PPL Corporation Reports Strong 2012 Earnings, Increases Common Stock Dividend

Thu Feb 14, 2013 7:15am EST

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-- Reported earnings of $2.60 per share and earnings from ongoing operations of
$2.42 per share exceed 2012 forecast ranges
ALLENTOWN, Pa.,  Feb. 14, 2013  /PRNewswire/ -- PPL Corporation (NYSE: PPL)
announced on Thursday (2/14) strong 2012 earnings that exceeded forecast ranges,
a 2013 earnings forecast range of  $2.25 to $2.50  per share, and an increase in
its quarterly common stock dividend - the 11th such increase in the past 12
years.

PPL's 2012 reported earnings were  $1.526 billion, or  $2.60  per share,
compared with  $1.495 billion, or  $2.70  per share in 2011. Per share earnings
in 2012 include dilution of  $0.14  per share because of common stock issued in 
April 2011  to fund the acquisition of the  Midlands  businesses in the  United
Kingdom.

Adjusting for special items, PPL's earnings from ongoing operations were  $1.417
billion, or  $2.42  per share, in 2012 compared with  $1.509 billion, or  $2.73 
per share, in 2011.  

The increase in the quarterly common stock dividend to  $0.3675  per share is
payable  April 1, 2013, to shareowners of record as of  March 8, 2013.  On an
annualized basis, the dividend is  $1.47  per share, up from  $1.44  per share.
PPL has increased its dividend in 11 of the last 12 years; the new dividend rate
reflects a 177 percent increase over that 12-year period.

"Given the significant challenges of 2012, we are very pleased with the earnings
we are announcing today, which exceed our forecast ranges," said  William H.
Spence, PPL's chairman, president and chief executive officer. PPL's forecast
ranges for 2012 were  $2.37 to $2.47  per share for reported earnings and  $2.30
to $2.40  per share for earnings from ongoing operations.  

"Our strong earnings - and steadily increasing dividends - deliver significant
value to shareowners. Our 2012 performance also demonstrates our ability to meet
the commitments we made regarding the major acquisitions in  Kentucky  and the 
United Kingdom, and reflects the persistent efforts of PPL people to manage
through the challenges of the competitive wholesale power market," Spence said. 


PPL's reported earnings for the fourth quarter of 2012 were  $359 million, or 
$0.60  per share, compared with  $454 million, or  $0.78  per share in the
fourth quarter of 2011. Adjusting for special items, fourth quarter earnings
from ongoing operations were  $292 million, or  $0.49  per share, compared with 
$410 million, or  $0.71  per share in the fourth quarter of 2011.  

PPL also announced its 2013 earnings forecast range of  $2.25 to $2.50  per
share, with a midpoint of  $2.37  per share. PPL is projecting that its
rate-regulated businesses will account for 85 percent of 2013 earnings, compared
with 72 percent of ongoing earnings in 2012 and 58 percent of ongoing earnings
in 2011.

"The 2013 earnings forecast reflects increased revenue from our three regulated
businesses and lower energy margins for our supply business resulting largely
from the roll-off of higher-priced hedges," Spence said.  

PPL's 2013 earnings forecast also includes an additional scheduled outage at the
 Susquehanna  nuclear power plant in  Pennsylvania  that accelerates PPL's plan
to address turbine blade issues that have affected both  Susquehanna  units.

"While the additional scheduled  Susquehanna  outage impacts projected 2013
earnings by about  5 cents  per share, implementing a long-term solution sooner
than previously planned reduces future risk and minimizes the overall financial
effect on PPL," Spence said.  

2012 Earnings Details

PPL's 2012 reported earnings include net special item credits of  $109 million,
or  $0.18  per share, compared with net special item charges of  $14 million, or
 $0.03  per share, in 2011.  

The special item credits for 2012 include  $0.13  per share to adjust a U.K.
liability related to line losses,  $0.13  per share for a reduction in the U.K.
corporate income tax rate, and  $0.07  per share for adjusted energy-related
economic activity. These special item credits were partially offset by special
item charges that include  $0.06  per share for foreign currency-related
economic hedges,  $0.03  per share for coal contract modification payments and 
$0.03  per share for an impairment of an equity method investment in the
Kentucky Regulated segment.  

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 include the impact of
adjusted energy-related economic activity (principally changes in fair value of
economic hedges and the ineffective portion of qualifying cash flow hedges),
acquisition-related adjustments, and other impacts fully detailed at the end of
this news release.

 (Dollars in millions, except for per share amounts)                            
                                                      2012    2011    % Change  
 Reported Earnings                                    $1,526  $1,495  2%        
 Reported Earnings Per Share                          $2.60   $2.70   -4%       
 Earnings from Ongoing Operations                     $1,417  $1,509  -6%       
 Earnings from Ongoing Operations Per Share           $2.42   $2.73   -11%      


Fourth Quarter 2012 Earnings Details

PPL's reported earnings for the fourth quarter of 2012 include net special item
credits of  $0.11  per share. The special item credits include  $0.13  per share
to adjust a U.K. liability related to line losses and  $0.02  per share for
adjusted energy-related economic activity. The credits were partially offset by
special item charges including  $0.03  per share for an impairment of an equity
method investment in the Kentucky Regulated segment and  $0.01  per share for
foreign currency-related economic hedges.

 

 (Dollars in millions, except for per share amounts)

                                             4th  Quarter  4th  Quarter            
                                             2012          2011          % Change  
 Reported Earnings                           $359          $454          -21%      
 Reported Earnings Per Share                 $0.60         $0.78         -23%      
 Earnings from Ongoing Operations            $292          $410          -29%      
 Earnings from Ongoing Operations Per Share  $0.49         $0.71         -31%      


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

Annual and Fourth-Quarter 2012 Earnings by Segment

The following chart shows PPL's earnings by segment for 2012 and the fourth
quarter of 2012, compared with the same periods of 2011.

