PP&L Inc. supports a regional approach to ozone reduction, and believes the Pennsylvania strategy is the best way to accomplish this goal while minimizing economic hardship on electric customers and shareowners.

"Fully one-third of the ozone that affects our region drifts in from outside our immediate area," said Lynn Ratzell, PP&L's manager-Environmental Management. "That's why it's so important to look at this problem as a broad, regional issue.

"The U.S. Environmental Protection Agency has proposed regulations that would severely limit nitrogen oxide from coal-fired power plants in 22 states including Pennsylvania," said Ratzell. "While we agree with the concept of regional reductions, we have asked the EPA to consider a more balanced approach that first requires states upwind of Pennsylvania to make nitrogen oxide reductions at similar levels and in the same time frame as reductions currently required in Pennsylvania.

"This is the approach suggested by the Pennsylvania Department of Environmental Protection, and we agree with them," Ratzell said.

During the public comment process, PP&L provided detailed comments to the EPA. The agency will consider all comments and issue final regulations later this year.

"We have been working very hard to reduce nitrogen oxide emissions," said Ratzell. Since 1990, PP&L has reduced these emissions by 45 percent at a cost of more than $100 million, and will have reduced emissions by more than 50 percent by next summer. The company's Martins Creek plant received a clean air award from the American Lung Association for nitrogen oxide reductions there.

According to the EPA, its proposal calls for a reduction of 85 percent from 1990 levels. PP&L believes a reduction of a lesser amount is an appropriate first step, after which scientific measurements should be made to determine whether further reductions are needed.

Ozone, an air pollutant, is formed when nitrogen oxide and volatile organic compounds react with each other on hot, sunny days. According to the Pennsylvania DEP, fully one-third of the ozone problem is due to volatile organic compounds emitted from cars, trucks and other similar sources. Ratzell noted that any comprehensive ozone policy must address these sources as well.

With respect to the electric generation industry, PP&L has suggested ways that the EPA could more equitably distribute the cost of reductions. And, the utility suggested that the EPA set a regional cap on nitrogen oxide, then let utilities trade emission allowances. This system -- patterned after the successful sulfur dioxide emission allowance system -- would ensure overall compliance while giving operators more flexibility to allow for the most cost-effective way to achieve reductions.