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 30, 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 (Commission (IRS Employer
jurisdiction of File Number) Identification No.)
incorporation)
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 recent company news
release relating to South Western Electricity plc's sale of
its electric supply business:
PP&L Resources Subsidiary Closes Transaction to Sell U.K.
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Supply Business
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South Western Electricity plc, known as SWEB, an
affiliate of PP&L Global, Inc. and Southern Energy, Inc.,
today (9/30) announced settlement on the sale of its
electricity supply business to London Electricity for 160
million pounds (about $264 million, based on current
exchange rates). PP&L Global is a subsidiary of PP&L
Resources, Inc. (NYSE: PPL).
PP&L Resources expects to record an after-tax gain from
the sale of about $40 million, said John R. Biggar, the
company's senior vice president and chief financial officer.
Biggar said the gain will be recorded in the fourth quarter
of 1999 because of a one-month lag in recording the results
from international affiliates.
In the deregulated U.K. electricity market, a supply
business purchases wholesale electricity and then sells it
to retail customers in the competitive marketplace. The
supply business represents only about 15 percent of SWEB's
annual earnings. In the future, SWEB will focus on its
extensive power distribution network in southwest England.
It currently transports and delivers electricity to 1.4
million customers. PP&L Global and Southern Energy will
continue joint ownership of the electric delivery business,
which will be renamed Western Power Distribution (WPD).
"WPD looks forward to serving its many customers for years
to come," said Paul Champagne, PP&L Global's president.
The U.K.'s Office of Gas and Electricity Markets
(Ofgem) is expected to announce in mid-November final rate
reductions for the regional electric companies in the United
Kingdom, including WPD. In anticipation of this Ofgem
action, PP&L Resources is evaluating the carrying value of
its investment in WPD. The amount of any possible write-
down cannot be determined until Ofgem issues its final rate
reductions for WPD, but such a write-down could be material.
Southern Energy is a unit of Southern Company, which
also is the parent company of Alabama Power, Georgia Power,
Gulf Power, Mississippi Power and Savannah Electric.
PP&L Resources, Inc. is a Fortune 500 company based in
Allentown, Pa. The PP&L Resources family of companies
includes PP&L, Inc., which delivers electricity to 1.3
million customers in eastern and central Pennsylvania,
generates electricity, and markets wholesale energy in the
United States and in Canada; PP&L EnergyPlus Co., LLC, which
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sells competitively priced energy and energy services to
newly deregulated markets; PP&L Global, Inc., which develops
electric generation throughout the United States and around
the world and has ownership interests in United Kingdom and
Latin American companies that distribute electricity to 2
million customers; Penn Fuel Gas, Inc., which sells and
distributes natural gas and propane in Pennsylvania and
Maryland; and PP&L Spectrum, Inc., Burns Mechanical, Inc.,
H.T. Lyons, Inc., McCarl's Inc., McClure Company and Western
Mass. Holdings, Inc., which provide energy-management and
mechanical contracting and engineering services to
businesses.
Certain statements which are contained in this news release
are "forward-looking statements" within the meaning of the federal
securities laws. Although PP&L Resources believes that the
expectations reflected in these statements are reasonable, there
can be no assurance that these expectations 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 the forward-looking statements. Such
forward-looking statements should be considered in conjunction with
PP&L Resources' documents on file with the Securities and Exchange
Commission.
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SIGNATURES
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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 hereunto duly
authorized.
PP&L Resources, Inc.
Date: September 30, 1999 By: /s/ Joseph J. McCabe
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Joseph J. McCabe
Vice President and Controller
