Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1997 and Ending December 31, 1997
--------------- -----------------
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
GPU NUCLEAR, INC.
- --------------------------------------------------------------------------------
(Exact Name of Reporting Company)
A Subsidiary Service Company
----------------
("Mutual" or "Subsidiary")
Date of Incorporation September 11, 1980 If not Incorporated, Date of
Organization__________
State or Sovereign Power under which Incorporated or Organized New Jersey
1 Upper Pond Road
Location of Principal Executive Offices of Reporting Co. Parsippany, NJ 07054
---------------------
Name, title, and address of officer to whom correspondence concerning
this report should be addressed:
Comptroller 1 Upper Pond Road
D. M. Furlong Financial & Planning Services Parsippany, NJ 07054
- --------------------------------------------------------------------------------
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by
Reporting Company:
GPU, INC.
- --------------------------------------------------------------------------------
<PAGE>
1
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing.- Rule 94 provides that on or before the first day of
May in each calendar year, each mutual service company and each subsidiary
service company as to which the Commission shall have made a favorable finding
pursuant to Rule 88, and every service company whose application for approval or
declaration pursuant to Rule 88 is pending shall file with the Commission an
annual report on Form U-13-60 and in accordance with the Instructions for that
form.
2. Number of Copies.- Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in case
correspondence with reference to the report become necessary.
3. Period Covered by Report.- The first report filed by any company shall
cover the period from the date the Uniform System of Accounts was required to be
made effective as to that company under Rules 82 and 93 to the end of that
calendar year. Subsequent reports should cover a calendar year.
4. Report Format.- Reports shall be submitted on the forms prepared by
the Commission. If the space provided on any sheet of such form is inadequate,
additional sheets may be inserted of the same size as a sheet of the form or
folded to such size.
5. Money Amounts Displayed.- All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of dollars
or in hundred thousands of dollars, as appropriate and subject to provisions of
Regulation S-X (S210.3-01(b)).
6. Deficits Displayed.- Deficits and other like entries shall be
indicated by the use of either brackets or a parenthesis with corresponding
reference in footnotes. (Regulation S-X, S210.3-01(c))
7. Major Amendments or Corrections.- Any company desiring to amend or
correct a major omission or error in a report after it has been filed with the
Commission shall submit an amended report including only those pages, schedules,
and entries that are to be amended or corrected. A cover letter shall be
submitted requesting the Commission to incorporate the amended report changes
and shall be signed by a duly authorized officer of the company.
8. Definitions.- Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February 2,
1979 shall be applicable to words or terms used specifically within this Form
U-13-60.
9. Organization Chart.- The service company shall submit with each annual
report a copy of its current organization chart.
10. Methods of Allocation.- The service company shall submit with each
annual report a listing of the currently effective methods of allocation being
used by the service company and on file with the Securities and Exchange
Commission pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed.- The
service company shall submit with each annual report a copy of the annual
statement supplied to each associate company in support of the amount of
compensation for use of capital billed during the calendar year.
<PAGE>
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
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
EMPLOYEE PENSIONS AND BENEFITS Account 926 28
GENERAL ADVERTISING EXPENSES Account 930.1 29
MISCELLANEOUS GENERAL EXPENSES Account 930.2 30
RENTS Account 931 31
TAXES OTHER THAN INCOME TAXES Account 408 32
DONATIONS Account 426.1 33
OTHER DEDUCTIONS Account 426.5 34
NOTES TO STATEMENT OF INCOME Schedule XVIII 35
<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 NUCLEAR, 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) $ -- $ 38
107 Construction work in progress (Schedule II) -- --
------- -------
Total Property -- 38
------- -------
108 Less accumulated provision for depreciation
and amortization of service company
property (Schedule III) -- --
------- -------
Net Service Company Property -- 38
INVESTMENTS
123 Investments in associate companies (Schedule IV) -- --
124 Other investments (Schedule IV) 1,529 728
------- -------
Total Investments 1,529 728
CURRENT AND ACCRUED ASSETS
131 Cash -- --
134 Special deposits 390 498
135 Working funds 75 14
136 Temporary cash investments (Schedule IV) -- --
141 Notes receivable -- --
143 Accounts receivable 2,129 2,433
144 Accumulated provision for uncollectible
accounts -- --
146 Accounts receivable from associate
companies (Schedule V) 49,549 47,538
152 Fuel stock expenses undistributed (Schedule VI) -- --
154 Materials and supplies -- --
163 Stores expense undistributed (Schedule VII) -- --
165 Prepayments 1 424
174 Miscellaneous current and accrued
assets (Schedule VIII) -- --
------- -------
Total Current and Accrued Assets 52,144 50,907
------- -------
DEFERRED DEBITS
181 Unamortized debt expense -- --
184 Clearing accounts 37 214
186 Miscellaneous deferred debits (Schedule IX) 1,079 831
188 Research, development, or demonstration
expenditures Schedule X) -- --
190 Accumulated deferred income taxes 27,715 22,050
------- -------
Total Deferred Debits 28,831 23,095
------- -------
TOTAL ASSETS AND OTHER DEBITS $82,504 $74,768
======= =======
<PAGE>
5
ANNUAL REPORT OF GPU NUCLEAR, INC.
