Post-Effective Amendment No. 7
to
SEC File No. 70-6903
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-1
APPLICATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
JERSEY CENTRAL POWER & LIGHT COMPANY ("JCP&L")
300 Madison Avenue, Morristown, New Jersey 07962-1911
(Name of company filing this statement
and address of
principal executive office)
Don W. Myers, Vice President Douglas E. Davidson, Esq.
and Treasurer Berlack, Israels & Liberman
GPU Service Corporation 120 West 45th Street
100 Interpace Parkway New York, New York 10036
Parsippany, NJ 07054
Richard S. Cohen, Esq.
Secretary & Corporate Counsel
Jersey Central Power & Light Company
300 Madison Avenue
Morristown, NJ 07962-1911
(Names and addresses of agents for service)<PAGE>
JCP&L hereby post-effectively amends its Application on Form
U-1 as heretofore amended, docketed in SEC File No. 70-6903, as
follows:
1. By Orders dated November 16, 1983 (HCAR No. 23121),
November 19, 1984 (HCAR No. 23486), July 30, 1985 (HCAR No.
23773), June 27, 1986 (HCAR No. 24138) and January 17, 1990 (HCAR
No. 25007), the Commission, among other things, authorized JCP&L
to acquire from time to time until December 31, 1994, up to $15
million of obligations of its electric customers, and to incur up
to $500,000 of administrative and other related expenses, arising
from such customers' participation in the following energy
conservation programs:
(1) Home Energy Loan Program;
(2) Solar Water Heating Conversion Program;
and
(3) Electric Heat Conversion Program.
2. The acquisition of such obligations by JCP&L was
designed to facilitate the financing of energy-saving
improvements and thereby promote energy conservation. Such
energy conservation programs had been approved by an Order of the
New Jersey Board of Public Utilities, dated August 3, 1983, which
Order was entered pursuant to a previous Order, dated December 1,
1982, mandating all New Jersey utilities, including JCP&L, to
develop and institute programs for financing their customers'
purchase and installation of energy-saving products or
conservation measures. Such customer obligations consist of
notes evidencing disbursements made by JCP&L to contractors on
behalf of these customers in connection with the foregoing
programs.
1<PAGE>
3. In its Application, JCP&L had stated that if it were
necessary to continue the loan program beyond the date authorized
by the Commission, it would seek a further Order of the
Commission by post-effective amendment in this docket.
4. Consequently, by this post-effective amendment, JCP&L
requests authorization to extend the time during which it may
acquire such customer obligations (in the aforesaid amount) and
incur administrative and other related expenses until December
31, 1999, and to increase to $750,000 from $500,000 the amount of
administrative and other related expenses it may incur. In all
other respects, the transactions as heretofore authorized by the
Commission would remain unchanged. At June 30, 1994, JCP&L had
acquired, from the date of the inception of the energy
conservation programs, obligations of its customers in the
aggregate amount of $7,196,530, of which $1,001,242 was
outstanding on June 30, 1994, and incurred administrative and
other related expenses in the aggregate amount of $340,838.
5. The additional fees, commissions and expenses expected
to be incurred by JCP&L in connection with the transactions which
are the subject of this post-effective amendment are as follows:
SEC Filing Fee $ 2 000
Legal Fees 1,500
Miscellaneous 500
Total $ 4,000
6. No state or federal commission, other than your
commission, has jurisdiction with respect to the transactions
which are the subject of this post-effective amendment.
7. Sections 9(a) and 10 of the Act are applicable to the
2<PAGE>
proposed transaction.
8. The transactions herein proposed are for the purposes
of financing JCP&L's business as a public utility and approval
thereof by the Commission will not constitute a major federal
action significantly affecting the quality of the human
environment. No federal agency has prepared or is preparing an
environmental impact statement with respect to the proposed
transactions.
9. It is requested that the Commission issue an Order
authorizing the transactions proposed herein at the earliest
practicable date and, in any event, no later than November 30,
1994.
