8-K

UNITED STATES

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):  May 1, 2009

Commission File Number	Registrant; State of Incorporation; Address and Telephone Number	IRS Employer Identification No.
1-11459	PPL Corporation (Exact name of Registrant as specified in its charter) (Pennsylvania) Two North Ninth Street Allentown, PA  18101-1179 (610) 774-5151	23-2758192

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

[  ]	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
[  ]	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
[  ]	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
[  ]	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Section 2 - Financial Information

Item 2.02 Results of Operations and Financial Condition

On May 1, 2009, PPL Corporation (“PPL”) issued a press release announcing its financial results for the quarter ended March 31, 2009, and other business matters.  A copy of the press release is attached as Exhibit 99.1 and incorporated herein by reference.

Section 7 - Regulation FD

Item 7.01 Regulation FD Disclosure

On May 1, 2009, at 9:00 a.m. (Eastern Time), members of PPL's senior management will hold a teleconference and webcast with financial analysts to discuss PPL’s financial results for the quarter ended March 31, 2009, and other business matters.  A copy of the slides to be used during the webcast is attached as Exhibit 99.2 and incorporated herein by reference.  The event will be available live, in audio format, along with the slides, on PPL’s Internet Web site:  www.pplweb.com.  The webcast will be available for replay on PPL’s Web site for 30 days.

Section 9 - Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits

(d)	Exhibits
	99.1 -	Press Release, dated May 1, 2009, announcing PPL’s financial results for the quarter ended March 31, 2009, and other business matters.
	99.2 -	Slides to be used on the May 1, 2009 webcast among members of PPL’s senior management and financial analysts.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

PPL CORPORATION
By:	/s/ J. Matt Simmons, Jr.
	J. Matt Simmons, Jr. Vice President and Controller

Dated:  May 1, 2009

EX-99.1

Exhibit 99.1

Contacts:	For news media – George Biechler, 610-774-5997
	For financial analysts – Tim Paukovits, 610-774-4124

PPL Reports Solid First-Quarter 2009 Earnings

·   Lower operating expenses and financing benefits are positive drivers

·   U.K. currency exchange rates, lower energy margins negatively impact quarterly earnings

·   Company reaffirms 2009 and 2010 earnings forecasts

ALLENTOWN, Pa. (May 1, 2009) ― PPL Corporation (NYSE: PPL) on Friday (5/1) reported a slight decline in first-quarter earnings for 2009, compared with the same quarter of 2008.

PPL’s reported earnings in the most recent quarter were $0.64 per share, compared with $0.69 per share a year ago. Excluding special items, PPL’s earnings from ongoing operations for the quarter were $0.60 per share, compared with $0.61 per share a year ago.

The primary drivers of PPL’s quarterly earnings from ongoing operations were less favorable U.K. currency exchange rates and lower wholesale energy margins in the U.S., offset by financing activity benefits and lower operating expenses both in the U.S. and the U.K.

PPL reaffirmed its 2009 forecast of $1.60 to $1.90 per share in earnings from ongoing operations. PPL’s 2009 forecast of reported earnings is $1.64 to $1.94 per share, reflecting special items recorded through March 31, 2009. The company also reaffirmed its 2010 earnings forecast of $3.60 to $4.20 per share, saying that – due to lower wholesale electricity prices – it currently expects 2010 earnings to be at the low end of this range. Following its normal practice, the company will provide an updated review of the 2010 forecast this fall.

“The actions we’ve taken since late 2008 and our solid first-quarter performance reinforce our belief that we can achieve our 2009 earnings forecast,” said James H. Miller, PPL’s chairman, president and chief executive officer.

“We’re seeing the benefits from reducing our capital and operation and maintenance spending and from steps we’ve taken to reduce our risks in the wholesale energy markets,” Miller said. “We also took advantage of our strong liquidity position to repurchase some long-term debt, which will result in future reductions in interest expense.”

Miller said the company remains focused on maintaining a strong balance sheet and stable investment-grade credit ratings. “These are traditional PPL strengths, providing us stable access to lower-cost funding in this credit-challenged economic environment,” he said.

“We’re still pursuing select growth opportunities, such as the expansion of our hydroelectric generation capacity in Pennsylvania and Montana,” Miller said, “largely driven by the availability of necessary federal economic stimulus incentives. These initiatives will further enhance PPL’s already-diverse generation portfolio as the nation moves toward limits on carbon emissions.”

First-Quarter 2009 Earnings Details

Reported earnings in the first quarter of 2009 included a net special item credit of $0.04 per share, including a $0.13 per share credit related to the mark-to-market impacts of energy-related, non-trading economic hedges.

Special item charges in the quarter, totaling $0.09 per share, were: $0.04 per share related to the impairment of emission allowances; $0.03 per share related to the recent workforce reduction; $0.01 per share related to impairments of securities in PPL’s nuclear decommissioning trust funds; and $0.01 per share related to other smaller asset impairments. For the first-quarter of 2008, PPL recorded a net special item credit of $0.08 per share.

Reported earnings are calculated in accordance with generally accepted accounting principles (GAAP). Earnings from ongoing operations is a non-GAAP financial measure that excludes special items. Special items include charges or credits that are unusual or nonrecurring. Special items also include the mark-to-market impact of energy-related, non-trading economic hedges and impairments of securities in PPL’s nuclear decommissioning trust funds.

 (Dollars in millions, except for per share amounts)

	1st Quarter	1st Quarter
	2009	2008	% Change
Reported Earnings	$241	$260	-7%
Reported Earnings Per Share	$0.64	$0.69	-7%
Earnings from Ongoing Operations	$226	$228	-1%
Per Share Earnings from Ongoing Operations	$0.60	$0.61	-2%

(See the tables at the end of the news release for details as to the reconciliation of reported earnings versus earnings from ongoing operations.)

First-Quarter 2009 Earnings by Business Segment

The following chart shows PPL’s earnings by business segment for the first quarter of 2009, compared with the same period of 2008.

	1st Quarter
	2009			2008
(per share)
Earnings from Ongoing Operations
Supply	$	0.22		$	0.19
Pennsylvania Delivery		0.14			0.16
International Delivery		0.24			0.26
Total	$	0.60		$	0.61
Special Items
Supply	$	0.06		$	0.08
Pennsylvania Delivery		(0.01	)		-
International Delivery		(0.01	)		-
Total	$	0.04		$	0.08
Reported Earnings
Supply	$	0.28		$	0.27
Pennsylvania Delivery		0.13			0.16
International Delivery		0.23			0.26
Total	$	0.64		$	0.69

(For more details and a breakout of special items by segment, see the reconciliation tables at the end of this news release.)

