Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1998 and Ending December 31, 1998
--------------------- -----------------------
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) $ - $ -
107 Construction work in
progress (Schedule II) - -
Total Property - -
------ ------
108 Less accumulated provision
for depreciation
and amortization of service company
property (Schedule III) - -
------ ------
Net Service Company Property - -
INVESTMENTS
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) 1,467 1,529
- --- ----- -----
Total Investments 1,467 1,529
CURRENT AND ACCRUED ASSETS
131 Cash - -
134 Special deposits 317 390
135 Working funds 55 75
136 Temporary cash investments (Schedule IV) - -
141 Notes receivable - -
143 Accounts receivable 2,714 2,129
144 Accumulated provision for
uncollectible accounts - -
146 Accounts receivable from associate companies
(Schedule V) 61,730 49,549
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed
(Schedule VII) - -
165 Prepayments - 1
174 Miscellaneous current and
accrued assets (Schedule VIII) - -
------ ------
Total Current and Accrued Assets 64,816 52,144
DEFERRED DEBITS
181 Unamortized debt expense - -
184 Clearing accounts 84 37
186 Miscellaneous deferred debits (Schedule IX)
1,312 1,079
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 31,876 27,715
------ ------
Total Deferred Debits 33,272 28,831
------ ------
TOTAL ASSETS AND OTHER DEBITS $ 99,555 $ 82,504
====== ======
<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 42,457 42,912
233 Notes payable to associate
companies (Schedule XIII) - -
234 Accounts payable to associate companies
(Schedule XIII) 12,362 2,744
236 Taxes accrued 2,149 1,600
237 Interest accrued 718 417
238 Dividends declared - -
241 Tax collections payable 180 145
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 21,025 20,961
------ ------
Total Current and Accrued Liabilities 78,891 68,779
------ ------
DEFERRED CREDITS
253 Other deferred credits 19,946 13,007
- --- ------ ------
255 Accumulated deferred investment tax credits - -
Total Deferred Credits 19,946 13,007
------ ------
282 ACCUMULATED DEFERRED INCOME TAXES 668 668
--------------------------------- ------ ------
TOTAL LIABILITIES AND PROPRIETARY
CAPITAL $99,555 $82,504
====== ======
<PAGE>
6
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
SCHEDULE II - SERVICE COMPANY PROPERTY
BALANCE AT RETIREMENTS OTHER BALANCE AT
BEGINNING ADDITIONS OR CHANGES 1/ CLOSE OF
DESCRIPTION OF YEAR SALES YEAR
SERVICE COMPANY PROPERTY
Account
301 ORGANIZATION $ - $ - $ - $ - $ -
303 MISCELLANEOUS
INTANGIBLE PLANT
304 LAND AND LAND RIGHT
305 STRUCTURES AND
IMPROVEMENTS
306 LEASEHOLD
IMPROVEMENTS
307 EQUIPMENT 2/ - - - - -
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 - - - - -
----- ---- ---- ---- ----
107 CONSTRUCTION WORK
IN PROGRESS 4/
TOTAL $ - $ - $ - $ - $ -
===== ==== ==== ==== ====
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
<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
S U B A C C O U N T D E S C R I P T I O N ADDITIONS YEAR
- ------------------------------------------------------------------------------
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
N/A
4/ DESCRIBE CONSTRUCTION WORK IN PROGRESS:
N/A
<PAGE>
8
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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
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
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
N/A
<PAGE>
9
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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
D E S C R I P T I O N 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 950 950
HEALTH CARE RESERVE 276 214
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
NONE
------ ------
TOTAL $1,529 $1,467
===== =====
<PAGE>
10
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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
D E S C R I P T I O N BEGINNING CLOSE OF
OF YEAR YEAR
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE
COMPANIES
JERSEY CENTRAL POWER & LIGHT COMPANY $12,676 $15,581
METROPOLITAN EDISON COMPANY 28,275 36,934
PENNSYLVANIA ELECTRIC COMPANY 8,160 5,926
GPU GENERATION, INC. 368 3,153
GPU INTERNATIONAL, INC. 70 136
TOTAL $49,549 $61,730
====== ======
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
---------
NONE
<PAGE>
11
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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.
