Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1997 and Ending December 31, 1997
---------------- ------------------
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
Location of Principal Executive Offices of Reporting Co.
1001 Broad Street, 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>
4
- --------------------------------------------------------------------------------
ANNUAL REPORT OF GPU GENERATION, INC.
- --------------------------------------------------------------------------------
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
------- -----
SERVICE COMPANY PROPERTY
------------------------
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) 759 456
------ ------
Total Investments 759 456
------ ------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash - -
134 Other special deposits 249 300
135 Working funds 81 55
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Other accounts receivable 17,384 17,478
144 Accumulated provision for uncollectible
accounts - -
146 Accounts receivable from associated
companies Schedule V) 48,410 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 66,124 84,064
------ ------
DEFERRED DEBITS
---------------
181 Unamortized debt expense - -
183 Preliminary survey and investigation charges - -
184 Clearing accounts 77 (122)
186 Miscellaneous deferred debits (Schedule IX) 1,322 645
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 17,135 8,042
------ ------
Total Deferred Debits 18,534 8,565
TOTAL ASSETS AND OTHER DEBITS $85,417 $93,085
====== ======
<PAGE>
5
ANNUAL REPORT OF GPU GENERATION, INC.
- --------------------------------------------------------------------------------
SCHEDULE I - COMPARATIVE BALANCE SHEET
- --------------------------------------------------------------------------------
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
- --------------------------------------------------------------------------------
CURRENT PRIOR
------- -----
PROPRIETARY CAPITAL
-------------------
201 Common stock issued (Schedule XI) $ 50 $ 50
211 Miscellaneous paid-in-capital (Schedule XI) - -
215 Retained earnings/Accumulated other
comprehensive income/(loss) (Schedule XI) (86) (127)
216 Unappropriated retained earnings (Schedule XI) - -
------ ------
Total Proprietary Capital (36) (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 49,530 48,027
233 Notes payable to associated
companies (Schedule XIII) - -
234 Accounts payable to associated
companies Schedule XIII) 3,335 6,352
236 Taxes accrued 1,842 3,174
237 Interest accrued 58 -
238 Dividends declared - -
241 Tax collections payable 192 292
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 16,872 22,189
243 Obligations under capital leases-current - -
------ ------
Total Current and Accrued Liabilities 71,829 80,034
------ ------
DEFERRED CREDITS & OTHER NON-CURRENT LIABILITIES
------------------------------------------------
227 Obligations under capital lease - non-current - -
228.2 Accumulated provision for injuries and damages 1,364 1,165
228.3 Accumulated provision for pensions and benefits 12,249 10,898
253 Other deferred credits - 1,065
255 Accumulated deferred investment tax credits - -
------ ------
Total Deferred Credits & Other
Non-Current Liabilities 13,613 13,128
------ ------
282 ACCUMULATED DEFERRED INCOME TAXES 11 -
---------------------------------
TOTAL LIABILITIES AND PROPRIETARY
CAPITAL $85,417 $93,085
====== ======
<PAGE>
6
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
- ------------------------
Account
- -------
301 ORGANIZATION $ - $ - $ - $ - $ -
302 FRANCHISES AND
CONSENTS - - - - -
303 MISCELLANEOUS
TANGIBLE 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:
- --------------------------------------------------------------------------------
BALANCE AT
SUBACCOUNT DESCRIPTION ADDITIONS CLOSE OF
YEAR
- --------------------------------------------------------------------------------
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, 1997
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
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
<PAGE>
9
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- -------------------------------------------------------------------------------
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
DESCRIPTION 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 $ 752
Health Care Reserve -
Keystone Health Plan Mgmt. Co.
(Central Claim Deposit Reserve) 86 7
----- -----
456 759
----- -----
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
NONE
TOTAL $ 456 $ 759
===== =====
<PAGE>
10
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
DESCRIPTION BEGINNING CLOSE OF
OF YEAR YEAR
- --------------------------------------------------------------------------------
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATED
COMPANIES
JERSEY CENTRAL POWER & LIGHT COMPANY $ 36,188 $ 3,507
METROPOLITAN EDISON COMPANY 18,761 28,100
PENNSYLVANIA ELECTRIC COMPANY 11,254 16,618
GPU INTERNATIONAL, INC. 14 144
GPU POWER, INC. 14 41
GPU ELECTRIC, INC. - -
GPU SERVICE, INC. - -
GPU NUCLEAR, INC. - -
------- -------
TOTAL $ 66,231 $ 48,410
======= =======
- --------------------------------------------------------------------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
NONE
------
TOTAL PAYMENTS -
======
<PAGE>
11
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
$ 8,630 $ 3,975 $12,605
JERSEY CENTRAL POWER & LIGHT CO. ( 274) 7 ( 267)
PENNSYLVANIA ELECTRIC CO. (2,842) (1,415) (4,257)
METROPOLITAN EDISON CO. (1,453) (345) (1,798)
NONASSOCIATED JOINT-OWNERS (4,061) (2,222) (6,283)
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: Oil handling at the Jersey Central Power & Light Co.
