EXHIBIT 18






February 1, 1994




Pennsylvania Power Company
1 East Washington Street
P.O. Box 891
New Castle, Pennsylvania  16103


RE:  Form 10-K Report for the Year Ended December 31, 1993


Gentlemen:

This letter is written to meet the requirements of Regulation S-K calling for
a letter from a registrant's independent public accountants whenever there
has been a change in accounting principle or practice.

As of January 1, 1993, for certain customers, the Company changed from
recording sales when billed to these customers based on a monthly meter
reading schedule to estimating and accruing the amount of sales associated 
with service provided after billing through the end of the accounting 
period.  According to management of the Company, this change was made to 
more closely match the Company's revenues with the services provided to 
customers.  This change in accounting will result in the Company accruing 
unbilled revenues for all customers at the end of each accounting period.

We are of the opinion that the Company's change in method of accounting is
an acceptable alternative method of accounting, which, based upon the 
reason stated for the change and our discussions with you, is also 
preferable under the circumstances in this particular case.  In arriving at
this opinion, we have relied on the business judgment and business planning
of your management.


                              Very truly yours,



                              ARTHUR ANDERSEN & CO.



New York, N.Y.