Document:

exv4wxby

 

Exhibit 4(b)

 

PPL ELECTRIC UTILITIES CORPORATION

TO

THE BANK OF NEW YORK

(as successor to JPMorgan Chase Bank, N.A.

(formerly known as The Chase Manhattan Bank)),

Trustee

 

Supplemental Indenture No. 7

Dated as of August 1, 2007

 

Supplemental to the Indenture

dated as of August 1, 2001

 

Establishing Terms of

Senior Secured Bonds, 6.45% Series due 2037

 

 

 

Supplemental Indenture No. 7

     SUPPLEMENTAL INDENTURE No. 7, dated as of the 1st day of August, 2007 made and
entered into by and between PPL ELECTRIC UTILITIES CORPORATION, a corporation of the
Commonwealth of Pennsylvania, having its principal corporate offices at Two North Ninth
Street, Allentown, Pennsylvania 18101 (hereinafter sometimes called the “Company”), and THE
BANK OF NEW YORK (as successor to JPMorgan Chase Bank, N.A.), a New York banking
corporation, having its corporate trust office at 101 Barclay Street, 4th Floor, New York,
New York 10286 (hereinafter sometimes called the “Trustee”), as Trustee under the
Indenture, dated as of August 1, 2001 (hereinafter called the “Original Indenture”), this
Supplemental Indenture No. 7 being supplemental thereto. The Original Indenture and any and
all indentures and instruments supplemental thereto are hereinafter sometimes collectively
called the “Indenture.”

RECITALS OF THE COMPANY

     The Original Indenture was authorized, executed and delivered by the Company to provide
for the issuance from time to time of its Securities (such term and all other capitalized
terms used herein without definition having the meanings assigned to them in the Original
Indenture), to be issued in one or more series as contemplated therein, and to provide
security for the payment of the principal of and premium, if any, and interest, if any, on
such Securities.

     The Company has heretofore executed and delivered to the Trustee Supplemental
Indentures for the purposes recited therein and for the purpose of creating series of
securities as set forth in Schedule A hereto.

     Pursuant to Article Three of the Original Indenture, the Company wishes to establish a
ninth series of Securities, such series of Securities to be hereinafter sometimes called
“Securities of the Ninth Series.”

     As contemplated in Section 301 of the Original Indenture, the Company further wishes to
establish the designation and certain terms of the Securities of the Ninth Series. The
Company has duly authorized the execution and delivery of this Supplemental Indenture No. 7
to establish the designation and certain terms of the Securities of the Ninth Series and has
duly authorized the issuance of such Securities; and all acts necessary to make this
Supplemental Indenture No. 7 a valid agreement of the Company, and to make the Securities of
the Ninth Series valid obligations of the Company, have been performed.

     NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE NO. 7 WITNESSETH, that, for and in
consideration of the premises and of the purchase of the Securities by the Holders thereof,
it is mutually covenanted and agreed, for the equal and proportionate benefit of the Holders
of the Securities of the Ninth Series, as follows:

ARTICLE ONE.

Ninth Series Of Securities

     SECTION 101. There is hereby created a series of Securities designated “Senior Secured Bonds,
6.45% Series due 2037,” and the Securities of such series shall have the terms provided therefor in
this Article One of this Supplemental Indenture No. 7, shall be limited in aggregate principal
amount (except as contemplated in Section 301(b) of the Original Indenture) to $250,000,000, and
shall have such terms as are hereby established for such Securities of the Ninth Series as
contemplated in Section 301 of the Original Indenture. The form or forms and additional terms of
the Securities of the Ninth Series shall be established in an Officer’s Certificate of the Company,
as contemplated by Section 201 of the Original Indenture.

     SECTION 102. Covenants.

 

 

     So long as any Securities of the Ninth Series shall remain Outstanding, each of the
following shall be an additional covenant of the Company under the Indenture:

          (a) After the date of the first authentication of Securities of the Ninth Series, the Company
shall not issue additional Class A Bonds under the PPL 1945 Mortgage except for Class A Bonds (i)
to replace mutilated, destroyed, lost or stolen Class A Bonds of the same series or to effect
transfers, exchanges, or partial redemptions, payments or retirements of Class A Bonds; (ii) to be
delivered to the Trustee under the Indenture; or (iii) to refund or refinance outstanding Class A
Bonds.