 Per share                           Year                                        4th  Quarter                               
 Earnings from ongoing operations    2012             2011                     2012              2011                   
                                                                                                                
 Kentucky Regulated                  $    0.33           $   0.40          $    0.08            $   0.06        
 U.K. Regulated                           1.19               0.87               0.29                0.28        
 Pennsylvania Regulated                   0.22               0.31               0.05                0.10        
 Supply                                   0.68               1.15               0.07                0.27        
 Total                               $    2.42           $   2.73          $    0.49            $   0.71        
                                                                                                                
 Special items                                                                                                  
                                                                                                                
 Kentucky Regulated                  $    (0.03)         $   -             $    (0.03)          $   -           
 U.K. Regulated                           0.18               (0.28)             0.12                (0.12)      
 Pennsylvania Regulated                   -                  -                  -                   -           
 Supply                                   0.03               0.25               0.02                0.19        
 Total                               $    0.18           $   (0.03)        $    0.11            $   0.07        
                                                                                                                
 Reported earnings                                                                                              
                                                                                                                
 Kentucky Regulated                  $    0.30           $   0.40          $    0.05            $   0.06        
 U.K. Regulated                           1.37               0.59               0.41                0.16        
 Pennsylvania Regulated                   0.22               0.31               0.05                0.10        
 Supply                                   0.71               1.40               0.09                0.46        
 Total                               $    2.60           $   2.70          $    0.60            $   0.78        


(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 Segment Earnings from Ongoing Operations  

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 2012 by  $0.07  per share
compared to a year ago primarily due to higher operation and maintenance
expense, higher depreciation, higher property taxes, losses from an equity
method investment and dilution of  $0.02  per share, partially offset by lower
income taxes.   

Segment earnings from ongoing operations in the fourth quarter of 2012 increased
by  $0.02  per share compared with the fourth quarter of 2011 primarily due to
higher retail margins as a result of returns on new environmental investments,
increased residential sales due to customer growth, and more seasonable weather
than in 2011.

U.K. Regulated Segment

PPL's U.K. Regulated segment 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 2012 increased by  $0.32  per share
compared to a year ago primarily due to four additional months of earnings from
the WPD Midlands businesses, higher delivery revenue and lower U.K. income
taxes, partially offset by higher U.S. income taxes, higher depreciation, a less
favorable currency exchange rate, and dilution of  $0.07  per share.

Segment earnings from ongoing operations in the fourth quarter of 2012 increased
by  $0.01  per share compared with the fourth quarter of 2011 primarily due to
higher delivery revenue, partially offset by higher operation and maintenance
expense and higher income taxes.

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 2012 decreased by  $0.09  per share
compared to a year ago primarily due to higher operation and maintenance
expense, higher income and non-income taxes, lower distribution margins as a
result of mild weather early in the year, higher depreciation and dilution of 
$0.01  per share, partially offset by higher transmission revenue and lower
financing costs due to the redemption of  $250 million  of preferred securities.

Segment earnings from ongoing operations in the fourth quarter of 2012 decreased
by  $0.05  per share compared with the fourth quarter of 2011 primarily due to
higher operation and maintenance expense and higher income and non-income taxes,
partially offset by higher transmission revenue, higher distribution margins due
to colder weather and lower financing costs.

Supply Segment

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

Segment earnings from ongoing operations in 2012 decreased by  $0.47  per share
compared to a year ago primarily due to lower Eastern energy margins resulting
from lower baseload energy and capacity prices, lower Western energy margins
resulting from an early 2012 contract termination related to the bankruptcy of a
large customer, higher operation and maintenance expense, higher depreciation,
higher income taxes, higher financing costs and dilution of  $0.04  per share.  


Segment earnings from ongoing operations in the fourth quarter of 2012 decreased
by  $0.20  per share compared with the fourth quarter of 2011 primarily due to
lower nuclear and fossil-fuel generation output in the East, lower Western
energy margins, higher operation and maintenance expense, higher income taxes
and higher depreciation, partially offset by higher capacity prices.  

2013 Earnings Forecast by Segment

In the fourth quarter of 2012, PPL adopted a new consolidated financing strategy
that, beginning in 2013, will change the presentation of operating results for
purposes of assessing performance by PPL management. The segments will continue
to be Kentucky Regulated, U.K. Regulated, Pennsylvania Regulated and Supply;
however, certain corporate-level financing and other costs will not be allocated
or assigned to segments, but rather will be presented in a separate category,
Corporate and Other, to reconcile segment results to PPL's consolidated results.
Non-financing costs to be presented in this category are not expected to be
significant.

PPL's recent growth in rate-regulated businesses provides the organization with
an enhanced corporate level financing alternative, PPL Capital Funding, Inc.
(Cap Funding), that further enables PPL to support targeted credit profiles cost
effectively across all of PPL's rated companies. As a result, PPL plans to
further utilize Cap Funding in addition to continued direct financing by the
operating companies, as appropriate.   

Cap Funding participated significantly in the financing for the acquisitions of
LKE and WPD Midlands. The associated financing costs, as well as the financing
costs associated with prior issuances of certain other Cap Funding securities,
are and will continue to be assigned to the appropriate segments. The financing
costs associated with Cap Funding's  $400 million  of 3.5% Senior Notes issued
in  October 2012, as well as future securities issuances at Cap Funding, are not
expected to be directly assignable or allocable to any segment and will be
reflected in Corporate and Other beginning in 2013.

