<HTML>
<HEAD>
<TITLE>PPL Transition Bond 10-Q 6-01</TITLE>
</HEAD>
<BODY LINK="#0000ff" VLINK="#800080">

<B><FONT FACE="Arial" SIZE=4><P ALIGN="CENTER">UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION<BR>
WASHINGTON, DC 20549</P>
</B></FONT><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">&nbsp;</P>
</FONT><B><FONT FACE="Arial" SIZE=5><P ALIGN="CENTER">FORM 10-Q</P>
</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN<BR>
GENERAL INSTRUCTIONS H(1) (a) AND (b) OF FORM 10-Q AND<BR>
IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT</P></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=834>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P><B><FONT FACE="Arial" SIZE=4>[X]</B></FONT></TD>
<TD WIDTH="94%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=4><P>QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES</B></FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<B><FONT SIZE=4><P>&nbsp;</B></FONT></TD>
<TD WIDTH="94%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=4><P>EXCHANGE ACT OF 1934</B></FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<B><FONT SIZE=4><P>&nbsp;</B></FONT></TD>
<TD WIDTH="94%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=4><P>For the quarterly period ended <U>&nbsp;June 30, 2001&nbsp;</B></U></FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT FACE="Arial" SIZE=4><P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">OR</P></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=834>
<TR><TD WIDTH="6%" VALIGN="TOP">
<P><B><FONT FACE="Arial" SIZE=4>[_]</B></FONT></TD>
<TD WIDTH="94%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=4><P>TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES</B></FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<B><FONT SIZE=4><P>&nbsp;</B></FONT></TD>
<TD WIDTH="94%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=4><P>EXCHANGE ACT OF 1934</B></FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP">
<B><FONT SIZE=4><P>&nbsp;</B></FONT></TD>
<TD WIDTH="94%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=4><P>For the transition period from ______________________ to _______________________</B></FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT FACE="Arial" SIZE=4><P ALIGN="CENTER">&nbsp;</P></B></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=619>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=17>
<P><FONT FACE="Arial">Commission File<BR>
<U>Number</U></FONT></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial"><P>Registrant; State of Incorporation;<BR>
<U>Address; and Telephone No.</U></FONT></TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial"><P>IRS Employer <BR>
<U>Identification No.</U></FONT></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="23%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial"><P ALIGN="JUSTIFY">333-75369</FONT></TD>
<TD WIDTH="51%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial"><P>PPL Transition Bond Company, LLC<BR>
</B>(Delaware)<B><BR>
</B>Two North Ninth Street, GENA92, Room 3<B><BR>
</B>Allentown, PA 18101-1179<B><BR>
</B>(610) 774-7934</FONT></TD>
<TD WIDTH="26%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial"><P ALIGN="JUSTIFY">23-3004428</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT FACE="Arial"><P ALIGN="JUSTIFY">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 [_]</P>
</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
</FONT><B><U><FONT FACE="Arial" SIZE=5><P ALIGN="CENTER">PPL TRANSITION BOND COMPANY, LLC</P>
</U><P>&nbsp;</P>
</B><P ALIGN="CENTER">FORM 10-Q<BR>
FOR THE QUARTER ENDED JUNE 30, 2001</P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=690>
<TR><TD VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<P ALIGN="CENTER"><U><FONT FACE="Arial" SIZE=2>INDEX</U></FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">PART I. FINANCIAL INFORMATION</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Page</U></FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="84%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Item 1. Financial Statements</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"><A HREF="#Statement of Operations">Statement of Operations and Changes in Member's Equity</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>1</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"><A HREF="#Cash Flows">Statement of Cash Flows</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>2</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"><A HREF="#Balance Sheet">Balance Sheet</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>3</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"><A HREF="#Notes">Notes to Financial Statements</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>4</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="84%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"><A HREF="#MD&A">Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>6</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="84%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"><A HREF="#Market Risk">Item 3. Quantitative and Qualitative Disclosures About Market Risk</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>7</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">PART II. OTHER INFORMATION</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="84%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"><A HREF="#Legal Proceedings">Item 1. Legal Proceedings</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>7</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="84%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"><A HREF="#Exhibits">Item 6. Exhibits and Reports on Form 8-K</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>7</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="92%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"><A HREF="#Glossary">GLOSSARY OF TERMS AND ABBREVIATIONS</FONT></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>8</FONT></TD>
</TR>
<TR><TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="18%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY"><A HREF="#Signatures">SIGNATURES</FONT></TD>
<TD WIDTH="74%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="8%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>9</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT FACE="Arial"><P ALIGN="JUSTIFY">&nbsp;</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=656>
<TR><TD VALIGN="TOP" COLSPAN=13>
<P><B><U><FONT FACE="Arial"><A NAME="Statement of Operations">PPL TRANSITION BOND COMPANY, LLC</B></U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13>
<B><U><FONT FACE="Arial"><P>Part 1. FINANCIAL INFORMATION</B></U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13>
<B><U><FONT FACE="Arial"><P>Item 1. Financial Statements</B></U></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13>
<P>&nbsp;</TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13>
<B><FONT FACE="Arial" SIZE=2><P>STATEMENT OF OPERATIONS AND CHANGES IN MEMBER'S EQUITY</B></FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="Arial" SIZE=1><P>(Unaudited)</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=4>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3>
<I><FONT FACE="Arial" SIZE=1><P>(Thousands of Dollars)</I></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=4>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=4>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=4>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Three Months</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=3>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Six Months</B></FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=4>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Ended June 30,</B></U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="26%" VALIGN="TOP" COLSPAN=3>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Ended June 30,</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2001</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2000</B></U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP" COLSPAN=2>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2001</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2000</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="46%" VALIGN="TOP" COLSPAN=3>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Revenues</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Intangible transition charge revenue&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 90,329&nbsp; </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 92,973&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$197,894&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$206,061&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Interest income&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">138&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">328&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">81&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="45%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Total revenue&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">90,467&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">92,977&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">198,222&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">206,142&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Expenses</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Amortization of intangible transition property&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">53,126&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">52,039&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">122,446&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">123,242&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Interest expense&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">36,772&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">40,467&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">74,607&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">81,902&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="54%" VALIGN="TOP" COLSPAN=2>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Administrative and general expenses&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">466&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">466&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">890&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">916&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="9%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="45%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="9%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="45%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Total expenses&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">90,364&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">92,972&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">197,943&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">206,060&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=25>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Operating Income</B>&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=25>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">103&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=25>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=25><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=25>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">279&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=25><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=25>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">82&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3>
<P>&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<P>&nbsp;</TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Income tax expense&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="12%" VALIGN="TOP">
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">42&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="11%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<P>&nbsp;</TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">115&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP">
<P>&nbsp;</TD>
<TD WIDTH="10%" VALIGN="TOP">
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">34&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=21>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Net Income</B>&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=21>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 61&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=21>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 3&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=21>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 164&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=21><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=21>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 48&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">=======</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">=======</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">=======</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">=======</B></FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=23>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Member's equity - beginning of period&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=23>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">12,433&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=23>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">12,350&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=23><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=23>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">12,330&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=23><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=23>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">12,305&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="BOTTOM" COLSPAN=3 HEIGHT=22>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Member's equity - end of period&#9;</FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>
<TD WIDTH="12%" VALIGN="BOTTOM" HEIGHT=22>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 12,494&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>
<TD WIDTH="11%" VALIGN="BOTTOM" HEIGHT=22>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 12,353&nbsp;</FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22><P></P></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" COLSPAN=2 HEIGHT=22>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$12,494&nbsp;</B></FONT></TD>
<TD WIDTH="1%" VALIGN="BOTTOM" HEIGHT=22><P></P></TD>
<TD WIDTH="10%" VALIGN="BOTTOM" HEIGHT=22>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 12,353&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="59%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="12%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">=======</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">=======</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" COLSPAN=2 HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">=======</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="10%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">=======</B></FONT></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=13>
<I><FONT FACE="Arial" SIZE=1><P ALIGN="CENTER">The accompanying Notes to Financial Statements are an integral part of the financial statements</I></FONT></TD>
</TR>
</TABLE>

