electric delivery operations of PPL Electric Utilities.

Earnings from ongoing operations for PPL’s Pennsylvania delivery business segment in the first quarter of 2010 declined by $0.04 per share compared with 2009. This decrease was due to higher operation and maintenance expenses, and lower distribution margins as a result of continued slow economic growth, milder weather and customers’ reduced consumption of electricity in apparent response to the increased cost of energy supply.

International Delivery Segment
PPL’s international delivery business segment primarily includes the regulated electric delivery operations of Western Power Distribution in the U.K.

Earnings from ongoing operations for PPL’s international delivery business segment in the first quarter of 2010 declined by $0.04 per share compared with a year ago. This decline was primarily due to higher financing costs, higher U.K. income taxes, and higher pension costs, which were partially offset by higher electric delivery revenues and a more favorable currency exchange rate.

2010 Earnings from Ongoing Operations Forecast by Business Segment
 
 
Earnings
2010
(Forecast)
 
2009
(Actual)
 
(per share)
midpoint
     
         
Supply
$2.44
 
$0.88
 
Pennsylvania Delivery
0.29
 
0.35
 
International Delivery
0.57
 
0.72
 
Total
$3.30
 
$1.95
 

PPL is reaffirming its 2010 forecast of $3.10 to $3.50 per share in earnings from ongoing operations. The company’s forecast does not reflect any impact of the recently announced agreement to acquire E.ON U.S., LLC, including the required financing related to that acquisition.  This forecast does reflect the following key expectations by business segment.

Supply Segment
PPL projects higher earnings from its supply business segment in 2010 compared with 2009, due to strong growth in energy margins. The forecast for strong growth in energy margins is based on hedged power and fuel prices as well as established capacity prices in the PJM Interconnection. These positive factors are expected to be partially offset by higher depreciation, higher financing costs, and higher operation and maintenance expenses.

Pennsylvania Delivery Segment
PPL projects lower earnings from its Pennsylvania delivery business segment in 2010 compared with 2009, primarily driven by higher operation and maintenance expenses, partially offset by lower financing costs.

International Delivery Segment
PPL projects lower earnings from its international delivery business segment in 2010 compared with 2009 as a result of higher income taxes, higher operation and maintenance expenses, and higher financing costs. These negative factors are expected to be partially offset by higher electric delivery revenues and a more favorable currency exchange rate.

PPL Corporation, headquartered in Allentown, Pa., owns or controls nearly 12,000 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.)

Conference Call and Webcast

PPL invites interested parties to listen to a live Internet webcast of management’s teleconference with financial analysts about first-quarter 2010 financial results at 9 a.m. EDT Thursday, May 6. 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# 71016750).

“Earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAAP). PPL believes that “earnings from ongoing operations,” although a non-GAAP financial measure, is also useful and meaningful to investors because it provides them with management’s view of PPL’s fundamental earnings performance as another criterion in making their investment decisions. PPL’s management also uses “earnings from ongoing operations” in measuring certain corporate performance goals. Other companies may use different measures to present financial performance.

“Earnings from ongoing operations” is adjusted for the impact of special items. Special items include:
 
·  
Energy-related economic activity (as discussed below).
·  
Foreign currency-related economic hedges.
·  
Sales of assets not in the ordinary course of business.
·  
Impairment charges (including impairments of securities in the company’s nuclear decommissioning trust funds).
·  
Workforce reduction and other restructuring impacts.
·  
Other charges or credits that are, in management’s view, not reflective of the company’s ongoing operations.

Energy-related economic activity includes the changes in fair value of positions used to economically hedge a portion of the economic value of PPL’s generation assets, load-following and retail activities. This economic value is subject to changes in fair value due to market price volatility of the input and output commodities (e.g., fuel and power). Also included in this special item is the ineffective portion of qualifying cash flow hedges and the premium amortization associated with options classified as economic activity. These items are included in ongoing earnings over the delivery period of the item that was hedged or upon realization. Management believes that adjusting for such amounts provides a better matching of earnings from ongoing operations to the actual amounts settled for PPL’s underlying hedged assets. Please refer to the Notes to the Consolidated Financial Statements and MD&A in PPL Corporation’s periodic filings with the Securities and Exchange Commission for additional information on energy-related economic activity.

