Greater Latrobe students enrolled in Kennametal's Young Engineers program work on their classroom projects associated with the initiative, which launched this school year. Photo courtesy of Kennametal Inc..

Editor’s Note: This is the first in a series of articles examining the connection between the private sector and education programs around the commonwealth.

Kennametal’s Young Engineers Program has been an eye-opening experience for Austin Faddish and Marisa Larkin.

So much so that it solidified Faddish’s desire to pursue an engineering degree after graduation from high school and helped Larkin clear up any doubts she may have had about a future career in that field.

Faddish and Larkin are two of 26 Greater Latrobe High School students to participate in the inaugural class of Kennametal’s Young Engineers Program this school year. The 15-week program features a combination of classroom discussions, hands-on projects, and mentoring led by Kennametal’s world-class research, development and engineering team members. Kennametal is a Latrobe-based manufacturing company.

“A lot of the hands-on stuff we did really opened my eyes up,” Faddish, who hopes to be accepted to study mechanical engineering at the U.S. Naval Academy, said. “It really showed a lot of the different aspects of engineering that are available. We had to do a business model to take back from design to implementation and through that we really got to see all the things that go into the manufacturing of a product, which I know was a really eye-opening experience for most of the students.”

“It really has given me a lot of information on engineering,” Larkin, who will study engineering this fall at Swanson School of Engineering (Pitt), said. “I used to think that engineers sit at a desk or they build bridges, but after the program I realized there is a lot more to it than that. Like Austin said, there so many things you can do in manufacturing. The program really showed me that those opportunities exist.”

Designed to showcase engineering careers and modern manufacturing through experience, the program is one of many education and training programs in place across the company’s global operations, according to Carlos Cardoso, President and CEO, Kennametal. Cardoso is also the co-chair of the Team PA-led Governor’s Manufacturing Advisory Council.

“As manufacturers, we have a responsibility to educate our young people about the exciting career opportunities in our industry and help build the manufacturing workforce of the future,” Cardoso said. “Our goal with the Young Engineers program is to provide the opportunity for exploration and discovery about the great jobs in manufacturing and engineering, and in the process find the next Phillip McKenna – Kennametal’s founder.”

Students spend two days a week at a modified classroom and listen to and interact with different engineers, who address various topics within their fields. Cindy Pompelia, who teaches AP calculus and chemistry at the high school and has an engineering degree, said the program has provided tremendous value to her students.

“The program has been phenomenal,” Pompelia said. “Students often ask me about engineering, and although I used to be an engineer, it is still difficult, in the context of the classroom, to explain what engineering is all about. But the students, by going to Kennametal, have experienced it first-hand. To be able to see the daily life of an engineer is an amazing experience that is nearly impossible to duplicate within the confines of the classroom.”

The engineer program has fit nicely with classroom instruction, Pompelia said. Students practiced public speaking skills prior to giving their project presentations; researched Kennametal to learn more about the company; studied corporate responsibility and then conducted a public service project with a local food bank that is supported by Kennametal; learned how to be comfortable in a business setting; and discussed employee expectations.

“What we saw at Kennametal really opened up their eyes to the manufacturing world and what they can do in that environment,” Pompelia said. “I also wanted them to learn what their expectations are in college for studying engineering, so we had two college students come in and share their experiences with the students.”

One of the side benefits has been the fostering of personal relationships that have developed between the students and their mentors, which Pompelia feels has aided her students in experiencing – and developing – a passion for engineering.

“It’s a passion that some of the students have for that career, a passion they would not get by reading out of a textbook or watching a video about companies like Kennametal,” Pompelia said. “By actually interacting with the employees, developing relationships and seeing the dedication of the employees to their work, I think inspires the students to continue and pursue a career similar to theirs.”

Pompelia said the program has been so successful in its first year that she would like to see it expanded to include technical trade students.

“They would see that there is a potential for a lot of really, really good jobs for them and I think they would gain a greater appreciation for the amount of skills required, particularly in math and science,” Pompelia said. “When the students go over and see the Kennametal facilities, it is very impressive and it underscores their desire to have a job with an organization like Kennametal. We’ve been very fortunate that Kennametal has been willing to pay for a vast portion of the cost of this program.”

Pompelia added that she would like to see other schools have the same kind of opportunity with other manufacturing companies.

