Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1998 and Ending December 31, 1998
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>
<TABLE>
<CAPTION>
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
<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) 759 759
------ ------
Total Investments 759 759
------ ------
CURRENT AND ACCRUED ASSETS
131 Cash - -
134 Other special deposits 211 249
135 Working funds 90 81
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Other accounts receivable 9,506 17,384
144 Accumulated provision for uncollectible
accounts - -
146 Accounts receivable from associated
companies Schedule V) 98,054 48,410
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Plant materials and operating supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 4,926 -
174 Miscellaneous current and accrued
assets (Schedule VIII) - -
------ ------
Total Current and Accrued Assets 112,787 66,124
------- ------
DEFERRED DEBITS
181 Unamortized debt expense - -
183 Preliminary survey and investigation charges - -
184 Clearing accounts 1,051 77
186 Miscellaneous deferred debits (Schedule IX) 3,388 1,322
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 14,539 17,135
------ ------
Total Deferred Debits 18,978 18,534
TOTAL ASSETS AND OTHER DEBITS $132,524 $85,417
======== =======
</TABLE>
<PAGE>
<TABLE>
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
<S> <C> <C> <C>
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) (216) (86)
216 Unappropriated retained earnings (Schedule XI) - -
------ ------
Total Proprietary Capital (166) (36)
----- -------
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 - -
<C> <C> <C>
232 Accounts payable 68,478 49,530
233 Notes payable to associated
companies (Schedule XIII) - -
234 Accounts payable to associated
companies Schedule XIII) 17,479 3,335
236 Taxes accrued 1,062 1,842
237 Interest accrued 69 58
238 Dividends declared - -
241 Tax collections payable (427) 192
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 17,398 16,872
243 Obligations under capital leases-current - -
------ ------
Total Current and Accrued Liabilities 104,059 71,829
------- ------
DEFERRED CREDITS & OTHER NON-CURRENT LIABILITIES
227 Obligations under capital lease - non-current - -
228.2 Accumulated provision for injuries and damages 1,091 1,364
228.3 Accumulated provision for pensions and benefits 27,441 12,249
253 Other deferred credits - -
255 Accumulated deferred investment tax credits - -
------ ------
Total Deferred Credits & Other
Non-Current Liabilities 28,532 13,613
------ ------
282 ACCUMULATED DEFERRED INCOME TAXES 99 11
---------------------------------
TOTAL LIABILITIES AND PROPRIETARY
------ -------
CAPITAL $132,524 $85,417
======= ======
</TABLE>
<TABLE>
<CAPTION>
6
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
<C> <C> <C> <C> <C> <C>
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/ - - - - -
-
<S> <C> <C> <C> <C> <C>
TOTAL $ - $ - $ - $ - $ -
===== ==== ==== ==== ====
<FN>
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
N/A
</FN>
</TABLE>
<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>
<TABLE>
<CAPTION>
8
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
- -------
<S> <C> <C> <C> <C> <C>
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 - - - - -
---- ---- ---- ---- ----
$ - $ - $ - $ - $ -
==== ==== ==== ==== ====
<FN>
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
N/A
</FN>
</TABLE>
<PAGE>
9
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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 $ 752 $ 752
Health Care Reserve -
Keystone Health Plan Mgmt. Co.
(Central Claim Deposit Reserve) 7 7
----- -----
759 759
----- -----
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
NONE
----- -----
TOTAL $ 759 $ 759
===== =====
<PAGE>
<TABLE>
<CAPTION>
10
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
<S> <C> <C> <C>
JERSEY CENTRAL POWER & LIGHT COMPANY $ 3,507 $ 20,427
METROPOLITAN EDISON COMPANY 28,100 38,970
PENNSYLVANIA ELECTRIC COMPANY 16,618 38,480
GPU INTERNATIONAL, INC. 144 101
GPU POWER, INC. 41 76
GPU ELECTRIC, INC. - -
GPU SERVICE, INC. - -
GPU NUCLEAR, INC. - -
TOTAL $ 48,410 $ 98,054
======= =======
<FN>
- --------------------------------------------------------------------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
NONE
TOTAL PAYMENTS -
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
11
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
<S> <C> <C> <C>
$ 8,558 $ 3,318 $11,876
JERSEY CENTRAL POWER & LIGHT CO. ( 316) (13) ( 329)
PENNSYLVANIA ELECTRIC CO. (2,584) (1,062) (3,646)
METROPOLITAN EDISON CO. (1,516) (260) (1,776)
NONASSOCIATED JOINT-OWNERS (4,142) (1,983) (6,125)
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 $ - $ - $ -
====== ====== =======
<FN>
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.