D E S C R I P T I O N LABOR EXPENSES TOTAL
ACCOUNT 152 - FUEL STOCK EXPENSES UNDISTRIBUTED
NONE
SUMMARY:
<PAGE>
12
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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.
D E S C R I P T I O N LABOR EXPENSES TOTAL
ACCOUNT 163 - STORES EXPENSE UNDISTRIBUTED $ 4,951 $ 1,084 $ 6,035
JERSEY CENTRAL POWER & LIGHT CO. (3,167) (597) (3,764)
METROPOLITAN EDISON CO. (1,189) (325) (1,514)
PENNSYLVANIA ELECTRIC CO. (595) (162) (757)
NOTE: Stores expenses are billed back to the
associated companies in the month incurred.
TOTAL $ - $ - $ -
====== ====== ======
<PAGE>
13
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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
D E S C R I P T I O N 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, 1998
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
D E S C R I P T I O N 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 $ 300 $ -
Restricted Stock Program - Deferral 751 681
Babcock & Wilcox Owners' Group -
Deferred Costs 17 17
Provide Services to Public Service
of Colorado in connection with
Ft. St. Vrain - Deferred Costs 11 11
TMI-1 Divestiture Incremental Cost - 603
TOTAL $1,079 $1,312
===== =====
<PAGE>
15
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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.
D E S C R I P T I O N AMOUNT
ACCOUNT 188-RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES
B&W Owners Group Activities $ 1,919
EPRI Dues 1,229
EPRI R&D Program 373
BWR Owners Group Activities 302
Robotics 126
Jersey Central Power & Light Company (1,840)
Metropolitan Edison Company (1,406)
Pennsylvania Electric Company (703)
NOTE: Research and development expenses are
billed back to the associate companies
in the month incurred.
TOTAL $ -
=======
<PAGE>
<TABLE>
<CAPTION>
16
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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
===== == ===== ==
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of
transactions which gave rise to the reported amounts.
D E S C R I P T I O N AMOUNT
<S> <C> <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.
BALANCE AT NET INCOME BALANCE AT
D E S C R I P T I O N BEGINNING OR DIVIDENDS CLOSE OF
OF YEAR (LOSS) PAID YEAR
ACCOUNT 216 -- UNAPPROPRIATED RETAINED EARNINGS
NONE
* In Whole Dollars
</FN>
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
17
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
SCHEDULE XII- LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be
reported separately for advances on notes, and advances
on open account. Names of associate companies from which
advances were received shall be shown under the class
and series of obligation column. For Account 224 - Other
long term debt provide the name of creditor company or
organization, terms of the obligation, date of maturity,
interest rate, and the amount authorized and
outstanding.
<S> <C> <C> <C> <C> <C> <C> <C> <C>
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> <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, 1998
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
D E S C R I P T I O N BEGINNING CLOSE OF
OF YEAR YEAR
ACCOUNT 233 --NOTES PAYABLE TO ASSOCIATE COMPANIES
NONE
ACCOUNT 234 --ACCOUNTS PAYABLE TO ASSOCIATE
COMPANIES
GPU SERVICE, INC. $2,541 $12,343
GPU, INC. 203 19
TOTAL $2,744 $12,362
===== ======
ACCOUNT 242-- MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
ACCRUALS -- OFFICERS DEFERRED COMPENSATION $ 1,801 $ 1,214
-- INSURANCE 657 (397)
-- VACATION PAY 11,098 11,607
-- SICK PAY 905 888
