PPL to Develop Power Plant in Great Lakes Region; Increase Generating Capacity at Existing Nuclear Plant

Apr 23, 2001, 01:00 ET from PPL Corporation

    ALLENTOWN, Pa., April 23 /PRNewswire Interactive News Release/ -- Building
 on its strategy to add electricity generating capability in key U.S. markets,
 PPL Corporation (NYSE:   PPL) announced Monday (4/23) that it will develop a
 power plant near Chicago and will increase the capacity of its Susquehanna
 nuclear plant.  These developments will increase PPL's generation capacity by
 more than 600 megawatts.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19981015/PHTH025 )
     "Increased demand for electricity in many areas of the United States is
 triggering an urgent need for new generation sources," said William F. Hecht,
 PPL's chairman, president and chief executive officer.
     "Our development of a plant in the Chicago area is a natural extension of
 PPL's generation expansion strategy, which primarily focuses on the
 Northeastern and Western regions of the U.S.," Hecht said.  "We also look for
 opportunities to add value by expanding our existing facilities."
     According to Hecht, the Illinois facility is expected to cost about
 $305 million and be accretive to PPL earnings in its first year of operation.
 The $120 million of improvements at the Susquehanna plant are expected to be
 accretive to earnings as soon as they go into operation.
     The Illinois plant will be a 540-megawatt, simple-cycle, natural gas-fired
 electric generation facility.  The facility, to be located near University
 Park, is expected to be in service by the summer of 2002.
     Construction of the facility will provide between 125 and 150 jobs in the
 University Park area.  The plant will be built in an industrial park with
 close access to natural gas and high-voltage transmission lines.  The facility
 will use 12 General Electric LM6000 turbines to produce power and will be
 equipped with state-of-the-art emissions reduction equipment.  The turbines
 are being financed using a leasing structure that eliminates the need for any
 cash outlays during the turbine manufacture process and diversifies the
 company's funding sources.
     "The Great Lakes region continues to see its energy needs grow as its
 diverse economy continues to expand," Hecht said.  "This project presents an
 opportunity to use our proven expertise in the energy generation business to
 develop an environmentally friendly, reliable and efficient generation project
 in University Park."
     PPL also will increase the capacity of its Susquehanna nuclear plant in
 Luzerne County, Pa., by 100 megawatts with the installation of more efficient
 steam turbines on each of the two units.  The new turbines, which will replace
 units that have been in operation since the early 1980s, will be installed in
 the spring of 2003 and 2004 during refueling outages at the plant.
     "While this is a comparatively small addition to our generating mix, it
 does provide us with more very low-cost electricity to sell in one of the
 nation's largest power markets," Hecht said.  "This is a very effective way to
 add generation at a well-run facility."
     Hecht said the new turbines also are expected to improve the long-term
 reliability of the 2,200-megawatt Susquehanna plant.  Siemens Westinghouse
 Power Corp. will design, manufacture and install the new turbines.  The
 purchase of the turbines was completed through Enporion Inc., a global supply
 chain and e-marketplace for the electric and gas industries.
     PPL Susquehanna is one of the company's most productive plants.  Last
 year, the plant generated more than 17.5 billion kilowatt-hours, producing
 more electricity than it has in any year in its operational history.
     In fact, record-setting performance at the company's generation
 facilities, optimized by PPL's wholesale trading and marketing activities,
 significantly contributed to the 75 percent increase in the company's earnings
 per share in just the last two years, Hecht said.
     PPL now operates nearly 10,000 megawatts of generation capacity in
 Pennsylvania, Maine and Montana.  With today's announcement, PPL has about
 4,600 megawatts under development, including:
     -- A 225-megawatt plant in Wallingford, Conn., expected to be in service
         by mid-2001.
     -- A 600-megawatt plant near Kingman, Ariz., expected to be in service by
         mid-2001 (PPL owns 50 percent of this facility).
     -- A 450-megawatt plant near Phoenix, Ariz., expected to be in service in
         summer 2002.
     -- A 600-megawatt plant in Lower Mount Bethel, Pa., expected to be in
         service in 2003.
     -- More than 900 megawatts of capacity at five small plant sites in
         eastern Pennsylvania, expected to be in service by 2003.
     -- About 300 megawatts of capacity located on Long Island near Smithtown,
         N.Y., expected to be in service in summer 2003.
     -- A 1,200-megawatt plant located near Starbuck, Wash., expected to come
         online in late 2004 or early 2005.
     Enporion, based in Tampa, Fla., uses technology-based procurement and
 online auction processes to simplify business-to-business purchasing
 transactions.  The e-commerce technology streamlines the purchasing function;
 introduces buyers and sellers; reduces paperwork, redundancy, cycle times and
 transaction costs; and increases efficiency and savings.  PPL is a founding
 member of Enporion.
     PPL Susquehanna, LLC owns 90 percent of the Susquehanna nuclear plant, and
 Allegheny Electric Cooperative Inc. owns the remaining 10 percent.  The plant
 is operated by PPL Susquehanna.
     PPL Corp., headquartered in Allentown, Pa., generates electricity at power
 plants in Pennsylvania, Maine and Montana; markets wholesale or retail energy
 in 42 U.S. states and Canada; and delivers energy to nearly 6 million
 customers in Pennsylvania, the United Kingdom and Latin America.
 
