---

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

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 SEPTEMBER 30, 2001

Table of Contents

|PART I.  FINANCIAL INFORMATION      | Page                                                                                         
|----------------------------------- | ---------------------------------------------------------------------------------------------
|                                    |                                                                                              
|                                    | Item 1. Financial Statements                                                                 
|                                    |                                                                                              
|                                    |                                                                                              
|                                    |                                                                                              
|                                    |                                                                                              
|                                    |                                                                                              
|                                    |                                                                                              
|                                    |                                                                                              
|                                    |                                                                                              
|                                    |                                                                                              
|                                    | Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
|                                    |                                                                                              
|                                    | Item 3. Quantitative and Qualitative Disclosures About Market Risk                           
|                                    |                                                                                              
|PART II. OTHER INFORMATION          |                                                                                              
|                                    |                                                                                              
|                                    | Item 1. Legal Proceedings                                                                    
|                                    |                                                                                              
|                                    | Item 6. Exhibits and Reports on Form 8-K                                                     
|                                    |                                                                                              
|GLOSSARY OF TERMS AND ABBREVIATIONS | 8                                                                                            
|                                    |                                                                                              
|SIGNATURES                          |                                                                                              



---

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

1



---



|PPL TRANSITION BOND COMPANY, LLC                                                                           |                                                          |                          |           |         |           | 
|---------------------------------------------------------------------------------------------------------- | -------------------------------------------------------- | ------------------------ | --------- | ------- | --------- | 
|CONDENSED STATEMENT OF CASH FLOWS                                                                          |                                                          |                          |           |         |           | 
|(Unaudited)                                                                                                |                                                          |                          |           |         |           | 
|(Thousands of Dollars)                                                                                     |                                                          |                          |           |         |           | 
|                                                                                                           |                                                          |                          |           |         |           | 
|                                                                                                           |                                                          | Nine Months Ended       
|                                                                                                           |                                                          | September 30,           
|                                                                                                           |                                                          |                         
|                                                                                                           |                                                          | 2001                     |           | 2000   
|                                                                                                           |                                                          |                          |           |        
|                                                                                                           |                                                          |                          |           |         |          
|Cash Flows From Operating Activities                                                                       |                                                          |                          |           |         |          
|                                                                                                           | Net Income                                               | $                        | 231       | $       | 80       
|                                                                                                           |                                                          |                          |           |         |           | 
|                                                                                                           | Adjustments to reconcile net income to net cash provided
|                                                                                                           |                                                          | by operating activities: |           |         |           | 
|                                                                                                           | Amortization of intangible transition property           |                          | 183,751   |         | 178,585  
|                                                                                                           | Amortization of debt issuance expenses                   |                          | 2,094     |         | 2,521    
|                                                                                                           | Amortization of debt discount                            |                          | 38        |         | 51       
|                                                                                                           | Changes in current assets and liabilities:               |                          |           |         |           | 
|                                                                                                           | Intangible transition charge receivable from Servicer    |                          | 10,399    |         | (5,250)  
|                                                                                                           | Payable to Servicer                                      |                          |           |         | (1,056)  
|                                                                                                           | Other                                                    |                          | 1,765     |         | 1,766    
|                                                                                                           | Other operating activities - net                         |                          | 981       |         | 981      
|                                                                                                           |                                                          |                          |           |         |          
|                                                                                                           | Net cash provided by operating activities                |                          | 199,259   |         | 177,678  
|                                                                                                           |                                                          |                          |           |         |          
|                                                                                                           |                                                          |                          |           |         |           | 
|Cash Flows From Investing Activities                                                                       |                                                          |                          |           |         |           | 
|                                                                                                           | Change in restricted funds                               |                          | (14,592)  |         | (5,632)  
|                                                                                                           |                                                          |                          |           |         |          
|                                                                                                           | Net cash used in investing activities                    |                          | (14,592)  |         | (5,632)  
|                                                                                                           |                                                          |                          |           |         |          
|                                                                                                           |                                                          |                          |           |         |           | 
|Cash Flows From Financing Activities                                                                       |                                                          |                          |           |         |           | 
|                                                                                                           | Payment of principal on bonds                            |                          | (184,785) |         | (174,624)
|                                                                                                           |                                                          |                          |           |         |          
|                                                                                                           | Net cash used in financing activities                    |                          | (184,785) |         | (174,624)
|                                                                                                           |                                                          |                          |           |         |          
|                                                                                                           |                                                          |                          |           |         |           | 
|Net Decrease in Cash and Cash Equivalents                                                                  |                                                          | (118)                    |           | (2,578)
|Cash and Cash Equivalents at Beginning of Period                                                           |                                                          | 793                      |           | 2,830  
|                                                                                                           |                                                          |                          |           |         |          
|Cash and Cash Equivalents at End of Period                                                                 | $                                                        | 675                      | $         | 252    
|                                                                                                           |                                                          |                          |           |         |          
|                                                                                                          
|                                                                                                          
|The accompanying Notes to Condensed Financial Statements are an
integral part of the financial statements.