          (b) The Securities of the Ninth Series shall have the benefit of the covenant of the Company
contained in Section 707 of the Indenture.

          (c) The Company shall notify the Holders of the Securities of the Ninth Series of the
discharge of the Lien of the Indenture pursuant to Section 1811 of the Original Indenture promptly
after the recording of the instruments of discharge executed by the Trustee.

     SECTION 103. Release of Mortgaged Property. So long as any Securities of the Ninth Series
shall remain Outstanding, any Officer’s Certificate delivered pursuant to Section 1803(b) of the
Original Indenture shall also state that (except in any case where a Governmental Authority has
lawfully ordered the Company to divest itself of such property) such release is, in the judgment of
the signers, desirable in the conduct of the business of the Company.

     SECTION 104. Satisfaction and Discharge. The Company hereby agrees that, if the Company
shall make any deposit of money and/or Eligible Obligations with respect to any Securities of the
Ninth Series, or any portion of the principal amount thereof, as contemplated by Section 801 of the
Indenture, the Company shall not deliver an Officer’s Certificate described in clause (z) in the
first paragraph of said Section 801 unless the Company shall also deliver to the Trustee, together
with such Officer’s Certificate, either:

          (a) an instrument wherein the Company, notwithstanding the satisfaction and discharge of its
indebtedness in respect of such Securities, shall retain the obligation (which shall be absolute
and unconditional) to irrevocably deposit with the Trustee or Paying Agent such additional sums of
money, if any, or additional Eligible Obligations (meeting the requirements of Section 801), if
any, or any combination thereof, at such time or times, as shall be necessary, together with the
money and/or Eligible Obligations theretofore so deposited, to pay when due the principal of and
premium, if any, and interest due and to become due on such Securities or portions thereof, all in
accordance with and subject to the provisions of said Section 801; provided, however, that such
instrument may state that the obligation of the Company to make additional deposits as aforesaid
shall be subject to the delivery to the Company by the Trustee of a notice asserting the deficiency
accompanied by an opinion of an independent public accountant of nationally recognized standing,
selected by the Trustee, showing the calculation thereof (which opinion shall be obtained at the
expense of the Company); or

          (b) an Opinion of Counsel to the effect that the Holders of such Securities, or portions of
the principal and amount thereof, will not recognize income, gain or loss for United States federal
income tax purposes as a result of the satisfaction and discharge of the Company’s indebtedness in
respect thereof and will be subject to United States federal income tax on the same amounts, at the
same times and in the same manner as if such satisfaction and discharge had not been effected.

     SECTION 105. Trustee to Hold Class A Bonds In New York. So long as any Securities of the
Ninth Series remain Outstanding, the Trustee shall hold in the State of New York all Class A Bonds
delivered to and to be held by it pursuant to Sections 1602 and 1701 of the Indenture; provided
that the Trustee may hold such Class A Bonds in another jurisdiction if it receives an Opinion of
Counsel to the effect that the perfection and priority of the security interest, if any, created by
the last sentence of such Section 1701 will continue in such other jurisdiction and notifies the
Company of such change in jurisdiction.

2

 

ARTICLE TWO.

Miscellaneous Provisions

     SECTION 201. This Supplemental Indenture No. 7 is a supplement to the Original Indenture. As
supplemented by this Supplemental Indenture No 7, the Indenture is in all respects ratified,
approved and confirmed, and the Original Indenture and this Supplemental Indenture No. 7 shall
together constitute the Indenture.

     SECTION 202. The recitals contained in this Supplemental Indenture No. 7 shall be taken as
the statements of the Company, and the Trustee assumes no responsibility for their correctness and
makes no representations as to the validity or sufficiency of this Supplemental Indenture No. 7.

     This instrument may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

3

 

     IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture No. 7 to
be duly executed as of the day and year first written above.

	 	 	 	 	 
	 	PPL ELECTRIC UTILITIES CORPORATION

 	 
	 	By:  	/s/  James E. Abel
 	 
	 	 	Name:  	James E. Abel 	 
	 	 	Title:  	Treasurer 	 
	 

4

 

	 	 	 	 	 
	 	THE BANK OF NEW YORK, as Trustee

 	 
	 	By:  	/s/ John Rochanakit
 	 
	 	 	Name:  	John Rochanakit 	 
	 	 	Title:  	Assistant Treasurer 	 
	 

5

 

	 	 	 	 	 	 	 
	COMMONWEALTH OF PENNSYLVANIA             

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF LEHIGH

	 	 	)	 	 	 

     On this 13th day of August, 2007, before me, a notary public, the undersigned,
personally appeared James E. Abel, who acknowledged himself to be the Treasurer of PPL
ELECTRIC UTILITIES CORPORATION, a corporation of the Commonwealth of Pennsylvania and that
he, as such Treasurer, being authorized to do so, executed the foregoing instrument for the
purposes therein contained, by signing the name of the corporation by himself as Treasurer.