</FN>
</TABLE>
<PAGE>
<TABLE>
12
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED $ 739 $ 440 $ 1,179
JERSEY CENTRAL POWER & LIGHT CO. ( 52) ( 31) ( 83)
METROPOLITAN EDISON CO. ( 171) ( 102) ( 273)
PENNSYLVANIA ELECTRIC CO. ( 169) ( 101) ( 270)
NONASSOCIATED JOINT-OWNERS ( 347) ( 206) ( 553)
<FN>
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.
</FN>
<S> <C> <C> <C>
TOTAL $ - $ - $ -
====== ====== ========
</TABLE>
<PAGE>
13
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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, 1998
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 $ 555 $ 439
Acct. 186.4 Balance - Adjustments to
Intercompany Receivable/Payables
507 2,898
General Engineering Services for Other
GPU Companies (17) 63 9
Normal O&M - Hazelton, PA Project 49 30
EMS Link to Real Time Mgmt.
(R&D Awaiting Funding) 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 1998/1999 8 (17)
New York State Electric & Gas 8 8
Project Assessments for GPU International (3) 5 (1)
Portland, PA Gas Turbine 1 -
Acct. 186.21 Balance- Misc. Deferred Debits
- Billed - 3
Acct. 186.8 Balance- Misc. Deferred Debits
- Accounts Payable - 23
Acct. 186.01- Balance Sheet and Income
Statement Accounts (2) - (4)
------- --------
TOTAL $ 1,322 $ 3,388
====== =======
<PAGE>
15
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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 $ 1,873
Hybrid SNCR/SCR Demo at Seward Station 210
North American Research for Ozone 120
EPRI TC - Utilizing ICCP for Dispatch 120
Generation and Storage 112
Conemaugh Boiler Optimization 90
General - Subsidiaries 73
MK Burner Testing 71
Firing Wood Waste w/Coal in a Wall Fired Boiler 65
Development of Low Temp Catalysts 56
Gas Turbine Durability Program 44
Upgraded Coal Interest Group 40
EPRI 30
HCCP Centrifuge Effluent Formulation/Combustion 26
Coal Utilization Research Council 24
Combustion Turbine & Combined Cycle Users Org. 23
Coal Slurry Technical Assoc. 18
Small Tree Replacement (Met-Ed) 17
EPRI Y2K Embedded Systems Project 15
Weld Filler Metal Endurance Limit 15
General - GPUS, Inc. 11
UBECA Membership 10
Penn State Acid Deposition 10
Biomass Interest Group Membership 9
Environmental 9
<PAGE>
15A
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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)
PEERC Participation 7
EPRI Fossil RRAC Membership 6
Firing Coal Water Slurry in Tank (7)
JERSEY CENTRAL POWER & LIGHT CO. (389)
METROPOLITAN EDISON CO. (669)
PENNSYLVANIA ELECTRIC CO. (1,995)
NONASSOCIATED JOINT-OWNERS (44)
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>
<CAPTION>
16
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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.
- --------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- --------------------------------------------------------------------------------
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL
NONE
<S> <C> <C>
ACCOUNT 215 - RETAINED EARNINGS/ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS) $ (216)
GPU Generation, Inc. Excess Pension Plan Minimum Liability Requirement
-------
TOTAL $ (216)
=====
<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.
