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Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning March 1, 1996 and Ending December 31, 1996
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
GPU GENERATION, INC.
(Exact Name of Reporting Company)
A Subsidiary Service Company
("Mutual" or "Subsidiary")
Date of Incorporation April 11, 1994 If not Incorporated, Date of
Organization
State or Sovereign Power under which Incorporated or Organized Pennsylvania
1001 Broad Street
Location of Principal Executive Offices of Reporting Co. Johnstown, PA 15907
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
1001 Broad Street
R. J. Vodzack Comptroller & Chief Accounting Officer Johnstown, PA 15907
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by Reporting
Company:
GPU, INC.
<PAGE>
1
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing.--Rule 94 provides that on or before the first day of
May in each calendar year, each mutual service company and each subsidiary
service company as to which the Commission shall have made a favorable finding
pursuant to Rule 88, and every service company whose application for approval
or declaration pursuant to Rule 88 is pending shall file with the Commission
an annual report on Form U-13-60 and in accordance with the Instructions for
that form.
2. Number of Copies.--Each annual report shall be filed in duplicate.
The company should prepare and retain at least one extra copy for itself in
case correspondence with reference to the report become necessary.
3. Period Covered by Report.--The first report filed by any company
shall cover the period from the date the Uniform System of Accounts was
required to be made effective as to that company under Rules 82 and 93 to the
end of that calendar year. Subsequent reports should cover a calendar year.
4. Report Format.--Reports shall be submitted on the forms prepared by
the Commission. If the space provided on any sheet of such form is
inadequate, additional sheets may be inserted of the same size as a sheet of
the form or folded to such size.
5. Money Amounts Displayed.--All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of
dollars or in hundred thousands of dollars, as appropriate and subject to
provisions of Regulation S-X (S210.3-01(b)).
6. Deficits Displayed.--Deficits and other like entries shall be
indicated by the use of either brackets or a parenthesis with corresponding
reference in footnotes. (Regulation S-X, S210.3-01(c))
7. Major Amendments or Corrections.--Any company desiring to amend or
correct a major omission or error in a report after it has been filed with the
Commission shall submit an amended report including only those pages,
schedules, and entries that are to be amended or corrected. A cover letter
shall be submitted requesting the Commission to incorporate the amended report
changes and shall be signed by a duly authorized officer of the company.
8. Definitions.--Definitions contained in Instruction 01-8 to the
Uniform System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February 2,
1979 shall be applicable to words or terms used specifically within this Form
U-13-60.
9. Organization Chart.--The service company shall submit with each
annual report a copy of its current organization chart.
10. Methods of Allocation.--The service company shall submit with each
annual report a listing of the currently effective methods of allocation being
used by the service company and on file with the Securities and Exchange
Commission pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed.--The
service company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use of capital billed during the calendar year.
<PAGE>
2
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS Page
Number
Description of Schedules and Accounts Schedule or Account
Number
COMPARATIVE BALANCE SHEET Schedule I 4-5
SERVICE COMPANY PROPERTY Schedule II 6-7
ACCUMULATED PROVISION FOR DEPRECIATION
AND AMORTIZATION OF SERVICE COMPANY PROPERTY Schedule III 8
INVESTMENTS Schedule IV 9
ACCOUNTS RECEIVABLE FROM ASSOCIATE
COMPANIES Schedule V 10
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 11
STORES EXPENSE UNDISTRIBUTED Schedule VII 12
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 13
MISCELLANEOUS DEFERRED DEBITS Schedule IX 14
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES Schedule X 15
PROPRIETARY CAPITAL Schedule XI 16
LONG-TERM DEBT Schedule XII 17
CURRENT AND ACCRUED LIABILITIES Schedule XIII 18
NOTES TO FINANCIAL STATEMENTS Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
ANALYSIS OF BILLING - ASSOCIATE COMPANIES Account 457 21
ANALYSIS OF BILLING - NONASSOCIATE COMPANIES Account 458 22
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE
AND NONASSOCIATE COMPANIES Schedule XVI 23
SCHEDULE OF EXPENSE BY DEPARTMENT OR
SERVICE FUNCTION Schedule XVII 24-25
DEPARTMENTAL ANALYSIS OF SALARIES - 26
OUTSIDE SERVICES EMPLOYED - 27
EMPLOYEE PENSIONS AND BENEFITS - 28
GENERAL ADVERTISING EXPENSES - 29
MISCELLANEOUS GENERAL EXPENSES - 30
LEASE/RENTALS - 31
TAXES OTHER THAN INCOME TAXES Account 408 32
DONATIONS Account 426.1 33
OTHER DEDUCTIONS Account 426.5 34
NOTES TO STATEMENT OF INCOME Schedule XVIII 35
<PAGE>
3
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS Page
Number
Description of Reports or Statements
ORGANIZATION CHART 36
METHODS OF ALLOCATION 37
ANNUAL STATEMENT OF COMPENSATION FOR USE 38
OF CAPITAL BILLED
VENTURE DISCLOSURES 39
FINANCIAL DATA SCHEDULE - FILED VIA EDGAR
NOTE: Dollar figures in this report are shown in thousands unless otherwise
noted.
<PAGE>
<TABLE>
4
ANNUAL REPORT OF GPU GENERATION, INC.
<CAPTION>
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior year.
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
CURRENT PRIOR (A)
SERVICE COMPANY PROPERTY
<S> <C> <C> <C>
101 Electric plant in service (Schedule II) $ - $ -
101.1 Property under capital leases (Schedule II) $ - $ -
107 Construction work in progress (Schedule II) - -
Total Property - -
108 Less accumulated provision for depreciation
of electric utility plant (Schedule III) - -
Net Service Company Property - -
INVESTMENTS
123 Investment in associated companies (Schedule IV) - -
124 Other investments (Schedule IV) - -
128 Other Special Funds (Schedule IV) 456 -
Total Investments 456 -
CURRENT AND ACCRUED ASSETS
131 Cash - -
134 Other special deposits 300 -
135 Working funds 55 -
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Other accounts receivable 17,478 -
144 Accumulated provision for uncollectible
accounts - -
146 Accounts receivable from associated
companies (Schedule V) 66,231 -
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Plant materials and operating supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments - -
174 Miscellaneous current and accrued
assets (Schedule VIII) - -
Total Current and Accrued Assets 84,064 -
DEFERRED DEBITS
181 Unamortized debt expense - -
183 Preliminary survey and investigation charges - -
184 Clearing accounts (122) -
186 Miscellaneous deferred debits (Schedule IX) 645 -
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 8,042 -
Total Deferred Debits 8,565 -
TOTAL ASSETS AND OTHER DEBITS $93,085 $ -
<PAGE>
5
ANNUAL REPORT OF GPU GENERATION, INC.