- --------------------------------------------------------------------------------
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior
year.
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 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) - -
------ ------
Total Proprietary Capital 50 50
------ ------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) - -
224 Other long-term debt (Schedule XII) - -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt-debit - -
------ ------
Total Long-term Debt - -
------ ------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable - -
232 Accounts payable 42,912 37,493
233 Notes payable to associate
companies (Schedule XIII) - -
234 Accounts payable to associate
companies (Schedule XIII) 2,744 20
236 Taxes accrued 1,600 625
237 Interest accrued 417 184
238 Dividends declared - -
241 Tax collections payable 145 116
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 20,961 24,032
------ ------
Total Current and Accrued Liabilities 68,779 62,470
------ ------
DEFERRED CREDITS
253 Other deferred credits 13,007 11,572
255 Accumulated deferred investment tax credits - -
------ ------
Total Deferred Credits 13,007 11,572
------ ------
282 ACCUMULATED DEFERRED INCOME TAXES 668 676
--------------------------------- ------ ------
TOTAL LIABILITIES AND PROPRIETARY
CAPITAL $82,504 $74,768
======= =======
<PAGE>
6
<TABLE>
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- ---------------------------------------------------------------------------------------------------------
<CAPTION>
SCHEDULE II - SERVICE COMPANY PROPERTY
- --------------------------------------------------------------------------------
BALANCE AT RETIREMENTS OTHER BALANCE AT
BEGINNING ADDITIONS OR CHANGES 1/ CLOSE OF
DESCRIPTION OF YEAR SALES YEAR
SERVICE COMPANY PROPERTY
Account
<S> <C> <C> <C> <C> <C>
301 ORGANIZATION $ 37 $ - $ - $ (37) $ -
303 MISCELLANEOUS
INTANGIBLE PLANT
304 LAND AND LAND RIGHT
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD
IMPROVEMENTS
307 EQUIPMENT 2/ 1 - - (1) -
-
308 OFFICE FURNITURE
AND EQUIPMENT
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY 3/
SUB-TOTAL 38 - - (38) -
----- ---- ---- ---- ----
107 CONSTRUCTION WORK
IN PROGRESS 4/
TOTAL $ 38 $ - $ - $ (38) $ -
====== ==== ==== ==== ====
<FN>
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
</FN>
</TABLE>
<PAGE>
7
SCHEDULE II - CONTINUED
- --------------------------------------------------------------------------------
2/ SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS DURING
THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
- --------------------------------------------------------------------------------
BALANCE AT
CLOSE OF
SUB ACCOUNT DESCRIPTION ADDITIONS YEAR
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
N/A
- --------------------------------------------------------------------------------
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
N/A
- --------------------------------------------------------------------------------
<PAGE>
8
<TABLE>
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
<CAPTION>
- ----------------------------------------------------------------------------------------
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
- ----------------------------------------------------------------------------------------
BALANCE AT ADDITIONS BALANCE
BEGINNING CHARGED OTHER CHANGES CLOSE OF
DESCRIPTION OF YEAR TO RETIREMENTS ADD (DEDUCT)1/ YEAR
ACCOUNT 403
- ----------------------------------------------------------------------------------------
Account
<S> <C>
301 ORGANIZATION
303 MISCELLANEOUS
INTANGIBLE PLANT
304 LAND AND LAND RIGHTS
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD
IMPROVEMENTS
307 EQUIPMENT
308 OFFICE FURNITURE
AND FIXTURES
309 AUTOMOBILES, OTHER
VEHICLES AND
RELATED GARAGE
EQUIPMENT
310 AIRCRAFT AND
AIRPORT EQUIPMENT
311 OTHER SERVICE
COMPANY PROPERTY
<FN>
- --------------------------------------------------------------------------------
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
N/A
- --------------------------------------------------------------------------------
</FN>
</TABLE>
<PAGE>
9
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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 - $ 303 $ 303
CASH SURRENDER VALUE
RABBI TRUST 103 950
HEALTH CARE RESERVE 322 276
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
NONE
TOTAL $ 728 $1,529
===== =====
<PAGE>
10
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
JERSEY CENTRAL POWER & LIGHT COMPANY $34,516 $12,676
METROPOLITAN EDISON COMPANY 7,462 28,275
PENNSYLVANIA ELECTRIC COMPANY 4,842 8,160
GPU GENERATION, INC 605 368
GPU INTERNATIONAL, INC 113 70
TOTAL $47,538 $49,549
======= =======
- --------------------------------------------------------------------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
NONE
- --------------------------------------------------------------------------------
<PAGE>
11
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
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.