BALANCE AT NET INCOME BALANCE AT
DESCRIPTION BEGINNING OR DIVIDENDS CLOSE OF
OF YEAR (LOSS) PAID YEAR
- --------------------------------------------------------------------------------
ACCOUNT 216 - UNAPPROPRIATED
RETAINED EARNINGS
NONE
----- -----
TOTAL $ - $ -
===== =====
* In Whole Dollars
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
17
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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.
<S> <C> <C> <C> <C> <C> <C> <C>
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
ACCOUNT 223 - ADVANCES FROM ASSOCIATE
COMPANIES:
NONE
ACCOUNT 224 - OTHER LONG-TERM DEBT:
NONE
<S> <C> <C>
------- ---------
TOTAL $ - $ -
====== ==========
<FN>
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
18
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
<S> <C> <C>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
NONE
------- -------
TOTAL $ - $ -
====== ======
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
GPU SERVICE, INC. $ 2,803 $14,312
GPU NUCLEAR, INC. 368 3,153
GPU, INC. 164 14
------- -------
TOTAL $ 3,335 $17,479
====== ======
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
ACCRUALS
- VACATION PAY $ 9,080 $ 8,409
- BONUS PAY/INCENTIVE COMPENSATION 5,485 6,640
- OFFICERS DEFERRED COMPENSATION 1,373 1,605
- SICK PAY 703 637
- WORKERS' COMPENSATION PREMIUMS 172 79
- INSURANCE 33 (2)
- STORES UNDISTRIBUTED-CREDIT BALANCE 26 30
- GILBERT COMBUSTION TURBINE #9
LIABILITY FOR PROGRESS PAYMENTS DUE - -
- SEVERANCE PAY - -
------- -------
TOTAL $16,872 $17,398
====== ======
</TABLE>
<PAGE>
19
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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>
<TABLE>
<CAPTION>
20
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
INCOME
<S> <C> <C> <C>
457 Services rendered to associate companies $376,021 $380,651
458 Services rendered to nonassociated
companies 385,640 401,563
421 Miscellaneous income or loss - -
419 Interest income 221 204
-------- --------
Total Income 761,882 782,418
------- -------
EXPENSES-Income Statement
500-557 Power production 664,912 682,669
560-598 Transmission & distribution expenses 592 530
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 40,361 19,365
924 Property insurance 938 819
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 10,170 10,546
409-411.4 Income taxes 200 131
426-426.5 Other deductions 333 1,326
427-431 Interest expense - -
------- -------
Total Expenses-Income Statement 717,506 715,386
------- -------
EXPENSES-Balance Sheet
107 Construction work in progress 41,101 59,488
108-115 Accumulated provision for depreciation 3,533 7,969
163 Stores expenses undistributed - -
174 Miscellaneous current & accrued assets - -
183 Preliminary survey and investigation (251) (425)
186 Miscellaneous deferred debits (7)
188 Research & development (7) 7
--------- -------
Total Expenses-Balance Sheet 44,376 67,032
------ --------
Net Income or (Loss) $ - $ -
======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
21
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
<S> <C> <C> <C> <C>
& LIGHT COMPANY $ 81,452 $ 4,763 $ - $ 86,215
METROPOLITAN EDISON COMPANY 130,491 4,804 - 135,295
PENNSYLVANIA ELECTRIC COMPANY 148,113 6,398 - 154,511
TOTAL $ 360,056 $ 15,965 $ - $ 376,021
======== ======= ======= ========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
22
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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 $ 12,957 $ 174 $ - $13,131 $ - $ 13,131
BALTIMORE GAS & ELECTRIC 65,795 848 - 66,643 - 66,643
CLEVELAND ELECTRIC ILLUMINATING CO. 1,359 145 - 1,504 - 1,504
DELMARVA POWER & LIGHT 15,337 203 - 15,540 - 15,540
NEW YORK STATE ELECTRIC & GAS 30,843 2,123 - 32,966 - 32,966
PENNSYLVANIA POWER & LIGHT 49,116 648 - 49,764 - 49,764
PHILADELPHIA ELECTRIC 86,263 1,140 - 87,403 - 87,403
POTOMAC ELECTRIC POWER 19,576 279 - 19,855 - 19,855
PUBLIC SERVICE ELECTRIC & GAS 95,151 1,412 - 96,563 - 96,563
UGI CORPORATION 2,239 32 - 2,271 - 2,271
$378,636 $ 7,004 - $385,640 $ - $385,640
======= ====== ======= ======== ========== ========
========
<FN>
INSTRUCTION: Provide a brief description of the services rendered to each
nonassociated company:
Operating Costs - Joint-Owned Generating Stations.