Statements contained in this news release, including statements with respect to future earnings, energy prices, margins and sales, growth, revenues, expenses, marketing performance, hedging, financing, regulation, exchange rates, acquisitions, corporate strategy, and generating capacity and performance, are “forward-looking statements” within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements are subject to a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: 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, rate relief and regulatory cost recovery; 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 PPL Corporation and its subsidiaries.
 
 

 
PPL CORPORATION AND SUBSIDIARIES
 
CONDENSED CONSOLIDATED FINANCIAL INFORMATION (a)
 
             
             
             
             
Condensed Consolidated Balance Sheet (Unaudited)
 
(Millions of Dollars)
 
             
   
March 31,
   
December 31,
 
   
2010
   
2009
 
Assets
           
Cash and cash equivalents
  $ 1,724     $ 801  
Price risk management assets - current
    3,348       2,157  
Assets held for sale
            127  
Other current assets
    2,149       1,667  
Investments
    638       613  
Property, plant and equipment
               
   Electric plant
    21,089       21,151  
   Gas and oil plant
    68       68  
   Other property
    157       166  
   Property, plant and equipment, gross
    21,314       21,385  
   Less:  accumulated depreciation
    8,256       8,211  
   Property, plant and equipment, net
    13,058       13,174  
Regulatory assets
    529       531  
Goodwill and other intangibles
    1,362       1,421  
Price risk management assets - noncurrent
    1,713       1,274  
Other noncurrent assets
    414       400  
   Total assets
  $ 24,935     $ 22,165  
                 
Liabilities and Equity
               
Short-term debt (including current portion of long-term debt)
  $ 589     $ 639  
Price risk management liabilities - current
    2,391       1,502  
Other current liabilities
    2,812       2,041  
Long-term debt (less current portion)
    7,652       7,143  
Deferred income taxes and investment tax credits
    2,313       2,153  
Price risk management liabilities - noncurrent
    853       582  
Accrued pension obligations
    1,104       1,283  
Other noncurrent liabilities
    1,010       1,007  
Common stock and capital in excess of par value
    2,314       2,284  
Earnings reinvested
    3,866       3,749  
Accumulated other comprehensive loss
    (288 )     (537 )
Noncontrolling interests
    319       319  
   Total liabilities and equity
  $ 24,935     $ 22,165  
 
(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.
 
 
 

 
PPL CORPORATION AND SUBSIDIARIES
 
                         
Condensed Consolidated Income Statement (Unaudited)
 
(Millions of Dollars, Except per Share Data)
 
                         
   
3 Months Ended March 31,
   
12 Months Ended March 31,
 
   
2010
   
2009 (a)
   
2010
   
2009 (a)
 
 
                       
Operating Revenues
                       
   Utility
  $ 1,014     $ 1,065     $ 3,851     $ 4,059  
   Unregulated retail electric and gas (b)
    104       42       214       159  
   Wholesale energy marketing
                               
        Realized
    1,386       798       3,879       2,658  
        Unrealized economic activity (b)
    424       352       (157 )     1,588  
   Net energy trading margins
    11       (12 )     40       (131 )
   Energy-related businesses
    94       99       418       502  
   Total Operating Revenues
    3,033       2,344       8,245       8,835  
Operating Expenses
                               
   Operation
                               
        Fuel (b)
    233       258       906       1,102  
        Energy purchases
                               
             Realized
    1,012       677       2,971       1,994  
             Unrealized economic activity (b)
    563       269       449       1,081  
        Other operation and maintenance
    445       372       1,497       1,419  
        Amortization of recoverable transition costs
            84       220       301  
   Depreciation
    128       109       488       456  
   Taxes, other than income
    72       72       280       285  
   Energy-related businesses
    88       91       393       465  
   Total Operating Expenses
    2,541       1,932       7,204       7,103  
Operating Income
    492       412       1,041       1,732  
Other Income - net
    8       35       22       79  
Other-Than-Temporary Impairments
            17       1       50  
Interest Expense
    114       89       421       436  
Income from Continuing Operations Before Income Taxes
    386       341       641       1,325  
Income Taxes
    131       98       163       402  
Income from Continuing Operations After Income Taxes
    255       243       478       923  
Income (Loss) from Discontinued Operations (net of income taxes)
            3       (43 )     8  
Net Income
    255       246       435       931  
Net Income Attributable to Noncontrolling Interests
    5       5       19       20  
Net Income Attributable to PPL Corporation
  $ 250     $ 241     $ 416     $ 911  
                                 
