SECURITIES AND EXCHANGE COMMISSION
Washington D.C. 20549
Form 11-K
ANNUAL REPORT
Pursuant to Section 15(d) of the
Securities Exchange Act of 1934
(Mark One):
ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES
X EXCHANGE ACT OF 1934.
For the fiscal year ended December 31, 1996
OR
TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934.
For the transition period from to
Commission file number 1-6047
PENNSYLVANIA ELECTRIC COMPANY
EMPLOYEE SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
2800 Pottsville Pike
Reading, Pennsylvania 19640-0001
(Full Title of the Plan and the Address of the Plan)
GPU, INC
100 Interpace Parkway
Parsippany, New Jersey 07054-1149
(Name of Issuer of the securities held pursuant to the
Plan and address of its principal executive office)
<PAGE>
PENNSYLVANIA ELECTRIC COMPANY
EMPLOYEE SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
INDEX OF FINANCIAL STATEMENTS
_______
Pages
Report of Independent Accountants 2
Financial Statements:
Statements of Net Assets Available for Plan
Benefits as of December 31, 1996 and 1995 3
Statements of Changes in Net Assets Available
for Plan Benefits for the years ended
December 31, 1996 and 1995 4
Notes to Financial Statements 5-15
<PAGE>
REPORT OF INDEPENDENT ACCOUNTANT
To the Administrative Committee of the
Pennsylvania Electric Company Employees
Savings Plan for Bargaining Employees:
I have audited the accompanying statements of net assets
available for plan benefits of Pennsylvania Electric Company
Employees Savings Plan for Bargaining Unit Employees (the "Plan")
as of December 31, 1996 and 1995, and the related statements of
changes in net assets available for plan benefits for the years
then ended. These financial statements are the responsibility of
the management of the Plan. My responsibility is to express an
opinion on these financial statement based on my audit.
I conducted my audits in accordance with generally accepted
auditing standards. Those standards require that I plan and
perform the audits to obtain reasonable assurance about whether
the statement of revenue and expenditures is free of material
misstatement. An audit includes examining, on a test basis,
evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation.
I believe that my audits provide a reasonable basis for my
opinion.
In my opinion, the financial statements referred to above
presents fairly, in all material respects, the net assets
available for plan benefits of the Plan as of December 31, 1996
and 1995, and the changes in net assets available for plan
benefits for the years then ended in conformity with generally
accepted accounting principles.
105 North 22nd Street
Philadelphia, Pennsylvania
May 16, 1997
2
<PAGE>
PENNSYLVANIA ELECTRIC COMPANY
EMPLOYEE SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
STATEMENTS OF NET ASSETS
AVAILABLE FOR PLAN BENEFITS
December 31, 1996 and 1995
_______
1996 1995
Investments in GPU Companies
Master Savings Plan Trust
at fair value $62,392,897 $52,788,908
Participant loans receivable 1,181,252 1,027,457
Net assets available for plan
benefits $63,574,149 $53,816,365
The accompanying notes are an integral
part of the financial statements
3
<PAGE>
PENNSYLVANIA ELECTRIC COMPANY
EMPLOYEE SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
STATEMENTS OF CHANGES IN NET ASSETS
AVAILABLE FOR PLAN BENEFITS
for the years ended December 31, 1996 and 1995
_______
1996 1995
Balances, beginning of year $53,816,365 $41,609,428
Increases:
Contributions:
Employee 6,482,448 5,403,704
Employer 678,865 634,248
Interest on loans 81,776 63,595
Net investment gain in GPU
Companies Master
Savings Plan Trust 5,455,871 7,298,736
12,698,960 13,400,283
Decreases:
Distributions and
withdrawals 3,169,406 1,173,866
Transfers to/(from) affiliated
savings plans (228,230) 19,480
2,941,176 1,193,346
Balances, end of year $63,574,149 $53,816,365
The accompanying notes are an integral
part of the financial statements.
