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):  February 5, 2015

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 February 5, 2015, PPL Corporation ("PPL") issued a press release announcing its financial results for the year ended December 31, 2014 and other business matters.  A copy of the press release is furnished as Exhibit 99.1.

Section 7 - Regulation FD

Item 7.01 Regulation FD Disclosure

On February 5, 2015 at 8:30 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 year ended December 31, 2014 and other business matters.  A copy of the slides to be used during the webcast is furnished as Exhibit 99.2.  The event will be available live, in audio format, together 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 February 5, 2015, announcing PPL's financial results for the year ended December 31, 2014 and other business matters.
	99.2 -	Slides to be used on the February 5, 2015 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/ Stephen K. Breininger
	Stephen K. Breininger Vice President and Controller

Dated:  February 5, 2015

EX-99.1

 Exhibit 99.1

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

PPL Corporation Reports 2014 Earnings

-- Earnings from ongoing operations of $2.45 per share at the top end of 2014 forecast range

-- Company announces 2015 earnings forecast range, excluding Supply business, of $2.05 to $2.25 per share

-- Company targets 4 to 6 percent compound annual growth in earnings per share

ALLENTOWN, Pa., Feb. 5, 2015 /PRNewswire/ -- PPL Corporation (NYSE: PPL) on Thursday (2/5) announced reported earnings for 2014 of $1.74 billion, or $2.61 per share, compared with $1.13 billion, or $1.76 per share in 2013.

Earnings from ongoing operations, which exclude special items, were $1.63 billion, or $2.45 per share. That result was at the top end of the 2014 forecast range for earnings from ongoing operations of $2.37 to $2.47 per share. Earnings from ongoing operations in 2013 were $1.59 billion, or $2.45 per share.

“2014 was another very successful year for PPL. Not only did we achieve strong earnings results in our regulated utility and competitive supply segments, but we made significant progress in the spinoff of our Supply business, which is designed to unlock significant value for our shareowners,” said William H. Spence, PPL's chairman, president and Chief Executive Officer.

“The continued excellent performance of our utility operations in the United States and the United Kingdom and the significant ongoing infrastructure investments in those companies, combined with the significant progress in restructuring our corporate support operations, gives us confidence in PPL’s ability to achieve compound annual earnings growth of 4 to 6 percent annually through at least 2017, following the spinoff of our Supply business,” said Spence.

“Also, our Supply business performance was very strong in a turbulent market in 2014, providing further evidence that Talen Energy will be an important, resilient player in the U.S. merchant power sector,” he said.

The company is spinning off PPL Energy Supply, which will be combined with Riverstone's competitive generation business to form a new publicly traded company called Talen Energy. Spence said regulatory approvals are proceeding as expected and that PPL Corporation and Riverstone have accepted the Federal Energy Regulatory Commission’s additional market mitigation measures, which the parties believe will not have a materially different impact on the future operating results of Talen than the original proposal.

“Our internal transition work also is on schedule, including the identification of $75 million of targeted annual ongoing corporate support cost savings, and we expect to close this transaction in the second quarter of 2015,” said Spence.

The company announced its 2015 forecast -- $2.05 to $2.25 per share -- for earnings from its regulated utility operations in the United States and the United Kingdom. “To provide our investors with a clear picture of the financial performance of the going-forward part of our portfolio, we are excluding from our 2015 forecast any earnings from our competitive generation business and net costs associated with the Supply spinoff,” said Spence. The company will report actual earnings results for the Supply business until the spinoff is complete, Spence said.

For the fourth quarter, PPL’s reported earnings were $695 million, or $1.04 per share, compared with a reported loss of $98 million, or $0.16 per share, in the fourth quarter of 2013. Adjusting for special items, fourth quarter earnings from ongoing operations were $388 million, or $0.58 per share, compared with $394 million, or $0.60 per share, in the fourth quarter of 2013.

2014 Earnings Details

PPL's 2014 reported earnings include net special-item after-tax benefits of $108 million, or $0.16 per share; 2013 reported earnings included net special-item after-tax charges of $461 million, or $0.69 per share.

Special items for 2014 include benefits from the sale of the company’s Montana hydroelectric generating facilities and from foreign currency-related economic hedges, partially offset by various charges related to the spinoff of PPL Energy Supply and changes in the accrual for line losses at the company’s U.K. subsidiary.

Reported earnings are calculated in accordance with U.S. generally accepted accounting principles (GAAP). Earnings from ongoing operations, a non-GAAP financial measure, are adjusted for special items that are fully detailed at the end of this news release.

(Dollars in millions, except for per share amounts)	2014		2013		% Change
Reported Earnings	$	1,737	$	1,130	54%
Reported Earnings Per Share	$	2.61	$	1.76	48%
Earnings from Ongoing Operations	$	1,629	$	1,591	2%
Earnings from Ongoing Operations Per Share	$	2.45	$	2.45	0%

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

Fourth Quarter 2014 Earnings Details

PPL's reported earnings for the fourth quarter of 2014 include net special-item after-tax benefits of $307 million, or $0.46 per share. Reported earnings for the fourth quarter of 2013 included net special-item after-tax charges of $492 million, or $0.76 per share. Special items for the fourth quarter of 2014 include benefits from the sale of the company’s Montana hydroelectric generating facilities, adjusted energy-related economic activity and foreign currency-related economic hedges.

(Dollars in millions, except for per share amounts)	4th Quarter
	2014		2013			% Change
Reported Earnings (Loss)	$	695	$	(98	)	809%
Reported Earnings (Loss) Per Share	$	1.04	$	(0.16	)	750%
Earnings from Ongoing Operations	$	388	$	394		(2)%
Earnings from Ongoing Operations Per Share	$	0.58	$	0.60		(3)%

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

Full Year and Fourth-Quarter 2014 Earnings by Business Segment

The following chart shows PPL's earnings by segment for 2014 and the fourth quarter of 2014, compared with the same periods of 2013.

	Year						4th Quarter
Per Share	2014			2013			2014			2013
Earnings from ongoing operations
U.K. Regulated	$	1.37		$	1.32		$	0.36		$	0.30
Kentucky Regulated		0.47			0.48			0.10			0.12
Pennsylvania Regulated		0.40			0.31			0.10			0.07
Supply		0.29			0.39			0.05			0.13
Corporate and Other1		(0.08	)		(0.05	)		(0.03	)		(0.02	)
Total	$	2.45		$	2.45		$	0.58		$	0.60
Special items
U.K. Regulated	$	0.11		$	0.11		$	0.08		$	(0.02	)
Kentucky Regulated		–			–			–			–
Pennsylvania Regulated		(0.01	)		–			–			–
Supply		0.17			(0.80	)		0.38			(0.74	)
Corporate and Other1,2		(0.11	)		–			–			–
Total	$	0.16		$	(0.69	)	$	0.46		$	(0.76	)
Reported earnings (loss)
U.K. Regulated	$	1.48		$	1.43		$	0.44		$	0.28
Kentucky Regulated		0.47			0.48			0.10			0.12
Pennsylvania Regulated		0.39			0.31			0.10			0.07
Supply		0.46			(0.41	)		0.43			(0.61	)
Corporate and Other1,2		(0.19	)		(0.05	)		(0.03	)		(0.02	)
Total	$	2.61		$	1.76		$	1.04		$	(0.16	)
1 This category primarily includes unallocated corporate-level financing and other costs.
2 2014 reported earnings and special items include certain costs related to the anticipated spinoff of PPL Energy Supply.

For an itemization of special items by segment, see the reconciliation tables at the end of this news release.

 Key Factors Impacting Segment Earnings from Ongoing Operations

U.K. Regulated Segment

PPL's U.K. Regulated segment primarily consists of the regulated electricity delivery operations of Western Power Distribution, serving southwest and central England and south Wales.

Segment earnings from ongoing operations in 2014 increased by $0.05 per share compared to a year ago, due to higher utility revenues resulting from April 2014 and April 2013 price increases (net of adverse weather impacts) and lower operation and maintenance expense resulting from decreased pension expense, partially offset by higher U.S. income taxes resulting from a tax benefit recorded in the prior year and an increase in taxable dividends in 2014, higher depreciation and financing costs.

Segment earnings from ongoing operations in the fourth quarter of 2014 increased by $0.06 per share compared to a year ago, primarily due to lower operation and maintenance expense and higher revenues due to the April 2014 price increase (net of adverse weather impacts).

Kentucky Regulated Segment

PPL's Kentucky Regulated segment primarily consists of the regulated electricity and natural gas operations of Louisville Gas and Electric Company and Kentucky Utilities Company.

Segment earnings from ongoing operations decreased in 2014 by $0.01 per share compared to a year ago, due to higher operation and maintenance expense driven by the timing and scope of scheduled generation outages, higher uncollectible accounts and storm-related expenses, and higher financing costs due to a 2013 debt issuance, partially offset by higher returns on additional environmental capital investments and higher sales due to favorable weather.

