PPL Supply Unit Earnings Again Challenged by Market Prices

PPL Corp.'s Supply unit reported lower ongoing earnings of $147 million for the quarter ending December 31, 2011, versus $311 million a year ago.

As was the case for prior quarters in 2011, the decline was primarily due to lower Eastern energy margins as a result of lower energy and capacity prices, partially offset by higher marketing and trading margins.

Unregulated retail electric and gas gross energy margins were $696 million for the year 2011, versus $414 million a year ago

Asked about the retail supply business, executives said that at this point, the retail load is not a large piece of the hedge portfolio for PPL's competitive generation. "It's growing, but it's probably one of the smaller pieces," executives said.

PPL EnergyPlus retail electric sales, including POLR volumes to PPL, were 2,537 GWh in the quarter, versus 2,246 GWh a year ago.