SEC File No.
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-1
APPLICATION UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 ("ACT")
GPU NUCLEAR CORPORATION ("GPUN")
One Upper Pond Road, Parsippany, New Jersey 07054
ENERGY INITIATIVES, INC. ("EI")
One Upper Pond Road, Parsippany, New Jersey 07054
JERSEY CENTRAL POWER & LIGHT COMPANY ("JCP&L")
300 Madison Avenue, Morristown, N.J. 07960
METROPOLITAN EDISON COMPANY ("Met-Ed")
P.O. Box 16001, Reading, Pa. 19640
PENNSYLVANIA ELECTRIC COMPANY ("Penelec")
1001 Broad Street, Johnstown, Pa. 15907
GPU SERVICE CORPORATION ("GPUSC")
100 Interpace Parkway, Parsippany, New Jersey 07054
(Name of company or companies filing this statement
and address of principal offices)
GENERAL PUBLIC UTILITIES CORPORATION
(Name of top registered holding company parent of the applicants)
Don W. Myers, Vice President Michael J. Connolly, Esq.
and Treasurer Assistant General Counsel
M. A. Nalewako, Secretary GPU Service Corporation
GPU Service Corporation 100 Interpace Parkway
100 Interpace Parkway Parsippany, New Jersey 07054
Parsippany, New Jersey 07054
W. A. Boquist,II, Secretary
J. F. Wilson, Secretary Metropolitan Edison Company
GPU Nuclear Corporation P.O. Box 16001
One Upper Pond Road Reading, Pennsylvania 19640
Parsippany, New Jersey 07054
W. C. Matthews, Secretary
R. S. Cohen, Secretary Pennsylvania Electric Company
Jersey Central Power & Light 1001 Broad Street
Company Johnstown, Pennsylvania 15907
300 Madison Avenue
Morristown, New Jersey 07960
B. L. Levy, President
Kelly A. Tomblin, Secretary
Energy Initiatives, Inc.
One Upper Pond Road
Parsippany, New Jersey 07054
_________________________________________________________________
(Names and addresses of agents for service)
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ITEM 1. DESCRIPTION OF PROPOSED TRANSACTIONS
A. GPUN, a wholly-owned subsidiary of GPU, was organized
in accordance with the Commission's Order, dated September 5,
1980 (SEC File No. 70-6443, HCA Release No. 21708), for the
purpose of the safe operation, maintenance, rehabilitation,
design, construction, start-up and testing of all nuclear
generating facilities owned by JCP&L, Met-Ed and Penelec (the
"GPU Operating Companies") and related research and development.
B. After obtaining the requisite authorizations from your
Commission, the Nuclear Regulatory Commission ("NRC"), the
Pennsylvania Public Utility Commission ("PaPUC") and the New
Jersey Board of Public Utilities, GPUN commenced operation on or
about January 1, 1982. Since that time, GPUN has been
responsible for the operation and maintenance of Three Mile
Island Unit No. 1 ("TMI-1") and Oyster Creek ("OC") generating
units and for the clean-up of Three Mile Island Unit No. 2 ("TMI-
2") which was disabled in an accident on March 28, 1979, and for
the monitoring, maintenance and preparation for ultimate
decommissioning of the Saxton Nuclear Experimental Corporation's
nuclear facility.
C. GPUN, pursuant to your Commission's Order dated
September 14, 1990, (SEC File No. 70-7720, HCA Release No. 35-
25149) also provides, under separate service agreements, non-
nuclear laboratory services ("Laboratory Service Agreement"), at
cost, to GPUSC and the GPU Operating Companies. The laboratory
services support the operation of the GPU Operating Company
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generating stations, transmission and distribution facilities,
and other non-nuclear functions.
D. GPUN now proposes to perform, as and when requested or
as otherwise agreed, a range of non-nuclear technical, training,
management and consulting services ("Services") for and in
support of GPUSC, the GPU Operating Companies, and for Energy
Initiatives, Inc., ("EI").
