-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UtiCNfXVARZSNVwPy0ZnDY6Z6I0XU74QoaFJYc+G89jV33QCZ3aBSD+6sLQSjOhY D1Qw/JOBbtLDqYd9JK2/PA== 0000040779-95-000068.txt : 19951005 0000040779-95-000068.hdr.sgml : 19951005 ACCESSION NUMBER: 0000040779-95-000068 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 5 CONFORMED PERIOD OF REPORT: 19950829 ITEM INFORMATION: Other events FILED AS OF DATE: 19951004 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENERAL PUBLIC UTILITIES CORP /PA/ CENTRAL INDEX KEY: 0000040779 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 135516989 STATE OF INCORPORATION: PA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-06047 FILM NUMBER: 95578606 BUSINESS ADDRESS: STREET 1: 100 INTERPACE PKWY CITY: PARSIPPANY STATE: NJ ZIP: 07054 BUSINESS PHONE: 2012636500 8-K 1 GENERAL PUBLIC UTILITIES 8-K REPORT SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ___________________ FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (date of earliest event reported): August 29, 1995 GENERAL PUBLIC UTILITIES CORPORATION (Exact name of registrant as specified in charter) Pennsylvania 1-6047 13-5516589 (State or other (Commission (IRS employer jurisdiction of file number) identification no.) incorporation) 100 Interpace Parkway, Parsippany, New Jersey 07054 (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code: (201) 263- 6500 ITEM 5. OTHER EVENTS (a) Three Mile Island Unit 2 As previously reported, on September 20, 1995, the Pennsylvania Supreme Court reversed a lower court decision and restored a March 1993 order of the Pennsylvania Public Utility Commission ("PaPUC") permitting Metropolitan Edison Company ("Met-Ed") to recover estimated Three Mile Island Unit 2 ("TMI- 2") decommissioning costs from customers. TMI-2 is jointly owned by the GPU's three utility operating subsidiaries -- Met-Ed, 50%; Pennsylvania Electric Company ("Penelec"), 25%; and Jersey Central Power & Light Company ("JCP&L"), 25%. Following the lower court's decision in July 1994, GPU had written off, after tax, $104.9 million (Met-Ed - $72.8 million and Penelec - $32.1 million), or $0.91 per share in the second quarter of 1994. The Supreme Court decision effectively reverses this write off, and GPU therefore will report the entire $104.9 million as income in the third quarter of 1995. This amount includes $8.4 million of certain TMI-2 monitored storage costs which Met-Ed and Penelec had sought to collect from Pennsylvania customers. Because, notwithstanding the Supreme Court decision, those subsidiaries do not now believe the collection of these costs to be probable, GPU is charging to income $8.4 million, or $0.07 per share, in the third quarter of 1995. A copy of GPU's related news release is annexed as an exhibit. (b) Non-Utility Generation Contracts 1 Also as previously reported, JCP&L and Met-Ed have recently entered into agreements to buy out certain of their uneconomic, long-term power purchase agreements ("PPAs") with developers of proposed non-utility generation facilities. JCP&L has bought out and has terminated the two 100 MW PPAs for the proposed Crown/Vista Project, a 362 MW coal-fired generating facility planned for construction in Glouster County, New Jersey. JCP&L purchased the PPAs for $17 million. JCP&L estimates that the excess cost of these PPAs over other available sources is more than $700 million (1995 dollars). JCP&L intends to seek authorization from the New Jersey Board of Public Utilities to recover the $17 million buy-out cost from customers. Met-Ed has entered into separate agreements to buy out the proposed 100 MW Scranton Energy Project and to restructure or buy out the planned 227 MW York County Energy Project. Under the Scranton buyout agreement, Met-Ed has agreed to pay to the Scranton developers $20 million to buy out and terminate the PPA and will ask the PaPUC to approve the recovery, through customer rates, of these buy-out costs. In addition, Met-Ed has agreed to increase the buy-out price by up to an additional $10 million if and to the extent that the PaPUC permits Met-Ed to recover the additional amounts through customer rates. Met-Ed has estimated that if built, the Scranton Energy Project would have cost customers more than $350 million (1995 million) above the cost of other available sources of energy. In the York Energy agreement, Met-Ed and the project developers have agreed that the proposed coal-fired project will not be built, and that the parties will instead attempt to 2 restructure the PPA to allow for the development of a natural gas-fired facility. Met-Ed has agreed to pay the York Project developers up to $30 million to terminate the coal-fired project development and an additional $5 million if the PPA cannot be restructured. Met-Ed will ask the PaPUC for approval to recover the buy-out costs from customers. Copies of JCP&L's and Met-Ed's related news releases are annexed as exhibits. ITEM 6. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION AND EXHIBITS (c) Exhibits 1. GPU News Release, dated September 22, 1995 2. JCP&L News Release, dated August 29, 1995 3. Met-Ed News Releases, dated August 29 and September 26, 1995 3 SIGNATURE PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE SIGNED ON ITS BEHALF BY THE UNDERSIGNED THEREUNTO DULY AUTHORIZED. GENERAL PUBLIC UTILITIES CORPORATION By:______________________________ T. G. Howson, Vice President and Treasurer Date: October 4, 1995 EX-99 2 GPU EXHIBIT INDEX TO 8K REPORT EXHIBITS TO BE FILED BY EDGAR Exhibits: 1. GPU News Release, dated September 22, 1995 2. JCP&L News Release, dated August 29, 1995 3. Met-Ed News Releases, dated August 29 and September 26, 1995 EX-99 3 EXHIBIT 1 TO GPU 8K REPORT Exhibit 1 NEWS RELEASE LETTERHEAD OF GENERAL PUBLIC UTILITIES CORPORATION Further Information Lorraine Pelter (201) 263-6243 Date: Sept. 22, 1995 For release: Immediately GPU TO REFLECT PA. SUPREME COURT DECISION IN THIRD QUARTER FINANCIAL STATEMENTS Parsippany, N.J., Sept. 22, 1995 -- General Public Utilities Corporation (GPU) will be reflecting the result of the Pennsylvania Supreme Court's favorable September 20 decision in its third quarter 1995 financial statements. The Pennsylvania Supreme Court decision restores a March 1993 Pennsylvania Public Utility Commission order that permitted GPU's Metropolitan Edison Company (Met-Ed) subsidiary to recover estimated Three Mile Island Unit 2 (TMI-2) decommissioning costs from customers. TMI-2 is jointly owned by GPU's three operating subsidiaries -- Met-Ed, 50%; Pennsylvania Electric Company (Penelec), 25%; and Jersey Central Power & Light Company (JCP&L), 25%. The court decision on Wednesday reversed a July 1994 Pennsylvania Commonwealth Court decision that disallowed the collection of revenues from customers for TMI-2 decommissioning costs. As a result of that decision, the GPU System had written off in the second quarter of 1994 a total of $104.9 million (after-tax), or $0.91 per share. By company, the amounts taken as charges to income were $72.8 million for Met-Ed and $32.1 million for Penelec. The favorable Pennsylvania Supreme Court decision effectively reverses this previous write-off. Also, the company has determined at this time that the recovery of certain TMI-2 monitored storage costs from Pennsylvania customers is not probable. As a result, GPU is charging to income $8.4 million, or $0.07 per share, in the third quarter of 1995. JCP&L was not affected by the decision and has been permitted by the New Jersey Board of Public Utilities to recover TMI-2 decommissioning costs from its customers. EX-99 4 EXHIBIT 2 TO GPU 8K REPORT Exhibit 2 NEWS RELEASE LETTERHEAD OF JCP&L Further Information: Donna Revins 201.455.8408 Ron Morano 201.644.4297 Release Date: 09/29/95 JCP&L, CROWN/VISTA CANCEL POWER PROJECT Morristown, NJ -- Jersey Central Power & Light Company (JCP&L) announced today that it had reached an agreement for the cancellation of two power projects planned for Gloucester County, N.J. The two power projects were being developed by Crown Energy L.P. and Vista Energy L.P. (Crown/Vista), affiliates of Mission Energy Company. Under the agreement, JCP&L will buy out and terminate its 1990 power purchase agreements from Crown/Vista for $17 million. Crown/Vista, which won JCP&L's competitive bid in 1989, had entered into long-term power purchase agreements in 1990 to sell JCP&L 200 megawatts from the proposed 362-megawatt coal-fired projects in Gloucester County. "Because legal and regulatory uncertainties continue to revolve around the projects, we believe this agreement is in the best interests of our customers," said Michael P. Morrell, JCP&L vice president for regulatory and public affairs. "This is particularly true because the excess future cost to our customers over other available sources would be expected to exceed $700 million." The power purchase agreements have been the subject of ongoing regulatory and legal proceedings for more than two years. Crown/Vista had encountered a series of project delays which could have prevented it from meeting the 1997 in-service contractual deadlines with JCP&L. The developers initially won an in-service extension from the New Jersey Board of Public Utilities. That decision was overturned by the Appellate Division of the Superior Court earlier this year, but was being appealed by Crown/Vista. In June, the New Jersey Assembly voted to extend retroactively in-service deadlines of certain purchase power agreements between nonutility generators and public electric utilities. The legislation would have granted Crown/Vista more time to develop the project. The State Senate was expected to vote on the bill in the fourth