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): July 27, 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
1-3141 Jersey Central Power & Light Company 21-0485010
(a New Jersey corporation)
2800 Pottsville Pike
Reading, Pennsylvania 19640-0001
Telephone (610) 929-3601
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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As previously announced, GPU's 2000 second quarter income after a
non-recurring charge of $295 million after-tax, or $2.43 per share, on the sale
of GPU's Australian electric transmission company, GPU PowerNet, was a loss of
$211 million, or $1.74 per share. GPU's 2000 second quarter income before
non-recurring items was $84 million, or $0.69 per share, against $106 million,
or $0.84 per share, in the second quarter of 1999. The lower income was
primarily due to the impact of electric utility restructuring in New Jersey and
Pennsylvania, which included GPU's sale of its generation facilities, higher
energy costs in Pennsylvania and lower electric delivery rates charged to
customers in New Jersey.
Pennsylvania Electric Company's (Penelec) earnings for the second quarter
2000 were $4.5 million, compared to second quarter 1999 earnings of $20 million.
The decline in earnings was primarily due to higher energy costs resulting from
Penelec's need to purchase its energy requirements on the open market since the
sale of its generating assets in 1999. Partially offsetting the higher energy
costs are lower operation and maintenance expense and depreciation costs mainly
due to the sale of generating assets. In addition, income tax expense was lower
in the second quarter 2000, versus the same quarter last year, due in part to an
adjustment made to tax expense in the second quarter 1999 related to the
deregulation of generating assets in Pennsylvania.
Metropolitan Edison Company's (Met-Ed) earnings for the second quarter
2000 were $8.7 million, compared to second quarter 1999 earnings of $19.1
million. The decline in earnings was primarily due to higher energy costs
resulting from Met-Ed's need to purchase its energy requirements on the open
market, as a result of the sale of its generating assets in 1999. Partially
offsetting these higher costs were lower operations and maintenance and
depreciation costs mainly due to the sale of generating assets. In addition,
income tax expense was lower in the second quarter 2000 versus the same quarter
last year, due in part to an adjustment made to tax expense related to the
deregulation of generating assets in Pennsylvania.
Jersey Central Power & Light Company's (JCP&L) earnings for the second
quarter 2000 were $42.8 million compared to a second quarter 1999 loss of $8.2
million. Excluding a non-recurring charge of $68 million, which resulted from
the NJBPU's Summary Order for JCP&L, earnings for the quarter ended June 30,
1999 would have been $59.8 million. The decline in earnings on this basis was
primarily due to lower revenues, resulting from lower rates charged to customers
as a result of the New Jersey restructuring. Partially offsetting the decrease
was lower depreciation expense due to the effect of the sale of generating
assets and the impairment write-down of Oyster Creek, which was recorded in
1999.
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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.
JERSEY CENTRAL POWER & LIGHT COMPANY
METROPOLITAN EDISON COMPANY
PENNSYLVANIA ELECTRIC COMPANY
By: /s/ T. G. Howson
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T. G. Howson, Vice President
and Treasurer
Date: August 3, 2000
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