Text

Forwards Exhibits JC-600 & JC-601 Filed in Restart Proceeding.Includes LS Reis Testimony & Certain Data Used in Determination of Fair Rate of Return, Prepared by Reis & Chandler,Inc
	ML19338D551
Person / Time
Site:	Crane
Issue date:	09/18/1980
From:	Sweeney L; JERSEY CENTRAL POWER & LIGHT CO.
To:	Vollmer R; Office of Nuclear Reactor Regulation
References
	NUDOCS 8009230434
	Download: ML19338D551 (44)
	v • d • e

{{#Wiki_filter:_ _ _ _ - - _ _ - _ _ _ _ - _ _ _ _ _ _ _ _ _ _ Jersey Central Power & Ught Company h Madison Avenue at Punch Bow! Road Morristown, New Jersey 07960 (201)455-8200 September 18,~1980 ~ Mr. Richard H. Vollmer DLrector, Three Mile Island-2 Support Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission 7920 Norfolk Avenue Bethesda, MD 20014 Re: NRC Ibcket No. 50-289 - TMI-l Restart Proceeding

Dear Mr. Vollmer:

By your letter dated September 21, 1979, to R. C. Arnold, and Mr. J. C. Petersen's data requests sent to C. W. Smyth on November 9,1979, you requested us to keep the NRC informed of significant regulatory developments affecting the GPU companies. Accordingly, the enclosed material (8 copies) has been sent for that purpose. i Enclosed please find a copy for your file of the testimony of Mr. L. S. i Reis in BPU Docket No. 804-285 filed on September 15, 1980. Very truly yours, LNk vtgavu Lawrence E. Sweeney Rate Department rc s Enclosure c: M. Karlowicz (w/ene) l .J. Peterson D. Carroll (w/o ene) L. Gentieu / h O \\ l 8009230$ N Jersey Central Power & Ught Company is a Member of the General Pubic Utihties System

Exhibit JC-600 JERSEY CENTRAL POWER & LIGHT COMPANY DOCKET NO. 804-285 TESTIMJNY OF L. SANFORD REIS Q. Please state your name and' address. A. L. Sanford Reis, 14 Wall Street, Nr. York, New York. Q. What is your present position? A. I am president of Reis & Chandler, Inc., financial analysts, investment advisors and consultants specializing in public utility matters. Q. Please outline your educational background. 7 s A. I am a graduate of Cornell University, Class of 1929, with a B. A. degree. 'I also did graduate work in banking and finance and have donc some teach-ing and lecturing. Q. What is your business experience? A. Upon receiving my degree I was employed by Standard Statistics Company, now Standard & Poor's Corporation, and remained in their employ until 1933. From'1933 to 1937 I was with Chas. D. Barney & Company, now Smith Barney, Harris Upham & Co., Inc., a large investment banking firm, as a securities analyst in the research and the investment counsel depart-ments. To a limited extent I was involved in the underwriting phase of that Company's business. In 1937, Barrett Associates, Inc., emerged from Chas. D. Barney & Company and I remained with Barrett Associates, Inc until 1942. My work during the 1937-42 period consisted principally

y .m .x 6 h -) g 'i if 1-I v q d i of : advising investors of substantial means on investments in public utility and other securities. From 1942 to 1944 I was engaged in war j work. Reis & Chandler, Inc. was formed in 1944 and I have been presi-l l ' dent of the firm since its inception'. .j Q. -What is the business of Reis & Chandler, Inc.? A. Reis & Chandler, Inc., is engaged in security analysis and in rendering financial ~ advice to corporations, to institutional investors and to others principally in matters relating to public utilities in the United States and elsewhere. The firm advises a small, but we believe quite distinguished, group of clients principally in the field of public utility investments. The firm also acts in an advisory capacity to public utility com-panies in'the formulation of financing programs and in other matters affecting financial policy and operations. Among the major utilities which we serve in an advisory capacity, other than through participation in-regulatory matters, are Carolina Power & Light Company, Laclede Gas Company, Northern Illinois Gas Company and Potomac Electric Power Com-pany. Also, the firm assists managements in negotiated and competitive sales of securities. Our activities also include advice concerning corporate reorganizations and mergers. We have acted as advisors to the Regulated Industries Committee of the Securities Industries Association. We have participated in many reorganizations and divestment proceedings -before the Securities and Exchange Commission under the Public Utility Holding Company Act. We also have been engaged in the work of affiliat-ing public utility systems to the end that greater effectiveness in i [%

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3nja u8 - operation andjfinancing'may>be obtained.' .I have participated-in many ~ ,s ..w rate-~ proceedings in many -jurisdictions. + (). YHave you'. testified.before.this' Commission.previously?' ^ $/ Yes,pI have. ~ iQ.: For.what; purpose were you retained by Jersey Central Power &-Light- ~ 1 Company (hereafter; referred to as " Jersey Central" or the " Company")?. " A.' -I was retained to-determine a fair rate of return in this proceeding. [.. Q. What is'.theLextent;of1the study of Jersey Central which you have made -tm prepare for-yourl testimony? ~ A. I'have been generally familiar with the affairs of Jersey Central for- .p. (,/- many years. From time:to time'I have reviewed financial and operating state-ments and! forecast-information 'of the Company and of its parent. The data analyzed include annual' reports to stockholders and to regulatory ~ authorities, annual statistical reports and prospectuses. I consult arom time' to. time with Jersey Central and General Public Utilities Corporation.-(hereafter referred to as "GPU") as to the current finan- ~ Leial status 'of; Jersey-Central and its extremely serious rehabilitation -problem. T J

.Q.: What doiyou mean.by a fairtrate of return?

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! serve;'iEsexihtingiandprospectNe'customersproperly,fissensitivettoL ~. L ~ ^ m l Jthejeconomy"of it's ' service-area and ithe environmental requirements 1of E s q i ithat' area.. One basicirequirement,'if~these standards are to be met, f -. y t . a financially' sound utility,iand-financialLsoundness necessarily. p - is. ~ : requirekproper: pricing'of its= service. ~ Clearly,' Jersey Central is j O F 3 F, .notia; financially-soundLutility at1present. q p 9,3 l Q. ny v

-Is 'the measurement of cost of capital'or determination of a fair rate

,kI 'off rst' urn 'an exact science?- ~ ~ [ f I'. ' A. - cNo.(The'measurementoficost'ofcapital'itselfisnotanexact; science. y p. -4 L k ", < 7Q. "Is ' there any way'in-whichicost' of.. capital or' fair rate of return can ' H e f be specifically calculated =by;some: formula or other mathematical k

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-~ declining: cost: industry)isnolonger.the; case.MMore1recently,;rapiN1y-y.

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. costs and -taxes ;other. than., income taxes have more than. offset! the' T

~ limited lgrowthin;recent{ years. Furthermore?as the conservation ethic 6 thas permeated people'sthabits Jand the cost' of' electric service has - increased,~use per'res'idential. customer has tended to stabilize.or C-2 decline. m N ' In. addition,. environmental considerations usually' require 11arge L ,, s This.is not to '( amountsi of'capitalifor non--revenue-producing plant. - criticize' the'. objective :of improving the snvironment,1but' this costly ~ requirement properly.should~befpaid for by the beneficiaries of the-2 . environmental and aesthetic improvaments, e iFinally,7the extremely llarge investment and related capital c3 - costs fof Tnuclear generation make. recovery of capital. costs a more ~' ~ ~ fesentiabelementinrate. making'thanin~thepast. s s r ~ ?QL .:1-ishow}youian' exhibit. which has ' been marked as Exhibit JC-601 and which ~ 4 7, s 4; f

is ~ entitled Jersey; Central Power-En : Light Company - Certain Data-Used.

a 3 6 s 41n' Determination.of 'a FairiRate iof Return." ' Would you please identify - s mJ f

' ;thisTexhibit?^

~ 3 [3 y a v 'W, nAh. $This exhibiti which consistsJofIan'index and separately numbered-N i 6:.'--^; A M q? l, f., w-t ^ 1 j, g Mg, * ~ s lfM~,,u n., 2;- s: 7' f ~

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d-t gy.f, -f' ~ w., L ~ + Tscheduleshpresents data whichlIfused. in arriving atTay; opinion 1of :the icost;o'f cahital'am, fairL rate of. return for Jersey'C'entral Power.&1

Light Company.

Was jhis exhib'it' prepared Lby yo.u or. under.yourL direct' su. pervision?. iQ. t 'Yes. .:A; 'Q.. [Would;you-please describe'andIcomment on the schedule relating to-capital:otructure?L Page 1 of Schedule'l.shows the capitalization and related capitaliza-E 'AA. I 'm: . tion ratios'of' Jersey Centraliat-the close of each of the years 1970- ^ ~ 1979',.:and at July; 31, 19.80. Jersey Central's capitalization ratios

arh cons' stent Lwith accepted standards. Page 2 of Schedule 1.shows i

E 4 < 0 :. "y" 'similar. data including the large amounts of short term debt. 1Page 1;of Schedule'2' sets 7forth capitalization and related capitalizationL. ratios =of GPU o'n a' consolidated = basis at the end of- ~ each ofLthe years 1970 through-1979, and at July 31, 1980. The GPU l

system's consolidatsd ~ capitalization ratios,.:like those of Jersey

-Central are consistent'with' accepted-standards. Page 2 of-Schedule 2 I. shows:similar data' including the;1arge. amounts of short term debt. 2 o...

.s ePag'e1..of[ Schedule 3_shows-the: capital'structureofthe' electric

,..s I Lutility. industry b'asedlon statistics of Class A'and. Class B privately p ~ p 'own'ed electric utility' companies' collected by the' Federal. Energy Regu-2 -latory Commission and the capital structure of-Jersey Central. : Here

again the capital: structures'are quite consistent and support the con-y-

g clusionsfoncapital[structureratios;previouslyexpressed.. Page,2 of - f jf s 'M i ~, ~, g;; s .y'W 7y; _.- -%. [ .,f g s-7

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~ (Schedule.3 shows:similaridata' including the large amounts of short-term Edebt. 4 ' Q. ..What-capital:' structure'did~you"use;in determining-the cost of capital'- ~ -of Jersey Central?

A.

I used-thelcapital structure at December 31, 1980, as estimated b'y the Company, : indicated on Schedule 14, adjusted to -include $100,000,000 of

' additional Inng-term debt.~ I am atrare that-Jersey Central's earning-power is insufficient to provide. fer - the issuance of $100,000,000 'of long term debt by. December 31, 1980.- I am also aware that the Compa'ny's . program should eaable it'to sell $50,000,000 of mortgage bonds in L1981 and large amcunts of mortgage bonds.in subsequent years. I am ~ -r M- .1_f = also aware that' ahort term debt at the end of 1980 is estimated to amount to between $120,000,000 and $125',000,000. It seems reasonable therefore in' measuring capital to take into-account at least $100,000,000' ~ of additional indebtednass,other than short term, at year end. Q. What is the rating of the Company's mortgage bonds and debentures?

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- A. ,The Company's mortgage bonds are rated "Ba" by Moody's Investers Serv- " ice,.a leading financial' service and bond quality rating agency. The ?Ba" ratings.are the fifth classification. Except for other GPU sub-4 sidiafies,:no other significant electric utility bond is rated this' low. \\ .-Jersey Central's debentures are~ rated "B". .:. Schedule'5-indicates the ratings of all significant electric util- ~ .ityfsecuriAies at June' 15,*1980; a}, 2 4 e } nc [L

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~ _.,n [Qi ' Moulboinoitbr$to1the' cost /of debt capital. and ' explain. Schedules !6 - [ g, s u H and'. 7 ?- iA2 Tiaseitwo.' schedules.' set forth' general.information regarding the leve10 "1 ~ g ~ 9 ~ rand direction of changelin interest; rates'on long term debt! LSchedules 41

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- 6 and. 7; show; the _ course of y'ields 'on outst' adding public utility bond : ~ J [. 61ssue's',Das'! compiled by' Moody's Investors Service. The4 percentage-fig. L ures 'shown in these schedEles represent _. thelaverage yield to. maturity ~ ~ on ten' typical issues Lin each of Moody's four highest quality; rating ~ 1 ategories: computed'from market prices or_ quotations. Schedule:6 shows . r, the annual data over a long period ofL ears,-while Schedule 7 shows y monthly data since January 1969. 3 3'N6 -Q. Please describe _SchAdule 8. ltf A. Schedule'8-shows',.for the period January 1948 to June _1980 a summary by. j r quarters of.the yield at the public' offering price and the cost to-the. } ~ ~ .. issuer.on all new electric and gas utility long term (original maturi-1 ties of fifteen years or more) bond issues sold publicly _and rated."Baa" p /by; Moody's. >As mentioned earlier, the mortgage bonds of the Company are b L . rated;"Ba'.'Lby Moody's but there 'are no comprehensive data for "Ba" I electric :and' gas _ utility bon'ds. } 4 f} (Q. -Please describe. Schedule;9. q ' Schedule:9 indicates, costs of recent debt issues. It is a~ list of all ? --2 A. ~ ~ ht Jsignificant1 electric <and gas utility.long term debt issues rated "Baa" -{ q f hich wereisold publicly ini the period from Aug6st 1,1979 to August.-1, j 0 - ~ N s 5l YQ

y: 1980. ; [Ihbelieve the -informaEion,11n ' the light of explanations of -

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f' .s ~ m. . previous; schedules, ~ is 'self-explanatory.t l Long term' "Baa" electric tutility., bonds have: ranged in cost,between 12.99% and 16.59% this" year. ~ ~ The' most 'recentL"Baa" ~ electric ~ utility. bond 'public l sale.was that of- ~

Portlan'd General-Electric:where the net-cost'to the utility was 14.03%.

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No "Ba"6 electric. utility. bonds'have been sold publicly in recent>

. months and'itLis-doubtful if they could be. If Jersey Central.were' now 'in a -position to?effect' a' private sale of bonds I believe that. the -cost to it would be about 14 1/2%. g. Q. What,' in your opinion, is an appropriate allowance for the cost of long term debt capital to Jersey Central? A. As shown in Schedule.10 the weighted average cost of long term debt at i O. ~ \\--C July-31; 1980 is 8.29%. Jersey Central in August had outstanding. $150,000,000 is $160,000,000 of borrowings under the Revolving Credit Agreement.~.One of Jersey Central's objectives is to replace part of that-RCA debt with long term debt as soon as.possible and I read the NJBPU: Order of May 13,;1980' granting Jersey Central interim relief as sharing that objective. In that light, an appropriate cost for long

term debt should, as -indicated previously, take into account ru) less i

than $100,000,000 of new long term debt. Then a reasonable estimate of I l - embedded cost of.long term debt becomes 8.92% based on a 141/2% cost ~ 'forithe addition'al $100,000,000 debt. .1 I 7

Q.

How have you'comput'ed.the cost of preferred stock capital? t: 5 A. aI1followed the. same. approach as in.my determination of the cost of long 4 ']?~) sterm: debt? capital. j y,1 ^ d .,J 4 ] s

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^ ~ a 4 . ~ 2

. :.. Jg~enerally similar to.'the: pattern'of' bond. yields

=, m ~ r (Q. .;Please' describe; Schedule l13.. ~ '..4o q "^ iA; . Schedule' 13 sumarizes,yfor: the' period January 1962 to June-1980 the: y p 1yieldatfthepublicofferingpriceandIthe~ cost to the issuer.on all' i 5 3 jubliclyl offered preferred' stocks byielectric and' gas utility companies. jl[ w ~ .;f rat'edl"BBB"Lby$ Standard'& Poor's.e The cost of preferred stocks has- [, ./shown'a'significant-increase ~over theiperiod. generally similar to:the 7: 4 w; 4 ' ]' yy 'This year's costs.have been extremelyL sincreaselin the cost of.. debt. -'= r-' ,,j Lhighsin:comparisonit'o historical costs. f n.

w. c;_

ia 4 ~ Qt What'is? thelcosti of preferred stock capital to Jersey Central? 1 e 1 ~ ~ A. As1 shown in Schedule 14. itlis preserstly 9,15% but drops slightly because 1/

of a' sinking; fund retirement. 1.9.14% is a' reasonable cost-figure at 2Decemberf31,'1980.-

..-, e- - +

r w =

g., o' }Q e. fQ. EWould:you please~ comment on the relationship' of the' Company's earnings s f-l tio the amount 'ofiits intere'st and 'interestcand preferred dividend re- '.{ a. <.2. 7.,, qquirements?,- .l.T .-1 ,. - e_ s 4. o ~ ?A.7 _ xTheieredit(standing;of a' public utilityjcompany, and, therefore,'the .qicostjof its l debt / securities (is. tied 1 heavily Lto;the quantiry of protec - M f -3. W 4 f[j t. ' - ... A.... C " tion of ; coverage. for the interestirequirements of Lsuch securitiesL t w ^* ~, k 9; -d s ,y 3 ~ m ^ ^ q j;" c' ~.y t -s ^.,f ,-,i +e e'c,. 1 i g

: - _x

~ W - '~' ? Q: ~; y:g i j n. x e -ex;e g %w ;4 * ;w i On my ~, y 3 ~ - %w.m ,G' - ".,, y;. a-M<AN t: i <_,, ' ' ',...