<CAPTION>
SCHEDULE I - COMPARATIVE BALANCE SHEET
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
CURRENT PRIOR (A)
PROPRIETARY CAPITAL
<S> <C> <C> <C>
201 Common stock issued (Schedule XI) $ 50 $ -
211 Miscellaneous paid-in-capital (Schedule XI) - -
215 Appropriated retained earnings (Schedule XI) (127) -
216 Unappropriated retained earnings (Schedule XI) - -
Total Proprietary Capital (77) -
LONG-TERM DEBT
223 Advances from associated companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) - -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
Total Long-term Debt - -
CURRENT AND ACCRUED LIABILITIES
231 Notes payable - -
232 Accounts payable 48,027 -
233 Notes payable to associated
companies (Schedule XIII) - -
234 Accounts payable to associated
companies (Schedule XIII) 6,352 -
236 Taxes accrued 3,174 -
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable 292 -
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 22,189 -
243 Obligations under capital leases-current - -
Total Current and Accrued Liabilities 80,034 -
DEFERRED CREDITS & OTHER NON-CURRENT LIABILITIES
227 Obligations under capital lease - non-current - -
228.2 Accumulated provision for injuries and damages 1,165 -
228.3 Accumulated provision for pensions and benefits 10,898 -
253 Other deferred credits 1,065 -
255 Accumulated deferred investment tax credits - -
Total Deferred Credits & Other
Non-Current Liabilities 13,128 -
282 ACCUMULATED DEFERRED INCOME TAXES - -
TOTAL LIABILITIES AND PROPRIETARY
CAPITAL $93,085 $ -
(A) Began official operations on March 1, 1996 after receiving SEC approval.
<PAGE>
6
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
<CAPTION>
SCHEDULE II - SERVICE COMPANY PROPERTY
BALANCE AT RETIREMENTS OTHER BALANCE AT
BEGINNING ADDITIONS OR CHANGES 1/ CLOSE OF
DESCRIPTION OF YEAR SALES YEAR
SERVICE COMPANY PROPERTY
<S> <C> <C> <C> <C> <C>
Account
301 ORGANIZATION $ - $ - $ - $ - $ -
302 FRANCHISES AND
CONSENTS - - - - -
303 MISCELLANEOUS
INTANGIBLE PLANT - - - - -
389 LAND AND LAND
RIGHTS - - - - -
390 STRUCTURES AND
IMPROVEMENTS - - - - -
391 OFFICE FURNITURE
AND EQUIPMENT 2/ - - - - -
392 TRANSPORTATION
EQUIPMENT 2/ - - - - -
397 COMMUNICATION
EQUIPMENT 2/ - - - - -
398 MISCELLANEOUS
EQUIPMENT 2/ - - - - -
399 OTHER TANGIBLE
PROPERTY 3/ - - - - -
SUB-TOTAL - - - - -
101.1 PROPERTY UNDER
CAPITAL LEASES 4/ - - - - -
107 CONSTRUCTION WORK
IN PROGRESS 5/ - - - - -
TOTAL $ - $ - $ - $ - $ -
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
N/A
<PAGE>
7
SCHEDULE II - CONTINUED
2/ SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING
THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
<CAPTION>
BALANCE AT
SUBACCOUNT DESCRIPTION ADDITIONS CLOSE OF
YEAR
<S> <C> <C> <C>
391.X - N/A - -
392.X - N/A - -
397.X - N/A - -
398.X - N/A - -
TOTAL $ - $ -
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
N/A
4/ DESCRIBE PROPERTY UNDER CAPITAL LEASES:
N/A
5/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
N/A
<PAGE>
8
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
<CAPTION>
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
BALANCE AT ADDITIONS BALANCE
BEGINNING CHARGED OTHER CHANGES CLOSE OF
DESCRIPTION OF YEAR TO RETIREMENTS ADD (DEDUCT)1/ YEAR
ACCOUNT 403
<S> <C> <C> <C> <C> <C>
Account
301 ORGANIZATION $ - - - - $ -
302 FRANCHISES AND
CONSENTS - - - - -
303 MISCELLANEOUS
INTANGIBLE PLANT - - - - -
389 LAND AND LAND
RIGHTS - - - - -
390 STRUCTURES AND
IMPROVEMENTS - - - - -
391 OFFICE FURNITURE
AND EQUIPMENT - - - - -
392 TRANSPORTATION
EQUIPMENT - - - - -
397 COMMUNICATION
EQUIPMENT - - - - -
398 MISCELLANEOUS
EQUIPMENT - - - - -
399 OTHER TANGIBLE
PROPERTY - - - - -
$ - - - - $ -
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
N/A
</TABLE>
<PAGE>
9
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments", state each investment
separately, with description, including, the name of issuing
company, number of shares or principal amount, etc.
Under Account 128, "Other Special Funds", state each
investment separately, with description, including, the name
of issuing company, number of shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments", list each
investment separately.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE OF
OF YEAR YEAR
ACCOUNT 123 - INVESTMENT IN ASSOCIATE COMPANIES
NONE
ACCOUNT 124 - OTHER INVESTMENTS
NONE
ACCOUNT 128 - OTHER SPECIAL FUNDS
Rabbi Trust $ - $ 370
Health Care Reserve -
Keystone Health Plan Mgmt. Co.
(Central Claim Deposit Reserve) - 86
- 456
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
NONE
TOTAL $ - $ 456
<PAGE>
10
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable
from each associated company. Where the service company has
provided accommodation or convenience payments for associated
companies, a separate listing of total payments for each
associated company by subaccount should be provided.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE OF
OF YEAR (A) YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATED
COMPANIES
JERSEY CENTRAL POWER & LIGHT COMPANY $ - $ 36,188
METROPOLITAN EDISON COMPANY - 18,761
PENNSYLVANIA ELECTRIC COMPANY - 11,254
GPU INTERNATIONAL, INC. - 14
GPU POWER, INC. - 14
GPU ELECTRIC, INC. - -
GPU SERVICE, INC. - -
GPU NUCLEAR, INC. - -
TOTAL $ - $ 66,231
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
NONE
TOTAL PAYMENTS -
(A) Began official operations on March 1, 1996 after receiving SEC approval.
<PAGE>
11
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to fuel stock expenses during the year and indicate amount
attributable to each associated company. Under the section
headed "Summary" listed below give an overall report of the
fuel functions performed by the service company.
