ML19220C001

Amend 6 to Application for CP & OL

ML19220C001
Person / Time
Site:	Crane
Issue date:	03/10/1969
From:	Jersey Central Power & Light Co, Metropolitan Edison Co
To:	US Atomic Energy Commission (AEC)
References
NUDOCS 7904280051
Download: ML19220C001 (71)

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anencnent To. o-In the Matter cf Jer:e7 Central Power & Light Ccmpany 2s vI 3

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ECC:GT :IO. 50-320 This Amendment 27o. 6 and the amended Preliminary Safety Anal'/ sis Report submitted herewith supersede 4.,

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CU!TAL TCTa" ' L:GW." CC:S TE30?OL:~ri EDISC:; COMFAL7 Arrlication for Constructicn Fernit and 0 eratine License General Infor stien - 10 CFF 50.??

1.

ares of Arrlicants a)

Jersey Central Pcwer e Light Cc=rart - Jersey Central Fever x 2

Light Cc= par / hereira.fter referred to as " Jersey Ce:?.ral".

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"etrerolitan Edison Cerrany - Metropolican Edison Cenpany c,

(hereinafter referred to as " Met-Ed") will have ec=plete responsibility for the engineering, design, construction, operation and naintenance of ~~nree Mile Islard !uclear Station Unit 2.

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Jersey Central and "et-Ed will share ecually in the financing ard ownership of 1*ee Mile Island !!uclear Station " nit 2 as tenants in ec=nen withcut right of partition.

2.

Addresses of Arrlicants a)

Jersey Central Pcwer L Light Cc=pany

.adisen Avenue at Funch 3cwl F. cad Morristevn,.':ev Jersey C7%0 b)

"etrcyclitan Edisen Cc=pa:rf Post Office 2cx 542 Feading, Pennsylvania 1%C3 (F.evised :'ay 7,1%7)

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'ERSEY CENTRAL POWER & LIGHT COMPAN' A subsidiary of General Pubiic l'tilities Corporation (GPL >

MADISON AVENUE AT PUNCH BOW!. KOAD N!O't RisTOW N, NEW JERdEY 07960 DIRECTORS

• W. G. KUHNs. Tenafly, N. J.

• L. J. N14CGREGOR. Chatham. N. J.

J. E. LocAN. Stountain Lakes. N. J.

• W. H. NicEtwris. Basking Ridge, N. J.

R. D. NIACFEE. Netcong. N. J.

F.1. SsttTH. N!ountain Lakes. N. J.

A. F. TEGEN. New York. N. Y.

• E.tecutive Cammuree OFFICERS W. H. N1CEtwAIN President J. E. LOGAN Vice President. Engineering. Operations and Generat:on G. H. RITTER.

Vice President R. H. SINis V;ce President R. D. NI ACFEE Vice President. Accounting F. I. S.\\t!TH V:ce President. Sales J. S. BURCHELL C0mptroller J. F. FARRELL Assistant ComptrCiler E. C. SCHOENER Treasurer H. S. CLAYTON Assistant Treasurer L. Sto AN Secretary N1, B. PETERS Assistant Secrenry CCUNSEL A. A. ROCHESTER General Ccunsel W. T. OsaoRNE General Attcrney DIVISION MANAGERS E. St. A.\\tBLER Coast Division J. V. CARVER Central Division T. R. HEIGHT Southern Division J. R. Nf CGALUARD Bay Division TRUSTEE - FIRST MCRTGAGE BONDS TRUSTEE - DEBENTURES FIRST N ATION AL CITY B ANK

[RVING TRU5T C0\\t P nY 55 Wall Street. New York. N. Y.100!5 One Wall Street New York. N. Y.1C015 TRANSFER AGENT - PREFERRED STOCK REGISTRAR - PREFERRED STCCX N1 ANUFACTURERs HANovER TRUST CONF P ANY CHE\\t! CAL B ANK NEw YORK IRt'sT Co\\tP \\NY 40 Wall Street. New Ycrk, N. Y.10015 20 Pine Street. New York. N. Y. IC015 Ct: atg U t]

9 Jersey Central Power & Light Company M ADISON AVENUE AT PUNCH OCWL. RO AD e MC RRISTOWN, N. J. e J Eff erso n 9-6111 March 25,1968 To THE STOCKHOLDERS AND E.\\tPLOYEES OF JERSEY CENTRAL POWER & LIGHT COMPANY Increases in the number of customers in all clas.

1963, after which further tests will be made and if sifications as well as increased use of electricity by ex-escrything is found to be satisfactory, arrangements isting customers resulted in new all-time highs in sales can be made for fuel loading. General Electric ex-and sales revenues as 1967 saw a continuation of pects that the station will be available for sersice the Company's growth and procress of recent years.

by the end of the year.

Elec:ricity sales totaled 4.a01.790.000 kilowatt-Early in 1967, the Company announced plans fer hours, and sales resenues reached $90 3 million, up a second nuclear-fueled generating station, and that 8.4"c and 7.9"c, respectisely, over the previous year.

it had ordered the nuclear steam supply system from The average annual use by residential customers Babcock & Wilcox Company and the turbine-gener-climbed to 5.044 kilowatt-hours, an increase of 7"c.

ator from Westinghouse E!cctric Corporation. Burns During the year 2,202 total-e!ectric residential and Roe Inc. has been retained as engineers and customers were added, bringing the number of total-construction managers for the second nue! ear unit.

electric residential customers served by the Company These steps were taken berore a location had been to 8.011. Commercial and industrial kilowatt-hour selected because of the backlog of orders in the sales were up 9"e and 6.1 "c, respectisely, over nuclear industry and because of the length of time those of 1966.

required for fabrication of equipment.

On July 24, 1967, the Company reached a new in February,1963, Oyster Creek was se!ected as annual hourly peak of 906.000 kilowatts ( KW), an the proposed site for the second nuclear unit, which increase of 42,400 KW over the previous year's would have a capacity of about 900.000 KW. It is ex-peak of 863,600 KW, set July 13.1966.

pected that an applicatien for a construction license In 1967, partially as a resuit of the Companyi will be filed with the U. S. Atomic Energy Ccm-area deve!cpment and industrial sa'es efforts and its mission in the spring of 1968.

participation in the GPU " Site-Service" program, 37 Meanwhile, t! e new Yards Creek pumped stor-new industrial plants were connected and 86 exist-age station which the Company owns jointly with ing industrial customers expanded their operations, Public Sersice Electric and Gas Company operated providing jobs for about 3.560 persons with payrolls satisfactorily dering the year and made a subst mtial aggregating $21.4 million.

contribution to economy and service reliability.

Disappointing delays were experienced during the For some time, the Company and Public Service year in the construe: ion of the Oyster Creek nuclear-have had before the Delaware Riser Basin Com-fueled gnerating station at Lacey Township. Origi-mission an application for permission :o build a nally scheduled for completion in 1967, the station 1,300.000-KW companion pumped 3torage station was already several months behind schedule when which, in e!fect, would represent the further pumped cracks were discosered in stub tubes in the bottom sterage de.e!cpment of the Katatinny Mountain of of the reactor vesse!. After seseral weeks study, which Yards Creek is the first phase. The addi-during which the Atomic Energy Commission was tional station would be part of a comprehensive pian kept informed of de.e!cpments. General Electric also invoising construc::en by the Federal Gosern-Company, the general contractor, determined and ment of a flood control. water supply and recreation informed the Company that repairs can be effected reser,oir in the De! aware River near the Delaware by rewelding and providing stainless steel c! adding Water Gap. Hearings were heid in August on pro-around all tubn. According to General Electric the posed amendmen:s to the comprehmise pian which repair work :s expected to be completed by June 1, would make proviuon for 'he preposed pumped SS 1GO

S storage project. At year'.s end, a decision by the In this connection, on December 26,1967, the Delaware River Basin Commission was still pending.

Company and other member companies of the PJN!

The Company is participating with the City of system jcined in a new senice reliability compact Jersey City in a combination potable water supply known as the Slid-A'lanGc Area Coordination Agree-system and pumped storage deselopment near Doser ment. The agreement presides for an area coordina-which will provide 130.000 KW of generatmg ca-tion committee to review on a continuing basis the pacity. P! ant desiens for the Company's portion of principles, precedures and standards relatmg to mat-the project were completed during the year. and the ters affecting the reliability of the bulk transmission of City's design work on the reservoir system moved for-energy within its area and to r: view and evaluate ward. It is expected that construction will begm as the plannmg of generation and transmission facilities soon as necessary licenses are received from the Fed-relative to the bulk e!cctric supply system ef the cral Power Commission.

member companies.

In August,1967, the first 900,000-KW unit of the The Company's cperation and maintenance ex-Keystone mine-mouth generating station near Johns-penses increased by 52.7 million, or 6.9"c over town, Pa., in which the Company is participating those of 1966.

with six other utilities, was completed and placed in The cost of power recened from other utilities service. The second unit of the same she is sched-was up due to an increase in the amount of net inter-uled for completion this summer. The Company change power receised and the reduced availability owns 16.67"o of the station.

of low-cost interchange. The amount spent for fuel Construction expenditures for the year totaled increased 15.6"c due to increased generation and t,

$66.7 million. In addition, expenditures for nuclear increases in the cost of fuel.

fuel for the Oyster Creek statien were 58.8 million.

Payroll expenses in 1967 were up 3.9cc ove the It is estimated that in 1968. construction expendi-presious year because of wage rate increases and tures will total approximately 560 million and that additional employees. The cost of materials and sup-nuclear fuel expenditures will be approximately $1.3 plies and other expenses in 1967 decreased by 5 6cc million.

due in part to reductions in the amount spent for tree On June 5,1967, a major disturbance originating trimmmg and brush control and to accounting outside the Company's system affected a large part changes for costs of employee benefits (pensions. life of the area served by the Pennsylvania.:rew Jersey-insurance and hospitalization ) a portion of which was N!aryland (PJN1) Interconnection, and resulted in capitalized in 1967. These changes are discussed an interruption in service to all custcmers served by more fully in notes I and 6 of the Notes to Finan-the Company. Service was restored to approximately eial Statements. Depreciation expense rose because 50c of the Company's customers within three of continued larger plant investment and an increase c

hours and to all customers within five hours after in depreciation rates which became effective Jan-the disturbance occurred.

uary 1.1967.

The interruption happened shortly before the Total taxes paid by the Company were equivaient scheduled initial operation of the first unit of the to 15r of each dollar of revenue.

Keystone Station and energizing of a part of the re.

Durmg the year. 530 million of 6% cc First Stort-lated 500-KV transmission system. It is believed that gage Bonds due 1997 and 515 million of 6C De-if these facilities had been in service, the interruption bentures due 1992 were sold at net interest costs of would have been avoided. Since that time, a number 6.52 c and 5.90"c, respectisely The Company also c

of corrective measures have been or are being taken receised 514 mi!! ion in cash capital contributions and it is believed that these, together with additional from GPU.

generation and transmission facilities now being built Because the progress of the Company is due in by the GPU system companies and other PJN1 com-targe part to the efforts of our employees. I would panies, will reduce the possibility of another inter-like to commend them for their continued coepera-ruption of this magmtude.

tion and loyalty durmg the Scar.

For the Board of Directors.

@ff U W W. H. NicEtw e President ug>

~ 1..

dC

ELECTRIC GENERATION AND SALES STATISTICS 1967 1966 1965 1964 196a GENERATING CAPACITIES AND PEAKS.

Installed Capacity - KW 777.400 627.400 607.400 JS 1.600 451.600 Firm Power Purchases - KW

'S.000 28.000 Totals 777.400 627.400 635.400 509.600 4S t.600 Annual Peak Load - KW 906.000 863.600 744.400 67s.500 622.100 ELECTRICITY GENERATED, PURCHASED AND INTER.

CHANGED (megawatt hours):

Net Generation 2.919.077 2.571 945 2.360.719 2.154.on7 1.947.530 Purchased 75.07 123.579 6l.840 36.483 3.661 Net interchange.

--4.783.715 _ 4.434.174 3.914.677 3.555.075 3.264.074 1.794.566 1.738.650

!.492.11s 1.363.9:5 1.312.SS3 Totals STEA.\\1 PRODUCTION DATA:

Average BTU (per net KWH) 10.S39 10.627 10.564 10.657 10.554 Fuel Cost (e per million BTC) 30 9 31 0 20.0 30 1 31.5 Cost of Fuel (mills per KWH) 3.35 3 29

3. !,

a.I 3.32 Total Productica Costs (mills per KWH )

4.63 4 50 4.5:

4 ~5 5 06 ENERGY SALES (megawatt hours)-

Residential.

1.623.47:

1.451.339 1.239.346 1.181.001 1.072.097 Commercial.

1.068.747 980.766 872.318 795.880 708.699 Industrial 1.539.150 1.450.!8 1 243.620 1.141.963 1.053.307 All Others 170.421 l'6.139 155 ~07 136.638 127.470 Totals 4.401.790 4.058.976 3.560.991 3.255.457 2.961.573 Gain Over Ptior Year.

8. 4 "e

14. 0 "-

9.ac 9. 9 "<

90" c

OPERATING REVENUES:

Residential 542.519.152 5 3 8.3 5 5.~6 s 535.155.078 5 32.5 3 7.U 3 7 529.989.131 Commercial 25.3S9.045 23.993.526

1.793.781 20.021.9I3 13.1:4.969 Industrial 18.089,037 17.138.5:S i5.125.475 13.912.o74 13.000.943 Other 3.662.767 3.653.743 3.408.229 3.172.154

.981.453 Total. frem KWH Sales.

590.260.001 5s3.641.570 5 ~ 5.482.5 63 5 69.n43."s 564.096.54n Other Revenues.

1.253.764 1.196.504 1.037.164

~27.193

~76.21:

Totals 591.513.765 534.533.074 5 ~ 6.519.72 7 5 70.3 ~ 0.9 71 564.S72.958 Gain Over Prior Year.

75d 10.9 "c S. 7 "c

3. 5 "c

' 3 ~c c

CUSTO.\\lERS - YE A R-EN D:

Residential 326.14 312.293 29~.68:

2S4.075 271.~33 Commercial 36._s31 25.o I 6 34.547 33.:::

32.080 Industrial 1.461 1.4:4 1.3 ~ 3 1.305 1.264 All Others 266 258 253 25!

247 Totals 364.456 349.59i

':3 S55

' I X.S53 3053 4 AVERAGE USE-BILL AND PRICE:

Residential Customers:

KWH Use per Customer.

5.044 4.~ 14 4.395 4.207 2.952 Annual Bill 5132.42 5126. ! ~

5119.S:

5115 90 5111.39 Price per KWH 2.63c 2.68c 2.~3c 2.~6c 2.80c 6[] MN 3

JERSEY CENTRAL POWER & LIGHT COMPANY STATEMENTS OF SOURCh AND APPt.! CATION OF FUNDS For the Years Ended December 31.1967 and 1966 1967 1964 SOURCE OF FUNDS:

Net inecme (see statement on page 5 )

5 17.672.516 516.279.137 Depreciation (Note 2) 9.762.900 S.122.200 Investment credit. less amortization (Note 4) 1.183.200 517.500 Total 5 28.618.616 524.919.137 Sale of bonds and debentures 45.000.000 30.000.000 Cash centributions from General Public Utilities Corporation, parent company 14,000.000 15.500.000 Bank loans.

I2.300.000

2. t 00.000 Price fixing settlements, riet ( a )

158.290 121.800 Other. net 2.021.018 Total Funds Received.

5100.076.906 584.661.955 APPLICATION OF FUNDS:

Additions to utility plant (a) 5 66.688.264 567.170.325 Investment in nuclear fuel.

S.824.235 128.973 D.ividends on preferred stock.

500.000 500.000 Dividends on common stock 16.953.411 15.562.657 Retirement of bonds and debentures.

3.250.000 1.300.000 Other, net 3.355.996 Total Funds App:ied.

5100.076.906 554.66l.955 ta>

Plant additions shown are before credits ansing from price fixing uttlements.

The accompanying notes are an integral part of the rinuncial statements.

LYBRAND. RCSS DRCS. & MCNTGCMERY CERT 1FIED PueblC ACCQUNT4NTS To the Board of Directors, JERSEY CENTRAL POWER & LIGHT CONIPANY.

Nforristown New Jersey.

We have examined the balance sheet of Jersey Central Power & Light Company as of December 31. 1967 the related statements of income and unappropriated earned surplus and the statement of source and application of funds for the year then ended. Our examination was made in accordance with generally accepted auditing standards. and accordingly included such tests cf the accounting records and such other auditing procedures as we consider:d nec-e3sary in the circumstances. We presious!) examined and reperted upon the financial statements f'r the year 1966.

In our epinion, the aforementioned statements present airly the financial position et Jersey Central Power & Light Company at December 31.1967 and 1966. and the results of opera-tions and the source and applicatien of funds for the years then ended. in conformity with gen-erally accepted accounting principles applied on a censistent basis.

LYBRA.ND. Ross Bros.1 NtON TGO\\tERY Sew York. S. Y.

January-29.1963.

gt;

^rn 4

JERSEY CENTRAL POWER & LIGHT COMPANY STATEMENTS OF INCOME For the Years Ended December 31.1967 and 1966 1967 1964 OPERATING REVENCES.

