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) March 7, 1996
PENNSYLVANIA POWER COMPANY
(Exact name of Registrant as specified in its charter)
Pennsylvania Power Company 1-3491 25-0718810
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
1 E. Washington St., P. O. Box 891, New Castle, PA 16103
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: 412-652-5531
Item 5. Other Events
On March 7, 1996, Pennsylvania Power Company (Company), a
wholly owned subsidiary of Ohio Edison Company, filed a petition
and application with the Pennsylvania Public Utility Commission for
authority to implement its Rate Stability and Economic Development
Plan (Plan). The Plan provides, subject to the happening of certain
significant events, for the freezing of the Company's rates until
May 1, 2006, and the elimination of the Company's energy cost rate
as a separate component of customer charges. Under the Plan energy
costs will be rolled into the Company's base electric rates at
their projected 1996-97 level. The Plan is also designed to enhance
and accelerate economic development within the Company's service
area and to provide the Company's customers with long-term
competitive pricing for energy services.
A major component of the Plan is the Company's commitment to
reduce fixed costs during the ten-year period by implementing
regulatory accounting modifications, such as accelerating
depreciation of generating assets and increasing amortization of
regulatory assets which are being recovered from customers. It is
expected that over the ten-year period the Company's costs
associated with depreciation and such amortization will be
$330,000,000 higher than they would have been in the absence of the
Plan. Additionally, the Plan provides for an increase in
contributions to the Company's nuclear decommissioning trusts
amounting to $28,000,000 over the ten-year period. The entire
$358,000,000 would be recovered through current rates. The Company
has established aggressive targets to reduce costs and increase
revenue opportunities through its performance initiatives program.
Achieving those targets enables the Company to implement these
modifications and preserve the opportunity to maintain a reasonable
return.
- 1 -
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.
PENNSYLVANIA POWER COMPANY
/s/R. P. Wushinske
--------------------------
R. P. Wushinske
Vice President and Treasurer
Dated: March 8, 1996
