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Pennsylvania Power & Light Company Business Information, Profile, and History

Two North Ninth Street
Allentown
Pennsylvania
18101
United States

History of Pennsylvania Power & Light Company

Pennsylvania Power & Light Company (PP & L) provides electricity to more than 2.5 million people living in a 10,000-square-mile area in eastern Pennsylvania. It is also involved in coal mining, refined-petroleum pipelines, and commercial and industrial building.

PP & L grew out of the consolidation of numerous small Pennsylvania electric utilities in the first two decades of the 20th century. The utilities included several small electric lighting companies formed in the 1880s in eastern Pennsylvania and the Edison Electric Illuminating Company of Sunbury, used by Thomas Edison to perfect central-station incandescent lighting in small cities and towns in Pennsylvania. Small electric companies proliferated at this time, and by 1900, 64 companies served 88 communities in the area PP & L later would serve.

In the 1910s a complicated series of mergers began consolidating the electric utilities into small regional companies. Pennsylvania Power & Light Company was formed in 1920 as a holding company for five territorially contiguous regional companies. PP & L, itself backed by another holding company called the Lehigh Power Securities Corporation, sold stocks and bonds to the public, but kept control of voting common stock of the utilities.

Like many other U.S. utilities, PP & L went through an important consolidation period in the 1920s, buying out other utilities, which in turn already had bought smaller utilities. It continued to expand its territory in this way, acquiring 5 utilities in 1923, 34 in 1928, and 21 in 1930, including the Edison Electric Company of Lancaster, Pennsylvania, one of the earliest U.S. electric companies. The early PP & L primarily supplied power for industry in Pennsylvania's coal-mining and steel-producing region, concentrated in the Lehigh River valley. By 1930, 70% of its power was used by industrial customers, and 45% of that went to coal-mining operations. PP & L also supplied small industry and agriculture in the Susquehanna River valley north of Harrisburg, capital of Pennsylvania. Allentown and Bethlehem were the largest cities in its territory, with populations of 90,000 and 60,000, respectively, in 1930. At this time PP & L's system consisted of a large territory with widely dispersed power plants, each with a relatively small network of transmission lines, and interconnections between the various systems.

PP & L and most other electric utilities were not greatly hurt by the Depression because of their status as protected, regulated monopolies. Most sales that were lost to declining industry were made up by increasing residential sales.

PP & L added hundreds of miles of high-voltage transmission lines to its system in the 1920s and 1930s, also building a 220,000-volt interconnection with two urban utilities, Philadelphia Electric Company and Public Service Electric & Gas Company of New Jersey. PP & L's industrial customers caused the company's load to peak in the morning, while the urban utilities' loads peaked in the late afternoon, when workers returned home. This led to an ideal power-sharing arrangement, although it required complex contracts to spell out which company would supply how much power under what circumstances.

PP & L took other steps to spread risks in its service area, shifting its emphasis from regions that had mined out their coal to regions with fresh coal seams. To encourage industrial use of power, the company charged industrial customers far lower rates than it charged residential and farm customers. Some political pressure was put on PP & L to change this practice, but it resisted, pointing out that it already encouraged rural electrification in other ways. PP & L had begun hooking up farmers rapidly in 1936, the year the U.S. government established the Rural Electrification Administration to make loans to farmers to create their own electric cooperatives. By 1939 57% of farms in PP & L territory had electricity, compared with a U.S. average of 28%.

In 1947 PP & L acquired two electric utilities and the Allentown, Pennsylvania, operations of another. By the following year the company had 487,000 customers, and revenue of $62 million. In 1949 and 1951, PP & L sold all its gas operations. It also sold its steam heating operations in Wilkes-Barre, Pennsylvania, in 1951, leaving it with steam operations in Harrisburg and Scranton, Pennsylvania. In 1953 it acquired Scranton Electric Company, and in 1955 Pennsylvania Water & Power Company. By 1955 it had about 7,000 employees, and operated in about 10,000 square miles of east central Pennsylvania. It supplied a population of 2.1 million people in a large number of communities including Allentown, Wilkes-Barre, Harrisburg, Lancaster, Bethlehem, Williamsport, Hazelton, Pottsville, Shenandoah, Shamokin, Mt. Carmel, Sunbury, and Scranton. The company owned one hydroelectric and eight steam power-generating stations and had 29,000 miles of transmission lines. Its principal fuel supply was purchased under 50-year contracts with coal companies based in Philadelphia and Reading, Pennsylvania.

