PPL Corporation (NYSE: PPL) is a fundamentally different company compared with two years ago, having changed its business mix, nearly doubled its asset base and grown its market capitalization by 40 percent, the company’s top executive told shareowners Wednesday (5/16) at PPL’s annual meeting.

“We are forecasting that 70 percent of PPL’s 2012 ongoing earnings will come from our rate-regulated businesses in the United Kingdom, Kentucky and Pennsylvania,” said William H. Spence, PPL’s chairman, president and chief executive officer.

“In 2010, 73 percent of our ongoing earnings came from our supply business, which is driven by the ups and downs of wholesale electricity prices. And, over the past couple of years, the fluctuations in wholesale electricity prices have been decidedly down,” Spence said.

He said this repositioning of PPL was completed in a remarkably short time through the acquisition of regulated utility operations in Kentucky in 2010 and the United Kingdom in 2011 at a combined cost of about $14 billion. Even though the repositioning was accomplished with extraordinary speed, Spence said, the continuation of depressed wholesale electricity prices has proven that the company acted none too soon.

“The bottom line is this: Without the additional earnings from these rate-regulated operations, PPL’s earnings per share would be significantly depressed for 2012 and the foreseeable future,” Spence said. “The fundamental driver of our acquisitions in 2010 and 2011 was reducing risk for the company at a time of unprecedented turmoil in competitive electricity markets.”

For 2011, PPL’s earnings from ongoing operations were $2.73 per share, attaining the high end of the company’s 2011 forecast of $2.55 to $2.75 per share. In April 2011, PPL completed the acquisition of the former Central Networks electricity distribution businesses in central England and successfully integrated those operations into its Western Power Distribution affiliate in the U.K. by the first quarter of 2012. PPL’s U.K. affiliate, with more than 7.8 million customers across central and southwest England and south Wales, led the way in PPL’s earnings performance in both the fourth quarter of 2011 and the first quarter of 2012.

At the meeting, shareowners re-elected all PPL directors to one-year terms: Frederick M. Bernthal, retired president, Universities Research Association; John W. Conway, chairman, president and chief executive officer of Crown Holdings, Inc.; Steven G. Elliott, retired senior vice chairman of The Bank of New York Mellon Corporation; Louise K. Goeser, president and chief executive officer, Grupo Siemens S.A. de C.V.; Stuart E. Graham, retired president and chief executive officer of Skanska AB; Stuart Heydt, retired chief executive officer of Geisinger Health System; Raja Rajamannar, executive vice president, senior business, and chief transformation officer of Wellpoint, Inc.; Craig A. Rogerson, chairman, president and chief executive officer of Chemtura Corporation; PPL Chairman Spence; Natica von Althann, founding partner of C&A Advisors; and Keith H. Williamson, senior vice president, secretary and general counsel of Centene Corporation.

During the meeting, held at Lehigh University’s Zoellner Arts Center, PPL shareowners also voted on three other management proposals. They approved the 2011 compensation of PPL’s executive officers named in this year’s proxy statement; approved PPL’s 2012 stock incentive plan; and ratified the appointment of Ernst & Young LLP as the company’s independent auditing firm for the year ending Dec. 31, 2012. They also approved a shareowner proposal that requested the board to amend PPL’s governance documents to eliminate plurality voting for directors and provide for directors to be elected by a majority of votes cast at an annual meeting of shareowners. Although this last vote is non-binding, PPL’s board is expected to review the issue again before next year’s annual meeting.

PPL Corporation, headquartered in Allentown, Pa., through its affiliates, owns or controls about 19,000 megawatts of generating capacity in the United States, sells energy in key U.S. markets, and delivers electricity and natural gas to about 10 million customers in the United States and the United Kingdom. More information is available at www.pplweb.com.

“Earnings from ongoing operations” should not be considered as an alternative to reported earnings, or net income attributable to PPL, which is an indicator of operating performance determined in accordance with generally accepted accounting principles (GAAP). PPL believes that “earnings from ongoing operations,” although a non-GAAP financial measure, is also useful and meaningful to investors because it provides management’s view of PPL’s fundamental earnings performance as another criterion in making investment decisions. PPL’s management also uses “earnings from ongoing operations” in measuring certain corporate performance goals. Other companies may use different measures to present financial performance.

Statements contained in this news release with respect to future earnings are “forward-looking statements” within the meaning of the federal securities laws. Although PPL Corporation believes that the expectations and assumptions reflected in these forward-looking statements are reasonable, these statements are subject to a number of risks and uncertainties, and actual results may differ materially from the results discussed in the statements. Any such forward-looking statements should be considered in light of such important factors and in conjunction with PPL Corporation’s Form 10-K and other reports on file with the Securities and Exchange Commission.

