UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549



FORM 10-Q

THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN
GENERAL INSTRUCTIONS H(1) (a) AND (b) OF FORM 10-Q AND
IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT



|[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
|--- | ------------------------------------------------------------------
|    | EXCHANGE ACT OF 1934                                              
|    | For the quarterly period ended June 30, 2001                      



OR



|[_] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES             
|--- | --------------------------------------------------------------------------------
|    | EXCHANGE ACT OF 1934                                                            
|    | For the transition period from ______________________ to _______________________





|Commission FileNumber | Registrant; State of Incorporation;Address; and Telephone No.                                                          | IRS Employer Identification No.
|--------------------- | ---------------------------------------------------------------------------------------------------------------------- | -------------------------------
|                      |                                                                                                                        |                                
|333-75369             | PPL Transition Bond Company, LLC(Delaware)Two North Ninth Street, GENA92, Room 3Allentown, PA 18101-1179(610) 774-7934 | 23-3004428                     

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. YES [ X ] NO [_]





PPL TRANSITION BOND COMPANY, LLC



FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2001



|INDEX                              
|-----------------------------------
|                                   
|PART I. FINANCIAL INFORMATION      
|                                   
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|PART II. OTHER INFORMATION         
|                                   
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|                                   
|                                   
|GLOSSARY OF TERMS AND ABBREVIATIONS
|                                   
|SIGNATURES                         



|PPL TRANSITION BOND COMPANY, LLC                                                               
|-----------------------------------------------------------------------------------------------
|Part 1. FINANCIAL INFORMATION                                                                  
|Item 1. Financial Statements                                                                   
|                                                                                               
|STATEMENT OF OPERATIONS AND CHANGES IN MEMBER'S EQUITY                                         
|(Unaudited)                                                                                    
|(Thousands of Dollars)                                                                         
|                                                                                               
|                                                                                               
|                                                                                               
|                                                                                               
|Revenues                                                                                       
|                                                                                               
|                                                                                               
|                                                                                               
|                                                                                               
|                                                                                               
|Expenses                                                                                       
|                                                                                               
|                                                                                               
|                                                                                               
|                                                                                               
|                                                                                               
|                                                                                               
|Operating Income                                                                               
|                                                                                               
|Income tax expense                                                                             
|                                                                                               
|Net Income                                                                                     
|                                                                                               
|Member's equity - beginning of period                                                          
|                                                                                               
|Member's equity - end of period                                                                
|                                                                                               
|The accompanying Notes to Financial Statements are an integral part of the financial statements



|PPL TRANSITION BOND COMPANY, LLC                                                                 |                                                        |                     |                     |                    
|------------------------------------------------------------------------------------------------ | ------------------------------------------------------ | ------------------- | ------------------- | -------------------
|STATEMENT OF CASH FLOWS                                                                          |                                                        |                     |                     |                    
|(Unaudited)                                                                                      |                                                        |                     |                     |                    
|(Thousands of Dollars)                                                                           |                                                        |                     |                     |                    
|                                                                                                 |                                                        |                     |                     |                    
|                                                                                                 |                                                        |                     | Six Months Ended   
|                                                                                                 |                                                        |                     | June 30,           
|                                                                                                 |                                                        |                     | 2001                |                    
|                                                                                                 |                                                        |                     |                     |                    
|Cash Flows From Operating Activities                                                             |                                                        |                     |                     |                    
|                                                                                                 | Net Income                                             |                     | $ 164               |                    
|                                                                                                 |                                                        |                     |                     |                    
|                                                                                                 | Adjustments to reconcile net income to net cash        |                     |                     |                    
|                                                                                                 | provided by operating activities:                      |                     |                     |                    
|                                                                                                 | Amortization of intangible transition property         |                     | 122,446             |                    
|                                                                                                 | Amortization of debt issuance expenses                 |                     | 1,428               |                    
|                                                                                                 | Amortization of debt discount                          |                     | 27                  |                    
|                                                                                                 | Changes in current assets and liabilities:             |                     |                     |                    
|                                                                                                 | Intangible transition charges receivable from Servicer |                     | 14,173              |                    
|                                                                                                 | Payable to Servicer                                    |                     |                     |                    
|                                                                                                 | Other                                                  |                     | (167)               |                    
|                                                                                                 | Other operating activities - net                       |                     | 2,134               |                    
|                                                                                                 |                                                        |                     | ------------------- |                    
|                                                                                                 | Net cash provided by operating activities              |                     | 140,205             |                    
|                                                                                                 |                                                        |                     | ------------------- |                    
|                                                                                                 |                                                        |                     |                     |                    
|Cash Flows From Investing Activities                                                             |                                                        |                     |                     |                    
|                                                                                                 | Change in restricted funds                             |                     | (11,102)            |                    
|                                                                                                 |                                                        |                     | ------------------- |                    
|                                                                                                 | Net cash provided by (used in) investing activities    |                     | (11,102)            |                    
|                                                                                                 |                                                        |                     | ------------------- |                    
|                                                                                                 |                                                        |                     |                     |                    
|Cash Flows From Financing Activities                                                             |                                                        |                     |                     |                    
|                                                                                                 | Payment of principal on bonds                          |                     | (129,138)           |                    
|                                                                                                 |                                                        |                     | ------------------- |                    
|                                                                                                 | Net cash used in financing activities                  |                     | (129,138)           |                    
|                                                                                                 |                                                        |                     | ------------------- |                    
|                                                                                                 |                                                        |                     |                     |                    
|Net Decrease in Cash and Cash Equivalents                                                        |                                                        | (35)                |                     | (2,490)            
|                                                                                                 |                                                        |                     |                     |                    
|Cash and Cash Equivalents at Beginning of Period                                                 |                                                        | 793                 |                     | 2,830              
|                                                                                                 |                                                        | ------------------- |                     | -------------------
|Cash and Cash Equivalents at End of Period                                                       |                                                        | $ 758               |                     | $ 340              
|                                                                                                 |                                                        |                     | ===========         |                    
|                                                                                                 |                                                        |                     |                     |                    
|The accompanying Notes to Financial Statements are an integral part of the financial statements.







