Pennsylvania Power & Light Co. is participating in a retail competition pilot program sponsored by Orange and Rockland Utilities in New York.

It's the first time that PP&L is trying to sell energy to retail customers of another utility, and it's a sign of things to come as competition comes to the electric utility industry.

The New York Public Service Commission has encouraged Orange and Rockland and other New York utilities to conduct pilot programs as part of the agency's aggressive posture on competition. PP&L is one of many energy suppliers who responded to an Orange and Rockland ad in the New York Times seeking participants in the program.

The utility's largest industrial and commercial customers will be targeted first. Energy from PP&L would be sent to Orange and Rockland through a tie in the 500,000-volt transmission line network, or "wheeled" to Orange and Rockland through lines owned by other utilities.

Beginning next year, the program will be expanded to residential customers. It's likely that any energy sold by PP&L to residential customers of Orange and Rockland would be sold through a third party that would "aggregate" the load.

"We're going to be actively marketing to Orange and Rockland industrial and commercial customers," said Mike Peters, project manager-Marketing Planning. "We see this as an opportunity to gain some experience in retail competition, and as a way to increase revenues for PP&L."

Orange and Rockland serves 190,000 customers in an area of New York state northwest of New York City.