quarter of this year. The agreement, which is subject to certain third-party consents, provides that JCP&L and Crown/Vista will terminate all pending litigation and administrative proceedings between them relating to the project, as well as any support for the pending legislation. The GPU companies have been committed to renegotiating or buying out nonutility generating contracts which are more costly than power available from other sources. JCP&L is an operating utility subsidiary of General Public Utilities Corporation (NYSE:GPU), a registered utility holding company headquartered in Parsippany, N.J. GPU's three operating utility subsidiaries -- JCP&L, Metropolitan Edison and Pennsylvania Electric -- provide electric service to more than 1.9 million customers in New Jersey and Pennsylvania. EX-99 5 EXIBIT 3 TO GPU 8K REPORT Exhibit 3 NEWS RELEASE LETTERHEAD OF MET-ED/PENELEC For Further Information: Edward J. Shultz (610) 921-6602 Home Phone: (610) 678=4913 Neal Cody (Scranton Energy) (703) 361- 8454 Release Date: August 29, 1995 Release Number: 62- 95 MET-ED, SCRANTON AGREE TO SETTLEMENT READING, PA., Aug. 29, 1995 - Metropolitan Edison Company and Scranton Energy Partners today announced a buyout agreement of the Scranton Energy Project originally proposed for Scranton, Pa. and later moved to New Jersey. Under the terms of the buyout, Met-Ed will ask the Pennsylvania Public Utility Commission to approve the recovery, through customer rates, of $30 million for Scranton Energy development expenses associated with the project. In 1991, Met-Ed signed a 20-year power purchase agreement for the 100-megawatt Scranton Energy Project, a qualifying non- utility generator under the Public Utility Regulatory Policies Act of 1978. "This buyout agreement is in the best interest of our customers and the economic development of the Commonwealth of Pennsylvania," Fred D. Hafer, president of Met-Ed and Pennsylvania Electric Co (Penelec), said. "The future cost of this project to our customers over other available electric generation sources would have exceeded $350 million (1995 dollars)." The agreement announced today resolves the dispute between Scranton and Met-Ed that has been the subject of regulatory proceedings. Met-Ed is a subsidiary of General Public Utilities Corporation (NYSE:GPU), a registered utility holding company whose three operating subsidiaries - Met-Ed, Pennsylvania Electric and Jersey Central Power & Light - provide electric service to more than 1.9 million customers in Pennsylvania and New Jersey. Scranton Energy Partners if an affiliate of Ahlstrom Development Corp., a developer of independent power projects with headquarters in San Diego, Calif. Exhibit 3 NEWS RELEASE LETTERHEAD OF MET-ED/PENELEC For Further Information: Gary D. Plummer (814) 533-8474 (H): (814) 255-2404 Brad Hahn, YCEP 610-481-3955 Release Date: September 26, 1995 Release Number: 68- 95 JOINT NEWS RELEASE MET-ED, YORK COUNTY ENERGY PARTNERS TO RESTRUCTURE COGEN PROJECT READING, PA -- Metropolitan Edison Co. (Met-Ed) and York County Energy Partners, L.P. (YCEP) announced today (September 26) their joint decision to restructure the power-purchase agreement for YCEP's proposed coal-fired cogeneration project in York County to address the needs of Met-Ed, its customers, YCEP and the local community. As part of this joint decision, Met-ed and YCEP have agreed that the YCEP project will not be constructed as a coal-fired facility. Instead, the two companies will seek to amend YCEP's power-purchase agreement with Met-Ed to allow for the development of a natural-gas-fired facility. Met-Ed will pay YCEP up to a maximum of $35 million to end development of the coal-fired project, for which Met-Ed intends to file a request with the state Public Utility Commission seeking approval to recover from customers through the Energy Cost Rate (ECR). "Met-Ed believes this decision is very beneficial for our customers because it will save them from paying what we forecast to be up to $940 million above alternate costs for power over the next 25 years," said Fred D. Hafer, president of Met-Ed and Pennsylvania Electric Co., subsidiaries of General Public Utilities Corp. He added, "This decision also will be good for the Commonwealth in its efforts to attract and retain industry and promote economic growth." Wayne A. Hinman, president of YCEP, said, "Although we firmly believe the coal project would have gone forward, we believe the opportunity to explore the feasibility of a gas-fired project is a reasonable and responsible course of action to meet the objectives of all stakeholders." It YCEP and Met-Ed are successful in their efforts for YCEP to develop a gas-fired project, Hafer and Hinman said, it will be structured to reflect conditions in the current power market. -----END PRIVACY-ENHANCED MESSAGE-----