PPL Corp - FORM 8-K - EX-99.2 - FORM 8K EXHIBIT 99.2 - November 7, 2011

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EX-99.1 - FORM 8K EXHIBIT 99.1 - PPL Corpform8k-exhibit99_1.htm
8-K - FORM 8K - PPL Corpform8k.htm
©PPL Corporation 2011
EEI Financial Conference

Orlando, FL
November 6 - 9, 2011
©PPL Corporation 2011
 
 
 
©PPL Corporation 2011
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.
 
 
 
Exhibit 99.2
3
PPL Delivery and Generation Assets
United Kingdom delivery territories:
WPD (South Wales)
WPD (South West)
WPD (West Midlands)
WPD (East Midlands)
United Kingdom delivery territories:
Delivery territories:
•
PPL Electric Utilities
•
Kentucky Utilities
•
Louisville Gas and Electric
Delivery territories:
•
PPL Electric Utilities
•
Kentucky Utilities
•
Louisville Gas and Electric
Delivery territories:
•
PPL Electric Utilities
•
Kentucky Utilities
•
Louisville Gas and Electric
United Kingdom delivery territories:
Generation assets:
Competitive power plants
Regulated power plants
Generation assets:
Regulated power plants
Generation assets:
Regulated power plants
 
 
 
©PPL Corporation 2011
4
Investment Highlights
  Predominantly rate-regulated business mix with significant growth prospects
  Operations in constructive jurisdictions
  Approximately two-thirds of regulated capital expenditures earn real-time or near real-time
 returns
  ~ 9% compound annual growth in rate base from 2011 to 2015
  Expect 75% of 2013 EBITDA from regulated businesses
  Highly attractive competitive generation fleet
  Competitively positioned nuclear, hydro and efficient coal
  Complemented by flexible dispatch gas fired units
  No significant exposure to currently proposed environmental regulations
  Multiple drivers of significant upside
  Increasing natural gas prices
  Increasing heat rates
  Environmental regulation
  Business Risk Profile rated “Excellent” by S&P
  Stable ratings outlooks
  Secure dividend with strong platform for future growth
 
 
 
©PPL Corporation 2011
5
(1)
(2)
67%
$0.8
$0.2
$0.2
69%
$1.1
$0.6
$0.3
69%
$0.6
$0.8
$1.1
66%
$1.1
$0.7
$0.5
65%
$1.1
$0.5
$0.4
Note:  $ in billions.
(1) Includes capex for WPD Midlands. Figures based on assumed exchange rate of $1.60 / GBP.
(1)
Real-Time Recovery of Regulated
Capex Spending
Approximately two-thirds of regulated capital expenditures earn returns
subject to minimal or no regulatory lag
 
 
 
©PPL Corporation 2011
6
Midlands Integration
 Goal: Improved Performance…
  Safety
  Network performance
  Contact center
  Complaint handling
…resulting in cost efficiencies and potential
long-term revenue bonuses
 
 
 
©PPL Corporation 2011
7
Midlands Integration - Actions to Date
 Road shows completed for 3,900 Midlands staff setting out WPD
 background values and approach to integration - 36 presentations over 9
 days
 Organizational design completed
 85% of union staff voted to move to single set of WPD labor contract
 terms
 Staff allocated new roles
 Redundancy notices sent
 Systems integration on track
 
 
 
©PPL Corporation 2011
8
Midlands Integration - Improved Safety
 
2010/11
(April to Sep 2010)
2011/12
(April to Sep 2011)
Lost Time
Accidents
9
1
Non Lost Time
Accidents
52
50
 
 
 
©PPL Corporation 2011
9
Midlands Integration - Improved
Network Performance
 Target 60:
 18 Hour Standard:
 
 
 
©PPL Corporation 2011
10
Midlands Integration - Improved
Network Performance (cont’d)
 Customer
 Minutes Lost:
 Customer
 Interruptions:
 
 
 
