PPL Holtwood Celebrates Past, Present and Future of Hydroelectric Power

Plant honors 100 years of generating clean electricity and breaks ground on expansion project that will increase renewable energy and create construction jobs

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PPL Corporation

May 03, 2010, 12:16 ET

HOLTWOOD, Pa., May 3 /PRNewswire-FirstCall/ -- While honoring 100 years of generating clean, renewable electricity at the Holtwood hydroelectric plant in Lancaster County, PPL Generation focused on the plant's future Monday (5/3) by breaking ground on a $434 million expansion project that will more than double its production of renewable energy.

PPL Corporation Chairman, President and Chief Executive Officer James H. Miller officially kicked off the project, joined by Pennsylvania Gov. Edward G. Rendell; U.S. Rep. Joseph R. Pitts; federal, state and local government officials; and representatives of major contractors working on the project.

"The Holtwood hydroelectric plant has been generating clean, renewable electricity from the power of the Susquehanna River for 100 years," Miller said. "Today, as we honor the past, we also celebrate the beginning of a major investment by PPL that will provide a reliable source of clean energy for generations to come."

PPL's investment at Holtwood provides a significant economic stimulus for the region. The project will create 200 "green energy" construction jobs over the next three years, plus additional jobs at the nearby Voith Hydro facility in York, Pa., which is manufacturing the turbine-generators for the new portion of the Holtwood plant.

"Pennsylvania is already a national leader in clean energy and in creating green jobs. Now, the expansion of PPL's Holtwood plant allows us to take another significant step forward," Rendell said. "With the involvement of our Department of Environmental Protection and other administrative agencies, PPL is increasing its capacity to produce energy at a clean and efficient hydroelectric facility. The expansion carries the added benefit of improving the passages that allow fish to follow their natural path upstream."

PPL had withdrawn plans to increase generation at Holtwood in December 2008 in light of economic conditions, but revisited -- and ultimately restarted -- the project in 2009 because of investment tax credit provisions in the federal economic stimulus program and strong support from state government agencies.

"This project is a prime example of what can be accomplished when government and the private sector work together toward a common objective," Miller said.

The Federal Energy Regulatory Commission approved PPL's request in November 2009 to add 125 megawatts of generating capacity that will provide enough renewable, environmentally friendly electricity to power 100,000 typical homes. In addition, FERC extended the operating license for the Holtwood hydroelectric plant by 16 years to August 2030.

Preliminary construction work began in January. A new hydroelectric powerhouse will be built on the site of a coal-fired power plant that was permanently shut down in 1999. The project is expected to be completed in the spring of 2013.

The existing hydroelectric plant, with a generating capacity of 108 megawatts, will continue to produce clean energy, as it has since going into service in October 1910.

The expansion project also includes improvements to fish passage at the Holtwood Dam, which will create environmental benefits by enabling more migratory fish to reach upstream spawning areas along the Susquehanna and its tributaries, and enhancements that will improve recreational opportunities for boaters upstream and downstream from the Holtwood Dam.

The Holtwood plant has been generating electricity since 1910, using the power of the water held back by a 55-foot-high dam across the Susquehanna River between Lancaster and York counties in south central Pennsylvania. The dam created Lake Aldred, an 8-mile reservoir that provides opportunities for boating, fishing and other public recreation. Access to Lake Aldred will not be affected by the construction at the Holtwood plant. For more information, visit www.pplholtwood.com.

PPL Corporation (NYSE: PPL), headquartered in Allentown, Pa., controls or owns 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.

SOURCE PPL Corporation