SOURCE PPL Corporation

For further information: Dan McCarthy, +1-610-774-5758, PPL Corporation

Pennsylvania American Water announced today that eight watershed initiatives across the state have earned financial support through the company’s 2012 Environmental Grant Program. The recipients will receive a share of grant funds totaling approximately $35,600 for their community-based projects that improve, restore or protect watersheds.

A panel of judges selected the winners from more than 50 grant applications, which were evaluated on such criteria as environmental need, innovation, community engagement and sustainability.

Pennsylvania American Water awarded its 2012 Environmental Grants to Pennsylvania Environmental Council (Luzerne County), Southeastern Pennsylvania Resource Conservation and Development Council (Montgomery County), Derry Environmental Action Committee (Dauphin County), Carnegie Borough Shade Tree Commission (Allegheny County), Timmy’s Town Center (Lackawanna County), Butler County Department of Corrections (Butler County), East Pennsboro Township (Cumberland County), and Paddle Without Pollution (Allegheny County).

“As we mark the eighth year of our Environmental Grant Program, I’m very proud of the partnerships that we’ve developed with so many community groups that share our dedication to watershed protection and environmental stewardship,” said Pennsylvania American Water President Kathy L. Pape.

The following describes the winning Environmental Grant projects:

• Pennsylvania Environmental Council, Luzerne County
With the funding, the PEC will undertake an invasive species removal, riparian buffer planting and educational program involving Pennsylvania American Water’s property along the Huntsville Creek. The project will improve the creek’s water quality and educate volunteers about healthy riparian buffers. In addition to removing invasive Japanese Knotweed that contributes to stream bank erosion, the organization will replant the area with native species, trees and shrubs.

• Southeastern Pennsylvania Resource Conservation and Development Council, Montgomery County
To support volunteers working on environmental restoration and beautification projects throughout southeastern Pennsylvania, the grant will help provide tools, power equipment, safety gear and related supplies for the council’s mobile shed known as the Conservation Planting Trailer. The program makes cleanup projects, rain garden plantings, riparian buffers and other environmental projects easier to plan and implement.

• Derry Township Environmental Action Committee, Dauphin County
The committee plans to host a Water Protection Workshop to educate residents and businesses on storm water runoff and source water protection. The funding will also provide rain barrels to participants of the workshop, which will also serve as a model for future community partnerships on watershed protection.

• Carnegie Borough Shade Tree Commission, Allegheny County
The grant will support commission’s plans to plant a sunflower rain garden, which will educate residents on the use of rain gardens to alleviate runoff during rain events. A community mural and video documentary will commemorate the project and provide additional educational material on the project.

• Timmy’s Town Center, Lackawanna County
The organization will use the funding to develop an educational program entitled “Wet Paint” to educate children about watershed protection and resources. Additionally, the program will include decorating four benches to be placed along the Lackawanna River to encourage children to visit the river and foster environmental stewardship.

• Butler County Department of Community Corrections, Butler County
The grant will provide materials necessary for watershed cleanups along lakes, streams and reservoirs in the county. The project will collect, transport and dispose of litter from the waterways, as well as recycle the collected waste materials, whenever possible.

• East Pennsboro Township, Cumberland County
To improve the quality of the waterways impacted by the community’s storm sewer system and resulting storm water runoff, the grant will fund the purchase storm sewer curb markers for raising public awareness that storm water content drains into local water sources. The project will engage volunteers from the Boys Scouts, Girls Scouts and other community organizations.

• Paddle Without Pollution, Allegheny County
Funding will allow the group to engage volunteers in a watershed cleanup project throughout southwestern Pennsylvania. Kayakers and canoeists will take to the waterways to rid the shorelines of debris during their journey.

Pennsylvania American Water is a subsidiary of American Water, which initiated the Environmental Grant Program in 2005 in Pennsylvania to support projects that protect or restore drinking water sources and surrounding watersheds. Since then, American Water has expanded the annual program to many of its state subsidiaries across the nation.

Pennsylvania American Water is the largest water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.2 million people. 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 approximately 7,000 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 15 million people in more than 30 states and parts of Canada. More information can be found by visiting www.amwater.com.

Students learn how a machine creates a disc golf Frisbee at Penn College's Plastics Experience. The event showed students from nine school districts the many opportunities that exist within the industry.

Editor’s Note: This is another article in our Education Innovation series that examines the education/employer connection.

WILLIAMSPORT – Seth Keller knew long before he attended Penn College’s Plastics Experience that he would attend school there this fall.

But that didn’t stop him – or approximately 90 other sophomores, juniors and seniors from nine school districts – from learning more about plastics manufacturing and the many career opportunities in the industry at the 18th annual Plastics Experience event on the college’s campus.