Key Factors Impacting Business Segment Earnings from Ongoing Operations

Supply Segment

PPL’s supply business segmentprimarily consists of the domestic energy generation and marketing operations of PPL Energy Supply.

Earnings from ongoing operations for PPL’s supply business segment in the first quarter of 2009 increased by $0.03 per share, or 16 percent, compared with 2008. This increase was primarily due to a $0.05 per share gain recorded on the repurchase of a portion of PPL Energy Supply’s debt; lower operation and maintenance expenses at PPL’s Susquehanna nuclear plant as a result of the timing of this year’s refueling outage; and higher wholesale energy margins in the western U.S. due to higher wholesale sales and higher hydroelectric generation output.

Partially offsetting these positive factors were lower wholesale energy margins in the eastern U.S., primarily driven by higher average fuel prices and lower realized margins from marketing and trading activities.

Pennsylvania Delivery Segment

PPL’s Pennsylvania delivery business segment includes the regulated electric delivery operations of PPL Electric Utilities and included the delivery operations of its natural gas and propane businesses prior to their divestiture in October 2008.

Earnings from ongoing operations for PPL’s Pennsylvania delivery business segment in the first quarter of 2009 declined by $0.02 per share, or 13 percent, compared with 2008. This decrease was primarily due to the loss of earnings from the natural gas and propane businesses and higher financing costs. Partially offsetting these negative factors were lower operation and maintenance expenses.  

International Delivery Segment

PPL’s international delivery business segment primarily includes investments in the regulated electric distribution companies in the United Kingdom.

Earnings from ongoing operations for PPL’s international delivery business segment in the first quarter of 2009 declined by $0.02 per share, or 8 percent, compared with a year ago. This decline was primarily due to less favorable currency exchange rates, partially offset by lower financing costs and lower U.K. income taxes.

2009 Ongoing Earnings Forecast by Business Segment

PPL is reaffirming its 2009 forecast of $1.60 to $1.90 per share in earnings from ongoing operations. This forecast reflects the following expectations by business segment.

	2009 (Forecast)		2008 (Actual)
per share	midpoint
Supply	$	0.85	$	0.81
Pennsylvania Delivery		0.40		0.44
International Delivery		0.50		0.77
Total	$	1.75	$	2.02

Supply Segment

PPL projects higher earnings in its supply business segment in 2009 compared with 2008, driven by higher energy margins as a result of higher expected baseload generation and margins from marketing and trading activities, despite higher expected coal expense- partially offset by higher expected operation and maintenance expenses and depreciation.

Pennsylvania Delivery Segment

PPL projects lower earnings from its Pennsylvania delivery business segment in 2009 compared with 2008, due to the divestiture of the natural gas distribution and propane businesses and slightly lower results from the electricity delivery business. Slightly higher revenues in the electricity delivery business are expected to be offset by higher operation and maintenance expenses.

International Delivery Segment

PPL projects lower earnings from its international delivery business segment in 2009 compared with 2008 as a result of less favorable currency exchange rates.

2010 Earnings Forecast

PPL’s earnings for 2010 are currently expected to be at the low end of the previously announced range of $3.60 to $4.20 per share.

The full-requirements supply contract between PPL EnergyPlus and PPL Electric Utilities expires at the end of 2009. As a result of hedging more than 90 percent of its baseload generation through March 31, 2009, PPL continues to forecast strong growth in energy margins in 2010.

The strong 2010 margin growth forecast is based on the following key assumptions:

·   Hedged power and fuel positions and wholesale prices observed in competitive markets and used to value unhedged positions.

·   Capacity prices in the PJM Interconnection based on the reliability pricing model auction results for 2010.

·   Strong power plant performance.

·   Increased nuclear power output through the previously announced planned uprates.

·   Increased fuel and operation and maintenance expenses.

·   Higher costs of environmental compliance.

This forecast does not depend upon new assets being added to the company’s portfolio and assumes PPL Electric Utilities will be able to fully recover its purchased power costs resulting from the ongoing solicitation process approved by the Pennsylvania Public Utility Commission.

PPL Corporation, headquartered in Allentown, Pa., controls or owns more than 12,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to about 4 million customers in Pennsylvania and the United Kingdom. More information is available at www.pplweb.com.

###

(Note: All references to earnings per share in the text and tables of this news release are stated in terms of diluted earnings per share.)

PPL invites interested parties to listen to a live Internet webcast of management’s teleconference with financial analysts about first-quarter 2009 financial results at 9 a.m. EDT Friday, May 1. The meeting is available online live, in audio format, along with slides of the presentation, on PPL’s Web site: www.pplweb.com. The webcast will be available for replay on the PPL Web site for 30 days. Interested individuals also can access the live conference call via telephone at 702-696-4769 (ID# 95710431).

“Earnings from ongoing operations” excludes the impact of special items. Special items include charges or credits that are unusual or nonrecurring. Special items also include the mark-to-market impact of energy-related, non-trading economic hedges and impairments of securities in PPL’s nuclear decommissioning trust funds. These energy-related, non-trading economic hedges are used to hedge a portion of the economic value of PPL’s generation assets and PPL’s load-following and retail activities. This economic value is subject to changes in fair value due to market price volatility of the input and output commodities (e.g., coal and power).  The mark-to-market impact of these hedges is economically neutral to the company because the mark-to-market gains or losses on the energy hedges will reverse as the hedging contracts settle in the future. Earnings from ongoing operations should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAAP). PPL believes that earnings from ongoing operations, although a non-GAAP measure, is also useful and meaningful to investors because it provides them with PPL’s underlying earnings performance as another criterion in making their investment decisions. PPL’s management also uses earnings from ongoing operations in measuring certain corporate performance goals. Other companies may use different measures to present financial performance.

Statements contained in this news release, including statements with respect to future earnings, energy prices, margins and sales, growth, revenues, expenses, credit profile, cash flow, liquidity, financing, marketing performance, hedging, regulation,  corporate strategy,  and generating capacity and performance, are “forward-looking statements” within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. The following are among the important factors that could cause actual results to differ materially from the forward-looking statements: market demand and prices for energy, capacity and fuel; weather conditions affecting customer energy usage and operating costs; competition in power markets; the effect of any business or industry restructuring; the profitability and liquidity of PPL Corporation and its subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating performance of plants and other facilities; environmental conditions and requirements and the related costs of compliance, including environmental capital expenditures and emission allowance and other expenses; system conditions and operating costs; development of new projects, markets and technologies; performance of new ventures; asset acquisitions and dispositions; any impact of hurricanes or other severe weather on our business, including any impact on fuel prices; receipt of necessary government permits, approvals and rate relief; capital market conditions and decisions regarding capital structure; the impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries; the outcome of litigation against PPL Corporation and its subsidiaries; stock price performance; the market prices of equity securities and the impact on pension income and resultant cash funding requirements for defined benefit pension plans; the securities and credit ratings of PPL Corporation and its subsidiaries; political, regulatory or economic conditions in states, regions or countries where PPL Corporation or its subsidiaries conduct business, including any potential effects of threatened or actual terrorism or war or other hostilities; foreign exchange rates; new state, federal or foreign legislation, including new tax legislation; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such forward-looking statements should be considered in light of such important factors and in conjunction with PPL Corporation’s Form 10-K and other reports on file with the Securities and Exchange Commission.

