Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1999 and Ending December 31, 1999
--------------------- --------------------
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. (File No. 049-00055)
-------------------------------------------------------------------------------
<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>
2
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS Page
--------------------------------------------- Number
--------------------------------------------------------------------------------
Description of Schedules and Accounts Schedule or Account
Number
--------------------------------------------------------------------------------
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 10-10C
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 24-25
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 26
OUTSIDE SERVICES EMPLOYED Account 923 27-27K
EMPLOYEE PENSIONS AND BENEFITS Account 926 28
GENERAL ADVERTISING EXPENSES Account 930.1 29-29A
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
--------------------------------------------------------------------------------
<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>
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
------------------------
101 Service Company property (Schedule II) $ 80,165 $ 76,775
107 Construction work in progress (Schedule II) - -
------- -------
Total Property 80,165 76,775
108 Less accumulated provision for depreciation
and amortization of service company
property (Schedule III) 34,232 31,581
------- -------
Net Service Company Property 45,933 45,194
------- -------
INVESTMENTS
-----------
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) 42,821 20,959
------- -------
Total Investments 42,821 20,959
------- -------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash 367 10
134 Special deposits 323 103
135 Working funds 338 -
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Accounts receivable 31,693 1,819
144 Accumulated provision for uncollectible accounts 72 -
146 Accounts receivable from associate
companies (Schedule V) 138,275 27,503
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies 58,081 -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 28,919 51
171 Interest Receivable - 8
174 Miscellaneous current and accrued
assets (Schedule VIII) - -
------- -------
Total Current and Accrued Assets 258,068 29,494
------- -------
DEFERRED DEBITS
---------------
181 Unamortized debt expense 16 29
184 Clearing accounts 3,014 1,962
186 Miscellaneous deferred debits (Schedule IX) 6,180 2,758
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 112,391 18,490
------- -------
Total Deferred Debits 121,601 23,239
------- -------
TOTAL ASSETS AND OTHER DEBITS $468,423 $118,886
======= =======
--------------------------------------------------------------------------------
<PAGE>
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
-------------------
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) 1,740 (3,933)
216 Unappropriated retained earnings (Schedule XI) - -
------- -------
Total Proprietary Capital 1,790 (3,883)
------- -------
LONG-TERM DEBT
--------------
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) 22,000 22,000
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
------- -------
Total Long-term Debt 22,000 22,000
------- -------
CURRENT AND ACCRUED LIABILITIES
-------------------------------
231 Notes payable - -
232 Accounts payable 124,071 16,094
233 Notes payable to associate
companies (Schedule XIII) 48,266 -
234 Accounts payable to associate
companies (Schedule XIII) 2,881 37,006
236 Taxes accrued - 174
237 Interest accrued 97 383
238 Dividends declared - -
241 Tax collections payable - 19
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 104,327 16,614
------- -------
Total Current and Accrued Liabilities 279,642 70,290
------- -------
DEFERRED CREDITS
----------------
253 Other deferred credits 149,670 22,132
255 Accumulated deferred investment tax credits - -
------- -------
Total Deferred Credits 149,670 22,132
------- -------
282 ACCUMULATED DEFERRED INCOME TAXES 15,321 8,347
--------------------------------- ------- -------
TOTAL LIABILITIES AND PROPRIETARY $468,423 $118,886
======= =======
CAPITAL
--------------------------------------------------------------------------------
<PAGE>
6
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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
-------
301 ORGANIZATION $ 49 $ - $ - $ - $ 49
303 MISCELLANEOUS
INTANGIBLE PLANT - 666 - - 666
304 LAND & LAND RIGHT 320 - - - 320
305 STRUCTURES AND
IMPROVEMENTS 38,513 - - - 38,513
306 LEASEHOLD - - - - -
IMPROVEMENTS - - - - -
307 EQUIPMENT 2/ 31,430 3,036 - - 34,466
-
308 OFFICE FURNITURE
AND EQUIPMENT 5,340 173 1,912 - 3,601
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT - - - - -
310 AIRCRAFT AND
AIRPORT EQUIPMENT - - - - -
311 OTHER SERVICE
COMPANY PROPERTY 3/ 1,123 1,427 - - 2,550
- -----------------------------------------------
SUB-TOTAL 76,775 5,302 1,912 - 80,165
-----------------------------------------------
107 CONSTRUCTION WORK
IN PROGRESS 4/ - - - - -
-
-----------------------------------------------
TOTAL $76,775 $ 5,302 $ 1,912 $ - $80,165
===============================================
--------------------------------------------------------------------------------
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
- N/A
--------------------------------------------------------------------------------
<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) $ - $ 2,259
DATA PROCESSING EQUIPMENT - 24,752
DISPATCHING EQUIPMENT - 811
LOAD RESEARCH EQUIPMENT - 119
MISCELLANEOUS EQUIPMENT 16 355
PERSONAL COMPUTER 3,020 6,170
------ ------
TOTAL $ 3,036 $34,466
====== ======
--------------------------------------------------------------------------------
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
-
Photographic, Mailing Equipment, HVA System, Security System
--------------------------------------------------------------------------------
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
-
N/A
--------------------------------------------------------------------------------
<PAGE>
8
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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 - 39 - - 39
304 LAND & LAND RIGHTS - - - - -
305 STRUCTURES AND
IMPROVEMENTS 12,049 900 - (98) 12,851
306 LEASEHOLD
IMPROVEMENTS - - - - -
307 EQUIPMENT 14,859 3,103 - 3 17,965
308 OFFICE FURNITURE
AND FIXTURES 4,198 391 1,760 - 2,829
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT - - - - -
310 AIRCRAFT AND
AIRPORT EQUIPMENT - - - - -
311 OTHER SERVICE
COMPANY PROPERTY 475 73 - - 548
------ ----- ----- ----- ------
$31,581 $4,506 $1,760 $ (95) $34,232
====== ===== ===== ==== ======
--------------------------------------------------------------------------------
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
- N/A
--------------------------------------------------------------------------------
<PAGE>
9
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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 BEGINNING CLOSE OF
OF YEAR YEAR
--------------------------------------------------------------------------------
ACCOUNT 123-INVESTMENT IN ASSOCIATE COMPANIES
NONE
ACCOUNT 124 - OTHER INVESTMENTS
COMPANY OWNED LIFE INSURANCE -
CASH SURRENDER VALUE $12,743 $29,332
RABBI TRUST 8,107 11,203
HEALTH CARE RESERVE 109 2,286
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
NONE
------ ------
TOTAL $ 20,959 $42,821
====== ======
