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United StatesSecurities and Exchange CommissionWashington, DC 20549





Form 10-Q

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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, 2002
|--- | ------------------------------------------------------------------------------------------------------------------------------------------------

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 EmployerIdentification No.
|--------------------- | ------------------------------------------------------------------------------------------------------------------------------------------------------------------ | ------------------------------
|                      |                                                                                                                                                                    |                               
|333-75369             | PPL Transition Bond Company,
        LLC
        (Delaware)
        Two North Ninth Street, GENA92, Room 3
        Allentown, 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 [ ]





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PPL TRANSITION BOND COMPANY, LLC

FORM 10-Q
    FOR THE QUARTER ENDED JUNE 30, 2002

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



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|PPL TRANSITION
        BOND COMPANY, LLCPART 1. FINANCIAL INFORMATIONItem 1. Financial Statements                   
|--------------------------------------------------------------------------------------------------------------------
|                                                                                                                    
|CONDENSED 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                                                                       
|                                                                                                                    
|Distribution to Member                                                                                              
|                                                                                                                    
|                                                                                                                    
|Member's equity - end of period                                                                                     
|                                                                                                                    
|                                                                                                                    
|The accompanying Notes to Condensed
          Financial Statements are an integral part of the financial statements.





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|PPL
        TRANSITION BOND COMPANY, LLCCONDENSED STATEMENT OF CASH FLOWS 
        (Unaudited) (Thousands of Dollars)
|---------------------------------------------------------------------------------------------------------------------
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|Cash Flows From
        Operating Activities                                                                         
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
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|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|Cash Flows From
        Investing Activities                                                                         
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|Cash Flows From
        Financing Activities                                                                         
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|Net Decrease in
        Cash and Cash Equivalents                                                                    
|Cash and Cash Equivalents
        at Beginning of Period                                                             
|                                                                                                                     
|Cash and Cash Equivalents
        at End of Period                                                                   
|                                                                                                                     
|                                                                                                                     
|                                                                                                                     
|The accompanying Notes to Condensed
          Financial Statements are an integral part of the financial statements. 



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|PPL
        TRANSITION BOND COMPANY, LLCCONDENSED BALANCE SHEET 
        (Unaudited)(Thousands of Dollars)           |                                        |                                                                |                                               |                  |           |          
|-------------------------------------------------------------------------------------------------------------------- | -------------------------------------- | -------------------------------------------------------------- | --------------------------------------------- | ---------------- | --------- | ---------
|                                                                                                                     |                                        |                                                                |                                               |                 
|                                                                                                                     |                                        | June 30,2002                                                   |                                               | December 31,2001
|ASSETS                                                                                                               |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     | Current Assets                         |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        | Cash and cash equivalents                                      |                                               | $                | 453       |          
|                                                                                                                     |                                        | Intangible transition charges receivable
        from Servicer |                                               |                  | 61,208    |          
|                                                                                                                     |                                        | Other current assets                                           |                                               |                  | 11        |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                | Current assets                                |                  |           | 61,672   
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     | Noncurrent Assets                      |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        | Intangible transition property,
        net                    |                                               |                  | 1,721,292 |          
|                                                                                                                     |                                        | Unamortized debt issuance expenses                             |                                               |                  | 7,637     |          
|                                                                                                                     |                                        | Restricted funds                                               |                                               |                  | 23,086    |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                | Noncurrent assets                             |                  |           | 1,752,015
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                | Total assets                                  |                  | $         | 1,813,687
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|LIABILITIES AND MEMBER'S EQUITY                                                                                      |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     | Current Liabilities                    |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        | Long-term debt                                                 |                                               | $                | 249,769   |          
|                                                                                                                     |                                        | Interest accrued                                               |                                               |                  | 1,730     |          
|                                                                                                                     |                                        | Other                                                          |                                               |                  | 2,223     |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                | Current liabilities                           |                  |           | 253,722  
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     | Noncurrent Liabilities                 |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        | Long-term debt, net of discount                                |                                               |                  | 1,541,417 |          
|                                                                                                                     |                                        | Other                                                          |                                               |                  | 6,213     |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                | Noncurrent liabilities                        |                  |           | 1,547,630
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     | Commitments and Contingent Liabilities |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     | Member's Equity                        |                                                                |                                               | 12,335           |           |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                | Total liabilities and member's
        equity |                  | $         | 1,813,687
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|                                                                                                                     |                                        |                                                                |                                               |                  |           |          
|The accompanying Notes to Condensed
          Financial Statements are an integral part of the financial statements.