<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">&nbsp;</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=634>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=24>
<P><B><U><FONT FACE="Arial"><A NAME="Cash Flows">PPL TRANSITION BOND COMPANY, LLC</B></U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=24><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=24><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=24><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=24><P></P></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=21>
<B><FONT FACE="Arial" SIZE=2><P>STATEMENT OF CASH FLOWS</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=21><P></P></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<FONT FACE="Arial" SIZE=1><P ALIGN="JUSTIFY">(Unaudited)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<I><FONT FACE="Arial" SIZE=1><P ALIGN="JUSTIFY">(Thousands of Dollars)</I></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="38%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Six Months Ended</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="38%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">June 30,</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2001</B></U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2000</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Cash Flows From Operating Activities</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Net Income&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 164&nbsp; </B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 48&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Adjustments to reconcile net income to net cash</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">provided by operating activities:</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Amortization of intangible transition property&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">122,446&nbsp;</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">123,242&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Amortization of debt issuance expenses&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,428&nbsp;</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,721&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Amortization of debt discount&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">27&nbsp;</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">35&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Changes in current assets and liabilities:</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" COLSPAN=2 HEIGHT=17><P></P></TD>
<TD WIDTH="52%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Intangible transition charges receivable from Servicer&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">14,173&nbsp;</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(6,739)</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" COLSPAN=2 HEIGHT=17><P></P></TD>
<TD WIDTH="52%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Payable to Servicer&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(1,056)</FONT></TD>
</TR>
<TR><TD WIDTH="6%" VALIGN="TOP" COLSPAN=2 HEIGHT=17><P></P></TD>
<TD WIDTH="52%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Other&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(167)</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,269&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Other operating activities - net&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,134&nbsp;</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">654&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="52%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="52%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Net cash provided by operating activities&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">140,205&nbsp;</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">119,174&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Cash Flows From Investing Activities</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Change in restricted funds&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(11,102)</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">663&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="52%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="52%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Net cash provided by (used in) investing activities&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(11,102)</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">663&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Cash Flows From Financing Activities</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Payment of principal on bonds&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(129,138)</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(122,327)</FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="52%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="7%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="52%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Net cash used in financing activities&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(129,138)</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(122,327)</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Net Decrease in Cash and Cash Equivalents</B>&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(35)</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(2,490)</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Cash and Cash Equivalents at Beginning of Period&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">793&nbsp;</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,830&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=8><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=8>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=8><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=8>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="58%" VALIGN="TOP" COLSPAN=4 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Cash and Cash Equivalents at End of Period&#9;</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 758&nbsp;</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 340&nbsp;</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=12><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">===========</B></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">===========</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" COLSPAN=3 HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="18%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=8 HEIGHT=16>
<I><FONT FACE="Arial" SIZE=1><P ALIGN="CENTER">The accompanying Notes to Financial Statements are an integral part of the financial statements.</I></FONT></TD>
</TR>
</TABLE>

<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P></B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=667>
<TR><TD WIDTH="65%" VALIGN="TOP" COLSPAN=4 HEIGHT=24>
<P><B><U><FONT FACE="Arial"><A NAME="Balance Sheet">PPL TRANSITION BOND COMPANY, LLC</B></U></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=24><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=24><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=24><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=24><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" COLSPAN=4 HEIGHT=21>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">BALANCE SHEET</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=21><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=21><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<FONT FACE="Arial" SIZE=1><P>(Unaudited)</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<I><FONT FACE="Arial" SIZE=1><P ALIGN="JUSTIFY">(Thousands of Dollars)</I></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">June 30,</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">December 31,</B></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2001</B></U></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2000</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" COLSPAN=4 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P>ASSETS</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Current Assets</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Cash and cash equivalents&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 758&nbsp; </B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 793&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Intangible transition charges receivable from Servicer&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">68,011&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">82,184&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Other current assets&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">41&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Current assets&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">68,777&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">83,018&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Noncurrent Assets</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Intangible transition property, net&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,951,867&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,075,996&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Unamortized debt issuance expenses&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">10,150&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">11,578&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Restricted funds&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">26,209&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">15,107&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Noncurrent assets&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,988,226&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,102,681&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Total assets&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 2,057,003</B></FONT><FONT FACE="Arial">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 2,185,699&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">===========</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">===========</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="65%" VALIGN="TOP" COLSPAN=4 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">LIABILITIES AND MEMBER'S EQUITY</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Current Liabilities</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Long-term debt&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 243,192&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 240,308&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Interest accrued &#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,950&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,064&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Taxes accrued - Member&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">77&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">53&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Other&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3,239&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3,349&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Current liabilities&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">248,458&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">245,774&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Noncurrent Liabilities</B></FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Long-term debt, net of discount&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,791,146&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,923,141&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="57%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>Other&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4,905&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4,454&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Noncurrent liabilities&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,796,051&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,927,595&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Commitments and Contingent Liabilities</B>&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="61%" VALIGN="TOP" COLSPAN=3 HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Member's Equity</B>&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">12,494&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">12,330&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=12>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">-------------------</B></FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P>Total liabilities and member's equity&#9;</FONT></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 2,057,003&nbsp;</B></FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ 2,185,699&nbsp; </FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">===========</FONT></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">===========</FONT></TD>
</TR>
<TR><TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="4%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="53%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="1%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=18><P></P></TD>
<TD WIDTH="16%" VALIGN="TOP" HEIGHT=18><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=8 HEIGHT=17>
<I><FONT FACE="Arial" SIZE=1><P ALIGN="CENTER">The accompanying Notes to Financial Statements are an integral part of the financial statements.</I></FONT></TD>
</TR>
</TABLE>

<B><FONT FACE="Arial" SIZE=4><P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">PPL Transition Bond Company, LLC</P>
<U><P ALIGN="CENTER"><A NAME="Notes">Notes to Financial Statements</P>
</B></U></FONT><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Terms and abbreviations appearing in Notes to Financial Statements are explained in the glossary.</P>
<OL>

</FONT><B><FONT FACE="Arial"><P ALIGN="JUSTIFY"><LI>Interim Financial Statements</LI></P>
</B></FONT><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Certain information in footnote disclosures, normally included in financial statements prepared in accordance with accounting standards generally accepted in the U.S., has been condensed or omitted in this Form 10-Q pursuant to the rules and regulations of the SEC. These financial statements should be read in conjunction with the financial statements and notes included in PPL Transition Bond Company, LLC's Annual Report to the SEC on Form 10-K for the year ended December 31, 2000.</P>
<B><P ALIGN="JUSTIFY"><LI>Nature of Operations</LI></P>
</B><P ALIGN="JUSTIFY">The financial statements include the accounts of PPL Transition Bond Company, LLC (the Company). The Company is a limited liability company established under the laws of the State of Delaware, and was formed on March 25, 1999 pursuant to a limited liability company agreement. PPL Electric Utilities is the sole member of the Company.</P>
<P ALIGN="JUSTIFY">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.</P>
<P ALIGN="JUSTIFY">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.</P>
<P ALIGN="JUSTIFY">The Company issued $2.42 billion of Bonds in eight different classes on August 10, 1999. See Note 4 for additional information.</P>
<B><P ALIGN="JUSTIFY"><LI>Summary of Significant Accounting Policies</LI></P>
<P ALIGN="JUSTIFY">Management's Estimates</P>
</B><P ALIGN="JUSTIFY">The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions will affect the reported amount of revenues, expenses, assets, and liabilities and disclosure of contingencies. Actual results could differ from these estimates.</P>
<B><P ALIGN="JUSTIFY">Cash and Cash Equivalents</P>
</B><P ALIGN="JUSTIFY">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.</P>
<B><P ALIGN="JUSTIFY">Restricted Funds</P>
</B><P ALIGN="JUSTIFY">Under the Indenture, the Company deposited an amount equal to 0.5% of the initial principal amount of the 1999-1 Bonds into the Capital Subaccount with the Trustee. This amount was contributed by PPL Electric Utilities to the Company. This account is the last account drawn in the event funds are insufficient to make scheduled allocations. If the Capital Subaccount is used, it will be replenished from ITC remittances to its original level through the periodic reconciliation process. The Indenture also provides for an Overcollateralization Subaccount. The funding level of this account is 0.5% of the initial principal amount of the Series 1999-1 Bonds, funded ratably over the life of the Bonds. Any excess amounts of ITC collections and investment earnings not released to the Company are deposited into a Reserve Subaccount. Accordingly, the Capital Subaccount, Overcollateralization Subaccount, and Reserve Subaccount are classified as "Restricted Funds" on the Balance Sheet.</P>
<B><P ALIGN="JUSTIFY">Amortization of Intangible Transition Property</P>
</B><P ALIGN="JUSTIFY">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.</P>
<B><P ALIGN="JUSTIFY">Amortization of Debt Issuance Costs and Discount on Debt</P>
</B><P ALIGN="JUSTIFY">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.</P>
<B><P ALIGN="JUSTIFY">Income Taxes</P>
</B><P ALIGN="JUSTIFY">The Company is a limited liability company and has elected to be disregarded as a separate entity for federal and state income tax purposes. The Company's taxable income or loss is included in the consolidated federal and state income tax returns of its member. The Statement of Operations and Changes in Member's Equity reflects the Company's pro rata allocation of its member's consolidated income taxes in accordance with its member's tax sharing policy.</P>
<B><P ALIGN="JUSTIFY"><LI>Long-Term Debt and Source of Repayment</LI></P>
</B><P ALIGN="JUSTIFY">In August 1999, the Company issued $2.42 billion of Series 1999-1 Bonds. The Bonds consist of eight classes. The Company used the proceeds from the Bonds to purchase ITP from CEP Securities. PPL Electric Utilities arranged for the formation of CEP Securities to provide flexibility to issue multiple tranches of transition bonds at different dates. The Bonds are collateralized by the ITP and other assets of the Company.</P>
<P ALIGN="JUSTIFY">Scheduled maturities and interest rates for the Bonds at June 30,&nbsp;2001 are:</P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=557>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Expected Final</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Final</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class</U></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Bond Rate</U></FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Amount</U></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Payment Date </U></FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Maturity Date </U></FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">($ Thousands)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">A-1</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">6.08%</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">0</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>March 25, 2001</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>March 25, 2003</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">A-2</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">6.41%</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">85,478</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>December 26, 2001</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>December 26, 2003</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">A-3</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">6.60%</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">303,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>March 25, 2003</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>March 25, 2005</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">A-4</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">6.72%</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">201,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>December 26, 2003</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>December 26, 2005</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">A-5</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">6.83%</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">313,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>March 25, 2005</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>March 25, 2007</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">A-6</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">6.96%</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">223,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>December 26, 2005</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>December 26, 2007</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">A-7</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">7.05%</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">455,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>June 25, 2007</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>June 25, 2009</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">A-8</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">7.15%</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">454,000</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>December 26, 2008</FONT></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P>June 25, 2009</FONT></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="14%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,034,478</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Current Maturities</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(243,192)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Unamort. Discount</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">(140)</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP" COLSPAN=2 HEIGHT=12><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=12>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=12><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=12><P></P></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Long-term Debt</FONT></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1,791,146</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="31%" VALIGN="TOP" COLSPAN=2 HEIGHT=15><P></P></TD>
<TD WIDTH="17%" VALIGN="TOP" HEIGHT=15>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">========</FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="25%" VALIGN="TOP" HEIGHT=15><P></P></TD>
<TD WIDTH="24%" VALIGN="TOP" HEIGHT=15><P></P></TD>
</TR>
</TABLE>
</CENTER></P>

