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PP&L PROPOSES $4 MILLION DECREASE IN ELECTRICITY RATES

 ALLENTOWN, Pa., March 1 /PRNewswire/ -- Pennsylvania Power & Light Co. (NYSE: PPL) (PP&L) reported today that it's seeking Public Utility Commission approval to reduce customer electricity rates by about $4 million starting April 1.
 If the proposal is approved, customer rates would decrease by two-tenths of 1 percent on that date. The actual decrease for each customer would vary, however, depending on the type of service supplied and the amount of electricity used. The bill of a PP&L residential customer using 500 kilowatt-hours of electricity a month, for example, would drop by 3 cents, from $45.14 to $45.11.
 PP&L said it wants to change customer bills for two basic reasons. The first involves the Energy Cost Rate, which is used to account for changes in the cost of fuels used to generate electricity and transactions with other utilities.
 PP&L is anticipating an ECR decrease of nearly $8 million, mainly because the company expects that the overall cost of coal and other fuels used to produce electricity will be lower in the coming year.
 The second change involves state taxes. PP&L is asking to collect an additional $4 million during the coming year because of higher state tax expenses and a tax undercollection last year.
 Here's how the tax changes will show up on customer bills:
 -- Most state taxes are recovered in the company's basic charge for service, which generally is applied to the amount of electricity used. A separate charge, the State Tax Adjustment Surcharge, also is used to account for periodic tax changes. The current surcharge has been a part of customer bills since August 1991, when the state increased taxes. On April 1, the tax surcharge will be updated, and most of it will be "rolled into" the basic rates, as required by commission regulations.
 -- The surcharge won't disappear right away, however. Over the past year, PP&L undercollected its state taxes. The shortfall will be collected through the surcharge until it is fully recovered. At that time, the surcharge will be removed from customer bills.
 -- 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- 3/1/93
 /CONTACT: Paul E. Russell of Pennsylvania Power & Light, 215-774-4254/
 (PPL)


CO: Pennsylvania Power & Light Co. ST: Pennsylvania IN: UTI SU:

MJ-LJ -- PH029 -- 1567 03/01/93 16:07 EST
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Publication:PR Newswire
Date:Mar 1, 1993
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