This excerpt taken from the PPL 10-Q filed May 5, 2005.
At March 31, 2005, PPL Electric had $133 million of cash and short-term investments and $142 million of short-term debt. At December 31, 2004, PPL Electric had $161 million in cash and short-term investments and $42 million of short-term debt. The decrease in PPL Electric's cash and short-term investment position was primarily the net result of:
Rating Agency Decisions
S&P, Moody's and Fitch periodically review the credit ratings on the debt and preferred securities of PPL Electric. Based on their respective reviews, the rating agencies may make certain ratings revisions.
The ratings of S&P, Moody's and Fitch are not a recommendation to buy, sell or hold any securities of PPL Electric. Such ratings may be subject to revisions or withdrawal by the agencies at any time and should be evaluated independently of each other and any other rating that may be assigned to their securities.
In January 2005, S&P affirmed PPL Electric's A-/A-2 corporate credit ratings and favorably revised its outlook on the company to stable from negative following the authorization of a $194 million rate increase by the PUC. S&P indicated that the outlook revision reflects its expectations that the rate increase, effective January 1, 2005, will allow for material improvement in PPL Electric's financial profile, which had lagged S&P's expectations in recent years. S&P indicated that the stable outlook reflects its expectations that PPL Electric "will rapidly improve and then maintain financial metrics more consistent with its ratings." S&P indicated that it expects PPL Electric's operations to remain stable through the expiration of the PLR agreement.
For additional information on PPL Electric's liquidity, see "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," in PPL Electric's 2004 Form 10-K.