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PPL Corp. Reports Operating Results (10-K)

February 28, 2012 | About:

PPL Corp. (NYSE:PPL) filed Annual Report for the period ended 2011-12-31.

Ppl Corp has a market cap of $16.68 billion; its shares were traded at around $28.6394 with a P/E ratio of 10.5 and P/S ratio of 1.3. The dividend yield of Ppl Corp stocks is 4.9%.

Highlight of Business Operations:

Details of operating revenues for the Kentucky Regulated segment by customer class for the year ended December 31, 2011 and the two months ended December 31, 2010 are shown below.

Five underground natural gas storage fields, with a current working natural gas capacity of approximately 15 Bcf, are used in providing natural gas service to LG&E's firm sales customers. By using natural gas storage facilities, LG&E avoids the costs typically associated with more expensive pipeline transportation capacity to serve peak winter heating loads. Natural gas is stored during the summer season for withdrawal during the following winter heating season. Without this storage capacity, LG&E would be required to purchase additional natural gas and pipeline transportation services during winter months when customer demand increases and the prices for natural gas supply and transportation services are typically at their highest. Several suppliers under contracts of varying duration provide competitively priced natural gas. At December 31, 2011, LG&E had an 11 Bcf inventory balance of natural gas stored underground with a carrying value of $53 million.

Represents the operations of WPD Midlands since the acquisition date, recorded on a one-month lag, including revenue from external customers of $790 million (pre-tax). This amount excludes acquisition-related costs incurred by WPD Midlands.

Revenues related to the sale of energy are recorded when energy is delivered to customers. Because customers are billed on cycles which vary based on the timing of the actual meter reads taken throughout the month, PPL Electric records estimates for unbilled revenues at the end of each reporting period. Such unbilled revenue amounts reflect estimates of the amount of energy delivered to customers since the date of the last reading of their meters. The unbilled estimate is based on daily load models, the meter read schedule, and actual weather data. The unbilled accrual is based on estimated usage for each customer class, and the current rate schedule pricing. At December 31, 2011 and 2010, PPL Electric had unbilled revenue of $98 million and $134 million.

Administrative and general costs increased in 2010 compared with 2009, primarily due to acquisition-related costs of $17 million incurred in 2010, higher bad debt costs of $6 million and PPL support charges of $3 million incurred for two post-acquisition months in 2010, partially offset by lower pension costs of $6 million. Bad debt costs increased in 2010 compared with 2009, due to higher billed revenues and a higher net charge-off percentage partially offset by increased late payment charges. Pension costs decreased in 2010 compared with 2009, due to favorable asset performance in 2009.

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