A three-judge federal appeals court panel has upheld a lower court's dismissal of an antitrust lawsuit brought by an independent power producer against Pennsylvania Power & Light Co.

In the ruling, judges for the U.S. Third Circuit Court of Appeals in Philadelphia said Schuylkill Energy Resources, Inc., is not a competitor of PP&L, and PP&L's conduct did not create "injury" to Schuylkill Energy Resources under the antitrust laws.

"For the second time, a federal court has found that Schuylkill Energy Resources is PP&L's supplier, not PP&L's competitor, and that PP&L's generation curtailment policy does not create an injury of the type the antitrust laws were intended to prevent," said Robert J. Grey, PP&L senior vice president, general counsel and secretary.

Schuylkill Energy Resources operates an 80,000-kilowatt power plant in Schuylkill County. The plant burns anthracite waste, also called culm, to generate steam and produce electricity.

The independent power producer alleged that PP&L violated the antitrust laws by curtailing purchases from the power plant during "minimum generation emergencies" declared by the regional power pool.

During these conditions, declared when consumer demand for electricity is low, the power pool requires members to reduce power plant output or shut down generating units to ensure the safety and reliability of the electrical supply system.

"The court did not agree with the claim that the curtailment policy harmed competition, noting that both law and contract prohibit Schuylkill Energy Resources from competing with PP&L," Grey said.

Pennsylvania Power & Light Co. — a subsidiary of PP&L Resources, Inc., of Allentown -- provides electric service to 1.2 million homes and businesses in 29 counties of eastern and central Pennsylvania.