PP & L spent about $142 million on new construction between 1954 and 1959, including the building of two new power-generating stations. It also spent about $4 million between 1958 and 1962 as its share of a joint project with Philadelphia Electric Company to develop a prototype nuclear power station. In 1961 the company built a new conventionally fueled power station at Brunner Island, Pennsylvania, with a capacity of 302,000 kilowatts. Between 1961 and 1965 the company reduced rates seven times. By 1964 29% of company electric revenue came from industrial customers. The company had begun pooling power with other companies in Pennsylvania, New Jersey, and Maryland. This interconnection had grown into one of the world's largest power pools, including many other electric utilities in a 48,700-square-mile area with a population of 18.4 million. In addition, PP & L planned $315 million in construction between 1965 and 1969, including two new power plants.

By 1972 PP & L owned seven steam, two hydroelectric, eleven combustion turbine, and five diesel-engine generating stations with a total capacity of about four million kilowatts. It announced plans to build a 2.2-million kilowatt nuclear generating station on the Susquehanna River between Wilkes-Barre and Bloomsburg, Pennsylvania, in the late 1970s.

PP & L began operating its own coal mines when commercial coal companies proved unable to meet the terms of PP & L's contracts. PP & L's ownership of mines protected the company from runaway fuel costs as well as interruptions in fuel supplies.

The power-sharing arrangement with Pennsylvania, New Jersey, and Maryland companies also was proving financially beneficial since PP & L was putting more electricity into the pool than it took out. In 1973 it sold 6.5 billion kilowatt-hours to other companies in the pool, and earned $67 million on revenue of $385 million. Escalating fuel prices and an economic recession following the oil embargo in 1973 and 1974 sharply cut the growth of power utilities. PP & L used coal for 96% of its fossil fuel needs. Much of that coal came from PP & L's own mines at below-market costs, helping to insulate the company from oil price increases. Even so, PP & L's sales growth dropped to 3% in 1974 from 7% in 1973. Power conservation was briefly in vogue, which further cut the demand for electric power.

In 1977 PP & L appointed an outsider as president when it named Robert K. Campbell, formerly with Western Electric, to the position. PP & L was considered one of the best-managed utilities in the United States, with a profit margin of 17%, compared to a U.S. industry average of 12%. Net income for 1978 was $149 million. In 1980 Standard Oil Company of Ohio signed an agreement with a PP & L subsidiary under which Standard mined coal on certain PP & L properties. In 1981 the Pennsylvania Public Utility Commission (PUC) approved a $101 million annual rate increase for PP & L that went into effect in 1982.

The company's Susquehanna nuclear power plant, delayed for years, was finally completed at a cost of more than $4 billion in 1982. In 1983 PP & L began the first of a series of incentive rates designed to increase usage and attract new industry. The central effort focused on pricing schemes that would sell more power during off-peak hours, increasing company revenue without requiring the construction of new power plants. The company also began consulting with industrial customers to enhance their uses for electricity. Encouraged by the initial response, PP & L expanded the program in 1987. PP & L also began testing new lighting systems designed to use light more efficiently. In the mid-1980s PP & L developed a lightweight steel transmission pole to replace its wooden poles, which were becoming expensive and scarce. In 1985 the Pennsylvania PUC approved only $121 million of a $330 million rate increase requested by the utility, boosting electricity prices about 8%. PP & L spent about $850 million on construction between 1987 and 1989.