10. By filing the following financial statements and
exhibits in Item 6 thereof:
(a) Financial Statements:
1 - JCP&L Balance Sheets, actual and pro
forma, as at June 30, 1994, Statements
of Income and Retained Earnings, actual
and pro forma, for the twelve months
ended June 30, 1994; pro forma journal
entries.
2 - GPU Consolidated financial statements
have been omitted since they are not
materially affected by the proposed
transactions.
3 - None.
4 - Statement of material changes since the
date of the balance sheets which are not
reflected in the Notes to the Financial
Statements - None.
(b) Exhibits:
F-1(b) - Opinion of Richard S. Cohen, Esq. -
to be filed by amendment
H - Form of Public Notice.
3<PAGE>
SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE PUBLIC UTILITY HOLDING
COMPANY ACT OF 1935, THE UNDERSIGNED COMPANY HAS DULY CAUSED THIS
STATEMENT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO
DULY AUTHORIZED.
JERSEY CENTRAL POWER & LIGHT COMPANY
By:
Don W. Myers, Vice President
and Treasurer
Date: August 30, 1994<PAGE>
EXHIBIT AND FINANCIAL STATEMENTS TO BE FILED BY EDGAR
Exhibit:
H - Form of Public Notice.
Financial Statements:
1 - JCP&L Balance Sheets, actual and pro
forma, as at June 30, 1994, Statements
of Income and Retained Earnings, actual
and pro forma, for the twelve months
ended June 30, 1994; pro forma journal
entries.<PAGE>
Exhibit H
SECURITIES AND EXCHANGE COMMISSION
(RELEASE NO. 35- , 70-6903)
JERSEY CENTRAL POWER & LIGHT COMPANY
PROPOSED ACQUISITION OF CUSTOMERS' NOTES RELATED TO FINANCING OF
CONSERVATION MEASURES
Jersey Central Power & Light Company ("JCP&L"), 300 Madison
Avenue, Morristown, New Jersey, 07962-1911, an electric utility
subsidiary of General Public Utilities Corporation, a registered
holding company, has filed with this Commission a further post-
effective amendment to its Application in this proceeding
pursuant to Sections 9(a) and 10 of the Public Utility Holding
Company Act of 1935 ("Act").
By Orders dated November 16, 1983 (HCAR No. 23121), November
19, 1984 (HCAR No. 23486), July 30, 1985 (HCAR No. 23773), June
27, 1986 (HCAR No. 24138) and January 17, 1990 (HCAR No. 25007),
the Commission, among other things, authorized JCP&L to acquire
from time to time until December 31, 1994, up to $15 million of
obligations of its electric customers, and to incur up to
$500,000 of administrative and other related expenses, arising
from such customers' participation in JCP&L's Home Energy Loan
Program, Solar Water Heating Conversion Program, and Electric
Heat Conversion Program. Such obligations consist of notes
evidencing disbursements made by JCP&L to contractors on behalf
of these customers in connection with the foregoing programs.
JCP&L now requests authorization to extend the time during
which it may acquire such customer obligations (in the aforesaid
amount) and incur administrative and other related expenses until
December 31, 1999, and to increase to $750,000 from $500,00 the<PAGE>
amount of administrative and other related expenses it may incur.
The Application, as amended, is available for public
inspection through the Commission's Office of Public Reference.
Interested persons wishing to comment or request a hearing should
submit their views in writing by November 29, 1994, to Secretary,
Securities and Exchange Commission, Washington, D.C. 20549, and
serve a copy on the applicant at the address specified above.
Proof of service (by affidavit, or in the case of an attorney at
law, by certificate) should be filed with the request. Any
request for a hearing shall identify specifically the issues of
fact or law that are disputed. A person who so requests will be
notified of any hearing, if order, and will receive a copy of any
notice or order issued in this matter. After said date, the
Application, as amended, may be granted.
For the Commission, by the Division of Investment
Management, pursuant to delegated authority.
