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PUC ALLEGES PENELEC OVERCHARGED CUSTOMERS

 PUC ALLEGES PENELEC OVERCHARGED CUSTOMERS
 JOHNSTOWN, Pa., Aug. 20 /PRNewswire/ -- Pennsylvania Electric


Company (Penelec) plans to contest today's Pennsylvania Public Utility Commission (PUC) order to show cause why the company should not refund to customers approximately $19.2 million, plus interest, including about $18.8 million in reserve capacity credits.
 These capacity credits are received under power-pooling agreements for a company's ability to have generating capacity available to meet customers' demand for electricity.
 "We intend to argue against the PUC position, and particularly the reserve capacity credit issue, because we believe we have treated these credits appropriately," said David Carroll, Penelec's rates director.
 The PUC show-cause order contends that customers were overcharged because Penelec should have reflected the reserve capacity credits in its annual energy cost rates (ECR) from 1987 through 1990.
 "First," Carroll said, "in our view customers were not overcharged essentially because, under a 1986 PUC rate order, Penelec has included in its base rates credits to its customers for these reserve capacity credits for the period in question. Therefore, crediting the ECR as the PUC recommends would have resulted in customers receiving the same credits twice.
 "Second, reserve capacity credits generally are not part of the ECR tariff, which is a mechanism used by utilities to collect from customers, with PUC approval, the cost of fuel used in generating stations and power sold to and purchased from other utilities and non- utility generators. We believe there is a misunderstanding of the provisions of the ECR on this issue."
 The order also challenges about $425,000 in nuclear-fuel-related costs paid by Penelec customers through the ECR.
 The order requires Penelec to demonstrate why customers should not be credited with the $19.2 million, plus interest, immediately, and to answer by Sept. 9.
 Penelec intends to submit a response denying the allegations.
 Penelec is a subsidiary of General Public Utilities Corporation (NYSE: GPU).
 /delval/
 -0- 8/20/92
 /CONTACT: Gary D. Plummer of Penelec, 814-533-8474/
 (GPU) CO: Pennsylvania Electric Company; Penelec; General Public Utilities
 Corporation ST: New Jersey IN: UTI SU:


CC-JS -- PH028 -- 1917 08/20/92 17:04 EDT
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Publication:PR Newswire
Date:Aug 20, 1992
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