ALLENTOWN, Pa.---PP&L, Inc. said Tuesday (4/7) that a Public Utility Commission administrative law judge recommendation in its competition restructuring case is another important step forward in the transition to customer choice in Pennsylvania.

In his recommendation, Administrative Law Judge George Kashi generally found the PP&L plan to be "just, reasonable, balanced and in compliance with the intent" of the customer choice act. The one exception was on the company's transition cost claim, to which the judge made adjustments. The actual permitted transition cost recovery is not specifically stated in the recommendation.

"Pennsylvania clearly is a leader in the effort to provide customers with choices in their electricity supply," said William F. Hecht, PP&L's chairman, president and chief executive officer. "We believe today's recommendation takes us one important step closer to a competitive marketplace that will result in substantial benefits for customers and important economic development advantages for the commonwealth."

"While we are still reviewing the many complex details of the recommendation's impact on customers, the company and electricity competition in Pennsylvania, we are pleased that the judge found our proposal to be consistent with the customer choice legislation," said Hecht.

"PP&L estimates that it faces about $4.5 billion in transition costs as we move from the regulated marketplace to a competitive one,"said Hecht. "We recognize that there will be some sacrifices necessary to make this transition a smooth one, and our initial review is that thej udge has appropriately balanced the interests of consumers and marketplace competitors as well as the financial viability of PP&L."

Hecht pointed out that customer rates would not increase as the result of transition cost recovery. Under the law, rates may not exceed Jan. 1, 1997 levels.

Hecht said he believes that a full commission decision along the lines proposed by the judge would permit PP&L to continue to provide high-quality service to customers at low prices and to promote economic development and community development.

"We still have much work to do so that all Pennsylvanians can benefit from this important transition," said Hecht. "As we have been from the beginning of this process, we remain committed to partnering with state government to fulfill the promise of electricity customer choice."

PP&L, Inc. , a subsidiary of PP&L Resources, provides electricity delivery service to 1.2 million customers in eastern and central Pennsylvania; generates electricity; sells retail electricity throughout the state of Pennsylvania; and markets wholesale electricity in 22 states.