PP&L, Inc. said Wednesday (7/22) that it will be necessary to go forward with the elimination of 37 company jobs.

"We had hoped — in an expanding energy marketplace — to create new positions that could have provided opportunities for those 37 displaced employees. The recent Public Utility Commission action in our restructuring case, however, makes that impossible because we must take as many cost-cutting actions as possible now," said Frank Long, PP&L, Inc.'s executive vice president and chief operating officer.

Long said the 37 bargaining unit positions were identified as excess in 1997 but the individuals in those positions were placed in temporary jobs in the company.

"It will be necessary for us to start the internal placement process for the people who were in these positions," said Long. That process will begin next week. Long said it is unclear how many employees might ultimately be laid off as the result of the placement process.

Long said that elimination of additional positions is likely as the company continues its effort to reduce its costs.

"We expect additional job cuts as we intensify our continual examination of internal costs in all aspects of our operations. As we have said previously,it will be necessary to reduce our community and economic development efforts," said Long.

In the PP&L, Inc., restructuring case, a PUC administrative law judge recommended that the company be permitted to recover $4 billion in transition costs. PP&L, Inc., has said that the commission order would permit the company to recover only about $2.569 billion in transition costs.

Long emphasized that transition costs largely flow from required compliance with state and federal laws regarding taxes and the purchase of electricity from independent power producers. Other transition costs, he said, are the result of power plant construction expenditures to meet the needs of PP&L, Inc.'s customers. These costs were previously approved by the PUC for inclusionin the company's rates.