- --------------------------------------------------------------------------------
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE OF
OF YEAR YEAR
- --------------------------------------------------------------------------------
ACCOUNT 152 - FUEL STOCK EXPENSES UNDISTRIBUTED
NONE
- --------------------------------------------------------------------------------
SUMMARY:
- --------------------------------------------------------------------------------
<PAGE>
12
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
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 $ 5,462 $ 1,623 $ 7,085
JERSEY CENTRAL POWER & LIGHT CO (3,413) (942) (4,355)
METROPOLITAN EDISON CO (1,366) (454) (1,820)
PENNSYLVANIA ELECTRIC CO (683) (227) (910)
NOTE: Stores expenses are billed back to the
associated companies in the month in the
month incurred.
TOTAL $ -- $ -- $ --
======= ======= =======
<PAGE>
13
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
<PAGE>
14
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
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
Payments made to vendors which
will be distributed to various
expense accounts in subsequent
months $ 274 $ 300
Restricted Stock Program - Deferral 520 751
Babcock & Wilcox Owners' Group -
Deferred Costs 17 17
Provide Services to Public Service
of Colorado in connection with
Ft. St. Vrain - Deferred Costs 10 11
Provide support to GPU International
in connection with Onondoga project -
Deferred Costs 10 --
TOTAL $ 831 $1,079
====== ======
<PAGE>
15
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
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
B&W Owners Group Activities $ 1,729
BWR Owners Group Activities 399
EPRI R&D Program 265
Robotics 26
EPRI - Steam Gen. Reliability Program 4
Jersey Central Power & Light Company (997)
Metropolitan Edison Company (951)
Pennsylvania Electric Company (475)
NOTE: Research and development expenses are
billed back to the associate companies
in the month incurred.
----
TOTAL $ -
====
<PAGE>
16
<TABLE>
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
<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 2,500 $20* 2,500 $50
===== == ===== ==
<FN>
- ------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general
nature of transactions which gave rise to the reported amounts.
</FN>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- ------------------------------------------------------------------------------------------------------
<S> <C> <C>
ACCOUNT 211 -- MISCELLANEOUS PAID-IN CAPITAL NONE
ACCOUNT 215 -- APPROPRIATED RETAINED EARNINGS NONE
<FN>
- ------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Give particulars concerning net income or (loss)
during the year, distinguishing between compensation
for the use of capital owed or net loss remaining
from servicing nonassociates per the General
Instructions of the Uniform System of Accounts. For
dividends paid during the year in cash or otherwise,
provide rate percentage, amount of dividend, date
declared and date paid.
</FN>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
BALANCE AT NET INCOME BALANCE AT
DESCRIPTION BEGINNING OR DIVIDENDS CLOSE OF
OF YEAR (LOSS) PAID YEAR
- --------------------------------------------------------------------------------------------------------
<S> <C>
ACCOUNT 216 -- UNAPPROPRIATED RETAINED EARNINGS
NONE
<FN>
* In Whole Dollars
</FN>
</TABLE>
<PAGE>
17
<TABLE>
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
SCHEDULE XII - LONG-TERM DEBT
<FN>
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.
</FN>
<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
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C>
ACCOUNT 223 - ADVANCES FROM ASSOCIATE
COMPANIES:
NONE
ACCOUNT 224 - OTHER LONG-TERM DEBT:
NONE
<FN>
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
</FN>
</TABLE>
<PAGE>
18
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide balance of notes and accounts payable to each
associate company. Give description and amount of
miscellaneous current and accrued liabilities. Items less
than $10,000 may be grouped, showing the number of items in
each group.
- --------------------------------------------------------------------------------
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE OF
OF YEAR YEAR
- --------------------------------------------------------------------------------
ACCOUNT 233 - - NOTES PAYABLE TO ASSOCIATE COMPANIES
NONE
- --------------------------------------------------------------------------------
ACCOUNT 234 -- ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
GPU SERVICE, INC. $ 19 $2,541
GPU, INC. 1 203
TOTAL $ 20 $2,744
===== =====
- --------------------------------------------------------------------------------
ACCOUNT 242 -- MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
ACCRUALS -- OFFICERS DEFERRED COMPENSATION $ 2,017 $ 1,801
-- INSURANCE 595 657
-- VACATION PAY 10,792 11,098
-- SICK PAY 933 905
-- BONUS PAY/INCENTIVE COMPENSATION 8,857 6,267
-- SEVERANCE PAY 837 232
-- OTHER ACCRUED LIABILITIES 1 1
TOTAL $24,032 $20,961
====== ======
- --------------------------------------------------------------------------------
<PAGE>
19
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any account thereof. Furnish
particulars as to any significant contingent assets or
liabilities existing at the end of the year. Notes relating
to financial statements shown elsewhere in this report may
be indicated here by reference.