D E S C R I P T I O N LABOR EXPENSES TOTAL
ACCOUNT 152 - FUEL STOCK EXPENSES UNDISTRIBUTED
$ 3,685 $ 3,515 $ 7,200
JERSEY CENTRAL POWER & LIGHT CO. ( 46) ( 1) ( 47)
PENNSYLVANIA ELECTRIC CO. (2,368) (1,953) (4,321)
NONASSOCIATED JOINT-OWNERS (1,271) (1,561) (2,832)
NOTE: Fuel stock expenses are billed back to
the associated companies in the month
incurred. Nonassociated companies
are billed for their share of joint-
owned station fuel stock expenses
based on ownership percentage.
TOTAL $ - $ - $ -
SUMMARY: Coal and Oil handling at the Jersey Central Power & Light Co.
and Pennsylvania Electric Co. fossil fuel generating stations,
and at the Homer City joint-owned station (50% Pennsylvania
Electric Co. / 50% Nonassociated Co.).
<PAGE>
12
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to stores expense during the year and indicate amount
attributable to each associate company.
D E S C R I P T I O N LABOR EXPENSES TOTAL
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED $ 935 $ 849 $ 1,784
JERSEY CENTRAL POWER & LIGHT CO. ( 88) ( 80) ( 168)
METROPOLITAN EDISON CO. ( 263) ( 238) ( 501)
PENNSYLVANIA ELECTRIC CO. ( 116) ( 106) ( 222)
NONASSOCIATED JOINT-OWNERS ( 468) ( 425) ( 893)
NOTE: Stores expenses are billed back to the
associated companies in the month incurred.
Nonassociated companies are billed for
their share of joint-owned station stores
expenses based on ownership percentage.
TOTAL $ - $ - $ -
<PAGE>
13
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped, showing the number of items in each
group.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE OF
OF YEAR (A) YEAR
ACCOUNT 174 - MISCELLANEOUS CURRENT AND ACCRUED
ASSETS
NONE
TOTAL $ - $ -
(A) Began official operations on March 1, 1996 after receiving SEC approval.
<PAGE>
14
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped by class showing the number of items in
each class.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE OF
OF YEAR (A) YEAR
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Officer's Restricted Stock $ - $ 297
Reclass 12/31/96 Payroll Clearing Account
Balances to Acct. 186.3 (To Be Allocated
Jan. 1997) - 150
Send Combustor Baskets to Sayreville, NJ
(To Be Returned) - 93
Mobile Maint. Support to Facilities Mgmt. - 39
EMS Link to Real Time Mgmt.
(R&D Awaiting Funding) - 21
Portland, PA Gas Turbine - 13
New York State Electric & Gas - 13
Evaluate Plant Acquisition
- Manila, Philippines - 11
Project Assessments for GPU International (5) - 11
General Engineering Services for Other
GPU Companies (37) - 10
Acct. 186.3 Balance - Misc. Carry Forwards
Into 1997 - (13)
TOTAL $ - $ 645
(A) Began official operations on March 1, 1996 after receiving SEC approval.
<PAGE>
15
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research, development,
or demonstration project which incurred costs by the service
corporation during the year.
D E S C R I P T I O N AMOUNT
ACCOUNT 188-RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES
North American Research for Ozone $ 150
PMET Feasibility Study 94
Generation and Storage 72
Gas Turbine Surveillance Program 61
General - GPUS, Inc. 54
Environmental 52
Emmissions Modeling for CT's 48
Development of Low Temp Catalysts 40
General - Subsidiaries 40
Precombustion Control of Potential Toxins 39
Wood Co-Firing at Seward Station 35
Coal Pipe Balancing and Measure 31
Gas Turbine Durability Program 29
Seward Coal Water Slurry Project 25
Power Plant Plume Rise 24
Camrac LOI - Conemaugh Demonstration 23
Coal Slurry Technical Assoc. 20
PEERC Participation 12
UBECA Membership 10
Penn State Acid Deposition 10
<PAGE>
15A
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research, development,
or demonstration project which incurred costs by the service
corporation during the year.
D E S C R I P T I O N AMOUNT
ACCOUNT 188-RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES (CONT'D)
Fly Ash 8
Upgraded Coal Interest Group 7
Repowering Application 5
Boiler Acoustic Leak Detection 4
Customer Systems 2
Sonic Horn for Conemaugh Precipitator (5)
Wood Co-Firing for CO2 Reduction (49)
JERSEY CENTRAL POWER & LIGHT CO. (296)
METROPOLITAN EDISON CO. (221)
PENNSYLVANIA ELECTRIC CO. (240)
NONASSOCIATED JOINT-OWNERS (84)
NOTE: Research and development expenses are
billed back to the associate companies
in the month incurred. Nonassociated
companies are billed for their share of
joint-owned station R&D expenses based
on percentages.
TOTAL $ -
<PAGE>
<TABLE>
16
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
<CAPTION>
SCHEDULE XI - PROPRIETARY CAPITAL
NUMBER OF PAR OR STATED
ACCOUNT NUMBER CLASS OF STOCK SHARES VALUE OUTSTANDING CLOSE OF PERIOD
AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
<S> <C> <C> <C> <C> <C>
201 COMMON STOCK ISSUED 2,500 $20 * 2,500 $50,000*
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of
transactions which gave rise to the reported amounts.
<CAPTION>
D E S C R I P T I O N AMOUNT
<S> <C> <C>
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL NONE
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS $ (127)
GPU Generation, Inc. Excess Pension Plan Minimum Liability Requirement
TOTAL $ (127)
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year, distinguishing between
compensation for the use of capital owed or net loss remaining from servicing nonassociates per
the General Instructions of the Uniform System of Accounts. For dividends paid during the year
in cash or otherwise, provide rate percentage, amount of dividend, date declared and date paid.
<CAPTION>
BALANCE AT NET INCOME BALANCE AT
D E S C R I P T I O N BEGINNING OR DIVIDENDS CLOSE OF
OF YEAR (A) (LOSS) PAID YEAR
<S> <C> <C> <C>
ACCOUNT 216 - UNAPPROPRIATED RETAINED EARNINGS
NONE
TOTAL $ - $ -
* In Whole Dollars
(A) Began official operations on March 1, 1996 after receiving SEC approval.
<PAGE>
17
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE XII- LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately for advances on notes, and advances on
open account. Names of associate companies from which advances were received shall be shown under the
class and series of obligation column. For Account 224 - Other long term debt provide the name of
creditor company or organization, terms of the obligation, date of maturity, interest rate, and the
amount authorized and outstanding.