Keller, a senior at Gettysburg Area School District, Adams County, decided he wanted to pursue a career in the plastics industry thanks, in part, to the hands-on approach to learning on equipment and supplies that are donated by McClarin Plastics to the career and technical department at his high school. (McClarin is one of 23 industry representatives serving on the Team PA-led Governor’s Manufacturing Advisory Council and McClarin is also heavily involved in education initiatives.)

“If it wasn’t for McClarin, we wouldn’t have nearly the study opportunities that we do,” Keller said. “I feel fortunate that McClarin has given us these experiences. Our school is much more advanced than many others because of the equipment they have donated to the school.”

The day’s activities included educational workshops, hands-on experiences in manufacturing plastic items like key chains, Frisbees and soda bottles, and speaking with industry representatives in a fun and casual setting, said event coordinator Kirk M. Cantor, Ph.D., Professor, Plastics and Polymer Engineering Technology, Penn College. The day concluded with the RC 500, a race inside the college’s gymnasium of remote-controlled cars whose bodies have been built by the participating students prior to the event.

“A majority of them really don’t know where plastic comes from, so this is a learning experience because we are teachers, but we also want them to have fun while they are here,” Cantor said.

The students rotated from one workshop to the next at the college’s plastics technology center to learn about injection molding (Frisbees and key rings), blow molding (soda bottles), extruding (grocery bags) and thermoforming (personalized signs).

Tim Weston, Department Head and Associate Professor, Plastics and Polymer Engineering Technology, said Penn College students study all of the disciplines during their college careers.

As students progress toward graduation, they can receive on-the-job training through the college’s globally recognized Plastics Innovation and Resource Center (PIRC), according to C. Hank White, Director.

White said the PIRC’s mission is to provide technology resources to facilitate the growth and success of the plastics industry in the United States and throughout the world.

“The PIRC is great because it gives students the opportunity to learn on the job, make some money while they are doing it and build their resumes,” Weston said. “It sure beats flipping burgers at McDonald’s while in college.”

Penn College’s approach to educating their students is a winning formula for the students and their future employers. The college has an amazing placement rate of 100 percent of their students – including some who are hired at firms even before they don their graduation gowns and receive their diplomas.

“I attribute our success to our hands-on approach to education,” White said. “Students spend as much time learning on our semi-commercial equipment as they do in the classroom.”

Students Seth Keller, left, and Callie Sheppard, both of Gettysburg High School, examine plastic products.

The prospect of having a job as soon as he graduates college is a very appealing concept to Keller.

“That knowledge gives me the drive to want to learn everything I can while I am here,” Keller said. “It makes me feel good knowing that I won’t have to go into a field where I sit at a desk all day, which is the kind of job I would hate. I want a hands-on career and after all the research I did on schools and a previous visit to the campus, I knew Penn College was the right fit for me.”

Keller’s future job prospects look promising given the role the industry plays in Pennsylvania’s economy. White said the plastics industry is the 3rd largest employer in the commonwealth with more than 750 companies employing over 46,500 people.

This statistic is in stark contrast to a study at Rutgers University released Wednesday that shows four in 10 graduates’ first jobs didn’t involve their degrees, and the jobs they did get paid low salaries that barely covered their student-loan payments.

The study says only one in two college graduates who earned diplomas between 2006 and 2011 now has a full-time job, and of those, four in 10 work in jobs that didn’t require a four-year degree. The money they earn in those jobs makes it hard to pay off median undergraduate debt of $20,000.

The statistics from the Rutgers study pale in comparison to a graduate entering the plastics field – especially when it comes to wages. The average wage of a plastics industry employee in Pennsylvania, with or without a degree, is $43,000, according to the Plastics Industry Trade Association (PITA).

“For students who enter our program, I tell them it is a great leap of faith,” Weston said. “Their reward is at the other end with multiple job offerings from industry and the security of having a job upon graduation. Rate of pay for plastic industry employees are solid, family-sustaining wages.”

The plastics industry is also good for Pennsylvania’s economy too.

Together, plastics companies and those industries that depend on plastics contribute $5.3 billion in state and federal personal income taxes and $5.2 billion in payroll taxes, according to statistics provided by the Plastics Industry Trade Association (PITA).

Moreover, plastic industry shipments in Pennsylvania totaled more than $15.2 billion in 2010 and comprised 4.5 percent of national shipments ($341.4 billion). Nationally, Pennsylvania is ranked 6th in plastics industry shipments and 6th in employment, according to PITA statistics.

PennDOT has modernized its operations, paving the way for smoother customer service.