W - +ffk ',

~~ T a 1 r s-W .1

m..._d-.<Tg, e %> m,w

....--.2 s.y,J e 7 1 's-A

^ ~ ~+ _l, =WQ kyysyf y!W M -j u LT jam , q}_qn - ~ f '>+ 1 q:- _ _,y& g( g p -W - : p qp m-x q-; g-y ;n , q p ~ . > ~a + q; . q, ~b; - ~ a- ~ g ~ y yg n ,y ac pcs - ; . W m' 7 zm ;: ~ av W q pr-s..,. -w, y~' p_;.

my y,
g to 3

- Q/ g j;r ..-c un a ' A p ' M-7W.*J Q' _, 1 m - l g , j ~,_ D '- .1,;,.... [ - hcF,. [. ', M 12 9 : ^ u

i y

q p ~ e. <, ~ d ', ^ i lQ3 g >+ s., p-7' ' USchsdule/15 indicates; the b). clineTin the Rat'iofof Earnings' to Fixedi s P'- ~ ;; ' ' A. s - .v.. . ~,. ~ ~- ". Charges. 1This:ratiotis' calculated before income? taxes. iThisisignifi-: ~ 1 m s k N' ' ;eint 4acib,:whichTwas"2.'90itimescin":1972,? declined t'o'2.19' times:in , ~ ~ N . -m 31979,ffurther decliSedits l'.61Itimeciinltheltwelve msnthsf ended July 31,. o 4 4 4. Y p 1980.andtis estimated' to decl'ine to;1.53' times for/the year-1980.. It-y "?i musti;in':due course,(be improved' materially? Nnder the'indenturectest,. 1 4 P - the coverage:at;the end of:1980 is. estimated to'be 1.78 times', ~ 'Similarly, the: coverage of fixed. charges and-preferred dividends r i 'earnedTaf ter income ' taxes, which was 2~ 05 times in 1972, declined to y 1.53; times iri_1979, further declined to 1.30 times in the twelve months .:l

- - ende'dzJuly 3_

31,.1980_ and!is estimated to decline to 1.19 times for the

year 1980.-

1 t , ^ l LSchedule 16lshows coverage. ratios for. Jersey Central compared with-.the data lfor the electric atility'iEdustry;as.a whole. These-8 Lc

'95' coverage ratios _ incitidc ' times interest charges earned.before = income l taxes v,

s an,d' times: interest. charges and. preferred dividends' earned after income m x p. taxes.- .m Q. Are(these coverages.. adequate? ~ ~ n ! Indenture, coverage in my opinion must be built up to more than. JA. ^ No. s . n-a l2.5Jtimes. ~ [y (, (Q.l

Ddes-Jersey l Centra 1(liave'long. term dinancing' capability?

ex c 1 .m p g TA;s

Jersey Central 118 not presently lable:to'is' sue long term. debt'or preferred

+ i,sto$kland[aikSyElement[inthis.proceedingislthenecessity_for'J_ersey J 1 q s, + y _^ ~ - 9 Centra kto; develop.;adequats coverage with. reasonable' promptness'. It' ~ 7 ~;3.: z

s x,u ^

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k 3

t .l ~ W ? 'f ...n_y 1 = -:- 13 ' ' 1 e. ay [~~ gx, R

t 2

i a v sy x z ~- f .e e,. ,] ~ e- ' clearly [isimpossible;to:a'ccomplishthiswithout1 realization,as;quicklyj ] r _,,, i, .. ~.,. ~ l l n

as :feasiblekof sufficient earning power.to-meet not on y contractua i.

a a Crequirements; but fan' adequatejlevel of coverage. In the; twelve monthso q

i ended ' July : 31, L 1980.l fixed: bharge: coverage (not per indenture) f was.1.61-

.I 3;.. m. u timesfand[ fixed cha'rge arid preferredf coverage-was ;1.30Lt'imes. The Com- - ~ z .. s,- c...m pany.'smort. gage..bondsareratedj"Ba"lbyMSody's.. No; mortgage bonds.of T g 1. % i. F any sizeable ~ electric-utility (other GPU ' subsidiaries excepted) are d s 5 q g rated this low and$1 tis! questionable if bonds rated "Ba'.' can be so.1d = 1 .t Z d

publicly. ' A private placement, if sufficient _ earnings are developed, 1

L 3 would undoubtedly carry an; extremely'high' cost under present conditions. l A t The only(Irnown' cure at present is' t'o build up the coverage ~ through rate Q a A w

relief.

et j L

Mortga;>e bonds ' rated."Baa": (not. "Ba") by Moody's were costing in o

1 c .earlyIA'ugus}t19_80approximately14%; I.1 ^ 'Although recently granted rate rrelief will favorably affect cover-ci ~

age _in - the ifuture,nsufficient coverage, based 'on Company forecasts, will

~

l result"only:from 'dditional revenues.' Based on the present level of-j a

.q revenues?long term debt-or. preferred-stock-financing cannot reasonably ay d l be undertaken sin' 1981._or 'inlall probability thereaf ter under the pro'vi-4 W ~ 1sions of~the indenture'and charter. 'I ~ ? iInformthg'ajudgmentastofinancing1requirementsI'believethat. ] LJersey~ Central)' assuming:no difficulties under the: Revolving Credit. ~j .y. y " ~ ~ t 5:v1 ,( / Agreement,f austiget int'ojan earnin' sf position. suf ficient to issue - j i g ^ b ($50,000,000'of mortgage 1 ondsLin~1981 faboutl$55,000,000 in 1982 and

r

over;$200j000,000cinl1933-1984;-: l

'?N - ^ ~ f . ?T 3 ad h. 4 8: =, ((:q ~ - M, .f, s

j dg-

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i

" % 22 - . ;y .;. ~' m '2 b 1Q.' Please"describi Schedule.17.~ ~ ~ ~ ~,. ~ - ^ A. ISchedule:l'7 sho'ws the market' evaluation 'of ? the stock of Ceneral' Public] s:l ~ IUtilitiAs Corporation.over; the ' years '1970 to date.; Column 'A shows ' the > I

average' market pricef of. thel stock'; Column :Bishows the earnings per aver :

agej share of stock; Column'Cfs' ows-the price / earnings': ratio; Column:D '

h ~

shows the ~' dividend paid, Column E shows the' average yield, Column 1F;

+ r 'shows the ' average book value and Column' G shows the market to book.'

c..
ne price'today reflects the' unhappy' market' history following

- value. - the Three Mile Island accident. GPU, because of' financial strain and collapsing. earnings, has' been. forced to ' omit its dividend as has Jersey ~ Central. + Q. What would you: consider a measure of physical growth for an electric, utility: company? !_ ~ A ~. One measure that is often used is growth.in kilowatt-hour. sales. i 1 ~ -Q. How[does the_ growth of kilowatt-hour sales of Jersey Central ~ compare with the growth of its net plant and of interest' charges and preferred Ldividends?' Ya [:- -A. Schedule.'18'shows the proportionate increase'in kilowatt-hour sales and net plant 'usin~ :1970 as a base,. with the increases of total-g ,,y -interest charges and preferred dividends on a similar basis for the . :t years;197011979 and for the: twelve months ended June 30, 1980 and -311ustratesthhtincreasedsalesofelectricenergyhavenotkeptpace. .n '{a-. with[ increased'costsof~seniorcapital.- ? -g,, M~.35 Y? E' z\\ m.fr. -.5. p i s

r-s_m

[,' ,+ 4 4

~ '*

N s /Qi -.... ' 7,1 4 7 2.g,,, p_ j.3 w. i

j m m ~ 4- ,~ 15 - Q.- Please: describe Schedule 19. JA. JSchedule 19 shows the latest earnings, dividend rate, market price, yield and. price earnings rates for th'e common stocks cf 94 electric utility; operating companies and.of.11 electric uti1ityIholding compan- ~ ies which is compiled monthly.by Reis & Chandler,.Inc. The average-yield at July 31,1980 on the common stocks of th'e operating companies was 11.0% and ofsthe holding companies was 11.5% (excluding GPU). The price earnings ratios at that date were 7.7x for the operating companies and 7.2x for the holding companies. Q. Do you have other da'ta it.dicative c_ the relative disfavor into which utility stocks have fallen? [3 () .A. Yes. Schedule.20 shows an analysis over the past 15 years of the common stock' portfolios of the twenty largest non-specialized mutual. funds. These investment companies had combined net assets of approximately $16.6 billion at December 31, 1979,- and represent about half of the assets'of the total mutual fund industry. The schedule shows for each of the years. 1965-1979 the percentage which gas and electric utility common' stocks have represented of the funds' total common stock portfolio. These holdings have shrunk from more than 10% of the total to a little more than 2% by the end of. December 1979. Moreover, although the infor-mation is not; publicly available, 1 am reliably informed that the pen-sion fund investments of the major banks and trust companies include ielatively sadl'l holdings of these stocks. Clearly, informed investors / . hwe been looking with disfavor at utility common stocks in an uncertain I 'ir.flationary and regulatory environment. 4. i l

r .. 1 - e n.x

+-

w = y 73 Lyn w mg av. nm x23 ;m ~, p y,',g -~g?- -, mg%g-y;. w., 4 y. : we. y y ~ g;:.3-p g _ g e i > v f;

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s }z ~:}: U K. $.

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~".'

1

.s ,L-w ~ n x ~,,, u.:,

k

~J y; yly. 2 @. i_;1{ ; _ n , e Q ., a 3 4 - u - %r m w- -+ - ;g ^y 7% ; P.n '.t 3: g.. i . n. -..g y;._/., u J.. ,,r y ?

q Q,}

, _c h [ 7 " -%/_ ; n .r. ' . y . w;- o V. W -;g N M N ", gm f ~ M ~ -~ s iw Qj ' JDIdlyou consider..any:otl'ief dAtaildt is relevanit to..a determination of 2 m p ? -v. m y wf ~ ,..y 7 r vs. - ~ z. ? 3, + Safair) rate'of' return?^' ~ f s e: 2 s s 4 I t s a' e ~. ~ 1.M deshf did.t ?I' con $idered thA rate of-earnings of-other enterprisesEndt f v 1 a x p '";inthe]phbikutility[fieid.g H + L 3 (- f,, f .~ .,.= " u. + y

n te r

- 1,

Q.;: Why?<

s y Ah First[because3n'abroadsenselthe-Company;mustcompete:forcapital- ~ ' m-with all" enterprises, not_.only.with utilities,:although competition.may? w a be.kienerTwith'_the)latteriTMoney. invested in common stocks-is mobile = J z c and will move' quickly;to the currently most attractive ' investment' 2^ Second,-iffa utility?s' earnings'are kept down'to'a, level

opportunities.

J inot. consistent with'thatlearned byfcompetitive enterprises, thenLit

8 seen:s to me that' this :will be a distinct ' deterrent' to raising capital lnot only'in,theishort run.when it may be; extremely difficult if--not W

'impossib'e,fbut alsofin,th'e'long run. l

p c

.Q. Where are your studies on this subject shown?. .j My. studies _oni his subj ect are 'shown. in Schedules ;21,s 22, 23 :and 24. A. t el c _. Schedules L21)and-22 show the rate of earnings as measured 'by booklvalue n 'for'certain of-the largest; companies in.non-regulated industries. Ear 2-s UW ~ xings (of.cdurse., include 1the, amount available'for interest as well as r-I

foridividends? Fivefyearsia'go the business risk ~of industrial consumer-s >.

s

s' g

y .m p c;. ,. goods' enterprises whihhlare competitive probdbly'would have-been- ,f 3 ~: MJ Tconsidered greater than = the risk on'a company cuch 'as Jersey Central,- 7 t + yy. tbut/the' greater ability > of the -industrial' compa' ies ' to' reprice: their. ~ h~ .. - s ~ s t_ . M;c,, n ~ w j g a _,y + T3 ^ ~ t 3 'rwgkf m

c s,

y' * ' ' .g. N { jib t } } [ e-N} j u r t g. 4 s. h 4.5 ~. '.Q . <^ 1= + 1 ?-: vy+ 7 e 4 I'Al 's c " ' A :? s_.j-2.- ' *d r

a;; P a._

N_' " }y _ " M-' ,, pl- .pg -?.

t
~ ?);,,

Q3 g L N q-1.,, N

Y ~ c..

% v g. f ;??. . l b y. ; @ i _. _ [-Q '{L Q y Y- -LY' i ' ~ ~~ ~ V f, l' ' y.

m -- c &G s A t .17 - - products and: services has changed this relationship.. Furthermore, 'the. financial risk of. industrials,'as measured.by the relative proportion - of' senior securities, may be less. Moreover, manufacturers are not required to make enormous expenditures on;new plant facilities; utili - ties'are.~-Schedule 21 shows the average rate of earnings on average capitalization (not common stock' equity) of the twelve largest compan-les~in'the manufacturing group representing the major producers and - sellers of food products -- another necessary service. These averages have-been compiled from published data and computed in the same manner as utilities. It will be noted that the earnings _on average total capitalization have averaged 12.5% and were 13.8%'in 1978 and 13.7% in 1979. 7- _ t Schedule 22 shows the average rate of earnings on average total f ~ ' ' capitalization of the five largest tobacco manufacturers which have had. t similar stability characteristics. This data wve compiled and computed similarly to that of.the food companies. The earnings on average total capitalization have averaged 12.3% over the past ten years and were 14.1% in 1978 and 15.7% in 1979. 1 . Schedule 23 shows the annual rates of profits on stockholders equity,'by industry, as compiled by the Federal Trade Commission in its t Quarterly Financial Report for manufacturing, mining and trade corpora-4 .ttons for;the'first' quarter of 1980. Profits after taxes well in ex-t cess of 15% are commonplace. i F Schedule 24 throws light on economic conditions and may be regard-h ed-as'a convenient reference to well-known economic facts. I believe a a t

y my- ,g ~ 1 m 7 -; ~ t + _.1., =;i - a .._ igT _ rg% ~ 3 a x a .i, m 7 that columns D, E and.H~arejparticularly worth 7 of note, indicating'as ~ they-dolthe extent df'an-inflationary-economy. The purchasing _ pow'er of

y i

~ the dollar,Las;we All knbw,ihas been; steadily shrinking. s.Thisihas: - producedian; inequitable' result: to the'. common ' stock-investor,; since the; ,1 dollars of return he receives are quite different from relative purchas- ~ 4 ing power, or real value,: of: the' dollar. Q. l-JIs the^ Jersey Centralisituation at.all-like that of other New Jersey- -electric utilities? L A., .The Jersey Central. situation is unique-in the annals of regulation of-electric utilities in this state. Jersey-Central. clearly is so. 'different:that the usual approaches to cost _of capital and return on (Y / ~. )- . common equity cannot rationally be applied and produce a result com- ~ mensurate with'the Company's.short term and long term requirements and its need to stkrvive and rebuild -its' financing; capability. Specifically the Company has been, is,and in.the absence of substantially increased . revenues.will~ continue to be on a knife edge.with respect to short term borrowings_;~1-does not have at present the financing capability.to .; issue mortgage debt or preferred stock;.'its common dividend and that of Eits parent'have'been oditted and its power supply situation requires a - major strengtheningi.As _a result of the prompt action of this Commis- ~ sion;in recently authorizing interim 1 rate relief in the instant proceed. ,ing,f and Jassuming no further unforeseen adversities, some limited ~ financing' capability probably will develop next year if additional rate l increases.are fcrthcominh,' but not based'on present revenue levels. s e A..c ~ k r', e-I + 7: O 6 l b ~ J 1 1c s, af z

w m, n. ' AM., 'my"k m .y.: =my ,'yh..g;,C N, / M y~. ^*,jQnt - Wy ;

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" >S4]Q4 i hWhanareJthe: cust!omarylstandardsiand[yahdaticks 3dvolved in 'a' determina. ?< ^ c ~ .atw m

w.

- 1% tion ofNost[of Mapita10and[ return:onhommonleipiity?k ~ h k[ [ '._ m ~

e n.3

%, ( f k ^q.

[

g ? .i 1 A? = Comparable: earnings.; Tdiscountedi cash ; flow, ;; r,i sk premium ' rela'tionsh'ips ;.:

t t

W ,v a nt, , at ,I Y [. Leap [ tan,assespEicing models; earnings priceiratios';idiUidend y'i. eld - 3 ~ '~ _7 , ' j.. .s 5 .a ...t yf ~ ,y Srela,tionshipsp,new moneyineeds;) market lto book' relationships;?propor-s - + q ' 'j : -..:.- ~ h (tions:of capitalLiand' capital; structure; security ratings:and. changes'in y = ratings [financ'ial_ flexibil_ityL and, of course, the: ability [to survive! y u ^b F a 'and' render:prope,r servicev q 4 J .d. o L Q.. . Is (it : reasonable,to put. together a pot -pourri of these. factors and ; facts Q y 1 e ~ y fand arrive' atla.-single' figure'for. cost of-commonsequity in this case?. \\ % ~ ( A. Because of the uniqueness s of the. Jersey Central situation' it.would : be .j; lib p y. . : difficult or perhaps; impossible to doLso and firmly support theiresult. 3 J E

Q.

