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PPL customers won't pay for new stadium's name

Published February 13. 2010 09:00AM

Dear Editor:

The Feb. 4 editorial about a potential stadium agreement being considered by PPL EnergyPlus unfortunately perpetuates the misunderstanding that the cost of such an agreement would be paid by customers of PPL Electric Utilities.

This is simply not true. PPL EnergyPlus and PPL Electric Utilities are separate companies. PPL EnergyPlus is a competitive electric generation supplier. PPL Electric Utilities is a regulated electric distribution company. The two companies do not and cannot, by law share revenues or costs to support each other's business activities.

PPL EnergyPlus is no different than any other business trying to attract new customers. It must invest in marketing and advertising as it continues to expand into other competitive electricity markets where most customers don't yet know the company's name. The stadium agreement is being considered as one part of that plan.

While the cost reported in some news outlets, including the Times News editorial, is inflated, PPL EnergyPlus expects that the stadium agreement would more than pay for itself through increased sales to customers in the Philadelphia and neighboring regions.

In the long run, all consumers benefit from increased competition in electricity markets. The fact that PPL EnergyPlus is considering this type of investment in the Philadelphia market is another sign that electric choice is working in Pennsylvania.

Gene Alessandrini

Senior Vice President-Marketing

PPL EnergyPlus

Allentown, PA

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