PPL Corporation Reports Third-Quarter Earnings

- Company announces third-quarter reported earnings of $0.05 per share and
earnings from ongoing operations of $0.52 per share

ALLENTOWN, Pa., Oct. 29 /PRNewswire-FirstCall/ -- PPL Corporation (NYSE: PPL)
on Thursday (10/29) announced declines in both third-quarter and nine-month
reported earnings for 2009, compared with the same periods of 2008. PPL's
earnings from ongoing operations, which exclude the effect of special items,
rose in the third quarter but remained lower for the nine-month period,
compared with a year ago.

PPL's reported earnings for the most recent quarter were $0.05 per share,
compared with $0.54 per share a year ago. For the first nine months of 2009,
PPL's reported earnings were $0.67 per share, compared with $1.73 per share a
year ago.

The primary drivers of the 2009 reported earnings declines versus 2008 were
special item charges for certain economic hedge activity and the impact of two
non-recurring income tax matters in the current quarter, as well as an
impairment for the pending sale of generation assets on Long Island, N.Y.,
announced last quarter. The special item charges for the third quarter of 2009
totaled $0.47 per share, compared with net special item credits of $0.09 per
share a year ago. PPL's reported earnings for the first nine months of 2009
included special item charges of $0.76 per share, compared with net special
item credits of $0.17 per share for the same period of 2008.

Earnings from ongoing operations were $0.52 per share in the third quarter of
2009, compared with $0.45 per share a year ago. For the first nine months of
2009, earnings from ongoing operations were $1.43 per share, compared with
$1.56 per share a year ago.

"At this point in the year, we are pleased with our financial performance and
our ability to track ahead of plan, despite ongoing pressure on wholesale
energy prices and customer demand due to the continuing weak economy and mild
weather," said James H. Miller, PPL's chairman, president and chief executive
officer. "Our relatively strong ongoing earnings results for the quarter
reflect the continued benefits of cost-control actions we took early in the
year."

PPL reaffirmed its 2009 forecast of $1.60 to $1.90 per share in earnings from
ongoing operations. PPL's 2009 forecast of reported earnings is $0.84 to $1.14
per share, reflecting special items recorded through Sept. 30, 2009.

The 2009 forecast of reported earnings does not reflect the expected gain on
the sale of PPL's Maine hydroelectric business. As previously announced, the
sale of six hydroelectric facilities to an affiliate of ArcLight Capital
Partners, LLC is expected to result in a special after-tax gain of
approximately $0.06 per share in the fourth quarter of 2009. This figure
excludes an additional special after-tax gain of $0.02 per share in contingent
consideration from ArcLight that would be realized upon completion of PPL's
previously announced sale of three other hydroelectric facilities to the
Penobscot River Restoration Trust.

PPL also reaffirmed its 2010 earnings forecast of $3.10 to $3.50 per share.
"We expect the significant increase in earnings that we forecast for 2010 to
come almost entirely from increased margins in the company's supply business,"
Miller said.

"We remain convinced that our hedge programs, aggressively executed when
forward power prices for 2010 were much higher than they are today, will
provide greater earnings and cash flow predictability," he said.

Third-Quarter 2009 Earnings Details

PPL's reported earnings in the third quarter of 2009 included special item
charges of $0.47 per share: $0.34 per share related to certain economic hedge
activity; $0.07 per share related to a change in the method of accounting for
certain expenditures for income tax purposes; and $0.06 per share for
additional tax expense related to the 2007 sales of its Latin American
businesses. The tax accounting change, for which IRS consent was received, is
expected to provide a cash flow benefit of approximately $200 million in 2009,
as well as smaller cash flow benefits in future periods.

Reported earnings are calculated in accordance with generally accepted
accounting principles (GAAP). Earnings from ongoing operations is a non-GAAP
financial measure that excludes special items. Special items include charges
or credits that are unusual or nonrecurring. Special items also include
unrealized gains and losses from energy-related non-trading economic hedges,
foreign currency-related economic hedges and impairments of securities in
PPL's nuclear decommissioning trust funds.

(Dollars in millions, except for per share amounts)

3rd Quarter
-----------
2009 2008 % Change
---- ---- --------
Reported Earnings $20 $203 -90%
Reported Earnings per Share $0.05 $0.54 -91%
Earnings from Ongoing Operations $195 $168 +16%
Per Share Earnings from Ongoing
Operations $0.52 $0.45 +16%

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

Third-Quarter and Nine-Month2009Earnings by Business Segment

The following chart shows PPL's earnings by business segment for the third
quarter and first nine months of 2009, compared with the same periods of 2008.