What do'you;believe is a rational' approach?' .,,n t 2A, I believe thatr the rate orders of the _ Board relating to : Jersey Central 3-c h, 'in' the past :yearf ave ' generally demo'nstrated a thorough-going under- ,I h P staNdingiofthes'ituationandofthe: cash'flowand'earningsrequirements d i n3 s 4e

y of ~ Jersey: Central ~in or' der to maintain present service' and provide for ~

i ~ t x m E the future. ., J ~' j w' . Bothiin the June 1979 and Aprilo l,1980 Orders, the ; Board - 4 .L + fapparentlyffelt Lthat. it wasjnotxin a position to determine rate base, i W .c s; v )Ellowabli expenses,lrate' of treturn and overall revenue requirements as f n... ' ;.. .b n p ~,, Q-,- 1it would conventionally do and;the May.13,c1980 Order is expr,essly an j; w y:.4 -3 ':. ~ 1 Interim 0fdir granted underiemergencyfconditions.. Consequently,~. this. 'I ,f;9 - t _n, ,. a y' f j proceedingL presents 1the first : opportunity for the Board 'to make such

1 t

c., s ,-4 e,w r sq ~ *x x t determinationiinceithe UniI-2 accident - in?Harch 1979. 1-a y L 3 w[x% 5 .U '.J8 ] 4 ,^s 4 f-f: c a ,,wa ~,. n n2 - m s yj .n l "" '^ 5 ' /

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/h 3 ~s J gw- ~ s m e 't ; L:Q 2.d s , ~. ,EInithat context,3the[ question ofcthelappropEiate. rate.bf returnsto: ~ >. - -~ D.s A ,s 1 +.. * -' T 5 1 -- belallowed is essentiallyfinterrelated;torthe rate base;to_which itjisi m L s n. 5..2.... ~ i.. tio?bs applied'l'andibisofto the'expsns'esiallowed.for other; purposes -isuch 'd, + j -. g - : ~ -a ~ -y, ashfor[ example,(theamortizationlof'JerseyLCentral'sjinvestment'inf q 7. ~ Forke'd River. / Jersey # entral's cost ofj capitakis 'a cons'equcnceiof. thel &} C ~ itotalitiycof itsLeosts The: exclusion of an item of: investment from rate. - base.does"not relieve Jersey. Central of.the interest and: dividend

chargesboperation and-maintenancefexpenses, and provision for deprecia-

-tion;-insurance and' taxes associated with that investment. Similarly, q-cthe. exclusion offan expense from the allowable category does not relieve ~~ ~ ~ Jersey Central:of the expense. M9' 2 For that reason,[in submitting what I believe to be a rational- ^ f ~~? ! approach for. costing common equity, I must 'make explici,t the assumptions : u1 .I~have. employed withlresp~ect to' rate basefand associated items. - 1. I have assumed that.the-Board in this' proceeding wil1~ continue 4 _ + N k to exclude.from rate ba'se the. capital investment in both TMI-l s. ~ --andTMI-2Iandwillalsoexclud'efromallowableoperatingand / maintenance costs those costs that are' associated with'both TMI-l' 2 'and TMI-2, i.e.',jthat<it will continue theLtreatment accorded in

1; y

1 7 ~ tits-April'1,f1980 Order; -( '2[ I have assumed thatEthe Board will have authorized an Cr increase,in the LEAC to provide for current recovery'of~ energy A4 " cost's'in the. LEA'C; period and fdr some reasonable amortization'of i + [W[ W' ~ <a-- -.the amounts; deferred s'ince the' TMI-2(accident' and' prior to the N> -N __ _. 4 7 e a, -y .&y 1 jb 1 3 ' f;. wQ; [,, ,. <',_e 3 i g " iM -?y - L t g r e-g 3 s e s .., h r?" O%Q

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7

.,, i Ul 'L.V U. Qf + e ~'ig," i 4 .'_i, :- y i,. '(/ A q%1 J9 u. ,c I b, .g 3 '?

n.. g= ", - ~ ~ v =_ =,- m mg a yn .h y n + - y ^ Q + -, Ak ?. ~ + c ',8: 3 a i ~ j ~ 4.2, q -s, J-21~-- M a f-v. y-; I '\\. f ll s Ih i new'LEACLorder; and' 3 x "3.. : I1have assumed L that: the Board will-auth'orize some.~ Jersey - ~ h Central revenues-for the' investment'in Forked-River.

t On thatlba is, I believe that the-appropriate rate of-return on l

~ ? common stock equity approx'imates'18'3/4%-19'1/2%. p ; q In the.last'two' rate?. orders lof the Board rela *.ing to Jersey Central ~ s + before.th'e TMI-22 accident, namely,'the Phase I Order, dated September 1, j '1977,-an'd: Phase II' Order, dated January 31, 197.', in Docket No. 7'610-a 1021,mthe Board allowed Jersey: Central a. return.on common stock equity. ( of 13.25%,'which was'approximat'ely 4 1/4% above the. weighted average . cost to Jersey. Central of the first mortgage bond issues sold by Jersey l Central.just prior-.to-such orders - namely, a $60,dOO,000 isaue due m (.3 '200'7 sold.by Jersey Ce'ntral at an-annual cost of 8.91% on May 10, 1977 ^ g a =and~a $50,000,000iissue';due 2008 sold by. Jersey Central on January 24, ( ), 1978-at an annual cost of 9.15%. As I:have.; discussed earlfer, f" Jersey Central'had the interest 3 . r-coverage t'o permit it to do so, the probable annual cost to Jersey i Central-of a bond issue'today would:be about 14 1/2%. It is rational J .for the Board toLutilize in this proceeding as a yardstick approximately-Ji di 1 d- ~ ~ . th'e.same = relationship between current costs of long term debt' and ' com- 'i mon stock equity _ as prevailed lwhen.its 1977 and 1979 Orders in Docket' jl ll No.37610-1021:werezentered. Indeed, one'could well. conclude that'the 4 i Nemonstrate'd risk experienced :by the common stockholder to date justi-fies increasing that margin.,But; if I were to use only the 4 1/4% i . m,, difference between the common stock equity return in the Board's earlier _,a. '4. 4, ~ y u 1 / g T y q; .g t, y L- ~ .+ ws 4w . qj m_ w. s

e mc 7; r-. x 1 w-2 a w ~ .,0 , z ~ r y ,,,,y gy y w 1 , [y) ~ .- 2'2 ..,, + 4 4 '. $/ _ Orders'that..I' mentioned'and the cost of'new funded debt that. prevailed 4%.

st"that time, the' common: stock equity? return allowance would be on the.

^ . order of l.a 3/4%- (i'.e'., the assumed 14 :l/2% current cost of long term - idebttc'JerseyCentNalplusadebt-commonstockequityldifferentialof ~ 4:1/4%)'.. If; in' recognition of'the. increase'in risk,lthat differential-i

w're taken at 5%,.the common equity' return requirement would be 19 1/2%.

e '.~Another,. and probably. the most rational approach, is for the Board - to determine what rate of return on common stock equity is required to g restore Jersey ' Central's ability to raise capital and to carry out its public: utility. obligations. As I indicated earlier, this is.directly affected by the~ Board's-conclusions about the components of rate base ((- and operating and maintenance expenses. On the assumptions that I have \\_ t made, an allowance of common stock equity return at the 18 3/4-19 1/2% level.would provide major movement toward. that objective, and would (be beneficial to customers in the long-run since it would reduce the long run costiof capital to Jersey: Central and provide greater assurance for its ability to carry out essential construction. .Q. How do you. reconcile your recommendation with the fact that Jersey Central's -- schedules supporting its requested rate increase reflect only a common stock equity return of 15.5%? A.- --As I'have previously' stated, there is a direct relationship between the. approptiate rate o'f return'and the rate base to which it.is; applied. ~ The appropriate: rate of' return is essentially-related to the financial o market-required > return onitotal capital;~within limits,.part of the .t ; .y k,, 'x w _; q e, g ; ^ A 1 3 - ' -Y: ~ Q f._::K:: L[,, - G> W ^;j'~ -t y ~ c

p: _ r= ~ s J s market-required return on capital can:be provided through allowance for funds used during construction. However, in the case of' Jersey Central, 'tha't option is'apparently not'available under FERC acccunting rules for ~ ' the investment in TMI-l and TMI-2. In the Jersey'C'entral schedules, it has assumed that its invest-ment in TMI-l would be included in rate-base and that all TMI-l operat-ing and maintenance costs would be included in' allowable expenses. While I concur with Jersey Central that that would be appropriate, I have assumed that the Board would continue in its Order in this proceed-ing the treatment of TMI-1 that it accorded in its. April 1, 1980 Order --J de all TMI-l operating and capital costs from base L - namely, tr .- rates. I also assumed that the Board will not grant in full '~J ' Jersey Central's request for Forked River. If my assumptions are wrong - i.e., if the Board includes all TMI-l investment.and operating costs in base rates and also makes provision for Forked River investment along the lines requested by Jersey Central , my recommenda' tion for the allowed rate of return would be significant-ly reduced -' to a level, say, on the order of 16%. This is but another = vay.of saying that Jersey Central needs a certain level of additional revenues'in order to restore the financial integrity of its capital and its ability to maintain its credit and to attract future capital. That number of' required additional dollars of revenues is essentially inde-pendent of the rate base or operating and maintenance expense allowances employed. 6 1: f 5

pc;. .y)yy ,.e

e

~ 3 i, y g ,k '~*4~' Q f My conclusions witt. respect; to' the: appropriate allowance. for com- ] s mon stock equity.-on'the. basis of the assumptions I have made, is.thus ~ ~ ' consistent with 'the' rate of return on common equity ' reflected in the. iJersey Central schedules (that are based on different rate base and- ~ 5 ~ operating'and. maintenance expense treatment), except, that I believe -that. ~ the Company's-request is on'the low side of the reasonable range. I Q?- Would you' please. summarize your opinions as to the fair rate of return-for the Company?- ~ A. As shown in Schedule 25 and on the basis of rate' base and operating and ~ main'tenance expense allowance's for TMI-1 costs similar to those in the L Board's April' 1,1980 order,: a reasonable judgment of the appropriate ' overall cost of capital for' Jersey Central is 12.48%- to 12.75%. After consideration of the studien. Indicated, it.is my opinion that on the basis of these; assumptions a fair overall rate of return for Jersey Central falls in'~the range'of 12 1/2% to 12 3/4%. ~ August 1980 s 4 7 'b, 5, w Y i r T.2 ,.%-J~ s -3 'I ~ P 4 Y l m t __=___.,____._L____L_,';__L____._,

a ~, ~ ...e + '_ h s..> e ~. - ,.m.._ ~.vx 'L.

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n-x 8 N 4 4 r t g i' a., j , + .s+ 4 y' r, ', [ ' ~ - +..? 4,' .[ , f.] d, f ' Ex' %t:1 bit No., r 5# y. l w JC-601 c ~.- s ..z. . w.. .e 70 t ~ ~. s m; p g, s. Witness: LLdS.LReis' j . o q. s. .u 1 ,:n e, q l.-> l ).g } l3 3 + l 4 . _ey -e[ 7e 9 j + p h h-y m. .-~ [X. t 5. ' JERSEY' CENTRAIT POWER & LICHT COMPANY. ,.~ i. o.',..- a n' 5 ..Ja-- e .w> 3 y, ~ r s i 2 c., .f t 3 e 1 f s i.., ' b p 4 CERTAIN. DATA USED IN DETERMINATION OF - + g. 7 ~ i A ' FAIR. RATE OF RETURN t a .t / i l. 9 . e c d i 4 .t- . r.s I f a t; t k T a , AUGUST.1980 I ^ i y ~ t 3, 4 I 'v N 4, i t ' 'd :. e - ^?' 1 "*a J .c .^7 f r.;-

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-g k ~ JERSEY CENTRAL ~ POWER & LIGHT COMPANY-N/ 'INDE ~ Schedule 4 .CkPITALSTRUCTURE,JERSEYCENT'ALPOWER R &l LIGHT COMPANY, December 31i 1970 December 31, 1979 and July-31, 1980.'............. l-CON 3OLIDATED CAPITAL: STRUCTURE, CENERAL --a - PUBLIC UTILITIES. CORPORATION'AND SUB-s ~SIDIARIES, December 31 -1970. 2-December 31,:1979 and July 31, 1980...~..

CAPITAL STRUCTURE [. ELECTRIC UTILITY ~

. INDUSTRY AND JERSLT CENTRAL POWER & LIGHT COMPANY, December-. 31, 1970-December 31,'1979...;..:.....-................. 3 JERSEY ' CENTRAL. POWER & LIGHT COMPANY, CAPITAL' STRUCTURE, July.31, 1980.and

Estimated December. 31, 1980.........

4 ' MOODY'S AND STANDARD &. POOR'S RATINGS. 5

YIELDS ON CUTSTANDING PUBLIC UTILITY

~ lBONDS, MOODY'S ANNUAL AVERAGES,- 1920-1979............... 6 ~ YIELDS ON OUTSTANDING PUBLIC UTILITY' BONDS, MOODY'S MONTHLY AVERACES.- January 1969-June 1980;........................ 7 ' AVERAGE COSYS-BY' QUARTERS OF NEW ELECTRIC. AND GAS UTILITY LONG TERM DEBT ISSUES SOLD: PUBLICLY AND RATED "Baa".BY MOODY'S, January.1948-June 1980......... 8

SUMMARY

-0F ELECTRICLAND GAS. UTILITY [ .LONG TERM DEBT' ISSUES SOLD PUBLICLYIAND ( RATED;"Baa" BY, MOODY'S,(August 1,;1979-August.. 1,;1980 7..:.:.~............. .9' -JERSEY CENTRAL' POWER & LIGHT-COMPANY, ' COST-0F LONG TERM DEBT GUTSTANDING,, December 31,-1970-December 31, 1979,and July 31, 1980. 10 . YIELDS ON OUTSTANDING PUBLIC~ UTILITY' [ PREFERRED STOCKS,' MOODY'S ANNUAL ,LAVERAGES,!1946-1979...:.-l...... .11 ^gt 1-Q. f ~ s p d e. + ,dA ~ k.:.,i G '.q JP Mi ) V ~ .( ^ ~ y

_G,, E Schedule YIELDS ON OUTSTANDING PUBLIC UTILITY PREFERRED STOCKS, MOODY'S MONTHLY 12 AVERAGES, January 1969-June.1980............