--------------------------------------------------------------------------------
<PAGE>
10
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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, INC. $ - $ 11,328
GPU GENERATION, INC. 14,312 -
GPU NUCLEAR, INC. 12,343 -
GPU ADVANCED RESOURCES, INC. 4 35
GPU TELCOM SERVICES, INC. 89 391
JERSEY CENTRAL POWER & LIGHT COMPANY - 49,221
METROPOLITAN EDISON COMPANY - 24,493
PENNSYLVANIA ELECTRIC COMPANY - 50,622
GPU INTERNATIONAL, INC. 653 1,691
GPU POWER, INC. 23 311
GPU CAPITAL, INC. 79 183
------ -------
TOTAL $ 27,503 $138,275
====== =======
--------------------------------------------------------------------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
--------
INTERCHANGE TRANSACTIONS
------------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 402,363
METROPOLITAN EDISON COMPANY 170,451
PENNSYLVANIA ELECTRIC COMPANY 219,574
<PAGE>
10A
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS (Cont'd): TOTAL
PAYMENTS
--------
OUTSIDE SERVICES EMPLOYED - OTHER
---------------------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 38,767
METROPOLITAN EDISON COMPANY 15,343
PENNSYLVANIA ELECTRIC COMPANY 18,400
GPU, INC. 675
OUTSIDE SERVICES EMPLOYED - LEGAL
---------------------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 3,855
METROPOLITAN EDISON COMPANY 2,000
PENNSYLVANIA ELECTRIC COMPANY 2,278
OUTSIDE SERVICES EMPLOYED - TREE TRIMMING
-----------------------------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 13,589
METROPOLITAN EDISON COMPANY 5,689
PENNSYLVANIA ELECTRIC COMPANY 9,420
OUTSIDE DIRECTOR COSTS
----------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 87
METROPOLITAN EDISON COMPANY 42
PENNSYLVANIA ELECTRIC COMPANY 21
GPU, INC. 356
MATERIALS AND SUPPLIES
----------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 24,151
METROPOLITAN EDISON COMPANY 7,335
PENNSYLVANIA ELECTRIC COMPANY 9,029
LEASE/RENTAL PAYMENTS
---------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 18,311
METROPOLITAN EDISON COMPANY 5,745
PENNSYLVANIA ELECTRIC COMPANY 7,985
COMPUTER HARDWARE, SOFTWARE & SUPPLIES
--------------------------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 5,178
METROPOLITAN EDISON COMPANY 3,776
PENNSYLVANIA ELECTRIC COMPANY 2,556
<PAGE>
10B
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS (Cont'd): TOTAL
PAYMENTS
--------
TELECOMMUNICATIONS EQUIPMENT & SERVICES
---------------------------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 4,568
METROPOLITAN EDISON COMPANY 3,046
PENNSYLVANIA ELECTRIC COMPANY 2,995
ADVERTISING
-----------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 3,258
METROPOLITAN EDISON COMPANY 1,459
PENNSYLVANIA ELECTRIC COMPANY 1,961
GPU, INC. 106
ASSOCIATE FEES AND DUES
-----------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 939
METROPOLITAN EDISON COMPANY 480
PENNSYLVANIA ELECTRIC COMPANY 579
BANK FEES
---------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 261
METROPOLITAN EDISON COMPANY 170
PENNSYLVANIA ELECTRIC COMPANY 121
LICENSES, PERMITS AND REGULATIONS
---------------------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 105
METROPOLITAN EDISON COMPANY 80
PENNSYLVANIA ELECTRIC COMPANY 430
CUSTOMER REBATES/INCENTIVES
---------------------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 7,206
METROPOLITAN EDISON COMPANY 2
PENNSYLVANIA ELECTRIC COMPANY 1
INTEREST EXPENSES
-----------------
JERSEY CENTRAL POWER & LIGHT COMPANY $ 54,553
METROPOLITAN EDISON COMPANY 24,001
PENNSYLVANIA ELECTRIC COMPANY 19,521
GPU, INC. 1
<PAGE>
10C
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS (Cont'd): TOTAL
PAYMENTS
--------
DIVIDENDS
---------
JERSEY CENTRAL POWER & LIGHT COMPANY $335,000
METROPOLITAN EDISON COMPANY 315,000
PENNSYLVANIA ELECTRIC COMPANY 160,000
GPU, INC. 65,415
---------
TOTAL PAYMENTS $1,988,234
=========
--------------------------------------------------------------------------------
<PAGE>
11
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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>
12
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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
None
----- ---- ---
TOTAL $ - $ - $ -
===== ===== ===
--------------------------------------------------------------------------------
<PAGE>
13
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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>
14
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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
Stock Plan $2,636 $ 3,371
Procurement Cards 10 590
Unclassified Charges by Associates 107 1,427
Excess Pension Plan Minimum Liability
Recognition - 629
Misc. Billing Adjustments 5 163
----- -----
TOTAL $2,758 $6,180
===== =====
--------------------------------------------------------------------------------
<PAGE>
15
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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>
16
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
<CAPTION>
---------------------------------------------------------------------------------------------------------------------------
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
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
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
---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL NONE
ACCOUNT 215 - RETAINED EARNINGS /ACCUMULATED OTHER COMPREHENSIVE INCOME/(LOSS):
Net Unrealized Gain on Rabbi Trusts $ 1,740
-------
TOTAL $ 1,740
=======
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.
<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>
17
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
<TABLE>
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.
<CAPTION>
-----------------------------------------------------------------------------------------------------------------------------
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> <C>
First National Bank of Chicago 4/1/01 Variable $22,000 $ - $ - $22,000
-----------------------------------------------------------------------------------------------------------------------------
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
NONE
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
18
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------
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
JERSEY CENTRAL POWER & LIGHT COMPANY $ - $20,333
METROPOLITAN EDISON COMPANY - 12,418
PENNSYLVANIA ELECTRIC COMPANY - 15,515
------ ------
TOTAL $ - $48,266
====== ======
-------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
JERSEY CENTRAL POWER & LIGHT COMPANY $ 8,056 $ -
METROPOLITAN EDISON COMPANY 14,976 -
PENNSYLVANIA ELECTRIC COMPANY 10,904 -
GPU NUCLEAR, INC. - 2,881
GPU, INC. 3,070 -
------ ------
TOTAL $37,006 $ 2,881
====== ======
-------------------------------------------------------------------------------
ACCOUNT 242 -MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
ACCRUALS
- EMPLOYEE HEALTHCARE AND
OTHER BENEFITS $ 1,263 $ 2,002
- INTERCHANGE POWER (80) (60)
- INCENTIVE COMPENSATION 4,074 50,685
- OFFICERS' DEFERRED COMPENSATION
AND COMPANY OWNED LIFE INSURANCE 5,700 9,235
- SEVERANCE PAY 831 6,352
- WORKMEN'S COMPENSATION 5 102
- VACATION 4,815 29,938
- SICK LEAVE - 5,838
- HURRICANE FLOYD - 250
- OTHER 6 (15)
------ -------
TOTAL $16,614 $104,327
====== =======
-------------------------------------------------------------------------------
<PAGE>
19
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------
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.