<CAPTION>
TERMS OF OBLIG DATE BALANCE AT BALANCE AT
NAME OF CREDITOR CLASS & SERIES OF INTEREST AMOUNT BEGINNING 1/ CLOSE
OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR (A) ADDITIONS DEDUCTIONS OF YEAR
<S> <C> <C> <C> <C>
ACCOUNT 223 - ADVANCES FROM ASSOCIATE
COMPANIES:
NONE
ACCOUNT 224 - OTHER LONG-TERM DEBT:
NONE
TOTAL $ - $ -
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
(A) Began official operations on March 1, 1996 after receiving SEC approval.
</TABLE>
<PAGE>
18
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each
associate company. Give description and amount of
miscellaneous current and accrued liabilities. Items less
than $10,000 may be grouped, showing the number of items in
each group.
BALANCE AT BALANCE AT
D E S C R I P T I O N BEGINNING CLOSE OF
OF YEAR (A) YEAR
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
NONE
TOTAL $ - $ -
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
GPU SERVICE, INC. $ - $ 5,745
GPU NUCLEAR, INC. - 605
GPU, INC. - 2
TOTAL $ - $ 6,352
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
ACCRUALS
- GILBERT COMBUSTION TURBINE #9
LIABILITY FOR PROGRESS PAYMENTS DUE $ - $ 7,250
- VACATION PAY - 6,255
- BONUS PAY/INCENTIVE COMPENSATION - 5,819
- SICK PAY - 1,114
- OFFICERS DEFERRED COMPENSATION - 1,056
- SEVERANCE PAY - 469
- WORKERS' COMPENSATION PREMIUMS - 196
- INSURANCE - 30
TOTAL $ - $22,189
(A) Began official operations on March 1, 1996 after receiving SEC approval.
<PAGE>
19
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes relating to
financial statements shown elsewhere in this report may be
indicated here by reference.
NONE
<PAGE>
20
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT D E S C R I P T I O N CURRENT YEAR PRIOR YEAR
(A)
INCOME
457 Services rendered to associate companies $369,054 $ -
458 Services rendered to nonassociated
companies 364,032 -
421 Miscellaneous income or loss - -
419 Interest income 181 -
Total Income 733,267 -
EXPENSES-Income Statement
500-557 Power production 593,294 -
560-598 Transmission & distribution expenses 398 -
901-905 Customer accounts - -
906-917 Customer service & information - -
920 Administrative & General Salaries - -
921 Office supplies and expenses - -
922 Administrative expense transferred -
credit - -
923 Outside services employed 35,513 -
924 Property insurance 831 -
925 Injuries and damages - -
926 Employee pensions and benefits - -
927-935 Other Administrative & General Expense - -
403-407 Depreciation and amortization expenses - -
408 Taxes other than income 10,188 -
409-411.4 Income taxes 77 -
426-426.5 Other deductions 2,727 -
427-431 Interest expense - -
Total Expenses-Income Statement 643,028 -
EXPENSES-Balance Sheet
107 Construction work in progress 86,922 -
108-115 Accumulated provision for depreciation 3,612 -
163 Stores expenses undistributed - -
174 Miscellaneous current & accrued assets - -
183 Preliminary survey and investigation (295) -
186 Miscellaneous deferred debits - -
188 Research & development - -
Total Expenses-Balance Sheet 90,239 -
Net Income or (Loss) $ - $ -
(A) Received SEC approval in early 1996. Began operations March 1, 1996.
<PAGE>
21
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
457-1 457-2 457-3
JERSEY CENTRAL POWER
& LIGHT COMPANY $ 101,390 $ 7,416 $ - $ 108,806
METROPOLITAN EDISON COMPANY 103,132 6,266 - 109,398
PENNSYLVANIA ELECTRIC COMPANY 142,721 8,129 - 150,850
TOTAL $ 347,243 $ 21,811 $ - $ 369,054
<PAGE>
<TABLE>
22
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
<CAPTION>
DIRECT INDIRECT COMPENSATION EXCESS
COSTS COSTS FOR USE TOTAL OR TOTAL
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY AMOUNT
458-1 458-2 458-3 458-4 BILLED
<S> <C> <C> <C> <C> <C> <C>
ATLANTIC CITY ELECTRIC $ 11,790 $ 210 $ - $ 12,000 $ - $ 12,000
BALTIMORE GAS & ELECTRIC 62,124 1,029 - 63,153 - 63,153
CLEVELAND ELECTRIC ILLUMINATING CO. 1,355 225 - 1,580 - 1,580
DELMARVA POWER & LIGHT 14,163 245 - 14,408 - 14,408
NEW YORK STATE ELECTRIC & GAS 34,126 2,068 - 36,194 - 36,194
PENNSYLVANIA POWER & LIGHT 45,489 782 - 46,271 - 46,271
PHILADELPHIA ELECTRIC 79,709 1,377 - 81,086 - 81,086
POTOMAC ELECTRIC POWER 16,819 333 - 17,152 - 17,152
PUBLIC SERVICE ELECTRIC & GAS 88,624 1,603 - 90,227 - 90,227
UGI CORPORATION 1,923 38 - 1,961 - 1,961
-
$356,122 $ 7,910 - $364,032 $ - $364,032
INSTRUCTION: Provide a brief description of the services rendered to each nonassociated company:
Operating Costs - Joint-Owned Generating Stations.