 Earnings per share      2013                  2012 actual             
                         
forecast midpoint    
 (ongoing earnings)    
                                                                       
 Kentucky Regulated      $ 0.47                $ 0.33                  
 U.K. Regulated          1.25                  1.19                    
 Pennsylvania Regulated  0.29                  0.22                    
 Supply                  0.40                  0.68                    
 Corporate and Other     (0.04)                -                       
 Total                   $ 2.37                $ 2.42                  


PPL expects lower earnings in 2013 compared with 2012, primarily due to lower
energy margins in the Supply segment, partially offset by higher earnings in
PPL's three regulated segments.  These projected earnings also reflect dilution
of  $0.11  per share associated with 2013 common stock issuances related to
PPL's 2010 Equity Units and  April 2012  forward stock sale.     

Kentucky Regulated Segment  

PPL projects higher segment earnings in 2013 compared with 2012, primarily
driven by electric and gas base rate increases effective  January 1, 2013,
returns on additional environmental capital investments and retail load growth,
partially offset by higher operation and maintenance expense. Dilution for 2013
is expected to be  $0.02  per share.  

U.K. Regulated Segment

PPL projects higher segment earnings in 2013 compared with 2012, primarily
driven by higher electricity delivery revenue and lower income taxes, partially
offset by higher operation and maintenance expense, higher depreciation and
higher interest expense. Dilution for 2013 is expected to be  $0.06  per share. 
  

Pennsylvania Regulated Segment

PPL projects higher segment earnings in 2013 compared with 2012, primarily
driven by higher distribution revenues from a distribution base rate increase
effective  January 1, 2013, and higher transmission margins, partially offset by
higher depreciation. Dilution for 2013 is expected to be  $0.01  per share.

Supply Segment

PPL projects lower segment earnings in 2013 compared with 2012 primarily driven
by lower energy prices, higher fuel costs, higher operation and maintenance
expense, higher depreciation and higher financing costs, which are partially
offset by higher capacity prices and higher nuclear generation output despite
scheduled outages for both  Susquehanna  units to implement a long-term solution
to turbine blade issues. Dilution for 2013 is expected to be  $0.02  per share. 


Corporate and Other

This category primarily includes unallocated corporate-level financing and other
costs.

PPL Corporation (NYSE: PPL), with annual revenue of more than  $12 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 the  United Kingdom, owns more than 18,000 megawatts of
generating capacity in  the United States  and sells energy in key U.S. markets.
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 2012 financial results at  9 a.m. (Eastern Time) Thursday, February 14.
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 702-696-4769 (ID#97396937).

"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 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).
* 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 impacts.
* Acquisition-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 economically to hedge a portion of the economic value of PPL's
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. Also included in adjusted energy-related
economic activity is the ineffective portion of qualifying cash flow hedges, the
monetization of certain full-requirement sales contracts and premium
amortization associated with options. This economic activity is deferred, with
the exception of the full-requirement sales contracts that were monetized, 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.  

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: 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;the length of scheduled and unscheduled outages at our plants;
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 or business
acquisitions and dispositions, and PPL Corporation's ability to realize the
expected benefits from acquired businesses, including the 2010 acquisition of
Louisville Gas and Electric Company and Kentucky Utilities Company and the 2011
acquisition of the Central Networks electricity distribution businesses in the
U.K.; 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 SUBSIDIARIES                                                                                                                              
 CONDENSED CONSOLIDATED FINANCIAL INFORMATION (a)                                                                                                              
                                                                                                                                                       
 Condensed Consolidated Balance Sheets (Unaudited)                                                                                                             
 (Millions of Dollars)                                                                                                                                         
                                                                                                                                                       
                                                                                                                 December 31,         December 31,       
                                                                                                                 2012                 2011               
 Assets                                                                                                                                                  
 Cash and cash equivalents                                                                                         $        901        $        1,202    
 Price risk management assets - current                                                                                     1,525               2,548    
 Other current assets                                                                                                       2,642               2,676    
 Investments                                                                                                                759                 718      
 Property, Plant and Equipment                                                                                                                           
                    Regulated utility plant                                                                                25,196              22,994   
                    Less: Accumulated depreciation - regulated utility plant                                               4,164               3,534    
                                                             Regulated utility plant, net                                 21,032              19,460   
                    Non-regulated property, plant and equipment                                                            12,545              11,608   
                    Less: Accumulated depreciation - non-regulated property, plant and equipment                           5,942               5,676    
                                                             Non-regulated property, plant and equipment, net             6,603               5,932    
                    Construction work in progress                                                                          2,397               1,874    
                    Property, Plant and Equipment, net                                                                     30,032              27,266   
 Regulatory assets                                                                                                          1,483               1,349    
 Goodwill and other intangibles                                                                                             5,083               5,179    
 Price risk management assets - noncurrent                                                                                  572                 920      
 Other noncurrent assets                                                                                                    637                 790      
 Total Assets                                                                                                      $        43,634     $        42,648   
                                                                                                                                                       
 Liabilities and Equity                                                                                                                                  
 Short-term debt                                                                                                   $        652        $        578      
 Long-term debt due within one year                                                                                         751                          
 Accounts payable                                                                                                           1,252               1,150    
 Price risk management liabilities - current                                                                                1,065               1,570    
 Other current liabilities                                                                                                  1,905               1,957    
 Long-term debt                                                                                                             18,725              17,993   
 Deferred income taxes and investment tax credits                                                                           3,715               3,611    
 Price risk management liabilities - noncurrent                                                                             629                 840      
 Accrued pension obligations                                                                                                2,076               1,313    
 Regulatory liabilities                                                                                                     1,010               1,010    
 Other noncurrent liabilities                                                                                               1,356               1,530    
 Common stock and additional paid-in-capital                                                                                6,942               6,819    
 Earnings reinvested                                                                                                        5,478               4,797    
 Accumulated other comprehensive loss                                                                                       (1,940)             (788)    
 Noncontrolling interests                                                                                                   18                  268      
 Total Liabilities and Equity                                                                                      $        43,634     $        42,648   


 (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                        Year Ended                               
                                                                                                        
December 31,                             
December 31,                            
                                                                                                        2012                  2011              2012 (a)              2011 (a)         
                                                                                                                                                                                   