fossil fuel generating stations. Coal and oil handling
at the Metropolitan Edison Co. and the Pennsylvania Electric
Co. fossil fuel generating stations, and at the Keystone,
Conemaugh and Homer City joint-owned generating stations.
<PAGE>
12
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- --------------------------------------------------------------------------------
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED $ 863 $ 680 $ 1,543
JERSEY CENTRAL POWER & LIGHT CO. ( 79) ( 63) ( 142)
METROPOLITAN EDISON CO. ( 297) ( 234) ( 531)
PENNSYLVANIA ELECTRIC CO. ( 118) ( 93) ( 211)
NONASSOCIATED JOINT-OWNERS ( 369) ( 290) ( 659)
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, 1997
- --------------------------------------------------------------------------------
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 YEAR
- --------------------------------------------------------------------------------
ACCOUNT 174 - MISCELLANEOUS CURRENT AND ACCRUED
ASSETS
NONE
----- ---
TOTAL $ - $ -
===== ===
<PAGE>
14
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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 YEAR
- --------------------------------------------------------------------------------
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Officer's Restricted Stock $ 297 $ 555
Acct. 186.4 Balance - 12/97 Adjustments to
Intercompany Receivable/Payables
(Reconciled Jan. 1998) - 507
General Engineering Services for Other
GPU Companies (37) 10 63
Normal O&M - Hazelton, PA Project - 49
EMS Link to Real Time Mgmt.
(R&D Awaiting Funding) 21 33
Work done for TMI - By Titus and
York Haven Workers - 26
Station Modifications - Hazelton, PA Project - 21
Inspection of Findley Run Dam by Genco Engrg. - 16
Proposal to Build 100 MW CFB in Ireland - 15
Portland, PA Outage - Turbine Support - 15
Acct. 186.3 Balance - Misc. Carry Forwards
Into 1997/1998 (13) 8
New York State Electric & Gas 13 8
Project Assessments for GPU International (5) 11 5
Portland, PA Gas Turbine 13 1
Reclass 12/31/96 Payroll Clearing Account
Balances to Acct. 186.3 (Allocated
Jan. 1997) 150 -
Send Combustor Baskets to Sayreville, NJ
(To Be Returned) 93 -
Mobile Maint. Support to Facilities Mgmt. 39 -
Evaluate Plant Acquisition
- Manila, Philippines 11 -
------ ------
TOTAL $ 645 $ 1,322
====== ======
<PAGE>
15
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
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.
- --------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- --------------------------------------------------------------------------------
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES
EPRI Contributions $ 1,707
Hybrid SNCR/SCR Demo at Seward Station 469
Firing Coal Water Slurry on Tang 199
North American Research for Ozone 148
Generation and Storage 134
EPRI TC - Utilizing ICCP for Dispatch 119
EPRI Committees 50
Chesapeake Bay Nutrient Loading Model 49
HCCP Centrifuge Effluent Formulation/Combustion 41
General - Subsidiaries 41
Coal Utilization Research Council 33
General - GPUS, Inc. 32
Tag Supply Users Group 31
Wood Co-Firing at Seward Station 27
Cooling Water Treatment 25
Upgraded Coal Interest Group 24
Gas Turbine Durability Program 23
Combustion Turbine & Combined Cycle Users Org. 17
Coal Slurry Technical Assoc. 17
Camrac LOI - Conemaugh Demonstration 13
Seward Coal Water Slurry Project 11
UBECA Membership 10
Penn State Acid Deposition 10
PEERC Participation 10
<PAGE>
15A
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
-------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- --------------------------------------------------------------------------------
ACCOUNT 188-RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES (CONT'D)
Small Tree Replacement 9
Impact of Distrib.Generation on Voltage & System 7
Boiler Acoustic Leak Detection 4
Development of Low Temp Catalysts 1
Environmental 1
JERSEY CENTRAL POWER & LIGHT CO. (280)
METROPOLITAN EDISON CO. (648)
PENNSYLVANIA ELECTRIC CO. (2,171)
GPU INTERNATIONAL, INC. (7)
GPU POWER, INC. (7)
GPU NUCLEAR, INC. (15)
NONASSOCIATED JOINT-OWNERS (134)
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>
16
<TABLE>
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
<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*
- -------------------------------------------------------------------------------------------------------------
<FN>
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of
transactions which gave rise to the reported amounts.
