Pennsylvania Power & Light Co. and the Lehigh County Industrial Development Authority Tuesday (8/1) announced plans to redeem $55 million of the LCIDA's 1985 Series A pollution control revenue bonds on Sept. 1, 1995.

The LCIDA's 1985 Series A bonds, with an interest rate of 9 3/8 percent, will be redeemed at 102 percent of principal amount, plus interest accrued from July 1, 1995. They were issued by the LCIDA in 1985 to provide tax-exempt financing for pollution control and solid waste disposal equipment at PP&L's Susquehanna nuclear power plant.

"The funds needed for these redemptions will be provided from the sale of $55 million of pollution control revenue refunding bonds by the LCIDA," said John R. Biggar, PP&L's vice president-Finance and Treasurer. The new bonds are exempt from federal and Pennsylvania income taxes, and the arrangements between the company and the LCIDA provide for the lower rates associated with tax-exempt financing to be passed through to PP&L.

The new LCIDA bonds are being offered at a yield of 6.20 percent by a group of underwriters consisting of Goldman Sachs & Co., Merrill Lynch & Co., Morgan Stanley & Co. Inc. and PaineWebber Inc. They will mature Aug. 1, 2029.

"The redemption of the higher-cost 1985 Series A bonds and the sale of the new LCIDA bonds will reduce PP&L's cost of financing this pollution control and solid waste disposal equipment," Biggar said.