<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">The carrying value of the long-term debt approximates fair market value as of June 30, 2001. The current maturities stated above are based on the expected final payment dates rather than the final maturity date.</P>
<P ALIGN="JUSTIFY">The source of repayment for the Bonds is the ITC. The Servicer collects this non-bypassable charge from PPL Electric Utilities' retail consumers of electricity. The Servicer deposits ITC monthly collections into a General Subaccount maintained by the Trustee under the Indenture. The monthly ITC collections from the billing periods of December 2000 through May 2001 were $213 million in aggregate. Each quarter, such monies are used to make principal and interest payments on the Bonds, and to pay fees, costs and charges specified in the Indenture. The Trustee made scheduled payments on March 26 and June 25, 2001. The Indenture also includes a Reserve Subaccount that is maintained for the purpose of retaining any excess amount of ITC collections and investment earnings not released to the Company. Approximately $9.3 million was deposited into the Reserve Subaccount on March 26, and an additional $893,000 on June 25, 2001. The Indenture also provides for an Overcollateralization Subaccount. The funding level of this account is 0.5% of the initial principal amount of the Series 1999-1 Bonds, funded ratably over the life of the Bonds. To meet the required Overcollateralization Subaccount levels, $327,000 was deposited on both March 26 and June 25, 2001. Additionally an amount equal to 0.5% of the initial principal amount of the Bonds has been deposited into the Capital Subaccount under the Indenture. If amounts available in the General, Reserve, and Overcollateralization Subaccounts are not sufficient on any payment date to make scheduled payments, the Trustee will draw on amounts in the Capital Subaccount in excess of $100,000. Any remaining amounts collateralizing the Bonds will be released to the Company upon final payment on the Bonds.</P>
<P>At June 30, 2001, the following balances were reflected in the Subaccounts maintained by the Trustee:</P></FONT>
<P ALIGN="CENTER"><CENTER><TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=236>
<TR><TD WIDTH="57%" VALIGN="TOP" HEIGHT=17>
<P ALIGN="CENTER"><U><FONT FACE="Arial" SIZE=2>Subaccounts</U></FONT></TD>
<TD WIDTH="43%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Balance</U></FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="43%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=1><P ALIGN="CENTER">($ Thousands)</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">General</FONT></TD>
<TD WIDTH="43%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0 </FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Reserve</FONT></TD>
<TD WIDTH="43%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">11,642</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Overcollateralization</FONT></TD>
<TD WIDTH="43%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2,337</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Capital</FONT></TD>
<TD WIDTH="43%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">12,230</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="43%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">------------------</FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Totals</FONT></TD>
<TD WIDTH="43%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$26,209 </FONT></TD>
</TR>
<TR><TD WIDTH="57%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="43%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">==========</FONT></TD>
</TR>
</TABLE>
</CENTER></P>

<B><FONT FACE="Arial"><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY"><LI>Significant Agreements and Related Party Transactions</LI></P>
</B><P ALIGN="JUSTIFY">Under the Servicing Agreement, PPL Electric Utilities, as Servicer, is required to manage and administer the ITP of the Company and to collect the ITC on behalf of the Company. The Company pays an annual servicing fee of $1.25 million to PPL Electric Utilities. For the three months ended June&nbsp;30, 2001, the Company expensed servicing fees of approximately $313,000 and other administrative fees of $25,000. For the six months ended June 30, 2001, the company expensed servicing fees of $625,000 and other administrative fees of $50,000.</P>
<P ALIGN="JUSTIFY">At June 30, 2001, the Balance Sheet includes a receivable from PPL Electric Utilities of approximately $68 million for billed and unbilled ITC revenues.</P>
<B><P ALIGN="JUSTIFY">&nbsp;</P>
<U><P ALIGN="CENTER">PPL Transition Bond Company, LLC</P>
</U><P>Item 2. <U><A NAME="MD&A">Management's Discussion and Analysis of Financial Condition and Results of Operations</P>
</U><P ALIGN="JUSTIFY">Forward-Looking Information</P>
</B><P ALIGN="JUSTIFY">Certain statements contained in this Form 10-Q concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Electric Utilities and PPL Transition Bond Company, LLC (the Company) believe that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that these expectations will prove to have been correct. These forward-looking statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the forward-looking statements. Any such forward-looking statements should be considered in conjunction with other documents of PPL Electric Utilities and the Company on file with the SEC.</P>
<P ALIGN="JUSTIFY">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.</P>
<B><P ALIGN="JUSTIFY">Background</P>
</B><P ALIGN="JUSTIFY">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.</P>
<P ALIGN="JUSTIFY">The following analysis of the financial condition and results of operations of the Company is in an abbreviated format pursuant to Instruction H of Form 10-Q. Such analysis should be read in conjunction with the Financial Statements and Notes to Financial Statements included in Item 1 above, and with the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report to the SEC on Form 10-K for the year ended December 31, 2000.</P>
<B><P ALIGN="JUSTIFY">Results of Operations</P>
</B><U><P ALIGN="JUSTIFY">Revenues</P>
</U><P ALIGN="JUSTIFY">Revenue generated from the ITP for the three months ended June 30, 2001 and 2000 were approximately $90 million and $93 million, respectively. Revenues generated from the ITP for the six months ended June 30, 2001 and 2000 were approximately $198 million and $206 million, respectively. </P>
<P ALIGN="JUSTIFY">During the three months ended June 30, 2001 and 2000, the Company earned approximately $138,000 and $4,000, respectively, in interest from the Capital Subaccount maintained by the Trustee and from temporary investments. During the six months ended June 30, 2001 and 2000, the Company earned approximately $328,000 and $81,000, respectively, in such interest. The additional interest income in 2001 reflects higher balances in the Capital Subaccount and temporary investments in 2001 compared with 2000.</P>
<U><P ALIGN="JUSTIFY">Expenses</P>
</U><P ALIGN="JUSTIFY">During the three months ended June 30, 2001 and 2000, the Company incurred interest expense of approximately $37 million and $40 million, respectively. During the six months ended June 30, 2001 and 2000, the Company incurred interest expense of approximately $75 million and $82 million, respectively. Interest expense includes interest on the bonds, and amortization of debt issuance expenses and discounts on the bonds. The decrease in interest expense was the result of the scheduled repayments on the bonds. </P>
<P ALIGN="JUSTIFY">For the three months ended June 30, 2001 and 2000, the Company incurred administrative and general expenses of approximately $466,000, including servicing fees of $313,000 and other administrative fees of $25,000 in each period. For the six months ended June 30, 2001 and 2000, the Company incurred administrative and general fees of approximately $890,000 and $916,000, respectively, including servicing fees of $625,000 and other administrative fees of $50,000 in each period.</P>
<B><P ALIGN="JUSTIFY">ITC Remittances and Debt Servicing</P>
</B><P ALIGN="JUSTIFY">The principal amount of the Bonds, interest, fees, and funding of the Overcollateralization Subaccount are being recovered through ITC payable by retail consumers of electricity within PPL Electric Utilities' service territory who receive its electric delivery service. As part of PPL Electric Utilities' responsibility as Servicer under the Servicing Agreement, PPL Electric Utilities remitted to the Trustee approximately $213 million of ITC collections for the billing periods of December 2000 to May 2001.</P>
<P ALIGN="JUSTIFY">All scheduled quarterly Bond principal payments, interest payments and all related expenses were made on March 26 and June 25, 2001. On March 26, 2001, scheduled principal payments of $37 million of the class A-1 Bonds were made and this series was retired. An additional $29 million in principal payments were made on the Class A-2 6.41% bonds. On June 25, 2001, the scheduled principal payment of $63 million was made on the class A-2 Bonds. The Overcollateralization Subaccount was funded by $327,000 on both March 26 and June 25, 2001, to reach its required funding levels. Excess ITC Collections and investment earnings not released to the Company, totaling approximately $10.2 million, were deposited into the Reserve Subaccount on March 26 and June 25, 2001.</P>
<P ALIGN="JUSTIFY">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.</P>
<B><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY"><A name="Market Risk">Item 3. <U>Quantitative and Qualitative Disclosures About Market Risk</P>
</B></U><P ALIGN="JUSTIFY">Not applicable.</P>
<B><P>&nbsp;</P>
</B><P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="CENTER">PART II. OTHER INFORMATION</P>
<P ALIGN="JUSTIFY"><A name="Legal Proceedings">Item 1. <U>Legal Proceedings</P>
</B></U><P ALIGN="JUSTIFY">None.</P>
<B><P ALIGN="JUSTIFY"><A name="Exhibits">Item 6. <U>Exhibits and Reports on Form 8-K</P><OL START=0>