#     #     #

Note to Editors: Visit PPL’s media Web site at www.pplnewsroom.com for additional news and background about the corporation and its subsidiaries.

 

PPL CORPORATION AND SUBSIDIARY COMPANIES
CONDENSED CONSOLIDATED FINANCIAL INFORMATION (a)
Condensed Consolidated Balance Sheet (Unaudited)
(Millions of Dollars)
	March 31,			December 31,
	2009			2008 (b)
Assets
Cash and cash equivalents	$	631		$	1,100
Price risk management assets - current		1,818			1,224
Other current assets		2,002			2,059
Investments		498			522
Property, plant and equipment
Electric plant		20,003			20,033
Gas and oil plant		68			68
Other property		149			156
		20,220			20,257
Less:  accumulated depreciation		7,938			7,882
		12,282			12,375
Regulatory assets		649			737
Goodwill and other intangibles		1,321			1,400
Price risk management assets - noncurrent		1,986			1,392
Other noncurrent assets		603			596
Total assets	$	21,790		$	21,405
Liabilities and Equity
Short-term debt (including current portion of long-term debt)	$	1,076		$	1,375
Price risk management liabilities - current		1,777			1,324
Other current liabilities		1,757			1,603
Long-term debt (less current portion)		6,781			7,142
Deferred income taxes and investment tax credits		1,744			1,764
Price risk management liabilities - noncurrent		1,190			836
Accrued pension obligations		860			899
Other noncurrent liabilities		1,049			1,066
Common stock and capital in excess of par value		2,232			2,200
Earnings reinvested		3,973			3,862
Accumulated other comprehensive loss		(968	)		(985	)
Noncontrolling interests		319			319
Total liabilities and equity	$	21,790		$	21,405

(a)	The Financial Statements in this news release have been condensed and summarized for purposes of this presentation. Please refer to PPL Corporation's periodic filings with the Securities and Exchange Commission for full financial statements, including note disclosure.
(b)	Certain amounts from 2008 have been reclassified to conform to the current year presentation.

Condensed Consolidated Income Statement (Unaudited)
(Millions of Dollars, Except per Share Data)
	3 Months Ended March 31,						12 Months Ended March 31,
	2009 (a)			2008 (a)(b)			2009 (a)			2008 (a)(b)
Operating Revenues
Utility	$	1,065		$	1,120		$	4,059		$	4,153
Unregulated retail electric and gas		42			34			159			114
Wholesale energy marketing (c)
Realized		813			438			2,700			1,699
Unrealized economic activity		352			(180	)		1,588			(218	)
Net energy trading margins		(12	)		(2	)		(131	)		30
Energy-related businesses		99			116			502			700
Total		2,359			1,526			8,877			6,478
Operating Expenses
Operation
Fuel		258			240			1,102			898
Energy purchases (c)
Realized		684			317			2,001			992
Unrealized economic activity		269			(259	)		1,081			(321	)
Other operation and maintenance		373			377			1,426			1,425
Amortization of recoverable transition costs		84			76			301			305
Depreciation		110			112			459			442
Taxes, other than income		73			75			287			295
Energy-related businesses		91			108			464			668
Total		1,942			1,046			7,121			4,704
Operating Income		417			480			1,756			1,774
Other Income - net		19			8			33			76
Interest Expense		89			108			440			462
Income from Continuing Operations Before Income Taxes		347			380			1,349			1,388
Income Taxes		101			129			412			330
Income from Continuing Operations After Income Taxes		246			251			937			1,058
Income (Loss) from Discontinued Operations (net of income taxes)					14			(6	)		307
Net Income		246			265			931			1,365
Net Income Attributable to Noncontrolling Interests		5			5			20			20
Net Income Attributable to PPL Corporation	$	241		$	260		$	911		$	1,345
Amounts Attributable to PPL Corporation
Income from Continuing Operations After Income Taxes	$	241		$	246		$	917		$	1,038
Income (Loss) from Discontinued Operations   (net of income taxes)					14			(6	)		307
Net Income	$	241		$	260		$	911		$	1,345
Earnings Per Share of Common Stock - Basic
Earnings from Ongoing Operations	$	0.60		$	0.61		$	2.01		$	2.57
Special Items		0.04			0.08			0.41			0.97
Net Income	$	0.64		$	0.69		$	2.42		$	3.54
Earnings Per Share of Common Stock - Diluted
Earnings from Ongoing Operations	$	0.60		$	0.61		$	2.01		$	2.56
Special Items		0.04			0.08			0.41			0.97
Net Income	$	0.64		$	0.69		$	2.42		$	3.53
Weighted-Average Shares of Common Stock Outstanding (thousands)
Basic		375,112			372,782			374,212			377,795
Diluted		375,409			375,002			375,002			380,626

(a)	Earnings in the 2009 and 2008 periods were impacted by several special items, as described in the text and tables of this news release.  Earnings from ongoing operations excludes the impact of these special items.
(b)	Certain amounts from 2008 have been reclassified to conform to the current year presentation.
(c)	PPL enters into certain non-trading energy or energy-related contracts to hedge future cash flows that are not eligible for hedge accounting, or where hedge accounting is not elected.  Consistent with the treatment of the hedged item, unrealized and realized gains and losses on these transactions are reflected in "Wholesale energy marketing" or "Energy purchases."