--------------------------------------------------------------------------------
On May 6, 1998, GPU, Inc. ("GPU") and the GPU Energy companies filed an
Application on Form U-1 (SEC File No. 070-09201) seeking Securities and Exchange
Commission ("SEC") approval for the GPU Energy companies to enter into a new
services agreement ("New Services Agreement") with GPU Service, Inc. ("GPUS")
(Amendment No. 4 to SEC File No. 070-09201, dated as of January 22, 1999,
essentially replaces the original May 6, 1998 filing). The New Services
Agreement, would, among other things, permit GPUS to perform expanded services
on behalf of the GPU Energy companies as set forth in the Application. Although
GPU and the GPU Energy companies are still awaiting an SEC order with respect to
this Application, the expanded service company approach has already been
implemented, effective January 1, 1999.
As a result of the expanded service company approach, substantially all of
the GPU Energy companies' personnel, including the union personnel, were
transferred to GPUS, effective January 1, 1999. For this purpose, GPUS has
created an Operations Division, which includes substantially all of the
employees of the GPU Energy companies who were transferred to GPUS. The
Operations Division was further reorganized in 1999 from a function-based
organization to one based on core business processes. The personnel involved in
corporate, treasury, legal, accounting and certain other functions continue to
perform these same corporate services in what has become the Governance Division
within GPUS. The purchasing and inventory functions for the transmission and
distribution business were also assumed by GPUS, such that equipment and
materials are acquired and inventoried by GPUS and sold to the appropriate GPU
Energy company, at cost, as and when needed.
In their Application, GPU and the GPU Energy companies sited various
business reasons that led them to implement this expanded service company
approach. The Application identifies the need to replace most of the existing
information systems due in part to the Year 2000 issue and customer choice
legislation enacted in New Jersey and Pennsylvania (GPU and the GPU Energy
companies determined that it would be in their best interest and the best
interests of their customers to purchase and install SAP enterprise software).
In order to maximize the benefits, efficiencies and effectiveness of the SAP
system, which, to a large degree, is comprised of "off-the-shelf" software, GPU
and the GPU Energy companies concluded that it was necessary to formally combine
their human, technical, material and operational resources into a single service
company entity. GPU and the GPU Energy companies believe the expanded service
company approach allows for the most effective use of the new integrated
information system and minimizes the need for costly and complex customization
of the core components of the SAP system.
-------------------------------------------------------------------------------
<PAGE>
20
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------
SCHEDULE XV
-----------
STATEMENT OF INCOME
-------------------
-------------------------------------------------------------------------------
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
-------------------------------------------------------------------------------
INCOME
------
457 Services rendered to associate companies $693,608 $104,423
458 Services rendered to nonassociate
companies 2,868 208
421 Miscellaneous income or loss (16) (112)
------- -------
Total Income 696,460 104,519
------- -------
EXPENSE
-------
920 Salaries and wages 371,358 44,134
921 Office supplies and expenses 108,909 9,341
922 Administrative expense transferred -
credit - -
923 Outside services employed 68,523 6,818
924 Property insurance 153 99
925 Injuries and damages 4,608 942
926 Employee pensions and benefits 77,834 15,250
928 Regulatory commission expense - -
930.1 General advertising expenses 2,490 92
930.2 Miscellaneous general expenses 8,675 268
931 Rents 4,687 8,533
932 Maintenance of structures and equipment 3,895 7,399
403 Depreciation and amortization expense 4,506 4,897
408 Taxes other than income taxes 28,040 4,365
409 Income taxes 9,217 1,585
410 Provision for deferred income taxes 8,291 6,901
411 Provision for deferred income taxes -
credit (16,811) (7,401)
411.5 Investment tax credit - -
426.1 Donations 4,908 271
426.5 Other deductions 2,145 (999)
427 Interest on long-term debt 1,215 1,340
430 Interest on debt to associate
companies 2,808 -
431 Other interest expense 1,009 684
------- -------
Total Expense 696,460 104,519
------- -------
Net Income or (Loss) $ - $ -
======= =======
-------------------------------------------------------------------------------
<PAGE>
<TABLE>
21
ANNUAL REPORT OF GPU SERVICE, INC.
------------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------------------
ANALYSIS OF BILLING
-------------------
ASSOCIATE COMPANIES
ACCOUNT 457
<CAPTION>
-------------------------------------------------------------------------------------------
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. $ 807 $ 7,465 $ - $ 8,272
JERSEY CENTRAL POWER
& LIGHT COMPANY 229,935 92,448 - 322,383
PENNSYLVANIA ELECTRIC
COMPANY 117,364 67,135 - 184,499
METROPOLITAN EDISON
COMPANY 94,676 57,030 - 151,706
GPU NUCLEAR, INC. 5,465 6,687 - 12,152
GPU INTERNATIONAL, INC. 2,011 1,586 - 3,597
GPU POWER, INC. 203 - - 203
GPU ELECTRIC, INC. 1,750 - - 1,750
GPU GENERATION, INC. 2,416 3,575 - 5,991
GPU ADVANCED RESOURCES, INC. 147 - - 147
GPU TELCOM SERVICES, INC. 2,908 - - 2,908
--------------------------------------------------
TOTAL $457,682 $ 235,926 $ - $693,608
======= ======= ====== =======
-----------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
22
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
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 DEFICIENCY AMOUNT
------- -------- ------------ TOTAL ---------
458-1 458-2 458-3 COST 458-4 BILLED
---------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
* Consumers Water Companies (A) $ 15 $ 3 $ - $ 18 $ 15 $ 33
Utilities Employees Credit Union (B) 93 - - 93 - 93
Sithe Engineering Study (C) 19 6 - 25 25 50
Sithe Continuing Service (D) 261 - - 261 101 362
Amergen Continuing Service (D) 1,466 - - 1,466 (733) 733
Sithe Pre-Closing Service (D) 1,059 - - 1,059 538 1,597
----- ----- --- ------ ------ ------
TOTAL $2,913 $ 9 $ - $2,922 $(54) $2,868
===== ===== === ====== ====== ======
</TABLE>
---------------------------------------------------------------------------
INSTRUCTION: Provide a brief description of the services rendered to each
nonassociated company:
(A) Billing Services
(B) Computer Services
(C) Engineering Services
(D) IT Services
---------------------------------------------------------------------------
* See Descriptions of Activities on page 39.