©PPL Corporation 2011
11
WPD Performance Rewards Top in Industry
Aggregate Total Award / Penalty ($ in millions)
Aggregate as % of
DPCR4 Revenue
Source: Ofgem data.
Note:  Figures based on assumed exchange rate of $1.60 / GBP.
12.3%
7.1%
1.4%
0.8%
1.0%
0.4%
(3.9%)
Improvement
Opportunity
11 WPD Performance Rewards Top in Industry WPD Performance Rewards Top in Industry $13.9  $ 21.8 $34.7 $65.1  $350.9  $386.7  CKI  CE  Electric  ENW  Scottish  Power  Central  Networks  SSE  WPD  ($ 80.0)  Aggregate  Total Award /  Penalty  ($ in  millions)  Aggregate as  %  of  DPCR4 Revenue  Source:  Ofgem  data.  Note:  Figures based on assumed exchange rate of $1.60 / GBP.  $18.7  Customer  Minutes  Lost  ( " CML" )  Targets  tougher  than  benchmark  29.0  Supply  restoration best  practice  3.0  Telephone  &  Discretionary  26.7  Customers  Interrupted  51.2  Annual  CML  Incentives  3.9  Associated  Interest  $132.5  Total  DPCR4  $80.6  CML Targets  tougher  than  benchmark  51.0  Forecasting  Accuracy  (Information  Quality  Incentive ( " IQI" ) )  110.4  Capital  Cost  Efficiency  ( pre- IQI)  12.2  Operating  Cost  Efficiency  $254.2  Total  DPCR5  $386.7  Total DPCR4 &  DPCR5  Rewards  during  DPCR4  Rewards  secured  for  DPCR5  WPD Rewards  12.3%  7.1%  1.4%  0.8%  1.0%  0.4%  (3.9% )  Improvement Opportunity  ©PPL Corporation 2011  1 WPD Performance Rewards Top in Industry WPD Performance Rewards Top in Industry $13.9  $ 21.8 $34.7 $65.1  $350.9  $386.7  CKI  CE  Electric  ENW  Scottish  Power  Central  Networks  SSE  WPD  ($ 80.0)  Aggregate  Total Award /  Penalty  ($ in  millions)  Aggregate as  %  of  DPCR4 Revenue  Source:  Ofgem  data.  Note:  Figures based on assumed exchange rate of $1.60 / GBP.  $18.7  Customer  Minutes  Lost  ( " CML" )  Targets  tougher  than  benchmark  29.0  Supply  restoration best  practice  3.0  Telephone  &  Discretionary  26.7  Customers  Interrupted  51.2  Annual  CML  Incentives  3.9  Associated  Interest  $132.5  Total  DPCR4  $80.6  CML Targets  tougher  than  benchmark  51.0  Forecasting  Accuracy  (Information  Quality  Incentive ( " IQI" ) )  110.4  Capital  Cost  Efficiency  ( pre- IQI)  12.2  Operating  Cost  Efficiency  $254.2  Total  DPCR5  $386.7  Total DPCR4 &  DPCR5  Rewards  during  DPCR4  Rewards  secured  for  DPCR5  WPD Rewards  12.3%  7.1%  1.4%  0.8%  1.0%  0.4%  (3.9% )  Improvement Opportunity
 
 
 
©PPL Corporation 2011
12
Significant Synergy Opportunity
100% Synergies retained through end of current rate period(1); 47% in following rate period(2)
Estimated Annual Pre-Tax Synergies
Opex Synergies by Category
Note:  Figures based on assumed exchange rate of $1.60 / GBP.
(1) Ends in March 2015.
(2) Expected to end in March 2023.
$ in millions
 
 
 
©PPL Corporation 2011
13
Kentucky Regulated
 Environmental Cost Recovery (ECR) Mechanism
  ECR allows real-time return of and on environmental investment
 (including CWIP) and recovery of environmental expenses
 associated with coal-fired generation
  Total Capital Expenditure Plan - $2.5 Billion
  LG&E - $1.4 Billion
  KU - $1.1 Billion
  No impact from EPA’s recent modifications to CSAPR allocations
  KPSC ruling expected in mid-December
 
 
 
©PPL Corporation 2011
14
Pennsylvania Regulated - Transmission
  PPL Electric to build Pennsylvania
 portion of the 150-mile
 Susquehanna to Roseland, NJ
 500 kV transmission line. New
 Jersey portion of the line to be
 built by PSEG
  Already approved by both PA and
 NJ state utility commissions
  ROE of 12.93%
  Currently under review by
 National Park Service
  Expected in-service date in the
 spring of 2015
Named to initial list of projects for federal Rapid Response Team for Transmission
  Susquehanna-Roseland Transmission Line
 
 
 