Condensed Consolidated Statements of Cash Flows (Unaudited)
(Millions of Dollars)
	3 Months Ended
	March 31,
	2009			2008
Cash Flows from Operating Activities
Net Income	$	246		$	265
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation		110			112
Amortization of recoverable transition costs and other		93			94
Unrealized gains on derivatives and other hedging activities		(103	)		(63	)
Deferred income taxes and investment tax credits		(12	)		(38	)
Gains related to the extinguishment of notes		(29	)
Impairment of assets		51			3
Changes in working capital		(74	)		39
Other operating activities		28			12
Net cash provided by operating activities		310			424
Cash Flows from Investing Activities
Expenditures for property, plant and equipment		(270	)		(315	)
Net expenditures for intangible assets		(26	)		(37	)
Net purchases of other investments					(25	)
Net decrease (increase) in restricted cash and cash equivalents		156			(78	)
Other investing activities		(10	)		(7	)
Net cash used in investing activities		(150	)		(462	)
Cash Flows from Financing Activities
Net (retirements) issuances of long-term debt		(421	)		308
Repurchase of common stock due to the repurchase program					(38	)
Payment of common stock dividends		(126	)		(113	)
Net decrease in short-term debt		(90	)		(50	)
Other financing activities		8			1
Net cash (used in) provided by financing activities		(629	)		108
Effect of Exchange Rates on Cash and Cash  Equivalents					(2	)
Net (Decrease) Increase in Cash and Cash Equivalents		(469	)		68
Cash and cash equivalents at beginning of period		1,100			430
Cash and cash equivalents included in assets held for sale					(3	)
Cash and cash equivalents at end of period	$	631		$	495

Key Indicators
	12 Months Ended
	March 31,
Financial	2009			2008
Dividends declared per share	$	1.35		$	1.25
Book value per share (a)	$	13.94		$	14.97
Market price per share (a)	$	28.71		$	45.92
Dividend yield (a)		4.7	%		2.7	%
Dividend payout ratio  (b)		56	%		35	%
Dividend payout ratio - earnings from ongoing operations (b)(c)		67	%		49	%
Price/earnings ratio (a)(b)		11.9			13.0
Price/earnings ratio - earnings from ongoing operations (a)(b)(c)		14.3			17.9
Return on average common equity		16.79	%		25.13	%
Return on average common equity - earnings from ongoing operations (c)		14.54	%		18.71	%

(a)	End of period.
(b)	Based on diluted earnings per share.
(c)	Calculated using earnings from ongoing operations, which excludes the impact of special items, as described in the text and tables of this news release.

Operating - Domestic & International Electricity Sales
	3 Months Ended March 31,							12 Months Ended March 31,
					Percent							Percent
(millions of kwh)	2009		2008		Change			2009		2008		Change
Domestic Retail
Delivered (a)		10,677		10,569		1.0%			38,153		38,211		(0.2%	)
Supplied		11,250		11,123		1.1%			40,486		40,356		0.3%
International Delivered
United Kingdom		7,604		7,754		(1.9%	)		27,574		27,917		(1.2%	)
Domestic Wholesale
East		6,763		5,933		14.0%			29,450		22,487		31.0%
West
NorthWestern Energy		560		567		(1.2%	)		2,484		2,543		(2.3%	)
Other West		2,374		3,094		(23.3%	)		10,887		10,722		1.5%

(a) Electricity delivered to retail customers represents the kwh delivered to customers within PPL Electric Utilities Corporation's service territory.

Reconciliation of Business Segment Earnings from Ongoing Operations and Reported Earnings (Diluted)
1st Quarter 2009	(millions of dollars)												(per share)
				PA			Int'l									PA			Int'l
	Supply			Delivery			Delivery			Total			Supply			Delivery			Delivery			Total
Earnings from Ongoing Operations	$	81		$	55		$	90		$	226		$	0.22		$	0.14		$	0.24		$	0.60
Special Items
MTM adj's from energy-related, non-trading economic hedges		50									50			0.13									0.13
Impairment of nuclear decom. trust investments		(3	)								(3	)		(0.01	)								(0.01	)
Impairments & other impacts - emission allowances		(15	)								(15	)		(0.04	)								(0.04	)
Other asset impairments		(2	)		(1	)		(1	)		(4	)		(0.01	)								(0.01	)
Workforce reduction		(6	)		(5	)		(2	)		(13	)		(0.01	)		(0.01	)		(0.01	)		(0.03	)
Total special items		24			(6	)		(3	)		15			0.06			(0.01	)		(0.01	)		0.04
Reported Earnings	$	105		$	49		$	87		$	241		$	0.28		$	0.13		$	0.23		$	0.64
12 Months Ended March 31, 2009	(millions of dollars)												(per share)
				PA			Int'l									PA			Int'l
	Supply			Delivery			Delivery			Total			Supply			Delivery			Delivery			Total
Earnings from Ongoing Operations	$	314		$	162		$	283		$	759		$	0.83		$	0.43		$	0.75		$	2.01
Special Items
MTM adj's from energy-related, non-trading economic hedges		251									251			0.67									0.67
Off-site remediation of ash basin leak (Q2, '08)		1									1
Sale of gas and propane businesses (Q2, '08; Q3, '08; Q4, '08; Q1, '09)					(6	)					(6	)					(0.02	)					(0.02	)
Impairment of nuclear decom. trust investments (Q2, '08; Q3, '08;
Q4, '08; Q1, '09)		(20	)								(20	)		(0.05	)								(0.05	)
Impairments & other impacts - emission allowances (Q3, '08;
Q4, '08; Q1, '09)		(40	)								(40	)		(0.11	)								(0.11	)
Other asset impairments (Q4, '08; Q1, '09)		(18	)		(1	)		(2	)		(21	)		(0.05	)								(0.05	)
Workforce reduction (Q1, '09)		(6	)		(5	)		(2	)		(13	)		(0.01	)		(0.01	)		(0.01	)		(0.03	)
Total special items		168			(12	)		(4	)		152			0.45			(0.03	)		(0.01	)		0.41
Reported Earnings	$	482		$	150		$	279		$	911		$	1.28		$	0.40		$	0.74		$	2.42
Reconciliation of Business Segment Earnings from Ongoing Operations and Reported Earnings (Diluted)
1st Quarter 2008	(millions of dollars)												(per share)
				PA			Int'l									PA			Int'l
	Supply			Delivery			Delivery			Total			Supply			Delivery			Delivery			Total
Earnings from Ongoing Operations	$	70		$	60		$	98		$	228		$	0.19		$	0.16		$	0.26		$	0.61
Special Items
MTM adj's from energy-related, non-trading economic hedges		50									50			0.13									0.13
Synfuel tax adjustment		(13	)								(13	)		(0.04	)								(0.04	)
Montana basin seepage litigation		(5	)								(5	)		(0.01	)								(0.01	)
Total special items		32									32			0.08									0.08
Reported Earnings	$	102		$	60		$	98		$	260		$	0.27		$	0.16		$	0.26		$	0.69
12 Months Ended March 31, 2008	(millions of dollars)												(per share)
				PA			Int'l									PA			Int'l
	Supply			Delivery			Delivery			Total			Supply			Delivery			Delivery			Total
Earnings from Ongoing Operations	$	489		$	157		$	331		$	977		$	1.28		$	0.41		$	0.87		$	2.56
Special Items
MTM adj's from energy-related, non-trading economic hedges		71									71			0.19									0.19
Workforce reductions (Q4, '07)		(4	)		(1	)		(4	)		(9	)		(0.01	)					(0.01	)		(0.02	)
Sale of Latin American businesses (Q2, '07; Q3, '07; Q4, '07)								299			299									0.78			0.78
Sale of domestic telecommunication operations (Q2, '07; Q3, '07; Q4, '07)		(5	)								(5	)		(0.01	)								(0.01	)
Montana basin seepage litigation (Q1, '08)		(5	)								(5	)		(0.01	)								(0.01	)
Sale of gas and propane businesses (Q3, '07; Q4, '07)					(44	)					(44	)					(0.11	)					(0.11	)
Settlement of Wallingford cost-based rates (Q3, '07)		33									33			0.09									0.09
Impairment of transmission rights (Q3, '07; Q4, '07)		(13	)								(13	)		(0.04	)								(0.04	)
Change in U.K. tax rate (Q3, '07; Q4, '07)								54			54									0.14			0.14
Synfuel tax adjustment (Q1, '08)		(13	)								(13	)		(0.04	)								(0.04	)
Total special items		64			(45	)		349			368			0.17			(0.11	)		0.91			0.97
Reported Earnings	$	553		$	112		$	680		$	1,345		$	1.45		$	0.30		$	1.78		$	3.53

