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) February 18, 1999
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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, PA 18101-1179
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(Address of principal executive offices) (Zip Code)
Registrants' 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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5. Other Items.
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Forward-Looking Statements
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PP&L Resources, Inc. (the "Company") has forecasted compound
annual growth rates in earnings per share of 3.7% for 1999, 7.5% for
2000 and 7.9% for 2001, based on adjusted earnings per share for 1998
of $2.07. The Company reported a loss for 1998 of $(3.46) per share.
However, when adjusted to exclude the effects of extraordinary items,
weather, one-time adjustments and certain restructuring impacts,
earnings per share for 1998 were $2.07.
The Company has made certain assumptions in this forecast. Major
assumptions include the following:
. The Company has assumed that the market clearing price of
generation will be about 12% and 7% higher for 1999 and 2000,
respectively, than previous forecasts (which were 2.85 and 3.10
cents per kwh in 1999 and 2000, respectively).
. The Company has assumed that annual growth in electricity
delivered by PP&L, Inc. ("PP&L") will be 1.5% in each of 1999,
2000 and 2001.
. Commencing January 1999, certain PP&L customers are able to
choose their electricity supplier. The Company has assumed that
the percentage of total customer load that will "shop" for
electricity will be 29% in 1999 and 32% in each of 2000 and 2001.
The Company also has assumed that PP&L will retain 55% of such
shopping load each year.
. The Company has assumed that its average number of common stock
shares outstanding in 1999, 2000 and 2001 will be 159, 170 and
171 million, respectively.
The foregoing forecast and assumptions do not reflect the effects
of any securitization of transition costs by PP&L under the
Pennsylvania Customer Choice Act and the August 27, 1998 Order of the
Pennsylvania Public Utility Commission. The Company currently expects
that PP&L will securitize up to $2.5 billion of transition costs in
the third quarter of 1999.
If future events and actual performance differ from the key
assumptions noted above, the Company's actual results could vary
significantly from the projected results.
*******
The foregoing statements, including statements with respect to
future earnings growth, market prices of generation, growth in
electricity delivered, customer retention and average common stock
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shares outstanding, are "forward-looking statements" within the
meaning of the federal securities laws. Although the Company and PP&L
believe that the expectations and assumptions reflected in these
statements are reasonable, there can be no assurance that these
expectations and assumptions will prove to have been correct. These
forward-looking statements involve a number of risks and
uncertainties, and actual results may differ materially from the
results discussed in these forward-looking statements. The following
are among the factors that could cause actual results to differ
materially from these forward-looking statements: state and federal
regulatory developments; new state or federal legislation; national or
regional economic conditions; market demand and prices for energy,
capacity and fuel; weather variations affecting customer energy usage;
competition in retail and wholesale power markets; the need for and
effect of any business or industry restructuring; the Company's and
PP&L's profitability and liquidity; new accounting requirements or new
interpretations or new applications of existing requirements;
operating performance of plants and other facilities; environmental
conditions and requirements; system conditions (including actual
results in achieving Year 2000 compliance by the Company, its
subsidiaries and others) and operating costs; performance of new
ventures; political, regulatory or economic conditions in foreign
countries where PP&L Global, Inc. makes investments; foreign exchange
rates; and the Company's and PP&L's commitments and liabilities. Any
such forward-looking statements should be considered in light of such
important factors and in conjunction with the Company's and PP&L's
other documents on file with the Securities and Exchange Commission.
New factors that could cause actual results to differ materially
from those described in these forward-looking statements emerge from
time to time, and it is not possible for the Company or PP&L to
predict all of such factors, or the extent to which any such factors
may cause actual results to differ from those contained in any
forward-looking statement. Any forward-looking statement speaks only
as of the date on which such statement is made, and neither the
Company nor PP&L undertakes any obligation to update the information
contained in such statement to reflect subsequent developments or
information.
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SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act
of 1934, the Registrants have duly caused this report to be signed on
their behalf by the undersigned thereunto duly authorized.
PP&L RESOURCES, INC.
PP&L, INC.
By: /s/ John R. Biggar
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Senior Vice President and
Chief Financial Officer
Date: February 18, 1999