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
23
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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 $299,797 $10,191 $309,988 $349,458 $ 5,465 $354,923 $649,255 $15,656 $664,911
560-598 TRANSMISISSION AND
DISTRIBUTION EXPENSES 193 - 193 399 - 399 592 - 592
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 35,454 (1,185) 34,269 6,294 (202) 6,092 41,748 (1,387) 40,361
924 PROPERTY INSURANCE 208 - 208 730 - 730 938 - 938
925 INJURIES AND DAMAGES - - - - - - - - -
926 EMP. PENSIONS & BENEFITS - - - - - - - - -
927-935 OTHER ADMINISTRATIVE &
GENERAL EXPENSES - - - - - - - - -
403-407 DEPREC. & AMORTIZATION - - - - - - - - -
408 TAXES OTHER THAN INCOME
TAXES 1,075 6,730 7,805 185 1,989 2,174 1,260 8,719 9,979
409-411.4 INCOME TAXES - 439 439 - (42) (42) - 391 391
419.001 OTHER INC./DED. -
INTEREST-OTHER (36) - (36) (185) - (185) (221) - (221)
426.1-426.5 OTHER DEDUCTIONS 261 261 72 - 72 333 - 333
427-431 INTEREST EXPENSE - - - - - - - - -
------- ------ ------- ------- ----- ------ ------- ------ -------
TOTAL EXPEMSE-INCOME STATEMENT: 336,952 16,175 353,127 356,953 7,204 364,157 693,905 23,379 717,284
------- ------- ------- ------- ----- ------- ------- ------ -------
EXPENSES-BALANCE SHEET
107 CONST. WORK IN PROGRESS 21,458 (196) 26,262 20,026 (186) 19,840 41,484 (382) 41,102
108-115 ACCUMULATED PROVISION
FOR DEPRECIATION 1,688 (14) 1,674 1,873 (14) 1,859 3,561 (28) 3,533
163 STORES EXP. UNDISTRIBUTED - - - - - - - - -
174 MISCELLANEOUS CURRENT &
ACCRUED ASSETS - - - - - - - - -
183 PRELIM. SURV. & INVEST. (41) - (41) (210) - (210) (251) - (251)
186 MISC. DEFERRED DEBITS - - - - - - - - -
188 RESEARCH & DEVELOPMENT (1) - (1) (6) - (6) (7) - (7)
------- ------ ------ ------- ------- ---- ------- ------- ------
TOTAL EXPENSES-BALANCE SHEET: 23,104 (210) 22,894 21,683 (200) 21,483 44,787 (410) 44,377
------- ------- ------- ------- ----- -------- -------- ------ -------
TOTAL EXPENSES: $360,056 $15,965 $376,021 $378,636 $7,004 $385,640 $738,692 $22,969 $761,661
<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>
<CAPTION>
24
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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 $664,911 $ 15,656 $ 12,850 $130,920 $76,394
560-598 Transmission and Distribution
Expenses 592 - 590 2 -
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 40,361 (1,387) 1,135 14,984 19,999
924 Property Insurance 938 - 782 - -
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 9,979 8,719 1,260 - -
409-411.4 Income Taxes 391 391 - - -
419-001 Other Inc./Dec.-Interest Other (221) - (221) - -
426.1-426.5 Other Deductions 333 - 289 1 1
427-431 Interest Expense - - - - -
------- ------- ------- ------- ------
TOTAL EXPENSES-INCOME STATEMENT: 717,284 23,379 16,685 145,907 96,394
------- ------- ------- ------- -------
EXPENSES-BALANCE SHEET
107 Construction Work in Progress 41,102 (383) 31,121 (227) 6,717
108-115 Accumulated Provision for
Depreciation 3,533 (30) 2,887 366 235
163 Stores Expenses Undistributed - - - - -
174 Miscellaneous Current &
Accrued Assets - - - - -
183 Preliminary Survey & Investigation (251) - (232) - -
186 Miscellaneous Deferred Debits - - - - -
188 Research & Development (7) - (7) -
------- ------- ------- ------- -------
TOTAL EXPENSES-BALANCE SHEET: 44,377 (413) 33,769 139 6,952
------- ------- ------- ------- -------
TOTAL EXPENSES: $761,661 $ 22,966 $ 50,454 $146,046 $103,346
------- ------- ------- ------- -------
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.
