SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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): February 11, 1998
GPU, Inc.
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(Exact name of registrant as specified in charter)
Pennsylvania 1-6047 13-5516989
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(State or other (Commission (IRS employer
jurisdiction of file number) identification no.)
incorporation)
300 Madison Avenue, Morristown, New Jersey 07962-1911
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (973) 455-8200
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ITEM 5. OTHER EVENTS
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The Company on February 6, 1998, had announced that, in a
February 4, 1998, oral decision, the New Jersey Board of Public Utilities
("NJBPU") upheld an interim ruling by the Administrative Law Judge hearing
Jersey Central Power & Light Company's ("JCP&L") stranded cost and rate
unbundling cases. That decision apparently would deny JCP&L's request to update
its cost levels from 1992 in order to recover an estimated $150 million annually
of distribution related charges as inconsistent with the New Jersey Energy
Master Plan. The NJBPU stated in its oral decision, however, that JCP&L could
seek recovery of these amounts in a separate base rate proceeding.
On February 11, 1998, the NJBPU issued a written order (dated
February 9, 1998) memorializing and clarifying its February 4th action. In its
written order, the NJBPU substantially affirmed the ALJ's ruling, but clarified
that (1) JCP&L could update its 1992 cost of service study to reflect
adjustments consistent with the NJBPU approved "Global Settlement" which, among
other things, recognized certain increased expense levels and reductions to base
rates and (2) all of the updated post-1992 cost information JCP&L had submitted
in the proceeding should remain in the record which the NJBPU will utilize in
establishing a reasonable level of rates going forward.
The NJBPU emphasized in its order that, although the Energy
Master Plan directs that unbundled rates be "revenue neutral", the final rates
implemented upon retail competition "will
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be lower than the current bundled rates". This directive has been recognized in
JCP&L's initial restructuring filing which proposed revenue reductions totalling
approximately $185 million annually. The NJBPU went on to state that "after
receipt of . . . the Initial Decisions from the ALJ's, the [NJBPU] will render
final and comprehensive decisions on the precise level of aggregate rate
reductions required . . . in order to establish a reasonable level of rates and
to establish a reasonable level for each component thereof, going forward, which
accomplish the primary goals of electric restructuring to introduce competition
and lower electricity costs for consumers." Moreover, the NJBPU stated that
after the ALJ had issued an Initial Decision, it will allow the parties to make
additional arguments regarding the need to reflect updated cost information, and
would "reserve judgment at this time on the need for additional testimony,
hearing and briefs with respect to this data."
JCP&L is not able to predict the outcome of this matter.
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SIGNATURE
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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.
GPU, INC.
By:______________________________
T.G. Howson, Vice President
and Treasurer
Date: February 11, 1998