Amounts Attributable to PPL Corporation:
                               
     Income from Continuing Operations After Income Taxes
  $ 250     $ 238     $ 459     $ 903  
     Income (Loss) from Discontinued Operations (net of income taxes)
            3       (43 )     8  
     Net Income
  $ 250     $ 241     $ 416     $ 911  
                                 
Earnings Per Share of Common Stock - Basic (c)
                               
     Earnings from Ongoing Operations
  $ 0.94     $ 0.60     $ 2.30     $ 2.02  
     Special Items
    (0.28 )     0.04       (1.20 )     0.40  
     Net Income Available to PPL Corporation Common Shareowners
  $ 0.66     $ 0.64     $ 1.10     $ 2.42  
                                 
Earnings Per Share of Common Stock - Diluted (c)
                               
     Earnings from Ongoing Operations
  $ 0.94     $ 0.60     $ 2.30     $ 2.01  
     Special Items
    (0.28 )     0.04       (1.20 )     0.41  
     Net Income Available to PPL Corporation Common Shareowners
  $ 0.66     $ 0.64     $ 1.10     $ 2.42  
                                 
Weighted-Average Shares of Common Stock Outstanding (thousands)
                               
        Basic
    377,717       375,112       376,761       374,212  
        Diluted
    377,986       375,409       376,962       375,002  
 
(a)
 
Certain amounts from 2009 have been reclassified to conform to the current year presentation.
     
(b)
 
Includes energy-related contracts to hedge future cash flows that are not eligible for hedge accounting, or where hedge accounting is not elected.
     
(c)
 
Earnings in 2010 and 2009 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.
 
 

 
PPL CORPORATION AND SUBSIDIARIES
 
             
Condensed Consolidated Statements of Cash Flows (Unaudited)
 
(Millions of Dollars)
 
             
   
Three Months Ended
 
   
March 31,
 
   
2010
   
2009
 
             
Cash Flows from Operating Activities
           
Net Income
  $ 255     $ 246  
Adjustments to reconcile net income to net cash provided
               
  by operating activities:
               
Depreciation
    128       110  
Amortization of recoverable transition costs and other
    51       93  
Defined benefits
    (115 )     (6 )
Impairment of assets
    3       51  
Deferred income taxes and investment tax credits
    (5 )     (12 )
Unrealized (gains) losses on derivatives, and other hedging activities
    107       (103 )
Gains related to the extinguishment of notes
            (29 )
Provision for Montana hydroelectric litigation
    56          
Changes in current assets and current liabilities:
               
Counterparty collateral deposits
    351       137  
Other changes in current assets and current liabilities
    (52 )     (211 )
Other operating activities
    19       34  
Net cash provided by operating activities
    798       310  
                 
Cash Flows from Investing Activities
               
Expenditures for property, plant and equipment
    (283 )     (270 )
Proceeds from the sale of the Long Island generation business
    124          
Expenditures for intangible assets
    (22 )     (30 )
Net (increase) decrease in restricted cash and cash equivalents
    (130 )     156  
Other investing activities
    1       (6 )
Net cash used in investing activities
    (310 )     (150 )
                 
Cash Flows from Financing Activities
               
Issuance of long-term debt
    597          
Retirement of long-term debt
            (421 )
Payment of common stock dividends
    (131 )     (126 )
Net decrease in short-term debt
    (36 )     (90 )
Other financing activities
            8  
Net cash provided by (used in) financing activities
    430       (629 )
                 
Effect of Exchange Rates on Cash and Cash  Equivalents
    5          
                 
Net Increase (Decrease) in Cash and Cash Equivalents
    923       (469 )
Cash and cash equivalents at beginning of period
    801       1,100  
                 