</FN>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- -------------------------------------------------------------------------------------------------------------
<S> <C>
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL NONE
ACCOUNT 215 - RETAINED EARNINGS/ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) $ (86)
GPU Generation, Inc. Excess Pension Plan Minimum Liability Requirement
-----
TOTAL $ (86)
=====
- -------------------------------------------------------------------------------------------------------------
<FN>
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.
</FN>
<CAPTION>
-------------------------------------------------------------------------------------------------------------
BALANCE AT NET INCOME BALANCE AT
DESCRIPTION BEGINNING OR DIVIDENDS CLOSE OF
OF YEAR (LOSS) PAID YEAR
- -------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ACCOUNT 216 - UNAPPROPRIATED RETAINED EARNINGS
NONE
----- ----
TOTAL $ - $ -
===== ====
<FN>
* In Whole Dollars
</FN>
</TABLE>
<PAGE>
17
<TABLE>
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
<CAPTION>
- --------------------------------------------------------------------------------
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.
- ---------------------------------------------------------------------------------------------------------------
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 ADDITIONS DEDUCTIONS OF YEAR
- ---------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ACCOUNT 223 - ADVANCES FROM ASSOCIATE
COMPANIES:
NONE
ACCOUNT 224 - OTHER LONG-TERM DEBT:
NONE
------ ---
TOTAL $ - $ -
====== ===
<FN>
- -------------------------------------------------------------------------------------------------------------
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
</FN>
</TABLE>
<PAGE>
18
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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 YEAR
- --------------------------------------------------------------------------------
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
NONE
------ -----
TOTAL $ - $ -
====== =====
- --------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
GPU SERVICE, INC. $ 5,745 $ 2,803
GPU NUCLEAR, INC. 605 368
GPU, INC. 2 164
------ -----
TOTAL $ 6,352 $ 3,335
====== ======
- --------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
ACCRUALS
- VACATION PAY $ 6,255 $ 9,080
- BONUS PAY/INCENTIVE COMPENSATION 5,819 5,485
- OFFICERS DEFERRED COMPENSATION 1,056 1,373
- SICK PAY 1,114 703
- WORKERS' COMPENSATION PREMIUMS 196 172
- INSURANCE 30 33
- STORES UNDISTRIBUTED-CREDIT BALANCE - 26
- GILBERT COMBUSTION TURBINE #9
LIABILITY FOR PROGRESS PAYMENTS DUE 7,250 -
- SEVERANCE PAY 469 -
------ -----
TOTAL $22,189 $16,872
====== ======
<PAGE>
19
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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, 1997
- --------------------------------------------------------------------------------
SCHEDULE XV
STATEMENT OF INCOME
- --------------------------------------------------------------------------------
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
- --------------------------------------------------------------------------------
INCOME
457 Services rendered to associate companies $380,651 $369,054
458 Services rendered to nonassociated
companies 401,563 364,032
421 Miscellaneous income or loss - -
419 Interest income 204 181
------- -------
Total Income 782,418 733,267
------- -------
EXPENSES-Income Statement
500-557 Power production 682,669 593,294
560-598 Transmission & distribution expenses 530 398
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 19,365 35,513
924 Property insurance 819 831
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 10,546 10,188
409-411.4 Income taxes 131 77
426-426.5 Other deductions 1,326 2,727
427-431 Interest expense - -
------- -------
Total Expenses-Income Statement 715,386 643,028
------- -------
EXPENSES-Balance Sheet
107 Construction work in progress 59,488 86,922
108-115 Accumulated provision for depreciation 7,969 3,612
163 Stores expenses undistributed - -
174 Miscellaneous current & accrued assets - -
183 Preliminary survey and investigation (425) (295)
186 Miscellaneous deferred debits (7) -
188 Research & development 7 -
------- -------
Total Expenses-Balance Sheet 67,032 90,239