E. On April 5, 1994 GPU and the GPU Operating Companies
filed an Application on Form U-1 docketed in SEC File No. 70-
8409 proposing to form GPU Generation Corporation ("GPUGC") as a
wholly-owned subsidiary of GPU and to enter into an operating
agreement whereby GPUGC would operate, maintain and rehabilitate,
among other things, the non-nuclear generation facilities of the
GPU Operating Companies. GPUN expects and proposes that, if and
when that Application is granted and GPUGC is organized and
becomes effective, that GPUN would also be available to provide
services for and in support of GPUGC under the authorization
requested herein. Accordingly, for purposes of this Application,
GPUSC, EI, GPUGC and the GPU Operating Companies are collectively
referred to as the "GPU Companies".
F. The Services are generally described to include the
following types of services:
1. Plant Operations and Maintenance:
Providing services, as available, for scheduled and
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non-scheduled maintenance functions for the non-nuclear
plants of the GPU Companies. Such Services shall
include, but not be limited to: plant operations;
management and supervision; written work instructions
and planning; craft coordination and supervision;
estimating and scheduling; contracting and purchasing;
non-nuclear engineering assistance; building
maintenance; grounds maintenance; mechanical
maintenance; electrical maintenance and equipment
maintenance.
2. Plant Inspections and Risk Analysis:
Conducting plant inspections and performing
probabilistic risk assessments of the GPU Companies'
non-nuclear plants and plant systems including the use
of robotic devices and techniques to conduct such
inspections and analysis.
3. Plant Equipment Corrosion Control and Failure Analysis:
Assessing the potential corrosion risks and processes
in the GPU Companies' non-nuclear plant systems and
providing recommendations for corrective action;
investigating system and equipment failures and
providing recommendations for corrective action; and
using ultrasonic and other inspection techniques to
monitor and assess plant systems and equipment for
possible degradation from erosion or corrosion.
4. Engineering and Design Services:
Providing technical design and engineering services for
the GPU Companies' non-nuclear plant modifications and
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for the resolution of operating and maintenance
issues.
5. Plant Life Extension Analysis:
Reviewing the GPU Companies' non-nuclear plant facility
structures, systems and components and performing
technical procedures and processes that may be
necessary to extend the useful life of such plant
facilities.
6. Project and Construction Management:
Providing to the GPU Companies' non-nuclear project and
construction management and supervision; projects
controls (from project design to project completion),
such as planning, estimating, cost engineering,
scheduling and procurement; craft coordination and
supervision; construction compliance and review
assistance; design and engineering assistance; project
permitting; and contract and procurement assistance in
connection with a variety of projects, including, but
not limited to: construction of buildings, underground
piping and utilities, major concrete foundations,
mechanical piping and equipment, roofing and
renovations, disposal and shutdown.
7. Plant Modification, Design, Installation, Evaluation &
Testing:
Providing to the GPU Companies guidelines, criteria,
designs, drawings, material selection, specifications,
and analyses in support of non-nuclear plant
modifications; organizing, planning and coordinating
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engineering project activities with regard to technical
adequacy, schedule and cost; performing start-up and
test activities to assure new or modified plants,
facilities and systems are systematically tested to
conform with technical requirements.
8. Environmental Protection Services:
Providing to the GPU Companies EPA and State-required
environmental sampling and analysis;environmental
impact statements; hazardous waste management;
bioremediation of petroleum contaminated soil; and
regulatory affairs and rulemaking review assistance.
9. Emergency Preparedness Training and Services:
Providing the GPU Companies with general emergency
preparedness support; emergency preparedness training
and consultation; and assisting in emergency
preparedness communications with state and local
government authorities.
10. Quality Assurance Services:
Providing quality assurance supervisory services for
contractors performing inspections or construction
activities at the GPU Companies' non-nuclear
facilities.
