PP&L Inc. announced Friday (1/23) that it has entered into a joint arrangement with Conectiv Energy to supply Old Dominion Electric Cooperative with 60 megawatts of capacity.

Old Dominion, which has had a long business relationship with Delmarva Power, Conectiv Energy's parent company, announced in 1996 it would be seeking market prices for its power needs when its current partial requirements contract expired. In October 1996, Old Dominion issued a solicitation for 60 megawatts of capacity beginning in 1998, and lasting no longer than seven years.

PP&L and Delmarva, both members of the PJM power pool, decided to work together to develop a proposal to satisfy Old Dominion's needs. After the cooperative analyzed the bids it received, Old Dominion chose Delmarva and PP&L as its joint supplier. A contract was negotiated and submitted to the Federal Energy Regulatory Commission, which just recently approved it.

According to Old Dominion, the transition to wholesale and retail competition may provide additional opportunities to further reduce the cost of power to its members. By shortening the timeframe of its contract requirements, Old Dominion will have greater flexibility to take advantage of competitive rates in the future.

Old Dominion, based in Glen Allen, Va., is a wholesale provider to 12 electric distribution cooperatives, including three on the Delmarva Peninsula. Old Dominion's member systems serve more than 380,000 homes and businesses in Virginia, Maryland and Delaware.

Conectiv Energy is a division of Delmarva Power & Light Co., an investor-owned utility based in Wilmington, Del. Delmarva Power serves nearly 500,000 electricity customers and more than 100,000 natural gas customers in Delaware.

PP&L, Inc. based in Allentown, Pa., is an electric utility serving more than 1.2 million retail customers throughout Pennsylvania, and is among the top 20 wholesale marketers in the nation. It is a subsidiary of PP&L Resources, Inc.