“Just from our personal experience, it is definitely something we would like to see duplicated in other school districts and with other companies and just continue to grow because it is very beneficial to the students,” Pompelia said. “It would help decrease the void with the problem of developing skilled workers.”

To submit story ideas to be considered for Education Innovation, please send an email with your contact information and a short description of the program you would like featured here to news@teampa.com with the words Education Innovation in the subject line.

Investor Exchange program features state Labor and Industry Secretary Julia Hearthway

Labor and Industry Secretary Julia Hearthway, second from right, addresses Team PA investors at the Foundation's Investor Exchange program.

Labor and Industry Secretary Julia Hearthway discussed a number of important issues with Team Pennsylvania Foundation investors at the Foundation’s latest Investor Exchange program.

Secretary Hearthway discussed unemployment compensation, initiatives to match employers with the unemployed and education training programs.

Following her comments, numerous investors engaged Hearthway in an informative and issues-oriented question-and-answer session.

Team PA’s Investor Exchange program is an ongoing series of dialogues with Foundation investors and key state leaders in an informal and relaxed setting. Speakers update members on their work and conduct a question-and-answer session on topics of interest to investors related to the speaker’s work.

The next Investor Exchange program will be announced shortly.

Investors interested in attending the next IE event can contact Team PA’s Relationship Manager Katie Thiemann at kthiemann@teampa.com or by calling 717-233-1375 to make their reservation.

Investments in business site development to spur new investment and jobs

The Commonwealth Financing Authority (CFA) Board approved low-interest loans through the Business in Our Sites and PennWorks programs to support site redevelopment that is anticipated to create over 5,000 new jobs.

“The governor is committed to state government partnering with the private sector to spur job creation and economic growth in the commonwealth,” said Department of Community and Economic Development Secretary C. Alan Walker. “These two programs are a great example of this model. Developing shovel-ready sites for new industry will position the commonwealth to attract new investment and jobs.”

In August, the CFA voted to deploy funds that were available from loan repayments and projects that either did not use all of the awarded funding or did not proceed. Today, the CFA approved $36.3 million in low-interest loans through the Business in Our Sites (BOS) program and $4.7 million in grants and loans through the PennWorks program to support projects in nine counties. The projects are expected to create at least 5,054 jobs.

The BOS program provides low-interest loans for the acquisition and development of key sites for future use by businesses. PennWorks provides grants to municipalities and municipal authorities and loans to municipalities, municipal authorities, industrial development corporations and investor-owned water or wastewater enterprises for projects which construct, expand or improve water and wastewater infrastructure. Improvements must be directly related to an economic development project.

For more information about the CFA and other economic development initiatives in Pennsylvania, call 1-866-466-3972 or visit newPA.com.

Roads & Bridges magazine ranked the South Street Bridge Reconstruction as #1 and the I-78 & Garden State Parkway Interchange 142 Improvement Project as #2 in its Top 10 Bridges 2011 awards program.

This awards program recognizes the best in bridge construction for 2011. Gannett Fleming, a global infrastructure firm, served as the lead designer and engineer-of-record on both of these projects. The Top 10 Bridges was published in the November 2011 issue of Roads & Bridges magazine.

South Street Bridge Reconstruction

The new $67.5 million South Street Bridge, located in Philadelphia, is the largest, most complex bridge project in the history of the Philadelphia Streets Department. It extends over, under, and adjacent to four railroads, an urban interstate and its ramps, a train station, and a university building and fields within the approximately 1,400-foot-long limits of the bridge proper and its abutting 400-foot-long U-shaped retaining wall segment.

The iconic element of the new bridge is the four lantern-like towers of lighted glass panels with pedestrian lookouts. Nearly 38,000 LEDs comprise the four towers. Each LED is fully programmable and capable of displaying 16.4 million colors. While lighting such as this is a familiar application on buildings, this is the first-ever application on a bridge. The towers’ lights are scheduled to be operational in early 2012.

A substantial effort was made to accommodate bicyclists, pedestrians, and the community by incorporating the widest bicycle lanes in the city, which are painted green, thereby increasing the visibility and safety of bicyclists.

Gannett Fleming provided preliminary design, final design, and engineering services during construction.

I-78 & Garden State Parkway Interchange 142 Improvement Project

The Interstate 78 (I-78) and Garden State Parkway (GSP) Interchange 142 Project located in Essex and Union counties, N.J., improved the daily commute for 23,000 motorists by providing the long-awaited missing movements between the GSP and I-78. The $165 million rehabilitation and reconstruction project significantly improves traffic flow and safety around the interchange of these two superhighways by connecting GSP northbound to I-78 westbound and GSP southbound to I-78 eastbound.

