A federal judge has ruled in favor of Pennsylvania Power & Light Co., dismissing an antitrust lawsuit brought by Schuylkill Energy Resources, Inc., a Schuylkill County non-utility generator.

Chief Judge Edward Cahn of the Eastern District of Pennsylvania ruled Tuesday (5/21) that Schuylkill Energy had failed to allege any "antitrust injury" for which a lawsuit can be brought under federal antitrust laws.

"This is a significant decision that soundly rejects Schuylkill Energy's antitrust case against PP&L," said Robert J. Grey, PP&L senior vice president, general counsel and secretary. "Judge Cahn recognized that Schuylkill's complaint did not allege injury to competition or consumer welfare."

Schuylkill filed the lawsuit in August 1995, alleging that PP&L's curtailment of electrical output from Schuylkill during "minimum generation emergencies" on the regional power pool violates the federal antitrust laws.

In his order, Judge Cahn found that the injuries alleged by Schuylkill are "insufficient as a matter of law to establish a violation of federal antitrust law."

A minimum generation emergency is declared by the power pool when low amounts of electricity are being used by customers. In order to ensure the reliability and safety of the power system during those times, members of the power pool must cut-back or shut down power generators.

In December, PP&L 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.

"In an effort to resolve the minimum generation issue, PP&L is seeking PUC approval for revisions to its non-utility generation curtailment procedures," Grey said. "If approved, PP&L would purchase additional generation from the non-utility generators."

Tuesday's decision is unrelated to PP&L's pending state court action filed against Schuylkill in Lehigh County, Pennsylvania, for breach of contract, fraud and conspiracy.