Segment earnings from ongoing operations in the fourth quarter of 2014 decreased by $0.02 per share compared to a year ago, due to higher operation and maintenance expense driven by the timing and scope of scheduled generation outages and higher financing costs, partially offset by returns on additional environmental capital investments.

Pennsylvania Regulated Segment

PPL's Pennsylvania Regulated segment consists of the regulated electricity delivery operations of PPL Electric Utilities.

Segment earnings from ongoing operations in 2014 increased by $0.09 per share compared to a year ago, primarily due to returns on additional transmission and distribution improvement capital investments and lower operation and maintenance expense, partially offset by higher financing costs and depreciation.

Segment earnings from ongoing operations in the fourth quarter of 2014 increased by $0.03 per share compared to a year ago, primarily due to returns on additional transmission capital investments and lower operation and maintenance expense.

Supply Segment

PPL's Supply segmentconsists primarily of the competitive electricity generation and energy marketing operations of PPL Energy Supply.

Segment earnings from ongoing operations in 2014 decreased by $0.10 per share compared to a year ago, primarily due to lower margins from lower energy and capacity prices, partially offset by favorable baseload asset performance, gains on certain commodity positions, net benefits of unusually cold weather in the first quarter of 2014, lower financing costs and lower income taxes.

Segment earnings from ongoing operations in the fourth quarter of 2014 decreased by $0.08 per share compared to a year ago, primarily due to lower margins from lower energy and capacity prices and higher operation and maintenance expenses, partially offset by gains on certain commodity positions and lower financing costs.

2015 Regulated Utility Earnings Forecast by Segment (Excludes Supply Segment)

	2015 forecast midpoint		2014 regulated utility earnings from ongoing operations (adjusted)
Earnings per share
U.K. Regulated	$ 1.38		$ 1.37
Kentucky Regulated	0.48		0.47
Pennsylvania Regulated	0.39		0.40
Corporate and Other1	(0.10	)	(0.21	)
Total	$ 2.15		$ 2.03

1 This category primarily includes unallocated corporate-level financing and other costs. For 2014, regulated utility earnings from ongoing operations (adjusted) reflects the full impact of dissynergies related to the spinoff of PPL Energy Supply: Indirect O&M ($0.07), Interest ($0.05) and Depreciation ($0.01).

See the tables at the end of this news release for a reconciliation of reported earnings (loss) to earnings from ongoing operations to 2014 regulated utility earnings from ongoing operations (adjusted).

U.K. Regulated Segment

PPL projects higher segment earnings in 2015 compared with 2014, primarily driven by lower income taxes and a more favorable foreign currency exchange rate, partially offset by lower utility revenue. The 2015 foreign currency exposure for this segment is 97 percent hedged.

Kentucky Regulated Segment

PPL projects higher segment earnings in 2015 compared with 2014, primarily driven by electric and gas base rate increases and returns on additional environmental capital investments, partially offset by higher operation and maintenance expense, higher depreciation and higher financing costs.

Pennsylvania Regulated Segment

PPL projects lower segment earnings in 2015 compared with 2014, primarily driven by higher operation and maintenance expense, higher depreciation and higher financing costs, partially offset by higher transmission margins and returns on distribution improvement capital investments.

Corporate and Other

PPL projects lower costs in this category in 2015 compared with 2014, primarily driven by the reduction of dissynergies related to the Supply business spinoff through corporate restructuring efforts and lower income taxes.

PPL Corporation (NYSE: PPL), with 2014 revenues of $11.5 billion, is one of the largest companies in the U.S. utility sector. The PPL family of companies delivers electricity and natural gas to about 10 million customers in the United States and United Kingdom. In June 2014, PPL announced an agreement to combine its competitive generation business with the competitive generation business of Riverstone Holdings LLC to form Talen Energy Corporation, an independent power producer. 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 annual and fourth quarter 2014 financial results at 8:30 a.m. Eastern Time Thursday, February 5. The meeting is available online live, in audio format, along with slides of the presentation, on PPL's website:  www.pplweb.com. The webcast will be available for replay on the PPL website for 30 days. Interested individuals also can access the live conference call via telephone at 1-888-346-8683. International participants should call 1-412-902-4270.

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

• Adjusted energy-related economic activity (as discussed below).

• Unrealized gains or losses on foreign currency-related economic hedges.

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

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

• Workforce reduction and other restructuring effects.

• Acquisition and disposition-related adjustments.

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

Adjusted energy-related economic activity includes the changes in fair value of positions used to economically hedge a portion of the economic value of the competitive generation assets, full-requirement sales contracts and retail activities. This economic value is subject to changes in fair value due to market price volatility of the input and output commodities (e.g., fuel and power) prior to the delivery period that was hedged. Adjusted energy-related economic activity also includes the ineffective portion of qualifying cash flow hedges and premium amortization associated with options. Unrealized gains and losses related to this activity are deferred and included in earnings from ongoing operations 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 adjusted energy-related economic activity.

“Regulated utility earnings from ongoing operations,” should not be considered as an alternative to reported earnings, or net income attributable to PPL shareowners, which is an indicator of operating performance determined in accordance with GAAP.  PPL believes that “regulated utility earnings from ongoing operations,” although a non-GAAP financial measure, is also useful and meaningful to investors because it provides management’s view of PPL’s earnings as if the anticipated spinoff of PPL Energy Supply was completed.  Other companies may use different measures to present financial performance.  “Regulated utility earnings from ongoing operations” is adjusted for the impact of special items as described above.  It is also adjusted for the Supply segment’s earnings, as the segment is expected to be disposed of upon completion of the announced spinoff of PPL Energy Supply. “2014 regulated utility earnings from ongoing operations (adjusted)” also reflects, within the Corporate and Other category, the full impact of spinoff dissynergies that would remain with PPL after the completion of the anticipated transaction, if left unmitigated. Due to the forward-looking nature of any forecasted regulated utility earnings from ongoing operations for future periods, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as the company is unable to forecast all special items.

Statements contained in this news release, including statements with respect to future earnings, cash flows, financing, regulation and corporate strategy, 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: weather conditions affecting customer energy usage and operating costs; the effect of any business or industry restructuring, including the ability of PPL Corporation to realize all or a significant portion of the anticipated cost savings from the corporate restructuring efforts currently underway; the profitability and liquidity of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating performance of generating plants and other facilities; the length of scheduled and unscheduled outages at our generating plants; environmental conditions and requirements and the related costs of compliance, including environmental capital expenditures; system conditions and operating costs; development of new projects, markets and technologies; performance of new ventures; asset or business acquisitions and dispositions; any impact of hurricanes or other severe weather on our business; 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 expense 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 website 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 Sheets (Unaudited)
(Millions of Dollars)
			December 31,		December 31,
			2014		2013
Assets
Cash and cash equivalents			$	1,751	$	1,102
Short-term investments				120
Accounts receivable				1,094		1,020
Unbilled revenues				735		835
Fuel, materials and supplies				836		702
Price risk management assets - current				1,158		942
Other current assets				465		552
Investments				985		907
Property, Plant and Equipment
	Regulated utility plant			30,568		27,755
	Less: Accumulated depreciation - regulated utility plant			5,361		4,873
		Regulated utility plant, net		25,207		22,882
	Non-regulated property, plant and equipment			12,819		13,306
	Less: Accumulated depreciation - non-regulated property, plant and equipment			6,404		6,172
		Non-regulated property, plant and equipment, net		6,415		7,134
	Construction work in progress			2,975		3,071
	Property, Plant and Equipment, net			34,597		33,087
Regulatory assets - noncurrent				1,562		1,246
Goodwill and other intangibles				4,930		5,172
Price risk management assets - noncurrent				319		337
Other noncurrent assets				312		357
Total Assets			$	48,864	$	46,259
Liabilities and Equity
Short-term debt			$	1,466	$	701
Long-term debt due within one year				1,535		315
Accounts payable				1,356		1,308
Price risk management liabilities - current				1,126		829
Other current liabilities				1,960		1,759
Long-term debt				18,856		20,592
Deferred income taxes and investment tax credits				4,609		4,270
Price risk management liabilities - noncurrent				252		415
Accrued pension obligations				1,756		1,286
Assets retirement obligations				739		687
Regulatory liabilities - noncurrent				992		1,048
Other noncurrent liabilities				589		583
Common stock and additional paid-in capital				9,440		8,322
Earnings reinvested				6,462		5,709
Accumulated other comprehensive loss				(2,274)		(1,565)
Total Liabilities and Equity			$	48,864	$	46,259

