ppl utilities corporation 2004 annual report - puc - … · xls file · web view ·...

ELECTRIC ANNUAL REPORTOF

PPL Electric Utilities Corporation

Exact legal name of reporting electric distribution company or corporation (If name was changed during year, show also the previous name and date of change)

Two North Ninth Street, Allentown, PA 18101(Address of principal business office at end of year)

FOR THE

YEAR ENDED DECEMBER 31, 2004

TO THE

COMMONWEALTH OF PENNSYLVANIA

PUBLIC UTILITY COMMISSION

_____

Name, title, address and telephone number (including the area code), E-Mail Address, and Web Site Address of the person to be contacted concerning this report:

Paul A. Farr, Vice President and Controller

Two North Ninth Street, Allentown, PA 18101

Phone: 610-774-2426

email: [email protected]

websiste: http://www.pplweb.com

Annual Report of: PPL Electric Utilities Corp. Year Ended December 31, 2004TABLE OF CONTENTS

Number and Title of Schedule Page Number and Title of Schedule Page(a) (b) (a) (b)

General Information - Table of Contents 1 600 Classification of Customers, Units Sold and General Instructions 2 Operating Revenues by Tariff Schedule 41 General Information 3 602 Electric Generation Sales & Supply by Energy Important Changes During Year 4 Source (kwh) 42-43 Definitions 5-6 603 Pennsylvania Tax Identification Update 44100 Voting Powers and Elections 7 605 Number of Employees 45101 Security Holder Information and Voting Powers 8 610 Territory Served 46102 Companies Controlled by Respondent 9103 Directors 10 Verification 47104 Officers 11

Financial and Accounting Data200 Comparative Balance Sheet 12-15201 Notes to Balance Sheet 15205 Utility Plant in Service 16206 Accumulated Depreciation of Utility Plant 17208 Construction Work in Progress 18210 Investments 19211 Notes and Other Accounts Receivable 20212 Notes Receivable from Associated Companies 20213 Accounts Receivable from Associated Companies 21215 Plant Materials and Operating Supplies 22216 Unamortized Debt Discount, Expense and 23 Unamortized Premium on Debt217 Extraordinary Property Losses 24231 Long Term-Debt 25400 Income Statement 26-28402 Electric Operating Revenues 29405 Operation and Maintenance Expenses 30-32408 Taxes Other than Income Taxes, Utility 33 Operating Income409 Income Taxes, Utility Operating Income 33410 Calculation of Federal Income Taxes-Current 34411 Provision for Deferred Income Taxes-Utility 35 Operating Income412 Provision for Deferred Income Taxes-Utility 35 Operating Income, Credit500 Purchased Power 36501 Sales for Resale 36502 Electric Generation Supplier Retail Energy Distr. 37505 Electric Account-Electricity 38511 Manufactured Electricity Production Plant 39517 Customer Electric Meters 40

ii

Annual Report of: PPL Electric Utilities Corp. Year Ended December 31, 2004

GENERAL INSTRUCTIONS

1. The completed original and an electronic (e-mail) copy 7. Extra copies of any page will be furnished uponof this report shall be filed with the Pennsylvania request. If it is necessary or desirable to insertPublic Utility Commission, P.O. Box 3265, additional statements for the purpose of furtherHarrisburg, Pennsylvania, 17105-3265 on or before the explanation of accounts or schedules, they shall 30th of April following the end of the year to which be legibly made on paper of durable quality andthe report applies. shall correspond to this form in size of page and

width of margin. Additional sheets, ruled either2. All Electric Distribution Companies subject to vertically or horizontally, will be furnished on re-

the jurisdiction of the Pennsylvania Public Utility Comm- quest. Inserts, if any, should be appropriatelyission, upon which this report is served are required by identified with the schedules to which they relate.statute to complete and file this report. The statute further provides that when any such report is defective 8. If the electric distribution service provider conducts or believed to be erroneous, the reporting corporation operations both within and outside the Commonwealth shall be duly notified and given a reasonable time of Pennsylvania, data should be reported so that within which to make the necessary amendments or there will be shown the number of subscribers withincorrections. All data comprising this report shall be this state, and (separately by accounts) the operat-submitted in electronic and permanent form. ing revenues from sources within this state, and

the plant investment as of the end of the year3. All accounting terms and phrases used in this form within the state.

are to be interpreted in accordance with the effectiveapplicable Uniform System of Accounts prescribed 9. Whenever schedules call for comparison of by the Federal Energy Regulatory Commission Title 18 figures of a previous year, the figures reportedunder "Part 101-Uniform System of Accounts Prescribed for must be based upon those shown by the annual Public Utilities and Licensees Subject to the Provisions of the report of the previous year or an appropriate expla-Federal Power Act", (18 CFR Part 101). Whenever the term nation given why different figures were used. respondent is used, it shall mean the reporting company.

10. Throughout the report, money items shall be4. Standard accounting procedures will apply in determining shown in units of dollars adjusted to accord with

the nature of any entry (e.g., Uncollectibles, a revenue item, footings. Omitting cents does not apply, however,is normally a debit entry, and should be entered as a "positive" to items in which cents are of significance, as fornumber unless the reported balance is a credit). Entries instance, in averages and in unit costs.of a reverse or contrary character shall be indicated byparenthesis around the number. 11. If this report is not completed electronically, the name

of the respondent and the year to which the report 5. If the report is made for a period less than the calendar relates shall be inserted on the top of each page.

year, the period covered must be clearly stated on thefront cover and elsewhere throughout the report where the 12. Special Instructions for Schedules 400, 402 & 602:period covered is shown. When operations cease during the a. Schedule 400 Income Statement should include allyear because of the disposition of property, the balance revenues from the sale of electricity, ie., distribution,sheet and supporting schedules should consist of balances transmission, transition & POLR charges, including STAS. and items immediately prior to transfer (for accounting Line 10 "Total Sales to Ultimate Consumers" relates to purposes). If the books are not closed as of that date, the revenue for volumes sold and delivered to Shopping data in the report should nevertheless be complete, and the Customers & POLR Customers that are subject to PA GRT.amounts reported should be supported by information set b. Schedule 402 Electric Operating Revenues contains forth in, or as part of, the books of account. two separate components for reporting:

(1) "Distribution Sales" include all distribution service6. All instructions shall be followed and each question shall sales (kWh) and revenues from distribution, transition and

be answered fully and accurately. Sufficient answers shall transmission (if applicable) tariff charges, including STAS.appear to show that no question or schedule has been (2) "POLR" includes all POLR sales (kWh) and revenuesoverlooked. The expression "none" or "not applicable" shall from generation & transmission (if applicable) tariff charges,be given as the answer to any particular inquiry or schedule including STAS. Identify POLR transmission revenueswhere it truly and completely states the fact. Unless otherwise in a footnote.indicated, no information will be accepted which incorporates c. Schedule 602 Electric Generation Sales & Supply byby reference information from another document or report. Energy Source must be completed if POLR service isWhere information called for herein is not given, state fully provided. Total Retail Sales (kWh) will equal kWh reportedthe reason for its omission. for current year on line "Total POLR Sales to Ultimate

Consumers" on Schedule 402.


GENERAL INFORMATION

1. Name and title of officer having custody of the general books of account and address of the office where such books are kept.

Paul A. Farr, Vice President and ControllerTwo North Ninth Street, Allentown, PA 18101

2. Name of State under the laws of which respondent is incorporated and the date of incorporation. If incorporated under a special law, give reference to such law. If not incorporated, state that fact and give the type of organization and date organized.

Pennsylvania, June 4, 1920.

3. If at any time during the year the property of respondent was held by a receiver or trustee, give (a) name of receiver or trustee (b) date such receiver or trustee took possession, (c) the authority by which the receivership or trusteeship was created, (d) date when possession by receiver or trustee ceased.

Not Applicable

4. State the classes of utility and other services furnished by respondent during the year in each state in which the respondent operated.

Electric Utility Services - Pennsylvania


IMPORTANT CHANGES DURING YEAR

Hereunder give particulars concerning the matters indicated below. Make the statements explicit and precise, and number them in accordance with the inquiries. Each inquiry must be answered. However, if the word "None" states the fact, it maybe used in answering any inquiry.

1. Changes in, and additions to franchise rights; describing (a) the actual consideration given therefore, and (b) from whom acquired. If acquired without the payment of any consideration, state that fact. None.

2. Acquisition of other companies, reorganization, merger or consolidation with other companies: give names of companies involved, particulars concerning the transactions, and references to Commission authorization, if any. None.

3. Purchase or sale of substantial operating units, such as generating stations, transmission lines or distribution lines, specifying items, parties, effective dates and also reference to Commission authorization, if any. None.

4. Important leaseholds acquired, given, assigned, or surrendered, giving effective dates, lengths of terms, names of parties, rents, Commission authorization, if any, and other conditions. None.

5. Important extensions of system, giving location, new territory covered by distribution systems, and dates of beginning operations. Give, also, the number of new customers of each class, and for each class of customers the estimated annual revenues. None.

6. Estimated increase or decrease in annual revenues due to important rate changes, and the approximate extent to which such increase or decrease is reflected in revenues for the reporting year. In March 2004, PPL Electric filed a proposed distribution rate increase of $164 million (subsequently amended to$160 million) and, at the same time, notified the PUC of an estimated increase in transmission service charges of$57 million. In December 2004, the PUC entered its order granting PPL Electric a distribution rate increase of $137 millionand approved PPL Electric's proposed mechanism for collecting the additional $57 million in transmission-related charges.

7. Important wage scale changes, showing dates of changes, effect on operating expenses for the year, and estimated annual effect of such wage scale changes on operating expenses. In 2002, a general wage increase of 3.5% in 2002, 3.4% in 2003, 3.5% in 2004 and 3.45% in 2005 became effective fornon-supervisory employees. The increases occur in May of each year. It is estimated that the non-supervisory employeewage increase granted during 2004 will increase annual operating expenses by $2.6 million. The estimated annual effect onoperating expenses of wage increases granted to all levels of supervisory personnel during 2004 is an increase ofapproximately $1.2 million.

8. Obligations incurred or assumed by respondent as guarantor for the performance by another of any agreement for the performance by another of any agreement or obligation, excluding ordinary commercial paper maturing on demand or not later than one year after date of issue, and giving Commission authorization, if any. Pursuant to authorizations by the Pennsylvania Public Utility Commission (PUC), the Respondent provided aguarantee in the amount of $7 million in support of Safe Harbor Water Power Corporation, an entity in which theRespondent had an ownership interest prior to the July 1, 2000 realignment. The Respondent leases certain equipment under master operating lease agreements. Under these lease arrangements,the Respondent provides residual value guarantees to the lessors. The Respondent generally could be required to pay aresidual value guarantee if the proceeds received from the sale of a piece of equipment, upon termination of the lease, are lessthan the expected residual value of the equipment. As of December 31, 2004, the maximum aggregate amount of futurepayments that could be required to be made as a result of these residual value guarantees was approximately $81 million. As ofDecember 31, 2004, the aggregate carrying value of residual value guarantees issued subsequent to December 31, 2002, was$1 million and is included in "Miscellaneous Current and Accrued Liabilities" on the Balance Sheet. The Respondent is authorized by the Federal Energy Regulatory Commission (FERC) at Docket No. ES04-1-000 to issuefrom time-to-time, through December 31, 2005, up to $600 million of short-term secured and unsecured promissory notes.In June 2004, the Respondent entered into a $200 million five-year credit facility maturing in June 2009 with a group ofbanks. This facility replaced the Respondent's $200 million, 364-day credit facility that expired in June 2004. TheRespondent also has a $100 million three-year credit facility maturing in June 2006 with a group of banks. During the year, the Respondent began participating in an asset-backed commercial paper program. See Notes toFinancial Statements, pages 15, 8 of 23 and 9 of 23, for more discussion.

9. Changes in articles of incorporation or amendments to charter: explain the nature and purpose of such changes or amendments. None.

10. Other important changes not elsewhere provided for. At December 31, 2004, a subsidiary of the Respondent had a $300 million note receivable from an affiliate, with interestdue quarterly at a rate equal to the 3-month LIBOR plus 1.25%. At December 31, 2004, the Respondent had a $300 million current liability recorded for a performance assurance depositreceived from an affiliate related to a Provider of Last Resort contract. See Notes to Financial Statements, page 15, 15 of 23,for more discussion.


DEFINITIONS

amount over a fixed period, which may be over the life of the asset or liability to which it applies, or over the period during which it is anticipated the benefit will be realized.

deduction of related provisions for accrued depreciation, amortization, or for other purposes.

means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a company, whether such power is exercised through one or more intermediary companies, or alone, or in conjunction with, or pursuant to an agreement, and whether such power is established through a majority or minority ownership or voting of securities, common directors, officers, or stockholders, voting trusts, holding trusts, affiliated companies, contract or any other direct or indirect means.

given is other than cash, the value of such consideration shall be determined on a cash basis.

of debt, such as fees for drafting mortgages and trust deeds; fees and taxes for issuing or recording evidences of debt; cost of engraving and printing bonds and certificates of indebtedness; fees paid trustees; specific costs of obtaining governmental authority; fees for legal services; fees and commissions paid underwriters, brokers, and salesmen or marketing such evidences of debt; fees and expenses of listing on exchanges; and other like costs.

by current maintenance, incurred in connection with the consumption or prospective retirement of the utility plant in the course of providing service. This includes causes which are known to be in current operation and against which the utility is not protected by insurance. Among the causes to be given consideration are wear and tear, decay, action of the elements, inadequacy, obsolescence,changes in the art, changes in demand, and requirements of regulatory bodies.

supply to a customer meter or the connection to a customer’s wiring, whichever is further downstream, or the connection to a customer’s wiring if there is no customer meter.

“Accounts” means the accounts prescribed in the Federal Code Regulations Title 18, Part 101.

“Amortization” means the gradual extinguishment of an amount in an account by distributing such

“Book Cost” means the amount at which property is recorded in the applicable account without

“Control” (including the terms; “controlling,” “controlled by,” and “under common control with”)

“Cost” means the amount of money actually paid for property or service. When the consideration

“Debt Expense” means all expenses in connection with the issuance and initial sale of evidences

“Depreciation”, as applied to depreciable utility plant, means the loss in service value not restored

"Distribution Service Line", A distribution line that transports electricity from a common source of

Annual Report of: PPL Electric Utilities Corp. Year Ended December 31, 2004DEFINITIONS

(Continued)

with respect to which it is mutually agreed or intended between the creditor and debtor that theyshall be settled by the issuance of securities or shall not be subject to current settlement.

composed.

which have been signed, certified, or otherwise executed, and placed with the proper officerfor sale and delivery, or pledged, or otherwise placed in some special fund of the utility, but which have not been sold, or issued directly to trustees of sinking funds in accordance withcontractual requirements.

devoting it to public service.

abandoned, destroyed, or which for any cause has been permanently withdrawn from service.

construction or installation of utility plant in place of property retired, together with the removal of the property retired.

stockholders and transfers to other capital accounts, and other adjustments.

connection with the sale or in preparing the property for sale, or, if retained, the amount at which the material recoverable is chargeable to materials and supplies, or other appropriateaccount.

plan under which the service value of property is charged to operating expenses (and to clearingaccounts if used), and credited to the accumulated depreciation account through equal annualchanges during its service life. "Remaining Life" implies that estimates of the future life andsalvage shall be reexamined periodically and that depreciation rates will be corrected to reflectany changes in these estimates.

“Investment Advances” means advances, represented by notes or by book accounts only,

“Minor Items of Property” means the associated parts or items of which retirement units are

“Net Salvage Value” means the salvage value of property retired less the cost of removal.

“Nominally Issued”, as applied to securities issued or assumed by the utility means those

“Original Cost”, as applied to utility plant, means the cost of such property to the person first

“Property Retired”, as applied to utility plant, means property which has been removed, sold,

“Replacing or Replacement”, when not otherwise indicated in the context, means the

“Retained Earnings” means the accumulated net income of the utility less distributions to

“Salvage Value” means the amount received for property retired, less any expenses incurred in

“Straight-Line Remaining Life Method”, as applied to depreciation accounting, means the


100. VOTING POWERS AND ELECTIONS

1. Has each share of stock the right to one vote? Yes/No Yes. 2. Are voting rights attached only to stock? Yes/No (If the answer to either query 1 or 2 is "No," give particulars on a separate sheet.) Yes.

3. Give date of the latest closing of the stock book prior to end of year and state the purpose of such closing. Stock books remain open. Compilation of shareowners, for dividend purposes, was taken at close of business December 10, 2004.

4. Is cumulative voting permitted? Yes/No Yes.

6. State the date and place of the latest general meeting held prior to the end of the year for the election of directors? April 20, 2004; Allentown, PA

7. State the total number of votes cast at the latest general meeting and the total number cast by proxy. 78,029,863 votes - meeting, 0 votes - proxy.

8. State the total number of voting security holders and the total of all voting securities as of such date. 5,054 security holders; 78,535,052 total voting securities.

9. If any security has preferences, special privileges, or restrictions in the election of directors, trustees or managers, or in the determination of any corporate action, give details. N/A

10. State the number of votes controlled by management, other than officers of the Corporation. 78,029,863 votes.


101 SECURITY HOLDER INFORMATION AND VOTING POWERS 1. Report the requested information for each holder of one percent or more of the voting securities or if there are fewer than ten such holders, the ten who hold the highest voting powers. Data should be the latest available nearest the end of the year. When the holder of record is a trustee, or other intermediate agency (except a corporation), the data should be reported opposite the names of the beneficial owners, designated as such, under a general heading identifying the trustee or other agency. Securities with contingent voting rights may be disregarded. 2. Attach hereto a certified copy of every effective voting trust established and a certified copy of every other agreement (trustee or otherwise) under which voting securities are held for beneficial owners. If any such agreement has been filed with a previous report, reference to the earlier report will be sufficient provided changes or modification since filing are shown.

