<PAGE>

                                                                   Exhibit 10(h)

                                PPL CORPORATION

                     DIRECTORS DEFERRED COMPENSATION PLAN

                          EFFECTIVE JANUARY 26, 1972













                                                            Amended and Restated
                                                     Effective February 14, 2000
<PAGE>

                                PPL CORPORATION
                     DIRECTORS DEFERRED COMPENSATION PLAN
                     ------------------------------------

1.     Purpose. The purpose of this Directors Deferred Compensation Plan is to
       provide certain Directors of PPL Corporation an additional means to
       increase their incomes after service as a Director, while at the same
       time increasing their equity interest in PPL Corporation, and to enable
       them to meet other important personal and financial needs.

                                      I-1
<PAGE>

2.     Definitions.

       (a)    "Board of Directors" means the board of directors of PPL
              Corporation.

       (b)    "Cash Account" means the account of Deferred Cash Compensation
              established for each Participant solely as a bookkeeping entry and
              described in Paragraph 7.2 of this Plan.

       (c)    "Cash Compensation" means the cash compensation payable to a
              Director, including retainer, meeting fees and other fees payable
              for service as Director as requested by PPL Corporation, minus the
              Mandatory Deferral Amount.

       (d)    "Committee" means two or more directors, who have been designated
              by the Board to act as the Committee and who qualify as
              "non-employee directors," under the rules of the Securities and
              Exchange Commission issued pursuant to section 16 of the
              Securities Exchange Act of 1934.

       (e)    "Common Stock" means the Common Stock, without par value, of PPL
              Corporation.

       (f)    "Compensation" means the total compensation payable to a Director,
              including retainer, meeting fees and other fees payable for
              service as Director.

       (g)    "Deferred Cash Compensation" means the Cash Compensation of a
              Participant deferred under the terms of this Plan.

       (h)    "Deferred Savings Plan" means the PPL Deferred Savings Plan.

       (i)    "Director" means an individual elected to the Board of Directors
              who is not an employee of PPL Corporation or who served on the
              Board of Directors of PPL prior to the Effective Time and was not
              an employee of PPL.

                                     II-1
<PAGE>

       (j)    "EBPB" means the Employee Benefit Plan Board, the members of which
              are appointed by the board of directors of PPL Corporation.

       (k)    "Effective Time" means the date as defined in the Agreement and
              Plan of Exchange between PPL and PPL Corporation.

       (l)    "Fair Market Value" on any date means the mean of the high and the
              low sale prices of Common Stock on the New York Stock Exchange
              composite tape on such date if such date is a day on which the
              common stock actually trades or otherwise on the next preceding
              date on which the common stock trades. If, as of any valuation
              date, the Common Stock is not traded on the New York Stock
              Exchange, valuations shall be based on the mean of the high and
              low sale prices on the principal national securities exchange on
              which the Common Stock is then traded or, if the Common Stock is
              not traded on any national securities exchange, on the mean of the
              high and low bid prices of the Common Stock in the over-the-
              counter market.

       (m)    "Mandatory Deferral Amount" means a portion of the retainer fee
              payable to the Participant equal to an amount established by
              resolution of the Committee from time to time, but in no event
              later than December 31 of the calendar year preceding the calendar
              year in which the retainer fee is payable to the Participant.

       (n)    "Participant" means an eligible Director of PPL Corporation, any
              or all of whose Compensation is deferred under this Plan.

       (o)    "Plan" means this Directors Deferred Compensation Plan as set
              forth herein

                                     II-2
<PAGE>

              and as hereafter amended from time to time.

       (q)    "PPL" means PPL Electric Utilities Corporation (prior to February
              14, 2000, PP&L, Inc.).

       (p)    "PPL Corporation" means PPL Corporation
              (prior to February 14, 2000, PP&L Resources, Inc.).

       (r)    "Stock Account" means the account of Deferred Compensation
              established for each Participant solely as a bookkeeping entry and
              described in Paragraph 7.1 of this Plan.