- --------------------------------------------------------------------------------
NONE
<PAGE>
20
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
SCHEDULE XV
STATEMENT OF INCOME
- --------------------------------------------------------------------------------
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
- --------------------------------------------------------------------------------
INCOME
457 Services rendered to associate companies $ 361,333 $ 408,329
458 Services rendered to nonassociate
companies 104 1,421
421 Miscellaneous income or loss 151 123
--------- ---------
Total Income 361,588 409,873
--------- ---------
EXPENSE
920 Salaries and wages 112,409 131,569
921 Office supplies and expenses 102,388 110,439
922 Administrative expense transferred - -
credit 35,712 1,155
923 Outside services employed 55,240 88,496
924 Property insurance 25 22
925 Injuries and damages 1,125 1,109
926 Employee pensions and benefits 27,200 48,573
928 Regulatory commission expense -- --
930.1 General advertising expenses -- --
930.2 Miscellaneous general expenses 10,822 9,785
931 Rents 6,877 8,752
932 Maintenance of structures and equipment -- --
403 Depreciation and amortization expense -- --
408 Taxes other than income taxes 8,491 9,162
409 Income taxes 5,803 (1,618)
410 Provision for deferred income taxes (812) 8,884
411 Provision for deferred income taxes --
credit (4,861) (7,142)
411.5 Investment tax credit -- --
426.1 Donations 187 153
426.5 Other deductions 477 265
427 Interest on long-term debt -- --
430 Interest on debt to associate
companies -- --
431 Other interest expense 505 269
--------- ---------
Total Expense 361,588 409,873
--------- ---------
Net Income or (Loss) $ -- $ --
========= =========
<PAGE>
21
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
- --------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
457-1 457-2 457-3
- --------------------------------------------------------------------------------
NUCLEAR RELATED ACTIVITIES
GPU SERVICE, INC $ 307 $ - $ -- $ 307
GPU GENERATION, INC 834 -- -- 834
JERSEY CENTRAL POWER
& LIGHT COMPANY 172,576 21,382 -- 193,958
METROPOLITAN EDISON COMPANY 97,292 8,695 -- 105,987
PENNSYLVANIA ELECTRIC COMPANY 49,140 4,347 -- 53,487
SAXTON NUCLEAR EXP. CORP 3,885 164 -- 4,049
-------- ------ -------- --------
SUBTOTAL 324,034 34,588 -- 358,622
NON-NUCLEAR RELATED ACTIVITIES
GPU GENERATION, INC 1,764 -- -- 1,764
JERSEY CENTRAL POWER
& LIGHT COMPANY 106 158 -- 264
METROPOLITAN EDISON COMPANY 44 316 -- 360
PENNSYLVANIA ELECTRIC COMPANY 165 158 -- 323
-------- ------ -------- --------
SUBTOTAL 2,079 632 -- 2,711
TOTAL $326,113 $ 35,220 $ -- $361,333
======== ======= ======== ========
<PAGE>
22
<TABLE>
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
<CAPTION>
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
DIRECT INDIRECT COMPENSATION EXCESS
COSTS COSTS FOR USE TOTAL OR TOTAL
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY AMOUNT
------- -------- ------------ ---- ----------
458-1 458-2 458-3 458-4 BILLED
- -------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
* PECO Energy Company $52 $10 - $ 62 $(22) $ 40
* Pennsylvania Power & Light Company 24 4 - 28 6 34
* Various - Including System Lab 16 3 - 19 11 30
$92 $17 - $109 $ (5) $104
== == === === === ===
</TABLE>
<PAGE>
23
<TABLE>
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
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
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES $104,358 $ 7,948 $112,306 $ 87 $ 16 $ 103 $104,445 $ 7,964 $112,409
921 OFFICE SUPPLIES AND EXPENSES 97,874 4,508 102,382 5 1 6 97,879 4,509 102,388
922 ADMINISTRATIVE EXPENSE
TRANSFERRED - CREDIT 33,521 2,191 35,712 - - - 33,521 2,191 35,712
923 OUTSIDE SERVICES EMPLOYED 37,981 17,259 55,240 - - - 37,981 17,259 55,240
924 PROPERTY INSURANCE - 25 25 - - - - 25 25
925 INJURIES AND DAMAGES 1,027 98 1,125 - - - 1,027 98 1,125
926 EMPLOYEE PENSIONS AND BENEFITS 25,335 1,865 27,200 - - - 25,335 1,865 27,200
928 REGULATORY COMMISSION EXPENSE - - - - - - - - -
930.1 GENERAL ADVERTISING EXPENSES - - - - - - - - -
930.2 MISCELLANEOUS GENERAL EXPENSES 10,813 9 10,822 - - - 10,813 9 10,822
931 RENTS 6,794 83 6,877 - - - 6,794 83 6,877
932 MAINTENANCE OF STRUCTURES AND
EQUIPMENT - - - - - - - - -
403 DEPRECIATION AND AMORTIZATION
EXPENSE - - - - - - - - -
408 TAXES OTHER THAN INCOME TAXES 7,895 596 8,491 - - - 7,895 596 8,491
409 INCOME TAXES - 5,803 5,803 - - - - 5,803 5,803
410 PROVISION FOR DEFERRED INCOME
TAXES - (812) (812) - - - - (812) (812)
411 PROVISION FOR DEFERRED INCOME
TAXES - CREDIT - (4,861) (4,861) - - - - (4,861) (4,861)
411.5 INVESTMENT TAX CREDIT - - - - - - - - -
426.1 DONATIONS 184 3 187 - - - 184 3 187
426.5 OTHER DEDUCTIONS 477 - 477 - - - 477 - 477
427 INTEREST ON LONG-TERM DEBT - - - - - - - - -
431 OTHER INTEREST EXPENSE - 505 505 - - - - 505 505
<FN>
INSTRUCTION: Total cost of service will equal for associate and nonassociate
companies the total amount billed under their separate analysis of
billing schedules.