4
<PAGE>
PENNSYLVANIA ELECTRIC COMPANY
EMPLOYEE SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
NOTES TO FINANCIAL STATEMENTS
_______
1. General Description of the Plan:
The following description of the Pennsylvania Electric
Company Employee Savings Plan for Bargaining Unit Employees
("Plan") provides only general information on the provisions
of the Plan in effect on December 31, 1996. Participants
should refer to the Benefits Handbook and the Plan document
and prospectus for a more complete description of the Plan's
provisions.
General:
The Plan is a defined contribution plan. In general, all
bargaining employees of Pennsylvania Electric Company
("Company") are eligible to participate if the employee is
employed on a full-time basis or has completed 1,000 hours of
service in a consecutive 12-month period.
The Plan is intended to qualify as a cash or deferred profit
sharing plan under Sections 401(a) and 401(k) of the Internal
Revenue Code. It is subject to the provisions of the
Employee Retirement Income Security Act of 1974 (ERISA). The
Company generally absorbs all administrative costs of the
Plan, except for certain trust administration costs which are
paid out of plan assets held in the trust. A participant is
eligible to transfer his account to an affiliated savings
plan upon a change in his employment status.
The Plan contains additional employer contribution and
employee savings features. Participants have the option to
transfer their 2% accounts in the Pension Plans to the
Savings Plan. Participants may also "rollover" distributions
received from other qualified plans to the Savings Plan.
Contributions:
The Plan provides two contribution options to a participant.
Subject to certain limitations set forth in the Plan, the
participant may elect (1) to have his base compensation
reduced by an amount equal to any whole percentage
(before-tax 401(k) contributions) which is contributed on
behalf of the employee by the Company; and/or (2) to
contribute by payroll deduction any whole percentage of base
compensation (after-tax).
Continued
5
<PAGE>
NOTES TO FINANCIAL STATEMENTS, Continued
_______
1. General Description of the Plan, continued:
Matching Program:
The Company provides a matching contribution to the Plan,
on behalf of each participant, in an amount equal to 25% of
a participant's aggregate contributions up to 4% of the
participant's base salary.
Investment Funds:
Participants may elect to have their Plan accounts invested
in one or more of the following eleven investment options:
. Units of Interest in an "Interest Income Fund", formerly
the "Fixed Fund" managed by Fidelity Management Trust
Company, the assets of which are invested primarily in
contracts issued by insurance companies, banks or other
financial institutions, and which has the objective of
obtaining a relatively stable level of current income
consistent with the preservation of capital and a high
degree of liquidity.
. Shares of the Fidelity Intermediate Bond Fund, an opened
end mutual fund to which Fidelity Management Trust Company
serves as investment advisor, and which has the primary
objective of obtaining the highest level of income by
investing in investment grade, fixed-income obligations.
. Shares of the Fidelity Puritan Fund, an opened end mutual
fund to which Fidelity Management Trust Company serves as
investment advisor, and which has the primary objective of
providing a balance between capital appreciation,
preservation of capital and generation of income.
Continued
6
<PAGE>
NOTES TO FINANCIAL STATEMENTS, Continued
_______
1. General Description of the Plan, continued:
Investment Funds, continued:
. Shares of the Fidelity Retirement Growth Fund, an opened
end mutual fund to which Fidelity Management Trust Company
serves as investment advisor, and which has the primary
objective of providing the opportunity for significant
capital appreciation.
. Shares of GPU, Inc. ("GPU") stock fund.
. Shares of the Fidelity U.S. Equity Index Commingled Pool
Fund ("S&P 500 Index Fund"), a commingled pool, to which
Fidelity Management Trust Company serves as investment
advisor, and which has the primary objective of providing
investment results that correspond to the total return of
the Standard & Poor's Index, a U.S. Equity Index made up
of 500 equity securities (stocks).
. Shares of the Fidelity OTC Portfolio Fund, an opened end
mutual fund, to which Fidelity Management Trust Company
serves as investment advisor, and which has the primary
objective of seeking long-term capital appreciation by
investing in securities that are traded in the over-the-
counter (OTC) securities market.
. Shares of the Fidelity Overseas Fund, an opened end mutual
fund, to which Fidelity Management Trust Company serves as
investment advisor, and which has the primary objective of
seeking long-term capital appreciation, primarily through
investments in foreign securities.