       (s)    "Stock Unit" means a unit equal in value from time-to-time to the
              Fair Market Value of one share of Common Stock.

       (t)    "Total Amount Payable" means the amount credited to a
              Participant's Cash Account and the Participant's Stock Account.

The masculine pronoun shall be deemed to include the feminine and the singular
to include the plural unless a different meaning is plainly required by the
context.

                                     II-3
<PAGE>

3.      Effective Date. The amendments to this Plan necessary to make it a Plan
        of PPL Corporation rather than PPL are effective as of the Effective
        Time. The Plan, as amended and restated to provide for a Stock Account,
        was effective as of January 1, 1998.

                                     III-1
<PAGE>

4.     Eligibility. All Directors of PPL Corporation who are or become duly
       elected Directors shall be eligible to participate in this Plan as of the
       effective date of first election as a Director. An employee of PPL or PPL
       Corporation who is a member of the Board of Directors who retires or
       otherwise terminates his employment but continues as a member of the
       Board shall be eligible to participate as of the date of his termination
       of employment with PPL or PPL Corporation.

                                     IV-1
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5.     Mandatory Deferral.

       (a)    A Participant's Mandatory Deferral Amount shall automatically be
              deferred to such Participant's Stock Account on the date such
              amount would otherwise be payable to such Participant. Mandatory
              Deferral Amounts shall be subject to the rules set forth in this
              Plan, and each Participant shall have the right to receive
              payments of Common Stock on account of Mandatory Deferral Amounts
              under the circumstances hereinafter set forth.

       (b)    A Participant may not convert any portion of such Participant's
              Stock Account attributable to the Mandatory Deferral Amount or
              dividends thereon, as described in Paragraph 7.1(c), to the
              Participant's Cash Account for a period of 3 years from the date
              such Mandatory Deferral Amount was credited to the Participant's
              Stock Account.

                                      V-1
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6.     Deferred Cash Compensation.

       (a)    Participant shall have the right to elect to have all, or a
              portion, of his Cash Compensation deferred hereunder, either to
              his Stock Account or his Cash Account and may change the
              allocation between such accounts of any such Cash Compensation so
              deferred. The amount of Cash Compensation credited to either the
              Stock Account or the Cash Account will be limited to the Cash
              Compensation earned after the date of the election.

       (b)    Any election to defer future Cash Compensation for the first
              calendar year that Participant is eligible to participate in this
              Plan shall be made by the Participant in writing by the thirtieth
              (30th) day following the date on which the Participant is first
              eligible to participate by filing with the EBPB the appropriate
              election form. Any such election shall be limited to Cash
              Compensation earned after the date of the election.

       (c)    Any election to defer or change the amount of Cash Compensation to
              be deferred for any subsequent calendar year after the first
              calendar year of eligibility may be made by Participant not later
              than December 31 of the year preceding such calendar year by
              filing with the EBPB an election form; provided, however, that an
              election once made will be presumed to continue with respect to
              subsequent years unless changed or revoked by Participant.
              Participant, may, prior to December 31, 1994, elect to defer some
              or all of his Cash Compensation otherwise payable after July 1,
              1995 to this Stock Account.

                                     VI-1
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       (d)    Participant may revoke his election to defer Cash Compensation at
              any time by so notifying the EBPB in writing not later than
              December 31 of the year preceding the year for which the
              revocation will be effective. For any subsequent calendar year,
              Participant may resume his election to defer if he files with the
              EBPB an election form not later than December 31 of the year
              preceding such subsequent calendar year.

       (e)    The deferral of Cash Compensation shall be made in amounts elected
              for the calendar year in which such Cash Compensation is to be
              earned, unless the election specifies otherwise.

       (f)    Any election will be effective when actually received by PPL
              Services Corporation's Payroll Section.

       (g)    An election, once made, will be irrevocable as to Cash
              Compensation already deferred.

