U.S. SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-9C-3
QUARTERLY REPORT PURSUANT TO RULE 58 OF
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
For the quarterly period ended December 31, 1999
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GPU, Inc. (File No. 074-00023)
- --------------------------------------------------------------------------------
(Name of Registered Holding Company)
300 Madison Avenue, Morristown, NJ 07962-1911
- --------------------------------------------------------------------------------
(Address of Principal Executive Offices)
<PAGE>
GPU, Inc.
Quarterly Report Pursuant to Rule 58 of
the Public Utility Holding Company Act of 1935
For the quarterly period ended December 31, 1999
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Table of Contents
Item
No. Title Page
- ------- ------------------------------------------------------ ----
1 Organization Chart 1
2 Issuances and Renewals of Securities and
Capital Contributions 3
3 Associate Transactions 4
4 Summary of Aggregate Investment 7
5 Other Investments 8
6 Financial Statements and Exhibits:
A - Financial Statements 9
B - Exhibits 10
C - Certificate of GPU, Inc. 11
Signature 12
Note: All dollar amounts shown in this Form U-9C-3 are expressed in thousands
---- except for the amounts presented in the financial statements (Exhibit
A), which are expressed in whole dollars.
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<TABLE>
<CAPTION>
ITEM 1 - ORGANIZATION CHART
Energy (ERC)
or Gas (GRC) Date of State of Percentage of Voting Nature of
Name of Reporting Company Related Company Organization Organization Securities Held ** Business
------------------------- --------------- ------------ ------------ ------------------ --------
GPU, Inc. (a)
- ---------
<S> <C> <C> <C> <C> <C>
GPU Advanced Resources, Inc. ERC 09/13/96 Delaware 100.0% (b)
GPU International, Inc. (a)
- -----------------------
Elmwood Energy Corporation ERC 02/13/87 New Jersey 100.0 (c),(d)
Prime Energy Limited Partnership ERC 05/08/86 New Jersey 50.0 (d)
Geddes II Corporation ERC 06/24/98 Delaware 100.0 (c),(d)
Geddes Cogeneration Corporation ERC 03/23/89 New York 100.0 (c),(d)
Onondaga Cogeneration Limited Partnership ERC 06/08/88 New York 100.0 (d)
EI Selkirk, Inc. ERC 10/31/94 Delaware 100.0 (c)
Selkirk Cogeneration Partners
Limited Partnership ERC 06/06/90 Delaware 19.2 (d)
NCP Energy, Inc. ERC 11/21/89 California 100.0 (c)
Syracuse Orange Partners L.P. ERC 04/02/91 Delaware 4.9 *
NCP New York, Inc. ERC 07/09/93 Delaware 100.0 *
NCP Brooklyn Power, Inc. ERC 07/09/93 Delaware 100.0 *
NCP Gem, Inc. ERC 05/23/91 Delaware 100.0 (c)
NCP Lake Power, Inc. ERC 05/23/91 Delaware 100.0 (c),(d)
Lake Investment, L.P. ERC 05/23/91 Delaware 100.0 (c)
Lake Cogen, Ltd. ERC 03/13/91 Florida 49.9 (g) (d)
NCP Pasco, Inc. ERC 05/23/91 Delaware 100.0 (c)
NCP Dade Power, Inc. ERC 05/23/91 Delaware 100.0 (c),(d)
Dade Investment, L.P. ERC 05/23/91 Delaware 100.0 (c)
Pasco Cogen, Ltd. ERC 03/13/91 Florida 49.9 (d)
NCP Houston Power, Inc. ERC 12/02/93 Delaware 100.0 (c),(d)
NCP Perry, Inc. ERC 12/02/93 Delaware 100.0 (c)
Mid-Georgia Cogen, L.P. ERC 12/03/93 Delaware 50.0 (d)
EI Services, Inc. ERC 10/07/93 Delaware 100.0 (d)
NCP Ada Power, Inc. ERC 07/31/93 California 100.0 *
Umatilla Groves, Inc. ERC 06/17/92 Delaware 100.0 *
NCP Commerce Power, Inc. ERC 08/31/93 California 100.0 *
Armstrong Energy Corporation ERC 07/14/88 New Jersey 100.0 *
AEC/REF Fuel, Limited Partnership ERC 12/22/89 Pennsylvania 100.0 *
EI Fuels Corporation ERC 08/09/90 Delaware 100.0 (e)
GPU Solar, Inc. ERC 07/09/97 New Jersey 50.0 (f)
GPUI Holdings, Inc. ERC 03/03/97 Delaware 100.0 *
GPU Generation Services - Lake, Inc. ERC 04/05/99 Delaware 100.0 (d)*
GPU Generation Services - Pasco, Inc. ERC 04/05/99 Delaware 100.0 (d)
<FN>
* Inactive.