11. Training Programs:
Providing non-nuclear training services and programs to
the GPU Companies such as computer-based training;
instructor training; management and supervisory
training; fire protection training; facility security
training; mechanical maintenance training; chemistry
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training; electrical, instrument & control training;
safety and environmental training; and development of
Performance Based Training Programs using GPUN's
Training and Education Data Base systems (TEDS)
Software System.
12. Plant Management Consulting and Operation Analysis:
Providing the GPU Companies with situational expertise
and guidance to aid the management decision-making
process and provide assistance and expertise in
developing reliability centered maintenance programs
and on-line maintenance scheduling programs. Provide
job and work process re-engineering consultation and
analysis to identify potential for improvement of,
existing job and work process methods.
13. Industrial Safety and Hygiene Services:
Provide the GPU Companies with OSHA Compliance
assistance; plant safety analysis; asbestos sampling
and analysis; noise surveillance and analysis; heat
stress assessment; and policy and procedure writing.
14. Medical Services.
Provide fitness-for-duty medical services and other
medical services related to the GPU Companies' needs to
comply with state, federal or local laws or
regulations.
G. GPUN intends to enter into a Non-Nuclear Technical,
Training, Management and Consulting Services Agreement ("New
Agreement") with the GPU Companies to provide the Services as
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they may request in connection with their business operations.
The New Agreement will be substantially in the form of Exhibit A-
3 hereto which is substantially in the form of the Laboratory
Service Agreement previously filed as Exhibit A-4 to SEC File No.
70-7720, HCAR No. 35-25149.
Schedule I to the New Agreement also generally describes (as
set forth in paragraph F above) the types of Services that GPUN
intends to furnish to the GPU Companies. Schedule II to the New
Agreement entitled "Determination of Cost of Service and
Allocation Thereof" provides that any Services to be rendered by
GPUN will be charged at cost pursuant to the Act and the
Commission's rules and regulations thereunder. Schedule II will
also reflect the practice of (a) charging capital costs for
providing Services to the serviced companies, if any, consistent
with generally accepted accounting principles, and (b) billing to
the serviced company the costs of service before they are paid by
GPUN, which is consistent with the practice that was approved by
the Commission Staff in its letter to GPU Service Corporation
dated June 3, 1982. Such costs will be accounted for and billed
to the GPU Companies substantially as described in the
Application-Declaration and Order docketed in SEC File No. 70-
7720.
H. The GPU Companies believe that the technical,
analytical and related expertise of GPUN's staff (described
generally in paragraph F above) can be usefully applied in
support of their business activities.
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I. GPUN's provision of the Services to the GPU Companies
will not interfere with GPUN's primary responsibilities of
operating and maintaining nuclear generating facilities on behalf
of the GPU Operating Companies. The total level of Services GPUN
will provide under this Application will not exceed ten percent
(10%) of the level of primary nuclear services which it is
currently providing to or on behalf of the GPU Operating
Companies.
J. GPUN will, on or before May 1 of each year, separately
report to the Commission any revenues received from the
performance of its Services, as authorized herein, on its Annual
Report on Form U-13-60 filed pursuant to the Act.
ITEM 2. FEES, COMMISSIONS AND EXPENSES.
The estimated fees, commissions and expenses to be incurred
in connection with the proposed transactions will be supplied by
further post-effective amendment.
ITEM 3. APPLICABLE STATUTORY PROVISIONS.
A. The proposed transactions may be subject to Sections 12
and 13(b) of the Act and Rules 87, 90 and 91 thereunder.
B. The GPU Companies believe that the proposed
transactions are functionally related to the utility operations
of the GPU System and are necessary or appropriate in the public
interest and, therefore, are consistent with Section 11(b)(1) of
the Act.
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ITEM 4. REGULATORY APPROVAL.
The agreement to provide engineering, advisory, construction
and management services between GPUN and JCP&L, is subject to the
approval of the New Jersey Board of Regulatory Commissioners.