------- -------
Net Income or (Loss) $ - $ -
======= =======
<PAGE>
21
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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 $ 89,057 $ 3,563 $ - $ 92,620
METROPOLITAN EDISON COMPANY 118,445 6,350 - 124,795
PENNSYLVANIA ELECTRIC COMPANY 155,531 7,705 - 163,236
-------- ------- ------- --------
TOTAL $ 363,033 $ 17,618 $ - $ 380,651
======== ======= ======= ========
<PAGE>
22
<TABLE>
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
<CAPTION>
- -----------------------------------------------------------------------------------------------------------
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
- -----------------------------------------------------------------------------------------------------------
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 $ 13,296 $ 225 $ - $ 13,521 $ - $ 13,521
BALTIMORE GAS & ELECTRIC 68,156 1,099 - 69,255 - 69,255
CLEVELAND ELECTRIC ILLUMINATING CO. 1,485 203 - 1,688 - 1,688
DELMARVA POWER & LIGHT 15,797 262 - 16,059 - 16,059
NEW YORK STATE ELECTRIC & GAS 34,273 2,393 - 36,666 - 36,666
PENNSYLVANIA POWER & LIGHT 50,627 838 - 51,465 - 51,465
PHILADELPHIA ELECTRIC 88,865 1,475 - 90,340 - 90,340
POTOMAC ELECTRIC POWER 19,807 359 - 20,166 - 20,166
PUBLIC SERVICE ELECTRIC & GAS 98,372 1,725 - 100,097 - 100,097
UGI CORPORATION 2,265 41 - 2,306 - 2,306
------- ------ ------- ------- ------- -------
$392,943 $ 8,620 - $401,563 $ - $401,563
======= ====== ======= ======= ======= =======
- -----------------------------------------------------------------------------------------------------------
<FN>
INSTRUCTION: Provide a brief description of the services rendered to each nonassociated company:
Operating Costs - Joint-Owned Generating Stations.
</FN>
</TABLE>
<PAGE>
23
<TABLE>
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- -------------------------------------------------------------------------------------------------------------------------------
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> <C>
500-557 POWER PRODUCTION $308,698 $10,513 $319,211 $356,892 $ 6,566 $363,458 $665,590 $17,079 $682,669
560-598 TRANSMISISSION AND
DISTRIBUTION EXPENSES 180 - 180 350 - 350 530 - 530
901-905 CUSTOMER ACCOUNTS - - - - - - - - -
906-917 CUSTOMER SERVICE &
INFORMATION - - - - - - - - -
920 ADMIN. & GEN. SALARIES - - - - - - - - -
921 OFFICE SUPPLIES AND EXP. - - - - - - - - -
922 ADMINISTRATIVE EXPENSE
TRANSFERRED - CREDIT - - - - - - - - -
923 OUTSIDE SERVICES EMPLOYED 15,532 761 16,293 2,933 139 3,072 18,465 900 19,365
924 PROPERTY INSURANCE 141 - 141 678 - 678 819 - 819
925 INJURIES AND DAMAGES - - - - - - - - -
926 EMP. PENSIONS & BENEFITS - - - - - - - - -
927-935 OTHER ADMINISTRATIVE &
GENERAL EXPENSES - - - - - - - - -
403-407 DEPREC. & AMORTIZATION - - - - - - - - -
408 TAXES OTHER THAN INCOME
TAXES 1,419 6,632 8,051 349 2,146 2,495 1,768 8,778 10,546
409-411.4 INCOME TAXES - 111 111 - 20 20 - 131 131
419.001 OTHER INC./DED. -
INTEREST-OTHER (57) - (57) (147) - (147) (204) - (204)
426.1-426.5 OTHER DEDUCTIONS 1,255 - 1,255 71 - 71 1,326 - 1,326
427-431 INTEREST EXPENSE - - - - - - - - -
-------- ------- -------- -------- ------- -------- -------- ------- --------
TOTAL EXPEMSE-INCOME STATEMENT: 327,168 18,017 345,185 361,126 8,871 369,997 688,294 26,888 715,182
-------- ------- -------- -------- ------- -------- -------- ------- --------
EXPENSES-BALANCE SHEET
107 CONST. WORK IN PROGRESS 31,225 (352) 30,873 28,837 (222) 28,615 60,062 (574) 59,488
108-115 ACCUMULATED PROVISION
FOR DEPRECIATION 4,716 (47) 4,669 3,329 (29) 3,300 8,045 (76) 7,969
163 STORES EXP. UNDISTRIBUTED - - - - - - - - -
174 MISCELLANEOUS CURRENT &
ACCRUED ASSETS - - - - - - - - -
183 PRELIM. SURV. & INVEST. (70) - (70) (355) - (355) (425) - (425)
186 MISC. DEFERRED DEBITS (7) - (7) - - - (7) - (7)
188 RESEARCH & DEVELOPMENT 1 - 1 6 - 6 7 - 7
-------- ------- -------- -------- ------- -------- -------- ------- --------
TOTAL EXPENSES-BALANCE SHEET: 35,865 (399) 35,466 31,817 (251) 31,566 67,682 (650) 67,032
-------- ------- -------- -------- ------- -------- -------- ------- --------
TOTAL EXPENSES: $363,033 $17,618 $380,651 $392,943 $ 8,620 $ 401,563 $755,976 $26,238 782,214
-------- ------- -------- -------- ------- -------- -------- ------- --------
<FN>
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.
