<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) July 30, 1999
PP&L Transition Bond Company LLC.
(Exact name of registrant as specified in its charter)
Delaware 333-75369 23-3004428
------------------------- --------- ----------
(State or Other Jurisdiction (Commission (I.R.S. Employer
of Incorporation) File No.) Identification No.)
Two North Ninth Street, GENA9-2, Room 3
Allentown, Pennsylvania 18101
----------------------- -----
(Address of Principal (Zip Code)
Executive Offices)
Registrant's telephone number, including area code (610) 774-7934
- --------------------------------------------------------------------------------
<PAGE>
Item 5. Other Events
------------
The Registrant registered issuances of Transition Bonds on a delayed
or continuous basis pursuant to Rule 415 under the Securities Act of 1933 by a
Registration Statement on Form S-3 (Registration File No. 333-75369). Pursuant
to a base prospectus, dated July 29, 1999, and a prospectus supplement, dated
July 29, 1999, the Registrant plans to issue approximately $2,420,000,000 in
aggregate principal amount of its Transition Bonds, Series 1999-1 on or about
August 10, 1999. This Current Report on Form 8-K discloses the use of
additional Computational Materials (as defined in the Kidder Peabody Acceptance
Corporation I, SEC No-Action Letter, available May 24, 1994) by the underwriters
in connection with the offering of the Transition Bonds. These Computational
Materials are filed as Exhibit 99.
<PAGE>
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended,
the Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
PP&L Transition Bond Company LLC
By: /s/ James E. Abel
---------------------------------------
Name: James E. Abel
Title: Manager
Dated: August 3, 1999
<PAGE>
EXHIBIT INDEX
EXHIBIT NO. DESCRIPTION
- ---------- -----------
99 Computational Materials as prepared by
the underwriter in connection with the
offering of the Transition Bonds
<PAGE>
EXHIBIT 99
COMPUTATIONAL MATERIALS
<PAGE>
Revised Computational Materials
[LOGO]
PP&L TRANSITION BONDS 1999-1
$2,420,000,000 Fixed Rate Class A Notes
NOTE: REDS ARE CURRENTLY AVAILABLE.
WEBSITE AVAILABLE AT: www.pplresources.com
BLOOMBERG ROADSHOW: MSRD ((go)), 2 ((go)), 1 ((go)), 2 ((go))
______________________________
Investor Conference Calls:
Standard & Poors, Thursday, July 22, 2:30 pm
Fitch IBCA, Friday, July 23, 11:00 am
<PAGE>
<TABLE>
<CAPTION>
Date A 1 A 2 A 3 A 4 A 5 A 6
<S> <C> <C> <C> <C> <C> <C>
8/10/99 293,000,000.00 178,000,000.00 303,000,000.00 201,000,000.00 313,000,000.00 223,000,000.00
12/25/99 263,315,284.00 178,000,000.00 303,000,000.00 201,000,000.00 313,000,000.00 223,000,000.00
3/25/00 201,074,523.00 178,000,000.00 303,000,000.00 201,000,000.00 313,000,000.00 223,000,000.00
6/25/00 140,987,613.00 178,000,000.00 303,000,000.00 201,000,000.00 313,000,000.00 223,000,000.00
9/25/00 88,690,386.00 178,000,000.00 303,000,000.00 201,000,000.00 313,000,000.00 223,000,000.00
12/25/00 36,616,412.00 178,000,000.00 303,000,000.00 201,000,000.00 313,000,000.00 223,000,000.00
3/25/01 - 148,795,346.00 303,000,000.00 201,000,000.00 313,000,000.00 223,000,000.00
6/25/01 85,478,334.00 303,000,000.00 201,000,000.00 313,000,000.00 223,000,000.00
9/25/01 29,831,440.00 303,000,000.00 201,000,000.00 313,000,000.00 223,000,000.00
12/25/01 - 277,308,357.00 201,000,000.00 313,000,000.00 223,000,000.00
3/25/02 209,424,797.00 201,000,000.00 313,000,000.00 223,000,000.00
6/25/02 145,286,566.00 201,000,000.00 313,000,000.00 223,000,000.00
