Amendment No. 4 to
SEC File No. 70-7850
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-1
APPLICATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 ("Act")
JERSEY CENTRAL POWER & LIGHT COMPANY ("JCP&L")
300 Madison Avenue, Morristown, N.J. 07960
METROPOLITAN EDISON COMPANY ("Met-Ed")
2800 Pottsville Pike, Reading, Pa. 19640
PENNSYLVANIA ELECTRIC COMPANY ("Penelec")
1001 Broad Street, Johnstown, Pa. 15907
GPU SERVICE CORPORATION ("GPUSC")
100 Interpace Parkway, Parsippany, New Jersey 07054
(Names of companies filing this statement
and addresses of principal executive offices)
GENERAL PUBLIC UTILITIES CORPORATION
(Name of top registered holding company
parent of the applicants)
Don W. Myers, Vice President Ira H. Jolles
and Treasurer Executive Vice President
M. A. Nalewako, Secretary & General Counsel
GPU Service Corporation GPU Service Corporation
100 Interpace Parkway 100 Interpace Parkway
Parsippany, New Jersey 07054 Parsippany, New Jersey 07054
R. S. Cohen, Esq., Secretary W. A. Boquist II, Esq.,
Jersey Central Power & Light Company Secretary
300 Madison Ave. Metropolitan Edison Company
Morristown, New Jersey 07960 2800 Pottsville Pike
Reading, Pennsylvania 19640
W. C. Matthews II, Esq.,
Secretary
Pennsylvania Electric Company
1001 Broad Street
Johnstown, Pennsylvania 15907
________________________________________________________________
(Names and addresses of agents for service)
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The Applicants hereby amend their Application on Form U-1,
as heretofore amended, docketed in SEC File No. 70-7850, as
follows:
1. By amending Item 1 Paragraph B in its entirety as follows:
"B. In anticipation of the projected short and long term
communication and data processing needs of the GPU
System, the advent of improved communications
technologies for data transfer and the development of
the ability to implement these new technologies when it
is economically feasible to do so, the Applicants have
built a fiber optic communication system (the "Fiber
System"). The backbone of the Fiber System, comprised
of cable containing an overhead ground wire and 36
optical fibers, links the GPU System from Parsippany,
New Jersey to Johnstown, Pennsylvania -- a distance of
approximately 300 miles, although the actual length of
the Fiber System as constructed is approximately 328
miles. (2)"
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"(2) The Applicants have retained, and continue to use the
Microwave System as a primary link to remote GPU System
offices in Pennsylvania and New Jersey and as a reserve
support communications system."
1
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2. By amending Item 1 Paragraph C in its entirety as follows:
"C. The Fiber System contains 36 fibers representing
approximately 10,800 fiber line miles. The
construction of the Fiber System was completed in
January, 1993. However, as sections were completed
during 1992, the ground wire and some of the fibers
contained therein were placed into service. The cable
was installed above ground over existing rights-of-
way. The installation process involved the replacement
of the existing transmission system overhead ground
wire (3) with an overhead cable containing a ground
wire and the optical fibers."
3. By amending Item 1 Paragraph D in its entirety as follows:
"D. The actual cost to construct the Fiber System was $21
million. The approximately $2 million in additional
costs over the Applicant's estimate of $19 million
resulted from the use of a new, slightly more
expensive, technology than originally proposed and from
extending
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"(3) The overhead ground wire is also known as the overhead
static or shield wire."
2
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the Fiber System to include Parsippany, New Jersey and
certain additional remote locations within the GPU
System. The costs were allocated among the Owners on
the basis of the number of fiber line miles in the
service territory or over the existing rights-of-way of
each Owner. Each Owner contributed a percentage of the
cost to construct the Fiber System, proportionate to
its Ownership interest, with funds supplied from its
general corporate funds. Consequently, JCP&L owns
17.2%, Met-Ed owns 44.6% and Penelec owns 38.2% of the
Fiber System. In each instance, the Owners' ownership
interests will be in fibers which are located in their
respective service territories or over their existing
rights-of-way."