©PPL Corporation 2011
15
Pennsylvania Regulated - Distribution
 House Bill 1294 - Alternative Ratemaking
  Bill provides for timely recovery of costs for a broad
 range of capital projects geared toward improving and
 maintaining safety and reliability
  Passed House on Oct. 4
  Currently being reviewed by the Consumer Protection
 and Professional Licensure Committee (Senate)
 
 
 
©PPL Corporation 2011
16
Supply Market Fundamentals
 Coal Retirements in PJM
  7 - 17 GWs of PJM coal-fired capacity at-risk for retirement by 2019.
  Most at an average age of 50 years, are under 500 MWs, and have capacity
 factors around 30%
  ~ 50% located in western PJM
 Price Impact
  Anticipate an increase in PJM West Hub prices
  Actual increase difficult to predict currently as:
  The allowance market is not yet functioning
  Retrofit costs and operational adjustments are not fully incorporated
  Heat rates will likely expand as coal-fired generation either retires or backs down
 PPL Impact
  PJM Fleet - Well-positioned to capture anticipated increases in PJM
 pricing while having minimal impacts on operations.
 
 
 
©PPL Corporation 2011
17
Dividend Profile
A significantly more rate-regulated business mix provides strong
support for current dividend and a platform for future growth
(1)  Ongoing EPS based on mid-point of forecast. Annualized dividend based on 3rd quarter declaration. Actual dividends to
 be determined by Board of Directors.
(2)  From only regulated segments.
$/Share
Annualized
(2)
(1)
 
 
 
©PPL Corporation 2011
18
Appendix
 
 
 
©PPL Corporation 2011
19
$3.13
$2.75
$/Share
(1) Based on mid-point of forecasted earnings range.
Note: See appendix for reconciliation of earnings from ongoing operations to reported earnings.
(1)
$2.55
2010A
2011E
Increased 2011 Earnings from Ongoing
Operations Forecast
 
 
 
©PPL Corporation 2011
20
International - Modeling Parameters
20  International International  ––  Modeling Parameters Modeling Parameters  – – – – – – X = Revenues  ( £ )  . Regulated Revenues escalate  5.5%  annually  plus  inflation  through  end of  current  price  control  period plus  incentives;  Energy  related  business  revenues are flat  . Operation  and  Maintenance  expense  ( excluding  pension  expense)  escalates  at  inflation  after  incorporating  efficiencies from  WPD  Midlands  Pension  expense increases  from  £20  million  in  2011  to  £50 million  by  2013 and then  reduces beyond  Operation  and  Maintenance ( £ )  Pension Expense ( £ )  .. Interest  Expense ( £ )  Income  Taxes ( £ )  Depreciation  expense escalates at  about  7%  per  annum  Interest  Expense  primarily  fixed  except  for  £ 365  million  of  index  linked debt  escalating  at  inflation,  plus  PPL  issued  2011  Equity  Units  .. Effective  tax  rate  of  about  24%  per  annum  Real  Estate  taxes and  Energy  related Business expense are flat  Depreciation  Expense  (£ )  Real  Estate  Taxes  plus  Energy  related  Business  Expense  (£ )  . International Regulated Net Income Foreign Currency Assumption. Assumed  $/ £  foreign  currency  exchange  rate  ©PPL Corporation 2011  2  International International  ––  Modeling Parameters Modeling Parameters  – – – – – – X = Revenues  ( £ )  . Regulated Revenues escalate  5.5%  annually  plus  inflation  through  end of  current  price  control  period plus  incentives;  Energy  related  business  revenues are flat  . Operation  and  Maintenance  expense  ( excluding  pension  expense)  escalates  at  inflation  after  incorporating  efficiencies from  WPD  Midlands  Pension  expense increases  from  £20  million  in  2011  to  £50 million  by  2013 and then  reduces beyond  Operation  and  Maintenance ( £ )  Pension Expense ( £ )  .. Interest  Expense ( £ )  Income  Taxes ( £ )  Depreciation  expense escalates at  about  7%  per  annum  Interest  Expense  primarily  fixed  except  for  £ 365  million  of  index  linked debt  escalating  at  inflation,  plus  PPL  issued  2011  Equity  Units  .. Effective  tax  rate  of  about  24%  per  annum  Real  Estate  taxes and  Energy  related Business expense are flat  Depreciation  Expense  (£ )  Real  Estate  Taxes  plus  Energy  related  Business  Expense  (£ )  . International Regulated Net Income Foreign Currency Assumption. Assumed $/ £ foreign currency exchange rate
 
