PPL Electric Utilities Requests Change in Its Transmission Rate

Change would result in small increase for company's customers

ALLENTOWN, Pa., Sept. 2 /PRNewswire-FirstCall/ -- PPL Electric Utilities
on Thursday (8/28) asked the Federal Energy Regulatory Commission for a change
in the way the company's transmission rates are calculated to support
continued investment in its transmission system.
The company asked for permission to switch to formula-based rates, a
switch that FERC has encouraged to foster modernization of the nation's
transmission grid.
Under formula rates, a fixed earnings level is set for the utility, and
the utility annually adjusts its transmission rates, subject to FERC review.
The process offers an opportunity for public input. The new rate design would
ensure that there is no over-recovery or under-recovery of the actual costs of
providing transmission delivery service.
Transmission rates cover the company's costs to build, operate and
maintain transmission facilities. Transmission lines move bulk electricity
across the regional power system to local communities.
While the costs for some transmission lines are paid for entirely by PPL
Electric Utilities customers, the costs of regional transmission line projects
are shared among all customers in a 13-state region that includes
Pennsylvania.
The rate change request, if approved, would result in an increase of $0.74
to the monthly bill of an average PPL Electric Utilities residential customer.
"This is a very small change to a customer's bill that will enable PPL
Electric Utilities to continue to deliver safe, reliable transmission
service," said David G. DeCampli, president of PPL Electric Utilities. "All of
our customers benefit from a strong transmission system, and that's what this
request is about."
The company is requesting that the new rate take effect Nov. 1, 2008. The
company's transmission rate has not changed since 1998.
FERC, an agency of the federal government, regulates and approves rates
for electric transmission service. The Pennsylvania Public Utility Commission
regulates and approves rates for electric distribution service. Transmission
charges represent about 7 percent of the total electric bill for an average
residential customer of PPL Electric Utilities.
DeCampli said demand for electricity continues to rise, and aging
transmission lines and equipment, much of which were installed decades ago,
will need to be prudently replaced. He said the company's plans include
building new transmission lines to serve growing areas, rebuilding aging lines
and adding more substations to meet increased demand and give the company more
flexibility for rerouting power if problems occur on the grid.
He said the company's request will help ensure it has the financial
resources it needs to continue to provide safe and reliable electric service.
This request would not affect generation charges or distribution rates.
The rate change request would result in an annual revenue increase of about
$20 million.
PPL Electric Utilities Corporation, a subsidiary of PPL Corporation
(NYSE: PPL) that provides electricity delivery services to about 1.4 million
customers in Pennsylvania, has consistently ranked among the best companies
for customer service in the United States. More information is available at
http://www.pplelectric.com.
Statements contained in this news release, including statements with
respect to future transmission system investment, are "forward-looking
statements" within the meaning of the federal securities laws. Although PPL
Electric Utilities Corporation believes that the expectations and assumptions
reflected in these forward-looking statements are reasonable, these statements
involve a number of risks and uncertainties, and actual results may differ
materially from the results discussed in the statements. The following are
among the important factors that could cause actual results to differ
materially from the forward-looking statements: the profitability and
liquidity of PPL Electric Utilities Corporation; receipt of necessary
government permits, approvals and rate relief; capital market conditions and
decisions regarding capital structure; political, regulatory or economic
conditions; new state or federal legislation or regulations; and the
commitments and liabilities of PPL Electric Utilities Corporation. Any such
forward-looking statements should be considered in light of such important
factors and in conjunction with PPL Electric Utilities Corporation's Form 10-K
and other reports on file with the Securities and Exchange Commission.
SOURCE PPL Electric Utilities

Ryan Hill of PPL Corporation, +1-610-774-5997, or fax, +1-610-774-5281