SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 24, 2001
PPL Corporation
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(Exact Name of Registrant as Specified in Its Charter)
Pennsylvania 1-11459 23-2758192
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State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
Two North Ninth Street, Allentown, Pennsylvania 18101-1179
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(Address of principal executive offices)
Registrant's Telephone Number, including Area Code: (610) 774-5151
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(Former name or former address, if changed since last report)
ITEM 5. OTHER ITEMS
PPL CORPORATION ANNOUNCES 2000 EARNINGS AND
REVISES EARNINGS FORECASTS FOR 2001, 2002
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On January 24, 2001, PPL Corporation (PPL) announced 2000 earnings of $3.44
per share of common stock, including a non-recurring benefit in 2000 of 16 cents
per share from settlements with various insurers for environmental and other
liabilities and the 1-cent dilutive effect of unexercised stock options. PPL
reported adjusted earnings of $3.28 per share.
PPL indicated that the primary driver for its earnings growth in 2000 was
an increase in margins and volume in its wholesale energy transactions and noted
that the competitive generation market had been even more advantageous than the
company anticipated.
PPL also announced that it is increasing its 2001 earnings forecast to
$3.60 to $3.65 per share, and its 2002 forecast to $3.90 to $4.00 per share.
PPL reported that the major assumptions on which its 2001 and 2002 earnings
forecasts are based are: increased margins on wholesale energy transactions;
increased supply of electricity to sell in the competitive wholesale markets in
the Western United States; new power plants in Arizona, Connecticut and
Pennsylvania; higher earnings from the company's international businesses; and
continued success in controlling costs. PPL also based its forecasts on its
success in capturing the value associated with high forward electricity prices
in both the Eastern and Western U.S. markets. PPL believes that in both the
Eastern and Western markets, the company has adequate generation to meet its
projected retail load obligations and still sell into the wholesale market.
PPL's adjusted earnings of $3.28 per share for 2000 do not include $17.7
million, or about 7 cents per share, that is owed to the company by the
California Independent System Operator (ISO). Recent events in the California
wholesale energy markets and concern regarding the credit quality of
California's investor-owned utilities have created uncertainty as to the
company's ability to collect these receivables. To the extent that PPL does
receive payment for these sales, there would be a benefit for 2001 earnings. The
benefit of receiving this payment from the California ISO is not included in
PPL's 2001 earnings forecast.
* * *
Certain statements contained in this report, including statements with
respect to future earnings, energy prices, supply, sales, margins and
deliveries, operating costs, subsidiary performance, growth, project
development, and generating capacity and performance, are "forward-looking
statements" within the meaning of the federal securities laws. Although PPL
Corporation believes that the expectations and assumptions reflected in these
forward-looking statements are reasonable, these statements involve a number of
risks and uncertainties, and actual results may differ materially from the
results discussed in the statements. The following are among the important
factors that could cause actual results to differ materially from the
forward-looking statements: 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; the profitability and liquidity of PPL Corporation and its
subsidiaries; new accounting requirements or new interpretations or applications
of existing requirements; operating performance of plants and other facilities;
environmental conditions and requirements; system conditions and operating
costs; development of new projects, markets and technologies; performance of new
ventures; political, regulatory or economic conditions in countries where PPL
Corporation or its subsidiaries conduct business; receipt of necessary
governmental approvals; capital market conditions; stock price performance;
foreign exchange rates; and the commitments and liabilities of PPL Corporation
and its subsidiaries. Any such forward-looking statements should be considered
in light of such factors and in conjunction with PPL Corporation's Form 10-K and
other reports on file with or furnished to the Securities and Exchange
Commission.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PPL CORPORATION
By: /s/ Joseph J. McCabe
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Joseph J. McCabe
Vice President and Controller
Dated: January 26, 2001