|PPL TRANSITION BOND COMPANY, LLC                                                                 |                                        |                                                        |                                       |             
|------------------------------------------------------------------------------------------------ | -------------------------------------- | ------------------------------------------------------ | ------------------------------------- | ------------
|BALANCE SHEET                                                                                    |                                        |                                                        |                                       |             
|(Unaudited)                                                                                      |                                        |                                                        |                                       |             
|(Thousands of Dollars)                                                                           |                                        | June 30,                                               |                                       | December 31,
|                                                                                                 |                                        |                                                        |                                       |             
|ASSETS                                                                                           |                                        |                                                        |                                       |             
|                                                                                                 | Current Assets                         |                                                        |                                       |             
|                                                                                                 |                                        | Cash and cash equivalents                              |                                       | $ 758       
|                                                                                                 |                                        | Intangible transition charges receivable from Servicer |                                       | 68,011      
|                                                                                                 |                                        | Other current assets                                   |                                       | 8           
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        | Current assets                        |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 | Noncurrent Assets                      |                                                        |                                       |             
|                                                                                                 |                                        | Intangible transition property, net                    |                                       | 1,951,867   
|                                                                                                 |                                        | Unamortized debt issuance expenses                     |                                       | 10,150      
|                                                                                                 |                                        | Restricted funds                                       |                                       | 26,209      
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        | Noncurrent assets                     |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        | Total assets                          |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        |                                       |             
|LIABILITIES AND MEMBER'S EQUITY                                                                  |                                        |                                                        |                                       |             
|                                                                                                 | Current Liabilities                    |                                                        |                                       |             
|                                                                                                 |                                        | Long-term debt                                         |                                       | $ 243,192   
|                                                                                                 |                                        | Interest accrued                                       |                                       | 1,950       
|                                                                                                 |                                        | Taxes accrued - Member                                 |                                       | 77          
|                                                                                                 |                                        | Other                                                  |                                       | 3,239       
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        | Current liabilities                   |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 | Noncurrent Liabilities                 |                                                        |                                       |             
|                                                                                                 |                                        | Long-term debt, net of discount                        |                                       | 1,791,146   
|                                                                                                 |                                        | Other                                                  |                                       | 4,905       
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        | Noncurrent liabilities                |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 | Commitments and Contingent Liabilities |                                                        |                                       |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 | Member's Equity                        |                                                        | 12,494                                |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        | Total liabilities and member's equity |             
|                                                                                                 |                                        |                                                        |                                       |             
|                                                                                                 |                                        |                                                        |                                       |             
|The accompanying Notes to Financial Statements are an integral part of the financial statements.



PPL Transition Bond Company, LLC

Notes to Financial Statements

Terms and abbreviations appearing in Notes to Financial Statements are explained in the glossary.





Certain information in footnote disclosures, normally included in financial statements prepared in accordance with accounting standards generally accepted in the U.S., has been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC. These financial statements should be read in conjunction with the financial statements and notes included in PPL Transition Bond Company, LLC's Annual Report to the SEC on Form 10-K for the year ended December 31, 2000.



