PPL revises profit outlook for 2010

PPL revises profit outlook for 2010

There are 52 comments on the The Morning Call story from Nov 1, 2007, titled PPL revises profit outlook for 2010. In it, The Morning Call reports that:

Allentown energy company PPL Corp. announced Wednesday that it expects to make more money than previously predicted in 2010.

Join the discussion below, or Read more at The Morning Call.

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The Eye

Catawissa, PA

#1 Nov 1, 2007
All in my opinion..JAMES MILLER needs another mansion, another wine cellar, another vacation home, another luxury car, his wife needs another fur coat and another 500 pairs of designer shoes, please stop feeding your children, stop caring for your elderly relatives, take away your children's lunch money and send it all to JAMES MILLER CEO of PPL. Miller epitomizes the face of GREED, he in his own mind is GOD and will lay down poverty and devastation for families who do not bow to him and give up all they work for. He is filthy rich but it is never enough, he wants your children, the elderly, the sick to give more, more, more, his greed is boundless. He is an elitist, laughing as your children go hungry, your grandparents freeze, all the while stuffing more money into his bottomless pockets. He and his family deserve to live on top of the pile of bodies they leave in their pursuit of endless riches as they are better than you, better than your children, better than everyone. If the founding fathers of this country were around to see how JAMES MILLER and PPL are devastating the state of Pennsylvania with his unabashed greed, well they probably would utter just 3 words, "get the rope", but instead our state representatives have told JAMES MILLER 'thanks for the campaign contribution and as far as the working people go, well grab them by the neck Mr. Miller and choke them until their children feel the pain, you're a great man Mr. Miller'.
broken

Emmaus, PA

#2 Nov 1, 2007
nothing like serving me up a plate of vomit first thing in the morning.

PP&L = VOMIT or should it be

JAMES MILLER = VOMIT
The Eye

Catawissa, PA

#6 Nov 1, 2007
Well at least your profile name also matches your view. Uh duh, according to MORON, Americans should no longer have the right to express themselves, should just bow down and lick the boots that kick them. Well you may be a subservient serf that simply enjoys the taste of the crap the energy companies feed you but luckily there are still Americans who see and understand that they have been sold out. Of course you Mr. MORON will never understand as you are one of the sheeple, blindly following those that will lead you to slaughter, it is your right as moronic as it is. Uh duh da told me I mus obay so I mus obay, deedadee.
Morons wrote:
Every successful President of a Fortune 500 company has these perks and they are also tied to the success of the company. The State of PA changed the way business is conducted in the Electric Utility industry. So I can't figure out why all of you come one here and talk negatively about PPL considering how charitable PPL is towards to groups throughout the Lehigh Valley.
A mind is a horrible thing to waste. Try googling Electric Industry Deregulation...
mjm

Hyattsville, MD

#7 Nov 1, 2007
PP&L is only charitable for tax purposes and they get the money from robbing their customers! And yes Morons, a mind is a terrible thing to waste, so I suggest you get some help! Try googling deedadee!
speedtats

Philadelphia, PA

#8 Nov 1, 2007
Morons is correct in saying that all CEOs have these perks...and that's why the system is corrupt and broken. These guys make their money based on the company's performance. The company performs well because they are able to afford congressional campaigns and lobbyists to write and rewrite laws in their favor that we the average citizens cannot. They get the markets stacked in their favor, and we pay for it by being charged higer prices for whatever it is they're selling. Free markets are only for us, the serfs. Another great example is the current sub-prime mortgage market. The government is considering bailing out the companies that made lousy lending decisions, but the homeowner without an attorney and economics professor at the closing table who may have gotten a deal they didn't understand is getting the shaft, as usual. Because we now have less money than even before, and the elitists running the government and the corporations have more, they're better positioned to further increase their incomes/profits at our expense. It's a vicious cycle that ends in two ways: revolution or the collapse of the entire system due to the consumer no longer being able to afford the commodity. Our Founding Fathers revolted over much much less, as Ron Paul - who I'm not voting for, by the way - has repeatedly stated. We as Americans ought to be ashamed of our laziness, over-consumption, and general indifference to being shafted over and over again.

Until such time as we as a citizenry refuse to accept the status quo any longer, we deserve the contempt and condescension of the elites who own us and profit from our own inaction and ignorance.
Morons

Allentown, PA

#9 Nov 1, 2007
No the employees of PPL donate clothes and have United Way drives and tutor children in the Allentown School District. The coach soccer teams in Allentown and do many other wonderful things for a city that is losing everything.