591.513.765 584.838.074 OPERATING EXPENSES:

Operation 525.041.165 523.451.422 Power purchased and interchanged.

12.354.176 10.900.813 Afaintenance 5.363.989 5.659.831 Dept:ciation of utility plant (Note :)

9.762.900 3.!:2.200 Feden' incorne tax ( Ncte 4) 2.456.861

4. I ~5.325 Amount equivalent to current insestment credit ( Note 4 )

1.306.000 602.100 Amortizaten of accumulated investment credit (Note 4)

(122.300) 84.300)

Other taxes 11.234.077 10.165.093 Totals 567.396.368 162.992.989 OPERATING INCONIE 524.117.397 521.845.085 OTHER INCO.\\lE 13.515 l 2.913 GROSS INCONIE.

524.130.912 521.35S.003 INCONIE DEDUCTIONS:

Interest on first mortgage bonds and debentures 510.787.359 5 S.398.089 Other interest 790.074 730.175 Interest charged to construction (5.078.373)

(3.560.760)

Other (41.164)

! !.36:

Totals 5 6.458.346 5 5.5 8.sn6 NET INCONIE 511672.516 51 n.2 9. ! 3 ~

i > Indctes red figure.

The Jccompanying notes are an integral part 0i the finant:alitatements

,L 5

JERSEY CENTRAL POWER &. LIGHT COMPANY BALANCE SHEETS December 21. 967 and 1966 ASSETS 1947 1966 PROPERTY, PLANT AND EQUIPNIENT:

Utility plant in service and under construction (Note I) 5489.717.198 5428.324.249 Less. Reserve for depreciation (Note 2 )

51.074.300 45.951.051 Net property, plant and equipmerc 5438.642.598 5382.373.198 INVESTNIENT IN NUCLEAR FUEL.

5 8.953.208 5 128.973 INVESTNIENTS:

Other physical property 5

255.927 5

.5.927 Other.

I46.263 186.36i Totals 5

402.140 5 42.288 CURRENT ASSETS:

Cash 5 3.132.750 5 2.234.523 Accounts receivab!e. less reserse.

9.126.117

~ S01.89 3 Nfaterials and supplies (including construction materials). at average cost or less 6.707.580 5 554.451 Other 434.334 446.33-Totals 5 19.400.781 5 16.J3 7.209 DEFERRED DEBITS:

Unamortized prem:um on bonds redeemed.

5 104.399 5 139.144 Charges related to proposed constiuctico prcjeca and other werk 1.074.192 27.998 Other 33.21 A

$5.9a6 Totals 5

1.211.s09 5 483.!43 TOTAL ASSETS 546s.610.886 5399.464.311 The accompany:ng notes are an ;ntegral part o; the rinuncial statements.

$3 ~ # 'f } $

6

O JERSEY CENTRAL POWER & LIGHT CO.\\IPANY BALANCE SHEETS December 31.1967 and 1966 LI A BILITIE S AND C APIT AL 1967 lie 6 LONG-TERM DEBT CAPITAL STOCK AND SURPLUS (see page 8 ):

First mortgage bonds and debentures 5:56.025.000 5:12.925.000 Notes payable to banks due within one year to be refinanced.

19.400.000 7.100.000 Totals 5275.425.000- 5:20.025.000 Cumulative preferred stock.

5 12.500.000 5 12.500.G00 Premium on cumulative preferred stock 148.750 143.750 Totals 5 12.648.750 5 12.o48.750 Common stock and surplus:

Common steck 5 69.7S7 700 5 69.787 700 Capital surplus (parent made capital contnbutions of

$14.000.000 in 1967 and 525.500.000 in 1966 )

80.389.3:3 66.389.323 Unappropnated earned surplus (see statement on page S and Note 3) 8.797.14 3.583.037 Totals 5158.974.165 5144.760.060 Totals 5447.047.915 5377.433.810 CURRENT LIABILITIES:

First mortgage bends and debentures due withm ene year.

5 100.000 5 1.450.000 Accounts payable 5.976.537

~.595.686 Dividend payable on common stock.

348.938 Customer deposits.

1.167.696 1.096.119 Taxes accrued 1.135.405 2.430.869 Interest accrued.

3.579.573 2.532.275 Other 2.114.70 1.615.10!

Totals 5 14.4:2.856 5 16.7:U.050 DEFERRED CREDITS:

Unamortized premium on debt 5

1.469.87 5

1.106.529 Other 517.933 291.337 Tatals 5

1.9 x 7. 505 5 1.3 9 7.91 r3 RESERVE FOR UNA.NIORTIZED INVEST \\lEST CREDIT I N ote 4 )

5 4.050.700 5

2. s ~ 6.500 CONTRIBUTIONS IN AID OF CONSTRUCTION 5

1.092.610 5 1.03 6.5 3 <

TOTAL LIABILITIES AND CAPITAL 5468.610.336 5399.464.311 The accomrwiving notes are an uneyral run or tire 'inanc:al:rggpmnry,e,

CaJ t) 7

JELEY CENTRAL POWER & LIGHT COMPANY STATEMENTS OF UNAPPROPRIATED EARNED SURPLUS For the Years Ended December 31.1967 and 1966 1961 1966 BALANCE, beginning of year 5 S.533,037 5 8.366.557 ADD, Net income (see statement on page 5 )

17.672.516 16.279.137 Totals 5: e.255.553 524.645.694 DEDUCT.

Dividends on capital stock:

4"c Senes cumularise preferred stock.

5 500.000 $

500.000 Common stock.

I 6.95 8.4 I i 15.562.657 Totals 517.458.411 516.062.657 BALANCE, end of year f Note 3) 5 8.797.14: 5 8.583.037 The accompanying notes are an integral part of the financial statements.

LONG-TERM DEBT AND CAPITAL STOCK December 31.1967 LONG-TERM DEBT OUTSTANDING IN HANDS OF PUBLIC t excluding sinking fund recuirements due within one year):

First mortgage bonds I a ):

2?s % Series due 1976 5 34,500.000 32 4cc Series due 1978 3.500.000 32 ice Series due 1984 6.000.000 3%"c Series due 1985 20.000.000 42 s"e Series due 1986 10.000.000 5 cc Ser:cs due 1987 15.000.000 522 "c Series due 1989 5.770.000 43-i"c Ser:es due 1992 11.000.000 4% "c Series due 1993 18.5:5.000 4 ' * "c Series due 1994 18.000.000 4% "c Series duc 1995 20.000.000 6 s"c Series due 1996 29.010.000 654"c Series due 1997 23.360,000 Debentures (a):

4's "c Series due 1988 A.100.000 4's "- Series due 1989 4.600.000 52 s"c Series due 1990.

S.460.000 6

"c Series due 1992 14.700.000 Total 5:56.025.000 Notes payab!e to banks 5%"< and 6G. due within ene year to be reiinanced.

5 14.400.000 CAPITAL STOCK:

Cumulatne preferred stock, par value 5100 a share. 175.000 shares authorized; 49 Series. 125.000 shares outstanding. callatie at 5106 50 a share 5 12.500.n00 Common stock. par value 510 a share. 7.000.000 shares authorized:

6.978.770 shares outstanding.

5 69.787 700 i ai At De:emter 31.1W. annual sinking fu.d requirements amounted io 51.900.000 of whien 51.300.000 were reacqwred.

8

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JERSEY CENTRAL POWER & LIGHT bI5 I(8 AN INVESTOR 0WNED ELECTRIC COMPANY

TES TO FINANCIAL STATEMEN UTILITY PLANT:

and revenues tak:ng into consideranon this aspect of the Utility plant is stated at ongmal cost. In prior years the rate-maiong process. In recent years. the appheation of Company foHowed the policy oV capitaliz:ng (by charges this pnncio!e has had particular ugnificance m connec-to utility plant) the direc: payroll costs and certam asso-tion with certam reducnons in mcome tax. As set forth cisted costs of Company personnel engaged m the con-belo*, the rate-making treatment actcorded to these items strucaon of such plant. but did not so capaahze the cost has differed and consequent!y tr e manner m which these of certain employee benefits i such as pensions. life in-items have been reflected m such financial statements has surance and hospaaiizanont The Company changed this also differed.

~

policy effectnve as of January I. l907 so that the cost of Liberaticed Depecianon ana Gu. acmes and Rules.

such benefits applicable to such personnel is bemg cap.

italized for all penods subsequent to 1966. As a result of The regulatory agencies having jurndiction oser the this change net income for the year 1967 was increased Company's rates follow the policy at allowing only by approumately $600.000.

the esnmated tax actually pasable for the pened after givmg effect to the reducnon in meome tax On Januarv 20.1966. the Federal Power Commrssion issued a Notice or Proposed Ru!cmakmg relatmg to the attnbutable to tne employment or liberahzed de-preciation and the "Guidefines and Rules.' and, deternimation of the " net investment

• of hydroeiectric projects licensed by the Federal Power Commission, and therefore, the provis.ons for mcome tax in the ac-companvmg income statements were directly re-a heanng thereon was held on December 18.1967.The duced bv amounts eaual to the reductions m mcome Company has joined 42 other compantes in submittmg tax attn'butable to these items.

cornments on this propo<ed rule urgmg that it not be adopted. The extent to which any such rule as may be Insestment Tax Credit. The Board of Pubhc Utz ity l

adopted would affect the Company's investment in its Commiss:eners of the State of New Jersey has de-licensed project is not presently asce'rtainable.

termined that, for rate-making purposes, it will per-2.

DEPRECIATION:

"" C h 'S*' ' '"' ** '" *"

"I'

'h*

For rate-making and financial accounting purposes the "E

E I"'

1. "C**"'*

Company proudes for depreciation at annual rates deter-mined and revised penodically on me basis of studies bs indepenJent engmeers to be #c:ent to amortize th' e

""I

"" ** E *P b ^* #

origmal cost or deprec:able proJerty on a systematic baats oser esumated service hues, which lises are gen-rate ba3e. The Resenue Act of 1964 prohibas Fed-erally longer than those employed for tax purposes. The

" I ' ##8 ** M #E#"

• "9"'""

• UU Company uses deprenanon rates based on functional ac-

" " ' " I 'h* * *

1. ' * ' * #" #E P#I '" * "

count groups whicn. on an aggregate composite basis, re.

rapidly than over the esumated service hves of the suited m approumate annuai rates of 2.9% and 2.7%

related fac:lities. Under tr ese c:rcumstances, the for the years 1967 and 1966. These aggregate rates re-Company a danifung such cmment mas as a flect the fact that, effecase :.s of January I.1967. the Company meressed its depreciation rates with the ap.

Systems f Acc unts ot} the Board of Puche Unhty provai of the Board of Puolic Utdity Commissioners of mmissi ners f the btate r New Jersey and the the State of New Jersey resulung in'an increase m 1967 Federal Power Commission. the accumulated un-of apprcx.matelv S700l000 in the provision for deprecia-am nued seument mM ha Ne hiM as a t:en and a corre'spondmg decrease m net mcome.

deterred creda m reports to those Commissions.

3.

UNAPPROPRIATED EARNED SURPLUS:

5 CO51st1TNtENTS AND CONTINGENT Certam limaat:cns on tne declaration or cash dividends LI A BILITY:

on common stock are contamed in the Company's mort-The Company expects to make expenditures of p-gage and debe"ture moentures and cenificate of mcorpo.

proumate!) 500.000.000 tor piant add:nons dunng 19'M ranon. the most restnctive presentiv ' emg that contamed and in that connechon had ncurred substannal commit-c m such mdentures. under the terms of which 51.729.154 ments at December 31. 1967. The Company plans to of the balance of unappropnated earned surpius at De-

'ssue secunnes to partiady finance such construcnon.

cember 31.1967 are sn restncted.

The Company is par' c:patmg n the guarantees of a FEDERAL INCOSIE TAX:

cenm indebtedness bemg mcurred oy a non-attaliate m The Companv joms with its parent and others in til;ng

'"PP4 'h

• k."h

'h' d*' *!

2 " *C" ""

P**"' #i *'nes f r c al to consolidated Federal income tax re* urns. The returns

• Y""*"*"""*

"" ""E"""'"

whKh the Compcny is a co-owner "It is annc: pared that through 1959 have been audited and all deficienc:es hase the t tal amount guar nteed by the Company may uin-been paid. The compienon of the audits (cr 1960 through 1992 is anticyated shortly, and it is the opimon of tax maten be 2Dout SlWM&

counsel to the Company that the disponnon of such au-e.

PENSION PL AN:

dits for those years will not result in any matenal defi.

The Company has estat%hed a penuon plan for its e:ene:es. The consoiidated Federal income tax habdity empioyees M a laJ* Dromion to fund the cost et is ailocatec ameng the part:cipants m the consolidated re.

uch pian

• mee anh the ecommerdanons of turns pursuant to apeements generally designed to ai!c-mdepe-'

on.u.tants. ettecu ce as at Jan-care sun iiability m preportion to the partie

pants' re-a y nv.%1tMd the actuanai as-specme contnbutions to such haoiht).

v the plan to gise recogmnon to in-As a public unlity. tne resenues or the Company m any

.@er earmngs expectanons for the pened are dependent to a u;mticant extent upon the N

'o - aate the amortizanon et unreanzed appre-costs which are recognized and all owed in that pened for ciat.on c.

curities held in the pen %on tunds. A3 2 re-rate-making purposes. It is the pobey of the Company m 3 ult. the anml cost of the plan was reduced by approu-connectior with the tmancial statements contamed in reg.

mately SM>.000 and net incr me mcreased 5y approu-istration statements pursuint to which secunnes are of.

mately S200.000. The past seruce costs of the pian are fered and :n reports of financ:al condition and of the tull) funded. The annual current scruce ecsts f or the sear results of operanons to the heiders of such secunnes. to 1%~ 2nd the contnbutions by :he Cema at fc rg,.

foi'ow the basic accounung nnnc: pie of matching costs 1961 costs were S t.100W0 D _.

9

6 M ETROPOMTAN EDISON COMPANY A SUBSIDIARY OF GENERO +JBLIC UTILITIES CORPORATION s

DIRECTORS TRUSTEE - FIRST MORTGAGE BONDS SIORGAN GUARANTY trust COMPANY G. R. PARRY, Chairman OF NEW YORK J. LEE BAUsHER T. O. McQUISTON N

'N 5 "

FREDERIC COX R. E. NEIDIG h,

$,[."3 S*]3 TRUSTEE - DEBENTURES p,

SIARINE Sf!DLAND GRAcz TRUsr COMPANY Or NEw YORK 1:0 Broadway

• * " Y

• Y-EXECUTIVE COMMITTEE FREDERIC COX

. Chairman PREFERRED STOCKS W. G. KUHNs TRANSFER AGENTS G. R. PARRY T. O. McQuisTON

.Alternat, THE F:Rsr PENN5YLVANLA A. F. TEcEN

.Alternat, BANKING AND TRUST COMPANY 15th and Chestnut 5treets Philadelphia, P2.

19101 CHEMICAL BANK NET YORK trust COMPANY OFFICERS 20 Pine Street New York N. Y.

Ic015 FREDERic COx

. President REGISTRARS J. A. DUNLAP

.Vice Pres:_a,ent ana Comptroller O*^RD TRcsr BANK T. O. SicQuisTON

. Vice Pre:ident k';*2depn, I Ift$

R. E. NE1 DIG

. Vice President F. J. SMITH

. Vice President R. E. SYPHER

. Secret.:ry and Treasurer AfANUFACTURERs HANOVER trest COMPANY

• **il SU'c' W. D. HOLLiscER Asst. Secretary and

• '"*N'*^

Asst. Treasurer R. E. WzRTs Asst. Comptrciler PRINCIPAL OFFICE 2S00 Pottsville Fike, Sichlenberg Township, ANNUAL MEETING Berks County, P2.

SECOND MONDAY 4N SIAY Sf2iling Addms: P. O. Box 542, Reading. P2.

19603 During Dece:nber,1967, William R. Snyder submitted his : signatica to 6e Board of Direc: cts of $(e:ropoli:2n Edison Company for ie purpose of ren:ing efect:ve January 31, 1968.

By 2ctica of the Board of Directc:5, G. Raymond Parry was elected Chairman of the Board of Directors 2nd Freder:c Cox was elected President of ie Cemoany. 31:.

P2rry had be a Executive Vice President 2nd Str. Cox had been a Vice Pres'. dent 2nd Tes:ern Division M2 nager. Bctn crEcers were continued as me.r.bers of the Board cf Direc: cts. Floyd J. Smi6. Vice President--Ope:2:icns, was elected 2 member of the Board of Direc: ors, diling $e vac2ncy caused by &e resignation of Mr. Snyder.

All appointments bec2=e efec:!ve Feb:u2:7 1,1968.

b5 7 70 1

O TO THE SECURITY HOLDERS OF MET ED:

Your Company faced the challenges of 1967 2nd the record of growth continued to be excellent.

Compared with the previous yeart

-Sales of electncity increased by 8.4 per cent.

-The average kilowatt. hour use per residential customer reached 5,336 KWH, an increase of 7.0 per cent.