 
 
©PPL Corporation 2011
21
WPD - Annual Revenue Performance Bonuses
  WPD has earned over $100 million in annual performance awards over the past
 7-year regulatory period, excluding Central Networks historical performance
Annual Revenue Performance Bonuses  Annual Revenue Performance Bonuses Annual Revenue Performance Bonuses  WPD has earned over $100 million in annual performance awards over the past  7-year regulatory period, excluding Central Networks historical performance    WPD South West & South Wales  Central  Networks (pre-acquisition)  Regulatory  Year  ( ending 3/31)  Total  Awards,  £  % of  Revenue  Total $  Regulatory  Year  ( ending 3/31)  Total  Awards,  £  % of  Revenue  Total $  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11  £6.1 £9.5 £6.7 £8.0 £11.8 £12.1 £7.2  1.6%  2.3%  1.6%  1.8%  2.8%  2.6%  1.5%  $ 11.3  $ 17.1  $ 13.4  $ 15.1  $ 16.7  $ 18.3  $ 11.4  2004/05 2005/06 2006/07 2007/08 2008/09 2009/10 2010/11  - £0.5 £7.5  - £5.4  - £1.7 £8.2 £7.9 £11.6  --- - 0.3% 1.3%  1.2%  1.6%  -$0.9 $13.5 -$10.7 - $3.3  $ 11.7  $ 11.9  $ 18.5  Total:  £61.3  2.0%  $ 103.3  Total:  £27.6  1.0%  $ 40.8   ©PPL Corporation 2011  21
 
 
 
©PPL Corporation 2011
22
Capacity revenues are expected to be $430 million, $385 million and $590 million for 2011, 2012 and 2013, respectively.
As of September 30, 2011
(1) Represents expected sales of Supply segment based on current business plan assumptions.
(2) The 2011 average hedge energy prices are based on the fixed price swaps as of September 30, 2011; the prior collars have all been converted to fixed swaps.
(3) The 2012 and 2013 ranges of average energy prices for existing hedges were estimated by determining the impact on the existing collars resulting from 2012 and 2013 power prices at the
5th and 95th percentile confidence levels.
(4) Includes nine months of actual results.
(5) Transportation contract in negotiation.
 
 
 
2011(4)
 
2012
 
2013
Baseload
 
 
 
 
 
 
 
Expected Generation(1) (Million MWhs)
 
 
 47.0
 
 54.7
 
54.4
East
 
 
 39.5
 
 46.2
 
46.0
West
 
 
 7.5
 
 8.5
 
8.4
Current Hedges (%)
 
 
 100%
 
 91%
 
72%
East
 
 
 100%
 
 90%
 
72%
West
 
 
  100%
 
 96%
 
75%
Average Hedged Price (Energy Only) ($/MWh)(2) (3)
 
 
 
 
 
 
 
East
 
 
 $57
 
 $54-55
 
$53-56
West
 
 
 $55
 
 $53-54
 
$50-51
Current Coal Hedges (%)
 
 
 100%
 
 96%
 
89%
East
 
 
 100%
 
 95%
 
93%
West
 
 
  100%
 
 100%
 
79%
Average Hedged Consumed Coal Price (Delivered $/Ton)
 
 
 
 
 
 
 
East
 
 
 $73-74
 
 $76-80
 
(5)
West
 
 
 $24-26
 
 $23-29
 
$23-30
Intermediate/Peaking
 
 
 
 
 
 
 
Expected Generation(1) (Million MWhs)
 
 
 8.0
 
6.2
 
6.3
Current Hedges (%)
 
 
 100%
 
32%
 
19%
Enhancing Value Through Active Hedging
 
 
 
