Exhibit 99.2
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January 27, 2000
Contact: John R. Biggar, PP&L Resources (610) 774-5613
Timothy J. Paukovits, PP&L Resources (610) 774-4124
PP&L RESOURCES 2001 EARNINGS FORECAST: 27 PERCENT INCREASE
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OVER ALL-TIME RECORD YEAR IN 1999, 13 PERCENT INCREASE OVER 2000 FORECAST
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ALLENTOWN, Pa.---Just one day after reporting 1999 earnings, which
marked an all-time high, PP&L Resources, Inc. (NYSE: PPL) told financial
analysts in New York City today (1/27) that it expects earnings per share for
2001 of $2.95 to $3.00. The forecast for 2001 earnings represents an increase of
about 27 percent over 1999 adjusted earnings of $2.35 per share and about a 13
percent increase over forecasted 2000 earnings per share of $2.60 to $2.65.
"The success of our integrated corporate strategy to generate and sell
competitively priced energy in key U.S. markets and to operate high-quality
delivery businesses around the world is proven in the numbers," said William F.
Hecht, chairman, president and chief executive officer. "Yesterday, we reported
record earnings results for 1999, and we are forecasting even stronger earnings
growth for 2000 and 2001 than we forecast about a year ago."
John R. Biggar, senior vice president and chief financial officer,
added "As we bring to a close the first full year of electric industry
competition in Pennsylvania, the company has a sound strategy in place, which is
proving to be successful, and we are delivering on our promise to grow earnings
and build value for our shareowners," Biggar said the key drivers for earnings
growth in 2000 and 2001 include:
--Continued growth in retail electric sales and revenues;
--Increased earnings contributions from unregulated investments;
--Improved output at PP&L's generating facilities; and
--Lower operation and maintenance expenses than previously forecast.
The success of PP&L EnergyPlus, the company's competitive retail
marketing subsidiary, over the past year has been coupled with
lower-than-expected loss of customer load as a result of competition and
customer choice in Pennsylvania's deregulated electric generation market. PP&L
EnergyPlus is currently licensed to market energy in five states: Pennsylvania,
Delaware, Maine, Montana and New Jersey.
"We saw an increase of 8 percent in electricity supplied to commercial
and industrial customers during 1999," said Biggar. "And, the electricity we
supplied to residential customers in 1999 increased by 4 percent even though we
didn't compete for customers in that market. We expect to see continued success
in the industrial and commercial energy markets."
"We are providing tremendous value and quality to the customers of the
energy distribution systems that we own and operate in the U.S., as well as in
the United Kingdom and Latin America - the focus of our international
operations," said Hecht.
"Our company's strategy to own and effectively operate power plants
with well-diversified fuel sources in the Northeast and Western U.S. regions
maximizes the value of our physical assets. This, in turn, helps to minimize the
cost of our product and allows us to compete effectively in the deregulated
energy marketplace," said Hecht.
Hecht also sees PP&L Resources' recent Montana acquisition, the
company's largest ever, as a real boost for the company's Western strategy. That
acquisition included 11 hydroelectric power plants and dams, two coal-fired
power plants, a storage reservoir and other related assets totaling 1,315
megawatts. "This is not simply the acquisition of a generation company," said
Hecht. "We're selling energy in the Western markets." Another vital component of
PP&L's Western strategy is the 600-megawatt, natural gas-fired power plant under
construction in Kingman, Ariz., which will supply the needs of the Southwest
starting in 2001.
Based in Allentown, Pa., PP&L Resources, Inc. is a Fortune 500 company
that delivers electricity and natural gas to more than 1.3 million customers in
Pennsylvania; sells wholesale and retail energy in 35 U.S. states and Canada;
generates electricity at power plants in Pennsylvania, Maine and Montana;
delivers electricity to 1.4 million customers in southwest Britain; and delivers
electricity to more than 800,000 customers in Chile, Bolivia and El Salvador.
# # #
Certain statements contained in this news release, including statements
with respect to future earnings, revenues, expenses, performance and financial
results of domestic and foreign subsidiaries, wholesale and retail marketing
results, generating capacity and other statements which are statements of other
than historical facts, are "forward-looking statements" within the meaning of
the federal securities laws. Although PP&L Resources believes that the
expectations and assumptions reflected in these statements are reasonable, there
can be no assurance that these expectations will prove to have been correct.
These forward-looking statements involve a number of risks and uncertainties,
and actual results may differ materially from the results discussed in the
forward-looking statements. The following are among the important factors that
could cause actual results to differ materially from the forward-looking
statements: state and federal regulatory developments; new state or federal
legislation; national or regional economic conditions; market demand and prices
for energy, capacity and fuel; weather variations affecting customer energy
usage; competition in retail and wholesale power markets; the effect of any
business or industry restructuring; PP&L Resources' and PP&L, Inc.'s
profitability and liquidity; new accounting requirements or new interpretations
or applications of existing requirements; operating performance of plants and
other facilities; environmental conditions and requirements; system conditions
and operating costs; performance of new ventures; political, regulatory or
economic conditions in foreign countries where PP&L Global makes investments;
foreign exchange rates; and PP&L Resources' and PP&L, Inc.'s commitments and
liabilities. Any such forward-looking statements should be considered in light
of such important factors and in conjunction with PP&L Resources' 1998 Form 10-K
and interim reports on file with the SEC. New factors that could cause actual
results to differ materially from those described in forward-looking statements
emerge from time to time, and it is not possible for PP&L Resources to predict
all of such factors, or the extent to which any such factor or combination of
factors may cause actual results to differ from those contained in any
forward-looking statement. Any forward-looking statement speaks only as of the
date on which such statement is made, and PP&L Resources undertakes no
obligation to update the information contained in such statement to reflect
subsequent developments or information.