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PPL Transition Bond Company, LLCNotes to Condensed Financial Statements

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



1. Interim Financial Statements
    
    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 condensed 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, 2001.
2. Nature of Operations
    
    The condensed financial statements include the accounts
      of PPL Transition Bond Company, LLC. 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 the filing of a certificate of formation
      with the Delaware Secretary of State and 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, or 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.
3. Summary of Significant Accounting Policies
    
    Management's Estimates
    
    The preparation of condensed 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 Series 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 Condensed 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.
    
    Reclassification
    
    Certain amounts in the June 30, 2001 and December 31, 2001
      financial statements have been reclassified to conform to the current presentation.
4. Long-Term Debt and Source of Repayment
    
    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 the amounts in the subaccounts maintained
      by the Trustee under the Indenture (as described below).
    
    Scheduled maturities and interest rates for the Bonds at June
      30, 2002 are:
    Class
        
        Bond Rate
        
        Amount
        
        Expected
          FinalPayment Date
        
        Final
          Maturity DateA-1
        
        6.08%
        
        $
        0
        
        March
          25, 2001
        
        March
          25, 2003A-2
        
        6.41%
        
        
        0
        
        December
          26, 2001
        
        December
          26, 2003A-3
        
        6.60%
        
        
        145,287
        
        March
          25, 2003
        
        March
          25, 2005A-4
        
        6.72%
        
        
        201,000
        
        December
          26, 2003
        
        December
          26, 2005A-5
        
        6.83%
        
        
        313,000
        
        March
          25, 2005
        
        March
          25, 2007A-6
        
        6.96%
        
        
        223,000
        
        December
          26, 2005
        
        December
          26, 2007A-7
        
        7.05%
        
        
        455,000
        
        June
          25, 2007
        
        June
          25, 2009A-8
        
        7.15%
        
        
        454,000
        
        December
          26, 2008
        
        June
          25, 2009$
        1,791,287Current
          Maturities
        
        (249,769
        )Unamort
          Discount
        
        (101
        )Long-term
          Debt
        $
        1,541,417
    The carrying value of the long-term debt approximates fair
      market value as of June 30, 2002. 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 2001 through May 2002 were $186 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 25 and
      June 25, 2002.   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.   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 level of $3.6
      million, deposits of $313,000 were made on each of the scheduled payment
      dates noted above.   Additionally, an amount equal to 0.5% of
      the initial principal amount of the Bonds was deposited into the Capital
      Subaccount under the Indenture on the date of issuance.   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, 2002, the following balances were reflected
      in the Subaccounts maintained by the Trustee:
    
    Subaccounts
        
        
        Balance($ Thousands)General
        
        $
        -Reserve
        
        
        7,339Overcollateralization
        
        
        3,608Capital
        
        
        12,139Total
        
        $
        23,086
5. Significant Agreements and Related Party Transactions
    
    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, and other administrative
      fees of $100,000. For the three months ended June 30, 2002, the Company
      expensed servicing fees of approximately $313,000 and other administrative
      fees of $25,000. For the six months ended June 30, 2002, the Company expensed
      servicing fees of $626,000 and other administrative fees of $50,000. The
      Company expensed similar amounts in the three and six months ended June
      30, 2001.
    
    At June 30, 2002, the Balance Sheet includes a receivable
      from PPL Electric Utilities of approximately $61 million for billed and
      unbilled ITC revenues.