I love once again that none of you hot heads have actually accepted the fact that YOUR STATE did this to you not PPL.. Prior to the rate cap, we produced our own electric and sold it to the public. Now we produce it (seperate company) and put it out to the market and because of deregulation we have to pay the market rate to buy it back from the generation group to be distributed to the customers... So as I repeat again, it is the STATE not PPL that forced the escalation of prices.

The Eye is so blind to the facts that caused this issue...
Morons

Allentown, PA

#10 Nov 1, 2007
Also next year you will hear the same thing about PECO, MET-ED, and Allegheny Power Companies... You hear this issue about any power company in any state that deregulated except for Texas that used a different philosophy in deregulation..

So I ask you this... Isn't the rate increases a product of politicians winning a victory in the 90's to obtain your votes by capping the rates without fully understanding the industry???
Sam Kennedy

Chicago, IL

#11 Nov 1, 2007
This is Sam Kennedy, reporter at The Morning Call. I'm working on an another article about PPL's 2010 rate hike. I'd like to bring into my article some voices of PPL customers -- that is, people like you. If you'd like to share your feelings on this matter, please shoot me an email at [email protected] Thanx.-Sam
Morons

Allentown, PA

#12 Nov 1, 2007
Sam...

If it is Sam. You could write a article about how deregulation has failed in almost every state that deregulated and discuss how the rates will go through the roof for the other electric utilities in 2011 throughtout PA. This would help identify that it the rate increases are a result of the system and not anything the electric companies are doing...
Just Wondering

Lansdale, PA

#13 Nov 1, 2007
Morons wrote:
Also next year you will hear the same thing about PECO, MET-ED, and Allegheny Power Companies... You hear this issue about any power company in any state that deregulated except for Texas that used a different philosophy in deregulation..
So I ask you this... Isn't the rate increases a product of politicians winning a victory in the 90's to obtain your votes by capping the rates without fully understanding the industry???
Duh , Other compies employees do the samething as PP&L employees. Let us get it straight. this not against the employees because they will never ever see anything from this. The so called lobbiest's that PP&l and other electric company's pay for get better access to OUR elected officals then us. PP&L CEO salary is set by his board of cronies who sit on other boards. Electric did not need to be deregulated the Public engery commision has been the only boice the customer has had. It was working fine. Is PP&L out of business? NO they are not. This is prue greed and nothing else our elected officals were bride by PP&L and the power companies to dergulate. No where in the USA has deregulation worked. Somehow the idiots in Harrisburg thinks this will. WRONG!!! Peo[ple will suffer and that is what that want human suffering. Gee what do I pay for this month my meds to keep me alive or maybe food so I can feed my family or my electric bill that is now 40% higher then last year and keeps climbing.
The elisteds in America just want to have a war between the haves and the have nots. And thanks to stupid things like this in an area of things people need to live and effects the whole state ecomony. This will drive everything up for the average resident but along with that everyhting from gas to food to medical treatment will be out of reach because electric is used in those businees and the cost will passed on.

Just a reminder Mooron it was quto in this paper that PP&L also said proudly no matter what we do or chagre now the legislature of PA will do NOTHING to stop us. Now what can say that without buying our legislature's votes. We our is serious trouble and I plan leabving this stte because can no longer raise a family here without giving your soul to the elists and kissing there a**.
speedtats

Philadelphia, PA

#14 Nov 1, 2007
Morons, you're flat wrong. The state did not raise electric rates; PPL did and will continue to do so in a deregulated market. What the state did - apparently at the behest of corporate lobbyists working on behalf of companies like PPL - was remove legislative price caps. PPL - not the state - then raised its rates. The only thing the state did was to create an environment in which the goal was rampant profit, not consumer service, choice or value. Regardless of whether or not the state removed price caps, PPL did not have to raise its rates. That they did shows exactly for whom our legislators work. You are correct in saying that the entire system is corrupt, but to say the state raised rates is patent nonsense. PPL raised rates, period. And they were able to do so because the state removed the only roadblock preventing them from doing so. You are also correct in saying that deregulation doesn't work. Now we in PA get to see just why firsthand.

