Attached files
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8-K - FORM 8-K - PPL Corp | form8k.htm |
Exhibit
99.1
Contact:
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Joseph
P. Bergstein for financial community, 610-774-4124
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George
Biechler, for news media, 610-774-5997
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Two
N. Ninth St.
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Allentown,
PA 18101
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ALLENTOWN, Pa. (Dec. 7, 2009) -- PPL Corporation (NYSE: PPL) has reviewed the final
decision on new price controls, made Monday (12/7) by the Office of Gas and
Electricity Markets, the entity that regulates Western Power Distribution, PPL’s
electricity distribution company in the United Kingdom.
Ofgem’s
decision governs prices charged by electricity distribution companies such as
WPD for the five-year period from April 1, 2010, through March 31,
2015.
The
regulator’s decision allows WPD an average increase in total revenues, before
inflationary adjustments, of 6.9 percent in each of the five years through March
31, 2015. The revenue increase includes reimbursement to electricity
distributors for higher operating and capital costs to be incurred. WPD was one
of only two efficient companies identified by Ofgem to be allocated its
requested costs as opposed to an overall average reduction of 8 percent across
all companies.
In the
report, Ofgem set the weighted average cost of capital (“vanilla”) at 4.7
percent for all companies. This is a 0.8 percent decrease from the previous
regulatory period. Additionally, Ofgem has established strong incentive
mechanisms to provide companies significant opportunities to enhance overall
returns by improving network efficiency, reliability or customer
service.
“We’re
pleased that Ofgem has balanced fair customer rates in the near term with our
long-term need to fund costs related to system reliability, to upgrade aging
infrastructure and to accommodate emerging low-carbon energy sources,” said Rick
Klingensmith, president of PPL Global, WPD’s parent company. “We are also
pleased that Ofgem has recognized, in its revenue determination, WPD’s
outperformance in setting the benchmark for quality of service and network
investment efficiency.”
Klingensmith
said, “While we were disappointed with the weighted average cost of capital
determination, when factoring in all component pieces of the Ofgem
determination, the anticipated earnings contribution from PPL’s international
delivery business segment is consistent with our expectations for
2010.”
The full
Ofgem report can be accessed at www.ofgem.gov.uk.
WPD
serves 2.6 million customers in southwest England and south Wales.
PPL
Corporation, headquartered in Allentown, Pa., owns or controls nearly 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.
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