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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 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 sole purpose of purchasing and owning ITP, issuing transition
  bonds, or 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.
  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 Instructions
    H(1)(a) and (b) of Form 10-Q. Such analysis should be read in conjunction
    with the Financial Statements and Notes to Condensed 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, 2001.



Results of Operations



Revenues



Revenue generated from the ITP for the three months ended June
  30, 2002 and 2001 were approximately $85 million and $90 million. Revenues generated
  from the ITP for the six months ended June 30, 2002 and 2001 were approximately
  $175 million and $198 million. The decrease in ITC revenues was due to lower
  ITC rates.



During the three months ended June 30, 2002 and 2001, the
    Company also earned approximately $57,000 and $138,000 in interest from the
    Capital Subaccount maintained by the Trustee and from temporary investments.
    During the six months ended June 30, 2002 and 2001, the Company earned approximately
    $114,000 and $328,000 in interest from the Capital Subaccount maintained by
    the Trustee and from temporary investments. The decrease in interest income
    in 2002 reflects a lower rate of return on investments in the Capital Subaccount
    in 2002 compared with 2001.



Expenses



During the three months ended June 30, 2002 and 2001, the
    Company incurred interest expense of approximately $33 million and $37 million.
    During the six months ended June 30, 2002 and 2001, the Company incurred interest
    expenses of approximately $67 million and $75 million. 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.



Amortization of the ITP (which is based on ITC revenues,
    interest accruals and other fees) was approximately $51 million and $53 million
    for the three months ended June 30, 2002 and 2001. Amortization of the ITP
    was approximately $107 million and $122 million for the six months ended June
    30, 2002 and 2001. The decrease reflects lower ITC revenues, as noted above.



For the three months ended June 30, 2002 and 2001, the Company
    also incurred administrative and general expenses of approximately $420,000
    and $466,000, including servicing fees of approximately $313,000 and other
    administrative fees of $25,000 in each period.



For the six months ended June 30, 2002 and 2001, the Company
    also incurred administrative and general expenses of approximately $842,000
    and $890,000, including servicing fees of approximately $626,000 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 the 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 $186 million
    of ITC collections for the billing periods of December 2001 to May 2002.



All scheduled quarterly Bond principal payments, interest
    payments and all related expenses were made on March 25, and June 25, 2002,
    including the following scheduled principal payments on the Class A-3 Bonds;
    $68 million and $64 million, respectively. The Overcollateralization Subaccount
    was funded by $313,000 on both March 25, 2002 and June 25, 2002, to reach
    its required funding level.



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 with the PUC on December
    15, 2001. The request was approved and revised rates became effective on January
    1, 2002.



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Item 3. Quantitative and Qualitative
    Disclosures About Market Risk

Not applicable.



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|PART II. OTHER INFORMATION                    
|----------------------------------------------
|                                              
|Item 1. Legal Proceedings                     
|                                              
|None.                                         
|                                              
|Item 6. Exhibits
      and Reports on Form 8-K
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              
|                                              





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GLOSSARY OF TERMS AND ABBREVIATIONS



Capital Subaccount - An account held by the Trustee
    under the Indenture, which was 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 became an
    indirect, wholly-owned subsidiary of PPL Energy Funding Corporation, a direct
    subsidiary of PPL Corporation.



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 from the Servicer are deposited.
    The Trustee allocates the funds from the General Subaccount to other subaccounts
    on the quarterly payment dates for the transition bonds.



Indenture - The Indenture entered into by PPL Transition
    Bond Company, LLC and the Trustee, providing for the issuance of the 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
    the 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 the 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 - Pennsylvania Public Utility Commission.



PUC Restructuring Order-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 under the Customer Choice
    Act; 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 for the transition bonds.



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 the 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.



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|SIGNATURES                                                                                                                                                                                              
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|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.
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|Date: August 12, 2002                                                                                                                                                                                   
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