** Sets forth the percentage of voting securities held directly or indirectly by GPU,
Inc. or GPU International, Inc. (GPUI), as applicable.
1
</FN>
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ITEM 1 - ORGANIZATION CHART (Continued)
(a) These GPU system companies hold securities directly or indirectly in the
energy-related companies set below their names. GPUI is a wholly owned
subsidiary of GPU, Inc.
(b) This subsidiary was formed to engage in energy services and retail energy
sales.
(c) These energy-related companies hold securities in other energy-related
companies.
(d) These subsidiaries participate in some or all aspects of promoting,
developing, owning, managing and/or operating qualifying facilities, as
defined in the Public Utility Regulatory Policies Act of 1978.
(e) This subsidiary provides fuel management services.
(f) This subsidiary is involved in the development and commercialization of
photovoltaics.
(g) In June 1997, GPUI acquired an additional 50% limited partnership interest
in Lake Cogen, Ltd. (Lake) which was assigned and transferred to New Lake
Corp. (New Lake), an unaffiliated company, for a promissory note. GPUI has
indemnified New Lake against all claims and liabilities incurred relating
to the operations of Lake. In turn, New Lake has agreed to sell its
interest in Lake to a purchaser yet to be designated by GPUI. Based on
this, Lake and New Lake are included as consolidated entities in GPUI's
financial statements.
Narrative Description of Activities for Reporting Period
--------------------------------------------------------
Camchino Energy Corporation - In October 1999, GPUI sold 100% of the common
stock of Camchino Energy Corporation.
Project Orange Associates L.P. - In December 1999, Syracuse Orange Partners
L.P. sold its interest in Project Orange Associates L.P.
Mid-Georgia Cogen, L.P. - On December 31, 1999, GPUI's $5 million letter of
credit to Sonat Mid-Georgia L.L.C. expired. This letter of credit was
guaranteed by GPU, Inc.
GPU International, Inc. - In the fourth quarter of 1999, GPUI paid a
dividend to GPU, Inc. in the amount of $16.5 million.
2
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<TABLE>
<CAPTION>
ITEM 2 - ISSUANCES AND RENEWALS OF SECURITIES AND CAPITAL CONTRIBUTIONS
<S> <C> <C> <C> <C> <C> <C> <C>
Type of Principal Company to Collateral Consideration
Security Amount of Issue or Cost of whom Security Given with Received
Company Issuing Security Issued Security Renewal Capital was Issued Security for Each Security
- ------------------------ ------ -------- ------- ------- ---------- -------- -----------------
None.
<S> <C> <C>
Company Contributing Company Receiving Amount of Capital
Capital Capital Contribution
------------------- ---------------- -----------------
None.
Note: The information provided in Item 2 presents the activities of the reporting period only.
- ----
3
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<CAPTION>
ITEM 3 - ASSOCIATE TRANSACTIONS
Part I - Transactions Performed by Reporting Companies on Behalf of Associate Companies
Total
Reporting Company Associate Company Amount
Rendering Services Receiving Services Types of Services Rendered Billed
- ------------------------- ----------------------- ----------------------------- --------
<S> <C> <C> <C>
EI Services, Inc. Mid-Georgia Cogen, L.P. Operations management $xxx (1)
NCP Houston Power, Inc. Mid-Georgia Cogen, L.P. Accounting and administration xxx (1)
EI Fuels Corporation Mid-Georgia Cogen, L.P. Fuel supplies and management xxx (1)
services
NCP Lake Power, Inc. Lake Cogen, Ltd. Accounting, administration and xxx (1)
operations and maintenance (O&M)
management
NCP Dade Power, Inc. Pasco Cogen, Ltd. Administration and O&M management xxx (1)
Geddes Cogeneration Onondaga Cogeneration Limited Accounting, administration and xxx (1)
Corporation Partnership O&M management
Elmwood Energy Corporation Prime Energy Limited Partnership Accounting and administration xxx (1)
GPU Generation Services - Pasco Cogen, Ltd. O&M management xxx (1)
Pasco, Inc.
<FN>
Notes: The information provided in Item 3 presents the activities of the
- ----- reporting period only. The amounts required under the caption "Total
Amount Billed" are being filed pursuant to request for confidential
treatment.
(1) The amounts shown represent negotiated contractual rates billed in
accordance with the applicable service contracts filed under Item 6.