The late 1980s were a good time for PP & L, with record sales and earnings in 1989, despite rate decreases and a softening economy in the northeastern United States. The company was following a strategy that stressed aggressive marketing, cost management, and increased sensitivity to customers. By 1990 PP & L's total generating capacity was 7.9 million kilowatts.

In 1990 the company decided to phase out its affiliated mining companies beginning in 1991, instead buying its coal through contract and on the open market. Mining its own coal had become more expensive than buying it on the open market and many of the company's mines were depleted. PP & L began working on plans to reduce its sulfur dioxide emissions by about 50% by 2000 because of pollution provisions in the 1990 Clean Air Act amendments. Also in 1990, PP & L began the $22 million renovation of two of the four coal-fired generating units at its Sunbury power plant. In addition, the company discovered that fuel oil was leaking into groundwater at its Brunner Island generating station, and that filters from that plant contained enough cadmium to be considered hazardous waste. Cleaning up these problems was expected to cost over $100 million during the next several years.

PP & L opened a new customer service office in Allentown as the beginning of a process of consolidating its customer service operations in a single location. Robert Campbell died in 1990 and John T. Kauffman became company president.

Principal Subsidiaries: CEP Group Inc.; Interstate Energy Company; Pennsylvania Mines Corporation; Rushton Mining Company; Tunnelton Mining Company; Realty Company of Pennsylvania; BDW Corporation; Green Hill Coal Company; Green Manor Coal Company; Lady Jane Collieries Incorporated; Safe Harbor Water Power Corporation (33%).

Related information about Pennsylvania

pop (2000e) 12 281 000; area 117 343 km²/45 308 sq mi. State in E USA, divided into 67 counties; the ‘Keystone State’; one of the original states of the Union, second to ratify the Federal Constitution, 1787; first settled by the Swedish, 1643; taken by the Dutch, and then by the British in 1664; region given by King Charles II to William Penn, 1681; scene of many battles in the American Revolution and Civil War; capital, Harrisburg; other chief cities, Philadelphia, Pittsburgh, Erie; Delaware R forms the E border; other rivers the Susquehanna, Allegheny, Monongahela, the latter two forming the Ohio R at Pittsburgh; major industrial state; coal mining, oil drilling (first oil-well in USA, 1859); steel and other metals, machinery, electrical equipment; dairy products, grain, vegetables, apples, hay, tobacco, grapes.

The Commonwealth of Pennsylvania (pronounced ) is a state in the northeastern part of the United States. prior to that, it was known as the Quaker Province,The Quaker Province in recognition of QuakerWilliam Penn, Quaker William Penn's First Frame of GovernmentFrame of Government constitution for Pennsylvania that guaranteed liberty of conscience. Penn knew of the hostilityDigital History: Persecution of the Quakers Quakers faced when they opposed rituals, oaths, violence, and ostentatious frippery.The Quaker Province 1681-1776

Pennsylvania has been known as the Keystone State since 1802,PHMC: State Symbols based in part upon its central location among the original Thirteen Colonies forming the United States. Pennsylvania, however is not only geographically the keystone state, but economically as well, having both the industry common to the North, making such wares as Conestoga wagonsLowell Tribune, March 26, 2002 and rifles,Lancaster rifle and the agriculture common to the South, producing feed, fiber, food, and tobacco.PHMC: Agriculture in Pennsylvania

Pennsylvania has 51 miles (82 km)National Parks Service: Our Fourth Shore of coastline along Lake Erie and 57 miles (92 km)NOAA Office of Ocean and Coastal Resources of shoreline along the Delaware Estuary. Philadelphia is home to a major seaport and shipyards on the Delaware River.Tour Philadelphia

Geography

Pennsylvania is 160 miles (290 km) north to south and 283 miles east to west.Pennsylvania geography Of 46,055 square miles, 44817 square miles are land, 490 square miles are inland waters and 749 square miles are waters of Lake Erie.2006 Statistical Abstract: Geography & Environment: Land and Land Use It is the 33rd largest state in the United States. The highest point of 3,213 feet (979 m) above sea level is at Mount Davis, the lowest point is at sea level on the Delaware River, and the approximate mean elevation is 1100 feet (336 meters).2006 Statistical Abstract: Geography & Environment:Extreme and Mean Elevations