. Shares of the Fidelity Asset Manager: Income Fund, an
opened end mutual fund, to which Fidelity Management Trust
Company serves as investment advisor, and which has the
primary objective of investing in domestic and foreign
bonds (including emerging markets) and short term
instruments for income, but allows some investment in
stocks for their growth potential.
Continued
7
<PAGE>
NOTES TO FINANCIAL STATEMENTS, Continued
_______
1. General Description of the Plan, continued:
Investment Funds, continued:
. Shares of the Fidelity Asset Manager Fund, an opened end
mutual fund, to which Fidelity Management Trust Company
serves as investment advisor, and which has the primary
objective of seeking a high total return with reduced risk
over the long term. Asset Manager invests in all three
investment classes; stocks, bonds and short term
instruments both domestic and foreign.
. Shares of the Fidelity Asset Manager: Growth Fund, an
opened end mutual fund, to which Fidelity Management
Trust Company serves as investment advisor, and which has
the primary objective of investing in domestic and foreign
stocks (including emerging markets), and bonds for growth
and income, but allows some investment in short-term
instruments.
Employee Participation in the Plan:
The number of participating employees with account balances
invested in each investment option at December 31, 1996 and
1995 was as follows:
1996 1995
Interest Income Fund 945 956
Fidelity Intermediate Bond Fund 241 274
Fidelity Puritan Fund 944 926
Fidelity Retirement Growth Fund 979 967
GPU Stock Fund 274 276
Fidelity U.S. Equity Index Fund 147 81
Fidelity OTC Portfolio Fund 234 111
Fidelity Overseas Fund 94 53
Fidelity Asset Manager Income Fund 17 8
Fidelity Asset Manager Fund 41 20
Fidelity Asset Manager Growth Fund 48 26
The total number of participants in the Plan at December 31,
1996 and 1995 was 1,886 and 1,850, respectively, which was
less than the sum of the number of participants shown in the
schedule above because many participants were participating
in more than one option.
Continued
8
<PAGE>
NOTES TO FINANCIAL STATEMENTS, Continued
_______
1. General Description of the Plan, continued:
Participant Accounts:
Each participant's account is credited with the
participant's own contributions and with the matching
contributions, made by the Company with respect to the
participant's contributions. Each account maintained for a
participant also reflects the number of shares of each
mutual fund, the number of shares of GPU Stock, and number
of units of interest in the Interest Income Fund, in which
the balance of that account is invested. All income, gain
or loss attributable to the investment of the balance of any
account maintained for a participant is credited or charged
to that account.
Vesting:
Participants are 100% vested at all times in their Plan
accounts.
Distributions and Withdrawals:
A participant's Plan account balances become distributable
upon termination of the participant's employment.
Distributions of account balances in excess of $3,500 may be
deferred, at the participant's election up to age 70 1/2.
If distribution of a participant's account balance has not
otherwise begun, it must begin by April 1st following the
year in which the participant attained age 70 1/2.
Distributions generally are in the are in the form of a
single lump sum payment. The Plan permits withdrawals of
account balances in the event of financial hardship or
disability as defined in the Plan. A complete description
of the Plan's terms and conditions for distributions and
withdrawals can be found in the Plan document.
Continued
9
<PAGE>
NOTES TO FINANCIAL STATEMENTS, Continued
_______
1. General Description of the Plan, continued:
Loans to Participants:
The Plan provides that loans may be made to a participant
from the participant's account balance subject to certain
conditions. The minimum amount of each loan is $1,000 with
the maximum being $50,000, or certain lesser amounts as
described in the Plan. Interest on the loan is credited to
the participant's account. The rate is determined
periodically by the Administrative Committee, based on
current commercial rates. The interest rates for loans in
excess of five years were 8.75% and 7.50%, and the interest
rates for loans five years or less were 9.75% and 8.125% at
December 31, 1996 and 1995, respectively.