</TABLE>
<PAGE>
25
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
FOR THE YEAR ENDED DECEMBER 31, CURRENT YEAR
DESCRIPTION OF EXPENSES ENGINEERING FUELS ADMINISTRAITON
500-557 $ 16,471 $387,548 $ 25,072
560-598 - - -
901-905 - - -
906-917 - - -
920 - - -
921 - - -
922 - - -
923 1,657 1,577 2,396
924 - - 156
925 - - -
926 - - -
927-935 - - -
403-407 - - -
408 - - -
409-411.4 - - -
419-001 - - -
426.1-426.5 1 - 41
427-431 - - -
-------- ------- --------
TOTAL EXPEMSE-
INCOME STATEMENT 18,129 389,125 27,665
-------- ------- --------
EXPENSES-BALANCE SHEET
107 2,395 346 1,133
108-115 (4) 1 78
163 - - -
174 - - -
183 (19) - -
186 - - -
188 - - -
--------- ------- --------
TOTAL EXPENSE-
BALANCE SHEET: 2,372 347 1,211
--------- ------- --------
TOTAL EXPENSES: $ 20,501 $389,472 $ 28,876
--------- ------- --------
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>
<TABLE>
<CAPTION>
26
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
CORPORATE SUPPORT $ 15,662 $ - $ 10,162 $ 5,500 201
STATION DIRECT
OPERATIONS 29,899 - 19,950 9,949 429
MAINTENANCE 47,413 - 26,685 20,728 663
ENGINEERING 4,019 - 2,204 1,815 54
FUELS 6,864 - 3,490 3,374 111
ADMINISTRATIVE 3,714 - 2,567 1,147 64
-------- ------- -------- -------- ------
TOTAL $107,571 $ - $ 65,058 $ 42,513 1,522
======= ======= ======= ======= ======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
27
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1998
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
<S> <C> <C> <C>
R&L Development Co. Civil Construction NA $ 4,607
NPS Energy Services, Inc. Precipitator Roof Steel NA 4,585
Replacement
ABB Combustion Engineering Emergency Boiler & Mechanical NA 3,815
Services Repairs
Harsco Corporation Scaffolding Services NA 2,934
Welding Services, Inc. Boiler Waterwall Weld Overlay NA 1,771
Gap Pollution & Precipitator High Pressure NA 1,715
Environmental Water Cleaning
Kirby Electric Service, Electrical Construction/Repairs NA 989
Inc.
Parsons Power Group, Inc. Technical Support Services & NA 753
Field Construction Support
Services
Global Power Company Insulation & Lagging Services NA 751
Burnham Industrial Insulation & Lagging Services NA 704
Contractors
General Electric Co. Turbine Services NA 660
Francis J. Palo, Inc. Civil Construction NA 566
Westinghouse Electric Turbine Generator Installation/ NA 554
Corp. Repairs
Ingersoll-Dresser Pump Co. In-Shop Pump Repairs NA 516
Safari Contract Cleaners Janitorial Services NA 490
Allegheny Mfg. & Elect. Motor Service/Repair NA 458
Service Inc. Keystone Station
East Coast Mgmt., Inc. Overhaul & Maintenance Services NA 426
Latrobe Window Cleaning Co. Janitorial Services NA 410
Millar Elevator Elevator Upgrade NA 389
Services Co.
