<ARTICLE> UT <CIK> 0000317187 <NAME> PP&L.INC. <MULTIPLIER> 1,000,000 <PERIOD-TYPE> YEAR <FISCAL-YEAR-END> DEC-31-1998 <PERIOD-END> DEC-31-1998 <BOOK-VALUE> PER-BOOK <TOTAL-NET-UTILITY-PLANT> 4,310 <OTHER-PROPERTY-AND-INVEST> 686 <TOTAL-CURRENT-ASSETS> 694 <TOTAL-DEFERRED-CHARGES> 3,148 <OTHER-ASSETS> 0 <TOTAL-ASSETS> 8,838 <COMMON> 1,476 <CAPITAL-SURPLUS-PAID-IN> 44 <RETAINED-EARNINGS> 210 <TOTAL-COMMON-STOCKHOLDERS-EQ> 1,730 <PREFERRED-MANDATORY> 295 <PREFERRED> 171 <LONG-TERM-DEBT-NET> 2,819 <SHORT-TERM-NOTES> 0 <LONG-TERM-NOTES-PAYABLE> 0 <COMMERCIAL-PAPER-OBLIGATIONS> 80 <LONG-TERM-DEBT-CURRENT-PORT> 0 <PREFERRED-STOCK-CURRENT> 0 <CAPITAL-LEASE-OBLIGATIONS> 109 <LEASES-CURRENT> 59 <OTHER-ITEMS-CAPITAL-AND-LIAB> 3,575 <TOT-CAPITALIZATION-AND-LIAB> 8,838 <GROSS-OPERATING-REVENUE> 3,643 <INCOME-TAX-EXPENSE> 273 <OTHER-OPERATING-EXPENSES> 2,842 <TOTAL-OPERATING-EXPENSES> 3,115 <OPERATING-INCOME-LOSS> 528 <OTHER-INCOME-NET> 77 <INCOME-BEFORE-INTEREST-EXPEN> 605 <TOTAL-INTEREST-EXPENSE> 196 <NET-INCOME> (539)<F1> <PREFERRED-STOCK-DIVIDENDS> 48 <EARNINGS-AVAILABLE-FOR-COMM> (587) <COMMON-STOCK-DIVIDENDS> 0 <TOTAL-INTEREST-ON-BONDS> 188 <CASH-FLOW-OPERATIONS> 695 <EPS-PRIMARY> 0 <EPS-DILUTED> 0 <FN> <F1>NET INCOME INCLUDES AN EXTRAORDINARY ITEM OF ($948) MILLION ($1,614 MILLION NET OF $666 MILLION OF INCOME TAXES) REFLECTING THE EFFECTS OF A PENNSYLVANIA PUBLIC UTILITY COMMISSION RESTRUCTURING ORDER AND DEREGULATION PP&L'S ELECTRIC GENERATION OPERATIONS. </FN>