Pennsylvania Power & Light Co. will vigorously defend its $261 million base rate increase request and rebut testimony from parties opposing the request.

John R. Biggar, vice president-Finance, said Tuesday (4/18) the amount of the increase PP&L requested is appropriate and justified. He added that the company fully expected strong challenges.

The Pennsylvania Office of Consumer Advocate filed written testimony contending that PP&L's base rates should be decreased by $73 million. Testimony filed by the Pennsylvania Public Utility Commission's Office of Trial Staff stated PP&L should be granted an increase of $17.5 million.

The consumer advocate and trial staff play advocacy roles in the rate case, Biggar noted. They do not advise the commissioners and do not necessarily reflect the views of the commissioners.

"Under the Public Utility Code, testimony filed by the consumer advocate or trial staff carries no more weight than testimony filed by any party involved in the process," he said. "All of the testimony feeds into the process, which will not be decided until the Public Utility Commissioners vote this fall. At this point, recommendations from any litigant are merely that — recommendations.

"An administrative law judge will make an official recommendation, based on the testimony of all parties, this summer. We don't believe it is appropriate to predict the level of increase that may be granted based on the testimony of one or two parties," Biggar stated.

Attorneys representing PP&L will cross-examine witnesses for parties opposing the rate case next week in hearings before an administrative law judge. In early May, the company will file written rebuttals to opposing testimony.

"We believe we have made a strong case for the amount we requested," Biggar said, "especially in light of the fact that we have avoided base rate increases for 10 years."

Since PP&L's last base rate increase, the Consumer Price Index has risen by more than 30 percent, while the total price PP&L customers pay for electric service has essentially not changed.

The $261 million request represents 11.7 percent of PP&L's base rates.

PP&L serves 1.2 million customers in 29 counties of eastern and central Pennsylvania.