Plan Termination:
The Company reserves the right at any time to modify,
suspend, amend or terminate the Plan. However, the Company
cannot do so in such manner as will cause or permit any part
of the Plan's assets to be used for or diverted to purposes
other than for the exclusive benefit of participants or
their beneficiaries.
2. Summary of Significant Accounting Policies:
Valuation of Investments:
The amounts shown herein as the investment in the GPU
Companies Master Savings Plan Trust reflect the fair value
of the assets held in such Trust and the Plan's relative
interest in the Trust. The Plan's participation is measured
at its value at the beginning of the valuation period plus
net external cash flow (contributions, distributions, etc.)
experienced by the Plan during the valuation period.
Investment income, net realized gain (loss) on investments
and net unrealized appreciation (depreciation) of
investments are allocated to each participating plan based
upon its accumulated monthly balance for each investment
option (see Note 3).
Continued
10
<PAGE>
NOTES TO FINANCIAL STATEMENTS, Continued
_______
2. Summary of Significant Accounting Policies, continued:
Valuation of Investments, continued:
The net investment gain from the GPU Companies Master
Savings Plan Trust which is presented in the Statement of
Changes in Net Assets Available for Plan Benefits, consists
of interest and dividend income and the net appreciation
(depreciation) in the fair value of investments, which
consists of realized gains or losses and the unrealized
appreciation (depreciation) on those investments in the GPU
Companies Master Savings Plan Trust.
Use of Estimates
The preparation of financial statements in conformity with
generally accepted accounting principles requires the plan
administrator to make estimates and assumptions that affect
certain reported amounts and disclosures. Accordingly,
actual results may differ from those estimates.
3. Investments:
The investments reflected in the December 31, 1996 and 1995
Statement of Net Assets Available for Plan Benefits
represent the Plan's 10.10% and 9.57% share of total
investments held in the GPU Companies Master Savings Plan
Trust, respectively, at December 31, 1996 and 1995.
At December 31, 1996 and 1995, the total investments held in
the GPU Companies Master Savings Plan Trust are summarized
as follows:
Continued
11
<PAGE>
NOTES TO FINANCIAL STATEMENTS, Continued
_______
3. Investments, continued:
1996 1995
Fair Value Fair Value
Fidelity Retirement Growth
Fund $170,592,916* $162,014,335*
Fidelity Puritan Fund 172,763,691* 152,173,577*
Fidelity Intermediate 24,489,489 25,474,677
Bond Fund
Interest Income Fund:
Life of Virginia 5,464,498 5,148,872
Canada Life 6,256,728 6,257,685
Peoples Security Life 15,317,929 20,081,010
Combined Insurance 3,045,923 ---
AIG Life ABS & MBS 19,938,474 6,613,647
First Allmerica 9,289,352 ---
Connecticut General 16,684,615 18,019,324
Confederation Life Insurance
Insurance Co. 4,966,734 5,042,408
Fidelity STIF 20,070,171 4,726,782
Life Insurance of Georgia 8,153,122 ---
Continental Assurance 6,269,284 5,776,161
John Hancock Mutual Life
Insurance Co. --- 8,253,516
Metropolitan Life Insurance
Co. --- 7,645,174
Bankers Trust 9,581,244 9,450,617
Prudential Insurance Co. 6,402,256 9,264,691
State Mutual --- 13,799,689
Sun Life of Canada 17,417,301 28,830,422*
Protective Life 7,018,846 6,598,439
Principal Mutual 3,412,382 ---
Sunamerica Life Insurance 9,039,399 8,428,344
United of Omaha 6,092,379 6,092,466
GPU Stock Fund 19,603,697 17,210,880
U S Equity Index Fund 15,918,255 6,110,598
Fidelity OTC Port. Fund 24,964,812 10,444,313
Fidelity Overseas Fund 7,383,853 3,802,894
Fidelity Asset Man.-Income Fund 714,957 393,831
Fidelity Asset Mgr. Fund 2,944,880 1,760,779
Fidelity Asset Man.-Growth Fund 4,430,209 2,026,570
Total investments at fair
value $618,227,396 $551,441,701
Total investments at cost $601,290,770 $527,508,365
* These investments represent 5% or more of the net assets
available for benefits.