SUMMARY

BY QUARTERS OF' ELECTRIC AND GAS UTILITY PREFERRED STOCK ISSUED PUBLICLY AND. RATED "BBB".BY STANDARD & POOR'S, 13 ~ January 1962-June 1980.. JERSEY CENTRAL POWER & LIGHT COMPANY, ' COST OF' PREFERRED STOCK OUTSTANDING, December 31, 1970-December 31, 1979, July 31, 1980 and December 31, 1980 Estimated....'...................... 14 JERSEY CENTRAL POWER & LIGHT COMPANY, -RATIO OF EARNIriGS TO FIXED CHARGES. 15 COVERAGE RATIOS, JERSEY CENTRAL' POWER f"] '& LIGHT COMPANY, AND THE ELECTRIC i / UTILITY INDUSTRY, 1970-1979................ 16 . GENERAL PUBLIC UTILITIES CORPORATION - 17 FINANCIAL DATA.. JERSEY CENTRAL POWER.& LIGHT COMPANY, NET PIANT, KILOWATT-HOUR SALES AND INTEREST AND PREFERRED DIVIDENDS, 1970-1979 and Twelve Months Ended June 30, 1980. 18 EARNINGS, DIVIDEND LATE, MARKET PRICE,. YIELD AND PRICE EARNINGS RATIOS OF ELECTRIC UTILITY COMMON STOCKS COMPILED BY REIS & 19. CHANDLER,'INC. MONTHLY. / ANALYSIS OF ELECTRIC AND CAS UTILITY COMMON STOCK HOLDINGS OF TWENTY LARGEST 20 NON-SPECIALIZED MUTUAL FUNDS. RATE OF EARNINGS'ON AVERAGE TOTAL CAPI-

3 TALIZATION, AVERAGE OF TWELVE LARGEST JF00D COMPANIES, 1970-1979'...: ',...................

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_f ,1 i ,v ~ .3-8 kt: c..3. ~ -Schedule-m- s*i y n; .... RATE OF.EAUINGS ONiAVERAGE.TOTALtCAPI =TALIZATION AVERAGE OF FIVE LARGEST' ' 22 TOBACCO COMPANIES,11970 1979. .,.j.c. .. _. con. n..-....,........ (ANNUALRATESOFhROFITONSTOCKHOLDERS'- ............... ~ ~. -- 23 . E.QUITY, J BY. INDUS_TRY.. '. ;. =.,...........,. =... s ' ECONOMIC DATA'ON OUTPUT, PRODUCTION,- -PRICES'AND WAGES - POST WORLD WAR II--' .TO DATE..l -: 24 - JERSEY ' CENTRAL POWER & LIGHT COMPANY, -. -25 COST OF CAPITAL..........,.-...... k d' .c 6 t J t ..dY ~~ .'t l .y } ^ I 1 4 '.p 1 2 ^ L .g a u. -.5 1 g . g 3 d f 'I .g vs s c _ e m'c r Jft s -. _-j; ~ .:f': Y? = ~ s -. ~ .? " ^ pg llh -( ~'I \\ ' a g~~ < _ - a .',!. ' [,. ^ 5 ~ -4 '. M J v,s' 3 r s. s.; 67'7,y.. = ".s

N .D s Q). us ty M h I 'O . Oq g rg rL p n' . CAPITAL StitUCTURE j (j y d bI b JERSEY CENTRAL POWER & LIGIT COMPANY December 31, 1970 - December 31, 1979 and Jtaly 31, 1980 AMOUNT (000) Percent of Total Capitalisation C. i Stock Baulty Common Premium on Capital Total long long Term Preferaed Common Capital Preferred . Stock Earned Cm Total Term Preferred. Stock 12/21, Debt' Stock (1) S tock, Surplus. Stock Expenses Surplus Equity Capitalisation

Debt, Stock __. EaultY 70t41

$ 9,8743 $ 285.100 709,215 53.8% 5.9% 40.3% ~100.0P; 1970 .$381.515: $ 42,000 '$124,213 3151,378 $235 ~ $ 1971 463,215 92,000 132,113 156,978-372 (78) 10,251 299,636 e54,851 54.2> 10.8 35.05 200.0

1972 485,420

-117,000 '132.113 208,478 465 (150) 12,932 353,838 956,258 50.8 12.2 37.0 .100.0' ' 1973 590.660 '112,500 153,113 231,489 442 (111) 13,727 399,260 1,102,420 53.6 10.2 36.2 200.0 1974 605,694 137,500 153,71 270,489 442 (1,134) 17,769 441,279 1,184,473 51.1 11.6 ' 37.3 100.0 1975, 6el,238 161,250 153,713 283,489 442 (2,167) 18,055 453,532 .1,306.020 52.9 12.4 -34.7 100.0 ^ 1976 743, % s-160,000 153,713 323,489 442 (1,898) 18,950 494,6 % 1,397,885. 53.2 11.4 35.4 100.0 4 798,001~ 208,750 153,713 363,489 442 (3,725) 20,448 534,367 1,541,118 51.8 13.5 34.7 100.0 1977 .830,998-2C7,500 153,713 407,489 442 (3,195) 20.023 578,472 1,616,970 51.4 12.8 35.8 100.0. l 1978 1979 , 897,625 206,250 153,713 436,989 442 (2,597) 58,658 647,205 1,751,080 51.3 11.8 36.9 '100.0 7/31/90 889,865 205.J00 153,713 437,140 442 (2,252) 65,4 % 654,539 1,749,404 50.9 11.7 37.4 100.0 e A3euming Jersey Central Power's Lif.at Company and flew Jersey Power & Light Costany had been merged for entire period. (1) Including.35,450,000 Preferred stock subscribed at 12/31/74. EN 12J " source: Anr.ual reports to the Federal Energy Regulatory Commission and information supplied by Company. o In* " g l

~ c ;,. S.% N j i i V-i; w ,.'y' s J t L. ) , [ CAPITAL statrWitz' (Including Short Torm Debt) .g lL j. JERSEY CEgrrRAL POWER & LIGNT COMPANY December 31,1970 - December 31, 1979 and July 31, 1980' Percent of Total Capitalisation . M' Debt Debt D le Stock 'Eaulty . Capita 11ratton. Debt ' Short Term. Totek Preferred C . StocIt AMOUNT (0 0 01 long Term. Short Tern Total Preferred C Stock Total Lon9 Torm. Debt Debt Stock Eaulty 70tal 1??O $301,515 " ;$ 46,300 $ 427,815 $ 42,000 $285,700 $ 755,515 '50.5% 6.1% l 56.6% 5.6% 37.8%. 100.05 l'47 1 '463,215-13,200 476,415 92,000 299,636 868,051 53.4 1.5 54.9 10.6 34.5 100.0 .]' .1972: 405,420 14,900 500,320 117,000 353,838 971,158 50.0-1.5 51.5 12.1 36.4 100.0 ' 1373 590,660' 11,700 602,360 112,500 399,260 1.114,120 53.0 1.1 54.1 10.1 35.8 100.0 1974 _ .605.694' 81,000 686,694. 137,500-441,279 1,265,473 47.9 6.4 54.3 10.8 34.9 100.0 1975 . 691,238 ~, 26,700 717,938 161,250 453,532 1,332,720 51.9 2.0 53.9 12.1 34.0 100.0 743,189 160,000 494,696 1,397,885 53.2 53.2 11.4 35.4 '100.0 1976 .143,189 798,001 208,750 534,367-1,541,118 51.8 51.8 13.5 34.7 100.0 1277 .798,001 1978 830,998 54.100 885,098 207,500 578.472' 1,671,070 49.7 3.3 53.0 12.4 - 34.6-100.0 1979 897,625 45,000 942,625 206,250 647,205 1,796,080 50.0 2.5 52.5. 11.5 36.0 100.0-7/31/80 889,865 133,000 1,022,865 205,000 654,539 1,882,404 47 3 7.0 54.3 10.9 34.8 100.0-A!suming Jersey Central, Power & Light Company and New Jersey Power & Light Company had been merged for entire period.

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v.. : c,x. o r %, .1, ; e +x,, '#~!^ . ;M _ y.;; (,;).l' 'N ~ ^ -s Ei .,.?> i + ' Y ' CONSOLIDATED CAPITAL STRUCTURE AU.(S 1 I' GENERAL PUBLIC UTILITIES CORPORATIOtt AND SUBSIDIARIES 's< --.)'.. i >y A, t. ov 31, 1970 - December. 31, 1979 and July 31, 1980 ,f r ' ' ' ^ G / December c .} ;gm.., s-.., g.y ~

3

\\w ~ ' y 'T s g ' UM O U N T' ' 10 0' 0F Panc=T or 10TAL CAPITALIEAT1006 " i I:5 Total. i '#(,, _.{ y12/31..... 'long Term ' Prefe rred C - n Stock.. Total.... Lon9 Term Preferred-e m Stock ,Capitalisation ~ je j .e peht* Stc L ' Eaulty > Q pitalization Debt ' Stock- ' taulty ' r .a .i197b -$1,101$179 $101', 591 < O 'L$' 623,518" $1.826,589 60.3%[ 5.6%~ i34.1%> s 100.0C u y

. n, L>..

192,$91 726,334 ,"2,162,644-57.5 8.9 - 33.6 ' .100.05 '

c

.i }197117 - l1,243,419" i i f 197 2. '

l','342,144

302,l91?

' 847,409. 2,492,444' 53.8 12.2. 34.0:

100.0'

~.1973: /3 >s,.- T (., ^ ! ... ' 1,541,184. M'.n '338,l91- . 946,133 2,825,708' 54.5 . 12.0: 33.5 -100.0 ,1,515,105. 363,191 1,027,359. 2,905,855 52.2

12. 5 '.

35.3, -'100.0 - ' ~ ' '] 1974.; " ^ + .,..3 p i < #g" '. 9; '1975 1,724,785 ~ 444',141 1,135,8821 3,304,808 52,2 13.4 34.4. I 100'.0 '. ^ ,,43 a J 1976 -' . 1,867,8 d ? 476,i41.. 1,178,775 .3,523,258. 53.0 ~ 13.5 .33.5 .100.0,', [1,951,002 524, L41 1,304,946 J 3,780,089 c 51.6 13.9 3 34.5 !100.0' '1977 ^ J;1978) 2,079,6881 _521,641 - 1,361,621 - 3, % 2,950 52.5 13.2 ,34.3 - 100.0' 7 ~,0%,893 ' 53.4 12.7. .' 3 3.9 - '.100.0 ~ '1979 5 2,187.786; 519,~141 la389,966 4 . 7/31/90... 4 (Approximate) 2,188 ' 514, 1,403 4,105-53.3 12.5 34.2. 100.0 d i s g -, as en. ' h O a. e t%-- .s g, / 4, 11 P ((f.5 t,7 4' y. 4 [ '4 0. r v ~ c,4 o-s: l; 'Q Q u G:...

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s r 9L 3. y + - ' ^ ~ i; 1 ,' / p q J h; i !. ng' + l' l , L' g i -[ [i g h d- ~-~ . C .g ~ 4 ( ; '4 = -. ' ~. ' CONSOLIDATED CAPITAL ^ STRUCTURE k ). _ (Including Short Tera Debt)- 5,

w. =

r CENERAL' PUBLIC UTILITIES CORPORATION AND SUBSIDIARIES.' ~ ? s + < ~ '( December.31, 1970 V. December.31, 1979 and July 31,'.1980 7 .y _. ' g' s X,y 4 ...e 9 - g , k ( 7 u l 3 ' F'JRCEst? OP TOTAL CAPITALIZATION + - Long Term Short Term -. Total Preferred ', C-n Stock _.. Total,. Long Tern Short Term. Total, Preferred. Ca== art Stock. - Total 'gl " ? h,}, ' A M O'O N 7 (0 0 0) 12/31' ^ Debt -Debt Debt. Stock Eauity' Capitalization Debt Debt Debt ' -Stock- ' Eaulty

gapitalisation" l

'i~ .1!7 0 ', ~ $1,101.179 C $193.730 .$1,294,909- $101,891 t$ 623,518 $2,020.318 54.5% : 9.6%- 64.1% 5.0% 30.9% .100.0%-

m. A l 1971 -

1,243,419: c96,975 ' 1,340,394- ^192,891E

726,334' 2,259,619:

55.0-4.3: 59.3. 8.6 132.1 '100.0 s .1972

1,342,144 40,995-

'1,383,139~ 302,891 847,409-2,533,439. .-53.0 .1.6 . 54.6 - j l2.0 - 133.4. .100.0 c ~ 1773; '1,541.,184 .11,700 '1,552,884' 338,391' 946,133 2,837,408 54.3 'O.4 54.7 11.9- ,3 3.4. ,100.0.. ^ 1174, i1,515,105l: 309,440 .'1,824,545 363,391 1,027,359 '3,215,295 - 47.1 19.6' 56N '11.3 32.0

100.0

< 117 5.'

1,724,785'.

38,950'

1,763,735

'444.141 1,135,882 3,343,758 51.6. 1.1 52.7 I '13.3 34.0

100.0 '

.1976i '1,867,842l 52,450-1,920,292 '416.641 1,178,775 ~3,575,708 52.2 1.5 53.7 - 13.3'

33.0 100.0.

' ~ 1977 1,951,002 71,775 2,022,777 524,141 1,304.946 3,851,864 50.6 1.9 . 52. 5, - 13.6 33.9 100.0

-1178

'2,079,688 90,100 2,169,788 521,641' 1,361,621 4,053,050 51.3 2.2. 53.5 - '12.9 33.6~ 100.0 1 '? 1979 2,187,786. 171,000 2,358,786 ; 519,141 1,389, % 6 4,267,893 51.3 4.0 - 55.3 12.2 32.5 _100.0 t .(Approximate) 2,188 ~251 2,439 514 1,403 4,356 50.2 ,5.8 56.0 11.8 ~ 432.2 100.0 ' ' -7/31/80 d S ' 4$ M S .m oS "

y.

u r 7 4 I 4 4 1 3 t 'l, ?_ _ ~ i

y w s p:3.,;;, . ~ ?K, ~ ~ Q.Q _a u i y y 4: f I > +- .N \\ f.. ' a w , >~ r s na.- I g p" T EI? CAPITAL STRUCTURE g fg , y + . ELECTRIC UTILITY. INDUSTRY AND JERSEY CElfrRAL POWER & LIGIT COMPANY . December 31, 1970 - December. 31, 1979 n .us ANOUNT (0 0'0) PERCENT OF TOTAL CAPITALI2ATION "O . As of ~ .Long Tera . Preferred Cna-nn Stock Total Long Term Preferred. Casuson Stock . Total 44 {12/31-Debt g Stock Eaulty Capitalization Debt Stock Eaulty 'Capitalisation . 7 ~ Electrie Utility Industry 1970.. . $41;937,530 $ 7,499,278- $27,045,297 $ 76,482,105 54.8% '9.8% 35.4%. .' 100.0% i; .1911 l , 46,707,745 ~9,266,485' 30,203,871 86.178,101 54.2 10.8 35.0 : 100.0e 11,428,512: 34,098,753 97,080,398 53.1. 11.8 35.1 . 100.0 - n- ,10 2' s51.553,127 ' 13,089,136. 38,584,546 100,347,163 52.3 12.1 35.6-

100.0 r l 197 3 '

. 56,673, 481-1974-164,498.974 14,857,992 - 42,328,632 121,685,598 '53.0 12.2

34.8'

'100.0' 1975_ 970,819,753 16,7 %,6% ' 47,776,438 -135,392.887 52.3-12.4-35.3 100.0. ~1977. .76,210,323~ .18,295,367-53,661,269 148,166,959 51.4 ' 12. 4 - 36.2.- '100.0' ( 1976 _ 82,177,791-19,894,3 %. 59,941,333. 162,013,520-50.7 12.3 37.0-100.0 -1978 l88,262,073 '21,365,486 66,001, % 7 175,629,526 50.3-12.2 37.5' .100.0 - 1979

NotAvailable-------------------------------------

4 Jersey Central Power & Light Cosepany + . 1970 . S, 381,515 42,000 285,700 709,215 53.8% 5.9% - 40.3% 100.0%.. 1971 463,215 - 92,000 299,636 - 854,851 $4.2 10.8 '35.0 100.0 1972 l485,420 117,000 353,838 956,258 50.8 12.2

37.O '.

. 100.0 J1973 ~590,660 112,500 399,260 1,102,420 53.6 10.2 36.2 100.0' 1974-605,694 137,500 441,279 1,184,473 51.1 11.6

37. 3 '-

100.0 '1975-691,238 161,250 453,532-1,306,020 52.9 12.4 34.7 100.0 1976' 743,189 160,000 '494,696 1,397,885 53.2 11.4. 35.4-100.0' '1977 -798,001 208,750 534,367' 1,541,118 51.8 13.5- '34.7 '100.0 1978 830,998-207,500 578,472 1,616,970 51.4 12.8 35.8' ' 100.0-1979 897,625. 206,250 647,205 1,751,000 51.3 11.8 36.9 100.0 'l Sources - Data regarding Electric Utility Industry from Federal Energy Regulatory Comunission

Statistics of Privately Owned E ectr c Utilities in the l

i United States, Classes A & B". Data regarding Jersey Central Power & Light Company frose annual reports to the t'ederal Energy Regulatory ; . Commission and annual statistical reports. ~,. 2 - ' oe ..g t . M. L f'-. s 4-I Ib A m.

yfq@y:P -.y y '3 7 ;.

4G;

+~ 3xv < - - yms- - ~, - - - -v.,,- M

- 'm

.a 4 b... .. j

$Q *,s

,sy~g'c. e 7 ~ ly

p. (

} 7t N ( " } /. 9 f ' W 3 -f- -5 ' g, g,y '~

~ ' ' ~

MJ. D% %r

p D (O q

,cv "m D -q [ - (Including short. term debt) - M . CAPITAL STRUCTURE - ( . ELECTRIC UTILITY IbDUSTRY AND JERSEY CENTRAL POWER & LIGHT COMPANY -. fr. e s, s Y ~~

f. 'if J

k, December.31, 197 0 ".- December 31,'1979 ~ 1 + ^ M..., ~ " Percent of Tota [ Capitalization s A M O U M'T' (0 0 0) ?1,; i" ;.' "e long Term. Shott Term. Total. -Preferred C -. Stock. Total -- . Long Term 1 Short. Term Total Preferred. C w. Stock-. 9btel + 5' Debt' -Debt. Deb t ',,,,,,_1 Stock -Eauity' Capitalisation Debt' ~ Debt- ' Debt. Stock.__ Eaulty , Capit alise11gg [ '"' 2 ~ b jM Electrie Utility Industry. W' 56.4%-

955%

34.1%4 ?100'.051 [197N H S41,937,530 ? $25701,'815 fS44,639,345 ( $' 7,499.278 L $27,045,297 $ 79,183.920-53.0%- 3.4% E 10.4. ; , 33.9 q 400.0, 4-

1971~.j e6,707,745f y 2.837,867, 49,545.612-

,9,266.485 ' 30,203.871 89,015,968, t52,5 3.2; 55.7 - 1 c 197 2 A 51,553,127 '.-.2,97 0,018D 354,523,145 ' - 11,428,512.. < 34,098.7 59 100,050,416-51.5L 3.0 54.5 .11.43 34;1 _ 100.0-3"' 'X"c11974 Q 64,498,974; ?6,635,863 171,134,837:. 13,0e9,136<' 38,584,546 112,404,928 50.4 3.6-

54. 0. -

11.7 L34.3 .100.0; - .y w-. + 14,857,992 42,328,6321 128,321,461'- 50.2 .5.2, .55.4; 111.6, s33.0 3

100.0

,? M' 197 3 ' y 56,673,481 e n 4,057,765 a ;60,7 31,246,: 01975. f.70,819,7 53 .3,951,558'.'74,771,311 _ 16,7 %,696 ;47,776,438 139,344,445; 50.8

2.9-l53.7-

. 12.0 J-34,3'- 1100.0_ 35.5 N 100.0 > 1973'. ' 76,210,323 ' ; 3,093,529 ~ 79,303,S5), c c 18,295,367 53,661,269

-151,260,488-50.4 2.0 52.4 : ' 12.1.