The agreement to provide the Services proposed herein to Met-Ed
and Penelec has heretofore been authorized under a PaPUC Order
dated December 13, 1993. No other State or Federal Commission
other than your Commission has jurisdiction over the transactions
proposed herein.
ITEM 5. PROCEDURE
It is requested that the Commission issue an order with
respect to the transactions proposed herein at the earliest
practicable date but, in any event, not later than July 15, 1994.
It is further requested that (i) there not be a recommended
decision by an Administrative Law Judge or other responsible
officer of the Commission, (ii) the Office of Public Utility
Regulation be permitted to assist in the preparation of the
Commission's decision, and (iii) there be no waiting period
between the issuance of the Commission's order and the date on
which it is to become effective.
ITEM 6. EXHIBITS AND FINANCIAL STATEMENTS.
(a) Exhibits:
A - None
B - Form of Services Agreement.
C - Not applicable
D-1 - Petition of JCP&L to New Jersey Board of
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Regulatory Commissioners -- to be filed by
Amendment.
D-2 - Order of New Jersey Board of Regulatory
Commissioners -- to be filed by Amendment.
D-3 - Order, dated December 13, 1993 of the PaPUC -
-to be filed by Amendment.
E - Not applicable
F-1 - Opinion of R. S. Cohen, Esq. - to be filed by
Amendment.
F-2 - Opinion of Ballard Spahr Andrews & Ingersoll
- to be filed by Amendment.
F-3 - Opinion of Ryan, Russell, Ogden & Seltzer -
to be filed by Amendment.
F-4 - Opinion of M. J. Connolly, Esq. - to be filed
by Amendment.
G - Proposed Form of Public Notice.
(b) Financial Statements:
- Financial Statements have been omitted since they
are not materially affected by the proposed
transactions.
ITEM 7. INFORMATION AS TO ENVIRONMENTAL EFFECTS.
The issuance of an order by your Commission with respect to
GPUN's rendering of Non-Nuclear Technical, Training, Management
and Consulting Services to the GPU Companies is not a major
federal action significantly affecting the quality of the human
environment.
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No federal agency has prepared or is preparing an
environmental impact statement with respect to the subject
transactions.
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SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE PUBLIC UTILITY
HOLDING COMPANY ACT OF 1935, THE UNDERSIGNED COMPANIES HAVE DULY
CAUSED THIS STATEMENT TO BE SIGNED ON ITS BEHALF BY THE
UNDERSIGNED THEREUNTO DULY AUTHORIZED.
GPU NUCLEAR CORPORATION
GPU SERVICE CORPORATION
JERSEY CENTRAL POWER & LIGHT COMPANY
METROPOLITAN EDISON COMPANY
PENNSYLVANIA ELECTRIC COMPANY
By:___________________________
Don W. Myers, Treasurer
ENERGY INITIATIVES, INC.
By:___________________________
B. L. Levy, President
Date: May 19, 1994
<PAGE>
EXHIBITS TO BE FILED BY EDGAR
Exhibits:
B - Form of Services Agreement.
G - Proposed Form of Public Notice.
<PAGE>
Exhibit B
GPU NUCLEAR CORPORATION
One Upper Pond Road
Parsippany, New Jersey 07054
NON-NUCLEAR TECHNICAL, TRAINING, MANAGEMENT
AND CONSULTING SERVICES AGREEMENT
To: Jersey Central Power & Light Company
GPU Nuclear Corporation ("GPUNC") is a company engaged,
among other things, in rendering to safe operation, maintenance,
rehabilitation, design, construction, start-up and testing of all
nuclear generating facilities owned by Jersey Central Power &
Light Company ("JCP&L"); Metropolitan Edison Company ("Met-Ed")
and Pennsylvania Electric Company ("Penelec") (collectively the
"GPU Operating Companies") and in providing the GPU Operating
Companies and GPU Service Corporation ("GPUSC") (collectively the
GPU Operating Companies and GPUSC are referred to as the
"Associate Companies") with certain non-nuclear laboratory
services. In addition to these services, GPUN now offers to
provide additional non-nuclear services as described and set
forth herein.