</FN>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TOTAL EXPENSES = 326,259 35,220 361,479 92 17 109 326,351 35,237 361,588
------- ------ ------- -- -- --- ------- ------ -------
COMPENSATION FOR USE OF
EQUITY CAPITAL = - - - - - - - - -
------- ------ ------- -- -- --- ------- ------ -------
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES = - - - - - - - - -
------- ------ ------- -- -- --- ------- ------ -------
TOTAL COST OF SERVICE = $326,259 $35,220 $361,479 $ 92 $ 17 $ 109 $326,351 $35,237 $361,588
- ---------------------------------- ======= ====== ======= == == === ======= ====== =======
</TABLE>
<PAGE>
24
<TABLE>
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
D E P A R T M E N T OR S E R V I C E F U N C T I O N
<CAPTION>
TOTAL OFFICE OF OYSTER THREE MILE
D E S C R I P T I O N O F I T E M S AMOUNT OVERHEAD PRESIDENT CREEK ISLAND
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES $ 112,409 $ 7,964 $ 993 $ 22,401 $ 24,194
921 OFFICE SUPPLIES AND EXPENSES 102,388 4,509 349 6,547 9,506
922 ADMINISTRATIVE EXPENSE TRANSFERRED -
CREDIT 35,712 2,191 (2) 26 --
923 OUTSIDE SERVICES EMPLOYED 55,240 17,259 377 2,023 12,706
924 PROPERTY INSURANCE 25 25 -- -- --
925 INJURIES AND DAMAGES 1,125 98 10 215 223
926 EMPLOYEE PENSIONS AND BENEFITS 27,200 1,865 252 5,296 5,532
928 REGULATORY COMMISSION EXPENSE -- -- -- -- --
930.1 GENERAL ADVERTISING EXPENSE -- -- -- -- --
930.2 MISCELLANEOUS GENERAL EXPENSES 10,822 9 2,372 6 16
931 RENTS 6,877 83 2 400 483
932 MAINTENANCE OF STRUCTURES AND
EQUIPMENT -- -- -- -- --
403 DEPRECIATION AND AMORTIZATION
EXPENSE -- -- -- -- --
408 TAXES OTHER THAN INCOME TAXES 8,491 596 79 1,671 1,738
409 INCOME TAXES 5,803 5,803 -- -- --
410 PROVISION FOR DEFERRED INCOME TAXES (812) (812) -- -- --
411 PROVISION FOR DEFERRED INCOME TAXES
- CREDIT (4,861) (4,861) -- -- --
411.5 INVESTMENT TAX CREDIT -- -- -- -- --
426.1 DONATIONS 187 3 170 -- --
426.5 OTHER DEDUCTIONS 477 -- 17 -- --
427 INTEREST ON LONG-TERM DEBT -- -- -- -- --
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES -- -- -- -- --
431 OTHER INTEREST EXPENSE 505 505 -- -- --
<FN>
INSTRUCTION: Indicate each department or
service function. (See Instruc-
tion 01-3 General Structure of
Accounting System: Uniform
System Account)
</FN>
<S> <C> <C> <C> <C> <C> <C>
TOTAL EXPENSES = $ 361,588 $ 35,237 $ 4,619 $38,58 $ 54,398
---------------------------------- ========= ========= ========= ========= =========
</TABLE>
<PAGE>
25
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
- --------------------------------------------------------------------------------
D E P A R T M E N T OR S E R V I C E F U N C T I O N
- --------------------------------------------------------------------------------
NUCLEAR SAFETY FINANCIAL HUMAN
ACCOUNT & TECHNICAL & PLANNING & ADMIN
NUMBER ENGINEERING SERVICES SERVICES SERVICES
- --------------------------------------------------------------------------------
920 $ 26,596 $ 19,947 $ 790 $ 9,524
921 30,215 2,701 46,144 2,417
922 34,088 - (597) 6
923 17,299 3,999 442 1,135
924 - - - -
925 271 210 6 92
926 6,669 5,124 (488) 2,950
928 - - - -
930.1 - - - -
930.2 36 8,369 11 3
931 19 100 5,882 (92)
932 - - - -
403 - - - -
408 2,106 1,545 47 709
409 - - - -
410 - - - -
411 - - - -
411.5 - - - -
426.1 - - 13 1
426.5 - 211 249 -
427 - - - -
430 - - - -
431 - - - -
TOTAL $ 117,299 $ 42,206 $ 52,499 $16,745
- ------ ======= ====== ======= ======
<PAGE>
26
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
- --------------------------------------------------------------------------------
DEPARTMENTAL SALARY EXPENSE
------------------------------------------
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO NUMBER
- -------------------------------------------------------------------- PERSONNEL