Pennsylvania is in the Eastern time zone.Pennsylvania Time Zone

The original southern boundary of Pennsylvania was supposed to be at 40° North latitude,Penn's Charter but as a result of a bad faith compromise by Lord Baltimore during Cresap's War, the king's courts moved the boundary 20 miles southCecil County, Maryland to 39° 43' N. The city of Philadelphia, at 40°0'N 75°8'W,Places Named: Philadelphia would have been split in half by the original boundary. When a captive Cresap, a Marylander, was paraded through Philadelphia, he taunted the officers by announcing that Philadelphia was one of the prettiest towns in Maryland.

History

Before the state existed, the area was home to the Delaware (also known as Lenni Lenape), Susquehannock, Iroquois, Eriez, Shawnee, and other Native American tribes.Pennsylvania Indian tribes
In 1681, Charles II of England granted a land charterCharter for the Province of Pennsylvania to William Penn, one of the largest land grants to an individual in history.Quakers and the political process That land included both present-day Delaware and Pennsylvania ("Penn's Woods", named in honor of his father). He established government with two innovations that were much copied in the new world: the county commission, and freedom of religious conviction. Writer Murray Rothbard in his four-volume history of the U.S., Conceived in Liberty, refers to the years of 1681-1690 as "Pennsylvania's Anarchist Experiment."Pennsylvania's Anarchist Experiment

The first meeting of the thirteen colonies was the Stamp Act Congress in 1765, called at the request of the Massachusetts Assembly, but only 9 colonies sent delegates.Library of Congress timeline 1764-1765 John Dickinson of Philadelphia wrote the Declaration of Rights and Grievances that came out of the Stamp Act Congress - then followed it up with Letters from a Farmer in Pennsylvania, To the Inhabitants of the British Colonies, which were published in the Pennsylvania Chronicle between December 2, 1767, and February 15, 1768.Dickinson Letters When the Founding Fathers to convene in Philadelphia in 1774, 12 of the 13 colonies sent representatives to the First Continental Congress.Library of Congress timeline 1773-1774

The First Continental Congress drew up and signed the Declaration of Independence in Philadelphia,Library of Congress: Primary documents - The Declaration of Independence but when that city was captured by the British, the Continental Congress escaped westward, meeting at the Lancaster courthouse on Saturday, September 27, 1777, and then moving to York, where they drew up the Articles of Confederation, forming the independent colonies into a new nation. Later, the Constitution was written, Philadelphia was once again chosen to be cradle to the new American Nation.Nine Capitals of the United States

Pennsylvania became the second state to ratify the U.S. Constitution on December 12, 1787,Pennsylvania ratifies the Constitution of 1787 five days after Delaware became the first.

James Buchanan, of Lancaster, Pennsylvania, was the only bachelor President of the United States.James Buchanan White House biography The Battle of Gettysburg - the major turning point of the Civil War - took place near Gettysburg.Battle of Gettyburg

Demographics

FactFinder: Census 2000 Demographic Profile Highlights

The five largest ancestry groups reported in Pennsylvania are: German(27.66%), Irish(17.66%), Italian(12.82%), English(8.89%) and Polish.American Community Survey 2003 Multi-Year Survey for Pennsylvania

Of all the colonies, only in Rhode Island was religious freedom so secure as in Pennsylvania - and one result was an incredible religious diversity, one which continues to this day.Religious diversity in Pennsylvania

There were 7,116,348 religious adherents in Pennsylvania in 2000, following 115 different faiths. Heinz.In all, Pennsylvania is home to 49 Fortune 500 companies.

The largest private employer in the state is Wal-Mart, followed by the University of Pennsylvania, United Parcel Serviceand Giant Food. only Massachusetts, Rhode Islandand Vermontoutrank Pennsylvania.Although Pennsylvania is known as a coalstate, miningonly amounts to 0.6% of the state's economy, compared to 1.3% for the country as a whole.

