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MILD WEATHER AND THE RECESSION ADVERSELY AFFECT PENNSYLVANIA POWER & LIGHT CO. EARNINGS

 MILD WEATHER AND THE RECESSION ADVERSELY
 AFFECT PENNSYLVANIA POWER & LIGHT CO. EARNINGS
 ALLENTOWN, Pa., Jan. 22 /PRNewswire/ -- Milder-than-normal weather for the second year in a row, coupled with the additional pressures of the 1991 recession, had an adverse effect on Pennsylvania Power & Light Co. (NYSE: PPL) earnings.
 The utility Wednesday reported earnings of $4.01 per share of common stock for the 12 months ended Dec. 31, 1991. Current earnings are 6 cents per share higher than the $3.95 figure reported at the end of 1990.
 "Energy sales experienced during extremely hot weather this past summer were not sufficient to offset the impact of mild temperatures that occurred during the first quarter and in December," said Charles E. Russoli, PP&L's executive vice president and chief financial officer. "Earnings for 1991 would have been 12 cents per share higher if adjusted for normal weather." Russoli noted that PP&L's earnings for 1990 would have been 25 cents per share higher if there had been normal weather in the company's service area during 1990.
 Russoli said that when energy sales to service-area customers, or system sales, are adjusted for normal weather conditions, those sales increased by 47 million kilowatt-hours, or 0.2 percent, during 1991. This compares to an increase of 270 million kwh, or 1 percent, in 1990. This decline in the growth rate of weather-normalized system sales reflects the effects of the recession, particularly on sales to all categories of industrial customers. For 1991, sales to industrial customers were down 260 million kilowatt-hours, or 3 percent, from the level experienced in 1990.
 "The company expects the growth rate for system sales to increase about 1.5 percent in 1992 as its service area begins to recover from the effects of the recession. However, the growth rate projected for 1992 is significantly less than the 3.5 percent annual increase in weather- adjusted service-area sales experienced over the three years before recession-impacted 1991," he said.
 "Despite the adverse effects of mild weather and the recession, the $4.01 per share earned for 1991 represents an annual growth rate in earnings of 5.3 percent since the end of 1986," Russoli said.
 "Several factors have played an important part in that earnings improvement," he said. "These include aggressive marketing and economic development programs, effective cost management, and a reduction in interest expense and dividends on preferred and preference stock. In addition, the company's strong generating capacity position enabled it to add another dimension of revenue, beginning in mid-1989, by entering into several capacity-related transactions with other utilities."
 Earnings for the fourth quarter of 1991 were $0.97 per share, which were slightly down from $1.00 earned in the last quarter of 1990.
 PENNSYLVANIA POWER & LIGHT COMPANY AND SUBSIDIARY COMPANIES
 CONSOLIDATED FINANCIAL INFORMATION
 (Unaudited; thousands of dollars)
 3 Months Ende 12 Months Ended
 December 31 December 31
 1991 1990 1991 1990
 Operating revenues $655,534 $622,961 $2,559,696 $2,419,717
 Net income 84,706 86,602 348,414 343,906
 Dividends on preferred
 and preference stock 10,937 11,346 44,687 46,125
 Earnings applicable
 to common stock 73,769 75,256 303,727 297,781
 Earnings per share of
 common stock (based
 on average number of
 shares outstanding) $0.97 $1.00 $4.01 $3.95
 Average number of
 shares outstanding
 (thousands) 75,740 75,550 75,691 75,462
 SYSTEM SALES COMPARISONS -- ACTUAL
 Millions of kwh
 3 Months Ended Dec. 31 12 Months Ended Dec. 31
 Percent Percent
 1991 1990 Change 1991 1990 Change
 Residential 2,492 2,393 4.1 10,385 10,103 2.8
 Commercial 2,152 2,074 3.8 8,861 8,538 3.8
 Industrial 2,158 2,202 (2.0) 8,456 8,716 (3.0)
 Other 348 343 1.5 1,334 1,315 1.4
 Total 7,150 7,012 2.0 29,036 28,672 1.3
 SYSTEM SALES COMPARISONS -- WEATHER-ADJUSTED
 Millions of kwh
 3 Months Ended Dec. 31 12 Months Ended Dec. 31
 Percent Percent
 1991 1990 Change 1991 1990 Change
 Residential 2,545 2,541 0.2 10,654 10,594 0.6
 Commercial 2,165 2,105 2.9 8,878 8,639 2.8
 Industrial 2,158 2,202 (2.0) 8,456 8,716 (3.0)
 Other 350 347 0.9 1,335 1,327 0.6
 Total 7,218 7,195 0.3 29,323 29,276 0.2
 PP&L supplies electricity to a 10,000-square-mile area of 29 counties in Central Eastern Pennsylvania. Among the communities it serves are Allentown, Bethlehem, Harrisburg, Hazleton, Lancaster, Scranton, Wilkes-Barre and Williamsport.
 /delval/
 -0- 1/22/92
 /CONTACT: Charles E. Russoli of Pennsylvania Power & Light Co. 215-774-5240/
 (PPL) CO: Pennsylvania Power & Light Company ST: Pennsylvania IN: UTI SU: ERN


MK -- PH038 -- 2440 01/22/92 15:47 EST
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