<PAGE>
23
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
------------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------------------------------------------------
SCHEDULE XVI
------------
ANALYSIS OF CHARGES FOR SERVICE
-------------------------------
ASSOCIATE AND NONASSOCIATE COMPANIES
------------------------------------
<CAPTION>
--------------------------------------------------------------------------------------------------------------------------
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>
920 SALARIES AND WAGES $242,792 $128,018 $370,810 $ 548 $ 548 $243,340 $128,018 $371,358
921 OFFICE SUPPLIES & EXPENSES 95,350 11,330 106,680 2,229 2,229 97,579 11,330 108,909
922 ADMINISTRATIVE EXPENSE
TRANSFERRED-CREDIT
923 OUTSIDE SERVICES EMPLOYED 30,209 38,223 68,432 91 91 30,300 38,223 68,523
924 PROPERTY INSURANCE 97 56 153 97 56 153
925 INJURIES AND DAMAGES 3,909 699 4,608 3,909 699 4,608
926 EMPLOYEE PENSIONS & BENEFITS 45,719 32,115 77,834 45,719 32,115 77,834
928 REG. COMMISSION EXPENSE
930.1 GENERAL ADVERTISING EXPENSES 1,910 580 2,490 1,910 580 2,490
930.2 MISC. GENERAL EXPENSES 7,980 695 8,675 7,980 695 8,675
931 RENTS 2,550 2,137 4,687 2,550 2,137 4,687
932 MAINTENANCE OF STRUCTURES
AND EQUIPMENT 2,672 1,223 3,895 2,672 1,223 3,895
403 DEPRECIATION & AMORTIZATION
EXPENSE 4,506 4,506 4,506 4,506
408 TAXES OTHER THAN INCOME TAXES 16,608 11,432 28,040 16,608 11,432 28,040
409 INCOME TAXES 9,217 9,217 9,217 9,217
410 PROVISION FOR DEFERRED
INCOME TAXES 8,291 8,291 8,291 8,291
411 PROVISION FOR DEFERRED
INCOME TAXES - CREDIT (16,811) (16,811) (16,811) (16,811)
411.5 INVESTMENT TAX CREDIT
426.1 DONATIONS 4,081 827 4,908 4,081 827 4,908
426.5 OTHER DEDUCTIONS 999 1,146 2,145 999 1,146 2,145
427 INTEREST ON LONG-TERM DEBT 1,215 1,215 1,215 1,215
431 OTHER INTEREST EXPENSE 2 1,007 1,009 2 1,007 1,009
----------------------------------------------------------------------------
INSTRUCTION: Total cost of service will
equal for associate and
nonassociate companies the
total amount billed under
their separate analysis of
billing schedules.
----------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL EXPENSES = 454,878 235,906 690,784 2,868 2,868 457,746 235,906 693,652
------- ------- ------- ----- ----- ----- ------- ------- -------
COMPENSATION FOR USE OF EQUITY
CAPITAL = -------- ------- ------- ----- ----- ------ -------- ------- -------
430 INTEREST ON DEBT TO ASSOC.
COMPANIES = 2,808 2,808 2,808 2,808
-------- ------- ------- ----- ----- ------ -------- ------- -------
TOTAL COST OF SERVICE = $457,686 $235,906 $693,592 $2,868 $2,868 $460,554 $235,906 $696,460
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
24
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
----------------
For the Year Ended December 31, 1999
-----------------
------------------------------------------------------------------------------------------------------------------------------------
SCHEDULE XVII
-------------
SCHEDULE OF EXPENSE DISTRIBUTION
--------------------------------
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
------------------------------------------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE FUNCTION
------------------------------
PROVIDE MANAGE PROVIDE MANAGE
TOTAL CUSTOMER FINANCIAL DELIVER SUPPORT ENERGY
DESCRIPTION OF ITEMS AMOUNT SERVICE PERFORMANCE ENERGY RESOURCES RISK
------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES $371,358 $ 58,669 $ 26,849 $ 78,930 $ 69,147 $ 7,588
921 OFFICE SUPPLIES & EXPENSES 108,909 9,612 3,373 17,659 (26,067) 78
922 ADMINISTRATIVE EXPENSE
TRANSFERRED - CREDIT
923 OUTSIDE SERVICES EMPLOYED 68,523 (1,265) 7,647 165 22,545 1,806
924 PROPERTY INSURANCE 153 42
925 INJURIES AND DAMAGES 4,608 458
926 EMPLOYEE PENSIONS & BENEFITS 77,834 12,716 6,063 35,704 14,790 1,524
928 REG. COMMISSION EXPENSE
930.1 GENERAL ADVERTISING EXPENSE 2,490 (1,169) 497 (237) 43
930.2 MISC. GENERAL EXPENSES 8,675 105 842 77 1,111 1
931 RENTS 4,687 (235) (681) 1,415
932 MAINTENANCE OF STRUCTURES
& EQUIPMENT 3,895 2 49 1,180
403 DEPRECIATION & AMORTIZATION
EXPENSE 4,506 (88) 88
408 TAXES OTHER THAN INCOME TAXES 28,040 4,195 1,304 13,004 6,808 416
409 INCOME TAXES 9,217
410 PROVISION FOR DEFERRED
INCOME TAXES 8,291
411 PROVISION FOR DEFERRED
INCOME TAXES - CREDIT (16,811)
411.5 INVESTMENT TAX CREDIT
426.1 DONATIONS 4,908 4,908
426.5 OTHER DEDUCTIONS 2,145 2 813 125
427 INTEREST ON LONG-TERM DEBT 1,215
430 INTEREST ON DEBT TO
ASSOCIATE COMPANIES 2,808 2,808
431 OTHER INTEREST EXPENSE 1,009 7 147 2 7 18
------------------------------------------------------------------------------------------------------------------------------------
INSTRUCTION: Indicate each department
or service function. (See
Instruction 01-3 General
Structure of Accounting
System: Uniform System
Account)
------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $696,460 $ 82,637 $ 55,165 $144,672 $ 91,692 $11,431
------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
25
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
----------------
For the Year Ended December 31, 1999
-----------------
----------------------------------------------------------------------------------------------------------------------
SCHEDULE XVII
-------------
SCHEDULE OF EXPENSE DISTRIBUTION
--------------------------------
BY
DEPARTMENT OR SERVICE FUNCTION
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
DEPARTMENT OR SERVICE
----------------------------------------------------------------------------------------------------------------------
SERVICE BILL TO
CORPORATE
BALANCE SHEET
ACCOUNT PRESIDENT- FINANCIAL CORPORATE CORPORATE GOVERNANCE
INCLUDING
NUMBER TELECOMMUNICATION OPERATION PERFORMANCE LEGAL AFFAIRS EXECUTIVE CAPITAL PROJECT
----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
920 $ 3,632 $ 4,247 $ 14,412 $ 7,489 $3,049 $3,126 $ 94,220
921 4,081 116 456 65 514 (72) 99,094
922
923 485 2,800 2,189 3,532 1,548 1,443 25,628
924 111
925 814 18 3,318
926 532 1,001 2,551 1,749 631 573
928
930.1 652 18 71 1 2,614
930.2 15 32 24 113 20 89 6,246
931 64 27 1,057 25 1 3,014
932 1 2 2,661
403 4,506
408 145 275 1,086 479 166 162
409 9,217
410 8,291
411 (16,811)
411.5
426.1
426.5 1 1,204
427 1,215
430
431 10 818
----------------------------------------------------------------------------------------------------------------------
TOTAL $ 8,954 $ 9,162 $ 29,954 $14,674 $5,999 $5,325 $236,795
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
26
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
----------------
For the Year Ended December 31, 1999
-----------------