-Revenues incre2 sed by 7.6 per cent.

-Net income exceeded S13,000,000 2nd total construction expenditur'.s reached 2 record of over

$ 38,000,000.

Included in the operating costs were tax increases enacted by the Commonwealth of Pennsylvania during 1967. These additional taxes 2 mounted to 3402,000 2nd resulted from an increase of the Penn-sylvania Capital Stock Tax from 5 mills to 6 mills, retro 2ct:ve to Jmu2ry 1,1967-2n increase of the Pennsylvania Corporate Net Income Tax from 6 per cent to 7 per cent, also retroacite to Janu2ry 1, 1967, and an increase of the Pennsylvania Gross Rece: pts Tax from 14 mills to 20 mills. etiecnve July 1,1967.

As redected by Se record construction expenditures. hie *-Ed cononues to move forward in its long-range program.

Applic2t:en w2s made to the Atomic Energy Commission for the proposed construction of the Three Stile Island Nuclear Station near $fiddletown, on the Suscuchann2 River south of Harrisburg, Pennsyl-vania. When completed in 1971, this plant will add 340.000 kilow1tts to the 5f et.Ed System capacity.

Construcnon of the plant is scheduled to begin dur:ng the spring of 1968.

Construction was begun on Conemaugh Station, 2 jointly owned 1,s00.000 k:lowatt mine-mouth facility near Johnstown, Pennsylvania. This will 2dd :96,000 kilow2tts to We Stet Ed Systerr, of which 148,000 are to be available during 1970 2nd the rematnder during 1971.

The 110 miles cf 500.000 voit :ransmission lines that cress the Niet Ed terntary as part r the Key-stone Project were completed 2nd put into service curing 1967 Also, Afet Ed's exisang transmission 2nd distnbunon systems throughout de terr:tery have been undergoing conversten 2nd updating in accordance with our Company s ccnnnuing modernization 2nd reliability programs.

Along with the Afonsanto Ccmpany, 3fet.Ed has been part of the deve!opmental research ci 2 process to eliminate sulfur dioxide from the due gases of plants sred by fossil fuels. A protorype f2c:lity was installed 2t Slet Ed's Portland Generating St2 tion 2nd put into ininal operation in mid.1967, removing some 90 per cent of the sulfur dioxide from the gases passed through $e prototype fac:liev.

Sfuch credit for Afer-Ed successes during the challenging ye r of 1967 gces to Tilliam R. Snyder.

In December, he announced his plans to rence 2nd on J2nuary 31,1963, ended more San 6 ye2rs semce to 6e e!ectric industry, the last seven is President of Afet-Ed. With Afr. Snyder's enmple 2nd i e con-tinued cocperanon of cur employe s, Afe Ed looks for vard to meenng its respensibilit:es in supplying its customers " Power for Progress.

A E

/-

y

/

f G. R. P2rry 3

Freder:: Cox Cha:rrnan, Boar.i of Direc: ors Pres.knt Re2 ding, Pennsylv2ni2 b

~A w(.1 Afarch 25,1968

ELECTRIC GENERATION AND SALES STATISTICS 1967 1966 1965 1964 19 3 GENERATING CAPACITIES & PEAKS:

Installed Capacity-KW 894,300 859,300 859,300 878,300 878,300 Firm Power Purchases 31,000 31,000 Totals 894,300 859,300 890,300 909,300 878.300 Annual Peak Lo2d 912,000 864,000 792,700 717.600 680,100 NET SYSTEM LOAD (megawatt hours):

Net Generation 5,122,761 5,117,216 4,938,349 4.737,234 4,154,793 Purchased 70,159 63,326 69,395 40,658 130 Net Interchange 196,317 (168,480)

(453,259), (636,367)

(294,300)

Net System Load 5,389.237 5.012.062 4,554,4s5 4,141,525 3,S60,123 STEAM PRODUCTION DATA:

Average Btu (per net KWH) 10,116 10,192 9,916 9,786 9,948 Fuel Cost (e per million bru) 31.1 30.0 30 1 29.3 31.6 Cost of Fuel (mills per KWH) 3.15 3.05 2.99 2.87 3 14 Total Production Cests (mills per KWH) 4.13 3.94 3.87 32 4.08 ENERGY SALES (megawatt hours) :

Residential 1,338,981 1,231,031 1,128,070 1,061,684 1,001,156 Commercial 757,344 710,415 649,555 605.227 559,912 Industrial 2,449,033 2,344,263 2,123,620 1,898,547 1,748,405 All Others 335,121 218,111 175,429 163,764 153,828 Totals 4.S80,479 4,503.820 4,076,674 3,729.222 3,463,301 Gain Over Prior Year 8.4cb 10.5cb 9.3 cb 7eb 6.4 cb OPERATING REVENUES (in thousand 5):

Residential

$ 28,185 $ 26,328 $ 24,644 3 23,524 $

22.610 Commercial 14,990 14,169 13,590 12,932 12.204 Industrial 27,199 26,135 24,750 23,276 22,115 Other 4,374 3,435 2,938 2,757 2.659 Total, from KWH Sales 74,748 $ 70,067 $ 65,922 $ 62,489 $ 59.588 Other Revenues 1,335 642 578 528 450 Totals 3 76,083 $ 70,709 $ 66,500 $

63,017_$

60.038 Gain Over Prior Year 7.6cb 6.3 cb 5.5 cc 5.0 c'c 4.9 c' CU STO M ERS---Y EA R-EN D :

Residential 250,551 246,646 242,568 238,472 234,321 Commercial 31,119 30,773 30,237 29,765 29,452 Industrial 2,515 2,565 2,590 2,614 2,634 All Others 2,1:4 2,062 1.965 1,909 1.358 Totals 286,309 282,046

-',3 60 272,760 268,:65 AVERAGE USE, DILL AND PRICE:

Residential Customers:

KWH L*se P-r Customer 5,386 5,033 4,693 4,494 4,305 Annual Bill

$113.38

$107.64 3102,52

$99,57 397.21 Pric: Per KWH 2.104 2.14e 2.19 e 2.2:e 2.26e

.2, 6' *9 g e-be-J w

( ) Indic2tes red 6gure.

3

METROPOLITAN EDISON COMPANY STATEMENTS OF INCOME For the years ended December 31,1967 2nd 1965 1967 1966 OPERATING REVENUES:

Electric

$76,083,291

$70,70s,s97 Steam he2 ting...................

4:1,252 409.136 Totals...

$76,504,5 4 3 371,118,033 OPERATING EXPENSES:

Operation 331,103,442 330.561,409 Power purchased 2nd interchanged 3,338, 71 (579,126)

Maintenance.

6.334,082 6,180,79:

Depreciation of utility plant (Note 2) 9,251,000 3,634,000 Federal income tax (Note 5) 3,333,320 4,790,300 State income ux (Ncte 5) 685,671 709,200 Amount equivalent to current investment credit (Nete 5) 354,100 497,900 Amortization cf accumullted investment credit (Note 5)

(79.700)

(56,300)

Other t1xes 2,5 39,0a9 1 s76,310 Totals 357,360,235 352,613,985 OPERATING INCOME.

$ 19,144,308 518,504.048 OTHER INCOME 61,812 61,7 ~1 GROSS INCOME

$19,206.100

$ 13,56 5,319 INCOME DEDUCTIONS:

Interest on drst mortgage bonds and debentures S 6.;11,'97 3 5,628,456 Other interest 658,01 197.114 Interest charged to construction (918,250)

(5'5,654)

Other 69,280 94,609 Totals S 6,121.0:s 3 5.344,525

$13,08 5,092 513,2:1,;94 NET INCOME.

( ) Indicates red Egure.

The accomeanying notes are an integ-21 part ei tne br:ancai statements.

4

METROPOLITAN EDISON COMPANY BALANCE SHEETS December 31,1967 2nd 1966 ASSETS:

19s7 issa PROPERTY, PLANT AND EQUIPMENT (Note 1):

Electric.

3392,999,201

$358,641.018 S team heating.................................

3,341,960 3,349,619 Utility plant in service and under constmction

$396,341,161

$361,990,637 Less, Reserve for depreciation (Note 2) 93,651,612 87,499,534 Net property, plant and equipment

$302,689,549

$274 A91,103 INVESTM ENTS:

Other physicz! proper:7 18.567 3

17.7:9 Other 551,s09 397,670 Totals 570,376 S

415.399 CURRENT ASSETS:

Cash

$ 1,912,320 5 2,483,373 Accounts receiv2ble, less reserve 6,611,535 5,486.360 Materizls and supplies (inc!uding construction materials), at 2verage cost or less 5,714,524 3.481.151 Cther 472,4:0 509.369 Totals....

3 14,711, 99 3 11.960,753 DEFERRED DEBITS:

Charges related to proposed constmcten projects and other work 373.101 3

5:4.3 m Other 112.731 63.446 To tals...................

485.332 592,S19 TOTAL ASSETS 331S,457,056

$ 287,460.074 The accompanym.t notes are an m:egr21 part ci the financui sta:ements.

85 '74 3

METROPOLITAN EDISON COMPANY BALANCE $HEETS December 31,1967 and 1966 LIABILITIES AND CAPITAL:

1887 18 ' '

LO N G-T ER M DEBT, CAPITAL STOCK AND SURPLUS (see pages 7 and 8):

First mortg2ge bonds 2nd debentures

$ 16.8.'90,000 S149.310,000 Notes pay 2ble to banks due within one yest to be rennanced 6.000.000 4.450.000 Tctals S1'4, 90,000

$ 15 3.?60.000 Cumul2t:ve preferred stock 5 23.391. 00

$ 2 3.391.200 Premium on cumulative preferred stock 206. 09 206.209 Tctals 5 2;.*9'.4o9 5 23.59'.,09 Commen 3teck and surpius:

Commen stock 3 e6.r 3.ano S 66.:'3,400 Capital surplus (Note 3) 2 ;,3 2 ;.n 11 15.3:3.611 Unappropriated earned surplus (Note 4) 1;.' T 596 14.136,052 Tetals

$1c 3.3:4.50' s 95.'s 3.063 Tetals

_ '12.016

$27 140.47:

$ 301, CURRENT LIABILITIES:

Debentures due withm one year 3

5:0.000 5

1:0,000 Accounts pay 2ble 6, 2.so 4.4:2.9s7 Customer deposits

54.994 252,s::

Taxe accrued

.244.1s5 3.cos. 26 Interest,tccrued 1.416.259 1.067.34' Other 1,115.945 s'.:os Totals s 11.

s.5':

s 10.349.090 DEFERRED CREDITS:

Unamortized premium on debt.

l'1,160 5

l '9. 5 ' 3 Other

or.can is5,22:

Totals s

3's. 06 5

,64200 RESERVES:

Unaccrtized investment credit (Note 3)

2. 5 M so 5.

,2' 500 Other Ino.o =

91 s's Totals s

2.5s:.5'5 3 i.wv.3-5 CONTRIBUTIONS IN Af D OF CONSTRUCTION

$ 1.ro S M '

3

1. ' C O. F TOTAL LIABILITIES AND CAPITAL.

3318.45'.046 328'4610'4 The acca panvin.; n >tes are an t.negal p.ir at me Enanc:.a anements.

~ 4 *;o

~.t

)

o

METROPOLITAN EDISON COMPANY STATEMENTS OF UNAPPROPRIATED EARNED SURPLUS For the years ended December 31,1967 and 1966 1967 19GG DALANCE, Beginning of year

$14,186,05 2

$13.930,169 ADD, Net income (see statements on page 4) 13,085,092

.3,221,294 Totals.....................

327,271.144

$ 27,151,463 DEDUCT, Dividends on capital stock:

Cumulative preferred stock:

3,909 Series s 459,144

$ 466,233 4.359 Series 144,632 151,974 3,859 Series 112,324 113,118 3.S09 Series 68,864 70,648 4.459 Series 158.584 163.438 Common stock......

12,600,000 12,000,000 Totals 313,543,548

$12,965.411 BALANCE, End of year (Note 4) 313,727,596 514.186,052 STATEMENTS OF SOURCE AND APPLICATION OF FUNDS Fer the years ended December 31,1967 and 1966 SOURCE OF FUNDS:

Net income (see statements on page 4)

$13,085,092 513,221,294 Depreciation (Note 2) 9,251,000

'3,634,000 Investment credit, less amortit2 tion (Ncte 5)

?74,400 441,100 Totals 323,110,492 322,296,394 Sale of bonds 2nd debentures 20,000,c00 15,000,000 Cash contribution from General Pubiic Ut:lities Corporation.

parent company (Note 3) 8,000,000 Bank ! cans 1,550,000 2.950,000 Price Exing settlements, net (2) 268,904 122.455 Other, net 1.114,523 Total Funds Received 552,929.396 541,483,372 APPLICATION OF FUNDS:

Ad;iitions to utility plant (2) 33S,244,744

$ 26,599,3 31 Dividends en preferred stock 943,548 9M,411 Dividends en ccmmon stock 12,600,000 12,000,000 Re*irem>nt of debentures 120,000 120.000 Reacquisition and cance!I2 tion of preferred stock 1 99,630 Other, net 1,021,104 Total Funds Applied......

$ 5 2,929.396 S41,483.372 (2) P! ant addidens shown are befcre credits arising frem price $xing se:tlenen:s.

The accompanyin; actes are an :nt gr:1 part ci me financul statements.

t-A P ", '

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_6d 7

METROPOLITAN EDISON COMPANY LONG-Trax DEBT AND CAPITAL STOCK December 31, 1967 LONG-TERM DEBT OUTSTANDING IN HANDS OF PUBLIC (excluding sinking fund requirements due within ene year):

First mortg2ge bonds:

2%9 Series, due 1974..............

$ 24,500,000 39 Series, due 1977.

4,500,000 39 Series, due 1978 3,500,000 2%rc Series, due 1980 12,250,000 3%rc Series, due 1982 7,300,000 3%9 Series, due 1984 15,000,000 4%9 Series, due 1987 19,000,000 59 Series, due 1990....

15,000,000 4%9 Series, due 1992 15,000,c 0 4%9 Series, due 1995 12,000,000 5%9 Series, due 1996 15,000.000 Debentures (2):

4%Fc Series, due 1990 5,640,000 6%Q Series, due 1992 19,600,000 Total

$168.~ 90,000 Notes payable to banks,5 %Fe 2nd 6Tc, due within one ye2r to be rednanced S 6,000,000 CAPITAL STOCK:

Cumulative preferred stock, par value $100 2 share, 400,000 shares authorized:

3.909 Sefes,117, 29 shares cutstanding, c2112b:e at 5105.625 2 share.

3 11,' 2.900 4.359 Series, 33,249 shares cutstanding, callable 2t 5104.25 2 share.

3.324,900 3.35 9 Ser:es, 29,175 sh2res out;tanding, callable 2: 5104.00 2 share 2,91',500 3.309 Series, 18.122 shares cutstanding, callable at 5104.70 2 share.

1,312.200 4.45 Fc Series, 35,637 shares outstanding, callable at $104.25 2 share.

3,563,700 Total 5 23 ?91.200 Ccmmon stcck. no par value, 900,000 shares authori:ed. 859,500 shares outst2nding

$ 66,273,400 (2) At December 31, 1967 the annu2l sinking fund requirements 2:ncunted to $520,000.

Qaj 4 n;

~.,

3

NOTES TO FINANCIAL STATEMENTS

1. UTILITY PLANT:

costs which 2re recognized and 21! owed in that period f0f T2t.'~ making purposes. It is,the policy of the Corn-Utility plant is st2ted at original cost. In prior years the Cornpany followed the policy of capitalizing (by pany in connection with the t:nancial statements con-ta nned in registration statements pursuant to which charges to utility plant) the direct payro!! costs and cer-2nd in reports et nnancial conds-secunties are odered,ts of operations to the ho!ders of tain associated costs of Company personnel engaged in ti n 2nd f the resui the construction of such plant, but did not so capitalize the cost ui certain employee bene 5ts (such as pensions, life sucn secunties, to follow the basic accounting pnnaple t matching costs and revenues, tasang into considration insurance 2nd hospitaliz2 tion). The Company changed this aspect of the rate making process. In recent

-a rs.

this policy effec' ave as of January 1.1967 so that the cost of such benests applicable to such personnel is being the appiscation at tnis princ:ple has had part.cula.

ig-nificance in connection with certain reduccons in ins ne capitalized for all penods subsequent to 1966 As a 0'. ratee2W uestment ac.

' ' * * ^5 5'T result of this chance net income for the year 1967 was corded to these items has' diftered and consequently the increased by approximately $400.000, m2m in u hich these items have been refleced in such On January 20. 1966, the Federal Power Commission financial statements has also Jiffered.

issued a Ltice of Pnmosed Rulemaking relating tn the determination of the " net investment" of hydroelectric IA,,,/j:ej 0,p,,ri.rrio,r and Guideliver ad Rules.

protects licensed by the Federal Power Corrmission, and The regulatory agencies having jurisdiction over the 2 hearing enereon was held on December 13,1967. The Company's rates follow the policy of allowing onh Company has roined 42 other companies in submitting the estimated taxes actually payable for the period comments on this preposed rule urging that it not be after giv;ng edect to the reduction in income taxes adopted. The extent to which any such rule as may be attributable to the employment ei lieeralized depre.