-- BONUS PAY/INCENTIVE COMPENSATION 6,267 7,611
-- SEVERANCE PAY 232 102
-- OTHER ACCRUED LIABILITIES 1 -
------- -------
TOTAL $20,961 $21,025
====== ======
<PAGE>
19
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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>
<TABLE>
<CAPTION>
20
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
SCHEDULE XV
STATEMENT OF INCOME
ACCOUNT D E S C R I P T I O N CURRENT YEAR PRIOR YEAR
INCOME
<S> <C> <C> <C>
457 Services rendered to associate companies $368,742 $361,333
458 Services rendered to nonassociate
companies 157 104
421 Miscellaneous income or loss 102 151
------- -------
Total Income 369,001 361,588
------- -------
EXPENSE
920 Salaries and wages 116,639 112,409
921 Office supplies and expenses 100,907 102,388
922 Administrative expense transferred --
credit 32,874 35,712
923 Outside services employed 65,105 55,240
924 Property insurance 8 25
925 Injuries and damages 747 1,125
926 Employee pensions and benefits 28,910 27,200
928 Regulatory commission expense - -
930.1 General advertising expenses - -
930.2 Miscellaneous general expenses 10,234 10,822
931 Rents 4,475 6,877
932 Maintenance of structures and equipment - -
403 Depreciation and amortization expense - -
408 Taxes other than income taxes 8,557 8,491
409 Income taxes 2,825 5,803
410 Provision for deferred income taxes 2,379 (812)
411 Provision for deferred income taxes --
credit (5,618) (4,861)
411.5 Investment tax credit - -
426.1 Donations 183 187
426.5 Other deductions 377 477
427 Interest on long-term debt - -
430 Interest on debt to associate
companies - -
431 Other interest expense 399 505
------- -------
Total Expense 369,001 361,588
------- -------
--------- -------
Net Income or (Loss) $ - $ -
======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
21
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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
<S> <C> <C> <C>
GPU SERVICE, INC. $ 263 $ - $ - $ 263
GPU GENERATION, INC. 714 35 - 749
JERSEY CENTRAL POWER
& LIGHT COMPANY 223,487 16,825 - 240,312
METROPOLITAN EDISON COMPANY 69,844 6,640 - 76,484
PENNSYLVANIA ELECTRIC COMPANY 35,458 3,319 - 38,777
SAXTON NUCLEAR EXP. CORP. 9,553 169 - 9,722
------- ------ ------ -------
SUBTOTAL 339,319 26,988 - 366,307
NON-NUCLEAR RELATED ACTIVITIES
GPU GENERATION, INC. 1,992 77 - 2,069
JERSEY CENTRAL POWER
& LIGHT COMPANY 143 - - 143
METROPOLITAN EDISON COMPANY 60 1 - 61
PENNSYLVANIA ELECTRIC COMPANY 162 - - 162
------- ------ ------ -------
SUBTOTAL 2,357 78 - 2,435
TOTAL $341,676 $27,066 $ - $368,742
======= ====== ====== =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
22
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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 $56 $ 9 - $ 65 $(31) $ 34
* Various - Including System Lab 65 - - 65 58 123
$121 $ 9 - $130 $ 27 $157
=== == === ==== ===== =====
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
23
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
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 $109,636 $ 6,876 $116,512 $118 $ 9 $ 127 $109,754 $ 6,885 $116,639
921 OFFICE SUPPLIES AND EXPENSES 97,497 3,407 100,904 3 - 3 97,500 3,407 100,907
922 ADMINISTRATIVE EXPENSE
TRANSFERRED - CREDIT 30,797 2,077 32,874 - - - 30,797 2,077 32,874
923 OUTSIDE SERVICES EMPLOYED 52,534 12,571 65,105 - - - 52,534 12,571 65,105
924 PROPERTY INSURANCE - 8 8 - - - - 8 8
925 INJURIES AND DAMAGES 694 53 747 - - - 694 53 747
926 EMPLOYEE PENSIONS AND BENEFITS 27,431 1,479 28,910 - - - 27,431 1,479 28,910
928 REGULATORY COMMISSION EXPENSE - - - - - - - - -
