Company's Business Model Met Difficult 2009 Challenges; Planned Acquisition and Adjusted Business Mix Bode Well for Future, PPL Chairman Tells Shareowners

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May 19, 2010, 12:27 ET

ALLENTOWN, Pa., May 19 /PRNewswire-FirstCall/ -- Although the near-term business environment remains challenging, PPL Corporation (NYSE: PPL) has performed well over the past year and is poised to continue to grow value for shareowners as the economy improves, PPL's chairman said at the company's annual meeting Wednesday (5/19).

"Despite all the challenges – both in the larger economy and for PPL in particular – 2009 again provided proof that we can deliver even in the most challenging circumstances," said James H. Miller, PPL's chairman, president and chief executive officer.

PPL exceeded its earnings forecasts for 2009 and also increased the common stock dividend early in 2010 – to an annualized level of $1.40 per share.

Miller briefed shareowners about what he termed "the compelling strategic acquisition," announced late last month, of E.ON U.S.'s regulated electric utility businesses of Louisville Gas & Electric Company and Kentucky Utilities Company.

He said the acquisition will increase the proportion of PPL's earnings derived from regulated operations and thereby rebalance PPL's business mix to counter the cyclical pressures on competitive energy businesses linked with fluctuating commodity energy prices. At the same time, however, Miller said PPL will benefit from the growth potential of its competitive energy generation and marketing businesses when wholesale power prices recover.

Miller acknowledged the service of W. Keith Smith, a PPL director since 2000, who retired from the board effective with Wednesday's meeting. Smith, former vice chairman of Mellon Financial Corporation, chaired the board's Finance Committee and was a member of the Audit Committee.

During the meeting, shareowners re-elected three directors to three-year terms: Stuart E. Graham, former president and chief executive officer of Skanska AB; Stuart Heydt, former chief executive officer of Geisinger Health System; and Craig A. Rogerson, chairman, president and chief executive officer of Chemtura Corporation.

Continuing to serve on the board are: Frederick M. Bernthal, president, Universities Research Association; John W. Conway, chairman, president and chief executive officer of Crown Holdings, Inc.; E. Allen Deaver, former executive vice president and director of Armstrong World Industries, Inc.; Louise K. Goeser, president and chief executive officer, Grupo Siemens S.A. de C.V.; Natica von Althann, former senior credit risk management executive of Bank of America and former chief credit officer of U.S. Trust; Keith H. Williamson, senior vice president, secretary and general counsel of Centene Corporation; and PPL Chairman Miller.

During the meeting, shareowners approved a company proposal to change PPL's bylaws to eliminate PPL's classified board structure and elect each director on an annual basis, effective with the 2011 annual meeting of shareowners.

Shareowners also voted on two shareowner proposals during the meeting: one proposal requesting that the board amend its governing documents to allow shareowners holding 10 percent of outstanding PPL common stock to call a special shareowner meeting; and another proposal requesting the board to amend PPL's governance documents to eliminate plurality voting for directors and provide for directors to be elected by a majority of votes cast at an annual meeting of shareowners.

Shareowners approved the shareowner proposal relating to calling a special shareowner meeting. Although the vote is nonbinding, PPL's board is expected to review the issue again before next year's annual meeting. Shareowners rejected the shareowner proposal relating to majority voting for directors.

During the meeting, shareowners also ratified the appointment of Ernst & Young LLP as the company's independent auditing firm for the year ending Dec. 31, 2010.

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.

SOURCE PPL Corporation