     Certain statements contained in this news release, including statements
 with respect to future earnings, energy supply and demand, costs, subsidiary
 performance, growth, new technology, project development, and generating
 capacity and performance, are "forward-looking statements" within the meaning
 of the federal securities laws.  Although PPL Corp. 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 variations
 affecting customer energy usage; competition in retail and wholesale power
 markets; the effect of any business or industry restructuring; the
 profitability and liquidity of PPL Corp. 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; system conditions and operating costs; development of new
 projects, markets and technologies; performance of new ventures; political,
 regulatory or economic conditions in countries where PPL Corp. or its
 subsidiaries conduct business; receipt of necessary governmental approvals;
 capital market conditions; stock price performance; foreign exchange rates;
 and the commitments and liabilities of PPL Corp. and its subsidiaries.  Any
 such forward-looking statements should be considered in light of such factors
 and in conjunction with PPL Corp.'s Form 10-K and other reports on file with
 the Securities and Exchange Commission.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X87810647
 
 

SOURCE PPL Corporation
    ALLENTOWN, Pa., April 23 /PRNewswire Interactive News Release/ -- Building
 on its strategy to add electricity generating capability in key U.S. markets,
 PPL Corporation (NYSE:   PPL) announced Monday (4/23) that it will develop a
 power plant near Chicago and will increase the capacity of its Susquehanna
 nuclear plant.  These developments will increase PPL's generation capacity by
 more than 600 megawatts.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/19981015/PHTH025 )
     "Increased demand for electricity in many areas of the United States is
 triggering an urgent need for new generation sources," said William F. Hecht,
 PPL's chairman, president and chief executive officer.
     "Our development of a plant in the Chicago area is a natural extension of
 PPL's generation expansion strategy, which primarily focuses on the
 Northeastern and Western regions of the U.S.," Hecht said.  "We also look for
 opportunities to add value by expanding our existing facilities."
     According to Hecht, the Illinois facility is expected to cost about
 $305 million and be accretive to PPL earnings in its first year of operation.
 The $120 million of improvements at the Susquehanna plant are expected to be
 accretive to earnings as soon as they go into operation.
     The Illinois plant will be a 540-megawatt, simple-cycle, natural gas-fired
 electric generation facility.  The facility, to be located near University
 Park, is expected to be in service by the summer of 2002.
     Construction of the facility will provide between 125 and 150 jobs in the
 University Park area.  The plant will be built in an industrial park with
 close access to natural gas and high-voltage transmission lines.  The facility
 will use 12 General Electric LM6000 turbines to produce power and will be
 equipped with state-of-the-art emissions reduction equipment.  The turbines
 are being financed using a leasing structure that eliminates the need for any
 cash outlays during the turbine manufacture process and diversifies the
 company's funding sources.
     "The Great Lakes region continues to see its energy needs grow as its
 diverse economy continues to expand," Hecht said.  "This project presents an
 opportunity to use our proven expertise in the energy generation business to
 develop an environmentally friendly, reliable and efficient generation project
 in University Park."
     PPL also will increase the capacity of its Susquehanna nuclear plant in
 Luzerne County, Pa., by 100 megawatts with the installation of more efficient
 steam turbines on each of the two units.  The new turbines, which will replace
 units that have been in operation since the early 1980s, will be installed in
 the spring of 2003 and 2004 during refueling outages at the plant.
     "While this is a comparatively small addition to our generating mix, it
 does provide us with more very low-cost electricity to sell in one of the
