PPL acquisition history

E.ON U.S. LLC was the parent company of Louisville Gas and Electric Company (LG&E) and Kentucky Utilities Company (KU), Kentucky's two major regulated utilities serving approximately 1.2 million customers principally in Kentucky. On closing, E.ON U.S. was renamed LG&E and KU Energy LLC (Kentucky Holdings). PPL acquired the business from a wholly owned subsidiary of E.ON AG. Approximately $7.625 billion total purchase price at announcement (effective purchase price ~$7.175 billion after ~$450 million present-value tax benefits); ~$7.59 billion at close, including the assumption of approximately $764 million of indebtedness.

This is a transformational, value-rich transaction, which will immediately improve PPL's business mix by adding high-performing regulated utility operations to our already strong combination of excellent regulated businesses and our high-value competitive generation fleet. We are adding scale, creating a much stronger and more diversified enterprise while providing additional opportunities for regulated-business growth and, importantly, retaining the upside benefits of our competitive fleet when wholesale power market prices improve.James H. Miller — Chairman, President and CEO, PPL Corporation

With this acquisition of high-performing assets, we've added significant scale and enhanced our ability to be successful over the long term. This acquisition increases the size of our regulated business by 130 percent and, importantly, retains the upside from our competitive generation business during periods of increased wholesale electricity prices and demand.James H. Miller — Chairman, President and CEO, PPL Corporation (at close)

Central Networks was the second-largest electricity distribution business in the United Kingdom, serving approximately 5 million customers in the Midlands area of central England through Central Networks East plc and Central Networks West plc. PPL acquired the business, through its U.K. subsidiaries, from E.ON UK plc. Approximately £4.1 billion total at close, comprising approximately £3.6 billion ($5.7 billion) in cash plus approximately £500 million ($800 million) of assumed existing public debt.

This strategic, transformational transaction allows us to further expand our regulated electricity operations in a way that enhances shareowner value and is immediately accretive to 2011 earnings and cash flow. Our highly successful, best-in-class U.K. management team is prepared to implement operational improvements and other efficiencies that will benefit customers and contribute additional accretion to PPL earnings in 2012 and beyond.James H. Miller — Chairman, President and CEO, PPL Corporation

The Narragansett Electric Company is Rhode Island's primary regulated electric and natural gas utility, acquired from National Grid USA (a subsidiary of National Grid plc). PPL purchased 100% of the outstanding common stock of Narragansett Electric through its indirect subsidiary PPL Rhode Island Holdings, LLC. Following the closing, the business continued to provide service under the name Rhode Island Energy. Approximately $3.8 billion in cash at announcement; approximately $3.82 billion in cash at close, subject to customary post-closing adjustments.

The strategic transactions we are announcing today immediately unlock value for shareowners and achieve the objectives we set out in launching the process to sell our U.K. utility business. They will refocus our business.Vincent Sorgi — President and CEO, PPL Corporation

Together, the sale of WPD and the acquisition of Narragansett Electric will better position PPL for long-term growth and success by simplifying our business mix, strengthening our credit metrics, improving our prospects for long-term earnings growth, and providing us greater financial flexibility to invest in sustainable energy solutions.Vincent Sorgi — President and CEO, PPL Corporation