EXHIBIT 99.1
------------
October 24, 2000
Contact: Dan McCarthy, (610) 774-5758
PPL CORP. ANNOUNCES STRATEGIC INITIATIVES
PPL Corporation (NYSE: PPL) Tuesday (10/24) announced two initiatives that
will contribute to the success of the company's growth strategy.
William F. Hecht, PPL chairman, president and chief executive officer, said
that the company has signed an agreement that provides 30 turbine-generators for
its domestic generation expansion program. He also said that the company's Latin
American operation has entered into a partnership with a leading business group
in one of Chile's premier energy distribution companies.
The gas-fired, 50-megawatt turbine-generators, which will be manufactured
by General Electric, will provide PPL with flexibility in growing its
electricity generation and marketing business in the eastern and western
portions of the United States, Hecht said.
"We already have identified and control a number of potential plant sites
in these key markets - sites with ready access to fuel and electric
transmission," said Hecht. "This agreement with GE provides us with 1,500
megawatts of capacity that we will be able to install in a timely fashion."
Hecht said that PPL's proven development and project management processes
give the company important advantages in the competition to bring new power
plants into service.
Another portion of the agreement with GE gives PPL the ability to buy an
additional 36 turbine-generators as its generation expansion continues.
PPL now operates about 10,000 megawatts of merchant generating capacity in
the northeast and west electricity markets. In addition to the 1,500 megawatts
of capacity related to this turbine purchase, the company is constructing a
250-megawatt plant in Connecticut that will generate electricity during
intermediate and peak load periods beginning in the summer of 2001. PPL also is
developing 900 megawatts of base-load type gas-fired plants in Arizona and
Pennsylvania.
<PAGE>
-2-
The company has an objective to own and operate about 20,000 megawatts of
capacity by the middle of this decade.
"These GE turbine-generators, which complement our base-load generation
portfolio, provide us with flexibility in our effort to capture the highest
value in the competitive electricity generation market," said Hecht. "These
units can be installed rapidly at a very economical cost. And, operationally,
they have high fuel efficiency and can start up on short notice, giving them the
capability to run at just the right time."
PPL will pay General Electric about $400 million under the terms of the
recent agreement. The turbines are being financed, Hecht said, using a leasing
structure that eliminates the need for any cash outlays during the turbine
manufacture process and diversifies the company's funding sources. The units are
expected to go into service beginning in mid-2002 and to be immediately
accretive to PPL Corp. earnings.
The domestic generation expansion program is a cornerstone of PPL's
strategy to grow shareowner value as significant opportunities are created by
the deregulation of the U.S. electricity generation business.
PPL also announced a partnership with the Claro group, one of Chile's
outstanding business teams and key shareowners of Compania General de
Electricidad S.A. (CGE), a leading energy distribution company in Chile.
"For more than 40 years, the Claro group has provided superb leadership
that has contributed to making CGE a premier electric and gas distribution
company - one that understands how to build customer relationships that produce
strong financial results," said Hecht. "This is a win/win agreement that
provides us with an opportunity to work with acknowledged business leaders in
Chile to explore further development opportunities to grow value for
shareowners."
"This agreement is important because it provides additional investment in
Chile and because a leading U.S. electricity company is showing great confidence
in CGE's management," the Claro group said in a public statement Tuesday. "PPL
is recognized for its broad knowledge and for its proven ability to focus on
customer needs in highly competitive electricity markets."
CGE provides electricity delivery services to 1.4 million customers in
Chile and natural gas delivery services to 200,000 customers in Santiago.
PPL owns and operates Emel, a company that delivers electricity to 450,000
customers in Chile. From its Latin American headquarters in Santiago, PPL also
owns and operates electric distribution companies in Bolivia, El Salvador and
Brazil.
<PAGE>
-3-
PPL already has acquired about 3 percent of CGE. Under the terms of the
partnership, the Claro group has the right to sell up to an additional 5.6
percent to PPL over the next two years. If the rights are exercised fully, Hecht
said, PPL's total investment would be about $140 million.
Based on the dividends that PPL will realize, the investment -- at either
the current level or with the larger share - will initially be neutral to PPL
Corp. earnings, Hecht said. Any additional purchase of CGE shares, he said,
would occur only if such an acquisition would provide clear benefits for PPL
Corp. shareowner value.
These announcements, the company's third quarter earnings and the company's
general business outlook, will be discussed during a teleconference with
financial analysts on Wednesday (10/25) at 9 a.m. PPL invites investors,
customers, news media and other interested parties to listen to the live
Internet webcast of the teleconference on PPL's main Internet web site:
www.pplweb.com. Interested individuals also can access the live conference call
via telephone at 913-981-4900.
Based in Allentown, Pa., PPL Corp. is a FORTUNE 500* company that delivers
electricity and natural gas to more than 1.3 million customers in Pennsylvania;
markets wholesale or retail energy in 42 U.S. states and Canada; provides energy
services for businesses in the Mid-Atlantic and Northeastern U.S.; generates
electricity at power plants in Pennsylvania, Maine and Montana; delivers
electricity to 2.4 million customers in southwest Great Britain; and delivers
electricity to nearly 1.8 million customers in Chile, Bolivia, El Salvador and
Brazil.
Certain statements contained in this news release, including statements
with respect to future earnings, sales, operating costs, growth, international
investment, project development, performance and generating capacity, are
"forward-looking statements" within the meaning of the federal securities laws.
Although PPL Corp. believes that the expectations and assumptions reflected in
these forward-looking statements are reasonable, these statements involve a
number of risks and uncertainties, and actual results may differ materially from
the results discussed in the statements. The following are among the important
factors that could cause actual results to differ materially from the
forward-looking statements: market demand and prices for energy, capacity and
fuel; weather variations affecting customer energy usage; competition in retail
and wholesale power markets; the effect of any business or industry
restructuring; the profitability and liquidity of PPL Corp. and its
subsidiaries; new accounting requirements or new interpretations or applications
of existing requirements; operating performance of plants and other facilities;
environmental conditions and requirements; system conditions and operating
costs; development of new projects; performance of new ventures; political,
regulatory or economic conditions in countries where PPL Corp. or its
subsidiaries conduct business; capital market conditions; foreign exchange
rates; and the commitments and liabilities of PPL Corp. and its subsidiaries.
Any such forward-looking statements should be considered in light of such
factors and in conjunction with PPL Corp.'s Form 10-K and other reports on file
with the Securities and Exchange Commission.