2dopted would 2dect the Company s investment in its ciation and the " Guidelines and Rules; 2nd, therefore, licensed prmect is not presently ascertainable.

the provisions for income taxes in the accompanying income statements were directly reduced by amounts equal to the reductions in income taxes attnbutable

2. DEPRECI ATION:

en these items.

For rate. making and financial accounting purposes, the Company provides for depreciation at 2nnual rates terrumres Tn Credir. The Pennsvivania Public Utii-determined and revised penodically on the basis of ity Commissien has determined

• hat, far ratecaking studies by independent engineers tn be sufficient to pu rposes, it will permit charges to income in an amortize the origin 21 cost of deorec:2ble proper *v on 2 amount equal to the 3G investment credit arising dar-systematic basis over estimated service lives. which lives

'ng the period with cona.rrent credits in that amount are generally lonster than thote employed for tax pur.

to a reserve and the amortization of that re'erve over the roses. The Campany uses deprecation rates based on e5timated service ines or me related facilities with functional account groups which, on an aggregate com-the unamortized balance being apelied as a reduc

• ion posite basis, result in approximate 2nnusi rares or 2.71c, of rate base. The Revenue Act at 1964 prohibits Fed-and 2.72", for the years Ic67 2nd 1966.

eral rate regulatory agencies f rom requiring recoenition of the crecit for rate making purposes more rapidly than over the estimated sernce lises of the related

3. CAPITAL SURPLUS:

facilities. Under the<e accumstances. :ne Company is c!atsifying such concurrent credits as a reserve. How-Dunng 1967 capitai sqplus increased by $3,000.000 ever, in accordance with the Uniform 5ystems of Ac-as a result or a c2sh contneution by the parent company.

counts or the Pennsylvania Pubuc Utility Commission 2nd tne Federal Power Commission. the accumulated unsmortized investment credit has been c!asufiad as

4. UNAPPROPRIATED EARNED SURPLUS:

2 deferred credit in reports to those Commiss:ons.

Cert 2:n limitations on the det!2 ration of cash dividends on common stocic are contained in the Company's mort.

6. COMMITMENTS:

gage, ueben*ure.ndenture ano charter, the most resenc.

tive presentiv being that contained in the mortgage. under The Company expects to make expenditures or approx.

which $3.360.052 of the balance of earned surplus ze imately $5000409 for plant additans during 1964 and December 31,1967 are so restnctel

n that connect

en had incurred substantial commitments 2t December 31, 1967 The Co*nr2nv plans to issue

5. INCOME T.%XES:

The Company icins with its parent and others in 5 Jing

7. PENSION PLAN:

onsolidated Federal income tax returns. The returns The Compaar has established a pensmn pian for its througn 1959 have been audited and all desciencies have empi vees and has made provinon to fund the cost or been paid. The completion of h audits for 1960 throuah such plan. In accordance w:tn the recomrnendations of i962 is anticipated shortly and

• is the opinion of tax counsel to the Company that the disoosition ci such audits neependent actuan21 ansultants. enctae as of J2nw for those years will not resuit in ar$ material desc.encies ary 1.196* the Company medined the actuarul 255 ump.

tions relanna to tne plan to give reccaniten to increased The consolidated Feder21 income trt liability is allocated among the particpants in the consolidated' returns pur.

Iongevity and higher e2rninzs expectat.ons ter, the funds and to initiate tne 2mortiranon or unrealired ap p r-ca-saant to agreements generally designed to ilocate such liability in proportion to tt:e participants' respecnve con-gen of secunties heid in the pensyn runds Results of tnese changes were not materui. ae past service cost enoutions to such liability.

of the plan is fuliv fundei The annuai current serwce As 2 public uttHty. the revenues cf the Comp 2nv in cost tar the rear 19M 2nd :he conenbution for such 196*

any period are dependent to 2 signiscant extent upert the cost was $ 1.100.000.

Ud 6V 9

LYBRAND, ROSS BROS. & MONTGOMERY CERTIFIED PUBLIC ACCOUNTANTS To the Board of Directors, METROPOLITAN EctsoN COMPANY, READING, PENNSYLVANIA.

We have examined the balance sheet of Metropolitan EJison Company as of December 31,1967,6e te!2ted statements of inccme and unappropriated earned surplus and the statement of source 2nd application of funds for the year then ended. Our examination was made in 2ccordance with gmer211y accepted auditing sundards. and accordingly included such tests of the xcounting records and such other auditing pro-cedures 25 we considered necessary in the circumstances. We previously examined 2nd reported upcn the snancial statements for the year 1966.

In our cpinion, the aferementioned statements present fairly the snancial pos: tion of Metropolitan Edison Company at December 31,1967 and 1966, and the results of operations 2nd the source and 2pplication of funds for 6e years then ended, in con-fermity with generally accepted accounting principles 2pplied on 2 consistent basis.

LYBRAND, Ross Bros. & MONTCOMERY Philadelphia, Pennsylvania.

January 29, 1963.

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'J Tl LJ T I'E 3 O 0 3 P O ~', ' T ' '_' N AND SUBSIDIARY E L E CTRIC POWER COMPANIES 50 Pine Street, New York, N. Y.10003 Telephone : Whitehall 3-5600

- _ ~... - -

Soard of Cirectors J. LEE B AUSHER - - - - - - - - - President, Infants Socks. Inc., Reading, Pa.

HO31ER N. CHAPIN - - - - - - - Executive Vice President, 31assachusetts 31utual Life Insurance Company, Springtield. 3Iass.

JOHN H. DeVITT - - - - - - - - - President. Hammermill Paper Company, Erie, Pa.

DONALD A. HENDERSON - - - - Financial Vice President. Twentieth Century-Fox Film Corporation, New York, N. Y.

KENNETH L. ISAACS - - - - -

Chairman of 3fanachusetts Investors Trust and Chair-man of 3Iassachusetts Investors Growth Stock Fund.

Boston, 3Iass.

WILLIA 31 G. KUHNS - - - - - - - President, General Public Utilities Corporation. New York, N. Y.

GEORGE H. LANIER, JR. - - - - President of Turner Halsey Company Inc., Nn York.

N. Y. and President of 3Iount Vernon 31 ills. Inc., Balti-more, 3Id.

CHARLES B. STAUFFACHER - - Executin Vice President, Finance and Administration.

Continenul Can Company, Inc., New York. N. Y.

ALBERT F. TEGEN - - - - - - - - Chairman of the Board, General Publie Utilities Cor-poration, New York, N. Y.

HAROLD V. BOZELL - - - - - - Retired, Larchmont, N.

Y., Director Emeritus of

~

General Public Utilities Corporation, New York, N. Y.

Cnicara WILLIA 3I G. IWHNS, President EDWARD J. HOLCO3IBE. Comptroller GEORGE J. SCHNEIDER. Vice President ROY P. 3IILLER,.lssi.Stant Comptroller ROBERT H. SCHUTT, Treasurer HELEN 3I. WETHERELL. Assistant Secretary JA3IES B. LIBER 3LLN, General Counsel LILLIAN 3I. NICKL Assistant Treasurer Oniei Executiv es of,3 m nic.la.- < 0 : e.a:in g 0.:~ c r~

m Jersey Central Power & Light Company } Morristoten, N. J.

WILLIA 3I H. 3fcELWAIN h.ew Jersey Power & Light Company

)

RALPH F. BOVIER, Pennsylvania Electric Company, Johnstoten, Pa.

' WILLIA'I R. SNYDER, 3Ietropolitan Edison Company. Reading, Pa.

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-r.s..v;snt M p,-. e First National City Bank Reg:strar & Transt'er Company 53 Wall Street 140 Cedar Stre.>t New York, N. Y.10015 New York. N. Y.10006

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ELEC TRIC PO WER C OMPANIES Util

ers and Directors 2-9 President's Letter Jersey Central Power & Light Company 10-11 Analysis of Earning New Jersey Power & Light Company 12-1:j Systent Map Pennsylvania Electric Company 14-15 Electr:e Generativu anii Sa!n statistic 3 Metropolitan Edison Company 16-21 Financial 8taternents and Auditors' Ileport The Annual.'.leetin g )f stockho ders of Geneal PAile U::lities Corporation wdl be held ni the tudit o ri.im..:rou n.1 :'+ r, On e '!!.a w Manhattan Plaza. New Yoric, 'i Y. on Loda.v, Apr:1 1, 196 2 at 2:00 o' clock in the aftunoon.

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.-s se i AND S UBSIDI A RY ELECTRIC POWER COMPANIES 80 Pine Street New York, N. Y.10005 Telephone: Whitehall 3 5600 m--

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To Our Shareholders 1967 was a year in which the GPU Sys'em continued to progress. It was also a year in which several new problems were encountered. Over-all, it demonstrated anew the dynamic character of the electric utility business.

PolNTS CF PROGRESS

• Gross Revenues passed the S300 million mark-a gain of 7H G over 1966.

• Sales exceeded 16.9 billion kilowatt-hours-a gain of 7G over 1966.

• Average use per residential customer was 5.100 KWH-a gain of almost 7b 9 over 1966.

• Net Income was 551.9 million-approximately a 6M G gain oser 1966.

• Per Share Net Income reached $2.09-a gain of 5c per share over 1966 despite the dilution resulting from the sale in December 1966 of almost a million GPU shares.

Dividends were increased to 51.56 per share a 60G increase during the past decade.

• Plant Additions (plus $8.8 million in nuclear fuel) amounted to $176 million-more than double those made only rive years ago.

Consolidated Assets passed the 51.5 billion mark.

• Research Projects, involving coal-fired and nuclear generation and underground distribution f acilities, were expanded.

.n:n:Ms mccunt: RED Power Costs were high, principally as a result of the delays in the completion of new generat-ing capacity.

Interest Costs on utility borrowings reached the highest level in more than 30 years.

• Wages and Related Costs rose sharply.

A Maior Service Interruption occurred in the power pool of which the GPU System is a part, giving greater emphasis to the steps being taken to achieve an even higher lesel of service reliability.

Community Relations are increasingly atiecting the installation operation t.ad cost of facilities.

Increased Competition for the energy market is being experienced from gas and oil suppliers.

These developments are discussed in the following pages of this report, which contains a map showing the location of the serv;ce areas and major generating and transmission fac:lities and also contains the GPU System tinancial statements and statistics.

85~153

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..... ; w o.U. R:55 T'ie Board of Directors increased the fourth During the past decade, the GPU System qua ter dividend to 39c per share from the has achieved an average growth rate of about 37h c per share paid in the previous four

/ H G in annual KWH sales and about 65 in quarters, so that the present annual dividend revenues. In 1967, while KWH sales increased rate is $1.56 per share. The record. at 5-year about 7Fc and thus fell slightly below the ten-intervals, of earnings and dividends over the year trend. revenues increased 7h % and were p st 20 years, giving retroactive etfect to the above that trend. This result was attributable 1959 stock split and the 1962 stock dividend, is shown below:

to the sienidcant increase in the residential and Per GPU Share commercial KWH sales and also to the fact casa N

" d'"d that in 1967 we began receiving payments from other utilities for the transmission service 19 "

S ~09

• 29 1952

.57

.70 provided by our share of the 500,000 volt 1937 1,29

.93 transmission system referred to below.

1962 1.71 1.15 1967 2.09 1.52 Average use per residential customer main-tained its steady upward progress, and the price per KWH to residential customers con-In 1967, the GPU subsid.ianes spent 3176 tinued to decline. This increase in average million for plant additions including nuclear usage which redects the fact that we have fuel. This represents an all-time hich and vet 25,000 all-electric homes in our terntory.

is appreciably below the amounts to be spent coupled with the addition of more than 26,000

/, m in 1968, and in each of the succeedine several tiew customers during 196. dicates the satis-vears. The 1967 expenditures were directed factory growth potential of the area we serve-

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to a wide variety of projects, indicating the a potential which should be even more fully breadth of our constant e: Tort to achieve better reah. zed as new hichways under construct:en

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and more economical electric service. For ex-are completed.

ample, upon completion of the mine-mouth and nuclear generating capacity additions now

2. '" " M under way, which are discussed below, our accrecate capacity will increase 120'~c from Commen stock earnings in 196s amounted 3.0 million KW at the end of 1967 to 6.6 to about SSI.9 million, an increau of $3.1 mil-million KW bv the end of 1973.

lion or approximately 6H G over the earn gs m

for 1966. On a per share basis earnings were The projects on which these 1967 expendi-52.09 for 1967 as compared with 1966 results tures were made included the following:

of $2.C ' on average shares outstanding and 51.97 on shares outstanding at year-end, re-decting the sale of u Jut one million additional The tirst 900.000 KW unit of the Keystone shares in December,1966.

station in which we are participating with six 3

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other utilities was completed and placed in has advised us that it now expects that the service last August; the second 900,000 KW unit will be available for service by the end unit a: that station is scheduled for completion of 1968.

th, summer.

We have two other large nuclear units under Substantial progress was made on the contract which are to be added to our system.

1,280,000 KW Homer City statica in which The first of these is an 840,000 KW unit being we are participating with another utility and built in Pennsylvania. It is scheduled for which is scheduled for completion in 1969-70.

completion in 1971, and construction work Construction was begun on the 1,800,000 for the unit began in 1967. A similar 840,000 KW Conemaugh station in which we are par-KW unit is to be constructed in New Jeniey and ticipating with eight other utilities; this station is scheduled for completion in 1973. Substan-is scheduled for completion in 1970-71.

ial progress was made in 1967 in the planning and desien work for this unit.

Our aggregate share of the capacity of

~

these new coal-fired mine-mouth stations is approx:mately 1,250,000 KW. Since we have in addition 750,000 KW of relat vely modern The new 330,000 KW Yards Creek pumped i

mine-mouth capacity, when these three stations storage station which we own jointly with an-are completed, our aggregate mine mouth other utility operated satisfactorily in 1967 capacity will be brought to 2,000,000 KW.

and is making a substantial contribution to service reliability. We and the other participat-ing utility have had pending for some time an Disappointing delays were experienced in application to the Delaware River Basin Com-m ssion for pennission to Md a WO,000 the construction of the Oyster Creek 640,000 KW nuclear unit which was originally sched-KW companion pumped storage station which,

" * ## *' NPresents a funhu development uled for service in 1967. Primarily as a result of such delays, it was necessary for us to pur-of the Yards Creek project. This additional chase about 15G of our electne enerev re-station would be pan of a comprehensive quireraents from neighboring utilities at costs plan which also involves the construction by the Federal Government of a flood con-appreciably above the cost of our own genera-

• " *"EP Y "

tion when it is available to meet our ! cad and reserve requirements. For this reason, the GPU system spent just over $23 million for Gap. Hearings were held in August.1967 on purchased power in 1967, compared with the pr p sed amendments to the comprehensive 513 million expended for the same purpose in plan which would make provision for our pro-1966. The General Eectric Company, which posed pumped storage project and the matter is the construction contractor as well u the is awaiting decision by the Delaware River principal supplier for the Oyster Cre:k unit, Basin Commission.

4 b'

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In northwest Pennsylvania, we are con-structing with another utility the 400,000 KW The load growth of our 3ervice area neces3i-Seneca pumped storage station which will tates a continuing program of rtrengthening utilize tne Federal Governinent's Allegheny our distribution network. This involves not River reservoir. Suhtantial progrers on that only overhead and underground distribution station was made during 1967 and it is lines but additions of transformers, lines scheduled to be placed in service in 1969.

directly to customer's premises, meters and pro-We are also participating with the City of tective equipment. Over all we spent more Jersey City, N. J., in a combination potable than 568 million on this program in 1967.

water supply and pumped storage develepn.ent which will provide 130,000 KW of generating capacity. Plant designs were completed in In 1967, we entered into an agreement with 1967 and it is expected that construction will the Atomics International Division of North be in.. mated as soon as the requisite Federal American Rockwe!! Corporation for ;1 joint Power Commission licenses are received.

research and development program looking to the possible decision in 1970 to install in our system a 350,000-500,000 KW sodium-We completed during 1967 our portion of cooled fast breeder nuclear reactor. The fast the Keystone 500,000 volt transmission system breeder reactor represents a particularly attrac-which is being constructed by the companies tise source of electric generation since it ha3 the comprising the Pennsylvania-New Jersey-potential of utilizing approximately 709 of Maryland CPJM") interconnection. Our seg-the inherent energy in natural uranium as ment of this transmission system involses an against the approximately 2Q which can be investment of more than $51000.000 and utilized by present day nuclear generators. On covers approximately 316 circuit miles of the other hand, it poses a number of challeng-transmission lines. Other segments of the ing technical and economic problem 3 and it 500,000 volt system were also completed in is the function of the research and develop-1967 and early 1968 by other participating ment program to identify those problems in companies, so that it is now used to deliver detail and provide satisfactory solutions for power from the Keystone station as far east as them.

load centers near Newark and Philadelphia as well as to increase por r exchanges wi'h other Our 5.000 KW Saxton research and experi-neighboring utilities. Further additions are mental nuc! ear unit, which was 3cheduled to be being made to the 500,000 volt system by shut down in 1967, has continued to be so participating utilities and when those facilities valuable as a research and training facility are completed, the 500.000 volt system of the that we have made arrangements to cont.nue PJM companies will embrace approximately its operation through 1968. The major costs S75 circuit miles.

as>ociated with the continued operation at this 5

Y b.?IS

unit are now being borne by Westinghouse many of the economic barriers to underground Electric Corpore. tion, which has been a par-installation can be overcome.

ticipant in this project since it was undertaken in 1959.