 Operating Revenues                                                                                                                                                                   
                    Utility                                                                               $     1,796          $     1,597      $      6,808         $      6,292    
                    Unregulated retail electric and gas (b)                                                     224                  209               844                  726      
                    Wholesale energy marketing                                                                                                                                       
                                            Realized                                                           1,066                1,130             4,433                3,807    
                                            Unrealized economic activity (b)                                   11                   1,178             (311)                1,407    
                    Net energy trading margins                                                                  (3)                  (16)              4                    (2)      
                    Energy-related businesses                                                                   128                  120               508                  507      
                    Total Operating Revenues                                                                    3,222                4,218             12,286               12,737   
 Operating Expenses                                                                                                                                                                   
                    Operation                                                                                                                                                        
                                            Fuel (b)                                                           432                  454               1,837                1,946    
                                            Energy purchases                                                                                                                        
                                                                    Realized                                  744                  663               2,997                2,130    
                                                                    Unrealized economic activity (b)          (22)                 1,074             (442)                1,123    
                                            Other operation and maintenance                                    740                  626               2,835                2,667    
                    Depreciation                                                                                287                  263               1,100                960      
                    Taxes, other than income                                                                    98                   88                366                  326      
                    Energy-related businesses                                                                   121                  116               484                  484      
                    Total Operating Expenses                                                                    2,400                3,284             9,177                9,636    
 Operating Income                                                                                                822                  934               3,109                3,101    
 Other Income (Expense) - net                                                                                    (8)                  6                 (39)                 4        
 Other-Than-Temporary Impairments                                                                                26                                     27                   6        
 Interest Expense                                                                                                247                  220               961                  898      
 Income from Continuing Operations Before Income Taxes                                                           541                  720               2,082                2,201    
 Income Taxes                                                                                                    181                  262               545                  691      
 Income from Continuing Operations After Income Taxes                                                            360                  458               1,537                1,510    
 Income (Loss) from Discontinued Operations (net of income taxes)                                                                                       (6)                  2        
 Net Income                                                                                                      360                  458               1,531                1,512    
 Net Income Attributable to Noncontrolling Interests                                                             1                    4                 5                    17       
 Net Income Attributable to PPL Shareowners                                                                $     359            $     454        $      1,526         $      1,495    
                                                                                                                                                                                   
 Amounts Attributable to PPL Shareowners                                                                                                                                              
                    Income from Continuing Operations After Income Taxes                                  $     359            $     454        $      1,532         $      1,493    
                    Income (Loss) from Discontinued Operations (net of income taxes)                                                                   (6)                  2        
                    Net Income                                                                            $     359            $     454        $      1,526         $      1,495    
                                                                                                                                                                                   
 Earnings Per Share of Common Stock - Basic                                                                                                                                           
                    Net Income Available to PPL Common Shareowners                                        $     0.61           $     0.78       $      2.61          $      2.71     
                                                                                                                                                                                   
 Earnings Per Share of Common Stock - Diluted (c)                                                                                                                                     
                    Earnings from Ongoing Operations                                                      $     0.49           $     0.71       $      2.42          $      2.73     
                    Special Items                                                                               0.11                 0.07              0.18                 (0.03)   
                    Net Income Available to PPL Common Shareowners                                        $     0.60           $     0.78       $      2.60          $      2.70     
                                                                                                                                                                                   
 Weighted-Average Shares of Common Stock Outstanding                                                                                                                                  
                    (in thousands)                                                                                                                                                   
                    Basic                                                                                       581,492              578,153           580,276              550,395  
                    Diluted                                                                                     583,644              579,347           581,626              550,952  


 (a)  The results of operations for 2012 are not comparable with 2011 due to the acquisition of WPD Midlands.  WPD Midlands' results are consolidated on a one-month lag, and includes eight months of results in 2011, as the date of the acquisition was April 1, 2011.  
 (b)  Includes activity from energy-related contracts to hedge future cash flows that are not eligible for hedge accounting, or for which hedge accounting was not elected.                                                                                                
 (c)  Earnings in 2012 and 2011 were impacted by several special items, as described in the text and tables of this news release.  Earnings from ongoing operations exclude the impact of these special items.                                                             


 PPL CORPORATION AND SUBSIDIARIES                                                                                                                                                              
                                                                                                                                                                                   
 Condensed Consolidated Statements of Cash Flows (Unaudited)                                                                                                                                   
 (Millions of Dollars)                                                                                                                                                                         
                                                                                                                                                                                   