The Pennsylvania Department of Transportation (PennDOT) has modernized its operations, paving the way for enhanced service for its customers.

“What we’re trying to do is be a better business partner,” said Secretary Barry Schoch. “Having worked for the private sector for most of my career, the biggest thing you need out of government, when you are working on a project, is certainty. This is especially true when it comes to permits.”

Schoch added that doesn’t mean government simply rubber stamps permit applications, but should strive to provide answers in a timely fashion. Decreasing the response time for a response about a permit is just one of many revolutionary changes taking place at the agency.

Many of the changes have been so successful that Team Pennsylvania Foundation, in cooperation with the Corbett administration, is examining how those same practices can be shared and implemented at other state agencies. (Read more on Team PA’s efforts to improve government efficiency.)

“Modernization at PennDOT has been absolutely phenomenal, and Team PA not only wants to celebrate it with the business community, but we want to find ways to duplicate those programs at other state agencies,” said Matt Zieger, Team PA President & CEO. “PennDOT’s efforts are clearly showing how government should operate, and we applaud and celebrate the changes they have made on behalf of businesses and the public.”

Changes began in earnest last August when the Transportation Funding Advisory Commission (TFAC) delivered its final report to Gov. Corbett outlining 26 strategies to improve operational efficiency.

Schoch said while some of the TFAC recommendations require legislative action, PennDOT has moved forward with those that don’t. (The commission’s recommendations can be viewed by clicking on “final report” and then “modernization” at www.tfac.pa.gov).

One of the first initiatives was shortening the time it takes to receive a reply about a permit. In what is truly a remarkable change over the way the department used to conduct business, the waiting period has been reduced from 60 to just 10 days.

“This is a significant development on behalf of Pennsylvania’s business community and really a remarkable testament to the level of dedication PennDOT employees have given to improving efficiency not only in the permitting process but throughout the entire department,” Zieger said.

At the same time the commission’s report was being released, the agency launched its IdeaLink program, an online idea suggestion box for employees. Over 600 ideas have been submitted and 130 implemented since the system went live last August.

The beauty of IdeaLink is that it constantly evaluates and improves PennDOT’s internal and external operations by empowering employees to suggest solutions that increase workplace performance, improve safety and enhance customer service.

“Nobody knows their job better than the person doing it, and nobody knows better whether the processes we have are helpful or hurtful in getting their job done than the person doing it,” Schoch said. “And nobody knows better, no matter what the job is, whether something can be done to make that job easier and make a worker more productive than the person doing that job.”

One of the more telling signs that show how sincere – and transparent – the secretary wants the agency to be in improving customer service is chronicled under the “Modern PennDOT” website at www.dot.state.pa.us. The site lists modernization initiatives by topic, objective, benefits, the percent of the project that has been completed and the targeted completion date.

“PennDOT has a long-standing tradition of continuous improvement,” Schoch said. “Now, the public can more easily track our efforts to enhance customer service, save money and deliver projects more quickly.”

Schoch said PennDOT employees are committed to making the agency the very best it can be as it works to improve efficiency.

“PennDOT employees are aggressively and continuously searching for improvements to expedite project delivery, improve customer service, enhance efficient operations, promote safety, and ultimately become better stewards of taxpayer dollars,” Schoch said.

Date stamping the front of highway signs is one of 130 ideas to be approved as part of PennDOT's IdeaLink program.

Editor’s Note: Team Pennsylvania Foundation is working with the Pennsylvania Department of Transportation and the Corbett administration to modernize other state agencies too.

Keith Williams was skeptical when he first learned about IdeaLink.

After all, the Pennsylvania Department of Transportation (PennDOT) traffic engineer had seen other programs come and go in the 25-plus years he has been an employee.

But IdeaLink is different, quite unlike any initiative ever launched by the department.

“This program came from the highest level, directly from the secretary, to the employees,” Williams said. “I definitely like it. It shows the top brass is willing to listen to what the people in the trenches have to say.”

IdeaLink is an online suggestion box for ideas that go directly to department Secretary Barry Schoch, and is one of the many cogs driving efforts to modernize the state agency.

Created last August, IdeaLink empowers PennDOT employees to submit their ideas on ways to improve workplace safety, utilize department resources more efficiently, enhance department processes and procedures, and improve customer relations.

It’s somewhat of an understatement to say IdeaLink has been a huge hit with department employees.

Since August 2011, over 600 submissions have been received and approximately 130 ideas have been implemented to save money, improve safety and support greater efficiency.

“IdeaLink has been so welled received that other state agencies and even some private companies plan to model our system,” says Secretary Schoch, P.E. “This program is our commitment and dedication to develop and implement many of our modernization initiatives that save taxpayer money, enhance safety, help our employees work smarter and increase the convenience of transportation services we offer to our customers.”

