SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 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): May 24, 1999
PP&L RESOURCES, INC.
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(Exact Name of Registrant as Specified in Its Charter)
Pennsylvania 1-11459 23-2758192
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
PP&L, INC.
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(Exact Name of Registrant as Specified in Its Charter)
Pennsylvania 1-905 23-0959590
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(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
Two North Ninth Street, Allentown, Pennsylvania 18101-1179
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(Address of principal executive offices)
Registrant's Telephone Number, including Area Code: (610) 774-5151
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(Former name or former address, if changed since last report.)
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ITEM 5. Other Events
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The following text is from a Company news release of May 24,
1999:
PP&L, INC. SIGNS DEFINITIVE AGREEMENT TO SELL SUNBURY PLANT,
LADY JANE COLLIERIES ASSETS
PP&L, Inc., a subsidiary of PP&L Resources, Inc. (NYSE:
PPL), announced Monday (5/24) that it has signed a
definitive agreement to sell its Sunbury plant and the
principal assets of its wholly owned coal-processing
subsidiary, Lady Jane Collieries, to Sunbury Holdings, LLC.
WPS Power Development, Inc. owns 100 percent of Sunbury
Holdings, LLC.
Under terms of a three-year agreement, the new
owner will sell some of the power generated by the Sunbury
plant to PP&L, Inc., with the balance sold on the wholesale
or retail open market. PP&L, Inc. expects to receive total
cash proceeds of about $106 million for the assets,
including coal inventory, which would translate into a one-
time contribution of about 25 cents per share to PP&L
Resources' 1999 earnings. The closing, which is subject to
certain regulatory approvals and other closing conditions,
is expected to occur during the third quarter of 1999.
WPS Power Development, a subsidiary of WPS
Resources Corp. of Green Bay, Wis., develops and owns
nonregulated energy generation facilities and provides
services to the electric power generation industry in
Wisconsin, Alabama, Arkansas and Oregon and is in the
process of acquiring additional generation assets in Maine
and in New Brunswick, Canada
"We are pleased to announce this agreement with
WPS Power Development," said Bob Byram, senior vice
president-Generation and chief nuclear officer. "The sale
of Sunbury marks the successful completion of a strategy for
our generation portfolio that we embarked on a number of
months ago.
"Our employees at Sunbury have done an outstanding
job operating this plant and deserve the highest praise for
their skill, hard work and dedication," Byram said. "We
look forward to working closely with WPS Power Development
in ensuring a smooth transition."
Jerry Mroczkowski, WPS Power Development vice-
president, said, "We're pleased to become a part of the
Pennsylvania-New Jersey-Maryland energy market. It's on the
leading edge of competitive generation and marketing. We
look forward to the transition and to continuing the
reliable and effective operation of the facilities provided
by PP&L employees."
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Under the terms of the agreement, WPS Power
Development will operate the facilities, and employees at
the Sunbury plant will have the choice to accept employment
offers from the new owner or to stay with PP&L, Inc. IBEW
Local 1600, which currently represents bargaining unit
employees at that plant, will continue in that role with the
new owner. Details of the agreement between IBEW Local 1600
and the new owner will be the subject of discussions as part
of the closing process.
Employees at the plant will continue to be PP&L,
Inc. employees until the closing of the sale. Meetings to
further discuss the sale of the plant will be held with all
Sunbury plant and Lady Jane employees and representatives
from PP&L, Inc. and WPS Power Development over the next
several weeks.
As part of PP&L, Inc.'s continual examination of
its operations, an assessment was completed of how all of
its power plants fit into the company's future plans in the
competitive marketplace. At the conclusion of that effort
last August, PP&L, Inc. said that it would seek a buyer for
the Sunbury plant and close the Holtwood coal-fired power
plant in Lancaster County. Last month, PP&L, Inc. ceased
operations at the 73-megawatt Holtwood unit.
The Sunbury plant, located on 216 acres in the
borough of Shamokin Dam, is a four-unit coal-fired
generating station with a demonstrated winter capacity of
389 megawatts. The site also includes two oil-fired
combustion turbine generators with a total installed peak
reserve capacity of 42 megawatts, which were also included
in the sale. The coal-fired plant began operation in 1949.
In addition, PP&L, Inc. is selling the principal
assets of Lady Jane Collieries, a bituminous coal-processing
facility that processes and loads onto trains a significant
portion of the coal used at the Sunbury plant. Lady Jane is
located near Penfield. PP&L, Inc's anthracite silt reserves
at Forestville and Buck Run in Schuylkill County are being
sold along with the other Lady Jane assets.
The Wall Street firm of J. P. Morgan & Co. acted
as exclusive financial advisor to PP&L, Inc. on the sale.
PricewaterhouseCoopers Securities LLC is the financial
advisor to WPS Power Development.
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SIGNATURES
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Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrants have duly caused this report to
be signed on their behalf by the undersigned hereunto duly
authorized.
PP&L Resources, Inc.
PP&L, Inc.
Date: May 24, 1999 By: /s/ John R. Biggar
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Senior Vice President and
Chief Financial Officer