                                                                                                                                                                                     
                                                                                                                                 2012             2011 (a)           2010 (a)         
 Cash Flows from Operating Activities                                                                                                                                                 
                 Net income                                                                                                        $    1,531      $      1,512      $      959      
                 Adjustments to reconcile net income to net cash provided by operating activities                                                                                    
                                              Depreciation                                                                             1,100             961               567      
                                              Amortization                                                                             186               254               213      
                                              Defined benefit plans - expense                                                          166               205               102      
                                              Deferred income taxes and investment tax credits                                         441               582               241      
                                              Impairment of assets                                                                     28                13                120      
                                              Unrealized (gains) losses on derivatives, and other hedging activities                   27                (314)             542      
                                              Provision for Montana hydroelectric litigation                                                             (74)              66       
                 Change in current assets and current liabilities                                                                                                                    
                                              Prepayments                                                                              (5)               294               (318)    
                                              Counterparty collateral                                                                  (34)              (190)             (18)     
                                              Other                                                                                    (26)              56                (20)     
                 Other operating activities                                                                                                                                          
                                              Defined benefit plans - funding                                                          (607)             (667)             (396)    
                                              Other operating activities                                                               (91)              (125)             (25)     
                                                                                    Net cash provided by operating activities         2,716             2,507             2,033    
 Cash Flows from Investing Activities                                                                                                                                                 
                 Expenditures for property, plant and equipment                                                                         (3,057)           (2,487)           (1,597)  
                 Proceeds from the sale of certain non-core generation facilities                                                                         381                        
                 Proceeds from the sale of the Long Island generation business                                                                                              124      
                 Proceeds from the sale of the Maine hydroelectric generation business                                                                                      38       
                 Ironwood Acquisition, net of cash acquired                                                                             (84)                                         
                 Acquisition of WPD Midlands                                                                                                              (5,763)                    
                 Acquisition of LKE, net of cash acquired                                                                                                                   (6,812)  
                 Purchases of nuclear plant decommissioning trust investments                                                           (154)             (169)             (128)    
                 Proceeds from the sale of nuclear plant decommissioning trust investments                                              139               156               114      
                 Proceeds from the sale of other investments                                                                            20                163                        
                 Net (increase) decrease in restricted cash and cash equivalents                                                        96                (143)             85       
                 Other investing activities                                                                                             (35)              (90)              (53)     
                                                                                    Net cash used in investing activities             (3,075)           (7,952)           (8,229)  
 Cash Flows from Financing Activities                                                                                                                                                 
                 Issuance of long-term debt                                                                                             1,223             5,745             4,642    
                 Retirement of long-term debt                                                                                           (108)             (1,210)           (20)     
                 Issuance of common stock                                                                                               72                2,297             2,441    
                 Payment of common stock dividends                                                                                      (833)             (746)             (566)    
                 Redemption of preference stock of a subsidiary                                                                         (250)                               (54)     
                 Debt issuance and credit facility costs                                                                                (17)              (102)             (175)    
                 Contract adjustment payments on Equity Units                                                                           (94)              (72)              (13)     
                 Net increase (decrease) in short-term debt                                                                             74                (125)             70       
                 Other financing activities                                                                                             (19)              (20)              (18)     
                                                                                    Net cash provided by financing activities         48                5,767             6,307    
 Effect of Exchange Rates on Cash and Cash Equivalents                                                                                   10                (45)              13       
 Net Increase (Decrease) in Cash and Cash Equivalents                                                                                    (301)             277               124      
 Cash and Cash Equivalents at Beginning of Period                                                                                        1,202             925               801      
 Cash and Cash Equivalents at End of Period                                                                                         $    901        $      1,202      $      925      


 (a)  LKE's cash flows are consolidated for two months in 2010, as the date of acquisition was November 1, 2010.  WPD Midlands' cash flows are consolidated on a one-month lag, and includes eight months of results in 2011, as the date of acquisition was April 1, 2011.  


 Key Indicators (Unaudited)                                                                                                                                          
                                                                                                                                                       
                                                                                                                             12 Months Ended             
                                                                                                                             December 31,                
 Financial                                                                                                                             2012             2011     
                                                                                                                                                                 
 Dividends declared per share                                                                                                          $ 1.44           $ 1.40   
 Book value per share (a)                                                                                                              $ 18.01          $ 18.72  
 Market price per share (a)                                                                                                            $ 28.63          $ 29.42  
 Dividend yield (a)                                                                                                                    5.0%             4.8%     
 Dividend payout ratio (b)                                                                                                             55%              52%      
 Dividend payout ratio - earnings from ongoing operations (c)                                                                          60%              51%      
 Price/earnings ratio (a)(b)                                                                                                           11.0             10.9     
 Price/earnings ratio - earnings from ongoing operations (a)(c)                                                                        11.8             10.8     
 Return on average common equity                                                                                                       13.76%           14.93%   
 Return on average common equity - earnings from ongoing operations (c)                                                                12.78%           15.08%   
                                                                                                                                                       
 (a)  End of period.                                                                                                                                             
 (b)  Based on diluted earnings per share.                                                                                                                       
 (c)  Calculated using earnings from ongoing operations, which excludes the impact of special items, as described in the text and tables  of this news release.      
                                                                                                                                                        
                                                                                                                                                       
                                                                                                                                                       
 Operating - Domestic & International Electricity Sales (Unaudited)                                                                                                  
                                                                                                                                                       
                                                      3 Months Ended December 31,                               12 Months Ended December 31,                   
                                                                                          Percent                                             Percent  
 (GWh)                                                  2012              2011              Change            2012             2011             Change   
                                                                                                                                                       
 Domestic Retail Delivered                                                                                                                               
             PPL Electric Utilities (a)                8,917             8,854             0.7%              36,023           36,908           (2.4%)   
             LKE                                       7,215             7,119             1.3%              30,908           30,898           0.0%     
                             Total                    16,132            15,973            1.0%              66,931           67,806           (1.3%)   
                                                                                                                                                       
 Domestic Retail Supplied (b)                                                                                                                            
             PPL EnergyPlus                            2,938             2,537             15.8%             11,471           9,249            24.0%    
             LKE                                       7,215             7,119             1.3%              30,908           30,898           0.0%     
                             Total                    10,153            9,656             5.1%              42,379           40,147           5.6%     
                                                                                                                                                       
 International Delivered                                                                                                                                 
             United Kingdom (c)                        19,518            19,487            0.2%              77,467           58,245           33.0%    
                                                                                                                                                       
 Domestic Wholesale Supplied                                                                                                                             
             PPL EnergyPlus - East                     10,405            13,427            (22.5%)           46,585           51,804           (10.1%)  
             PPL EnergyPlus - West                     2,173             2,465             (11.8%)           7,413            10,327           (28.2%)  
             LKE (d)                                   595               1,039             (42.7%)           2,304            3,550            (35.1%)  
                             Total                    13,173            16,931            (22.2%)           56,302           65,681           (14.3%)  
                                                                                                                                                       