The financial statements include the accounts of PPL Transition Bond Company, LLC (the Company). The Company is a limited liability company established under the laws of the State of Delaware, and was formed on March 25, 1999 pursuant to a limited liability company agreement. PPL Electric Utilities is the sole member of the Company.

The Company was organized for the sole purpose of purchasing and owning ITP, issuing transition bonds (the Bonds), pledging its interest in ITP and other collateral to the Trustee under an Indenture between the Company and the Trustee to collateralize the Bonds, and performing activities that are necessary to accomplish these purposes. ITP represents the irrevocable right of PPL Electric Utilities, or its successor or assignee, to collect a non-bypassable ITC from customers pursuant to the PUC Restructuring Order in accordance with the Competition Act. The PUC Restructuring Order authorized the ITC to be sufficient to recover up to $2.85 billion aggregate principal amount of Bonds, plus an amount sufficient to provide for any credit enhancement, to fund any reserves and to pay interest, redemption premiums, servicing fees and other expenses relating to the Bonds.

The Company's organizational documents require it to operate in a manner so that its assets would not be consolidated with the bankruptcy estate of PPL Electric Utilities in the event PPL Electric Utilities becomes subject to a bankruptcy proceeding. Both PPL Electric Utilities and the Company have treated the transfer of the ITP to the Company as a sale under applicable law. The Bonds are treated as debt obligations of the Company. The assets of the Company are not available to creditors of PPL Electric Utilities or PPL Corporation, and the ITP is legally not an asset of PPL Electric Utilities or PPL Corporation. The Company is expected to terminate its existence after final maturity of the Bonds.

The Company issued $2.42 billion of Bonds in eight different classes on August 10, 1999. See Note 4 for additional information.



Management's Estimates

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions will affect the reported amount of revenues, expenses, assets, and liabilities and disclosure of contingencies. Actual results could differ from these estimates.

Cash and Cash Equivalents

The Company considers all liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash and Cash Equivalents do not include Restricted Funds.

Restricted Funds

Under the Indenture, the Company deposited an amount equal to 0.5% of the initial principal amount of the 1999-1 Bonds into the Capital Subaccount with the Trustee. This amount was contributed by PPL Electric Utilities to the Company. This account is the last account drawn in the event funds are insufficient to make scheduled allocations. If the Capital Subaccount is used, it will be replenished from ITC remittances to its original level through the periodic reconciliation process. The Indenture also provides for an Overcollateralization Subaccount. The funding level of this account is 0.5% of the initial principal amount of the Series 1999-1 Bonds, funded ratably over the life of the Bonds. Any excess amounts of ITC collections and investment earnings not released to the Company are deposited into a Reserve Subaccount. Accordingly, the Capital Subaccount, Overcollateralization Subaccount, and Reserve Subaccount are classified as "Restricted Funds" on the Balance Sheet.

Amortization of Intangible Transition Property

The ITP was recorded at the acquired cost and is being amortized over the life of the Bonds, based on ITC revenues, interest accruals and other fees. The ITP is solely the property of the Company.

Amortization of Debt Issuance Costs and Discount on Debt

The costs associated with the issuance of the Bonds have been capitalized and are being amortized over the life of the Bonds, utilizing the effective interest method.

Income Taxes

The Company is a limited liability company and has elected to be disregarded as a separate entity for federal and state income tax purposes. The Company's taxable income or loss is included in the consolidated federal and state income tax returns of its member. The Statement of Operations and Changes in Member's Equity reflects the Company's pro rata allocation of its member's consolidated income taxes in accordance with its member's tax sharing policy.



In August 1999, the Company issued $2.42 billion of Series 1999-1 Bonds. The Bonds consist of eight classes. The Company used the proceeds from the Bonds to purchase ITP from CEP Securities. PPL Electric Utilities arranged for the formation of CEP Securities to provide flexibility to issue multiple tranches of transition bonds at different dates. The Bonds are collateralized by the ITP and other assets of the Company.