</FN>
4
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<TABLE>
<CAPTION>
ITEM 3 - ASSOCIATE TRANSACTIONS (Continued)
Part II - Transactions Performed by Associate Companies on Behalf of Reporting Companies
Total
Associate Company Reporting Company Amount
Rendering Services Receiving Services Types of Services Rendered Billed
- ------------------------- ----------------------- ----------------------------- --------
<S> <C> <C> <C>
GPU International, Inc. Prime Energy Limited Partnership O&M management $xxx
GPU International, Inc. EI Services, Inc. Operations management for xxx (1)
Mid-Georgia Cogen, L.P.
GPU International, Inc. NCP Houston Power, Inc. Accounting and administration for xxx (1)
Mid-Georgia Cogen, L.P.
GPU International, Inc. NCP Lake Power, Inc. Accounting, administration and O&M xxx (1)
management for Lake Cogen,
Ltd.
GPU International, Inc. NCP Dade Power, Inc. Administration and O&M management xxx (1)
for Pasco Cogen, Ltd.
GPU International, Inc. Onondaga Cogeneration Limited O&M management xxx (1)
Partnership
GPU International, Inc. Geddes Cogeneration Corporation Accounting and administration for xxx (1)
Onondaga Cogeneration Limited
Partnership
GPU International, Inc. Elmwood Energy Corporation Accounting and administration for xxx (1)
Prime Energy Limited Partnership
GPU International, Inc. NCP Energy, Inc. Accounting and administration for xxx (1)
Syracuse Orange Partners L.P. and
Project Orange Associates L.P.
GPU International, Inc. GPU Solar, Inc. Management, marketing and technical xxx (1)
expertise for GPU Solar, Inc.
5
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<PAGE>
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<CAPTION>
ITEM 3 - ASSOCIATE TRANSACTIONS (Continued)
Part II - Transactions Performed by Associate Companies on Behalf of Reporting Companies
(Continued)
Total
Associate Company Reporting Company Amount
Rendering Services Receiving Services Types of Services Rendered Billed
- -------------------------- ----------------------------- ------------------------- -------
<S> <C> <C> <C>
GPU International, Inc. GPU Advanced Resources, Inc. Certain general and administrative $xxx (1)
services for GPU Advanced Resources,
Inc.
Metropolitan Edison GPU Advanced Resources, Inc. Certain general and administrative xxx (2)
Company services for GPU Advanced Resources,
Inc.
GPU Service, Inc. GPU Advanced Resources, Inc. Legal and certain general and xxx (3)
administrative services for
GPU Advanced Resources, Inc.
<FN>
Notes: The information provided in Item 3 presents the activities of the
- ----- reporting period only. The amounts required under the caption "Total
Amount Billed" are being filed pursuant to request for confidential
treatment.
(1) The amounts shown include overhead charges applied, at a rate of
143%, to employee salaries billed for services rendered. No
capital costs were charged.
(2) The amounts shown include overhead charges applied, at a rate of
45.65%, to employee salaries billed for services rendered. No
capital costs were charged.
(3) The amounts shown include overhead charges applied, at a rate of
45.91%, to employee salaries billed for services rendered. No
capital costs were charged.
</FN>
6
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<TABLE>
<CAPTION>
ITEM 4 - SUMMARY OF AGGREGATE INVESTMENT
Investments in energy-related companies:
<S> <C> <C> <C>
Total average consolidated capitalization as of December 31, 1999 $10,585,189 Line 1
-----------------------
Total capitalization multiplied by 15% (line 1 multiplied by 0.15) 1,587,778 Line 2
Greater of $50 million or line 2 $1,587,778 Line 3
Total current aggregate investment:
(categorized by major line of energy-related business)
Ownership and operation of qualifying facilities (Category VIII) 31,106
Energy services and retail energy sales (Category V) 25,900
Fuel management services (Category IX) -
Operations and maintenance services (Category VII) -
Development and commercialization of photovoltaics (Category II) 450
------
Total current aggregate investment 57,456 Line 4
------
Difference between the greater of $50 million or 15% of capitalization and
the total aggregate investment of the registered holding company
system (line 3 less line 4) $1,530,322 Line 5
==========
<FN>
Notes: The caption "Total average consolidated capitalization" includes total
common equity, preferred equity (including amounts due within one year),
long-term debt (including amounts due within one year) and short-term
debt.
The caption "Total current aggregate investment" includes all amounts
invested or committed to be invested in energy-related companies on or
after the date of effectiveness of Rule 58 (March 24, 1997), for which
there is recourse, directly or indirectly, to GPU, Inc. or any
subsidiary company thereof.
