Amendment No. 2 to
SEC File No. 70-9457
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-l
DECLARATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 ("Act")
PENNSYLVANIA ELECTRIC COMPANY ("Penelec")
2800 Pottsville Pike
Reading, Pennsylvania 19605
(Name of company filing this statement and address
of principal executive office)
GPU, INC. ("GPU")
(Name of top registered holding company parent of applicant)
Terrance G. Howson, Douglas E. Davidson, Esq.
Vice President and Treasurer Berlack, Israels & Liberman LLP
Mary A. Nalewako, Secretary 120 West 45th Street
Michael J. Connolly, New York, New York 10036
Assistant General Counsel
GPU Service, Inc.
300 Madison Avenue
Morristown, New Jersey 07962
Scott L. Guibord, Secretary Robert C. Gerlach, Esq.
Pennsylvania Electric Company Ballard Spahr Andrews &
2800 Pottsville Pike Ingersoll, LLP
Reading, Pennsylvania 19605 1735 Market Street - 51st Floor
Philadelphia, Pennsylvania
19103-7599
(Names and addresses of agents for service)
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Penelec hereby amends its Declaration on Form U-1, docketed in
SEC File No. 70-9457 as follows:
1. By amending paragraph A of Item 1 to read in its
entirety as follows:
Penelec owns and herein requests authority to sell a 20% undivided
interest in the Seneca Pumped Storage Generating Station ("Seneca"), a
435 MW pumped storage hydroelectric generating facility located near
Warren, Pennsylvania to the Cleveland Electric Illuminating Company
("CEI"). CEI, which owns the remaining 80% interest, is a public
utility company providing retail electric service in northeastern Ohio
and is a subsidiary of FirstEnergy Corp. ("FirstEnergy"), an exempt
holding company under the Act. HCAR No. 35-26772 (Nov. 5, 1997).
Penelec is also the operator of Seneca. The Federal Energy Regulatory
Commission ("FERC") has issued a license for Seneca (Project No.
2280) under Part I of the Federal Power Act ("FPA").
2. By adding the following sentences to the end of paragraph B
of Item 1:
The purchase price was determined through a competitive auction process
and therefore represents the fair market value for the Seneca Interest.
Penelec will use the net proceeds from the sale to reduce
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capitalization, to fund previously incurred liabilities in accordance
with the restructuring order issued by the Pennsylvania Public Utility
Commission and to reduce short term.
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SIGNATURE
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PURSUANT TO THE REQUIREMENTS OF THE PUBLIC UTILITY HOLDING
COMPANY ACT OF 1935, THE UNDERSIGNED COMPANY HAS DULY CAUSED THIS STATEMENT TO
BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED.
PENNSYLVANIA ELECTRIC COMPANY
By: /s/ T. G. Howson
T. G. Howson
Vice President and Treasurer
Date: March 29, 1999
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