©PPL Corporation 2011
23
Market Prices
(1)
24-hour average.
(2)
NYMEX and TZ6NNY forward gas prices on 9/30/2011.
(3)
Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price.
23  Market Prices Market Prices Balance of  2011  2012  2013  $46  $52  $56  $36  $39  $42  $41  $45  $48  $33  $33  $41  $29  $24  $30  $31  $29  $36  $3.80  $4.24  $4.80  $4.55  $4.99  $5.48  10.2  10.5  10.2  $136.79  $123.63  $187.49  88.6%  89.8%  91.3%  (Per  MWD)  EQA HEAT  RATE(3)  TZ6NNY  PJM MARKET  ATC(1)  NYMEX  GAS(2)  CAPACITY  PRICES  Mid- Columbia  On-Peak  Off-Peak  ATC(1) ELECTRIC  PJM On-Peak  Off-Peak  (1)  24- hour average.  (2)  NYMEX and TZ6NNY forward gas prices on 9/30/ 2011.  (3)  Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price.  ©PPL Corporation 2011  4  Market Prices Market Prices Balance of  2011  2012  2013  $46  $52  $56  $36  $39  $42  $41  $45  $48  $33  $33  $41  $29  $24  $30  $31  $29  $36  $3.80  $4.24  $4.80  $4.55  $4.99  $5.48  10.2  10.5  10.2  $136.79  $123.63  $187.49  88.6%  89.8%  91.3%  (Per  MWD)  EQA HEAT  RATE(3)  TZ6NNY  PJM MARKET  ATC(1)  NYMEX  GAS(2)  CAPACITY  PRICES  Mid- Columbia  On-Peak  Off-Peak  ATC(1) ELECTRIC  PJM On-Peak  Off-Peak  (1)  24- hour average.  (2)  NYMEX and TZ6NNY forward gas prices on 9/30/ 2011.  (3)  Market Heat Rate = PJM on-peak power price divided by TZ6NNY gas price.
 
 
 
©PPL Corporation 2011
24
Supply Hydro Expansion
 Construction Progress
  Holtwood Hydro Expansion Project (PA)
Rainbow Hydro Project (MT)
 
 
 
©PPL Corporation 2011
25
Regulated Rate Base Growth
($ in billions)
(1) Represents capitalization for LKE, as LG&E and KU rate constructs are based on capitalization. Represents Regulatory Asset Value (RAV) for WPD.
(2) Includes RAV for WPD Midlands. Figures based on assumed exchange rate of $1.60 / GBP and are as of year-end December 31.
$17.9
$19.3
$21.6
$23.8
$25.5
(2)
2011E - 2015E Regulatory Asset Base CAGR: 9.3%
(1)
 
 
 
©PPL Corporation 2011
26
Capital Expenditures
($ in billions)
(1) Includes capex for WPD Midlands. Figures based on assumed exchange rate of $1.60 / GBP.
(2) Expect approximately 85% to receive timely returns via ECR mechanism based on historical experience.
(1)
(2)
$2.6
$3.7
$4.3
$4.1
$3.7
 
 
 
©PPL Corporation 2011
27
Note: As of September 30, 2011
(1) Notes were repaid at maturity in November 2011.
(2) Excludes $1.15 billion of junior subordinated notes due 2018 that are a component of PPL’s 2010 Equity Units and
 may be put back to PPL Capital Funding if the remarketing in 2013 is not successful.
(3) Excludes $978 million of junior subordinated notes due 2019 that are a component of PPL’s 2011 Equity Units and
 may be put back to PPL Capital Funding if the remarketing in 2014 is not successful.
(4) Bonds defeased in substance in 2008 by depositing sufficient funds with the trustee.
(5) Represents REset Put Securities due 2035 that are required to be put by the holders in October 2015 either for (a)
 purchase and remarketing by a remarketing dealer or (b) repurchase by PPL Energy Supply.
Debt Maturities
27  Debt Maturities Debt Maturities  2011  2012  2013  2014  2015  PPL Capital Funding  $0  $0  $0  (2)  $0  (3)  $0  LG& E  and KU  Energy  ( Holding Co  LKE)  2  (1)  0  0  0  400  Louisville  Gas  &  Electric  0  0  0  0  250  Kentucky  Utilities  0  0  0  0  250  PPL Electric  Utilities  0  0  0  10  (4)  100  PPL Energy  Supply  500  (1)  0  737  300  300  (5)  WPD  0  0  0  0  0  Total  $502  $0  $737  $ 310  $1,300  ( Millions)  ©PPL Corporation 2011  5  Debt Maturities Debt Maturities  Note:  As  of  September  30, 2011  ( 1)  Notes  were repaid  at  maturity in  November  2011.  ( 2)  Excludes  $1.15 billion of  junior  subordinated notes  due  2018  that are a component  of PPL’s  2010 Equity  Units  and  may  be  put  back  to  PPL  Capital Funding  if the remarketing  in  2013  is  not successful.  ( 3)  Excludes  $978  million of  junior  subordinated notes  due 2019  that  are a component  of PPL’s  2011 Equity  Units  and  may  be  put  back  to  PPL  Capital Funding  if the remarketing  in  2014  is  not successful.  ( 4)  Bonds  defeased in  substance  in  2008  by depositing  sufficient funds  with  the trustee.  ( 5)  Represents  REset Put  Securities  due  2035 that  are required to  be  put  by  the  holders  in  October  2015  either  for  (a)  purchase and  remarketing  by  a  remarketing  dealer  or  (b)  repurchase  by  PPL Energy  Supply.  2011  2012  2013  2014  2015  PPL Capital Funding  $0  $0  $0  (2)  $0  (3)  $0  LG& E  and KU  Energy  ( Holding Co  LKE)  2  (1)  0  0  0  400  Louisville  Gas  &  Electric  0  0  0  0  250  Kentucky  Utilities  0  0  0  0  250  PPL Electric  Utilities  0  0  0  10  (4)  100  PPL Energy  Supply  500  (1)  0  737  300  300  (5)  WPD  0  0  0  0  0  Total  $502  $0  $737  $ 310  $1,300  ( Millions)
 