The organization, conduct of business, and method of cost
allocation of GPUNC are designed to meet the requirements of
Section 13 under the Public Utility Holding Company Act of 1935
("PUHCA") and the rules and regulations promulgated thereunder to
the end that services performed by GPUNC for Associate Companies
will be rendered to them at cost, fairly and equitably allocated.
Services will be rendered by GPUNC upon receipt from time to
time of specific or general requests therefore or as otherwise
agreed upon. Such requests or agreements may always be modified
<PAGE>
or cancelled by the serviced company at its discretion.
Accordingly, the parties hereto agree as follows:
1. GPUNC agrees to furnish to JCP&L and its subsidiaries,
including those to be formed or acquired in the future
(collectively and individually referred to as "You"), upon the
terms and conditions herein set forth, such of the services
described in Schedule I ("Services") hereto as You may from time
to time request or as we may otherwise agree. GPUNC will also
furnish, if available, such services which are not described in
Schedule I but which are generally related to such Services as
You may request.
2. If you so request, GPUNC will act as Your agent,
attorney-in-fact and representative to sign such instruments and
to do such things as You may from time to time authorize in
connection with the Services to be furnished hereunder.
3. GPUNC has and will maintain an experienced and trained
staff in order to enable it to render the Services described in
Schedule I hereto. In addition to the services of its own staff,
GPUNC will, after consultation with You concerning the Services
to be rendered pursuant to Your request, arrange for services of
non-affiliated experts and consultants.
4. All of the Services rendered under this agreement will
be at the actual cost thereof, and paid in accordance with the
provisions set forth in paragraph 5 hereof, direct charges will
be made for services where a direct allocation of cost is
possible. The methods of determining such costs and the
allocation thereof are set forth in Schedule II hereto. These
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methods are reviewed periodically as deemed appropriate to You
and GPUNC. Such methods may be modified or changed by GPUNC
without the necessity of an amendment to this agreement, provided
that in each instance all services rendered hereunder will be at
the actual cost thereof, fairly and equitable allocated, and all
in accordance with the requirements of PUHCA and the rules,
regulations and orders promulgated thereunder. You will be
advised from time to time of any material changes in such
methods.
5. Bills will be rendered as soon as practicable after the
close of each month and will be payable within ten (10) days
after receipt. If, however, GPUNC so requests, You will provide
it with funds sufficiently in advance to enable it to pay the
actual costs of the Services provided You hereunder. This
agreement may be terminated at any time by either party giving at
least thirty (30) days' written notice to the other of such
termination as at the end of any month.
6. This agreement will be subject to termination of
modification at any time if and to the extent its performance may
conflict with any federal or state law or any rule, regulation or
order of a federal or state regulatory body having jurisdiction.
This agreement will be subject to approval of any federal or
state
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regulatory body whose approval is a legal prerequisite to its
execution and delivery or performance.
GPU NUCLEAR CORPORATION
By:______________________
P. R. Clark, President
Accepted as of ______________, 1994
JERSEY CENTRAL POWER & LIGHT COMPANY
By:___________________________
D. P. Baldassari, President
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SCHEDULE I
Description of Non-Nuclear Technical, Training, Management and
Consulting Services which are available from
GPU NUCLEAR CORPORATION
The Non-Nuclear Technical, Training, Management and
Consulting Services include, but are not limited to, the
following types of services:
1. Plant Operations and Maintenance:
Providing services, as available, for scheduled and
non-scheduled maintenance functions for the non-nuclear
plants of the GPU Companies. Such Services shall
include, but not be limited to: plant operations;
management and supervision; written work instructions
and planning; craft coordination and supervision;
estimating and scheduling; contracting and purchasing;
non-nuclear engineering assistance; building
maintenance; grounds maintenance; mechanical
maintenance; electrical maintenance and equipment
maintenance.