3 1977J '82;177,791 3,320,676 }. 85,498,467 2 19,894,3 %. '59,941,333 1 165,334,1 % - ,49.7 2.0 51.7 12.0.. 36.3 '.100.0 66,001,967 .179,178,694 1 .. 49.3 - '2.0

51.3' "11.9 i 06.8 100.0-4.a '11973 J 88,262,07 3 ? 0 3,549,168.. - 91,811,241.,' 21,365,486 ;_2...3...........;...........NDTAVAIIABLE............................................a......a...u..

e g1173f_........a........................==- w i s Jersey Central Power & Light Companys q c 100.0%; e m ..42,000.$ 285,700 755,515-50,5%. 6.1%.. 56.6%- 5.6%. - 37.8% :

V;jit70 ( $'

4 - _ 381;515 $.46,300i $- 427,815

i. ',1171.

463,215-,

13,200 J 476,415 J92,000 -

299,636 868,051 53.4 . 1. 5

54,9 110.6 34.5' 100.0<

j if ('1172 w .485,420 14,900. .-500,320 117,000i '353,838 971,158' 50.0 ' 1. 5. 51.5 -12.1 ~36.4 100.0'. g

1974 -

605,694~ 81,000, -686,694'. '.137,500 441,279 1,265,473 47.9

6. 4,

,54.1, '10.1

35.8 '

s: 100.0 s -1173.' t.590,660 11,700.- 602,360? 112,500 399,260. 1,114,120 53.0- .1.1, 3 54.3 10.8 -. 34.9 i.100.0 < t 34 Ol

100.0' sn 5

717,9381 161,250 - 453,532 1,332,720 51.9. 2.0 '

53.9 -

12.1 53.2 11.4; 35.41 100.0' i'

1975I

'691,238. 26,700' .743,189: 160,000 494,6 % ' 1,397,885

53. 2.'

'100.0 ' 798,001 -200,750 .534,367 1,541,118 51.8 e 51.8 - 13.5 : 34.7- 'o

1976-

.-743,189 }.1973

830,998-54,100',

885,098[ 207,500 578,472. 1,671,070 49.7 3;3 .53.0 '12.4 '34.6 -100.0; 1277? ! 798,001 . 1979:

897.625.

'45,000 - m942,625 206,250 647,205 1,796,080' 50.0-2,5 52.5 111.5 : 36;0 1 100.0~ t 5 A. 4 A n-" ' j .. :r .1 26 w

00-%

a 'y

j y

/- P n e u j u p n s v I <)'r J# } W, h I _i

" ' ' ~ 'NL W -f ~ Nw ~~

~

is'

f..r w?w.l., f; V

PW ~ L +. -l- ~ ~. c .s: , n-. : ~ ,A '.n ' ~ ~. _ l ;;; ^ 1. &s ci j., ^ ^ , Jg;. [I EA,_ f [-, x r ,[.[, _d ,e c.c. - +- s g. J,' p,

g. '

m_,, + 11. c ? ,y.-. ~ ur - . Schedule'4 1 yy Q.9 +; A. 1,t_ [ s, e I

j,

e'Y, s, '. JERSEY: CENTRAL POWER &' LIGHT COMPANY l, P s ~ s ? ?. .p 8 ^ ~ CAPITAL. STRUCTURES; cm ~ m ~ -s IJuly 31,:1980'and Estimated December 31', 1980 l ~ ~ + ' Percent-r . Amount' 'ofL

4.r 1

(000)

Total-' . o' f July'31',-1980 4 Excluding Short Term Debt. 7 _ , i $ 889,865 50.9%c Long-Term Debec F

Preferred Stock 205,000

11. 7.f Cossmon Stock Equity _

~654,539 37.'41 $1,749,404 ,100.0% 4 n: Including Short' Term Debt Iong' Term Debt.~ $ 889,865 _'47.3% L f i Short Term Debt 133,000 7.0-i d IPreferred! Stock 205,000 10.9-3 ' Common Stock Equity' 654,539 34.8- ' ~ L $1,882,404 '100.0% p ,,? e n: Estimated December 31, 1980 I~> LongTermDEbt'. 889,865' 47.7% g {AdditionalLongTermD5bt - 100,000 -5.4 iPreferred Stock 9 -203,750 l 10.' 9 - p Comunon: Stock Equity 670,000 36.0-1 -t ~ ~ $1,863,615. 100.0%" n' M. ?d +, (Theldatia' appr'oiimate' thelDecember 1980 estimate of tihe-Company plus the -assumedi

' ~

e, issuance.and. sale ' of j $100,000,000 'of mortgage bonds.to replace the $120,000,000 to Og .;g'* . $125 000,000.'ofishortDdebt' estimated"tobe, outstanding at_that date.= k' hS ? T s f g n .y 'p J-b - 3 t , W-a ~ $ 1g g y a s x 09: , 3 49, i I, y g s p,- s - >.' ') 4. -N1 9[ n-lW _ fl + e.- - ' Mk 3- \\. i jl' ' h2[ h s s i - ~ - y _ , Yl. [ M.'N Y/ m .4 ' M. k * ~ - t h? FNi ~ 1: - "+ s ., sl ~ t[@ M; s 4 2 J}'ep. ' 3, J' y . [ _ 3 [..l + : k ~* )Q* 3'., w$. 2 x mm 1 '^E( f M + y-=G-hy, v g;

t<, ~9. ~ m - _ s qg -f r_ a "3: ~ Sch'1e5 ~ 0 'i ~ g%- il Moners ANo stANoARo & Fo0R s RATINGS ' Page<1 of 31 i o . nest. Fear:Rees ANo com eN stocRs, W* ,c . dJ IN ESTOR 01480 ILECTRIC UTILITY coffAN!ES S

June 15. 1980.

~ }' , M: L 4 D837-PREFERREDS _C0fttDN Moody's 5&P Moody'r $6F 5&P . COf98ACIAL. Meg. Mtg., FAFER - Ceepaar -M'lh-MM

E' Fref.

=Ffd. Prof. ' Reak tg Moody's Artmens Publie Service A A. a A*. A. F-2 ' Atlantic City Electria. As - .A-A+ BBS* ' A. A, F-1 ' Bettimore Cao 6 Electric Aa.. 'A.. A4- - A. as e AA-A A-F-1 Se Eaager Nydro-Electric .N.B. N.R. Goeten Edison - Sea - SSB 988 SB B+ ' ~ ~ A a - baa A- - BBS A-F Caro 1iaa Fever & tight. A . Bea*. . A-BBS* a A- - A-P-2 ' ^ Central Nudson Cae A Elec. .A ~ Central 1111aste Light. ,A, A* f a A M F.1 Central 111. Pub. Serv. Aa ' AA. aa - AA A. F-1 Centrol Imuistaae Energy A A A A' , Contr'el Main's Power ~ Seaf BRM SSBf SSB A-F2 A" Cincismati Ces & Elec.' Sea iM.R. N.R. baa. SSB A-F-1 Central Vermeet Pub.' Serv. Aa AA-a A- - A-F-1 A . F-1 Cittaene Ut111ttes. ' Aa -AA+ . Cleveland tiec. k m. 'Aa AA-a A. A. -P-1 Columbus & Se.~ Ohie Elec. A' Baa BBS* BS+ ben-888 M L Ceemoissoalth Ediese - .A- . Sea A A-a4 baa AA-* A-A-~ F-1 M h atty Fvblic Service A A A-BBB* A* Consolidated Edison - W.Y. A A -- be BBB-SB B+ F-2 Censumere Power A Saa - BBS 555-baa - = CF Nattomal ' N.R. Se N.R. 'BB-ba BB B+ Dayton Power & Light A ,A a BBS M F-2 Delmarva Fever & Light A A a A-A. F-1 Detroit Edleon Saa - . stb bas ha BBS 38 - B+ F-2 Duke Power A Baa A> 388+ a baa* A SBS* A-F-1 t aa A+ 3RM M .F-1 y N .. El Paso Electric-.. A Baa. AA-A- ' a Duquesne Light A-AA-a A A. F-1 A baa A M F-2 EmFire Distrier Electric A ~ 388 'N.R. N.R. N.R. A. Fitchburg Gas & Electric .Saa N.R. Florida Power CorF. A-Beat A+ BBB+e ' a A 3+ F-1 . Florida Powe & Light A Saa A+ SBS+ a A+ A F-1 r . Green.ountain Power ^. N.R. N.R. N.R. -N.R. N.R. N.R. 3+ M 'Culf States Utilities A See A SSB .baa - A-A- F-2 Newe11am tiectric A Sea

A-'

5884 a A A F-1 A F-1 Houston ladustries >Idahe Power A Sea A 588 a A A-F-2 - 111tnote Fever Aa AA sa AA A-F-1 Indianopelle Power & Light ' As AA sa AA A- 'F-1 latexatate Power-A- A a baa A SBS A-F-2. towa Elec. Light & Fever A-A A-BBS S+ F-2 towa 1111eeta ces & Elec. Aa A AA A sa' a A+ A A-F-1 Iowa Public Service - Aa AA a-A> - A-F-1 10we Resources - - . Aa A A 558 a A A F-1 ,-I love Seethern Utilities - Aa AA N.R. A. F-1 J Eaneae City Fo or & Light. ' As ' A a A-A- F-1 Eameae Gas & tiectric - Saa-388 baa 555-5+ F-3 'Kaneae Feuer & Light Aa AA ' aa AA-A F-1 c Lake Superter District Fwr, A N.R.. a A M F-1

Eestucky Utilities '

., Aa . AA BBB M Long letand Lighttag .A Baaf A- 'A-# baa SSS A-F-3 touteville Gas & Electric Aaa AA as AA-A- F-1 .Medtoon Ces & Electric A4 AA .N.R. A-F-1 A-Meine Public Service N.R. N.R. .N.R. ~W.R. N.R. ~ ' Nianeesta Fower & L18ht- 'A .A' A- ~'A-F-1 Missourt Public Service iN.R. ~ N.R. l N.R. .N.R. baa to BBS. 38 A-F l 4 4 Montaan Power- 'A See A $48 a 388+ A-F-2 ' Nevade Power : Saa - BOS , baa SS A-F-2 D+ l Newport Electric. !N.R. 'N.R. New York State Elec. & Cao : =A. . A- - a BBS A-1 F-1 -{ 1# Nissare Mohawk Power-A. A4 o baa SSB A-F ( ^ l 3l -

l t.

u* %); j PREPARED LBY REIS.. &. CHANDLER, INC.. q 1( p. t ,y s f lw-- ,-j.'s;l fe' u s A ( V^ ~

2 nocoT'S ANo sTANoARn & FooR'S RAftNc5 ~ Sch:dule 5 S g' W',J D}g o ossf. FRn:RBTo ce CoseeN StoCES Page 2'of'3-S, J h, INVESTOR OWNEo ELECfRIC UTILITY COMPANIES - ) June 15.1980 - wl DEST PRETE9 REDS ' CopBEMI ' Moody's $4F Moody's S&L 5&P ColetERCIAL Mts. Mts s FAPER Consaaf 'Bonde Debe Bonde Debe Vfd. . Prof. Pf d. - Prof. Rankina '4pody's Northe're Indiana Pub. Serv. A4 - A* AA-A* .a a. AA-A- 3+- F Northern States Feuer ' As AA se . AA A F-1 Nott.huesters Pub. Serv. Bas i SSE N.R. N.R. M F2 Chie Ediese A 885+ boa ba* BBB-53* p Oklabama Cas & Electrie. As AA-ea AA-A- F Orange & Dockleed Utilities A A-stb N.R.e p-F-1 - Otter Tail Feuer A A BSS A. F-1 Pacific Cao & Electric Aa AA. - a A A F-1 Facific Power & Light saa 398+ baa BBS A-F-2 Pennsylvania Fwr. & Light Aa A+ e bae A. 388 A-F-1 Philadelphie Electrie A Sea ' 395+ S33-baa 888 - 5+ F-2 Portlead Cesaral Electric Saa .388-ba 88 3+ Fotomac Electric Power A Baa A+ Eth - a A A-P-1 A a A S+ F-2 Pub. Serv. of Celetede ' Aa ' AA sa AA A F-1 Pub. Serv. of Indsmaa Pub. Serv. of New Naepshire 54a - la BBS - 58+F ba 88 A-Pub. Serv. of New Nemico As AA a A A-F-1 Pub. Serv. Electric & Cas Aa ' A AA A a A+ A+ A- . F-1 Fi. set Sound Fwr. & Light ' Baa Ba BBS 38 bas 888 A-F-3 Rochester Ces & Electric A A a A A-F-1 St. Joseph Power & Light A N.B. A N.R. N.R. N.R. B+ San Diese Cao & Electric Baa la 588 BB N.B. 888 8+ F-3 Savannah Electrie & Power - Bas Ba BBB-38 N.R. N.R. BB B B+ Sierra racifte Power A Bas A SSB baa 388+ A-F-2 So. Caro 11aa Elae. & Gas A A a A A. F-2 Southern Ca11foreta Edison- - As Ae AA A* se a* AA A* A F-1 Southern Indiana Cao & Elec. Aa AA AA A-Southwestern Eles. Serv. N.R. N.R. N.R. A-Southwestern Pub. Serv. Aa AA as AA A. F-1 n(g) Tampa Electric Aa AA AA A-F-1 ' Toledo Edison - Saa A. bas BBS A-F-2 - Tucson Electric Power A A+ a A A F-1 Union Electric A A a B&B 5+ F-2 United Illuminating Saa 85^ be b BB-3 3+ F-1 UFper Peninsula Fower N.R. N.R. N.R. N.R. N.R. N.R. B+ Utah Power & Light A AA-a .AA-A- F-1 - Virginia Electric & Power A laa* A 385* bas BSD A-F-2 Washington Water Power A Saa A-EBB-baa 36B+ A. Wisconsta Electric Power Aa A AA A sa AA A F-1 Wisconsta Fawer & Lisht Aa AA aa AA A-F-1 Wiscoseta Pub. Serv. Aa AA as AA A F-1 e HOLDIMC CONFANTES A-F-1 A11e5 eny Power h American ilectric Power N.R. N.R. A-F-2 p A F-1 Central & Southwest. Eastern Utilitter Asaac. Sa N.R. 8 . General Public Utilities 3 A Niddle South Utilities New England Electric N.R. A-New England Ces & Electric bas SBS A-5+ Northeast Utilities 3+ Southern company-- A F-1 Texas Utilitiae NOTES: N.R. - Not Rated

Convertible a - Cea. Ref. Sonde

.: Deflattions : - Commercial Paper - F Best Quality F High Quality F Has favorable investment attributes for short tera investment. . f"\\. ' (.,/E ' PREPARED BY REIS &= CHANDLER, INC..

8 -

s y s s i ' _. i 1._

p.., ,v

e-c, g.

N s D D 9- ~ m m1 m Sch:dule 5- .. AN.., .,ooR's mar 1Nos - :: 5 W[ raartsC sussistAntss or utltitt Noon 1NC COMPANIES. (ELECTRIC). DEST AND PREFERRED $10CES Page 3 > of.3 - k: DD . June 15. 1980 ' ). ~ t(/.. ' ' Moody'e-t&P Moodv's ' $6P COISERCIAL Mag. Mag., . PAPER ggggg M-- .g g ;g , Pfd. Prof. " Ffd. . Prof. - Moody's Saa ,389 /, be1 38 - ' Alabson Power. ' tes. Sa - 388 - ts-. - baa l stb-F-3 ' APpelschian Power- -- Arbanese Masseuri Power 'N.R.

N.R.

