SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
___________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of
earliest event reported): April 10, 1997
JERSEY CENTRAL POWER & LIGHT COMPANY
(Exact name of registrant as specified in charter)
New Jersey 1-3141 21-0485010
(State or other (Commission (IRS employer
jurisdiction of file number) identification no.)
incorporation)
2800 Pottsville Pike, Reading, Pennsylvania 19605
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (610) 929-3601
<PAGE>
ITEM 5. OTHER EVENTS.
On April 10, 1997, the Company announced that, in
addition to the continued operation of the Oyster Creek Nuclear
Generating Station, it is also exploring the options of either
sale or early retirement of the station to mitigate costs
associated with continued operation of the plant.
The Oyster Creek Station is a 619 MW facility owned by
the Company and operated by GPU Nuclear, Inc., an affiliate of
the Company.
Oyster Creek was placed in commercial operation in 1969
and is licensed to operate until 2009. If a decision were made to
retire the plant early, retirement would likely take place in
about 2000.
The Company does not anticipate that an early
retirement of Oyster Creek would result in a rate increase to the
Company's customers and expects that the station's capacity could
be offset with replacement capacity and/or transmission
enhancements.
A copy of GPU, Inc.'s related new release is annexed as
an exhibit.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(c) Exhibits:
1. News release, dated April 10, 1997.<PAGE>
SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE
ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE
SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO DULY
AUTHORIZED.
JERSEY CENTRAL POWER & LIGHT COMPANY
By:/s/ T. G. Howson
T.G. Howson, Vice President
and Treasurer
Date: April 11, 1997<PAGE>
EXHIBIT TO BE FILED BY EDGAR
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND
EXHIBITS.
(c) Exhibits:
1. News release, dated April 10, 1997.<PAGE>
Date: April 10, 1997
Further Information: John T. Fidler, 201-263-6479
For Release: Immediately
Release Number: 97-03
GPU Filing to Propose Future Options for
Oyster Creek Nuclear Generating Station
Parsippany, N.J., April 10, 1997 -- GPU, Inc. announced
today that, in addition to the continued operation of the Oyster
Creek Nuclear Generating Station, it is also exploring the
options of either the sale or early retirement of Oyster Creek to
mitigate costs associated with continued operation of the plant.
"Our decision to explore these options is driven by the
economic benefit we believe will be realized by our customers,"
said Fred D. Hafer, president and chief operating officer of GPU,
Inc. "The electricity generated at Oyster Creek costs GPU Energy
about one and a half cents more per kilowatthour than the current
market price for energy. While we can't predict with certainty
exactly what the future prices for energy will be, continuing to
operate the plant until 2009 may not be in the best interest of
our New Jersey customers or our shareholders."
"Oyster Creek has been a solid performer for GPU over the
last five years," said Dennis Baldassari, president of GPU
Energy, "and GPU's net investment in the plant, operating costs<PAGE>
and decommissioning funds are recognized in the current rate
structure." He added that the current rate structure would be
adequate to collect GPU s net investment in the plant and provide
for decommissioning costs, as well as for replacement energy and
capacity if Oyster Creek is retired.
As part of its July 15, 1997 restructuring filing with the
New Jersey Board of Public Utilities, GPU plans to propose the
two options of the sale or early retirement of Oyster Creek, a
619-megawatt boiling water reactor located on the Barnegat Bay in
Ocean County, N.J. Owned by Jersey Central Power & Light Co. and
operated by GPU Nuclear, Inc., it began commercial operation in
1969 and is licensed to operate until 2009. If a decision is
made to retire the plant early, retirement would likely take
place in about 2000. Any opportunities for the purchase of
Oyster Creek by third parties during this period will be reviewed
for potential increased economic benefits. The filing before the
BPU will not consider the sale or early retirement of Three Mile
Island Unit 1.
"I would not anticipate an increase in rates for our New
Jersey customers. A rate decrease could occur upon the
successful replacement of Oyster Creek s energy with a lower-cost
source," Baldassari said. "We will continue to work closely with
the BPU on this and other issues relating to Phase II of the New
Jersey Energy Master Plan."
Baldassari was confident that GPU would be able to offset
the 619 megawatts of capacity at Oyster Creek with additional,
New Jersey-based capacity and/or enhancements of the transmission<PAGE>
system.
"In response to the increasingly competitive market for
electricity generation, GPU has been reviewing its generation
assets more closely," Baldassari said. Last year, for example,
GPU closed the 72-megawatt Gilbert Unit 3 and 58-megawatt Werner
Unit 4 fossil-fueled units because their costs were above the
current market prices for energy.
T. Gary Broughton, president and chief executive officer of
GPU Nuclear, the GPU subsidiary that operates Oyster Creek, said,
"The employees at Oyster Creek have consistently maintained high
levels of safety while making tremendous strides in driving down
operating costs. These efforts will continue."
Broughton said that he is committed to maintaining adequate
staffing levels to ensure the safe and efficient operation of
Oyster Creek, and to working with bargaining unit leadership on
staffing issues.
He added that, assuming the plant is not sold,
decommissioning Oyster Creek would probably be accomplished by
the "prompt removal/dismantlement method," which means that the
process will begin immediately after the plant is retired. This
option is more cost-effective than placing the plant in monitored
storage and other options that delay the start of the process.
Decommissioning is expected to last several years, at a projected
cost of approximately $400 million.
GPU, Inc., an electric utility holding company, recorded
operating revenues of $3.92 billion in 1996.
GPU Energy is the trade name for the three operating utility<PAGE>
subsidiaries of GPU -- Jersey Central Power & Light, Metropolitan
Edison and Pennsylvania Electric -- which provide customer
service, transmission and distribution services to nearly 2
million customers in Pennsylvania and New Jersey.
The GPU International Group has ownership interests in
electricity distribution and supply businesses in England and
Australia, 10 operating cogeneration plants in the U.S. with a
capacity of 895 megawatts, and 11 operating generating facilities
in six foreign countries.
The generation operations of GPU are conducted by GPU
Generation, Inc. and GPU Nuclear. Corporate functions are
performed by GPU Service.<PAGE>