Nonvoting Securities(see instruction 2)

Principal, Par Value,Total Common Preferred or Stated Value

Line Last Name First Name Street Address City State Zip Votes Stock Stock Other (Specify issue-omit cents)No. (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k)1 Total votes of all voting securities 78,535,052 78,029,863 505,189 2 Total number of security holders 4,901 1 4,900 3 Total votes of security holders listed below 78,398,719 78,029,863 368,856 4 PPL Corporation 2 North Ninth Street Allentown PA 18101 78,029,863 78,029,863 5 Cede & Co. Box 20, Bowling Green Station New York NY 10004 353,373 353,373 6 Moon Robert 260 Route 51 Coxackie NY 12051 8,000 8,000 7 Blackwell Robert 118 E. Pine Street Mahanoy City PA 17948 1,635 1,635 8 Hock Douglas 41 W. 8 1/2 Street Bloomsburg PA 17815 1,048 1,048 9 Bennett George 102 Jefferson Street Newtown PA 18940 1,000 1,000 10 Minnich Lois 201 W. Main Street Lykens PA 17048 1,000 1,000 11 Travis Marguerite 953 Clearfield Road Nazareth PA 18064 1,000 1,000 12 Byorek Joan 337 Westfield Road Fanwood NJ 07023 1,000 1,000 13 Merkle Elsie 107 N. Gap Street Walnutport PA 18088 800 800 1415


102. COMPANIES CONTROLLED BY RESPONDENT

1. Show below the names of all corporations, business trusts, and similar organizations, controlled directly or indirectly by respondent at any time during the year. If control ceased prior to end of the year, give particulars in a footnote.2. If control was by other means than a direct holding of voting rights, state in a footnote the manner in which control was held, naming any intermediates involved. 3. If control was held jointly with one or more other interests, state the fact in a footnote and name the other interests.

Voting % FootnoteLine Name of Company Controlled Kind of Business Street Address City State Zip of Stock Ref.No. (a) (b) (c) (d) (e) (f) (g) (h)1 PPL Transition Bond Company, LLC Issuer of transition bonds 2 North Ninth Street Allentown PA 18101 100% (1)2 CEP Commerce, LLC Currently dormant 2 North Ninth Street Allentown PA 18101 100%

3 CEP Lending, Inc. 2 North Ninth Street Allentown PA 18101 100% (2)

4 PPL Receivables Corporation 3993 Howard Hughes Parkway Las Vegas NV 89109 100% (3)5678 `9

10111213141516

FOOTNOTES(1) PPL Transition Bond Company, LLC is a limited liability company, of which all of its membership interests are held by PPL Electric Utilities Corporation.The company was formed to issue transition bonds to securitize the recovery of retail stranded costs under the Pennsylvania Customer Choice Act.

(2) CEP Lending, Inc., a subsidiary of CEP Commerce, LLC, is a company formed to make intercompany loans.

(3) PPL Receivables Corporation is a special purpose entity whose sole purpose is to purchase eligible accounts receivable and unbilled revenuefrom PPL Electric Utilities Corporation in order to secure asset-backed commercial paper from a third party.

1. Direct control is that which is exercised without interposition of an intermediary.2. Indirect control is that which is exercised without interposition of an intermediary which exercises direct control. Control may exist by mutual agreement or understanding between two or more parties who together have control within the meaning of the definition of control in the Uniform System of Accounts, regardless of the relative voting rights of each party.3. Joint control may exist by mutual agreement or understanding between two or more parties who together have control within the meaning of the definition of control in the Uniform System of Accounts, regardless of the relative voting rights of each party.

Provides loans to PPL Corp. affiliates

Special purpose entity formed in connection with PPL Electric's participation in an asset-backed commercial paper program


103. Directors1. Report below the information called for concerning each director of the respondent who held office at any time during the year. Include in column (a) abbreviated titles of the directors who are officers of respondent.2. Designate by an asterisk names of members of Executive Committee, and by double asterisk the Chairman of the Executive Committee.

Principal Business Address Term Term Meetings FeesLine Directors Name and Title Street Address City Zip Telephone Began Ends Attended PaidNo. (a) (b) (c) (d) (e) (h) (i) (j) (k) (l)1 John R. Biggar* 2 North Ninth Street Allentown PA 18101 610-774-5613 4/22/2004 4/19/2005 3 None2 Paul T. Champagne 2 North Ninth Street Allentown PA 18101 610-774-4206 4/22/2004 4/19/2005 5 None3 Dean A. Christiansen 48 Wall Street New York NY 10005 212-918-4935 4/22/2004 4/19/2005 1 $7,000 4 Robert J. Grey 2 North Ninth Street Allentown PA 18101 610-774-5587 4/22/2004 4/19/2005 5 None5 William F. Hecht**(Chairman) 2 North Ninth Street Allentown PA 18101 610-774-5461 4/22/2004 4/19/2005 5 None6 Rick L. Klingensmith 2 North Ninth Street Allentown PA 18101 610-774-7014 9/1/2004 4/19/2005 1 None7 James H. Miller 2 North Ninth Street Allentown PA 18101 610-774-5201 4/22/2004 4/19/2005 5 None8 Roger L. Petersen 2 North Ninth Street Allentown PA 18101 610-774-4783 9/1/2004 4/19/2005 1 None9 John F. Sipics*(Vice Chair & President) 2 North Ninth Street Allentown PA 18101 610-774-4005 4/22/2004 4/19/2005 5 None

10 Bryce L. Shriver 2 North Ninth Street Allentown PA 18101 610-774-4502 9/1/2004 4/19/2005 1 None11 Lawrence E. De Simone N/A N/A N/A N/A N/A 4/22/2004 7/30/2004 3 None12 Paul A. Farr 2 North Ninth Street Allentown PA 18101 610-774-2426 4/22/2004 8/20/2004 0 None13141516151617 Footnote for lines 1 through 2 and lines 4 through 12, col. (l): Directors who are employed by PPL Electric Utilities Corporation or its affiliates do not receive18 any additional director's fees beyond their normal compensation.1920 Footnote for line 3, col. (l): Annual fee paid to Lord Securities Corporation for providing the services of independent director, Dean A. Christiansen.2122 Footnote for line 6, col. (a): Mr. Klingensmith was elected on September 1, 2004.2324 Footnote for line 10, col. (a): Mr. Shriver was elected on September 1, 2004.2526 Footnote for line 11, col. (a): Mr. De Simone resigned on July 30, 2004.2728 Footnote for line 12, col. (a): Mr. Farr was elected on April 20, 2004. Mr. Farr resigned on August 20, 2004 due to his appointment as Vice President and Controller.

State


104. Officers

Principal Business AddressLine Official Title & Name Street Address City State Zip Telephone Fax EmailNo. (a) (b) (c) (d) (e) (h) (i) (j)1 President2 John F. Sipics 2 North Ninth Street Allentown PA 18101 610-774-4005 610-774-2811 [email protected] Vice-President4 Robert M. Geneczko-Customer Services 827 Hausman Road Allentown PA 18104 484-634-3248 484-634-3334 [email protected] Robert S. Gombos-Field Services (see footnote) N/A N/A N/A N/A N/A N/A N/A67 Treasurer8 James E. Abel 2 North Ninth Street Allentown PA 18101 610-774-5987 610-774-5106 [email protected] Assistant Treasurer10 Russell R. Clelland 2 North Ninth Street Allentown PA 18101 610-774-4480 610-774-5106 [email protected] Vice President & Controller12 Joseph J. McCabe (see footnote) N/A N/A N/A N/A N/A N/A N/A13 Paul A. Farr (see footnote) 2 North Ninth Street Allentown PA 18101 610-774-2426 610-774-5087 [email protected] Auditor16 Martin F. Urban (see footnote) 2 North Ninth Street Allentown PA 18101 610-774-4801 610-774-5037 [email protected]

Footnote for line 5, column (a): Mr. Gombos retired on April 30, 2004.

Footnote for line 8, column (a): Mr. Abel is an employee of PPL Services Corp.

Footnote for line 12, column (a): Mr. McCabe retired on February 20, 2004.

Footnote for line 13, column (a): Mr. Farr became Vice President and Controller effective August 23, 2004. Mr. Farr is an employee of PPL Services Corp.

Footnote for line 16, column (a): Not an officer of PPL Electric, but performs the audit function.

Annual Report of: PPL Electric Utilities Corp. Year Ended December 31, 2004200. COMPARATIVE BALANCE SHEET

ASSETS AND OTHER DEBITSBalances at Beginning of Year must be consistent with balances at end of previous year

Schedule Balance BalancePage Beginning End of Increase/

Line Account Number and Title No. of Year Year DecreaseNo. (a) (b) (c) (d) (e)1 UTILITY PLANT2 101.0 Electric Plant in Service 205 3,993,381,196 4,253,419,922 260,038,726 3 101.1 Property Under Capital Leases 0 0 0 4 102.0 Electric Plant Purchased or Sold 0 0 0 5 103.0 Experimental Electric Plant Unclassified 0 0 0 6 104.0 Electric Plant Leased to Others 0 0 0 7 105.0 Electric Plant Held for Future Use 21,706,369 21,044,055 (662,314)8 105.1 Production Properties Held For Future Use 0 0 0 9 106.0 Completed Construction Not Classified-Electric 289,187,745 179,581,584 (109,606,161)

10 107.0 Construction Work in Progress-Electric 208 28,437,220 26,645,981 (1,791,239)11 108.0 Accumulated Provision for Depreciation of Electric Utility Plant 206 (1,626,785,189) (1,701,274,215) (74,489,026)12 111.0 Accum. Prov. For Amortization & Depletion of Eclectric Utility Pl. 206 (5,661,989) (9,389,516) (3,727,527)13 114.0 Electric Plant Acquisition Adjustments 0 0 0 14 115.0 Accumulated Prov. For Amortization & Depletion of Electric Plant15 Acquisition Adjustments 206 0 0 0 16 116.0 Other Electric Plant Adjustments 0 0 0 17 118.0 Other Utility Plant 0 0 0 18 119.0 Accumulated Provision for Depreciation and Amortization of Other19 Utility Plant 206 0 0 0 20 120.1 Nuclear Fuel in Process of Refinement, Conversion, Enrichment and 21 Fabrication 0 0 0 22 120.2 Nuclear Fuel Materials and Assemblies-Stock Account 0 0 0 23 120.3 Nuclear Fuel Assemblies in Reactor 0 0 0 24 120.4 Spent Nuclear Fuel 0 0 0 25 120.5 Accum. Provision for Amortization of Nuclear Fuel Assemblies 0 0 0 26 120.6 Nuclear Fuel Under Capital Leases 0 0 0

TOTAL UTILITY PLANT 2,700,265,352 2,770,027,811 69,762,459 28 OTHER PROPERTY AND INVESTMENTS29 121.0 Non-Utility Property 5,160,170 4,597,818 (562,352)30 122.0 Accumulated Depreciation & Amortization of Non-Utility Property (438,694) (481,546) (42,852)31 123.0 Investments in Associated Companies 210 0 0 0 32 123.1 Investment in Subsidiary Companies 210 18,125 301,420,563 301,402,438 33 124.0 Other Investments 210 3,959,823 3,184,937 (774,886)34 125.0 Sinking Funds 0 0 0 35 126.0 Depreciation Fund 0 0 0 36 127.0 Amortization Fund-Federal 0 0 0 37 128.0 Other Special Funds 23,503,521 15,606,818 (7,896,703)38 129.0 Special Funds 0 0 0 39 TOTAL OTHER PROPERTY AND INVESTMENTS 32,202,945 324,328,590 292,125,645


ASSETS AND OTHER DEBITSBalances at Beginning of Year must be consistent with balances at end of previous year

Schedule Balance BalancePage Beginning End of Increase/

Line Account Number and Title No. of Year Year DecreaseNo. (a) (b) (c) (d) (e)1 CURRENT AND ACCRUED ASSETS2 130.0 Cash and Working Funds 0 0 0 3 131.0 Cash 5,199,942 21,222,755 16,022,813 4 132.0 Interest Special Deposits 0 0 0 5 133.0 Dividend Special Deposits 0 0 0 6 134.0 Other Special Deposits 100,512 145,337 44,825 7 135.0 Working Funds 0 0 0 8 136.0 Temporary Cash Investments 210 157,350,000 129,275,478 (28,074,522)9 141.0 Notes Receivable 211 0 0 0 10 142.0 Customer Accounts Receivable 197,888,674 175,940,322 (21,948,352)11 143.0 Other Accounts Receivable 211 65,303,264 11,867,808 (53,435,456)12 144.0 Accumulated Provision for Uncollectible Accounts-Cr. (23,524,981) (18,312,148) 5,212,833 13 145.0 Notes Receivable from Associated Companies 212 0 0 0 14 146.0 Accounts Receivable for Associated Companies 213 26,943,148 26,726,618 (216,530)15 151.0 Fuel Stock 0 0 0 16 152.0 Fuel Stock Expenses Undistributed 0 0 0 17 153.0 Residuals 0 0 0 18 154.0 Plant Materials and Operating Supplies 215 25,235,523 27,532,161 2,296,638 19 155.0 Merchandise 0 0 0 20 156.0 Other Materials and Supplies 0 0 0 21 157.0 Nuclear Materials Held for Sale 0 0 0 22 158.1 Allowance Inventory 0 0 0 23 158.2 Allowances Witheld 0 0 0 24 163.0 Stores Expense-Undistributed 5,154,388 4,676,688 (477,700)25 165.0 Prepayments 16,234,025 17,538,322 1,304,297 26 171.0 Interest and Dividends Receivable 133,926 242,991 109,065 27 172.0 Rents Receivable 7,331,280 9,046,209 1,714,929 28 173.0 Accrued Utility Revenues 122,689,071 147,858,500 25,169,429 29 174.0 Miscellaneous Current and Accrued Assets 23,346,705 60,671,852 37,325,147 30 TOTAL CURRENT & ACCRUED ASSETS 629,385,477 614,432,893 (14,952,584)31 DEFERRED DEBITS32 181.0 Unamortized Debt Expense 216 18,903,432 14,928,279 (3,975,153)33 182.1 Extraordinary Property Losses 217 0 0 0 34 182.2 Unrecovered Plant and Regulatory Study Costs 217 0 0 0 35 182.3 Other Regulatory Assets 1,964,690,916 1,723,486,719 (241,204,197)36 183.1 Preliminary Natural Gas Survey and Investigation Charges 0 0 0 37 183.2 Other Preliminary Survey and Investigation Charges 0 0 0 38 184.0 Clearing Accounts (593,674) (994,691) (401,017)39 185.0 Temporary Facilities 15,826 24,889 9,063 40 186.0 Miscellaneous Deferred Debits 66,929,455 57,274,243 (9,655,212)41 187.0 Deferred Loses from Disposition of Utility Plant 0 0 0 42 188.0 Research, Development and Demonstration Expenditures 0 0 0 43 189.0 Unamortized Loss on Reacquired Debt 26,970,585 31,779,877 4,809,292 44 190.0 Accumulated Deferred Income Taxes 184,539,621 144,337,442 (40,202,179)45 TOTAL DEFERRED DEBITS 2,261,456,161 1,970,836,758 (290,619,403)46 5,623,309,935 5,679,626,052 56,316,117

200. COMPARATIVE BALANCE SHEET

TOTAL ASSETS & TOTAL DEBITS


200. COMPARATIVE BALANCE SHEETLIABILITIES AND OTHER CREDITS

Balances at Beginning of Year must be consistent with balances at end of previous year Schedule Balance Balance

Page Beginning End of Increase/Line Account Number and Title No. of Year Year DecreaseNo. (a) (b) (c) (d) (e)1 LIABILITIES AND OTHER CREDITS2 PROPRIETARY CAPITAL3 201.0 Common Stock Issued 1,476,048,307 1,476,048,307 0 4 202.0 Common Stock Subscribed 0 0 0 5 203.0 Common Stock Liability for Conversion 0 0 0 6 204.0 Preferred Stock Issued 50,518,900 50,518,900 0 7 205.0 Preferred Stock Subscribed 0 0 0 8 206.0 Preferred Stock Liability for Conversion 0 0 0 9 207.0 Premium on Capital Stock 40,639 40,639 0 10 208.0 Donations Received from Stockholders 0 0 0 11 209.0 Reduction in Par or Stated Value of Capital Stock 0 0 0 12 210.0 Gain on Resale or Cancellation of Reacquired13 Capital Stock 0 0 0 14 211.0 Miscellaneous Paid-In Capital 360,257,454 360,679,115 421,661 15 212.0 Installments Received on Capital Stock 0 0 0 16 213.0 Discount on Capital Stock 0 0 0 17 214.0 Capital Stock Expense (6,773,379) (6,773,379) 0 18 215.0 Appropriated Retained Earnings 0 0 0 19 216.0 Unappropriated Retained Earnings 303,728,454 352,293,670 48,565,216 20 216.1 Unappropriated Undistributed Subsidiary Earnings (36,475) 1,365,963 1,402,438 21 217.0 Reacquired Capital Stock (912,215,058) (912,215,058) 0 22 218.0 Noncorporate Proprietorship 0 0 0 23 219.0 Accumulated Other Comprehensive Income 473,652 313,631 (160,021)22 TOTAL PROPRIETARY CAPITAL 1,272,042,494 1,322,271,788 50,229,294 2323 LONG-TERM DEBT24 221.0 Bonds 231 2,933,276,977 2,538,887,199 (394,389,778)25 222.0 Reacquired Bonds 231 0 0 0 26 223.0 Advances from Associated Companies 0 0 0 27 224.0 Other Long-term Debt 231 9,475,000 9,475,000 0 28 225.0 Unamortized Premium on Long-Term Debt 0 0 0 29 226.0 Unamortized Discount on Long-Term Debt-Debit (5,864,813) (4,616,638) 1,248,175 30 TOTAL LONG TERM DEBT 2,936,887,164 2,543,745,561 (393,141,603)3132 OTHER NONCURRENT LIABILITIES33 227 Obligation Under Capital Leases-NonCurrent 0 0 0 34 228.1 Accumulated Provision for Property Insurance 0 0 0 35 228.2 Accumulated Provision for Injuries and Damages 0 0 0 36 228.3 Accumulated Provision for Pensions and Benefits 0 0 0 37 228.4 Accumulated Miscellaneous Operating Provisions 0 0 0 38 229 Accumulated Provision for Rate Refunds 0 0 0 39 TOTAL OTHER NONCURRENT LIABILITIES 0 0 0 40


200. COMPARATIVE BALANCE SHEET LIABILITIES AND OTHER CREDITS

Balances at Beginning of Year must be consistent with balances at end of previous year Schedule Balance Balance

Page Beginning End of Increase/Line Account Number and Title No. of Year Year DecreaseNo. (a) (b) (c) (d) (e)1 CURRENT AND ACCRUED LIABILITIES2 231.00 Notes Payable 22,374 42,034,000 42,011,626 3 232.00 Accounts Payable 42,121,524 36,129,978 (5,991,546)4 233.00 Notes Payable to Associated Companies 0 0 0 5 234.00 Accounts Payable to Affiliated Companies 90,412,713 178,718,458 88,305,745 6 235.00 Customers' Deposits-Billing 16,039,015 18,918,630 2,879,615 7 236.10 Accrued Taxes, Taxes Other Than Income 45,216,418 26,253,544 (18,962,874)8 236.20 Accrued Taxes, Income Taxes 41,300,380 19,082,814 (22,217,566)9 237.10 Accrued Interest on Long-term Debt 31,888,585 28,886,580 (3,002,005)