9/25/02 88,534,909.00 201,000,000.00 313,000,000.00 223,000,000.00
12/25/02 31,832,576.00 201,000,000.00 313,000,000.00 223,000,000.00
3/25/03 - 163,274,080.00 313,000,000.00 223,000,000.00
6/25/03 96,517,432.00 313,000,000.00 223,000,000.00
9/25/03 36,944,118.00 313,000,000.00 223,000,000.00
12/25/03 - 290,339,977.00 223,000,000.00
3/25/04 218,538,788.00 223,000,000.00
6/25/04 149,923,675.00 223,000,000.00
9/25/04 88,234,499.00 223,000,000.00
12/25/04 26,437,199.00 223,000,000.00
3/25/05 - 176,722,080.00
6/25/05 107,969,661.00
9/25/05 45,728,103.00
12/25/05 -
3/25/06
6/25/06
9/25/06
12/25/06
3/25/07
6/25/07
9/25/07
12/25/07
3/25/08
6/25/08
9/25/08
12/25/08
<CAPTION>
Date A 7 A 8
<S> <C> <C>
8/10/99 455,000,000.00 454,000,000.00
12/25/99 455,000,000.00 454,000,000.00
3/25/00 455,000,000.00 454,000,000.00
6/25/00 455,000,000.00 454,000,000.00
9/25/00 455,000,000.00 454,000,000.00
12/25/00 455,000,000.00 454,000,000.00
3/25/01 455,000,000.00 454,000,000.00
6/25/01 455,000,000.00 454,000,000.00
9/25/01 455,000,000.00 454,000,000.00
12/25/01 455,000,000.00 454,000,000.00
3/25/02 455,000,000.00 454,000,000.00
6/25/02 455,000,000.00 454,000,000.00
9/25/02 455,000,000.00 454,000,000.00
12/25/02 455,000,000.00 454,000,000.00
3/25/03 455,000,000.00 454,000,000.00
6/25/03 455,000,000.00 454,000,000.00
9/25/03 455,000,000.00 454,000,000.00
12/25/03 455,000,000.00 454,000,000.00
3/25/04 455,000,000.00 454,000,000.00
6/25/04 455,000,000.00 454,000,000.00
9/25/04 455,000,000.00 454,000,000.00
12/25/04 455,000,000.00 454,000,000.00
3/25/05 455,000,000.00 454,000,000.00
6/25/05 455,000,000.00 454,000,000.00
9/25/05 455,000,000.00 454,000,000.00
12/25/05 438,304,028.00 454,000,000.00
3/25/06 362,494,702.00 454,000,000.00
6/25/06 287,665,428.00 454,000,000.00
9/25/06 219,322,507.00 454,000,000.00
12/25/06 150,687,290.00 454,000,000.00
3/25/07 70,515,210.00 454,000,000.00
6/25/07 - 447,302,056.00
9/25/07 376,326,600.00
12/25/07 304,969,223.00
3/25/08 223,215,871.00
6/25/08 145,058,241.00
9/25/08 72,753,715.00
12/25/08 -
</TABLE>
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of the
securities described herein, and is based on information provided by PP&L, Inc.
with respect to the expected characteristics of the intangible transition
property securing these securities. The actual characteristics and performance
of the intangible transition property will differ from the assumptions used in
preparing these materials, which are hypothetical in nature. Changes in the
assumptions may have a material impact on the information set forth in these
materials. No representation is made that any performance or return indicated
herein will be achieved. This information may not be used or otherwise
disseminated in connection with the offer or sale of the these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS
TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS
OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. The underwriters disclaim any and
all liability relating to this information, including without limitation, any
express or implied representations and warranties for, statements contained in,
and omissions from this information. Additional information is available upon
request. These materials do no constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the intangible transition property contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited,
a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd.
We recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER
- ------------------------------------------------------------------------------------------------------------------------------------
07/29/1999 18:28:41 CARVE Version 326.0 /u/janssen/carve/Utility/PPL/pricing/PPL_priced_No_Excellink.carve
PP&L PP&L Stranded Cost/Rate Reduction Bonds - ADDITIONAL COMPUTATIONAL MATERIAL Series 1999-1 Class A1
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A1 Cusip N/A Dated Date 08/10/1999
Delay 0 First Payment Date 12/25/1999 Factor 1.00000000
Payment Freq Quarterly Next Payment Date 12/25/1999 Current Balance 293,000,000.00
Yield Day Count 30/360 Settlement Date 08/10/1999 Coupon 6.08000
Yield Freq SemiAnnual Interest Freq Quarterly Market Desc AAA
Yield Table Date 07/29/1999
Original Balance 293,000,000.00 (size)
Lead Manager Morgan Stanley Dean Witter
Orig Deal Size 1.00
Num of Tranches 12
Deal Age 0
</TABLE>
Trigger _optionalCall NO
_histLookup NO
_trigger1 NO
- ----------------------------------------------------------------------
Price Yield Price Yield
98/16 7.7254 100/02 6.0511
98/18 7.6576 100/04 5.9851
98/20 7.5899 100/06 5.9191
98/22 7.5222 100/08 5.8532
98/24 7.4546 100/10 5.7873
98/26 7.3870 100/12 5.7215
98/28 7.3196 100/14 5.6558
98/30 7.2522 100/16 5.5901
99/00 7.1848 100/18 5.5246
99/02 7.1176 100/20 5.4591
99/04 7.0504 100/22 5.3936
99/06 6.9833 100/24 5.3282
99/08 6.9163 100/26 5.2629
99/10 6.8493 100/28 5.1977
99/12 6.7824 100/30 5.1325
99/14 6.7156 101/00 5.0674
99/16 6.6488 101/02 5.0024
99/18 6.5821 101/04 4.9374
99/20 6.5155 101/06 4.8725
99/22 6.4490 101/08 4.8076
99/24 6.3825 101/10 4.7429
99/26 6.3161 101/12 4.6782
99/28 6.2497 101/14 4.6135
99/30 6.1835 101/16 4.5490
100/00 6.1173
- ----------------------------------------------------------------------
Average Life 0.9985
First Prin 12/25/1999
Last Prin 03/25/2001
Payment Window 16
Accrual Factor 0.0000
Mod Duration @ 100/00 0.9446
Page 1 of 8
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of the
securities described herein, and is based on information provided by PP&L, Inc.
with respect to the expected characteristics of the intangible transition
property securing these securities. The actual characteristics and performance
of the intangible transition property will differ from the assumptions used in
preparing these materials, which are hypothetical in nature. Changes in the
assumptions may have a material impact on the information set forth in these
materials. No representation is made that any performance or return indicated
herein will be achieved. This information may not be used or otherwise
disseminated in connection with the offer or sale of the these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS
TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS
OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. The underwriters disclaim any and
all liability relating to this information, including without limitation, any
express or implied representations and warranties for, statements contained in,
and omissions from this information. Additional information is available upon
request. These materials do no constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the intangible transition property contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited,
a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd.
We recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER
- ------------------------------------------------------------------------------------------------------------------------------------
07/29/1999 18:28:41 CARVE Version 326.0 /u/janssen/carve/Utility/PPL/pricing/PPL_priced_No_Excellink.carve
PP&L PP&L Stranded Cost/Rate Reduction Bonds - ADDITIONAL COMPUTATIONAL MATERIAL Series 1999-1 Class A2
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A2 Cusip N/A Dated Date 08/10/1999
Delay 0 First Payment Date 12/25/1999 Factor 1.00000000
Payment Freq Quarterly Next Payment Date 12/25/1999 Current Balance 178,000,000.00
Yield Day Count 30/360 Settlement Date 08/10/1999 Coupon 6.41000
Yield Freq SemiAnnual Interest Freq Quarterly Market Desc AAA
Yield Table Date 07/29/1999
Original Balance 178,000,000.00
Lead Manager Morgan Stanley Dean Witter
Orig Deal Size 1.00
Num of Tranches 12
Deal Age 0
</TABLE>
Trigger _optionalCall NO
_histLookup NO
_trigger1 NO
- -----------------------------------------------------------------
Price Yield Price Yield
98/16 7.2839 100/02 6.4221
98/18 7.2491 100/04 6.3880
98/20 7.2143 100/06 6.3539
98/22 7.1796 100/08 6.3199
98/24 7.1448 100/10 6.2859
98/26 7.1101 100/12 6.2519
98/28 7.0755 100/14 6.2179
98/30 7.0408 100/16 6.1840
99/00 7.0062 100/18 6.1500
99/02 6.9716 100/20 6.1162
99/04 6.9371 100/22 6.0823
99/06 6.9025 100/24 6.0485
99/08 6.8680 100/26 6.0147
99/10 6.8336 100/28 5.9809
99/12 6.7991 100/30 5.9472
99/14 6.7647 101/00 5.9134
99/16 6.7303 101/02 5.8798
99/18 6.6960 101/04 5.8461
99/20 6.6616 101/06 5.8125
99/22 6.6273 101/08 5.7788
99/24 6.5930 101/10 5.7453
99/26 6.5588 101/12 5.7117
99/28 6.5246 101/14 5.6782
99/30 6.4904 101/16 5.6447
100/00 6.4562
- -----------------------------------------------------------------
Average Life 1.9959
First Prin 03/25/2001
Last Prin 12/25/2001
Payment Window 10
Accrual Factor 0.0000
Mod Duration @ 100/00 1.8303
Page 2 of 8
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of the
securities described herein, and is based on information provided by PP&L, Inc.