3rd Quarter Year to Date
----------- ------------
(per share) 2009 2008 2009 2008
---- ---- ---- ----

Earnings from ongoing operations

Supply $0.33 $0.16 $0.63 $0.60
Pennsylvania Delivery 0.07 0.09 0.26 0.34
International Delivery 0.12 0.20 0.54 0.62
---- ---- ---- ----
Total $0.52 $0.45 $1.43 $1.56
===== ===== ===== =====

Special Items

Supply $(0.41) $0.10 $(0.67) $0.18
Pennsylvania Delivery - (0.01) (0.01) (0.01)
International Delivery (0.06) - (0.08) -
----- --- ----- ---
Total $(0.47) $0.09 $(0.76) $0.17
====== ===== ====== =====

Reported earnings

Supply $(0.08) $0.26 $(0.04) $0.78
Pennsylvania Delivery 0.07 0.08 0.25 0.33
International Delivery 0.06 0.20 0.46 0.62
---- ---- ---- ----
Total $0.05 $0.54 $0.67 $1.73
===== ===== ===== =====

(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 operations of PPL Energy Supply.

Earnings from ongoing operations for PPL's supply business segment increased
in the third quarter of 2009 by $0.17 per share compared with 2008. Directly
affecting this comparison were trading losses in 2008, caused by a dramatic
decline in wholesale energy prices and lack of market liquidity.

Excluding this impact, energy margins were flat for the quarter. Positive
drivers of this segment's quarterly results include higher value from baseload
generation, higher Eastern capacity prices and higher wholesale volumes in the
West. Partially offsetting these benefits were lower margins on load-following
agreements, higher operation and maintenance expenses at PPL's Susquehanna
nuclear plant and higher depreciation.

Earnings from ongoing operations for PPL's supply business segment increased
during the first nine months of 2009 by $0.03 per share compared with a year
ago. This comparison also reflects the effect of trading losses in 2008.
Positive earnings drivers for the nine-month period in 2009 were higher
wholesale volumes in the West; higher capacity prices in the East; higher
baseload generation; and a gain recorded on the repurchase of a portion of PPL
Energy Supply's debt in the first quarter of 2009. Partially offsetting these
favorable impacts were lower marketing margins, due to lower margins on
load-following agreements; higher average fuel expenses; higher income taxes;
and higher depreciation.

Pennsylvania Delivery Segment
PPL's Pennsylvania delivery business segment includes the regulated electric
delivery operations of PPL Electric Utilities and included the delivery
operations of PPL's natural gas and propane businesses prior to their
divestiture in October 2008.

Earnings from ongoing operations for PPL's Pennsylvania delivery business
segment declined in the third quarter of 2009 by $0.02 per share compared with
a year ago. This decline was primarily due to lower delivery revenues,
resulting from the impacts of weather and the economy, and higher financing
costs.

Earnings from ongoing operations for PPL's Pennsylvania delivery business
segment declined during the first nine months of 2009 by $0.08 per share
compared with a year ago. This decline was primarily due to lower delivery
revenues, higher financing costs, and the divestiture of PPL's natural gas and
propane businesses. Partially offsetting this decrease were lower operation
and maintenance expenses.

International Delivery Segment
PPL's international delivery business segment primarily includes the regulated
electricity delivery operations of Western Power Distribution in the United
Kingdom.

Earnings from ongoing operations for PPL's international delivery business
segment declined in the third quarter of 2009 by $0.08 per share compared with
a year ago. This decline was the net result of higher U.K. and U.S. income
taxes, less favorable currency exchange rates and lower financing costs.

Earnings from ongoing operations for PPL's international delivery business
segment declined during the first nine months of 2009 by $0.08 per share
compared with a year ago. This decline was the net result of less favorable
currency exchange rates, higher U.S. income taxes, lower operating expenses,
lower financing costs and lower U.K. income taxes.

2009 Earnings Forecast

PPL projects earnings from ongoing operations of $1.60 to $1.90 per share in
2009, compared with $2.02 per share in 2008. This projected decline is
primarily driven by less favorable currency exchange rates in the U.K. and
higher operation and maintenance expenses, higher depreciation, and lower
delivery revenues in Pennsylvania. These negative factors are expected to be
partially offset by higher energy margins and lower financing costs.