2

---

|PPL TRANSITION BOND COMPANY, LLC                                                                          
|----------------------------------------------------------------------------------------------------------
|CONDENSED BALANCE SHEET                                                                                   
|(Unaudited)                                                                                               
|(Thousands of Dollars)                                                                                    
|                                                                                                          
|                                                                                                          
|                                                                                                          
|ASSETS                                                                                                    
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|LIABILITIES AND MEMBER'S EQUITY                                                                           
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|                                                                                                          
|The accompanying Notes to Condensed Financial Statements are an
integral part of the financial statements.

3

---

PPL Transition Bond Company, LLC

Notes 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, 2000.
2. Nature of Operations

The condensed 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.
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.

4
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.
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 other assets of the Company.

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

Expected Final
FinalClass
Bond Rate

Amount
Payment Date
Maturity Date($ Thousands)A-1
6.08%
$
0
March 25, 2001
March 25, 2003A-2
6.41%

29,831
December 26, 2001
December 26, 2003A-3
6.60%

303,000
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$
1,978,831Current Maturities

(244,297)Unamort. Discount

(129)Long-term Debt
$
1,734,405
The carrying value of the long-term debt approximates fair market value as of September 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 August 2001 were $307 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, June 25, and September 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.  The following amounts were deposited to the Reserve
Subaccount on the dates noted above:  $9.3 million, $893,000 and $3 million.  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, the following deposits were made on the same dates noted above:  $327,000,
$327,000 and $276,000.  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 September 30, 2001, the following balances were reflected in the Subaccounts maintained by the
Trustee:

Subaccounts
Balance($ Thousands)General
$     
       -Reserve
14,726Overcollateralization
2,635Capital
12,338Total
$     29,699
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.  For the three months ended September 30, 2001, the
Company expensed servicing fees of approximately $313,000 and other administrative fees of $25,000.  For the nine
months ended September 30, 2001, the company expensed servicing fees of approximately $937,000 and other
administrative fees of $75,000.

At September 30, 2001, the Balance Sheet includes a receivable from PPL Electric Utilities of
approximately $72 million for billed and unbilled ITC revenues.

5

---



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 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 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, 2000.



Results of Operations



Revenues



Revenue generated from the ITP for the quarters ended September 30, 2001 and 2000 were
approximately $97 million and $95 million.  Revenues generated from the ITP for the nine months ended September 30,
2001 and 2000 were approximately $295 million and $301 million.



During the quarters ended September 30, 2001 and 2000, the Company also earned approximately
$115,000 and $55,000 in interest from the Capital Subaccount maintained by the Trustee and from temporary
investments.  During the nine months ended September 30, 2001 and 2000, the Company earned approximately $443,000
and $136,000 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 September 30, 2001 and 2000, the Company incurred interest expense
of approximately $36 million and $40 million.  During the nine months ended September 30, 2001 and 2000, the Company
incurred interest expense of approximately $110 million and $121 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.

For the three months ended September 30, 2001 and 2000, the Company also incurred administrative
and general expenses of approximately $424,000 and $518,000, including servicing fees of approximately $313,000 and
other administrative fees of $25,000 in each period.  For the nine months ended September 30, 2001 and 2000, the
Company incurred administrative and general fees of approximately $1.3 million and $1.4 million, including servicing
fees of approximately $937,000 and administrative fees of $75,000, in each period.

6

---



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 $307 million of
ITC collections for the billing periods of December 2000 to August 2001.



All scheduled quarterly Bond principal payments, interest payments and all related expenses were
made on March 26, June 25, and September 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 bonds.  On June 25 and September 25, 2001 the scheduled principal payments of $63 million and
$56 million were made on the class A-2 Bonds.  The Overcollateralization Subaccount was funded by $327,000 on both
March 26 and June 25, 2001 and $276,000 on September 25, 2001, to reach its required funding levels.  Excess ITC
collections and investment earnings not released to the Company, totaling approximately $13.2 million, were
deposited into the Reserve Subaccount on March 26, June 25, and September 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

99 - Quarterly Servicer's Certificate
2. Reports on Form 8-K
None.

7

---

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.



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.



Qualified Transition Expenses  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.

8

---

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 | 
|----------------------- | -------------------------------- | 
|                        | (Registrant)                     | 
|                        |                                  | 
|                        |                                  | 
|Date:  November 7, 2001 | /s/ James S. Pennington          | 
|                        | James S. Pennington, Manager     | 
|                        |                                  | 
|                        |                                  | 
|                        | /s/ Stephen C. May               | 
|                        | Stephen C. May, Treasurer        | 
|                        |                                  | 
|                        |                                  | 
|                        |                                  | 

9

---