 (a)  Prior period volumes were restated to include unbilled volumes.                                                                                                
 (b)  Represents GWh supplied by PPL EnergyPlus to PPL Electric Utilities as PLR, and to other retail customers in Pennsylvania, New  Jersey, Montana, Delaware and Maryland.  Also includes GWh supplied by LKE to retail customers in Kentucky, Virginia and Tennessee. 
 (c)  The WPD Midlands acquisition occurred April 1, 2011 and sales volumes are reported on a one-month lag.  The twelve months  ended December 31, 2012 and 2011 include 51,603 GWh and 31,900 GWh delivered by WPD Midlands. 
 (d)  Represents FERC-regulated municipal and unregulated off-system sales.                                                                                          
                                                                                                                                                       


 Reconciliation of Segment Earnings from Ongoing Operations to Reported Earnings                                                                                                       
 (After Tax)                                                                                                                                                                           
 (Unaudited)                                                                                                                                                                           
                                                                                                                                                                       
 4th Quarter 2012                                            (millions of dollars)                                                                                                   
                                                            Kentucky               U.K.                   Pennsylvania                                                      
                                                            Regulated              Regulated              Regulated                 Supply                Total             
 Earnings from Ongoing Operations                            $      44             $      172            $        37              $      39            $      292       
 Special Items:                                                                                                                                                         
 Adjusted energy-related economic activity, net                                                                                          15                   15        
 Foreign currency-related economic hedges                                                 (5)                                                                 (5)       
 Impairments:                                                                                                                                                           
                           Other asset impairments                 (15)                                                                 (1)                  (16)      
 Acquisition-related adjustments:                                                                                                                                       
                           WPD Midlands                                                                                                                                
                           Separation benefits                                           (2)                                                                 (2)       
 Other:                                                                                                                                                                 
                           Change in U.K. tax rate                                       1                                                                   1         
                           Line loss adjustment                                          74                                                                  74        
 Total Special Items                                                (15)                  68                                             14                   67        
 Reported Earnings                                           $      29             $      240            $        37              $      53            $      359       
                                                                                                                                                                       
                                                                                                                                                                       
                                                                                                                                                                       
                                                            (per share - diluted)                                                                                                   
                                                            Kentucky               U.K.                   Pennsylvania                                                      
                                                            Regulated              Regulated              Regulated                 Supply                Total             
 Earnings from Ongoing Operations                            $      0.08           $      0.29           $        0.05            $      0.07          $      0.49      
 Special Items:                                                                                                                                                         
 Adjusted energy-related economic activity, net                                                                                          0.02                 0.02      
 Foreign currency-related economic hedges                                                 (0.01)                                                              (0.01)    
 Impairments:                                                                                                                                                           
                           Other asset impairments                 (0.03)                                                                                    (0.03)    
 Other:                                                                                                                                                                 
                           Line loss adjustment                                          0.13                                                                0.13      
 Total Special Items                                                (0.03)                0.12                                           0.02                 0.11      
 Reported Earnings                                           $      0.05           $      0.41           $        0.05            $      0.09          $      0.60      
                                                                                                                                                                       


 Reconciliation of Segment Earnings from Ongoing Operations to Reported Earnings                                                                                                                                                                                                                                                                                                              
 (After Tax)                                                                                                                                                                                                                                                                                                                                                                                  
 (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                              
 Year-to-Date December 31, 2012                                                                                  (millions of dollars)                                                                                                                                                                                                                                                      
                                                                                                                Kentucky                                               U.K.                                                   Pennsylvania                                                                                                                                         
                                                                                                                Regulated                                              Regulated (a)                                          Regulated                                              Supply                                                 Total                                  
 Earnings from Ongoing Operations                                                                                $                 193                                 $                 696                                 $                 132                                 $                 396                                 $                 1,417               
 Special Items:                                                                                                                                                                                                                                                                                                                                                                
 Adjusted energy-related economic activity, net                                                                                                                                                                                                                                                      38                                                    38                  
 Foreign currency-related economic hedges                                                                                                                                                (33)                                                                                                                                                              (33)                
 Impairments:                                                                                                                                                                                                                                                                                                                                                                  
                           Adjustments - nuclear decommissioning trust investments                                                                                                                                                                                                                  2                                                     2                   
                           Other asset impairments                                                                                (15)                                                                                                                                                              (1)                                                   (16)                
 Acquisition-related adjustments:                                                                                                                                                                                                                                                                                                                                              
                           WPD Midlands                                                                                                                                                                                                                                                                                                                                       
                           Separation benefits                                                                                                                                          (11)                                                                                                                                                              (11)                
                           Other acquisition-related adjustments                                                                                                                        2                                                                                                                                                                 2                   
                           LKE                                                                                                                                                                                                                                                                                                                                                
                           Net operating loss carryforward and other tax-related adjustments                                      4                                                                                                                                                                                                                       4                   
 Other:                                                                                                                                                                                                                                                                                                                                                                        
                           LKE discontinued operations                                                                            (5)                                                                                                                                                                                                                     (5)                 
                           Change in U.K. tax rate                                                                                                                                      75                                                                                                                                                                75                  
                           Counterparty bankruptcy                                                                                                                                                                                                                                                  (6)                                                   (6)                 
                           Wholesale supply cost reimbursement                                                                                                                                                                                                                                      1                                                     1                   
                           Ash basin leak remediation adjustment                                                                                                                                                                                                                                    1                                                     1                   
                           Coal contract modification payments                                                                                                                                                                                                                                      (17)                                                  (17)                
                           Line loss adjustment                                                                                                                                         74                                                                                                                                                                74                  
 Total Special Items                                                                                                               (16)                                                  107                                                                                                         18                                                    109                 
 Reported Earnings                                                                                               $                 177                                 $                 803                                 $                 132                                 $                 414                                 $                 1,526               
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                (per share - diluted)                                                                                                                                                                                                                                                      
                                                                                                                Kentucky                                               U.K.                                                   Pennsylvania                                                                                                                                         
                                                                                                                Regulated                                              Regulated (a)                                          Regulated                                              Supply                                                 Total                                  
 Earnings from Ongoing Operations                                                                                $                 0.33                                $                 1.19                                $                 0.22                                $                 0.68                                $                 2.42                
 Special Items:                                                                                                                                                                                                                                                                                                                                                                
 Adjusted energy-related economic activity, net                                                                                                                                                                                                                                                      0.07                                                  0.07                
 Foreign currency-related economic hedges                                                                                                                                                (0.06)                                                                                                                                                            (0.06)              
 Impairments:                                                                                                                                                                                                                                                                                                                                                                  
                           Other asset impairments                                                                                (0.03)                                                                                                                                                                                                                  (0.03)              
 Acquisition-related adjustments:                                                                                                                                                                                                                                                                                                                                              
                           WPD Midlands                                                                                                                                                                                                                                                                                                                                       
                           Separation benefits                                                                                                                                          (0.02)                                                                                                                                                            (0.02)              
                           LKE                                                                                                                                                                                                                                                                                                                                                
                           Net operating loss carryforward and other tax-related adjustments                                      0.01                                                                                                                                                                                                                    0.01                
 Other:                                                                                                                                                                                                                                                                                                                                                                        
                           LKE discontinued operations                                                                            (0.01)                                                                                                                                                                                                                  (0.01)              
                           Change in U.K. tax rate                                                                                                                                      0.13                                                                                                                                                              0.13                
                           Counterparty bankruptcy                                                                                                                                                                                                                                                  (0.01)                                                (0.01)              
                           Coal contract modification payments                                                                                                                                                                                                                                      (0.03)                                                (0.03)              
                           Line loss adjustment                                                                                                                                         0.13                                                                                                                                                              0.13                
 Total Special Items                                                                                                               (0.03)                                                0.18                                                                                                        0.03                                                  0.18                
 Reported Earnings                                                                                               $                 0.30                                $                 1.37                                $                 0.22                                $                 0.71                                $                 2.60                
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                              
 (a)                       The results of operations for 2012 are not comparable with 2011 due to the acquisition of WPD Midlands.  WPD Midlands' results  are consolidated on a one-month lag, and include eight months of results in 2011, as the date of acquisition was April 1, 2011.                                                                                                   
                                                                                              