2010 Earnings Forecast

PPL has reaffirmed its 2010 earnings forecast in a range of $3.10 to $3.50 per
share. PPL has hedged nearly 100 percent of its expected baseload generation
output for 2010 and continues to forecast strong growth in 2010 energy margins
based on hedged power and fuel prices, as well as hedged capacity prices in
the PJM Interconnection.

PPL Corporation, headquartered in Allentown, Pa., controls or owns more than
12,000 megawatts of generating capacity in the United States, sells energy in
key U.S. markets and delivers electricity to more than 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 the live webcast of management's
teleconference with financial analysts about third-quarter 2009 financial
results at 9 a.m. EDT Thursday, Oct. 29. 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#36219786).

"Earnings from ongoing operations" excludes the impact of special items.
Special items include charges or credits that are unusual or nonrecurring.
Special items also include unrealized gains and losses from energy-related
non-trading economic hedges, foreign currency-related economic hedges and
impairments of securities in PPL's nuclear decommissioning trust funds. The
energy-related, non-trading economic hedges are used to hedge a portion of the
economic value of PPL's generation assets and PPL's 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. The foreign currency-related economic hedges are
used to hedge a portion of the net income of the international delivery
business segment. This economic value in U.S. dollars is subject to changes in
the British Pound Sterling to the U.S. dollar exchange rate. Management
believes that the exclusion of such amounts provides a better matching of
earnings from ongoing operations to the actual amounts settled for PPL's
underlying hedged assets. 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 measure, is also
useful and meaningful to investors because it provides them with PPL's
underlying earnings performance as another criterion in making their
investment decisions. PPL's management also uses earnings from ongoing
operations in measuring certain corporate performance goals. Other companies
may use different measures to present financial performance.

Statements contained in this news release, including statements with respect
to future earnings, energy prices, margins and sales, growth, revenues,
expenses, cash flow, asset disposition, marketing performance, hedging,
regulation, 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.

PPL CORPORATION AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED FINANCIAL INFORMATION (a)

Condensed Consolidated Balance Sheet (Unaudited)
(Millions of Dollars)

September 30, December 31,
2009 2008 (b)
---- --------
Assets
Cash and cash equivalents $696 $1,100
Price risk management assets - current 1,685 1,224
Assets held for sale 175
Other current assets 1,743 2,059
Investments 582 522
Property, plant and equipment
Electric plant 20,757 20,033
Gas and oil plant 68 68
Other property 163 156
--- ---
20,988 20,257
Less: accumulated depreciation 8,111 7,882
----- -----
12,877 12,375
Regulatory assets 493 737
Goodwill and other intangibles 1,427 1,400
Price risk management assets - noncurrent 1,839 1,392
Other noncurrent assets 427 596
--- ---
Total assets $21,944 $21,405
======= =======

Liabilities and Equity
Short-term debt (including current
portion of long-term debt) $620 $1,375
Price risk management liabilities -
current 1,425 1,324
Other current liabilities 1,748 1,603
Long-term debt (less current portion) 7,250 7,142
Deferred income taxes and investment tax
credits 2,203 1,764
Price risk management liabilities -
noncurrent 927 836
Accrued pension obligations 839 899
Other noncurrent liabilities 995 1,066
Common stock and capital in excess of par
value 2,268 2,200
Earnings reinvested 3,726 3,862
Accumulated other comprehensive loss (376) (985)
Noncontrolling interests 319 319
--- ---
Total liabilities and equity $21,944 $21,405
======= =======

(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.

(b) Certain amounts from 2008 have been reclassified to conform to the
current year presentation.

