BETHLEHEM, Pa. -- Over the past year, PP&L Resources Inc. has continued to strengthen its competitive position and has made major strides in broadening its business, the company's chairman told shareowners at its annual meeting Wednesday (4/24).

"Your company has solidified its position as a shaper of the change that will sweep our industry. We also have made significant progress in transforming the company from a regional supplier of electricity to a more broadly based electric energy business," William F. Hecht, chairman, president and chief executive officer, said during the meeting at Lehigh University's Stabler Arena.

About 850 shareowners attended the session, re-electing three board members and ratifying the appointment of company auditors.

In his "state-of-the-business" remarks, Hecht said the three subsidiary companies of PP&L Resources are making substantial progress both in expanding the scope of the company's business and in preparing for the significant industry restructuring that is likely to occur over the next several years.

Hecht reiterated the company's strong support of giving U.S. consumers the right to choose their electricity supplier.

"We are convinced," he told shareowners, "that increased competition in our business can have real benefits for all those who have a stake in the nation's utilities."

He said that Pennsylvania Power & Light Co., PP&L Resources' electric utility subsidiary, is "well positioned to create value for shareowners in a more competitive marketplace." He also said that customers would benefit from competition through generally lower electricity prices and that these lower prices "will make American businesses -- and their employees -- more competitive in global markets."

Hecht said the Allentown-based electric utility company has continued to make gains both in reducing expenses and growing revenues through new sales.

"While we are expanding our horizons at PP&L Resources, we are retaining our focus on the utility operation, which still is the most important component of our business," he said. "Pennsylvania Power & Light Co. will continue to be a company that customers can count on for high-quality service at reasonable prices as well as a company that is committed to its communities and to economic development partnerships that bring new jobs and continued prosperity to Central Eastern Pennsylvania."

He said PP&L Resources also is growing through the activities of its two other subsidiaries: Power Markets Development Co. and Spectrum Energy Services.

Power Markets Development, formed in 1994 to invest in domestic and international power projects, already is involved in important projects in Latin America and elsewhere, Hecht said.

"Power Markets Development is making significant headway in investing in electric power projects outside our company's traditional service area. Our experience to date has confirmed our belief that we can be an important player in the growing international marketplace," Hecht told shareowners.

Spectrum Energy Services, Hecht said, is the company's newest subsidiary. That subsidiary provides a vehicle for the company to offer a broad range of electric-energy related services. The services being marketed include engineering, construction and maintenance of electrical facilities, training and energy management.

"We are encouraged by the early successes of Spectrum in marketing some of the expertise that we have developed over decades of involvement in the electricity business," said Hecht.

Frank A. Long, executive vice president and chief operating officer, presented shareowners with an overview of company operations in 1995 and Ronald E. Hill, senior vice president-Financial, briefly reviewed the company's financial performance in 1995.

During the business portion of the meeting, shareowners re-elected Hecht, Long and William J. Flood to three-year terms on the company's board of directors. Flood, who has been a company director since 1990, is secretary-treasurer of Highway Equipment & Supply Co. of Harrisburg.

Still serving on the board, but not standing for re-election at this time, are (term expiration year in parentheses): E. Allen Deaver, executive vice president, a member of the president's office and a director of Armstrong World Industries Inc., Lancaster, Pa. (1997); Nance K. Dicciani, vice president and business director, Petroleum Chemicals Division, Rohm and Haas Co., Philadelphia, Pa. (1997); Elmer D. Gates, vice chairman of Fuller Co., Bethlehem, Pa. (1997); Derek C. Hathaway, chairman, president and chief executive officer of Harsco Corp., Camp Hill, Pa. (1998); Stuart Heydt, president and chief executive officer of Geisinger Health System, Danville, Pa. (1998); Clifford L. Jones, former president of the Capital Region Economic Development Corp., Camp Hill, Pa. (1998); Ruth Leventhal, professor of biology at the Milton S. Hershey Medical College of Penn State University (1998); and Norman Robertson, former senior vice president and chief economist of Mellon Bank N.A., Pittsburgh, Pa. (1997).

Hecht also expressed the company's gratitude to four retiring directors, including John T. Kauffman, the company's former chairman, president and chief executive officer. Kauffman retires after 18 years on the board. Other retiring directors are: Daniel G. Gambet, president of Allentown College of St. Francis de Sales, Center Valley, Pa.; Vice Admiral Robert Y. Kaufman, USN (Ret.), chairman and president of Yogi Inc., Potomac, Md.; and David L. Tressler, executive director of the Northeast Pennsylvania Physicians' Organization, Clarks Summit, Pa.

Shareowners also ratified the appointment of Price Waterhouse LLP as the company's independent auditors.

About 71 percent of the 160 million outstanding common shares were voted during the meeting.

Pennsylvania Power & Light Co.'s principal officers also were re-elected at a board meeting Wednesday: Linda Curry Bartholomew, vice president-Public Affairs; John R. Biggar, vice president-Finance and Treasurer; Robert G. Byram, senior vice president-Nuclear; John M. Chappelear, vice president-Investments and Pensions; Robert M. Geneczko, vice president-Electrical Systems; Robert S. Gombos, vice president-Mobile Work Force; Robert J. Grey, senior vice president, General Counsel and Secretary; Hecht; Michael D. Hill, vice president-Information Services; Ronald E. Hill, senior vice president-Financial; George T. Jones, vice president-Nuclear Engineering; John P. Kierzkowski, vice president; Long; Joseph J. McCabe, vice president and controller; John R. Menichini, vice president-Customer Services; Robert J. Shovlin, vice president-Power Production and Engineering; Harold G. Stanley, vice president-Nuclear Operations; and Raymond F. Suhocki, vice president-Marketing and Economic Development.

PP&L Resources Inc., based in Allentown, Pa., has three operating subsidiaries: Pennsylvania Power & Light Co., which generates and delivers electricity to 1.2 million customers in eastern and central Pennsylvania; Power Markets Development Co., an international independent power company; and Spectrum Energy Services, which markets energy-related services and products.