EX-99.2

First Quarter Earnings Call  May 1, 2009  Exhibit 99.2

 Cautionary Statements and Factors That  May Affect Future Results  Any statements made in this presentation about future operating results or other future events are forward-looking statements under the Safe Harbor Provisions of the Private  Securities Litigation Reform Act of 1995.  Actual results may differ materially from such forward-looking statements. A discussion of  factors that could cause actual results or  events to vary is contained in the Appendix to this presentation and in the Company’s SEC  filings.  1

 Agenda  • First Quarter 2009 Earnings,  2009 and 2010 Earnings  Forecast and Outlook  • Segment Results and Financial  Overview  • Operational Review  • Q&A  J. H. Miller  P. A. Farr  W. H. Spence  2

 First Quarter Results  Earnings from Ongoing Operations  Per  share  $0.61 $0.60  $0.00  $0.50  $1.00  1Q 2008 1Q 2009  3  Note: See Appendix for the reconciliation of reported earnings and earnings from ongoing operations.  Per  share  $0.69 $0.64  $0.00  $0.50  $1.00  1Q 2008 1Q 2009  Reported Earnings

 $0.00  $1.00  $2.00  $3.00  $4.00  $5.00  2008A* 2009* 2010  Strong Expected Earnings Growth  Forecast  4  * Earnings from ongoing operations – See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.  $2.02  $4.20  Per Share  $1.90  $1.60  $3.60

 Ongoing Earnings Overview  $(0.01)$0.61$0.60Total  (0.02)0.260.24International Delivery  (0.02)0.160.14Pennsylvania Delivery  $ 0.03$0.19$0.22Supply  Change  Q1  2008  Q1  2009  5  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.

 Supply Segment  Earnings Drivers  (0.04)Income taxes and other  0.03Margins - -West  0.04O&M  0.04Financing Costs  $0.222009 EPS – Ongoing Earnings  0.03Total  (0.04)Margins - -East  $0.192008 EPS – Ongoing Earnings  1st Quarter  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.  6

 Pennsylvania Delivery Segment  Earnings Drivers  $0.142009 EPS – Ongoing Earnings  (0.02)Total  (0.01)  (0.02)  Financing Costs  Other  0.01O&M  $0.162008 EPS – Ongoing Earnings  1st Quarter  7  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.

 International Delivery Segment  Earnings Drivers  (0.09)Effect of Exchange Rates  0.04Financing Costs  $0.242009 EPS – Ongoing Earnings  (0.02)Total  0.02Income Taxes & Other  0.01O&M  $0.262008 EPS – Ongoing Earnings  1st Quarter  8  Note: See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.

 $0.00  $1.00  $2.00  $3.00  $4.00  $5.00  2008A* 2009* 2010  Strong Expected Earnings Growth  Forecast  9  * Earnings from ongoing operations – See Appendix for the per share reconciliation of reported earnings and earnings from ongoing operations.  $2.02  $4.20  Per Share  $1.90  $1.60  $3.60

 Supply Segment Open EBITDA  *Based on forward market prices as of 3/31/09  2010E  (Millions)  Generation Output - MWh 55.5  Unhedged Gross Margin* 2,310  O&M (859)  Open EBITDA 1,451  Fuel 176  Power 617  Above/(Below) Market Value of Hedges* 793  Expected Margin 3,103  10

 ($605)  ($38)  ($315)  $685  $367  $280  ($30)  ($134)  $1  ($700)  ($400)  ($100)  $200  $500  $800  2008A 2009E 2010E  Supply Segment PA Delivery Segment International Delivery Segment  Free Cash Flow before Dividends Forecast  Millions  11

 $1.00  $1.10  $1.22  $1.34 $1.38  $0.00  $0.25  $0.50  $0.75  $1.00  $1.25  $1.50  2005 2006 2007 2008 2009  $/Share  Annualized  Continued Dividend Growth  12

 Liquidity Profile  (1) Reported as of 3/31/2009  Diverse bank group consisting of 23 banks committed under domestic facilities,  with no bank having more than 14% of commitments.  13  Institution Facility  Expiration  Date  Total  Facility  (Millions)  Letters of Credit  Outstanding (1)  (Millions)  Drawn (1)  (Millions)  Availability  (Millions)  PPL Energy Supply 5-year Credit Facility Jun-2012 $3,225 $385 $285 $2,555  Bilateral Credit Facility Mar-2010 200 177 0 23  5-year Structured Credit Facility Mar-2011 300 259 0 41  364-day Credit Facility Sep-2009 385 0 0 385  $4,110 $821 $285 $3,004  PPL Electric Utilities 5-year Credit Facility May-2012 $190 $1 $0 $189  Asset-backed Credit Facility Jul-2009 150 0 0 150  $340 $1 $0 $339  WPD 5-year Credit Facility Oct-2009 £150 £0 £57 £93  5-year Credit Facility Jan-2013 150 0 145 5  Uncommitted Credit Facilities 65 0 4 61  Letter of Credit Facility Mar-2010 4 4 0 0  £369 £4 £206 £159