(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 Statements of Income (Unaudited)
(Millions of Dollars, Except Share Data)
			Three Months Ended December 31,				Year Ended December 31,
			2014		2013			2014		2013
Operating Revenues
	Utility		$	1,930	$	1,857	$	7,782	$	7,201
	Unregulated wholesale energy			1,605		529		1,808		2,909
	Unregulated retail energy			330		268		1,239		1,023
	Energy-related businesses			158		165		670		588
	Total Operating Revenues			4,023		2,819		11,499		11,721
Operating Expenses
	Operation
		Fuel		460		480		2,161		1,944
		Energy purchases		1,325		304		1,041		1,967
		Other operation and maintenance		721		770		2,803		2,779
		Loss on lease termination				697				697
	Depreciation			307		297		1,220		1,142
	Taxes, other than income			91		90		374		351
	Energy-related businesses			136		160		628		563
	Total Operating Expenses			3,040		2,798		8,227		9,443
Operating Income				983		21		3,272		2,278
Other Income (Expense) - net				78		(42)		118		(23)
Other-Than-Temporary Impairments								2		1
Interest Expense				249		247		1,024		994
Income (Loss) from Continuing Operations Before Income Taxes				812		(268)		2,364		1,260
Income Taxes				261		(166)		781		163
Income (Loss) from Continuing Operations After Income Taxes				551		(102)		1,583		1,097
Income (Loss) from Discontinued Operations (net of income taxes)				144		4		154		34
Net Income (Loss)				695		(98)		1,737		1,131
Net Income Attributable to Noncontrolling Interests										1
Net Income (Loss) Attributable to PPL Shareowners			$	695	$	(98)	$	1,737	$	1,130
Amounts Attributable to PPL Shareowners:
	Income (Loss) from Continuing Operations After Income Taxes		$	551	$	(102)	$	1,583	$	1,096
	Income (Loss) from Discontinued Operations (net of income taxes)			144		4		154		34
	Net Income (Loss)		$	695	$	(98)	$	1,737	$	1,130
Earnings Per Share of Common Stock:
	Income (Loss) from Continuing Operations After Income Taxes Available
	to PPL Common Shareowners:
	Basic		$	0.82	$	(0.16)	$	2.41	$	1.79
	Diluted (a)		$	0.82	$	(0.16)	$	2.38	$	1.71
	Net Income (Loss) Available to PPL Common Shareowners:
	Basic		$	1.04	$	(0.16)	$	2.64	$	1.85
	Diluted (a)		$	1.04	$	(0.16)	$	2.61	$	1.76
Weighted-Average Shares of Common Stock Outstanding
	(in thousands)
	Basic			665,205		630,192		653,504		608,983
	Diluted (a)			667,263		630,192		665,973		663,073

(a) As a result of a reported loss, diluted earnings per share for the three months ended December 31, 2013 exclude incremental shares as they were anti-dilutive.

PPL CORPORATION AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows (Unaudited)
(Millions of Dollars)
				2014		2013		2012
Cash Flows from Operating Activities
	Net income			$	1,737	$	1,131	$	1,531
	Adjustments to reconcile net income to net cash provided by operating activities
		Depreciation			1,237		1,161		1,100
		Amortization			228		222		186
		Defined benefit plans - expense			90		176		166
		Deferred income taxes and investment tax credits			640		72		424
		Unrealized (gains) losses on derivatives, and other hedging activities			(175)		236		27
		Pre-tax gain from the sale of the Montana hydroelectric generation business (Note 8)			(246)
		Loss on lease termination (net of $271 million cash payment)					426
		Adjustment to WPD line loss accrual			65		45		(90)
		Stock compensation expense			64		51		49
		Other			57		49		31
	Change in current assets and current liabilities
		Accounts receivable			(83)		(165)		7
		Fuel, materials and supplies			(134)		(27)		(18)
		Taxes payable			158		20		24
		Uncertain tax positions					(114)		(4)
		Other			149		(64)		(27)
	Other operating activities
		Defined benefit plans - funding			(419)		(563)		(607)
		Other operating activities			35		201		(35)
			Net cash provided by operating activities		3,403		2,857		2,764
Cash Flows from Investing Activities
	Expenditures for property, plant and equipment				(4,090)		(4,212)		(3,105)
	Expenditures for intangible assets				(95)		(95)		(71)
	Proceeds from the sale of Montana hydroelectric generation business				900
	Ironwood Acquisition, net of cash acquired								(84)
	Purchases of nuclear plant decommissioning trust investments				(170)		(159)		(154)
	Proceeds from the sale of nuclear plant decommissioning trust investments				154		144		139
	Proceeds from the receipt of grants				164		4		4
	Purchases of other investments				(120)
	Net (increase) decrease in restricted cash and cash equivalents				(89)		(20)		96
	Other investing activities				17		43		52
			Net cash used in investing activities		(3,329)		(4,295)		(3,123)
Cash Flows from Financing Activities
	Issuance of long-term debt				296		2,038		1,223
	Retirement of long-term debt				(546)		(747)		(108)
	Repurchase of common stock						(74)
	Issuance of common stock				1,074		1,411		72
	Payment of common stock dividends				(967)		(878)		(833)
	Redemption of preference stock of a subsidiary								(250)
	Debt issuance and credit facility costs				(22)		(49)		(17)
	Contract adjustment payments on Equity Units				(22)		(82)		(94)
	Net increase (decrease) in short-term debt				777		49		74
	Other financing activities				(7)		(37)		(19)
			Net cash provided by financing activities		583		1,631		48
Effect of Exchange Rates on Cash and Cash Equivalents					(8)		8		10
Net Increase (Decrease) in Cash and Cash Equivalents					649		201		(301)
Cash and Cash Equivalents at Beginning of Period					1,102		901		1,202
Cash and Cash Equivalents at End of Period				$	1,751	$	1,102	$	901

Key Indicators (Unaudited)
	12 Months Ended
	December 31,
Financial	2014	2013
Dividends declared per share of common stock	$1.49	$1.47
Book value per share (a)(b)	$20.47	$19.78
Market price per share (a)	$36.33	$30.09
Dividend yield	4.1%	4.9%
Dividend payout ratio (c)	57%	84%
Dividend payout ratio - earnings from ongoing operations (c)(d)	61%	60%
Price/earnings ratio (c)	13.9	17.1
Price/earnings ratio - earnings from ongoing operations (c)(d)	14.8	12.3
Return on average common equity	13.0%	9.8%
Return on average common equity - earnings from ongoing operations (d)	12.2%	13.9%

(a) End of period.

(b) Based on 665,849 and 630,321 shares of common stock outstanding (in thousands) at December 31, 2014 and December 31, 2013.

(c) Based on diluted earnings per share.

(d) Calculated using earnings from ongoing operations, which is a non-GAAP financial measure that 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 December 31,			12 Months Ended December 31,
					Percent			Percent
(GWh)			2014	2013	Change	2014	2013	Change
Domestic Retail Delivered
	PPL Electric Utilities		9,073	9,216	(1.6%)	37,026	36,760	0.7%
	LKE		7,510	7,549	(0.5%)	31,543	31,088	1.5%
		Total	16,583	16,765	(1.1%)	68,569	67,848	1.1%
Domestic Retail Supplied (a)
	PPL EnergyPlus		3,610	3,400	6.2%	14,825	13,476	10.0%
	LKE		7,510	7,549	(0.5%)	31,543	31,088	1.5%
		Total	11,120	10,949	1.6%	46,368	44,564	4.0%
International Delivered
	United Kingdom		18,859	19,177	(1.7%)	75,813	78,219	(3.1%)
Domestic Wholesale
	PPL EnergyPlus - East		10,723	14,876	(27.9%)	49,632	52,836	(6.1%)
	PPL EnergyPlus - West		1,093	1,341	(18.5%)	5,358	5,905	(9.3%)
	LKE (b)		514	632	(18.7%)	2,365	2,383	(0.8%)
		Total	12,330	16,849	(26.8%)	57,355	61,124	(6.2%)

(a) Represents GWh supplied by PPL EnergyPlus to PPL Electric Utilities as PLR, and to other retail customers in Pennsylvania, New Jersey, Montana, Delaware, Maryland and Washington D.C.  Also includes GWh supplied by LKE to retail customers in Kentucky Virginia and Tennessee.

(b) Represents FERC-regulated municipal and unregulated off-system sales.

Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations
(After-Tax)
(Unaudited)
4th Quarter 2014		(millions of dollars)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	294	$	65	$	69	$	291	$	(24)	$	695
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									110				110
Foreign currency-related economic hedges			55										55
Spinoff of PPL Energy Supply:
	Change in tax valuation allowances										3		3
	Transition and transaction costs								(1)		(4)		(5)
	Separation benefits								(3)		(1)		(4)
Sale of Montana hydroelectric generating facilities									137				137
Other:
	Mechanical contracting and engineering revenue adjustment								10				10
	Separation benefits - bargaining unit voluntary program								1				1
Total Special Items			55						254		(2)		307
Earnings from Ongoing Operations		$	239	$	65	$	69	$	37	$	(22)	$	388
		(per share - diluted)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	0.44	$	0.10	$	0.10	$	0.43	$	(0.03)	$	1.04
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									0.16				0.16
Foreign currency-related economic hedges			0.08										0.08
Sale of Montana hydroelectric generating facilities									0.20				0.20
Other:
	Mechanical contracting and engineering revenue adjustment								0.02				0.02
Total Special Items			0.08						0.38				0.46
Earnings from Ongoing Operations		$	0.36	$	0.10	$	0.10	$	0.05	$	(0.03)	$	0.58

Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations
(After-Tax)
(Unaudited)
Year-to-Date December 31, 2014		(millions of dollars)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	982	$	312	$	263	$	307	$	(127)	$	1,737
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(6)				(6)
Foreign currency-related economic hedges			127										127
Kerr Dam Project impairment									(10)				(10)
Spinoff of PPL Energy Supply:
	Change in tax valuation allowances										(46)		(46)
	Transition and transaction costs								(1)		(17)		(18)
	Separation benefits								(10)		(12)		(22)
Sale of Montana hydroelectric generating facilities									137				137
Other:
	Change in WPD line loss accrual		(52)										(52)
	Mechanical contracting and engineering revenue adjustment								10				10
	Separation benefits - bargaining unit voluntary program						(2)		(10)				(12)
Total Special Items			75				(2)		110		(75)		108
Earnings from Ongoing Operations		$	907	$	312	$	265	$	197	$	(52)	$	1,629

Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations
to Regulated Utility Earnings from Ongoing Operations (Adjusted)
(After-Tax)
(Unaudited)
Year-to-Date December 31, 2014		(per share - diluted) (a)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	1.48	$	0.47	$	0.39	$	0.46	$	(0.19)	$	2.61
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(0.01)				(0.01)
Foreign currency-related economic hedges			0.19										0.19
Kerr Dam Project impairment									(0.02)				(0.02)
Spinoff of PPL Energy Supply:
	Change in tax valuation allowances										(0.07)		(0.07)
	Transition and transaction costs										(0.02)		(0.02)
	Separation benefits								(0.01)		(0.02)		(0.03)
Sale of Montana hydroelectric generating facilities									0.20				0.20
Other:
	Change in WPD line loss accrual		(0.08)										(0.08)
	Mechanical contracting and engineering revenue adjustment								0.02				0.02
	Separation benefits - bargaining unit voluntary program						(0.01)		(0.01)				(0.02)
Total Special Items			0.11				(0.01)		0.17		(0.11)		0.16
Earnings from Ongoing Operations		$	1.37	$	0.47	$	0.40	$	0.29	$	(0.08)	$	2.45
Regulated Utility Earnings Adjustments (expense) benefit:
Supply segment earnings from ongoing operations (b)									(0.29)				(0.29)
Dissynergies related to the spinoff of PPL Energy Supply: (c)
	Indirect O&M										(0.07)		(0.07)
	Interest expense										(0.05)		(0.05)
	Depreciation										(0.01)		(0.01)
Total Regulated Utility Earnings Adjustments									(0.29)		(0.13)		(0.42)
Regulated Utility Earnings from Ongoing Operations (Adj.)		$	1.37	$	0.47	$	0.40	$		$	(0.21)	$	2.03

(a) The "If-Converted Method" has been applied to PPL's 2011 Equity Units prior to settlement, resulting in $9 million of interest charges (after-tax) being added back to earnings for the twelve months ended December 31, 2014, and approximately 11 million shares of PPL Common Stock being treated as outstanding.  Both adjustments are only for purposes of calculating diluted earnings per share.

(b) To remove Supply segment earnings from ongoing operations as the segment is expected to be disposed of as a result of the announced spinoff of PPL Energy Supply.

(c) Represents 2014 costs allocated to the Supply segment that will remain with PPL after the expected spinoff of PPL Energy Supply.

Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations
(After-Tax)
(Unaudited)
4th Quarter 2013		(millions of dollars)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	181	$	80	$	49	$	(394)	$	(14)	$	(98)
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(30)				(30)
Foreign currency-related economic hedges			(21)										(21)
Corette asset impairment									(39)				(39)
WPD Midlands acquisition-related adjustments:
	Other acquisition-related adjustments		10										10
Other:
	LKE discontinued operations				1								1
	Loss on Colstrip lease termination to facilitate the sale
	of Montana hydro assets								(413)				(413)
Total Special Items			(11)		1				(482)				(492)
Earnings from Ongoing Operations		$	192	$	79	$	49	$	88	$	(14)	$	394
		(per share - diluted)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss) (a)		$	0.28	$	0.12	$	0.07	$	(0.61)	$	(0.02)	$	(0.16)
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(0.04)				(0.04)
Foreign currency-related economic hedges			(0.03)										(0.03)
Corette asset impairment									(0.06)				(0.06)
WPD Midlands acquisition-related adjustments:
	Other acquisition-related adjustments		0.01										0.01
Other:
	Loss on Colstrip lease termination to facilitate the sale
	of Montana hydro assets								(0.62)				(0.62)
Effect of anti-dilutive, incremental shares (a)									(0.02)				(0.02)
Total Special Items			(0.02)						(0.74)				(0.76)
Earnings from Ongoing Operations (b)		$	0.30	$	0.12	$	0.07	$	0.13	$	(0.02)	$	0.60

(a) As a result of reported losses during the period, primarily due to the Colstrip lease termination, diluted earnings per share for the PPL total exclude incremental shares as they were anti-dilutive.  The impact from the difference in shares is included in the Supply segment.

(b) The "If-Converted Method" has been applied to PPL's 2011 Equity Units prior to settlement, resulting in $7 million of interest charges (after- tax) being added back to earnings for the three months ended December 31, 2013, and approximately 33 million shares of PPL Common Stock being treated as outstanding.  Both adjustments are only for purposes of calculating diluted earnings per share.

Reconciliation of Segment Reported Earnings (Loss) to Earnings from Ongoing Operations
(After-Tax)
(Unaudited)
Year-to-Date December 31, 2013		(millions of dollars)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	922	$	307	$	209	$	(272)	$	(36)	$	1,130
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(77)				(77)
Foreign currency-related economic hedges			(29)										(29)
Corette asset impairment									(39)				(39)
WPD Midlands acquisition-related adjustments:
	Separation benefits		(4)										(4)
	Other acquisition-related adjustments		8										8
Other:
	LKE discontinued operations				2								2
	EEI adjustments				1								1
	Change in tax accounting method related to repairs								(3)				(3)
	Counterparty bankruptcy								1				1
	Windfall tax litigation		43										43
	Change in WPD line loss accrual		(35)										(35)
	Change in U.K. tax rate		84										84
	Loss on Colstrip lease termination to facilitate the sale
	of Montana hydro assets								(413)				(413)
Total Special Items			67		3				(531)				(461)
Earnings from Ongoing Operations		$	855	$	304	$	209	$	259	$	(36)	$	1,591
		(per share - diluted) (a)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	1.43	$	0.48	$	0.31	$	(0.41)	$	(0.05)	$	1.76
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(0.11)				(0.11)
Foreign currency-related economic hedges			(0.03)										(0.03)
Corette asset impairment									(0.06)				(0.06)
WPD Midlands acquisition-related adjustments:
	Separation benefits		(0.01)										(0.01)
	Other acquisition-related adjustments		0.01										0.01
Other:
	Change in tax accounting method related to repairs								(0.01)				(0.01)
	Windfall tax litigation		0.06										0.06
	Change in WPD line loss accrual		(0.05)										(0.05)
	Change in U.K. tax rate		0.13										0.13
	Loss on Colstrip lease termination to facilitate the sale
	of Montana hydro assets								(0.62)				(0.62)
Total Special Items			0.11						(0.80)				(0.69)
Earnings from Ongoing Operations		$	1.32	$	0.48	$	0.31	$	0.39	$	(0.05)	$	2.45

(a) The "If-Converted Method" has been applied to PPL's Equity Units prior to settlement, resulting in $44 million of interest charges (after-tax) being added back to earnings for the twelve months ended December 31, 2013, and approximately 53 million shares of PPL Common Stock being treated as outstanding.  Both adjustments are only for purposes of calculating diluted earnings per share.

EX-99.2

© PPL Corporation 2015

4th Quarter Earnings Call

PPL Corporation

February 5, 2015

U.K. Regulated

KY Regulated

PA Regulated

Supply

Exhibit 99.2

© PPL Corporation 2015

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.

© PPL Corporation 2015

3

2014 Earnings Results, Operational Overview
and 2015 Earnings Forecast

Segment Results and Financial Overview

Q&A

W. H. Spence

V. Sorgi

Agenda

© PPL Corporation 2015

4

Earnings Results

© PPL Corporation 2015

5

2015 Ongoing Earnings Forecast

Segment	2014A	2014 Regulated Utility Earnings (Adjusted)	2015E Midpoint(1)
U.K. Regulated	$1.37	$1.37	$1.38
Kentucky Regulated	0.47	0.47	0.48
PA Regulated	0.40	0.40	0.39
Supply	0.29	----	----
Corporate and Other(2)	(0.08)	(0.21)	(0.10)
Total	$2.45	$2.03	$2.15

$2.45

$2.25

$2.03

Note:See Appendix for the reconciliation of 2014 reported earnings (loss) to earnings from ongoing operations to regulated utility earnings from ongoing operations (adjusted).