<OL TYPE="a">

</B></U><P ALIGN="JUSTIFY"><LI>Exhibits</LI></P>
<P ALIGN="JUSTIFY">&#9;&#9;99 - Quarterly Servicer's Certificate</P>
<P ALIGN="JUSTIFY"><LI>Reports on Form 8-K</LI></P></OL>
</OL>
</OL>
<DIR>
<DIR>
<DIR>

<P>None.</P></DIR>
</DIR>
</DIR>

<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<P ALIGN="JUSTIFY">&nbsp;</P>
<B><P ALIGN="CENTER"><A name="Glossary">GLOSSARY OF TERMS AND ABBREVIATIONS</P>
<P ALIGN="JUSTIFY"><A NAME="INTERN_LINK1">Capital Subaccount</B> - 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.</P>
<B><P ALIGN="JUSTIFY">CEP</B> <B>Securities</B> - 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.</P>
<B><P ALIGN="JUSTIFY">Competition</B> <B>Act</B> - The Pennsylvania Electricity Generation Customer Choice and Competition Act, enacted in Pennsylvania in December 1996.</P>
<B><P ALIGN="JUSTIFY">General Subaccount<I> - </B></I>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.</P>
<B><P ALIGN="JUSTIFY">Indenture</B> - The Indenture entered into by PPL Transition Bond Company, LLC and the Trustee, providing for the issuance of transition bonds.</P>
<B><P ALIGN="JUSTIFY">ITC</B> - 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.</P>
<B><P ALIGN="JUSTIFY">ITP - </B>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.</P>
<B><P ALIGN="JUSTIFY">Overcollateralization Subaccount</B> - 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.</P>
<B><P ALIGN="JUSTIFY">PPL Electric Utilities</B> - PPL Electric Utilities Corporation, the sole member of PPL Transition Bond Company, LLC.</P>
<B><P ALIGN="JUSTIFY">PUC</B> - The Pennsylvania Public Utility Commission.</P>
<B><P ALIGN="JUSTIFY">PUC<I> </I>Restructuring<I> </I>Order</B> - 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.</P>
<B><P ALIGN="JUSTIFY">Qualified<I> </I>Transition<I> </I>Expenses</B> - 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.</P>
<B><P ALIGN="JUSTIFY">Reserve</B> <B>Subaccount</B> - An account held by the Trustee under the Indenture, which consists of remaining funds available after required allocations on the quarterly payment dates.</P>
<B><P ALIGN="JUSTIFY">SEC</B> - Securities and Exchange Commission.</P>
<B><P ALIGN="JUSTIFY">Servicer</B> - 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.</P>
<B><P ALIGN="JUSTIFY">Servicing</B> <B>Agreement</B> - The Intangible Property Servicing Agreement between PPL Electric Utilities, as Servicer, and PPL Transition Bond Company, LLC, as Issuer.</P>
<B><P ALIGN="JUSTIFY">Trustee</B> - The Bank of New York, a New York banking corporation, as Trustee under the Indenture.</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<P ALIGN="CENTER">&nbsp;</P>
<U><P ALIGN="CENTER"><A name="Signatures">SIGNATURES</P>
</U><P ALIGN="JUSTIFY"></A>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.</P></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=638>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17>
<P></TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<B><U><FONT FACE="Arial" SIZE=4><P>PPL Transition Bond Company, LLC</B></U></FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="22%" VALIGN="TOP" COLSPAN=2 HEIGHT=17>
<FONT FACE="Arial" SIZE=4><P ALIGN="JUSTIFY">(Registrant)</FONT></TD>
<TD WIDTH="27%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=4><P ALIGN="JUSTIFY">Date: August 13, 2001</FONT></TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<U><FONT FACE="Arial" SIZE=4><P ALIGN="JUSTIFY">/s/ James S. Pennington</U></FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<FONT FACE="Arial" SIZE=4><P ALIGN="JUSTIFY">James S. Pennington, Manager</FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="11%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="27%" VALIGN="TOP" HEIGHT=17><P></P></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<U><FONT FACE="Arial" SIZE=4><P ALIGN="JUSTIFY">/s/ Stephen C. May</U></FONT></TD>
</TR>
<TR><TD WIDTH="45%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="56%" VALIGN="TOP" COLSPAN=4 HEIGHT=17>
<FONT FACE="Arial" SIZE=4><P>Stephen C. May, Treasurer</FONT></TD>
</TR>
</TABLE>
<DIR>
<DIR>

<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">&nbsp;</P>
<P ALIGN="RIGHT">Exhibit 99</P></DIR>
</DIR>
</B></FONT>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=7 WIDTH=642>
<TR><TD VALIGN="TOP">
<P ALIGN="CENTER"><B><FONT FACE="Arial" SIZE=2>Quarterly Servicer's Certificate</P>
<P ALIGN="CENTER">PPL Transition Bond Company LLC<BR>
$2,420,000,000 Transition Bonds, Series 1999-1</P>
</B></FONT><FONT FACE="Arial" SIZE=1><P ALIGN="CENTER">Pursuant to Section 4 of Annex 1 the Intangible Transition Property Servicing Agreement dated as of August 10, 1999 (the "Servicing Agreement") between PPL Electric Utilities Corporation, as Servicer and PPL Transition Bond Company, LLC, as Issuer, the Servicer does hereby certify as follows:</P>
<P ALIGN="CENTER">Capitalized terms used in the Quarterly Servicer's Certificate (the "Quarterly Certificate") have their respective meanings as set forth in the Servicing Agreement. References herein to the "Indenture" are to the Indenture dated as of August 10, 1999 between PPL Transition Bond Company, LLC, as issuer and The Bank of New York as Trustee.</P>
</FONT><FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">Billing Periods: March 2001, April 2001, May 2001<BR>
Payment Date: June 25, 2001</FONT></TD>
</TR>
</TABLE>

<P ALIGN="JUSTIFY"></P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=641>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<P ALIGN="RIGHT"><B><FONT FACE="Arial" SIZE=2>1.</B></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Collections Allocable and Aggregate Amounts Available for the Current Payment Date:</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<I><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">N1</I></FONT></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">i.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Remittances for the March 2001 Collection Period - <I>Refer to Note 1</I></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$35,417,726.69</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Remittances for the April 2001 Collection Period</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$33,590,901.24</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Remittances for the May 2001 Collection Period</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$31,365,684.48</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iv.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Net Earnings on Collection Account</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$643,592.11</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">v.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Net Earnings on Capital Subaccount</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$192,287.06</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">vi.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Net Earnings on Overcollateralization Subaccount</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$27,704.18</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">vii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Net Earnings on Reserve Subaccount</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$36,995.18</U></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">viii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">General Subaccount Balance</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$101,274,890.94</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ix.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Reserve Subaccount Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$10,605,871.77 </FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">x.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Overcollateralization Subaccount Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$1,967,744.76 </FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xi.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Capital Subaccount Balance (less $100K)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$12,000,000.00 </FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Collection Account Balance</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$125,848,507.47 </B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2.</B></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Outstanding Principal Balance and Collection Account Balance as of Prior Payment Date:</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">i.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-1 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-2 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$148,795,346.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-3 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$303,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iv.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-4 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$201,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">v.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-5 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$313,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">vi.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-6 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$223,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">vii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-7 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$455,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=17><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">viii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=17>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-8 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=17>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$454,000,000.00</U></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ix.</B></FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Transition Bond Principal Balance</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$2,097,795,346.00</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">x.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Reserve Subaccount Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$10,605,871.77</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xi.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Overcollateralization Subaccount Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$1,967,744.76</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Capital Subaccount Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$12,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3.</B></FONT></TD>
<TD WIDTH="72%" VALIGN="TOP" COLSPAN=4 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Required Funding/Payments as of Current Payment Date:</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">i.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Projected Class A-1 Bond Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Projected Class A-2 Bond Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$85,478,334.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Projected Class A-3 Bond Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$303,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iv.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Projected Class A-4 Bond Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$201,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">v.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Projected Class A-5 Bond Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$313,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">vi.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Projected Class A-6 Bond Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$223,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">vii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Projected Class A-7 Bond Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$455,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">viii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Projected Class A-8 Bond Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$454,000,000.00</U></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ix.</B></FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Projected Transition Bond Balance</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$2,034,478,334.00</B></FONT></TD>
</TR>
</TABLE>

