|
|
|
|
|
|
|
|
|
|
|
|
|
|
Previous: GENERAL MOTORS CORP, 424B3, 1999-04-23 |
Next: HARTFORD STOCK HLS FUND INC, 485BPOS, 1999-04-23 |
<PAGE>
Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1998 and Ending December 31, 1998
--------------------- -----------------------
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
GPU SERVICE, INC.
(Exact Name of Reporting Company)
A Subsidiary Service Company
("Mutual" or "Subsidiary")
Date of Incorporation April 30, 1970
If not Incorporated, Date of Organization
State or Sovereign Power under which Incorporated or Organized Pennsylvania
Location of Principal Executive Offices of Reporting Company:
300 Madison Avenue, Morristown, NJ 07962
----------------------------------------
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
310 Madison Avenue
P. R. Chatman Assistant Comptroller Morristown, NJ 07962
- --------------------------------------------------------------------------------
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by Reporting
Company:
GPU, INC.
- --------------------------------------------------------------------------------
<PAGE>
1
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing. - Rule 94 provides that on or before the first day
of May in each calendar year, each mutual service company and each subsidiary
service company as to which the Commission shall have made a favorable finding
pursuant to Rule 88, and every service company whose application for approval or
declaration pursuant to Rule 88 is pending shall file with the Commission an
annual report on Form U-13-60 and in accordance with the Instructions for that
form.
2. Number of Copies. - Each annual report shall be filed in duplicate.
The company should prepare and retain at least one extra copy for itself in case
correspondence with reference to the report become necessary.
3. Period Covered by Report. - The first report filed by any company
shall cover the period from the date the Uniform System of Accounts was required
to be made effective as to that company under Rules 82 and 93 to the end of that
calendar year. Subsequent reports should cover a calendar year.
4. Report Format. - Reports shall be submitted on the forms prepared
by the Commission. If the space provided on any sheet of such form is
inadequate, additional sheets may be inserted of the same size as a sheet of the
form or folded to such size.
5. Money Amounts Displayed. - All money amounts required to be shown
in financial statements may be expressed in whole dollars, in thousands of
dollars or in hundred thousands of dollars, as appropriate and subject to
provisions of Regulation S-X (S210.3-01(b)).
6. Deficits Displayed. - Deficits and other like entries shall be
indicated by the use of either brackets or a parenthesis with corresponding
reference in footnotes. (Regulation S-X, S210.3-01(c))
7. Major Amendments or Corrections. - Any company desiring to amend or
correct a major omission or error in a report after it has been filed with the
Commission shall submit an amended report including only those pages, schedules,
and entries that are to be amended or corrected. A cover letter shall be
submitted requesting the Commission to incorporate the amended report changes
and shall be signed by a duly authorized officer of the company.
8. Definitions. - Definitions contained in Instruction 01-8 to the
Uniform System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February 2,
1979 shall be applicable to words or terms used specifically within this Form
U-13-60.
9. Organization Chart. - The service company shall submit with each
annual report a copy of its current organization chart.
10. Methods of Allocation. - The service company shall submit with each
annual report a listing of the currently effective methods of allocation being
used by the service company and on file with the Securities and Exchange
Commission pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed. - The
service company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use of capital billed during the calendar year.
<PAGE>
<TABLE>
2
<CAPTION>
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS Page
- --------------------------------------------------------------------------------
Number
Description of Schedules and Accounts Schedule or Account
Number
<S> <C> <C>
COMPARATIVE BALANCE SHEET Schedule I 4-5
SERVICE COMPANY PROPERTY Schedule II 6-7
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY Schedule III 8
INVESTMENTS Schedule IV 9
ACCOUNTS RECEIVABLE FROM ASSOCIATE
COMPANIES Schedule V 10
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 11
STORES EXPENSE UNDISTRIBUTED Schedule VII 12
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 13
MISCELLANEOUS DEFERRED DEBITS Schedule IX 14
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES Schedule X 15
PROPRIETARY CAPITAL Schedule XI 16
LONG-TERM DEBT Schedule XII 17
CURRENT AND ACCRUED LIABILITIES Schedule XIII 18
NOTES TO FINANCIAL STATEMENTS Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
----------------------------
ANALYSIS OF BILLING --ASSOCIATE COMPANIES Account 457 21
ANALYSIS OF BILLING --NONASSOCIATE COMPANIES Account 458 22
ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE
AND NONASSOCIATE COMPANIES Schedule XVI 23
SCHEDULE OF EXPENSE BY DEPARTMENT OR
SERVICE FUNCTION Schedule XVII 24-25A
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 26
OUTSIDE SERVICES EMPLOYED Account 923 27
EMPLOYEE PENSIONS AND BENEFITS Account 926 28
GENERAL ADVERTISING EXPENSES Account 930.1 29
MISCELLANEOUS GENERAL EXPENSES Account 930.2 30
RENTS Account 931 31
TAXES OTHER THAN INCOME TAXES Account 408 32
DONATIONS Account 426.1 33
OTHER DEDUCTIONS Account 426.5 34
NOTES TO STATEMENT OF INCOME Schedule XVIII 35
</TABLE>
<PAGE>
3
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS Page
Number
Description of Reports or Statements
ORGANIZATION CHART 36
METHODS OF ALLOCATION 37
ANNUAL STATEMENT OF COMPENSATION FOR USE 38
OF CAPITAL BILLED
VENTURE DISCLOSURES 39
FINANCIAL DATA SCHEDULE - FILED VIA EDGAR
NOTE: Dollar figures in this report are shown in thousands unless otherwise
noted.