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At our Portland Station, we and the Mon-E santo Company have been conducting a re-pansion program described above, the sub-search project directed to the elimination of sidiary companies sold a total of $111 million sulfur smoke emissions from coal fired gener-of long-term debt securities and GPU made ating stations. The m... l tests of this project cash capital contributions to the subsidiaries of itia were completed in 1967 and were encourag-533.5 million. The balance of the funds were ing. Equipment modifications arc being made obtained from short-term bank loans and cash and additional tests will be made in 1968.

generated from operations.

The feasibility of an expanded version of The recent rapid rise in the interest costs of this project at our Seward Station is being debt securities is illustrated in the table below investigated.

which summarizes the securities issued by the subsidiaries.

For the past two years, one of our sub-sidiaries has been engaged in a program

'3 to find means to reduce the cost, and thereby We anticipate construction expenditures of increase the feasibility, of installing elec-approximately $205 million in 1968 and an tric distribution facilities underground. In aggregate of about $450 million for 1969 and the process, new machinery has been de-1970. We expect to meet a part of the 1968 veloped, new uses have been found for existing capital requirements through the sale of ap-equipment and new materials have been em-proximately $100 million of additional long-played. Other utilities in other parts of the term debt securities by the subsidiaries and country are engaged in similar erYorts and, as the sale by GPU of about S30 to $35 million this experience is pooled, we are hopeful that of additional Common Stock. The balance is m,.-

SECURITIES ISSUED !H 1967 2,' 3 ;EL.klio ', " :" d '

~C 57 :

Description Years Net Pducipal or to Interest 1967 Company Ameunt Bands 31:Ltunty cost January Jersey Central S15.000.000 Debenture 25 5hc

.ipril New Jeney Power 10.000.000 First Er rage 30

5. 9 7 ",

June Penelec 26.000.000 First Ermage 30 6.15 "c September Jersey Central 30.000.000 First Ertrage 30 6.527 October Met.Ed 20.000.000 Deb nture 25 63.M October Penelee 10.000.000 Debenture 25 6.65 %

6 bb 'I9

9

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expected to be obtained from short-term loans December 26, 1967, the PJNI member com-and funds provided from operations. Defini-panies joined in a new electric service reliability tive plans have not been completed with resp compact under the terms of the Niid-Atlantic to this sale of GPU Common Stock, but it is Area Coordination Agreement ("SI AAC" L expected that we will sell about 1% million The SIAAC agreement will set up an area e rdination committee to review on a continu-shares through a 1-20 ciIering of rights to stockholders about the middle of 1968.

ing basis the principles, procedures and stand-ards relating to matters atfecting the reliabtlity of the bulk transmission of energy within its

'7'.w??*

t area and to review and evaluate the planning On the morning of June 5,1967, a major of generation and transmission facilities rela-interruption in electric service occurred in a tive to the bulk electric supply system of the member companies.

large part of the PINI service area. About 45cc of the customers served by the GPU System were atYected. Within three hours after the in-terruption, service had been restored to about After lencthy study, we have concluded that 50co of the affected GPU System customers t is desirable to form a service company to and within five hours all service had been serve as a corporate vehicle to take over some restored. The interruption occurred on the eve of the technical functions now being provided of energizing a part of the 500.000 volt system by coordinating committees of the subsidiaries and the initial operation of the first Keystone and the GPU sta!I. The service company will unit, which are referred to above. It is believed provide a means for achieving even more etiec-that if those facilities had been in service, the tive use of our personnel, as we!! as modern interruption woulu not have occurred.

equipment which can be best employed on a system-wide basis. It :s expected that the The Federal Power Commission has char-service company will be organized during acterized the electric utility service provided 1968 and that it will be a 3ubsid.tarv or GPL.

in the United States as being the best in the It :s also expected that the service company world but there is still room for improvement

~

will have om.ces m Storristown, N. J., Readine, although complete!v uninterrupted service 7

Pa. and Johnstown, Pa., as well as New 'r.orx.

cannot be achieved. A number of corrective measures have been taken or are in process

~ of its funcuens wil' thus ce and that many carried out at existin2 locations.

and it is believed that these measures, together with additional generation and transmission facilities now being built by our system com-We w nt t be g od citizens of he com-panies and other PJAI companies, will reduce munites in which our facilities are !ocated and the possibility of another such interruption.

which we serve. To that end, we are constanth In that connection, and to augment the striving to take environmental and aesthetic policies and procedures already in e:Yect, on considerations into account in the planning and 7

.e

operation of our facilities. As noted above, we tional 1,300,000 KW of' pumped storage are engaged in research projects designed to capacity on the Delaware River referred to reduce the sulfur-smoke emissions to the at.

above.

mosphere and to facilitate the underground in-stallation of distribution facilities. The prob-lem, however, is to achieve environmental Although there is little direct competition improvement in an orderly fashion, so as to avoid compromising reliability of service or between electric utilities, since the duph. canon of facih..ues mvolved m. such competition would our ability to obtain the funds continuously re-be wasteful, the competition between electric quired to meet our increasing loads.

unlities, on the one hand, and gas utih., ties and In the past year, the subject of environ-oil suppliers, on the other, for the energy mar-mental considerations has particularly encaced ket is becoming much more vigorous. Investi-

~~

the public interest. Federal and State legisla-gations have been initiated by Congressional tion and regulatory codes have been proposed committees and by the Federal Trade Commis-sion with respect to the practices being em-or adopted with the objective of reducm.e

~

sharply the emission to the atmosphere of pol-ployed in this competition. We have reviewed lutants from combustion of coal and oil by all our own practices in this respect and are industrial boilers, including those at electne satistied that they are sound and well-justined and in keeping with the standard of vicorous generating stations. CompL. mace with such re-quirements will, in some cases, require more but fair competition. We are also convinced that electricity is the most useful form of costly fuels and, in others, will require capital expenditures for plant modifications. Ulti-energy and that the underlying economic mately, it will be possible to meet the objectives characterisucs of the electric utility industry of such legislation and codes, but a reasonable will enable it to achieve a latpt share of the period for orderly transition is required.

t t 1 energy market-For this reason, we view the competition for the energy market as an Recreational interests are also receiving in-pp rtunity to achieve improved performance creased attention. We are working closely with and the resulting benetits to our customers various governmental agencies that are in-and stockholders.

volved in such acdvities. We recently received the approval of the Federal Power Commis-

'M-3

~

sion of the recreation plan submitted for the Consolidated net income for the year 1967 Yards Creek 330,000 KW pumped storage was increased by approximately 51.2 million plant, and we are participating with the Dela-as a result of (1) the initiation of the ware River Basin Commission in a research capitalization of the cost of certain employee study related to the impact on tishery resources benedts for System personnel engaged on con-of the proposed multi-purpose comprehensive struction work, which increased net income by plan which we anticipate will include an addi-approximately 52.1 million, (2) the increase a

Y '.' &

in the depreciation rates of :e New Jersey subsidiaries which decreased n:t income by NIr. W. R. Snyder retired as Presidem of about $1.1 million, and (3) a c'.ange in the Stetropolitan Edison Company on January 31.

t actuarial assumptions for the System pension 1968. Air. Snyder

<ed the GPU System for funds which increased net income by about 43 years and had been President of N!anila

$ 200,000. These ma:ters are more fully dis-Electric Company for 9 years before becoming cussed in the notes to the financial statements.

President of Alet-Ed.

Str. G. R. Parry has been made Chairman We have also concluded that it would be of the Board and NIr. Frederic Cox President appropriate to increase the rate employed for and chief executive officer of Alet-Ed.

the accrual of interest during construction in G'

order to give recognition to the higher costs of capital now being experienced. However, Our large construction program for 1963 this increase shou!d be reflected in the accounts and subsequent years will require our utmost only to the extent that it is recognized for rate-etTorts to finance and complete. Nevertheless, making purposes and we, therefore, initiated we are confident that by pursuing this program steps to review the matter with the State and we will have provided the opportunity for con-Federal regulatory agencies. As this report tinuing both to serve our customers with in-goes to press, the regulatory agencies have not creasing amounts of dependable low-cost power cor pleted their review, but we anticipate that and to achieve a full anci fair return on the an increase in this interest during constructica stockholders' investment.

accrual rate, which will correspondingly in-crease earnings, will become e:fecave during

[/

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1968.

President It is with deep sadness that we report the death on November 17.1967. of Sir. William E. Warner. Secretary of GPU. Afr. Warner served GPU and predecessor companies faithfully for 35 years. His competence and personal qualities are sorely missed.

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weermem=-ases (IN TIIOUSANDS) 1967 1066 1965 OPERATING REVENUES Electric

+009.911

-254.312 9269.062 Steam and Water 1.074 1,045 1.002 Totals A310.945

'259.360 1270.054 OPERATING EXPENSES Operation 4124.994

-111.s!N s100.710 3Iaintenance 24.109 25.057 24,757 Depreciation 37.500 34.055 32.071 Federal Income Tax 13.652 15.314 15.104 Investment Credit less Amortization.

3.452 1.576 2.226 Other Taxes 23.232 20.574 19,272 Totals

+227.293 9211.507 S197.470 OPERATING INCOLIE

• 93.692 9 77.353 S 72.614 Other Income 176 101 200 GROSS INCOLIE

• 43.46-77.654 s 72.514 INCOLIE DEDUCTIONS Interest on First 3Iortgage Bonib and Debenture,. - 31.525 3 25.520 9

Other Interest 2.431 0.25'

..o ts Interest Char: red to Constructwn f.. - 4.) '

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9 (3.42S)

Preferred Dividends 3.165 3.190 3.416 Other 94 121 343 Totals s 29.373 4 23.i36 s 23.610 EXPENSES, TAXES AND INTEREST, NET-GPU 2.n 19

+ 3.272 9 2.750 BALANCE FOR COLDION STOCX

- 31. 76

.- 49 746 s 46.454 CASH DIVIDENDS PAID DURING YEAR

7.540

+ :: 666

• 32.656 RETAINED EARNINGS 14.2P6

14.750 3 13.799 SHARES OUTSTANDING (thousands)

Average During Year 24,805 JJ.320 23,936 Year End 2,505 Js.305 JJ,SJ6 PER SHARE Earnings Average Shares.

82.00 82.0s 31.25 Year End Shares S2.00 31.97 S1.05 Dividends Paid.

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1964 1963 1962 1961 1960 1950 1958 v252.266 e235.927 1226,170 6213.247 4.'03.7.4 8194.963

-151.479 1.019 1.061 1.061 1.069 1.079 1.065 1.064 3253,253 e239.955 5227,201 3214.016 e204.513

+ 196.031 5152,543 e i9.999 5 54.943 S 52.600

$ 74.634 A 70.3.J.;

? 69.611 S 64.659

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29.997 25.229 26.405 22.505 22.51 21.252 15.925 21.505 20.007 16.995 23,757 20.374 23.174 "1.954 1.439 i,770 1.42S 19.267 16.429 15.067 14.714 13.419 12,504 12.250

154.u14 9174.006 9166.252 S156.659 5150.13G S145.502 S107.520

$ 69.171

$ 65,962 8 60.949 8 57,657

- 54.677 9 30.229 5 44.720 119 105 34 SS 76 79 94 5 69.090 s 66.057 5 60,950

, 57.745 3 54.753 5 30.30s 4 44.i17 9.236 5 15.005 e 17.177 s 16.655

, 15.301 s 14.055

+ 12.545 1.576 1.179 920 1.004 197 559 506

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'1.4941 t 2.911' O.005, 0.450

.J.450 3.4 ~ 0 3.4 ~20 3.450 0.450 3.450 491 520 405 242

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- 22.571 4 22.274

• 19.511 9 19.455 4 15.277

• 15.491 4 13.464 2.41!

? 2.210 5

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1.::3 3 5 1.709 9 1.609

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• 40.701 9 38.4s3

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$ 27.504 8 26.769 25.507

- 20.694 4 21.010 12.523 S 10.197 9 9.714

• 9.331 x 9.421 8 4.700

- 13.121 a-JJ.SJG JJ,SJG JJ.3JG JJ,70 23.732 JJ.Gli 21.706 1.1.5JG JJ.iJu JJ.5JG 2;1,3JG JJ.73 '

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b-serve sections of New Jersey with a pcculation of about Pittsburgn Q' th 1.4 miHicn people and ccmprising apprcximately 3.300 square miles er accut 43?i cf the tctal area of teaState.

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provides service tc the eastern and central secticns 2

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12 bb ~IM

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a 1967 Metropolitan Pennsylvania New Jersey Edison Electric Subsidiaries Company Company GENERATING CAPACITIES AND PEAKS:

Installed Capacity-KW 902.400 594,300 1,190.000 Firm Power Purchases.

Totals 902,400 594.300 1.I00.000 Annual Peak Load 1.227.000 912,000 1.179,000 NET SYSTEM LOAD (megawatt hours):

Net Generation 3,701,430 5.122,761 7,215.659 Purchased 75,072 70.159 153.614 Net Interchange 2.566.606 196.317 (710,575)

Net System Load 6.643,105 5.359.237

- 6.6es.725 STEAM PRODUCTION DATA:

Average Btu (per net KWH) 10,969 10.116 10,506 Fuel Cost (c per million btu) 31.0 31.1 21.5 Cost of Fuel (mills per WH) 3.40 3.15 2.26 Total Production Costs (mills per EWH) 4.67 4.13 3.24 ENERGY SALES (megawatt hours):

Residential 2 319.991 1.335.051 1.524'".o Commercial.

1.382 S52 757.344 1.06 Industrial 2.152.550 2.149,033 2.771.ce0 All Others 203.643 335.121 294.535 Totals 6.055.066 4.560.479 5.962.665 Gain Over Prior Year s.oro s.4ro 3.5 '7e OPERATING REVENUES:

Residential S 59.415.654 0 5,134.663 5 42.702.700 Commercial,

33.383,097 11.990,199 24> o0 :?41 Industrial 28.752.236 27,199.576 13..

35 Other 4.344.377 4.373.942 3.

.c4 Total, from KWH Sales 5123,595,384 S74.747.950 S104. m

.o Other Reyenues 1.252.200 1,335.311 4.155.o13 Totals S125.177.564

$7 6.0. _..

5109.050.7s3 Gain Over Prior Year e.oro 7.6 To

6. 5 '.'c CUSTOMERS-YEAR.END :

Residential 450.009

'50.551 362.579 Commercial.

50.425 31.119 46.663 Industrial 2.224 2.515 5.225 All Others 611 2,124 621 Totals 501.059 256.309 435.391 AVERAGE USE BILL AND PRICE:

Residential Cuatomers :

KWH L'se Per Customer.

5.220 5.356 4.791 Annu11 Bill

$133.75 9113.35 9112.17 Prie : Per KWH.

2.56c 2.10e 2.34e

( ) Indicates red Sgure

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s Consolidated 1967 1966 1965 1964 1963 9.957,600 2,502.600 2.754.600 2.729.500 2.719 ; V 165.000 165.000 112.000 2.957.600 2.970.600 2.952.600 2.541.500 2.719.500 3.236.000 3.071.000 2.596.400 2.657.400 2.463.600 16.069.550 15,566.349 15.292.106 14.545.462 13.504.792 295.545 1.753.005 331.310 153.552 12.236 2.352.34S 259.973 459.274 35.217 (163.2001 1:.721.073 17.609.630 16.112.690 14.740.561 13.653.525 10.494 10,455 10.355 10.269 10.255 26.5 25.5 25.4 24.9 25.7 2.51 2.71 2.63 2.56 2.63 3.56 3.69 3.61 3.55 J.66 5.452.022 4.954.391 4.550.093 4.202.100 3.947.407 3.222.396 2.945,550 0,645.546 2.417.691 2.216.453 7.403.493 7.004.340 6.i L7.:0 5.657.419 5.155.:25 423.209 913.000 90s.259 556.715 523.301 16 511.210 15.547.320 14.449.675 13.223.930 12.172.959 6.59 9.7 9 9.39 5.6' c

.3%

$100.303.017

$120.764.954 3112.260.191

$105.795.473 9101.997.500 72.773.937 67.560.022 62.934.000 55.554.550 34.:00.050 37.564.757 53.710.321 77.721.562 72.779.900 65.061.544 12.596.793 13.265.121 13.400.965 12.575.592 11.557.660

$30:>.535.534 9255.300.444 S266.317.0; t 1250.041.545 9236.716.544 6.372.752 3.011.545 2.74-e.564 2.224.040 2.210.455 9009.911.256 9256.311.996

$269.061.915

$252.265.5 45 S235.927.332 7.5 %

7.2 9 6.T re 5.6 %

3. 6 '~c 1.053.439 1.059.295 1.032.496 1.007.791 995.15; 125.207 126.363 121,144 121.691 119.535 9.064 9.959 9.909 9.774 9.693 3.357 3.275 3.154 3.113 3.036 1.224.959 1.195.595 1.169.733 1.142.369 1.117.425 5.107 4.755 4.452 4.235 4.035

$12'. 3 5 5113.20 9109.54 9105.94 9104.27 2.35e 2.42c 2.4 c 2.50c 2.3 5c

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15

LYBRANO. ROSS BROS. & MONTGOMERY CERTIFIED Pustic ACCOUNTANTS To the Board of Directors and Stoc.W>iders.

