Fitch: PPL Montana's Ratings Unaffected by FERC Ruling.

CHICAGO -- Fitch Ratings views the recent ruling by the Federal Energy Regulatory Commission (FERC) as having no effect on the 'BBB' rating of PPL Montana, LLC's (PPLM) pass-through trust certificates due 2020. FERC has terminated its investigation of generation market power and ordered that PPLM will retain the right to sell wholesale power at market-based rates within the NorthWestern Corp. control area. Fitch's current rating already incorporates the expectation that PPLM will retain the ability to sell wholesale power at market prices. Fitch had previously considered the potential for a reversion to cost-based rates (see Fitch's press release for PPLM dated Dec. 5, 2005).

PPLM owns, operates, and leases a portfolio of 13 hydroelectric and coal-fired generating facilities with an aggregate net capacity of approximately 1,157 MW. The portfolio, located entirely within Montana, includes leased interests in Colstrip, the second-largest coal-fired facility west of the Mississippi River. The certificates were issued by a pass-through trust to fund the owner-lessors' acquisition of the leased Colstrip assets, which represent 25% of Colstrip's 2,094-MW capacity and 46% of total portfolio capacity.

Fitch's rating definitions and the terms of use of such ratings are available on the agency's public site, 'www.fitchratings.com'. Published ratings, criteria and methodologies are available from this site, at all times. Fitch's code of conduct, confidentiality, conflicts of interest, affiliate firewall, compliance and other relevant policies and procedures are also available from the 'Code of Conduct' section of this site.