We deserve it for being so gullible and dumb.
motherof 2

Bethlehem, PA

#15 Nov 1, 2007
Sam Kennedy wrote:
This is Sam Kennedy, reporter at The Morning Call. I'm working on an another article about PPL's 2010 rate hike. I'd like to bring into my article some voices of PPL customers -- that is, people like you. If you'd like to share your feelings on this matter, please shoot me an email at [email protected] Thanx.-Sam
Well I would have to say that it is pretty sickening as a resident to sit here and read how my cost for electric are going to skyrocket and right on the heels of those articles is one posted about how much money the company is going to make. If the profits are going to be so good, there should be a general phase in starting in 2010 for the residents. I am sure that they could hold back on making those profits all in one fell swoop, as the saying goes.

As for those of you talking about CEOs, I have to agree. I work for a privately owned company and I could barely make it through budget time as they slashed through employee perks because they wanted to siphon more money into their pockets out of the Company. While this is the norm and it is EVERYWHERE, it kills me to sit and watch the rich get richer and the poor get poorer. I really think that gov't needs to step in somewhere. As companies continue to give measly 4% raises (if you are even lucky enough to get that), health care cost go up double digits and gas skyrockets. Now electric too. The regular old, middle income people can't get ahead let alone the ones who make minimum wage in this country and then we have to worry about funding our own retirements?
Morons

Allentown, PA

#16 Nov 1, 2007
So did PPL deregulate the industry? Other states were doing it too so PPL probably did not insert a bug into the legislators ear. They thought that competition would drive prices down. They can't reregulate because of all of the companies that sold their generation plants. But in the long run without deregulation, you would have seen this rate increase over the past 10 years anyway...

"Regardless of whether or not the state removed price caps, PPL did not have to raise its rates." Wow did you have some Hallucinogenic Mushrooms for lunch? The prices caps were lifted and the State mandated that market prices would be established for purchasing electricity from generating companies. What this meant is that we could not longer provide electric at a cheap price because we produced it but had to but it from the market at whatever price the market provides. The market prices are higher then what we would produce electric at so thus the rate increase. This is why I blame it on the legislative robots in PA...
Sandy

Silver Spring, MD

#17 Nov 1, 2007
Morons wrote:
Every successful President of a Fortune 500 company has these perks and they are also tied to the success of the company. The State of PA changed the way business is conducted in the Electric Utility industry. So I can't figure out why all of you come one here and talk negatively about PPL considering how charitable PPL is towards to groups throughout the Lehigh Valley.
A mind is a horrible thing to waste. Try googling Electric Industry Deregulation...
All I have to say is look at the CEO's at ENRON...enough said.
Capt-M117

Allentown, PA

#18 Nov 1, 2007
speedtats wrote:
Morons, you're flat wrong. The state did not raise electric rates; PPL did and will continue to do so in a deregulated market. What the state did - apparently at the behest of corporate lobbyists working on behalf of companies like PPL - was remove legislative price caps. PPL - not the state - then raised its rates. The only thing the state did was to create an environment in which the goal was rampant profit, not consumer service, choice or value. Regardless of whether or not the state removed price caps, PPL did not have to raise its rates. That they did shows exactly for whom our legislators work. You are correct in saying that the entire system is corrupt, but to say the state raised rates is patent nonsense. PPL raised rates, period. And they were able to do so because the state removed the only roadblock preventing them from doing so. You are also correct in saying that deregulation doesn't work. Now we in PA get to see just why firsthand.
We deserve it for being so gullible and dumb.
You are partly correct. But with deregulation, if PPL didn't raise it's rates it wouldn't be able to compete with other utilities and would end up being bought up and then you would see even higher prices. PPL is still one of the best electric utilities in the nation. Futunately for us, they haven't lost their commitment to their customers yet. Not to say that won't happen once the cap is removed and they can laugh at us all the way to the bank
Capt-M117

Allentown, PA

#19 Nov 1, 2007
I too get discussed with the saleries of CEO's, but you have to remember one thing. As much as Mr. Miller is paid, he is still among the lowest paid CEO's in this area. Not to say he doesn't make enough. Something else that helps drive up prices is the fact that upper managers only have to stay with PPL for 5 years to get full pensions. So you see these big shots come and go after only 5 years. Then they move on to the next company and collect their pension after 5 years. And each time they move to a new company they get signing bonuses and hefty pay raise to boot.
Dave from Center Valley

United States

#20 Nov 1, 2007
Isn't it a bit odd, that two days ago they are talking about their need to hike our rates 35% in 2010, then today they report higher than expected record profits for 2010. Doesn't take a genius to figure that one out and who does their PR!