2. Plant Inspections and Risk Analysis:
Conducting plant inspections and performing
probabilistic risk assessments of the GPU Companies'
non-nuclear plants and plant systems including the use
of robotic devices and techniques to conduct such
inspections and analysis.
3. Plant Equipment Corrosion Control and Failure Analysis:
Assessing the potential corrosion risks and processes
in the GPU Companies' non-nuclear plant systems and
providing recommendations for corrective action;
investigating system and equipment failures and
<PAGE>
providing recommendations for corrective action; and
using ultrasonic and other inspection techniques to
monitor and assess plant systems and equipment for
possible degradation from erosion or corrosion.
4. Engineering and Design Services:
Providing technical design and engineering services for
the GPU Companies' non-nuclear plant modifications and
for the resolution of operating and maintenance issues.
5. Plant Life Extension Analysis:
Reviewing the GPU Companies' non-nuclear plant facility
structures, systems and components and performing
technical procedures and processes that may be
necessary to extend the useful life of such plant
facilities.
6. Project and Construction Management:
Providing to the GPU Companies' non-nuclear project and
construction management and supervision; projects
controls (from project design to project completion),
such as planning, estimating, cost engineering,
scheduling and procurement; craft coordination and
supervision; construction compliance and review
assistance; design and engineering assistance; project
permitting; and contract and procurement assistance in
connection with a variety of projects, including, but
not limited to: construction of buildings, underground
piping and utilities, major concrete foundations,
mechanical piping and equipment, roofing and
renovations, disposal and shutdown.
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7. Plant Modification, Design, Installation, Evaluation &
Testing:
Providing to the GPU Companies guidelines, criteria,
designs, drawings, material selection, specifications,
and analyses in support of non-nuclear plant
modifications; organizing, planning and coordinating
engineering project activities with regard to technical
adequacy, schedule and cost; performing start-up and
test activities to assure new or modified plants,
facilities and systems are systematically tested to
conform with technical requirements.
8. Environmental Protection Services:
Providing to the GPU Companies EPA and State-required
environmental sampling and analysis;environmental
impact statements; hazardous waste management;
bioremediation of petroleum contaminated soil; and
regulatory affairs and rulemaking review assistance.
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9. Emergency Preparedness Training and Services:
Providing the GPU Companies with general emergency
preparedness support; emergency preparedness training
and consultation and assisting in emergency
preparedness communications with state and local
government authorities.
10. Quality Assurance Services:
Providing quality assurance supervisory services for
contractors performing inspections or construction
activities at the GPU Companies' non-nuclear
facilities.
11. Training Programs:
Providing non-nuclear training services and programs to
the GPU Companies such as computer-based training;
instructor training; management and supervisory
training; fire protection training; facility security
training; mechanical maintenance training; chemistry
training; electrical, instrument & control training;
safety and environmental training; and development of
Performance Based Training Programs using GPUN's
Training and Education Data Base systems (TEDS)
Software System.
12. Plant Management Consulting and Operation Analysis:
Providing the GPU Companies with situational expertise
and guidance to aid the management decision-making
process and provide assistance and expertise in
developing reliability centered maintenance programs
and on-line maintenance scheduling programs. Provide
4
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job and work process re-engineering consultation and
analysis to identify potential for improvement of
existing job and work process methods.
13. Industrial Safety and Hygiene Services:
Provide the GPU Companies with OSHA Compliance
assistance; plant safety analysis; asbestos sampling
and analysis; noise surveillance and analysis; heat
stress assessment; and policy and procedure writing.
14. Medical Services.
Provide fitness-for-duty medical services and other
medical services related to the GPU Companies' needs to
comply with state, federal or local laws or
regulations.
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SCHEDULE II
Determination of Cost of Service
and Allocation Thereof
Cost of service will be determined in accordance with the
Public Utility Holding Company Act of 1935 and the rules,
regulations and orders promulgated thereunder, and will include
all costs associated with the Services incurred by GPUNC.