<P ALIGN="JUSTIFY"></P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=641>
<TR><TD WIDTH="12%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<P ALIGN="JUSTIFY"><I><FONT FACE="Arial" SIZE=2>Note 1 - </I></FONT></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="85%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<I><FONT FACE="Arial" SIZE=2><P>ITC collections $36,564,300.11 less adjustment of $1,146,573.42<BR>
over-remitted Jan, Feb 2001</I></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">x.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Required Class A-1 Coupon (6.08% per annum rate)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xi.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Required Class A-2 Coupon (6.41% per annum rate)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$2,384,445.42</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Required Class A-3 Coupon (6.60% per annum rate)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$4,999,500.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xiii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Required Class A-4 Coupon (6.72% per annum rate)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$3,376,800.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xiv.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Required Class A-5 Coupon (6.83% per annum rate)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$5,344,475.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xv.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Required Class A-6 Coupon (6.96% per annum rate)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$3,880,200.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xvi.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Required Class A-7 Coupon (7.05% per annum rate)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$8,019,375.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xvii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Required Class A-8 Coupon (7.15% per annum rate)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$8,115,250.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xviii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Required Overcollateralization Funding</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$2,289,189.19</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xix.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Required Capital Subaccount Funding</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.</B></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P>Allocation of Remittances as of Current Payment Date Pursuant to<BR>
Section 8.02(d) of the Indenture:</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">i.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Bond Trustee Fees and Expenses</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$5,625.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Independent Managers Fee</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Servicing Fee</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$312,500.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iv.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Quarterly Administration Fee</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$25,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">v.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Operating Expenses (subject to $100,000 cap)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$16,841.20</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">vi.</B></FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Quarterly Interest</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$36,120,045.42</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-1 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-2 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$2,384,445.42</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-3 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$4,999,500.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-4 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$3,376,800.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-5 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$5,344,475.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">6.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-6 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$3,880,200.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-7 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$8,019,375.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-8 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$8,115,250.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">vii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Principal Due and Payable</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$ - </FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">viii.</B></FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Scheduled Quarterly Principal</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$63,317,012.00</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">1.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-1 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">2.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-2 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$63,317,012.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">3.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-3 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">4.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-4 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-5 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">6.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-6 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-7 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-8 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ix.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Operating Expenses (in excess of $100,000)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">x.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Funding of Capital Subaccount (to required level)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xi.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Funding of Overcollateralization Subaccount (to required level)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$327,027.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Net Earnings on Capital Subaccount Released to Issuer</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$192,287.06</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xiii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Deposits to Reserve Subaccount</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$893,853.90</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xiv.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Released to Issuer upon Series Retirement: Collection Account</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">5.</B></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P>Outstanding Principal Balance and Collection Account Balance as of<BR>
Current Payment Date:</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="72%" VALIGN="TOP" COLSPAN=4 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">(after giving effect to payments to be made on such payment date):</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">i.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-1 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-2 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$85,478,334.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-3 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$303,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iv.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-4 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$201,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">v.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-5 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$313,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">vi.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-6 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$223,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">vii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-7 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$455,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">viii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-8 Principal Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$454,000,000.00</U></FONT></TD>
</TR>
</TABLE>

<P ALIGN="JUSTIFY"></P>
<TABLE CELLSPACING=0 BORDER=0 CELLPADDING=2 WIDTH=640>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ix.</B></FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Transition Bond Principal Balance</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$2,034,478,334.00</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">x.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Reserve Subaccount Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$11,536,720.85</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xi.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Overcollateralization Subaccount Balance</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$2,322,475.94</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">xii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Capital Subaccount Balance (less $100K)</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$12,000,000.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">6.</B></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P>Subaccount Draws as of Current Payment Date (if applicable, pursuant<BR>
to Section 8.02(d) of the Indenture):</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">i.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Reserve Subaccount</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Overcollateralization Subaccount</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Capital Subaccount</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<U><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</U></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">iv.</B></FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Total Draws</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">7.</B></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Shortfalls In Interest and Principal Payments as of Current Payment Date:</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">i.</B></FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Quarterly Interest</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">1.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-1 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-2 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">3.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-3 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">4.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-4 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">5.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-5 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">6.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-6 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">7.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-7 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">8.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-8 Bond Coupon Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ii.</B></FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Quarterly Principal</B></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">1.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-1 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">2.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-2 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">3.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-3 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">4.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-4 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">5.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-5 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">6.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-6 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">7.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-7 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="CENTER">8.</FONT></TD>
<TD WIDTH="62%" VALIGN="TOP" COLSPAN=2 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Class A-8 Bond Principal Payment</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">8.</B></FONT></TD>
<TD WIDTH="95%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<B><FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Shortfalls in Required Subaccount Levels as of Current Payment Date:</B></FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">i.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Overcollateralization Subaccount</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">ii.</FONT></TD>
<TD WIDTH="65%" VALIGN="TOP" COLSPAN=3 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Capital Subaccount</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="RIGHT">$0.00</FONT></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD VALIGN="TOP" COLSPAN=6 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">IN WITNESS HEREOF, the undersigned has duly executed and delivered this Quarterly Servicer's Bond</FONT></TD>
</TR>
<TR><TD WIDTH="77%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">this 21st day of June, 2001.</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="77%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">PPL Electric Utilities Corporation, as Servicer</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="7%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="3%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="2%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="60%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="77%" VALIGN="TOP" COLSPAN=5 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">by: <U>/s/ James E. Abel&#9;</U></FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="72%" VALIGN="TOP" COLSPAN=4 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">James E. Abel</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
<TR><TD WIDTH="5%" VALIGN="TOP" HEIGHT=16><P></P></TD>
<TD WIDTH="72%" VALIGN="TOP" COLSPAN=4 HEIGHT=16>
<FONT FACE="Arial" SIZE=2><P ALIGN="JUSTIFY">Vice President - Finance &amp; Treasurer</FONT></TD>
<TD WIDTH="23%" VALIGN="TOP" HEIGHT=16><P></P></TD>
</TR>
</TABLE>

