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PPL Signs Supply Contract in Montana

ALLENTOWN, Pa. (October 16, 2001) - PPL Corporation's energy marketing company has reached agreement to provide 450 megawatts of electricity supply to The Montana Power Company over a five-year period beginning July 1, 2002.

"We are very pleased to reach this agreement, under which PPL will supply 300 megawatts of baseload electricity and 150 megawatts of on-peak electricity that will benefit the customers of Montana Power," said Paul Champagne, president of PPL's marketing company, PPL EnergyPlus. "This contract ends the uncertainty about our power supply arrangements with Montana Power."

Until the new contract goes into effect in mid-2002, PPL will continue to supply Montana Power-under existing arrangements - with the electricity MPC needs to serve its customers.

Under the new agreement, PPL expects to sell about 3.4 million megawatt-hours a year to MPC, resulting in annual revenues of about $108 million. The average annual price is expected to be about $32 per megawatt-hour. "The prices in this contract are comparable to the current market in the Northwest," said Champagne.

As a result of this agreement and other wholesale and retail agreements, Champagne said, PPL will have about two-thirds of the output of its Montana power plants under long-term contracts beginning in July 2002.

PPL has been selling the output from its Montana plants to a number of wholesale and retail customers in Montana and in the rest of the Northwest and will continue to do so, Champagne said.

Champagne said the agreement reached Monday is the result of bids that PPL submitted in response to a Montana Power Request for Proposal issued last week. "After months of making various offers that would make PPL part of the solution for Montana's future electricity supply, it is gratifying to finally have an agreement that will provide reliable electricity supplies for Montana residents at a competitive price," said Champagne
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