<PAGE>
<TABLE>
<CAPTION>
4
ANNUAL REPORT OF GPU SERVICE, INC.
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior
year.
ACCOUNT ASSETS AND OTHER DEBITS As of December 31
- ------------------------------------------ ---------------------
CURRENT PRIOR
SERVICE COMPANY PROPERTY
<S> <C> <C>
101 Service Company property (Schedule II) $ 76,775 $ 70,922
107 Construction work in progress (Schedule II) - -
------- -------
108 Total Property 76,775 70,922
108 Less accumulated provision for depreciation
and amortization of service company
property (Schedule III) 31,581 26,721
------- -------
Net Service Company Property 45,194 44,201
------- -------
INVESTMENTS
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) 20,959 19,138
------- -------
Total Investments 20,959 19,138
------- -------
CURRENT AND ACCRUED ASSETS
131 Cash 10 24
134 Special deposits 103 70
135 Working funds - -
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Accounts receivable 1,819 6,789
144 Accumulated provision for uncollectible accounts - -
146 Accounts receivable from associate
companies (Schedule V) 27,503 17,073
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 51 1,219
171 Interest Receivable 8 -
174 Miscellaneous current and accrued
assets (Schedule VIII) - -
------- -------
Total Current and Accrued Assets 29,494 25,175
------- -------
DEFERRED DEBITS
181 Unamortized debt expense 29 36
184 Clearing accounts 1,962 -
186 Miscellaneous deferred debits (Schedule IX) 2,758 2,691
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 18,490 17,411
------- -------
Total Deferred Debits 23,239 20,138
------- -------
TOTAL ASSETS AND OTHER DEBITS $118,886 $108,652
======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
5
ANNUAL REPORT OF GPU SERVICE, INC.
SCHEDULE I - COMPARATIVE BALANCE SHEET
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL As of December 31
CURRENT PRIOR
PROPRIETARY CAPITAL
<S> <C> <C>
201 Common stock issued (Schedule XI) $ 50 $ 50
211 Miscellaneous paid-in-capital (Schedule XI) - -
215 Retained earnings / Accumulated other
comprehensive income /(loss) (Schedule XI) (3,933) (3,112)
216 Unappropriated retained earnings (Schedule XI) - -
------- -------
217 Total Proprietary Capital (3,883) (3,062)
------- -------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) 22,000 22,001
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
------- -------
Total Long-term Debt 22,000 22,001
------- -------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable - -
232 Accounts payable 16,094 12,919
233 Notes payable to associate
companies (Schedule XIII) - -
234 Accounts payable to associate
companies (Schedule XIII) 37,006 23,498
236 Taxes accrued 174 3,535
237 Interest accrued 383 274
238 Dividends declared - -
241 Tax collections payable 19 8
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 16,614 19,350
------- -------
Total Current and Accrued Liabilities 70,290 59,584
------- -------
DEFERRED CREDITS
253 Other deferred credits 22,132 17,827
255 Accumulated deferred investment tax credits - -
------- -------
Total Deferred Credits 22,132 17,827
------- -------
282 ACCUMULATED DEFERRED INCOME TAXES 8,347 12,302
--------------------------------- ------- -------
TOTAL LIABILITIES AND PROPRIETARY $118,886 $108,652
======= =======
CAPITAL
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
6
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE II - SERVICE COMPANY PROPERTY
BALANCE AT RETIREMENTS OTHER BALANCE AT
BEGINNING ADDITIONS OR CHANGES 1/ CLOSE OF
DESCRIPTION OF YEAR SALES YEAR
SERVICE COMPANY PROPERTY
Account
<S> <C> <C> <C> <C> <C>
301 ORGANIZATION $ 49 $ - $ - $ - $ 49
303 MISCELLANEOUS
INTANGIBLE PLANT
304 LAND & LAND RIGHT 320 - - - 320
305 STRUCTURES AND
IMPROVEMENTS 38,280 236 - - 38,516
306 LEASEHOLD
IMPROVEMENTS - - - - -
307 EQUIPMENT 2/ 25,917 6,702 - (1,192) 31,427
-
308 OFFICE FURNITURE
AND EQUIPMENT 5,231 169 60 - 5,340
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY 3/ 1,125 (2) - - 1,123
- --------------------------------------------------------------------
SUB-TOTAL 70,922 7,105 60 (1,192) 76,775
--------------------------------------------------------------------
107 CONSTRUCTION WORK
IN PROGRESS 4/ - - - - -
-
TOTAL $70,922 $ 7,105 $ 60 $ (1,192) $76,775
===================================================================
<FN>
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
PAYMENT OF CAPITAL LEASE OBLIGATION.