Indicate each department TOTAL PARENT OTHER NON END OF
or service function. AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
- --------------------------------------------------------------------------------
Office of President $ 1,993 - $ 1,993 $ - 25
Oyster Creek 22,407 - 22,407 - 318
Three Mile Island 24,195 - 24,195 - 368
Engineering 27,178 - 27,156 22 373
Nuclear Safety & Technical
Services 22,365 - 22,284 81 311
Financial & Planning Services 2,397 - 2,397 - 27
Human & Administrative
Services 11,874 - 11,874 - 305
TOTAL $112,409 - $112,306 $ 103 1,727
======= === ======= ===== =====
<PAGE>
27
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
Legal
- -----
Shaw, Pittman, Potts Legal fees associated with Oyster NA $ 183
& Trowbridge Creek and TMI-1 licensing.
Winston and Strawn Legal fees associated with Oyster NA 114
Creek and TMI-1 licensing.
19 Firms (Less than
$100,000) Not applicable. NA 312
----
Subtotal 609
----
Engineering
- -----------
Altran Corporation Motor operated valve support. NA 288
EQE Engineering
Consultants Mechanical/Structural support. NA 203
Framatome Cogema Fuels Nuclear fuels activities. NA 779
Les Engineering
Services Design engineering. NA 172
Lynch, Giuliano & Forked River dredging. NA 125
Associates, Inc.
MPR Associates Mechanical/Structural support. NA 336
Parsons Power Group Mechanical/Structural support. NA 428
Polestar Applied QCL Process review. NA 308
Technology, Inc.
Raytheon Engineers & Saxton support. NA 722
Constructors
<PAGE>
27
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
Engineering (Continued)
- -----------------------
Sargent & Lundy Replace heating boiler. NA 229
Sequoia Consulting
Group,Inc. Maintenance support. NA 117
Thetis Systems, Inc. Mechanical/Structural support. NA 115
Vectra Technologies Design engineering. NA 175
34 Firms (Less than
$100,000) Not applicable. NA 1,000
-----
Subtotal 4,997
------
Other Professional/Outside Services
- -----------------------------------
A-T Childrens Project Radwaste removal. NA 600
Barnegat Bay Dredging Forked River dredging. NA 598
Company, Inc.
Bartlett Nuclear Refueling outage support. NA 967
Brady & Associates Teambuilding and executive NA 353
coaching services.
Brand Fire Protection Thermo-Lag material. NA 468
Services, Inc.
Chem-Nuclear Systems Radwaste removal. NA 713
Crane Movats TMI-1 preventive maintenance. NA 146
Dave's Office
Installations Building services. NA 129
<PAGE>
27B
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee and
included within one subaccount is less than $100,000, only
the aggregate number and amount of all such payments included
within the subaccount need be shown. Provide a subtotal for
each type of service.
- --------------------------------------------------------------------------------
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"- NON AMOUNT
ASSOCIATE
- --------------------------------------------------------------------------------
Other Professional/Outside Services (Continued)
- -----------------------------------------------
Deist Associates, Inc. NSCC Contractors. NA 315
Diversified Environ- Operations support - TMI-2 NA 243
mental Services monitored storage.
Ecolochem, Inc. Water treatment - TMI. NA 149
Electric Power Research Nuclear fuels activities. NA 927
Institute
Framatome Technologies,
Inc. Outage support. NA 9,521
General Electric TMI-1 refueling outage. NA 2,512
GPU Generation Plant maintenance. A 520
GPU Service Corporate and information services. A 16,055
The Hartford Steam
Boiler ISI inspections. NA 172
Hopper and Associates Site support. NA 160
Interstate Nuclear
Services Outage support. NA 405
Joule Temporaries Temporary employment services. NA 335
J.R.H. Elec. - Mech. Building services. NA 137
Contracting Corp.