Soon all rest areas like this one near Newville in Cumberland County may have tire inflation stations if a pilot program, as suggested by a PennDOT employee through PennDOT's IdeaLink initiative, is successful.

Williams said he was surprised when his idea to implement air compressor and tire inflation stations at rest areas and welcome centers was approved as a pilot program.

By August, those devices will be fully operational on a trial basis at rest stops in Erie and Great Bend Welcome Centers. If the pilot is successful, then inflation stations will be installed around the state.

For Williams, the idea for tire inflation stations evolved from PennDOT engineers’ guiding principle in a never-ending quest to find ways to improve safety on Pennsylvania’s highways.

“Under- and over-inflated tires are dangerous, and with so much emphasis on fuel consumption given the price of fuel, I thought this would be something our customers would really want and something they will use,” Williams said. I was surprised that this idea, which isn’t really all that sophisticated, was taken seriously. It seems to be no more sophisticated than adding a water fountain or garbage cans at our rest areas. But if it makes our highways safer and raises awareness about tire safety with motorists, then it will have been worth it.”

(Over 35 percent of crashes in Pennsylvania in 2010 were related to improperly inflated tires, the leading cause of accidents in the commonwealth, according to state statistics. Additionally, federal data indicates fuel consumption can improve up to 3.3 percent with proper tire pressure.)

Senior Civil Engineer Supervisor Jason Hershock’s idea wasn’t so much his own, but a team effort among staffers at District 8 headquarters in Harrisburg.

The team’s suggestion developed out of a recently enacted federal mandate that requires retro- reflectivity standards on all overhead highway signs. While it may seem like an innocuous suggestion, it is one that ensures compliance with the federal mandate while serving the needs of the driving public.

Hershock said highway signs are fitted with small prisms that reflect back light from a car’s headlights, but over time reflectivity is lost, making it harder to read a highway sign at night. His suggestion to stamp the front of all highway signs with the date it was erected will make it much easier for the department to catalog all signage and replace them about once every 10 years.

“We thought stamping was a good idea and while I have other ideas, this one seemed fairly simple to do and I wanted to see if and where this one went before I submit other ideas,” Hershock said. “This idea improves traffic safety, improves our tracking metrics and makes it easier to record that information into our database.”

Both Williams and Hershock feel there are endless possibilities to the types of suggestions PennDOT employees with feed into the IdeaLink system.

“PennDOT employees are civil servants who want to do good things for the people of Pennsylvania,” Williams said. “People don’t realize how creative we can be at PennDOT. There are a lot of great, smart people working here who are always coming up with creative ideas. IdeaLink is a great program that cultivates that creativity.”

Read more on Team PA’s work in government efficiency.

Pennsylvania American Water, a wholly owned subsidiary of American Water (NYSE: AWK), announced today that it has closed acquisitions to purchase the assets of three water systems in northeast Pennsylvania. The combined purchase price of the newly acquired systems, which serve a total of nearly 500 people, is approximately $215,000.

In Lackawanna County, Pennsylvania American Water acquired the Lake Spangenberg Water Company in Jefferson Township and the Applewood Water Company in Carbondale Township. The company also purchased the Wildcat Park Corporation in Walker Township, Schuylkill County.

“These tuck-in transactions not only help expand our customer base, but they also provide the residents with long-term benefits in the quality and reliability of their water service and supply,” said Pennsylvania American Water President Kathy L. Pape. “The newly acquired systems are in close proximity to our existing northeast Pennsylvania operations, which reflects our continued focus on achieving increased economies of scale through regionalization.”

Pape noted that the company is making significant capital investments to upgrade its newly acquired systems. For example, the company plans to replace most of Lake Spangenberg’s distribution system, which has a history of breaks and service outages. Pennsylvania American Water also replaced chemical storage tanks and treatment equipment for the Wildcat Park system, plus new water meters using radio frequency technology are being installed for customers in each of these acquired systems.

Pennsylvania American Water is the largest water utility in the state, providing high-quality and reliable water and/or wastewater services to approximately 2.2 million people. 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 approximately 7,000 dedicated professionals who provide drinking water, wastewater and other related services to an estimated 15 million people in more than 30 states and parts of Canada. More information can be found by visiting www.amwater.com.

This release contains forward looking statements, including, among others, our plan to continue our long-term strategy of capital investment in our systems. There are important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements including: general economic business conditions, unfavorable weather conditions, changes in regulations or regulatory treatment and availability and the cost of capital. We undertake no obligation to publicly update or revise any forward-looking statement.

Ensuring Pennsylvanians have employment opportunities is job one at the Department of Labor and Industry.