     In witness whereof, I hereunto set my hand and official seal.

	 	 	 	 	 
	 

	 	/s/ Diane M. Koch
	 	 
	 

	 	 	 	 
	 

	 	Notary Public	 	 

6

 

	 	 	 	 	 	 	 
	STATE OF NEW YORK

	 	 	)	 	 	 
	 

	 	 	)	 	 	ss.:
	COUNTY OF NEW YORK

	 	 	)	 	 	 

     On this 10th day of August, 2007, before me, a notary public, the undersigned,
personally appeared John Rochanakit, who acknowledged himself to be Assistant Treasurer of
THE BANK OF NEW YORK, a corporation and that he, as Assistant Treasure, being authorized to
do so, executed the foregoing instrument for the purposes therein contained, by signing the
name of the corporation by himself as Assistant Treasurer.

     In witness whereof, I hereunto set my hand and official seal.

	 	 	 	 	 	 	 
	 

	 	By:
	 	/s/ N. Oni Perinchief
	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Notary Public	 	 

     The Bank of New York hereby certifies that its precise name and address as Trustee hereunder
are:

The Bank of New York

Global Structured Finance

101 Barclay Street, 4th Floor

New York, New York 10286

Attn: Global Americas

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ John Rochanakit	 	 
	 

	 	 	 	 	 	 

7

 

SCHEDULE A

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	Principal	 	Principal	 	Principal
	Supplemental	 	 	 	 	 	 	 	Amount	 	Amount	 	Amount
	Indenture No.	 	Dated as of	 	Series	 	Series Designation	 	Authorized	 	Issued	 	Outstanding1
	1
	 	August 1, 2001	 	First	 	Senior Secured Bonds,	 	$	300,000,000	 	 	$	300,000,000	 	 	$	254,866,000	 
	 
	 	 	 	 	 	5 7/8% Series due 2007	 	 	 	 	 	 	 	 	 	 	 	 
	1
	 	August 1, 2001	 	Second	 	Senior Secured bonds,	 	$	500,000,000	 	 	$	500,000,000	 	 	$	485,785,000	 
	 
	 	 	 	 	 	6 1/4% Series due 2009	 	 	 	 	 	 	 	 	 	 	 	 
	2
	 	February 1, 2003	 	Third	 	Senior Secured Bonds, 3.125%	 	$	90,000,000	 	 	$	90,000,000	 	 	$	90,000,000	 
	 
	 	 	 	 	 	Pollution Control Series due 2008	 	 	 	 	 	 	 	 	 	 	 	 
	3
	 	May 1, 2003	 	Fourth	 	Senior Secured Bonds, 4.30%	 	$	100,000,000	 	 	$	100,000,000	 	 	$	100,000,000	 
	 
	 	 	 	 	 	Series due 2013	 	 	 	 	 	 	 	 	 	 	 	 
	4
	 	February 1, 2005	 	Fifth	 	Senior Secured Bonds, 4.70%	 	$	115,500,000	 	 	$	115,500,000	 	 	$	115,500,000	 
	 
	 	 	 	 	 	Pollution Control Series due 2029	 	 	 	 	 	 	 	 	 	 	 	 
	5
	 	May 1, 2005	 	Sixth	 	Senior Secured Bonds, 4.75%	 	$	108,250,000	 	 	$	108,250,000	 	 	$	108,250,000	 
	 
	 	 	 	 	 	Pollution Control Series due 2027	 	 	 	 	 	 	 	 	 	 	 	 
	6
	 	December 1, 2005	 	Seventh	 	Senior Secured Bonds, 4.95%	 	$	100,000,000	 	 	$	100,000,000	 	 	$	100,000,000	 
	 
	 	 	 	 	 	Series due 2015	 	 	 	 	 	 	 	 	 	 	 	 
	6
	 	December 1, 2005	 	Ninth	 	Senior Secured Bonds, 5.15%	 	$	100,000,000	 	 	$	100,000,000	 	 	$	100,000,000	 
	 
	 	 	 	 	 	Series due 2020	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	1	 	As of August 1, 2007.