<PAGE>
27C
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed. If
the aggregate amounts paid to any one payee and included within
one subaccount is less than $100,000, only the aggregate number
and amount of all such payments included within the subaccount
need be shown. Provide a subtotal for each type of service.
- --------------------------------------------------------------------------------
RELATIONSHIP
"A"=ASSOCIATE
FROM WHOM PURCHASED TYPE OF SERVICE/LARGEST INVOICE "NA"- NON AMOUNT
ASSOCIATE
- --------------------------------------------------------------------------------
Other Professional/Outside Services (Continued)
- -----------------------------------------------
Master-Lee Energy
Services Main condenser installation. NA 211
Maxie Flats Site IRP,
L.L.C. Saxton - O&M. NA 153
NPS Energy Services Turbine inspection. NA 1,440
Raytheon Nuclear Outage support. NA 7,027
Science Applications Oyster Creek computer upgrade. NA 223
International
Technology Support
Services Outage support. NA 113
Thomas L. Gerber, Inc. Services provided as a member of NA 112
the General Office Review Board.
TLG Services, Inc. Site characterization. NA 239
Xerox Reprographics services. NA 233
Yis TMI instrumentation maintenance. NA 133
776 Firms Not applicable. NA ,318
(Less than $100,000)
1 Firm (Less than
$100,000) Not applicable. A 7
------
Subtotal 49,634
------
TOTAL $55,240
<PAGE>
28
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
HOSPITAL, SURGICAL, MEDICAL AND DENTAL INSURANCE $ 9,248
PENSION PLAN 5,923
O.P.E.B. - HEALTH INSURANCE 5,494
EMPLOYEE SAVINGS PLAN 3,099
LONG-TERM DISABILITY 1,172
O.P.E.B. - LIFE INSURANCE 764
CAFETERIA SUPPLEMENT 502
EDUCATIONAL REIMBURSEMENT 253
SAFETY & HEALTH PROGRAMS 244
EMPLOYEE ASSOC. & ACTIVITIES 155
EMPLOYEE ASSISTANCE PROGRAM 116
LIFE INSURANCE 83
FLEXIBLE SPENDING ADMINISTRATION 27
OTHER BENEFITS (Under $25,000) 120
------- ---
TOTAL $27,200
=======
<PAGE>
29
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
NONE
----
TOTAL -
=====
<PAGE>
30
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
Licenses
- --------
United States Nuclear Regulatory Commission $ 7,679
PA Department of Environmental Resources 400
PA Emergency Management Agency 200
Dues and Memberships 2,543
-------------------- -----
TOTAL $10,822
=======
<PAGE>
31
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
COMPUTERS $ 3,166
BUILDINGS AND TRAILERS 2,826
DUPLICATING EQUIPMENT 577
MOBILE EQUIPMENT 95
MISCELLANEOUS 213
------
TOTAL $ 6,877
======
<PAGE>
32
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
KIND OF TAX AMOUNT
- --------------------------------------------------------------------------------
(1) OTHER THAN U.S. GOVERNMENT TAXES
--- --------------------------------
Pennsylvania Unemployment Insurance $ 118
New Jersey Unemployment Insurance 194
Sales and Use Tax (Pennsylvania) 5
-----
Sub Total 317
-----
(2) TAXES - U.S. GOVERNMENT
--- -----------------------
FICA 8,065
Federal Unemployment Insurance 109
Sub Total 8,174
-----
TOTAL $ 8,491
=======
<PAGE>
33
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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 COMMUNITY SERVICES $ 25
HOMES FOR ALL, INC. COMMUNITY SERVICES 4
CHILDREN'S PLAY ROOM, INC. COMMUNITY SERVICES 3
74 ORGANIZATIONS (LESS THAN $3,000) COMMUNITY SERVICES 40
PENN STATE UNIVERSITY EDUCATION 21
ELIZABETHTOWN COLLEGE EDUCATION 3
22 ORGANIZATIONS (LESS THAN $3,000) EDUCATION 21
34 ORGANIZATIONS (LESS THAN $3,000) EMERGENCY AND HEALTH SERVICES 38
VARIOUS ACTIVITIES OTHER 32
---
TOTAL $187
====
<PAGE>
34
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
- --------------------------------------------------------------------------------
TMI-1 FINE UNITED STATES TREASURY $210
LOBBYING EXPENSE EMPLOYEE WAGES &
EXPENSES 164
SETTLEMENT CLAIMS VARIOUS EMPLOYEES 48
OTHER CIVIC ACTIVITIES VARIOUS 55
---
TOTAL $477
====
<PAGE>
35
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
- --------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish particulars
as to any significant increase in services rendered or expenses
incurred during the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here by
reference.