(1)   2015 earnings presented here exclude any earnings from PPL Energy Supply and net costs associated with the Supply spinoff.However, PPL Energy Supply will be part of PPL Corporation’s
        consolidated earnings for a portion of 2015 based on an expected closing in Q2 2015.

(2)   This category primarily includes unallocated corporate-level financing and other costs. For 2014, regulated utility earnings from ongoing operations (adjusted) reflects the full impact of dissynergies
        related to the spinoff of PPL Energy Supply: Indirect O&M ($0.07), Interest ($0.05) and Depreciation ($0.01).

$2.05

© PPL Corporation 2015

6

•WPD named Utility of the Year

•Update on Kentucky Rate Cases

•Update on Major Capital Projects

2014 Regulated Operational Overview

© PPL Corporation 2015

7

Note:Total includes Residential, Commercial and Industrial customer classes as well as “Other”, which is not depicted on the charts above.

U.S. Regulated Volume Variances

Weather-Normalized (charted)	0.1%	1.5%	1.1%	0.8%	0.3%	0.8%	1.0%	0.7%
Actual	-4.1%	-0.1%	1.1%	-1.6%	0.6%	0.9%	1.0%	0.7%

© PPL Corporation 2015

8

2014 Supply Operational Overview

•Montana hydro sale complete

•Strong 2014 fleet performance

•Energy Supply spin update

© PPL Corporation 2015

9

•Energy Supply spin expected to close in Q2

•WPD focused on executing plan for RIIO-ED1

•LG&E and KU rate cases

•PA rate case

•Execution of $3.6 billion capex program across the
regulated portfolio

•Corporate restructuring

2015 Objectives/Highlights

© PPL Corporation 2015

10

	Q4 2014	Q4 2013	Change
U.K. Regulated	$0.36	$0.30	$0.06
Kentucky Regulated	0.10	0.12	(0.02)
Pennsylvania Regulated	0.10	0.07	0.03
Supply	0.05	0.13	(0.08)
Corporate and Other	(0.03)	(0.02)	(0.01)
Total	$0.58	$0.60	$(0.02)

Ongoing Earnings Overview

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

	2014	2013	Change
U.K. Regulated	$1.37	$1.32	$0.05
Kentucky Regulated	0.47	0.48	(0.01)
Pennsylvania Regulated	0.40	0.31	0.09
Supply	0.29	0.39	(0.10)
Corporate and Other	(0.08)	(0.05)	(0.03)
Total	$2.45	$2.45	$0.00

© PPL Corporation 2015

11

	Year-to-Date
2013 EPS - Ongoing Earnings		$1.32
Utility revenue	0.11
O&M	0.05
Depreciation	(0.02)
Income taxes	(0.06)
Other	(0.03)
Total		0.05
2014 EPS - Ongoing Earnings		$1.37

U.K. Regulated Segment
Earnings Drivers

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

© PPL Corporation 2015

12

	Year-to-Date
2013 EPS - Ongoing Earnings		$0.48
Gross margins	0.07
O&M	(0.03)
Depreciation	(0.01)
Financing costs	(0.01)
Other	(0.03)
Total		(0.01)
2014 EPS - Ongoing Earnings		$0.47

Kentucky Regulated Segment
Earnings Drivers

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

© PPL Corporation 2015

13

	Year-to-Date
2013 EPS - Ongoing Earnings		$0.31
Gross delivery margins	0.10
O&M	0.01
Depreciation	(0.01)
Financing costs	(0.01)
Total		0.09
2014 EPS - Ongoing Earnings		$0.40

Pennsylvania Regulated Segment
Earnings Drivers

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

© PPL Corporation 2015

14

	Year-to-Date
2013 EPS - Ongoing Earnings		$0.39
East energy margins	(0.15)
Financing costs	0.03
Income taxes and other	0.02
Total		(0.10)
2014 EPS - Ongoing Earnings		$0.29

Supply Segment Earnings Drivers

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

© PPL Corporation 2015

15

Note:See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations to regulated utility earnings from ongoing operations (adjusted).

2014 Ongoing Earnings to 2014 Regulated
Utility Ongoing Earnings (Adjusted) Walk

© PPL Corporation 2015

16

2014 Regulated Utility Ongoing Earnings
(Adjusted) to 2015E Earnings Walk

Note:See Appendix for the reconciliation of reported earnings (loss) to earnings from ongoing operations to regulated utility earnings from ongoing operations (adjusted).

($ Per Share)

Revenue:($.14)

Taxes: $.11

Currency: $.06

Other: ($.02)

Margins: $.09

O&M:($.05)

Depreciation:($.01)

Interest: ($.02)

Margins: $.06

O&M:($.03)

Depreciation:($.02)

Interest:($.01)

Taxes:($.01)

Corporate
Restructuring:$ .07

Taxes:$ .02

Other:$ .02

© PPL Corporation 2015

17

Free Cash Flow before Dividends

Free Cash Flow before
Dividends

(Millions of Dollars)

Reconciliation of Cash from
Operations to Free Cash Flow
before Dividends

(Millions of dollars)

Note:Free Cash Flow forecast updated on an annual basis.

(1) 2015E Cash from Operations includes a distribution of $191M from PPL Energy Supply in Q1 of 2015.

(2) 2014A includes proceeds from the sale of Montana hydro facilities which closedin Q4.

		2013A	2014A	2015E
Cash from Operations (1)		$2,857	$3,403	$2,486
Increase (Decrease) in cash due to:
	Capital Expenditures	(4,307)	(4,185)	(3,611)
	Sale of Assets (2)		900
Free Cash Flow before Dividends		$(1,450)	$118	$(1,125)

© PPL Corporation 2015

18

($ in billions)

Note:Corporate and Other capital expenditures average approximately $10 million per year.

(1)WPD figures based on assumed exchange rate of $1.60 / GBP.

(2)Expect between 80% and 90% to receive timely returns via ECR mechanism based on historical experience and future projections.

Operating Segment Capital Expenditures

Significant and stable investment opportunities in regulated utilities

$3.61

$3.33

$3.33

$3.53

$3.78

(1)

(2)

© PPL Corporation 2015

19

($ in billions)

(1)Represents capitalization for LKE, as LG&E and KU rate constructs are based on capitalization.Represents Regulatory Asset Value (RAV) for WPD.

(2)WPD figures based on assumed exchange rate of $1.60 / £ for 2015 - 2019.

5-Year Regulatory Asset Base(1) CAGR:7.0%

Projected Regulated Rate Base Growth

$22.9

$24.6

$26.2

$28.0

$30.1

$32.1

(2)

© PPL Corporation 2015

20

Targeted 4% to 6% EPS Growth Rate Drivers
Through 2017

PA Regulated

–Successful execution of capex plan

–2015 Rate Case with rates effective early 2016

–Minimal load growth

KY Regulated

–Environmental capex spending at $1.3B

–2014 Rate Case with rates effective mid-2015

–Minimal load growth

U.K. Regulated

–Execution of the Ofgem accepted RIIO-ED1 Business plan

–Exchange rate of $1.60 per £

–RPI (inflation rate) - 2.6% for 2015/16; 3.0% for 2016/17

–Incentive revenues

Corp and other

–Eliminate dissynergies of the Supply spin through corporate restructuring

–Equity issuances of $200 million per year

© PPL Corporation 2015

Foreign Currency Hedging Status

21

Foreign Currency Hedging Status 2015 2016 Percentage Hedged Hedged Rate (GBP/USD) Budgeted Rate on Open Position (GBP/USD) EPS Sensitivities: Decrease in Rate (GBP/ USD) 0.05 0.10 97% 70% $1.63 $1.61 $1.60 $1.60 Change in EPS $0.00 ($0.01) $0.00 ($0.03) © PPL Corporation 2015 21

© PPL Corporation 2015

Historical view of GBP Exchange Rate

22

Source:Bloomberg, as of 1/31/2015

© PPL Corporation 2015

23

Appendix

© PPL Corporation 2015

24

Schedule for LG&E and KU Rate Case

Timing	Milestone
01/08/2015	1st Request for information received
01/23/2015	LG&E and KU responses filed
02/06/2015	Supplemental request for information received
02/20/2015	LG&E and KU responses filed
03/06/2015	Intervenor testimony filed
03/23/2015	Requests to intervenors submitted
04/06/2015	Intervenor responses filed
04/17/2015	LG&E/KU Rebuttal testimony filed
TBD	Settlement conference
TBD	Public meetings across the state
04/21/2015	Public hearing in Frankfort
TBD	Order issued (tentative)
07/01/2015	New rates effective

P

Completed

P

P

© PPL Corporation 2015

25

U.K. Regulated Segment

EPS from Ongoing Operations Projection

Note:Assumes foreign currency exchange rate of $1.60/£ for 2015E and 2016E on open positions.

($ Per Share)

Note:See Appendix for the 2014 reconciliation of reported earnings (loss) to earnings from ongoing operations.

© PPL Corporation 2015

26

Note:Assumes foreign currency exchange rate of $1.60/£ for 2015E and 2016E.

($ in millions)

© PPL Corporation 2015

27

Enhancing Value Through Active Hedging

Capacity revenues are expected to be $505 and $455 million for 2015 and 2016 respectively.