10 237.20 Accrued Interest on Other Liabilities 229,732 252,098 22,366 11 238.00 Dividends Declared 611,245 611,245 0 12 239.00 Matured Long-term Debt 0 0 0 13 240.00 Matured Interest 0 0 0 14 241.00 Tax Collections Payable 3,490,163 3,638,183 148,020 15 242.00 Miscellaneous Current and Accrued Liabilities 65,967,257 348,484,278 282,517,021 16 243.00 Obligations Under Capital Leases-Current 0 0 17 TOTAL CURRENT AND ACCRUED LIABILITIES 337,299,406 703,009,808 365,710,402 1819 DEFERRED CREDITS20 252.00 Customer Advances for Construction 174,172 153,078 (21,094)21 253.00 Other Deferred Credits 193,766,379 190,162,551 (3,603,828)22 254.00 Other Regulatory Liabilities 15,783,163 13,836,437 (1,946,726)23 255.00 Accumulated Deferred Investment Tax Credits 22,254,525 19,509,612 (2,744,913)24 256.00 Deferred Gains from Disposition of Utility Plant 0 0 0 25 257.00 Unamortized Gain on Reacquired Debt 0 0 0 26 281.00 Accum. Deferred Income Taxes-Assume. Amortization Property 0 0 0 27 282.00 Accum. Deferred Income Taxes-Other Property 564,402,414 600,436,669 36,034,255 28 283.00 Accum. Deferred Income Taxes-Other 280,700,218 286,500,548 5,800,330 26 TOTAL DEFERRED CREDITS 1,077,080,871 1,110,598,895 33,518,024 2728 TOTAL LIABILITIES & OTHER CREDITS 5,623,309,935 5,679,626,052 56,316,117

l. The space below is provided for important notes regarding the balance sheet or any account thereof. 2. Furnish particulars as to any contingent assets or liabilities existing at end of year. Minor items may be grouped by classes. For any dividends in arrears at the end of the year on cumulative preferred stock, state the date of the last dividend, the arrearage per share, and the total amount of the arrearage. 3. For Other Plant Adjustments, Account 116, explain the origin of such amount, debits and credits during the year and plan of disposition contemplated, giving references to Commission orders or to other authorizations repeating classification of amounts as plant adjustments and requirements as to disposition thereof. 4. If the notes to balance sheet, appearing in the annual report to the stockholders are applicable in every respect and furnish the data required by instructions 2 and 3 above, such notes may be attached hereto.

Assets and Other DebitsFootnote for page 12, line 32, col. (e): The increase in Investment in Subsidiary Companies (Account 123.1) in 2004 is primarily due to a $300,000,000 investmentin CEP Commerce, LLC, which then made a $300,000,000 investment in its subsidiary, CEP Lending, Inc. CEP Lending, Inc. provides loans to PPL Corp. affiliates.

Footnote for cols. (c) and (d): These accounts include the following amounts associated with transition bonds issued to securitize the recovery of retailstranded costs, pursuant to an Order entered by the Pennsylvania Public Utility Commission on May 21, 1999, at Docket No. R-00994637, in accordancewith Pennsylvania's Electricity Generation Customer Choice and Competition Act, for 2004 and 2003:

Column (c) Column (d)Balance Beginning Balance End

of Year of YearPage No. Line No. Account 12/31/2003 12/31/2004 12 37 128 23,503,521 15,606,818 13 3 131 49,778 184,949 13 6 134 100,512 145,337 13 8 136 200,000 125,000 13 14 146 24,719,137 28,050,016 13 25 165 13,709 13,708 13 26 171 160 209 13 32 181 4,580,870 2,980,420 13 35 182.3 1,343,719,230 1,089,290,084 13 40 186 5,571,763 6,899,235 14 24 221 1,422,339,977 1,158,437,199 14 29 226 46,096 20,627 15 7&8 236 (88,334) 64,919 15 9&10 237 1,664,825 1,364,416 15 15 242 1,689,547 1,657,075 15 21 253 8,174,932 9,483,041

Footnote for page 15, line 15, col. (d): The increase in Miscellaneous Current and Accrued Liabilities (Account 242) in 2004 is primarily due to a $300,000,000payment of a performance assurance deposit by PPL EnergyPlus to PPL Electric related to a power supply agreement for PPL Electric's Provider of LastResort energy requirements.

201. NOTES TO BALANCE SHEET

Annual Report of: PPL Electric Utilities Corp. Year Ended December 31, 2004205. UTILITY PLANT IN SERVICE - Account No. 101.0

1. Report by prescribed accounts the original cost of utility plant in service and the additions and retirements of such plant during the year. 2. Do not include as adjustments, corrections to additions and retirements for the current or preceding year. Such items should be included in appropriate Column (c) or (d). 3. Credit adjustments in Column (e) should be shown in red, or in black enclosed in parenthesis. State in a footnote the general character of any adjustments in Column (e). 4. Submit, in a footnote, an explanation of amounts included in Columns (e) and/or (f), Line 34, for lowering or changing the location of mains.

Balance BalancePrevious Adjustments End of

Line Account Number and Title Year Additions Retirements +/- YearNo. (a) (b) (c) (d) (e) (f)1 INTANGIBLE PLANT XXX XXX XXX XXX XXX2 301 Organization 476,252 476,252 3 302 Franchises & Consents 147,084 147,084 4 303 Miscellaneous Intangible Plant 21,173,935 2,189 21,176,124 5 Total Intangible Plant 21,797,271 2,189 0 0 21,799,460 6 STEAM PRODUCTION PLANT XXX XXX XXX XXX XXX7 310 Land and Land Rights 0 8 311 Structures and Improvements 0 9 312 Boiler Plant Equipment 0 10 313 Engines and Engine-Driven Generators 0 11 314 Turbogenerator Units 0 12 315 Accessory Electric Equipment 0 13 316 Miscellaneous Power Plant Equipment 0 14 Total Steam Production Plant 0 0 0 0 0 14 NUCLEAR PRODUCTION XXX XXX XXX XXX XXX15 320 Land and Land Rights 0 16 321 Structures and Improvements 0 17 322 Reactor Plant Equipment 0 18 323 Turbogenerator Units 0 19 324 Accessory Electric Equipment 0 20 325 Miscellaneous Power Plant Equipment 0 21 Total Nuclear Production 0 0 0 0 0 21 HYDRAULIC PRODUCTION XXX XXX XXX XXX XXX22 330 Land and Land Rights 0 23 331 Structures and Improvements 0 24 332 Reservoirs, Dams and Waterways 0 25 333 Water Wheels, Turbines and Generators 0 25 334 Accessory Electric Equipment 0 26 335 Miscellaneous Power Plant Equipment 0 27 336 Roads, Railroads and Bridges 0 28 Total Hydraulic Production 0 0 0 0 0 28 OTHER PRODUCTION XXX XXX XXX XXX XXX29 340.0 Land and Land Rights 0 30 341.0 Structures and Improvements 0 31 342.0 Fuel Holders, Producers and Accessories 0 32 343.0 Prime Movers 0 33 344.0 Generators 0 34 345 Accessory Electric Equipment 0 35 346 Miscellaneous Power Train Equipment 0 36 Total Other Production 0 0 0 0 0 36 TRANSMISSION PLANT XXX XXX XXX XXX XXX37 350 Land and Land Rights 75,369,156 964,855 1,542 76,335,553 38 352 Structures and Improvements 28,811,749 117,951 17,517 37,116 28,949,299 39 353 Station Equipment 340,583,165 6,880,149 993,197 3,182,412 349,652,529 40 354 Towers and Fixtures 229,692,225 14,262,905 55,829 1,038 243,900,339 41 355 Poles and Fixtures 87,434,731 4,703,723 628,740 444 91,510,158 42 356 Overhead Conductors and Devices 178,814,673 3,286,167 521,865 181,578,975 43 357 Underground Conduit 4,185,859 1 4,185,860 44 358 Underground Conductors and Devices 12,790,509 12,790,509 45 359 Roads and Trails 5,779,769 138,320 5,918,089 46 Total Transmission Plant 963,461,836 30,354,071 2,217,148 3,222,552 994,821,311 46 DISTRIBUTION PLANT XXX XXX XXX XXX XXX47 360 Land and Land Rights 64,229,312 2,804,737 3,349 298,189 67,328,889 43 361 Structures and Improvements 24,232,058 1,125,892 172,474 (37,116) 25,148,360 44 362 Station Equipment 234,533,087 7,677,517 324,729 (3,396,130) 238,489,745 45 363 Storage Battery Equipment 0 46 364 Poles, Towers and Fixtures 657,527,183 26,100,898 1,084,247 139,676 682,683,510 47 365 Overhead Conductors and Devices 510,039,345 17,313,280 3,343,544 139,676 524,148,757 48 366 Underground Conduit 110,788,868 5,129,258 21,729 (1,665) 115,894,732 49 367 Underground Conductors and Devices 275,920,927 15,853,527 288,675 (20,069) 291,465,710 50 368 Line Transformers 329,282,771 9,686,294 4,534,553 334,434,512 51 369 Services 451,260,966 24,051,916 268,885 475,043,997 52 370 Meters 227,474,968 20,542,722 1,270,518 (375,776) 246,371,396 53 371 Installations on Customers' Premises 5,281,026 257,642 28,455 5,510,213 54 372 Leased Property on Customers' Premises 0 55 373 Street Lighting and Signal Systems 75,512,405 3,221,630 130,424 78,603,611 56 Total Distribution Plant 2,966,082,916 133,765,313 11,471,582 (3,253,215) 3,085,123,432 56 GENERAL PLANT XXX XXX XXX XXX XXX57 389 Land and Land Rights 9,315,555 40,677 9,274,878 58 390 Structures and Improvements 233,505,508 3,911,818 2,330,156 (460,329) 234,626,841 59 391 Office Furniture and Equipment 52,201,577 254,413 457,773 51,998,217 60 392 Transportation Equipment 101,903 101,903 61 393 Stores Equipment 3,388,278 187,767 3,200,511 62 394 Tools, Shop and Garage Equipment 18,951,331 430,317 321,995 (220,515) 18,839,138 63 395 Laboratory Equipment 1,515,760 195,425 375,776 1,696,111 64 396 Power Operated Equipment 0 65 397 Communication Equipment 9,419,870 279,295 9,140,575 66 398 Miscellaneous Equipment 2,827,136 15,231 129,294 (333,944) 2,379,129 67 399 Other Tangible Property 0 68 Total General Plant 331,226,918 4,611,779 3,942,382 (639,012) 331,257,303

Total Plant in Service 4,282,568,941 168,733,352 17,631,112 (669,675) 4,433,001,506

Footnotes for Schedule 205:(A) The above amounts include balances from accounts 101 and 106, and are reported here as reported to FERC.

(B) Amounts in col. (e), Adjustments, represent transfers between utility plant accounts and transfers to other accounts.Transfers to other accounts include:

Transfer from Future Use to Utility Plant $300,422 Transfer to Generation (680,845)Miscellaneous Adjustment 44,692

($335,731)

Annual Report of: PPL Electric Utilities Corp. Year Ended December 31, 2004 (Company Name)

206. ACCUMULATED DEPRECIATION OF UTILITY PLANT -Account Nos. 108, 110, 111, 115 and 119

1. Report below an analysis of the changes in accumulated depreciation during the year and the amounts applicable to prescribed functional classifications. 2. Explain and give particulars of important adjustments during the year.

101 104 105 107.0Utility Utility Plant Property Held Construction

Plant In Leased to for Work InLine Item Total Service Others Future Use ProgressNo. (a) (b) (c) (d) (e) (f)1 Balance Beginning of Year 1,626,785,189 1,626,785,189 2 Credits During Year XXXXX XXXXX XXXXX XXXXX XXXXX3 Depreciation Provisions charged to: XXXXX XXXXX XXXXX XXXXX XXXXX4 403. Depreciation 102,730,402 102,730,402 5 412. Revenues from Utility Plant Leased to Others 0 6 Transportation Expenses - Clearing 508,030 508,030 7 Other Clearing Accounts 106,453 106,453 8 0 9 0

10 103,344,885 103,344,885 0 0 0 11 Recoveries from Insurance 0 12 Salvage Realized from Retirements 1,453,044 1,453,044 13 Other Credits (Describe)14 Reserve Adjustment 9,507 9,507 15 0 16 0 17 0 18 1,462,551 1,462,551 0 0 0 19 Total Credits 104,807,436 104,807,436 0 0 0 20 Debits During Year XXXXX XXXXX XXXXX XXXXX XXXXX21 Retirement of Utility Plant 17,220,818 17,220,818 22 Cost of Removal 13,097,592 13,097,592 23 Other Debits (Describe)24 0 25 0 26 0 27 0 28 Total Debits During Year 30,318,410 30,318,410 0 0 0 29 Balance at End of Year 1,701,274,215 1,701,274,215 0 0 0

Total Depreciation Provisions

Total Credits During Year


208. CONSTRUCTION WORK IN PROGRESS - Account No. 107

1. Describe the particulars concerning utility plant in process of construction but not ready for service at end of the Calendar Year.2. Describe separately each work order that exceeds the lesser of an estimated expenditure of $300,000 or 10% of the book cost of utility plant at the beginning of the year. All other work orders may be grouped by nature of project.

Estimate ProjectedDescription of Work Balance Total Cost of In-Service

Line End of Year Construction DateNo. (a) (b) (c) (d)1 601548 G.O.replace Elevator Drives 133,145 300,000 6/30/20052 601676 PANSC-Replace yard paving 4,389 300,000 8/31/20053 601701 QUA SC paving replacement 331,162 300,000 1/7/20054 170992 ORWGSBRG SUB-INC CAP,CONV TWNA 21,832 305,171 11/30/20055 288500 2005-OH FAILED EQ-VOLT CONTRL 10,761 310,000 1/1/20056 201603 Lake Harmony Sub - New 12v OH 632 312,800 11/30/20087 201739 QUARRYVILLE 56-2-RECON #2 CU 17,986 321,550 5/31/20068 201754 MCMICHAELS SUB-NEW L&T-OH LN 32,624 321,745 11/30/20059 201721 HEGINS 58-01 12KV LN-RECDUTR 55,992 327,405 5/31/200510 201777 MT POC SUB-REC 64-1 12KV PRT2 97,349 332,755 5/10/200511 250386 PENNDOT SR0924-001 LUZERNE CO 11,429 360,280 3/1/200612 170684 DALMATIA 69-12KV SUB-ADDL 12KV 11,346 365,300 11/30/200813 201703 McGOVERNVILLE SUB-12KV LN-OH 39,661 368,385 11/30/200514 181116 ALLENTOWN SUB-REPL SCADA 87,858 384,387 5/6/200515 201774 MT POC SUB-REC 64-1 12KV OH LN 44,430 389,785 5/31/200516 201766 MONTGOMERY SUB-REL/EXT 69-1 LN 2,632 390,460 5/31/200717 312502 lake Harmony Sub - New 12kv UG 449 422,300 11/30/200818 201701 NEW SUB-HIGHRIDGE IND PK-DIST 14,486 427,556 11/30/200519 288700 2005-RELIAB PRES-PRIMARY RELB 36,999 429,000 1/1/200520 161576 NEW SUB HIGHRDGE IND PK-TAP LN 58,722 432,500 11/30/200521 201805 TWN LKS SUB-RPL POND EDDY PT2 831 441,785 11/30/200922 201758 MT NEBO-BUILD 12KV TIE TO BUCK 52,165 442,126 9/8/200523 142500 Sunbury 230/69 Sub Rpl T22&T23 71,143 448,936 5/31/200624 248000 2005-ST LTG-OH FED 20,424 450,000 1/1/200525 170965 MT JOY SUB INCREASE XFMR 30,241 462,603 5/31/200526 201699 NEW TWIN A SUBSTION 56,244 472,970 5/31/200527 201782 WARWICK-RECON 76-5 12KV LINE 4,829 490,585 11/30/200628 313109 HEMLOCK FARMS URD RECONDR 5,463 492,225 8/31/200529 201781 TANNRSVLLE SUB-RECOND 57-1 LN 21,573 499,470 11/30/200530 201646 MT. ALLEN SUB ADD 1 LINE -OH 24,035 510,952 11/30/200531 112176 SUSQ 500-230KV-RPL RELAY CABS - 511,150 4/1/199932 201738 WARWICK-RECON 76-5 12KV LINE 40,637 516,940 11/30/200533 201734 TERRE HILL 12KV LINE-OH 445 519,640 11/30/200934 348000 2005-UPGR SVC CAP CSO 67,823 526,000 1/1/200535 201717 N COLUMBIA/WRIGHTSVILLE-OH 3,480 528,650 5/31/200636 248100 2004-AREA LTG OH 28,235 560,000 1/1/200537 288400 2005-FAILED SECTIONALIZING 24,571 560,000 1/1/200538 181130 RPL WINDINGS FAILED TRANS 5,888 560,200 5/31/200539 201577 Richland Split 36-4 line-OH 291,238 584,070 5/2/200540 201775 MCMICHAELS SUB-NEW L&T-OH PAC 15,098 591,725 11/30/200541 170766 ELIZABETHTWN SUB-INCR XFMR CAP 44,516 619,882 5/31/200542 170955 REPL TRANSF#5 AT S. AKR 516,177 691,611 3/10/200643 201759 ATGLEN SUB-NEW L&T-LN OH 16,544 693,625 11/30/200944 268100 2005 CAP BLKT-SYSTEM 17,020 700,000 1/1/200545 248300 2005-RMV UNUSED FAC 14,938 717,000 1/1/200546 287000 2005-FOREIGN UTIL-SYSTEM (38,609) 780,000 1/1/200547 180063 SYS-PUR 69/12KV XFMRS-2004 267,303 800,000 12/31/200448 248200 2005-UPGRADE EXIST SVC CAP 42,434 861,000 1/1/200549 170956 W HEMP 138KV SUB - INSL CAP BK 135,200 943,832 11/30/200550 368000 2005-ST LTG-UG FED 59,112 960,000 1/1/200551 288300 2005-OH FAILED EQ-POLES 66,566 971,000 1/1/200552 602400 2004 EU-OFFICE FURN PURHCASES 699,686 990,493 12/31/200453 319100 2005-UG FAILED EQ-SEC VOLT CAB 27,698 1,100,000 1/1/200554 170946 NEW SUB-HIGHRDGE IND PK 122,691 1,111,334 11/30/200555 201799 NEWFOUNDLAND SUB-REC 83-2 LN 7,490 1,190,410 11/30/200956 144023 SYS-PUR 230/69KV XFMR-2004 993,920 1,200,000 12/31/200457 278100 2005 OCR BLKT-SYSTEM 184,530 1,200,000 1/1/200558 318300 2005-RPL UG PRI CABLE AFTER TS 42,267 1,200,000 1/1/200559 288200 2005-OH FAILED EQUIP-GENERAL 39,998 1,287,000 1/1/200560 318100 2005-UG FAILED EQ-PRI VOL CABL 92,606 1,353,000 1/1/200561 318000 2005 UG FAILED EQUIP-GENERAL 126,493 1,373,000 1/1/200562 170944 HORSESHOE SUB-NEW TWIN A SUB 404,529 1,436,269 5/31/200563 140097 S.AKR-INSL 100MVAR 230KV CAP 130,645 1,483,135 5/31/200664 308300 2004-REV UG 113,515 1,529,000 1/1/200565 383000 2005-TRANSF-3PH SUB & PD MT (13,069) 1,574,000 1/1/200566 161446 W HEMP-S MAN TAP-PENN CAST-KEL 252,578 1,845,600 5/31/200567 601700 N-B 4th fl full renovation 161,394 2,100,000 6/30/200568 287900 2005-TRANSFORMERS-SEC VOLTAGES 11,457 2,132,000 1/1/200569 201718 N COLUMBIA/WRIGHTSVILLE BRDG 3,730 2,420,000 5/31/200670 110295 SBY 230-RPL WIRG-UPGD R&C/SCAD 2,057,884 2,788,608 8/30/200571 382000 2005-TRANSF-1PH SUB & PD MT 151,553 3,000,000 1/1/200572 258100 2005-REPL C-TAG POLE-SYSTEM 195,965 4,300,000 1/1/200573 249000 2005-CSO REV 222,000 4,780,000 1/1/200574 253000 2005 PA DOT HIGHWAY RELOC 2,848 4,895,000 10/18/200575 289100 2005-CUSTOMER RELOCATIONS 196,142 4,905,000 1/1/200576 381000 2005-TRANSF-OH LINE (203,025) 5,232,000 1/1/200577 380000 METERS 127,889 6,300,000 12/31/200478 308000 2005-REV UG 467,199 7,916,000 1/1/200579 349000 2005-CSO REV UG 812 10,946,000 1/1/200580 238000 2005-REV 858,385 20,410,000 1/1/200581 Independent Power Producers (IPP) projects82 168008 S AKRON 230 LN CONN TO IPP B35 60 315,500 5/31/20058384 The IPP will reimburse PPL Electric Utilities Corporation for most 85 of the cost of construction of the IPP Projects. The Balance End of 86 Year includes reimbursements billed. The Estimated Total Cost of 87 Construction reported in column (c) does not reflect reimbursements.8889 Other Projects90 Transmission Plant 1,236,899 91 Distribution Plant 9,128,170