Condensed Consolidated Income Statement (Unaudited)
(Millions of Dollars, Except per Share Data)

3 Months Ended 9 Months Ended
September 30, September 30,
--------------- ---------------
2009 (a) 2008 (a)(b) 2009 (a) 2008 (a)(b)
-------- ----------- -------- -----------

Operating Revenues
Utility $955 $1,007 $2,901 $3,108
Unregulated retail
electric and gas 34 43 108 110
Wholesale energy
marketing (c)
Realized 999 748 2,564 1,610
Unrealized economic
activity (307) 1,157 (67) 361
Net energy trading
margins 7 (132) 2 (82)
Energy-related
businesses 117 148 321 394
--- --- --- ---
Total Operating
Revenues 1,805 2,971 5,829 5,501
----- ----- ----- -----
Operating Expenses
Operation
Fuel 264 305 708 734
Energy purchases (c)
Realized 750 500 2,049 1,126
Unrealized economic
activity (79) 1,020 255 157
Other operation and
maintenance 317 361 1,043 1,095
Amortization of
recoverable transition
costs 73 73 227 217
Depreciation 120 117 343 345
Taxes, other than
income 70 77 209 224
Energy-related
businesses 109 134 298 361
--- --- --- ---
Total Operating
Expenses 1,624 2,587 5,132 4,259
----- ----- ----- -----
Operating Income 181 384 697 1,242
Other Income - net 9 8 38 32
Other-Than-Temporary
Impairments 6 18 16
Interest Expense 106 119 294 335
--- --- --- ---
Income from Continuing
Operations Before Income
Taxes 84 267 423 923
Income Taxes 34 57 101 277
-- -- --- ---
Income from Continuing
Operations After Income
Taxes 50 210 322 646
Income (Loss) from
Discontinued Operations
(net of income taxes) (24) (2) (53) 22
--- -- --- --
Net Income 26 208 269 668
Net Income Attributable
to Noncontrolling
Interests 6 5 15 15
-- -- -- --
Net Income Attributable
to PPL Corporation $20 $203 $254 $653
=== ==== ==== ====

Amounts Attributable to PPL
Corporation:
Income from Continuing
Operations After Income
Taxes $44 $205 $307 $631
Income (Loss) from
Discontinued Operations
(net of income taxes) (24) (2) (53) 22
--- -- --- --
Net Income $20 $203 $254 $653
=== ==== ==== ====

Earnings Per Share of Common
Stock - Basic
Earnings from Ongoing
Operations $0.52 $0.45 $1.43 $1.56
Special Items (0.47) 0.09 (0.76) 0.18
----- ---- ----- ----
Net Income Available to
PPL Corporation Common
Shareowners $0.05 $0.54 $0.67 $1.74
===== ===== ===== =====

Earnings Per Share of Common
Stock - Diluted
Earnings from Ongoing
Operations $0.52 $0.45 $1.43 $1.56
Special Items (0.47) 0.09 (0.76) 0.17
----- ---- ----- ----
Net Income Available to
PPL Corporation Common
Shareowners $0.05 $0.54 $0.67 $1.73
===== ===== ===== =====

Weighted-Average Shares of
Common Stock Outstanding
(thousands)
Basic 376,384 374,290 375,795 373,394
Diluted 376,716 375,096 376,113 374,984

(a) Earnings in the 2009 and 2008 periods were impacted by several
special items, as described in the text and tables of this news
release. Earnings from ongoing operations excludes the impact of
these special items.

(b) Certain amounts from 2008 have been reclassified to conform to the
current year presentation.

(c) PPL enters into certain non-trading energy or energy-related
contracts to hedge future cash flows that are not eligible for hedge
accounting, or where hedge accounting is not elected. Consistent
with the treatment of the hedged item, unrealized and realized gains
and losses on these transactions are reflected in "Wholesale energy
marketing" or "Energy purchases."

Condensed Consolidated Statements of Cash Flows (Unaudited)
(Millions of Dollars)

9 Months Ended
September 30,
-------------
2009 2008
---- ----

Cash Flows from Operating Activities
Net Income $269 $668
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation 345 347
Amortization of recoverable transition costs and
other 286 286
Defined benefits (29) (55)
Deferred income taxes and investment tax credits 20 (56)
Gains related to the extinguishment of notes (29)
Impairment of assets 109 53
Unrealized (gains) losses on derivatives and other
hedging activities 256 (83)
Changes in working capital (34) (69)
Other operating activities 54 70
-- --
Net cash provided by operating activities 1,247 1,161
----- -----

Cash Flows from Investing Activities
Expenditures for property, plant and equipment (821) (979)
Net expenditures for intangible assets (58) (272)
Net proceeds from (purchases of) other investments 150 (14)
Net (increase) decrease in restricted cash and cash
equivalents 170 (70)
Other investing activities (32) (15)
--- ---
Net cash used in investing activities (591) (1,350)
---- ------