(1)Represents expected sales of Supply segment based on current business plan assumptions.

(2)The 2016 ranges of average energy prices for existing hedges were estimated by determining the impact on the existing collars resulting from 2016 power prices at the
5th and 95th percentile confidence levels.

Enhancing Value Through Active Hedging 2015 2016 Baseload Expected Generation(1) (Million MWhs) 49.7 45.4 East 45.4 41.6 West 4.3 3.9 Current Hedges (%) 97- 99% 24- 26% East 98-100% 21- 23% West 87-89% 48-50% Average Hedged Price (Energy Only) ($/ MWh) (2) East $40- 42 $42- 44 West $39- 41 $39- 41 Current Coal Hedges (%) 95% 69% East 93% 58% West 100% 100% Average Consumed Coal Price (Delivered $/ Ton) East $73- 75 $73- 76 West $26- 31 $27- 33 Intermediate/Peaking Expected Generation(1) (Million MWhs) 11.8 9.7 Current Hedges (%) 52% 9% Capacity revenues are expected to be $505 and $455 million for 2015 and 2016 respectively. (1) Represents expected sales of Supply segment based on current business plan assumptions. (2) The 2016 ranges of average energy prices for existing hedges were estimated by determining the impact on the existing collars resulting from 2016 power prices at the 5th and 95th percentile confidence levels. © PPL Corporation 2015 27

© PPL Corporation 2015

28

Competitive Generation Overview

Note:As of December 31, 2014

(1)   Includes owned and contracted generation.

(2)   Other includes PPAs, renewables and NUGS.

(2)

Total 2014 generation output(1)consistent with prior year due to improved gas performance
offset by lower economic operation of coal

© PPL Corporation 2015

29

(1)	Hourly average.
(2)	NYMEX and TETCO M3 forward gas prices on 12/31/2014.
(3)	Market Heat Rate = PJM on-peak power price divided by TETCO M3 gas price.

Market Prices

Market Prices ELECTRIC AT C(1) NYMEX GAS(2) Mid- Columbia On-Peak Off-Peak AT C(1) PJM On-Peak Off-Peak (Per M W D) HEAT RATE(3) TETCO M3 PJM MARKET CAPACITY PRICES 2015 $45 $32 $38 $27 $21 $25 $3.03 $2.50 17.9 $155 2016 $45 $32 $38 $32 $24 $28 $3.46 $3.05 14.7 $139 (1) Hourly average. (2) NYMEX and TETCO M3 forward gas prices on 12/31/2014. (3) Market Heat Rate = PJM on-peak power price divided by TETCO M3 gas price. © PPL Corporation 2015 29

© PPL Corporation 2015

30

Debt Maturities

Note:As of December 31, 2014

(1)Louisville Gas & Electric has several municipal bonds that may be put by the holders before the bonds’ final maturities.These amounts reflect the timing of any put
option.

(2)This amount includes $81 million of Pennsylvania Economic Development Financing Authority bonds due 2037 and $150 million of Pennsylvania Economic Development
Financing Authority bonds due 2038 that may be put by the holders in September 2015.This amount also includes $300 million of REset Put Securities due 2035 that
are required to be put by the holders in October 2015.

($ in millions)

Debt Maturities ($in millions) 2015 2016 2017 2018 2019 PPL Capital Funding $0 $0 $0 $249 $0 LG& E and KU Energy (Holding Co LKE) 400 0 0 0 0 Louisville Gas & Electric (1) 250 25 194 98 40 Kentucky Utilities 250 0 0 0 0 PPL Electric Utilities 100 0 0 0 0 WPD 0 460 100 0 Sub- total $1,000 $485 $294 $347 $40 PPL Energy Supply 535 (2) 354 4 403 4 Total $1,535 $839 $298 $750 $44 Note: As of December 31, 2014 (1) Louisville Gas & Electric has several municipal bonds that may be put by the holders before the bonds’ final maturities. These amounts reflect the timing of any put option. (2) This amount includes $81 million of Pennsylvania Economic Development Financing Authority bonds due 2037 and $150 million of Pennsylvania Economic Development Financing Authority bonds due 2038 that may be put by the holders in September 2015. This amount also includes $300 million of REset Put Securities due 2035 that are required to be put by the holders in October 2015. © PPL Corporation 2015 30

© PPL Corporation 2015

31

Liquidity Profile

Note:As of December 31, 2014

Credit facilities consist of a diverse bank group, with no bank and its affiliates providing an aggregate commitment of more than 10% of the total committed capacity for the

domestic facilities and 13% of the total committed capacity for WPD’s facilities.

(1)As a result of the proposed spinoff transaction, PPL Energy Supply has syndicated a $1.85 billion credit facility which is currently fully committed.This syndicated credit facility
is replacing the existing $3 billion PPL Energy Supply syndicated credit facility and will be effective upon closing of the spinoff transaction.

(2)In October 2014, the KU letter of credit facility was terminated and replaced with a new $198 million letter of credit facility expiring October 2017.

(3)In December 2014, the BBVA uncommitted letter of credit facility was terminated.

Liquidity Profile Entity Facility Expiration Date Capacity (Millions) Letters of Credit & Commercial Paper Issued (Millions) Borrowed (Millions) Unused Capacity (Millions) PPL Capital Funding Syndicated Credit Facility Syndicated Credit Facility Bilateral Credit Facility Uncommitted Credit Facility Nov-2018 Jul- 2019 Mar-2015 $300 300 150 65 $815 $0 0 21 1 $22 $0 0 0 0 $0 $300 300 129 64 $793 PPL Electric Utilities Syndicated Credit Facility Jul- 2019 $300 $1 $0 $299 LG& E and KU Energy (LKE) Syndicated Credit Facility Oct-2018 $75 $0 $75 $0 Louisville Gas & Electric Syndicated Credit Facility Jul- 2019 $500 $264 $0 $236 Kentucky Utilities Syndicated Credit Facility Letter of Credit Facility Jul- 2019 Oct-2017 (2) $400 198 $598 $236 198 $434 $0 0 $0 $164 0 $164 WPD WPD Limited Syndicated Credit Facility WPD (South Wes t) Syndicated Credit Facility WPD (East Midlands) Syndicated Credit Facility WPD (Wes t Midlands) Syndicated Credit Facility Uncommitted Credit Facilities Dec-2016 Jul- 2019 Jul- 2019 Jul- 2019 £ 210 245 300 300 105 £1,160 £ 0 0 0 0 5 £5 £ 103 0 64 0 0 £167 £107 245 236 300 100 £ 988 PPL Energy Supply (1) Syndicated Credit Facility Letter of Credit Facility Uncommitted Credit Facilities Nov-2017 Mar-2015 (3) $3,000 150 100 $3,250 $121 138 22 $281 $630 0 0 $630 $2,249 12 78 $2,339 Note: As of December 31, 2014 Credit facilities consist of a diverse bank group, with no bank and its affiliates providing an aggregate commitment of more than 10% of the total committed capacity for the domestic facilities and 13% of the total committed capacity for WPD’s facilities. (1) As a result of the proposed spinoff transaction, PPL Energy Supply has syndicated a $1.85 billion credit facility which is currently fully committed. This syndicated credit facility is replacing the existing $3 billion PPL Energy Supply syndicated credit facility and will be effective upon closing of the spinoff transaction. (2) In October 2014, the KU letter of credit facility was terminated and replaced with a new $198 million letter of credit facility expiring October 2017. (3) In December 2014, the BBVA uncommitted letter of credit facility was terminated. © PPL Corporation 2015 31

© PPL Corporation 2015

32

Reconciliation of Reported Earnings (Loss) to
Earnings from Ongoing Operations

(After-Tax)
(Unaudited)
4th Quarter 2014		(millions of dollars)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	294	$	65	$	69	$	291	$	(24)	$	695
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									110				110
Foreign currency-related economic hedges			55										55
Spinoff of PPL Energy Supply:
	Change in tax valuation allowances										3		3
	Transition and transaction costs								(1)		(4)		(5)
	Separation benefits								(3)		(1)		(4)
Sale of Montana hydroelectric generating facilities									137				137
Other:
	Mechanical contracting and engineering revenue adjustment								10				10
	Separation benefits - bargaining unit voluntary program								1				1
Total Special Items			55						254		(2)		307
Earnings from Ongoing Operations		$	239	$	65	$	69	$	37	$	(22)	$	388
		(per share - diluted)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	0.44	$	0.10	$	0.10	$	0.43	$	(0.03)	$	1.04
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									0.16				0.16
Foreign currency-related economic hedges			0.08										0.08
Sale of Montana hydroelectric generating facilities									0.20				0.20
Other:
	Mechanical contracting and engineering revenue adjustment								0.02				0.02
Total Special Items			0.08						0.38				0.46
Earnings from Ongoing Operations		$	0.36	$	0.10	$	0.10	$	0.05	$	(0.03)	$	0.58