                                     VI-2
<PAGE>

7.1    Stock Account. PPL Corporation shall maintain a Stock Account in the
name of each Participant. Such Stock Account shall be maintained as follows:

       (a)    PPL Corporation shall credit to Participant's Stock Account the
              number of Stock Units equal to the Mandatory Deferral Amount on
              the date such amount would otherwise be payable to such
              Participant, divided by the Fair Market Value of one share of
              Common Stock on such date.

       (b)    PPL Corporation shall credit to Participant's Stock Account, the
              number of Stock Units equal to the amount of Deferred Cash
              Compensation elected by Participant to be credited to his Stock
              Account, divided by the Fair Market Value of one share of Common
              Stock on such date.

       (c)    As of each date a dividend or other distribution is paid or made
              on Common Stock to holders of record on and after the date of
              deferral hereunder, the Participant's Stock Account shall be
              credited with a number of additional Stock Units equal to the
              product of: (i) the amount of such dividend or distribution paid
              with respect to one share of Common Stock, multiplied by (ii) the
              number of Stock Units held by the Participant, divided by (iii)
              the Fair Market Value of one share of Common Stock on such date.
              If an in-kind dividend or distribution is made on Common Stock,
              the Fair Market Value of such in-kind dividend or distribution
              paid with respect to one share of Common Stock will be equal to
              the amount of the dividend or distribution for purposes of
              subparagraph (i) of this Section.

       (d)    Subject to the limitations of Paragraph 5(b) and provided that
              such an election

                                     VII-1
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              is at least six months after the date of such Participant's last
              election, if any, to convert all or any portion of his Cash
              Account into interests in his Stock Account, a Participant may
              elect to convert all or any portion of his Stock Account into
              interests in such Participant's Cash Account by filing with the
              EBPB an election form. If such an election is made, the
              Participant's Cash Account shall be credited with an amount equal
              to the number of Stock Units being converted, multiplied by the
              Fair Market Value of one share of Common Stock on the date such
              amount is credited.

7.2     Cash Account. PPL Corporation shall maintain a Cash Account in the name
of each Participant. Such Cash Account shall be maintained as follows:

        (a)   PPL Corporation shall credit to Participant's Cash Account as of
              the same day on which the last Cash Compensation for the month
              would have been paid to said Participant an amount equal to the
              Deferred Cash Compensation elected by Participant to be credited
              to his Cash Account.

       (b)    Participant's Cash Account shall be credited with interest monthly
              based on a rate of interest substantially equivalent to that
              applied on account balances in the Blended Interest Rate Fund in
              the Deferred Savings Plan or such other comparable fund as may be
              selected by the EBPB.

       (c)    Provided that such an election is at least six months after the
              date of such Participant's last election, if any, to convert all
              or any portion of his Stock Account into interests in his Cash
              Account, a Participant may elect to convert all or any portion of
              his Cash Account into interests in such Participant's Stock

                                     VII-2
<PAGE>

              Account by filing with the EBPB an election form. If such an
              election is made, the Participant's Stock Account shall be
              credited with a number of Stock Units equal to the Cash Account
              amount to be converted, divided by the Fair Market Value of one
              share of Common Stock on such date.

                                     VII-3
<PAGE>

8.     Payment of Accounts.

       (a)    The Total Amount Payable shall be payable at the election of the
              Participant within thirty (30) days after:

              (i)  Participant ceases serving on the Board of Directors; or

              (ii) the later of:

                   (A) the Participant's cessation of service on the Board of
                       Directors; or

                   (B) the age elected by the Participant, provided such age is
                       not greater than 72.

          Such election must be made before the applicable Cash Compensation is
deferred and may not be changed with respect to Cash Compensation once it has
been deferred. The Participant may defer commencement of distribution until
January of the next calendar year after such event occurs. If the Participant
has made no election, payments will commence within thirty (30) days after a
Participant ceases to be a Director.

       (b)    (i)  The Total Amount Payable shall be paid to the Participant in
                   a single sum or, if elected by the Participant, in annual
                   installments up to a maximum of ten (10) years. Such election
                   must be made before the applicable Cash Compensation is
                   deferred and may not be changed with respect to Cash
                   Compensation once it has been deferred.