 
 
©PPL Corporation 2011
28
Note: As of September 30, 2011
●        Credit facilities consist of a diverse bank group, with no bank and its affiliates providing an aggregate commitment of more than
 9% of the total committed capacity for the domestic facilities and 17% of the total committed capacity for WPD’s facilities.
(1) In October 2011, PPL Energy Supply, PPL Electric Utilities, Louisville Gas & Electric and Kentucky Utilities each amended its
 respective syndicated credit facility, which included extending the expiration dates to October 2016.
(1)
(1)
(1)
(1)
Liquidity Profile
28  Institution  Facility  Expiration  Date  Total  Facility  (Millions)  Letters  of  Credit  Outstanding  (Millions)  Drawn  (Millions)  Availability  (Millions)  PPL  Energy  Supply  Syndicated Credit  Facility  Dec  2014  $ 3,000  $132  $ 250  $2,618  Letter  of  Credit  Facility  Mar  2013  200  76  0  124  $3,200  $208  $ 250  $2,742  PPL  Electric  Utilities  Syndicated Credit  Facility  Dec  2014  $200  $13  $ 0  $ 187  Asset  backed  Credit  Facility  Jul  2012  150  0  0  150  $350  $13  $ 0  $ 337  Louisville  Gas  &  Electric  Syndicated Credit  Facility  Dec  2014  $400  $ 0  $0  $400  Kentucky  Utilities  Syndicated Credit  Facility  Dec  2014  $400  $ 0  $0  $400  Letter  of  Credit  Facility  Apr  2014  198  198  0  0  $598  $198  $ 0  $ 400  WPD  PPL  WW  Syndicated Credit  Facility  Jan  2013  £150  £ 0  £ 111  £39  WPD  (South West)  Syndicated Credit  Facility  Jul  2012  210  0  0  210  WPD  ( East  Midlands)  Syndicated Credit  Facility  Apr  2016  300  70  0  230  WPD  (West  Midlands)  Syndicated Credit  Facility  Apr  2016  300  71  0  229  Uncommitted Credit  Facilities  81  3  0  78  £1,041  £144  £ 111  £786  Liquidity Profile Liquidity Profile  Note:  As  of  September  30, 2011  •  Credit facilities  consist of a diverse bank group, with  no bank  and  its  affiliates providing an  aggregate commitment  of  more  than  9%  of  the total  committed  capacity for the  domestic facilities  and  17%  of  the total  committed  capacity for WPD’s facilities.  ( 1)  In  October  2011,  PPL  Energy  Supply, PPL  Electric  Utilities,  Louisville Gas  & Electric  and  Kentucky  Utilities  each  amended  its  respective  syndicated  credit facility, which included  extending  the expiration dates  to  October  2016.  (1) (1) (1) (1)  ©PPL Corporation 2011  6  Institution  Facility  Expiration  Date  Total  Facility  (Millions)  Letters  of  Credit  Outstanding  (Millions)  Drawn  (Millions)  Availability  (Millions)  PPL  Energy  Supply  Syndicated Credit  Facility  Dec  2014  $ 3,000  $132  $ 250  $2,618  Letter  of  Credit  Facility  Mar  2013  200  76  0  124  $3,200  $208  $ 250  $2,742  PPL  Electric  Utilities  Syndicated Credit  Facility  Dec  2014  $200  $13  $ 0  $ 187  Asset  backed  Credit  Facility  Jul  2012  150  0  0  150  $350  $13  $ 0  $ 337  Louisville  Gas  &  Electric  Syndicated Credit  Facility  Dec  2014  $400  $ 0  $0  $400  Kentucky  Utilities  Syndicated Credit  Facility  Dec  2014  $400  $ 0  $0  $400  Letter  of  Credit  Facility  Apr  2014  198  198  0  0  $598  $198  $ 0  $ 400  WPD  PPL  WW  Syndicated Credit  Facility  Jan  2013  £150  £ 0  £ 111  £39  WPD  (South West)  Syndicated Credit  Facility  Jul  2012  210  0  0  210  WPD  ( East  Midlands)  Syndicated Credit  Facility  Apr  2016  300  70  0  230  WPD  (West  Midlands)  Syndicated Credit  Facility  Apr  2016  300  71  0  229  Uncommitted Credit  Facilities  81  3  0  78  £1,041  £144  £ 111  £786  Liquidity Profile Liquidity Profile 
 
