STAYING IN THE VIRTUOUS CYCLE Our goal, and how it leads to business success and benefits for our customers Dennis A. Urban Jr. Vice President, Finance and Regulatory Affairs PPL Electric Utilities Energy Association of Pennsylvania September 17, 2014 Sheraton Hotel Harrisburg-Hershey

We keep this concept in front of employees on a regular basis, explaining that this is our goal and how we operate. It leads to business success and benefits customers if we can operate on the virtuous side of the cycle.   2014 PPL Electric Utilities

Customer satisfaction Efficient operations Fair rates, good value Staying on the virtuous side of the cycle requires: Safe, reliable service Customer satisfaction Efficient operations Fair rates, good value   Operating in the virtuous cycle requires focus in these key areas 2014 PPL Electric Utilities

Significant progress in 2013: Reliability Significant progress in 2013: Number of power outages down 9 percent 9% Last year, PPL Electric Utilities customers enjoyed the most reliable electric service in more than 15 years We’ve made good progress, but there’s more to be done. Reliability investments will continue Nearly $1 billion per year for next five years Duration of power outages down 11 percent, excluding severe weather 11% 2014 PPL Electric Utilities

Continuing our progress Reliability Continuing our progress Smart grid More tree trimming Lightning protection Animal guards Replacing aging equipment We’re installing smart grid technology around our service territory to detect power outages faster and limit the duration of power outages. With smart grid, we can reroute power to restore customers even before repairs are made. Smart grid is part of our overall plan to build a stronger, more modern distribution system to better serve our customers for years to come. We’re doing more tree trimming. Trees too close to wires are a major cause of outages We have stepped up removal and trimming Clearing more trees around power lines Clearing to the full width of our rights of way We’re adding lightning protection to help reduce strikes on power lines and animal guards to keep them away from our equipment. And we are replacing equipment that has been in in service for 40 – 50 years. 2014 PPL Electric Utilities

Enhanced Storm Response Improved coordination with other utilities to share resources Better outreach to counties, elected officials “Tent cities” during major storms to house repair crews closer to the work Better estimated restoration times We’re leveraging many tools to help improve our response during storms. We have expanded our emergency response staffing by assigning all employees a storm role, and enhanced processes to more efficiently plan and dispatch work. Through sharing of best practices and outreach within the industry, we have improved coordination for accessing field resources before, during and after storm events. We have also established an incident command system to help us interface with county emergency management groups and other local officials to communicate restoration priorities and better align the work with emergency planning occurring at the local level. We’re always looking to improve our storm response: Tent cities for housing and feeding external crews Providing customers with better estimates of when power will be restored 2014 PPL Electric Utilities

Enhanced Customer Communications E-mail blasts Automated telephone calls Improved website design -- www.pplelectric.com PPL Alerts News releases, media interviews about reliability improvements, value, the benefits of shopping and payment assistance programs. Strong social media dialogue We use email to contact our customers on a range of topics – from how to shop for generation supply to providing information on how to connect with us on social media. Customers can sign up for PPLAlerts , a service that will send updates to their home phone, mobile device or email account about outages, estimated restoration times, price to compare changes, high bill alerts, bill due reminders and payment confirmations. We use traditional news releases and media interviews to provide customers with information about reliability projects, the benefits of shopping for electricity supply, self service options for customers and payment assistance programs. We also have a strong and growing social media presence to help provide information to customers. 2014 PPL Electric Utilities

Making it easier for customers to do business with us Self-service options – payment agreements, stop/service and payments Improved call-flow systems for customer service representatives Enhanced interactive voice response capabilities New phone system Well-designed and administered programs for low-income households We want our customers to feel that we are easy to do business with. We have numerous self-serve options (e.g., payment agreements, start/stop service and payments) 27% of all payments received in 2013 were completed through a self-serve tool (e.g., IVR or web). Improved call-flow system for CSRs by providing them with scripts that alerts them to make referrals to assistance programs (e.g., LIHEAP). Includes built-in compliance features (e.g., presents MED CERT information). Enhanced IVR capabilities Reporting of power service problems. Processing of reconnect orders. Providing natural language capabilities so customers can complete more complex self-service transactions. New telephone system Provide a dynamic “screen pop” that retains customer’s input from the IVR and presents it to our phone rep. Improve skills-based routing to appropriate CSR. Route customers’ emails and faxes in real time. Utilities are spending hundreds of millions of dollars annually on low-income programs (over $400 million, excluding Act 129). These programs need to be easily accessible to customers and effectively managed. Must balance serving those who need assistance against the cost impact on other residential customers. 2014 PPL Electric Utilities

Our goal Top-quartile performance in: Safety Reliability Customer satisfaction Efficiency Our goal is to be a top-quartile performer in each of these areas. Safety is our number one priority for our employees and the public. We provide regular safety messaging on our website and in our customer newsletter. In addition, we have a safety outreach program for contractors and first responders to educate them on how to engage with our equipment. Our stepped up vegetation management program and investments in technology are two key components to keeping reliability strong. We’re an award-winning utility (22 J.D. Power customer service awards) when it comes to customer service, but that doesn’t mean we rest on our laurels. We’re always looking for ways to make it easier and more convenient for our customers to do business with us and to control costs. If we do these things right, we will continue to operate in the virtuous cycle. 2014 PPL Electric Utilities

Questions? 2014 PPL Electric Utilities