PP&L Resources Inc. Wednesday (1/24) reported earnings of $2.05 per share of common stock for the 12-month period ended Dec. 31, 1995, compared to $1.41 per share reported by the company in the comparable period the year before.

"The earnings improvement was due principally to the reversal of a large portion of one-time charges against income that were recorded in 1994. Most of these one-time charges now are being recovered over an extended period of time as a result of the recent retail base rate case decision, said Ronald E. Hill, senior vice president-Financial.

"Additionally, sales to industrial customers increased 3.2 percent during 1995, and sales to commercial customers rose 2.4 percent, also affecting earnings favorably," Hill said. "We're encouraged by the increase in kilowatt-hour sales in these two important categories."

Looking toward the future, Hill said the 3.8 percent increase in base rates granted by the Pennsylvania Public Utility Commission in September 1995 "will have a positive effect on revenues for 1996." He said the company's actions to increase kilowatt-hour sales -- part of a comprehensive strategy that is increasing shareowner value -- also will have a positive effect on the company's financial results.

Earnings per share in 1995 and 1994 were affected by one-time adjustments. If the effects of these major, one-time adjustments were removed, the company would have had earnings of $1.79 per share for 1995, compared to $2.02 per share in 1994.

Adjustments affecting 1995 earnings were in three main categories: employment reductions, the sale of coal reserves and items related to the rate case.

"The on-going reduction of full-time employment will have a positive impact on reducing our costs over the long term," Hill said.

Costs associated with the reductions reduced earnings by about 11 cents per share in 1995, Hill said.

Sale of the Greene Hill coal reserves in Western Pennsylvania increased earnings by 12 cents per share. And adjustments related to the rate case increased earnings by 21 cents per share. These adjustments included recovery of costs, previously written off, related to the voluntary early retirement program and recovery of certain post-retirement benefit costs, less the disallowance by the PUC of recovery of certain costs incurred when Unit 1 of the Susquehanna nuclear power plant went into service in 1983.

"During 1995, our earnings were under pressure during the first nine months because of the modified sinking fund method of depreciation used for our Susquehanna nuclear plant, and other costs that were not reflected in rates until the base rate increase was granted," Hill said. He also noted that sales to residential customers were disappointing, declining by 1.3 percent compared to 1994.

For 1994, the nonrecurring charges included a $43 million after-tax charge against net income for a voluntary early retirement program and a $40 million after-tax charge against net income related to a re-evaluation of the book value of coal reserves held by a PP&L subsidiary. These two nonrecurring charges reduced earnings by a total of 54 cents per share.

For the fourth quarter of 1995, PP&L Resources reported earnings of 56 cents per share, compared to a loss of 5 cents per share in the comparable period of 1994.

Excluding one-time charges, earnings per share would have been 45 cents for the fourth quarter of 1995 and 46 cents for the fourth quarter of 1994.