A Lehigh County judge has ordered a Pennsylvania Power & Light Co. lawsuit to continue and has required a Schuylkill County independent power producer and its affiliate to provide documents long sought by PP&L in an ongoing dispute over the rate paid for the generator's electricity.

Lehigh County Judge Thomas A. Wallitsch recently ordered Schuylkill Energy Resources Inc. and Reading Anthracite Co. to provide PP&L with information in response to all but one of PP&L's 40 requests for documents. Judge Wallitsch also dismissed all of Schuylkill and Reading's objections to PP&L's lawsuit against the two companies.

"We are pleased with Judge Wallitsch's decision," said Jesse Dillon, a PP&L counsel. "One of the key issues in this dispute has been Schuylkill and Reading's reluctance to provide relevant documentation. This decision orders Schuylkill and Reading to provide information relating to the rate payable under the PP&L contract, as well as compliance with Federal Energy Regulatory Commission requirements."

PP&L has a contract to purchase electricity from Schuylkill Energy, a non-utility generator that operates an 80-megawatt power plant in Schuylkill County. Under the terms of the contract, if the plant operates as an anthracite culm-fired cogeneration facility, Schuylkill is entitled to a higher payment from PP&L for its electricity.

PP&L has been asking Schuylkill and Reading since June 1995 to provide evidence that Schuylkill deserves to be paid a higher contract rate for electricity.

Payment of a lower contract rate would reduce energy costs for PP&L customers by about $10 million a year.

PP&L's customers pay the cost of PP&L's purchases from non- utility power producers such as Schuylkill Energy through the Energy Cost Rate on electric bills. Under federal law, electric utilities are required to buy power from non-utility generators.

PP&L had proposed to begin paying Schuylkill the lower rate for electricity May 1. Judge Wallitsch temporarily barred PP&L from doing that until PP&L went to the FERC, but required Schuylkill to post a $5 million bond until the issue is resolved. The posting of a bond provides some protection to PP&L's customers in the event that PP&L ultimately wins the case.

The case, in which PP&L alleges breach of contract, fraud and conspiracy, is still pending in Lehigh County court.