</FN>
</TABLE>
<PAGE>
<TABLE>
24
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
<CAPTION>
- --------------------------------------------------------------------------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY DEPARTMENT OR SERVICE FUNCTION
- --------------------------------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, CURRENT YEAR
TOTAL COROPRATE
DESCRIPTION OF EXPENSES AMOUNT OVERHEAD SUPPORT OPERATIONS MAINTENANCE
- --------------------------------------------------------------------------------------------------------
EXPENSES-INCOME STATEMENT
<S> <C> <C> <C> <C> <C> <C>
500-557 Power Production $682,669 $ 17,079 $ 12,066 $133,028 $78,607
560-598 Transmission and Distribution
Expenses 530 - 515 7 -
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 19,365 900 662 6,572 8,663
924 Property Insurance 819 - 804 - -
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 10,546 8,778 1,728 - -
409-411.4 Income Taxes 131 131 - - -
410-001 Other Inc./Dec.-Interest Other (204) - (204) - -
426.1-426.5 Donatons 1,326 - 1,229 1 3
427-431 Interest Expense - - - - -
------- ------- ------- ------- ------
TOTAL EXPENSES-INCOME STATEMENT: 715,182 26,888 16,800 139,608 87,273
------- ------- ------- ------- -------
EXPENSES-BALANCE SHEET
107 Construction Work in Progress 59,488 (574) 41,421 4,173 11,330
108-115 Accumulated Provision for
Depreciation 7,969 (76) 4,424 550 832
163 Stores Expenses Undistributed - - - - -
174 Miscellaneous Current &
Accrued Assets - - - - -
183 Preliminary Survey & Investigation (425) - (440) - -
186 Miscellaneous Deferred Debits (7) - (7) - -
188 Research & Development 7 - (15) 4 18
------- ------- ------- ------- ------
TOTAL EXPENSES-BALANCE SHEET: 67,032 (650) 45,383 4,727 12,180
------- ------- ------- ------- ------
TOTAL EXPENSES: $782,214 $ 26,238 $ 62,183 $144,335 $99,453
------- ------- ------- ------- ------
<FN>
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 associated companies.