8exv4wxcy

 

Exhibit 4(c)

PPL ELECTRIC UTILITIES CORPORATION

OFFICER’S CERTIFICATE

(under Sections 201 and 301 of the Indenture dated as of August 1, 2001)

Establishing the Form and Certain Terms of the

Senior Secured Bonds, 6.45% Series due 2037

     The undersigned, James E. Abel, Treasurer of PPL Electric Utilities Corporation (the
“Company”), pursuant to Supplemental Indenture No. 7, dated as of August 1, 2007 (“Supplemental
Indenture No. 7) (all capitalized terms used herein which are not defined herein but are defined in
the Indenture referred to below, shall have the meanings specified in the Indenture, as
supplemented by Supplemental Indenture No. 7), and Sections 201 and 301 of the Indenture of the
Company dated as of August 1, 2001 (as heretofore supplemented, the “Indenture”) to The Bank of New
York (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)), as
trustee (the “Trustee”), does hereby establish for the series of Securities established in
Supplemental Indenture No. 7 the following terms and characteristics (the lettered clauses set
forth herein corresponding to such clauses in said Section 301):

	 	a)	 	the title of the Securities of such series shall be “Senior Secured Bonds, 6.45% Series
due 2037” (the “Bonds”);
	 
	 	b)	 	the aggregate principal amount of Bonds which may be authenticated and delivered under
the Indenture shall be limited to $250,000,000, except as contemplated in Section 301(b)
and the last paragraph of Section 301 of the Indenture;
	 
	 	c)	 	interest on the Bonds shall be payable to the Person or Persons in whose names the
Bonds are registered at the close of business on the Regular Record Date for such interest,
except as otherwise expressly provided in the form of Bond attached hereto and hereby
authorized and approved;
	 
	 	d)	 	the principal shall be due and payable on August 15, 2037; and the Company shall not
have the right to extend the Maturity of the Bonds as contemplated in Section 301(d) of the
Indenture;
	 
	 	e)	 	as provided in the form of Bond attached as Exhibit A hereto, the Bonds shall bear
interest at a fixed rate of 6.45% per annum; the Interest Payment Dates for the Bonds shall
be February 15 and August 15 of each year, commencing February 15, 2008; the Regular Record
Date for the interest payable on any Interest Payment Date with respect to the Bonds shall
be the close of business on the January 31 or July 31 (whether or not a Business Day)
immediately preceding such Interest Payment Date; and the Company shall not have any right
to extend any interest payment periods for the Bonds as contemplated in Sections 301(e) and
312 of the Indenture;
	 
	 	f)	 	the Corporate Trust Office of the Trustee in New York, New York shall be the office or
agency of the Company at which the principal of and any premium and interest on the Bonds
at Maturity shall be payable, at which registration of transfers and exchanges of the Bonds
may be effected and at which notices and demands to or upon the Company in respect of the
Bonds and the Indenture may be served; and the Trustee will initially be the Security
Registrar and the Paying Agent for the Bonds; provided, however, that the Company reserves
the right to change, by one 

 

 

	 	 	 	or more Officer’s Certificates, any such office or agency and
such agent; each installment of interest on a Bond shall be payable as provided in Exhibit
A hereto;

	 	g)	 	the Bonds shall be redeemable, in whole or in part, at the option of the Company as and
to the extent provided in Exhibit A hereto;
	 
	 	h)	 	inapplicable;
	 
	 	i)	 	the Bonds shall be issued in denominations of $1,000 and any integral multiple of
$1,000 in excess thereof;
	 
	 	j)	 	inapplicable;
	 
	 	k)	 	inapplicable;
	 
	 	l)	 	inapplicable;
	 
	 	m)	 	inapplicable;
	 
	 	n)	 	inapplicable;
	 
	 	o)	 	reference is hereby made to the provisions of Supplemental Indenture No. 7 for certain
covenants of the Company for the benefit of the Holders of the Bonds, in addition to those
set forth in Article Seven of the Indenture;
	 
	 	p)	 	inapplicable;
	 