930.1 GENERAL ADVERTISING EXPENSES - - - - - - - - -
930.2 MISCELLANEOUS GENERAL EXPENSES 10,222 12 10,234 - - - 10,222 12 10,234
931 RENTS 4,390 85 4,475 - - - 4,390 85 4,475
932 MAINTENANCE OF STRUCTURES AND
EQUIPMENT - - - - - - - - -
403 DEPRECIATION AND AMORTIZATION
EXPENSE - - - - - - - - -
408 TAXES OTHER THAN INCOME TAXES 8 044 513 8,557 - - - 8 044 513 8,557
409 INCOME TAXES - 2,825 2,825 - - - - 2,825 2,825
410 PROVISION FOR DEFERRED INCOME
TAXES - 2,379 2,379 - - - - 2,379 2,379
411 PROVISION FOR DEFERRED INCOME
TAXES - CREDIT - (5,618) (5,618) - - - - (5,618) (5,618)
411.5 INVESTMENT TAX CREDIT - - - - - - - - -
426.1 DONATIONS 183 - 183 - - - 183 - 183
426.5 OTHER DEDUCTIONS 377 - 377 - - - 377 - 377
427 INTEREST ON LONG-TERM DEBT - - - - - - - - -
431 OTHER INTEREST EXPENSE - 399 399 - - - - 399 399
<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>
TOTAL EXPENSES = 341,805 27,066 368,871 121 9 130 341,926 27,075 369,001
------- ------ ------- --- -- --- ------- ------ -------
COMPENSATION FOR USE OF - - - - - - - - -
EQUITY CAPITAL = ------- ------ ------- --- -- --- ------- ------ -------
430 INTEREST ON DEBT TO ASSOCIATE - - - - - - - - -
COMPANIES = ------- ------ ------- --- -- --- ------- ------ -------
TOTAL COST OF SERVICE = $341,805 $27,066 $368,871 $121 $ 9 $ 130 $341,926 $27,075 $369,001
- ------------------------------------- ======= ======= ======== ==== ==== ===== ======== ======= =======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
24
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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
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> <C>
920 SALARIES AND WAGES $116,639 $ 6,885 $4,375 $34,980 $27,357
921 OFFICE SUPPLIES AND EXPENSES 100,907 3,407 615 9,850 7,215
922 ADMINISTRATIVE EXPENSE
TRANSFERRED - CREDIT 32,874 2,077 - - -
923 OUTSIDE SERVICES EMPLOYED 65,105 12,571 1,228 15,631 3,256
924 PROPERTY INSURANCE 8 8 - - -
925 INJURIES AND DAMAGES 747 53 30 196 182
926 EMPLOYEE PENSIONS AND BENEFITS 28,910 1,479 1,001 6,643 6,149
928 REGULATORY COMMISSION EXPENSE - - - - -
930.1 GENERAL ADVERTISING EXPENSE - - - - -
930.2 MISCELLANEOUS GENERAL EXPENSES 10,234 12 6,352 1 9
931 RENTS 4,475 85 1 692 567
932 MAINTENANCE OF STRUCTURES AND
EQUIPMENT - - - - -
403 DEPRECIATION AND AMORTIZATION
EXPENSE - - - - -
408 TAXES OTHER THAN INCOME TAXES 8,557 513 350 2,310 2,153
409 INCOME TAXES 2,825 2,825 - - -
410 PROVISION FOR DEFERRED INCOME TAXES 2,379 2,379 - - -
411 PROVISION FOR DEFERRED INCOME TAXES
- CREDIT (5,618) (5,618) - - -
411.5 INVESTMENT TAX CREDIT - - - - -
426.1 DONATIONS 183 - 171 - -
426.5 OTHER DEDUCTIONS 377 - 56 - 1
427 INTEREST ON LONG-TERM DEBT - - - - -
430 INTEREST ON DEBT TO ASSOCIATE
COMPANIES - - - - -
431 OTHER INTEREST EXPENSE 399 399 - - -
<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>
TOTAL EXPENSES = $369,001 $27,075 $14,179 $70,303 $46,889
- ----------------------------------------- ======= ====== ====== ====== ======
</TABLE>
<PAGE>
25
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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
FINANCIAL HUMAN
ACCOUNT & PLANNING & ADMIN
NUMBER ENGINEERING SERVICES SERVICES
920 $ 31,328 $ 297 $11,417
921 28,029 1,957 49,834
922 33,956 - (3,159)
923 22,592 73 9,754
924 - - -
925 219 2 65
926 6,923 144 6,571
928 - - -
930.1 - - -
930.2 3,837 - 23
931 301 621 2,208
932 - - -
403 - - -
408 2,441 22 768
409 - - -
410 - 559 (559)
411 - - -
411.5 - - -
426.1 - - 12
426.5 2 1 318
427 - - -
430 - - -
431 - (399) 399
TOTAL $ 129,628 $ 3,276 $77,651
- ------ ======= ====== ======