The bridge components included three multi-span flyover ramp bridges, two simple-span ramp bridges, and 10 bridge widenings along I-78.

The completion of this project eliminates approximately 1,200 vehicles per hour from making a two mile U-turn and reduces the need for approximately 250 vehicles per hour to exit the GSP to use local roads to access I-78. Eliminating these inconvenient maneuvers with flyover ramps in both directions saves motorists 10 to 20 minutes at peak travel times and keeps highway traffic on the highway. These connections also enhance safety and operations at the interchange with improved sight distance, wider ramp geometry, and increased weaving distance.

Gannett Fleming was the designer of record, providing civil, structural, facilities design, environmental services, and construction engineering for improvements to Interchange 142 on the GSP and I-78.

Under a contract from the Air Force Research Laboratory Energy and Environment Team (AFRL/RXSC E2), Concurrent Technologies Corporation (CTC) has identified, tested, and recommended alternative sealant technologies to reduce industrial toxic chemical usage at Ogden Air Logistics Center (OO-ALC), the primary United States Air Force (USAF) facility for maintaining and overhauling aircraft landing gear. OO-ALC is a part of Hill Air Force Base (AFB) located in northern Utah.

Aluminum landing gear components are anodized at OO-ALC to provide enhanced corrosion resistance, paint adhesion, and wear resistance.
However, a sodium dichromate sealing operation is needed to complete the anodizing process, and this sealer contains hexavalent chromium, which is listed on the Environmental Protection Agency’s (EPA’s) list of industrial toxic chemicals that are targeted for voluntary reduction or elimination.

Additionally, the Department of Defense (DoD) issued a policy directive in April 2009 that restricts the use of compounds such as hexavalent chromium on military vehicles and weapon systems. Because of this, CTC was tasked to find alternatives that eliminated the use of hexavalent chromium for sealing operations.

To find a solution, CTC worked with OO-ALC personnel to define their engineering requirements and then identified and tested a number of non-chromium alternatives that could meet those requirements. One of the alternatives, a permanganate-based seal, was found to have performance characteristics similar to, and in some cases better than, the currently used sodium dichromate seal. The results were presented to OO-ALC personnel in August 2011. Discussions continued with OO-ALC Landing Gear Process Engineers in preparation for presenting results to the Engineering Review Board in October 2011.

“In October 2011, CTC was informed that Hill AFB had approved the use of our alternative solution, a chrome-free anodized seal, for landing gear—wheels, brakes, and struts,” said Mr. David A Schario, CTC Vice President, Physical Sciences & Engineering. “CTC’s goal has always been to make a positive impact with our work and find the right solution for our client. The implementation of the chromium-free sealing technology will improve worker safety and reduce the environmental burden at Hill AFB and OO-ALC.”

Concurrent Technologies Corporation (CTC) is an independent, nonprofit, applied scientific research and development professional services organization providing innovative management and technology-based solutions to government and industry. As a nonprofit 501(c)(3) organization, CTC’s primary purpose and programs are to undertake applied scientific research and development activities that serve the public interest.

For more information, visit www.ctc.com.

The utilities’ chosen route for the Susquehanna-Roseland transmission project is the best alternative for the power line needed by millions of electric customers in the region, the companies building the project told the National Park Service in formal comments filed Tuesday (1/31).

Public Service Electric and Gas Co. and PPL Electric Utilities Corp. also provided more details on their proposal to mitigate for unavoidable impacts of the project by preserving thousands of acres of land to enhance public enjoyment of natural resources in the area.

Below is a summary of key points in the utilities’ comments:

Other NPS alternatives would have more impact: Other alternative routes proposed by the National Park Service would require the companies to cut new corridors through forests and communities in Pennsylvania and New Jersey. This would require significantly more forest clearing. The companies’ route – already approved by regulators in both states – uses a corridor that already exists.

Utilities’ route follows existing power line corridor through NPS areas: There already is a transmission line through the three areas of the National Park Service. The line was there decades before the park units were created. Using the pre-existing, cleared corridor for the Susquehanna-Roseland project makes the most sense to limit overall regional impact.