Cash Flows from Financing Activities
Net issuances (retirements) of long-term debt (618) 400
Repurchase of common stock due to the repurchase
program (38)
Payment of common stock dividends (386) (365)
Net increase (decrease) in short-term debt (70) 109
Other financing activities 14 10
-- --
Net cash provided by (used in) financing
activities (1,060) 116
------ ---

Effect of Exchange Rates on Cash and Cash
Equivalents (5)
--

Net Decrease in Cash and Cash Equivalents (404) (78)
Cash and cash equivalents at beginning of period 1,100 430
Cash and cash equivalents included in assets held
for sale (3)
--

Cash and cash equivalents at end of period $696 $349
==== ====

Key Indicators

12 Months Ended
September 30,
-------------
Financial 2009 2008
---- ----

Dividends declared per share $1.37 $1.31
Book value per share (a) $14.92 $14.91
Market price per share (a) $30.34 $37.02
Dividend yield (a) 4.5% 3.5%
Dividend payout ratio (b) 97% 46%
Dividend payout ratio - earnings from
ongoing operations (b)(c) 72% 61%
Price/earnings ratio (a)(b) 21.5 13.0
Price/earnings ratio - earnings from
ongoing operations (a)(b)(c) 16.1 17.1
Return on average common equity 9.78% 19.68%
Return on average common equity -
earnings from ongoing operations (c) 13.39% 15.62%

(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

3 Months Ended 9 Months Ended
September 30, September 30,
--------------- ---------------
Percent Percent
(millions of kwh) 2009 2008 Change 2009 2008 Change
---- ---- ------ ---- ---- ------

Domestic Retail
Delivered (a) 9,061 9,624 (5.8%) 28,086 29,025 (3.2%)
Supplied 9,607 10,207 (5.9%) 29,748 30,732 (3.2%)

International Delivered
United Kingdom 5,825 6,186 (5.8%) 19,806 20,889 (5.2%)

Domestic Wholesale
East 7,914 8,783 (9.9%) 20,446 21,246 (3.8%)
West
NorthWestern
Energy 571 633 (9.8%) 1,698 1,869 (9.1%)
Other West 2,273 3,010 (24.5%) 6,782 8,759 (22.6%)

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

Reconciliation of Business Segment Earnings from Ongoing Operations and
Reported Earnings (Diluted)

3rd Quarter 2009 (millions of dollars)
---------------- ---------------------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $124 $27 $44 $195
Special Items
Unrealized losses from energy-
related, non-trading economic hedges (130) (130)
Unrealized gains from foreign
currency economic hedges 4 4
Income taxes - Latin American businesses (24) (24)
Changes in tax accounting method (25) (25)
--- --- ---
Total special items (155) (20) (175)
---- --- --- ----
Reported Earnings ($31) $27 $24 $20
==== === === ===

3rd Quarter 2009 (per share)
---------------- -----------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $0.33 $0.07 $0.12 $0.52
Special Items
Unrealized losses from energy-
related, non-trading economic hedges (0.34) (0.34)
Unrealized gains from foreign
currency economic hedges
Income taxes - Latin American businesses (0.06) (0.06)
Changes in tax accounting method (0.07) (0.07)
----- ----- -----
Total special items (0.41) (0.06) (0.47)
----- ----- ----- -----
Reported Earnings ($0.08) $0.07 $0.06 $0.05
====== ===== ===== =====

Year-to-Date September 30, 2009 (millions of dollars)
------------------------------- ---------------------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $239 $99 $202 $540
Special Items
Unrealized losses from energy-
related, non-trading economic hedges (168) (168)
Unrealized losses from foreign
currency economic hedges (2) (2)
Adjustments - nuclear decom. trust
investments (Q1, '09; Q2, '09; Q3,
'09) (1) (1)
Impairments & other impacts -
emission allowances (Q1, '09) (15) (15)
Impairments - assets held for sale &
other (Q1, '09; Q2, '09) (36) (1) (1) (38)
Workforce reduction (Q1, '09) (6) (5) (2) (13)
Income taxes - Latin American
businesses (Q3, '09) (24) (24)
Changes in tax accounting method (Q3,
'09) (25) (25)
--- -- --- ---
Total special items (251) (6) (29) (286)
---- -- --- ----
Reported Earnings ($12) $93 $173 $254
==== === ==== ====