Julia Hearthway feels Pennsylvania’s best days, economically speaking, are still to come.

Hearthway, Secretary, Pennsylvania Department of Labor and Industry (L & I), discussed jobs, solvency of the unemployment compensation (UC) system and L & I initiatives as part of the Foundation’s “A Conversation with…” series with key administration officials and state policymakers.

Hearthway said the department’s heightened focus – given the higher than normal unemployment rate – is creating programs to help people who are unemployed find jobs. The unemployment rate is 7.5 percent in Pennsylvania and 8.2 nationally.

“Fortunately, the unemployment rate is coming down faster in PA than it is nationally, but it is still at an unacceptable level for us,” Hearthway said. “Jobs, jobs and jobs and getting people back to work is our focus.”

The department plans to launch in phases later this year a multi-faceted, web-based portal that matches job producers with job seekers. As L& I Secretary, Hearthway leads the fifth-largest agency in Pennsylvania state government, with nearly 5,000 employees in 145 locations across the state.

“We have conducted a tremendous amount of research into a program that truly addresses the needs of the job seeker as well as the job creator,” Hearthway said. “Many of these (job search) sites are geared toward the job seeker, so we need to approach businesses and find out what it is they need to find a skilled workforce.”

One primary function will be to provide industry a statewide platform on which businesses can highlight job skills needed for open positions at their companies.

“It will eventually be a very robust job-matching system,” Hearthway said. “We want employers to use this more than job seekers or potential employees. We want this to be a tool that finds the match companies need for open positions.”

The site will work similar to ones like monster.com, but with much more functionality including, but not limited to, video interviewing capabilities, postings about current and future job market trends, listings of growth industries, and information for human resources professionals.

“It is job matching on steroids,” Hearthway said. “It won’t be just one system, but many working together to make more accurate matches between employers and employees. It will be cutting-edge, adaptable and an integral part of the way companies find employees.”

Julia Hearthway

Hearthway says the system will dovetail nicely with Pennsylvania’s Work Search Requirement law, which requires unemployment compensation claimants to actively search for work while receiving UC benefits. Enacted on Jan. 2, 2012, Work Search requires every UC claimant to register with the Team PA-founded Career Link and post a resume there.

“This new requirement is an opportunity for us to address the skills gap problem by closely matching the skills and qualifications of Pennsylvania’s workforce with the needs of Pennsylvania’s employers,” Hearthway said. “We want to spend our time and resources helping those who don’t have jobs, so that is where we are going to start. But, quite frankly, there is no limit as to what this system will be able to do.”

This initiative signifies a slight shift in department thinking, which traditionally has prepared job seekers with employment and job-training service opportunities. The department also administers workers’ compensation benefits and enforces various workplace laws and safety standards in addition to overseeing UC benefits.

Although Pennsylvania’s economy has been on the rebound from the Great Recession, thanks in part to the Marcellus Shale boom and growth in manufacturing, the UC system’s $3.7 billion-deficit is an issue that could impede the state’s fiscal recovery, according to Hearthway.

“We have a proposal to fix it, we have a plan to get us out of this debt,” Hearthway said. “The answer is two-fold: we have to have a provision to pay off the debt and a provision to make the fund solvent. We need to evenly balance out how that’s done between employees, the non-employed and businesses.”

Hearthway said the state is looking to pay off the UC debt it owes to the federal government in seven to 10 years by floating a bond.

Once the UC debt issue has been addressed, Hearthway said the state must change the current system so the commonwealth isn’t saddled with this issue again in the future. One problem with the current UC system is its benefits rate, she added.

“Pennsylvania, compared to other states, has some of the most generous benefits for the unemployed,” Hearthway said. “We are only third behind California and New York in the rate of our benefits. Compared to the cost of living in those states, our rates are extremely generous.”

Hearthway said the administration is proposing to raise the unemployment compensation eligibility rate from an average of 37 percent for the highest amount of money an employee earns in each quarter of a base year to 52 percent.

“The eligibility requirements have not been changed since the ’70s,” Hearthway said. “Our proposal would save the fund an average of $350 million a year while not impacting 88 percent of those who receive unemployment benefits.”

With UC insolvent and an unusually high unemployment rate, Team PA asked Hearthway what drove her to accept Governor Corbett’s offer to lead the department – especially considering that her previous experience is in law enforcement.

“The governor was very specific, saying I am neither labor nor industry and he wanted someone in this position who would look at both sides and come up with fair and balanced solutions, which I have tried diligently to do every day,” Hearthway said. “I was honored to be asked and this is a challenge and opportunity that I just couldn’t turn down.”