</FN>
7
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<TABLE>
<CAPTION>
ITEM 5 - OTHER INVESTMENTS
Aggregate Investment as of Change in Investments Reason for Change
Major Line of Energy-Related Business September 30, 1999 During Reporting Period in Investments
- ------------------------------------- --------------------- ----------------------- -----------------
<S> <C> <C> <C>
Ownership and operation of qualifying
facilities (Category VIII) $156,790 * $(5,000) GPUI's letter of credit to
Sonat Mid-Georgia L.L.C.
(guaranteed by GPU, Inc)
expired on December 31, 1999.
Energy services and retail energy
sales (Category V) 25,900 - No change.
Fuel management services (Category IX) ** - No change.
Operations and maintenance
services (Category VII) ** - No change.
Development and commercialization of
photovoltaics (Category II) 450 - No change.
<FN>
* The caption "Aggregate Investment as of September 30, 1999" includes
$120,684 that was invested or committed to be invested in energy-related
companies, prior to the date of effectiveness of Rule 58 (March 24, 1997),
for which there is recourse, directly or indirectly, to GPU, Inc. or any
subsidiary thereof. The $120,684 includes a reduction of $16,500 for
dividends paid to GPU, Inc. by GPU International.
** The amounts invested in such energy-related companies, which are
immaterial, have subsequently been reinvested, and are included in
"Ownership and operation of qualifying facilities (Category VIII)."
</FN>
8
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<PAGE>
ITEM 6 - FINANCIAL STATEMENTS AND EXHIBITS
A. Financial Statements
A-1 Financial statements of GPU Advanced Resources, Inc. - not required for
the last quarterly period of the registered holding company's fiscal
year.
A-2 Financial statements of Elmwood Energy Corporation - not required for
the last quarterly period of the registered holding company's fiscal
year.
A-3 Financial statements of Prime Energy Limited Partnership - not required
for the last quarterly period of the registered holding company's
fiscal year.
A-4 Financial statements of Geddes Cogeneration Corporation - not required
for the last quarterly period of the registered holding company's
fiscal year.
A-5 Financial statements of Onondaga Cogeneration Limited Partnership - not
required for the last quarterly period of the registered holding
company's fiscal year.
A-6 Financial statements of NCP Energy, Inc. - not required for the last
quarterly period of the registered holding company's fiscal year.
A-7 Financial statements of NCP Lake Power, Inc. - not required for the
last quarterly period of the registered holding company's fiscal year.
A-8 Financial statements of NCP Dade Power, Inc. - not required for the
last quarterly period of the registered holding company's fiscal year.
A-9 Financial statements of NCP Houston Power, Inc. - not required for the
last quarterly period of the registered holding company's fiscal year.
A-10 Financial statements of Mid-Georgia Cogen, L.P. - not required for the
last quarterly period of the registered holding company's fiscal year.
A-11 Financial statements of EI Services, Inc. - not required for the last
quarterly period of the registered holding company's fiscal year.
A-12 Financial statements of GPU Solar, Inc. - not required for the last
quarterly period of the registered holding company's fiscal year.
A-13 Financial statements of EI Fuels Corporation - not required for the
last quarterly period of the registered holding company's fiscal year.
A-14 Financial statements of Geddes II Corporation - not required for the
last quarterly period of the registered holding company's fiscal year.
A-15 Financial statements of GPU Generation Services - Pasco, Inc. - not
required for the last quarterly period of the registered holding
company's fiscal year.
9
<PAGE>
Exhibits
B. Contracts Required by Item 3
----------------------------
B-1 Contract between EI Services, Inc. and Mid-Georgia Cogen, L.P. to
provide construction and operations management services - incorporated
by reference to Exhibit B-1 to GPU's Quarterly Report on Form U-9C-3
for the period ended June 30, 1997.
B-2 Contract between NCP Houston Power, Inc. and Mid-Georgia Cogen, L.P. to
provide accounting and administrative services (included in partnership
agreement) - incorporated by reference to Exhibit B-2 to GPU's
Quarterly Report on Form U-9C-3 for the period ended June 30, 1997.
B-3 Contract between NCP Lake Power, Inc. and Lake Cogen, Ltd. to provide
accounting, administrative and operations and maintenance (O&M)
management services (included in partnership agreement) - incorporated
by reference to Exhibit B-3 to GPU's Quarterly Report on Form U-9C-3
for the period ended June 30, 1997.
B-4 Contract between NCP Dade Power, Inc. and Pasco Cogen, Ltd. to provide
administrative and O&M management services (included in partnership
agreement) - incorporated by reference to Exhibit B-4 to GPU's
Quarterly Report on Form U-9C-3 for the period ended June 30, 1997.
