<PAGE>
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 2, 1997
PP&L Resources, Inc.
___________________________________________________________________________
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 1-11459 23-2758192
___________________________________________________________________________
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification
No.)
Pennsylvania Power & Light Company
___________________________________________________________________________
(Exact name of registrant as specified in its charter)
PENNSYLVANIA 1-905 23-0959590
___________________________________________________________________________
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification
No.)
TWO NORTH NINTH STREET, ALLENTOWN, PA. 18101-1179
___________________________________________________________________________
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code 610-774-5151
___________________________________________________________________________
(Former name or former address, if changed since last report.)
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Item 7. Financial Statements, Pro Forma Financial
Information and Exhibits
On April 1, 1997, Pennsylvania Power & Light
Company ("PP&L" or "the Company") filed its restructuring
plan with the Pennsylvania Public Utility Commission
pursuant to the provisions of Pennsylvania's Electricity
Generation Customer Choice and Competition Act (the "Act").
In this regard, the following Exhibit is submitted herewith:
(c) Exhibits
99.1 A letter which the Company distributed to members
of the investment community on May 2, 1997,
updating certain information regarding the filing
and the financial and accounting implications of
the Act for the Company.
Certain statements contained in the attached
Exhibit 99.1 are "forward-looking statements" within the
meaning of the securities laws. Although the Company
believes that the expectations reflected in such statements
are reasonable, it can give no assurance that such
expectations will prove to have been correct.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
PP&L RESOURCES, INC. AND
PENNSYLVANIA POWER & LIGHT COMPANY
By: /s/ R. E. Hill
R. E. Hill
Senior Vice President-Financial
(PP&L Resources, Inc. and Pennsylvania
Power & Light Company)
Date: May 2, 1997
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Exhibit 99.1
(Company logo appears here)
Pennsylvania Power & Light Company
Two North Ninth Street
Allentown, PA 18101
610/774-5151
John R. Biggar
Vice President - Finance
610/774-5613
FAX: 610/774-5106
Email: [email protected]
May 2, 1997
Members of the Investment Community:
Re: PP&L's Restructuring Plan
In a letter dated April 1, 1997, I provided you with
information concerning the Restructuring Plan filed by
Pennsylvania Power & Light Company with the Pennsylvania Public
Utility Commission pursuant to Pennsylvania's Electricity
Generation Customer Choice and Competition Act ("Customer Choice
Act").
As set forth in the Restructuring Plan, the Company's
net mitigated stranded cost claim is $4.6 billion. My April 1
letter stated that, by applying the competitive transition charge
("CTC") proposed by the Company in its Restructuring Plan (which
is restricted by the rate cap provisions of the Customer Choice
Act), the Company anticipated collecting $4.2 billion of its
stranded costs through the end of the transition period on
December 31, 2005.
As a result of the ongoing discovery process involved
in the PUC proceeding, the Company has revised the market price
for generation and sales forecasts used to determine the amount
of stranded costs that could be recovered through the CTC. Using
the revised market price for generation and sales forecasts, and
giving effect to the rate cap provisions of the Customer Choice
Act, the Company now anticipates collecting $4.0 billion of its
stranded costs.
Based on these projections, the difference between the
Company's projection of stranded costs and the amount the Company
collects through the CTC -- about $600 million -- would be
reflected as lower cash flow to the Company after the transition
period than would have occurred with continued regulated rates.
As I noted in my April 1 letter, this difference does not
represent an estimate of an exposure to an accounting write-off.
If you have any questions concerning the Restructuring
Plan filed by the Company with the PUC on April 1, please feel
free to call Tim Paukovits, our Investor Relations Manager
(610/774-4124) or me (610/774-5613).
Sincerely,
/s/ John R. Biggar