	 	q)	 	the only obligations or instruments that shall be considered Eligible Obligations in
respect of the Bonds shall be Government Obligations; and the provisions of Section 801 of
the Indenture as supplemented by Section 104 of Supplemental Indenture No. 7 shall apply to
the Bonds;
	 
	 	r)	 	the Bonds shall be initially issued in global form and the depository for the global
Bonds shall initially be The Depository Trust Company (“DTC”); provided, that the Company
reserves the right to provide for another depository, registered as a clearing agency under
the Exchange Act, to act as depository for the global Bonds (DTC and any such successor
depository, the “Depository”); beneficial interests in Bonds issued in global form may not
be exchanged in whole or in part for individual certificated Bonds in definitive form, and
no transfer of a global Bond in whole or in part may be registered in the name of any
Person other than the Depository or its nominee except that (i) if the Depository (A) has
notified the Company that it is unwilling or unable to continue as depository for the
global Bonds or (B) has ceased to be a clearing agency registered under the Exchange Act
and, in either case, a successor depository for such global bonds has not been appointed by
the Company within 90 days of such notice or cessation, the Company will execute, and the
Trustee, upon receipt of a Company Order for the authentication and delivery of definitive
Bonds, will authenticate and deliver Bonds in definitive certificated form in an aggregate
principal amount equal to the principal amount of the global Bonds representing such Bonds
in exchange for such global Bond, such definitive Bonds to be registered in the names
provided by the Depository; each global Bond (i) shall represent and shall be denominated
in an amount equal to the aggregate principal amount of the outstanding Bonds to be
represented by such global Bond, (ii) shall be registered in the name of the Depository or
its nominee, (iii) shall be delivered by the Trustee to the Depository, its nominee, any
custodian for the Depository or otherwise pursuant to the Depository’s instruction and (iv)
shall bear a legend 

-2-

 

	 	 	 	restricting the transfer of such global Bond to any person other than
the Depository or its nominee; none of the Company, the Trustee, any Paying Agent or any
Authenticating Agent will have any responsibility or liability for any aspect of the
records relating to, or payments made on
account of, beneficial ownership interests in a global Bond or for maintaining, supervising
or reviewing any records relating to such beneficial ownership interests; the Bonds in
global form will contain restrictions on transfer, substantially as described in the form
set forth in Exhibit A hereto;

	 	s)	 	inapplicable;
	 
	 	t)	 	reference is made to clause (r) above; no service charge shall be made for the
registration of transfer or exchange of the Bonds; provided, however, that the Company may
require payment of a sum sufficient to cover any tax or other governmental charge that may
be imposed in connection with the exchange or transfer;
	 
	 	u)	 	inapplicable;
	 
	 	v)	 	the Bonds are Benefitted Securities under Section 707 of the Indenture; and
	 
	 	w)	 	except as otherwise determined by the proper officers of the Company and communicated
to the Trustee in a Company Order or as established in one or more Officer’s Certificates
supplemental to this Officer’s Certificate, the Bonds shall be substantially in the form of
Bond attached hereto, which form is hereby authorized and approved, and shall have such
further terms as are set forth in such form.

-3-

 

     IN WITNESS WHEREOF, I have executed this Officer’s Certificate this 13th day of August, 2007
in New York, New York.

	 	 	 	 	 
	 	 	 
	 	                          /s/ James E. Abel
 	 
	 	Name:  	James E. Abel 	 
	 	Title:  	Treasurer 	 
	 

-4-

 

Exhibit A

[FORM OF BOND]

Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation (“DTC”), to PPL Electric Utilities
Corporation or its agent for registration of transfer, exchange or payment, and any
certificate to be issued is registered in the name of Cede & Co. or in such other
name as is requested by an authorized representative of DTC (and any payment is made
to Cede & Co. or to such other entity as is requested by an authorized
representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR
OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof,
Cede & Co., has an interest herein.

			
	No.                    
	 	CUSIP No.                     

