On October 28, 1999, PPL Electric Utilities and PPL EnergyPlus Co., LLC ("PPL EnergyPlus") entered into a Power Supply Agreement under which PPL, Inc. will supply the partial energy and capacity requirements with PPL EnergyPlus' competitively acquired retail load in the PJM Control Area within the States of New Jersey and Delaware. The Power Supply Agreement applies to sales of capacity and load following energy, as defined under the Power Supply Agreement, for delivery no earlier than November 1, 1999 and no later than December 31, 1999.

PPL Electric Utilities will supply PPL EnergyPlus with sufficient capacity to meet that portion of PPL EnergyPlus' capacity obligation under the Reliability Assurance Agreement Among Load Serving Entities in the PJM Control Area associated with PPL EnergyPlus' retail load that is located within the States of New Jersey and Delaware. PPL Electric Utilities will supply the amount of load following energy in excess of other sources of energy available to PPL EnergyPlus up to its full PJM requirements. The contract price consists of: (a) an option premium in the amount of $170,000 plus $300 per megawatt month multiplied by the largest monthly reservation; (b) a monthly charge for capacity; and (c) a monthly charge for load following energy. The rate for capacity is the deficiency rate determined pursuant to Schedule 11 of the Reliability Assurance Agreement. The rate for load following energy is 110% of the actual hourly PJM Locational Marginal Price at the delivery point.