</FN>
</TABLE>
<PAGE>
25
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
- --------------------------------------------------------------------------------
FOR THE YEAR ENDED DECEMBER 31, CURRENT YEAR
--------------------------------------------
DESCRIPTION OF EXPENSES ENGINEERING FUELS ADMINISTRATION
500-557 $ 16,492 $391,700 $ 33,697
560-598 - - 8
901-905 - - -
906-917 - - -
920 - - -
921 - - -
922 - - -
923 791 730 1,047
924 - - 15
925 - - -
926 - - -
927-935 - - -
403-407 - - -
408 - - 40
409-411.4 - - -
419-001 - - -
426.1-426.5 - - 93
427-431 - - -
-------- ------- --------
TOTAL EXPEMSE-
INCOME STATEMENT 17,283 392,430 34,900
-------- ------- --------
EXPENSES-BALANCE SHEET
107 2,826 1,079 (767)
108-115 (5) 1 2,243
163 - - -
174 - - -
183 1 - 14
186 - - -
188 - - -
- -------- ------- --------
TOTAL EXPENSE-
BALANCE SHEET: 2,822 1,080 1,490
- -------- ------- --------
TOTAL EXPENSES: $ 20,105 $393,510 $ 36,390
- -------- ------- --------
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, 1997
DEPARTMENTAL ANALYSIS OF SALARIES
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
- --------------------------------------------------------------------------------
CORPORATE SUPPORT $ 16,655 $ - $ 10,822 $ 5,833 227
STATION DIRECT
OPERATIONS 31,094 - 20,870 10,224 452
MAINTENANCE 51,952 - 30,117 21,835 812
ENGINEERING 4,023 - 2,160 1,863 58
FUELS 6,824 - 3,634 3,190 116
ADMINISTRATIVE 4,124 - 2,718 1,406 70
------- ------- ------- ------- -------
TOTAL $114,672 $ - $ 70,321 $ 44,351 1,735
======= ======= ======= ======= ======
<PAGE>
27
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON
AMOUNT
ASSOCIATE
- --------------------------------------------------------------------------------
Outside Contractors
- -------------------
ABB Combustion Engineering Emergency Boiler & Mechanical NA $ 5,741
Services Repairs
R&L Development Co. Civil Construction NA 5,575
Harsco Corporation Scaffolding Services NA 2,615
Welding Services, Inc. Boiler Waterwall Weld Overlay NA 2,303
Francis J. Palo, Inc. Civil Construction NA 1,975
Gap Pollution & Precipitator High Pressure NA 1,803
Environmental Water Cleaning
Global Power Company Insulation & Lagging Services NA 1,438
NPS Energy Services, Inc. Precipitator Roof Steel NA 1,248
Replacement
Nalco Fuel Tech Boiler System Repairs NA 1,194
Foster Wheeler Zack, Inc. Mechanical Repairs NA 1,184
General Electric Co. Turbine Services NA 1,028
Burnham Industrial Insulation & Lagging Services NA 1,023
Contractors
Westinghouse Electric Turbine Generator Installation/ NA 1,003
Corp. Repairs
Parsons Power Group, Inc. Technical Support Services & NA 954
Field Construction Support
Services
East Coast Mgmt., Inc. Overhaul & Maintenance Services NA 838
Handex of New Jersey Design & Install Groundwater NA 698
Treatment System
Safari Contract Cleaners Janitorial Services NA 550
Fan Services Associates Fan Blade Wear Nose
Fabrication & Overplating NA 543
American Boiler & Chimney Mechanical Construction NA 524
Latrobe Window Cleaning Co.Janitorial Services NA 440
GAI Consultants, Inc. Residual Waste Compliance Project NA 439
Ingersoll-Dresser Pump Co. In-Shop Pump Repairs NA 436
Dolan's Welding & Incidental Welding Services NA 434
Steel Fabrication
Arco Enterprises Sandblasting Services NA 430
Commercial Testing & Coal Surveys NA 410
Engineering
<PAGE>
27A
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON
AMOUNT
ASSOCIATE
- --------------------------------------------------------------------------------
Outside Contractors (Cont'd.)
- -----------------------------
C.T. & Elecrical Services Inspection/Repair of Station NA $ 398
Raytheon Engineers & Control Computer System NA 350
Constructors Modernization & Technical
Support Services
Kirby Electric Service, Electrical Construction/Repairs NA 327
Inc.
Jones-Krall, Inc. Electrical Construction & Repairs NA 322
Cannon Sline Painting Services NA 280
Praxair Surface Tech, Coating Service NA 273
Inc.
Stone & Webster Engineering Services for Plant NA 242
Engineering Corp. Improvement
Sauer, Inc. Pipe Installation NA 242
Advanced Environmental Generation Waste Services NA 238
Technical Services
AC&S, Incorporated Asbestos Abatement Service NA 223
Mentzel Electric Co. Crane Repair NA 219
MQS Inspection, Inc. Non Destructive Testing NA 211
Eastern Electric Service & Repairs as Requested NA 201
Apparatus
Honeywell Service Representative NA 199
Marta Track Constructors, Railroad Construction NA 176
Inc.
Conco Services, Inc. Condenser Tube Cleaning NA 174
Tanoma Coal Sales, Inc. Labor/Material for Tanoma NA 174
Blending Project
Robert J. Meyer & Assoc. Engineering Services for Gilbert NA 173
Spill Response
Hydrochem Industrial Chemical Cleaning NA 172
Services, Inc.
The Osborne Company, Inc. Mechanical Equipment and Parts NA 167
Wiltronics Equipment Repairs NA 159
Millar Elevator Elevator Upgrade NA 158
Services Co.
