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 3, 2000
Commission Registrant, State of Incorporation, I.R.S. Employer
File Number Address and Telephone Number Identification No.
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1-6047 GPU, Inc. 13-5516989
(a Pennsylvania corporation)
300 Madison Avenue
Morristown, New Jersey 07962-1911
Telephone (973) 455-8200
1-446 Metropolitan Edison Company 23-0870160
(a Pennsylvania corporation)
2800 Pottsville Pike
Reading, Pennsylvania 19640-0001
Telephone (610) 929-3601
1-3522 Pennsylvania Electric Company 25-0718085
(a Pennsylvania corporation)
2800 Pottsville Pike
Reading, Pennsylvania 19640-0001
Telephone (610) 929-3601
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ITEM 5. OTHER EVENTS.
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On February 3, 2000, GPU, Inc. (GPU) announced that its GPU Energy units
in Pennsylvania (Metropolitan Edison Company and Pennsylvania Electric Company)
had received no bids in response to their offers to provide competitive bidding
for default energy supply service for 20% of their customers in 2000. GPU Energy
had issued the requests for bids as required by Pennsylvania Public Utility
Commission orders.
As a result, GPU Energy will be required to continue as the default
supplier and is expanding its forward purchases of electricity to accommodate
these customers. GPU believes that this will negatively impact 2000 earnings by
an estimated $0.04 to $0.08 per share, but expects to offset this impact through
additional common stock repurchases - funded by the expected proceeds from the
proposed sale of a substantial portion of its Australian energy assets - and
other cost reduction initiatives.
A copy of GPU's related news release is annexed as an exhibit.
<PAGE>
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS.
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(c) Exhibit
1. GPU News Release, dated February 3, 2000.
<PAGE>
SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE
REGISTRANTS HAVE DULY CAUSED THIS REPORT TO BE SIGNED ON THEIR BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.
GPU, INC.
METROPOLITAN EDISON COMPANY
PENNSYLVANIA ELECTRIC COMPANY
By: /s/ T. G. Howson
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T. G. Howson, Vice President
and Treasurer
Date: February 4, 2000
EXHIBIT TO BE FILED BY EDGAR
(c) 1 GPU News Release, dated February 3, 2000.
Exhibit (c) 1
GPU News Release
February 3, 2000
GPU Reports No Bidders in Auction of 20 Percent Of its
Electrical Customers in Pennsylvania
MORRISTOWN, NJ - February 3, 2000 - GPU, Inc. today announced that its GPU
Energy unit received no bids in its offer under orders of the Pennsylvania
Public Utility Commission (PaPUC) to provide competitive bidding for default
energy supply service for 20 percent of its customers in 2000.
While seven potential bidders had begun the process by requesting
pre-qualification packages in December, none submitted a bid by the January 31
deadline, GPU Energy reported. The successful default service provider would
have begun providing electricity to customers on June 1.
GPU Energy said it was analyzing the situation and would formulate a
comprehensive solution to default energy supply service for review by
Pennsylvania regulators. Meanwhile, GPU Energy is expanding its forward
purchasing of electric power to accommodate the 20 percent of its customers for
whom it will now continue to be the default supplier.
GPU, Inc. expects to mitigate the negative impact these additional energy
purchases will have on year 2000 earnings per share -- estimated to be $0.04 to
$0.08 -- through additional common stock repurchases, which will be funded by
the planned sale of a significant portion of GPU's Australian companies,
together with other cost reduction initiatives.
GPU, Inc., headquartered in Morristown, NJ, is a registered public utility
holding company providing utility and utility-related services to customers
throughout the world. GPU serves 4.6 million customers directly through its
electric companies -- GPU Energy in the US, Midlands Electricity plc in the UK
and Emdersa in Argentina. It serves another 1.4 million customers indirectly
through its electric and gas transmission subsidiaries GasNet and PowerNet in
Australia. The company's independent power project business units own interests
in and operate 22 projects in 7 countries and the US. GPU's 1998 revenues were
$4.3 billion and its total assets were $16.3 billion. GPU's
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other subsidiaries include GPU Advanced Resources, Inc., GPU International,
Inc., GPU Nuclear, Inc., GPU Service, Inc. and GPU Telcom Services, Inc.
This news release contains certain forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Statements made that
are not historical facts are forward-looking and, accordingly, involve risks and
uncertainties that could cause actual results or outcomes to differ materially
from those expressed in the forward-looking statements. Although such
forward-looking statements have been based on reasonable assumptions, there is
no assurance that the expected results will be achieved. Some of the factors
that could cause actual results to differ materially include, but are not
limited to: the effects of regulatory decisions; changes in law and other
governmental actions and initiatives; the impact of deregulation and increased
competition in the industry; industry restructuring; expected outcomes of legal
proceedings; the completion of generation asset divestiture; fuel prices and
availability; and uncertainties involved with foreign currency fluctuations.
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Contact:
GPU, Inc., Morristown, NJ
Ned Raynolds, (973) 455-8294
(http://www.gpu.com)
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