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PROSPECTUS SUPPLEMENT #2 Filed Pursuant to Rule 424(b)(3)
(To Prospectus dated July 29, 1999 and Registration No. 333-75369
Prospectus Supplement dated July 29, 1999)
PP&L Transition Bond Company LLC,
$2,420,000,000 Transition Bonds, Series 1999-1
You should read this prospectus supplement in conjunction with the
prospectus supplement dated July 29, 1999 and the prospectus dated July 29,
1999. All capitalized terms used but not defined in this prospectus supplement
shall have the meanings given to them in the prospectus and prospectus
supplement dated July 29, 1999.
The information in the prospectus supplement dated July 29, 1999 in the
paragraph entitled "Description of Intangible Transition Property-PP&L's
Intangible Transition Charges-The Average Intangible Transition Charge for
Customers" on page S-19, as well as in Table 4 which immediately follows that
paragraph, is replaced in its entirety by the paragraph and table appearing
below:
The Average Intangible Transition Charge for Customers. Initially,
the Intangible Transition Charges, including gross recipts tax, billed will
be approximately $10.55 per month for an average Customer in the
Residential Customer Class; approximately $71.84 per month for an average
Customer in the Small Commercial and Industrial Customer Class; and
approximately $8,119.96 per month for an average Customer in the Large
Commercial and Industrial Customer Class. Intangible Transition Charges
will be collected from Customers in accordance with the design of existing
Rate Schedules which consist of "block structure" demand per kilowatt and,
in the case of most of the Rate Schedules, per kilowatt hour components.
The Average ITC Rate tabulated below generally reflects the Rate Schedule
ITC Collections divided by Rate Schedule usage in kWh. The average monthly
bill, including gross receipts tax, for each PP&L Customer Class during
1998 was $70.69, $422.22 and $48,176.10 respectively. The following
projected average Intangible Transition Charges will be imposed on
Customers in each Customer Class, and the Rate Schedules within each
Customer Class, beginning on the Series Issuance Date for the Series 1999-1
Bonds. The rates in Table 4 below do not include gross receipts tax.
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TABLE 4
Projected Average Intangible Transition Charges Through December 31, 1999
Residential
Rate Schedule Average ITC Rate
- ------------- in cents per kWh
----------------
Rate Schedule RS..................................... 1.1182
Rate Schedule RTS.................................... 0.7022
Rate Schedule RTD.................................... 1.1177
Small Commercial and Industrial
Rate Schedule Average ITC Rate
- ------------- in cents per kWh
----------------
Rate Schedule GS-1................................... 1.5091
Rate Schedule GS-3................................... 1.1505
Rate Schedule GH-1(R)................................ 1.6082
Rate Schedule GH-2(R)................................ 1.6083
Rate Schedule IS-1................................... 1.1501
Rate Schedule SA..................................... 1.0618
Rate Schedule SM..................................... 1.0724
Rate Schedule SHS.................................... 1.0725
Rate Schedule SE..................................... 0.5659
Rate Schedule SI-1(R)................................ 1.0719
Rate Schedule TS..................................... 0.9850
Rate Schedule BL..................................... 1.5097
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Large Commercial and Industrial
Rate Schedule Average ITC Rate
- ------------- in cents per kWh
----------------
Rate Schedule LP-4........................................ 1.0332
Rate Schedule IS-P........................................ 0.6617
Rate Schedule LP-5........................................ 0.9701
Rate Schedule LP-6........................................ 0.9698
Rate Schedule IS-T........................................ 0.5889
Rate Schedule LPEP........................................ 2.3400
Rate Schedule ISM ........................................ 0.4431
Rate Schedule Standby..................................... 2.1388
Consider carefully the risk factors beginning on page 12 of the prospectus dated
July 29, 1999.
The series 1999-1 bonds represent obligations of PP&L Transition Bond Company
LLC, which is the issuer, and are backed only by the assets of PP&L Transition
Bond Company LLC. Neither PP&L, Inc., PP&L Resources, Inc., nor any of their
other affiliates are liable for payments on the bonds.
Neither the Securities and Exchange Commission nor any state securities
commission has approved or disapproved these securities or passed on the
adequacy or accuracy of this prospectus supplement or of the prospectus and
prospectus supplement dated July 29, 1999. Any representation to the contrary is
a criminal offense.
The date of this prospectus supplement is August 4, 1999.
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