“No-action” alternative does not prevent impacts: If the National Park Service chooses the “no action” alternative, the utilities still will need to rebuild the 85-year-old transmission line that now crosses the three NPS units. This reconstruction project will have the same construction impacts as the utilities’ chosen alternative, and will replace the current lattice-style towers with steel poles between 130 feet and 160 feet high, as required by today’s design standards. In addition, “no action” could lead to reliability problems in the Northeast power grid.

Utilities already have property rights through NPS lands: The companies have an existing property easement through the three National Park Service units that provides the legal right to rebuild the existing power line. The line must be rebuilt because it is nearing the end of its useful life.

Susquehanna-Roseland project does not require significant widening of existing right of way: The current utility corridor through the three National Park Service units is four miles long with widths of up to 200 feet. The only additional right of way and clearing needed by the utilities to build the Susquehanna-Roseland line is 50 feet of additional right of way for 0.7 miles where the corridor is now 100 feet wide. The draft environmental impact statement incorrectly states that the existing cleared corridor would have to be much wider.

Additional information on mitigation

The utilities also provided additional detail on their proposal to mitigate for unavoidable impacts of the Susquehanna-Roseland project, if the National Park Service approves the utilities’ chosen route.

First, the utilities will avoid and minimize impacts by using best management practices during construction of the power line, including measures identified by the National Park Service in its draft environmental impact statement. The best way to minimize impact is to use the existing corridor rather than cutting new corridors in Pennsylvania and New Jersey, the comments said.

Recognizing that building the Susquehanna-Roseland line would have unavoidable impacts, the utilities have proposed as compensatory mitigation the purchase or preservation of thousands of acres of land – identified as priorities by conservation groups – to expand public landholdings, to support the mission of the National Park Service and the U.S. Department of the Interior, and to enhance the enjoyment of the public.

Areas and agencies that would benefit directly from these purchases would be:

• Delaware Water Gap National Recreation Area.
• Appalachian National Scenic Trail.
• Cherry Valley National Wildlife Refuge.
• Middle Delaware National Scenic and Recreational River.
• New Jersey and Pennsylvania state land conservation agencies.
• Other natural, conservation and recreational agencies and interests.

The companies already have identified parcels on the market, and have matched this list to the priorities identified as particularly important to the mission of the National Park Service, the U.S. Department of the Interior, and other conservation agencies and groups.

The final value of the mitigation package will depend on the final assessment of impacts determined by the National Park Service. The utilities believe, based on their own estimates at this time, that the cost of land purchases would be $30 million to $40 million.

The utilities would establish and endow the Middle Delaware Mitigation Fund, to be administered by a nonprofit organization. Monies from the fund would be used to preserve, restore and enhance the Delaware Water Gap National Recreation Area, the Appalachian National Scenic Trail, the Cherry Valley National Wildlife Refuge, and the Middle Delaware National Scenic and Recreational River.

The utilities would provide half the money for the fund when construction begins in either the Delaware Water Gap National Recreation Area or across the Appalachian Trail, and would provide the balance of the funds when construction is complete and the Susquehanna-Roseland power line is placed in service.

“We have made a compelling case that our chosen route is the overall best path to provide for the needs of electric customers while minimizing impacts,” said Ralph LaRossa, president and chief operating officer of PSE&G, and David G. DeCampli, president of PPL Electric Utilities, in a joint statement.

“Our mitigation proposal would provide significant benefits for the public, and would more than offset unavoidable impacts of this needed project.”

The National Park Service has said it will announce its decision on the route in March.

The new Susquehanna-Roseland power line is being built to maintain the reliability of the electric grid for millions of people in the Northeast region. In addition, it will save consumers more than $200 million per year by relieving congestion on the power grid, which will reduce electric bills for some customers.

The new power line will run from Berwick, Pa., to Roseland, N.J. The independent regional power grid operator, PJM Interconnection, ordered the new line to prevent violations of national standards for the operation of the nation’s electric power grid. PJM recently reconfirmed the need for the line. Construction of the line will create thousands of jobs for the region.

PPL Electric Utilities, a subsidiary of PPL Corporation (NYSE: PPL), provides electric delivery services to about 1.4 million customers in Pennsylvania and has consistently ranked among the best companies for customer service in the United States. More information is available at www.pplelectric.com.