 
 
©PPL Corporation 2011
29
Reconciliation of PPL’s Earnings from Ongoing
Operations to Reported Earnings
29 Reconciliation of PPL Reconciliation of PPL’’ s Earnings from Ongoings Earnings from Ongoing Operations to Reported Earnings Operations to Reported Earnings  (Per  Share)  High  Low  2011  2011  2010  2009  Earnings  from  Ongoing  Operations  2.75$  2.55$  3.13$  1.95$  Special Items:  Adjusted energy  related economic  activity,  net  (0.27)  ( 0.59)  Foreign currency  related economic  hedges  0.01  0.01  Sales  of  assets:  Maine hydroelectric generation business  0.03  0.06  Long  Island  generation business  (0.09)  Latin American  businesses  (0.07)  Interest  in  Wyman  Unit  4  (0.01)  Impairments:  Emission  allowances  (0.02)  ( 0.05)  Renewable  energy  credits  (0.01)  ( 0.01)  Other  asset  impairments  (0.01)  WPD  Midlands  acquisition- related costs:  2011  Bridge  Facility  costs  ( 0.05)  ( 0.05)  Foreign currency  loss  on  2011  Bridge  Facility  ( 0.07)  ( 0.07)  Net  hedge  gains  0.07  0.07  Hedge  ineffectiveness  ( 0.02)  ( 0.02)  U. K.  stamp duty  tax  ( 0.04)  ( 0.04)  Separation  costs  ( 0.13)  ( 0.13)  Other  acquisition  related costs  ( 0.06)  ( 0.06)  LKE  acquisition- related  costs:  Monetization of  certain full- requirement  sales  contracts  ( 0.29)  Sale  of  certain  non  core generation  facilities  ( 0.14)  2010  Bridge  Facility  costs  (0.12)  Discontinued cash  flow  hedges  and ineffectiveness  ( 0.06)  Reduction  of  credit  facility  (0.01)  Other  acquisition  related costs  (0.05)  Workforce  reductions  (0.03)  Other:  Montana hydroelectric  litigation  (0.08)  ( 0.01)  Health  care  reform  tax  impact  (0.02)  U. S.  Tax Court ruling (U.K.  Windfall  Profits  Tax)  0.03  Litigation settlement  spent  nuclear  fuel  storage  0.06  0.06  Change in  U. K.  tax  rate  0.13  0.13  0.04  Change in  tax accounting method  related to  repairs  (0.07)  Total  Special  Items  ( 0.11)  ( 0.11)  ( 0.96)  ( 0.87)  Reported Earnings  2.64$  2.44$  2.17$  1.08$  Note:  Per  share  amounts  are  based  on  diluted shares  outstanding.  Forecast  Actual  ©PPL Corporation 2011  7 Reconciliation of PPL Reconciliation of PPL’’ s Earnings from Ongoings Earnings from Ongoing Operations to Reported Earnings Operations to Reported Earnings  (Per  Share)  High  Low  2011  2011  2010  2009  Earnings  from  Ongoing  Operations  2.75$  2.55$  3.13$  1.95$  Special Items:  Adjusted energy  related economic  activity,  net  (0.27)  ( 0.59)  Foreign currency  related economic  hedges  0.01  0.01  Sales  of  assets:  Maine hydroelectric generation business  0.03  0.06  Long  Island  generation business  (0.09)  Latin American  businesses  (0.07)  Interest  in  Wyman  Unit  4  (0.01)  Impairments:  Emission  allowances  (0.02)  ( 0.05)  Renewable  energy  credits  (0.01)  ( 0.01)  Other  asset  impairments  (0.01)  WPD  Midlands  acquisition- related costs:  2011  Bridge  Facility  costs  ( 0.05)  ( 0.05)  Foreign currency  loss  on  2011  Bridge  Facility  ( 0.07)  ( 0.07)  Net  hedge  gains  0.07  0.07  Hedge  ineffectiveness  ( 0.02)  ( 0.02)  U. K.  stamp duty  tax  ( 0.04)  ( 0.04)  Separation  costs  ( 0.13)  ( 0.13)  Other  acquisition  related costs  ( 0.06)  ( 0.06)  LKE  acquisition- related  costs:  Monetization of  certain full- requirement  sales  contracts  ( 0.29)  Sale  of  certain  non  core generation  facilities  ( 0.14)  2010  Bridge  Facility  costs  (0.12)  Discontinued cash  flow  hedges  and ineffectiveness  ( 0.06)  Reduction  of  credit  facility  (0.01)  Other  acquisition  related costs  (0.05)  Workforce  reductions  (0.03)  Other:  Montana hydroelectric  litigation  (0.08)  ( 0.01)  Health  care  reform  tax  impact  (0.02)  U. S.  Tax Court ruling (U.K.  Windfall  Profits  Tax)  0.03  Litigation settlement  spent  nuclear  fuel  storage  0.06  0.06  Change in  U. K.  tax  rate  0.13  0.13  0.04  Change in  tax accounting method  related to  repairs  (0.07)  Total  Special  Items  ( 0.11)  ( 0.11)  ( 0.96)  ( 0.87)  Reported Earnings  2.64$  2.44$  2.17$  1.08$  Note:  Per  share  amounts  are  based  on  diluted shares  outstanding.  Forecast Actual
 