                                                                                                                                                                                                                                                                                                                                                                                             


 Reconciliation of Segment Earnings from Ongoing Operations to Reported Earnings                                                                                                                  
 (After Tax)                                                                                                                                                                                      
 (Unaudited)                                                                                                                                                                                      
                                                                                                                                                                                  
 4th Quarter 2011                                                       (millions of dollars)                                                                                                   
                                                                       Kentucky              U.K.                   Pennsylvania                                                       
                                                                       Regulated             Regulated              Regulated                 Supply                 Total             
 Earnings from Ongoing Operations                                       $      36            $      164            $        58              $      152            $      410       
 Special Items:                                                                                                                                                                    
 Adjusted energy-related economic activity, net                                                                                                    69                    69        
 Foreign currency-related economic hedges                                                           (3)                                                                  (3)       
 Acquisition-related adjustments:                                                                                                                                                  
                           WPD Midlands                                                                                                                                           
                           Separation benefits                                                     (7)                                                                  (7)       
                           Other acquisition-related costs                                         (21)                                                                 (21)      
 Other:                                                                                                                                                                            
                           Montana hydroelectric litigation                                                                                       47                    47        
                           Windfall profits tax litigation                                         (39)                                                                 (39)      
                           Counterparty bankruptcy                                                                                                (6)                   (6)       
                           Wholesale supply cost reimbursement                                                                                    4                     4         
 Total Special Items                                                                                (70)                                           114                   44        
 Reported Earnings                                                      $      36            $      94             $        58              $      266            $      454       
                                                                                                                                                                                  
                                                                                                                                                                                  
                                                                                                                                                                                  
                                                                       (per share - diluted)                                                                                                   
                                                                       Kentucky              U.K.                   Pennsylvania                                                       
                                                                       Regulated             Regulated              Regulated                 Supply                 Total             
 Earnings from Ongoing Operations                                       $      0.06          $      0.28           $        0.10            $      0.27           $      0.71      
 Special Items:                                                                                                                                                                    
 Adjusted energy-related economic activity, net                                                                                                    0.11                  0.11      
 Acquistion-related adjustments:                                                                                                                                                   
                           WPD Midlands                                                                                                                                           
                           Separation benefits                                                     (0.01)                                                               (0.01)    
                           Other acquisition-related costs                                         (0.04)                                                               (0.04)    
 Other:                                                                                                                                                                            
                           Montana hydroelectric litigation                                                                                       0.08                  0.08      
                           Windfall profits tax litigation                                         (0.07)                                                               (0.07)    
                           Counterparty bankruptcy                                                                                                (0.01)                (0.01)    
                           Wholesale supply cost reimbursement                                                                                    0.01                  0.01      
 Total Special Items                                                                                (0.12)                                         0.19                  0.07      
 Reported Earnings                                                      $      0.06          $      0.16           $        0.10            $      0.46           $      0.78      
                                                                                                                                                                                  