<PAGE>
23
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
<CAPTION>
ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR SERVICE
DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
DESCRIPTION OF EXPENSES COST COST TOTAL COST COST TOTAL COST COST TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
500-557 POWER PRODUCTION $260,556 $14,302 $274,858 $312,353 $ 6,083 $318,436 $572,909 $20,385 $593,294
560-598 TRANSMISISSION AND
DISTRIBUTION EXPENSES 143 - 143 255 - 255 398 - 398
901-905 CUSTOMER ACCOUNTS - - - - - - - - -
906-917 CUSTOMER SERVICE & INFORMATION - - - - - - - - -
920 ADMINISTRATIVE & GEN. SALARIES - - - - - - - - -
921 OFFICE SUPPLIES AND EXPENSES - - - - - - - - -
922 ADMINISTRATIVE EXPENSE
TRANSFERRED - CREDIT - - - - - - - - -
923 OUTSIDE SERVICES EMPLOYED 28,525 1,689 30,214 5,189 110 5,299 33,714 1,799 35,513
924 PROPERTY INSURANCE 142 - 142 689 - 689 831 - 831
925 INJURIES AND DAMAGES - - - - - - - - -
926 EMPLOYEE PENSIONS & BENEFITS - - - - - - - - -
927-935 OTHER ADMINISTRATIVE &
GENERAL EXPENSES - - - - - - - - -
403-407 DEPRECIATION AND AMORTIZATION - - - - - - - - -
408 TAXES OTHER THAN INCOME TAXES 1,379 6,387 7,766 354 2,068 2,422 1,733 8,455 10,188
409-411.4 INCOME TAXES - 62 62 - 15 15 - 77 77
419.001 OTHER INC./DED. -
INTEREST-OTHER (35) - (35) (146) - (146) (181) - (181)
426.1-426.5 OTHER DEDUCTIONS 2,657 (1) 2,656 71 - 71 2,728 (1) 2,727
427-431 INTEREST EXPENSE - - - - - - - - -
TOTAL EXPENSES-INCOME STATEMENT: 293,367 22,439 315,806 318,765 8,276 327,041 612,132 30,715 642,847
EXPENSES-BALANCE SHEET
107 CONSTRUCTION WORK IN PROGRESS 51,152 (563) 50,589 36,661 (328) 36,333 87,813 (891) 86,922
108-115 ACCUMULATED PROVISION
FOR DEPRECIATION 2,760 (65) 2,695 955 (38) 917 3,715 (103) 3,612
163 STORES EXPENSES UNDISTRIBUTED - - - - - - - - -
174 MISCELLANEOUS CURRENT &
ACCRUED ASSETS - - - - - - - - -
183 PRELIMINARY SURV. & INVEST. (36) - (36) (259) - (259) (295) - (295)
186 MISCELLANEOUS DEFERRED DEBITS - - - - - - - - -
188 RESEARCH & DEVELOPMENT - - - - - - - - -
TOTAL EXPENSES-BALANCE SHEET: 53,876 (628) 53,248 37,357 (366) 36,991 91,233 (994) 90,239
TOTAL EXPENSES: $347,243 $21,811 $369,054 $356,122 $ 7,910 $364,032 $703,365 $29,721 $733,086
INSTRUCTION: Provide a breakdown of "Direct Costs" vs. "Indirect Costs" for charges appearing on the Income Statement
for the current year. Indicate whether amounts shown have been "billed to" the account ranges listed.
<PAGE>
24
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
FOR THE YEAR ENDED DECEMBER 31, CURRENT YEAR
<CAPTION>
TOTAL PROCESS
DESCRIPTION OF EXPENSES AMOUNT OVERHEAD SUPPORT OPERATIONS MAINTENANCE STORES
<S> <C> <C> <C> <C> <C> <C>
500-557 POWER PRODUCTION $593,294 $20,385 $415,730 $28,660 $55,403 $ 731
560-598 TRANSMISISSION AND
DISTRIBUTION EXPENSES 398 - 2 29 - -
901-905 CUSTOMER ACCOUNTS - - - - - -
906-917 CUSTOMER SERVICE & INFORMATION - - - - - -
920 SALARIES AND WAGES - - - - - -
921 OFFICE SUPPLIES AND EXPENSES - - - - - -
922 ADMINISTRATIVE EXPENSE
TRANSFERRED CREDIT - - - - - -
923 OUTSIDE SERVICES EMPLOYED 35,513 1,799 4,014 11,025 11,694 232
924 PROPERTY INSURANCE 831 - 831 - - -
925 INJURIES AND DAMAGES - - - - - -
926 EMPLOYEE PENSIONS AND BENEFITS - - - - - -
927-935 OTHER ADMINISTRATIVE & GENERAL
EXPENSES - - - - - -
403-407 DEPRECIATION AND AMORTIZATION - - - - - -
408 TAXES OTHER THAN INCOME TAXES 10,188 8,455 1,733 - - -
409-411.4 INCOME TAXES 77 77 - - - -
419-001 OTHER INCOME - DEDUCTIONS -
INTEREST - OTHER (181) - - - - -
426.1-426.5 DONATIONS 2,727 (1) 1,680 543 15 119
427-431 INTEREST EXPENSE - - - - - -
TOTAL EXPENSES-INC. STATEMENT 642,847 30,715 423,990 40,257 67,112 1,082
EXPENSES-BALANCE SHEET
107 CONSTRUCTION WORK IN PROGRESS 86,922 (891) 65,291 432 4,958 18
108-115 ACCUMULATED PROVISION
FOR DEPRECIATION 3,612 (103) 3,485 13 (178) (6)
163 STORES EXPENSES UNDISTRIBUTED - - - - - -
174 MISCELLANEOUS CURRENT &
ACCRUED ASSETS - - - - - -
183 PRELIM. SURVEY & INVESTIGATION (295) - (68) - (1) -
186 MISCELLANEOUS DEFERRED DEBITS - - - - - -
188 RESEARCH & DEVELOPMENT - - 5 - - -
TOTAL EXPENSES-BALANCE SHEET: 90,239 (994) 68,713 445 4,779 12
TOTAL EXPENSES: $733,086 $29,721 $492,703 $40,702 $71,891 $1,094
INSTRUCTION: Provide distribution of expenses by department for the year ended December 31, for
the current year and the prior year. Indicate whether amounts shown have been
"billed to" the financial statements of associate companies.
<PAGE>
25
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
FOR THE YEAR ENDED DECEMBER 31, CURRENT YEAR
<CAPTION>
FACILITIES CORPORATE
DESCRIPTION OF EXPENSES ENGINEERING MATERIAL & SUPPLIES FUELS ENVIRONMENTAL SERVICES ADMINISTRAITON
<S> <C> <C> <C> <C> <C> <C>
500-557 $15,370 $ 447 $ 8,886 $2,562 $25,653 $19,467
560-598 232 38 - - 93 4
901-905 - - - - - -
906-917 - - - - - -
920 - - - - - -
921 - - - - - -
922 - - - - - -
923 1,649 1 916 - 911 3,272
924 - - - - - -
925 - - - - - -
926 - - - - - -
927-935 - - - - - -
403-407 - - - - - -
408 - - - - - -
409-411.4 - - - - - -
419-001 - - - - (181) -
426.1-426.5 9 1 - 17 - 344
427-431 - - - - - -
TOTAL EXP.-INC. STATEMENT 17,260 487 9,802 2,579 26,476 23,087
EXPENSES-BALANCE SHEET
107 1,804 213 129 149 1,732 13,087
108-115 6 1 12 - 44 338
163 - - - - - -
174 - - - - - -
183 (173) (12) (2) - (25) (14)
186 - - - - - -
188 - - - - - (5)
TOTAL EXP.-BAL. SHEET: 1,637 202 139 149 1,751 13,406
TOTAL EXPENSES: $18,897 $ 689 $ 9,941 $2,728 $28,227 $36,493
INSTRUCTION: Provide distribution of expenses by department for the year ended December 31, for
the current year and the prior year. Indicate whether amounts shown have been
"billed to" the financial statements of associate companies.