N.R. '5.R. Athanese Feuer 6 Light = San 888 boa 88 Blackstene es11ey Ces & E1. ~ Baa' " SSS. N.B. SBS J ..As ; A' 'Cambrides Electrit Light l i Canal Electrie ; As. 'A< Central Feuer & Lightr. . As - - AA - as' AA 'Ceanecticut Light & Power 3 4 ' A- . e BBS F-2 Conn. Yankee Atp.ste Pwr. A'. A< F-1. t Belles Power 6 Light - - Aes JAa. AAA-

A4 as AA Eastete pdiese Bee

. N.R. ' BSB < Caergia Power. See' BSO baa SBS Culf Power A 'A+ a A-P-2 ' Mattferd Electric Light- 'A A- - a BS5 P-2 J s N.R. . Nelyoke Water - N.B. AA ' A* aa AA F-1 Houstoe Lighttag Power.. As _ A* Indiana & Michigan Fower. - Saa BBS : ~ baa SSB P-3 Indissa & Michtsas Electric saa Ba. BBB 88 / ' Jersey Central P. & L. Se -t' 888-Se ; b B3 Eestucky Power, A-A- lautetana Power & Light Baa . 858-ba SB P-3 Meine Yankee Atomic A A SSR Moseachusette Electric A' A a A F-1

Metrope11taa Edison B

B 58 ~ 34-b BB-Michigan Power. N.R. N.R. N.R. N.R. .Miseaselppi Power s A.; .A' a -N.R. Miesteelypt Power 6 Light .A '588+ a 888 - ~ P : 9t )% ' . Miseeert Idtson A M.R. Missourt Power & Light.' A. A A ' Missourt littlities N. R.' N.B. -Mononsahela Power.. Baa - A- ' - ban A-P-2 .Narragansett Electric A A A New Bedford Ces 4, E1. Lt. Aa A, New tastead Power. Aa Af A+ - Af e A F-1 New Jersey Pouer & Light Ba. 8 383-88 stb New Orteene Pub. Serv. =. A 588+ be ~ Northera States Pwr. (Wis.)'. As AA Ohio Electric ~ .Saa BB9+ chio Power-Baa la 585+ - BB+ . bas-385+ F-2 - Feeney1venta Electric. Se - B , 568-BS b BS - Feansylvents Power. Saa A boa A. Fotomac Edtoon. ' Saa. - A-bas A. P-2 Pub. Serv. of.Oklabees- - Aa AA sa - AA ~. Rockland Electric ; 1A A= Rockland Light & Poweri.. A - A-5esthers Electric Generating Sea 388 : . Southwestern Electric Power As AA-. . aa - AA - Superter Unter Lt. & Fwr. N.R. N.R. Texas Electric Servic'a i ' Aaa ' Aa .. A# k AA sa AA Tasae Power & Light. Asa Aa AAA. AA aa-AA UeLos Light West & Fewer _ Aa - AA 2 West Feen Power- ' . As > AA a AA P-1 -. West Teano UtilitteeL Aa AA. AA .' Western Moseachusette Elec. - Saa : 333 s ses.. P-2 e ' Wiscoseta Michtgen Power A. ~ AA ' F-1

Yaakee Ateetc Electric NOTESa-;*' Convertitle..

? ': g

.8. Gee.,& Refunding m

7-'t 3 L.- ( L -.. PREPARED;BY;REIS T CHANDLER, INC.. _4q ' ~ xet

1

.yu + e y ,w ~ ~ 3 + am a; c .N,'- y ~ W3 - :y3 ' L? fq 33 p

hYF - ~ N Y YIELDS ON OUTSTANDING PUBLIC UTILITY BONDS MOODY'S ANNUAL AVERAGES 1920 - 1979 Year Ana Aa '. A Baa Year Aaa Aa A Baa. 1920-6.53% 6.65% 7.57% 7.99% 1950-2.62% 2.60%' 2.79%. 3.18%- -1921: 6.34 6.55 7.38 8.40 1951 2.88 2.95 -3.11 3.39 1922" 5.23 5.48 6.00-7.03 1952- .2.99 3.05 3.24 3.53 1923 5.14~ 5.51 5.97 6.75 1953 3.24 3.32 3.49-3.73 1924. 4.96 5.30 5.80 6.38 1954 2.93 3.00 3.16 3.51 1925 4.82 5.03 5.42 5.91 1955 3.09-3.13 3.22

3. 43 '-

1926 4.70 4.88 5.17 5.67 1956 ~ 3.39 3.43 3.56 3.78 '1927 4.59 4.76 5.02 5.46 1957 3.96 4.03 4.24 4.46 1928 4.51 4.68 4.95 5.33 1958 3.87 3.92 4.20 4.43 1929 4.67 4.91 5.22 5.76 1959 4.49 4.56-4.78 '4.96 1930 4.50 4.75 5.06 5.88 1960 4.47 -4.53 4.78 4.97 1931 4.36 '4.68 5.12 6.90 1961 4.37 4.46 4.62 4.83 1932 4.61 5.32 6.46 8.78 1962 4.35 4.41 4.54 4.75' 1933 4.29 5.02 6.32-9.38 1963 4.27 4.32 4.39 4.67 1934 3.92 4.66 5.55 7.49 1964 4.42 4.44 4.52 4.74 1935-3.52 4.02 4.61 5.56 1965 4.50 4.52 4.58 4.78-1936 3.21 3.57 4.08 4.67 1966 5.19 5.25 5.39 5.60 1937 3.21 3.45 3.98 5.09 1967 5.58 5.66 5.87 '6.15 1938 3.03 3.28 3.90 5.26 1968 6.22 6.35 6.511 6.87 1939 2.88 3.03 3.52 4.50 1969 7.1.2 7.34 7.54 7.93 1940 2.77 2.92 3.24 4.05 1970 8.31 8.52 8.69 9.18 1941 2.69 2.83 3.07 3.84 1971 7.72 8.00 8.16 8.63 1942 2.73 2.87 3.09 3.73 1972 7.46 7.60 7.72-8.17 1943 2.65 2.73 2.99 3.58 1973 7.60 7.72 7.84 8.17-um 1944 2.65 2.72 2.97 3.52 1974 8.71 9.04 9.50 -9.84 E-1945 2.62 2.67 2.87 3.39 1975 9.03 9.44 10.09 10.96' E. 1946 2.51 2.58 2.71 3.03 1976 8.63-8.92 9.29 9.82-6 1947 2.59 2.67 2.78 3.08 1977 8.19 8.43 8.61 9.06 1948 2.81 2.92 3.02 3.36 1978 8.87 9.10 9.29 9.62-1949 2.67 2.76 2.90 3.28 1979 9.86 10.22 10.49 10.96-Source: Moody's 1979 Public Utility Manual, i' A

ggci v 2 gg, r gy~ s ; 1 7 -- ~. ~., 'r4, = 1 f. i ,5 A;, ?.Mf " W ~ Ty j?%e g s ,4 1 J&r ~ i M %, ~

l. ; :66? ' '?

Yb;, L l' l r r 1 y ?? 4 s s

f l W.

Y -.f., ~ w. u + c pr m v., +,f W j A ( ,,' ? &, q.: k e - n% 3 e v 3 o x u r ' o' ; 'Y 3 4,g r y,7 y,. ,-'~ y r :;q ' L n" r y v Q p_. %._ 4 =n- .a A ?D < l v.,jl ~ & g J. ? ~ 'f 'g y-u jRyy. I df, T{ s l_ f; a70 .. l s L rm a ,M w.#

YIEIDS ON OUFSTA8iDIIBG PUBLIC UFILITY BONDJ,

~ s-4 T .8mODY'S MOIITHLY AVFRAG8S - 'C' gP' ' gg Gj ^ January'1969 - June 1980

y[

Me x 7 4 ~ ~ ~,' ; + o ~ s n w ? 'I Q' i e. A3 1331;

Aae Aa -

A gg Aaa - Aa 1A ggg

Agg gg;,,

i 7 ' ' ;. Aag.7 > A,,3 3 &, s, 3 ggg s j F 4" 1, 19J6} . M- _M-

M;

.~ 1 s 'r y ,..7 ' /.... '.,,.:. .. ; 7.48% ' - 7.76% 7.79%-~ z 8.3 2 -8.79-9.23 9.99S 11.324 - 8. 57.. ' 8.79: "8.97 : 9.29 :. - ^ N 1 s m n-8.37%_ 8.995i'9.45% - 10.37% i ~11.57% - 8.52% ?8.76% ? 8.925 9.27% " ;~ Jan. - 6.70% J. 6.90n } ' 7.04% ' i 7.42% ,, s "H' ^Feb.

6.78 ~ L 6.89 - f7.13

. 7.39.

7. 53 --

7.71 7.78 4,. i",',

7.27.'. l 7.61 -

7.54. 7.69 7.77o 8.26, '8.82 9.17 9.72: 110.94 ^8.57 7 18.79 j "- 8.98 ' 7 9.37 L..' 4,Apr. Mar.

6.97 h 7.08 '

sgr J6.96 : R7.11 7.30 -7.68:

7.59 - c 7.7 5 7.82-8.30 9.11

9.48 '10.06 ' 10.86l - 8.69 <

8.86 i s 9.09-3 y 9.54 A r e.

play f _ 6.88 ' 6.99 1 '7.16 7.56 7.61 7.76-17.84 r 8.30L 9.05 L9.50 710.23' 10.95.

8.83 ~

9.02: W9.22:, 9.70 e M o " :Jun. 7.08" '7.25. -7.41- ?7.77 7.53 7.71-7.77L 8.31 8.93.

9.34 -

10.10-10.85. 8.92 ' 9.19 '_ 9.40,<9.78<, ', i lJul.

7.11.
7.38 i 7.527 7.92-7.43-

-7.58 7.82-8.36 ' 9.04 ' 9.38-

10.01-10.80 <

V9.02 9.26 ; J9.511 39.73-2 "y' s o Aug., ,6.99; i7.34. 7.44' , 7.8 2 ' 7.41L 7.49 7.64

8. 22., ' 9.20 i i9.52 :

10.12 10.87 -

8.86 I ' "9.11' 4 9.32A 19.53e A. t~

c ,Sep. 17.24'

7.50 -

7.63' 8.11s . 7. 41' - ' 7. 48 - 7.61 8.01 z 9.21

9.64, 10.19 L 10.89 i J8.84 9.09 (_.

-; 9.28 ( p s -Oct. '7.44 7.71 8.02' .8.47 '7.40, 7.50 7.66' 7.94 9.14 9.55" -10.16, '10.89 :: ?9.04 9.28 s

9.46-'

?9.47 a .;'g^ ' 9.69, ri i nsov. 7.48 : '.*5 . 8.00 : 8.53 7.30 '7.42 7.60 7.86 9.03 9.45 10.04 '10.78. '9.19f '9.46' 4 9.68 ;. 9.99 ; [ , q-; 2Dec. 7.86i fS.23, '8.59 8.89,

7.26 7.38 7.48' 7.78 9.07 9.51' l10.11' s 10.79 '

- 9.34 ; - 9.56 ? ? 9.70l n 10.08 ; g T. 2

i,y, I a..

~s / -1970 ,M' 1976 EL 1 J ~ i1Jan. 3.075 8.40' 48.69 9.00-7.33 7.42- ,7.52 .7.77-8.86-9.39' '9.90: 110.55 9.48., ; 9NO.. ' 9.'90 ' 10.29' ' < Feb. 'a8.12 8.30s 8.51 8.96 7.41 7.52: . 7.62 ~ 7.88 ~ 8.80. 9.16~ =9.71' 10.31. ,9.51 J9.74' c 9.84'.r10.27H .?'

Mar.

~ 8.07-i8.17 8.31 .8.81 7.45' .7.50 7.66 7.95. 8.74 9.12 -9.67 ' 10.17 - ! 9.61. ~9.89' '10.04'.10.53

Apr.

"8.08 -8.16 8.31 8.94' 7.44' 7.51l 7.63 7.% 8.59 9.00 9.b3 9.95 - 9.61 9.92 ?10.10 10.56'. s' r r I 8.45 - j8.54 8.67 9.20 1.44 ' 7.51L 7.63 '7.91 8.7 3.. 9.06, 9.55 9.91_ . 9.71 ', Il0.101 110.30; (10.70 L ' f/ .' May c sn Jun. -8.79- '. 8.90. 9.04' 9.52 7'51 7.59; 7.717 7.94 8.84 9.07 9.54 10.01-9.49 9.95 '10.14; c10.56 , y rJul.

8.68 '

J8.81-9.06 9.48 7.62. 7.70 7.82 8.10 P.78 9.021 9.37 9.88 ' 9.42. . 9.72.. 9.98 f : 10.48 : Q t ' Aug. ' 8.42 - l8.67 8.88 '

9. 34.'

7.81-7.92'. 8.04. 8.47 8.64 8.83-9.13 .9.67 9.46: 9.7 5 > - 10.14 -

10. 50..

~ .Sep. .8. 39, 8.66. '8.82 : -9.32 7.78 7.94 8.04 .8.61 8.57 8.69 8.90-9.47. . 10.38.: 10.85 l 11.40 -l 11.89 9.69-9.94 ".10.36' 10.78 Oct. 8.30. 8.62~ l'8.76 '9.27-7 77-7.94. 8.02 8.44 8.50 8.60 8.79 9.41- ' Mov. 8.34J 8.63' 8.79 9.29 ' 7.83 ' 8.01 8.15 8.44 8.39 8.61 8.76 9.34L - 10.99 .11.57. 11.89 - - 12.48 c . Dec.' ' 7.97 - i8.33-0.48 9.04 .7.06 8.07 8.24. '8.51 8.15 8.45 8.62 9.21'- 10.96 - !11.47 c. 11.79 _ 12.51 r 3 1 t s $v<

y.

'. Jan. 7.70 8.08 '8.15 8.76 8.00 8.15 8.36' 8.58 8.14 8.41 's.61 9.171 . 11d3 '11.95"f12.27: 12.92- >; t : 'Feb. 7.49' ~7.85 7.89 ~8.55 8.01 8.20 8.42 - 8.68 8.21 8.46 8.65 - 9.19 - 12.75 ' 13.19: 13.55 ~ 14.42 ; s i Mar. 7.62 8.00 8.05 -8.63 8.14. 8.35 8.46 8.81 8.27 8.49' -8.70 9.20 ' 13.33 114.09, 14.65 I 15.26 .f 'Apr. 7.59 .7.96 8.07: ~ 8.58 8.26 8.56 - 8.77 9.04 8.21 8.51: 8.71 9.17 12.27 13.49,213.87 ,14.35 c3 s May 7.86 8.05 .8.34 8.68 '8.47 8.71 8.99 9.23-8.22 8.49. C.71-9.13-11.23-

11.99

-12.53 12.93> . ~h c

Jund 8.01' 8.28-8.45 8.79

' 8. 58. 8.93 9.32 . 9.48 - 8.12.. '8.37 8.58 9.02 10.08 11.73. 12.21 - 12.63 u ' ~ Jul. 17.96 8.16 '8.45 8.78. 8.83 9.17 9.66: 9.72' 8.10; 8.32-8.51 8.97 ' W-Aug. 7.89' . 8.12 8.40-8.80' - 9. 09 - 9.53 10.03 10.14' 8.13 8.36 .8.49 8.91 ,A-Sep. .7.74 7.98 8.18. 8.59-9.36 10.05. 10.45 10.59 8.07 8.32 8.46 8.85 Oct. 7.69 7.87 8.10 'Nov. 7.55 '7.84 7.96-' 8.48 9.50' 9.93 10.78-11.03 8.18. 8.44 8.61 9.01 e e Dec. 7.54

7.82 7.90

~ 8.47 9.10 9.54-10.46 .11.38 8.23 8.48 8.64-9.06 ? ( 8.44 9.02 9.37 10.27 11.40 8.34 8.55. 8.64 9.08 ].; ; 'y' .a source: Moody's 1979 Public Utility Manual and Moody's Bond Record. > + t

f. ' g I s

i + p Y rf I 'W t f. E. u._;_,., .x e uds ,wo ,m, ;i [,

a. i m

~ ' - C J c

yy... 7 - ow w/ rnw, 3: s ? ?.x; i % s % -- % 74 - .- - g 4 '~e p ;h -g W QQDT% 'M t e ^ Y ~ .-. pY. 'a c/ ~ !p 4, b,' -'f )GC u 1 (n i by.- u p,f .l. ,, q L*,, w L y? 1 ' yQ:.y? 1 3..g., s y < v , 4 + y hk ~j ;;'- ^ 'O. ~1 ,x n w Aw'. q. a i ?).[: x v ~ i f z' L e ^ ni kW $' "'g ^

er
AVERA S COSTS BY QUhkTERS OF MEW ELECTRIC A8m GAS UTILITT 1

(.jp ; [" thMG TERM DEBT ISSUES SOID PURLICLY AND RATED.*Saa" 8Y MDODY'S S. c "y ..o s y }- 9 W - ~ 1 January 1948( June 1980 - " ~ " ' { s ? O'C 1 %g.1Jwg' ' Average' Average.. 1 Average-. . Average -fAveragej [ Average. TAverage s t ? pAverage~,, s g - [. '. c t ' 7., -1948i. . -1957 __ Yield ' ' Issuing;

Offering -
Isoning_

+cSy., . viegg,.. - Cost * ' ' Offering j Issuing 7 / Offering 1 Yield ' ' Cnet*' N yoffering;