<P ALIGN="JUSTIFY"></P></BODY>
</HTML>
[{"type": "10-Q", "sequence": "1", "filename": "tbc6-01.htm", "description": "PPL TRANSITION BOND COMPANY 10-Q 6/01", "secsgml_size_bytes": 170301}]
{"company-data": {"conformed-name": "PP&L TRANSITION BOND CO INC", "cik": "0001083000", "assigned-sic": "6189", "irs-number": "233004428", "state-of-incorporation": "DE", "fiscal-year-end": "1231"}, "filing-values": {"form-type": "10-Q", "act": "34", "file-number": "333-75369", "film-number": "1706030"}, "business-address": {"street1": "C/O PP&L RESOURCES INC", "street2": "TWO NORTH NINTH ST", "city": "ALLENTOWN", "state": "PA", "zip": "18101", "phone": "6107747934"}, "mail-address": {"street1": "C/O PP&L RESOURCES INC", "street2": "TWO NORTH NINTH STREET", "city": "ALLENTOWN", "state": "PA", "zip": "18101"}}
PPL Transition Bond 10-Q 6-01
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
THE REGISTRANT MEETS THE CONDITIONS SET FORTH IN
GENERAL INSTRUCTIONS H(1) (a) AND (b) OF FORM 10-Q AND
IS THEREFORE FILING THIS FORM WITH THE REDUCED DISCLOSURE FORMAT
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the quarterly period ended
June 30, 2001
OR
[_]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
For the transition period from ______________________ to _______________________
Commission File
Number
Registrant; State of Incorporation;
Address; and Telephone No.
IRS Employer
Identification No.
333-75369
PPL Transition Bond Company, LLC
(Delaware)
Two North Ninth Street, GENA92, Room 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 [_]
PPL TRANSITION BOND COMPANY, LLC
FORM 10-Q
FOR THE QUARTER ENDED JUNE 30, 2001
INDEX
PART I. FINANCIAL INFORMATION
Page
Item 1. Financial Statements
Statement of Operations and Changes in Member's Equity
1
Statement of Cash Flows
2
Balance Sheet
3
Notes to Financial Statements
4
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
6
Item 3. Quantitative and Qualitative Disclosures About Market Risk
7
PART II. OTHER INFORMATION
Item 1. Legal Proceedings
7
Item 6. Exhibits and Reports on Form 8-K
7
GLOSSARY OF TERMS AND ABBREVIATIONS
8
SIGNATURES
9
PPL TRANSITION BOND COMPANY, LLC
Part 1. FINANCIAL INFORMATION
Item 1. Financial Statements
STATEMENT OF OPERATIONS AND CHANGES IN MEMBER'S EQUITY
(Unaudited)
(Thousands of Dollars)
Three Months
Six Months
Ended June 30,
Ended June 30,
2001
2000
2001
2000
Revenues
Intangible transition charge revenue
$ 90,329
$ 92,973
$197,894
$206,061
Interest income
138
4
328
81
------------
------------
------------
------------
Total revenue
90,467
92,977
198,222
206,142
------------
------------
------------
------------
Expenses
Amortization of intangible transition property
53,126
52,039
122,446
123,242
Interest expense
36,772
40,467
74,607
81,902
Administrative and general expenses
466
466
890
916
------------
------------
------------
------------
Total expenses
90,364
92,972
197,943
206,060
------------
------------
------------
------------
Operating Income
103
5
279
82
Income tax expense
42
2
115
34
------------
------------
------------
------------
Net Income
$ 61
$ 3
$ 164
$ 48
=======
=======
=======
=======
Member's equity - beginning of period
12,433
12,350
12,330
12,305
------------
------------
------------
------------
Member's equity - end of period
$ 12,494
$ 12,353
$12,494
$ 12,353
=======
=======
=======
=======
The accompanying Notes to Financial Statements are an integral part of the financial statements
PPL TRANSITION BOND COMPANY, LLC
STATEMENT OF CASH FLOWS
(Unaudited)
(Thousands of Dollars)
Six Months Ended
June 30,
2001
2000
Cash Flows From Operating Activities
Net Income
$ 164
$ 48
Adjustments to reconcile net income to net cash
provided by operating activities:
Amortization of intangible transition property
122,446
123,242
Amortization of debt issuance expenses
1,428
1,721
Amortization of debt discount
27
35
Changes in current assets and liabilities:
Intangible transition charges receivable from Servicer
14,173
(6,739)
Payable to Servicer
(1,056)
Other
(167)
1,269
Other operating activities - net
2,134
654
-------------------
-------------------
Net cash provided by operating activities
140,205
119,174
-------------------
-------------------
Cash Flows From Investing Activities
Change in restricted funds
(11,102)
663
-------------------
-------------------
Net cash provided by (used in) investing activities
(11,102)
663
-------------------
-------------------
Cash Flows From Financing Activities
Payment of principal on bonds
(129,138)
(122,327)
-------------------
-------------------
Net cash used in financing activities
(129,138)
(122,327)
-------------------
-------------------
Net Decrease in Cash and Cash Equivalents
(35)
(2,490)
Cash and Cash Equivalents at Beginning of Period
793
2,830
-------------------
-------------------
Cash and Cash Equivalents at End of Period
$ 758
$ 340
===========
===========
The accompanying Notes to Financial Statements are an integral part of the financial statements.
PPL TRANSITION BOND COMPANY, LLC
BALANCE SHEET
(Unaudited)
(Thousands of Dollars)
June 30,
December 31,
2001
2000
ASSETS
Current Assets
Cash and cash equivalents
$ 758
$ 793
Intangible transition charges receivable from Servicer
68,011
82,184
Other current assets
8
41
-------------------
-------------------
Current assets
68,777
83,018
-------------------
-------------------
Noncurrent Assets
Intangible transition property, net
1,951,867
2,075,996
Unamortized debt issuance expenses
10,150
11,578
Restricted funds
26,209
15,107
-------------------
-------------------
Noncurrent assets
1,988,226
2,102,681
-------------------
-------------------
Total assets
$ 2,057,003
$ 2,185,699
===========
===========
LIABILITIES AND MEMBER'S EQUITY
Current Liabilities
Long-term debt
$ 243,192
$ 240,308
Interest accrued
1,950
2,064
Taxes accrued - Member
77
53
Other
3,239
3,349
-------------------
-------------------
Current liabilities
248,458
245,774
-------------------
-------------------
Noncurrent Liabilities
Long-term debt, net of discount
1,791,146
1,923,141
Other
4,905
4,454
-------------------
-------------------
Noncurrent liabilities
1,796,051
1,927,595
-------------------
-------------------
Commitments and Contingent Liabilities
Member's Equity
12,494
12,330
-------------------
-------------------
Total liabilities and member's equity
$ 2,057,003
$ 2,185,699
===========
===========
The accompanying Notes to Financial Statements are an integral part of the financial statements.
PPL Transition Bond Company, LLC
Notes to Financial Statements
Terms and abbreviations appearing in Notes to Financial Statements are explained in the glossary.
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 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.
Nature of Operations
The financial statements include the accounts of PPL Transition Bond Company, LLC (the Company). The Company is a limited liability company established under the laws of the State of Delaware, and was formed on March 25, 1999 pursuant to a limited liability company agreement. PPL Electric Utilities is the sole member of the Company.
The Company was organized for the sole purpose of purchasing and owning ITP, issuing transition bonds (the Bonds), pledging its interest in ITP and other collateral to the Trustee under an Indenture between the Company and the Trustee to collateralize the Bonds, and performing activities that are necessary to accomplish these purposes. ITP represents the irrevocable right of PPL Electric Utilities, or its successor or assignee, to collect a non-bypassable ITC from customers pursuant to the PUC Restructuring Order in accordance with the Competition Act. The PUC Restructuring Order authorized the ITC to be sufficient to recover up to $2.85 billion aggregate principal amount of Bonds, plus an amount sufficient to provide for any credit enhancement, to fund any reserves and to pay interest, redemption premiums, servicing fees and other expenses relating to the Bonds.
The Company's organizational documents require it to operate in a manner so that its assets would not be consolidated with the bankruptcy estate of PPL Electric Utilities in the event PPL Electric Utilities becomes subject to a bankruptcy proceeding. Both PPL Electric Utilities and the Company have treated the transfer of the ITP to the Company as a sale under applicable law. The Bonds are treated as debt obligations of the Company. The assets of the Company are not available to creditors of PPL Electric Utilities or PPL Corporation, and the ITP is legally not an asset of PPL Electric Utilities or PPL Corporation. The Company is expected to terminate its existence after final maturity of the Bonds.
The Company issued $2.42 billion of Bonds in eight different classes on August 10, 1999. See Note 4 for additional information.
Summary of Significant Accounting Policies
Management's Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions. These estimates and assumptions will affect the reported amount of revenues, expenses, assets, and liabilities and disclosure of contingencies. Actual results could differ from these estimates.
Cash and Cash Equivalents
The Company considers all liquid debt instruments purchased with a maturity of three months or less to be cash equivalents. Cash and Cash Equivalents do not include Restricted Funds.
Restricted Funds
Under the Indenture, the Company deposited an amount equal to 0.5% of the initial principal amount of the 1999-1 Bonds into the Capital Subaccount with the Trustee. This amount was contributed by PPL Electric Utilities to the Company. This account is the last account drawn in the event funds are insufficient to make scheduled allocations. If the Capital Subaccount is used, it will be replenished from ITC remittances to its original level through the periodic reconciliation process. The Indenture also provides for an Overcollateralization Subaccount. The funding level of this account is 0.5% of the initial principal amount of the Series 1999-1 Bonds, funded ratably over the life of the Bonds. Any excess amounts of ITC collections and investment earnings not released to the Company are deposited into a Reserve Subaccount. Accordingly, the Capital Subaccount, Overcollateralization Subaccount, and Reserve Subaccount are classified as "Restricted Funds" on the Balance Sheet.
Amortization of Intangible Transition Property