Agriculture

Pennsylvania ranks 19^thoverall in agricultural production,Agricultural Census 2002but 3^rdin christmas trees and layer chickens, 4^thin nurseryand sod, milk, cornfor silage, and horseproduction. Only Connecticut, Delaware and Iowa have lower numbers, and Nevada gets a whopping 14.2% of their GSP that way.Philadelphia draws touristsPhiladelphia tourismto see the Liberty Bell, Independence Hall, the Franklin Instituteand the steps of the Philadelphia Museum of Art, while The PoconosPoconos tourismattract honeymooners, golfers and fishermen, and the Delaware Water GapDelaware Water Gapappeals to boaters, hikers, and nature lovers.

The state government launched an extensive tourism campaign in 2003 under the direction of the Pennsylvania Department of Community and Economic Development. Prior to that, the province of Pennsylvania was governed for a century by a Frame of Government, of which there were four versions: 1682, 1683, 1696, and 1701.
The legislature met in the general Philadelphia area, but had no regular place of meeting for half a century before starting to meet regularly in Independence Hall in Philadelphia for 63 years.Pennsylvania's CapitalsThey needed to move to a more central location - the Paxton Boyshad made them aware of that in 1763 - and finally in 1799, they moved to the Lancaster Courthouse in 1799,and finally to Harrisburgin 1812.The legislature met in the old Dauphin CountyCourt House until December 1821,when the Redbrick Capitolwas finished. It burned down in 1897, presumably due to a faulty flue.Until the present capitol was finished in 1907, the legislature met at Grace Methodist Church on State Street, which still stands.
The new Capitoldrew rave reviews.Its dome was inspired by the great domes of St. Peter's in Rome and the United States Capitol.If PresidentTheodore Rooseveltcalled it the "the most beautiful state Capitol in the nation", and said "it's the handsomest building I ever saw" at the dedication, one might expect a politicians to glurge at a dedication, but in 1989, though, the New York Timespraised the Pennsylvania capitol as "grand, even awesome at moments, but it is also a working building, accessible to citizens... a building that connects with the reality of daily life."

The current Governoris Ed Rendell, a former head of the Democratic National Committeewho began as a popular District Attorney, and mayorin Philadelphia.Official bio of Ed RendellThe other elected officials composing the executive branch are the Lieutenant Governor Catherine Baker Knoll, Attorney General Tom Corbett, Auditor General Jack Wagner, and State Treasurer .State Elected Officials

William Penn's Frame of Government set up a unicameral legislature, and did not switch to a bicameral legislatureuntil the state's constitution of 1790.Pennsylvania State ArchivesThe General Assemblyincludes 50 SenatorsPennsylvania Senatorsand 203 Representatives.Pennsylvania House of RepresentativesRobert C. It also has original jurisdictionto review warrants for wiretapsurveillance.The Commonwealth Court is limited to appeals from final orders of certain state agencies and certain designated cases from the Courts of Common Pleas.The Supreme Court of Pennsylvaniais the final appellate court. Pennsylvania's U.S. Congressmenare Robert Brady(1^st)), Chaka Fattah(2^nd)), Phil English(3^rd)), Melissa Hart(4^th)), John E. Peterson(5^th)), Jim Gerlach(6^th)), Curt Weldon(7^th)), Michael Fitzpatrick(8^th)), Bill Shuster(9^th)), Don Sherwood(10^th), Paul E. Kanjorski(11^th), John Murtha(12^th), Allyson Schwartz(13^th), Mike Doyle(14^th), Charlie Dent(15^th), Joe Pitts(16^th), Tim Holden(17^th), Tim Murphy(18^th), and Todd Russell Platts(19^th).Congressional Directory Online

Important cities and municipalities

Municipalities in Pennsylvania are incorporated as cities, boroughs, or townships.

