Pennsylvania Power & Light Co. is continuing to go forward with its rate case against three eastern railroads after a ruling by the federal Surface Transportation Board that the case should not be delayed.

The board has denied a request by Conrail to hold the case in abeyance until merger proceedings involving Conrail are completed. PP&L's rate case also includes CSX Transportation Inc. and Norfolk Southern Corp., the railroads active in the merger proceedings with Conrail. CSX and Norfolk Southern took neutral positions on Conrail's request for a delay.

"We are going ahead with the case because of our need for fair and reasonable rates for our coal shipments from central Appalachia," said Michael W. Snovitch, manager of fossil fuel supply for PP&L.

The STB agreed with PP&L's argument that a delay in the rate case would have a detrimental effect on PP&L because the outcome of merger proceedings is uncertain, and even if the merger goes through, changes in the current proposal could be ordered.

Opening evidence in PP&L's rate case will be filed with the STB next month. PP&L is seeking reasonable rates for transporting low- sulfur coal from mines in West Virginia and Kentucky as part of its strategy for meeting requirements of the federal Clean Air Act.

PP&L's four bituminous coal-fired power plants, which burn about 8 million tons of coal a year, are captive to Conrail. The company currently has no competitive option for rail shipments of coal.

Shipments of low-sulfur coal from West Virginia and Kentucky require the services of two railroads. Norfolk Southern and CSX serve mines where the coal originates. They must carry the coal to an interchange point near the Pennsylvania-Maryland border, where it is picked up by Conrail for delivery to PP&L's power plants.

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