Year-to-Date September 30, 2009 (per share)
------------------------------- -----------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $0.63 $0.26 $0.54 $1.43
Special Items
Unrealized losses from energy-
related, non-trading economic hedges (0.45) (0.45)
Unrealized losses from foreign
currency economic hedges (0.01) (0.01)
Adjustments - nuclear decom. trust
investments (Q1, '09; Q2, '09; Q3,
'09)
Impairments & other impacts -
emission allowances (Q1, '09) (0.04) (0.04)
Impairments - assets held for sale &
other (Q1, '09; Q2, '09) (0.10) (0.10)
Workforce reduction (Q1, '09) (0.01) (0.01) (0.01) (0.03)
Income taxes - Latin American
businesses (Q3, '09) (0.06) (0.06)
Changes in tax accounting method (Q3,
'09) (0.07) (0.07)
----- ----- ----- -----
Total special items (0.67) (0.01) (0.08) (0.76)
----- ----- ----- -----
Reported Earnings ($0.04) $0.25 $0.46 $0.67
====== ===== ===== =====

12 Months Ended September 30, 2009 (millions of dollars)
---------------------------------- ---------------------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $317 $138 $260 $715
Special Items
Unrealized losses from energy-
related, non-trading economic hedges (38) (38)
Unrealized losses from foreign
currency economic hedges (2) (2)
Sale of gas and propane businesses
(Q4, '08; Q1, '09) (1) (1)
Adjustments - nuclear decom. trust
investments (Q4, '08; Q1, '09; Q2,
'09; Q3, '09) (13) (13)
Impairments & other impacts -
emission allowances (Q4, '08; Q1,
'09) (13) (13)
Impairments - assets held for sale &
other (Q4, '08; Q1, '09; Q2, '09) (52) (1) (2) (55)
Workforce reduction (Q1, '09) (6) (5) (2) (13)
Income taxes - Latin American
businesses (Q3, '09) (24) (24)
Changes in tax accounting method (Q3,
'09) (25) (25)
--- -- --- ---
Total special items (147) (7) (30) (184)
---- -- --- ----
Reported Earnings $170 $131 $230 $531
==== ==== ==== ====

12 Months Ended September 30, 2009 (per share)
---------------------------------- -----------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $0.84 $0.36 $0.69 $1.89
Special Items
Unrealized losses from energy-
related, non-trading economic hedges (0.10) (0.10)
Unrealized losses from foreign
currency economic hedges (0.01) (0.01)
Sale of gas and propane businesses
(Q4, '08; Q1, '09)
Adjustments - nuclear decom. trust
investments (Q4, '08; Q1, '09; Q2,
'09; Q3, '09) (0.03) (0.03)
Impairments & other impacts -
emission allowances (Q4, '08; Q1,
'09) (0.04) (0.04)
Impairments - assets held for sale &
other (Q4, '08; Q1, '09; Q2, '09) (0.14) (0.14)
Workforce reduction (Q1, '09) (0.01) (0.01) (0.01) (0.03)
Income taxes - Latin American
businesses (Q3, '09) (0.06) (0.06)
Changes in tax accounting method (Q3,
'09) (0.07) (0.07)
----- ----- ----- -----
Total special items (0.39) (0.01) (0.08) (0.48)
----- ----- ----- -----
Reported Earnings $0.45 $0.35 $0.61 $1.41
===== ===== ===== =====

Reconciliation of Business Segment Earnings from Ongoing Operations and
Reported Earnings (Diluted)

3rd Quarter 2008 (millions of dollars)
---------------- ---------------------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $59 $36 $73 $168
Special Items
Unrealized gains from energy-related,
non-trading economic hedges 67 67
Impairments & other impacts -
emission allowances (27) (27)
Adjustments - nuclear decom. trust
investments (1) (1)
Sale of gas and propane businesses (4) (4)
-- -- --
Total special items 39 (4) 35
-- -- --- --
Reported Earnings $98 $32 $73 $203
=== === === ====

3rd Quarter 2008 (per share)
---------------- -----------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $0.16 $0.09 $0.20 $0.45
Special Items
Unrealized gains from energy-related,
non-trading economic hedges 0.18 0.18
Impairments & other impacts -
emission allowances (0.07) (0.07)
Adjustments - nuclear decom. trust
investments (0.01) (0.01)
Sale of gas and propane businesses (0.01) (0.01)
---- ----- -----
Total special items 0.10 (0.01) 0.09
---- ----- ----- ----
Reported Earnings $0.26 $0.08 $0.20 $0.54
===== ===== ===== =====