----------------------------------------------------------------------------------------------------------------------
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
<CAPTION>
----------------------------------------------------------------------------------------------------------------------
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>
Provide Customer Service $ 58,669 $ - $ 58,669 $ - 1,135
Manage Financial Performance 26,849 1 26,848 - 211
Deliver Energy 78,930 - 78,930 - 2,501
Provide Support Resources 69,147 37 68,562 548 909
Manage Energy Risk 7,588 - 7,588 - 96
Telecommunication 3,632 41 3,591 - 20
President - Operations 4,247 - 4,247 - 39
Corporate Financial Performance 14,412 1,724 12,688 - 100
Corporate Legal 7,489 667 6,822 - 91
Corporate Affairs 3,049 247 2,802 - 28
Governance Executive 3,126 463 2,663 - 9
Service bill to Balance Sheet
including Capital Project 94,220 - 94,220 - -
-------- ------ -------- ---- -----
TOTAL $371,358 $3,180 $367,630 $548 5,139
======== ====== ======== ==== =====
----------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
27
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
----------------
-------------------------------------------------------------------------------------------
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
------------------------------------------------------------------------------------------
<CAPTION>
Legal
-----
<S> <C> <C> <C>
Fried, Frank, Harris, Legal services related to MYR NA $1,022
Shriver and Jacobson acquisition, stockholder matters,
and compensation and benefit issues
Berlack, Israels & Liberman Legal services related to Sithe, NA 479
Seneca, Homer City, Deep Creek, and
TMI buyer/seller agreements, Oyster
Creek incremental costs, stockholder
matters, annual report, annual meeting,
corporate restructuring, SEC compliance,
compensation and benefits, environmental
insurance recovery, preferred and senior
notes security programs, and other
miscellaneous corporate legal services
Saul, Ewing, Remick and Saul Legal services related to NA 202
environmental insurance recovery,
landfill and waste management issues,
superfund matters, and Dover gas
litigation
Barley, Snyder, Senft & Cohen Legal services related to real estate NA 127
tax administration
Welsh & Katz, LTD. Legal services related to divestiture NA 125
activity, and trademark and corporate
identity activities
</TABLE>
<PAGE>
27A
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
------------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------
<CAPTION>
RELATIONSHIP
-------------
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
-------------------------------------------------------------------------------------------
Legal (Cont'd)
--------------
<S> <C> <C> <C>
Carter, Ledyard & Milburn Legal services related to taxes, NA 125
compensation and benefit issues,
Sithe, Homer City, and TMI buyer/seller
agreements, Oyster Creek incremental
costs, preferred, senior, and medium
term security programs, annual meeting,
and developing business opportunities
Ballard, Spahr, Andrews Legal services related to Sithe, NA 101
& Ingersoll Homer City, Deep Creek, and TMI
buyer/seller agreements, Sithe and
Seneca real Estate activities,
Oyster Creek incremental costs,
divestiture activities, senior
notes securities program, SEC
compliance, compensation and
benefit matters, corporate
restructuring, and other
miscellaneous corporate matters
42 Others (Under $100,000) 445
-----
Sub-total $2,626
-----
</TABLE>
<PAGE>
27B
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
----------------
For the Year Ended December 31, 1999
----------------
-------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------
<CAPTION>
RELATIONSHIP
-------------
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
-------------------------------------------------------------------------------------------
Other Professional Services
---------------------------
<S> <C> <C> <C>
Deloitte & Touche LLP Project Enterprise configuration, NA $13,149
testing, and monitoring, manual data
conversion, training, change
leadership, communications, and
employee development
TUI Consulting Project Enterprise customer care NA 8,118
configuration, testing, and monitoring
Goldman Sachs & Company Financial advisory services rendered NA 7,182
pursuant to corporate restructuring
in regards to the sale of Homer City
generating station
SAP America, Inc. Project Enterprise system hardware, NA 3,388
testing, and monitoring, education and
training, change leadership, and
communications
Utility Management Services Charter team consulting associated NA 2,694
Group with leading change Phase II
Andersen Consulting LLP Information technology and client NA 2,547
services, project enterprise
development, transfer TMI applications
to Amergen, transfer Genco applications
to Sithe, Year 2000 strategy and
compliance, incremental customer choice,
and strategic initiatives
</TABLE>
<PAGE>
27C
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
------------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------
<CAPTION>
RELATIONSHIP
-------------
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
-------------------------------------------------------------------------------------------
Other Professional Services (Cont'd)
------------------------------------
<S> <C> <C> <C>
Manpower International, Inc. Temporary personnel services for NA 2,087
Year 2000 compliance, IT client
services, application support for
internal services, client services,
bill printing services, project
enterprise extended team, mail services,
reprographic services, youth safety
programs, environmental auditing, and
divestiture activities
Ajilon Information technology services for NA 1,742
Amergen and Sithe divestitures
Datahorse International, Inc. Information technology services NA 1,711
provided for project enterprise
customer care system, testing, and
monitoring
Computer People, Inc. Information technology services NA 1,148
for Year 2000 strategy and
compliance, client services,
compensation and benefits,
transferring TMI applications
to Amergen, transferring
Homer City applications to Mission
Energy, and payroll
Chris Talarico & Assoc., Inc. Personnel placement services for NA 956
customer relations, WARM solicitation,
distribution management center, project
enterprise customer care, Year 2000
compliance, and various facilities,
infrastructure, and administrative
assistance services
</TABLE>
<PAGE>
27D
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------------------
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.