 PPL Energy Supply Collateral Profile  Millions  14  $0  $500  $1,000  $1,500  $2,000  $2,500  $3,000  $3,500  $4,000  $4,500  $5,000  $5,500  Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09  Available Credit Capacity  Cash Posted  Borrowings/CP Outstanding  Letters of Credit

 Debt Maturities  (1) PPL Capital Funding $201 million maturity paid off in March 2009  (2) PPL Electric Utilities prefunding done in 10/2008 for 2009 maturity  Note: As of 3/31/2009  15  2009 2010 2011 2012 2013  PPL Energy Supply $0 $0 $500 $0 $737  PPL Capital Funding 0 (1) 0 0 0 0  PPL Electric Utilities 486 (2) 0 0 0 500  WPD Group 0 0 0 0 0  Subtotal $486 $0 $500 $0 $1,237  Prefunding $400 (2) $0 $0 $0 $0  Total $86 $0 $500 $0 $1,237  (Millions)

 PA and International Delivery Operational Update  PA Delivery  • PPLEU completed 5 of 6 RFPs  • Bids due for final RFP October 5, 2009 with PUC  approval expected October 8  • Filed rate deferral plan with the PUC  • Act 129 compliance plan filing on target for July 1requirement  International Delivery  • Distribution Price Control Review (DPCR5) preliminary results expected in July  16

 Supply Segment Operational Update  • Strong plant performance in Q109  • Susquehanna Unit 2 set generation record with  723 consecutive days generating electricity  • Unit 2 up-rate of 45 MW to be completed in  Q209  • Reapplied for Holtwood hydroelectric plant  expansion project  • Scrubbers on schedule for completion later this  year  17

 Current Hedge Positions -Electricity and Fuel  Note: As of 3/31/2009 18  2009 2010 2011 2012  Electricity Sales  East 98% 88% 51% 28%  West 95% 78% 78% 65%  Total 97% 86% 55% 34%  Uranium 100% 100% 100% 100%  Coal  East 100% 98% 73% 52%  West 100% 100% 86% 77%  Total 100% 98% 77% 59%  Unhedged Coal – million tons  Brunner & Montour 0.0 0.0 1.9 3.5  Keystone & Conemaugh 0.0 0.3 0.5 0.9

 Current East Coal Contracts -Base Prices  19  Base Prices for Wholly Owned Plants* *East wholly owned plants include Montour & Brunner Island but not Keystone & Conemaugh.  **Excludes contracts subject to mining-related oil surcharges and/or price collars.  Note: As of 3/31/2009  $35  $40  $45  $50  $55 max collar price  fixed base price  min collar price  2009 2010 2011  Weighted  Average  $/Ton  at Mine  11% 17%% Diesel Surcharge  78%68% 13%% Collars  21% 70%% Fixed Base Price**17%  5%

 Hedged Baseload Electricity 2009-2012  Hedged Baseload Electricity Sales  0%  20%  40%  60%  80%  100%  2009 2010 2011 2012  % of Coal, Hydro & Nuclear O utput$20  $30  $40  $50  $60  $70  $80  $/M W h  Average Sale Price  20

 Millions  $939  $691  $869 $938 $798  $648  $286  $295  $576  $649  $504  $535  $278  $251  $428  $448  $460  $477  $0  $400  $800  $1,200  $1,600  $2,000  $2,400  2008A 2009E 2010E 2011E 2012E 2013E  Supply PA Delivery International Delivery  $1,503  $2,035  $1,873  $1,237  Capital Expenditures by Segment  21  $1,762  $1,660

 Millions  $693 $811 $952 $1,221 $1,469 $1,528  $2,081 $2,207  $2,353  $2,513  $2,664 $2,803  $0  $1,000  $2,000  $3,000  $4,000  $5,000  2008A 2009E 2010E 2011E 2012E 2013E  Transmission Distribution & Other  Pennsylvania Delivery Rate Base  $3,018  $3,305  $3,734  $4,133  $4,331  $2,774  22

 PPL

 Market Prices  ELECTRIC   PJM  On-Peak  Off-Peak  ATC(2)   Mid-Columbia  On-Peak  Off-Peak  ATC(2)   GAS(3)  NYMEX  TZ6NNY   PJM MARKET  HEAT RATE(4)  CAPACITY PRICES   (Per MWD)   EQA   Actual  2008 2009 2010 2011 2012  $81 $51 $58 $63 $66  $49 $39 $43 $46 $50  $69 $45 $50 $54 $58  $65 $35 $46 $52 $56  $51 $28 $37 $41 $44  $59 $35 $42 $47 $50  $8.84 $4.36 $5.93 $6.67 $6.84  $9.85 $5.19 $6.84 $7.57 $7.72  8.3 9.8 8.5 8.3 8.5  $82.00 $158.24 $181.39 $136.79 $118.75  89.6% 90.7% 92.2% 90.9% 92.1%  Forward(1)  (1) Market prices based on the average of broker quotes as of 3/31/2009  (2) 24-hour average  (3) NYMEX and TZ6NNY forward gas prices on 3/31/2009  (4) Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price  A-1

 PPL Supply Business Overview  2009E  Production GWh  A-2  Gas/Oil  38%  Coal  34%  Nuclear  18%  Hydro8%  QFs  2%  2009E  Installed Capacity MW  Gas/Oil  9%  Coal  52%  Nuclear  31%  Hydro  8%  Note: Graphs include tolling agreements

 PPL’s Generation Portfolio  Total Domestic Generation: 12,104 MW  Planned Uprate Projects or Additions: 270 MW  (1) Reflects reduction of 60 MW expected loss due to increased  plant usage during scrubber operation.  (2) Includes tolling agreements  A-3  Coal 3,500  Nuclear 2,165  Oil 1,817  Gas 2,282  Hydro 369  CTs 462  QFs 222  Coal 683  Hydro 604  West 1,287 MW  Hydro Uprate (2012) 28  Nuclear Uprate (2009-2011) 98  Hydro Uprate (2013) 125  Coal Uprate (2009) 11  Landfill Gas Addition (2009) 8  (1)  East 10,817 MW  (2)

 Supply Segment Reconciliation of Cash from Operations  to Free Cash Flow before Dividends  (Millions)  A-4  (203)Investment in Energy Project  $685($38)($605)Free Cash Flow before Dividends  (61)10(58)Other Investing Activities-net  (869)(691)(939)Capital Expenditures  Increase/(Decrease) in cash due to:  $1,615$643$ 595Cash from Operations  201020092008  Actual Projected