PPL ELECTRIC UTILITIES CORPORATION

SENIOR SECURED BOND, 6.45% SERIES DUE 2037

     PPL ELECTRIC UTILITIES CORPORATION, a corporation duly organized and existing under the laws
of the Commonwealth of Pennsylvania (herein referred to as the “Company”, which term includes any
successor Person under the Indenture referred to below), for value received, hereby promises to pay
to                                                              or to its registered assigns, the principal sum of TWO HUNDRED FIFTY
MILLION ($250,000,000) Dollars on August 15, 2037 (the “Stated Maturity Date”), and to pay interest
on said principal sum semi-annually in arrears on February 15 and August 15 of each year commencing
February 15, 2008 (each an “Interest Payment Date”) at the rate of 6.45% per annum until the
principal hereof is paid or made available for payment. Interest on the Securities of this series
will accrue from and including August 13, 2007, to and excluding the first Interest Payment Date,
and thereafter will accrue from and including the last Interest Payment Date to which interest has
been paid or duly provided for. No interest will accrue on the Securities with respect to the day
on which the Securities mature.

     In the event that any Interest Payment Date is not a Business Day, then payment of interest
payable on such date will be made on the next succeeding day which is a Business Day (and without
any interest or other payment in respect of such delay) with the same force and effect as if made
on the Interest Payment Date. The interest so payable, and punctually paid or duly provided for, on
any Interest Payment Date will, as provided in such Indenture, be paid to the Person in whose name
this Security (or one or more Predecessor Securities) is registered at the close of business on the
January 31 or July 31, whether or not a Business Day, (each such date a “Regular Record Date”)
immediately preceding such Interest Payment Date, except that interest payable at Maturity will be
payable to the Person to whom principal shall be paid. Any such interest not so punctually paid or
duly provided for will forthwith cease to be payable to the Holder on such Regular Record Date and
may either be paid to the Person in whose name this Security (or one or more Predecessor
Securities) is registered at the close of business on a Special Record Date for the payment of such
Defaulted Interest to be fixed by the Trustee, notice whereof shall be given to Holders of
Securities of this series not less than 10 days prior to such Special Record Date, or be paid at
any time in any other lawful manner not inconsistent with the requirements of any securities
exchange on which the Securities of this series may be listed, and upon such notice as may be

 

 

required by such exchange, all as more fully provided in the Indenture referred to herein.
Interest on this Security will be computed on the basis of a 360-day year of twelve 30-day months,
and with respect to any period less than a full calendar month, on the basis of the actual number
of days elapsed during the period.

          Payment of the principal of and premium, if any, and interest at Maturity on this Security
shall be made upon presentation of this Security at the corporate trust office of The Bank of New
York in New York, New York, or at such other office or agency as may be designated for such purpose
by the Company from time to time, in such coin or currency of the United States of America as at
the time of payment is legal tender for payment of public and private debts, and payment of
interest, if any, on this Security (other than interest payable at Maturity) shall be made by check
mailed to the address of the Person entitled thereto as such address shall appear in the Security
Register, provided that if such Person is a securities depositary, such payment may be made by such
other means in lieu of check as shall be agreed upon by the Company, the Trustee and such Person.

          This Security is one of a duly authorized issue of securities of the Company (herein called
the “Securities”), issued and issuable in one or more series under an Indenture dated as of August
1, 2001 (herein, together with any amendments or supplements thereto, called the “Indenture,” which
term shall have the meaning assigned to it in such instrument), between the Company and The Bank of
New York (as successor to JPMorgan Chase Bank, N.A. (formerly known as The Chase Manhattan Bank)),
as Trustee (herein called the “Trustee,” which term includes any successor trustee under the
Indenture), and reference is hereby made to the Indenture, including Supplemental Indenture No. 7
thereto, for a statement of the property mortgaged, pledged and held in trust, the nature and
extent of the security, the conditions upon which the Lien of the Indenture may be released and the
respective rights, limitations of rights, duties and immunities thereunder of the Company, the
Trustee and the Holders of the Securities and of the terms upon which the Securities are, and are
to be, authenticated and delivered. The acceptance of this Security shall be deemed to constitute
the consent and agreement by the Holder thereof to all of the terms and provisions of the
Indenture. This Security is one of the series designated on the face hereof.

          This Security is subject to redemption at the election of the Company, in whole at any time or
in part from time to time, at a redemption price equal to the greater of:

	 	(a)	 	100% of the principal amount of this Security to be so redeemed; or
	 
	 	(b)	 	as determined by the Quotation Agent, the sum of the present
values of the remaining scheduled payments of principal and interest on the
principal amount of this Security to be so redeemed (not including any portion
of such payments of interest accrued to the date of redemption) discounted to
the redemption date on a semi-annual basis at the Adjusted Treasury Rate, plus
25 basis points,

          plus, in either of the above cases, accrued and unpaid interest to the date of redemption.
The redemption price will be calculated assuming a 360-day year consisting of twelve 30-day months.