</FN>
</TABLE>
<PAGE>
7
SCHEDULE II - CONTINUED
2/ SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING
THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
BALANCE AT
SUBACCOUNT DESCRIPTION ADDITIONS CLOSE OF
YEAR
COMMUNICATIONS EQUIPMENT
(MICROWAVE & TELEPHONE) $ 462 $ 2,259
DATA PROCESSING EQUIPMENT 5,855 24,752
DISPATCHING EQUIPMENT - 811
LOAD RESEARCH EQUIPMENT 119
MISCELLANEOUS EQUIPMENT 12 339
PERSONAL COMPUTER 373 3,147
TOTAL $ 6,702 $31,427
====== ======
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
Photographic, Mailing Equipment, HVA System, Security System
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
N/A
<PAGE>
<TABLE>
<CAPTION>
8
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
BALANCE AT ADDITIONS BALANCE AT
BEGINNING CHARGED OTHER CHANGES CLOSE OF
DESCRIPTION OF YEAR TO RETIREMENTS ADD (DEDUCT)1/ YEAR
ACCOUNT 403
Account
301 ORGANIZATION
303 MISCELLANEOUS
INTANGIBLE PLANT
304 LAND & LAND RIGHTS
305 STRUCTURES AND
<S> <C> <C> <C> <C> <C>
IMPROVEMENTS $11,143 $ 906 $ - $ - $12,049
306 LEASEHOLD
IMPROVEMENTS - - - - -
307 EQUIPMENT 11,444 3,415 - - 14,859
308 OFFICE FURNITURE
AND FIXTURES 3,703 495 - - 4,198
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY 431 44 - - 475
$26,721 $4,860 $ - $ - $31,581
====== ===== ===== ==== ======
<FN>
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
N/A
</FN>
</TABLE>
<PAGE>
9
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments", state each
investment separately, with description, including, the
name of issuing company, number of shares or principal
amount, etc.
Under Account 136, "Temporary Cash Investments", list
each investment separately.
BALANCE AT BALANCE AT
DESCRIPTION EGINNING CLOSE OF
OF YEAR YEAR
ACCOUNT 123-INVESTMENT IN ASSOCIATE COMPANIES
NONE
ACCOUNT 124 - OTHER INVESTMENTS
COMPANY OWNED LIFE INSURANCE -
CASH SURRENDER VALUE $ 10,859 $12,743
RABBI TRUST 8,107 8,107
HEALTH CARE RESERVE 172 109
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
NONE
TOTAL $ 19,138 $20,959
====== ======
<PAGE>
10
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts
receivable from each associate company. Where the service
company has provided accommodation or convenience payments
for associate companies, a separate listing of total
payments for each associate company by subaccount should
be provided.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE OF
OF YEAR YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE
COMPANIES
GPU INTERNATIONAL, INC. $ 570 $ 653
GPU POWER, INC. 18 23
GPU CAPITAL, INC. 124 79
GPU, INC. - -
GPU GENERATION, INC. 2,803 14,312
GPU NUCLEAR, INC. 2,541 12,343
GPU ADVANCED RESOURCES, INC. 234 4
GPU TELCOM, INC. - 89
JERSEY CENTRAL POWER & LIGHT COMPANY 10,783 -
METROPOLITAN EDISON COMPANY - -
PENNSYLVANIA ELECTRIC COMPANY - -
--------- --------
TOTAL $ 17,073 $ 27,503
====== ======
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
INTERCHANGE TRANSACTIONS
JERSEY CENTRAL POWER & LIGHT COMPANY $ 139,544
METROPOLITAN EDISON COMPANY 28,718
PENNSYLVANIA ELECTRIC COMPANY 3,692
TOTAL PAYMENTS $171,954
========
<PAGE>
11
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with
respect to fuel stock expenses during the year and
indicate amount attributable to each associate company.
Under the section headed "Summary" listed below give an
overall report of the fuel functions performed by the
service company.
DESCRIPTION LABOR EXPENSES TOTAL
ACCOUNT 152 -FUEL STOCK EXPENSES UNDISTRIBUTED
NONE
TOTAL - - -
===== ===== =====
SUMMARY:
<PAGE>
<TABLE>
<CAPTION>
12
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to stores expense during the year and indicate
amount attributable to each associate company.
DESCRIPTION LABOR EXPENSES TOTAL
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED $ 958 $430 $1,388
BILLED TO:
<S> <C> <C> <C>
JERSEY CENTRAL POWER & LIGHT COMPANY (235) (128) (363)
METROPOLITAN EDISON COMPANY (459) (110) (569)
PENNSYLVANIA ELECTRIC COMPANY (170) (90) (260)
GPU NUCLEAR, INC. - - -
GPU GENERATION, INC. (94) (102) (196)
<FN>
NOTE: Stores expenses are billed back to the associated companies in the month incurred.
</FN>
TOTAL $ - $ - $ -
===== ===== =====
</TABLE>
<PAGE>
13
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped, showing the number of items
in each group.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE OF
OF YEAR YEAR
ACCOUNT 174 -
MISCELLANEOUS CURRENT AND ACCRUED
ASSETS
NONE
TOTAL - -
====== ======
<PAGE>
<TABLE>
<CAPTION>
14
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped by class showing the number of items in
each class.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE OF
OF YEAR YEAR
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
<S> <C> <C>
Air Shuttle $ 106 $ -
Stock Plan 2,522 2,636
Procurement Cards 26 10
Unclassified Charges by Associates 448 107
Misc. Billing Adjustments (411) 5
TOTAL $2,691 $ 2,758
===== ======
</TABLE>
<PAGE>
15
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
INSTRUCTIONS: Provide a description of each material research, development, or
demonstration project, which incurred costs by the service
corporation during the year.
DESCRIPTION AMOUNT
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES
NONE
TOTAL $ -
=======
<PAGE>
<TABLE>
<CAPTION>
16
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE XI - PROPRIETARY CAPITAL
- ------------------------------------------------------------------------------------------------------------------
NUMBER OF PAR OR STATED
ACCOUNT NUMBER CLASS OF STOCK SHARES VALUE OUTSTANDING CLOSE OF PERIOD
AUTHORIZED PER SHARE NO.OF SHARES TOTAL AMOUNT
201 COMMON STOCK ISSUED 5,000 $10 * 5,000 $50,000*
- ----------------------------------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of
transactions which gave rise to the reported amounts.