Continued
12
<PAGE>
<TABLE>
NOTES TO FINANCIAL STATEMENTS, Continued
3. Investments, Continued:
Based on participant investment options at December 31, 1996 and 1995, the Plan's investments were broken down as follows:
<CAPTION>
1996 1995
Fidelity Retirement Growth Fund 28.0% 30.0%
Fidelity Puritan Fund 25.0% 24.0%
Fidelity Intermediate Bond Fund 3.0% 4.0%
Interest Income Fund 30.0% 34.0%
GPU Stock Fund 4.0% 4.0%
OTC Portfolio Fund 5.0% 2.0%
Overseas Fund 1.0% 0.5%
Asset Manager - Income Fund - ** - **
Asset Manager Fund 1.0% - **
Asset Manager Growth Fund 1.0% 0.5%
Fidelity US Equity Index Fund 2.0% 1.0%
** Investment option represents less than 0.5% of the total investments.
For the years ended December 31, 1996 and 1995, the changes in the accounts of the GPU Companies Master Savings
Plan Trust, respectively, are summarized as follows:
<S> <C> <C> <C> <C> <C> <C>
Fidelity Fidelity
Retirement Fidelity Intermediate Interest GPU Stock OTC
Growth Fund Puritan Fund Bond Fund Income Fund Fund Port. Fund
Investments, December 31, 1994 $126,689,195 $122,616,904 $22,605,269 $158,799,517 $12,193,358 $ 0
Increases:
Employee contributions 12,891,222 11,649,890 2,146,543 11,867,160 1,500,215 665,867
Employer contributions 3,999,243 3,834,776 772,468 3,727,653 474,375 186,905
Transfers from affiliated
pension plans 38,920 56,423 0 245,429 0 0
Transfers between investment
funds (6,292,886) (5,489,047) (1,197,989) (3,321,386) (726,638) 8,803,880
Interest on loans 293,348 246,449 45,002 280,597 34,183 16,534
Net investment gain 30,668,548 26,396,455 2,856,433 11,090,054 4,636,792 1,025,339
41,598,395 36,694,946 4,622,457 23,889,507 5,918,927 10,698,525
Decreases:
Distributions and withdrawals 6,273,255 7,138,273 1,753,049 12,659,777 901,405 254,212
Investments, December 31, 1995 $162,014,335 $152,173,577 $25,474,677 $170,029,247 $17,210,880 $10,444,313
Increases:
Employee contributions 14,806,796 12,869,644 2,217,575 12,112,080 1,946,760 1,901,808
Employer contributions 4,179,647 3,893,401 731,210 3,408,719 544,652 521,128
Transfers from affiliated
pension plans 103,234 194,668 34,599 334,108 31,601 10,157
Transfers between investment
funds (11,851,730) (4,517,535) (2,872,000) (1,620,447) (149,725) 9,168,073
Interest on loans 315,705 259,505 46,114 267,447 43,416 43,329
Net investment gain 13,581,109 23,216,987 886,358 10,592,465 971,320 3,638,616
21,134,761 35,916,670 1,043,856 25,094,372 3,388,024 15,283,111
Decreases:
Distributions and withdrawals 12,556,180 15,326,556 2,029,044 20,702,982 995,207 762,612
Investments, December 31, 1996 $170,592,916 $172,763,691 $24,489,489 $174,420,637 $19,603,697 $24,964,812
Continued
13a
<PAGE>
NOTES TO FINANCIAL STATEMENTS, Continued
<S> <C> <C> <C> <C> <C> <C>
Fidelity
Overseas Asset Manager Asset Manager Asset Manager US Equity
Fund Fund Growth Fund Income Fund Index Fund Total
Investments, December 31, 1994 $ 0 $ 0 $ 0 $ 0 $2,203,809 $445,108,052
Increases:
Employee contributions 444,966 169,591 399,346 43,943 540,115 42,318,858