Cash and cash equivalents at end of period
  $ 1,724     $ 631  
 
 

 
Key Indicators (Unaudited)
 
             
   
12 Months Ended
 
   
March 31,
 
Financial
 
2010
   
2009
 
             
Dividends declared per share
  $ 1.385     $ 1.35  
Book value per share (a)
  $ 15.58     $ 13.94  
Market price per share (a)
  $ 27.71     $ 28.71  
Dividend yield (a)
    5.0 %     4.7 %
Dividend payout ratio  (b)
    126 %     56 %
Dividend payout ratio - earnings from ongoing operations (b)(c)
    60 %     67 %
Price/earnings ratio (a)(b)
    25.2       11.9  
Price/earnings ratio - earnings from ongoing operations (a)(b)(c)
    12.0       14.3  
Return on average common equity
    7.45 %     16.79 %
Return on average common equity - earnings from ongoing operations (c)
    15.29 %     14.54 %
 
(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.
 
 
Operating - Domestic & International Electricity Sales (Unaudited)
 
                                     
   
3 Months Ended March 31,
   
12 Months Ended March 31,
 
               
Percent
               
Percent
 
(millions of kwh)
 
2010
   
2009
   
Change
   
2010
   
2009
   
Change
 
                                     
Domestic Retail
                                   
Delivered (a)
    10,285       10,677       (3.7 %)     36,325       38,153       (4.8 %)
Supplied (b)
    2,466       11,250       (78.1 %)     30,128       40,486       (25.6 %)
                                                 
International Delivered
                                               
United Kingdom
    7,609       7,604       0.1 %     26,363       27,574       (4.4 %)
                                                 
Domestic Wholesale
                                               
East
    17,193       6,763       154.2 %     37,952       29,450       28.9 %
West
    2,761       2,934       (5.9 %)     11,293       13,371       (15.5 %)
 
(a)
 
Represents the kwh delivered to retail customers within PPL Electric Utilities Corporation's service territory.
(b)
 
Represents the kwh supplied by PPL EnergyPlus to PPL Electric Utilities as PLR, and to retail customers in Pennsylvania and Montana.
 
 

 
Reconciliation of Business Segment Earnings from Ongoing Operations to Reported Earnings (Diluted)
             
(Unaudited)
                                               
                                                 
1st Quarter 2010
 
(millions of dollars)
   
(per share)
 
         
PA
   
Int'l
               
PA
   
Int'l
       
   
Supply
   
Delivery
   
Delivery
   
Total
   
Supply
   
Delivery
   
Delivery
   
Total
 
                                                 
Earnings from Ongoing
  Operations
  $ 244     $ 37     $ 76     $ 357     $ 0.64     $ 0.10     $ 0.20     $ 0.94  
Special Items
                                                               
Energy-related economic activity
    (65 )                     (65 )     (0.16 )                     (0.16 )
Impairments [a]
    (2 )                     (2 )     (0.01 )                     (0.01 )
Other:
                                                               
Montana hydroelectric litigation
    (32 )                     (32 )     (0.09 )                     (0.09 )
Health Care Reform - tax impact
    (8 )                     (8 )     (0.02 )                     (0.02 )
Total Special Items
    (107 )                     (107 )     (0.28 )                     (0.28 )
Reported Earnings
  $ 137     $ 37     $ 76     $ 250     $ 0.36     $ 0.10     $ 0.20     $ 0.66  
                                                                 
                                                                 
                                                                 
12 Months Ended
March 31, 2010
 
(millions of dollars)
   
(per share)
 
           
PA
   
Int'l
                   
PA
   
Int'l
         
   
Supply
   
Delivery
   
Delivery
   
Total
   
Supply
   
Delivery
   
Delivery
   
Total
 
                                                                 
Earnings from Ongoing
  Operations
  $ 496     $ 115     $ 258     $ 869     $ 1.31     $ 0.31     $ 0.68     $ 2.30  
Special Items
                                                               