 PA Delivery Segment Reconciliation of Cash from Operations  to Free Cash Flow before Dividends  (Millions)  A-5  8303Asset Sales & Other  ($315)$280$367Free Cash Flow before Dividends  (576)(295)(286)Capital Expenditures  (293)Less Transition Bond Repayment  Increase/(Decrease) in cash due to:  $261$567$ 643Cash from Operations  201020092008  Note: Asset sales in 2008 includes the net proceeds from the sale of gas and propane businesses in 2008.  Actual Projected

 International Delivery Segment Reconciliation of Cash from Operations  to Free Cash Flow before Dividends  (Millions)  A-6  ($134)($ 30)$ 1Free Cash Flow before Dividends  (428)(251)(278)Capital Expenditures  Increase/(Decrease) in cash due to:  $294$221$ 279Cash from Operations  201020092008  Actual Projected

 2009 - -2010 Sensitivities  EPS Impact  See Appendix A-1 for market price assumptions  A-7  Note: Discrete sensitivities based on changes to individual item, which ultimately may be interrelated.  2009 2010  $10/MW-Day  Capacity Price  Change  >$0.00 >$0.00  $1/MWh of  Unhedged  Baseload Sales  ±<$0.01 ±$0.01  $1/MWh of  Unhedged  Total Sales  ±<$0.01 ±$0.01  1% Generation  Availability ±$0.01 ±$0.03  $0.05 between  USD and  British Pound  ±$0.02 ±$0.02

 Reconciliation of First Quarter Reported  Earnings and Earnings from Ongoing Operations  A-8  (Millions)  Pennsylvania International  Supply Delivery Delivery Total  Qtr. Ending March 31, 2009  Reported earnings* $105 $49 $87 $241  Special Items:  MTM adj's from energy-related, non-  trading economic hedges 50 50  Impairment of nuclear decom. trust investments (3) (3)  Impairments & other impacts - EAs (15) (15)  Other asset impairments (2) (1) (1) (4)  Workforce reduction (6) (5) (2) (13)  24 (6) (3) 15  Earnings from ongoing operations $81 $55 $90 $226  Qtr. Ending March 31, 2008  Reported earnings* $102 $60 $98 $260  Special Items:  MTM adj's from energy-related, non-  trading economic hedges 50 50  Synfuel tax adjustment (13) (13)  Montana basin seepage litigation (5) (5)  32 32  Earnings from ongoing operations $70 $60 $98 $228  Change excluding special items $11 ($5) ($8) ($2)  * Represents net income attributable to PPL Corporation.

 Reconciliation of First Quarter Reported  Earnings and Earnings from Ongoing Operations  A-9  Pennsylvania International  Supply Delivery Delivery Total  Qtr. Ending March 31, 2009  Reported earnings* $0.28 $0.13 $0.23 $0.64  Special Items:  MTM adj's from energy-related, non-  trading economic hedges 0.13 0.13  Impairment of nuclear decom. trust investments (0.01) (0.01)  Impairments & other impacts -EAs (0.04) (0.04)  Other asset impairments (0.01) (0.01)  Workforce reduction (0.01) (0.01) (0.01) (0.03)  0.06 (0.01) (0.01) 0.04  Earnings from ongoing operations $0.22 $0.14 $0.24 $0.60  Qtr. Ending March 31, 2008  Reported earnings* $0.27 $0.16 $0.26 $0.69  Special Items:  MTM adj's from energy-related, non-  trading economic hedges 0.13 0.13  Synfuel tax adjustment (0.04) (0.04)  Montana basin seepage litigation (0.01) (0.01)  0.08 0.08  Earnings from ongoing operations $0.19 $0.16 $0.26 $0.61  Change excluding special items $0.03 ($0.02) ($0.02) ($0.01)  * Represents net income attributable to PPL Corporation.  Note: Per share amounts are based on diluted shares outstanding.  (Dollars Per Share)

 Reconciliation of Year-to-Date  Operating Income and Energy Margins  A-10  2009 2008 Change  Per Share  (after-tax)  Eastern U.S., pre-tax $312 $340 ($28) ($0.04)  Western U.S., pre-tax 83 61 22 0.03  Domestic gross energy margins, pre-tax $395 $401 ($6) ($0.01)  2009 2008  Operating Income $417 $480  Adjustments:  Energy-related businesses, net (8) (8)  Other operation and maintenance 373 377  Amortization of recoverable transition costs 84 76  Depreciation 110 112  Taxes, other than income 73 75  Revenue adjustments (a) (897) (426)  Expense adjustments (a) 243 (285)  Domestic gross energy margins $395 $401  Year-to-Date March 31,  Year-to-Date March 31,  (Millions)  (a) See additional information on the following slide

 Reconciliation of Year-to-Date  Operating Income and Energy Margins  A-11  2009 2008  Revenue adjustments  WPD utility revenue $ (176) $ (241)  Domestic delivery component of utility revenue (354) (354)  Other utility revenue (14) (12)  Mark-to-market adjustments from economic activity (353) 180  Gains from sale of emission allowances 1  Total revenue adjustments $ (897) $ (426)  Expense adjustments  Mark-to-market adjustments from economic activity $ (267) $ 266  Domestic electric ancillaries (12) (12)  Gross receipts tax 31 30  Other 5 1  Total expense adjustments $ (243) $ 285  Year-to-Date March 31,  (Millions)

 Reconciliation of PPL’s Reported Earnings and  Earnings from Ongoing Operations  High Low  2009 2009 2008 2007  Earnings from Ongoing Operations per share of common stock $1.90 $1.60 $2.02 $2.60  Special items (net of taxes):  economic hedges 0.13 0.13 0.67 0.08  Impairment of nuclear decom. trust investments (0.01) (0.01) (0.04)  Sale of Latin American businesses 0.67  Sale of telecommunication operations (0.06)  Sale of gas and propane businesses (0.01) (0.11)  Settlement of Wallingford cost-based rates 0.09  Impairment of transmission rights (0.04)  Change in U.K. tax rate 0.14  Workforce reductions (0.03) (0.03) (0.02)  Synfuel tax adjustment (0.04)  Montana basin seepage litigation (0.01)  Other asset impairments (0.01) (0.01) (0.05)  Impairments & other impacts - EAs (0.04) (0.04) (0.07)  0.04 0.04 0.45 0.75  Reported Earnings per share of common stock $1.94 $1.64 $2.47 $3.35  Note: Per share amounts are based on diluted shares outstanding.  MTM adj's from energy-related, non-trading  Forecast Actual  A-12