             (ii)  Payments in respect of the Stock Account shall be made in
                   Common Stock and payments in respect of the Cash Account
                   shall be made in cash. A Participant shall receive a number
                   of shares of Common Stock

                                    VIII-1
<PAGE>

                   equal to the number of Stock Units in his Stock Account.

             (iii) All annual installments shall, except for the final payment,
                   be not less than $5,000. To the extent necessary, the number
                   of annual installments may be reduced to ensure that annual
                   installments are at least $5,000.

             (iv)  The amount of each annual installment shall be determined by
                   dividing the Total Amount Payable less any payments already
                   made to Participant by the remaining number of annual
                   installments to be made (i.e., a 10-year payout shall pay
                   1/10 of the Total Amount Payable as the first installment,
                   1/9 as the second annual installment, etc.).

       (c)   (i)   If Participant dies while a Director or before all
                   installments have been paid under Paragraph 8(b), payments
                   shall be made to Participant's estate within 30 days after
                   Participant's death.

             (ii)  Payments made to Participant's estate will be made in a
                   single sum.

       (d)    As long as there is a balance in Participant's Cash Account, the
              balance shall be credited with interest pursuant to Paragraph
              7.2(b). For any installment or other payment from the Cash
              Account, interest shall accrue up to the last day of the month
              prior to that payment to Participant or his estate. As long as
              there is a balance in Participant's Stock Account, the remaining
              balance shall be credited with dividend amounts pursuant to
              Paragraph 7.1(c).

       (e)    The EBPB may determine, in its sole discretion, that the Total
              Amount Payable shall be paid to Participant or his estate in
              different amounts or at different times than provided under this
              Plan if, in the opinion of the EBPB, it would be

                                    VIII-2
<PAGE>

              necessary as the result of a personal emergency or hardship which
              results in a severe and immediate financial burden to the
              Participant, in which case payment shall be made only to the
              extent necessary to alleviate the Participant's hardship. Any
              determination by EBPB to change the amount or timing of a
              Participant's distribution shall not, however, result in the
              Participant receiving distributions in lesser amounts or over a
              longer period of time.

                                    VIII-3
<PAGE>

9.     Administration. The EBPB shall have the discretionary authority and final
       right to interpret, construe and make benefit determinations (including
       eligibility and amount) under the Plan. The decisions of the EBPB are
       final and conclusive for all purposes.

                                     IX-1
<PAGE>

10.    Miscellaneous.

       (a)    If the person to receive payment is deemed by the EBPB or is
              adjudged to be legally incompetent, the payments shall be made to
              the duly appointed guardian or committee of such incompetent, or
              they may be made to such person or persons whom the EBPB believes
              are caring for or supporting the incompetent.

       (b)    Nothing in this Plan shall confer any right on the Participant to
              continue as a Director.

       (c)    The expenses of the administration hereunder shall be borne by PPL
              Corporation.

       (d)    This Plan shall be construed, administered and enforced according
              to the laws of the Commonwealth of Pennsylvania.

       (e)    All payments from this Plan shall be made from the general assets
              of PPL Corporation. This Plan shall not require PPL Corporation to
              set aside, segregate, earmark, pay into trust or special account
              or otherwise restrict the use of its assets in the operation of
              the business. Participants shall have no greater right or status
              than as an unsecured general creditor of PPL Corporation with
              respect to any amounts owed to Participant hereunder.

       (f)    The Plan shall be unfunded.

       (g)    All payments to persons entitled to benefits hereunder shall be
              made to such persons and shall not be grantable, transferable,
              pledged or otherwise assignable in anticipation of payment
              thereof, or subject to attachment,

                                      X-1
<PAGE>

              alienation, garnishment, levy, execution or other legal or
              equitable process in whole or in part, by the voluntary or
              involuntary acts of any such persons, or by operation of law, and
              shall not be liable or taken for any obligation of such person.
              PPL Corporation will observe the terms of the Plan unless and
              until ordered to do otherwise by a state or federal court. As a
              condition of participation, a Participant agrees to hold PPL
              Corporation harmless from any claim that arises out of PPL
              Corporation obeying any such order whether such order effects a
              judgment of such court or is issued to enforce a judgment or order
              of another court.