     “Adjusted Treasury Rate” means, with respect to any redemption date:

	 	(a)	 	the rate per annum equal to the semi-annual equivalent yield to
maturity of the Comparable Treasury Issue, assuming a price for the Comparable
Treasury Issue (expressed as a percentage of its principal amount) equal to the
Comparable Treasury Price for that redemption date.

A-2 

 

     “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having an actual or interpolated maturity comparable to the remaining term to
the Stated Maturity Date of this Security to be redeemed that would be utilized, at the time of
selection and in accordance with customary financial practice, in pricing new issues of corporate
debt securities of comparable maturity to the remaining term of this Security.

     “Comparable Treasury Price” means, with respect to any redemption date:

	 	a)	 	the average of five Reference Treasury Dealer Quotations for that
redemption date, after excluding the highest and lowest Reference Treasury Dealer
Quotations, or
	 
	 	b)	 	if the Quotation Agent obtains fewer than five Reference Treasury
Dealer Quotations, the average of all Reference Treasury Dealer Quotations so
received.

     “Quotation Agent” means one of the Reference Treasury Dealers appointed by the Company.

     “Reference Treasury Dealer” means:

	 	(a)	 	each of BNP Paribas Securities Corp., Credit Suisse Securities
(USA) LLC and Scotia Capital (USA) Inc., and their respective successors,
unless any of them ceases to be a primary U.S. Government securities dealer in
New York City (a “Primary Treasury Dealer”), in which case the Company shall
substitute another Primary Treasury Dealer; and
	 
	 	(b)	 	any two other Primary Treasury Dealers selected by the Company.

     “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any redemption date, the average, as determined by the Quotation Agent, of the bid and asked
prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal
amount), as provided to the Quotation Agent by that Reference Treasury Dealer at 5:00 p.m., New
York City time, on the third Business Day preceding such redemption date. Promptly after the
calculation thereof, the Company shall give the Trustee written notice of the redemption price for
the foregoing redemption. The Trustee shall have no responsibility for any such calculation.

          Notice of redemption (other than at the option of the Holder) shall be given by mail to
Holders of Securities, not less than 30 days nor more than 60 days prior to the date fixed for
redemption, all as provided in the Indenture. As provided in the Indenture, notice of redemption
at the election of the Company as aforesaid may state that such redemption shall be conditional
upon the receipt by the applicable Paying Agent or Agents of money sufficient to pay the principal
of and premium, if any, and interest, on this Security on or prior to the date fixed for such
redemption; a notice of redemption so conditioned shall be of no force or effect if such money is
not so received and, in such event, the Company shall not be required to redeem this Security.
Notwithstanding Section 504 of the Indenture, any such notice of redemption need not set forth the
redemption price but only the manner of calculation thereof.

          In the event of redemption of this Security in part only, a new Security or Securities of this
series of like tenor representing the unredeemed portion hereof shall be issued in the name of the
Holder hereof upon the cancellation hereof.

A-3 

 

          If an Event of Default with respect to the Securities of this series shall occur and be
continuing, the principal of this Security may be declared due and payable in the manner and with
the effect provided in the Indenture.

          The Indenture contains provisions for defeasance at any time of the entire indebtedness of
this Security upon compliance with certain conditions set forth in the Indenture.

          The Indenture contains provisions for release of the Lien thereof upon compliance with certain
conditions set forth therein.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the Holders of the
Securities of each series to be affected under the Indenture at any time by the Company and the
Trustee with the consent of the Holders of a majority in principal amount of the Securities at the
time Outstanding of all series to be affected. The Indenture also contains provisions permitting
the Holders of specified percentages in principal amount of the Securities of all series affected
at the time Outstanding, on behalf of the Holders of all Securities of such series, to waive
compliance by the Company with certain provisions of the Indenture and certain past defaults under
the Indenture and their consequences. Any such consent or waiver by the Holder of this Security
shall be conclusive and binding upon such Holder and upon all future Holders of this Security and
of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this Security.