Commercial Testing & Coal Surveys NA 375
Engineering
Honeywell Service Representative NA 372
Fan Services Associates Fan Blade Wear Nose NA 368
Fabrication & Overplating
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
27A
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1998
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.)
<S> <C> <C> <C>
Standard Laboratories Coal Preparation/Analysis NA $ 348
Cannon Sline Painting Services NA 342
World Wide Products, Inc. Boiler Service NA 313
Conco Services, Inc. Condenser Tube Cleaning NA 286
Arco Enterprises Sandblasting Services NA 285
SE Technologies, Inc. Engineering Consulting Services - NA 275
Keystone Station
American Boiler & Chimney Mechanical Construction NA 271
Raytheon Engineers & Control Computer System NA 252
Constructors Modernization & Technical
Support Services
Calibration Testing & Repair/Calibrate Components at NA 249
Instrumentation, Inc. Keystone Station
Praxair Surface Tech, Coating Service NA 244
Inc.
Dolan's Welding & Incidental Welding Services NA 231
Steel Fabrication
C.T. & Elecrical Services Inspection/Repair of Station NA 209
Sauer, Inc. Pipe Installation NA 194
Mentzel Electric Co. Crane Repair NA 184
Wiltronics Equipment Repairs NA 181
Pavilion Technologies Computer Software/Hardware - NA 160
Conemaugh Station
Advanced Environmental Generation Waste Services NA 153
Technical Services
Turbo Research, Inc. Turbine Services/Repairs NA 143
MK Engineering Inc. Boiler Repairs NA 138
Industrial Tube Condenser Tube & Turbine Cleaning NA 137
Cleaning, Inc.
Sofis Company, Inc. Ash Hopper Refactory Repairs NA 134
Homer City Coal Coal Cleaning Plant NA 133
Processing Corp. Operations
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
27B
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1998
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.)
<S> <C> <C>
Team Industrial Valve Service/Repair NA $ 127
Services, Inc.
Electric Motor&Supply,Inc. Motor Service/Repairs NA 123
A C Compressor Corp. Compressor Repairs NA 122
Preco Turbine Services Turbine Services/Repairs NA ` 122
Inc.
Bailey Controls Company Boiler System Services NA 120
D. B. Kelly Assoc., Inc. Security Guard Service NA 117
Harza Engineering Co. Engineering Services/Inspections NA 117
C. H. Heist Corporation High Pressure Water Cleaning NA 115
TRC Environmental Corp. Consulting Service for Air NA 114
Quality Analysis
Speranza Specialty Machine Services NA 109
Machinery
Kircon-Breco, Inc. HVAC Repairs NA 106
CBP Engineering Corp. Boiler Piping/Fitting Repairs NA 105
AC&S, Incorporated Asbestos Abatement Service NA 103
Newport News Recirculating Pump NA 103
Industrial Corp. Repair/Service
Inspection Services, Inc. Ultrasonic Tube Testing NA 102
James A. Redding Modify Rail Coal Sampling System NA 101
804 Others (under $100,000) -- 9,340
- --- -------- -----
Sub-Total $44,216
-------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
27C
ANNUAL REPORT OF GPU GENERATION,INC.
For the Year Ended December 31, 1998
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
<S> <C> <C>
Tree Trimming/Removal & Spraying
2 Others (under $100,000) -- $ 12
------
Temporary Nonprofessional Help
6 others (under $100,000) -- $ 141
------
Legal Services
Winston & Strawn Environmental Legal Services NA $ 339
Berlack, Israels & General Legal Services - Plant NA 253
Liberman Operations
Zimmer Kunz Litigation Services NA 209
23 Others (under $100,000) -- 340
------
Subtotal $ 1,141
------
Professional Services - Other
Woodward-Clyde Environmental Services NA $ 1,701
Consultants, Inc.