<PAGE>
26
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
DEPARTMENTAL ANALYSIS OF SALARIES
<CAPTION>
DEPARTMENTAL SALARY EXPENSE NUMBER
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO PERSONNEL
Indicate each department TOTAL PARENT OTHER NON END OF
or service function. AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
<S> <C> <C> <C> <C> <C>
PROCESS SUPPORT $ 21,587 $ - $ 10,690 $ 10,897 541
OPERATIONS 24,163 - 17,438 6,725 406
MAINTENANCE 29,502 - 19,152 10,350 545
STORES 387 - 387 - 8
ENGINEERING 3,755 - 2,175 1,580 60
FACILITIES,MATERIALS & SUPPLIES - - - - -
FUELS 6,311 - 3,364 2,947 129
ENVIRONMENTAL 1,584 - 263 1,321 29
CORPORATE SERVICES 820 - 157 663 14
ADMINISTRATIVE 4,995 - 3,757 1,238 84
TOTAL $ 93,104 $ - $ 57,383 $ 35,721 1,816
<PAGE>
27
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1996
OUTSIDE SERVICES EMPLOYED
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the
aggregate amounts paid to any one payee and included within one subaccount
is less than $100,000, only the aggregate number and amount of all such
payments included within the subaccount need be shown. Provide a subtotal
for each type of service.
<CAPTION>
RELATIONSHIP
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
Outside Contractors
<S> <C> <C> <C>
ABB Combustion Engineering Emergency Boiler & Mechanical Repairs NA $15,403
Services
R&L Development Co. Civil Construction NA 9,348
ABB Power Generation, Inc. Combustion Turbine Engineering NA 5,068
Jones-Krall, Inc. Electrical Construction & Repairs NA 4,191
Harsco Corporation Scaffolding Services NA 4,010
Westinghouse Electric Corp. Turbine Generator Installation/Repairs NA 3,769
Welding Services, Inc. Boiler Waterwall Weld Overlay NA 3,550
Chempower, Inc. Insulation & Lagging Services NA 2,989
NPS Energy Services, Inc. Precipitator Roof Steel Replacement NA 2,612
General Electric Co. Turbine Services NA 2,304
Raytheon Engineers & Control Computer System Modernization NA 2,142
Constructors & Technical Support Services
DB Riley, Inc. Boiler Tube Repair/Replacement NA 1,979
Parsons Power Group, Inc. Technical Support Services & NA 1,736
Field Construction Support Services
National Electric Coil Div. Stator Rewinds NA 1,550
American Hydro Corporation Turbine Shaft Upgrade NA 1,532
Lincoln Contracting & Coal Preparation Plant
Equipment Co. Construction NA 1,382
Gap Pollution & Environmental Precipitator High Pressure Water NA 1,367
Cleaning
GAI Consultants, Inc. Residual Waste Compliance Project NA 1,249
Foster Wheeler Zack, Inc. Mechanical Repairs NA 1,224
Sargent Electric Company Electrical Construction NA 1,188
Global Power Company Insulation & Lagging Services NA 1,137
Homer City Coal Processing O&M Services of Coal Cleaning Plant NA 1,128
Svedala Bulk Material Handling Stacker/Reclaimer Controls Upgrade NA 1,107
Foster Wheeler Energy Corp. Actuator Repairs, Technical Support NA 952
& Plant Repowering Consulting
Babcock & Wilcox Company Boiler Services NA 922
Black & Veatch Seward CFB Project NA 746
Aven Fire Systems, Inc. Fire Protection System Repairs NA 701
Berkabile Brothers, Inc. Civil Construction NA 638
Arco Enterprises Sandblasting Services NA 614
James A. Redding Modify Rail Coal Sampling System NA 569
<PAGE>
27A
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1996
OUTSIDE SERVICES EMPLOYED
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the
aggregate amounts paid to any one payee and included within one subaccount
is less than $100,000, only the aggregate number and amount of all such
payments included within the subaccount need be shown. Provide a subtotal
for each type of service.
<CAPTION>
RELATIONSHIP
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
Outside Contractors (Cont'd.)
<S> <C> <C> <C>
Quaker Sales Corporation Bituminous Paving Services NA $ 554
Frank M. Seesley Civil Construction NA 455
Latrobe Window Cleaning Co. Janitorial Services NA 431
George V. Hamilton, Inc. Insulation & Lagging NA 429
Forney Corporation Tech Site Support NA 422
Miltech Energy Services, Inc. Fuel Study & Repowering Project NA 417
Sauer, Inc. Pipe Installation NA 409
Earth Sciences Consultants, Engineering Services & Water Permitting NA 375
Inc.
L. C. Whitford Co., Inc. Paving Services & Reservoir Repairs NA 372
World Wide Products, Inc. Boiler Inspection NA 363
AAR Engine Component Services Combustion Turbine Services NA 351
Marta Track Constructors, Inc. Railroad Construction NA 332
Specialties Engineering Corp. Condenser Tube Cleaning NA 330
Bailey Controls Company Boiler System Services NA 328
Nalco Fuel Tech Boiler System Repairs NA 328
Millar Elevator Services Co. Elevator Upgrade NA 308
Power Tech Associates, Inc. Design Transportable Water Injection NA 296
System
Hydrochem Industrial Chemical Cleaning NA 294
Services, Inc.
Beckwith Machinery Co. Crane Repair NA 292
Electric Power Research R&D Project - Tropospheric Ozone NA 267
Institute Strategy
Ingersoll-Dresser Pump Co. In-Shop Pump Repairs NA 264
Harold Beck & Sons Service Meter Operated Drive Units NA 243
Fan Services Associates Fan Blade Wear Nose Fabrication NA 240
& Overplating
Speranza Specialty Machinery Machine Services NA 236
Kipin Industries, Inc. Demolition Services NA 226
Sofis Company, Inc. Bottom Ash Hopper Repairs NA 226
M.A.W.G., Inc. Calibration/Testing NA 220
Demag Delaval Turbomachinery Turbine Inspection & Repairs NA 213
Corp.
MQS Inspection, Inc. Non Destructive Testing NA 209
<PAGE>
27B
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1996
OUTSIDE SERVICES EMPLOYED
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the
aggregate amounts paid to any one payee and included within one subaccount
is less than $100,000, only the aggregate number and amount of all such
payments included within the subaccount need be shown. Provide a subtotal
for each type of service.
<CAPTION>
RELATIONSHIP
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
Outside Contractors (Cont'd.)
