Post-Effective Amendment No. 15 to
SEC File No. 70-7727
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM U-1
APPLICATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935 ("Act")
GENERAL PUBLIC UTILITIES CORPORATION ("GPU")
100 Interpace Parkway
Parsippany, New Jersey 07054
ENERGY INITIATIVES, INC. ("EI")
One Upper Pond Road
Parsippany, New Jersey 07054
(Names of companies filing this statement and addresses
of principal executive offices)
GENERAL PUBLIC UTILITIES CORPORATION
(Name of top registered holding company parent of applicants)
T.G. Howson, Vice President Douglas E. Davidson, Esq.
and Treasurer Berlack, Israels & Liberman LLP
M. A. Nalewako, Secretary 120 West 45th Street
GPU Service Corporation New York, New York 10036
100 Interpace Parkway
Parsippany, New Jersey 07054
B. L. Levy, President
K. A. Tomblin, Esq., Secretary
Energy Initiatives, Inc.
One Upper Pond Road
Parsippany, New Jersey 07054
(Names and addresses of agents for service)<PAGE>
GPU and EI hereby post-effectively amend their
Application on Form U-1, docketed in SEC File No. 70-7727, as
follows:
1. By amending paragraph K of Post-Effective
Amendment No. 10 thereof, as heretofore amended, to read in its
entirety as follows:
K. O & M Services. In the September 12, 1994 and
December 28, 1994 Orders, the Commission reserved jurisdiction
over EI's request to perform operation and maintenance and
related project management and administrative services ("O&M
Services") as managing general partner or the operator of QFs,
EWGs or FUCOs which are "associate companies" of EI under the Act
at fair market prices, in the circumstances specified in those
orders.
GPU and EI now request that the Commission release such
reservation of jurisdiction and, pursuant to the last sentence of
Section 13(b) of the Act, exempt from the requirements of Rules
90 and 91 the provision of services or the sale of goods by EI or
by its subsidiary, EI Services, Inc. (organized pursuant to
Commission Order dated September 12, 1994, HCAR No. 35-26123)
(collectively referred to as "EI") at market prices pursuant to
any contract or arrangement entered into by EI with any
associate project entity, in any case in which any one or more of
the following circumstances are applicable:
1. The project entity is a FUCO, or is an EWG which
derives no part of its income, directly or indirectly, from
the generation, transmission, or distribution of electric
energy for sale within the United States; or
2. such project entity is an EWG which sells
electricity at market based rates which have been approved
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by FERC or the appropriate state public utility commission,
provided that the purchaser of such electricity is not an
associate company of GPU within the GPU System; or
3. such project entity is a QF that sells electricity
exclusively (i) at rates negotiated at arms' length to one
or more industrial or commercial customers purchasing such
electricity for their own use and not for resale, and/or
(ii) to an electric utility company, other than any
associate company of GPU within the GPU System, at the
purchaser's "avoided cost" as determined in accordance with
FERC's regulations under PURPA; or
4. such project entity is an EWG or QF that sells
electricity at rates based upon its cost of service, as
approved by FERC or any state public utility commission
having jurisdiction, provided that the purchaser of such
electricity is not an associate company of GPU within the
GPU System.
EI will provide services and goods to associate project
entities that do not satisfy any of the above criteria at "cost"
in accordance with Section 13(b) of the Act and Rules 90 and 91,
provided, however, that EI may continue to provide operation and
maintenance services at market rates to Prime Energy Limited
Partnership, an associate of EI which owns the Marcal
Cogeneration Project in Elmwood Park, New Jersey, pursuant to an
Operations Management Agreement with that project which was
entered in 1987 in reliance on Rule 90(d). The Marcal Project
sells capacity and associated electric energy to Jersey Central
Power & Light Company, an associate of EI, at avoided cost under
PURPA.
GPU and EI acknowledge that the Commission's
authorization herein for EI to provide services or sell goods at
prices that are not based on cost (as determined in accordance
with Rules 90 and 91) to any such project entity shall not be
binding upon FERC or any state public utility commission having
jurisdiction over the rates charged by any such associate project
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entity, and agree that they will not assert or take any position
to the contrary in any administrative or judicial proceeding
involving the determination of rates that may be charged by any
such associate project entity.
