Beginning today (8/10), rates for PP&L, Inc.'s retail delivery customers in eastern and central Pennsylvania will drop by an average of 1 percent as a result of a financial transaction completed by the company.

Customer electric bills will reflect a rate reduction that stems from PP&L, Inc.'s securitization of a portion of its competition-related transition costs. Securitization, part of the Customer Choice transition process in Pennsylvania, permits PP&L to reduce its overall financing costs, producing rate reductions for customers.

"We are very pleased to announce that PP&L customers will receive another rate reduction as part of the transition to a competitive electricity generation marketplace in Pennsylvania," said Frank Long, PP&L, Inc.'s chief operating officer. PP&L customers also received an average 4 percent rate reduction for 1999.

"Customer Choice is bringing important benefits to all the residents of Pennsylvania, and this rate reduction is just one more example," said Long.

The savings from securitization are expected to reduce PP&L delivery customer bills by an average of about 1 percent through Dec. 31, 2008, Long said. The actual reduction will vary year by year in that period and also by customer class and level of use. The rate reduction will apply to all of PP&L's delivery customers, whether or not they buy their electricity generation from PP&L, Inc. or from another supplier.

More details on the rate reduction will be provided to customers through bill inserts beginning in mid-August.

PP&L has established a special toll-free number to answer questions about these changes. That number is available from 8 a.m. to 5 p.m. daily at 1-800-653-9205.