Year-to-Date September 30, 2008 (millions of dollars)
------------------------------- ---------------------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $225 $128 $233 $586
Special Items
Unrealized gains from energy-related,
non-trading economic hedges 121 121
Impairments & other impacts -
emission allowances (Q3, '08) (27) (27)
Adjustments - nuclear decom. trust
investments (Q2, '08; Q3, '08) (5) (5)
Sale of gas and propane businesses
(Q2, '08; Q3, '08) (5) (5)
Off-site remediation of ash basin
leak (Q2, '08) 1 1
Montana basin seepage litigation (Q1,
'08; Q2, '08) (5) (5)
Synfuel tax adjustment (Q1, '08) (13) (13)
--- -- ---
Total special items 72 (5) 67
-- -- ---- --
Reported Earnings $297 $123 $233 $653
==== ==== ==== ====

Year-to-Date September 30, 2008 (per share)
------------------------------- -----------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $0.60 $0.34 $0.62 $1.56
Special Items
Unrealized gains from energy-related,
non-trading economic hedges 0.32 0.32
Impairments & other impacts -
emission allowances (Q3, '08) (0.07) (0.07)
Adjustments - nuclear decom. trust
investments (Q2, '08; Q3, '08) (0.02) (0.02)
Sale of gas and propane businesses
(Q2, '08; Q3, '08) (0.01) (0.01)
Off-site remediation of ash basin
leak (Q2, '08)
Montana basin seepage litigation (Q1,
'08; Q2, '08) (0.01) (0.01)
Synfuel tax adjustment (Q1, '08) (0.04) (0.04)
----- ----- -----
Total special items 0.18 (0.01) 0.17
---- ----- ----- ----
Reported Earnings $0.78 $0.33 $0.62 $1.73
===== ===== ===== =====

12 Months Ended September 30, 2008 (millions of dollars)
---------------------------------- ---------------------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $333 $163 $315 $811
Special Items
Unrealized gains from energy-related,
non-trading economic hedges 133 133
Impairments & other impacts -
emission allowances (Q3, '08) (27) (27)
Adjustments - nuclear decom. trust
investments (Q2, '08; Q3, '08) (5) (5)
Sale of gas and propane businesses
(Q4, '07; Q2, '08; Q3, '08) (26) (26)
Off-site remediation of ash basin
leak (Q2, '08) 1 1
Montana basin seepage litigation (Q1,
'08; Q2, '08) (5) (5)
Synfuel tax adjustment (Q1, '08) (13) (13)
Workforce reduction (Q4, '07) (4) (1) (4) (9)
Sale of Latin American businesses
(Q4, '07) 213 213
Impairment of transmission rights
(Q4, '07) (1) (1)
-- --- --- --
Total special items 79 (27) 209 261
-- --- --- ---
Reported Earnings $412 $136 $524 $1,072
==== ==== ==== ======

12 Months Ended September 30, 2008 (per share)
---------------------------------- -----------
PA Int'l
Supply Delivery Delivery Total
------ -------- -------- -----

Earnings from Ongoing Operations $0.90 $0.43 $0.83 $2.16
Special Items
Unrealized gains from energy-related,
non-trading economic hedges 0.35 0.35
Impairments & other impacts -
emission allowances (Q3, '08) (0.07) (0.07)
Adjustments - nuclear decom. trust
investments (Q2, '08; Q3, '08) (0.02) (0.02)
Sale of gas and propane businesses
(Q4, '07; Q2, '08; Q3, '08) (0.07) (0.07)
Off-site remediation of ash basin
leak (Q2, '08)
Montana basin seepage litigation (Q1,
'08; Q2, '08) (0.01) (0.01)
Synfuel tax adjustment (Q1, '08) (0.04) (0.04)
Workforce reduction (Q4, '07) (0.01) (0.01) (0.02)
Sale of Latin American businesses
(Q4, '07) 0.57 0.57
Impairment of transmission rights
(Q4, '07)
---- ----- ---- ----
Total special items 0.20 (0.07) 0.56 0.69
---- ----- ---- ----
Reported Earnings $1.10 $0.36 $1.39 $2.85
===== ===== ===== =====

SOURCE PPL Corporation

For news media, George Biechler, +1-610-774-5997; For financial analysts,
Joseph P. Bergstein, +1-610-774-5609