92 General Plant 1,439,091 93 Accruals not identified by project 4,442,503 9495 26,645,981 128,322,705


210. INVESTMENTS (Accounts 123 - 123.1 - 124 - 136)

l. Report below investments in Accounts 123, Investments in Associated Companies 123.1, Investments in Subsidiary Companies, 124, Other Investments and 136, Temporary Cash Investments. 2. Provide a subheading for each account and list thereunder the information called for, observing the instructions below. 3. Investments in Securities - List and describe each security owned giving name of issuer. For bonds give also principal amount, date of issue, maturity, and interest rate. For capital stock state number of shares, class and series of stock. Minor investments may be grouped by classes. 4. Investment Advances - Report separately for each person or company the amounts of loans or investment advances which are subject to repayment but which are not subject to current settlement. With respect to each advance show whether the advance is a note or open account. Each note should be listed giving date of issuance, maturity date, and specifying whether note is a renewal. Designate any advances due from officers, directors, stockholders, or employees. 5. For any securities, notes, or accounts that were pledged, designate such securities acquired, designate such fact and in a footnote state the name of pledges and purpose of the pledge. 6. If Commission approval was required for any advance made or security acquired, designate such fact and in a footnote give date of authorization and case or docket number. 7. Interest and dividend revenues from investments should be reported in column (g), including such revenues from securities disposed of during the year. 8. In column (h) report for each investment disposed of during the year the gain or loss represented by the difference between cost of the investment (or the other amount at which carried in the books of account if different from cost) and the selling price therefor, not including any dividend or interest adjustment incredible in column (g).

Date Book Costs* Principal Book Cost Revenues Gain or LossDate of Beginning Amount or End For From Invest

Line Description of Investment Acquired Maturity of Year No. of Shares of Year Year Disposed ofNo. (a) (b) (c) (d) (e) (f) (g) (h)1 Investments in Subsidiary Companies, Acct 123.1:2 CEP Commerce, LLC 07/00 N/A 18,125 301,420,563 700,00034 Other Investments, Acct. 124:5 Allentown Economic Development-Note 07/95 07/05 49,936 24,9286 CAN-DO Inc.-Humboldt North Industrial Park-Note 05/02 05/12 396,260 396,2607 Carbon County EDC-Note 11/97 11/07 16,876 12,8158 Clinton County Economic Partnership Note 07/97 07/07 36,785 36,7859 Juniata Business & Industry-Note 07/97 07/07 234,400 210,461

10 Lehigh Valley Industrial Park-Note 07/99 07/03 232,010 40,38711 Mahanoy Area Joint Industrial Park-Note 08/71 08/01 12,390 012 Pike County Economic Development Corp.-Note 07/97 07/07 500,000 500,00013 Pocono Mountain Industries-Note 02/02 02/12 992,320 992,32014 Schuylkill Economic Development Corp.-Note 11/92 11/02 54,870 4,87015 Scranton Lackawanna Industrial Bld. Corp.-Note 01/02 01/12 1,000,000 815,18016 Union County Industrial Development Corp.-Note 06/96 02/06 428,572 142,82117 Miscellaneous Advances Various Various 5,404 8,1101819 Temporary Cash Investments, Acct. 136:20 Short Term Investments (1) Various N/A 157,350,000 129,275,478 1,337,901212223242526 Totals 161,327,948 0 433,880,978 2,037,901 0

* If book cost is different from cost to respondent, give cost to respondent in a footnote and explain difference.

(1): Money Market accounts fluctuate daily and have maintaned a net asset value of one unit.


211. NOTES AND OTHER ACCOUNTS RECEIVABLE (Accounts 141, and 143)

If interest was derived during year from notes liquidated before the end of the year, include such interest revenue in column (d).

Notes Receivable Other AccountsInterest Receivable

Line Item 1/1/____ 12/31/____ Revenue 1/1/2004____ 12/31/2004____No. (a) (b) (c) (d) (e) (f)1 Income tax receivable related to 1991-1995 IRS refund Claim 35,495,368 86,565 2 Miscellaneous billings and other 3,484,990 4,362,650 3 Property damage claims 2,618,548 3,604,041 4 Pennsylvania tax credits 23,704,358 3,814,552 567 Total 0 0 0 65,303,264 11,867,808

212. NOTES RECEIVABLE FROM ASSOCIATED COMPANIES (Account 145) 1. Furnish below the particulars indicated concerning notes receivable from associated companies at end of year. 2. If any note was received in satisfaction of an open account indebtedness, state the period covered by such open account. 3. Include in column (f) the amount of any interest revenue during the year on notes that were paid off before the end of year. 4. Give particulars of any notes pledged or discounted. This schedule shall include all transactions during the year with each affiliated interest affecting account 145 and account 233.

Name of Date of Date of Amount End InterestLine Associated Company Issue Maturity of Year Rate AmountNo. (a) (b) (c) (d) (e) (f)1 NONE2345678


213. ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES (ACCOUNT 146) AND ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES (ACCOUNT 234)

1. Furnish below the particulars called for concerning Account Receivables and Payables from Associated Companies.2. The term "Services Received" set forth on line 21 of this schedule means the Management, Construction, Engineering, Pur- chasing Legal, Accounting or other similar service which has been rendered to respondent under written, oral or implied contracts.3. The term "Joint Expenses Transferred" set forth on lines 6 and 22 means Central office and/or other expenses continuously assessed against respondent covering all locations of common operating costs.4. This schedule shall include all transactions during the year with each affiliated interest affecting Account 146.

Entries During YearLine ItemNo. (a) (b)1 2 Cash Dispensed 1,470,774,3763 Fuel Sold - NUG Contracts 153,622,4444 Services Rendered 43,620,4275 Joint Expense Transferred6 Interest and Dividends Receivable7 Rents Receivable 16,615,7678 Securities Sold9 Other Debits (Specify)

10 Affiliate invoices processed through accounts payable 27,095,60611 Equipment leases 16,885,49912 Transportation charges 6,778,15013 Allocation of funding and claim payment cash activity 3,698,05614 Reimbursement for postretirement benefits 11,531,53215 16 Total Debits During Year 1,750,621,85717 18 Credits During Year19 Cash Received (36,457,495)20 Gas Purchased21 Fuel Purchased - PLR Contract (1,469,294,427)22 Materials and Supplies Purchased23 Services Received (54,147,455)24 Joint Expense Transferred (69,453,633)25 Interest and Dividends Payable26 Rents Payable27 Securities Purchased28 Transferred to Account "145"29 Other Credits (Specify)30 Balance at beginning of year 1/01/04 (63,469,565)31 Margin call on PLR contract (758,120)32 Decommissioning recovery transfer to affiliate (18,836,652)33 IRS tax settlement (3,484,703)34 FAS 109 Tax true-up (20,081,308)35 Payroll Tax Liability (68,870,077)36 Allocation of medical, dental, and other insurance costs (26,401,219)37 EZ Settlement - Employee expenses (6,792,166)38 PJM Interchange Activity (59,004,455)39 Other - net (5,562,422)40 Total Credits During Year (1,902,613,697)41 Balance at End of Year (151,991,840)Footnote:See page 15, Notes to Balance Sheet, footnote for line 15, for further information on the $300,000,000 performanceassurance deposit from PPL EnergyPlus, which is reflected on the balance sheet in account 242, MiscellaneousCurrent and Accrued Liabilities.

Debits During Year


215. PLANT MATERIALS AND OPERATING SUPPLIES (Account 154)

1. Summarize below by character of materials and supplies, the balances in account 154 at the beginning and end of the year.2. Account entries totaling $300,000 or 1% of gross revenues, (whichever is less), during the year shall be explained, showing the class of materials affected and the various classes of accounts (operating expenses, clearing accounts, plant accounts, etc.) debited or credited.

Balance Balance Classification of Beginning End Increase

Line Materials And Supplies of Year of Year /DecreaseNo. (a) (b) (c) (d)1 Assigned to Construction (Estimated) 35,330 38,545 3,215 2 Assigned to Operations & Maintenance: - 3 Transmission Plant (Estimated) 8,749,156 13,215,437 4,466,281 4 Distribution Plant (Estimated) 15,461,805 12,818,974 (2,642,831)5 Assigned to - Other 989,232 1,459,205 469,973 6 - 7 - 8 - 9 -

10 - 11 - 12 - 13 - 14 - 15 - 16 - 17 Total 25,235,523 27,532,161 2,296,638


216. UNAMORTIZED DEBT DISCOUNT AND EXPENSE AND UNAMORTIZED PREMIUM ON DEBT (Accounts 181, 225, 226)1. Report under separate subheadings for Unamortized Debt Discount and Unamortized Premium on Debt, particulars of discount and expense or premium applicable to each class and series of long-term debt.2. Show premium amounts in red or by enclosure in parenthesis3. In column (b) show the principal amount of bonds or other long-term debt originally issued.4. In column (c) show the discount and expense or premium with respect to the amount of bonds or other long-term debt originally issued.5. Furnish particulars regarding the treatment of unamortized debt discount and expense or premium, redemption premium, and redemption expenses associated with issues redeemed during the year, also, date of the Commission’s authorization of treatment other than by debit or credit to Surplus.6. Set out separately and identify amounts applicable to issues which have been redeemed, although those amounts, prior to the effective date of the Uniform System of Accounts may have prior to the effective date of the Uniform System of Accounts may have been combined with the discount and expense on the refunding issue.7. Explain any debits and credits other than amortization debited to Account 428, Amortization of Debt Discount and Expense, or credited to Account 429, Amortization of Premium on Debt.

AMOUNT OFSECURITIES TOTALTO WHICH DISCOUNTDISCOUNT AND EXPENSE Balance Debits Credits Balance

Designation OR PREMIUM OR NET Amortization Period Beginning During During EndLine of Long-Term Debt RELATES PREMIUM From To of Year Year Year of YearNo. (a) (b) (c) (d) (e) (f) (g) (h) (i)1 First Mortgage Bonds2 6-7/8% series due 2004 150,000,000 202,172 (e) 1994 2004 585 585 03 1,888,500 (d) 5,239 5,239 04 6-1/2% series due 2005 125,000,000 109,199 (e) 1993 2005 10,600 9,268 1,3325 2,045,000 (d) 188,498 164,805 23,6936 6.55% series due 2006 150,000,000 205,300 (e) 1994 2006 36,545 16,910 19,6357 1,345,500 (d) 236,455 109,409 127,0468 7.70% series due 2009 200,000,000 156,264 (e) 1995 2009 94 16 789 1,250,000 (d) 0 0 010 7-3/8% series due 2014 100,000,000 144,440 (e) 1994 2014 7,764 765 6,99911 1,655,000 (d) 86,845 8,556 78,28912 7.30% series due 2024 150,000,000 172,800 (e) 1994 2024 4,579 4,579 013 2,037,000 (d) 53,001 53,001 014 Senior Secured Bonds15 5.875% series due 2007 300,000,000 3,797,714 (e) 2001 2007 2,667,212 1,028,132 1,639,08016 1,856,021 (d) 1,132,701 436,623 696,07817 6.25% series due 2009 500,000,000 6,454,524 (e) 2001 2009 5,262,582 1,060,689 4,201,89318 2,143,776 (d) 1,519,437 305,991 1,213,44619 4.30% series due 2013 100,000,000 849,971 (e) 2003 2013 798,008 84,904 713,10420 548,000 (d) 514,797 54,740 460,05721 Pollution Control Bonds22 5.50% series I due 2027 53,250,000 496,730 (e) 1994 2027 366,754 19,878 346,87623 998,438 (d) 699,751 30,316 669,43524 6.40% series J due 2029 115,500,000 1,186,848 (e) 1995 2029 1,148,835 22,917 105,199 1,066,55325 990,990 (d) 726,850 28,367 698,48326 6.15% series K due 2029 55,000,000 808,184 (e) 1996 2029 609,215 23,860 585,35527 870,650 (d) 655,143 25,659 629,48428 3.125% series due 2008 90,000,000 2,810,269 (e) 2003 2008 2,373,910 491,710 1,882,20029 (d) 0 0 030 Transition Bonds31 6.83% series due 2005 313,000,000 2,020,585 (e) 1999 2005 243,354 235,330 8,02432 106,764 (d) 12,936 12,509 42733 6.96% series due 2005 223,000,000 1,648,627 (e) 1999 2005 438,966 273,240 165,72634 40,051 (d) 10,737 6,684 4,05335 7.05% series due 2007 455,000,000 4,057,232 (e) 1999 2007 1,579,065 558,720 1,020,34536 23,160 (d) 9,061 3,204 5,85737 7.15% series due 2008 454,000,000 4,691,336 (e) 1999 2008 2,319,485 533,160 1,786,32538 26,831 (d) 13,362 3,072 10,29039 Pollution Control Revenue Bonds 9,475,000 110,606 (e) 1997 2027 86,363 3,696 82,66740 Total 3,543,225,000 47,748,482 23,818,729 22,917 5,698,816 18,142,830

expense and discount were charged to Account 189, Unamortized Loss on Reacquired Debt. The amount charged to Account 189 will be amortized over the remaining life of the original bonds.

Unamortized Loss on Reacquired Debt. The amount charged to Account 189 will be amortized over the remaining life of the original bonds.

charged to Account 189, Unamortized Loss on Reacquired Debt. The amount charged to Account 189 will be amortized over the remaining life of the original bonds.

expense and discount were charged to Account 189, Unamortized Loss on Reacquired Debt. The amount charged to Account 189 will be amortized over the remaining life of the original bonds.

PRINCIPAL AMOUNT

Line 4: During the period of April 12, 2004, through April 20, 2004, an aggregate of, $40,566,000 of the 6.50% series First Mortgage Bonds were repurchased. The unamortized debt

Line 12: On March 1, 2004, $5,805,000 of the 7.30% series First Mortgage Bonds were repurchased. The unamortized debt expense and discount were charged to Account 189,

Line 15: On May 3 and 4, 2004, an aggregate of $45,134,000 of the 5.875% series Senior Secured Bonds were repurchased. The unamortized debt expense and discount were

Line 17: During the period of April 20, 2004, through May 5, 2004, an aggregate of $14,215,000 of the 6.250% series Senior Secured Bonds were repurchased. The unamortized debt


217. EXTRAORDINARY PROPERTY LOSSES (Account 182) 1. Report below the information indicated concerning this account, grouping the items by departments, and showing totals for each department. 2. Include in the description the date property was abandoned or other extraordinary loss incurred.

AmortizationComm. Period Written off During Year

Description of Property Auth. (Give Years Only) Total Amount Previously Account Balances AtLine Loss Or Damage No. From To of Loss Written off Charged Amount End of YearNo. (a) (b) (c) (d) (e) (f) (g) (h) (i)1 NONE2 3 4 5 6 7 8 7 8910111213141516171819202122232425262728293031323334353637


231. LONG-TERM DEBT (Accounts 221,222,224)(Excluding Advances from Affiliated Companies)

1. Give below the particulars indicated of the long-term debt at end of year represented by unmatured obligations issued or assumed by the respondent, exclusive of advances from affiliated companies.2. Group entries according to accounts and show the total for each account.3. For obligations assumed by the respondent show in column (a) the name of the issuing company and the class and series of such obligations.4. For Receivers' Certificates show the name of the court and date of court order under which such certificates were issued.5. If respondent has pledged any of its long-term debt securities give particulars in a footnote, including name of the pledge name of the pledge and purpose of pledge.6. If interest expense was incurred during the year on any obligations retired or reacquired before end of year include such interest expense in column (g).7. If interest was matured but unpaid on any obligation, state in a footnote the class and series and principal amount of such obligation and the amount of interest matured thereon.