DESCRIPTION
AMOUNT
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL NONE
<S> <C> <C>
ACCOUNT 215 - RETAINED EARNINGS /ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS):
GPUS Excess Pension Plan Minimum Liability Recognition $(3,933)
TOTAL $(3,933)
<FN>
INSTRUCTIONS: Give particulars concerning net income or (loss)
during the year, distinguishing between compensation
for the use of capital owed or net loss remaining
from servicing nonassociates per the General
Instructions of the Uniform System of Accounts. For
dividends paid during the year in cash or otherwise,
provide rate percentage, amount of dividend, date
declared and date paid.
</FN>
<CAPTION>
BALANCE AT NET INCOME BALANCE AT
D E S C R I P T I O N BEGINNING OR DIVIDENDS CLOSE OF
OF YEAR (LOSS) PAID YEAR
ACCOUNT 216 - UNAPPROPRIATED RETAINED EARNINGS
NONE
<S> <C> <C> <C> <C>
TOTAL $ - $ - $ - $ -
======== ========= ======= ========
* In whole dollars.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
17
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE XII- LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be
reported separately for advances on notes, and advances on open account. Names
of associate companies from which advances were received shall be shown under
the class and series of obligation column. For Account 224 - Other long term
debt provide the name of creditor company or organization, terms of the
obligation, date of maturity, interest rate, and the amount authorized and
outstanding.
TERMS OF OBLIG DATE BALANCE AT BALANCE AT
NAME OF CREDITOR CLASS & SERIES OF INTEREST AMOUNT BEGINNING 1/ CLOSE
OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS OF YEAR
ACCOUNT 223 - ADVANCES FROM ASSOCIATE
COMPANIES:
NONE
ACCOUNT 224 - OTHER LONG-TERM DEBT:
<S> <C> <C> <C> <C> <C>
First National Bank of Chicago 4/1/01 Variable $22,000 $ - $ - $22,000
Obligations under Capital Leases Various Various 1 - 1(a) -
------ ------ ------- ---------- ----- ---------
Total $22,001 $ - $ - $22,000
====== ====== ======== ========
<FN>
1/ GIVE AN EXPLANATION OF DEDUCTIONS:(a)Obligations under Capital Lease-Payments
per agreements.
</FN>
</TABLE>
<PAGE>
18
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each
associate company. Give description and amount of
miscellaneous current and accrued liabilities. Items less
than $10,000 may be grouped, showing the number of items in
each group.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE OF
OF YEAR YEAR
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
NONE
------- --------
TOTAL - -
======= ======
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
JERSEY CENTRAL POWER & LIGHT COMPANY $ - $ 8,056
METROPOLITAN EDISON COMPANY 8,956 14,976
PENNSYLVANIA ELECTRIC COMPANY 9,482 10,904
GPU, INC. 5,060 3,070
------ ------
TOTAL $23,498 $37,006
====== ======
ACCOUNT 242 -MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
ACCRUALS
- DENTAL $ 351 $ 362
- CAFETERIA SUPPLEMENT 18 18
- INTERCHANGE POWER (350) (80)
- INCENTIVE COMPENSATION 4,689 4,074
- HOSPITALIZATION 2,448 2,253
- OFFICERS' DEFERRED COMPENSATION 3,425 550
- PENSION COSTS 2,252 (1,361)
- SEVERANCE PAY 592 831
- WORKMEN'S COMPENSATION 21 5
- VACATION 4,715 4,815
- OBLIGATIONS UNDER CAPITAL LEASES 1,189 -
(Short-Term Portion)
-
- COMPANY OWNED LIFE INSURANCE - 5,150
- SAVINGS PLAN - (27)
- LIFE INSURANCE - 28
- SAFETY EYEGLASS PROGRAM - (10)
- OTHER - 6
------ ------
TOTAL $ 19,350 $16,614
====== =======
<PAGE>
19
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars
as to any significant contingent assets or liabilities existing
at the end of the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here by
reference.
NONE
<PAGE>
20
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
INCOME
457 Services rendered to associate companies $104,423 $111,758
458 Services rendered to nonassociate
companies 208 162
421 Miscellaneous income or loss (112) 3,037
------- -------
Total Income 104,519 114,957
------- -------
EXPENSE
920 Salaries and wages 44,134 53,516
921 Office supplies and expenses 9,341 11,361
922 Administrative expense transferred -
credit - -
923 Outside services employed 6,818 6,383
924 Property insurance 99 23
925 Injuries and damages 942 (673)
926 Employee pensions and benefits 15,250 16,839
928 Regulatory commission expense - -
930.1 General advertising expenses 92 23
930.2 Miscellaneous general expenses 268 848
931 Rents 8,533 6,228
932 Maintenance of structures and equipment 7,399 4,835
403 Depreciation and amortization expense 4,897 4,558
408 Taxes other than income taxes 4,365 6,301
409 Income taxes 1,585 8,008
410 Provision for deferred income taxes 6,901 (345)
411 Provision for deferred income taxes -
credit (7,401) (5,246)
411.5 Investment tax credit - -
426.1 Donations 271 217
426.5 Other deductions (999) (535)
427 Interest on long-term debt 1,340 2,091
430 Interest on debt to associate
companies - -
431 Other interest expense 684 525
------- -------
Total Expense 104,519 114,957
------- -------
Net Income or (Loss) $ - $ -
======= =======
<PAGE>
<TABLE>
<CAPTION>
21
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
457-1 457-2 457-3
<S> <C> <C> <C> <C>
GPU, INC. $ 1,124 $ 95 $ - $ 1,219
JERSEY CENTRAL POWER
& LIGHT COMPANY 23,484 2,894 - 26,378
PENNSYLVANIA ELECTRIC
COMPANY 14,564 1,862 - 16,426
METROPOLITAN EDISON
COMPANY 29,544 10,282 - 39,826
GPU NUCLEAR, INC. 11,247 1,851 - 13,098
GPU INTERNATIONAL, INC. 613 36 - 649
GPU POWER, INC. 50 2 - 52
GPU ELECTRIC, INC. 184 21 - 205
GPU GENERATION, INC. 5,760 810 - 6,570
TOTAL $ 86,570 $ 17,853 $ - $104,423
====== ====== ====== =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
22
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
DIRECT INDIRECT COMPENSATION EXCESS
COSTS COSTS FOR USE OR TOTAL
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL TOTAL DEFICIENCY AMOUNT
458-1 458-2 458-3 COST 458-4 BILLED
------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
* Consumers Water Companies (A) $ 78 $ 38 $ - $116 $ 2 $118
Utilities Employees Credit Union (B) 33 57 - 90 - 90
TOTAL $111 $ 95 $ - $206 $ 2 $208
=== === === === = ====
<FN>
INSTRUCTION: Provide a brief description of the services rendered to each nonassociated company:
(A) Billing Services
(B) Computer Services
* See Descriptions of Activities on page 39.