SOURCE PPL Electric Utilities

Carlos Cardoso, right, President & CEO, Kennametal, Inc. listens to a comment from Tighe King, left, Perform Group, LLC, at a meeting of the Governor's Manufacturing Advisory Council.

Editor’s Note: This is the second in a series of articles examining the state of manufacturing in Pennsylvania as part of the Team PA-led Governor’s Manufacturing Advisory Council.

Carlos Cardoso is on a mission on behalf of manufacturing.

Part of that mission is to serve as co-chair on the Team PA-led Governor’s Manufacturing Advisory Council, which has been charged by Governor Corbett to make recommendations to the Legislature and him on ways to strengthen that industry sector.

Noting his are industry-driven concerns, Cardoso’s priorities run the spectrum from addressing burdensome regulatory constraints to workforce development needs to making permanent Research and Development tax credits.

“We need to strike a balance between protecting the environment and not overburdening business, which makes us uncompetitive,” Cardoso said. “I am a proponent for protecting the environment, but I also feel we need to have common-sense regulations.”

Concerning the issue of workforce development, Cardoso said school systems are ill-equipped to prepare students to meet the demands of a 21st century global economy. Cardoso, President & CEO of the Latrobe-based business, Kennametal, Inc., said his company has available positions but not enough people qualified to fill those openings.

“We need to reinvent our technical schools so we can ensure we are graduating kids from those schools that have the necessary abilities and the necessary skills (to be workforce-ready),” Cardoso said. “In K-12, we definitely need to, again, reinvent that so we have kids equipped with the science and math tools needed to succeed in life. K-12 should be laying the educational foundation for a child and college should open the door and open students’ mind so they can do and be whatever they want to be in life.”

Cardoso said Pennsylvania-based businesses are overly taxed, which cripples the commonwealth’s economic competitiveness with other states.

“We need to create an environment where companies are not punished to have their businesses in the state,” Cardoso said. “Our reality is that our political system rewards what I call the ‘vocal minority.’ We try to govern for the vocal minority instead of governing for the quiet majority. We need the political will to work on behalf of the quiet majority, and engage the silent majority in the political process.”

As an individual who has spent nearly all of his working life in manufacturing, Cardoso is one of the industry’s biggest cheerleaders and spokesmen. Cardoso labors diligently to change misconceptions about manufacturing and promotes his industry to young people to show they too can have successful careers and earn family-supporting wages.

In 2011, Kennametal launched their Young Engineers program, an initiative designed to attract young students into engineering and manufacturing careers.

“As manufacturers, we have a responsibility to educate our young people about the exciting career opportunities in our industry and help build the manufacturing workforce of the future,” Cardoso said. “Our goal with this program is to provide the opportunity for exploration and discovery about the great jobs in manufacturing and engineering.”

Addressing misconceptions surrounding manufacturing is apparently needed, according to a recent national survey commissioned by Kennametal.

The survey shows that much of America still views manufacturing as a stagnant sector that is losing jobs. Only 9 percent of the 1,000 polled believe manufacturing has been a bright spot in the economy over the past three years, and only 11 percent believe the sector is growing.

“People think we don’t make anything anymore,” Cardoso said in a recent webcast announcing the survey results at the National Press Club in Washington. “They’re wrong. We do. It’s time for the industry to reintroduce itself to the American public.”

Cardoso said the survey was conducted to gauge people’s perception of manufacturing.

“We felt if we approached this from a perception perspective, in conjunction with the statistics that we have been showing for decades, that we then could wake up people and make a bigger difference,” Cardoso said. “I feel the survey shows that manufacturers have a lot of work to do.”

The poll also found that:

• 17 percent think manufacturing has a positive outlook in the future

• 68 percent feel the perceived lack of manufacturing jobs is more significant than the lack of training required to fill those jobs

• 71 percent said they would not recommend a career in manufacturing to young Americans

• Conversely, 65 percent believe manufacturing jobs are desirable and are considered well-paying and high-tech, and 70 percent believe manufacturing jobs are important for domestic job creation.

The reasons Cardoso spends so much time working to improve manufacturing are quite simple.

“My biggest interest is really to see, first of all, America succeed and for us to have an environment where manufacturing can thrive because I really believe manufacturing drives the middle class,” Cardoso said. “My passion and my desire are to see the middle class in this country thrive. We can’t have a sustainable political and social/economic environment without a strong middle class.”