Nominal Date Principal Outstanding Interest For Year Held By RespondentClass and Series of Date of of Amount Per Balance As Reacquired. In Sinking &

Line Obligations Issue Maturity Authorized Sheet Rate Amount Lg.-Term Debt Other FundsNo. (a) (b) (c) (d) (e) (f) (g) (h) (i)1 First Mortgage Bonds2 6-7/8% series due 2004 3-1-94 3-1-04 150,000,000 0 6-7/8% 283,789 3 6-1/2% series due 2005 4-1-93 4-1-05 125,000,000 69,434,000 6-1/2% 5,269,530 4 6.55% series due 2006 3-1-94 3-1-06 150,000,000 146,000,000 6.55% 9,563,000 5 7.70% series due 2009 10-1-94 10-1-09 200,000,000 325,000 7.70% 25,025 6 7-3/8% series due 2014 3-1-94 3-1-14 100,000,000 10,290,000 7-3/8% 758,888 7 7.30% series due 2024 3-1-94 3-1-24 150,000,000 0 7.30% 70,627 8 9 Senior Secured Bonds

10 5.875% series due 2007 8-1-01 8-15-07 300,000,000 254,866,000 5.875% 15,877,699 11 6.25% series due 2009 8-1-01 8-15-09 500,000,000 485,785,000 6.25% 30,650,491 12 4.30% series due 2013 5-23-03 6-1-13 100,000,000 100,000,000 4.30% 4,300,000 13 14 Pollution Control Bonds15 3.125% series due 2008 2-12-03 11-1-08 90,000,000 90,000,000 3.125% 2,812,500 16 5.50% series I due 2027 2-15-94 2-15-27 53,250,000 53,250,000 5.50% 2,928,750 17 6.40% series J due 2029 9-1-94 9-1-29 115,500,000 115,500,000 6.40% 7,392,000 18 6.15% series K due 2029 8-1-95 8-1-29 55,000,000 55,000,000 6.15% 3,382,500 19 20 Transition Bonds21 6.83% series due 2005 8-10-99 3-25-07 313,000,000 26,437,199 6.83% 12,417,994 22 6.96% series due 2005 8-10-99 12-25-07 223,000,000 223,000,000 6.96% 15,474,564 23 7.05% series due 2007 8-10-99 6-25-09 455,000,000 455,000,000 7.05% 31,981,944 24 7.15% series due 2008 8-10-99 12-25-09 454,000,000 454,000,000 7.15% 32,364,304 25 26 Pollution Control Revenue Bonds 6-4-97 6-1-27 9,475,000 9,475,000 2.00% 121,956 27 28 29 30 31 32 33 34 35 TOTAL 3,543,225,000 2,548,362,199 175,675,561 0 0

*Total amount outstanding without reduction for amount held by respondent.

Annual Report of: PPL Electric Utilities Corp. Year Ended December 31, 2004 400. INCOME STATEMENTREVENUES AND EXPENSES

to Shopping Customers & POLR Customers that are subject to PA GRT.Schedule Total Total

Page End of End of Increase/Line Account Number and Title No. Current Year Prior Year DecreaseNo. (a) (b) (c) (d) (e)1 SALES OF ELECTRICITY2 440 Residential Sales 600 1,120,503,040 1,111,723,993 8,779,047 3 442 Commercial and Industrial Sales*4 Small (or Comm.) 600 961,286,696 909,964,979 51,321,717 5 Large (or Ind.) 600 532,562,687 514,099,127 18,463,560 6 444 Public Street and Highway Lighting 600 18,937,694 18,886,381 51,313 7 445 Other Sales to Public Authorities 501 45,127 68,871 (23,744)8 446 Sales to Railroads and Railways 600 5,125,424 4,340,856 784,568 9 448 Interdepartmental Sales 600 0 0 0 10 TOTAL SALES OF ELECTRICITY TO ULTIMATE CONSUMERS 2,638,460,668 2,559,084,207 79,376,461 11 447 Sales for Resale 157,501,296 179,965,904 (22,464,608)12 TOTAL SALES OF ELECTRICITY 2,795,961,964 2,739,050,111 56,911,853 13 (Less) 449.1 Provision for Rate Refunds 0 0 0 14 TOTAL REVENUES NET OF PROV. FOR REFUNDS 2,795,961,964 2,739,050,111 56,911,853 15 OTHER OPERATING REVENUES16 450 Forfeited Discounts 600 8,142,073 7,716,704 425,369 17 451 Miscellaneous Service Revenues 600 (24,065) (125,344) 101,279 18 453 Sales of Water and Water Power 0 0 0 19 454 Rent from Electric Property 21,067,251 18,989,240 2,078,011 20 455 Interdepartmental Rents 0 0 0 21 456 Other Electric Revenues 20,388,756 21,131,252 (742,496)22 TOTAL OTHER OPERATING REVENUES 49,574,015 47,711,852 1,862,163 232425 TOTAL REVENUES 2,845,535,979 2,786,761,963 58,774,016 26272829303132 Footnote for line 3, col. (a): In general, sales to customers engaged in wholesale or retail trade, the professions, finance, real estate, insurance or33 providing services to the public are classified as commercial and sales to customers engaged in manufacturing, mining or processing are34 classified as industrial.3536 Footnote for line 11, col. (c): Included in column (c) are wholesale revenues of $153,622,444 from sales to PPL EnergyPlus. PPL Electric purchases37 electricity from NUGS at contractual rates and then sells the electricity to PPL EnergyPlus at the same price.3839 Footnote for line 11, col. (d): Included in column (d) are wholesale revenues of $152,490,101 from sales to PPL EnergyPlus. PPL Electric purchases40 electricity from NUGS at contractual rates and then sells the electricity to PPL EnergyPlus at the same price.4142 Footnote for line 17, col. (c): The balance reflects a minor adjustment to Account 185 - (Temporary Facilities) that was charged to43 Account 451 - (Misc. Services Revenues).4445 Footnote for line 17, col. (d): The balance reflects a minor adjustment to Account 185 - (Temporary Facilities) that was charged to46 Account 451 - (Misc. Services Revenues).4748 Footnote for lines 2, 4, 5, 6, 7 and 8, col. (c) and (d): Includes unbilled revenues.4950515253

Special Instructions for Schedule 400 - Income Statement - should include all revenues from the sale of electricity, i.e., distribution, transmission, transition & POLR charges, including STAS. Line 10 "Total Sales to Ultimate Consumers" relates to revenue for volumes sold and delivered

*Notes: Commercial and industrial Sales, Account 442, may be classified according to the basis of classification (Small or Commercial, and Large or Industrial) regularly used by the respondent if such basis of classification is not generally greater than 1000 Kw of demand. (See Account 442 of the Uniform System of Accounts. Explain basis of classification in a footnote.) Also, provide details of important changes during the year and footnote by account whether unbilled revenue or unmetered sales are included.


400. INCOME STATEMENTREVENUES AND EXPENSES

Balances at Beginning of Year must be consistent with balances at end of previous year Schedule Total Total

Page End of End of Increase/Line Account Number and Title No. Current Year Prior Year DecreaseNo. (a) (b) (c) (d) (e)1 OPERATING EXPENSES2 401 Operation Expenses 1,987,500,740 1,935,072,412 52,428,328 3 402 Maintenance Expenses 73,997,904 66,997,036 7,000,868 4 403 Depreciation Expenses 102,730,403 97,517,295 5,213,108 5 404.1 Amort. Of Limited-Term Electric Plant 4,409,787 5,018,046 (608,259)6 405.0 Amortization of Other Electric Plant 69,010 69,010 0 7 406.0 Amortization of Electric Plant Acquisition Adjustments 0 0 0 8 407.0 Amort. Of Prop. Losses, Unrec. Plant & Reg. Study C. 0 0 0 9 407.3 Regulatory Debits 260,175,370 259,962,844 212,526 10 407.4 Regulatory Credits 0 0 0 11 408.1 Taxes Other Than Income Taxes, Utility Opr. Income 408 157,586,656 170,706,894 (13,120,238)12 409.1 Income Taxes, Utility Operating Income 409 (74,849,999) (1,445,028) (73,404,971)13 410.1 Provision for Deferred Income Taxes, Ut. Opr. Income 411 85,715,565 43,945,178 41,770,387 14 411.1 Prov. For Def. Income Taxes-Credit, Ut. Opr. Income 412 (156,435) (24,514,543) 24,358,108 15 411.4 Investment Tax Credit Adjustments, Ut. Operations (2,744,913) (2,768,185) 23,272 16 411.6 Gains from Disposition of Utility Plant 0 (19,095) 19,095 17 411.7 Losses from Disp. of Utility Plant 0 0 0 18 411.8 Gains from Disposition of Allowances 0 0 0 19 411.9 Losses from Disposition of Allowances 0 0 0 20 Total Utility Operating Expenses 2,594,434,088 2,550,541,864 43,892,224 22 OTHER OPERATING INCOME23 412.0 Revenues from Electric Plant Leased to Others 0 0 0 24 413.0 Expenses of Electric Plant Leased to Others 0 0 0 25 414.0 Other Utility Operating Income 0 0 0 26 Total Utility Other Operating Income 0 0 0 27 OTHER INCOME28 415.0 Rev. from Merchandising, Jobbing and Contract Work 1,269,014 1,691,138 (422,124)29 416.0 Costs and Exp. of Merchandising Jobbing & Contract Wk (1,083,184) (1,488,024) 404,840 30 417.0 Revenue from Non-Utility Operations 0 0 0 32 417.1 Expenses of Non-Utility Operations 0 0 0 33 418.0 Non Operating Rental Income (42,075) (44,644) 2,569 34 418.1 Equity in Earnings of Subsidiary Companies 2,102,438 (348) 2,102,786 35 419.0 Interest & Dividend Income 12,842,381 6,932,897 5,909,484 36 419.1 Allowance for Other Funds Used During Construction 305,294 187,994 117,300 37 421.0 Miscellaneous Non Operating Income 423,535 417,017 6,518 38 421.1 Gain on Disposition of Property 0 8,452 (8,452)39 Total Other Income 15,817,403 7,704,482 8,112,921 40 OTHER INCOME DEDUCTIONS41 421.2 Loss on Disposition of Property 125,924 2,635 123,289 42 425.0 Miscellaneous Amortization 0 0 0 43 426.1 Donations 241,090 260,405 (19,315)44 426.2 Life Insurance 0 0 0 45 426.3 Penalties 812 2,255 (1,443)46 426.4 Exp. for Certain Civic, Political & Related Activities 0 0 0 47 426.5 Other Deductions 1,148,463 1,084,553 63,910 48 Total Other Income Deductions 1,516,289 1,349,848 166,441 49 TAXES APPLICABLE TO OTHER INCOME & DED.50 408.2 Taxes Other Than Income Taxes, Otr. Income & Ded. 85,305 132,752 (47,447)51 409.2 Income Taxes, Other Income & Deductions (706,963) 2,250,250 (2,957,213)52 409.3 Income Taxes, Extraordinary Items 0 0 0 53 410.2 Prov. for Def. Income Taxes, Otr Income & Ded. 363,666 922,834 (559,168)54 411.2 Prov. for Def. Income Taxes, Credit, Otr Income & Ded. (682,142) (890,548) 208,406 55 411.5 Investment Tax Cr. Adjustments, Nonutility Operations 0 0 0 56 420.0 Investment Tax Credits 0 0 0 57 Total Taxes on Other Income and Deductions (940,134) 2,415,288 (3,355,422)58 Net Other Income and Deductions 15,241,248 3,939,346 11,301,902


400. INCOME STATEMENT REVENUES AND EXPENSES

Balances at Beginning of Year must be consistent with balances at end of previous year Schedule Total Total

Page End of End of Increase/Line Account Number and Title No. Current Year Prior Year DecreaseNo. (a) (b) (c) (d) (e)1 INTEREST CHARGES2 427 Interest on Long-Term Debt 175,675,561 201,478,505 (25,802,944)3 428 Amortization of Debt Discount and Expense 7,173,134 7,934,627 (761,493)4 428.1 Amortization of Loss on Reacquired Debt 3,117,040 2,446,660 670,380 5 429 Amortization of Premium on Debt-Credit 0 0 0 6 429.1 Amortization of Gain on Reacquired Debt-Credit 0 0 0 7 430 Interest on Debt to Associated Companies 2,875,532 706 2,874,826 8 431 Other Interest Expense 1,174,385 551,397 622,988 9 432 Allowance for Borrowed Funds Used During Construction-Cr (571,148) (683,529) 112,381

10 Net Interest Charges 189,444,504 211,728,366 (22,283,862)11 EXTRAORDINARY ITEMS12 434 Extraordinary Income 0 0 13 435 Extraordinary Deductions 0 0 14 409.3 Income Taxes-Extraordinary Items 0 0 15 Net Income 76,898,635 28,431,079 48,467,556 1617 Footnotes: col. (c) and col. (d)1819 These accounts include the following amounts associated with transition bonds issued to securitize the recovery of retail stranded costs,20 pursuant to an Order entered by the Pennsylvania Public Utility Commission on May 21, 1999, at Docket No. R-00994637, in21 accordance with Pennsylvania's Electricity Generation Customer Choice and Competition Act, for 2004 and 2003:22 Total Total23 End of End of24 Current Year Prior Year25 (c) (d)26 Page No. Line No. Account No. 12/31/2004 12/31/200327 26 25 400 $ 349,707,183 $ 367,069,204 28 27 2 401/923 440,321 567,704 29 27 9 407.3 253,733,035 252,965,487 30 27 11 408.1 34,848 39,000 31 27 12 409.1 70,867 (43,996)32 27 12 409.1 22,041 (13,521)33 27 35 419 171,571 142,138 34 27 50 408.2 1,574 38,977 35 28 2 427 92,238,806 110,035,656 36 28 3 428 1,625,919 1,982,336


402. ELECTRIC OPERATING REVENUES (Account 400)

Identify POLR transmission revenues in a footnote.Revenues Revenues Kilowatt Hours Average Number Average Number

for for Sold of Customers of CustomersTitle of Account Current Year Previous Year (kWh) for for

Current Year Previous Year Current Year Previous YearDistribution Sales:

440 Residential Sales - See Footnote (2) 482,836,166 490,207,630 13,556,544,000 13,350,039,000 1,176,316 1,154,911442 Commercial and Industrial Sales*

Small (or Comm.) - See Footnotes (1) & (2) 334,505,674 328,257,098 12,734,656,000 12,343,602,000 161,761 156,213Large (or Ind.) - See Footnote (2) 144,783,433 146,999,968 9,666,097,000 9,573,195,000 4,969 4,910

444 Public Street and Highway Lighting - See Footnote (2) 14,829,281 14,912,854 86,291,000 89,896,000 1,314 1,276445 Other Sales to Public Authorities - See Footnote (2) 17,123 27,298 537,000 816,000 12 16446 Sales to Railroads and Railways - See Footnote (2) 2,828,573 2,383,914 68,280,000 59,922,000 1 1448 Indepartmental Sales 0 0 0 0 0 0

979,800,250 982,788,762 36,112,405,000 35,417,470,000 1,344,373 1,317,327

Sales of Electricity:Provider of Last Resort - Energy sales exclusive of Distribution:

440 Residential Sales - See Footnotes (2) & (3) 637,666,874 621,516,363 13,539,496,000 13,330,312,000 1,174,695 1,153,081442 Commercial and Industrial Sales*

Small (or Comm.) - See Footnotes (1), (2) & (3) 626,781,022 581,707,881 12,169,632,000 11,242,573,000 160,677 154,066Large (or Ind.) - See Footnotes (2) & (3) 387,779,254 367,099,159 9,254,992,000 8,912,375,000 4,792 4,650

444 Public Street and Highway Lighting - See Footnotes (2) & (3) 4,108,413 3,973,527 86,291,000 89,021,000 1,314 1,270445 Other Sales to Public Authorities - See Footnotes (2) & (3) 28,004 41,573 537,000 816,000 12 16446 Sales to Railroads and Railways - See Footnotes (2) & (3) 2,296,851 1,956,942 68,280,000 59,922,000 1 1448 Indepartmental Sales 0 0

TOTAL POLR SALES TO ULTIMATE CONSUMERS 1,658,660,418 1,576,295,445 35,119,228,000 33,635,019,000 1,341,491 1,313,084

Footnote (1): In general, sales to customers engaged in wholesale or retail trade, the professions, finance, real estate, insurance or providing services to the publicare classified as commercial, and sales to customers engaged in manufacturing, mining or processing are classified as industrial.

Footnote (2): Includes unbilled revenues and sales.

Footnote (3): POLR Transmission Revenues:440 Residential 49,607,919 48,902,213 442 Small (or Comm.) 54,145,372 50,702,913 442 Large (or Ind.) 33,250,510 32,185,480 444 Public Street & Highway 285,184 279,761 445 other Sales to Public Authorities 3,116 4,750 446 Railroads & Railways (51,286) (40,009) Due to a reduction in energy usage, the customer's credit for non-utilization of high

Special Instructions for Schedule 402 - Electric Operating Revenues - contains two separate components for reporting: (1) "Distribution Sales" includes all distribution, transition and transmission (if applicable) tariff charges, including STAS. (2) "POLR" includes all POLR sales (kWh) and revenues from generation & transmission (if applicable) tariff charges, including STAS.

TOTAL ELECTRIC DISTRIBUTION SALES TO ULTIMATE CONSUMERS

*Notes: Commercial and industrial Sales, Account 442, may be classified according to the basis of classification (Small or Commercial, and Large or Industrial) regularly used by the respondent if such basis of classification is not generally greater than 1000 Kw of demand. (See Account 442 of the Uniform System of Accounts. Explain basis of classification in a footnote.) Also, provide details of important changes during the year and footnote by account whether unbilled revenue or unmetered sales are included.

voltage facilities exceeded the transmission charge.