© PPL Corporation 2015

33

Reconciliation of Reported Earnings (Loss) to
Earnings from Ongoing Operations

(After-Tax)
(Unaudited)
Year-to-Date December 31, 2014		(millions of dollars)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	982	$	312	$	263	$	307	$	(127)	$	1,737
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(6)				(6)
Foreign currency-related economic hedges			127										127
Kerr Dam Project impairment									(10)				(10)
Spinoff of PPL Energy Supply:
	Change in tax valuation allowances										(46)		(46)
	Transition and transaction costs								(1)		(17)		(18)
	Separation benefits								(10)		(12)		(22)
Sale of Montana hydroelectric generating facilities									137				137
Other:
	Change in WPD line loss accrual		(52)										(52)
	Mechanical contracting and engineering revenue adjustment								10				10
	Separation benefits - bargaining unit voluntary program						(2)		(10)				(12)
Total Special Items			75				(2)		110		(75)		108
Earnings from Ongoing Operations		$	907	$	312	$	265	$	197	$	(52)	$	1,629

© PPL Corporation 2015

34

Reconciliation of Reported Earnings (Loss) to
Earnings from Ongoing Operations to Regulated
Utility Earnings from Ongoing Operations (Adjusted)

(After-Tax)
(Unaudited)
Year-to-Date December 31, 2014		(per share - diluted) (a)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	1.48	$	0.47	$	0.39	$	0.46	$	(0.19)	$	2.61
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(0.01)				(0.01)
Foreign currency-related economic hedges			0.19										0.19
Kerr Dam Project impairment									(0.02)				(0.02)
Spinoff of PPL Energy Supply:
	Change in tax valuation allowances										(0.07)		(0.07)
	Transition and transaction costs										(0.02)		(0.02)
	Separation benefits								(0.01)		(0.02)		(0.03)
Sale of Montana hydroelectric generating facilities									0.20				0.20
Other:
	Change in WPD line loss accrual		(0.08)										(0.08)
	Mechanical contracting and engineering revenue adjustment								0.02				0.02
	Separation benefits - bargaining unit voluntary program						(0.01)		(0.01)				(0.02)
Total Special Items			0.11				(0.01)		0.17		(0.11)		0.16
Earnings from Ongoing Operations		$	1.37	$	0.47	$	0.40	$	0.29	$	(0.08)	$	2.45
Regulated Utility Earnings Adjustments (expense) benefit:
Supply segment earnings from ongoing operations (b)									(0.29)				(0.29)
Dissynergies related to the spinoff of PPL Energy Supply: (c)
	Indirect O&M										(0.07)		(0.07)
	Interest expense										(0.05)		(0.05)
	Depreciation										(0.01)		(0.01)
Total Regulated Utility Earnings Adjustments									(0.29)		(0.13)		(0.42)
Regulated Utility Earnings from Ongoing Operations (Adjusted)		$	1.37	$	0.47	$	0.40	$		$	(0.21)	$	2.03
(a)The "If-Converted Method" has been applied to PPL's 2011 Equity Units prior to settlement, resulting in $9 million of interest charges (after-tax) being added back to earnings for the twelve months ended
December 31, 2014, and approximately 11 million shares of PPL Common Stock being treated as outstanding.Both adjustments are only for purposes of calculating diluted earnings per share.
(b)To remove Supply segment earnings from ongoing operations as the segment is expected to be disposed of as a result of the announced spinoff of PPL Energy Supply.
(c)Represents 2014 costs allocated to the Supply segment that will remain with PPL after the expected spinoff of PPL Energy Supply.

© PPL Corporation 2015

35

Reconciliation of Reported Earnings (Loss) to
Earnings from Ongoing Operations

(After-Tax)
(Unaudited)
4th Quarter 2013		(millions of dollars)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	181	$	80	$	49	$	(394)	$	(14)	$	(98)
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(30)				(30)
Foreign currency-related economic hedges			(21)										(21)
Corette asset impairment									(39)				(39)
WPD Midlands acquisition-related adjustments:
	Other acquisition-related adjustments		10										10
Other:
	LKE discontinued operations				1								1
	Loss on Colstrip lease termination to facilitate the sale
	of Montana hydro assets								(413)				(413)
Total Special Items			(11)		1				(482)				(492)
Earnings from Ongoing Operations		$	192	$	79	$	49	$	88	$	(14)	$	394
		(per share - diluted)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss) (a)		$	0.28	$	0.12	$	0.07	$	(0.61)	$	(0.02)	$	(0.16)
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(0.04)				(0.04)
Foreign currency-related economic hedges			(0.03)										(0.03)
Corette asset impairment									(0.06)				(0.06)
WPD Midlands acquisition-related adjustments:
	Other acquisition-related adjustments		0.01										0.01
Other:
	Loss on Colstrip lease termination to facilitate the sale
	of Montana hydro assets								(0.62)				(0.62)
Effect of anti-dilutive, incremental shares (a)									(0.02)				(0.02)
Total Special Items			(0.02)						(0.74)				(0.76)
Earnings from Ongoing Operations (b)		$	0.30	$	0.12	$	0.07	$	0.13	$	(0.02)	$	0.60
(a) As a result of reported losses during the period, primarily due to the Colstrip lease termination, diluted earnings per share for the PPL total exclude incremental shares as they were anti-dilutive.
	The impact from the difference in shares is included in the Supply segment.
(b) The "If-Converted Method" has been applied to PPL's 2011 Equity Units prior to settlement, resulting in $7 million of interest charges (after-tax) being added back to earnings for the three months ended
	December 31, 2013, and approximately 33 million shares of PPL Common Stockbeing treated as outstanding.Both adjustments are only for purposes of calculating diluted earnings per share.

© PPL Corporation 2015

36

Reconciliation of Reported Earnings (Loss) to
Earnings from Ongoing Operations

(After-Tax)
(Unaudited)
Year-to-Date December 31, 2013		(millions of dollars)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	922	$	307	$	209	$	(272)	$	(36)	$	1,130
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(77)				(77)
Foreign currency-related economic hedges			(29)										(29)
Corette asset impairment									(39)				(39)
WPD Midlands acquisition-related adjustments:
	Separation benefits		(4)										(4)
	Other acquisition-related adjustments		8										8
Other:
	LKE discontinued operations				2								2
	EEI adjustments				1								1
	Change in tax accounting method related to repairs								(3)				(3)
	Counterparty bankruptcy								1				1
	Windfall tax litigation		43										43
	Change in WPD line loss accrual		(35)										(35)
	Change in U.K. tax rate		84										84
	Loss on Colstrip lease termination to facilitate the sale
	of Montana hydro assets								(413)				(413)
Total Special Items			67		3				(531)				(461)
Earnings from Ongoing Operations		$	855	$	304	$	209	$	259	$	(36)	$	1,591
		(per share - diluted) (a)
		U.K.		Kentucky		Pennsylvania				Corporate
		Regulated		Regulated		Regulated		Supply		and Other		Total
Reported Earnings (Loss)		$	1.43	$	0.48	$	0.31	$	(0.41)	$	(0.05)	$	1.76
Special Items (expense) benefit:
Adjusted energy-related economic activity, net									(0.11)				(0.11)
Foreign currency-related economic hedges			(0.03)										(0.03)
Corette asset impairment									(0.06)				(0.06)
WPD Midlands acquisition-related adjustments:
	Separation benefits		(0.01)										(0.01)
	Other acquisition-related adjustments		0.01										0.01
Other:
	Change in tax accounting method related to repairs								(0.01)				(0.01)
	Windfall tax litigation		0.06										0.06
	Change in WPD line loss accrual		(0.05)										(0.05)
	Change in U.K. tax rate		0.13										0.13
	Loss on Colstrip lease termination to facilitate the sale
	of Montana hydro assets								(0.62)				(0.62)
Total Special Items			0.11						(0.80)				(0.69)
Earnings from Ongoing Operations		$	1.32	$	0.48	$	0.31	$	0.39	$	(0.05)	$	2.45
(a)The "If-Converted Method" has been applied to PPL's Equity Units prior to settlement, resulting in $44 million of interest charges (after-tax) being added back to earnings for the twelve months ended December 31, 2013, and approximately
53 million shares of PPL Common Stock being treated as outstanding.Both adjustments are only for purposes of calculating diluted earnings per share.