<PAGE>
<TABLE>
<CAPTION>
26
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
DEPARTMENTAL SALARY EXPENSE
NUMBER
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO PERSONNEL
Indicate each department TOTAL PARENT OTHER NON END OF
or service function. AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
<S> <C> <C> <C> <C>
Office of President $ 6,265 - $ 6,265 $ - 91
Oyster Creek 35,493 - 35,493 - 447
Three Mile Island 27,426 - 27,327 99 470
Engineering 32,221 - 32,193 28 379
Financial & Planning Services 2,372 - 2,372 - 24
Human & Administrative Services 12,862 - 12,862 - 297
TOTAL $116,639 - $116,512 $ 127 1,708
======= === ======= ===== ======
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
27
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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
<S> <C> <C> <C>
Shaw, Pittman, Potts Legal fees associated with Oyster NA $ 117
& Trowbridge Creek and TMI-1 licensing.
Winston and Strawn Legal fees associated with Oyster NA 113
Creek and TMI-1 licensing.
18 Firms (Less than $100,000) Not applicable. NA 58
Subtotal ------
288
=======
Engineering
Altran Corporation Motor operated valve support. NA 287
Andres V. Du Bouchet Mechanical/Structural support. NA 150
C. W. Allen Associates, Inc. Mechanical/Structural support. NA 132
Chiu International Corp. Engineering support. NA 128
Coulter & Associates Design engineering. NA 129
Consulting
DSI Contract Staffing, Inc. EP&I CC suport. NA 203
Duke Engineering and Outage support. NA 330
Services, Inc.
Enercon Services, Inc. Mechanical/Structural support. NA 315
EQE Engineering Consultants Mechanical/Structural support. NA 265
</TABLE>
<PAGE>
27A
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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)
Finetech, Inc. Radwaste removal. NA 158
Framatome Technologies, Inc. Outage support. NA 2,188
General Electric Company Outage support. NA 6,169
Holtec International Design engineering. NA 1,316
IMC International, Inc. Engineering support. NA 660
Key Technologies, Inc. Design engineering. NA 121
Liquid Solutions & Design engineering. NA 930
Technologies, Inc.
MPR Associates Design engineering. NA 1,366
Parsons Power Group Mechanical/Structural
support. NA 942
Polestar Applied QCL Process review. NA 153
Technology, Inc.
Raytheon Engineers & Engineering support. NA 1,174
Constructors
Sargent & Lundy Engineering support. NA 875
Scientech, Inc. EP&I CC support. NA 140
<PAGE>
27B
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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)
SMS Consulting Group, Inc. QCL support. NA 141
WD Associates, Inc. Engineering support. NA 294
34 Firms (Less than $100,000) Not applicable. NA 642
------
Subtotal 19,208
======
Other Professional/Outside Services
Allied Technology Group, Inc. Radwaste removal. NA 1,935
Bartlett Nuclear, Inc. Refueling outage support. NA 2,117
Brady & Associates Teambuilding and executive NA 314
coaching services.
Brand Fire Protection Thermo-Lag material. NA 715
Services, Inc.
Chem-Nuclear Systems Radwaste removal. NA 3,085
Deist Associates, Inc. NSCC Contractors. NA 408
Delta Prime, Inc. Oyster Creek PRA update. NA 142
Ecolochem, Inc. Water treatment - TMI. NA 198
<PAGE>
<TABLE>
<CAPTION>
27C
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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)
<S> <C> <C> <C>
Electric Power Research Nuclear fuels activities. NA 577
Institute
Engine Systems, Inc. Emergency diesel generator services. NA 123
Erin Engineering & Oyster Creek PRA update. NA 113
Research Inc.