“Secondly, I have lived in the state of Pennsylvania for 10 years and I have met and worked with a lot of great people in this business,” Cardoso added. “When you think about Pittsburgh, it was one of the great industrial centers of the world, and Pennsylvania was one of the top states for manufacturing. We deserve – and have the right – to be one of the top manufacturing states again.”

Read more about the first meeting of the Governor’s Manufacturing Advisory Council.

More background and the composition of the Governor’s Manufacturing Advisory Council members.

The new year will bring continued employee satisfaction and organizational changes for DVL Group, a provider of Emerson/Liebert data center infrastructure solutions in Pennsylvania, New Jersey, and Delaware.

Joe Bedics will become Chief Operating Officer of DVL. In this role he will be responsible for the internal administrative functions, including human resources, IT, accounting and marketing.

Fred Franks will add the role of Treasurer to his current position as Chief Financial Officer of DVL. As Treasurer/CFO, he will be responsible for managing the financial risk of the company, including banking, insurance and bonding company relationships, cash management and investments and oversight of the Employee Stock Ownership Plan (ESOP).

Gary Hill will assume the role of President of DVL and will take on responsibility for the Emerson/Liebert data center solutions business.

Bob Gusciora will become President of Strategic Account Services and will run the integrated power sales and service businesses as well as the HVAC sales and service business.

Mike Beck will take over the role of CEO in 2012, assuming overall responsibility for all DVL operations.

Mike Murphy will become Chairman. In this capacity, he will set the long-term vision and strategic direction of the company and oversee the board of directors.

On Jan.1, 2012, DVL converted to 100% employee ownership.

“These changes will make 2012 an exciting year for DVL,” said CEO Mike Beck. “But one thing the company does not plan on changing is its recognition as one of the Best Places to Work in PA, an honor bestowed on DVL for the fifth year in a row by the Central Pennsylvania Business Journal.

“Our partnership with many of the State of Pennsylvania programs has allowed us to train and grow our company. We are thankful to our vendors and customers; they have allowed DVL to become a Great Place to Work, an honor we owe to our great team of associates.”

About DVL
Using quality solutions from industry leader Liebert, DVL, Inc. builds dynamic data centers that fit your exact needs – both today and tomorrow. The company’s innovative “Strategy First” technique solves customer’s server room design challenges.
Learn more at: www.dvlnet.com.

Rep. Dave Reed (R-Indiana) discusses why he co-sponsored a bill to close the Delaware Loophole at a press conference at the State Capitol.

State Representative Dave Reed (R-Indiana) is a prime sponsor of a bill to close a corporate tax loophole that he says stifles job growth and creates an unlevel business environment in Pennsylvania.

Reed, who serves on the Team Pennsylvania Foundation Board of Directors, and Rep. Eugene DePasquale (D-York) want to end the Delaware Loophole that allows multi-state corporations to legally reduce their Pennsylvania tax liability by transferring ownership of certain assets to an affiliated company in Delaware.

“Rep DePasquale and l believe any discussion about reforming business taxes should include a move to close this loophole on businesses that use this for the sole purpose of Pennsylvania tax avoidance,” Reed said in a telephone interview. “Creating a competitive environment and a level playing field for job creators is vital to our economic recovery, and this proposal accomplishes both goals.”

Estimating the loophole loses the commonwealth between $30 and $40 million annually, Reed said passage of the bi-partisan bill would enable the state to: gradually reduce the corporate net income tax during the next six years from 9.99 to 6.99 percent; implement a single sales apportionment factor; and phase out the cap on net operating losses over a nine-year period.

“Year after year, the state ranks among the worst in the nation for the cost of doing business, so it’s clear that comprehensive business tax reforms are needed,” said Reed. “Closing the Delaware Loophole will bring consistency to our tax structure and lower the tax burden, showing that Pennsylvania is a great place to do business.”

Rep. Reed said Pennsylvania’s corporate net income tax is the second highest in the nation and phasing out the net operating loss cap would encourage business investment and growth. The tax credit allows companies to use current and past losses to offset future costs.

“A number of private companies have told us that Pennsylvania would be more attractive if we made these moves – especially with the CNI tax rate,” Reed said. “Implementing a single sales factor removes the disincentive for businesses not to locate their facilities here.”

The loophole has garnered significant attention over the years and has been criticized as a flaw in Pennsylvania’s business tax structure.