- --------------------------------------------------------------------------------
NONE
<PAGE>
36
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
ORGANIZATION CHART
----------------------------------------
| |
| |
----| |
| | BOARD OF DIRECTORS |
|----| |
| |----------------------------------------|
| | |
|___| PRESIDENT |
| |----------------------------------------|
| | |
|-| V.P. OYSTER CREEK |
| |----------------------------------------|
|-| |
| | V.P. THREE MILE ISLAND |
| |----------------------------------------|
|-| |
| | V.P. ENGINEERING |
| |----------------------------------------|
|-| |
| |V.P. NUCLEAR SAFETY & TECHNICAL SERVICES|
| |----------------------------------------|
|-| |
| | V.P. HUMAN & ADMINISTRATIVE SERVICES |
| |----------------------------------------|
|-| |
| | COMPTROLLER |
| | FINANCIAL & PLANNING SERVICES |
|-|----------------------------------------|
<PAGE>
37
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
METHODS OF ALLOCATION
- --------------------------------------------------------------------------------
The allocation of expenses not directly attributable to a particular
nuclear station are based, by division, on the direct charging of that
division's manpower. When corporate costs have been allocated to the plants, a
fixed rate is calculated to apply to total direct costs. This rate is derived by
dividing the estimated corporate costs by the estimated plant direct costs. The
overhead rate is reviewed periodically and revised as appropriate to fully
allocate costs by year-end.
<PAGE>
38
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
- --------------------------------------------------------------------------------
NONE
<PAGE>
39
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
Pursuant to the provisions contained in the Securities and Exchange Commission
(SEC) order dated September 14, 1990 for SEC File No. 70-7720, GPU Nuclear
provided certain laboratory services to Jersey Central Power & Light Company,
Metropolitan Edison Company and Pennsylvania Electric Company in 1997 in support
of their generating stations, transmission and distribution divisions and other
non-nuclear functions. Revenues realized in 1997 from providing these services
are shown separately under "Non-Nuclear Related Activities" on page 21 of this
report.
Pursuant to the provisions contained in the SEC order dated May 7, 1997 for SEC
File No. 70-8425, GPU Nuclear did not enter into any transactions or recognize
any revenues in 1997 for activities related to non-nuclear technical, training,
management or consulting services to associated companies.
Pursuant to the provisions contained in the SEC orders dated August 29, 1990 for
SEC File No. 70-7675, November 6, 1991 for SEC File No. 70-7847, January 31,
1992 for SEC File No. 70-7905, May 21, 1993 for SEC File No. 70-8115 and October
17, 1994 for SEC File No. 70-8393, the following are descriptions of services
provided to Non-Affiliated Entities. Revenues realized in 1997 from providing
these services are shown separately on page 22 of this report.
Brief Descriptions of Services Rendered to Nonassociated Companies
------------------------------------------------------------------
Nonassociated Company Description
- --------------------- -----------
PECO Energy Company Environmental lab services
Pennsylvania Power & Light Company Provide outage support of the
Susquehanna Nuclear Plant.
Various Includes various chemical/material
Laboratory analyses.
<PAGE>
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1997
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 NUCLEAR, INC.
---------------------------
(Name of Reporting Company)
By: /s/ D. M. Furlong
--------------------------
(Signature of Signing Officer)
D. M. Furlong, Comptroller
-----------------------------------------
(Printed Name and Title of Signing Officer)
Date: April 20, 1998
--------------
<TABLE> <S> <C>
<ARTICLE> OPUR2
<CIK> 0000722766
<NAME> GPU NUCLEAR, INC.
<MULTIPLIER> 1,000
<CURRENCY> US DOLLARS
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 0
<TOTAL-INVESTMENTS> 1,529
<TOTAL-CURRENT-ASSETS> 52,144
<TOTAL-DEFERRED-DEBITS> 28,831
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 82,504
<TOTAL-PROPRIETARY-CAPITAL> 50
<TOTAL-LONG-TERM-DEBT> 0
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 68,779
<TOTAL-DEFERRED-CREDITS> 13,007
<DEFERRED-INCOME-TAX> 668
<TOT-LIABIL-AND-PROPRIET-CAP> 82,504
<SERVICES-ASSOCIATE-COMPANIES> 361,333
<SERVICES-NON-ASSOCIATE-COMP> 104
<MISC-INCOME-OR-LOSS> 151
<TOTAL-INCOME> 361,588
<SALARIES-AND-WAGES> 112,409
<EMPLOYEE-PENSION-AND-BENEFIT> 27,200
<OTHER-EXPENSES> 221,979
<TOTAL-EXPENSES> 361,588
<NET-INCOME> 0
<TOTAL-EXPENSES-DIRECT-COST> 326,351
<TOTAL-EXPENSES-INDIRECT-COST> 35,237
<TOT-EXP-DIRECT-AND-INDIRECT> 361,588
<PERSONNEL-END-OF-YEAR> 1,727
<FN>
</FN>
</TABLE>