<CAPTION>
-------------------------------------------------------------------------------------------
RELATIONSHIP
-------------
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
-------------------------------------------------------------------------------------------
Other Professional Services (Cont'd)
-----------------------------------
<S> <C> <C> <C>
Arthur D. Little, Inc. Consulting services for strategic NA 954
planning and acquisitions
Teknecon, Inc. Energy risk management system NA 941
development advisory services
PriceWaterhouseCoopers LLP Actuarial and consulting services NA 913
regarding the GPU retirement
and benefit plans, training
seminars, accounting and tax
advisory services in relation
to Homer City divestiture, and
financial statement audit services
McKinsey & Company Inc. Consulting services in connection NA 858
with unregulated business growth
strategy
Navigant Consulting Inc. Consulting services in connection NA 754
with generation divestiture,
corporate restructuring, strategic
initiatives, Oyster Creek
incremental costs, and establishing
appropriate rates
Burkey Construction Company Facilities construction, renovation, NA 647
and maintenance in connection with
mechanical equipment, parking lots
and road repairs, HVAC equipment and
piping, electrical control system
modifications, concrete floor cutting,
ceiling systems, fire protection system
and sprinkler modifications, excavating,
site construction, and landscaping
</TABLE>
<PAGE>
27E
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------
<CAPTION>
RELATIONSHIP
-------------
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
-------------------------------------------------------------------------------------------
Other Professional Services (Cont'd)
------------------------------------
<S> <C> <C> <C>
Zai*Net Energy software system license NA 564
fees and project consulting
services
Diversified Mechanical, Inc. Services provided in connection NA 451
with GPU's Year 2000 compliance
implementation, including connecting
AHU-8 and fan F-4, UPS system, ATC's,
and HVAC controls to emergency generators,
installing freeze protection valves,
and connecting aircraft warning lights
and exterior lights to emergency circuit
Environmental Protection Provide transportation, storage, and NA 433
Services repair services in connection with
PCB disposal, transformer repairs,
breaker replacements, and substation
malfunctions and retirements
Gartner Group, Inc. Consulting services in connection NA 393
with Year 2000 strategy, desktop
systems services, and application
technology services
Keane, Inc. Consulting services in connection NA 372
with Year 2000 compliance
First National Bank of AON consulting services in connection NA 339
Chicago with GPU health care trust services
and employee savings retirement
planning services
</TABLE>
<PAGE>
27F
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------
<CAPTION>
RELATIONSHIP
-------------
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
-------------------------------------------------------------------------------------------
Other Professional Services (Cont'd)
------------------------------------
<S> <C> <C> <C>
Equifax Credit Info Stockholder relation matters, and NA 327
Services, Inc. credit information services in
connection with positive ID and
information exchange regarding
revenue assurance
Interim Career Consulting Human Resource career development NA 311
services, succession planning, and
leadership development
Cyberstar L.P. Satellite air time for interactive NA 301
distance learning, network
management and maintenance of one
touch equipment, media transmission
services, and Y2K testing of one
touch systems
Satellite Network Systems One touch network management and NA 276
maintenance, satellite air time,
Year 2000 strategy and compliance, and
network broadcasting transmission for
interactive distance learning and
Beyond the Corona
GTE Government Systems Y2K telecommunication consulting NA 231
services
Hewlett-Packard Company Provide hardware, training, support, NA 223
and consulting services in support of
GPU's Customer First Enterprise system
implementation
Nantmeal Consulting Project enterprise consulting NA 221
Services, Inc. services, and system testing
and monitoring
</TABLE>
<PAGE>
27G
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------
<CAPTION>
RELATIONSHIP
-------------
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
-------------------------------------------------------------------------------------------
Other Professional Services (Cont'd)
-----------------------------------
<S> <C> <C> <C>
Western Union Financial Remittance processing center NA 215
Services Inc. integrated payment system, billing
services, and payment for agency
processing fees
John R. Santee Telecommunication service in NA 205
connection with data premise wiring,
DMC voice equipment wiring, IT
services for SAS PC support, PC/LAN
technical services, and voice
communications
Twenty-First Century Live agent system programming and NA 203
Communications set-up services, high volume
call answering system subscription
fee, programming costs to support
system changes
Clean Image, Incorporated Facilities janitorial services NA 199
including housekeeping and special
cleaning projects
Visual Services, Inc. Employee development - implementation NA 183
of interactive distance learning
system, development of IDL broadcast
courses, and drug and alcohol training
Sagent Technology Inc. On-site consulting and training NA 183
services for data movement and
data access server software, weblink
server software, administration tool
server software, automation tool
server software, design and
information studio software "seats",
and software annual maintenance
</TABLE>
<PAGE>
27H
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
------------------
-------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------
<CAPTION>
RELATIONSHIP
-------------
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
-------------------------------------------------------------------------------------------
Other Professional Services (Cont'd)
------------------------------------
<S> <C> <C> <C>
Ted Smith Floor Provide materials and labor NA 181
Products, Inc. to install carpet tiles and
tread risers at company facilities,
and to do miscellaneous modifications
to cubicles and remove existing
carpeting from panels
The Portsmouth PA customer assistance program (CAP) NA 172
Group, Inc. chronicles 4.0 software package
customization and related services
for non-profit community agencies
Rutgers-The State Research for advanced weather and NA 170
University climate studies
People Sciences Inc. Consulting services for the NA 164
implementation of SkillQuest
software, including perpetual
use of internet and intranet
versions, for employee development
Professional Training Provide instructor lead training NA 148
Services to GPU for education, employee
development, and to attract and
retain personnel
Ned Tannebaum and Executive search assignment for NA 144
Partners president and COO of Operations
Division
The Hunter Group, Inc. Consulting services related to NA 143
long term TMI transition to Amergen
and implementation planning
</TABLE>
<PAGE>
27I
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
------------------
For the Year Ended December 31, 1999
------------------
-------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------
<CAPTION>
RELATIONSHIP
-------------
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
-------------------------------------------------------------------------------------------
Other Professional Services (Cont'd)
------------------------------------
<S> <C> <C> <C>
The Working Data Group Outbound survey processing, NA 137
outbound mail, return mail,
return survey processing, and
data entry services performed
in relation to a comprehensive
customer satisfaction survey
Commonwealth Full time technical and engineering NA 132
Communications, Inc. support to the voice engineering
group for general telecommunication
services, PBX maintenance, data
premise wiring, trailer
equipment transfers, and
minor voice communications services
Banctec Systems, Inc. Service and network support services NA 130
provided for the remittance
processing centers PC data management
system
Konopelski Katering Provide food management services and NA 128
capital equipment to the cafeteria,
including inside sales and catering
services
Mack Associates Provide temporary employment services NA 128