Scheduled maturities and interest rates for the Bonds at June 30, 2001 are:



|                   |              |               |  | Expected Final    | Final            
|------------------ | ------------ | ------------- |  | ----------------- | -----------------
|Class              | Bond Rate    | Amount        |  | Payment Date      | Maturity Date    
|                   |              | ($ Thousands) |  |                   |                  
|A-1                | 6.08%        | 0             |  | March 25, 2001    | March 25, 2003   
|A-2                | 6.41%        | 85,478        |  | December 26, 2001 | December 26, 2003
|A-3                | 6.60%        | 303,000       |  | March 25, 2003    | March 25, 2005   
|A-4                | 6.72%        | 201,000       |  | December 26, 2003 | December 26, 2005
|A-5                | 6.83%        | 313,000       |  | March 25, 2005    | March 25, 2007   
|A-6                | 6.96%        | 223,000       |  | December 26, 2005 | December 26, 2007
|A-7                | 7.05%        | 455,000       |  | June 25, 2007     | June 25, 2009    
|A-8                | 7.15%        | 454,000       |  | December 26, 2008 | June 25, 2009    
|                   |              | ------------  |  |                   |                  
|                   |              | 2,034,478     |  |                   |                  
|Current Maturities | (243,192)    |               |  |                  
|Unamort. Discount  | (140)        |               |  |                  
|                   | ------------ |               |  |                  
|Long-term Debt     | 1,791,146    |               |  |                  
|                   | ========     |               |  |                  

The carrying value of the long-term debt approximates fair market value as of June 30, 2001. The current maturities stated above are based on the expected final payment dates rather than the final maturity date.

The source of repayment for the Bonds is the ITC. The Servicer collects this non-bypassable charge from PPL Electric Utilities' retail consumers of electricity. The Servicer deposits ITC monthly collections into a General Subaccount maintained by the Trustee under the Indenture. The monthly ITC collections from the billing periods of December 2000 through May 2001 were $213 million in aggregate. Each quarter, such monies are used to make principal and interest payments on the Bonds, and to pay fees, costs and charges specified in the Indenture. The Trustee made scheduled payments on March 26 and June 25, 2001. The Indenture also includes a Reserve Subaccount that is maintained for the purpose of retaining any excess amount of ITC collections and investment earnings not released to the Company. Approximately $9.3 million was deposited into the Reserve Subaccount on March 26, and an additional $893,000 on June 25, 2001. The Indenture also provides for an Overcollateralization Subaccount. The funding level of this account is 0.5% of the initial principal amount of the Series 1999-1 Bonds, funded ratably over the life of the Bonds. To meet the required Overcollateralization Subaccount levels, $327,000 was deposited on both March 26 and June 25, 2001. Additionally an amount equal to 0.5% of the initial principal amount of the Bonds has been deposited into the Capital Subaccount under the Indenture. If amounts available in the General, Reserve, and Overcollateralization Subaccounts are not sufficient on any payment date to make scheduled payments, the Trustee will draw on amounts in the Capital Subaccount in excess of $100,000. Any remaining amounts collateralizing the Bonds will be released to the Company upon final payment on the Bonds.

At June 30, 2001, the following balances were reflected in the Subaccounts maintained by the Trustee:



|Subaccounts           | Balance           
|--------------------- | ------------------
|                      | ($ Thousands)     
|General               | $0                
|Reserve               | 11,642            
|Overcollateralization | 2,337             
|Capital               | 12,230            
|                      | ------------------
|Totals                | $26,209           
|                      | ==========        





Under the Servicing Agreement, PPL Electric Utilities, as Servicer, is required to manage and administer the ITP of the Company and to collect the ITC on behalf of the Company. The Company pays an annual servicing fee of $1.25 million to PPL Electric Utilities. For the three months ended June 30, 2001, the Company expensed servicing fees of approximately $313,000 and other administrative fees of $25,000. For the six months ended June 30, 2001, the company expensed servicing fees of $625,000 and other administrative fees of $50,000.

At June 30, 2001, the Balance Sheet includes a receivable from PPL Electric Utilities of approximately $68 million for billed and unbilled ITC revenues.



PPL Transition Bond Company, LLC

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Information

Certain statements contained in this Form 10-Q concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Electric Utilities and PPL Transition Bond Company, LLC (the Company) believe that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that these expectations will prove to have been correct. These forward-looking statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the forward-looking statements. Any such forward-looking statements should be considered in conjunction with other documents of PPL Electric Utilities and the Company on file with the SEC.

New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for PPL Electric Utilities or the Company to predict all of such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. Any forward-looking statement speaks only as of the date on which such statement is made, and neither PPL Electric Utilities nor the Company undertakes any obligation to update the information contained in such statement to reflect subsequent developments or information.

Background

The Company is a Delaware limited liability company organized in March 1999 for the limited purposes of purchasing ITP and issuing Bonds secured by the ITP. The Company is wholly-owned by PPL Electric Utilities. The Company's organizational documents require it to operate in a manner so that its assets would not be consolidated with the bankruptcy estate of PPL Electric Utilities in the event PPL Electric Utilities becomes subject to a bankruptcy proceeding.