Energy-related economic activity
    (340 )                     (340 )     (0.90 )                     (0.90 )
Foreign currency-related economic hedges - unrealized impacts
                    1       1                                  
Sales of assets (Q2, '09; Q3, '09; Q4, '09)
    (15 )             (27 )     (42 )     (0.04 )             (0.07 )     (0.11 )
Impairments (Q2, '09; Q3, '09; Q4, '09; Q1, '10) [a]
    (5 )                     (5 )     (0.01 )                     (0.01 )
Other:
                                                               
Montana hydroelectric litigation (Q4, '09; Q1, '10)
    (35 )                     (35 )     (0.09 )                     (0.09 )
Health Care Reform - tax impact (Q1, '10)
    (8 )                     (8 )     (0.02 )                     (0.02 )
Change in tax accounting method related to repairs (Q3, '09; Q4, '09)
    (21 )     (3 )             (24 )     (0.06 )     (0.01 )             (0.07 )
Total Special Items
    (424 )     (3 )     (26 )     (453 )     (1.12 )     (0.01 )     (0.07 )     (1.20 )
Reported Earnings
  $ 72     $ 112     $ 232     $ 416     $ 0.19     $ 0.30     $ 0.61     $ 1.10  
                                                                 
                                                                 
                                                                 
                                                                 
                                                                 
1st Quarter 2009
 
(millions of dollars)
   
(per share)
 
           
PA
   
Int'l
                   
PA
   
Int'l
         
   
Supply
   
Delivery
   
Delivery
   
Total
   
Supply
   
Delivery
   
Delivery
   
Total
 
                                                                 
Earnings from Ongoing
  Operations
  $ 81     $ 55     $ 90     $ 226     $ 0.22     $ 0.14     $ 0.24     $ 0.60  
Special Items
                                                               
Energy-related economic activity
    50                       50       0.13                       0.13  
Impairments (a)
    (20 )     (1 )     (1 )     (22 )     (0.06 )                     (0.06 )
Workforce reduction
    (6 )     (5 )     (2 )     (13 )     (0.01 )     (0.01 )     (0.01 )     (0.03 )
Total Special Items
    24       (6 )     (3 )     15       0.06       (0.01 )     (0.01 )     0.04  
Reported Earnings
  $ 105     $ 49     $ 87     $ 241     $ 0.28     $ 0.13     $ 0.23     $ 0.64  
                                                                 
                                                                 
                                                                 
12 Months Ended
March 31, 2009
 
(millions of dollars)
   
(per share)
 
           
PA
   
Int'l
                   
PA
   
Int'l
         
   
Supply
   
Delivery
   
Delivery
   
Total
   
Supply
   
Delivery
   
Delivery
   
Total
 
                                                                 
Earnings from Ongoing Operations
  $ 314     $ 162     $ 283     $ 759     $ 0.83     $ 0.43     $ 0.75     $ 2.01  
Special Items
                                                               
Energy-related economic activity
    251                       251       0.67                       0.67  
Sale of assets (Q2, '08; Q3, '08; Q4, '08; Q1, '09)
            (6 )             (6 )             (0.02 )             (0.02 )
Impairments (Q2, '08; Q3, '08; Q4, '08; Q1, '09) [a]
    (78 )     (1 )     (2 )     (81 )     (0.21 )                     (0.21 )
Other:
                                                               
 Workforce reduction
(Q1, '09)
    (6 )     (5 )     (2 )     (13 )     (0.01 )     (0.01 )     (0.01 )     (0.03 )
Off-site remediation of ash basin leak (Q2, '08)
    1                       1                                  
Total Special Items
    168       (12 )     (4 )     152       0.45       (0.03 )     (0.01 )     0.41  
Reported Earnings
  $ 482     $ 150     $ 279     $ 911     $ 1.28     $ 0.40     $ 0.74     $ 2.42  
                                                                 
 
     2010      2009  
   
1st Quarter
   
12 Months Ended
 
1st Quarter
   
12 Months Ended
(a)   Impairments consist of:
                               
Emission allowances
  $ (2 )   $ (6 )   $ (15 )   $ (40 )
Nuclear decommissioning trust funds
            4       (3 )     (20 )
Holtwood hydroelectric plant
                            (13 )
Other
            (3 )     (4 )     (8 )
    $ (2 )   $ (5 )   $ (22 )   $ (81 )