405. OPERATION AND MAINTENANCE EXPENSESBalances at Beginning of Year must be consistent with balances at end of previous year

Schedule Balance BalancePage Current Previous Increase/

Line Account Number and Title No. Year Year DecreaseNo. (a) (b) (c) (d) (e)### POWER ELECTRIC PRODUCTION EXPENSES XXX XXX XXX### Steam Power Generation### Operation### 500.0 Operation Supervision and Engineering 0 0 0 ### 501.0 Fuel 0 0 0 ### 502.0 Steam Expenses 0 0 0 ### 503.0 Steam from Other Sources 0 0 0

8 504.0 Steam Transferred-Credit 0 0 0 9 505.0 Electric Expenses 0 0 0

10 506.0 Miscellaneous Steam Power Expenses 0 0 0 11 507.0 Rents 0 0 0 12 508.0 Operation Supplies and Expenses 0 0 0 13 509.0 Allowances 0 0 0 14 Total Steam Power Generation Operation Expenses 0 0 0 16 Maintenance17 510.0 Maintenance Supervision and Engineering 0 0 0 18 511.0 Maintenance of Structures 0 0 0 19 512.0 Maintenance of Boiler Plant 0 0 0 20 513.0 Maintenance of Electric Plant 0 0 0 21 514.0 Maintenance of Miscellaneous Steam Plant 0 0 0 22 515.0 Maintenance of Steam Production Plant 0 0 0 23 Total Steam Power Generation Maintenance Expenses 0 0 0 24 Nuclear Power Generation25 Operation26 517.0 Operation Supervision and Engineering 0 0 0 27 518.0 Nuclear Fuel Expenses 0 0 0 28 519.0 Coolants and Water 0 0 0 29 520.0 Steam Expenses 0 0 0 30 521.0 Steam from Other Sources 0 0 0 31 522.0 Steam Transferred-Credit 0 0 0 32 523.0 Electric Expenses 0 0 0 33 524.0 Miscellaneous Nuclear Power Expenses 0 0 0 34 525.0 Rents 0 0 0 35 Total Nuclear Power Generation Operation Expenses 0 0 0 36 Maintenance37 528.0 Maintenance Supervision and Engineering 0 0 0 38 529.0 Maintenance of Structures 0 0 0 39 530.0 Maintenance of Reactor Plant Equipment 0 0 0 40 531.0 Maintenance of Electric Plant 0 0 0 41 532.0 Maintenance of Miscellaneous Nuclear Plant 0 0 0 42 Total Nuclear Power Generation Maintenance Expenses 0 0 0 43 Hydraulic Power Generation44 Operation45 535.0 Operation Supervision and Engineering 0 0 0 46 536.0 Water for Power 0 0 0 47 537.0 Hydraulic Expenses 0 0 0 48 538.0 Electric Expenses 0 0 0 49 539.0 Miscellaneous Hydraulic Power Generation Expense 0 0 0 50 540.0 Rents 0 0 0 51 540.1 Operation Supplies and Expenses 0 0 0 52 Total Hydraulic Power Generation Operation Expenses 0 0 0 53 Maintenance54 541.0 Maintenance Supervision and Engineering 0 0 0 55 542.0 Maintenance of Structures 0 0 0 56 543.0 Maintenance of Reservoirs, Dams and Waterways 0 0 0 57 544.0 Maintenance of Electric Plant 0 0 0 58 545.0 Maintenance of Miscellaneous Hydraulic Plant 0 0 0 59 545.1 Maintenance of Hyraulic Production Plant 0 0 0 60 Total Maintenance Expenses 0 0 0 61 Total Hydraulic Power Generation Maintenance Expenses 0 0 0 62 Other Power Generation63 Operation64 546.0 Operation Supervision and Engineering 0 0 0 65 547.0 Fuel 0 0 0 63 548.0 Generation Expenses 0 0 0 64 549.0 Gas Wells Expenses 0 0 0 65 550.0 Rents 0 0 0 66 551.0 Operation Supplies and Expenses 0 0 0 66 Total Other Operation Power Generation Expenses 0 0 0


405. OPERATION AND MAINTENANCE EXPENSES (Continue)Balances at Beginning of Year must be consistent with balances at end of previous year


Line Account Number and Title No. Year Year DecreaseNo. (a) (b) (c) (d) (e)1 Maintenance2 551.0 Maintenance Supervision and Engineering 0 0 0 3 552.0 Maintenance of Structures 0 0 0 4 553.0 Maintenance of Generating and Electric Plant 0 0 0 5 554.0 Maintenance of Miscellaneous Other Power Equipment 0 0 0 6 554.1 Maintenance of Other Power Production Plant 0 0 0 7 Total Other Power Maintenance Power Gen. Expenses 0 0 0 8 Other Power Supply Expenses 0 9 555.0 Purchased Power 1,702,838,821 1,641,306,996 61,531,825

10 556.0 System Control and Load Dispatching 15,455,138 13,763,243 1,691,895 11 557.0 Other Expenses 0 4,557 (4,557)12 Total Other Power Supply Expenses 1,718,293,959 1,655,074,796 63,219,163 13 Transmission Expenses14 Operation15 560.0 Operation Supervision and Engineering 2,190,493 1,335,803 854,690 16 561.0 Load Dispatching 3,480,162 2,121,613 1,358,549 17 562.0 Station Expenses 841,452 545,518 295,934 18 563.0 Overhead Line Expenses 1,239,543 285,369 954,174 19 564.0 Underground Line Expenses 0 0 0 20 565.0 Transmission of Electricity by Others 0 0 0 21 566.0 Miscellaneous Transmission Expenses 4,612,243 770,971 3,841,272 22 567.0 Rents 313,408 274,343 39,065 23 567.1 Operation Supplies and Expenses 0 0 0 24 Total Transmission Operation Expenses 12,677,301 5,333,617 7,343,684 25 Maintenance26 568.0 Operation Supervision and Engineering 159,208 163,240 (4,032)27 569.0 Maintenance of Structures 22,809 28,314 (5,505)28 570.0 Maintenance of Station Equipment 4,137,182 3,924,459 212,723 29 571.0 Maintenance of Overhead Lines 7,160,454 4,178,747 2,981,707 30 572.0 Maintenance of Underground Line 0 0 0 31 573.0 Maintenance of Miscellaneous Transmission Plant 1,979,487 789 1,978,698 32 574.0 Maintenance of Transmission Plant 0 0 0 33 Total Transmission Mantenance Expenses 13,459,140 8,295,549 5,163,591 34 Distribution Expenses35 Operation36 580.0 Operation Supervision and Engineering 17,203,934 14,729,564 2,474,370 37 581.0 Load Dispatching 2,421,738 670,934 1,750,804 38 581.1 Line and Station Expenses 0 0 0 39 582.0 Station Expenses 1,303,815 642,973 660,842 40 583.0 Overhead Line Expenses 8,680,933 9,836,037 (1,155,104)41 584.0 Underground Line Expenses 4,731,580 4,776,087 (44,507)42 585.0 Street Lighting and Signal System Expenses 671,390 471,805 199,585 43 586.0 Meter Expenses 7,921,624 8,279,906 (358,282)44 587.0 Customer Installation Expenses 6,591,440 6,267,952 323,488 45 588.0 Miscellaneous Distribution Expenses 8,594,089 10,928,217 (2,334,128)46 589.0 Rents 7,747,134 5,840,912 1,906,222 47 Total Distribution Operation Expenses 65,867,677 62,444,387 3,423,290 48 Maintenance 0 49 590.0 Maintenance Supervision and Engineering 1,635,300 4,977,457 (3,342,157)50 591.0 Maintenance of Structures 256,685 51,076 205,609 51 592.0 Maintenance of Station Equipment 7,589,723 8,122,471 (532,748)52 592.1 Maintenance of Structures and Equipment 0 0 0 53 593.0 Maintenance of Overhead Lines 31,423,709 32,259,164 (835,455)54 594.0 Maintenance of Underground Lines 9,450,018 8,214,094 1,235,924 55 594.1 Maintenance of Lines 0 0 0 56 595.0 Maintenance of Line Transformers 2,880,652 2,353,545 527,107 57 596.0 Maintenance of Street Lighting and Signal Systems 3,518,449 3,309,210 209,239 58 597.0 Maintenance of Meters 281,645 84,225 197,420 59 598.0 Maintenance of Miscellaneous Distribution Plant 1,633,254 1,137,871 495,383 60 Total Distribution Maintenance Expenses 58,669,435 60,509,113 (1,839,678)61 Customer Accounts Expenses62 Operation63 901.0 Supervision 404,548 414,061 (9,513)64 902.0 Meter Reading Expenses 5,925,671 9,765,741 (3,840,070)65 903.0 Customer Records and Collection Expenses 24,089,106 21,868,261 2,220,845 66 904.0 Uncollectible Accounts 18,493,161 20,483,491 (1,990,330)67 905.0 Maintenance of Miscellaneous Distribution Plant 2,240,062 2,226,478 13,584 68 Total Customer Accounts Operation Expenses 51,152,548 54,758,032 (3,605,484)


405. OPERATION AND MAINTENANCE EXPENSES (Continued)Balances at Beginning of Year must be consistent with balances at end of previous year


Line Account Number and Title No. Year Year DecreaseNo. (a) (b) (c) (d) (e)1 Customer Service and Informational Expenses2 Operation3 906.0 Customer Service and Informational Expenses 0 0 0 4 907.0 Supervision 0 0 0 5 908.0 Customer Assistance Expenses 11,294,256 11,255,818 38,438 6 909.0 Informational and Instructional Advertising Expenses 0 8 (8)7 910.0 Miscellaneous Customer Service and Informational Exp. 78,753 72,342 6,411 8 Total Customer Service and Inform. Opr. Expenses 11,373,009 11,328,168 44,841 9 Sales Expenses 0

10 Operation 0 11 911.0 Supervision 49,773 37,981 11,792 12 912.0 Demonstrating and Selling Expenses 2,054,098 1,951,408 102,690 13 913.0 Advertising Expenses 3,518 2,102,920 (2,099,402)14 916.0 Miscellaneous Sales Expenses 1,740,272 1,646,253 94,019 15 917.0 Sales Expenses 0 0 0 16 Total Sales Operation Expenses 3,847,661 5,738,562 (1,890,901)17 Administrative and General Expenses1819 920.0 Administrative and General Salaries 687,623 4,441,305 (3,753,682)20 921.0 Office Supplies and Expenses 85,483,983 81,827,495 3,656,488 21 922.0 Administrative Expenses Transferred-Credit 0 0 0 22 923.0 Outside Services Employed 2,611,732 878,575 1,733,157 23 924.0 Property Insurance 0 0 0 24 925.0 Injuries and Damages 1,257,484 1,169,226 88,258 25 926.0 Employee Pensions and Benefits 26,628,438 41,924,814 (15,296,376)26 927.0 Franchise Requirements 0 0 0 27 928.0 Regulatory Commission Expenses 3,668,165 3,625,933 42,232 28 929.0 Duplicate Charges-Credit 0 0 0 29 930.1 General Advertising Expenses 0 0 0 30 930.2 Miscellaneous General Expenses 3,951,160 6,527,502 (2,576,342)31 931.0 Rents 0 0 0 32 933.0 Transportation Expenses 0 0 0 33 Total Administrative and General Operation Expenses 124,288,585 140,394,850 (16,106,265)34 Maintenance35 935.0 Maintenance of General Plant 1,869,329 (1,807,626) 3,676,955 3637 Total Electric Operation Expenses 1,987,500,740 1,935,072,412 52,428,328 38 Total Maintenance Expenses 73,997,904 66,997,036 7,000,868 3940 Footnotes:41 Page 32, line 20, Account 921.0, columns (c) and (d):42 PPL Services provides corporate functions such as: financial, legal, human resources and information services. PPL Services bills43 the respective PPL subsidiaries for the cost of such services when they can be specifically identified. The cost of these services that44 is not directly charged to PPL subsidiaries is allocated to certain of the subsidiaries using a three-factor method based on an average45 of the subsidiaries' relative capital, operation and maintenance expense, and number of employees. The direct assigned charges and46 indirect allocated charges by PPL Services Corporation are included in Account 921, Office Supplies and Expenses.

47 Page 32, line 22, Account 923.0, column (c):48 This account includes the following amounts associated with transition bonds issued to securitize the recovery of retail stranded costs,49 pursuant to an Order entered by the Pennsylvania Public Utility Commission on May 21, 1999, at Docket No. R-00994637, in50 accordance with Pennsylvania's Electricity Generation Customer Choice and Competition Act: $440,321 for 2004 and51 $567,704 for 2003.

52 Page 32, line 25, Account 926.0, column (d):53 In September 2003, PPL Electric Utilities recorded an additional charge of approximately $9 million as a completion of the workforce54 reduction program that commenced in 2002. This additional charge covers the final employees anticipated to be separated as part of55 the automated meter reader implementation project.

56 Page 32, line 35, columns (c) and (d):57 The balance includes credits from allocating rents for office space to other subsidiaries of PPL Corporation. Each month, PPL Electric58 allocates charges to subsidiaries of PPL Corporation for their use of PPL Electric's facilities. The Facilities Management group of PPL59 Services, which is another subsidiary of PPL Corporation, serves as property manager for PPL Electric's buildings. Charges are60 allocated to all occupants of PPL Electric's facilities at either a market rate or a cost rate, depending on whether the space is occupied61 by a regulated or unregulated affiliate. Account 935 is debited for the expenses charged to PPL Electric by the Facilities62 Management group, and is credited for the charges allocated to the user affiliates.


408. TAXES OTHER THAN INCOME TAXES, UTILITY OPERATING INCOME (Account 408.1)This schedule shall include a breakdown of the various tax expenses that constitute the ending balance in Account No. 408.1-Taxes Other Than Income Taxes UtilityOperating Income. The information should also reflect related entries to Account No. 165-Prepayments; and Account No. 236-Taxes Accrued.

Account 408.1Account 165 Account 236 Taxes Other

Line Type of Tax Prepayments Taxes Accrued Than IncomeNo. (a) (b) (c) (d)1 Social Security 5,506,673 5,506,673 2 Federal Unemployment 58,957 58,957 3 Pennsylvania Unemployment 214,446 214,446 4 Utility Regulatory Assessment - 5 Local Property Taxes 1,001,749 1,001,749 6 Public Utility Reality Tax (9,840,733) (9,840,733)7 State Capital Stock Tax 6,751,442 6,751,442 8 Other Taxes (specify) - Federal Environmental (19,574) (19,574)9 Other Taxes (specify) - Gross Receipts 154,816,736 154,816,736 10 Other Taxes (specify) - Sales and Use (903,040) (903,040)11 TOTAL 1,001,749 156,584,907 157,586,656

409. INCOME TAXES, UTILITY OPERATING INCOME (Account 409.1)This schedule shall include a breakdown of the various tax expenses that constitute the ending balance in Account No. 409.1-Income Taxes, Ut. Operating Income. The information should also reflect related entries to Account No. 165-Prepayments; Account No. 190-Accumulated Deferred Income Taxes and Account No. 236-Taxes Accrued

Account 190 Account 409.1Account 165 Accumulated Def. Account 236 Income Taxes

Line Type of Tax Prepayments Income Taxes Taxes Accrued Opr IncomeNo. (a) (b) (c) (d) (e)1 Federal Income Taxes (35,331,690) (35,331,690)2 State Income Taxes (39,518,309) (39,518,309)3 Local Income Taxes - 4 5 6 7 8 Other Taxes (specify)9 10 11 TOTAL - - (74,849,999) (74,849,999)


1. The totals as reported on this schedule should conform with amounts reported on corresponding Schedules.

Deferred DeferredLine Item Total Current Property Related OtherNo. (a) (b) (c) (d) (e)1 Operating Revenues ### ###2 Operating Expenses ### ###3 Operating Taxes (Non-Income) 157,586,656 157,586,656 4 Interest & Other Expense 189,444,504 189,444,504 5 Pre-Tax Operating Income

Total Line 1 Minus Lines 2-3-4 69,621,605 69,621,605 - - 6 Other Income (Expense) 14,215,809 14,215,809 7 Pre Tax Book Income

Total Lines 5+6 83,837,414 83,837,414 - - 8 Permanent and Flow-Through Differ. (11,809,355) (11,809,355)9 Temporary Differences (301,911,194) (150,955,597) (123,879,453) (27,076,144)

10 State Only Differences 95,657,024 95,657,024 11 Subtotal (134,226,111) 16,729,486 (123,879,453) (27,076,144)

12 State Tax at Current Rate 2,130,569 316,448 349,397 1,464,724 13 Adjustments to State Tax (36,885) (36,885)14 Adjustments for St. Tax Rate Change (37,514,348) (41,111,194) 1,249,772 2,347,074 15 State Tax Accrual

Total Lines 12+13+14 (35,420,664) (40,831,631) 1,599,169 3,811,798 16 Federal Taxable Income

Total Line 11 Minus Lines 10-12-13 (231,976,819) (79,207,101) (124,228,850) (28,540,868)17 Federal Tax at Current Rate 28,146,872 (27,722,490) 46,919,693 8,949,669 18 ITC Authorization - 19 Adjustment for Fed. Tax Rate Change - 20 R & D Credits - 21 IRS Audit Settlement - 22 Tax Rate Change on Extraord. Activit - 23 Other 16,957,484 (7,002,841) 15,037,441 8,922,884

24 Federal Tax Accrual - Total Lines 17 through 23 45,104,356 (34,725,331) 61,957,134 17,872,553

410. CALCULATION OF FEDERAL INCOME TAXES - CURRENT PERIOD


411. PROVISION FOR DEFERRED INCOME TAXES,UTILITY OPERATING INCOME (Account 410.1)

This schedule shall include a breakdown of the various tax expenses that constitute the ending balance in AccountNo. 410.1-Provision for Deferred Income Taxes, Utility Operating Income. The information should also reflect related entries to Account No. 165-Prepayments; Account No. 190-Accumulated Deferred Income Taxes & AccountNo. 236-Accrued Taxes, Utility Operating Income.

Account 190 Account 410.1DEBITS Account 165 Accumulated Account 236 Provision for

Line Type of Tax Prepayments Deferred Income Taxes Accrued Taxes Deferred Income TaxesNo. (a) (b) (c) (d) (e)1 Federal 80,221,102 80,221,1022 State 5,494,463 5,494,4633 Other4567 Total 0 85,715,565 0 85,715,565

412. PROVISION FOR DEFERRED INCOME TAXESUTILITY OPR. INCOME, CREDIT (Account 411.1)

This schedule shall include a breakdown of the various tax expenses that constitute the ending balance inAccount No. 411.1-Provision for Deferred Income Taxes-Credit. The information should also reflect related entries to Account No. 165-Prepayments; Account No. 190-Accumulated Deferred Income Taxes & Account No. 236-Accrued Taxes.

