Power Generator PPL To Cut 6% Of Non-Union US Work Force

   DOW JONES NEWSWIRES 
 

Electricity provider PPL Corp. (PPL) will shed about 200 jobs, or 6% its non-union U.S. work force, as it looks to cut costs amid financial pressures tied to the recession.

The economic downturn and slumping demand are forcing power providers to cut spending and to ask regulators to allow rate increases. Utilities are especially vulnerable to changes in demand as they base their rates on the expectation that energy sales will increase.

PPL, the Pennsylvania-based seller of electricity to about 4 million customers in that state and the U.K., will take a first-quarter charge of 3 cents to 4 cents a share related to the cuts, which are expected to reduce pretax operating expenses by $20 million to $25 million a year.

The company has nearly 11,000 employees in total.

Earlier this month, PPL said its fourth-quarter net income fell 34% due to lower margins and weaker international results.

Shares rose 1.5% to $28.60 in recent trading and have lost almost half their value since June.

-By Lauren Pollock, Dow Jones Newswires; 201-938-5964; [e-mail]