ALLENTOWN, Pa., May 16, 2005 (PRNewswire-FirstCall) — PPL Corporation has completed the sale of the 450-megawatt Sundance power plant to the Arizona Public Service Company for approximately $190 million in cash.
“This transaction represents a good business decision for PPL,” said John R. Biggar, PPL’s executive vice president and chief financial officer. “APS was looking for a reliable power source to meet the growing needs of its customers, and PPL was open to exploring opportunities that further enhance shareowner value,” he said.
Biggar said the sale will enhance PPL’s cash flow position and, excluding the unusual charge, will be accretive to the company’s earnings in 2005 and in subsequent years. Proceeds of the sale are expected to be used to reduce PPL’s outstanding debt and improve its liquidity.
The Sundance plant is located in Pinal County, Ariz., about 55 miles southeast of Phoenix. The plant, which has been in service since July 2002, uses simple-cycle, natural-gas-fired turbines and operates primarily in periods of high energy demand.
As previously announced, Biggar said PPL will take an unusual, non-cash charge related to the transaction of approximately $47 million after taxes, or $0.25 per share, in the second quarter of 2005.
PPL also reaffirmed its 2005 forecast of $3.80 to $4.20 per share in earnings from ongoing operations, which excludes unusual items. The company’s 2005 forecast of $3.38 to $3.78 per share in reported earnings reflects the unusual charge related to the Sundance sale, as well as two previously announced first quarter 2005 unusual after-tax charges: $0.14 per share related to a PJM Interconnection billing dispute and $0.03 per share related to an agreement in principle to settle litigation with NorthWestern Energy.
About PPL Corporation [ www.pplweb.com ]
PPL Corporation, headquartered in Allentown, Pa., controls about 12,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to nearly 5 million customers in Pennsylvania, the United Kingdom and Latin America.