Jonathan G. Katz
Secretary<PAGE>
<TABLE>
Financial Statements
Item 10(a) 1
Page 1 of 5
JERSEY CENTRAL POWER & LIGHT COMPANY
BALANCE SHEETS
ACTUAL AND PRO FORMA
AT JUNE 30, 1994
(IN THOUSANDS)
<CAPTION>
Adjustments Pro
Actual (See pages 4+5) Forma
<S> <C> <C> <C>
ASSETS
Uility Plant:
In service, at original cost $4 006 196 $4 006 196
Less, accumulated depreciation 1 450 714 1 450 714
Net utility plant in service 2 555 482 2 555 482
Construction work in progress 117 838 117 838
Other, net 128 982 128 982
Net utility plant 2 802 302 2 802 302
Current Assets:
Cash and temporary cash investments 2 981 $112 800 115 781
Special deposits 7 384 7 384
Accounts receivable:
Customers, net 134 860 134 860
Other 12 192 7 803 19 995
Unbilled revenues 68 298 68 298
Materials and supplies, at
average cost or less:
Construction and maintenance 104 115 104 115
Fuel 19 332 19 332
Deferred income taxes 6 606 6 606
Prepayments 196 614 196 614
Total current assets 552 382 120 603 672 985
Deferred Debits and Other Assets:
Three Mile Island Unit 2
deferred costs 141 153 141 153
Unamortized property losses 106 697 106 697
Deferred income taxes 129 314 129 314
Income taxes recoverable through
future rates 123 431 123 431
Decommissioning funds 158 248 158 248
Special deposits 83 150 83 150
Other 338 025 338 025
Total deferred debits and
other assets 1 080 018 1 080 018
Total Assets $4 434 702 $120 603 $4 555 305
The accompanying notes are an integral part of the financial statements.<PAGE>
Financial Statements
Item 10(a) 1
Page 2 of 5
JERSEY CENTRAL POWER & LIGHT COMPANY
BALANCE SHEETS
ACTUAL AND PRO FORMA
AT JUNE 30, 1994
(IN THOUSANDS)
<CAPTION>
Adjustments Pro
Actual (See pages 4+5) Forma
<S> <C> <C> <C>
LIABILITIES AND CAPITAL
Capitalization:
Common stock $ 153 713 $ 153 713
Capital surplus 435 715 435 715
Retained earnings 705 068 $ (4 946) 700 122
Total common stockholder's equity 1 294 496 (4 946) 1 289 550
Cumulative preferred stock:
With mandatory redemption 150 000 150 000
Without mandatory redemption 37 741 37 741
Long-term debt 1 215 779 1 215 779
Total capitalization 2 698 016 (4 946) 2 693 070
Current Liabilities:
Debt due within one year 60 008 60 008
Notes payable 155 387 120 000 275 387
Obligations under capital leases 102 276 102 276
Accounts payable:
Affiliates 37 384 37 384
Other 109 702 8 212 117 914
Taxes accrued 79 342 (2 663) 76 679
Deferred energy credits 12 733 12 733
Interest accrued 35 944 35 944
Other 58 518 58 518
Total current liabilities 651 294 125 549 776 843
Deferred Credits and Other Liabilities:
Deferred income taxes 574 982 574 982
Unamortized investment tax credits 75 605 75 605
Three Mile Island Unit 2 future costs 84 828 84 828
Other 349 977 349 977
Total deferred credits and
other liabilities 1 085 392 1 085 392
Commitments and Contingencies (Note 1)
Total Liabilities and Capital $4 434 702 $120 603 $4 555 305
The accompanying notes are an integral part of the financial statements.<PAGE>
Financial Statements
Item 10(a) 1
Page 3 of 5
JERSEY CENTRAL POWER & LIGHT COMPANY
STATEMENTS OF INCOME AND RETAINED EARNINGS
ACTUAL AND PRO FORMA
FOR THE TWELVE MONTHS ENDED JUNE 30, 1994
(IN THOUSANDS)
<CAPTION>
Adjustments Pro
Actual (See pages 4+5) Forma
<S> <C> <C> <C>
Operating Revenues $1 969 728 $1 969 728
Operating Expenses:
Fuel 113 157 113 157
Power purchased and interchanged 592 270 592 270
Deferral of energy and capacity
costs, net (5 406) (5 406)
Other operation and maintenance 526 803 $ 409 527 212