The following analysis of the financial condition and results of operations of the Company is in an abbreviated format pursuant to Instruction H of Form 10-Q. Such analysis should be read in conjunction with the Financial Statements and Notes to Financial Statements included in Item 1 above, and with the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report to the SEC on Form 10-K for the year ended December 31, 2000.

Results of Operations

Revenues

Revenue generated from the ITP for the three months ended June 30, 2001 and 2000 were approximately $90 million and $93 million, respectively. Revenues generated from the ITP for the six months ended June 30, 2001 and 2000 were approximately $198 million and $206 million, respectively.

During the three months ended June 30, 2001 and 2000, the Company earned approximately $138,000 and $4,000, respectively, in interest from the Capital Subaccount maintained by the Trustee and from temporary investments. During the six months ended June 30, 2001 and 2000, the Company earned approximately $328,000 and $81,000, respectively, in such interest. The additional interest income in 2001 reflects higher balances in the Capital Subaccount and temporary investments in 2001 compared with 2000.

Expenses

During the three months ended June 30, 2001 and 2000, the Company incurred interest expense of approximately $37 million and $40 million, respectively. During the six months ended June 30, 2001 and 2000, the Company incurred interest expense of approximately $75 million and $82 million, respectively. Interest expense includes interest on the bonds, and amortization of debt issuance expenses and discounts on the bonds. The decrease in interest expense was the result of the scheduled repayments on the bonds.

For the three months ended June 30, 2001 and 2000, the Company incurred administrative and general expenses of approximately $466,000, including servicing fees of $313,000 and other administrative fees of $25,000 in each period. For the six months ended June 30, 2001 and 2000, the Company incurred administrative and general fees of approximately $890,000 and $916,000, respectively, including servicing fees of $625,000 and other administrative fees of $50,000 in each period.

ITC Remittances and Debt Servicing

The principal amount of the Bonds, interest, fees, and funding of the Overcollateralization Subaccount are being recovered through ITC payable by retail consumers of electricity within PPL Electric Utilities' service territory who receive its electric delivery service. As part of PPL Electric Utilities' responsibility as Servicer under the Servicing Agreement, PPL Electric Utilities remitted to the Trustee approximately $213 million of ITC collections for the billing periods of December 2000 to May 2001.

All scheduled quarterly Bond principal payments, interest payments and all related expenses were made on March 26 and June 25, 2001. On March 26, 2001, scheduled principal payments of $37 million of the class A-1 Bonds were made and this series was retired. An additional $29 million in principal payments were made on the Class A-2 6.41% bonds. On June 25, 2001, the scheduled principal payment of $63 million was made on the class A-2 Bonds. The Overcollateralization Subaccount was funded by $327,000 on both March 26 and June 25, 2001, to reach its required funding levels. Excess ITC Collections and investment earnings not released to the Company, totaling approximately $10.2 million, were deposited into the Reserve Subaccount on March 26 and June 25, 2001.

The Servicing Agreement also requires PPL Electric Utilities, as Servicer, to file adjustment requests on each calculation date, and the Competition Act and the PUC Restructuring Order require the PUC to act upon these requests within specified time periods. These adjustment requests are based on actual ITC collections and updated assumptions by the Servicer as to projected future usage of electricity by customers, expected delinquencies and write-offs, and future payments and expenses relating to the ITP and the Bonds. The Servicer filed such an adjustment request on December 15, 2000 with the PUC. The request was approved and revised rates became effective on January 1, 2001.



Item 3. Quantitative and Qualitative Disclosures About Market Risk

Not applicable.









PART II. OTHER INFORMATION

Item 1. Legal Proceedings

None.

Item 6. Exhibits and Reports on Form 8-K

1. Exhibits
2. Reports on Form 8-K

None.







GLOSSARY OF TERMS AND ABBREVIATIONS

Capital Subaccount - An account held by the Trustee under the Indenture which is funded by a contribution to PPL Transition Bond Company, LLC by PPL Electric Utilities at the date of issuance of each series of transition bonds.

CEP Securities - CEP Securities Co. LLC, a Delaware limited liability company and formerly an indirect wholly-owned subsidiary of PPL Electric Utilities. Effective July 1, 2000 CEP Securities is an indirect wholly-owned subsidiary of PPL Energy Funding Corp.

Competition Act - The Pennsylvania Electricity Generation Customer Choice and Competition Act, enacted in Pennsylvania in December 1996.

General Subaccount-An account held by the Trustee under the Indenture, into which ITC remittances by the Servicer are deposited. The Trustee allocates the funds from the General Subaccount to other subaccounts on the quarterly payment dates.

