SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of
earliest event reported): August 29, 1995
GENERAL PUBLIC UTILITIES CORPORATION
(Exact name of registrant as specified in charter)
Pennsylvania 1-6047 13-5516589
(State or other (Commission (IRS employer
jurisdiction of file number) identification no.)
incorporation)
100 Interpace Parkway, Parsippany, New Jersey 07054
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (201) 263-
6500<PAGE>
ITEM 5. OTHER EVENTS
(a) Three Mile Island Unit 2
As previously reported, on September 20, 1995, the
Pennsylvania Supreme Court reversed a lower court decision and
restored a March 1993 order of the Pennsylvania Public Utility
Commission ("PaPUC") permitting Metropolitan Edison Company
("Met-Ed") to recover estimated Three Mile Island Unit 2 ("TMI-
2") decommissioning costs from customers. TMI-2 is jointly owned
by the GPU's three utility operating subsidiaries -- Met-Ed, 50%;
Pennsylvania Electric Company ("Penelec"), 25%; and Jersey
Central Power & Light Company ("JCP&L"), 25%.
Following the lower court's decision in July 1994, GPU
had written off, after tax, $104.9 million (Met-Ed - $72.8
million and Penelec - $32.1 million), or $0.91 per share in the
second quarter of 1994. The Supreme Court decision effectively
reverses this write off, and GPU therefore will report the entire
$104.9 million as income in the third quarter of 1995.
This amount includes $8.4 million of certain TMI-2
monitored storage costs which Met-Ed and Penelec had sought to
collect from Pennsylvania customers. Because, notwithstanding
the Supreme Court decision, those subsidiaries do not now believe
the collection of these costs to be probable, GPU is charging to
income $8.4 million, or $0.07 per share, in the third quarter of
1995.
A copy of GPU's related news release is annexed as an
exhibit.
(b) Non-Utility Generation Contracts
1<PAGE>
Also as previously reported, JCP&L and Met-Ed have
recently entered into agreements to buy out certain of their
uneconomic, long-term power purchase agreements ("PPAs") with
developers of proposed non-utility generation facilities.
JCP&L has bought out and has terminated the two 100 MW
PPAs for the proposed Crown/Vista Project, a 362 MW coal-fired
generating facility planned for construction in Glouster County,
New Jersey. JCP&L purchased the PPAs for $17 million. JCP&L
estimates that the excess cost of these PPAs over other available
sources is more than $700 million (1995 dollars). JCP&L intends
to seek authorization from the New Jersey Board of Public
Utilities to recover the $17 million buy-out cost from customers.
Met-Ed has entered into separate agreements to buy out
the proposed 100 MW Scranton Energy Project and to restructure or
buy out the planned 227 MW York County Energy Project.
Under the Scranton buyout agreement, Met-Ed has agreed
to pay to the Scranton developers $20 million to buy out and
terminate the PPA and will ask the PaPUC to approve the recovery,
through customer rates, of these buy-out costs. In addition,
Met-Ed has agreed to increase the buy-out price by up to an
additional $10 million if and to the extent that the PaPUC
permits Met-Ed to recover the additional amounts through customer
rates. Met-Ed has estimated that if built, the Scranton Energy
Project would have cost customers more than $350 million (1995
million) above the cost of other available sources of energy.
In the York Energy agreement, Met-Ed and the project
developers have agreed that the proposed coal-fired project will
not be built, and that the parties will instead attempt to
2<PAGE>
restructure the PPA to allow for the development of a natural
gas-fired facility. Met-Ed has agreed to pay the York Project
developers up to $30 million to terminate the coal-fired project
development and an additional $5 million if the PPA cannot be
restructured. Met-Ed will ask the PaPUC for approval to recover
the buy-out costs from customers.
Copies of JCP&L's and Met-Ed's related news releases
are annexed as exhibits.
ITEM 6. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS
(c) Exhibits
1. GPU News Release, dated September 22, 1995
2. JCP&L News Release, dated August 29, 1995
3. Met-Ed News Releases, dated August 29 and
September 26, 1995
3<PAGE>
SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE
ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE
SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO DULY
AUTHORIZED.