Employment Services for mail services, reprographics,
infrastructure, engineering, security,
divestiture activities, and regulatory
programs
Capital Collection Collection agency services provided NA 123
Services to revenue assurance
</TABLE>
<PAGE>
27J
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------
<CAPTION>
RELATIONSHIP
-------------
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
-------------------------------------------------------------------------------------------
Other Professional Services (Cont'd)
-----------------------------------
<S> <C> <C> <C>
Four Dimensional Employee development training NA 122
Solutions Inc. in connection with GPU meter
reader multimedia CBT
Beedle Productions Media electronic production NA 119
services in connection with
Beyond the Corona, the GPU
management meeting, Year 2000
compliance, and customer care
culture crew activities
CB Richard Ellis, Inc. Real estate strategic planning NA 116
consultation services for GPU
facilities
Towers Perrin Human resources consulting NA 111
services in connection with
severance programs and change-
in-control arrangements,
supplemental executive retirement
plan and executive compensation,
and communication consulting
regarding the optimum resources
for Communications
Sheraton Valley Provide use of hotel facilities NA 111
Forge Hotel for the GPU Management meeting
Technical Resources Provide information technology NA 110
Group, Inc. temporary staffing in the areas
of Customer Care, Human Resources,
and Finance
Bjorge & Associates, Inc. Provide employee development training NA 106
on ABS hydraulic systems
</TABLE>
<PAGE>
27K
<TABLE>
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------------------
<CAPTION>
RELATIONSHIP
-------------
"A"= ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"= NON AMOUNT
ASSOCIATE
-------------------------------------------------------------------------------------------
Other Professional Services (Cont'd)
<S> <C> <C> <C>
Advanced Testing SAP Project Enterprise system NA 105
Solutions, LLP testing and monitoring
State Street Bank Retirement investment services NA 105
and Trust Company to administer and manage the GPU
company savings plan master trust
Larry Bogush, Inc. Media electronic production services NA 104
for the GPU leadership conference
and the GPU management meeting
Utility Services Corp. Restructuring and alternative NA 103
supplier interface consulting
services
R. Uhler, Inc. Provide temporary staffing for NA 103
information technology to customer
care services and IT services
Penn Credit Corporation Revenue assurance collection NA 100
agency services
1,491 Others (Under $100,000) 7,163
-----
Sub-total $65,897
------
Grand Total $68,523
======
-------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
28
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
----------------
-------------------------------------------------------------------------------
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
-------------------------------------------------------------------------------
EMPLOYEE SAVINGS PLAN $ 8,452
GROUP LIFE INSURANCE 385
HOSPITAL, SURGICAL, MEDICAL & DENTAL INSURANCE 30,945
LONG TERM DISABILITY (3,214)
OPEB HEALTH INSURANCE 26,489
OPEB LIFE INSURANCE 8,150
PENSION PLANS 2,276
RELOCATION 1,757
SICK LEAVE (319)
VACATION 1,989
OTHER BENEFITS 924
------
TOTAL $77,834
======
--------------------------------------------------------------------------------
<PAGE>
29
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
--------------------------------------------------------------------------------
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
----------------------------------------------------------------------------
Newspapers, periodicals, York Newspaper Company $ 125
billboards, radio, etc. New Jersey Network Foundation 100
Forbes 66
GTE Directories Service Corp 30
Reading Phillies Baseball Club 28
NY Aircam 14
Berks County Chamber of Commerce 10
The Wall Street Transcript 10
Donnelley Directory 10
Sprint Publishing & Advertising Inc 8
USAFORUM 8
Yellow Book 7
Gannett NJ Newspapers 7
Sprint Yellow Pages 6
Monmouth County Guide 5
Grade A Productions 5
Bell Atlantic-PA 4
International Lineman's Rodeo 4
The Star Ledger 4
United Way of Boyertown Area 3
Other (88 payees under $3,000) 62
Fees and expenses of Gilbert Whitney & Johns Inc. 1,749
advertising agencies and Mary Pomerantz Advertising 122
commercial artists Beedle Productions 10
Steve Pender 10
Joseph B. Engel 8
<PAGE>
29A
ANNUAL REPORT OF GPU SERVICE, INC.
------------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------
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
-------------------------------------------------------------------------------
Fees and expenses of Bachleda Advertising $ 7
advertising agencies and Sky Ship Productions, Inc. 5
commercial artists (Cont'd) Erie Seawolves 4
Other (22 payees under $3,000) 25
Printing of booklets, US Express Printing Inc. 4
bulletins, etc. Kriegel Inc. 3
Other (3 payees under $3,000) 3
Supplies and expenses in The Theme Factory of Philadelphia 5
preparing advertising Hershey Entertainment & Resort Co 4
materials Other (48 payees under $3,000) 15
-----
TOTAL $2,490
=====
-------------------------------------------------------------------------------
<PAGE>
30
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------
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 $1,980
Legal Settlement 5,439
Licenses, Permits & Registration 1,251
Directors' Fees and Expenses 5
-----
TOTAL $8,675
=====
-------------------------------------------------------------------------------
<PAGE>
31
ANNUAL REPORT OF GPU SERVICE, INC.
----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------
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 $3,323
DUPLICATING EQUIPMENT 796
AUTOMOBILES 209
STORAGE 145
MAILING EQUIPMENT 50
LICENSES & PC SOFTWARE 48
TELECOMMUNICATIONS SYSTEM 10
MISCELLANEOUS 106
------
TOTAL $4,687
=====
-------------------------------------------------------------------------------
<PAGE>
32
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------
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
- Pennsylvania $ 540
Unemployment Insurance
- New Jersey (260)
- Pennsylvania 495
- Washington, D.C. 1
Sales & Use
- New Jersey 235
- Pennsylvania 120
-----
Sub Total 1,131
-----
(2) TAXES - U.S. GOVERNMENT
-----------------------
Federal Unemployment Insurance 318
FICA 26,591
------
Sub Total 26,909
------
TOTAL $28,040
======
-------------------------------------------------------------------------------
<PAGE>
33
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
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
-------------------------------------------------------------------------------
United Way of Morris County Community Charities $ 39
United Way of Lebanon County Community Charities 13
United Way of Berks County Community Charities 95
United Way of Monmouth County Community Charities 10
United Way of Ocean County Community Charities 8
United Way of York County Community Charities 34
United Way of Centre County Community Charities 3
United Way of Clearfield Area Community Charities 3
United Way of Warren County Community Charities 3
United Way of Venango County Community Charities 4
United Way of Erie County Community Charities 25
United Way of Indiana County Community Charities 3
United Way of Monroe County Community Charities 4
United Way of Boyertown Area Community Charities 3
United Way of Central Bradford Community Charities 4
United Way of Blair County Community Charities 10
United Way of Laurel Highlands Community Charities 11
United Way of Greater Lehigh Valley Community Charities 27
Morris County Chamber of Commerce Community Services 3
Berks Talkline Community Services 3
GPU Foundation* Community Services 4,337
United Arts Fund Drive Cultural Development 3
Arts Council of the Morris Area Cultural Development 4
First Night Morris Cultural Development 5
Summit Speech School Education 6
Centenary College Education 26
Pennsylvania State University Education 4
New York University Education 5
Concordia College Education 5
Jersey Shore Medical Ctr. Found. Health Services/Hospitals 3
Various organizations Community Services 20
(Office property)
Various Organizations Community Services
(Under $3,000) & Education 185
-----
TOTAL $4,908
=====
* The GPU Foundation's mission is to make contributions to qualified non profit
organizations to improve the quality of life for people who live in GPU's
service territory.
