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PENN POWER WILL REDUCE ELECTRIC RATES

 PENN POWER WILL REDUCE ELECTRIC RATES
 NEW CASTLE, Pa., March 31 /PRNewswire/ -- Pennsylvania Power


Company President Robert L. Kensinger today announced that a typical residential customer's monthly electric bill will soon decrease by $16.33 as a result of three changes in rates.
 For a residential customer using 700 kilowatt-hours (kWh) per month, these changes include a $15.78 decrease that ends, in April, the four-year phase-in of rates for a new generating plant. Also in April, that customer's bill will decrease an additional $1.21 because of a reduction in the amount of taxes collected for the state. In May, the electric bill will reflect a slight increase of 66 cents as a result of the state Public Utility Commission's (PUC) annual review of energy costs.
 "With these changes, electric rates will drop to below those in effect in early 1990," says Kensinger. "Residential customers will see the full effect in their June bills."
 The four-year phase-in of rates, which the PUC approved in 1988, enabled Penn Power to begin recovering its share of construction and operation costs for the Perry Nuclear Power Plant. The Perry plant has provided electricity to customers since 1987.
 "To gradually reflect these costs in rates, we were permitted to defer revenues from the first two years of the phase-in and collect them during the past two years," Kensinger explains. "Our phase-in plan is ending, bringing rates to the level ultimately approved by the PUC."
 The end of the phase-in will begin affecting rates for commercial and industrial customers in mid-May because of the time needed to recover deferred revenues from these customers.
 The second reduction in electric bills will be a decrease in the State Tax Adjustment Surcharge, which is expected to take effect with electric meters read on April 13, 1992. The current 3.21 percent surcharge will decrease to an estimated 2.19 percent for all customers. The surcharge was first applied to bills on Aug. 24, 1991, as a result of tax increases passed by the Pennsylvania Legislature.
 The third change in electric bills will be an increase in the Energy Cost Rate (ECR), which represents a portion of Penn Power's costs for fuel and power purchases. It takes effect with electric meters read May 4, 1992. This is the first increase in the ECR since May 4, 1989.
 Penn Power serves more than 136,000 customers in all of Lawrence and Mercer counties and portions of Allegheny, Beaver, Butler and Crawford counties in western Pennsylvania.
 -0- 3/31/92
 /CONTACT: Joe Bobbey Jr. of Pennsylvania Power, 412-656-5325/ CO: Pennsylvania Power Company ST: Pennsylvania IN: UTI SU:


CD-JT -- PG010 -- 3505 03/31/92 14:55 EST
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Date:Mar 31, 1992
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