© PPL Corporation 2015

37

Gross Margins Summary

Gross Margins Summary (Millions of Dollars) 2014 Twelve Months Ended December 31, 2013 Change Per Share Diluted (after- tax) KY Gross Margins $1,838 $1,760 $78 $0.07 Distribution Transmission Total PA Gross Delivery Margins $$837 335 1,172 $803 251 $1,054 $34 84 $118 $0.03 0.07 $0.10 Eastern U.S. Western U.S. Unregulated Gross Energy Margins Total $$1,591 195 1,786 $1,756 218 $1,974 $$(165) (23) (188) $$(0.15) (0.02) (0.17) © PPL Corporation 2015 37

© PPL Corporation 2015

38

Reconciliation of Year-to-Date
Margins to Operating Income

Reconciliation of Year- to- Date Margins to Operating Income Twelve Months Ended December 31, 2014 Twelve Months Ended December 31, 2013 (Millions of Dollars) Unregulated Unregulated Kentucky PA Gross Gross Kentucky PA Gross Gross Gross Delivery Energy Operating Gross Delivery Energy Operating Margins Margins Margins Other Income Margins Margins Margins Other Income Operating Revenue s Utility $3,168 $2,044 $2,570 $7,782 $2,976 $1,870 2,355 7,201 PLR intersegment utility revenue (expense) (84) $84 (51) $51 Unregulated wholesale energy 1,490 318 1,808 3,623 (714) 2,909 Unregulated retail energy 1,216 23 1,239 1,015 8 1,023 Energy- related businesses 670 670 588 588 Total Operating Revenues 3,168 1,960 2,790 3,581 11,499 2,976 1,819 4,689 2,237 11,721 Operating Expenses Fuel 965 1,169 27 2,161 896 1,045 3 1,944 Energy purchases 253 587 (121) 322 1,041 217 588 1,745 (583) 1,967 Other operation and maintenance 99 103 22 2,579 2,803 97 82 20 2,580 2,779 Loss on lease termination 697 697 Depreciation 11 1,209 1,220 5 1,137 1,142 Taxes, other than income 2 98 43 231 374 1 95 37 218 351 Energy- related businesses 8 620 628 7 556 563 Total Operating Expenses 1,330 788 1,121 4,988 8,227 1,216 765 2,854 4,608 9,443 Income (Loss) from Discontinued Operations 117 (117) 139 (139) Total $1,838 $1,172 $1,786 $(1,524) $3,272 $1,760 $1,054 $1,974 (2,510) $2,278 © PPL Corporation 2015 38

© PPL Corporation 2015

39

Statements contained in this presentation, including statements with respect to future earnings, cash flows, financing, regulation and
corporate strategy 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:
weather conditions affecting customer energy usage and operating costs; the effect of any business or industry restructuring, including
the ability of PPL Corporation to realize all or a significant portion of the anticipated cost savings from the planned corporate
restructuring efforts following the Supply business spinoff; the profitability and liquidity of PPL Corporation and its subsidiaries; new
accounting requirements or new interpretations or applications of existing requirements; operating performance of generating plants
and other facilities; the length of scheduled and unscheduled outages at our generating plants; environmental conditions and
requirements and the related costs of compliance, including environmental capital expenditures and other expenses; system conditions
and operating costs; development of new projects, markets and technologies; performance of new ventures; asset or business
acquisitions and dispositions; any impact of hurricanes or other severe weather on our business; 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; foreignexchange 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.

Forward-Looking Information Statement

© PPL Corporation 2015

40

Definitions of Non-GAAP Financial Measures

"Earnings from ongoing operations," also referred to as "ongoing earnings," should not be considered as an alternative to reported earnings, or net income attributable to PPL
shareowners, which is an indicator of operating performance determined in accordance with U.S. 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 management's view of PPL's fundamental earnings
performance as another criterion in making 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:

•Adjusted energy-related economic activity (as discussed below).

•Unrealized gains or losses on foreign currency-related economic hedges.

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

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

•Workforce reduction and other restructuring effects.

•Acquisition and disposition-related adjustments.

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

Adjusted energy-related economic activity includes the changes in fair value of positions used to economically hedge a portion of the economic value of the competitive generation
assets, full-requirement sales contracts and retail activities. This economic value is subject to changes in fair value due to market price volatility of the input and output commodities
(e.g., fuel and power) prior to the delivery period that was hedged.Adjusted energy-related economic activity also includes the ineffective portion of qualifying cash flow hedges and
premium amortization associated with options.Unrealized gains and losses related to this activity are deferred and included in earnings from ongoing operations 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 adjusted energy-related economic activity.

“Regulated utility earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL shareowners, which is an
indicator of operating performance determined in accordance with GAAP.PPL believes that “regulated utility earnings from ongoing operations”, although a non-GAAP financial
measure, is also useful and meaningful to investors because it provides management’s view of PPL’s earnings as if the anticipated spinoff of PPL Energy Supply was completed.
Other companies may use different measures to present financial performance.“Regulated utility earnings from ongoing operations” is adjusted for the impact of special items as
described above.It is also adjusted for the Supply segment’s earnings, as the segment is expected to be disposed of upon completion of the announced spinoff of PPL Energy
Supply.“2014 regulated utility earnings from ongoing operations (adjusted)” also reflects, within the Corporate and Other category, the full impact of spinoff dissynergies that would
remain with PPL after the completion of the anticipated transaction, if left unmitigated.Due to the forward-looking nature of any forecasted regulated utility earnings from ongoing
operations for future periods, information to reconcile this non-GAAP financial measure to the most directly comparable GAAP financial measure is not available at this time, as the
company is unable to forecast all special items.

Free cash flow before dividends is derived by deducting capital expenditures, proceeds from the sale of certain assets and other investing activities-net, from cash flow from
operations. Free cash flow before dividends should not be considered as an alternative to cash flow from operations, which is determined in accordance with GAAP. PPL believes that
free cash flow before dividends, although a non-GAAP measure, is an important measure to both management and investors, as 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.

© PPL Corporation 2015

41

Definitions of Non-GAAP Financial Measures

PPL utilizes the following non-GAAP financial measures as indicators of performance for its businesses.These measures are not intended to replace "Operating
Income," which is determined in accordance with GAAP, as an indicator of overall operating performance.Other companies may use different measures to analyze
and report their results of operations.Management believes that these measures provide additional useful criteria to make investment decisions.These
performance measures are used, in conjunction with other information, internally by senior management and PPL's Board of Directors to manage the operations,
analyze actual results compared with budget and, in certain cases, to measure certain corporate financial goals used in determining variable compensation.

"Kentucky Gross Margins“ is a single financial performance measure of the Kentucky Regulated segment's, LKE's, LG&E's and KU's electricity generation,
transmission and distribution operations as well as LKE's and LG&E's distribution and sale of natural gas.In calculating this measure, fuel, energy purchases and
certain variable costs of production (recorded as "Other operation and maintenance" on the Statements of Income) are deducted from revenues.In addition, certain
other expenses, recorded as "Other operation and maintenance", "Depreciation" and "Taxes, other than income" on the Statements of Income, associated with
approved cost recovery mechanisms are offset against the recovery of those expenses, which are included in revenues.These mechanisms allow for direct
recovery of these expenses and, in some cases, returns on capital investments and performance incentives.As a result, this measure represents the net revenues
from the electricity and gas operations.

"Pennsylvania Gross Delivery Margins" is a single financial performance measure of the Pennsylvania Regulated segment's and PPL Electric's electricity delivery
operations, which includes transmission and distribution activities.In calculating this measure, utility revenues and expenses associated with approved recovery
mechanisms, including energy provided as a PLR, are offset with minimal impact on earnings.Costs associated with these mechanisms are recorded in "Energy
purchases," "Other operation and maintenance," which is primarily Act 129 costs, and "Taxes, other than income," which is primarily gross receipts tax.This
performance measure includes PLR energy purchases by PPL Electric from PPL EnergyPlus, which are reflected in "PLR intersegment utility revenue (expense)" .
As a result, this measure represents the net revenues from the Pennsylvania Regulated segment's and PPL Electric's electricity delivery operations.

"Unregulated Gross Energy Margins" is a single financial performance measure of the Supply segment's and PPL Energy Supply's competitive energy activities,
which are managed on a geographic basis.In calculating this measure, energy revenues, including operating revenues associated with certain businesses classified
as discontinued operations, are offset by the cost of fuel, energy purchases, certain other operation and maintenance expenses, primarily ancillary charges, gross
receipts tax, recorded in "Taxes, other than income," and operating expenses associated with certain businesses classified as discontinued operations.This
performance measure is relevant due to the volatility in the individual revenue and expense lines on the Statements of Income that comprise "Unregulated Gross
Energy Margins."This volatility stems from a number of factors, including the required netting of certain transactions with ISOs and significant fluctuations in
unrealized gains and losses.Such factors could result in gains or losses being recorded in either "Unregulated wholesale energy," "Unregulated retail energy" or
"Energy purchases" on the Statements of Income.This performance measure includes PLR revenues from energy sales to PPL Electric by PPL EnergyPlus, which
are reflected in "PLR intersegment utility revenue (expense)" ."Unregulated Gross Energy Margins" excludes adjusted energy-related economic activity, which
includes the changes in fair value of positions used to economically hedge a portion of the economic value of the competitive generation assets, full-requirement
sales contracts and retail activities.This economic value is subject to changes in fair value due to market price volatility of the input and output commodities (e.g.,
fuel and power) prior to the delivery period that was hedged.Adjusted energy-related economic activity includes the ineffective portion of qualifying cash flow
hedges and premium amortization associated with options.Unrealized gains and losses related to this activity are deferred and included in "Unregulated Gross
Energy Margins" over the delivery period of the item that was hedged or upon realization.