          As provided in and subject to the provisions of the Indenture, the Holder of this Security
shall not have the right to institute any proceeding with respect to the Indenture or for the
appointment of a receiver or trustee or for any other remedy thereunder, unless such Holder shall
have previously given the Trustee written notice of a continuing Event of Default, the Holders of
25% in aggregate principal amount of the Outstanding Securities shall have made written request to
the Trustee to institute proceedings in respect of such Event of Default as Trustee and offered the
Trustee reasonable indemnity, and the Trustee shall not have received from the Holders of a
majority in aggregate principal amount of the Outstanding Securities a direction inconsistent with
such request, and shall have failed to institute any such proceeding, for 60 days after receipt of
such notice, request and offer of indemnity. The foregoing shall not apply to any suit instituted
by the Holder of this Security for the enforcement of any payment of principal hereof or any
premium or interest hereon on or after the respective due dates expressed herein.

          No reference herein to the Indenture and no provision of this Security or of the Indenture
shall alter or impair the obligation of the Company, which is absolute and unconditional, to pay
the principal of and any premium and interest on this Security at the times, place and rate, and in
the coin or currency, herein prescribed.

          The Securities of this series are issuable only in registered form without coupons, and in
denominations of $1,000 and integral multiples thereof. As provided in the Indenture and subject
to certain limitations therein and herein set forth, Securities of this series are exchangeable for
a like aggregate principal amount of Securities of the same series and Tranche and of like tenor
and of authorized denominations, as requested by the Holder surrendering the same.

          No service charge shall be made for any such registration of transfer or exchange, but the
Company may require payment of a sum sufficient to cover any tax or other governmental charge
payable in connection therewith.

A-4 

 

          The Company shall not be required to execute and the Security Registrar shall not be required
to register the transfer of or exchange of (a) Securities of this series during a period of 15 days
immediately preceding the date notice is given identifying the serial numbers of the Securities of
this series called for redemption or (b) any Security so selected for redemption in whole or in
part, except the unredeemed portion of any Security being redeemed in part.

          Prior to due presentment of this Security for registration of transfer, the Company, the
Trustee and any agent of the Company or the Trustee may treat the Person in whose name this
Security is registered as the absolute owner hereof for all purposes (subject to Sections 305 and
307 of the Indenture), whether or not this Security be overdue, and neither the Company, the
Trustee nor any such agent shall be affected by notice to the contrary.

          The Indenture and this Security shall be governed by and construed in accordance with the laws
of the State of New York (including, without limitation, Section 5-1401 of the New York General
Obligations Law or any successor to such statute), except to the extent that the Trust Indenture
Act shall be applicable and except to the extent that the law of the any other jurisdiction shall
mandatorily govern.

          As used herein, “Business Day,” means any day, other than a Saturday or Sunday, that is not a
day on which banking institutions or trust companies in The City of New York, New York, or other
city in which a paying agent for such Security is located, are authorized or required by law,
regulation or executive order to remain closed. All other terms used in this Security that are
defined in the Indenture shall have the meanings assigned to them in the Indenture.

          As provided in the Indenture, no recourse shall be had for the payment of the principal of or
premium, if any, or interest on any Securities, or any part thereof, or for any claim based thereon
or otherwise in respect thereof, or of the indebtedness represented thereby, or upon any
obligation, covenant or agreement under the Indenture, against, and no personal liability
whatsoever shall attach to, or be incurred by, any incorporator, stockholder, member, officer or
director, as such, past, present or future of the Company or of any predecessor or successor
corporation (either directly or through the Company or a predecessor or successor corporation),
whether by virtue of any constitutional provision, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise; it being expressly agreed and understood that the Indenture
and all the Securities are solely corporate obligations and that any such personal liability is
hereby expressly waived and released as a condition of, and as part of the consideration for, the
execution of the Indenture and the issuance of the Securities.

A-5 

 

          Unless the certificate of authentication hereon has been executed by the Trustee referred to
herein by manual signature, this Security shall not be entitled to any benefit under the Indenture
or be valid or obligatory for any purpose.

          IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed in New York,
New York.

	 	 	 	 	 	 	 
	 	 	PPL ELECTRIC UTILITIES CORPORATION
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

[FORM OF CERTIFICATE OF AUTHENTICATION]

CERTIFICATE OF AUTHENTICATION

          This is one of the Securities of the series designated therein referred to in the
within-mentioned Indenture.

Dated:

	 	 	 	 	 	 	 
	 	 	THE BANK OF NEW YORK, as Trustee
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

A-6

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