“Jesus wept”

Since: Oct 07

Saint Petersburg, Fl

#21 Nov 1, 2007
Ahhh I am sure there really gonna need them price increases now. CEO will probably get the BIG raise he deserves!
speedtats

Philadelphia, PA

#22 Nov 1, 2007
Morons, your analysis is good, except for one thing: what PPL did to enter the new market-based system was not "buy it from the market at whatever prices the market provides" as you state in your comment. They set up shell subsidiaries - one for transmission/distribution, which is the entity raising consumer rates, and another to provide production, just like other big utilities in deregulated systems. Their production entity raised its wholesale rates to its transmission entity, which in turn led its transmission entity to raise consumer prices. To state that PPL is now buying power at market prices in an open and free market system is somewhat disingenuous. PPL may very well be buying power from producers other than itself. However, instead of producing and distributing power in a previously tightly-regulated regional market, PPL is now producing power and selling it to another subsidiary of itself. One subsidiary raised its wholesale prices to the other one, and the one purchasing it at the so-called "market price" passed along the increased cost to consumers. I do not see two separate stock listings for the two subsidiaries of PPL, and as such, I think it's fair to say that this neat little organizational structuring and accounting trick really doesn't count as a free market at work. In a nutshell, PPL Corp raised power prices to itself, and then passed that cost increase along to customers. This action taken by a single corporation known as PPL has the effect of providing a lower-quality product/service to consumers at a higher retail price - exactly the opposite of what PPL and other energy producers and distributors claimed and told the public and legislators when they began pushing for deregulation beginning in 1978 with the passage of the Public Utility Regulatory Policies Act. True competition probably is a good thing, but such free markets simply do not exist anywhere in the world, period, and the electric industry is certainly no exception. Markets can ONLY exist in a framework of and under the protection of laws, rules or regulations of some sort. Otherwise, it's anarchy and not a commerce system. When the FERC passed Orders 888 and 889 in 1996 to enforce the intent of the Energy Policy Act of 1992, companies like PPL saw the writing on the wall and had to devise schemes to control the market price for electricity - which they and others did with resounding success - in place of the government-protected monopolies they once enjoyed. All deregulation did was remove control of the supply/demand dynamic of the market from the government and consumers and handed it over to the power companies - producing and transmission subsidiaries alike. Free market implies that supply and demand dictate energy prices. But now that power companies can dictate both supply AND demand, the market is LESS free than when power companies were limited by federal regulation to only dictating supply. Under that system, the consumers dictated demand. This is not the case any longer. Of course, power companies are freer to charge themselves whatever they wish for power and pass those articially-inflated prices along to consumers. I if that's what you mean by free markets, then you're 100% correct. If not, then you're flat wrong.
speedtats

Philadelphia, PA

#23 Nov 1, 2007
And Capt-M117, I agree that PPL is not the enemy or evil or anything like that. They do a lot of good in their communities, and I don't have any real complaints about my service with them or prices or whatever. My lights are generally on whenever I want, and I'm always pleased with the speed they correct outages due to weather where I live. Always. Their customer service department is always very nice too. My father's union job with PPL helped put me through college and kept a roof over my head, food in my stomach, etc. I'm not saying that what they are doing is wrong or bad - it's not, and it's how every other commodities market in this country and in the rest of the world works, save for planned central governments like China, North Korea, et al., who are all now having to stop subsidizing their power industries and artificially low consumer prices. They cannot afford it anymore because supply isn't keeping up with ever-increasing demand, and because power generation costs have indeed gone up. I never contested either of those points.

However, to place blame for rate increases on the government deregulation alone, without taking into account corporate interests - like PPL - pushing for it exactly because their profits would go up, as well as with PPL for raising its rates to itself and then passing that along to consumers is kind of stupid. PPL raises its rates, but it's the government's fault alone for deregulating the industry - which is what PPL wanted in the first place?

I think that's a silly position to take, and completely unsupported by anything other than industry propaganda trying to justify double-digit rate increases that a lot of people are going to have trouble affording. It's like blaming the weatherman for the rain without taking into account the complex forces at work required to produce clouds, storms, etc.:-)

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