The ITP was recorded at the acquired cost and is being amortized over the life of the Bonds, based on ITC revenues, interest accruals and other fees. The ITP is solely the property of the Company.
Amortization of Debt Issuance Costs and Discount on Debt
The costs associated with the issuance of the Bonds have been capitalized and are being amortized over the life of the Bonds, utilizing the effective interest method.
Income Taxes
The Company is a limited liability company and has elected to be disregarded as a separate entity for federal and state income tax purposes. The Company's taxable income or loss is included in the consolidated federal and state income tax returns of its member. The Statement of Operations and Changes in Member's Equity reflects the Company's pro rata allocation of its member's consolidated income taxes in accordance with its member's tax sharing policy.
Long-Term Debt and Source of Repayment
In August 1999, the Company issued $2.42 billion of Series 1999-1 Bonds. The Bonds consist of eight classes. The Company used the proceeds from the Bonds to purchase ITP from CEP Securities. PPL Electric Utilities arranged for the formation of CEP Securities to provide flexibility to issue multiple tranches of transition bonds at different dates. The Bonds are collateralized by the ITP and other assets of the Company.
Scheduled maturities and interest rates for the Bonds at June 30, 2001 are:
Expected Final
Final
Class
Bond Rate
Amount
Payment Date
Maturity Date
($ Thousands)
A-1
6.08%
0
March 25, 2001
March 25, 2003
A-2
6.41%
85,478
December 26, 2001
December 26, 2003
A-3
6.60%
303,000
March 25, 2003
March 25, 2005
A-4
6.72%
201,000
December 26, 2003
December 26, 2005
A-5
6.83%
313,000
March 25, 2005
March 25, 2007
A-6
6.96%
223,000
December 26, 2005
December 26, 2007
A-7
7.05%
455,000
June 25, 2007
June 25, 2009
A-8
7.15%
454,000
December 26, 2008
June 25, 2009
------------
2,034,478
Current Maturities
(243,192)
Unamort. Discount
(140)
------------
Long-term Debt
1,791,146
========
The carrying value of the long-term debt approximates fair market value as of June 30, 2001. The current maturities stated above are based on the expected final payment dates rather than the final maturity date.
The source of repayment for the Bonds is the ITC. The Servicer collects this non-bypassable charge from PPL Electric Utilities' retail consumers of electricity. The Servicer deposits ITC monthly collections into a General Subaccount maintained by the Trustee under the Indenture. The monthly ITC collections from the billing periods of December 2000 through May 2001 were $213 million in aggregate. Each quarter, such monies are used to make principal and interest payments on the Bonds, and to pay fees, costs and charges specified in the Indenture. The Trustee made scheduled payments on March 26 and June 25, 2001. The Indenture also includes a Reserve Subaccount that is maintained for the purpose of retaining any excess amount of ITC collections and investment earnings not released to the Company. Approximately $9.3 million was deposited into the Reserve Subaccount on March 26, and an additional $893,000 on June 25, 2001. The Indenture also provides for an Overcollateralization Subaccount. The funding level of this account is 0.5% of the initial principal amount of the Series 1999-1 Bonds, funded ratably over the life of the Bonds. To meet the required Overcollateralization Subaccount levels, $327,000 was deposited on both March 26 and June 25, 2001. Additionally an amount equal to 0.5% of the initial principal amount of the Bonds has been deposited into the Capital Subaccount under the Indenture. If amounts available in the General, Reserve, and Overcollateralization Subaccounts are not sufficient on any payment date to make scheduled payments, the Trustee will draw on amounts in the Capital Subaccount in excess of $100,000. Any remaining amounts collateralizing the Bonds will be released to the Company upon final payment on the Bonds.
At June 30, 2001, the following balances were reflected in the Subaccounts maintained by the Trustee:
Subaccounts
Balance
($ Thousands)
General
$0
Reserve
11,642
Overcollateralization
2,337
Capital
12,230
------------------
Totals
$26,209
==========
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 June 30, 2001, the Company expensed servicing fees of approximately $313,000 and other administrative fees of $25,000. For the six months ended June 30, 2001, the company expensed servicing fees of $625,000 and other administrative fees of $50,000.
At June 30, 2001, the Balance Sheet includes a receivable from PPL Electric Utilities of approximately $68 million for billed and unbilled ITC revenues.
PPL Transition Bond Company, LLC
Item 2.
Management's Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Information
Certain statements contained in this Form 10-Q concerning expectations, beliefs, plans, objectives, goals, strategies, future events or performance and underlying assumptions and other statements which are other than statements of historical facts are "forward-looking statements" within the meaning of the federal securities laws. Although PPL Electric Utilities and PPL Transition Bond Company, LLC (the Company) believe that the expectations and assumptions reflected in these statements are reasonable, there can be no assurance that these expectations will prove to have been correct. These forward-looking statements involve a number of risks and uncertainties, and actual results may differ materially from the results discussed in the forward-looking statements. Any such forward-looking statements should be considered in conjunction with other documents of PPL Electric Utilities and the Company on file with the SEC.
New factors that could cause actual results to differ materially from those described in forward-looking statements emerge from time to time, and it is not possible for PPL Electric Utilities or the Company to predict all of such factors, or the extent to which any such factor or combination of factors may cause actual results to differ from those contained in any forward-looking statement. Any forward-looking statement speaks only as of the date on which such statement is made, and neither PPL Electric Utilities nor the Company undertakes any obligation to update the information contained in such statement to reflect subsequent developments or information.
Background
The Company is a Delaware limited liability company organized in March 1999 for the limited purposes of purchasing ITP and issuing Bonds secured by the ITP. The Company is wholly-owned by PPL Electric Utilities. The Company's organizational documents require it to operate in a manner so that its assets would not be consolidated with the bankruptcy estate of PPL Electric Utilities in the event PPL Electric Utilities becomes subject to a bankruptcy proceeding.
The following analysis of the financial condition and results of operations of the Company is in an abbreviated format pursuant to Instruction H of Form 10-Q. Such analysis should be read in conjunction with the Financial Statements and Notes to Financial Statements included in Item 1 above, and with the section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations" in the Company's Annual Report to the SEC on Form 10-K for the year ended December 31, 2000.
Results of Operations
Revenues
Revenue generated from the ITP for the three months ended June 30, 2001 and 2000 were approximately $90 million and $93 million, respectively. Revenues generated from the ITP for the six months ended June 30, 2001 and 2000 were approximately $198 million and $206 million, respectively.
During the three months ended June 30, 2001 and 2000, the Company earned approximately $138,000 and $4,000, respectively, in interest from the Capital Subaccount maintained by the Trustee and from temporary investments. During the six months ended June 30, 2001 and 2000, the Company earned approximately $328,000 and $81,000, respectively, in such interest. The additional interest income in 2001 reflects higher balances in the Capital Subaccount and temporary investments in 2001 compared with 2000.
Expenses
During the three months ended June 30, 2001 and 2000, the Company incurred interest expense of approximately $37 million and $40 million, respectively. During the six months ended June 30, 2001 and 2000, the Company incurred interest expense of approximately $75 million and $82 million, respectively. Interest expense includes interest on the bonds, and amortization of debt issuance expenses and discounts on the bonds. The decrease in interest expense was the result of the scheduled repayments on the bonds.
For the three months ended June 30, 2001 and 2000, the Company incurred administrative and general expenses of approximately $466,000, including servicing fees of $313,000 and other administrative fees of $25,000 in each period. For the six months ended June 30, 2001 and 2000, the Company incurred administrative and general fees of approximately $890,000 and $916,000, respectively, including servicing fees of $625,000 and other administrative fees of $50,000 in each period.
ITC Remittances and Debt Servicing
The principal amount of the Bonds, interest, fees, and funding of the Overcollateralization Subaccount are being recovered through ITC payable by retail consumers of electricity within PPL Electric Utilities' service territory who receive its electric delivery service. As part of PPL Electric Utilities' responsibility as Servicer under the Servicing Agreement, PPL Electric Utilities remitted to the Trustee approximately $213 million of ITC collections for the billing periods of December 2000 to May 2001.
All scheduled quarterly Bond principal payments, interest payments and all related expenses were made on March 26 and June 25, 2001. On March 26, 2001, scheduled principal payments of $37 million of the class A-1 Bonds were made and this series was retired. An additional $29 million in principal payments were made on the Class A-2 6.41% bonds. On June 25, 2001, the scheduled principal payment of $63 million was made on the class A-2 Bonds. The Overcollateralization Subaccount was funded by $327,000 on both March 26 and June 25, 2001, to reach its required funding levels. Excess ITC Collections and investment earnings not released to the Company, totaling approximately $10.2 million, were deposited into the Reserve Subaccount on March 26 and June 25, 2001.