EI also agrees that it will not provide services or
sell goods to any associate project entity which, in turn,
provides such services or sells such goods, directly or
indirectly, to any other associate project entity which does not
fall within any of the preceding enumerated categories, except
pursuant to the requirements of the Commission's rules and
regulations under Section 13(b) or an exemption therefrom
obtained in a separate filing.
2. GPU and EI request that they be relieved of the
Rule 24 reporting requirements that presently apply to GPU and
EI, and that, in lieu of such former requirements, they file, on
a quarterly basis not later than 60 days after the end of each
calendar quarter, Certificates Pursuant to Rule 24 which shall
include the following information:
(1) A copy of EI's balance sheet and income statement.
(2) A narrative description of EI's activities during the
quarter just ended organized by business category (project
development, project related services and other), and within each
category, a description of new developments by project type
(i.e., QFs, EWGs and FUCOs), international and domestic
consulting, if any, and specific types of consulting within the
international and domestic spheres.
(3) Amounts and forms of: (i) guarantees of, and similar
provisions and arrangements concerning, performance and
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undertaking of other obligations by EI, any subsidiary of EI or
any project entity, which GPU has agreed to grant or provide in
the event a bid by any of the foregoing entities is accepted; and
(ii) indemnifications of and with respect to persons acting as
sureties on bonds or other obligations on behalf of EI, any
subsidiary of EI, or any project entity, which GPU has agreed to
grant in the event a bid by any of the foregoing entities is
accepted.
(4) Amounts and forms of: (i) guarantees of, and similar
provisions and arrangements concerning, performance and
undertaking of other obligations by EI, any subsidiary of EI, or
any project entity, which GPU has granted and are currently
effective; and (ii) indemnifications of and with respect to
persons acting as sureties on bonds or other obligations on
behalf of EI, any subsidiary of EI, or any project entity, which
GPU has granted and are currently effective.
(5) A description of services obtained from associate
companies, specifying the type of service, the number of
personnel from each associate company providing services during
the quarter (to the extent practicable) and the total dollar
value of such services.
(6) A description of services provided to associate
companies which identifies the recipient company, the service,
the charge to the associate and whether the charge was computed
at cost, market or pursuant to another method, which method shall
be specified.
(7) A chart showing, as of the end of such quarterly
period, all associate companies of GPU that are EWGs, FUCOs, and
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QFs, GPU's direct or indirect investment in each such entity and
the aggregate direct and indirect investment by GPU in all such
entities, and GPU's percentage equity ownership in each such
entity together with a statement indicating by category the type
of entity or person (i.e., domestic corporation, foreign
corporation, foreign government, or natural person) owning the
equity interests in each such entity that are not held directly
or indirectly by GPU.
(8) A description of any intellectual property provided to
EI by any associate utility company, or provided by EI to any
associate utility company, the cost thereof (including the cost
of any enhancements) to the company making such intellectual
property available, and, if known, the fair market value thereof.
In addition, GPU will file on behalf of EI Form U-13-60 (as
modified) as an exhibit to GPU's annual report on Form U5S,
provided that information with respect to GPU's direct or
indirect interests in any EWGs or FUCOs will be included in items
9 and 10 of the Form U5S. GPU will further modify such annual
report on Form U-13-60 to include the information required in
Account 923 of the Uniform System of Accounts, 17 CFR 256.923.
EI will account for revenues and expenses of its principal
business activities (i.e., development activities and project
related and other services activities) on a divisional basis.
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SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE PUBLIC UTILITY
HOLDING COMPANY ACT OF 1935, THE UNDERSIGNED COMPANIES HAVE DULY
CAUSED THIS STATEMENT TO BE SIGNED ON THEIR BEHALF BY THE UNDER-
SIGNED THEREUNTO DULY AUTHORIZED.
GENERAL PUBLIC UTILITIES CORPORATION
By: ________________________________
T.G. Howson
Vice President and Treasurer
ENERGY INITIATIVES, INC.
By:______________________________
B. L. Levy, President
Date: June 8, 1995<PAGE>