Indenture - The Indenture entered into by PPL Transition Bond Company, LLC and the Trustee, providing for the issuance of transition bonds.

ITC - Intangible Transition Charge, which PPL Electric Utilities has been authorized by the PUC to impose on customer bills and to collect through a non-bypassable billing mechanism to recover Qualified Transition Expenses.

ITP - Intangible Transition Property, which is the property right created under the Competition Act, representing the irrevocable right of PPL Transition Bond Company, LLC to receive, through ITC, amounts sufficient to recover all Qualified Transition Expenses.

Overcollateralization Subaccount - An account held by the Trustee under the Indenture, which is funded ratably from collections of ITC over the term of each series of transition bonds.

PPL Electric Utilities - PPL Electric Utilities Corporation, the sole member of PPL Transition Bond Company, LLC.

PUC - The Pennsylvania Public Utility Commission.

PUCRestructuringOrder - The final order issued by the PUC to PPL Electric Utilities in August 1998, in connection with PPL Electric Utilities' restructuring filing under the Competition Act, as supplemented by a May 1999 PUC order.

QualifiedTransitionExpenses - The transition or stranded costs of an electric utility approved by the PUC for recovery through the issuance of transition bonds; the costs of retiring existing debt or equity capital of the electric utility or its holding company parent, including accrued interest and acquisition or redemption premium, costs of defeasance, and other related fees, costs and charges, through the issuance of transition bonds or the assignment, sale or other transfer of ITP; and the costs incurred to issue, service or refinance the transition bonds, including accrued interest and acquisition or redemption premium, and other related fees, costs and charges associated with the transition bonds, or to assign, sell or otherwise transfer ITP.

Reserve Subaccount - An account held by the Trustee under the Indenture, which consists of remaining funds available after required allocations on the quarterly payment dates.

SEC - Securities and Exchange Commission.

Servicer - PPL Electric Utilities acting in this capacity under the Servicing Agreement. In this capacity, PPL Electric Utilities calculates, bills and collects ITC, and maintains applicable accounting records, among other duties.

Servicing Agreement - The Intangible Property Servicing Agreement between PPL Electric Utilities, as Servicer, and PPL Transition Bond Company, LLC, as Issuer.

Trustee - The Bank of New York, a New York banking corporation, as Trustee under the Indenture.







SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

|                      | PPL Transition Bond Company, LLC
|--------------------- | --------------------------------
|                      |                                 
|                      |                                 
|                      |                                 
|                      |                                 
|                      |                                 
|Date: August 13, 2001 | /s/ James S. Pennington         
|                      | James S. Pennington, Manager    
|                      |                                 
|                      |                                 
|                      | /s/ Stephen C. May              
|                      | Stephen C. May, Treasurer       







Exhibit 99

|Quarterly Servicer's Certificate
PPL Transition Bond Company LLC
$2,420,000,000 Transition Bonds, Series 1999-1
Pursuant to Section 4 of Annex 1 the Intangible Transition Property Servicing Agreement dated as of August 10, 1999 (the "Servicing Agreement") between PPL Electric Utilities Corporation, as Servicer and PPL Transition Bond Company, LLC, as Issuer, the Servicer does hereby certify as follows:
Capitalized terms used in the Quarterly Servicer's Certificate (the "Quarterly Certificate") have their respective meanings as set forth in the Servicing Agreement. References herein to the "Indenture" are to the Indenture dated as of August 10, 1999 between PPL Transition Bond Company, LLC, as issuer and The Bank of New York as Trustee.Billing Periods: March 2001, April 2001, May 2001
Payment Date: June 25, 2001
|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



|1. | Collections Allocable and Aggregate Amounts Available for the Current Payment Date:   
|-- | --------------------------------------------------------------------------------------
|N1 | i.                                                                                    
|   | ii.                                                                                   
|   | iii.                                                                                  
|   | iv.                                                                                   
|   | v.                                                                                    
|   | vi.                                                                                   
|   | vii.                                                                                  
|   | viii.                                                                                 
|   |                                                                                       
|   | ix.                                                                                   
|   | x.                                                                                    
|   | xi.                                                                                   
|   | xii.                                                                                  
|   |                                                                                       
|2. | Outstanding Principal Balance and Collection Account Balance as of Prior Payment Date:
|   | i.                                                                                    
|   | ii.                                                                                   
|   | iii.                                                                                  
|   | iv.                                                                                   
|   | v.                                                                                    
|   | vi.                                                                                   
|   | vii.                                                                                  
|   | viii.                                                                                 
|   | ix.                                                                                   
|   |                                                                                       
|   | x.                                                                                    
|   | xi.                                                                                   
|   | xii.                                                                                  
|   |                                                                                       
|3. | Required Funding/Payments as of Current Payment Date:                                 
|   | i.                                                                                    
|   | ii.                                                                                   
|   | iii.                                                                                  
|   | iv.                                                                                   
|   | v.                                                                                    
|   | vi.                                                                                   
|   | vii.                                                                                  
|   | viii.                                                                                 
|   | ix.                                                                                   