GENERAL PUBLIC UTILITIES
CORPORATION
By:______________________________
T. G. Howson, Vice President
and Treasurer
Date: October 4, 1995<PAGE>
EXHIBITS TO BE FILED BY EDGAR
Exhibits:
1. GPU News Release, dated September 22, 1995
2. JCP&L News Release, dated August 29, 1995
3. Met-Ed News Releases, dated August 29 and
September 26, 1995<PAGE>
Exhibit 1
NEWS RELEASE LETTERHEAD OF
GENERAL PUBLIC UTILITIES CORPORATION
Further Information Lorraine Pelter
(201) 263-6243 Date: Sept. 22,
1995
For release: Immediately
GPU TO REFLECT PA. SUPREME COURT DECISION IN THIRD
QUARTER FINANCIAL STATEMENTS
Parsippany, N.J., Sept. 22, 1995 -- General Public
Utilities Corporation (GPU) will be reflecting the result of the
Pennsylvania Supreme Court's favorable September 20 decision in
its third quarter 1995 financial statements.
The Pennsylvania Supreme Court decision restores a March
1993 Pennsylvania Public Utility Commission order that permitted
GPU's Metropolitan Edison Company (Met-Ed) subsidiary to recover
estimated Three Mile Island Unit 2 (TMI-2) decommissioning costs
from customers. TMI-2 is jointly owned by GPU's three operating
subsidiaries -- Met-Ed, 50%; Pennsylvania Electric Company
(Penelec), 25%; and Jersey Central Power & Light Company (JCP&L),
25%.
The court decision on Wednesday reversed a July 1994
Pennsylvania Commonwealth Court decision that disallowed the
collection of revenues from customers for TMI-2 decommissioning
costs. As a result of that decision, the GPU System had written
off in the second quarter of 1994 a total of $104.9 million
(after-tax), or $0.91 per share. By company, the amounts taken
as charges to income were $72.8 million for Met-Ed and $32.1
million for Penelec. The favorable Pennsylvania Supreme Court
decision effectively reverses this previous write-off.<PAGE>
Also, the company has determined at this time that the
recovery of certain TMI-2 monitored storage costs from
Pennsylvania customers is not probable. As a result, GPU is
charging to income $8.4 million, or $0.07 per share, in the third
quarter of 1995.
JCP&L was not affected by the decision and has been
permitted by the New Jersey Board of Public Utilities to recover
TMI-2 decommissioning costs from its customers.<PAGE>
Exhibit 2
NEWS RELEASE LETTERHEAD OF JCP&L
Further Information: Donna Revins 201.455.8408
Ron Morano 201.644.4297
Release Date: 09/29/95
JCP&L, CROWN/VISTA CANCEL POWER PROJECT
Morristown, NJ -- Jersey Central Power & Light Company
(JCP&L) announced today that it had reached an agreement for the
cancellation of two power projects planned for Gloucester County,
N.J.
The two power projects were being developed by Crown Energy
L.P. and Vista Energy L.P. (Crown/Vista), affiliates of Mission
Energy Company.
Under the agreement, JCP&L will buy out and terminate its
1990 power purchase agreements from Crown/Vista for $17 million.
Crown/Vista, which won JCP&L's competitive bid in 1989, had
entered into long-term power purchase agreements in 1990 to sell
JCP&L 200 megawatts from the proposed 362-megawatt coal-fired
projects in Gloucester County.
"Because legal and regulatory uncertainties continue to
revolve around the projects, we believe this agreement is in the
best interests of our customers," said Michael P. Morrell, JCP&L
vice president for regulatory and public affairs. "This is
particularly true because the excess future cost to our customers
over other available sources would be expected to exceed $700
million."
The power purchase agreements have been the subject of
ongoing regulatory and legal proceedings for more than two years.
Crown/Vista had encountered a series of project delays which
could have prevented it from meeting the 1997 in-service
contractual deadlines with JCP&L. The developers initially won
an in-service extension from the New Jersey Board of Public
Utilities. That decision was overturned by the Appellate<PAGE>
Division of the Superior Court earlier this year, but was being
appealed by Crown/Vista.
In June, the New Jersey Assembly voted to extend
retroactively in-service deadlines of certain purchase power
agreements between nonutility generators and public electric
utilities. The legislation would have granted Crown/Vista more
time to develop the project. The State Senate was expected to
vote on the bill in the fourth quarter of this year.
The agreement, which is subject to certain third-party
consents, provides that JCP&L and Crown/Vista will terminate all
pending litigation and administrative proceedings between them
relating to the project, as well as any support for the pending
legislation.
The GPU companies have been committed to renegotiating or
buying out nonutility generating contracts which are more costly
than power available from other sources.