 nation's largest power markets," Hecht said.  "This is a very effective way to
 add generation at a well-run facility."
     Hecht said the new turbines also are expected to improve the long-term
 reliability of the 2,200-megawatt Susquehanna plant.  Siemens Westinghouse
 Power Corp. will design, manufacture and install the new turbines.  The
 purchase of the turbines was completed through Enporion Inc., a global supply
 chain and e-marketplace for the electric and gas industries.
     PPL Susquehanna is one of the company's most productive plants.  Last
 year, the plant generated more than 17.5 billion kilowatt-hours, producing
 more electricity than it has in any year in its operational history.
     In fact, record-setting performance at the company's generation
 facilities, optimized by PPL's wholesale trading and marketing activities,
 significantly contributed to the 75 percent increase in the company's earnings
 per share in just the last two years, Hecht said.
     PPL now operates nearly 10,000 megawatts of generation capacity in
 Pennsylvania, Maine and Montana.  With today's announcement, PPL has about
 4,600 megawatts under development, including:
     -- A 225-megawatt plant in Wallingford, Conn., expected to be in service
         by mid-2001.
     -- A 600-megawatt plant near Kingman, Ariz., expected to be in service by
         mid-2001 (PPL owns 50 percent of this facility).
     -- A 450-megawatt plant near Phoenix, Ariz., expected to be in service in
         summer 2002.
     -- A 600-megawatt plant in Lower Mount Bethel, Pa., expected to be in
         service in 2003.
     -- More than 900 megawatts of capacity at five small plant sites in
         eastern Pennsylvania, expected to be in service by 2003.
     -- About 300 megawatts of capacity located on Long Island near Smithtown,
         N.Y., expected to be in service in summer 2003.
     -- A 1,200-megawatt plant located near Starbuck, Wash., expected to come
         online in late 2004 or early 2005.
     Enporion, based in Tampa, Fla., uses technology-based procurement and
 online auction processes to simplify business-to-business purchasing
 transactions.  The e-commerce technology streamlines the purchasing function;
 introduces buyers and sellers; reduces paperwork, redundancy, cycle times and
 transaction costs; and increases efficiency and savings.  PPL is a founding
 member of Enporion.
     PPL Susquehanna, LLC owns 90 percent of the Susquehanna nuclear plant, and
 Allegheny Electric Cooperative Inc. owns the remaining 10 percent.  The plant
 is operated by PPL Susquehanna.
     PPL Corp., headquartered in Allentown, Pa., generates electricity at power
 plants in Pennsylvania, Maine and Montana; markets wholesale or retail energy
 in 42 U.S. states and Canada; and delivers energy to nearly 6 million
 customers in Pennsylvania, the United Kingdom and Latin America.
 
     Certain statements contained in this news release, including statements
 with respect to future earnings, energy supply and demand, costs, subsidiary
 performance, growth, new technology, project development, and generating
 capacity and performance, are "forward-looking statements" within the meaning
 of the federal securities laws.  Although PPL Corp. 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 variations
 affecting customer energy usage; competition in retail and wholesale power
 markets; the effect of any business or industry restructuring; the
 profitability and liquidity of PPL Corp. 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; system conditions and operating costs; development of new
 projects, markets and technologies; performance of new ventures; political,
 regulatory or economic conditions in countries where PPL Corp. or its
 subsidiaries conduct business; receipt of necessary governmental approvals;
 capital market conditions; stock price performance; foreign exchange rates;
 and the commitments and liabilities of PPL Corp. and its subsidiaries.  Any
 such forward-looking statements should be considered in light of such factors
 and in conjunction with PPL Corp.'s Form 10-K and other reports on file with
 the Securities and Exchange Commission.
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X87810647
 
 SOURCE  PPL Corporation