Records will be maintained and periodically reviewed by
GPUNC in order to accumulate and charge the actual costs of the
Services. These costs will include wages and salaries of
employees and related expenses, such as insurance, taxes,
pensions and other employee welfare benefits, and all other
related costs including general administration expenses and
capital charges, if any, properly amortized and equitably
allocated.
Charges for the Services will be determined from the
timesheets of employees (other than some secretaries, clerical
and similar employees, the cost of whose services will be treated
as a part of general administrative expenses).
Charges for the Services rendered and related employee
expenses and costs and non-personnel expenses (e.g., use of
automotive equipment) will be billed directly to the serviced
companies, either individually or, when the Services performed
are for a group of companies, by means of an equitable allocation
formula.
Out-of-pocket expenses which are incurred for the serviced
companies will be billed at cost. Such expense may be billed
either upon the receipt by GPUNC of invoices for such expenses
and before their payment by GPUNC or after their payment by
<PAGE>
GPUNC. Charges for non-personnel expenses, such as for use of
automobiles, will normally be computed on the basis of costs per
hour or per mile.
Capital charges, if any, will be billed, as incurred, in
accordance with generally accepted accounting principles, to the
serviced company by means of an equitable allocation formula.
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EXHIBIT G
Securities and Exchange Commission
Release No. : 70- )
GENERAL PUBLIC UTILITIES CORPORATION, et al
Notice of Proposed provision of services to affiliates by
GPU Nuclear Corporation.
General Public Utilities Corporation ("GPU") 100 Interpace
Parkway, Parsippany, New Jersey 07054, a registered holding
company, GPU Nuclear Corporation ("GPUN") One Upper Pond Road,
Parsippany, New Jersey 07054, Jersey Central Power & Light
Company ("JCP&L") 300 Madison Avenue, Morristown, N.J. 07960,
Metropolitan Edison Company ("Met-Ed") P.O. Box 16001, Reading,
Pa. 19640, Pennsylvania Electric Company ("Penelec") 1001 Broad
Street, Johnstown, Pa. 15907, (JCP&L, Met-Ed and Penelec are
collectively referred to as the "GPU Operating Companies"), GPU
Service Corporation ("GPUSC") 100 Interpace Parkway, Parsippany,
N.J. 07054, and Energy Initiatives, Inc. ("EI") One Upper Pond
Road, Parsippany, New Jersey 07054, wholly-owned subsidiaries of
GPU (collectively the "Applicants"), and to GPU Generation
Corporation ("GPUGC"), if and when organized and effective,
(GPUSC, EI, GPUGC and the GPU Operating Companies are
collectively referred to as the "GPU Companies"), have filed an
application with the Commission under Sections 12 and 13(b) of
the Public Utility Holding Company Act of 1935 ("Act") and Rules
87, 90 and 91 thereunder.
By order dated September 5, 1980 (HCAR No. 21708), the
Commission, among other things, authorized GPUN to operate,
maintain, rehabilitate, design, construct, start up and test the
nuclear generation facilities owned by the GPU Subsidiaries. By
order dated September 14, 1990 (HCAR No. 35-25149), the
Commission further authorized GPUN to perform certain laboratory
services to support the GPU Operating Companies non-nuclear
activities.
The Applicants' now propose that GPUN be authorized to provide to
the GPU Companies non-nuclear technical, training, management and
consulting services ("Services"). The proposed Services include:
1. Plant Operations and Maintenance:
Providing services, as available, for scheduled and
non-scheduled maintenance functions for non-nuclear
plants. Such Services shall include, but not be
limited to: plant operations; management and
supervision; written work instructions and planning;
craft coordination and supervision; estimating and
scheduling; contracting and purchasing; non-nuclear
engineering assistance; building maintenance; grounds
maintenance; mechanical maintenance; electrical
maintenance and equipment maintenance.