</FN>
</TABLE>
<PAGE>
<TABLE>
23
<CAPTION>
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
ASSOCIATE COMPANY CHARGES NONASSOCIATE COMPANY CHARGES TOTAL CHARGES FOR SERVICE
DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL COST COST TOTAL
- --------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES $ 42,279 $ 1,830 $ 44,109 $14 $11 $ 25 $ 42,293 $1,841 $44,134
921 OFFICE SUPPLIES & EXPENSES 7,245 1,960 9,205 57 79 136 7,302 2,039 9,341
922 ADMINISTRATIVE EXPENSE
TRANSFERRED-CREDIT
923 OUTSIDE SERVICES EMPLOYED 6,088 730 6,818 6,088 730 6,818
924 PROPERTY INSURANCE 99 99 99 99
925 INJURIES AND DAMAGES 17 925 942 17 925 942
926 EMPLOYEE PENSIONS & BENEFITS 14,674 576 15,250 14,674 576 15,250
928 REG. COMMISSION EXPENSE
930.1 GENERAL ADVERTISING EXPENSES 92 92 92 92
930.2 MISC. GENERAL EXPENSES 268 268 268 268
931 RENTS 7,388 1,127 8,515 17 1 18 7,405 1,128 8,533
932 MAINTENANCE OF STRUCTURES
AND EQUIPMENT 5,332 2,040 7,372 23 4 27 5,355 2,044 7,399
403 DEPRECIATION & AMORTIZATION
EXPENSE 82 4,815 4,897 82 4,815 4,897
408 TAXES OTHER THAN INCOME TAXES 3,755 610 4,365 3,755 610 4,365
409 INCOME TAXES 1,585 1,585 1,585 1,585
410 PROVISION FOR DEFERRED
INCOME TAXES 6,901 6,901 6,901 6,901
411 PROVISION FOR DEFERRED
INCOME TAXES - CREDIT (7,401) (7,401) (7,401) (7,401)
411.5 INVESTMENT TAX CREDIT
426.1 DONATIONS 271 271 271 271
426.5 OTHER DEDUCTIONS (999) (999) (999) (999)
427 INTEREST ON LONG-TERM DEBT 1,340 1,340 1,340 1,340
431 OTHER INTEREST EXPENSE 5 679 684 5 679 684
<FN>
INSTRUCTION: Total cost of service will equal for associate and nonassociate
companies the total amount billed under their separate analysis
of billing schedules.
</FN>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL EXPENSES = 86,497 17,816 104,313 111 95 206 86,608 17,911 104,519