JCP&L is an operating utility subsidiary of General Public
Utilities Corporation (NYSE:GPU), a registered utility holding
company headquartered in Parsippany, N.J. GPU's three operating
utility subsidiaries -- JCP&L, Metropolitan Edison and
Pennsylvania Electric -- provide electric service to more than
1.9 million customers in New Jersey and Pennsylvania.<PAGE>
Exhibit 3
NEWS RELEASE LETTERHEAD OF MET-ED/PENELEC
For Further Information: Edward J. Shultz (610) 921-6602
Home Phone: (610) 678=4913
Neal Cody (Scranton Energy) (703) 361-
8454
Release Date: August 29, 1995 Release Number: 62-
95
MET-ED, SCRANTON AGREE TO SETTLEMENT
READING, PA., Aug. 29, 1995 - Metropolitan Edison Company
and Scranton Energy Partners today announced a buyout agreement
of the Scranton Energy Project originally proposed for Scranton,
Pa. and later moved to New Jersey.
Under the terms of the buyout, Met-Ed will ask the
Pennsylvania Public Utility Commission to approve the recovery,
through customer rates, of $30 million for Scranton Energy
development expenses associated with the project.
In 1991, Met-Ed signed a 20-year power purchase agreement
for the 100-megawatt Scranton Energy Project, a qualifying non-
utility generator under the Public Utility Regulatory Policies
Act of 1978.
"This buyout agreement is in the best interest of our
customers and the economic development of the Commonwealth of
Pennsylvania," Fred D. Hafer, president of Met-Ed and
Pennsylvania Electric Co (Penelec), said. "The future cost of
this project to our customers over other available electric
generation sources would have exceeded $350 million (1995
dollars)."
The agreement announced today resolves the dispute between
Scranton and Met-Ed that has been the subject of regulatory
proceedings.
Met-Ed is a subsidiary of General Public Utilities
Corporation (NYSE:GPU), a registered utility holding company
whose three operating subsidiaries - Met-Ed, Pennsylvania
Electric and Jersey Central Power & Light - provide electric<PAGE>
service to more than 1.9 million customers in Pennsylvania and
New Jersey.
Scranton Energy Partners if an affiliate of Ahlstrom
Development Corp., a developer of independent power projects with
headquarters in San Diego, Calif.<PAGE>
Exhibit 3
NEWS RELEASE LETTERHEAD OF MET-ED/PENELEC
For Further Information: Gary D. Plummer (814) 533-8474
(H): (814) 255-2404
Brad Hahn, YCEP 610-481-3955
Release Date: September 26, 1995 Release Number: 68-
95
JOINT NEWS RELEASE
MET-ED, YORK COUNTY ENERGY PARTNERS TO RESTRUCTURE COGEN PROJECT
READING, PA -- Metropolitan Edison Co. (Met-Ed) and York
County Energy Partners, L.P. (YCEP) announced today (September
26) their joint decision to restructure the power-purchase
agreement for YCEP's proposed coal-fired cogeneration project in
York County to address the needs of Met-Ed, its customers, YCEP
and the local community.
As part of this joint decision, Met-ed and YCEP have agreed
that the YCEP project will not be constructed as a coal-fired
facility. Instead, the two companies will seek to amend YCEP's
power-purchase agreement with Met-Ed to allow for the development
of a natural-gas-fired facility. Met-Ed will pay YCEP up to a
maximum of $35 million to end development of the coal-fired
project, for which Met-Ed intends to file a request with the
state Public Utility Commission seeking approval to recover from
customers through the Energy Cost Rate (ECR).
"Met-Ed believes this decision is very beneficial for our
customers because it will save them from paying what we forecast
to be up to $940 million above alternate costs for power over the
next 25 years," said Fred D. Hafer, president of Met-Ed and
Pennsylvania Electric Co., subsidiaries of General Public
Utilities Corp. He added, "This decision also will be good for
the Commonwealth in its efforts to attract and retain industry
and promote economic growth."
Wayne A. Hinman, president of YCEP, said, "Although we
firmly believe the coal project would have gone forward, we
believe the opportunity to explore the feasibility of a gas-fired<PAGE>
project is a reasonable and responsible course of action to meet
the objectives of all stakeholders."
It YCEP and Met-Ed are successful in their efforts for YCEP
to develop a gas-fired project, Hafer and Hinman said, it will be
structured to reflect conditions in the current power market.<PAGE>