Depreciation and amortization 185 330 185 330
Taxes, other than income taxes 232 942 232 942
Total operating expenses 1 645 096 409 1 645 505
Operating Income Before Income Taxes 324 632 (409) 324 223
Income taxes 75 375 (2 663) 72 712
Operating Income 249 257 2 254 251 511
Other Income and Deductions:
Allowance for other funds used during
construction 1 334 1 334
Other income, net 18 100 18 100
Income taxes (7 085) (7 085)
Total other income and deductions 12 349 12 349
Income Before Interest Charges 261 606 2 254 263 860
Interest Charges:
Interest on long-term debt 96 639 96 639
Other interest 12 877 7 200 20 077
Allowance for borrowed funds used during
construction (2 145) (2 145)
Total interest charges 107 371 7 200 114 571
Net Income 154 235 (4 946) 149 289
Preferred stock dividends 14 796 14 796
Earnings Available for Common Stock $ 139 439 $ (4 946) $ 134 493
Retained Earnings:
Balance, beginning of period $ 667 868 $ 667 868
Add, net income 154 235 $ (4 946) 149 289
Deduct, dividends on cumulative
preferred stock 14 796 14 796
Deduct, dividends on common stock 100 000 100 000
Deduct, other adjustments 2 239 2 239
Balance, end of period $ 705 068 $ (4 946) $ 700 122
The accompanying notes are an integral part of the financial statements.<PAGE>
Financial Statements
Item 10(a) 1
Page 4 of 5
JERSEY CENTRAL POWER & LIGHT COMPANY
PRO FORMA ADJUSTMENTS
AT JUNE 30, 1994
(IN THOUSANDS)
(1)
<S> <C> <C>
Accounts receivable - other $ 7 803
Accounts payable - other $ 7 803
To reflect an increase of $7.803 mil-
lion of notes receivable, to a total of
$15 million, in accordance with the pro-
visions of the customer home energy
improvement financing program ($7.197 mil-
lion of electric customer obligations were
acquired as of June 30, 1994 under the
program). (SEC File No. 70-6903)
(2)
Other operation and maintenance $ 409
Accounts payable - other $ 409
To reflect the increase of $.409 mil-
lion in operating expenses, to a total of
$.75 million, as a result of the adminis-
trative fee due to the participating banks
in accordance with the provisions of the
customer home energy improvement financing
program ($.341 million of administrative
fees were incurred as of June 30, 1994
under the program). (SEC File No. 70-6903)
(3)
Cash and temporary cash investments $120 000
Notes payable $120 000
To reflect the issuance of $120 million
of borrowings under the new Revolving Credit
Agreement up to the charter limit. (SEC File
No. 70-7926)<PAGE>
Financial Statements
Item 10(a) 1
Page 5 of 5
JERSEY CENTRAL POWER & LIGHT COMPANY
PRO FORMA ADJUSTMENTS
AT JUNE 30, 1994
(IN THOUSANDS)
(4)
Other interest $7 200
Cash and temporary cash investments $7 200
To reflect annual interest expense
resulting from the issuance of $120 million
of borrowings under the new Revolving Credit
Agreement at an assumed interest rate of 6%.
(SEC File No. 70-7926)
(5)
Taxes accrued $2 663
Income taxes $2 663
To reflect the decrease in the pro-
vision for Federal income taxes at a rate
of 35% attributable to (a) the increase in
other operation and maintenance expense as
a result of administrative fees associated
with the customer home energy improvement
financing program ($.409 million) (SEC File
No. 70-6903) and (b) the increase in
interest expense from the issuance of short-
term debt under the new Revolving Credit
Agreement ($7.2 million). (SEC File
No. 70-7926)
/TABLE
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