ALLENTOWN, Pa., Sept. 21 /PRNewswire/ -- Further building on its position
as a leading energy solutions provider for businesses, PPL Corp. (NYSE: PPL)
Thursday (9/21) announced that it has signed an agreement to become the first
North American distributor of fuel cells manufactured by FuelCell Energy, Inc.
(Nasdaq: FCEL). PPL also has made an equity investment in FuelCell Energy of
about $10 million, or roughly one percent of FuelCell's equity.
(Photo: http://www.newscom.com/cgi-bin/prnh/19981015/PHTH025 )
"This agreement is an important step forward for energy users because it
significantly expands the range of energy solutions that we can provide," said
William F. Hecht, chairman, president and chief executive officer of PPL.
A key part of PPL's energy solutions approach is distributed generation --
providing small power generators to customers at their location. PPL offers a
variety of distributed generation solutions through its GenSelect(SM)
program, ranging from diesel generators to cutting-edge microturbines and fuel
cells.
"Distributed generation presents an important opportunity for continued
growth of PPL Corp.," said Hecht. "With the range of solutions we now offer,
we clearly are a leader in the distributed generation business."
Fuel cells produce energy through a chemical reaction, rather than through
combustion, by converting hydrogen and oxygen into electricity. This emerging
technology has enormous potential to transform the traditional energy
business.
Fuel cells are highly reliable and generate electricity in an
environmentally responsible manner. Customers are expected to include
hospitals, schools, data centers and other commercial and industrial
electricity users.
"FuelCell Energy has a superior technology with a high probability of
near-term commercialization," said Hecht. The company was selected after
PPL's extensive study of the fuel cell industry. FuelCell Energy expects its
units will be commercially available in 2001 and 2002.
Jerry Leitman, president and CEO of FuelCell Energy, said, "We're
delighted to have PPL, a leading supplier of competitively priced electricity
and energy services in the Mid-Atlantic region, as our first distribution
partner in North America.
"PPL is a successful company, with a solid growth strategy, and is highly
qualified to help us penetrate the market for distributed generation solutions
through its energy marketing arm, PPL EnergyPlus," Leitman said.
PPL expects to establish several demonstration sites for fuel cells over
the next two years, Hecht said. The company already has distributor
relationships with companies that manufacture other types of distributed
generation.
PPL's leadership position in distributed generation will be built upon its
reputation as a leading marketer in competitive energy markets and strong
brand recognition. Another significant factor is the company's network of
profitable regional mechanical services companies, which will support the
installation and service of fuel cells.
PPL Corp. has continued to experience improved performance on already
strong earnings growth across its business lines.
Based on this earnings performance -- combined with the positive impact on
earnings from an acquisition by PPL's subsidiary in the United Kingdom, a set
of business fundamentals that the company believes will continue, and
conservative assumptions about future business conditions -- PPL in late
August increased its earnings forecast to $3.00 per share for the year 2000
and to between $3.20 and $3.30 per share for 2001. The company had previously
forecasted earnings of between $2.80 and $2.90 per share for this year and
between $3.10 and $3.20 per share for 2001.
Based in Allentown, Pa., PPL Corp. is a FORTUNE 500(R) company that
delivers electricity and natural gas to more than 1.3 million customers in
Pennsylvania; markets wholesale or retail energy in 43 U.S. states and Canada;
provides energy services for businesses in the Mid-Atlantic and Northeastern
U.S.; generates electricity at power plants in Pennsylvania, Maine and
Montana; delivers electricity to 1.4 million customers in southwest Britain;
and delivers electricity to nearly 1.8 million customers in Chile, Bolivia,
El Salvador and Brazil.
FuelCell Energy, Inc. -- http://www.fce.com -- formerly Energy Research Corp., is
a world-recognized leader for development and commercialization of high-
efficiency fuel cells for electric power generation. The company's Direct
FuelCell technology eliminates external fuel processing to extract hydrogen
from a hydrocarbon fuel. This results in a product whose cost, combined with
high efficiency, simplicity and reliability, results in product advantages for
stationary power generation. FuelCell Energy is based in Danbury, Conn. The
company has been developing DFC technology for stationary power plants with
the U.S. Department of Energy through the National Energy Technology
Laboratory, whose advanced fuel cell research program is focused on developing
a new generation of high-performance fuel cells that can generate clean
electricity at power stations or in distributed locations near the customer,
including hospitals, schools, data centers and other commercial and industrial
applications.
Certain statements contained in this news release, including statements
with respect to future earnings, subsidiary performance, business expansion,
product commercialization and new technology, are "forward-looking statements"
within the meaning of the federal securities laws. Although PPL Corp.
believes that the expectations and assumptions reflected in these forward-
looking statements are reasonable, these statements involve a number of risks
and uncertainties, and actual results may differ materially from the results
discussed in the statements. The following are among the important factors
that could cause actual results to differ materially from the forward-looking
statements: market demand and prices for energy, energy services, capacity and
fuel; weather variations affecting customer energy usage; competition in
retail and wholesale power markets; the effect of any business or industry
restructuring; the profitability and liquidity of PPL Corp. and its
subsidiaries; new accounting requirements or new interpretations or
applications of existing requirements; operating performance of plants and
other facilities; environmental conditions and requirements; system conditions
and operating costs; performance of new ventures; development of new markets
and technologies; political, regulatory or economic conditions in countries
where PPL Corp. or its subsidiaries conduct business; capital market
conditions; foreign exchange rates; and the commitments and liabilities of
PPL Corp. and its subsidiaries. Any such forward-looking statements should be
considered in light of such factors and in conjunction with PPL Corp.'s Form
10-K and other reports on file with the Securities and Exchange Commission.
SOURCE PPL Corp.
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Related links:
http://www.pplnewsroom.com
Photo Notes:
NewsCom:
http://www.newscom.com/cgi-bin/prnh/19981015/PHTH025
PRN Photo Desk, 888-776-6555 or 201-369-3467
CONTACT:
Paul Wirth of PPL, 610-774-5532, or fax,
610-774-5281
NOTE TO EDITORS: Visit its media web site at http://www.pplnewsroom.com
for additional news and background about PPL Corp. and its
operations.
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