In 1870, Bloomsburg, the county seat of Columbia County, and in 1975, McCandless, Pennsylvania, in Allegheny Countywere incorporated as towns by special act of the legislature. BloomsburgMcCandless

Important cities in Pennsylvaniainclude Allentown, Altoona, Bethlehem, Chester, Easton, Erie, Harrisburg, Lancaster, New Castle, Philadelphia, Pittsburgh, Reading, Scranton, Wilkes-Barre, Williamsport, and York.

Although not legally structured as cities, the boroughs of Bethel Park, Monroeville, Norristown, Plumand State Collegehave significant populations.

Recreation

Pennsylvania is home to the nation's first zoo, the Philadelphia Zoo. www.philadelphiazoo.org/index.php?id=10_2_1Other notable zoos include Claws 'n Paws, Erie Zoo, Pittsburgh Zoo, and ZOOAMERICA.

Pennsylvania offers a number of notable amusement parks, including Dorney Park & Wildwater Kingdom, Dutch Wonderland, DelGrosso Amusement Park , Hersheypark, Idlewild Park, Kennywood, Knoebels, Lakemont Park, Sandcastle, Sesame Place, and Waldameer Park.

Sports

Pennsylvania is home to many professional sports teams, including the Philadelphia Philliesand Pittsburgh Piratesof Major League Baseball, the Philadelphia Eaglesand Pittsburgh Steelersof the National Football League, the Philadelphia 76ersof the National Basketball Association, and the Philadelphia Flyersand Pittsburgh Penguinsof the National Hockey League. Notable Racetracks in Pennsylvania include the Jennerstown Speedway in Jennerstown, the Lake Erie Speedway in North East, the Mahoning Valley Speedway in Lehighton, the Motordome Speedway in Smithton, the Mountain Speedway in St. Johns, the Nazareth Speedway in Nazareth; and the Pocono Racewayin Long Pond, which is home both the Pennsylvania 500and the Pocono 500.

Race courses for horses in Pennsylvania consist of Ladbroke at the Meadows, in Pittsburgh, Mohegan Sun at Pocono Downs, in Wilkes-Barreand Summerside Raceway in Summersidewhich offer harness racing, and Penn National Race Course in Grantvilleand Philadelphia Park, in Bensalemwhich offer thoroughbred racing. Smarty Jones, the 2004 Kentucky Derbywinner, had Philadelphia Park as his home course.

Arnold Palmer, one of the leading 20th-century pro golfers, comes from Latrobe, and Jim Furyk, one of the leading 21-century pro golfers, grew up near in Lancaster. The three companies that define the U.S. potato chip industry are Utz Quality Foodswhich started making chips in Hanover, Pennsylvaniain 1921, Wise Snack Foodswhich started making chips in Berwickin 1921, and Lay's Potato Chips, a Texascompany. Other notable companies include Benzel's Pretzelsand Boyer Candies, which is well known for its Mallow Cups.

Among the regional foods associated with Pennsylvania are the Philadelphia cheesesteakand the hoagie, the soft pretzel, Italian water ice, scrapple, Tastykake, and the stromboli. Many restaurateurs offer Chinese, Italian, Mexican, Indian, Japanese, Korean, Thai, Turkish, Pakistani, Russianand Amishdining.

State symbols

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State animal: White-tailed DeerState Symbols
State beverage: Milk
State cookie: Chocolate ChipSB 320 (2003)
State game bird: Ruffed Grouse
State capital: HarrisburgState Symbols
State dog: Great Dane
State fish: Brook Trout
State flower: Mountain Laurel
State fossil: the trilobite Phacops rana
State insect: Firefly

State number: 2^nd
State song: Pennsylvania (Formerly Hail, Pennsylvania!, until 1990)
State tree: Hemlock
State toy: SlinkySlinky history
State ship: United States Brig Niagara
State electric locomotive: Pennsylvania Railroad GG1 #4849 Locomotive
State steam locomotive: Pennsylvania Railroad K4s Locomotive
State beautification plant: Crown Vetch
State soil: Hazleton

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Additional topics

Company HistoryElectricity & Utilities

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