GENERAL Pt:aLIc UTILITIES CORFoRATION, New Yc,rk, New Ycrk.

We have examined the balance sheet of General Public UtiLnes Cerveration and the consolidated balance sheet of the Corporation and Subsidiary Companies as of December 31.

1967, the related statements of income and unappropriated earned surplus.ind the consoli-dated statement of source and application of funds for the year then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting recorca and such other auditing procedures as we considered necessary in the circumstances. We previously examined and reported upon the finacial statements for the year 1966 and the consolidated statements of source Jad application of funds for the years 1963 through 1966.

In our opinion, the accompanying statements (pages 17 thrcu2h 24) pacc: fairly the Scancial position of General Public Utilities Corporation and cf the Corporation and Subsidiary Companies consolidated at December 31,1967 and 1965. af.d ce c!ated results of operations for the years then ended and the consolidated source and application of tunds for the years 1963 through 1967, in conformity with generally accepted zecounting pnnciples applied on a consistent basis.

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February 5,1963.

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CONSOLIDATED STATEMENTS OF SOURCE AND APPLICATION OF FUNDS Years SOURCE OF FUNDS:

1967 1966 1965 1964 1963 Consolidated net income (see page 22)

S 51,576,074 S 48,745,552 3 46,454.295 4 44.107,971 $ 41.602.76.1 Depreciation (Note 2) 37,519,963 34,057,451 32,371,055 29,996,771 25,229,119 Investment credit, less amortization (Note 4) 3.451,400 1.575.700 2.225.000 1.40s.000 1,769.500 Total S 93,147.437 3 54,675,733 $ $1,051,250 $ 75.542.742 5 71.601.352 Sale of bends and debentures 111,000,000 70,000,000 72,000.000 49,000.000 19,000.000 Sale of common stock of the Corporation 27,327,204 Bank loans 27,750,000 10,350,000 20.720.0JO Installment proceeds from sale of 3Ianila Electric Company (Note 3) 5,624,317 5.615,147 5.595.350 5.624.121 5,622,021 Price :ixing settlements, net (a) 935,417 519,762 145,001 4,227,456 Proceeds from sale of pl:nt (a) 11.703.317 3.000,000 Other, net 5.057.515 4,063.355 3.255.704 Total Funds Received $235.460.171 S206.551.661 S174.561.363 9142.660.023 +116.u43.406 APPLICATION OF FUNDS:

.idditions to utility plant (a) 5167,641,531 5162.654.096 5126.703 758 9 05.263.516 9 75.537,311 Investment in nuciear fuel 5,524,235 125,973 Cash dividends on the Corpo.

ration's common stock 37,550,140 33.966.407 32.655,564 30.957.317 29.050.405 Payment of bank loans 4,400,000 9.340.000 Payment of serial bank loans (Note 5).

5,555.556 5.555.555 5,555.556 5.555.555 5.555.556 Retirement of long. term debt (sinking fund requirements )

4.2G5,000 2,447.000 1.350,000 1.070,000 540,000 Reacquisition and cancella.

tion of preferred stocs.

1,799,630 3,566.155 463.635 Loans to non.adiliated ecal mining companies (Note 7) 950,000 Other, net 13,640,409

2. On.134 Total Funris.ipplied 9235,460,171 3206.551.661 S174.561.363 S 142.6 M023 + 116.9 43.406 ta) P' ant additions shows are before credits arising frem price inng sett!ements 2n1 the sa:e of wtere,ts n certa:n p ro jects.

The accompanying notes are an interal part af the baciai s:stemer.tt.

M2 2 r3 '7

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STATEMENTS OF INCOME AND UNAPPROPRIATED EARNED SURPLUS For the Years Ended December 31,1967 and 1966 1967 1966 INCOME:

Dividends from subsidiaries S 54,529.161

$ 52.272,797 Interest on letters of credit (Note 5) 639.607 523,704 Totals

$ 55.455,765 S 53.096.301 EXPENSES, TAXES AND INTEREST:

General expenses s 1,676,145 s 1,590.555 Taxes (Note 4)

(44,525) 75,733 Interest on serial bank loans (Note 5) 1.225.266 1.501.215 Other interest, net 421.599 625,000 Totals S 3.275.7f 5 s 4.095,545 NET INCOME

$ 52,299,950 3 49.000,653 UNAPPROPRIATED EARNED SURPLUS:

Balance, beginning of year 155,650.271 140,446.025 Totals

$207,600.251

$159,446.675 Dividends on common stock 37.550.140 03.9 6.407 Balance, end of year

$170.110.111 5155,450.271

(

. Indies:es red :!gure The secompany:ng notes are an integral part ut the :inaneist tgwnd.[h 18

..: n

..-s

. a. t,s BALANCE SHEETS December 31,1967 :nd 1960 ASSETS:

1967 1966 INVESTMENTS:

Common stock.if subsidiaries

< 470.106.* 14 94:Di.t:06.954 Letters of credit (Note 5) 16.443 440 21.912.075 Other 20.000 Totals 4 4 -6.5..29 4 545s.535.929 CURRENT ASSETS:

Cash

$ 5.203.559 9 4.470.210 Letters of eiedit (Note 5) 6.116.993 6.272,675 Dividend receivable from subsidiary 348.93s Other 29.926 29.s93 Totals 9 11.639.446 s 10.772.77s DEFERRED DEBITS:

Capital stock expense 9 2.410.41i 4 2.405.365 Other 315.991 320.234 Tctals 9 2.726.409 5 2.725.602 Total Assets 9500.976.149 v 472.037.309 LIABILITIES AND CAPITAL:

LONG TERM DEBT, CAPITAL STOCK AND SURPLUS er.al bank loans tNote 5) s 16.666.667 3 22.222.222 Notes payable to banks due within one year to be retinanced v 20.000.000 Common stock (Nute 3) s 62.125,795 s 62.129.7J5 Capital surplus 225.655.0B 225.654.uSJ L*nappropriated earned surp!a3 (see statement on page 13) 1,'0.110.111 155.450.271 Totals 3457.506.965 9443.267.125 Less. Reacquired common stock (Note 3) 116.055 116.055 Totals 9457.750.910 9143.151.070 Totals v 491.447.577 4465.370.292 CURRENT LIABILITIES:

Grial bank loans i Lte 51 9 5.555.555 9

5.5'5.556 Ta:<-s ae'f rue i 414.730 527.291 Other 55s.2s?

'il.2r0 Totals 9 6.525.572 9

n. M4.017 Total Liabilitie< anil Capital v500.976.149 v472.037.X" The ae amp iny:ug notes are an :ategral rar* of a nanc:ai s:a:ementi.

00

~

a CONSOLIDATED BALANCE SHEETS December 31,1067 and 1966 ASSETS:

1967 1966 PROPERTY, PLANT AND EQUIPMENT:

Utility plant in service and under construction (Mote 1)

S1,658,401,011 51,507.752,440 Less, Reserve for depreciation (Note 2) 259,456.950 265,504,522 Net property, plant and equipment 91.365.944.361 S1,211,947,915 INVESTMENT IN NUCLEAR FUEL 5.953.209 s

128,973 EXCESS of investments in sub3idiarits over related net assets

$ 30,639,159 5 30.635,159 INVESTMENTS:

Letters of credit (Note 5)

S 16,143.440

$ 21.912.075 Ot-. physical property, less reserve 1,065,752 1.125.335 Other 2.141 089 1.266.565 Totals 19.630.251

+ 24.304.275 CURRENT ASSETS:

Cash 5

19.315.066 8

14.965,03S Letters of credit (Note 5) 6,116.993 6.272.673 Temporary cash investment.

750.000

.ieeo'ints receivable, less reserve.

27,083,797 2:3.1 :.256 3Iaterials and supplies t including const ruction materials), at average cost or less.

20.605.721 16.317.16:

Other 1,505,50s 1,647.331 Totals

• 75.377.405 62.393.4c3 DEFERRE

')EBITS :

Capital stock experase of the Corporation 5

2.410,415 3

2.405.36:

Other 3.620.357 3.121.616 Totals S

6.030.775 S

5.509.954 Total.is ets

$ 1,509.594.159 91.364.942.777 T1.e accompany:ng notes are an integral part of the :inancia! sta:tmeats, 20 b5 N1

1 CONSOLIDATED BALANCE SHEETS December 31.1967 and 1966 LIABILITIES AND CAPITAL:

1967 1966 LONG.TER3I DEBT, CAPITAL STOCK AND SURPLUS:

Subsidiary companies:

First morteage bonda and debentures 3 759.329.000 9 650.509.000 Notes payable to banks due within one year tc be re:inanced 37.000.000 29.250.000 Toials S 525.329.000 S 710.059.000 Cumulative preferred stock S

76.s91.200 9 76.s91.000 Premium on cumulative preferred stocic.

654.596 o.34.596 Totals S

77.545.796 S 77.545.796 General Public Utilities Corporation:

Serial bank loans < Note 5) 5 16.666.667 4

22.222.222 Notes payable to banks due within one.

year to ba rednanced 9

20.000.000 Capital stock and consolidated surplus:

Common stocic (Note 3)

S 62.125.795 9

62.129.795 Consolidated capital surplus 226.193.420 226.193.420 Consolidated unappropriatad earned wplus (see statement on paga 23) 203.275.721 154.979.747 Totals

$ 491.597.936 S 477.302.002 Less. Reacquired common stocic (Norr 31 116.0.15 116.055

'"'o t als 9 491.441.1 9 177.1-5.947 Totals 31.431.023.344 91.2s7.012.965 CURRENT LIABILITIES:

First mortgage bonds and debentures eine within one year (sinking fund requirements)

S 1.475.000 3

2.263f00 Serial bank loans (Note 5) 5.555.555 5.555.556 Accounts payable 17.104.296 15.451.097 Customer deposits 2.014.335 1.920.213 Taxes accrued 9.095.962 13.763.79-Interest accrued,

9.041.s14 7.255.65s Other 6.342.179 4.946.093 Totals s

50.629.141 9 54.1s5.443 DEFERRED CREDITS:

Unamortized premium on debt.

S 3.462.942 2.s21.004 Other s50.475 564.099 Totals 9

4.313.320 J.3 ' '. 402 s

RESERVES:

Future income taxes ' Note 41 5

6.623.930 9

7.079.500 Unamortized investment eredit ' Note 4, 12.ls'.200 s.736.s00 Other 100.675 31.771 Totals S

15.912.505 s

15.909.2n3 CONTRIBUTIONS IN AID OF CONSTRUCTION 9

4.715.579 4

4.447.756 Total Liabilities and Capital 91.509.5?4.13 91.364.942.M i The sceompanying notes are an integral part M the f.nace:21 staaments.

21 SS 202

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'_17 ' :_.3 C E T ? C O.

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~~

ANO SU20'CI A R Y O C. :.:. A ! ! ! I S STATEMENTS OF CONSOLIDATED INCOME For the Years Ended December 31,1967 and 1966 1967 1966 OPERATING REVENUES:

Electric (Note 6)

S309.911.256 SOSS,311.996 Steam heating and water.

1.073.794 1.04s.234 Totals

$310.955.040

$259.360.200 OPERATING EX?ENSES of Subsidiaries:

Operstion S101.573.590 S 99,S50,557 Peter purchased and interchanged 23,124.642 13.047.332 31aintenance 24.109.304 25.057.357 Depreciation of utility plant (Note 2) 37.519.963 34.057.451 Federal income tax (Note 4) 14.094.716 15.770.010 Deferred income taxes (Note 4)

(435.600)

(435,600)

Amount equivalent to current investment credit (Note 4) 3.536,900 2,140,000 Amortization of accumulated investment credit (Note 4)

(3$5.500)

(265.200)

Other taxes 23.274.C3 20.574.2S0 Totals s227.292.658

$211.507.647 OPERATING INCOME

$ 33.692.392 S 77.552.553 OTHER INCOME of Subsidiaries 176.057 101.383 GROSS INCOME 3 i3.568.449 3 77.653.066 INCOME DEDUCTIONS of Subsidiaries:

Interest on first mortgage bonda and debentures s 31.325.401 S 25.319.749 Other interast.

2.431.202 2.251.661 Interest char 2ed to construction (7,545.643)

(5.776.166)

Dividends on cumulative preferred s*ock 3.163.299 3.190.162 Other 93.935 120.534 Totals S 29.373.194 S 25.6" 1240 BALANCE S 54,495.255 5 32.017.726 EXPENSES, TAXES AND INTEREST of the Corporation (see statement on page IS):

General expen%

S 1,676.148 3 1.393,555 Taxes (Note 4)

(44.525) 75.733 Interest on serial bank loans, net (Note 3) 565.659 677.514 Other interect, net 421.599 625.009 Totals S 2.619.151 9 3.272.144 NET INCOME S 51.576.074 94i345.56 EARNINGS PER SHARE:

Average number of shares outstanding during year 21.505.096 23.929.009 Earnings per share 82.09 82.04

( ) Indicates red :!gure The 2ccompanying notes are an integral part of the inancial statements.

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- 2 STATEMENTS OF CONSOLIDATED UNAPPROPRIATED EARNED SURPLUS For the Years Ended December 31.1967 and 1966 19_67 1966 BALANCE Beginning of year

$153.979,757

$174.200.612 ADD, Net income (3ee statement on page 22) 51.576.074 45,745.562 Totals

$210.555.561

$222.946.194 DEDUCT, D? idends on common stock 37.550.140 30.966 407 BALANCE, End of year 9003.275.721 915s.971757

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p accouns zroups w hic h, om an a g:re ga re compoite basis. resulted in approximate an 'ul rates of 2.33"c Utiity plant is stated at origmal cost. In prior and 2.76"o far the years D67 and U6o These years the Co rporation's subsidiar:es fallowed the aggregn rates redect the fae' : hat, eNive as of policy of capitalizing (by charges to ut:hty piact)

January 1.

19';7 e New Jersey s ubwlia ries -

the direct payroll costs and certain aasoc:sted costs reased' their leprecut:on rntes wita he approval of of company personcel engaged in the construction >f Se New Jervy Doard it the PurMic L't;1ity Cummii-such piant, but did not so capitalize the cost of atoners resuit:ng in an :ncrease :n 1967 of apprni-certain emp?oyee benedts,such as pensions. ' :2 ma te!v 31.b 0. W :n the pronsion *nr depree:cmu insurance and hospitalization n The subsidiar:es and a' corresoon ling leerea se m net income.

ehanged this policy efect:ve as of January 1.1967 so ' hat the cost of such bene #.ts applicabie to such personnel is being capitalized 'or all per.ods suba Of N 3M'm.M) authorize l gares of :2.*0 par went to 196n As a restut of this change consolidated y g, cg n,g.;;p,gg gyg w e 7,.

333y g net income for the year 196. was increased by approximately :2.100.000.

and outstanding at De-em be r 11. 1967 ani b66, m.; 33 ; v, of 4,,,4;;.aaevired sn 2 res m or%1 as On January 20,19% the Feder:.. Power Commis.

reanuired emmon stod n :22 per sam, sion issued a Notice of Proposed Rulemainng re!at;ng to the determutatian of the " net in ve st:nen t " of hydr' electric projects licenseu by the Federal Power The Carporation ard its nbwiia ries 5:e consoli-Commission. and a hearmg thereon was held an datel Federal meome tax returns. T% returns thr ugh December 13, 1967 The Corporation's su t sidia ries D:3 have been audited and all di meies h: ave been Lave ;oined 40 other companies in submitt:ng com.

paid. The completion af *he tud::s far Dv0 through ments on this proposed rule urg:ng that it not Le 1962 is ant:c: pated short!y, and :t :s the opinion if tat adopted. The extent to which any such rule as may counsei *o the Curpornt:en ' hat t he dispmttrn e,uch he adapted vou:d afect the subs 11iaries' investment in audits far tha~ year s adt ut r mult.n iny nute:al their ^1eensed projects :3 not presently ascertain 2Lle.

le rim e ncies The < onsmtdated F deral incorn e tax liabdity is 2Mccate.1 amon.t 'ha par':cipants in 'he consoiiuated returns pursuant to agroment s gann z or rate-making and dnancial account:ng purposes

-..nt'&d

'o 7'or:ite suc h

..M.t v :n procortwn 1My the Ccrpcratict's sul sediar:es provile f ar depraciathn the [ art:cipanti resrective contriouuom to such 3

.ggi y, at annual rates determinel and rev

sed periodica!!y on the b.tsts of studies by independent en.tinears to As p u blic i

;ine, the rewnaes of the Carpora be suficient ta amortize the or:ginal cost if lepre-

on's sul mi. artes ;n any p ">d are le en<ient to i ciab:e property on a systematic Las:s over ast; mated w.idcant ecent upon 'he costs xhich are remen:ze i service lives, which lives are generally longer San and allood :n that per:o i f ar rate.mnmg purposes.

those employed for tax purposes. The subsidiary It is the policy of the Corporation ind its s u r,.

companies use depree:2 tion rat,s based on funct:cna' siliar:es in eunneet:cn w:th re dnane:al stattments f0 g, Q-o 23

.a u a-r.,a, v, ;m.... e t6.n-m.------

L :..