4. By amending Item 1 Paragraph I by adding the following
sentence to the end thereof:
"Subject to the approval of this Commission, GPUSC, as
agent for JCP&L and Met-Ed, has entered into a lease
agreement with MCI Telecommunications Corporation with
respect to portions of the Fiber System in the JCP&L
and Met-Ed service territories, a copy of which was
filed with Commission on January 25, 1994, as Exhibit B
to this Application."
5. By amending Item 6 by adding and filing herewith Exhibit D-
3 as follows:
3
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D-3 Opinion and Order of PaPUC entered June 17, 1994
granting Met-Ed's application for approval of the MCI
fiber optic lease.
4
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SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE PUBLIC UTILITY
HOLDING COMPANY ACT OF 1935, THE UNDERSIGNED COMPANIES HAVE DULY
CAUSED THIS AMENDMENT TO BE SIGNED ON THEIR BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.
JERSEY CENTRAL POWER & LIGHT COMPANY
METROPOLITAN EDISON COMPANY
PENNSYLVANIA ELECTRIC COMPANY
GPU SERVICE CORPORATION
By: ______________________________
Don W. Myers
Vice President and Treasurer
Date: June 24, 1994
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EXHIBIT TO BE FILED BY EDGAR
Exhibit:
D-3 - Opinion and Order of PaPUC entered June 17, 1994
granting Met-Ed's application for approval of the
MCI fiber optic lease.
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EXHIBIT D-3
PENNSYLVANIA
PUBLIC UTILITY COMMISSION
Harrisburg, PA 17105-3265
Public Meeting held June 16, 1994
Commissioners Present:
David W. Rolka, Chairman
Joseph Rhodes, Jrs., Vice-Chairman
John M. Quain
Lisa Crutchfield, Statement attached
John Hanger, Statement attached
Application of Metropolitan Edison
Company for approval of the Docket No.
participation in the proposed lease of A-110300F0066
certain present reserve capacity of fiber
optic cable and related facilities to MCI
Telecommunications Corporation
OPINION AND ORDER
BY THE COMMISSION:
Before us is the revised compliance plan of Metropolitan
Edison Company ("Met-Ed") filed pursuant to our Opinion and
Order, in this docket, entered August 9, 1993.
History of the Proceedings
On February 17, 1993, Met-Ed filed an application for
approval of the participation in the proposed lease of certain
present reserve capacity of fiber optic cable and related
facilities to MCI Telecommunications Corporation ("MCI"). The
fiber optic communications cable extends from the Delaware River
in Bucks County to Met-Ed's Middletown Junction Substation in
Dauphin County, to MCI.
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In our Opinion and Order, entered August 9, 1993, we granted
conditional approval of the Application until Met-Ed submitted
specific plans on how it intended to flow the revenues from this
lease agreement through to ratepayers. Met-Ed was afforded 20
days to file said plan.
On August 30, 1993, Met-Ed submitted its plan of compliance.
By letter dated March 30, 1994, Met-Ed advised the Commission
that deliberations between Met-Ed, the Office of Consumer
Advocate ("OCA") and the Commission's Bureau of Consumer Services
("BCS") had occurred. As a result of those deliberations,
modifications to the original plan were agreed to by the parties.
Met-Ed submitted its revised compliance plan which reflected the
input of the OCA and the BCS.
Discussion
Succinctly stated, the revised compliance plan proposes to
apply the revenues from the subject lease agreement to fund a
program to be referred to as the "Dollar Share Program" ("the
Program"). Dollar Share is a "self-help" program which matches
dollar-for-dollar the monthly bill payments of qualifying
customers until past-due arrears have been eliminated. Met-Ed,
along with BCS, will monitor the progress and the effectiveness
of the Program. If at any time either Met-Ed or the BCS
determine that funding of the Program should be reduced or
eliminated, they shall so notify one another, the commission, and
the OCA. Implementation of any such reduction or elimination
shall be effective 30 days after notification, unless otherwise
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ordered by the Commission. Thereafter, all fiber optic lease
revenues not utilized for the Program shall be credited to
customers via Met-Ed's Energy Cost Rate ("ECR").
Met-Ed requests Commission approval of a revised ECR tariff
permitting the pass-through of the remaining lease revenues
should a reduction or elimination of the Program become
effective. Met-Ed also requests that any applicable notice
requirements for the requested tariff revision be waived.
