SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 10, 2001
PPL Corporation
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(Exact Name of Registrant as Specified in Its Charter)
Pennsylvania 1-11459 23-2758192
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(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
Two North Ninth Street, Allentown, Pennsylvania 18101-1179
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(Address of principal executive offices)
Registrant's Telephone Number, including Area Code: (610) 774-5151
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PPL Montana, LLC
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(Exact Name of Registrant as Specified in Its Charter)
Delaware 333-50350 54-1928759
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(State or other jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
303 North Broadway, Suite 400, Billings, Montana 59101
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(Address of principal executive offices)
Registrant's Telephone Number, including Area Code: (406) 869-5100
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ITEM 5. OTHER EVENTS
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On June 26, 2001, the Montana Public Service Commission (MPSC) issued an
order (MPSC Order) in which it found that The Montana Power Company (MPC) must
continue to provide electric service to its customers at tariffed rates until
its transition plan under the Montana Electricity Utility Industry Restructuring
and Customer Choice Act is finally approved, and that purchasers of generating
assets from MPC must provide electricity to meet MPC's full load requirements at
prices to MPC that reflect costs calculated as if the generation assets had not
been sold. PPL Montana, LLC, a subsidiary of PPL Corporation, purchased MPC's
interest in two coal-fired plants and 11 hydroelectric units in 1999.
On July 10, 2001, PPL Montana announced that it had filed a complaint
against the MPSC with the U.S. District Court in Helena, Montana, challenging
the MPSC Order. In its complaint, PPL Montana asserted, among other things, that
the Federal Power Act preempts states from exercising regulatory authority over
sale of electricity in wholesale markets, and requested the court to declare the
MPSC action preempted, unconstitutional and void. In addition, the complaint
requested that the MPSC be enjoined from seeking to exercise any authority,
control or regulation of wholesale sales from PPL Montana's generating assets. A
copy of the press release is attached hereto as Exhibit 99.1 and is incorporated
herein by reference.
In an unrelated matter, on July 13, 2001, PPL Montana filed an action in
state court and a responsive pleading in federal court, both related to a breach
of contract by Energy West Resources, Inc. (Energy West), a Great Falls,
Montana-based energy aggregator. In the federal action, PPL Montana requested
that the court refrain from issuing a preliminary injunction and lift a
temporary restraining order that had been issued on July 6, 2001, prohibiting
PPL Montana from seeking to terminate the contract under which it supplies
energy to Energy West. In the state action, PPL Montana is seeking a judgment
that Energy West violated the terms of the supply contract and should pay
damages of at least $7.5 million. A copy of a press release regarding these
matters is attached hereto as Exhibit 99.2 and is incorporated herein by
reference.
PPL Montana is unable to predict the ultimate effect of the MPSC order or
the outcome of these actions.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
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(c) Exhibits
99.1 Press Release, dated July 10, 2001, regarding claims by PPL Montana,
LLC relating to certain action by the MPSC.
99.2 Press Release, dated July 13, 2001, regarding a claim by PPL Montana,
LLC against Energy West, relating to an energy supply contract.
SIGNATURE
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Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrants have duly caused this report to be signed on their behalf by the
undersigned hereunto duly authorized.
PPL CORPORATION
By: /s/ James E. Abel
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James E. Abel
Vice President - Finance and Treasurer
PPL MONTANA, LLC
By: /s/ Paul A. Farr
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Paul A. Farr
Vice President, Chief Financial Officer
and Assistant Secretary
Dated: July 17, 2001