Employer contributions 122,572 53,038 95,269 13,539 180,828 13,460,666
Transfers from affiliated
pension plans 0 0 0 0 0 340,772
Transfers between investment
funds 3,074,872 1,304,236 1,202,750 324,657 2,317,551 0
Interest on loans 13,654 4,384 6,990 578 8,507 950,226
Net investment gain 263,077 238,641 372,346 34,491 1,134,367 78,716,543
3,919,141 1,769,890 2,076,701 417,208 4,181,368 135,787,065
Decreases:
Distributions and withdrawals 116,247 9,111 50,131 23,377 274,579 29,453,416
Investments, December 31, 1995 $3,802,894 $1,760,779 $2,026,570 $393,831 $ 6,110,598 $551,441,701
Increases:
Employee contributions 794,586 253,412 483,951 78,621 1,330,991 48,796,224
Employer contributions 217,945 79,128 143,651 28,285 413,680 14,161,446
Transfers from affiliated
pension plans 0 11,674 0 0 10,231 730,272
Transfers between investment
funds 2,344,469 880,123 1,544,711 188,921 6,885,140 0
Interest on loans 20,089 3,259 10,091 1,643 14,307 1,024,905
Net investment gain 725,000 289,629 490,163 39,119 2,224,677 56,655,443
4,102,089 1,517,225 2,672,567 336,589 10,879,026 121,368,290
Decreases:
Distributions and withdrawals 521,130 333,124 268,928 15,463 1,071,369 54,582,595
Investments, December 31, 1996 $7,383,853 $2,944,880 $4,430,209 $714,957 $15,918,255 $618,227,396
Continued
13b
<PAGE>
NOTES TO FINANCIAL STATEMENTS, Continued
3. Investments, Continued:
The net investment gain in the GPU Companies Master Savings Plan
Trust for the year ended December 31, 1996 was as follows:
<S> <C> <C> <C> <C> <C> <C>
Fidelity Fidelity
Retirement Fidelity Intermediate Interest GPU Stock OTC
Growth Fund Puritan Fund Bond Fund Income Fund Fund Port. Fund
Dividends $ 21,088,711 $ 20,110,484 $ 1,688,989 $ 0 $ 1,081,702 $ 2,597,871
Interest Income 0 0 0 10,592,465 0 0
Net appreciation (depreciation)
in fair value of investments (7,507,602) 3,106,503 (802,631) 0 (110,382) 1,040,745
Net investment gains $ 13,581,109 $ 23,216,987 $ 886,358 $ 10,592,465 $ 971,320 $ 3,638,616
The net investment gain in the GPU Companies Master Savings Plan
Trust for the year ended December 31, 1995 was as follows:
Fidelity Fidelity
Retirement Fidelity Intermediate Interest GPU Stock OTC
Growth Fund Puritan Fund Bond Fund Income Fund Fund Port. Fund
Dividends $ 15,534,234 $ 7,921,988 $ 1,507,779 $ 0 $ 677,248 $ 559,811
Interest Income 0 0 0 11,090,054 0 0
Net appreciation (depreciation)
in fair value of investments 15,134,314 18,474,467 1,348,654 0 3,959,544 465,528
Net investment gains $ 30,668,548 $ 26,396,455 $ 2,856,433 $11,090,054 $ 4,636,792 $ 1,025,339
Investment in the GPU Companies Master Savings Plan Trust
are carried at fair market value. Fair market value of assets
held by the Trust are determined as follows:
Stocks and bonds are valued at the closing market prices
on the last business day of the year. Short-term group trust
funds (investment through the custodian bank) and insurance
contracts are valued at cost plus accrued interest which
approximates market.