TLT-Babcock, Inc. ID Fan Equipment & Inspection NA 158
Spec Consultants, Inc. Non Destructive Testing NA 156
Kircon-Breco, Inc. HVAC Repairs NA 154
<PAGE>
27B
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON
AMOUNT
ASSOCIATE
- --------------------------------------------------------------------------------
Outside Contractors (Cont'd.)
- -----------------------------
Pavco Engineering Controls Service/Repair NA $ 150
Services, Inc.
Team Industrial Valve Service/Repair NA 148
Services, Inc.
Am-Gard, Inc. Technical Support Service NA 145
at Conemaugh
Schaad Detective Office Security Services NA 139
Agency, Inc.
Industrial Tube Condenser Tube & Turbine Cleaning NA 138
Cleaning, Inc.
Helmick Corp. Tube Shield for Watermill Tubes NA 136
TRC Environmental Corp. Consulting Service for Air NA 133
Quality Analysis
Diesel Service, Inc. Generator Service NA 132
Custom Valve Repair Valve Service/Repair NA 131
Electro-Mec, Inc. Motor Service/Repair NA 129
Complete Advanced Instrumentation Services NA 127
Maintenance Corp.
Beckwith Machinery Co. Crane Repair NA 120
Speranza Specialty Machine Services NA 119
Machinery
Bailey Controls Company Boiler System Services NA 116
Howden Fan Co. Fan Inspection Service-Conemaugh NA 116
Inspection Services, Inc. Ultrasonic Tube Testing NA 112
James A. Redding Modify Rail Coal Sampling System NA 111
Performance Machining Inc. Machine Services NA 111
Newport News Recirculating Pump NA 110
Industrial Corp. Repair/Service
Law Engineering Piney 5-Year Safety Inspection NA 109
R&P Industrial Chimney Painting/Coating Services NA 105
Co., Inc.
Hydro Technical High Pressure Water Cleaning NA 103
Services, Inc.
853 Others (under $100,000) -- 8,553
------
Sub-Total $51,665
-------
<PAGE>
27C
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON
AMOUNT
ASSOCIATE
- --------------------------------------------------------------------------------
Tree Trimming/Removal & Spraying
- --------------------------------
4 Others (under $100,000) -- $ 22
------
Temporary Nonprofessional Help
- ------------------------------
7 others (under $100,000) -- $ 135
------
Legal Services
- --------------
Winston & Strawn Environmental Legal Services NA $ 503
Zimmer Kunz Litigation Services NA 183
Stier, Anerson & Malone Legal Services - Sayreville Sta. NA 104
34 Others (under $100,000) -- 493
------
Subtotal $ 1,283
------
Professional Services - Other
- -----------------------------
The Brattle Group Assessment of Genco's Assets NA $ 704
World Wide Products, Inc. Boiler Service NA 348
Electric Power Research Consulting Services NA 300
Institute
Standard Laboratories Coal Preparation/Analysis NA 230
Pennsylvania Fish & Boat Environmental Services NA 215
Commission
KPMG Peat Marwick Financial Statements Audit NA 172
Hutnik, Davis & Consulting Services - Chestnut NA 136
McClenahen Ridge Vegetation Studies
Earth Sciences Engineering Services - Water NA 113
Consultants, Inc. Permitting Application
154 Others (under $100,000) -- 1,789
------
Sub-Total $ 4,007
------
Total $57,112
=======
<PAGE>
28
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- --------------------------------------------------------------------------------
HOSPITAL, SURGICAL, MEDICAL AND DENTAL INSURANCE 10,130
PENSION PLAN 6,591
O.P.E.B. - HEALTH INSURANCE 6,542
VACATION ACCRUAL 2,825
EMPLOYEE SAVINGS PLAN 1,747
O.P.E.B. - LIFE INSURANCE 683
LONG-TERM DISABILITY - INCOME BENEFITS 540
EDUCATIONAL REIMBURSEMENT 60
ORDINARY LIFE INSURANCE 25
OTHER BENEFITS (Under $25,000) 96
------
TOTAL $29,239
=======
<PAGE>
29
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
- --------------------------------------------------------------------------------
EDITORIAL, EDUCATIONAL,
AND INFORMATIONAL
ADVERTISING TOM SHEEHAN, INC. $ 10
NEWSPAPER, MAGAZINE, AND
PAMPHLET ADVERTISING VARIOUS 1
-----
TOTAL $ 11
=====
<PAGE>
30
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- --------------------------------------------------------------------------------
None
<PAGE>
31
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
TYPE OF PROPERTY AMOUNT
- --------------------------------------------------------------------------------
BROAD STREET OFFICE RENT $ 2,469
OTHER EQUIPMENT 1,373
TRANSPORTATION EQUIPMENT 528
DUPLICATING EQUIPMENT 142
UNIFORMS 71
BUILDINGS AND TRAILERS 28
MISCELLANEOUS 108
------
TOTAL $4,719
======
<PAGE>
32
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
KIND OF TAX AMOUNT
