ALLENTOWN, Pa., June 28, 2002 — PPL Corp. has reinforced its strong liquidity and credit- quality positions this week with the renewal by two of its subsidiaries, PPL Energy Supply, LLC and PPL Electric Utilities Corp., of an aggregate of $1 billion in credit facilities with a consortium of banks led by Wachovia Securities, Inc. and Salomon Smith Barney, Inc.
PPL Energy Supply closed this week on a $300 million 364-day credit facility that includes a one-year term out provision and a $300 million 3-year credit facility that expires in June 2005.
PPL Energy Supply also maintains a $500 million 3-year credit facility that expires in June 2004. PPL Electric Utilities closed this week on a $400 million 364-day credit facility that includes a one-year term out provision.
In total, PPL Energy Supply and PPL Electric Utilities have $1.5 billion in available bank facilities, which serve as credit backstops to each company’s commercial paper program. In addition, each company has the ability under its respective bank facilities to cause the lenders to issue letters of credit.
John R. Biggar, PPL’s executive vice president and chief financial officer, said the company plans to maintain its strong credit and liquidity position while growing its business through the implementation of its integrated energy supply and delivery strategy. “Our strong liquidity position provides us with the flexibility to respond to changing business conditions as well as a platform to pursue future growth opportunities,” he said. At March 31, 2002, PPL had about $485 million of cash on hand.
Biggar reaffirmed that PPL is on track to meet its 2002 earnings forecast of $3.30 to $3.50 per share from core operations.
On June 19, PPL announced a productivity enhancement program to reduce the company’s operation and maintenance costs by about $50 million a year.
The plan includes the elimination of 7 percent, or 598 of its U.S. employees. The company is also making use of technological advances and new work processes.
The plan calls for the elimination of 285 management positions and 313 bargaining unit jobs, but that it wouldn’t eliminate certain positions that are key to providing high-quality service to PPL’s electricity delivery customers — linemen, electricians and line foremen, for example.
PPL’s integrated corporate strategy encompasses generating and selling energy in key U.S. markets, maintaining an optimum balance of energy supply and customer load under multi-year contracts and operating high-quality energy-delivery businesses in select regions.
PPL Corporation, headquartered in Allentown, Pa., controls or owns more than 10,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets, and delivers electricity to nearly 6 million customers in Pennsylvania, the United Kingdom and Latin America.