Continued
14a
<PAGE>
NOTES TO FINANCIAL STATEMENTS, Continued
3. Investments, Continued:
The net investment gain in the GPU Companies Master Savings Plan
Trust for the year ended December 31, 1996 was as follows:
<S> <C> <C> <C> <C> <C> <C>
Fidelity
Overseas Asset Manager Asset Manager Asset Manager US Equity
Fund Income Fund Fund Growth Fund Index Fund Total
Dividends $ 449,059 $ 38,638 $ 219,829 $ 328,373 $ 0 $ 47,603,656
Interest income 0 0 0 0 0 10,592,465
Net appreciation (depreciation)
in fair value of investments 275,941 481 69,800 161,790 2,224,677 (1,540,678)
Net investments gains $ 725,000 $ 39,119 $ 289,629 $ 490,163 $2,224,677 $ 56,655,443
The net investment gain in the GPU Companies Master Savings Plan
Trust for the year ended December 31, 1995 was as follows:
Fidelity
Overseas Asset Manager Asset Manager Asset Manager US Equity
Fund Income Fund Fund Growth Fund Index Fund Total
Dividends $ 80,486 $ 12,970 $ 45,181 $ 30,229 $ 0 $ 26,369,926
Interest income 0 0 0 0 0 11,090,054
Net appreciation (depreciation)
in fair value of investments 182,591 21,521 193,460 342,117 1,134,367 41,256,563
Net investments gains $ 263,077 $ 34,491 $ 238,641 $ 372,346 $1,134,367 $ 78,716,543
Investment in the GPU Companies Master Savings Plan Trust
are carried at fair market value. Fair market value of assets
held by the Trust are determined as follows:
Stocks and bonds are valued at the closing market prices
on the last business day of the year. Short-term group trust
funds (investment through the custodian bank) and insurance
contracts are valued at cost plus accrued interest which
approximates market.
Continued
14b
</TABLE>
<PAGE>
NOTES TO FINANCIAL STATEMENTS, Continued
_______
4. Tax Status
The Plan obtained its latest determination letter on June 23,
1995, in which the Internal Revenue Service stated that the
plan, as then designed, was in compliance with the applicable
requirements of the Internal Revenue Code. The Plan has been
amended since receiving the determination letter. However,
the plan administrator and the plan's tax counsel believe
that the plan is currently designed and being operated in
compliance with the applicable requirements of the Internal
Revenue Code. Therefore, they believe that the Plan was
qualified and the related trust was tax-exempt as of the
financial statement date.
15
<PAGE>
GPU, INC.
PENNSYLVANIA ELECTRIC COMPANY
EMPLOYEE SAVINGS PLAN FOR BARGAINING UNIT EMPLOYEES
Signature Page 2
Consent of Independent Accountant Exhibit 24
Report on Audits of Financial Statements Exhibit 28
for the Years Ended December 31, 1996
and 1995
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of
1934, the trustees (or other persons who administer the plan)
have duly caused this annual report to be signed by the
undersigned thereunto duly authorized.
GPU, INC.
Pennsylvania Electric Company
Employee Savings Plan for
Bargaining Unit Employees
Date: June 27, 1997 By: /s/ F. A. Donofrio
F. A. Donofrio
Chairman
Administrative Committee
<PAGE>
EXHIBIT INDEX
GPU, INC.
PENNSYLVANIA ELECTRIC COMPANY
EMPLOYEE SAVINGS PLAN FOR BARGAINING EMPLOYEES
Consent of Independent Accountant Exhibit 24
Report on Audits of Financial Statements Exhibit 28
for the Years Ended December 31, 1996
and 1995<PAGE>
EXHIBIT 24
CONSENT OF INDEPENDENT ACCOUNTANT
I consent to the incorporation by references in the
registration statement of GPU, Inc. on Forms S-8 (File No.
33-32328) of my report dated May 16, 1997, on my audit of the
financial statements of the Pennsylvania Electric Company
Employee Savings Plan for Bargaining Unit Employees as of
December 31, 1996 and 1995 and for the years then ended, which
report is included in this Annual Report on Form 11-K.
JOHN MILLIGAN, CPA
105-107 N. 22nd Street, 2nd Floor
Philadelphia, Pennsylvania
June 24, 1997<PAGE>
Exhibit 28
PENNSYLVANIA ELECTRIC COMPANY
EMPLOYEE SAVINGS PLAN FOR
BARGAINING UNIT EMPLOYEES
REPORT ON AUDITS OF FINANCIAL STATEMENTS
for the years ended
December 31, 1996 and 1995<PAGE>