------ ------ ------- --- -- --- ------ ------ -------
COMPENSATION FOR USE OF EQUITY
CAPITAL = ------ ------ ------- --- -- --- ------ ------ ------
430 INTEREST ON DEBT TO ASSOC.
COMPANIES = ------ ------ ------- --- -- --- ------ ------ ------
TOTAL COST OF SERVICE =$86,497 $17,816 $104,313 $111 $95 $206 $86,608 $17,911 $104,519
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
24
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
BUDGETS AND
TOTAL FINANCIAL CORPORATE HUMAN
DESCRIPTION OF ITEMS AMOUNT OVERHEAD ACCOUNTING TAXES ANALYSIS SECRETARY LEGAL RESOURCES
- ----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES $ 44,134 $ 1,841 $5,575 $ 829 $463 $541 $2,818 $2,112
921 OFFICE SUPPLIES & EXPENSES 9,341 2,039 274 85 12 42 464 788
922 ADMINISTRATIVE EXPENSE
TRANSFERRED - CREDIT
923 OUTSIDE SERVICES EMPLOYED 6,818 730 1,939 32 1 11 421 1,031
924 PROPERTY INSURANCE 99 99
925 INJURIES AND DAMAGES 942 925 1 6
926 EMPLOYEE PENSIONS & BENEFITS 15,250 576 1,772 262 146 146 876 456
928 REG. COMMISSION EXPENSE
930.1 GENERAL ADVERTISING EXPENSE 92 61
930.2 MISC. GENERAL EXPENSES 268 4 4 3 40
931 RENTS 8,533 1,128 276 2 3 38 4 23
932 MAINTENANCE OF STRUCTURES
& EQUIPMENT 7,399 2,044 3 54 52 4
403 DEPRECIATION & AMORTIZATION
EXPENSE 4,897 4,815
408 TAXES OTHER THAN INCOME TAXES 4,365 610 442 66 36 37 219 104
409 INCOME TAXES 1,585 1,585
410 PROVISION FOR DEFERRED
INCOME TAXES 6,901 6,901
411 PROVISION FOR DEFERRED
INCOME TAXES - CREDIT (7,401) (7,401)
411.5 INVESTMENT TAX CREDIT
426.1 DONATIONS 271 1
426.5 OTHER DEDUCTIONS (999)
427 INTEREST ON LONG-TERM DEBT 1,340 1,340
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES
431 OTHER INTEREST EXPENSE 684 679
<FN>
INSTRUCTION: Indicate each department or
service function. (See Instruc-
tion 01-3 General Structure of
Accounting System: Uniform
System Account)
</FN>
------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL EXPENSES $104,519 $17,911 $10,284 1,279 $661 $873 $4,863 $4,619
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
25
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
MATERIAL INFORMATION
ACCOUNT & INTERNAL TECHNOLOGY
NUMBER SERVICE EXECUTIVE AUDIT SERVICES
- -------------------------------------------------------------
920 $ 132 $3,245 $2,502 $18,328
921 27 470 368 2,834
922
923 82 161 1,852
924
925 10
926 110 723 792 7,671
928
930.1
930.2 1 89 2 13
931 6 1 6 2,993
932 1 18 12 4,912
403 31
408 13 144 198 2,066
409
410
411
411.5
426.1 50
426.5
427
430
431 4
TOTAL $ 290 $4,822 $4,041 $40,714
- ----------------------------------------------------------
<PAGE>
25A
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
- ----------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
ACCOUNT PROCESS GOVERNMENT CORPORATE
NUMBER SERVICES COMMUNICATIONS AFFAIRS TREASURY GENERAL
- ----------------------------------------------------------------------------
920 $1,585 $ 744 $ 531 $2,888
921 301 273 173 335 $ 856
922
923 17 257 155 129
924
925
926 508 203 137 872
928
930.1 31
930.2 67 40 5
931 100 117 20 3,816
932 105 6 2 170 16
403 51
408 127 51 34 218
409
410
411
411.5
426.1 220
426.5 (999)
427
430
431 1
TOTAL $2,743 $1,852 $1,189 $4,638 $3,740
- ---------------------------------------------------------------------------
<PAGE>
<TABLE>
26
<CAPTION>
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
DEPARTMENTAL SALARY EXPENSE NUMBER
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO PERSONNEL
- ------------------ ----------------------------------- ---------
Indicate each department TOTAL PARENT OTHER NON END OF
or service function. AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Accounting* $ 5,575 $ 16 $ 5,559 $ - 38
Taxes 829 1 828 - 12
Budgets and Financial Analysis 463 - 463 - 7
Corporate Secretary 541 97 444 - 7
Legal 2,818 1 2,817 - 44
Human Resources 2,112 - 2,112 - 20
Materials and Services* 950 60 890 - 1
Executive 3,245 612 2,633 - 12
Internal Auditing 2,502 - 2,502 - 37
Information Technology Services* 19,351 - 19,326 25 -
Process Services* 1,585 - 1,585 - -
Communications 744 4 740 - 9
Government Affairs 531 - 531 - 5
Treasury 2,888 59 2,829 - 38
TOTAL $44,134 $850 $43,259 $25 230
====== === ====== == ===
<FN>
* Excludes the following number of personnel at year-end who are paid by GPU Service, Inc. but report to GPU Energy management:
</FN>
<S> <C>
Accounting 56
Materials & Services 15
Information Technology Services 325
Process Services 42
</TABLE>
<PAGE>
<TABLE>
27
ANNUAL REPORT OF GPU SERVICE,INC.
For the Year Ended December 31, 1998
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
<CAPTION>
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $100,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
RELATIONSHIP
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
Legal
<S> <C> <C> <C>
Ballard, Spahr, Andrews Counsel on financing matters, NA $ 237
& Ingersoll insurance contracts
43 Others (under $100,000) 91
-----
Sub-Total 328
Engineering
JDB Engineering, Inc. Airport building maintenance NA 100
4 Others (under $100,000) 18
----
Sub-Total 118
Data Processing/Information
Services
Arcus Staffing Resources, Inc. IS support/electronic NA 102
data interchange
Computer People, Inc. IS Support NA 426
H.L. Yoh Company, LLC LAN/Network services support NA 208
Nemeth/Martin Personnel Temporary IS personnel NA 140
Technical Resource Group, Inc. IS support/corporate benefits NA 104
(employee data system)
11 Others (under $100,000) 143
-----
Sub-Total $1,123
------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
27A
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $100,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
RELATIONSHIP
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
Other Professional Services
<S> <C> <C>
AON Consulting Consulting in conjunction with NA $ 282
the retirement plan
The Ayco Company Consulting related to NA 100
corporate benefits
Brady & Associates Consulting related to NA 100
divestiture activities
Jersey Central Power & Light Co. Personnel services A 1,368
Keane, Inc. Consulting related to NA 529
year 2000 compliance
Metropolitan Edison Company Personnel services A 200
PricewaterhouseCoopers, LLP Accounting/Audit services NA 769
Saztec International, Inc. Consulting related to NA 100
divestiture activities
Towers Perrin Consulting related to NA 283
corporate compensation
233 Others (under $100,000) 1,518
-----
Sub-total 5,249
Grand Total $6,818
</TABLE>
<PAGE>
28
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be
limited to $25,000.