with respect to the expected characteristics of the intangible transition
property securing these securities. The actual characteristics and performance
of the intangible transition property will differ from the assumptions used in
preparing these materials, which are hypothetical in nature. Changes in the
assumptions may have a material impact on the information set forth in these
materials. No representation is made that any performance or return indicated
herein will be achieved. This information may not be used or otherwise
disseminated in connection with the offer or sale of the these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS
TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS
OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. The underwriters disclaim any and
all liability relating to this information, including without limitation, any
express or implied representations and warranties for, statements contained in,
and omissions from this information. Additional information is available upon
request. These materials do no constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the intangible transition property contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited,
a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd.
We recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER
- ------------------------------------------------------------------------------------------------------------------------------------
07/29/1999 18:28:41 CARVE Version 326.0 /u/janssen/carve/Utility/PPL/pricing/PPL_priced_No_Excellink.carve
PP&L PP&L Stranded Cost/Rate Reduction Bonds - ADDITIONAL COMPUTATIONAL MATERIAL Series 1999-1 Class A3
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A3 Cusip N/A Dated Date 08/10/1999
Delay 0 First Payment Date 12/25/1999 Factor 1.00000000
Payment Freq Quarterly Next Payment Date 12/25/1999 Current Balance 303,000,000.00
Yield Day Count 30/360 Settlement Date 08/10/1999 Coupon 6.60000
Yield Freq SemiAnnual Interest Freq Quarterly Market Desc AAA
Yield Table Date 07/29/1999
Original Balance 303,000,000.00
Lead Manager Morgan Stanley Dean Witter
Orig Deal Size 1.00
Num of Tranches 12
Deal Age 0
</TABLE>
Trigger _optionalCall NO
_histLookup NO
_trigger1 NO
- -----------------------------------------------------------------
Price Yield Price Yield
98/16 7.2216 100/02 6.6272
98/18 7.1976 100/04 6.6036
98/20 7.1736 100/06 6.5801
98/22 7.1496 100/08 6.5566
98/24 7.1257 100/10 6.5331
98/26 7.1018 100/12 6.5097
98/28 7.0779 100/14 6.4862
98/30 7.0540 100/16 6.4628
99/00 7.0301 100/18 6.4394
99/02 7.0062 100/20 6.4160
99/04 6.9824 100/22 6.3926
99/06 6.9586 100/24 6.3693
99/08 6.9348 100/26 6.3459
99/10 6.9110 100/28 6.3226
99/12 6.8873 100/30 6.2993
99/14 6.8635 101/00 6.2760
99/16 6.8398 101/02 6.2528
99/18 6.8161 101/04 6.2295
99/20 6.7924 101/06 6.2063
99/22 6.7687 101/08 6.1831
99/24 6.7451 101/10 6.1599
99/26 6.7215 101/12 6.1367
99/28 6.6979 101/14 6.1136
99/30 6.6743 101/16 6.0905
100/00 6.6507
- -----------------------------------------------------------------
Average Life 2.9958
First Prin 12/25/2001
Last Prin 03/25/2003
Payment Window 16
Accrual Factor 0.0000
Mod Duration @ 100/00 2.6525
Page 3 of 8
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of the
securities described herein, and is based on information provided by PP&L, Inc.
with respect to the expected characteristics of the intangible transition
property securing these securities. The actual characteristics and performance
of the intangible transition property will differ from the assumptions used in
preparing these materials, which are hypothetical in nature. Changes in the
assumptions may have a material impact on the information set forth in these
materials. No representation is made that any performance or return indicated
herein will be achieved. This information may not be used or otherwise
disseminated in connection with the offer or sale of the these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS
TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS
OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. The underwriters disclaim any and
all liability relating to this information, including without limitation, any
express or implied representations and warranties for, statements contained in,
and omissions from this information. Additional information is available upon
request. These materials do no constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the intangible transition property contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited,
a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd.
We recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER
- ------------------------------------------------------------------------------------------------------------------------------------
07/29/1999 18:28:41 CARVE Version 326.0 /u/janssen/carve/Utility/PPL/pricing/PPL_priced_No_Excellink.carve
PP&L PP&L Stranded Cost/Rate Reduction Bonds - ADDITIONAL COMPUTATIONAL MATERIAL Series 1999-1 Class A4
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A4 Cusip N/A Dated Date 08/10/1999
Delay 0 First Payment Date 12/25/1999 Factor 1.00000000
Payment Freq Quarterly Next Payment Date 12/25/1999 Current Balance 201,000,000.00
Yield Day Count 30/360 Settlement Date 08/10/1999 Coupon 6.72000
Yield Freq SemiAnnual Interest Freq Quarterly Market Desc AAA
Yield Table Date 07/29/1999
Original Balance 201,000,000.00
Lead Manager Morgan Stanley Dean Witter
Orig Deal Size 1.00
Num of Tranches 12
Deal Age 0
</TABLE>
Trigger _optionalCall NO
_histLookup NO
_trigger1 NO
- -----------------------------------------------------------------
Price Yield Price Yield
98/16 7.2160 100/02 6.7552
98/18 7.1974 100/04 6.7369
98/20 7.1788 100/06 6.7187
98/22 7.1603 100/08 6.7005
98/24 7.1417 100/10 6.6823
98/26 7.1232 100/12 6.6641
98/28 7.1046 100/14 6.6459
98/30 7.0861 100/16 6.6277
99/00 7.0676 100/18 6.6096
99/02 7.0491 100/20 6.5914
99/04 7.0306 100/22 6.5733
99/06 7.0122 100/24 6.5552
99/08 6.9937 100/26 6.5371
99/10 6.9753 100/28 6.5190
99/12 6.9569 100/30 6.5009
99/14 6.9385 101/00 6.4829
99/16 6.9201 101/02 6.4648
99/18 6.9017 101/04 6.4468
99/20 6.8833 101/06 6.4288
99/22 6.8650 101/08 6.4108
99/24 6.8466 101/10 6.3928
99/26 6.8283 101/12 6.3748
99/28 6.8100 101/14 6.3568
99/30 6.7917 101/16 6.3389
100/00 6.7734
- -----------------------------------------------------------------
Average Life 3.9941
First Prin 03/25/2003
Last Prin 12/25/2003
Payment Window 10
Accrual Factor 0.0000
Mod Duration @ 100/00 3.4205
Page 4 of 8
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of the
securities described herein, and is based on information provided by PP&L, Inc.
with respect to the expected characteristics of the intangible transition
property securing these securities. The actual characteristics and performance
of the intangible transition property will differ from the assumptions used in
preparing these materials, which are hypothetical in nature. Changes in the
assumptions may have a material impact on the information set forth in these
materials. No representation is made that any performance or return indicated
herein will be achieved. This information may not be used or otherwise
disseminated in connection with the offer or sale of the these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS
TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS
OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. The underwriters disclaim any and
all liability relating to this information, including without limitation, any
express or implied representations and warranties for, statements contained in,
and omissions from this information. Additional information is available upon
request. These materials do no constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the intangible transition property contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited,
a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd.
We recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER
- ------------------------------------------------------------------------------------------------------------------------------------
07/29/1999 18:28:41 CARVE Version 326.0 /u/janssen/carve/Utility/PPL/pricing/PPL_priced_No_Excellink.carve
PP&L PP&L Stranded Cost/Rate Reduction Bonds - ADDITIONAL COMPUTATIONAL MATERIAL Series 1999-1 Class A5
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A5 Cusip N/A Dated Date 08/10/1999
Delay 0 First Payment Date 12/25/1999 Factor 1.00000000
Payment Freq Quarterly Next Payment Date 12/25/1999 Current Balance 313,000,000.00
Yield Day Count 30/360 Settlement Date 08/10/1999 Coupon 6.83000
Yield Freq SemiAnnual Interest Freq Quarterly Market Desc AAA
Yield Table Date 07/29/1999
Original Balance 313,000,000.00
Lead Manager Morgan Stanley Dean Witter
Orig Deal Size 1.00
Num of Tranches 12
Deal Age 0
</TABLE>
Trigger _optionalCall NO
_histLookup NO
_trigger1 NO
- -----------------------------------------------------------------
Price Yield Price Yield
98/16 7.2524 100/02 6.8706
98/18 7.2370 100/04 6.8555
98/20 7.2216 100/06 6.8404
98/22 7.2062 100/08 6.8253
98/24 7.1908 100/10 6.8102
98/26 7.1754 100/12 6.7951
98/28 7.1601 100/14 6.7801
98/30 7.1447 100/16 6.7650
99/00 7.1294 100/18 6.7500
99/02 7.1141 100/20 6.7349
99/04 7.0988 100/22 6.7199
99/06 7.0835 100/24 6.7049
99/08 7.0682 100/26 6.6899
99/10 7.0529 100/28 6.6750
99/12 7.0377 100/30 6.6600
99/14 7.0224 101/00 6.6450
99/16 7.0072 101/02 6.6301
99/18 6.9920 101/04 6.6151
99/20 6.9768 101/06 6.6002
99/22 6.9616 101/08 6.5853
99/24 6.9464 101/10 6.5704
99/26 6.9312 101/12 6.5555
99/28 6.9160 101/14 6.5406
99/30 6.9009 101/16 6.5258
100/00 6.8857
- -----------------------------------------------------------------
Average Life 4.9928
First Prin 12/25/2003
Last Prin 03/25/2005
Payment Window 16
Accrual Factor 0.0000
Mod Duration @ 100/00 4.1290
Page 5 of 8
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of the
securities described herein, and is based on information provided by PP&L, Inc.