 Credit Ratings  A-13  BBB Issuer Rating  AAA Aaa Tax-Exempt Bonds*  STABLE NEGATIVESTABLE Outlook  A-A-A3Senior Secured Debt  F-2A-2P-2Commercial Paper  BBBBBBBaa3Preferred Stock  BBBA-Baa1Issuer Rating  A-A-A3First Mortgage Bonds  AA-/A-A3/Baa1Tax-Exempt Bonds**  BBBBBBBaa3Preference Stock  PPL Electric Utilities  BBBBBB-Baa2Senior Unsecured Debt  BBB-BB+ Baa3Subordinated Debt  STABLE STABLE STABLE Outlook  PPL Capital Funding  BBB BBB Issuer Rating  BBB+ BBBBaa2Senior Notes  STABLE NEGATIVESTABLE Outlook  PPL Energy Supply  STABLE NEGATIVESTABLE Outlook  BBBBBBBaa2Issuer Rating  PPL Corporation  Fitch Standard & Poor’s Moody’s  * Letter of Credit-Backed Security  ** Includes both Insured and Non-Insured Securities

 Credit Ratings (cont.)  A-14  A-3Commercial Paper  A-BBB+ Baa1Senior Unsecured Debt  F2A-2P-2Commercial Paper  POSITIVENEGATIVESTABLE Outlook  BBB+ BBB+ Baa1Issuer Rating  A-BBB+ Baa1Senior Unsecured Debt  F2A-2Commercial Paper  POSITIVENEGATIVESTABLE Outlook  Western Power Distribution (South West) PLC  BBB+ BBB+ Issuer Rating  Western Power Distribution (South Wales) PLC  POSITIVENEGATIVESTABLE Outlook  POSITIVE NEGATIVE Outlook  BBBBBB-Issuer Rating  WPD Holdings LLP  BBB-BBB-Baa3Issuer Rating  BBBBBB-Baa3Senior Unsecured Debt  A-3Commercial Paper  WPD Holdings Limited  BBBBBB-Baa3Pass-Through Certificates  STABLE STABLE Outlook  PPL Montana  Fitch Standard & Poor’s Moody’s   

Forward-Looking Information Statement  A-15  Statements contained in this presentation, including statements with respect to future earnings, energy prices, margins,  sales and supply, marketing performance, hedging, growth, revenues, expenses, rates, regulation, cash flows, credit  profile, financing, dividends, business disposition, corporate strategy, capital additions and expenditures, and generating  capacity and performance, are “forward-looking statements” within the meaning of the federal securities laws. Although  PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are  reasonable, these statements involve a number of risks and uncertainties, and actual results may differ materially from the  results discussed in the statements. The following are among the important factors that could cause actual results to differ  materially from the forward-looking statements: market demand and prices for energy, capacity and fuel; volatility in  financial or commodities markets; weather conditions affecting customer energy usage and operating costs; competition in  power markets; the effect of any business or industry restructuring; the profitability and liquidity of PPL Corporation and its  subsidiaries; new accounting requirements or new interpretations or applications of existing requirements; operating  performance of plants and other facilities; environmental conditions and requirements and the related costs of compliance,  including environmental capital expenditures and emission allowance and other expenses; system conditions and  operating costs; development of new projects, markets and technologies; performance of new ventures; asset acquisitions  and dispositions; any impact of hurricanes or other severe weather on our business, including any impact on fuel prices;  receipt of necessary government permits, approvals and rate relief; capital market conditions and decisions regarding  capital structure; the impact of state, federal or foreign investigations applicable to PPL Corporation and its subsidiaries;  the outcome of litigation against PPL Corporation and its subsidiaries; stock price performance; the market prices of equity  securities and the impact on pension income and resultant cash funding requirements for defined benefit pension plans;  the securities and credit ratings of PPL Corporation and its subsidiaries; political, regulatory or economic conditions in  states, regions or countries where PPL Corporation or its subsidiaries conduct business, including any potential effects of  threatened or actual terrorism or war or other hostilities; foreign exchange rates; new state, federal or foreign legislation,  including new tax legislation; and the commitments and liabilities of PPL Corporation and its subsidiaries. Any such  forward-looking statements should be considered in light of such important factors and in conjunction with PPL  Corporation’s Form 10-K and other reports on file with the Securities and Exchange Commission. 

“Earnings from ongoing operations” excludes the impact of special items. Special items include charges, credits or gains that are unusual  or nonrecurring. Special items also include the mark-to-market impact of energy-related, non-trading economic hedges and impairments  of securities in PPL’s nuclear decommissioning trust funds. These energy-related, non-trading economic hedges are used to hedge a  portion of the economic value of PPL’s generation assets and PPL’s load-following and retail activities. This economic value is subject to  changes in fair value due to market price volatility of the input and output commodities (e.g., coal and power). The mark-to-market impact  of these hedges is economically neutral to the company because the mark-to-market gains or losses on the energy hedges will reverse as  the hedging contracts settle in the future. Earnings from ongoing operations should not be considered as an alternative to reported  earnings, or net income, which is an indicator of operating performance determined in accordance with generally accepted accounting  principles (GAAP). PPL believes that earnings from ongoing operations, although a non-GAAP measure, is also useful and meaningful to  investors because it provides them with PPL’s underlying earnings performance as another criterion in making their investment decisions.  PPL’s management also uses earnings from ongoing operations in measuring certain corporate performance goals. Other companies  may use different measures to present financial performance.  “Free cash flow before dividends” is derived by deducting capital expenditures and other investing activities-net, as well as the repayment  of transition bonds, from cash flow from operations. Free cash flow before dividends should not be considered as an alternative to cash  flow from operations, which is determined in accordance with GAAP. PPL believes that free cash flow before dividends, although a non- GAAP measure, is an important measure to both management and investors since it is an indicator of the company’s ability to sustain  operations and growth without additional outside financing beyond the requirement to fund maturing debt obligations. Other companies  may calculate free cash flow before dividends in a different manner.  "Domestic Gross Energy Margins" is intended to supplement the investors' understanding of PPL’s domestic non-trading and trading  activities by combining applicable income statement line items and related adjustments to calculate a single financial measure. PPL  believes that "Domestic Gross Energy Margins" is useful and meaningful to investors because it provides them with the results of PPL's  domestic non-trading and trading activities as another criterion in making their investment decisions. "Domestic Gross Energy Margins" is  not intended to replace "Operating Income," which is determined in accordance with GAAP, as an indicator of overall operating  performance. PPL's management also uses "Domestic Gross Energy Margins" in measuring certain corporate performance goals used in  determining variable compensation. Other companies may use different measures to present the results of their non-trading and trading  activities.  Definitions of Financial Measures  A-16