Oral arguments will be heard Thursday (10/31) before the Surface Transportation Board in Washington, D.C., on a pivotal issue in Pennsylvania Power & Light Co.'s pending rate case against Conrail.

The issue involves "bottleneck" railroads. Companies such as PP&L, whose power plants are served by only one "bottleneck" railroad, have no practical transportation alternatives. Conrail is the only railroad that currently serves PP&L power plants.

"Conrail has a monopoly over coal shipments within Pennsylvania to PP&L power plants. It's able to charge PP&L prices that are higher than they would be in a competitive situation," said Frank A. Long, PP&L executive vice president and chief operating officer.

By focusing on the "bottleneck" issue, PP&L hopes to limit Conrail's monopoly power and take advantage of competition among railroads.

"Reasonable and competitive rail rates are in the best interest of PP&L, coal suppliers and electricity consumers," Long said. "We are doing what we can to assure that rail rates become competitive so we can keep the cost of electricity down."

PP&L originally filed its complaint in 1994 over excessive rates Conrail proposed for transporting low-sulfur coal to PP&L power plants from mines served by railroads other than Conrail.

CSX and Norfolk Southern railroads are able to transport low- sulfur coal to existing interchange points, where they would transfer the coal to Conrail for delivery to PP&L power plants. PP&L is challenging Conrail's "bottleneck" rates from interchange points to the power plants, said Michael W. Snovitch, manager of fossil fuel supply for PP&L.

"We need rate relief from the Surface Transportation Board to provide reasonable rates for coal deliveries to our power plants, and to keep our coal supply options open," he said.

Having several coal supply options not only keeps the cost of electricity as low as possible, it also will help PP&L meet strict federal air pollution requirements that take effect in 2000.

A subsidiary of PP&L Resources, Inc., of Allentown, Pa., PP&L provides electricity service to 1.2 million customers in 29 counties of eastern and central Pennsylvania.