       (h)    Participant's benefits under group life insurance, and other
              benefit plans as may be maintained by PPL Corporation for
              Directors will be provided based on all Compensation to
              Participant.

                                      X-2
<PAGE>

11.    Termination or Amendment.

       (a)    The Committee may, in its discretion, terminate or amend this Plan
              from time to time. In addition, the EBPB may make such amendments
              to the Plan as it deems necessary or desirable except those
              amendments which substantially increase the cost of the Plan to
              PPL Corporation or significantly alter the benefit design or
              eligibility requirements of the Plan. No termination or amendment
              shall (without Participant's consent) alter: a) Participant's
              right to payments of amounts previously credited to Participant's
              Accounts, which amounts shall continue to earn interest or
              accumulate dividends as provided for herein as though termination
              or amendment had not been effected, or b) the amount or times of
              payment of such amounts which have commenced prior to the
              effective date of such termination or amendment; provided,
              however, that no such consent may accelerate the Participant's
              payments. Notwithstanding the foregoing, if PPL Corporation is
              liquidated, the EBPB shall have the right to determine the Total
              Amount Payable under Paragraph 8 to Participant, and to cause the
              amount so determined to be paid in one or more installments or
              upon such other terms and conditions and at such other time (not
              beyond the time provided for herein) as the EBPB determines to be
              just and equitable. Any determinations made pursuant to the
              preceding sentence shall be consistent as to all Participants.

                                     XI-1
<PAGE>

             Executed this ______ day of___________________, 2000.

                                          PPL CORPORATION

         By:_____________________________________
                                Charles P. Pinto
                                Vice President-Human Resources

                                     XI-2
<PAGE>

                                PPL CORPORATION

                     DIRECTORS DEFERRED COMPENSATION PLAN

                          EFFECTIVE JANUARY 26, 1972

                               TABLE OF CONTENTS
                               -----------------
<TABLE>
<CAPTION>
PARAGRAPH                                                                       PAGE
---------                                                                       ----
<S>                                                                             <C>
  1.   Purpose..............................................................       1

  2.   Definitions..........................................................       2
       (a)     Board of Directors...........................................    II-1
       (b)     Cash Account.................................................    II-1
       (c)     Cash Compensation............................................    II-1
       (d)     Committee....................................................    II-1
       (e)     Common Stock.................................................    II-1
       (f)     Compensation.................................................    II-1
       (g)     Deferred Cash Compensation...................................    II-1
       (h)     Deferred Savings Plan........................................    II-1
       (i)     Director.....................................................    II-2
       (j)     EBPB.........................................................    II-2
       (k)     Effective Time...............................................    II-2
       (l)     Fair Market Value............................................    II-2
       (m)     Mandatory Deferral Amount....................................    II-2
       (n)     Participant..................................................    II-3
       (o)     Plan.........................................................    II-3
       (p)     PPL..........................................................    II-3
       (q)     PPL Corporation..............................................    II-3
       (r)     Stock Account................................................    II-3
       (s)     Stock Unit...................................................    II-3
       (t)     Total Amount Payable.........................................    II-3

  3.   Effective Date.......................................................       5

  4.   Eligibility..........................................................       6

  5.   Mandatory Deferral...................................................       7

  6.   Deferred Cash Compensation...........................................       8

  7.1  Stock Account........................................................      10
</TABLE>

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<TABLE>
<S>                                                                             <C>
  7.2  Cash Account.........................................................    11

  8.   Payment of Accounts..................................................    13

  9.   Administration.......................................................    16

  10.  Miscellaneous........................................................    17

  11.  Termination or Amendment.............................................    19
</TABLE>

                                     -ii-