PP&L, Inc., said Thursday (7/9) that a state Public Utility Commission decision to make only two minor changes to a seriously flawed restructuring order will likely force the company to file an appeal and other court challenges.

"While we plan to prudently review our options in light of this latest PUC action, challenges to this order are almost a certainty," said William F. Hecht, PP&L, Inc., chairman, president and chief executive officer. He added that the "extreme position being taken by the commission is endangering the financial viability of our company."

PP&L, Inc., has said previously that the PUC order would permit the company to recover only about $2.569 billion in transition costs. The administrative law judge who heard the case had recommended that the company be permitted to recover $4 billion.

"While we had very much hoped to avoid such legal action in this case, the commission leaves us no other option," Hecht said.

He said PP&L, Inc., will announce its next actions within a few days.

"The prospect of a protracted legal battle over restructuring is particularly troubling for PP&L, Inc., because we were one of the earliest proponents of customer choice in Pennsylvania," said Hecht. "We continue to support the concept, but we cannot accept this decision.

"This order arbitrarily prevents recovery of costs that have long ago been judged prudent by the commission and already are included in the low prices that PP&L, Inc., customers pay for electricity," said Hecht. "These costs of doing business remain, however, and must be borne by the company's shareowners."

Hecht added that the order, if left unchanged, also is likely to have a detrimental effect on PP&L, Inc., employees and the communities of central and eastern Pennsylvania.

Responding to the June 15 final order in its restructuring case, PP&L, Inc., had asked the PUC to reconsider and to correct a number of errors in its order. On Thursday, the commission corrected a few minor errors, but did not materially change the order.