 
 
©PPL Corporation 2011
30
Statements contained in this presentation, including statements with respect to future earnings, cash flows, financing, regulation and
corporate strategy 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 are
subject to 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; the length of scheduled and unscheduled outages at our generating plants; 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 or business acquisitions and dispositions, and PPL Corporation’s ability to realize the expected benefits from acquired
businesses, including the 2010 acquisition of Louisville Gas and Electric Company and Kentucky Utilities Company and the 2011
acquisition of the Central Networks electricity distribution businesses in the U.K.; any impact of hurricanes or other severe weather on
our business, including any impact on fuel prices; receipt of necessary government permits, approvals, rate relief and regulatory cost
recovery; 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.
Forward-Looking Information Statement
 
 
 
©PPL Corporation 2011
31
“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 financial measure, is also useful and meaningful to investors because it provides management’s view of
PPL’s fundamental earnings performance as another criterion in making 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.
“Earnings from ongoing operations” is adjusted for the impact of special items. Special items include:
• Energy-related economic activity (as discussed below).
• Foreign currency-related economic hedges.
• Gains and losses on sales of assets not in the ordinary course of business.
• Impairment charges (including impairments of securities in the company’s nuclear decommissioning trust funds).
• Workforce reduction and other restructuring impacts.
• Acquisition-related costs and charges.
• Other charges or credits that are, in management’s view, not reflective of the company’s ongoing operations.
Energy-related economic activity includes the changes in fair value of positions used economically to hedge a portion of the economic value of PPL’s
generation assets, full-requirement sales contracts 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., fuel and power) prior to the delivery period that was hedged. Also included in energy-related
economic activity is the ineffective portion of qualifying cash flow hedges, the monetization of certain full-requirement sales contracts and premium
amortization associated with options. This economic activity is deferred, with the exception of the full-requirement sales contracts that were
monetized, and included in earnings from ongoing operations over the delivery period of the item that was hedged or upon realization. Management
believes that adjusting for such amounts provides a better matching of earnings from ongoing operations to the actual amounts settled for PPL’s
underlying hedged assets. Please refer to the Notes to the Financial Statements and MD&A in PPL Corporation’s periodic filings with the Securities
and Exchange Commission for additional information on energy-related economic activity.
Free cash flow before dividends is derived by deducting capital expenditures and other investing activities-net, 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, as 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.
Definitions of Non-GAAP Financial Measures

PPL Corp Reports

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