Account 190 Account 411.1DEBITS Account 165 Accumulated Account 236 Provision for

Line Type of Tax Prepayments Deferred Income Taxes Accrued Taxes Deferred Income TaxesNo. (a) (b) (c) (d) (e)1 Federal (149,615) (149,615)2 State (6,820) (6,820)3 Other4567 Total 0 (156,435) 0 (156,435)


500. PURCHASED POWER1. Report below the information called for concerning electricity purchased for resale during year.2. Purchases from independent electricity producers shall be grouped on one line and columns (a), (d), (g) and (h) only shall be reported with respect to such purchase.3. The quantities reported should be those shown by the bills rendered by the vendor. 4. Report separately non-interruptible and interruptible purchases from the same company. Designate purchases from affiliated interest by an asterisk following the name in column (d).

B.T.U. Cost Per KWH Commodity Other PerLine Purchased From Point of Delivery Cu. Ft. Charges Charges Total UnitNo. (a) (b) (c) (d) (e) (f) (g) (h)

1 Non-Utility Generators (NUGs) N/A 153,622,444 153,622,444 N/A2 FirstEnergy Corporation N/A 52,184 2,703 54,887 N/A3 Metropolitan Edison Company N/A 1,263 8 1,271 N/A4 Pennsylvania Electric Company N/A 6,130 510 6,640 N/A5 PECO Energy Company N/A 8,870 142 9,012 N/A6 UGI Utility Inc. N/A 5,975 5,975 N/A7 West Penn Power Company N/A 47,004 47,004 N/A8 Borough of Ephrata N/A 4,912 4,912 N/A9 PASNY (St. Lawrence River Project) N/A 104,029 104,029 N/A10 PPL EnergyPlus* 37,894,300,000 1,480,865,519 18,836,652 1,499,702,171 0.039611 Other 3,237 3,23712 PA-NJ-MD Interconnection Assoc. N/A 49,277,239 49,277,239

Totals 0 37,894,300,000 1,634,718,330 68,120,491 1,702,838,821Footnote: Line 10: Purchases from PPL EnergyPlus, LLC, an affiliated company of PPL Electric Utilities Corporation. Column (e) contains $11,571,092 representing amortization of the initialpayment for the supply agreement to purchase energy for Provider of Last Resort customers.

501. SALES FOR RESALE1. Report below the information called for concerning electricity sold during year to other electric utilities or to public authorities for resale.2. The quantities shown should be those shown by the bills rendered to the purchasers. 3. Report separately non-interruptible and interruptible sales to the same company. Designate sales to affiliated interest by an asterisk following the name in column (a)4. Designate any sales which are other than firm sales.

BTU Revenue Per KWH Commodity Other PerLine Sold To Point of Delivery Cu. Ft. Charges Charges Total UnitNo. (a) (b) (c) (d) (e) (f) (g) (h)

1 FirstEnergy Corporation PPL Zone 2,300,000 204,466 7,878 212,344 0.09232 West Penn Power Co. PPL Zone 3,586,000 299,970 9,860 309,830 0.08643 N. Y. State Electric & Gas Corp. PPL Zone 1,126,000 93,211 980 94,191 0.08374 PECO Energy PPL Zone 66,000 5,716 1,156 6,872 0.10415 0 6 Municipalities: 0 7 Blakely Borough PPL Zone 3,774,000 161,651 48,350 210,001 0.05568 Catawissa Borough PPL Zone 1,421,000 66,070 14,029 80,099 0.05649 Duncannon Borough PPL Zone 1,263,000 53,807 15,906 69,713 0.055210 Hatfield Borough PPL Zone 2,055,000 90,236 22,780 113,016 0.055011 Lansdale Borough PPL Zone 12,206,000 291,141 165,694 456,835 0.037412 Kutztown Borough PPL Zone 7,114,000 201,014 0 201,014 0.028313 Lehighton Borough PPL Zone 4,748,000 134,342 61,488 195,830 0.041214 Mifflinburg Borough PPL Zone 6,047,000 257,067 48,856 305,923 0.050615 Olyphant Borough PPL Zone 2,118,000 94,097 27,313 121,410 0.057316 Perkasie Borough PPL Zone 7,364,000 303,959 68,550 372,509 0.050617 Quakertown Borough PPL Zone 11,538,000 454,474 116,717 571,191 0.049518 St. Clair Borough PPL Zone 1,967,000 87,194 22,965 110,159 0.056019 Schuylkillhaven Borough PPL Zone 4,798,000 138,084 55,954 194,038 0.040420 Watsontown Borough PPL Zone 1,422,000 64,089 13,228 77,317 0.054421 Weatherly Borough PPL Zone 4,128,000 156,383 20,177 176,560 0.04282223 Allegheny Elec. Coop. - Chapman PPL Zone 13,271,000 0 0 0 0.000024 Allegheny Elec. Coop. - Sullivan County PPL Zone 25,942,000 0 0 0 0.000025 Blakely Borough PPL Zone 36,043,000 0 0 0 0.000026 Catawissa Borough PPL Zone 11,827,000 0 0 0 0.000027 Citizens Electric Company PPL Zone 177,624,000 0 0 0 0.000028 Duncannon Borough PPL Zone 9,629,000 0 0 0 0.000029 Ephrata Borough PPL Zone 153,823,000 0 0 0 0.000030 Hatfield Borough PPL Zone 19,386,000 0 0 0 0.000031 Kutztown Borough PPL Zone 0 0 0 0 0.000032 Lansdale Borough PPL Zone 124,683,000 0 0 0 0.000033 Lehighton Borough PPL Zone 45,583,000 0 0 0 0.000034 Mifflinburg Borough PPL Zone 47,342,000 0 0 0 0.000035 Olyphant Borough PPL Zone 20,022,000 0 0 0 0.000036 Perkasie Borough PPL Zone 58,675,000 0 0 0 0.000037 Quakertown Borough PPL Zone 98,384,000 0 0 0 0.000038 Schuylkillhaven Borough PPL Zone 41,154,000 0 0 0 0.000039 St. Clair Borough PPL Zone 18,844,000 0 0 0 0.000040 Watsontown Borough PPL Zone 12,756,000 0 0 0 0.000041 Weatherly Borough PPL Zone 20,034,000 0 0 0 0.00004243 PPL EnergyPlus* PPL Zone 0 153,622,444 0 153,622,444 44

Totals 0 1,014,063,000 156,779,415 721,881 157,501,296

Note: Quantities in col. (f) are investment charges.Line 43, col. (d): Wholesale sales of 2,359,629,446 kWh reflect sales of NUG output to PPL EnergyPlus. These kWh were not included in this schedule to avoid double countingof kWh. As part of the July 2000 corporate realignment, PPL Electric executed a reciprocal contract with PPL EnergyPlus to sell output purchased under contracts with NUGs.PPL Electric purchases output from the NUGs at contractual rates and then sells the electricity at the same price to PPL EnergyPlus.Lines 23 through 41, col. (d): Energy is supplied by alternate suppliers.Line 31, col. (a): No longer a customer of PPL Electric as of 2/1/04.Lines 25, 26, 28, 30 and 32 through 41, col. (a): No longer a customer of PPL Electric as of 3/1/04.Lines 7 through 21, col. (f): Ancillary service charge.


502. ELECTRIC GENERATION SUPPLIER RETAIL ENERGY (kWh) DISTRIBUTED

License No. Name of Electric Generation Supplier kWhA-110116 Coral Power, LLC 101,070A-110078 FirstEnergy Solutions 101,317,316A-110073 Green Mountain Energy Company 18,311,112A-110036 New Energy, Inc. 14,117,230A-110082 Powerchoice 71,247,399A-110098 PPL EnergyPlus, LLC 313,110,119A-110090 Select Energy, Inc. 123,288,649A-110141 Sempra Energy Solutions 141,502,400A-110025 Strategic Energy 210,181,322

993,176,617


505. ELECTRIC ACCOUNT-ELECTRICITY1 The purpose of this schedule is to account for the quantity of electricity received and delivered by the respondent

adjusted for any differences in pressure bases used in measuring KWH of electricity received and delivered.2 If the respondent operates two or more systems which are not interconnected, separate schedules should be

submitted. Insert pages should be used for this purpose.

Item KWH as Reported

No. (a) (b)1 ELECTRICITY RECEIVED2 Electricity Produced3 Purchased Electricity 37,894,300,000 45 Other Receipts6 Power Exchanges-Received 1,988,361,000 7 Transmission for Other (Wheeling)-Received 1,757,310,000 8 Transmission for Other (Wheeling)-Delivered (1,757,310,000)91011121314 Total Receipts: 39,882,661,000 15 ELECTRICITY DELIVERED16 Electricity Sales:17 Local Distribution by Respondent 36,112,405,000 18 Main Line Industrial Sales19 Sales for Resale 1,014,063,000 20 Interdepartmental Sales212122 Total Sales 37,126,468,000 2324 Deliveries of Respondent's Electricity for Transportation by Others25 Electricity used by Respondent 98,427,000 26 Other Deliveries: Specify27282930 Total Deliveries 37,224,895,000 31 UNACCOUNTED FOR32 Production System Losses33 Transmission System Losses 1,043,367,000 34 Distribution System Losses 1,614,399,000 35 Other Losses363738 2,657,766,000 38 39,882,661,000

Total Unaccounted For Total Deliveries and Unaccounted For


511. MANUFACTURED ELECTRICITY PRODUCTION PLANT

1 Kind or Type of Plant___________________________________________ Location____________________________2 Maximum Daily Capacity of Plant_________________________________ KWH______________________________3 Maximum Daily KWH of Electricity Produced During Year__________________ Date__________________________4 Maximum Daily KWH of Electricity Produced During Life of Plant____________ Date__________________________5 Number of Days Plant was Commercially Operated During Year_____________6 Date Plant was last Commercially Operated_____________________________7 KWH of Electricity Produced During the Year____________________________

NONE.

Annual Report of: PPL Electric Utilities Corp. Year Ended December 31, 2004 517. CUSTOMER ELECTRIC METERS

Number of MetersFirst Added Removed Or Endof During Disconnected of

Line Size Year Year During Year YearNo. (a) (b) (c) (d) (e) (e)1 In residential use (A) (A)2 3 a) Singlephase, Self-Contained 1,162,045 1,173,1734 b) Network 15,469 15,6095 c) Polyphase Self-Contained 120 1346 d) Singlephase, Transformer Rated 2,765 2,7607 e) Polyphase, Transformer Rated 16 198 9

10 Total in residential use 1,180,415 11,280 0 1,191,69511 In commercial use 12 13 a) Singlephase, Self-Contained 118,608 119,70514 b) Network 3,536 3,54715 c) Polyphase Self-Contained 23,491 23,93416 d) Singlephase, Transformer Rated 3,588 3,56317 e) Polyphase, Transformer Rated 19,738 19,67818 19 20 Total in commercial use 168,961 1,466 0 170,42721 In industrial use 22 23 a) Singlephase, Self-Contained 1 124 b) Network 0 025 c) Polyphase Self-Contained 1 126 d) Singlephase, Transformer Rated 35 3527 e) Polyphase, Transformer Rated 1,342 1,34728 29 30 Total in industrial use 1,379 5 0 1,38431 In public (municipal or government) use 32 33 a) Singlephase, Self-Contained 0 034 b) Network 0 035 c) Polyphase Self-Contained 0 036 d) Singlephase, Transformer Rated 9 937 e) Polyphase, Transformer Rated 49 2238 39 40 Total in public (municipal or government) use 58 0 27 3141 Total in use 1,350,813 12,751 27 1,363,53742 In Stock 43 44 a) Singlephase, Self-Contained 96,238 25,45045 b) Network 4,892 2,91146 c) Polyphase Self-Contained 9,084 4,09947 d) Singlephase, Transformer Rated 2,111 1,25048 e) Polyphase, Transformer Rated 4,014 3,66749 50 Total in stock (B) 116,339 78,962 37,37751 Total all meters 1,467,152 12,751 78,989 1,400,914

METERS TESTED BY SIZES1/2 5/8 3/4 1 Total

(a) (a) (a) (b) (c) (d) (e) (f) (g) (h)52 Number tNumber tested during the year 207,263 3,281 21,217 663 13,382 245,806

(A) Footnote, line 1, columns (d) and (e): Amounts reflect net number of meters added/removed during the year. Separate counts of meters added andmeters removed are not available.

(B) Footnote, line 50, column (e): Decrease in meters in stock is due to retirements of meters not useable as automated meter reading meters and the completionof PPL's AMR deployment.

Annual Report of: PPL Electric Utilities Corp. Year Ended December 31, 2004 600. CLASSIFICATION OF CUSTOMERS, UNITS SOLD AND OPERATING REVENUES BY TARIFF SCHEDULE

1. Report below the details called for concerning Customers, KWH Sold, and Opr. Revenues by Tariff Schedule.2. Customers should be reported on the basis of number of meters, plus number of unmetered accounts, except that where separate meter readings are added for billing purposes, one customer shall be counted for each group of meters so added.3. KWH of electricity sold to flat-rate customers shown in column (e), should explain in a footnote the basis upon which quantities were determined.4. Respondent should use additional sheets if necessary. Number of Customers Sales During Year Revenues

Beginning End Average Total Total KWHLine of of During KWH Operating Per Per Per No. Account Year Year Year Revenue Customer Customer Unit

. (a) (b) (c) (d) (e) (f) (g) (h) (i)1 Metered Sales by Tariff Schedule (A)23 Heating4 GS-1 48 54 55 598,000 68,337 11,074 1,266 0.1143 5 RS 345,472 347,772 347,610 5,942,541,000 477,606,095 17,087 1,373 0.0804 6 RTD 203 198 200 4,025,000 316,763 20,328 1,600 0.0787 7 RTS 13,908 13,978 13,934 390,016,000 22,506,175 27,902 1,610 0.0577 8 SA (C) (B) (B) (B) 1,473,000 265,668 N/A N/A 0.1804 9 Other

10 GS-1 580 595 598 4,313,000 501,135 7,249 842 0.1162 11 RS 804,051 818,313 813,786 7,092,600,000 607,862,303 8,667 743 0.0857 12 RTD 70 71 69 1,027,000 84,203 14,465 1,186 0.0820 13 RTS 61 66 64 1,240,000 227,335 18,788 3,444 0.1833 14 SA (C) (B) (B) (B) 3,525,000 650,430 N/A N/A 0.1845 15 Unbilled (D) 115,186,000 10,414,596 0.0904 16 Total Residential Metered Sales 1,164,393 1,181,047 1,176,316 13,556,544,000 1,120,503,040 11,478 949 0.0827 1718 Heating19 GH-1(R) 894 891 891 271,037,000 22,007,741 304,194 24,700 0.0812 20 GH-2(R) 2,409 2,408 2,413 63,390,000 5,268,323 26,325 2,188 0.0831 21 Other22 GS-1 135,444 139,159 137,481 1,824,065,000 193,951,545 13,108 1,394 0.1063 23 GS-3 19,544 20,244 19,902 6,887,848,000 513,357,459 340,241 25,358 0.0745 24 IS-1 4 2 3 1,289,000 83,808 644,500 41,904 0.0650 25 LP-4 561 582 570 2,732,074,000 165,483,237 4,694,285 284,335 0.0606 26 LP-5 44 41 42 640,962,000 36,171,080 15,633,220 882,221 0.0564 27 LP-6 2 2 2 167,243,000 9,860,746 83,621,500 4,930,373 0.0590 28 SA (C) (B) (B) (B) 17,458,000 3,225,903 N/A N/A 0.1848 29 SM 32 31 32 439,000 77,902 14,161 2,513 0.1775 30 SHS 427 420 425 4,440,000 1,222,646 10,571 2,911 0.2754 31 Unbilled (D) 124,411,000 10,567,222 #DIV/0! #DIV/0! 0.0849 32 159,361 163,780 161,761 12,734,656,000 961,277,612 77,755 5,869 0.0755 3334 GH-1(R) 71 72 72 30,959,000 2,592,250 429,986 36,003 0.0837 35 GH-2(R) 80 79 77 4,211,000 347,653 53,304 4,401 0.0826 36 GS-1 2,384 2,377 2,384 67,369,000 7,423,852 28,342 3,123 0.1102 37 GS-3 1,917 1,899 1,901 1,450,100,000 106,085,786 763,612 55,864 0.0732 38 ISM 1 1 1 254,741,000 18,424,798 254,741,000 18,424,798 0.0723 39 LP-4 419 421 426 3,160,585,000 181,017,651 7,507,328 429,971 0.0573 40 LP-5 100 104 99 4,493,701,000 204,490,830 43,208,663 1,966,258 0.0455 41 LP-6 2 1 2 148,231,000 7,903,813 148,231,000 7,903,813 0.0533 42 SA (C) (B) (B) (B) 1,023,000 189,298 N/A N/A 0.1850 43 SM 2 2 2 20,000 2,418 10,000 1,209 0.1209 44 SHS 6 5 5 36,000 7,957 7,200 1,591 0.2210 45 Unbilled (D) 55,121,000 4,085,465 0.0741 46 4,982 4,961 4,969 9,666,097,000 532,571,771 1,948,417 107,352 0.0551

Residential

Commercial

Total Commercial Metered Sales Industrial

Total Industrial Metered Sales




. (a) (b) (c) (d) (e) (f) (g) (h) (i)47 Public Street & Highway Lighting48 GS-1 434 442 441 2,954,000 337,180 6,683 763 0.1141 49 GS-3 4 4 4 1,148,000 89,649 287,000 22,412 0.0781 50 SA (C) (B) (B) (B) 6,000 1,161 N/A N/A 0.1935 51 SE 80 83 83 19,860,000 924,520 239,277 11,139 0.0466 52 SHS 690 711 701 58,281,000 16,548,414 81,970 23,275 0.2839 53 SI-1R 3 3 3 90,000 20,869 30,000 6,956 0.2319 54 SM 75 73 73 4,418,000 872,610 60,521 11,954 0.1975 55 TS(R) 9 9 9 351,000 41,145 39,000 4,572 0.1172 56 Unbilled (D) (817,000) 102,146 #DIV/0! #DIV/0! (0.1250)57 1,295 1,325 1,314 86,291,000 18,937,694 65,125 14,293 0.2195 58 Interdepartmental 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0!59 Sales to Railroads and Railways 1 1 1 68,280,000 5,125,424 68,280,000 5,125,424 0.0751 60 Other 13 14 12 537,000 45,127 38,357 3,223 0.0840 61 Total Metered Sales 1,330,045 1,351,128 1,344,373 36,112,405,000 2,638,460,668 26,728 1,953 0.0731 62 Unmetered Sales-All Categories63 Other 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0!64 Total Unmetered Sales 0 0 0 0 0 #DIV/0! #DIV/0! #DIV/0!65 Total Sales for Resale (E) 46 41 43 1,014,063,000 157,501,296 24,733,244 N/A N/A66 Total Sales of Electric 1,330,091 1,351,169 1,344,416 37,126,468,000 2,795,961,964 27,477 2,069 0.0753 67 Other Electric Revenues: 20,388,756 68 Rent from Electric Property 21,067,251 69 Interdepartmental Rents 0 70 Operating Revenue Other Than Electric Sales 0 71 Allowance to Customers 0 72 Customers Forfeited Discounts & Penalties 8,142,073 73 Miscellaneous Electric Revenues (24,065)74 Total Other Electric Revenues 0 0 0 0 49,574,015 75 Total Electric Operating Revenues 1,330,091 1,351,169 1,344,416 37,126,468,000 2,845,535,979 27,477 2,106 0.0766

Total Public Street & Highway




. (a) (b) (c) (d) (e) (f) (g) (h) (i)Footnotes:Line 1, column (i):(A) Column (i), Revenue per Unit Sold, reflects the division of the Revenues in column (f) by actual kWh sold. Column (f) includes rate schedule minimum chargesand minimum demand charges for which there is no kWh use associated with kWh sold. Therefore, the amount shown in column (i) includes, in addition to therate charged for energy, the result obtained by dividing kWh sold into minimum charges and minimum demand charges.