A former prosecutor in the Pennsylvania Office of the Attorney General since 1993, Hearthway also served as a chief deputy attorney general since 2001, managing the office’s Insurance Fraud Section and investigating and prosecuting all criminal insurance fraud matters.

Previously, she was an assistant district attorney for the Montgomery County District Attorney’s Office and worked in private legal practice as well.

Hearthway earned her bachelor’s degree in political science at Stephens College and her Juris Doctor degree at Rutgers University School of Law.

# # #

The following are other articles with cabinet secretaries and key state officials in the “A Conservation with…” series:

C. Alan Walker, Secretary, Department of Community and Economic Development

Ron Tomalis, Secretary, Department of Education

Michael Krancer, Secretary, Department of Environmental Protection

Patrick Henderson, Energy Executive, Governor’s Office of Policy and Planning

PPL Electric Utilities on Tuesday (5/1) filed a plan with the Pennsylvania Public Utility Commission to purchase its electric supply for default customers from June 1, 2013, through May 31, 2015. Default customers are those who do not choose to buy generation service from a competitive supplier.

All electricity customers in Pennsylvania have the right to choose the company that provides their generation supply. State law requires PPL Electric Utilities to provide electric supply at the least cost over time to customers who do not choose an alternative supplier.

In its plan, PPL Electric Utilities proposes to buy this electricity for June 2013 through May 2015 twice a year, beginning in April 2013.

Under the plan, the company would solicit supply contracts for nine- and 12-month increments as well as for hourly purchases in the open market during the contract years. The sole exception will be the last procurement in the series, which would be for three- and six-month contracts.

PPL Electric Utilities does not own power plants or produce electricity. By law, the company must buy power in the competitive electric market for customers who don’t choose another supplier and pass these costs directly to customers without profit. These charges appear on customers’ bills as the Generation Charge. Generation and transmission charges together represent the “Price to Compare” for shopping purposes and account for about two-thirds of the total electric bill.

The proposed default service purchase plan differs from PPL Electric Utilities’ current purchase plan in the following regards:

The utility currently buys generation supply four times a year. Under the proposed plan, it would do so twice a year.

About 10 percent of supply for residential customers is currently bought in hourly purchases on the open market. Under the proposed plan, residential customers would receive essentially all of their power through nine- to 12-month contracts. Energy bought in hourly purchases would continue to be used for large commercial and industrial customers.

PPL Electric Utilities currently adjusts its Price to Compare four times a year – on March 1, June 1, Sept. 1 and Dec. 1. Under the proposed default service purchase plan, the utility would adjust its Price to Compare twice a year.

Dennis Urban, senior director of Rates and Regulatory Affairs for PPL Electric Utilities, said the utility’s new purchase plan is intended to simplify the power acquisition process, while also complying with PUC recommendations as part of its efforts to expand consumer participation in the competitive electric market.

To encourage greater consumer participation in the competitive electric market, PPL Electric Utilities is proposing additional customer education initiatives. It also is proposing a retail opt-in auction and a standard offer program. Under these proposals, customers will have an opportunity to purchase their electricity from competitive suppliers at a discount from PPL Electric Utilities’ Price to Compare.

Under the company’s proposal, an independent third party would administer the competitive bidding process of securing power supply contracts and, with PUC oversight, select the winning bidders that will provide generation supply at the lowest available cost to PPL Electric Utilities’ customers. PPL Electric Utilities also will seek bids from other companies to manage its hourly purchases in the competitive electricity market.

For more information about licensed suppliers serving PPL Electric Utilities’ service area and their offers, visit PAPowerSwitch.com, a website operated by the PUC. More than 30 licensed suppliers provide generation service to roughly 580,000 PPL Electric Utilities customers, representing nearly 74 percent of all electricity delivered.

“We encourage all customers to learn about the supply alternatives open to them and choose the option that best suits their needs,” Urban said.

The company’s plan must be reviewed and approved by the PUC. That review is expected to take up to nine months.

Currently, PPL Electric Utilities has contracts with 15 electric generation suppliers for supply for default customers. The supply portfolio is a mix of short and mid-range contracts and spot market purchases.

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

For further information: Kurt Blumenau, 610-774-5997, PPL Electric Utilities

PPL Electric Utilities wants everyone to be safe around the electricity that powers our lives and is joining the call in May — National Electrical Safety Month — for continued diligence about safety, especially as new electrical technologies emerge.

The utility supports Electrical Safety Foundation International, which sponsors National Electrical Safety Month. In addition to highlighting technologies such as electric vehicles and solar and wind power, ESFI also is focusing on increasing public awareness of potential electrical hazards and the importance of electrical safety.

In the United States, home electrical failures or malfunctions cause more than 50,000 fires each year, resulting in 450 deaths, nearly 1,500 injuries and over $1.5 billion in property damage, according to the National Fire Protection Association.

