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Westmoreland Will Reduce
1994 Earnings From
 Westmoreland Energy 
Due to Adverse Court Decision
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Philadelphia, PA -- March 22, 1995 -- Westmoreland Coal Company 
(NYSE:WCX) announced today that its 1994 earnings will be reduced 
because the partnership which owns the Roanoke Valley I power plant, fifty 
percent of which is owned by Westmoreland Energy, Inc. with its 
subsidiaries, has created a reserve for a portion of its 1994 earnings.  This
is due to the recent decision of the Circuit Court of the City of Richmond, 
Virginia dismissing a complaint filed in 1994 by Westmoreland - LG&E 
Partners against Virginia Electric and Power Company to resolve a contract 
dispute.  The Roanoke Valley I power plant sells power to a division of 
Virginia Electric and Power Company under the disputed contract.  

The reserve will reduce 1994 earnings from Westmoreland Energy by 
$2,928,000. Of this amount $2,521,000 is attributable to earnings reported in
the second and third quarters of 1994.

Westmoreland continues to believe its interpretation of the contract is correct 
and is considering further action in light of this ruling to protect its
interests.

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Contact:  	R. Page Henley
		(215) 545-2500


f: legal/news/nrqtr.doc