Lines 8, 14, 28, 42 and 50, columns (b), (c) and (d):(B) This rate schedule is for "Area Light Service" involving outdoor lighting of private areas. This service provides a Company-owned, installed and servicedphoto-electrically controlled (on at dusk, off at dawn) light on the Company's pole, on customer's property or on customer's building with kWh beingestimated. At December 31, 2004, customers were billed at a flat monthly rate of $11.814 plus applicable state tax adjustment surcharge, energy cost rateand special base rate credit adjustment. Because most of these customers are also taking service under some other rate schedule, the average number ofcustomers in column (d) has not been shown for this rate schedule.

Lines 8, 14, 28, 42 and 50, column (i):(C) These rate schedules specify flat rates for lighting services, the kWh being estimated. In most cases, the Company also furnished equipment and other servicesin addition to the supply of energy and the extent and type of such additional services is not the same under all such schedules. Under these circumstances, theRevenue per kWh sold had no direct relation to the energy sold.

Lines 15, 31, 45 and 56 column (a):(D) Unbilled revenues represent the net amounts applicable to be billed to customers for electricity delivered from the time meters were last read to the end of therespective period, excluding amounts to be billed for over or under recovery of energy costs. No additional customers are associated with unbilled MWH, socolumns (b), (c) and (d) are blank. Because unbilled revenues associated with energy costs are recorded in Account 407, the revenue per KWh sold is notmeaningful.

Line 65, columns (h) and (i):(E) Wholesale sales of 2,359,629,446 kWh reflect sales of NUG output to PPL EnergyPlus. These kWh were not included in this schedule to avoid double countingof kWh. As part of the July 2000 corporate realignment, PPL Electric executed a reciprocal contract with PPL EnergyPlus to sell output purchased under contracts with NUGs.PPL Electric purchases output from the NUGs at contractual rates and then sells the electricity at the same price to PPL EnergyPlus. Therefore, the amounts in columns(h) and (i) would not be meaningful.


602. Electric Generation Sales (kWh) & Supply by Energy Source(Based on Total Retail Sales in Pennsylvania) This page will also be filed

under separate cover, along withthe independent auditor's verification

completed if POLR service is provided. Total Retail Sales (kWh) will equal kWh reported for current year on line "Total POLR Sales to Ultimate of the anticipated generation energyConsumers" on Schedule 402. source of the identifiable resources

and the fact that energyYear Coal Nuclear Oil Hydro-power Natural Gas Renewable TOTAL RETAIL SALES characteristics were not sold more

% % % % % % (kWh) than once.2004 53% 34% 4% 3% 1% 5% 35,119,228,000

Detailed Break-down of Renewable Source by Technology (if any reported above) Technology Percent of Total Renewable Energy Supplied

(Sales in kWh)Solar Photovoltaic Energy NONE NONESolar Thermal Energy NONE NONEWind Power NONE NONELow-Head Hydropower NONE NONEGeothermal Energy NONE NONE

100% 2,312,363,193Mine-based Methane Gas NONE NONEEnergy from Waste NONE NONESustainable Biomass Energy NONE NONEOther (Name) NONE NONEOther (Name) NONE NONETotal Renewable Sources *100% 2,312,363,193

* See Notes on Next Page (602-Cont)

Special Instructions for Schedule 602 - Electric Generation Sales & Supply by Energy Source -- must be

Actual Amount of Energy Supplied

Landfill or Other Biomass-based Methane Gas

Annual Report of: PPL Electric Utilities Corp. Year Ended December 31, 2004602. Electric Generation Sales (kWh) & Supply by Energy Source-Continued

NOTE to the Consumer: Electricity is the product of a mix of generation energy sources that is delivered over a system of wires. This report reflects the estimated percent of total sales based on the primary fuel source used in the generation of electricity for customer end-use in the Commonwealth of Pennsylvania. Some generators may use a combination of fuel sources, such as oil and coal or oil and natural gas, which may be combined or used alternatively. In this instance, only the primary fuel source is reported. Data may also include negative sales for pumped storage hydroelectric operations, which could require the use of any fuel source except hydropower. If any supply source includes Distributed Generation or Combined Heat and Power, the applicable categories will be marked “DG” and/or “CHP.” If net metering is deployed, an asterisk (*) appears within the applicable categories. Upon request by the consumer, electricity providers are required to provide information on generation energy sources, energy efficiency, environmental impacts or personal historical billing data.

NOTE to the Respondent: Please review above “Note to the Consumer” for important information needed to adequately complete this form. Verification of the anticipated generation energy source, of the identifiable resources (if and when they have been ‘‘claimed’’) and the fact that energy characteristics were not sold more than once, shall be conducted by an independent auditor at the end of each calendar year and contained in this annual report to the Commission. If generation energy sources are not identifiable, the provider shall disclose this fact.


603. Pennsylvania Tax Identification Number

A. Please designate your company by marking with an “X” as many categories that apply: The information contained on this page

Electric Distribution Company □ Municipal generator is considered Proprietary and Confidential, Electric Cooperative □ Broker/Marketer and therefore is not being included in Generator □ Aggregator PPL Electric's public filing. This page will

be filed under separate cover.

information that is on file at the Pennsylvania Department of Revenue. □ Federal Employer Identification Number (EIN): (if applicable, e.g. a sole proprietor may not have an EIN)

□ Sales Tax Identification/License No:(if applicable, e.g. wholesalers may not have a Sales Tax No.)

□ Corporation Tax Identification/Box No:

B. The following information is required to assist the Department of Revenue in calculating the RNR rate. If you are a Generator, Broker, Marketer or Aggregator, please provide the current State Tax Account Numbers. If any tax account information has changed since the Pennsylvania license application was filed at the Commission, please indicate that this information is an “Update” of what is currently on file by marking the box with an X.If your company is an Electric Distribution Company, Municipal Authority or Electric Cooperative, please provide the tax identification

C. If your company owned electric generation assets in 1996 and has restructured since that time, please identify any successor companies whose operations are related to the production, distribution or retail sale of electricity in Pennsylvania. In addition, please identify any unrelated companies that have purchased electric generation assets from your company since 1996. Finally, please list any other Sales Tax or Corporation Tax Identification Nos. and associated company names under which payments, related to the production, distribution and retail sale of electricity, have been made to the PA Department of Revenue since July 1, 2001.

I ________________________________________________________________________ hereby state that the facts above set forth are true and correct (or are true and correct to best of my knowledge, information and belief) and that I expect to be able to prove the same at a hearing held in this matter. I understand that the statements herein are made subject to the penalties of 18 Pa. C.S. sec. 4904 (relating to unsworn falsification to authorities).


605. NUMBER OF EMPLOYEESReport the requested information concerning the number of employees on respondent's payrolls at end of year.

Line Classification According to Occupation Number at Year EndNo. (a) (b)1 Total Officials and Senior Manager Employees 2 2 Total Professional and Semiprofessional Employees 533 3 Total Business Office, Sales And Professional Employees 51 4 Total Clerical Employees 452 5 Total Operators 0 6 Total Construction, Installation and Maintenance Employees 1,073 7 Total Building, Supplies and Motor Vehicle Employees 101 8 All Other Employees Not Elsewhere Classified 0

9 Total All Employees 2,212


610. Territory ServedReport below the number of customers at the end of the year in respondent's distribution system in which service is furnished setting forth by counties the number of customers and the average number of customers during the year. Respondent should place an X in the box in column (b) if that county is served and supply related customer information in columns (d) and (e).

Number Of Average Customers Number Of

County Serves Name of Pennsylvania County At End Customers Code County Of Year During Year(a) (b) (c) (d) (e)01 Adams02 Allegheny03 Armstrong04 Beaver05 Bedford06 X Berks 31,783 31,51707 Blair08 Bradford09 X Bucks 27,940 27,69910 Butler11 Cambria12 Cameron13 X Carbon 31,634 31,42014 Centre15 X Chester 5,744 5,76116 Clarion17 Clearfield18 X Clinton 15,194 15,07119 X Columbia 31,460 31,24720 Crawford21 X Cumberland 85,279 84,95022 X Dauphin 115,761 115,38623 Delaware24 Elk25 Erie26 Fayette27 Forest28 Franklin29 Fulton30 Greene31 Huntingdon32 Indiana33 Jefferson34 X Juniata 9,077 9,03735 X Lackawanna 96,057 95,70436 X Lancaster 200,797 199,56537 Lawrence38 X Lebanon 3,200 3,22139 X Lehigh 149,613 148,83140 X Luzerne 100,836 100,56841 X Lycoming 53,347 53,08442 McKean43 Mercer44 Mifflin45 X Monroe 60,772 60,20046 X Montgomery 20,615 20,54547 X Montour 7,959 7,95948 X Northampton 68,405 67,87649 X Northumberland 46,838 46,84950 X Perry 20,991 20,94351 Philadelphia52 X Pike 11,940 11,79753 Potter54 X Schuylkill 73,193 72,73455 X Snyder 16,820 16,74656 Somerset57 Sullivan58 X Susquehanna 3,645 3,62559 Tioga60 X Union 10,035 9,97961 Venango62 Warren63 Washington64 X Wayne 41,322 41,14865 Westmoreland66 X Wyoming 2,813 2,77567 X York 8,099 8,059

Totals 1,351,169 1,344,296Total Population of Territory Served (Estimated) 2,835,298

G47

e02681: -1 to prove to sch. 600


VERIFICATIONThe foregoing report must be verified by the oath of the officer having control of the accounting of the respondent. It shall be verified, also, by the oath of the president or other chief officer of the respondent. The oaths required may be taken before any person authorized to administer an oath by the laws of the State in which the same is taken.

(To be made by the officer having control of the accounting of the respondent)State of Pennsylvania as:County of Lehigh

Paul A. Farr makes oath and says that he is Vice President and Controller(Name of affiant) (Official title of affiant)

of PPL Electric Utilities Corporation (Exact legal title or name of the respondent)The signing officer has reviewed the report

Based on the officer's knowledge, the report does not contain any unture statements of a material fact or omit to statea material fact necessary in order to make the statements made, in light of the circumstances under which such statements were made, not misleading.

Based on such officer's knowledge, the financial statements, and other financial information included in the report, fairly present in all material respects the financial condition and results of operations of the issuer as of, and for, the periodspresented in the report.

He believes that all other statements contained in the said report are true, and that the said report is a correct and complete statement of the business and affairs of the above-named respondent during the period of time from and including January 1, 2004 to and including January 31, 2004. ______________________________________________________ Subscribed and sworn to and before me, a Notary Public (Signature of affiant)in and for the State and County above-named, this ____________ day of _________________________________________________________

My commission expires_________________________________________ (Signature of officer authorized to administer oaths)

SUPPLEMENTAL OATH (By the president or other chief officer of the respondent) State of Pennsylvania as:County of Lehigh

John F. Sipics makes oath and says that he is President and Vice Chair(Name of affiant) (Official title of affiant)of PPL Electric Utilities Corporation (Exact legal title or name of the respondent)that he has carefully examined the foregoing report; that he believes that all statements of fact contained in the said report are true, and that the said report is a correct and complete statement of the business and affairs of theabove named respondent during the period of time from and including January 1, 2004, to and including January 31, 2004.

_________________________________________________________________ Subscribed and sworn to before me, a Notary Public (Signature of affiant)in and for the State and County above-named, this____________ day of __________________________________________

My commission expires_________________________________________ (Signature of officer authorized to administer oaths)

OATH

COMPANY YEAREND COUNTYC SERVES COUNTYNAME CUSTOMERSEOY

0 YEAR ENDED DECEMBER 31, 2004 01 0 Adams 00 YEAR ENDED DECEMBER 31, 2004 02 0 Allegheny 00 YEAR ENDED DECEMBER 31, 2004 03 0 Armstrong 00 YEAR ENDED DECEMBER 31, 2004 04 0 Beaver 00 YEAR ENDED DECEMBER 31, 2004 05 0 Bedford 00 YEAR ENDED DECEMBER 31, 2004 06 X Berks 317830 YEAR ENDED DECEMBER 31, 2004 07 0 Blair 00 YEAR ENDED DECEMBER 31, 2004 08 0 Bradford 00 YEAR ENDED DECEMBER 31, 2004 09 X Bucks 279400 YEAR ENDED DECEMBER 31, 2004 10 0 Butler 00 YEAR ENDED DECEMBER 31, 2004 11 0 Cambria 00 YEAR ENDED DECEMBER 31, 2004 12 0 Cameron 00 YEAR ENDED DECEMBER 31, 2004 13 X Carbon 316340 YEAR ENDED DECEMBER 31, 2004 14 0 Centre 00 YEAR ENDED DECEMBER 31, 2004 15 X Chester 57440 YEAR ENDED DECEMBER 31, 2004 16 0 Clarion 00 YEAR ENDED DECEMBER 31, 2004 17 0 Clearfield 00 YEAR ENDED DECEMBER 31, 2004 18 X Clinton 151940 YEAR ENDED DECEMBER 31, 2004 19 X Columbia 314600 YEAR ENDED DECEMBER 31, 2004 20 0 Crawford 00 YEAR ENDED DECEMBER 31, 2004 21 X Cumberland 852790 YEAR ENDED DECEMBER 31, 2004 22 X Dauphin 1157610 YEAR ENDED DECEMBER 31, 2004 23 0 Delaware 00 YEAR ENDED DECEMBER 31, 2004 24 0 Elk 00 YEAR ENDED DECEMBER 31, 2004 25 0 Erie 00 YEAR ENDED DECEMBER 31, 2004 26 0 Fayette 00 YEAR ENDED DECEMBER 31, 2004 27 0 Forest 00 YEAR ENDED DECEMBER 31, 2004 28 0 Franklin 00 YEAR ENDED DECEMBER 31, 2004 29 0 Fulton 00 YEAR ENDED DECEMBER 31, 2004 30 0 Greene 00 YEAR ENDED DECEMBER 31, 2004 31 0 Huntingdon 00 YEAR ENDED DECEMBER 31, 2004 32 0 Indiana 00 YEAR ENDED DECEMBER 31, 2004 33 0 Jefferson 00 YEAR ENDED DECEMBER 31, 2004 34 X Juniata 90770 YEAR ENDED DECEMBER 31, 2004 35 X Lackawanna 960570 YEAR ENDED DECEMBER 31, 2004 36 X Lancaster 2007970 YEAR ENDED DECEMBER 31, 2004 37 0 Lawrence 00 YEAR ENDED DECEMBER 31, 2004 38 X Lebanon 32000 YEAR ENDED DECEMBER 31, 2004 39 X Lehigh 1496130 YEAR ENDED DECEMBER 31, 2004 40 X Luzerne 100836

0 YEAR ENDED DECEMBER 31, 2004 41 X Lycoming 533470 YEAR ENDED DECEMBER 31, 2004 42 0 McKean 00 YEAR ENDED DECEMBER 31, 2004 43 0 Mercer 00 YEAR ENDED DECEMBER 31, 2004 44 0 Mifflin 00 YEAR ENDED DECEMBER 31, 2004 45 X Monroe 607720 YEAR ENDED DECEMBER 31, 2004 46 X Montgomery 206150 YEAR ENDED DECEMBER 31, 2004 47 X Montour 79590 YEAR ENDED DECEMBER 31, 2004 48 X Northampton 684050 YEAR ENDED DECEMBER 31, 2004 49 X Northumberla 468380 YEAR ENDED DECEMBER 31, 2004 50 X Perry 209910 YEAR ENDED DECEMBER 31, 2004 51 0 Philadelphia 00 YEAR ENDED DECEMBER 31, 2004 52 X Pike 119400 YEAR ENDED DECEMBER 31, 2004 53 0 Potter 00 YEAR ENDED DECEMBER 31, 2004 54 X Schuylkill 731930 YEAR ENDED DECEMBER 31, 2004 55 X Snyder 168200 YEAR ENDED DECEMBER 31, 2004 56 0 Somerset 00 YEAR ENDED DECEMBER 31, 2004 57 0 Sullivan 00 YEAR ENDED DECEMBER 31, 2004 58 X Susquehanna 36450 YEAR ENDED DECEMBER 31, 2004 59 0 Tioga 00 YEAR ENDED DECEMBER 31, 2004 60 X Union 100350 YEAR ENDED DECEMBER 31, 2004 61 0 Venango 00 YEAR ENDED DECEMBER 31, 2004 62 0 Warren 00 YEAR ENDED DECEMBER 31, 2004 63 0 Washington 00 YEAR ENDED DECEMBER 31, 2004 64 X Wayne 413220 YEAR ENDED DECEMBER 31, 2004 65 0 Westmoreland 00 YEAR ENDED DECEMBER 31, 2004 66 X Wyoming 28130 YEAR ENDED DECEMBER 31, 2004 67 X York 8099

CUSTOMERSAVE

00000

3151700

27699000

314200

576100

1507131247

084950

11538600000000000

903795704

1995650

3221148831100568

53084000

60200205457959

678764684920943

011797

07273416746

00

36250

9979000

411480

27758059

ppl utilities corporation 2004 annual report - puc - … · xls file · web view ·...

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