Frank W. Hake, Inc. Radwaste removal. NA 371
General Physics Corp. Onsite general exam training courses. NA 118
George B. Skinner EP&I CC support. NA 143
GPU Generation Plant maintenance. A 644
GPU Service Corporate and information services. A 12,688
GTS Duratek Bear Creek, Inc. Radwaste processing services. NA 548
The Hartford Steam Boiler ISI inspections. NA 175
Interim Career Services Inc. Career development/coaching. NA 150
Interstate Nuclear Services Outage support. NA 294
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
27D
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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)
<S> <C> <C> <C>
J. Davis Consultants, Inc. Consulting services. NA 769
J. Givoo consultants, Inc. Consulting services. NA 473
Manufacturing Sciences Corp. Radwaste processing services. NA 360
Master-Lee Energy Services Main condenser installation. NA 231
Mid-Atlantic Flooring Co. Installation and removal of carpet. NA 152
MMT of Tennessee, Inc. Radwaste removal. NA 410
MQS Inspection, Inc. Nondestructive examination services. NA 127
NPS Energy Services Turbine inspection. NA 309
Pennsylvania State University Inspection Saxton Nuclear plant. NA 120
Pinkerton Computer Software development and support. NA 114
Consultants, Inc.
PLG, Inc. TMI PRA update. NA 192
Raytheon Nuclear, Inc. Outage support. NA 10,751
Richard Cooper Nuclear GORB technical support. NA 151
Consulting
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
27E
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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)
<S> <C> <C> <C>
Scientific Ecology Radwaste processing services. NA 114
Group, Inc.
TLG Services, Inc. Decommissioning planning services. NA 158
United States Roofing Corp. Installation and removal of roof. NA 360
Welding Services, Inc. ISO condenser tube bundle replacement. NA 1,834
The Westwind Group, Inc. Training services. NA 669
Xerox Reprographics services. NA 240
772 Firms Not applicable. NA
(Less than $100,000) 3,217
Subtotal -------
45,609
-------
TOTAL
$65,105
=======
</TABLE>
<PAGE>
28
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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.
D E S C R I P T I O N AMOUNT
HOSPITAL, SURGICAL, MEDICAL AND DENTAL INSURANCE $ 8,509
PENSION PLAN 5,357
O.P.E.B. - HEALTH INSURANCE 5,411
EMPLOYEE SAVINGS PLAN 3,209
O.P.E.B. - LIFE INSURANCE 1,140
CAFETERIA SUPPLEMENT 511
EDUCATIONAL ASSISTANCE 496
EMPLOYEE ASSOC. & ACTIVITIES 166
EMPLOYEE ASSISTANCE PROGRAM 115
LIFE INSURANCE 88
OTHER BENEFITS (Under $25,000) 3,908
TOTAL $28,910
<PAGE>
29
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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.
D E S C R I P T I O N NAME OF PAYEE AMOUNT
----------------------------------------------------------------------------
NONE
TOTAL -
<PAGE>
30
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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.
D E S C R I P T I O N AMOUNT
Licenses
United States Nuclear Regulatory Commission $ 7,465
Federal Emergency Management Agency 920
PA Department of Environmental Resources 401
PA Emergency Management Agency 200
Dues and Memberships 1,248
TOTAL $10,234
<PAGE>
31
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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.
T Y P E O F P R O P E R T Y AMOUNT
-------------------------------------------------------------------------
COMPUTERS $ 1,114
BUILDINGS AND OFFICE SPACE 1,879
DUPLICATING EQUIPMENT 567
MOBILE EQUIPMENT 481
MISCELLANEOUS 434
TOTAL $ 4,475
======
<PAGE>
32
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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.
