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): June 20, 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.)
PPL Electric Utilities Corporation
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(Exact Name of Registrant as Specified in Its Charter)
Pennsylvania 1-905 23-0959590
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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 EVENTS
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PPL ELECTRIC UTILITIES AWARDS SUPPLY CONTRACT
On June 20, 2001, PPL Electric Utilities Corporation (PPL Electric), a
subsidiary of PPL Corporation, announced that it has entered into a contract
that protects its customers from the risk of higher energy costs for the
remainder of this decade.
As a result of a corporate realignment in 2000, PPL Electric divested itself of
its electric generation and wholesale energy marketing operations and became
engaged primarily in the transmission and distribution of electricity. Under the
Pennsylvania Customer Choice Act, PPL Electric is required, through 2009, to act
as "provider of last resort" or POLR and provide electricity at pre-established
"capped" prices to its retail customers who do not select an alternate energy
supplier.
PPL Electric currently has a full requirements energy supply agreement with PPL
EnergyPlus, LLC, also a subsidiary of PPL Corporation (PPL EnergyPlus), that is
designed to satisfy this POLR obligation through the end of 2001. PPL Electric
had solicited bids from energy suppliers to enter into one or more generation
supply agreements to provide PPL Electric with electric energy at the
pre-established capped prices in amounts sufficient for PPL Electric to meet its
POLR obligation to deliver electric energy through 2009.
In this competitive bidding process, PPL EnergyPlus was the low bidder and was
selected as the company to provide for the energy supply requirements of PPL
Electric Utilities from 2002 through 2009.
Under the new supply contract, PPL EnergyPlus will provide electricity at
pre-established capped prices and receive a $90 million payment by January 1,
2002, to offset differences between the revenues expected under the capped
prices and currently projected market prices through the life of the supply
agreement.
The contract will be filed with the Pennsylvania Public Utility Commission and
the Federal Energy Regulatory Commission. The company has requested approvals by
the middle of July.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrants have duly caused this report to be signed on their 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
PPL ELECTRIC UTILITIES CORPORATION
By: /s/ Joseph J. McCabe
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Joseph J. McCabe
Vice President and Controller
Dated: June 22, 2001