Retail Energy Marketing

In Montana, PPL has two primary operating subsidiaries:

• PPL Montana, LLC has the capacity to generate over 1,200 MW of electricity in Montana. About half of that capacity is generated by hydro with the balance being generated by coal.
• PPL EnergyPlus, LLC (PPL ENERGYPLUS) is the marketing and trading arm that buys and resells the output of the PPL Montana facilities.

PPL ENERGYPLUS manages a retail customer portfolio that is currently in excess of 240 MW in size with customers ranging between 6MW and 90MW.

The price of electricity in the State of Montana that is sold to large customers at retail is commonly benchmarked to the Mid-Columbia (Mid-C) market, which is a very liquid wholesale energy trading point in central Washington and the closest such hub to Montana. The Mid-C prices are aggregated, averaged, and published by several reporting agencies, including both Dow Jones and Intercontinental Exchange.

PPL ENERGYPLUS offers a variety of tailored product alternatives
to meet specific operational requirements and/or financial hedging objectives of large electricity customers. Some of the product characteristics may include:

• Energy Product Type - Firm/Uninterruptible, Non-Firm/Interruptible, etc.
• Product Shape or Quantity – Differing quantity by hour or fixed quantity for all hours.
• Price – Fixed for a specific term and quantity or variable based on the market price of energy over time at locations like the Mid-C.
• Term Length – One month minimum up to 5 or more years.
• These characteristics can be mixed and matched to meet different cost management and risk hedging objectives.

Prices for particular retail electric products must be negotiated directly between the customer and PPL ENERGYPLUS and will vary based on type of product, quantity, term length, credit, etc. PPL ENERGYPLUS delivers its electricity into the transmission system; therefore, it is the customer's responsibility to arrange for the necessary transmission and distribution services.

Competitive retail electricity supply generally offers advantages that may not be available under the typical bundled framework. Some of those benefits are as follows:

• More control over energy supply costs.
• Multiple product alternatives offered to best match operational and cost management objectives.
• Provides flexibility to manage the risk inherent with commodity prices.

PPL ENERGYPLUS is willing and able to serve a new industrial load in Montana and would look forward to an opportunity to work directly with project developers to describe PPL ENERGYPLUS' services in more detail, explore product alternatives tailored to meet specific needs, and provide the corresponding price offerings.