The Servicing Agreement also requires PPL Electric Utilities, as Servicer, to file adjustment requests on each calculation date, and the Competition Act and the PUC Restructuring Order require the PUC to act upon these requests within specified time periods. These adjustment requests are based on actual ITC collections and updated assumptions by the Servicer as to projected future usage of electricity by customers, expected delinquencies and write-offs, and future payments and expenses relating to the ITP and the Bonds. The Servicer filed such an adjustment request on December 15, 2000 with the PUC. The request was approved and revised rates became effective on January 1, 2001.
Item 3.
Quantitative and Qualitative Disclosures About Market Risk
Not applicable.
PART II. OTHER INFORMATION
Item 1.
Legal Proceedings
None.
Item 6.
Exhibits and Reports on Form 8-K
Exhibits
99 - Quarterly Servicer's Certificate
Reports on Form 8-K
None.
GLOSSARY OF TERMS AND ABBREVIATIONS
Capital Subaccount
- An account held by the Trustee under the Indenture which is funded by a contribution to PPL Transition Bond Company, LLC by PPL Electric Utilities at the date of issuance of each series of transition bonds.
CEP
Securities
- CEP Securities Co. LLC, a Delaware limited liability company and formerly an indirect wholly-owned subsidiary of PPL Electric Utilities. Effective July 1, 2000 CEP Securities is an indirect wholly-owned subsidiary of PPL Energy Funding Corp.
Competition
Act
- The Pennsylvania Electricity Generation Customer Choice and Competition Act, enacted in Pennsylvania in December 1996.
General Subaccount
-
An account held by the Trustee under the Indenture, into which ITC remittances by the Servicer are deposited. The Trustee allocates the funds from the General Subaccount to other subaccounts on the quarterly payment dates.
Indenture
- The Indenture entered into by PPL Transition Bond Company, LLC and the Trustee, providing for the issuance of transition bonds.
ITC
- Intangible Transition Charge, which PPL Electric Utilities has been authorized by the PUC to impose on customer bills and to collect through a non-bypassable billing mechanism to recover Qualified Transition Expenses.
ITP -
Intangible Transition Property, which is the property right created under the Competition Act, representing the irrevocable right of PPL Transition Bond Company, LLC to receive, through ITC, amounts sufficient to recover all Qualified Transition Expenses.
Overcollateralization Subaccount
- An account held by the Trustee under the Indenture, which is funded ratably from collections of ITC over the term of each series of transition bonds.
PPL Electric Utilities
- PPL Electric Utilities Corporation, the sole member of PPL Transition Bond Company, LLC.
PUC
- The Pennsylvania Public Utility Commission.
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.
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: August 13, 2001
/s/ James S. Pennington
James S. Pennington, Manager
/s/ Stephen C. May
Stephen C. May, Treasurer
Exhibit 99
Quarterly Servicer's Certificate
PPL Transition Bond Company LLC
$2,420,000,000 Transition Bonds, Series 1999-1
Pursuant to Section 4 of Annex 1 the Intangible Transition Property Servicing Agreement dated as of August 10, 1999 (the "Servicing Agreement") between PPL Electric Utilities Corporation, as Servicer and PPL Transition Bond Company, LLC, as Issuer, the Servicer does hereby certify as follows:
Capitalized terms used in the Quarterly Servicer's Certificate (the "Quarterly Certificate") have their respective meanings as set forth in the Servicing Agreement. References herein to the "Indenture" are to the Indenture dated as of August 10, 1999 between PPL Transition Bond Company, LLC, as issuer and The Bank of New York as Trustee.
Billing Periods: March 2001, April 2001, May 2001
Payment Date: June 25, 2001
1.
Collections Allocable and Aggregate Amounts Available for the Current Payment Date:
N1
i.
Remittances for the March 2001 Collection Period -
Refer to Note 1
$35,417,726.69
ii.
Remittances for the April 2001 Collection Period
$33,590,901.24
iii.
Remittances for the May 2001 Collection Period
$31,365,684.48
iv.
Net Earnings on Collection Account
$643,592.11
v.
Net Earnings on Capital Subaccount
$192,287.06
vi.
Net Earnings on Overcollateralization Subaccount
$27,704.18
vii.
Net Earnings on Reserve Subaccount
$36,995.18
viii.
General Subaccount Balance
$101,274,890.94
ix.
Reserve Subaccount Balance
$10,605,871.77
x.
Overcollateralization Subaccount Balance
$1,967,744.76
xi.
Capital Subaccount Balance (less $100K)
$12,000,000.00
xii.
Collection Account Balance
$125,848,507.47
2.
Outstanding Principal Balance and Collection Account Balance as of Prior Payment Date:
i.
Class A-1 Principal Balance
$0.00
ii.
Class A-2 Principal Balance
$148,795,346.00
iii.
Class A-3 Principal Balance
$303,000,000.00
iv.
Class A-4 Principal Balance
$201,000,000.00
v.
Class A-5 Principal Balance
$313,000,000.00
vi.
Class A-6 Principal Balance
$223,000,000.00
vii.
Class A-7 Principal Balance
$455,000,000.00
viii.
Class A-8 Principal Balance
$454,000,000.00
ix.
Transition Bond Principal Balance
$2,097,795,346.00
x.
Reserve Subaccount Balance
$10,605,871.77
xi.
Overcollateralization Subaccount Balance
$1,967,744.76
xii.
Capital Subaccount Balance
$12,000,000.00
3.
Required Funding/Payments as of Current Payment Date:
i.
Projected Class A-1 Bond Balance
$0.00
ii.
Projected Class A-2 Bond Balance
$85,478,334.00
iii.
Projected Class A-3 Bond Balance
$303,000,000.00
iv.
Projected Class A-4 Bond Balance
$201,000,000.00
v.
Projected Class A-5 Bond Balance
$313,000,000.00
vi.
Projected Class A-6 Bond Balance
$223,000,000.00
vii.
Projected Class A-7 Bond Balance
$455,000,000.00
viii.
Projected Class A-8 Bond Balance
$454,000,000.00
ix.
Projected Transition Bond Balance
$2,034,478,334.00
Note 1 -
ITC collections $36,564,300.11 less adjustment of $1,146,573.42
over-remitted Jan, Feb 2001
x.
Required Class A-1 Coupon (6.08% per annum rate)
$0.00
xi.
Required Class A-2 Coupon (6.41% per annum rate)
$2,384,445.42
xii.
Required Class A-3 Coupon (6.60% per annum rate)
$4,999,500.00
xiii.
Required Class A-4 Coupon (6.72% per annum rate)
$3,376,800.00
xiv.
Required Class A-5 Coupon (6.83% per annum rate)
$5,344,475.00
xv.
Required Class A-6 Coupon (6.96% per annum rate)
$3,880,200.00
xvi.
Required Class A-7 Coupon (7.05% per annum rate)
$8,019,375.00
xvii.
Required Class A-8 Coupon (7.15% per annum rate)
$8,115,250.00
xviii.
Required Overcollateralization Funding
$2,289,189.19
xix.
Required Capital Subaccount Funding
$0.00
4.
Allocation of Remittances as of Current Payment Date Pursuant to
Section 8.02(d) of the Indenture:
i.
Bond Trustee Fees and Expenses
$5,625.00
ii.
Independent Managers Fee
$0.00
iii.
Servicing Fee
$312,500.00
iv.
Quarterly Administration Fee
$25,000.00
v.
Operating Expenses (subject to $100,000 cap)
$16,841.20
vi.
Quarterly Interest
$36,120,045.42
1.
Class A-1 Bond Coupon Payment
$0.00
2.
Class A-2 Bond Coupon Payment
$2,384,445.42
3.
Class A-3 Bond Coupon Payment
$4,999,500.00
4.
Class A-4 Bond Coupon Payment
$3,376,800.00
5.
Class A-5 Bond Coupon Payment
$5,344,475.00
6.
Class A-6 Bond Coupon Payment
$3,880,200.00
7.
Class A-7 Bond Coupon Payment
$8,019,375.00
8.
Class A-8 Bond Coupon Payment
$8,115,250.00
vii.
Principal Due and Payable
$ -
viii.
Scheduled Quarterly Principal
$63,317,012.00
1.
Class A-1 Bond Principal Payment
$0.00
2.
Class A-2 Bond Principal Payment
$63,317,012.00
3.
Class A-3 Bond Principal Payment
$0.00
4.
Class A-4 Bond Principal Payment
$0.00
5.
Class A-5 Bond Principal Payment
$0.00
6.
Class A-6 Bond Principal Payment
$0.00
7.
Class A-7 Bond Principal Payment
$0.00
8.
Class A-8 Bond Principal Payment
$0.00
ix.
Operating Expenses (in excess of $100,000)
$0.00
x.
Funding of Capital Subaccount (to required level)
$0.00
xi.
Funding of Overcollateralization Subaccount (to required level)
$327,027.00
xii.
Net Earnings on Capital Subaccount Released to Issuer
$192,287.06
xiii.
Deposits to Reserve Subaccount
$893,853.90
xiv.
Released to Issuer upon Series Retirement: Collection Account
$0.00
5.
Outstanding Principal Balance and Collection Account Balance as of
Current Payment Date:
(after giving effect to payments to be made on such payment date):
i.
Class A-1 Principal Balance
$0.00
ii.
Class A-2 Principal Balance
$85,478,334.00
iii.
Class A-3 Principal Balance
$303,000,000.00
iv.
Class A-4 Principal Balance
$201,000,000.00
v.
Class A-5 Principal Balance
$313,000,000.00
vi.
Class A-6 Principal Balance
$223,000,000.00
vii.
Class A-7 Principal Balance
$455,000,000.00
viii.
Class A-8 Principal Balance
$454,000,000.00
ix.
Transition Bond Principal Balance
$2,034,478,334.00
x.
Reserve Subaccount Balance
$11,536,720.85
xi.
Overcollateralization Subaccount Balance
$2,322,475.94
xii.
Capital Subaccount Balance (less $100K)
$12,000,000.00
6.
Subaccount Draws as of Current Payment Date (if applicable, pursuant
to Section 8.02(d) of the Indenture):
i.
Reserve Subaccount
$0.00
ii.
Overcollateralization Subaccount
$0.00
iii.
Capital Subaccount
$0.00
iv.
Total Draws
$0.00
7.
Shortfalls In Interest and Principal Payments as of Current Payment Date:
i.
Quarterly Interest
$0.00
1.
Class A-1 Bond Coupon Payment
$0.00
2.
Class A-2 Bond Coupon Payment
$0.00
3.
Class A-3 Bond Coupon Payment
$0.00
4.
Class A-4 Bond Coupon Payment
$0.00
5.
Class A-5 Bond Coupon Payment
$0.00
6.
Class A-6 Bond Coupon Payment
$0.00
7.
Class A-7 Bond Coupon Payment
$0.00
8.
Class A-8 Bond Coupon Payment
$0.00
ii.
Quarterly Principal
$0.00
1.
Class A-1 Bond Principal Payment
$0.00
2.
Class A-2 Bond Principal Payment
$0.00
3.
Class A-3 Bond Principal Payment
$0.00
4.
Class A-4 Bond Principal Payment
$0.00
5.
Class A-5 Bond Principal Payment
$0.00
6.
Class A-6 Bond Principal Payment
$0.00
7.
Class A-7 Bond Principal Payment
$0.00
8.
Class A-8 Bond Principal Payment
$0.00
8.
Shortfalls in Required Subaccount Levels as of Current Payment Date:
i.
Overcollateralization Subaccount
$0.00
ii.
Capital Subaccount
$0.00
IN WITNESS HEREOF, the undersigned has duly executed and delivered this Quarterly Servicer's Bond
this 21st day of June, 2001.
PPL Electric Utilities Corporation, as Servicer
by:
/s/ James E. Abel
James E. Abel
Vice President - Finance & Treasurer