 Reconciliation of Segment Earnings from Ongoing Operations to Reported Earnings                                                                                                                                                                                                                                                                                                              
 (After Tax)                                                                                                                                                                                                                                                                                                                                                                                  
 (Unaudited)                                                                                                                                                                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                                                                                                              
 Year-to-Date December 31, 2011                                                                    (millions of dollars)                                                                                                                                                                                                                                                                    
                                                                                                  Kentucky                                                  U.K.                                                      Pennsylvania                                                                                                                                                 
                                                                                                  Regulated                                                 Regulated (a)                                             Regulated                                                 Supply                                                    Total                                    
 Earnings from Ongoing Operations                                                                  $                  220                                   $                  482                                   $                  173                                   $                  634                                   $                  1,509                
 Special Items:                                                                                                                                                                                                                                                                                                                                                                
 Adjusted energy-related economic activity, net                                                                       1                                                                                                                                                                          72                                                       73                   
 Foreign currency-related economic hedges                                                                                                                                      5                                                                                                                                                                          5                    
 Impairments:                                                                                                                                                                                                                                                                                                                                                                  
                           Emission allowances                                                                                                                                                                                                                                                  (1)                                                      (1)                  
                           Renewable energy credits                                                                                                                                                                                                                                             (3)                                                      (3)                  
 Acquisition-related adjustments:                                                                                                                                                                                                                                                                                                                                              
                           WPD Midlands                                                                                                                                                                                                                                                                                                                                       
                           2011 Bridge Facility costs                                                                                                                         (30)                                                                                                                                                                       (30)                 
                           Foreign currency loss on 2011 Bridge Facility                                                                                                      (38)                                                                                                                                                                       (38)                 
                           Net hedge gains                                                                                                                                    38                                                                                                                                                                         38                   
                           Hedge ineffectiveness                                                                                                                              (9)                                                                                                                                                                        (9)                  
                           U.K. stamp duty tax                                                                                                                                (21)                                                                                                                                                                       (21)                 
                           Separation benefits                                                                                                                                (75)                                                                                                                                                                       (75)                 
                           Other acquisition-related costs                                                                                                                    (57)                                                                                                                                                                       (57)                 
                           LKE                                                                                                                                                                                                                                                                                                                                                
                           Sale of certain non-core generation facilities                                                                                                                                                                                                                       (2)                                                      (2)                  
 Other:                                                                                                                                                                                                                                                                                                                                                                        
                           Montana hydroelectric litigation                                                                                                                                                                                                                                     45                                                       45                   
                           Litigation settlement - spent nuclear fuel storage                                                                                                                                                                                                                   33                                                       33                   
                           Change in U.K. tax rate                                                                                                                            69                                                                                                                                                                         69                   
                           Windfall profits tax litigation                                                                                                                    (39)                                                                                                                                                                       (39)                 
                           Counterparty bankruptcy                                                                                                                                                                                                                                              (6)                                                      (6)                  
                           Wholesale supply cost reimbursement                                                                                                                                                                                                                                  4                                                        4                    
 Total Special Items                                                                                                  1                                                        (157)                                                                                                             142                                                      (14)                 
 Reported Earnings                                                                                 $                  221                                   $                  325                                   $                  173                                   $                  776                                   $                  1,495                
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                  (per share - diluted)                                                                                                                                                                                                                                                                    
                                                                                                  Kentucky                                                  U.K.                                                      Pennsylvania                                                                                                                                                 
                                                                                                  Regulated                                                 Regulated (a)                                             Regulated                                                 Supply                                                    Total                                    
 Earnings from Ongoing Operations                                                                  $                  0.40                                  $                  0.87                                  $                  0.31                                  $                  1.15                                  $                  2.73                 
 Special Items:                                                                                                                                                                                                                                                                                                                                                                
 Adjusted energy-related economic activity, net                                                                                                                                                                                                                                                  0.12                                                     0.12                 
 Foreign currency-related economic hedges                                                                                                                                      0.01                                                                                                                                                                       0.01                 
 Impairments:                                                                                                                                                                                                                                                                                                                                                                  
                           Renewable energy credits                                                                                                                                                                                                                                             (0.01)                                                   (0.01)               
 Acquisition-related adjustments:                                                                                                                                                                                                                                                                                                                                              
                           WPD Midlands                                                                                                                                                                                                                                                                                                                                       
                           2011 Bridge Facility costs                                                                                                                         (0.05)                                                                                                                                                                     (0.05)               
                           Foreign currency loss on 2011 Bridge Facility                                                                                                      (0.07)                                                                                                                                                                     (0.07)               
                           Net hedge gains                                                                                                                                    0.07                                                                                                                                                                       0.07                 
                           Hedge ineffectiveness                                                                                                                              (0.02)                                                                                                                                                                     (0.02)               
                           U.K. stamp duty tax                                                                                                                                (0.04)                                                                                                                                                                     (0.04)               
                           Separation benefits                                                                                                                                (0.13)                                                                                                                                                                     (0.13)               
                           Other acquisition-related costs                                                                                                                    (0.10)                                                                                                                                                                     (0.10)               
 Other:                                                                                                                                                                                                                                                                                                                                                                        
                           Montana hydroelectric litigation                                                                                                                                                                                                                                     0.08                                                     0.08                 
                           Litigation settlement - spent nuclear fuel storage                                                                                                                                                                                                                   0.06                                                     0.06                 
                           Change in U.K. tax rate                                                                                                                            0.12                                                                                                                                                                       0.12                 
                           Windfall profits tax litigation                                                                                                                    (0.07)                                                                                                                                                                     (0.07)               
                           Counterparty bankruptcy                                                                                                                                                                                                                                              (0.01)                                                   (0.01)               
                           Wholesale supply cost reimbursement                                                                                                                                                                                                                                  0.01                                                     0.01                 
 Total Special Items                                                                                                                                                           (0.28)                                                                                                            0.25                                                     (0.03)               
 Reported Earnings                                                                                 $                  0.40                                  $                  0.59                                  $                  0.31                                  $                  1.40                                  $                  2.70                 
                                                                                                                                                                                                                                                                                                                                                                              
                                                                                                                                                                                                                                                                                                                                                                              
 (a)                       The results of operations for 2012 are not comparable with 2011 due to the acquisition of WPD Midlands.  WPD Midlands' results  are consolidated on a one-month lag, and include eight months of results in 2011, as the date of the acquisition was April 1, 2011.                                                                                               
                                                                               
                                                                                                                                                                                                                                                                                                                                                                              


SOURCE  PPL Corporation


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

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