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
METROPOLITAN EDISON COMPANY
(Exact name of registrant as specified in charter)
Pennsylvania 1-446 23-0870160
(State or other (Commission (IRS employer
jurisdiction of file number) identification no.)
incorporation)
2800 Pottsville Pike, Reading, Muhlenberg Township, Berks County,
PA 19640-0001
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (610) 929-
3601<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 the Company to recover estimated
Three Mile Island Unit 2 ("TMI-2") decommissioning costs from
customers. TMI-2 is jointly owned by the Company, 50% and its
affiliates, Pennsylvania Electric Company ("Penelec"), 25%; and
Jersey Central Power & Light Company ("JCP&L"), 25%, all of which
are subsidiaries of General Public Utilities Corporation ("GPU").
Following the lower court's decision in July 1994, GPU
had written off, after tax, $104.9 million (the Company - $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 $5.7 million of certain TMI-2
monitored storage costs which the Company had sought to collect
from Pennsylvania customers. Because, notwithstanding the
Supreme Court decision, the Company does not now believe the
collection of these costs to be probable, it is charging to
income $5.7 million in the third quarter of 1995.
(b) Non-Utility Generation Contracts
Also as previously reported, the Company has recently
entered into agreements to buy out certain of its uneconomic,
long-term power purchase agreements ("PPAs") with developers of
proposed non-utility generation facilities.
1<PAGE>
The Company 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, the Company 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, the Company has agreed to increase the buy-out price by
up to an additional $10 million if and to the extent that the
PaPUC permits the Company to recover the additional amounts
through customer rates. The Company 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, the Company and the
project developers have agreed that the proposed coal-fired
project will not be built, and that the parties will instead
attempt to restructure the PPA to allow for the development of a
natural gas-fired facility. The Company 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. The Company will ask the PaPUC for
approval to recover the buy-out costs from customers.
Copies of the Company's related news releases are
annexed as exhibits.
2<PAGE>
ITEM 6. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS
(c) Exhibits
1. 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.
METROPOLITAN EDISON COMPANY
By:______________________________
T. G. Howson, Vice President
and Treasurer
Date: October 4, 1995<PAGE>
EXHIBIT TO BE FILED BY EDGAR
Exhibit:
1. Met-Ed News Releases, dated August 29 and
September 26, 1995<PAGE>
Exhibit 1
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>
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<PAGE>
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
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>