<S> <C> <C> <C>
Handex of New Jersey Design & Install Groundwater NA $ 193
Treatment System
Mentzell Electric Co. Crane Repair NA 193
Henkeis & McCoy, Inc. Rebuild & Relocate KV Lines NA 190
Safari Contract Cleaners Janitorial Services NA 188
Ingersoll Rand Co. Air Compressor Services NA 185
L. Robert Kimball & Assoc. Engineering - Ash Disposal Site NA 181
Precision Samplers, Inc. Coal Handling & Storage NA 180
Magnetek - National Elec. Coil In-Shop Pump Repairs NA 177
Morris Kreitz & Sons, Inc. Pipe Installation NA 175
Team Industrial Services, Inc. Valve Service/Repair NA 170
Stewart & March, Inc. General Construction Services NA 165
Advanced Environmental Generation Waste Services NA 163
Technical Services
Conco Services, Inc. Condenser Tube Cleaning NA 156
DIS Industries Services Chemical Cleaning Service NA 143
Honeywell Service Representative NA 142
Energy & Environmental Engineering Services NA 141
Research
Fleischman Co. NA 136
Hydro Technical Services, Inc. High Pressure Water Cleaning NA 134
Graver Water Co. Water Purification System Service NA 133
Schlouch Excavating, Inc. Civil Construction NA 131
Kircon - Breco, Inc. HVAC Repairs NA 129
Spec Consultants, Inc. Non Destructive Testing NA 127
Inspection Services, Inc. Ultrasonic Tube Testing NA 127
TLG Services, Inc. Generating Station Decommissioning NA 125
Schaad Detective Agency, Inc. Office Security Services NA 123
Commonwealth of Pennsylvania Road Safety Improvements NA 121
PA Dept. of Transportation East Side Track Modification NA 121
Morgantown Excavators, Inc. Dam Removal NA 117
Dolan's Welding & Incidental Welding Services NA 115
Steel Fabrication
Servicemaster of Indiana Janitorial Services NA 111
Eastern Electric Apparatus Service & Repairs as Requested NA 110
Ralph J. Meyer Co. Roofing Service NA 109
<PAGE>
27C
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1996
OUTSIDE SERVICES EMPLOYED
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If the
aggregate amounts paid to any one payee and included within one subaccount
is less than $100,000, only the aggregate number and amount of all such
payments included within the subaccount need be shown. Provide a subtotal
for each type of service.
<CAPTION>
RELATIONSHIP
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
Outside Contractors (Cont'd.)
<S> <C> <C> <C>
ABB Environmental Systems Service Fluegas Conditioning System NA $ 107
Franklin Field Services Heat Treating & Machinery Services NA 103
Terra Diving Underwater Services NA 101
Newport News Industrial Corp. Recirculating Pump Repair/Service NA 100
Ecolochem, Inc. Mobile Demineralizer System Service NA 100
819 Others (under $100,000) -- 2,523
Sub-Total $94,282
Tree Trimming/Removal & Spraying
3 Others (under $100,000) -- $ 33
Temporary Nonprofessional Help
7 others (under $100,000) -- $ 78
Professional Services - Legal
Winston & Strawn Environmental Legal Services NA $ 340
29 Others (under $100,000) -- 664
Subtotal $ 1,004
Professional Services - Other
KPMG Peat Marwick Financial Statements Audit NA $ 168
Babcock & Wilcox Technical Power Plant Overview & Analytical NA 165
Training Instrumentation
Ellwood City Hospital Medical Testing & Reporting NA 107
230 Others (under $100,000) -- 725
Services
Sub-Total $ 1,165
Total $96,562
</TABLE>
<PAGE>
28
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
EMPLOYEE PENSIONS AND BENEFITS
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be limited
to $25,000.
D E S C R I P T I O N AMOUNT
VOLUNTARY ENHANCED RETIREMENT PROGRAM (VERP) /
BRIDGE BENEFIT PROGRAM (BRIDGE) $24,587
VACATION ACCRUAL 7,052
HOSPITAL, SURGICAL, MEDICAL AND DENTAL INSURANCE 6,688
O.P.E.B. - HEALTH INSURANCE 5,660
PENSION PLAN 5,290
EMPLOYEE SAVINGS PLAN 1,820
O.P.E.B. - LIFE INSURANCE 484
LONG-TERM DISABILITY - INCOME BENEFITS 308
EDUCATIONAL REIMBURSEMENT 46
ORDINARY LIFE INSURANCE 27
OTHER BENEFITS (Under $25,000) 61
TOTAL $52,023
<PAGE>
29
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
GENERAL ADVERTISING EXPENSES
INSTRUCTIONS: Provide a listing of the amount included in, "General
Advertising Expenses", classifying the items according to the
nature of the advertising and as defined in the account
definition. If a particular class includes an amount in excess
of $3,000 applicable to a single payee, show separately the name
of the payee and the aggregate amount applicable thereto.
D E S C R I P T I O N NAME OF PAYEE AMOUNT
EDITORIAL, EDUCATIONAL,
AND INFORMATIONAL
ADVERTISING TOM SHEEHAN, INC. $ 21
MISCELLANEOUS 1
PRODUCTION COSTS AND
AGENCY FEES TOM SHEEHAN, INC. 5
NEWSPAPER, MAGAZINE, AND
PAMPHLET ADVERTISING VARIOUS 4
TOTAL $ 31
<PAGE>
30
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
MISCELLANEOUS GENERAL EXPENSES
INSTRUCTIONS: Provide a listing of the amount included in "Miscellaneous
General Expenses", classifying such expenses according to their
nature. Payments and expenses permitted by Section 321 (b) (2)
of the Federal Election Campaign Act, as amended by Public Law
94-283 in 1976 (2 U.S.C.S. 441 (b) (2) shall be separately
classified.
D E S C R I P T I O N AMOUNT
NONE
TOTAL $ -
<PAGE>
31
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
LEASE/RENTALS
INSTRUCTIONS: Provide a listing of the amount included in "Lease/Rentals",
classifying such expenses by major groupings of property, as
defined in the account definition of the Uniform System of
Accounts.
T Y P E O F P R O P E R T Y AMOUNT
MERRILL CREEK LEASE $4,925
BROAD STREET OFFICE RENT 2,605
OTHER EQUIPMENT 871
TRANSPORTATION EQUIPMENT 508
DUPLICATING EQUIPMENT 103
UNIFORMS 46
BUILDINGS AND TRAILERS 15
MISCELLANEOUS 18
TOTAL $9,091
<PAGE>
32
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTION: Provide an analysis of Account 408, "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than
U.S. Government taxes, and (2) U.S. Government taxes. Specify
each of the various kinds of taxes and show the amounts thereof.
Provide a subtotal for each class of tax.