<PAGE>
2. Plant Inspections and Risk Analysis:
Conducting plant inspections and performing
probabilistic risk assessments of non-nuclear plants
and plant systems including the use of robotic devices
and techniques to conduct such inspections and
analysis.
3. Plant Equipment Corrosion Control and Failure Analysis:
Assessing the potential corrosion risks and processes
in non-nuclear plant systems and providing
recommendations for corrective action; investigating
system and equipment failures and providing
recommendations for corrective action; and using
ultrasonic and other inspection techniques to monitor
and assess plant systems and equipment for possible
degradation from erosion or corrosion.
4. Engineering and Design Services:
Providing technical design and engineering services for
non-nuclear plant modifications and for the resolution
of operating and maintenance issues.
5. Plant Life Extension Analysis:
Reviewing non-nuclear plant facility structures,
systems and components and performing technical
procedures and processes that may be necessary to
extend the useful life of such plant facilities.
6. Project and Construction Management:
Providing non-nuclear project and construction
management and supervision; projects controls (from
project design to project completion), such as
planning, estimating, cost engineering, scheduling and
procurement; craft coordination and supervision;
construction compliance and review assistance; design
and engineering assistance; project permitting; and
contract and procurement assistance in connection with
a variety of projects, including, but not limited to:
construction of buildings, underground piping and
utilities, major concrete foundations, mechanical
piping and equipment, roofing and renovations, disposal
and shutdown.
7. Plant Modification, Design, Installation, Evaluation &
Testing:
Providing guidelines, criteria, designs, drawings,
material selection, specifications, and analyses in
support of non-nuclear plant modifications; organizing,
planning and coordinating engineering project
activities with regard to technical adequacy, schedule
and cost; performing start-up and test activities to
assure new or modified plants, facilities and systems
are systematically tested to conform with technical
requirements.
8. Environmental Protection Services:
Providing EPA and State-required environmental sampling
and analysis;environmental impact statements; hazardous
waste management; bioremediation of petroleum
contaminated soil; and regulatory affairs and
rulemaking review assistance.
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9. Emergency Preparedness Training and Services:
Providing general emergency preparedness support;
emergency preparedness training and consultation and
assisting in emergency preparedness communications with
state and local government authorities.
10. Quality Assurance Services:
Providing quality assurance supervisory services for
contractors performing inspections or construction
activities at the non-nuclear facilities.
11. Training Programs:
Providing non-nuclear training services and programs
such as computer-based training; instructor training;
management and supervisory training; fire protection
training; facility security training; mechanical
maintenance training; chemistry training; electrical,
instrument & control training; safety and environmental
training; and development of Performance Based Training
Programs using GPUN's Training and Education Data Base
systems (TEDS) Software System.
12. Plant Management Consulting and Operation Analysis:
Provide situational expertise and guidance to aid the
management decision-making process and provide
assistance and expertise in developing reliability
centered maintenance programs and on-line maintenance
scheduling programs. Provide job and work process re-
engineering consultation and analysis to identify
potential for improvement of existing job and work
process methods.
13. Industrial Safety and Hygiene Services:
Provide OSHA Compliance assistance; plant safety
analysis; asbestos sampling and analysis; noise
surveillance and analysis; heat stress assessment; and
policy and procedure writing.
14. Medical Services.
Provide fitness-for-duty medical services and other
medical services related to the GPU Companies' needs to
comply with state, federal or local laws or
regulations.
GPUN will perform such services at cost in accordance with
Rules 90 and 91 under the Act and will separately report annually
to the Commission any revenues received from such services on
Form U-13-60.
The application 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 to the Secretary, Securities and Exchange Commission,
Washington, D. C. 20549, and serve a copy on the applicants 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
ordered, and will receive a copy of any notice or order issued in
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this matter. After said date, the application as filed or as it
may be amended, may be granted and permitted to become effective.
For the Commission, by the Division of Investment
Management, pursuant to delegated authority.
Secretary
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