DESCRIPTION AMOUNT
CAFETERIA SUPPLEMENT $ 94
EMPLOYEE SAVINGS PLAN 1,199
GROUP LIFE INSURANCE 486
HOSPITAL, SURGICAL, MEDICAL & DENTAL INSURANCE 3,780
LONG TERM DISABILITY (99)
OPEB HEALTH INSURANCE 3,007
OPEB LIFE INSURANCE 854
PENSION PLANS 2,899
VACATION 3,027
OTHER BENEFITS (Under $25,000) 3
TOTAL $15,250
<PAGE>
29
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses", classifying the items
according to the nature of the advertising and as defined
in the account definition. If a particular class includes
an amount in excess of $3,000 applicable to a single
payee, show separately the name of the payee and the
aggregate amount applicable thereto.
DESCRIPTION NAME OF PAYEE AMOUNT
Newspaper, Magazine, Pomerantz Promotions $ 45
& Other Media
Leaders Magazine Inc. 17
Winning Strategies Public Relations 8
Satellite Network Systems 5
Panavid, Inc. 4
Other (18 payees) 13
---
TOTAL $ 92
===
<PAGE>
30
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses", classifying such expenses
according to their nature. Payments and expenses permitted
by Section 321 (b) (2) of the Federal Election Campaign
Act, as amended by Public Law 94-283 in 1976 (2 U.S.C.S.
441 (b) (2) shall be separately classified.
DESCRIPTION AMOUNT
Dues & Memberships $185
Company Sponsored Community Activities 78
Licenses, Permits & Registration 5
TOTAL $268
====
<PAGE>
31
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
RENTS
ACCOUNT 931
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents", classifying such expenses by major groupings of
property, as defined in the account definition of the
Uniform System of Accounts.
TYPE OF PROPERTY AMOUNT
BUILDINGS $4,306
LICENSES & PC SOFTWARE 2,895
DATA PROCESSING EQUIPMENT 910
TELECOMMUNICATIONS SYSTEM 213
PERSONAL COMPUTERS 144
OTHER OFFICE EQUIPMENT 22
DUPLICATING EQUIPMENT 10
MAILING EQUIPMENT 7
MISCELLANEOUS 26
TOTAL $8,533
<PAGE>
32
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
INSTRUCTION: Provide an analysis of Account 408, "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other
than U.S. Government taxes, and (2) U.S. Government taxes.
Specify each of the various kinds of taxes and show the
amounts thereof Provide a subtotal for each class of tax.
T Y P E O F T A X AMOUNT
(1) OTHER THAN U.S. GOVERNMENT TAXES
Local Real Estate
- New Jersey $ (41)
- Pennsylvania 508
Unemployment Insurance
- New Jersey 71
- Pennsylvania 90
Sales & Use
- New Jersey 504
- Pennsylvania 3
-----
Sub Total 1,135
(2) TAXES - U.S. GOVERNMENT
Federal Unemployment Insurance 45
FICA 3,185
-----
Sub Total 3,230
-----
TOTAL $4,365
======
<PAGE>
<TABLE>
<CAPTION>
33
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
DONATIONS
ACCOUNT 426.1
INSTRUCTION: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000
may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
<S> <C> <C>
United Way of Morris County Community Charities $ 17
Morris Area Girl Scout Council Community Charities 5
Penn Laurel Council of Girl Scouts Community Charities 13
Easter Seals of Berks County Community Charities 6
Mrs. Wilson's Capital Campaign Community Services 4
Prosperity New Jersey Community Services 10
Easy Does It, Inc. Community Services 5
Whitaker Center for Science Cultural Development 30
N.J. Shakespeare Festival Cultural Development 13
Wyomissing Institute of Fine Arts Cultural Development 5
Alzheimers Disease &
Related Disorders Assoc. Health Services/Hospitals 10
Harvard University Education 50
GPU Foundation Education 46
Summit Speech School Education 5
The Aspen Institute Education 5
GPU, Inc. Education 13
Centenary College Education 20
United Negro College Fund Education 3
New Jersey Institute of Technology Education 10
Various Organizations Community Services
(Under $3,000) & Education 1
----
TOTAL $271
====
</TABLE>
<PAGE>
34
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
OTHER DEDUCTIONS
ACCOUNT 426.5
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5,
"Other Deductions", classifying such expenses according to
their nature.
D E S C R I P T I O N NAME OF PAYEE AMOUNT
- -----------------------------------------------------------------------------
Company Owned Life Insurance Premiums Massachusetts Mutual $(1,000)
Life Insurance Co.
Miscellaneous Tax Filing Fees Commonwealth of Pennsylvania 1
TOTAL $ (999)
=======
<PAGE>
35
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
INSTRUCTIONS: The space below is provided for important notes regarding
the statement of income or any account thereof. Furnish
particulars as to any significant increase in services
rendered or expenses incurred during the year. Notes
relating to financial statements shown elsewhere in this
report may be indicated here by reference.