|Note 1 - |                                                                                                    | ITC collections $36,564,300.11 less adjustment of $1,146,573.42
over-remitted Jan, Feb 2001
|-------- | -------------------------------------------------------------------------------------------------- | -------------------------------------------------------------------------------------------
|         | x.                                                                                                 | Required Class A-1 Coupon (6.08% per annum rate)                                           
|         | xi.                                                                                                | Required Class A-2 Coupon (6.41% per annum rate)                                           
|         | xii.                                                                                               | Required Class A-3 Coupon (6.60% per annum rate)                                           
|         | xiii.                                                                                              | Required Class A-4 Coupon (6.72% per annum rate)                                           
|         | xiv.                                                                                               | Required Class A-5 Coupon (6.83% per annum rate)                                           
|         | xv.                                                                                                | Required Class A-6 Coupon (6.96% per annum rate)                                           
|         | xvi.                                                                                               | Required Class A-7 Coupon (7.05% per annum rate)                                           
|         | xvii.                                                                                              | Required Class A-8 Coupon (7.15% per annum rate)                                           
|         | xviii.                                                                                             | Required Overcollateralization Funding                                                     
|         | xix.                                                                                               | Required Capital Subaccount Funding                                                        
|         |                                                                                                    |                                                                                            
|4.       | Allocation of Remittances as of Current Payment Date Pursuant to
Section 8.02(d) of the Indenture:
|         | i.                                                                                                 | Bond Trustee Fees and Expenses                                                             
|         | ii.                                                                                                | Independent Managers Fee                                                                   
|         | iii.                                                                                               | Servicing Fee                                                                              
|         | iv.                                                                                                | Quarterly Administration Fee                                                               
|         | v.                                                                                                 | Operating Expenses (subject to $100,000 cap)                                               
|         | vi.                                                                                                | Quarterly Interest                                                                         
|         |                                                                                                    | 1.                                                                                         
|         |                                                                                                    | 2.                                                                                         
|         |                                                                                                    | 3.                                                                                         
|         |                                                                                                    | 4.                                                                                         
|         |                                                                                                    | 5.                                                                                         
|         |                                                                                                    | 6.                                                                                         
|         |                                                                                                    | 7.                                                                                         
|         |                                                                                                    | 8.                                                                                         
|         | vii.                                                                                               | Principal Due and Payable                                                                  
|         | viii.                                                                                              | Scheduled Quarterly Principal                                                              
|         |                                                                                                    | 1.                                                                                         
|         |                                                                                                    | 2.                                                                                         
|         |                                                                                                    | 3.                                                                                         
|         |                                                                                                    | 4.                                                                                         
|         |                                                                                                    | 5.                                                                                         
|         |                                                                                                    | 6.                                                                                         
|         |                                                                                                    | 7.                                                                                         
|         |                                                                                                    | 8.                                                                                         
|         | ix.                                                                                                | Operating Expenses (in excess of $100,000)                                                 
|         | x.                                                                                                 | Funding of Capital Subaccount (to required level)                                          
|         | xi.                                                                                                | Funding of Overcollateralization Subaccount (to required level)                            
|         | xii.                                                                                               | Net Earnings on Capital Subaccount Released to Issuer                                      
|         | xiii.                                                                                              | Deposits to Reserve Subaccount                                                             
|         | xiv.                                                                                               | Released to Issuer upon Series Retirement: Collection Account                              
|         |                                                                                                    |                                                                                            
|5.       | Outstanding Principal Balance and Collection Account Balance as of
Current Payment Date:          
|         | (after giving effect to payments to be made on such payment date):                                 |                                                                                            
|         | i.                                                                                                 | Class A-1 Principal Balance                                                                
|         | ii.                                                                                                | Class A-2 Principal Balance                                                                
|         | iii.                                                                                               | Class A-3 Principal Balance                                                                
|         | iv.                                                                                                | Class A-4 Principal Balance                                                                
|         | v.                                                                                                 | Class A-5 Principal Balance                                                                
|         | vi.                                                                                                | Class A-6 Principal Balance                                                                
|         | vii.                                                                                               | Class A-7 Principal Balance                                                                
|         | viii.                                                                                              | Class A-8 Principal Balance                                                                



