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PPL Corporation has reached a cooperative agreement with local residents, community groups, state and federal resource agencies and private interest groups that will ensure a balance among the many uses of Lake Wallenpaupack for the next 40 years. The settlement agreement is part of the relicensing process for the Wallenpaupack hydroelectric project near Hawley, Pa. PPL has filed the agreement with the Federal Energy Regulatory Commission and is asking that the terms of the agreement be included in the new license.

"The work that has been done through this collaboration is a tremendous achievement because it contains benefits for everyone," said Dennis Murphy, vice president and chief operating officer of PPL's eastern fossil and hydro generation subsidiary. "We've managed to balance the need to use Lake Wallenpaupack's water for power generation with the recreational and environmental needs of the community, including flood control and drought management."

Constructed in 1926, the Lake Wallenpaupack facility can generate 44 megawatts of electricity. In addition to its hydro generation role, the 5,700- acre man-made lake plays a critical role in regional water management and is a popular location for year-round outdoor recreation.

PPL's license to operate the Wallenpaupack hydroelectric generating project expires this year. As part of the settlement agreement, PPL is asking FERC to renew its operating license through 2044.

In return, PPL has agreed to enhance the trout fishery along a six-mile section of the Lackawaxen River downstream of the project at an expected operating cost of about $8 million. The company also will fund more than $2.5 million in various environmental and water monitoring studies to be conducted by the U.S. Fish and Wildlife Service, the U.S. National Park Service and the Lake Wallenpaupack Watershed Management District.

In addition, PPL will make shoreline fishing improvements at various sites to allow access by people with disabilities, fund a total of $440,000 of recreational fishing and boating enhancements through the Pennsylvania Fish and Boat Commission and provide $150,000 for habitat restoration projects in the Upper Delaware River Basin.

The company also will restrict generation during trout season, initiate whitewater boating releases, construct a trail from the Wallenpaupack Environmental Learning Center to the wetlands area below the dam and develop related educational programs, as well as provide support to the Lake Wallenpaupack Recreation Council and to Palmyra Township's beach facilities.

Participants in the settlement agreement included representatives of the U.S. Fish and Wildlife Service, the U.S. National Park Service, the Pennsylvania Fish and Boat Commission, Lake Wallenpaupack Watershed Management District, local municipalities, the Southern Wayne Regional Chamber of Commerce, local community associations and area recreation organizations.

"Lake Wallenpaupack is important to the region and to PPL's generation mix, which includes coal, natural gas, oil and nuclear units, as well as hydroelectric power," Murphy said. "By working with these groups, we have ensured that future operating plans and lake policies best reflect company, community and environmental needs."

PPL began the five-year process to renew its FERC license to operate Lake Wallenpaupack and the hydroelectric project in 1999. Since that time, the company has held more than 30 meetings with key stakeholders and the public to gain a clear understanding of the concerns that needed to be addressed. The result of that community outreach is this settlement agreement, Murphy said. PPL filed the formal relicensing application in 2002. The settlement agreement resolves the remaining issues. FERC is expected to act on the application in September.

A copy of the settlement agreement, as well as the license application, can be found http://www.pplweb.com/wallenpaupack/.

PPL Corporation (NYSE: PPL), headquartered in Allentown, Pa., controls more than 12,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets and delivers electricity to nearly 5 million customers in Pennsylvania, the United Kingdom and Latin America. More information is available at http://www.pplweb.com/.

http://www.pplweb.com

SOURCE: PPL Corporation

CONTACT: Connie Walker of PPL Corporation, +1-610-774-5997, or fax,
+1-610-774-5281

Web site: http://www.pplweb.com/wallenpaupack/