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PENNSYLVANIA POWER & LIGHT CO. WILL REDUCE ELECTRICITY RATES

 PENNSYLVANIA POWER & LIGHT CO. WILL REDUCE ELECTRICITY RATES
 ALLENTOWN, Pa., March 19 /PRNewswire/ -- Pennsylvania Power & Light Co. (NYSE: PPL) (PP&L) will reduce its electricity rates by about $11.4 million on April 1 to give customers the benefits of several cost savings.
 The rate changes will result in an average rate reduction of about one-half of 1 percent. The actual rate change for each customer will vary, however, depending on the amount of electricity used and the type of service required. For example, the bill of a PP&L residential customer using 500 kilowatt-hours of electricity a month will drop from $45.53 to $45.14.
 The overall reduction comes from changes in three customer bill components: a $16.8 million decrease associated with the Special Base Rate Credit Adjustment, a $26.8 million decrease in the State Tax Adjustment Surcharge, and a $32.2 million increase in the Energy Cost Rate.
 The Special Base Rate Credit Adjustment was established in April 1991 to give customers the benefit of power sales to another utility, among other things. This year's credit reflects an additional factor: benefits from a settlement with General Electric Co. over contract claims that arose during construction of PP&L's Susquehanna nuclear power plant.
 The State Tax Adjustment Surcharge is used to account for changes in four Pennsylvania taxes. State taxes rose in 1991, and several increases were retroactive to January 1991. Because the surcharge began reflecting that increase in August and a full year's worth of taxes had to be collected in less than nine months, the 1991 surcharge rate is higher than the one needed beginning in April of this year. Thus, a reduction will occur.
 The Energy Cost Rate is used to account for changes in the cost of fuels PP&L uses to generate electricity and to account for the benefits of electricity sales PP&L makes to other members of the regional power pool and other neighboring utilities. The ECR will increase primarily because a refund included in the current ECR has expired.
 The ECR change was approved by the Public Utility Commission today (March 19). The other changes will be filed with the commission Friday (March 20) with a proposed effective date of April 1.
 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- 3/19/92
 /CONTACT: Paul E. Russell of Pennsylvania Power & Light Co., 215-774-4254/
 (PPL) CO: Pennsylvania Power & Light Co. ST: Pennsylvania IN: UTI SU:


JS -- PH031 -- 9793 03/19/92 15:30 EST
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Publication:PR Newswire
Date:Mar 19, 1992
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