K I N D O F T A X AMOUNT
(1) OTHER THAN U. S. GOVERNMENT TAXES
Local Real Estate - Pennsylvania $ 101
Pennsylvania Unemployment Insurance 148
New Jersey Unemployment Insurance 33
Maryland Unemployment Insurance 1
Subtotal 283
(2) TAXES - U. S. GOVERNMENT
FICA - Social Security 6,643
Medicare 1,585
Federal Unemployment Insurance 45
Title V Emissions Assessment 1,632
Subtotal 9,905
Total $10,188
<PAGE>
33
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
DONATIONS
ACCOUNT 426.1
INSTRUCTION: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000 may
be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
United Way of Greater
Johnstown, Inc. United Way $ 18
United Way of Indiana County United Way 9
7 Organizations (under $3,000) United Way 11
36 Organizations (under $3,000) Emergency Services 12
YMCA Community Services 5
Community Foundation of
Greater Johnstown Community Services 5
Foundation for a Drug
Free Penna. Community Services 4
Habitat for Humanity Community Services 3
124 Organizations (under $3,000) Community Services 57
10 Organizations (under $3,000) Health Services 2
44 Organizations (under $3,000) Education 10
Partnership for New Jersey Cultural 5
Johnstown Symphony Orchestra Cultural 3
7 Organizations (under $3,000) Cultural 6
St. Francis College Capital Drive 7
Indiana County Visitors &
Convention Bureau Capital Drive 5
TOTAL $162
<PAGE>
34
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5,
"Other Deductions", classifying such expenses according to
their nature.
D E S C R I P T I O N NAME OF PAYEE AMOUNT
Write-Off of Obsolete
Material at Gilbert
Generating Station N/A $ 1,415
Write-Off of Obsolete
Material at Werner
Generating Station N/A 1,010
TOTAL $ 2,425
<PAGE>
35
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish particulars
as to any significant increase in services rendered or expenses
incurred during the year. Notes relating to financial
statements shown elsewhere in this report may be indicated here
by reference.
NONE
<PAGE>
36
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
ORGANIZATION CHART
-----------------------------------------------------
| BOARD OF DIRECTORS |
-----------------------------------------------------|
| President |
--------------------------------------------------|
| V.P. - Finance & Administration |
|--------------------------------------------|
| | Comptroller & Chief Acctg. Officer |
| |---------------------------------------|
| | Team Leader - Communication |
| |---------------------------------------|
| | Senior Attorney |
| |---------------------------------------|
| | Team Leader - Internal Affairs |
| ---------------------------------------|
| V.P. Generation |
|--------------------------------------------|
| | Maintenance Services Director |
| |---------------------------------------|
| | Generation Station Managers |
| |---------------------------------------|
| | | Sayreville/Werner/Forked River |
| | | Seward/Deep Creek |
| | | Titus |
| | | York Haven |
| | | Warren/Piney |
| | | Shawville |
| | | Keystone |
| | | Conemaugh |
| | | Homer City |
| | | Portland/Yards Creek |
| | | River Road |
| | -----------------------------------|
| | Keystone/Conemaugh Admin. Director |
| ---------------------------------------|
| Resource Acquisition & Logistic Dir. |
|--------------------------------------------|
| | Team Leader-Contracts |
| |---------------------------------------|
| | Team Leader-Logistics |
| |---------------------------------------|
| | Team Leader-Fuels |
| ----------------------------------------|
| Process Owner - Recruit & Develop People |
|--------------------------------------------|
| | Team Leader-R&DP |
| ----------------------------------------|
| Director-Generation Opers. |
|--------------------------------------------|
| | Generation Production Dir. |
| ----------------------------------------|
| | Mgr.-Major Projects |
| ----------------------------------------|
| | Station Projects Dir. |
| ----------------------------------------|
| Generation Tech. Svcs. Director |
|--------------------------------------------|
| | Mgr.-R&D |
| ----------------------------------------|
| | Team Leader-Strategy |
| ----------------------------------------|
| | Environmental Mgr. |
--------------------------------------------
<PAGE>
37
ANNUAL REPORT OF GPU GENERATION, INC.
METHODS OF ALLOCATION
Expenses directly attributable to a particular generating station are billed
to the owner(s) of that station in direct proportion to the ownership
percentage in the station. Expenses that can be specifically attributed to a
particular owner are fully allocated to that owner. The expenses attributed to
the five generating stations that are jointly owned between associated and
nonassociated companies (i.e., Keystone, Conemaugh, Homer City, Seneca, and
Yards Creek) are allocated to the owners in direct proportion to their
ownership interest in the station, unless the cost is attributed solely to the
associated companies as a group or the nonassociated companies as a group, in
which case the expenses are allocated only among the station owners in that
group. Expenses attributed to a generating station owned solely by an
associated company are allocated to that associated company.
The allocation of expenses not directly attributable to a particular
generating station are in proportion to the direct expenses attributable to
the station.
<PAGE>
38
ANNUAL REPORT OF GPU GENERATION, INC.
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
NONE
<PAGE>
39
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1996
VENTURE DISCLOSURES
SEC FILE No. 70-8289
(SEC ORDER ISSUED SEPTEMBER 11, 1996)
Provision of operation and maintenance services to non-utility generators
(comparable to authority previously granted to JCP&L, Met-Ed and Penelec in
this docket.)
SEC File No. 70-8409
(FORM U-1 FILED MARCH 19, 1996)
Provision of services to GPU International and exempt wholesale generators
("EWGs") and foreign utility companies ("FUCOs") in which GPU owns an interest
(comparable to authority previously granted to JCP&L, Met-Ed and Penelec in
SEC File No. 70-8593.) (Notice period commencing but no resolution on
decision to issue Order.)
SEC FILE NO. 70-8937
(FORM U-1 AMENDMENT NO. 1, FILED DECEMBER 30, 1996)
Authority to engage in the sale, purchase, transportation, transmission,
distribution, storage of such energy commodities, which include natural and
manufactured gas, electric power, coal, oil, as well as other similar
products; to sell or arrange for the sale of natural gas to GPU Energy's large
industrial customers; to broker or market natural gas to customers outside our
service territory; and when retail access is permitted, to broker or market
electric energy beyond the current GPU Energy service territories.
<PAGE>
ANNUAL REPORT OF GPU GENERATION, INC.
SIGNATURE CLAUSE
Pursuant to the requirements of the Public
Utility Holding Company Act of 1935 and the rules
and regulations of the Securities and Exchange
Commission issued thereunder, the undersigned
company has duly caused this report to be signed
on its behalf by the undersigned officer thereunto
duly authorized.
GPU GENERATION, INC.
(Name of Reporting Company)
By:
(Signature of Signing Officer)
R. J. Vodzack, Comptroller & Chief Accounting Officer
(Printed Name and Title of Signing Officer)
Date: 4/30/97
<PAGE>
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