Issuing 1 M ;s

' Yield Cos t * - Cost' x s 'd = 1966i " 137 1 , e.7 W. v > ilat' Quarter l,'?.- 13.50%:, j 3.60%. '5.205: -?5.34% 5.63% , ' 5.7 2% 1 i%.-

dW 4

W 7,- a, s, L2nd Quarter? 3.07~ 3.13-6.00: - 6.18.- - 5.85 6.00" a10.793' > 10.98 i / N%;l. P s e 5.72l 15.89 6.17 ;. . 6.3 3 '. 11.57 711.77-- a l.74 ,..... f 41212,0 ' 1958 ~- .. 1967- '6.66i j 11.51.' ,.. ~ - J11.69'

3

+3rd Quarter i 2-3 15.72-5.94 6.50 ~ ' j329. 3, f.g N,. 74th Quarter - ' t 3.60 D.. ~ ' " f ? ? r. ?% 1. J~;, <...9.67 - ' '.3;23 4.35 2 4.45 J 5.80..- 15.93.- 7 9.77 s ~ ' : 9.80. {g.

j*. :rg t

j l-A ' h O-% .A ist Quarter ; -3.17. 6.64' ' 9.91 -- . - 3 's e2nd Quarteri J 3. 33 '3.50- . 4.33; 4.46- . 6.50-6.73. 9.96 - 10.13; s r - i 4.70~ 4.85- . 6.60: ",4 , 3rd Quarter! v,. -:7' g >? - ie," s . - 9. 08 ' ,8.93 M. a 4th Quarter;

'2.90;

.2.95 '5.12 5 5.23. ' 1968 _ IgII,< ' y 1950. , 5.13- ' 1959. 8.85 L " 8.97 cm. 4.M/, ,e. 5'. 27 - 2.77' 1 P"cist Quarter 3 , 2.71 ; 3 t , 7. 37. - . 8.87. < 4.99 - 7.25. o - . 7.12 ' 8.60 t 8.75;

y

~ 4, y M 3rd Quarter; , 2.92^ t 2.99 : '5.10 . 5.23' t2nd Quarter'. J 6.% T R fath Quarter 3:. , t 2.90 -

2. 98 ' '

5.05 5.21' 7.10 ' : 7.26 h ,.. ( fl2Zgf 9.41 ; ' f* 8.95

9.09 -

2.93 3.04- + 1%9- _J .i.'..." >1951 '1%0? 7.45-7.58 ~ 9.28 ; ' i , H,

"?,.1st Quarter 1

_4.18 5.37. '5.50 ' 7.85 7 .5.65' ' 5.8 2 : p., 8.02- '9.73 ' 9.86 - 2nd Querter? 3.95 - 5.08 : .5.18 f8.40 . 8.58 i 9.89 '10.00 'e - f m r e3ra Quarterv M c -- J... 3 ', p 4 M4th Quarter, 3.66;. -3.76 5.031 5.15: 8.88 '9.04 ,9.74 E ; 9.84 r. .f .'1952 [1961' . 132,0 1 1321 ? ,, ~, /1st Quartera 13.601, . 3.68 /4.80 4.92; .. 9.44, . ' 9.66. c10.37 ~10.47 q, v o2nd Quarter

3.51&

3.65' 4.92 '5.03 '10.02s 10.23+ "10.66 '.10.77 N 11.101 .. ". 13. 26 7 +,

4th-Quarter-

-f '

3.7 2 '

5.20 5.32 9.85 ~ 10.05 J10.98 ' '.3rd Quarter. '3.651 m-9.93-10.09 13.07; s ~1953 1%2 ' -12Z1 l130 CW ',1st Quarter - -. 3.7 3 ' 3.81 4.70' 8.72 ' 8.91 ' 12.89/ S 13.07 ; I 8.30- ~ 8.45-15.69u 15.89.: i F 4.61 ~' ff 4 h p 2nd Quarter - b: ' " ^ f3rd Quarter / S-J. 4.65 4.77f 8.64 - ' 8.82 3.91 4.00 4.48 4.57 7.%. 8.~12 i v; l '. 4th Quarterr 1954-4.45 4.54 7.90. 1972" i D., ' 196,,,1 l .c, -, 1st Quarter i

3.34-
3.45 '

8.11 i 7.95 8.16 .-l, 12nd Quarter-4.64 7.90 '8.08. V

3rd Quarter-: 3.34 3.41 4.56 14th Quarter -

c 3.33 -. '3.42 4.54 4.64 -7.82 _-7.92 (* 1955 1%4 1973. ~ .;' 'Ist Quarter 7 -1 4.72 4.82 7.95, 8.06-i' 2nd Quarter. 4.70-4.80

8. 09 --

8.27; 4.61-4.70' . 8.38 - 8.51 ,3rd Quarter.

4th Quarter?

3.73 ... -3.87 4.55 4.66 8.65. 8.83 1956 .1965 1974 n sg N' ' let Quarter 4.32 9.82 ~ 9.10: ~ \\ k f.. 8.94 /- y2nd Quarter 4.15 9.99 J3rd Quarter 4.94

5. 04 ~

i.f i4th Quarter 5.10; 5.25 4.95 5.05. .:n Notees. Excludes convertible' issues. Includes all issues with an original maturity of ten years or more. Excludes issues of pipeline companies.' r ' Reflects underwriting and othea* expenses paid by. issuer from proceeds received at the public offering price. 1 n -'8. Jersey Central Power & Light Mortgage bonds are rated "Ba" by Moody's. I m ~sourceferoepectuses. p- ~ a a q 'Q N! t l a Q + - s + S ,'[ I 4si i \\ -,m i,v. 1 3 , _ = -. r g_, t + %..% -.w,.-.e,

PP 'l [I S OF ELECTRIC AND CAS UTILITY i DEBT ISSUES SOLD PUBLICLY AND RATED "Baa" BY MOODY'S# August 1, 1979 - August 1, 1980 4 Pr'.ncipal Net Cost Date of Description of Issue Amount to Sale Company Coupon Series Maturity _ (000) Company

1979 Sep. 12 Detroit Edison 10 7/8%

Gen & Ref Mtg 2009 $100,000 11.09% 18 Potomac Edison 11 1st Mtg 2009 30,000 11.10 25 Toledo Edison 11 1st Mtg 2009 75,000 11.11 Nov. 8 Louisiana Power & Light 13 1/2 1st Mtg 2009 55,000 13.73 29 Puget Sound Power & Light 12 5/8 1st Meg 1999 50,000 12.79 Dec. 13 Commonwealth Edison 12 1/2 Debs 1986 250,000 12.86 1980 Jan. 8 Detroit Edison 12 3/4 Cen & Ref Mtg 1987 50,000 12.99 30 Indiana & Michigan Electric 13 7/8 1st Meg 1987 55,000 14.14 Feb. 20 Appalachian Power 14 L/4 1st Mtg 1987 40,007 15.10 Mar. 7 San Diego Gas & Electric 16 1st Mtg 2010 50,000 16.22 19 Commonwealth Edison 14 7/8 Debs 1987 125,000 15.10 19 Commonwealth Edison 15 3/8 S F Debs 2000 125,000 15.55 26 Kaasas Gas & Electric 16 1/4 1st Mtg 1987 30,000 16.59 Apr. 23 Philadelphia Electric 14 3/4 Debs 2005 100,000 14.87 23 Philadelphia Electric 14 1/8 Debs 1990 50,000 14.28 Jun. 12 Alabama Power 12 5/8 1st Mtg 2010 100,000 12.80 18 Indiana & Michigan Electric 11 3/8 1st Mtg 1990 80,000 11.53 l? II Jul. 10 United Illuminating 13 1/4 Debs 1990 40,000 13.50 30 San Diego Gas & Electric 13 5/8 1st Meg 2010 75,000 13.78 y e Aug. 1 Portland General Electric 13 7/8 1st Mtg 2010 75,000 14.03 Notes:

Jersey Central Power & Light bonds are rated "Ba", one step lower than "Baa".

Cost of money to company is dccermined by deducting underwriting expense and other expenses payable by company from proceede received at the public offering price.

Source: Prospectuses. Q

C s;, - ~ C 3kY ' O 3-3[>- 3 .j s q .., f .AF s' ' ~ c, f.j y.- a (-

c,

n-y t ~,, -n 7c: i.n'

f

-g g \\ F s ' Schedule 10-( r -..b. y '~ Page 1 of:7f- .[ =1 f -Q ] h5 } j 1 ? JERSEY' CENTRAL POWER & LIGHT. COMPANY, 4 COST'0F LONG! TERM DEBT UUTSTANDING' 5 l

December 31, 1970. December 31, 1979'.

t ~ And. July 31, 1980

I

,.m

[
'i l.

. Weighted Amount ' Annual-Average { Year. -(000) Cost __ Cost r 12/31/70 - $381,515 $20,017,264' 5,25% [ 12/31/71.. '463',215 27,009,139 5.83 L 12/31/72

485,420-28,841,066 5.94

-i h - 12/31/73- '. A L -590,660-38,001,869 6.43 - 12/31/74 633,364. 40,650,512 6.74 t. ~ 12'/31/75' 689,035 49,194,577 7.14 f .. 4 1*/31/76 -742,189 '57,071,621 7.68. [ d6 12/31/77L 798;001! 62,126,241 7.79 U .I. s \\ :*f 12/31/78 830,998. 66,139,264 7.96 if

12'31/79 897,625{

74,336,798 8.28 j / t 73,781,486 8.29 17/31/80. 889,865' kl t :- 3:': .k' +li I" i i ..4 I j' 1 t 'I I ( _M y + d. u s _ '_ f%. '. ' ' [' 24 MA ,~ g n ) + m 4 : - I [w,, d

N y :<

/ ~ e - I ~ 4 I .l.- L-' f

- f

~ [,, V s" i, ',i ^ ', s }iy:::;.'mY, ' _ .+ :

g

j;V("%?' ^ . \\.M x Yi - t l J t JERSEY CENTRAL POWER h 1.1GHT COMPANY COST OF LONG TERM DEBT OUTSTANDINC Deceedser 31, 1970 - December 31, 1979 And July 31, 1980 Cost December 31, 1970 Decemb9r 31, 1971 December 31, 1972 December 31. 1973 of Amount Annual Amount Annual Amount Annual Arount Annual issue Money jo00) Cost (000) Cost (000) Cost _ 1000) Cost 1 Jersey Central Power & Light Co. . 2 7/8% Series Due 1976 2.79% $34,500 962,550 $34,500 $ 962,550 $34,500 962,550 $34,500 962,550 Firi.t Mortgage Bonds: 3 1/et Series Due 1978 3.10 3,500 100,500-3,500 108,500 3,500 108,500 3,500 108,500 3 1/4% Series Due 1984 3.21 6,000 192,600 5,990 192,279 5,990 192,279 5,940 190,674 3 1/?% Series Due 1985 3.40 18,560 631,040 18,410 625,940 18,360 624,240 18,205 618,970 4 1/&% Series Due 1986 4.07 10,000 407.000 9,620 391,534 9,620 391,534 9,615 391.331 5- % Series Due 1987 4.99 15,000 748,500 15,000 748,500 15,000 748,500 14,947 ' 745,855 5 1/4% Series Due 1989 5.19 5,770 299,463 5,770 299,463' 5,610 291,859 5.610 291,159 4 3/8% Series Due 1992 4.37 11,000 400,700 11,000 480,700 11,000 480,700 11,000 480,700 4 1/2% Series Due 1993 4.48 18,525 829,920 17,925 803,040 17,925 803,040 17,905 802,144 ~ 4 5/B% Series Due 1994 4.61 17,980 828,878 17,360 800,296 16,060 740,366 16,035 739,21e 1 4 7/d% Series Due 1995 4.80 20,000 960,000 20,000 960,000 19,825 951,600 19,780 949,440 4 1/8% Series Due 1996 6.10 29,010 1,769,510 29.010 1,769,610 29,010 1,769,610 29,000 1,769,488 - 6 5/8% Series Due 1997 6.54 28,860 1,887,444 28,860 1,887,444 28,860 1,887,444 28,830 1,885,482 7 1/4% Series Due 1999 7,23 24,730 1,787,979 24,730 1,797,979 24.73) 1,787,979 24,730 1,787,979 S 1/2% Series Due 1999 8.50 8,68 0 737,800 8,68 0 737,800 8,680 737,800 8,180 695,300 - 10 % Series Due 2000 10.03 12,000 1,203,600 12,000 1,203,600 12,000 1,203,600 12,000 ,203,600 t G 3/4% Series Due 2000 8.73 16,000 1,396,800 16,000 1,396,800 16,000 1,396,800 16,000 1,196,800 l C 1/8% S.*ies Due 2001 8.14 35,000 2,849,000 35,000 2,849,000 35,000 2,849,000 8 % St.'.es Due 2001 8.03 25,000 2,007,500 25,000 2,007,500 25,000 2,007,500 8 % Series Due 2002 7.99 25,000 1,997,500 24,575 1,963,543 8 5/8% Series Due 2003 8.64 49,000 4,233,600 @ 7/B% Series Due 2003 8.89 30,000 2,667,000 4 5/R% Series Due 19b8 4.64 7,740 359,136 7,380 342,432 7,200 334,060 7,020 325,728 Debenturess 4 5/8% Series Due 1989 4.65 4,400 204,600 4,200 195,300 4,200 195,300 4,000 186,000 5 1/8% Series Due 1990 5.04 0,100 408,240 7,740 390,096 7,720 389,088 7, 38 0 371,952 6 % Series Due 1992 5.93 13,800 818,340 13,500 000,550 13,200 782,760 '12,900 764,970 7R 9 1/B% Series Due 1996 9.12 25,000 2,290,000 24,500 2,234.400 24,000 2,180,000 ' j{ C 3/8% Series Due 1998 8.39 29,400 2,466,660 g, oe %80 1 i

Ngh$?s ,.E

g~ r.

~. .5 9 "p ,[ ~ [(j.. s + j C* ,fif ( I* s s ( i;

s gy.

N/ ~- u. f'{t.] r ~ fv .i ~ .l ? w -l g 1 JERSEY CEarrkAL POWER & LIGl? COMPAN1r > 'I^ COST or IDT, TE' RM DEBT OUTSTANDING i x s December 31,'1970 - December 31,' 1979 ^. s And July 31, 1980 [k _ 7 December 31, 1970 December 31.' 1971 _ December 31. 1972 December 31.-19731 Annual -Amount Annual. - Amount. Amaual. O5 ' Cost s Amount . Annual Amount ~ comt (000). com t __' (000) ' Cost' 4 u. s. I s aue. . Money (000)' cont (000) ,{: of , iHet Jersey y 'h . ' =.. , Power & Liruh t ' C'o. + 4 ",4

3-L% Serles Duel1974 -

2.86% $. 9,000'. ,257,400 9,000 257,400 $ 9,000 $'.257,400' -9,000 257,400 'Firsimortgage'BonEss: ~ 100,000' 6,000 180,000' 6,000 180,0001 6,000, '380,000 ' ] Y 2 7/8% Serles Due 1979'. 2.85. '3,500-99,750 3,500. 99,750 .3,500 99,750 3,500' 99,750-13. % Setles,Duc:19784 3.00 6,000 ' N .3 1/8% Series Due_1984 3.12 8,700. 271.440 8,700 -271,440 e,700-271,440 8,700. 271,440- . N - 4 ~ 1/8% Se r les. Due 1988 4.08 '7,500 306,000 7,500 306,000 7,500 306.000- ' 7,500 t306,000; 4 7/8% Series Due 1990 : 4.90-5,000 245,000 5,000 .245,000 ' 5,000 - '245,000. 5,000 ' 245,000 s .6 % Series Due.1997 6.01 10,000 601,000' 10,000

601,000 10,000

.601,000 10,000 601,000

7 ' 1/8% Serles Due :1998'

' 7. 08 ' 8,000 566,400 8,000 566,400 .8,000 566,400 8,000 566,400 t . Debentures:< .4.69-5.260 246,694 ~ 5,040 236,376 5,030 -235,907 .4,800 225,120 .- 5 : % Series Due 1990: '5.02 4,400 220,880 4,300 215,860 4,200. '210,840 4,100 205,820 4 3/4w Series Due 1989 $381.515 - s20.017.264 $463.215 122 Q & '11 1485.420. $28.a41.066 5590A60 $38.001.669 Total.long Term Debt. 5.83% .5.94% 6.43% . weighted Average Cost,' 5.25%, ag g s f a y 'l N ' l e' b w> p - i.i. w'ex-w g. O...,,_,, ,[ a m

A.}m y,

_e 7:., -__m. m._ _... _, _ _ _, __ _ _ _ _.