--------------------------------------------------------------------------------
<PAGE>
34
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
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 $ (945)
Life Insurance Co.
Lobbying Expenses Primarily Employee Wages 3,088
and Expenses
Miscellaneous Various organizations 2
-----
TOTAL $2,145
=====
-------------------------------------------------------------------------------
<PAGE>
35
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------
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.
-------------------------------------------------------------------------------
On May 6, 1998, GPU, Inc. ("GPU") and the GPU Energy companies filed an
Application on Form U-1 (SEC File No. 070-09201) seeking Securities and Exchange
Commission ("SEC") approval for the GPU Energy companies to enter into a new
services agreement ("New Services Agreement") with GPU Service, Inc. ("GPUS")
(Amendment No. 4 to SEC File No. 070-09201, dated as of January 22, 1999,
essentially replaces the original May 6, 1998 filing). The New Services
Agreement, would, among other things, permit GPUS to perform expanded services
on behalf of the GPU Energy companies as set forth in the Application. Although
GPU and the GPU Energy companies are still awaiting an SEC order with respect to
this Application, the expanded service company approach has already been
implemented, effective January 1, 1999.
As a result of the expanded service company approach, substantially all of
the GPU Energy companies' personnel, including the union personnel, were
transferred to GPUS, effective January 1, 1999. For this purpose, GPUS has
created an Operations Division, which includes substantially all of the
employees of the GPU Energy companies who were transferred to GPUS. The
Operations Division was further reorganized in 1999 from a function-based
organization to one based on core business processes. The personnel involved in
corporate, treasury, legal, accounting and certain other functions continue to
perform these same corporate services in what has become the Governance Division
within GPUS. The purchasing and inventory functions for the transmission and
distribution business were also assumed by GPUS, such that equipment and
materials are acquired and inventoried by GPUS and sold to the appropriate GPU
Energy company, at cost, as and when needed.
In their Application, GPU and the GPU Energy companies sited various
business reasons that led them to implement this expanded service company
approach. The Application identifies the need to replace most of the existing
information systems due in part to the Year 2000 issue and customer choice
legislation enacted in New Jersey and Pennsylvania (GPU and the GPU Energy
companies determined that it would be in their best interest and the best
interests of their customers to purchase and install SAP enterprise software).
In order to maximize the benefits, efficiencies and effectiveness of the SAP
system, which, to a large degree, is comprised of "off-the-shelf" software, GPU
and the GPU Energy companies concluded that it was necessary to formally combine
their human, technical, material and operational resources into a single service
company entity. GPU and the GPU Energy companies believe the expanded service
company approach allows for the most effective use of the new integrated
information system and minimizes the need for costly and complex customization
of the core components of the SAP system.
-------------------------------------------------------------------------------
<PAGE>
36
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
-------------------------------------------------------------------------------
ORGANIZATION CHART
------------------
-------------------------------------------------------------------------------
| BOARD OF DIRECTORS |
|------------------------------------------------------|
| Chairman, President & CEO |
------------------------------------------------------|
| Governance |
|---------------------------------------------------|
| | Executive Vice President & |
| | General Counsel |
| |---------------------------------------------|
| | | Corporate Secretary |
| | |----------------------------------------|
| | | Corporate Legal Services |
| | |----------------------------------------|
| | | Government Affairs |
| | |----------------------------------------|
| | | Regulatory Policies |
| | |----------------------------------------|
| | | Internal Auditing |
| | ----------------------------------------|
| | Executive Vice President & |
| | Chief Financial Officer |
| |---------------------------------------------|
| | | Accounting, Taxes and Budgets & |
| | | Financial Analysis |
| | |----------------------------------------|
| | | Treasury |
| | ----------------------------------------|
| | | Strategic Initiatives |
| | ----------------------------------------|
| | Executive Vice President-Corporate Affairs|
| |---------------------------------------------|
| | | Communications |
| | |----------------------------------------|
| | | Corporate Compensation & Benefits |
| | |----------------------------------------|
| | | HR Strategic Planning |
| | ----------------------------------------|
| | Executive Vice President - |
| | International Operations |
| ---------------------------------------------|
| President-Operations |
---------------------------------------------------|
| Provide Customer Service |
|---------------------------------------------|
| Manage Financial Performance |
|---------------------------------------------|
| Deliver Energy |
|---------------------------------------------|
| Provide Support Resources |
|---------------------------------------------|
| Manage Energy Risk |
|---------------------------------------------|
| Telecommunications |
---------------------------------------------
-------------------------------------------------------------------------------
<PAGE>
37
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
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. Four (4) Factor:
---------------
Multiple factor billed to Jersey Central Power & Light Company,
Pennsylvania Electric Company, Metropolitan Edison Company, and GPU
Nuclear, Inc.
3. Three (3) Factor:
----------------
Multiple factor billed to Jersey Central Power & Light Company,
Pennsylvania Electric Company, and Metropolitan Edison Company.
4. Direct Payroll Cost Ratio Factor:
--------------------------------
This factor is based on the amount of payroll and payroll overheads
directly charged to individual GPU System Companies as a percent of the
total payroll and payroll overheads charged to all GPU System Companies
including non-utility subsidiaries.
5. Six (6) Factor:
--------------
Direct payroll cost ratio factor billed to Jersey Central Power & Light
Company, Pennsylvania Electric Company, Metropolitan Edison Company, GPU
Nuclear, Inc., GPU Generation Inc., and GPU International Inc.
Each cost center is assigned one of the above factors for allocating indirect
costs to groups of associated companies. The allocation factor is based upon
each cost center's type of work and is reviewed annually.
-------------------------------------------------------------------------------
<PAGE>
38
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
-----------------
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
----------------------------------------------------------
-------------------------------------------------------------------------------
NONE
<PAGE>
39
ANNUAL REPORT OF GPU SERVICE, INC.
-----------------
For the Year Ended December 31, 1999
----------------
-------------------------------------------------------------------------------
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 1999 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 1999 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 1999.
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 1999 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 1999 for activities related to
the entry into non-utility business.
<PAGE>
ANNUAL REPORT OF GPU SERVICE, INC.
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For the Year Ended December 31, 1999
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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.
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(Name of Reporting Company)
By: /s/ P. R. Chatman
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(Signature of Signing Officer)
P. R. Chatman, Assistant Comptroller
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(Printed Name and Title of Signing Officer)
Date: June 30, 2000
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