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PPL Corporation Discloses Exposure in Enron Situation


ALLENTOWN, Pa. (Nov. 30, 2001) - PPL Corporation (NYSE: PPL) today (Nov. 30) said it has a current net exposure of less than $10 million with Enron Corp. from trading activities. Additionally, if Enron does not fulfill its contractual obligations, PPL has a "mark to market" exposure in future years that averages about $6 million annually under several long-term electricity supply contracts that extend through 2006. PPL has discontinued sales to Enron and has requested collateral from Enron, as provided by the terms of its energy sales agreements.

John Biggar, executive vice president and chief financial officer of PPL Corporation, noted that the company plans to increase its reserve related to its credit exposure to Enron to appropriate levels. "Even with this increased reserve," said Biggar, "we are reaffirming our earnings forecast in excess of $4.00 per share for 2001." This would be the highest annual earnings in the company's history. For 2002, PPL continues to forecast little, if any, change in that level of earnings per share.

In a related matter, PPL's United Kingdom affiliate, Western Power Distribution (WPD), is a 15 percent equity investor in the 1,800-megawatt Teesside Power Station, located in northern England. Enron participates through its European affiliates as an owner, an operator and a power purchaser of the project. It is undeterminable at this point what effect, if any, Enron's circumstances could have on Teesside's operational and financial performance. WPD's total investment in Teesside is approximately 46 million pounds, or approximately $66 million, based on current exchange rates. PPL owns a 51 percent economic interest in WPD, and its partner, Mirant Corporation, owns the remaining 49 percent interest
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