with respect to the expected characteristics of the intangible transition
property securing these securities. The actual characteristics and performance
of the intangible transition property will differ from the assumptions used in
preparing these materials, which are hypothetical in nature. Changes in the
assumptions may have a material impact on the information set forth in these
materials. No representation is made that any performance or return indicated
herein will be achieved. This information may not be used or otherwise
disseminated in connection with the offer or sale of the these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS
TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS
OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. The underwriters disclaim any and
all liability relating to this information, including without limitation, any
express or implied representations and warranties for, statements contained in,
and omissions from this information. Additional information is available upon
request. These materials do no constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the intangible transition property contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited,
a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd.
We recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER
- ------------------------------------------------------------------------------------------------------------------------------------
07/29/1999 18:28:41 CARVE Version 326.0 /u/janssen/carve/Utility/PPL/pricing/PPL_priced_No_Excellink.carve
PP&L PP&L Stranded Cost/Rate Reduction Bonds - ADDITIONAL COMPUTATIONAL MATERIAL Series 1999-1 Class A6
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A6 Cusip N/A Dated Date 08/10/1999
Delay 0 First Payment Date 12/25/1999 Factor 1.00000000
Payment Freq Quarterly Next Payment Date 12/25/1999 Current Balance 223,000,000.00
Yield Day Count 30/360 Settlement Date 08/10/1999 Coupon 6.96000
Yield Freq SemiAnnual Interest Freq Quarterly Market Desc AAA
Yield Table Date 07/29/1999
Original Balance 223,000,000.00
Lead Manager Morgan Stanley Dean Witter
Orig Deal Size 1.00
Num of Tranches 12
Deal Age 0
</TABLE>
Trigger _optionalCall NO
_histLookup NO
_trigger1 NO
- -----------------------------------------------------------------
Price Yield Price Yield
98/16 7.3346 100/02 7.0052
98/18 7.3213 100/04 6.9921
98/20 7.3080 100/06 6.9791
98/22 7.2948 100/08 6.9661
98/24 7.2815 100/10 6.9531
98/26 7.2682 100/12 6.9401
98/28 7.2550 100/14 6.9271
98/30 7.2417 100/16 6.9141
99/00 7.2285 100/18 6.9011
99/02 7.2153 100/20 6.8881
99/04 7.2021 100/22 6.8752
99/06 7.1889 100/24 6.8622
99/08 7.1757 100/26 6.8493
99/10 7.1625 100/28 6.8364
99/12 7.1494 100/30 6.8234
99/14 7.1362 101/00 6.8105
99/16 7.1231 101/02 6.7976
99/18 7.1099 101/04 6.7848
99/20 7.0968 101/06 6.7719
99/22 7.0837 101/08 6.7590
99/24 7.0706 101/10 6.7462
99/26 7.0575 101/12 6.7333
99/28 7.0444 101/14 6.7205
99/30 7.0313 101/16 6.7076
100/00 7.0182
- -----------------------------------------------------------------
Average Life 5.9954
First Prin 03/25/2005
Last Prin 12/25/2005
Payment Window 10
Accrual Factor 0.0000
Mod Duration @ 100/00 4.7852
Page 6 of 8
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of the
securities described herein, and is based on information provided by PP&L, Inc.
with respect to the expected characteristics of the intangible transition
property securing these securities. The actual characteristics and performance
of the intangible transition property will differ from the assumptions used in
preparing these materials, which are hypothetical in nature. Changes in the
assumptions may have a material impact on the information set forth in these
materials. No representation is made that any performance or return indicated
herein will be achieved. This information may not be used or otherwise
disseminated in connection with the offer or sale of the these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS
TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS
OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. The underwriters disclaim any and
all liability relating to this information, including without limitation, any
express or implied representations and warranties for, statements contained in,
and omissions from this information. Additional information is available upon
request. These materials do no constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the intangible transition property contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited,
a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd.
We recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER
- ------------------------------------------------------------------------------------------------------------------------------------
07/29/1999 18:28:41 CARVE Version 326.0 /u/janssen/carve/Utility/PPL/pricing/PPL_priced_No_Excellink.carve
PP&L PP&L Stranded Cost/Rate Reduction Bonds - ADDITIONAL COMPUTATIONAL MATERIAL Series 1999-1 Class A7
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A7 Cusip N/A Dated Date 08/10/1999
Delay 0 First Payment Date 12/25/1999 Factor 1.00000000
Payment Freq Quarterly Next Payment Date 12/25/1999 Current Balance 455,000,000.00
Yield Day Count 30/360 Settlement Date 08/10/1999 Coupon 7.05000
Yield Freq SemiAnnual Interest Freq Quarterly Market Desc AAA
Yield Table Date 07/29/1999
Original Balance 455,000,000.00
Lead Manager Morgan Stanley Dean Witter
Orig Deal Size 1.00
Num of Tranches 12
Deal Age 0
</TABLE>
Trigger _optionalCall NO
_histLookup NO
_trigger1 NO
- -----------------------------------------------------------------
Price Yield Price Yield
98/16 7.3845 100/02 7.0988
98/18 7.3729 100/04 7.0874
98/20 7.3614 100/06 7.0761
98/22 7.3499 100/08 7.0648
98/24 7.3384 100/10 7.0536
98/26 7.3269 100/12 7.0423
98/28 7.3154 100/14 7.0310
98/30 7.3039 100/16 7.0198
99/00 7.2924 100/18 7.0085
99/02 7.2810 100/20 6.9973
99/04 7.2695 100/22 6.9860
99/06 7.2581 100/24 6.9748
99/08 7.2466 100/26 6.9636
99/10 7.2352 100/28 6.9524
99/12 7.2238 100/30 6.9412
99/14 7.2124 101/00 6.9300
99/16 7.2010 101/02 6.9188
99/18 7.1896 101/04 6.9076
99/20 7.1782 101/06 6.8965
99/22 7.1668 101/08 6.8853
99/24 7.1555 101/10 6.8742
99/26 7.1441 101/12 6.8630
99/28 7.1327 101/14 6.8519
99/30 7.1214 101/16 6.8408
100/00 7.1101
- -----------------------------------------------------------------
Average Life 7.2151
First Prin 12/25/2005
Last Prin 06/25/2007
Payment Window 19
Accrual Factor 0.0000
Mod Duration @ 100/00 5.5183
Page 7 of 8
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of the
securities described herein, and is based on information provided by PP&L, Inc.
with respect to the expected characteristics of the intangible transition
property securing these securities. The actual characteristics and performance
of the intangible transition property will differ from the assumptions used in
preparing these materials, which are hypothetical in nature. Changes in the
assumptions may have a material impact on the information set forth in these
materials. No representation is made that any performance or return indicated
herein will be achieved. This information may not be used or otherwise
disseminated in connection with the offer or sale of the these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS
TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS
OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. The underwriters disclaim any and
all liability relating to this information, including without limitation, any
express or implied representations and warranties for, statements contained in,
and omissions from this information. Additional information is available upon
request. These materials do no constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the intangible transition property contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited,
a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd.
We recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
MORGAN STANLEY DEAN WITTER
- ------------------------------------------------------------------------------------------------------------------------------------
07/29/1999 18:28:41 CARVE Version 326.0 /u/janssen/carve/Utility/PPL/pricing/PPL_priced_No_Excellink.carve
PP&L PP&L Stranded Cost/Rate Reduction Bonds - ADDITIONAL COMPUTATIONAL MATERIAL Series 1999-1 Class A8
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Class A8 Cusip N/A Dated Date 08/10/1999
Delay 0 First Payment Date 12/25/1999 Factor 1.00000000
Payment Freq Quarterly Next Payment Date 12/25/1999 Current Balance 454,000,000.00
Yield Day Count 30/360 Settlement Date 08/10/1999 Coupon 7.15000
Yield Freq SemiAnnual Interest Freq Quarterly Market Desc AAA
Yield Table Date 07/29/1999
Original Balance 454,000,000.00
Lead Manager Morgan Stanley Dean Witter
Orig Deal Size 1.00
Num of Tranches 12
Deal Age 0
</TABLE>
Trigger _optionalCall NO
_histLookup NO
_trigger1 NO
- -----------------------------------------------------------------
Price Yield Price Yield
98/16 7.4508 100/02 7.2022
98/18 7.4408 100/04 7.1924
98/20 7.4308 100/06 7.1825
98/22 7.4207 100/08 7.1727
98/24 7.4107 100/10 7.1629
98/26 7.4007 100/12 7.1531
98/28 7.3907 100/14 7.1433
98/30 7.3807 100/16 7.1335
99/00 7.3707 100/18 7.1237
99/02 7.3608 100/20 7.1139
99/04 7.3508 100/22 7.1042
99/06 7.3408 100/24 7.0944
99/08 7.3309 100/26 7.0846
99/10 7.3209 100/28 7.0749
99/12 7.3110 100/30 7.0651
99/14 7.3011 101/00 7.0554
99/16 7.2911 101/02 7.0457
99/18 7.2812 101/04 7.0360
99/20 7.2713 101/06 7.0263
99/22 7.2614 101/08 7.0166
99/24 7.2515 101/10 7.0069
99/26 7.2417 101/12 6.9972
99/28 7.2318 101/14 6.9875
99/30 7.2219 101/16 6.9778
100/00 7.2121
- -----------------------------------------------------------------
Average Life 8.7393
First Prin 06/25/2007
Last Prin 12/25/2008
Payment Window 19
Accrual Factor 0.0000
Mod Duration @ 100/00 6.3430
Page 8 of 8
- --------------------------------------------------------------------------------
This information has been prepared in connection with the issuance of the
securities described herein, and is based on information provided by PP&L, Inc.
with respect to the expected characteristics of the intangible transition
property securing these securities. The actual characteristics and performance
of the intangible transition property will differ from the assumptions used in
preparing these materials, which are hypothetical in nature. Changes in the
assumptions may have a material impact on the information set forth in these
materials. No representation is made that any performance or return indicated
herein will be achieved. This information may not be used or otherwise
disseminated in connection with the offer or sale of the these or any other
securities, except in connection with the initial offer or sale of these
securities to you to the extent set forth below. NO REPRESENTATION IS MADE AS
TO THE APPROPRIATENESS, USEFULNESS, ACCURACY OR COMPLETENESS OF THESE MATERIALS
OR THE ASSUMPTIONS ON WHICH THEY ARE BASED. The underwriters disclaim any and
all liability relating to this information, including without limitation, any
express or implied representations and warranties for, statements contained in,
and omissions from this information. Additional information is available upon
request. These materials do no constitute an offer to buy or sell or a
solicitation of an offer to buy or sell any security or instrument or to
participate in any particular trading strategy. ANY SUCH OFFER TO BUY OR SELL
ANY SECURITY WOULD BE MADE PURSUANT TO A DEFINITIVE PROSPECTUS AND PROSPECTUS
SUPPLEMENT PREPARED BY THE ISSUER WHICH WOULD CONTAIN MATERIAL INFORMATION NOT
CONTAINED IN THESE MATERIALS. SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT WILL
CONTAIN ALL MATERIAL INFORMATION IN RESPECT OF ANY SUCH SECURITY OFFERED THEREBY
AND ANY DECISION TO INVEST IN SUCH SECURITIES SHOULD BE MADE SOLELY RELIANCE
UPON SUCH PROSPECTUS AND PROSPECTUS SUPPLEMENT. ANY CAPITALIZED TERMS USED BUT
NOT DEFINED HEREIN ARE TO BE READ IN CONJUNCTION WITH SUCH PROSPECTUS AND
PROSPECTUS SUPPLEMENT. In the event of any such offering, these materials,
including any description of the intangible transition property contained
herein, shall be deemed superseded, amended and supplemented in their entirety
by such Prospectus and Prospectus Supplement. To Our Readers Worldwide: In
addition, please note that this information has been provided by Morgan Stanley
& Co. Incorporated and approved by Morgan Stanley & Co. International Limited,
a member of the Securities and Futures Authority, and Morgan Stanley Japan Ltd.
We recommend that investors obtain the advice of their Morgan Stanley & Co.
International Limited or Morgan Stanley Japan Ltd. representative about the
investment concerned. NOT FOR DISTRIBUTION TO PRIVATE CUSTOMERS AS DEFINED BY
THE U.K. SECURITIES AND FUTURES AUTHORITY.
- --------------------------------------------------------------------------------
