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): June 10, 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.)
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 two recent company news releases
related to PP&L Global:
PP&L RESOURCES TO ACQUIRE MAJORITY OWNERSHIP OF CHILEAN
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ELECTRICITY DISTRIBUTION COMPANY EMEL
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PP&L Global, Inc., a subsidiary of PP&L Resources, Inc.
(NYSE:PPL), announced Thursday, June 10, 1999, that it has
reached an agreement to acquire additional shares of
Empresas Emel S.A., one of Chile's largest electricity
distribution companies. Following completion of this
transaction, PP&L Global would own more than two-thirds of
Emel, thereby achieving full control of the company.
Paul T. Champagne, president of PP&L Global, said the
agreement provides that PP&L Global will purchase an
additional 29.2 percent interest in Emel, bringing PP&L
Global's ownership to 66.7 percent of the company. PP&L
Global is purchasing the Emel shares from Las Espigas S.A.,
Gavilla S.A. and individuals related in the Las Espigas
Group. The Las Espigas Group has been PP&L Global's partner
in Chile since 1997.
"We are very pleased with this agreement, which will
increase our investment in Chile, the fastest growing and
most stable economy in Latin America," said Champagne. "In
the two years we have been involved in Emel, we have been
impressed with the company's operation and continued
growth."
Under the agreement, PP&L Global will purchase the
additional shares for about $100 million. Closing is
expected by the end of June, Champagne said.
Emel provides electricity distribution service to about
800,000 customers in Chile, Bolivia and El Salvador. PP&L
Global first purchased a 25.2 percent share of Emel in 1997
and added another 12.3 percent in 1998.
With this proposed investment, PP&L Global will have
investments and commitments totaling about $2.4 billion in
Europe, Latin America and various U.S. locations.
In addition to Emel, PP&L Global's diversified investments
include SWEB, an electricity distribution company in the
United Kingdom with 1.2 million customers. PP&L Global is
playing an essential role in PP&L Resources' five-year plan
to more than double the size of its U.S. electricity
generation portfolio to about 20,000 megawatts.
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PP&L RESOURCES SUBSIDIARY IN AGREEMENT TO SELL U.K. SUPPLY
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BUSINESS
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Reflecting a decision to concentrate on the delivery of
electricity, PP&L Global's United Kingdom subsidiary, South
Western Electricity plc, Friday, June 11, 1999, announced an
agreement to sell a portion of its operations known as the
electricity "supply business."
South Western Electricity plc, known as SWEB, is selling the
so-called supply business to London Electricity for 160
million pounds (about $256 million, based on current
exchange rates). PP&L Global owns 51 percent of SWEB.
Southern Energy, based in Atlanta, owns 49 percent and has
operational and management control of SWEB.
In the deregulated U.K. electricity market, a supply
business purchases wholesale electricity and then sells it
to retail customers in the competitive marketplace. SWEB
will continue to own and operate an extensive power network
in southwest Britain, transporting and delivering
electricity to 1.4 million customers. PP&L Global and
Southern Energy will continue joint ownership of the SWEB
delivery business, said Paul Champagne, PP&L Global's
president.
"Along with Southern Energy, we have dramatically improved
SWEB's delivery business, especially in terms of reliability
and customer service," said Champagne. "The sale of the
supply business reflects SWEB's decision to further sharpen
its focus on providing excellent electricity delivery
services to the people of southwest Britain."
Noting that the supply business represents about 15 percent
of its annual earnings, Champagne said SWEB was faced with a
decision of either attempting to grow that business
substantially in order to compete effectively or to sell the
business. "We concluded, along with our Southern Energy
partners, that a sale was appropriate and that this was an
opportune time to do so," said Champagne. "This transaction
also will ensure that SWEB's customers have access to the
most competitive sources of energy as the market continues
to develop."
PP&L Global paid a total $351 million for its 51 percent
interest in SWEB. It acquired 25 percent of the company
from Southern Energy in 1996 for $181 million and another 26
percent last year for $170 million.
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.
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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: June 15, 1999 By: /s/ John R. Biggar
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John R. Biggar
Senior Vice President and
Chief Financial Officer
