Pennsylvania Power & Light Co. has filed a petition with the Pennsylvania Public Utility Commission to revise the company's power purchase procedures with non-utility electricity generators during "minimum generation emergencies."

Under federal law, all utilities, including PP&L, are generally required to purchase power from non-utility generators.

"This petition is consistent with our effort to comply with regulations that require us to purchase power from non-utility generators and with PP&L's commitment to keep customer rates as low as possible," said Bill Dussinger, PP&L's manager of Electric Market Strategies and Operations. "The request represents an advantageous arrangement for our customers while fulfilling our contractual requirement."

During times of minimum generation emergency — when low amounts of electricity are being used by customers — PP&L is required to cut-back or shut down power generators.

Historically, the number of minimum generation emergencies has been relatively small, and the issue has not been of particular consequence to PP&L or the non-utility generators. Recently, however, there has been a marked increase in the number of minimum generation emergencies. For example, for the 12-month period ended June 30, 1995, the regional power pool declared 103 minimum generation emergencies.

"In an effort to resolve this issue, PP&L is seeking approval for revisions to its non-utility generation curtailment procedure," Dussinger said. "If approved, this revision would require us to purchase additional generation from the non-utility generators, which would add slightly to our energy costs."

Energy costs are passed through to PP&L customers in the Energy Cost Rate portion of electricity bills.

Any additional costs would be determined by the number of minimum generation emergencies that occur. PP&L estimates that, if approved, the revision would add about $2 million overall, or about one-third of 1 percent, to PP&L's total energy costs.

"This is just one cost that is factored into energy costs," Dussinger said. "Even if approved, other factors in an eventual Energy Cost Rate filing might offset any increase from this petition."

The Energy Cost Rate accounts for changes in the cost of fuels used to generate electricity, power purchases from non-utility generators and other utilities, and power sales to other utilities.

Electric utilities adjust this rate once a year subject to PUC approval. If this petition is approved, it appears that 1997 is the earliest any additional costs would be factored into energy costs, Dussinger said.