After a review of the revised compliance plan, we find that
the plan to flow the revenues from the MCI lease agreement
through to ratepayers is reasonable and should be approved as in
the public interest. We also find that applicable notice
requirement for the ECR Tariff should be waived; THEREFORE,
IT IS ORDERED:
1. That the Application of Metropolitan Edison Company for
approval of the participation in the proposed lease of certain
present reserve capacity of fiber optic cable and related
facilities to MCI Telecommunications Corporation be, and is
hereby, approved.
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2. That the revised Energy Cost Rate Tariff filed by
Metropolitan Edison Company on April 1, 1994, shall be effective
on one's day notice after entry of this Opinion and Order.
BY THE COMMISSION,
/s/ John G. Alford
Secretary
(SEAL)
ORDER ADOPTED: June 16, 1994
ORDER ENTERED: June 17, 1994
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PENNSYLVANIA PUBLIC UTILITY COMMISSION
Harrisburg, Pennsylvania 17105-3265
APPLICATION OF METROPOLITAN PUBLIC MEETING-JUNE 16, 1994
EDISON COMPANY FOR APPROVAL OF JUNE-94-OSA-144*
THE PARTICIPATION IN THE PROPOSED DOCKET NO. A-110300F0066
LEASE OF CERTAIN PRESENT RESERVE
CAPACITY OF FIBER OPTIC CABLE AND
RELATED FACILITIES TO MCI
TELECOMMUNICATIONS CORPORATION
STATEMENT OF COMMISSIONER LISA CRUTCHFIELD
This Commission, at its May 13, 1993 Public Meeting,
conditionally approved Metropolitan Edison Company's (Met-Ed)
application to participate in the proposed lease of certain
present reserve capacity of fiber optic cable and related
facilities to MCI Telecommunications Corporation. (1) The
Commission specifically granted conditional approval of the
application until it approved the Met-Ed plans detailing the
manner in which the Company intended to flow the revenues from
the lease agreements to ratepayers. The Opinion and Order stated
that among the various vehicles available to flow the revenues
through to ratepayers are Energy Cost Rate, Customer Assistance
Program and Project Good Neighbor.
The Company, on August 30, 1993, filed a compliance plan
which proposed that the lease agreement revenues applied to the
Project Good Neighbor and alternatively the Energy Cost Rate
would be utilized to flow future revenues to ratepayers. Based
on discussions with the Office of Consumer Advocate and the
Commission's Bureau of Consumer Services, the Company, on April
1, 1994, submitted a revised plan which proposed that the
revenues
______________________________
(1) The Commission's Opinion and Order was entered August 9,
1993.
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Program. The Company's Plan proposed that it and the Bureau of
Consumer Services monitor the effectiveness of the Program.
Additionally, the revenues not used for the Dollar Share Program
would be credited to customers via the Company Energy Cost Rate.
I will support the Company's revised plan that allows the
lease agreement revenues to be used for the Dollar Share Program
rather than flowing all future lease agreement revenues to
ratepayers through the Company's Energy Cost Rate. However, I
strongly urge the Bureau of Consumer Services to closely monitor
this program and report to the Commission on the effectiveness of
the Program, particularly as it relates to the Company's customer
account delinquency rate.
6/16/94 /s/ Lisa Crutchfield, Commissioner
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PENNSYLVANIA PUBLIC UTILITY COMMISSION
Harrisburg, Pennsylvania 17105-3265
APPLICATION OF METROPOLITAN PUBLIC MEETING -
EDISON COMPANY JUNE 16, 1994
JUN-94-OSA-144*
DOCKET NO. A-110300F0066
STATEMENT OF COMMISSIONER JOHN HANGER
It is with pleasure that I take this opportunity to
complement Metropolitan Edison for a creative effort to find new
ways to serve their customers.
Met Ed has proposed using the revenues earned by leasing
certain fiber optic capacity to MCI to fund a new "Dollar Share"
program. Dollar Share is a "self-help" program which matches
qualifying customer arrearage payments. The program is designed
to serve those who are not served by Met Ed's CAP program but
still need assistance to retire an arrearage. I look forward to
seeing the results of this innovative program.
June 15th, 1994 /s/ John Hanger, Commissioner
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