- --------------------------------------------------------------------------------
(1) OTHER THAN U. S. GOVERNMENT TAXES
Local Real Estate - Pennsylvania $ 104
Pennsylvania Unemployment Insurance 526
New Jersey Unemployment Insurance 47
Maryland Unemployment Insurance 1
---
Subtotal 678
---
(2) TAXES - U. S. GOVERNMENT
FICA Taxes 8,099
Federal Unemployment Insurance 106
Title V Emissions Assessment 1,663
-----
Subtotal 9,868
-----
Total $10,546
=======
<PAGE>
33
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
-------------------------------------------------------------------------------
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 $ 21
United Way of Indiana County United Way 9
13 Organizations (under $3,000) United Way 14
48 Organizations (under $3,000) Emergency Services 16
Community Foundation of
Greater Johnstown Community Services 12
Foundation for a Drug
Free Penna. Community Services 5
140 Organizations (under $3,000) Community Services 78
24 Organizations (under $3,000) Health Services 9
31 Organizations (under $3,000) Education 10
Johnstown Symphony Orchestra Cultural 4
6 Organizations (under $3,000) Cultural 6
St. Francis College Capital Drive 7
3 Organizations (under $3,000) 6
---
TOTAL $197
====
<PAGE>
34
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
- --------------------------------------------------------------------------------
Sale of Gilbert #6 Fuel
Oil to PP&L - Loss N/A $982
- --------------------------------------------------------------------------------
TOTAL $982
====
<PAGE>
35
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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, 1997
ORGANIZATION CHART
------------------
----------------------------------------------------
| BOARD OF DIRECTORS |
----------------------------------------------------|
| President |
---------------------------------------------------|
| Comptroller & Chief Acctg. Officer |
|--------------------------------------------|
| | Team Leader - Financial Support |
| ----------------------------------------|
| 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 |
| | -----------------------------------|
| | Keystone/Conemaugh Program Director |
| ---------------------------------------|
| Resource Acquisition & Logistic Dir. |
|--------------------------------------------|
| | Team Leader-Logistics/Contracts |
| |---------------------------------------|
| | Team Leader-Fuels |
| ----------------------------------------|
| Process Owner - Recruit & Develop People |
|--------------------------------------------|
| | Team Leader-R&DP |
| ----------------------------------------|
| | Team Leader-Communication |
| ----------------------------------------|
| | Team Leader-Protect Assets |
| ----------------------------------------|
| Director-Generation Opers. |
|--------------------------------------------|
| | Technical Services Director |
| ----------------------------------------|
| | Team Leader-Modify Plant |
| ----------------------------------------|
| 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, 1997
- --------------------------------------------------------------------------------
VENTURE DISCLOSURES
- --------------------------------------------------------------------------------
SEC FILE No. 70-8289
(SEC ORDER ISSUED SEPTEMBER 11, 1996)
-------------------------------------
Provision of operation and maintenance services to non-utility generators.
SEC File No. 70-8409
(SEC Order Issued July 22, 1997)
--------------------------------
Provision of services to GPU International and exempt wholesale generators
("EWGs") and foreign utility companies ("FUCOs") in which GPU owns an interest.
<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: 4/30/98
-----------------
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<CIK> 0001032108
<NAME> GPU GENERATION, INC.
<MULTIPLIER> 1,000
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<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
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<TOTAL-ASSETS-AND-DEBITS> 85,417
<TOTAL-PROPRIETARY-CAPITAL> (36)
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<EMPLOYEE-PENSION-AND-BENEFIT> 28,563
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<TOTAL-EXPENSES> 782,418
<NET-INCOME> 0
<TOTAL-EXPENSES-DIRECT-COST> 756,180
<TOTAL-EXPENSES-INDIRECT-COST> 26,238
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