Exhibit 99.1
PPL CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED)
CONSOLIDATED BALANCE SHEET
(MILLIONS OF DOLLARS)
DEC. 31, 2001 DEC. 31, 2000
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ASSETS
Current Assets $2,466 $1,937
Investments 1,037 1,161
Property, plant and equipment - net
Transmission and distribution 2,692 2,841
Generation 2,518 2,177
General and intangible 317 293
Construction work in progress 209 261
Nuclear fuel and other leased
property 127 123
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Electric utility plant 5,863 5,695
Gas and oil utility plant 197 178
Other property 77 75
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6,137 5,948
Recoverable transition costs 2,174 2,425
Regulatory and other assets 805 889
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Total assets $12,619 $12,360
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LIABILITIES AND EQUITY
Current liabilities $2,081 $2,511
Long-term debt (less current portion) 4,992 4,467
Deferred income taxes and ITC 1,420 1,412
Liability for above market NUG purchases 494 581
Other noncurrent liabilities 830 976
Minority interest 38 54
Company-obligated mandatorily
redeemable securities 825 250
Preferred stock 82 97
Earnings reinvested 1,023 999
Other common equity 1,670 1,849
Treasury stock (836) (836)
----------- ----------
Total liabilities and equity $12,619 $12,360
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6
CONSOLIDATED INCOME STATEMENT
(MILLIONS OF DOLLARS)
3 MONTHS ENDED DEC. 31 12 MONTHS ENDED DEC. 31
---------------------- -----------------------
2001 2000(A) 2001 2000(A)
-------- ----------- ------ -------
OPERATING REVENUES
Retail electric and gas $791 $860 $3,357 $3,167
Wholesale energy marketing and trading 352 507 1,712 2,080
Energy-related businesses 169 138 656 436
--------- ---------- -------- --------
1,312 1,505 5,725 5,683
--------- ---------- -------- --------
OPERATING EXPENSES
Fuel and purchased power 461 570 2,128 2,461
Other operation and maintenance 239 315 1,024 966
Amortization of recoverable transition costs 60 68 251 227
Depreciation 64 65 254 261
Other 191 159 727 566
-------- ------- --- ---
1,015 1,177 4,384 4,481
-------- ------- ----- ------
OPERATING INCOME 297 328 1,341 1,202
------- ------ ----- -----
OTHER INCOME AND (DEDUCTIONS)
Write-down of International Energy Projects (336) (336)
Cancellation of Generation Projects (150) (150)
Other 1 (23) 17 (15)
------- ------- -------- --------
(485) (23) (469) (15)
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INCOME (LOSS) BEFORE INTEREST, INCOME TAXES
AND MINORITY INTEREST (188) 305 872 1,187
Interest expense 109 102 392 376
Income taxes 14 79 261 294
Minority interest (6) 0 (2) 4
------- -------- ----- -------
INCOME (LOSS) BEFORE EXTRAORDINARY ITEMS (305) 124 221 513
Extraordinary items (net of tax) 0 11 0 11
-------- -------- ------- ------
INCOME (LOSS) BEFORE CUMULATIVE EFFECT OF A
CHANGE IN ACCOUNTING PRINCIPLE (305) 135 221 524
Cumulative effect of a change in accounting
principle (net of tax) 10 0 10 0
------ ----- ------- ------
INCOME (LOSS) BEFORE DIVIDENDS ON PREFERRED
SECURITIES (295) 135 231 524
Dividends - preferred securities 17 7 52 26
-------- -------- -- -------
NET INCOME (LOSS) AVAILABLE FOR COMMON STOCK ($312) $128 $179 $498
====== ====== ==== ======
EARNINGS PER SHARE OF COMMON STOCK - BASIC
Income from core operations $0.87 $0.88 $4.24 $3.29
Unusual items (3.00) 0.00 (3.01) 0.16
------ ------ ----- ----
Net Income (loss) available for common ($2.13) $0.88 $1.23 $3.45
stock ====== ===== ===== =====
EARNINGS PER SHARE OF COMMON STOCK - DILUTED
Income from core operations $0.87 $0.87 $4.22 $3.28
Unusual items (2.99) 0.00 (3.00) 0.16
------ ------ ----- ------
Net Income (loss) available for common ($2.12) $0.87 $1.22 $3.44
stock ====== ===== ===== =====
AVERAGE SHARES OUTSTANDING (THOUSANDS)
Basic 146,483 144,906 145,974 144,350
Diluted 146,804 145,822 146,614 144,782
(a) Certain amounts have been reclassified to conform to the current year
presentation.
7
KEY INDICATORS
FINANCIAL
12 MONTHS ENDED 12 MONTHS ENDED
DEC. 31, 2001 DEC. 31, 2000
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Dividends declared per share $1.06 $1.06
Book value per share (a) $12.67 $13.87
Market price per share (a) $34.8500 $45.1880
Dividend yield 3.0% 2.3%
Dividend payout ratio - diluted (b) 25% 32%
Price/earnings ratio - diluted (b) 8.3 13.8
Return on average common equity (b) 28.80% 27.14%
(a) End of period
(b) Based on earnings from core operations
OPERATING - DOMESTIC ENERGY
3 MONTHS ENDED DEC. 31 12 MONTHS ENDED DEC. 31
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PPL CORP.
(millions of kwh) PERCENT PERCENT
2001 2000 CHANGE 2001 2000 CHANGE
---- ---- ------ ---- ---- ------
Retail
Delivered (a) 7,934 8,281 -4.2% 34,610 33,907 2.1%
Supplied 8,652 9,370 -7.7% 37,551 37,758 -0.5%
Wholesale
East 4,769 6,246 -23.6% 19,125 31,585 -39.4%
West
Montana Power (b) 1,201 1,253 -4.2% 4,717 5,096 -7.4%
Other 1,112 1,069 4.0% 3,841 4,244 -9.5%
(a) Electricity delivered to retail customers represents the kwh
delivered to customers within PPL Electric Utilities Corp.'s service territory.
(b) Energy sold to Montana Power for retail customers under power sale
agreements that expire on or before June 30, 2002.