~.c---

contained in registration sta tements pursuant to I

which securities are ofered and in reports of dnancial coldition and of the, results of operations to the It is the general policy of the subs. diaries of the holders of such securita, to follow the basic account.

Corporat:on to include in o peratin g reveaues only ing principle of matching costs and revenues, taking m se ds recorded by mete r-read during that into consideration this aspec t of the rate making pertoA Meten are read and sales are billed generaHy process. In recen t years, the application of this on a e@ basis principle has had partir-lar signidcance in connection with certain reductions in income tues. As set forth below, the rate making treatment accorded to these items has difered and consequently the enanmer in The subsidiaries expect to make expenditures of which these items have been redected in such dnancial appronmately WM,009,W9 for p; ant additions during statements has also difered.

198 and in that connection had incurred substantial commitments at December 31, 1967 The subodiaries Jiberalized Depreciation and Guidelines oad Rules.

plan to, issue sec urtt:es to pa rtially daauce such The regulatory agencies having jurisdiction over construction.

the subsidiaries' rates follow the policy of allowing In order to obtain the only the estimated ta.xes actually payable for necessary consent of th; the period af ter giving efect to the reduction in Export Import Bank of Washington to the sale by the Corporation of its investment in Mant!t E'ectrie income taxes attributabie to the employment of Company, referred to un Note 5, the Corporation was liberalized depreciation and the, "Gu:delines and Ru:es", and, therefore, the prortsions for income required to guaraatee the p-

'nt of the installments taxes in the accompanying income statements were of principal and :nter:st aans (payable through directly reduced by amounts equal to the redu*

1970) made by that bani.o Manila E:ectrie Com-At December 31, l' 67, the outstanding balance tions in income taxes attr2butable to these items

• pany.

J of such loans was approximately $5,400,009.

latest men t Tax Credit and Jecelerated Jmorts.

sation. The State regulatory commissious have A subsidiary of the Corporation is part.cipatuig it.

determined that, for rate-makin g purposes, they the guarantees of terta:n Indebtedness beuig incurred wt41 permit charges to income in an amount equal by a non adliate in connection with the deveiopment to the 3 e investment credit arising during the of mines for coal to supply the Keystone mine-period web concurrent credits :n that amount to a mouth generating station in which such subudiary reserve and the amortization of that reserve over is a co-owuer. It :s intlapated that the total amount the estunated service lives of the related facilities guaranteed by the sutsid22rv may ultimately be with the unamortized balance being applied as a acc at $1,000,600. Ia additio'n, another subsidia ry reduct:en af rate base. The Revenue Act of 1964 together with a nonur!iliated co-owner of the llomer City generatin g stativu, which is under construe-prohibits Federal rate regula tory agencies from requiring recognition of the credit for rate-making tioit, have agreed with non-attillated mining compan es purposes more rapidly than over the estimated to assist them with the rina.ncing required for the service lives of the related facilities. Under these deve!opment and wupmeut of the mules whah are circumstances, the subsidiaries are classifying such to supply coal for that station. Pursuan t thereto, concurrent credits as a reserve. IIowever, in accord-the subsidiary and such other non at!iliated co-owner ance with the L uiform Systems of Accounts of the have entered into :,greements with the minmg cem-S tate regulatory commissions and the Federal panies which provide for interim loans bv the sta-Power Cornmisshon, the accumulated unamortizeri tion owners, from time to time through nim, to the investment credit has been classitie1 as a deferred mining companies. Such Interim loans are ta mature in credit in reports to those Commissions.

1972 and the marunum amount of such interim loans Essentially the same treatment has been accorded which may be made by the subst liary is il3.UW.WO.

Such '.oans are to hhar an interest rare which :s to the reductions in income tax attributable to itM above the prime rate for comrnercial borrowing accelerated amortization (which ended in 1%3) and to the remaining balance of credits resultins and are to be prepayable by the mining comp inies at any time without premium. No arrangements have therefrom.

yet been made for the permanent inancing of theso mines.

The Letters of Credit %ggregating $2',0W,433 at

~

2 December 31, 1967 represent the balance of the 434.419,000 of proceads (in the fortn of Letters of The Corporation and each of its subsidiar:es have Credit) from the sale by the Corporation of its established pension plans for their employees and investment in.Janila Electric Company in January' have made provision to fund the cost of all such 1962. ihe Letters of Credit, issued by a syndicate plans. In accordance with the recommendations of of 16 Philippine banks, and contirmed by a syndicate independent actua rial consuitan ts, erfet tive a of of ten L

8., banks, prov:de that payment of this January 1,1967 the Corporation and :ta subudiarin balanae, plus :nterest at 33 per annum, shall be modi $ed the actaartal assumptions rela ting n the made in f 3ur approximately equal annual instal!ments plans to give reewation to increased :ongevity.ind through 1971.

n.>

n has N N fMs tM m nitiate the amortization of untentized appreciatwn The ser:21 bauk loans outstanding at December 31 of securities hell in the pension funds. As a resuit, 1967 aggregat;ng 122.222.222 rep resent the balance of borrowings from a group of C. S. bauks in 1962 the annual cost of the plans was reduced by vprnxi-under an agreement whereby such borrowings mature mately H00.000 and net uteome in reasei by approu.

mately +200.000. The past <ervwe osts of 'he plani serially in Dur annual installments throagh 1971 and are fully funded. The annual current sarrice casts for are secured by draf ts drawrt under the Letters of Credit, in an aggregate amount substantiauy equiva-the year 1967 and the contributions by the Corpora-tion and sobsidiaries for such 1967 costs ' vere M,@0 lent to the borromngs, and $4,500,U00, respectively.

24 F5 %

GENERAL PUELiC UTILIT:E3 CORPCRATICN AND SUBSIDIARY ELECTRIC POWER COMPANIES Succlement ic 1967 Annual Recor:

CONTENTS 26-29 Consolidating Balance Sheet 30-31 ! Consolidatine Income Statement 32 Long-Term Debt 33 Preferred Stock and Capital of the System 34 Earninas and Diviciends 35 System Capital Requirements anii Common Shareholders 36 Industrial Revenues i

I f

I Bli~2CG

.i

.E.

_T 0 c3 U a 31 C :.

CONSOLIDATINC Decembe ASSETS:

The Corporation Eliminations and Subsidiaries and Consolidated Adjustments PROPERTY, PLANT AND EQUIPMENT:

Utility plant in service and under construction (Note 1) 31,653,401.311 Less, Reserves for depreciation (Note 2) 2s9,456,950 Net property, plant and equipment S1,363.944.361 INVESTMENT IN NUCLEAR FUEL S

S,953.20s EXCESS of investments in subsidiaries over related net assets S 30,005,159

$ ("A.636.159 )

LNVESTMENTS:

Common stocks of subsidiaries.

S470.106,354 Letters of credit (Note 5)

S 16,443.440 Other physical property, less reserves 1,065.752 Other 2,141,099 Totals S 19,650,251 9470,106.s54 CURRENT ASSETS:

Cash S 19.315,066 Letters of credit (Note 5) 6,116.993 Temporary cash investment.

750.000 Accounts receivable, less reserves.

27,053,797 S 2,076,666 Materials and supplies (including construction materials), at average cost or less.

20,605,721 Other 1.505.523 Totals S 75,377,105 3 2,076.666 DEFERRED DEBITS:

Capital stock expense of the Corporation.

9 2.110,41S Other

..620.357 Totals 5

6.930.775 Total Assets.

51.509.594.139

? +41.545.# 1

( ) Imilcates red dgure Note references.tre to N 26 85 207

IALANCE SHEET 11, 1967 Pennsylvania Jersey Central Metropolitan New Jersey Electric The Power & Light Edison Power & Light Company and Corporation Company Company Company Subsidiaries

$459.717,195 5096.341.161 S127.212.256 i645.100.664 51.074.300 93.651.612 22.416.645 122.014.300 S435 G 42.595 S302,659.549

$104.795.640 9502.516.274 S 5.953.20S S470.106.554 10.443.440 S

255.927 S

15.567 S

395.095 S

396.160 146.263 551.509 4.004 1.439.013 54s d.550.294 S

402.190 5

570.376 9

399.102 3 1.535.173 S 5.203.559 3 3.132.750 3 1.912.s20 3

550,042 s 4.155.565 6.116.993 750.000 361.607 0,126.117 6.611.535 3.062.464 9.69.740 6.707.550 5.714.524 2.195.492 5.955.125 17.257 434.334 472.400 165.950 415. 37 S 11.699.446 S 19.400,751 S 14.711.299 3 6.606.975 3 25.035.367 9 2.410.419 315.991 5 1.211 509 9

455.532 3

129352 9 1.4s6.373 9

'!26.409 S 1.211.509 9

455.932 S

120.052 9

1. 4 96.J 7]

95AUT6.149 3464.610.596

+315.457.056 9111.922.072 6351.17J.J - 7 al 5tatements. pages 03 and 24.

27

$) '9C c..

O O2.NEP AL PUSLIC

's

,DIO SUSSlu!,

CONSOLIDATING Decembe:

LIABILITIES AND CAPITAL:

The Corpor.. ion Eliminations and Subsidi ries and Consolidated Adjustments LONG. TERM DEBT, CAPITAL STOCK AND SURPLUS:

Subsidiary companies (see pages 32 and 33):

First mortgage bonds and detentures S 759,329,000 Notes payable to banks due within one year to be rednanced 37.000.000 Cumulative preferred stock 76,591.200 Preraium on cumulative preferred stock.

654.596 Common stock

$275,195,020 General Public Utilities Corporation:

Serial bank loans (Note 5) 16,666.667 Notes payable to banks due within one year to be.dnanced 20,000,000 Capital 4tock and consolidated surplus:

Common stock (Note 3) 62.123.795 Consolidated capital surplus 226,193.420 150,739,735 Consolidated unappropriated earned surplus (see statement on pages 30 and 31) 203.275.721 13.494.905 S1.131,139,339 S439,422.66 Totals Less. Reacquired common stock (Note 3) 116.055 Totals s1.431.023.344 9439.422.660 CURRENT LIABILITIES:

First mortgage bonds and debentures due within one year (sinkin:r fund requirements) 5 1.475.000 Serial bank loans (Note 5) 5.555.555 Accounts payable 17.104,296 S 2.076.666 Customer deposits 2,014.335 Taxes accrued 9,095.962 Interest accrued.

9.041.S14 Other 6.342.179 Totals s 50.629.141 s 2.076.666 DEFERRED CREDITS:

Unamortized premium on debt.

S 3.462,S42 Other 550.47S S

46.035 Totals s

4.313.320 s

46.035 RESERVES:

Future income taxes (Note 4)

S 6.623.030 Cnamortized investment credit (Note 4) 12.155.200 Other 100.675 Totals s

15.912.:05 CONTRIBUTIONS IN AID OF CONSTRUCTION S

4.715.579 Total Liabtiities and Capital S1.509.594.1r9 5441.545.361 Note references are to N j

23

%. _.?C3

O

',w:

- m - - i" Lea.=y a.;

- F. e 4

p~m, !..,.., n,, _ o-u

ALANCE SHEET 1,1967 Pennsylvania Jersey Central Metropolitan New Jersey Electric The Power & Light Edison Power & Light Company and Corporation Company Company Company Subsidiaries S250.025,000

$165,790,000 S 59,920,000 S303,594.000 19.400.000 6.000,000 3.700.000 7,000.000 12.500.000 23,391.200 4,500.000 30.500.000 148,750 206.200 22.150 277.157 69,757,700 66,273,400 33,025,000 105,511.920 5 16,666,667 20.000,000 62.12S,795 225.653,059 50,359,323 23,323,611 959,067 46.673.095 170.110.111 5.797.142 13.727.596 3.525.123 20,600.654 J4.563,632 5447,047,915

$301,712.016 ii105. 51,670 5521.356.526 116.055 S494.447.577

$447.047.915 S301.712.016

$105.5 51.670 5521.356.526 S

100.000 S

520.000 S

120.000 S

735.000

$ 5.555,555 22,605 6.325.475 6.227.159 2.101.541 4.504.152 1.167.696 254.994 341.210 250.405 414.730 1,135,405 2.244.155 605,670 4.695.972 449.576 3.579.573 1.416.259 602.175 2.994.226 56.106 2.114.702 1.115.945 540.527 2.154.599 S 6.525.572 3 14.422.556 s 11.775.572 S 4.611.153 S 15.364.i34 S 1.469.572 S

171.160 3

151.426 3 1,670.334 517.933 207.046 63.165 105.369 S 1.957.505 S

375.296 S

214.591 S 1.775.753 S 6.623.930 9 4.059.700

$ 2.551.900

$ 1.026.500 4.519.500 100.675 3 4.059.700 9 2.652.575 S

1.U26. -00 S 11.143.730

$ 1.002.610 S 1.905.637 s

157.s55 9 1.529.424 5500.976.149 9462.610.c sd 931s.457.056 S111.922.072 5551.173.3s!

.al Statements, pages 23 ud 24.

29 85 210

~I ' I 3 ;:2 A L T '.. Z'3

.A : i ;,3.. C J. v.

CONSOLIDATING STA UNAPPROPRIATI For the Year En The Corporation Eliminations and Subsidiaries and Consolidated Adjustments OPERATING REVENUES:

Electrie (Note 6)

$309.911.256 S 655,390 Steam heating and water 1.073.794 Totals 3310.9s5.050 S 655.390 OPERATING EXI-ENSEE of Subsidiaries:

Operation

$101,S73.590

$ 655.390 Pwer purchased and interchanged 23.124.642 Maintenance 24,109,304 Depreciation of utility plant (Note 2) 37,S19,963 Federalincome tax (Note 4) 14.GJ4.716 Deferred income taxes (Note 4)

(455,600)

Amount equivalent to current investment credit (Note 4) 3,536.900 Amortization of accumulated investuent credit (Note 4)

(385.500)

Other taxes 23.274.673 Totals

$227.292.66S S 655.390 OPERATING INCOME,

$ 83,692.392 OTHER INCOME of Subsidiaries 176.057 GROSS INCOME S S3.S68.449 INCOME DEDUCTIONS of Subsidiaries:

Interest on rirst mortgage bonds and debentures S 31.525.401 Other interest.

2,431.202 interest charged to construction (7,S45.643)

Dividends on cumulative preferred stock.

3.163.299

$(3.163.299)

Other 93.935 Totals 6 29.373.194 S(3.165.209)

BALANC'J S 54.495,255 3 3,168.299 DIVIDENDS frorn subsidiaries 34.529.161 BALANCE S 54.495.255 557.997.460 EXPENSES, TAXES AND INTEREST of the Cor.

poration (see statement on page 15) :

General expenses S 1,676,148 Taxes (Note 4)

(44.525)

Interest on serial bank loans, net (Note 5) 565,659 421.599 Other interest, net Totals S 2.619.181 NET INCOME S 51.S76,074 557.997.460 UNAPPROPRIATED EARNED SURPLUS:

Balance, beginning of year 138.979.757 13.164.905 Totals 5240.s55.561 571.432.365 Deduct :

Dividends on preferred stock 3 3.165.299 Dividends on common stock 5 37.550.140

.54.s29.161 Totals S 37.550.140 557.997.460 Balance, end of year S203.275.721 513.4s4.90

( ) Indicates re 1 :'gure ot~

o*4 C's.)

.'s i. X, Note references are to N6tes to 30

MENT OF INCOME AND EARNED SURPLUS December 31, 1967 Pennsylvania Jersey Central Metropolitan New Jersey Electric The Power & Light Edison

. Power & Light Company and Corporation Company Company Company Subsidiaries S01,513,765

$76,083.291

$33.915.537 S109.050,753 421.252 652.542 S91.513.765 S76.504.543 933.915.537 9109.703.325

$25.041,165

$31.103,442 S 9.026.421 S 37.357.952 12.354.176 3,338,771 S,474.650 (1,042.955'i 5.363.959 6.334.08.