GAI Consultants, Inc. Consulting Services NA 508
Keystone/Conemaugh
Reed Consulting Group Homer City Divestiture NA 282
Pilko & Associates Homer City Environmental Services NA 229
Pennsylvania Fish & Boat Environmental Services NA 205
Commission
KPMG Peat Marwick Financial Statements Audit NA 176
Pennsylvania State Univ. Homer City Retraining Program NA 142
Apple Mobile Medical Medical Surveillance NA 113
Spear Group, Inc. Computer Programming Services NA 105
108 Others (under $100,000) -- 1,102
-------
Sub-Total $ 4,563
------
Total $50,073
=======
</TABLE>
<PAGE>
28
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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 9,161
PENSION PLAN 5,845
O.P.E.B. - HEALTH INSURANCE 6,426
VACATION ACCRUAL (671)
EMPLOYEE SAVINGS PLAN 1,968
O.P.E.B. - LIFE INSURANCE 935
LONG-TERM DISABILITY - INCOME BENEFITS -
ORDINARY LIFE INSURANCE 37
GROUP LIFE INSURANCE 486
OTHER BENEFITS (Under $25,000) (110)
-------
TOTAL $24,077
=======
<PAGE>
29
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
None
<PAGE>
30
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
Title V Emissions Fees - Keystone Station $196
Title V Emissions Fees - Conemaugh Station 149
Contribution to Utilities Forestry Projects 10
Boiler Vessel Certificate Fees 6
----
TOTAL $361
====
<PAGE>
31
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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 $ 2,052
OTHER EQUIPMENT 1,285
DUPLICATING EQUIPMENT 128
UNIFORMS 83
TRANSPORTATION EQUIPMENT 82
BUILDINGS AND TRAILERS 14
MISCELLANEOUS 49
--------
TOTAL $3,693
========
<PAGE>
32
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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 $ 103
Pennsylvania Unemployment Insurance 574
New Jersey Unemployment Insurance 95
Maryland Unemployment Insurance 1
-----
Subtotal 773
----
(2) TAXES - U. S. GOVERNMENT
------------------------
FICA Taxes 7,951
Federal Unemployment Insurance 98
Title V Emissions Assessment 1,157
-----
Subtotal 9,206
-----
-------
Total $ 9,979
=====
<PAGE>
<TABLE>
<CAPTION>
33
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
<S> <C> <C>
Johnstown, Inc. United Way $ 18
United Way of Indiana County United Way 9
16 Organizations (under $3,000) United Way 18
47 Organizations (under $3,000) Emergency Services 15
Elderton Borough Traffic Light Community Services 10
Community Foundation of
Greater Johnstown Community Services 5
Foundation for a Drug
Free Penna. Community Services 5
136 Organizations (under $3,000) Community Services 73
26 Organizations (under $3,000) Health Services 12
40 Organizations (under $3,000) Education 15
Johnstown Symphony Orchestra Cultural 4
10 Organizations (under $3,000) Cultural 11
St. Francis College Capital Drive 6
Clearfield Hospital Capital Drive 5
1 Organization (under $3,000) 1
---
TOTAL $207
</TABLE>
<PAGE>
34
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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
None
<PAGE>
35
ANNUAL REPORT OF GPU GENERATION, INC.
For the Year Ended December 31, 1998
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, 1998
ORGANIZATION CHART
----------------------------------------------------
| BOARD OF DIRECTORS |
----------------------------------------------------|
| President |
---------------------------------------------------|
| Comptroller & Chief Acctg. Officer |
|--------------------------------------------|
| | Team Leader - Financial Support |
|--------------------------------------------|
| V.P. Generation |
|--------------------------------------------|
| | Maintenance Services Director |
| |---------------------------------------|
| | Generation Station Managers/Directors|
| |---------------------------------------|
| | | Sayreville/Werner/Forked River |
| | | Seward/Deep Creek |
| | | Titus |
| | | York Haven |
| | | Warren/Piney/Seneca |
| | | Shawville |
| | | Keystone |
| | | Conemaugh |
| | | Homer City |
| | | Portland/Yards Creek |
| | | Gilbert |
| | -----------------------------------|
| | 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 - Communications |
| ---------------------------------------|
| Team Leader - Protect Assets |
| ---------------------------------------|
| Director-Generation Opers. |
|--------------------------------------------|
| Technical Services 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, 1998
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
-----------------