“A successful business is not built on hiring high-priced tax attorneys and accountants to avoid paying taxes,” Reed said. “It’s about having a good business model, working long hours, and making sacrifices. Most Pennsylvania businesses do not use this tax avoidance mechanism, which is all the more reason to close the loophole to ensure fairness among all employers.”

If passed, the law would target very specific transactions among close business affiliates and only affect businesses that are taking advantage of the loophole for the sole purpose of tax avoidance in Pennsylvania.

“I can’t think of a better way to create a more positive and equitable business environment than by closing the loophole and lowering tax rates for all companies,” Reed added.

PPL Electric Utilities is allocating more than $45 million this year in a stepped-up effort to help keep trees and other vegetation from affecting its power lines and contributing to power outages.

More than 8,600 miles of the utility’s power lines will be part of vegetation management efforts in 2012, more than the distance from New York to Hong Kong. PPL Electric Utilities owns and maintains nearly 50,000 miles of power lines and vegetation management efforts are conducted on a rotating basis to ensure the whole system is regularly patrolled and maintained.

The planned expenditure for 2012 is up about $12 million over last year.

The importance of vegetation management was highlighted this past October, when outages from a Halloween weekend snowstorm affected about 388,000 customers. Many of those outages were due to leaf-laden trees and branches toppled by heavy, wet snow.

“The effects of that snowstorm are a vivid example of the need for this work,” said Gregory N. Dudkin, senior vice president of Operations for the utility. “We’re adding to an already comprehensive vegetation management effort.”

Vegetation control along power lines is just one aspect of a system maintenance program for lines, substations and associated equipment. For more information about the program, visit www.pplweb.com/vegetation

“All this work is crucial to ongoing efforts to maintain the safety and reliability of electric service for our customers,” Dudkin said. “Both federal and state regulators hold electric utilities to high standards for reliability. Good, sound vegetation management practices help us meet those expectations.”

The utility’s vegetation management program uses industry best practices to help keep power lines free from hazards and maintain safe and reliable service for customers. The program routinely consults with customers about tree work, removes hazard trees and educates the public about proper planting in power line areas.

PPL Electric Utilities, a subsidiary of PPL Corporation (NYSE: PPL), provides electric delivery services to about 1.4 million customers in Pennsylvania and has consistently ranked among the best companies for customer service in the United States. More information is available at www.pplelectric.com.

SOURCE: PPL Electric Utilities

2012 Environmental Grant program applications being accepted

American Water Works Company, Inc. (NYSE:  AWK), the largest publicly traded U.S. water and wastewater utility company, announced today that applications are now being accepted by its participating state subsidiaries for the company’s 2012 Environmental Grant Program awards.

The grant awards will be available in American Water service areas in 10 states: California, Illinois, Indiana, Iowa, Kentucky, Missouri, New Jersey, Pennsylvania, Tennessee and West Virginia.

Established in 2005, American Water’s Environmental Grant Program offers funds for innovative, community-based environmental projects that improve, restore or protect the watersheds, surface water and/or groundwater supplies through partnerships.

“American Water is committed to ensuring water quality through testing and treatment, as well as through consumer education and community source protection programs,” said Debra Vernon, Manager of Corporate Responsibility. “We are all environmental stewards in protecting our water supplies, and this program is one way we help communities play an active role in this important effort.”

To qualify, proposed projects must:

• Address a source water or watershed protection need in the community
• Be completed between May 1, 2012 and November 30, 2012
• Be a new or innovative program for the community, or serve as a significant expansion to an existing program
• Be carried out by a formal or informal partnership between two or more organizations
• Provide evidence of sustainability
• Be located within one of American Water’s service areas in the following states: California, Illinois, Indiana, Iowa, Kentucky, Missouri, New Jersey, Pennsylvania, Tennessee and West Virginia

Information and application requirements can be obtained directly from participating American Water state subsidiaries, or on the company Web site at www.amwater.com/EnvironmentalGrantProgram

Applications must be postmarked by March 10, 2012 and recipients will be notified by April 9, 2012.

In 2011, a total of 35 projects throughout American Water’s service areas in eight states were awarded grants totaling more than $155,600.

Founded in 1886, American Water is the largest publicly traded U.S. water and wastewater utility company.  With headquarters in Voorhees, N.J., the company employs more than 7,000 dedicated professionals who provide drinking water, wastewater and other related services to approximately 15 million people in more than 30 states as well as parts of Canada. More information can be found at www.amwater.com.