|                                                                                                  | ix.                                                                                                        | Transition Bond Principal Balance        | $2,034,478,334.00               
|------------------------------------------------------------------------------------------------- | ---------------------------------------------------------------------------------------------------------- | ---------------------------------------- | --------------------------------
|                                                                                                  |                                                                                                            |                                          |                                 
|                                                                                                  | x.                                                                                                         | Reserve Subaccount Balance               | $11,536,720.85                  
|                                                                                                  | xi.                                                                                                        | Overcollateralization Subaccount Balance | $2,322,475.94                   
|                                                                                                  | xii.                                                                                                       | Capital Subaccount Balance (less $100K)  | $12,000,000.00                  
|                                                                                                  |                                                                                                            |                                          |                                 
|6.                                                                                                | Subaccount Draws as of Current Payment Date (if applicable, pursuant
to Section 8.02(d) of the Indenture):
|                                                                                                  | i.                                                                                                         | Reserve Subaccount                       | $0.00                           
|                                                                                                  | ii.                                                                                                        | Overcollateralization Subaccount         | $0.00                           
|                                                                                                  | iii.                                                                                                       | Capital Subaccount                       | $0.00                           
|                                                                                                  | iv.                                                                                                        | Total Draws                              | $0.00                           
|                                                                                                  |                                                                                                            |                                          |                                 
|7.                                                                                                | Shortfalls In Interest and Principal Payments as of Current Payment Date:                                 
|                                                                                                  | i.                                                                                                         | Quarterly Interest                       | $0.00                           
|                                                                                                  |                                                                                                            | 1.                                       | Class A-1 Bond Coupon Payment   
|                                                                                                  |                                                                                                            | 2.                                       | Class A-2 Bond Coupon Payment   
|                                                                                                  |                                                                                                            | 3.                                       | Class A-3 Bond Coupon Payment   
|                                                                                                  |                                                                                                            | 4.                                       | Class A-4 Bond Coupon Payment   
|                                                                                                  |                                                                                                            | 5.                                       | Class A-5 Bond Coupon Payment   
|                                                                                                  |                                                                                                            | 6.                                       | Class A-6 Bond Coupon Payment   
|                                                                                                  |                                                                                                            | 7.                                       | Class A-7 Bond Coupon Payment   
|                                                                                                  |                                                                                                            | 8.                                       | Class A-8 Bond Coupon Payment   
|                                                                                                  | ii.                                                                                                        | Quarterly Principal                      | $0.00                           
|                                                                                                  |                                                                                                            | 1.                                       | Class A-1 Bond Principal Payment
|                                                                                                  |                                                                                                            | 2.                                       | Class A-2 Bond Principal Payment
|                                                                                                  |                                                                                                            | 3.                                       | Class A-3 Bond Principal Payment
|                                                                                                  |                                                                                                            | 4.                                       | Class A-4 Bond Principal Payment
|                                                                                                  |                                                                                                            | 5.                                       | Class A-5 Bond Principal Payment
|                                                                                                  |                                                                                                            | 6.                                       | Class A-6 Bond Principal Payment
|                                                                                                  |                                                                                                            | 7.                                       | Class A-7 Bond Principal Payment
|                                                                                                  |                                                                                                            | 8.                                       | Class A-8 Bond Principal Payment
|                                                                                                  |                                                                                                            |                                          |                                 
|8.                                                                                                | Shortfalls in Required Subaccount Levels as of Current Payment Date:                                      
|                                                                                                  | i.                                                                                                         | Overcollateralization Subaccount         | $0.00                           
|                                                                                                  | ii.                                                                                                        | Capital Subaccount                       | $0.00                           
|                                                                                                  |                                                                                                            |                                          |                                 
|                                                                                                  |                                                                                                            |                                          |                                 
|                                                                                                  |                                                                                                            |                                          |                                 
|IN WITNESS HEREOF, the undersigned has duly executed and delivered this Quarterly Servicer's Bond
|this 21st day of June, 2001.                                                                      |                                                                                                           
|                                                                                                  |                                                                                                            |                                          |                                 
|PPL Electric Utilities Corporation, as Servicer                                                   |                                                                                                           
|                                                                                                  |                                                                                                            |                                          |                                 
|by: /s/ James E. Abel                                                                             |                                                                                                           
|                                                                                                  | James E. Abel                                                                                              |                                         
|                                                                                                  | Vice President - Finance & Treasurer                                                                       |