K I N D O F T A X AMOUNT
(1) OTHER THAN U.S. GOVERNMENT TAXES
Pennsylvania Unemployment Insurance $ 294
New Jersey Unemployment Insurance 192
---
Sub Total 486
---
(2) TAXES - U.S. GOVERNMENT
FICA 7,966
Federal Unemployment Insurance 105
---
Sub Total 8,071
-----
TOTAL $ 8,557
=======
<PAGE>
<TABLE>
<CAPTION>
33
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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
<S> <C> <C>
UNITED WAY COMMUNITY SERVICES $ 23
CHILDREN'S PLAY ROOM, INC. COMMUNITY SERVICES 3
102 ORGANIZATIONS (LESS THAN $3,000) COMMUNITY SERVICES 47
HARRISBURG SENATORS BASEBALL CLUB COMMUNITY SERVICES 7
PENN STATE UNIVERSITY EDUCATION 15
WHITAKER CENTER FOR SCIENCE EDUCATION 11
LACEY TOWNSHIP BOARD OF EDUCATION EDUCATION 5
ELIZABETHTOWN COLLEGE EDUCATION 4
51 ORGANIZATIONS (LESS THAN $3,000) EDUCATION 3
27 ORGANIZATIONS (LESS THAN $3,000) EMERGENCY SERVICES 21
8 ORGANIZATIONS (LESS THAN $3,000) HEALTH SERVICES 10
VARIOUS ACTIVITIES OTHER 34
---
TOTAL $183
=====
</TABLE>
<PAGE>
34
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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
----------------------------------------------------------------------------
CIVIL PENALTY FEE U.S. NUCLEAR REGULATORY $ 55
COMMISSION
LOBBYING EXPENSE EMPLOYEE WAGES &
EXPENSES 171
SETTLEMENT CLAIMS VARIOUS EMPLOYEES 150
OTHER CIVIC ACTIVITIES VARIOUS 1
----
TOTAL $377
====
<PAGE>
35
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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, 1998
ORGANIZATION CHART
----------------------------------------
| |
| |
----| |
| | BOARD OF DIRECTORS |
|----| |
| |----------------------------------------|
| | |
|___| PRESIDENT |
| |----------------------------------------|
| | |
|-| V.P. OYSTER CREEK |
| |----------------------------------------|
|-| |
| | V.P. THREE MILE ISLAND |
| |----------------------------------------|
|-| |
| | V.P. ENGINEERING |
| |----------------------------------------|
|-| |
| | V.P. HUMAN & ADMINISTRATIVE SERVICES |
| |----------------------------------------|
|-| |
| | COMPTROLLER |
| | FINANCIAL & PLANNING SERVICES |
|-|----------------------------------------|
<PAGE>
37
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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, 1998
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
NONE
<PAGE>
39
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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 1998 in support of their generating
stations, transmission and distribution divisions and other non-nuclear
functions. Revenues realized in 1998 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 1998 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 1998 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.
Various Includes various
chemical/material laboratory
analyses.
<PAGE>
ANNUAL REPORT OF GPU NUCLEAR, INC.
For the Year Ended December 31, 1998
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 23, 1999
--------------------------------
<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-31-1998
<PERIOD-START> JAN-01-1998
<PERIOD-END> DEC-31-1998
<EXCHANGE-RATE> 1
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 0
<TOTAL-INVESTMENTS> 1,467
<TOTAL-CURRENT-ASSETS> 64,816
<TOTAL-DEFERRED-DEBITS> 33,272
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 99,555
<TOTAL-PROPRIETARY-CAPITAL> 50
<TOTAL-LONG-TERM-DEBT> 0
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 78,891
<TOTAL-DEFERRED-CREDITS> 19,946
<DEFERRED-INCOME-TAX> 668
<TOT-LIABIL-AND-PROPRIET-CAP> 99,555
<SERVICES-ASSOCIATE-COMPANIES> 368,742
<SERVICES-NON-ASSOCIATE-COMP> 157
<MISC-INCOME-OR-LOSS> 102
<TOTAL-INCOME> 369,001
<SALARIES-AND-WAGES> 116,639
<EMPLOYEE-PENSION-AND-BENEFIT> 28,910
<OTHER-EXPENSES> 223,452
<TOTAL-EXPENSES> 369,001
<NET-INCOME> 0
<TOTAL-EXPENSES-DIRECT-COST> 341,926
<TOTAL-EXPENSES-INDIRECT-COST> 27,075
<TOT-EXP-DIRECT-AND-INDIRECT> 369,001
<PERSONNEL-END-OF-YEAR> 1,708
<FN>
</FN>
</TABLE>