B-5 Contract between Geddes Cogeneration Corporation and Onondaga
Cogeneration Limited Partnership to provide accounting, administrative
and O&M management services (included in partnership agreement) -
incorporated by reference to Exhibit B-5 to GPU's Quarterly Report on
Form U-9C-3 for the period ended June 30, 1997.
B-6 Contract between Elmwood Energy Corporation and Prime Energy Limited
Partnership to provide accounting and administrative services (included
in partnership agreement) - incorporated by reference to Exhibit B-9 to
GPU's Quarterly Report on Form U-9C-3 for the period ended June 30,
1997.
B-7 Contract between GPU International, Inc. and Prime Energy Limited
Partnership to provide O&M management services - incorporated by
reference to Exhibit B-10 to GPU's Quarterly Report on Form U-9C-3 for
the period ended June 30, 1997.
B-8 Contract between GPU International, Inc. and Onondaga Cogeneration
Limited Partnership to provide O&M management services - incorporated
by reference to Exhibit B-11 to GPU's Quarterly Report on Form U-9C-3
for the period ended June 30, 1997.
B-9 Contract between GPU International, Inc. and GPU Solar, Inc. to provide
management, marketing and technical expertise services - incorporated
by reference to Exhibit B-12 to GPU's Quarterly Report on Form U-9C-3
for the period ended September 30, 1997.
B-10 Contract between GPU Service, Inc. and GPU Advanced Resources, Inc. to
provide legal and certain general and administrative services -
incorporated by reference to Exhibit B-13 to GPU's Quarterly Report on
Form U-9C-3 for the period ended December 31, 1997.
10
<PAGE>
ITEM 6 - FINANCIAL STATEMENTS AND EXHIBITS (Continued)
B. Contracts Required by Item 3
----------------------------
B-11 Contract between EI Fuels Corporation and Mid-Georgia Cogen, L.P. to
provide fuel supplies and management services - incorporated by
reference to Exhibit B-14 to GPU's Quarterly Report on Form U-9C-3 for
the period ended June 30, 1998.
B-12 Contract between GPU Generation Services - Pasco, Inc. and Pasco
Cogen, Ltd. to provide O&M management services - incorporated by
reference to Exhibit B-15 to GPU's Quarterly Report on Form U-9C-3 for
the period ended September 30, 1999.
Note: Services rendered by GPU International, Inc. to EI Services, Inc.,
NCP Houston Power, Inc., NCP Lake Power, Inc., NCP Dade Power,
Inc., Geddes Cogeneration Corporation, Elmwood Energy Corporation,
NCP Energy, Inc. and GPU Advanced Resources, Inc., and services
rendered by Metropolitan Edison Company to GPU Advanced Resources,
Inc. are provided pursuant to oral arrangements and no written
agreements exist.
C. Certificate of GPU, Inc.
------------------------
11
<PAGE>
SIGNATURE
The undersigned registered holding company has duly caused this quarterly
report to be signed on its behalf by the undersigned officer thereunto duly
authorized pursuant to the requirements of the Public Utility Holding Company
Act of 1935.
GPU, INC.
March 29, 2000
By /s/ P. E. Maricondo
-------------------
P. E. Maricondo, Vice President,
Comptroller and Chief Accounting Officer
12
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Index of Financial Statements and Exhibits to be Filed in EDGAR
---------------------------------------------------------------
C. Certificate of GPU, Inc.
<PAGE>
Exhibit C
GPU, Inc.
300 Madison Avenue, Morristown, NJ 07962-1911
Certificate
-----------
Pursuant to the requirements of Rule 58 of the Public Utility Holding
Company Act of 1935, the undersigned certifies that:
A copy of quarterly report on Form U-9C-3, for the period ended
September 30, 1999, was filed with the state commissions having
jurisdiction over the electric retail rates of GPU's public utility
subsidiary companies. The names and addresses of these state
commissions are as follows:
New Jersey Division of Energy
Board of Public Utilities
Two Gateway Center
Newark, NJ 07102
Commonwealth of Pennsylvania*
Public Utility Commission
P.O. Box 3265
Harrisburg, PA 17105-3265
*A conformed copy of the publicly available report was filed with the
Pennsylvania Public Utility Commission.
March 29, 2000
By /s/ P. E. Maricondo
-------------------
P. E. Maricondo, Vice President,
Comptroller and Chief Accounting
Officer
Note: Pennsylvania Electric Company ("Penelec") is also subject to retail rate
regulation by the New York Public Service Commission with respect to
retail service to approximately 3,700 customers in Waverly, New York
served by Waverly Electric Power & Light Company, a Penelec subsidiary.
Waverly Electric's revenues are immaterial, accounting for less than 1%
of Penelec's total operating revenues.
