PPL lowered its 2008 earnings from ongoing operations forecast from $2.35 per share to $2.25 per share.
Earlier in July, a US Court of Appeals ruled that the EPA overstepped its authority by instituting CAIR, which provided for a cap-and-trade system. PPL announced "all of the annual nitrogen oxide allowances PPL EnergyPlus had purchased may be impaired because the CAIR rule has been vacated and therefore these allowances are no longer required." PPL said it may book a $100 million impairment charge in the third quarter.