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: jrbiggar@papl.com



                                     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