“Safety is our top corporate value as we work to maintain a reliable delivery network for our customers. We urge everyone to place the same importance on safety when it comes to avoiding potential electrical hazards at their homes and workplaces,” said Gregory N. Dudkin, president of PPL Electric Utilities.

As part of its public electrical safety outreach efforts, the utility recently mailed important, free safety information to thousands of contractors and first responders in its service territory. PPL’s information centers and environmental preserves at Lake Wallenpaupack and the Susquehanna Riverlands, as well as the Montour Environmental Preserve, also feature safety materials for the public.

Listen to public radio stations WDIY (Lehigh Valley), WVIA (northeast Pennsylvania) and WITF (Harrisburg) during May for reminders that PPL Electric Utilities offers important safety information at www.pplelectric.com/safety. Children, parents and teachers may find the online Electrical Safety World at this site to be an entertaining and educational resource.

In addition, select digital billboards will reinforce the need to call Pennsylvania One Call at 811 or 1-800-242-1776 at least three business days before any digging. This allows utilities to mark the presence of pipes and lines.

Remember also to use caution around overhead power lines. The safe distance from power lines increases as voltages increase. Call PPL Electric Utilities at 1-800-342-5775 if you are unsure of a line’s voltage. The federal Occupational Safety and Health Administration also has safety clearance requirements.

The company’s online Outage Center, www.pplelectric.com/outagecenter, provides tips for staying safe during power outages.

ESFI reminds everyone about the tremendous safety benefits provided by existing home safety technologies, including arc fault circuit interrupters that protect against fires, ground fault circuit interrupters that protect against shock and tamper-resistant receptacles.

“While we are frequently inundated with news about the latest advances in home technologies, there is not a lot of information readily available to educate consumers about the potential electrical hazards associated with them,” said ESFI President Brett Brenner. “Understanding the safety concerns is particularly important when you are working with an existing home electrical system.”

The Electrical Safety Foundation International is dedicated exclusively to promoting electrical safety. ESFI proudly sponsors National Electrical Safety Month each May, and engages in public education campaigns throughout the year to prevent electrical fires, injuries, and fatalities in the home and the workplace. For more information about ESFI and National Electrical Safety Month, visit www.esfi.org.

PPL Electric Utilities, a subsidiary of PPL Corporation (NYSE: PPL), provides electric delivery service to 1.4 million customers in 29 counties of eastern and central Pennsylvania and has consistently ranked among the best companies for customer service in the United States. More information is available at www.pplelectric.com.

For further information: Joe Nixon, 610-774-5997, PPL Electric Utilities

High Construction Company, as well as project estimator Dan Dennis, recently received awards from the American Subcontractor’s Association of Central Pennsylvania (ASACP) at the association’s 14th Annual Awards Gala.

High Construction was named the 2011 Construction Manager of the Year. Dan Dennis, project estimator for High Construction, received the Estimator of the Year award. Jon Kauffman, senior preconstruction manager for High Construction, was also honored, as a finalist for the Estimator of the Year award.

“The ASACP awards are a testament to each and every co-worker’s commitment to safety, trustworthy relationships, and the highest standards of performance,” said Matt Twomey, president and COO for High Construction. “Through teamwork and collaboration with the region’s talented contractors, High Construction will continue to deliver successful construction projects,” he said.

ASACP’s awards program recognizes construction firms and individuals as they relate to subcontractors with criteria such as bidding fairness and ethics, equitable contract provisions, safety policies and practices, payment practices, job supervision, scheduling, and subcontractor relations procedures.

About the ASACP
The American Subcontractors Association of Central Pennsylvania (ASACP) is a not-for-profit trade association of professional contractors. ASACP serves 31 counties throughout Central and Northeastern Pennsylvania and the Lehigh Valley. It represents all construction subcontractors, specialty trade contractors, and suppliers of goods and services to the construction industry.

About High Construction Company
Recognized as Construction Manager of the Year (2011) and General Contractor of the Year for four consecutive years (2007-2010) by the American Subcontractor’s Association of Central Pennsylvania, High Construction Company provides design-build, general contracting, and construction management services, as well as facility energy solutions, throughout the mid-Atlantic region of the United States.

High Construction specializes in the commercial, manufacturing, processing, distribution, education, hospitality, retail, health care, and multi-family residential markets. The family-owned business is headquartered in Lancaster, Pa. and employs more than 60 professionals. High Construction is an affiliate of High Real Estate Group, which also includes Greenfield Architects Ltd., High Associates Ltd., High Investors Ltd., and High Hotels Ltd. For more information about High Construction, call (717) 291-2276 or visit www.HighConstruction.com.