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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) September 28, 1998
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.)
TWO NORTH NINTH STREET, ALLENTOWN, PA. 18101-1179
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(Address of principal executive offices) (Zip Code)
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
The following text is from a Company news release of
September 28, 1998:
PP&L Global to Acquire Generating Assets and Transmission
Resources of Bangor Hydro-Electric Company
Bangor Hydro-Electric Company (NYSE: BGR) and PP&L Global,
Inc., a subsidiary of PP&L Resources, Inc. (NYSE: PPL), have
reached an agreement for PP&L Global to purchase most of
Bangor's electric generating assets and certain transmission
rights.
Under the agreement, PP&L Global will purchase 100 percent
of Bangor Hydro's hydroelectric assets, as well as its interest
in an oil-fired generation facility. The assets have a total
base load capacity of 89.2 megawatts.
PP&L Global will purchase the assets for $89 million. The
company expects to finance this acquisition with 50 percent debt
and 50 percent equity. The closing, which is subject to the
approval of the Maine Public Utilities Commission and the
Federal Energy Regulatory Commission as well as certain third-
party consents, is expected to occur by mid-1999.
Robert D. Fagan, president of PP&L Global, said the
acquisition of these assets, which includes associated
transmission resources, is another step in PP&L Resources'
strategy to establish a competitive position in the New England
generation market by providing for potential retail customer
sales growth as well as energy trading and marketing
opportunities.
"These hydro facilities are of strategic value to PP&L
Global," Fagan said. "These assets represent some of the last
hydro facilities available in the New England Power Pool
(NEPOOL). Hydro facilities provide a long-term opportunity due
to their stable cost characteristics versus other generating
assets in the Northeast. Furthermore, hydro assets meet the
'green power criteria' established by the Maine legislature,
which mandates an environmentally compatible component to all
retail sales. We look forward to being good stewards of natural
resources in the state of Maine."
"This is an important milestone in Bangor Hydro's electric
utility restructuring efforts," said Robert S. Briggs, president
and chief executive officer of Bangor Hydro. Briggs indicated
that most of the proceeds to be received by Bangor Hydro will be
used to reduce debt. "Our financial condition will be
strengthened, and our customers will benefit because the
successful sale should mean lower rates for the transmission and
distribution business," he said.
The agreement is the result of Bangor Hydro's auction of
its generation and generation-related assets in accordance with
Maine's electric utility restructuring law, which took effect
September 1997. Under the law, all of Maine's investor-owned
electric utilities must divest all of their non-nuclear
generation assets and generation-related businesses before March
1, 2000.
The new law is intended to create an open market in which
retail consumers will choose their own providers of the
electricity that flows through the wires. The management of the
"wires" or transmission and distribution business will remain
the regulated function of the existing utilities. Reed
Consulting Group assisted Bangor Hydro in the auction.
In addition to the hydro stations, PP&L Global has agreed
to purchase Bangor Hydro's 8.33 percent interest (52 megawatts)
in Wyman Unit 4, a 620-megawatt oil-fired power plant in
Yarmouth, Maine.
"The Wyman plant provides PP&L Global with an excellent
fuel hedge and further improves the fuel diversity we hope to
achieve in NEPOOL, along with our development of a natural gas-
fired power plant in Wallingford, CT.," said Fagan. The New
England Power Pool includes the states of Connecticut,
Massachusetts, Rhode Island, New Hampshire, Vermont and Maine.
The eight hydro stations being sold by Bangor Hydro range
in size from 2 megawatts to more than 13 megawatts and are
located along the Penobscot River Basin and Union River in
Maine. PP&L Global plans to manage the hydro facilities with
PP&L Global and transferred Bangor Hydro employees. As part of
its strategy to further establish its presence in New England,
PP&L Global will likely establish an office in the region.
PP&L Global also is acquiring Bangor Hydro's expansion
rights for a second high-voltage transmission line from Bangor,
Maine, to New Brunswick, Canada, and Bangor Hydro's rights as a
participant in the regional utilities' agreements with Hydro
Quebec.
Bangor Hydro-Electric Co. is the second largest electric
utility in Maine. It serves a population of about 192,000 in an
area encompassing about 5,200 square miles in eastern and east
coastal Maine. The company is a member of NEPOOL and is
interconnected with other New England utilities to the south and
with the New Brunswick Power Corporation to the north.
PP&L Global is headquartered in Fairfax, VA. With the
addition of Bangor Hydro's generating assets, PP&L Global now
has about $725 million in investments and commitments around the
world. Domestically, PP&L Global also is developing a 500-
megawatt natural gas-fired power plant in Wallingford, CT, and a
gas-fired power plant near Kingman, AZ.
PP&L Global also has ownership interests in, and
participates in the management of, electric distribution
companies in the United Kingdom, Chile, El Salvador, Peru,
Argentina and Brazil, which together serve about 3 million
customers. In addition, PP&L Global owns interests in electric
generation facilities in Spain, Portugal, Bolivia and Peru.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act
of 1934, the Registrant has duly caused this report to be signed
on its behalf by the undersigned thereunto duly authorized.
PP&L RESOURCES, INC.
By: ________/s/John R. Biggar_______
Senior Vice President-Financial
Date: October 2, 1998
