PPL CORPORATION AND SUBSIDIARY COMPANIES CONSOLIDATED FINANCIAL INFORMATION (UNAUDITED) Consolidated Balance Sheet (Millions of Dollars)June 30, 2002 Dec. 31, 2001 (a)
AssetsCurrent assets $1,777 $2,338
Investments 1,065 999
Property, plant and equipment -- netTransmission and distribution 2,677 2,566
Generation 2,521 2,464
General and intangible 311 310
Construction work in progress 315 181
Nuclear fuel and other leased property 116 127
Electric utility plant 5,940 5,648
Gas and oil utility plant 199 196
Other property 109 103
6,248 5,947
Recoverable transition costs 2,069 2,172
Regulatory and other assets 1,111 1,118
Total assets $12,270 $12,574
Liabilities and EquityCurrent liabilities $1,856 $1,838
Long-term debt (less current portion) 4,882 5,081
Deferred income taxes and ITC 1,500 1,449
Liability for above market NUG purchases 390 493
Other noncurrent liabilities 927 911
Minority interest 38 38
Company-obligated mandatorily redeemablesecurities 725 825
Preferred stock 82 82
Earnings reinvested 887 1,023
Other common equity 1,819 1,670
Treasury stock (836) (836)
Total liabilities and equity $12,270 $12,574
(a) Certain amounts have been reclassified to conform to the current year presentation.
Consolidated Income Statement (Millions of Dollars)3 Months Ended June 30 6 Months Ended June 30
2002 2001(a) 2002 2001(a)
Operating RevenuesUtility $741 $695 $1,547 $1,522
Unregulated retailelectric and gas 42 104 91 243
Wholesale energy marketingand trading 353 431 620 889
Energy-relatedbusinesses 165 181 318 323
1,301 1,411 2,576 2,977
Operating ExpensesFuel and purchased power 471 554 876 1,137
Other operation andmaintenance 268 286 521 524
Amortization of recoverable transitioncosts 50 55 103 126
Depreciation 64 67 126 133
Energy-related businesses 146 162 272 275
Taxes, other than income 47 39 98 80
Other charges Write-down of international energyprojects 94 0 100 0
Cancellation of generationprojects 0 0 0 0
Workforce reduction 74 0 74 0
1,214 1,163 2,170 2,275
Operating income 87 248 406 702
Other income - net 7 6 12 12
Interest expense 100 88 197 192
Income (loss) before income taxes andminority interest (6) 166 221 522
Income taxes 4 35 66 161
Minority interest 2 1 3 3
Income (loss) before
extraordinary items (12) 130 152 358
Extraordinary item(net of tax) 0 0 0 0
Income (loss) before cumulative effect of a change in accountingprinciples (12) 130 152 358
Cumulative effect of a change in accountingprinciples (net of tax) 0 0 (150) 0
Income (loss) before dividends on preferredsecurities (12) 130 2 358
Dividends - preferredsecurities 15 13 32 19
Net Income (loss) ($27) $117 ($30) $339
Earnings per share of common stock - basic Income from coreoperations $0.75 $0.80 $1.78 $2.33
Unusual items (0.93) 0.00 (1.98) 0.00
Net Income (loss) ($0.18) $0.80 ($0.20) $2.33
Earnings per share of common stock - diluted Income from coreoperations $0.75 $0.80 $1.77 $2.31
Unusual items (0.93) 0.00 (1.97) 0.00
Net Income (loss) ($0.18) $0.80 ($0.20) $2.31
Average shares outstanding (thousands)Basic 147,149 145,901 146,927 145,608
Diluted 147,508 146,700 147,275 146,471
12 Months Ended June 302002 2001(a)
Operating RevenuesUtility $3,059 $2,856
Unregulated retail electric and gas 204 521
Wholesale energy marketing and trading 1,410 2,015
Energy-related businesses 651 558
5,324 5,950
Operating ExpensesFuel and purchased power 1,867 2,397
Other operation and maintenance 1,021 1,051
Amortization of recoverable transition costs 228 244
Depreciation 247 256
Energy-related businesses 569 497
Taxes, other than income 173 162
Other chargesWrite-down of international energy projects 436 0
Cancellation of generation projects 150 0
Workforce reduction 74 0
4,765 4,607
Operating income 559 1,343
Other income - net 12 (10)
Interest expense 392 388
Income (loss) before income taxes andminority interest 179 945
Income taxes 166 315
Minority interest (2) 6
Income (loss) before extraordinary items 15 624
Extraordinary item (net of tax) 0 11
Income (loss) before cumulative effect of achange in accounting principles 15 635
Cumulative effect of a change in accountingprinciples (net of tax) (140) 0
Income (loss) before dividends on preferredsecurities (125) 635
Dividends - preferred securities 65 32
Net Income (loss) ($190) $603
Earnings per share of common stock - basicIncome from core operations $3.69 $4.02
Unusual items (4.99) 0.13
Net Income (loss) ($1.30) $4.15
Earnings per share of common stock - dilutedIncome from core operations $3.68 $4.00
Unusual items (4.97) 0.13
Net Income (loss) ($1.29) $4.13
Average shares outstanding (thousands)Basic 146,642 145,187
Diluted 147,025 145,977
(a) Certain amounts have been reclassified to conform to the current year presentation.
Key Indicators Financial12 Months Ended 12 Months Ended
June 30, 2002 June 30, 2001
Dividends declared per share $1.25 $1.06
Book value per share (a) $12.71 $15.42
Market price per share (a) $33.08 $55.00
Dividend yield (a) 3.8% 1.9%
Dividend payout ratio - diluted (b) 34% 27%
Price/earnings ratio - diluted (a) (b) 9.0 13.8
Return on average common equity (b) 23.02% 30.26%
(a) End of period (b) Based on earnings from core operations Operating - Domestic Electricity Sales3 Months Ended June 30 6 Months Ended June 30
PPL Corp.(millions of kwh) Percent Percent
2002 2001 Change 2002 2001 Change
RetailDelivered (a) 8,269 8,082 2.3% 17,372 17,963 -3.3%
Supplied 8,687 8,928 -2.7% 18,315 19,481 -6.0%
WholesaleEast 5,288 4,259 24.2% 9,907 9,503 4.3%
West Northwestern Energy/MontanaPower (b) 1,200 1,048 14.5% 2,566 2,247 14.2%
Other 1,811 743 143.7% 3,475 1,769 96.4%
12 Months Ended June 30 PPL Corp.(millions of kwh) Percent
2002 2001 Change
RetailDelivered (a) 34,018 34,567 -1.6%
Supplied 36,229 38,192 -5.1%
WholesaleEast 19,528 23,305 -16.2%
West Northwestern Energy/Montana Power (b) 5,036 4,757 5.9%
Other 5,547 3,760 47.5%
(a) Electricity delivered to retail customers represents the kwh delivered to customers within PPL Electric Utilities Corp.'s service territory. (b) Northwestern Energy purchased Montana Power's electric delivery business in February 2002. PPL Montana's power agreement with Montana Power expired June 30, 2002. PPL EnergyPlus, on behalf of PPL Montana, began selling energy to Northwestern Energy on July 1, 2002.