1.967.255 10,443.945 9.762,900 9.251,000 3.100.600 15.615.463 2.456,561 3.333.500 1.026,39,

,,277,635 (455,600) 1.306,000 554,100 232,100 1,444.400 (122,500i

(. 9,700)

(32.300)

(150.700) 11.234.077 3.224.700 3.506.2_3_5 5.009.641 S67.396.36S 557.360.235 S27.691.691 9 75.499.754

$24,117.397 S19.144.305 S 6.227,146 5 34.203.541 13.515 61.S12 26.520 74.210 924.130.912 S19.206.120

$ 6.253.666 9 34.277.751 S10,757.559 S 6.311,797 5 2 253.490 S 12.140.255 700.074 638.201 146.002 536,925 (5.073,373)

(91S.250)

(50.951)

(1,76S.069; (41.164) 69.250 7.943 57.576 S 6.455.396 S 6.121.02S S 2.356.434 S 11.2653 57

$17,672.516

$13,055.092 S 3.597.152 S 23.005.764 S 54.529.161 S 54.529.161 S17.672.516 S13.055.092 S 3.597.152 S 23.005.764 S 1,676,14S (44.525) 565.659 421.599 3 0.619.151 S 52.209,950 S17.672.516 S13.U55.092 S 3.597.152 S 23.005,764 155.450.271 9.553.037 14.156.052 3.379.605 29.535.724 9207& O.251 S26.255.553 527.271.144 S 7.276.700

$ 43.:44.455 S 500.000 S 943.545 9 150.917 s 1.543.934 9 37.550.140 16.955.411 12.600.000 3.570.750 21.700.000 9 37..%0.140 917.455.411 S13.543 545 S 3.751.667 9 23.243.534 4170.110.111 9 5.797.142 S13.727.596 S 3.525.123 9 20.600.654 r.eial St.ner.en:s, pages 23 u.d 21.

31 b3 9 '.?,

LONG-T22LI DEET OF SU3SIDIAPJI COMPANICS OUTSTANDING IN HANDS OF ?UELIC (enluding sinking fund requirements due within one year)

At December 31, 1067 Jersey Central Power & Light Company:

First Mortgsgo Bonds-Senes a noted:

0%", due 1976 434,500,000 4%% due 1936,

410,000,000 4 %", due 1993

$19,525,000 3%% due 1973 3,500,000 5

"o due 1997 15,000,000 4%% due 1994,

13,000,000 3%% due 1984.

6,000,000 5%fo due 1939 5,770,000

.T47, due 1995.

20,000,000 3%% due 1935.

00,000,000 4%% due 1990 11,000,000 6% 7, due 1996,

29,010,000 Debentures:

4%% Series due 1953.

9,100,000 4%% Series due 1959 4,600,000 5%% Series due 1990 3,460,000 6 % Series due 1992 14,700,000 Metropolitan Edison Company:

First Mortgage Bonds-Series as noted:

0%% due 1974.

104,500,000 3%", due 1932

$ 7,300,0C ~

4%% due 1990.

$15,003,000 3 % due 1977 4,500,000 3%% due 1934,

15,000,000 4%% due 1995.

10 ~.000 J fo due 1973,

3,500,000 4%% due 1937 19,000,000 5%% duc 1996.

15,000,000 143,550,000 2%% due 1950 -

10,250,C00 5 % due 1990,

15,000,000 Debentures:

4%% Series due 1990.

5.649,900 6%% Senes due 1990 19,600,000 New Jersey Power & Light Company:

First Mortgage Bonds-Senes as noted:

3 % due 1974.

8 9,000,000 2%ro ine 1979 9 3,500,000 4%"- due 1993

$ 7,500,000 3 % due 1973 6,000,000 3%fe due 1934 3,700,000 4%% due 1990 5,000,000 6

?, due 1997 10,000,000 49,700,000 4%% Series due 1959 5,500.000 5 % Series due 1990 4,700,000 Pennsylvania Electric Company:

First Mortgage Bonds-Senes as noted:

3% % due 1972

$30,500,000 3%% due 1990.

3 3,500,000 3

"o due 1959

$15,000,000 3%% due 1973 4,000,000 4%", due 1983.

10,500,000 5 ce he 1990 10,00C,000 2 % fo due 1976,

03,500,000 3%% due 1934 10,000,000 4% Fe due 1991 10,000,000 0% Ce due 1979 11,000,000 39% due 1986 12,500,000 4%% due 1994 20,000,000 3%% due 1931 5,000,000 4 % due 1998.

09.000,000 6% co due 1996.

25,000,000 pg 6%fo due 1997 06,000,000 059,500,000 5% To Senes due 1956 10,300,000 5

7, Ser:es due 1990 13,500,000 7 % Series due 1990 9,500,000 Divisional Liens:

Erie County Cectric Company (assumed by the Company, noncallable),6% funding mortgage gold bonds due 1950 74,000 Northern Pennsylvania Power Company (assumed by the Cemps.ny):

0%% d e 1975, :irst mortgage bonds 1,600.000 0%", due 1960, irst mor*gsge bonds 500.000 Total 17 %,309.000 Notes Payable to Banks to be Rednanced:

Jersey Central Pwer & Light Company-5b% 2nd ice, due mthis one year i 19,400,000 New Jersey Power & Light Company-5%% and 6%, due mthis one year 3,700,u00 Pennsylvania Eectric Company-5%ro, due mthin one year 7,000,000 Metropolitan Edison Company-5%% and 6Po, due mtlun one year 6,000.000 Total 9 37,000.000 32 Sb 213

.......... a t.3, a_w,.,.:- c. A,,.s w,,

~:..:.--,..,..

.,,.1 a m :..,.

u.

.i u.. : 2 :

m.

- -.m=m m.-_m.--~

- m -,-

At December 31, 1967 Shares Author.

Out.

Current ired standinz Call Price Par Value Jersey Central Power & Light Company Cumula: ire preferred s:ock, 4", Series 175,000 105,000

$106.~0

$10,000,000 Metropolitan Edison Company:

Camulative preferred stock:

400,000 3 90'*e Series 117,709 105.605 11,7 7 0,3N 4.35 c*o Series 33.049 104.05 3,304,900 3.3 5 c',

Series 29,175 104 00 2.917,000 3.50 0 Series 19,102 104.70 1,310.200 4.4

• c*c Series 35,637 104.05 3,!63,7 C 0 New Jersey Power & Light Company:

Camulativa preferred stock:

63,599 4

c'e Se riu 26.655 105.00 0.665.500 4 J5c'c Series 19.345 103.05 1,334,500 Pennsylvania Electric Compary:

Camu;ata = preferred stock:

435,000

4. '.0 '~c Series B 56,310 109.05

• 691,000 3.7 0 c',

Series C 97,054 10500 9,703.400 4.0 5 c'c Series D 63.696 104.53 6,3C9,600

4. 70 c'c Ser:es E 09,739 105.05 0,973,?00

4. ~,0 <~c Series F 40,969 104.??

4,206,900 4.6 0 '", Series G 75,730 104.05 7.573,000 Total

$ 76,591,000 v.3..n. m $. a.

V.

s -,

m u.m 0,,. :: n,m.% Asi 1.

a

~--

..-__--e.,e,-_..

At December 31, 1967 1966 1965 1964 1963 1962 Amount Amount First Mer*g2.ge Bonds ind De be ntu.res 753.309.000 53.: c',

5 630,509,000 51.i ~,

53. 7 ~,

5:.3%

4 5.f ~c 4 3. 4 ~,

Notes Payable to be Reinanced - 57.000,000 14 3 09,250,000 JJ J

.3 JJ IJ Preferred Stock (in:1= ding 9 te=ium )

77,545,796 il 5 ~ 7,* 4 5,73 6 4J

'd 7.)

la 3.7 Common Stocic 3 62,010,740 3

60,010,740 '

Capital Surpbs-Consolidated 006.193,429 y ;JJ 206.193.400

7 -

.;s..

33.3 39 ]

41-Earned Sa plus-Consoiida:e1 003.07,701,

13 3,9 79,7 a -

Common Stcck and surplus

a l,4 51,; 31 e4 3 3 g,13.5,947 a2

?i n3 4.,-

70tal Capital (1)

.;,414,3 1177, m),,m 31,;g4,7 3 ),7 4 3

.c.

g 1;ec m

("

1) Ex:!udi.s tank : cans af GPU secured by Le:ters 3f Crelit rece: red as 2 result of e.e sale of Manil Zh ric c am;ry in 1960 33 bb

.7..?..

w

u, u....,.m... w, _. v _ -

e nv...,..e.,

-, - - ~ ~ - - -

~.. m -.. - -..... ~

EARNINGS (1)

Quarter Ending 1967 1966 1965 1964 1963 1962 1961 1960 March

$.53

$ J5

$.53

$.49 3.47

$.47 9.33

$.41 June

.50

.51

.49

.46

.42

.40

.37

.36 September

.52

.51

.46

. 4.*

.43

.41

.33

.34 December

.54

.47

.47

.44

.43

.41

.40

.37 Tear

$0.09

$ 2.04

$1.95 31.5 ~

$1.75 31.71 31.53

!1.49 DIVIDENDS Quarter Ending 1967 1966 1965 1964 1963 1962 1961 1960 March 4.37 4.35

$.34 9.30

$.30

$.03 i.03

$.27 June

.33

.35

.34

.30

.30

.29

.03

.07 S4tember

.33

.35

.34

.30

.30

.29

.23

.27 December

.39

.37

.35

.34

.30

.09 2.' 9

.03 Tair

$1.50

$1.40 S1.37 31.30

$1.00

$ 1.15 41.13

$1.09

% EARNINGS PAID OUT(l' Quarter Ending g

1966 1965 1964 1963 1962 1961 1960 Marek 632e 63.6 %

64J%

65.3 %

63.3 "o 5 3.6 "e 73.7 e 63.3 %

e o

June 76.0 68.6 63.4 63.6 7:.1 63.0 75.7 75.2 September 73.1 68.6 73.3 63.6 63.8 70.7 73.7 73.1 December 72.2 73.7 74 2

??J 74.1 70.7 72J 75.7 Tear 72.7 %

63.6 "o 70J%

70J%

63.7 7o 67.3 %

73.3 "o 73.6 %

BOOK VALUE(1)

Q'arter Ending 1967 g

1965 1964 1963 1962 1961 1960 "Isreh

$19.39

$13.43 317.32 317.06

$ 16.73

$16.13 313.59

$13.47 June 19.32 15.60 17.93 17.41 16.56 16.30 13.97 13.57 September 19.66 13.76 19.10 17 55 16.99 16.47 14.11 13.65 December 19.31 19.06 13.00 17.63 17.09 16.56 14.03 13.77 Tear

$19.31

$19.04

$15.00

$17.63

$17.03

$16.56

$14.03

$13.77

% EARNED ON BOOK VALUE(1 & 2)

Quarter Ending 1967 1966 1965 1964 1963 1962 1961 1960 March 12.4 %

l0.7%

l0.6%

12J%

10.2 %

10.0 %

l0.4 %

11.0 %

June 10.2

3.3 20.7 2J

. i.:

. 2.2

)J L p temver

)J l0.)

3.6 123 r ?.2

23

).6 102 December

).6

G.6

).7

22

).2 l0.2

.02

!?

Te1r

).6%

).6 %

13.7 %

<)Jeo

).J%

• 0. "c

).i "c

17 "c (1) Ele:udes for the periods prior to IM2 that Nrtion of the !.04 ralce app;icable to the investment in Manda Eketric Company and earnings app'.ieable therem, such investmer hav:ng been sold in 1962.

(2) Earnings for :welve months ended.

2,..

.. m._..: r 34 Sa "%

o4

.e

..3..

v-~.a.~~.._n,..--c..u.,....~.

.r.~..-w.--.-,.,,,

New Construction New Capital Generation T ansmission Distribution Other Total Raised 1953 S 43.1 S 14.5 9 32.1 33.3 93.0 9 s04 1959 20.0 15.5 32.9 4.5 72.0 31.0 1960 17.3 10.7 37.7 6.0 71.7 41.5 1961 17.6 13.5 39.0 7.7 77.3 12.7 1962 10.1 15.3 40.7 5.1

74..

. a.2 1963 11.3 15.2 43.2 5.6 75 S 15 2 1964 17.3 19.0 45.3 3.7 90.3 47.9 1965 25.9 29.6 49.6 9.9 115.0 70.6 1966*

41.2 53.3 53.1 9.7 162.S 94.9 1967*

64.3 35.2 65.3 5.2 176.5 106.7 Totals

$269.1 5222.8

$446.9 574.7 91.013.5 5579.4 1965 (est.) *

$ 95 0

$ 35.0 s 66.0 35.0 5 207.0 S134.0 1969 (est.)*

109.0 45.0 70.0 12.0 236.0 124.0 1970 (est.)*

121.0 29.0 63.0 11.0 229.0 106.0

• Includes investment m nuclear fael

..,.,....~-..,..):,.,..z, A..,.,

.l x.,,

...r..:. u.

) :. u a.

-c.--

._.--.n-,.~,,..-,mm%.,r..ca.,,,.

Size of Holdings No. of Holders No. of Shares 1 to 20 shares 17.059 22 153.775 1

21 to 60 shares 17,32S 22 67).113 3

61 to 100 shares 11.152 11 949.203 1

101 to 300 shares 23.520 30 4.072.560 16 301 to 1.000 shares 7.469 10 3.650.096 15 1.001 shares and over 1.s53 2

15.270.340 61 Total 75.711 100 21.505.096 1w

,[MM

• M

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-?W "M

. %4 *- '

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e-p ti.

DIVERSIFICATION OF INDUSTRIAL RE'IENUZ3 1967 Industdal Revenues of Subsidiaries Percentage Amount of Total

?rt 3ry metal products.. 54.6% from: Bethlehem Steel Corp. (30213I),

Carpenter Steel Co. (11143I), Baldwin Locomotive Works (100631),

Erie Forge & Steel Co. (7513I), Sylvania Electric Products Corp.

(7073I), National Forge & Steel Co. (55031)

$13.214.201 15.19 Pacer and amed ;:r: ducts.. 60.3% from: Whippany Paper Board Co.

(102631), Kimberly. Clark Corp. (9273I), Riegel Paper Corp. (7943I),

P. H. Glatfelter Co. (6903I), Hammermill Paper Co. (6413I), D. 3I.

Bare Paper Co. (5193I)..

7,626,393 9.7 St:re c ay anc slass prcducts.

. 37.0% from: Hercules Cement Co.

(5553I). Allentown Portland Cement Co. (5733I), Keystone Port-land Cement Co. (4773I). 3Iedusa Portland Cement Co. (4453I),

Bethlehem Steel Corp. (37531), Brockway Glass Co. (3633I) 7.611,450 3.7 Eie:t~:ai ma:rinery.

.31.2"c from: Bell Telephone Laboratories, Inc.

(11063I), Western Electric Co. (6113I) 6,156,434 7.3 On 9:. ctrea! macr.er/.

.33.7"o from: Ingersoll. Rand Co (7903I),

Caterpillar Tractor Co. (4583I), Textile Stachine Works (38931),

Borg-Warner Co. (35031), Birdsboro Corp. (3663Il 6.233,193 7.1 Ceca s and a+ed produ::s.

. 39.0 cc from: Hercules Corp. (5073I),

F3IC Corp. (4443I). Toms River Chemical Corp. (4243II. Warner-Lambert Pharmaceutical Co. ( 2993I), Kawecki Chemical Co. (0973I),

Allied Chemical Corp. (2393I) 5.665.111 6.1 Furicated metai tr:tc:s me:t cr: nance. mxn'nery ana trrn: *n a m :.

Ten

.33.6Fc from : Bethlehem Steel Co. (100531), T*. S. Steel Corp. (5063I), American Can Co. (2313I) 5.337.326 6.1 F::: 3.10 k:ndred ;rcout:5.

.13.S"c from: 3 tars. Inc. (35331), Drew Chenical Co. (23631), Sunshine Biscuits. Inc. (13931) 5.283,494 6.0

' 21 mi :n?.

.44.3"o from : Bethlehem 3Iines Corp. i 9323I), Barnes

& T Acker Coal Co. (44331), Rochester & Pittsburgh Coal Co. ( 30731),

3.793.647 13 L :e in plas:4 :re :::s 2.919.223 3.3

'/. *a y est)::.snment3 2.594.595 J.9 79:

-LI crecucts 2,107.962 2.4 T r.se: *2 ten eca : men:

.43.6"c from : Pennsylvania Railroad Co.

(3763I), Parish Pressed Steel Co. (3033I).

1,764.672 2.0 Pe:teum ana ::al ;rcou::5

.29.2"c from : Quaker State Oil Retining Co. (2793I), Pennzoil Co. (2303I).

1.745.593 2.0

'Srg and quarry:ng Of 3:nWeta!l. m.ner3!s 'ene?! f;F 1.630.s56 1.9 2-eng. ;;;!isn:rg anc 3d e indJ3:r:es.

1.197,406 1.4

%;.arel and lied prc0 acts..

1.137,650 1.3 Pstru?ents. C0:221 gecas. et:.

1.123.304 1.3 L;m:er and e. :: cr::; cts.ece:t f;rrtre) 929,935 1.1 Frt are 3"3 '.xtures S52.564 1.0 J MJ-

. 3.5"c from: Bethlehem 3Iines Corp. (4013I), The

.3 Glidden Co. (1453I).

747,049

.i s.-.d e 0.l r n2: ral ;is ex:r2c*:n Lu feran: ' eat er :::L::s

.l

[

' 22~0 Fi L

7.521.671 9.9

. : T :3 2'

.:::: m es

. -. ane:.5 Total M7.564.7 57 100.0 "

36 o e ej s) e

e 9

m P po wen U COMPANIES J

S a.' " s