NONE
<PAGE>
36
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
ORGANIZATION CHART
- ------------------------------------------------------------------------------
| BOARD OF DIRECTORS |
| Chairman, President & CEO |
------------------------------------------------------|
| Executive Vice President |
|---------------------------------------------|
| Senior Vice President & |
| General Counsel |
|---------------------------------------------|
| | Corporate Secretary |
| |----------------------------------------|
| | Corporate Legal Services |
| |----------------------------------------|
| | Government Affairs |
| |----------------------------------------|
| | Internal Auditing |
| ----------------------------------------|
| Senior Vice President & |
| Chief Financial Officer |
|---------------------------------------------|
| | Accounting, Taxes and Budgets & |
| | Financial Analysis |
| |----------------------------------------|
| | Treasury |
| ----------------------------------------|
| Executive Vice President-Corporate Affairs|
|---------------------------------------------|
| | Communications |
| |----------------------------------------|
| | Corporate Compensation & Benefits |
| |----------------------------------------|
| | HR Strategic Planning |
| ----------------------------------------|
| Vice President-Corporate Restructuring |
|---------------------------------------------|
| Materials and Services* |
|---------------------------------------------|
| Information Technology Services* |
|---------------------------------------------|
| Process Services* |
|---------------------------------------------|
* These organizations report to GPU Energy.
<PAGE>
37
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
METHODS OF ALLOCATION
1. Multiple Factor:
The average of the following three factors:
A. Gross Distribution Plant at Year-End
B. Energy Sales (MWH) to Ultimate Customers
C. O & M Expense, Excluding Purchased Power
2. Size Factor:
Forecasted capacity responsibility for the planning period, July -
June.
3. Conventional Steam Capacity:
Installed capacity at year-end (MW)
4. Nuclear Steam Capacity:
Installed capacity at year-end (MW)
5. Combustion Turbine Capacity:
Installed capacity at year-end (MW)
6. Three (3) Factor:
Multiple Factor billed to Jersey Central Power & Light Company,
Pennsylvania Electric Company, and Metropolitan Edison Company.
Each Division/Function is assigned one of the above factors for allocating
indirect costs to groups of associated companies. The allocation factor is based
upon each Division/Function's type of work and is reviewed annually.
<PAGE>
38
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
NONE
<PAGE>
39
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
VENTURE DISCLOSURES
LICENSING OF COMPUTER PROGRAMS TO NON-ASSOCIATE COMPANIES
Pursuant to the provisions contained in Securities and Exchange
Commission (SEC) Order dated August 29, 1990 for SEC File No. 70-7675, GPU
Service, Inc. did not enter into any transactions or recognize any revenues
during the calendar year 1998 for activities related to the licensing of
computer programs to non-associated companies.
LEASING OF RESERVE COMPUTER CAPACITY
Pursuant to the provisions contained in SEC Order dated November 27, 1991
for SEC File No. 70-7841, GPU Service, Inc. received revenues during 1998 from
Consumers Water Company, a non-associated company, for reserve computer
capacity. These revenues are shown separately on page 22 of this report.
LICENSING OF AUTOMATED MATERIALS MANAGEMENT SYSTEM (AMMS)
COMPUTER PROGRAMS TO NON-ASSOCIATE COMPANIES
Pursuant to the provisions contained in SEC Order dated December 3, 1991
for SEC File No. 70-7871, GPU Service, Inc. did not receive AMMS licensing
revenues during 1998.
SERVICES TO NON-AFFILIATED UTILITIES
Pursuant to the provisions contained in SEC Order dated November 5, 1996
for SEC File No. 70-8805, GPU Service, Inc. did not enter into any transactions
or recognize any revenues during the calendar year 1998 for activities related
to the provision of services to non-affiliated utilities.
ENTRY INTO NON-UTILITY BUSINESS
Pursuant to the provisions contained in SEC Order dated August 16, 1996
for SEC File No. 70-8817, GPU Service, Inc. did not enter into any transactions
or recognize any revenues during the calendar year 1998 for activities related
to the entry into non-utility business.
<PAGE>
ANNUAL REPORT OF GPU SERVICE, INC.
For the Year Ended December 31, 1998
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935 and the rules and regulations of the Securities
and Exchange Commission issued thereunder, the undersigned Company
has duly caused this report to be signed on its behalf by the
undersigned officer thereunto duly authorized.
GPU SERVICE, INC.
(Name of Reporting Company)
By: /s/ P. R. Chatman
-----------------------------------
(Signature of Signing Officer)
P. R. Chatman, Assistant Comptroller
---------------------------------
(Printed Name and Title of Signing Officer)
Date: April 23, 1999
-------------------
<TABLE> <S> <C>
<ARTICLE> OPUR2
<CIK> 0000042853
<NAME> GPU SERVICE, INC.
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<EXCHANGE-RATE> 1
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 45,194
<TOTAL-INVESTMENTS> 20,959
<TOTAL-CURRENT-ASSETS> 29,494
<TOTAL-DEFERRED-DEBITS> 23,239
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 118,886
<TOTAL-PROPRIETARY-CAPITAL> (3,883)
<TOTAL-LONG-TERM-DEBT> 22,000
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 70,290
<TOTAL-DEFERRED-CREDITS> 22,132
<DEFERRED-INCOME-TAX> 8,347
<TOT-LIABIL-AND-PROPRIET-CAP> 118,886
<SERVICES-ASSOCIATE-COMPANIES> 104,423
<SERVICES-NON-ASSOCIATE-COMP> 208
<MISC-INCOME-OR-LOSS> (112)
<TOTAL-INCOME> 104,519
<SALARIES-AND-WAGES> 44,134
<EMPLOYEE-PENSION-AND-BENEFIT> 15,250
<OTHER-EXPENSES> 45,135
<TOTAL-EXPENSES> 104,519
<NET-INCOME> 0
<TOTAL-EXPENSES-DIRECT-COST> 86,608
<TOTAL-EXPENSES-INDIRECT-COST> 17,911
<TOT-EXP-DIRECT-AND-INDIRECT> 104,519
<PERSONNEL-END-OF-YEAR> 230
<FN>
</FN>
</TABLE>
|
|