~ "^ f{ ; '"' A sec'< f.' c-

t.,

i x-q 1 e? E i s JERSEY CENTRAL POWER 6 LIGetT COMPANY COST OF 1DNG TERM DEBT OUTSTANDING December 31, 1970 - December 31, 1979 And July 31, 1980 Cost-December 31, 1974 December 31. 1975 December 31, 1976 December 31. 1977 of Amount Annual Amount Annual Amount Annual . Amount Annual issue g or.ey (000) Cost (000) Cost (000) Cos t _ (000) Cost 'l s Jersey Central Power & Light co. j Fir;t Mortgage Bonds: 2 7/B% Series Due 1976 2.79% $34,500 S 962,550 S34,500 $ 962,550 S.- 3 1/s% Series Due 1978 3.10 3,500 108,500 3,500 108,500 3,500 100,500 3,500 108.500. 13 1/4% Series Due 1984 3.21 5.940 190,674 5,940 190,674 5,929 190,321 5,923 190,128 s3 1/2% Series Due 1985 3.40 18,155 617,270 18,130 616,420 18,095 615,230 18,091 615.094 4'1/B% Series Due 1986 4.07 9,599 390,679 9,599 390,679 9,599 390,679 9,593 390,435 .5 % Series'Due 1987-4.99 14,584 727,742 14.305 713,820 14,251 711,125 14,197 708,430 - 5 1/4% Series Due 1989 5.19 5,463 283,530 5,38 0 279,222 e,970 257,943 3,951 256,957 C 3/&% Serias Due 1992 4.37 11,000 480,700 10,800 471,960 10,775 470,8ba 10,765 470,431 01/2% Series Due 1993: 4.48 17,905 802,144 17,555 786,464 16,962 759,898 16,041 758,957 4 5/8% Series Due 1994 4.61' 16,025 738,753 15,945 735,065 15,821 729,348 15,815 729,072 4 7/8% Series Dee 1995 4.80 19,210 922,000 18,757 900,336 18,480 887,040 18,247 875,856 0- 1/8% Series Due 1996 6.10 29,008 1,769,488 28,979 1,767,719 27,675 1,688,175 27,392 -1,670.912 & 5/8% Series Due 1997 6.54 28,830 1,885,482 28,464 1.C61,546 27,933 1,826,818 27,429 1,793,857 7 1/4% Series Due 1998 7.23 24,725 1,787,618 24,723 1,787,473 24,684 1,784,653 -24,436-1,766,723 C 1/2% Series Due 1999 8.50 8.160 693,600 8,160 693,600 8,147 692.495 8,137 691.645 17 % Series Due 2000 10.03 12,000 - 1,203,600 12,000 1,203,600 11,995 1,203,099 11,995 1,203,099 i 3/4% Series Due 2000 8.73 16,000 1,396,800 16,000 1,396,800 15,955 1,392,872 15,950 1,392,435 4 0 1/8% Series Due 2001 8.14 35,000 2,'849,000 34,970 2,846,588 34,960 2,845,744 34,275 2,789.985 C % Series Due 2001 8.03 25,000 2,007,500 25,000 2,007,500 24,845 1,995,054 24,718 1,984,855 l 8' % Series Due 2002 7.99 24,475 1,955.553 24,440 1,952,756 '23,863 1,906,654 23,797 - 1,901,380 8-5/8% Series Due 2003 8.64 49,000 4,233,600 49,000 4,233,600 .48,815 4.217,616 48,653 4,203,619 3 7/8% Series Due 2003 8.89 29,950 2,662,555 29,950 2,662,555 29,840 2,652,776 29,840 2,652.776 12 3/8% Series Due 1979 '12.47 25,000 3,117,500 2',000 3,117,500 25,000 3,117,500 25,000 3.117,500 10 1/4% Series Due 1983 10.30 35,000 3,605,000 35,000 3,605,000 35,000 3,605,000 10 1/4% Series Due 1985' 10.54 35,000 3,689,000 35,000 3,689,000 35,0u0 3,689,000 9 3/8% Series Due 2006 9.74 60,000 5,844,000 60,000 5.644,000 9 3/4% Series Due 2006 9.96 35,000 3,486,000 -35,000 ' 3,486.000 8 3/4% Series Due 2007 8.92 59,900 5,343.0H0 IS Debentures 4.64 6,840 317,376 6,810 315,904 6,629 307,586 6,475 300,440.. j{ 4 5/8% Series Due 1988 4 5/W% Series Due 1989 4.65 4,000 186,000 3,900 181s350 3,800 176,700 3,600 167,40e "g 5 1/8% Series Due 1990 5.04 7.235 363,636 7,020 353,003 6,940 349,776 6,785 341,964 r 5 % Series Due 1992 5.93 12,600 747,180 12,400 735,320 12,000 111,600 11,700 693.810 R* @ 1/8% Series Due 1996 9.12 23,500 2,143,200 22,795 2,078,904 22,000 2,006,400 21.943 2,001,202 M C 3/8% Series Due 1998 8.39 28,800 2.416,320 28,800 2,416,320 27,825 2,334,518 27,000 2.265.300 I .j. c2

3

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s. ;

. z' WQ N pg; 4w\\g;. ' $.. n D q' %.&.- + ~u o v u e 4 i ,t,' w-s f, / q y , +, - s ;: a %e ; ?. m -- 's ..n. s N' ^ [f > ,u ~ %+- %y g c

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s' a

bl' J i.%,,: &"~ p'L. ;. ' R JERSEY CRIFFRAS PotER '& LIGHT CopePANY L .e-v 4 s + h g- ,y-. c! > + - c ,~ I % "e," g y ,y,v O>f,

A

' COST OP.1DelG TERpt DEST OUTSTASIDING '

77 ^

c

m

..g ^ Y%ahh f.~ '" 'i

And. 7ulf 31/[.1980.

W "m,,2.. Decemberj31, 19,70 - December. 31. 197 9 - N M. .4 E s y "y i

7{

f %: ca p + ', . i December 31. 1974 De@r ' 31.' 197 5 - December 31.21976. ' E-5-- s ..31[ 1 49._W 'W1 1 Cost 4 '.7 , #N ,L010f Cost .(000) . Annual LAmount-Annual ' Amount .Ammuta $ , (fh .1-v Anr.ual - Amount. of. '.; Amounta 0 cost -(000)" ~ ~ Coot (0001 :

' Cost f

-Q{ p 2 ~ - g -, Money? t ~ ' Issuew y My U s ,g r. s ~37 ,,., l~ ye;.new Jersey Power &. Light Co.' ,3 - I. .-180,000~ f$z6,000J ~ $ > 180,000 m p4 -

n

\\, -3 .v ' ^ ' + 4 ^ ( a First' Iso'r tgage ' Priori Lien Bonda s.c 3... 6,000-180,000 ' ..$..6,000' $ ': '.190,000 -. $.<6,000 $ '.3..e% Series'Due 1978? 3.00%. ;$i 99,750-3,500. ' '.

99,750 f'e c w,,

12 7/D% Series' Due -1979 i - 2.85. J,500 - 99,7 50 ^ 3,500 '.9,750 1 3,500' W 3.12- '8,700-271,440 8,700 ,.71,440 8,7000 271,440 - 8,700, '/271.440; .- 3 l1/9% Series Due 1984 J s , f,.eg" l' g 7-f;411/8% Series Due 190s? ' 4.08. 7,500, 306.000' 7,500 _306.000 .7,500 4306.000 n7,500<,

, 306. 000.,,

5,0002

245,000

< + p'g -T'. 4 4.;7/8% Series Due 1990/ 4.90L .,-5,000 .245,000,. 5,000- ^ 245,000i 5,000-J245,000 ; ,.10,000 j. -601.000 ', ,. " TO E6 "1 % Series'Due 1997; 6.01, 10,000-

601,000

.10,000 601,000 i10,000< - 601,000,. . 8,000 < >566,400;- . M c l7 1/0% Series Due 1998 ~ .7 K7.08 + 8,000- .:566,400 8,000. 566,400; .4,000 566.400. .~ a Y 1 ,., x ,4,435-. j -: Debentures:... E4.69 4,680, 219,492' .4,660 218,554 -. 4,440 206,236, '208,002 .4P3/4% series Due 1989'_ '5l'y % ;.,eries Due 1990 15.02 - .4,000. '200,800 3,900 -195,780 3,800 190,760/ 3,800 '190,760,, j, @e ' a 'i. ' [ ~ 7 m 18,953 1,448,0471 18,953 1,448,040 18,953 1,448,047 > ',Y fOther.Iong Term Debt. 7.64 i.. 8

unamortis' d' Premium & D' iscount ?
., t e

- N ~. 1,008 !65 u- ' '(net); -1 '6 y-jgg M ii $40.650.512 jggh9J,1 $49.194.577 IZMdg1 $57.071.621 IZ & ggi 562.126.241 Tota 111ong Term Debt - -WL 4 4 ' e. Weighted Average Costi 6.74%

s.14% -

7.68%s

'1.795 a-t 1 r s 4

$. h. u. i s~ l ;-..

Y,; q fe. r -l .g o.e ' g

e O,

r L '~ s4 T @e..., i h, l % ' " f. s p 3 I \\ P 1

I p

s'I ,. :.A., y 2 - -z a 7 f k j,,, ,f ~ J J .g """'d P ~ ^- { + .' i 1. %~ ~e k'.. _,.}. _.,,.[ j' i fy _j, '7 d

-yw.. -mmwgy ~ ' .y b. ~.- D 1 JERSEY CENTRAL POWER 6 licit? COMPANY COST OF LONG TERM DEBT OL7FSTANDING I December 31, 1970 - December 31, 1979 And July 31, 1980 Cost December 31. 1978-December 31, 1979 euly 31. 1980 of Amount Annual Amount Annual Amount Annual Issue Money (000) Cost (000) Cosg_ (000) Cost Jersey Central Power 6 E.igh t Co. 4 Fir:t Mortgage Bonds: 3 1/41 Series Due 1984 J.21% $ 5,923 s 190,128 $ 5,868 188,363 5,868 188,363 3 1/2% Series Due 1985 3.40 18.066 614,244 17,916 609,144 17,916 609,144 0 1/an Series Due 1986' 4.07 9,563 389,214 9,456 384,859 9.456 384,859 S % Series Due 1987 4.99 14,008 698,999 13,806 688,919 13,806 688,919 ,5 1/4% Series Due 1989-5.19 4,752 246,629 4,625 240,038 ' 4,625. 240,038 i 4.3/8% Series Due 1992 4.37 10,213 446,308 10,213 446,300 10,213 446,308 . C 1/?1 Series Due 1993 4.48 16,872 755,866 16,847 754,746 15,622 699,866 4 5/B% Series Due 1994 4.61 15,640 721,004 15,403 710,078. 14,502 668,542 f 4 7/R% Series Due 1995 4.80 17,744 851,712 17.525 841,200 17,430 836,640 'O 1/8% Series Due 1996 6., 0 26,190 1,597,590 25,743 1,570,323-25,710 1.568,310 6 5/B% Series Due 1997 6.54 27,119 1,773,583 27.094 1,771,948 27.094 1,771,948 7 1/41 Series Due 1998 7.23 24,309 1,757,541 24,191 1,749,009 24,191 1,749,009 C 1/2% Series Due 1999 8.50 3,047 683,995 8,047 683,995 8,647 683,995 10 % Sesies Due 2000 10.03 11,995 1,203,099 11,995 1,203,099 11.995 1,203.099 0 3/4% Series Due 2000 8.73 15,706 1,371,134 15,701 1,370,697 15,701 1,370,697 -8 1/e% Series Due 2001 8.14 34,026 2,759.716 33,902 2,759,623 33,902 2.759,623 , O

% Series Due 2001 8.03 24,646 1,979,074 24,593 1,974,818 24,593 1,974,818 8

% Series Due 2002 7.99 23,594 1,885,161 23,569 1,883,163 23,569 1,883,163 0 5/8% Series Due 2003 8.64 48,429 4,184,266 48,279 4.171,306 48,279 4,171,;06 8 7/8% Series Due 2003 8.89 29,840 2,6f ?,776 29,840 2,652,776 29.840 2,652,776 12 3/B% Series Due 1979 12.47 25,000 3.117,500 13 1/4% Series Due 1983 10.30 35,000 3,605,000 35,000 3,605,000 35,000 3,605,000 121/4% Series Due 1985 10.54 35,000 3,689,000 35,000 3,689,000 35,000 3,689,000 @ 5/u% Series Due 2006 9.74 59,750 5.819,650 59,748 5,819,455 59,748 5,819,455 9 3/4% Series Due 2006 9.95 35,000 3,486,000 35,000 3,486,000 35,000 3,486,000 0 3/4% 6eries Due 2007 8.92 59,699 5,342,991 59,899 5.342,991 59,899 5,342,991 9 % Series Due 2008 9.16 50,000 4,580,000 50,000 4,580,000 50,000 4,580,000 7 1/B% Series Due 2009 7.43 6,300 468,090 6.300 468,090 12 % Se.les Due 1999 12.13 50,000 6,065,000 50,000 6.065,000 gg 11 5/B% Series Due 1999 11.72 47,500 5,567,000 47,500 5,567,000 ea*a

G Debenturess 4 5/&% Series Due 1988 4.64 h,280 291.392 6,120 283,968 6,120 283,968 oe O 5/8% Series Due 1989 4.65 3,600 167,400 3,500 162,750 3,500 162.750 "r

5 1/B% Series Due 1990 5.04 6,655 335,412 6,480 326,592 6,480 326,592 -80 6- % Series Due 1992 5.93 11,400 676,020 11,100 658,230 11,160 658.230 9 1/B% Series Due 1996 9.12 21,474 1,958,429 21.000 1,915,200 20,500 1,869,600 8 3/B% Serias Due 1998 8.39 26,808 2,249,191 25.800 2,164,620 25,800 2,164,620 4 _)

^* lhQ 3 + } 'N aY .v-g A T [ 4 c ~ JERSEY CENTRAL ICWER & LIGIT COrWANY 1 'CUST OF IDNG TERM DEDT OtfrSTANDING - 4 y-di .~ December 31, 1970 - December 31 1979 J/ And July 31, 1980 i42 Cost. December 31. 197C - December 31. 1979 July 31.'19e0 ~ . of Amount. Annual Amount Annual Aeount. 'Annuel'

.. issue !

Money. (000) cost. (000) Cost 10001,, Cost: u )NwJersey Power's Lich't Co. W .1 Fir'st Mortgage Prior' Lien Bonds: j3,1/e% Series Due 1984- ^'2.85% $ 3,500. 99,750 S $.~271,440; <+ 2.7/e% Ser ies. Due.197 9 - 3.12 8,700 .271,440 8,700 271,440. 8,700

(0:1/9% Series Due' 19881

_4.08 7,500 306,000 7,500 306.000 .7,500' '306.000

l'4 7/9% Serice Due.1990 4.90 5,000 245,000 5,000 245,000 5,000 :

245,000 -l' G' '% Series Due 1997 .' 6.01 10,000 601,000 10,000 601,000' . 10,000 L601.000- .7'1/8% Series Due 1998:. 7.06 8,000, 566,400 8,000 566,400 8,000 - 566,400 :

~
-Debentures -

' 4 3/41C Series Due 1989 '. 4.69 " '4,305 201,905 4,200 196,980 4,000 -191,352 '5" : % Series Due 1990-5.02 3,600 180,720 3,600-180,720 '3,500-175,700 4

'other.Long Term Debt-

- 7.50 21,027 1,577,025 15,746' 1,180,950 10.465 784,875 ? Unamortized Premium & Discount 1knet)- (3.182) (2.181)_ (1.686)- l Total Iong Tern' DebtL $830.998 $66.139.2e4 se97.625 $74.336.798 $3R2.861 373.781.486 weighted Average Cost 7.%% 8.28% 8.291 t '. t m

9-.

J '~/ ' ag g.. "" og

1,; -

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,..s g.. s u m ,s 4^: Schedule ll? J s, 4 ,, c.ms.

3. y y, ~9 QQ-

'm 4 y. i..% I;

1 LYIELDS ON'0UTSTANDING PUBLIC: UTILITY PREFERRED. STOCKS 1

~ ?, J s Y J P g MOODY'S ANNUALE AVERACES' 4 gp: - -g 3,. 3 R 11946'-i1979-m $/ - e I h ht -4 L. @^ '+ - i.i -IHIGH CRADE: 1 MEDIUM GRADE" i Mi

YEAR'
PUBLIC UTILITIES;

.PUBLIC UTILITIE3. - .y l,- '1946 3.48%' 3.77% 71947.' '3.64 3.99. ?.1948 '4.03 '4.53 ~ 1949.'" 3.88-4.38-J3.75' '4.18 7k L.

1950-s

~ 1 I. .1951' .4.02-4.43

1952..

4.03 4.44 ^ 11953' 4.22 ' 4.62 i-- - 1954. 3.94 4.27 i L

1955:

3.94 -

4.25 11956-4.18., 4.49 1957

4.72' 5.01 fl958 4.51-4.83 1959' 4.79:

5.01 iD 51960. '4.85 5.06 l N,i 1961 4.71' 4.90 ~ 1962 ' .4.52 4.74 I 1963 4.38-4.58 L ~ 1965 i. 14.53? 4.72 ~1964 ' 4.49' 4.68 L ~ 5.19 5.41. 1966 '1967: 5.54 5.77-1968 6.07 6.28 D .19691 6.76 6.91 ~ '19707 '7.56 7.78 l__ 1971

7.10 7.36 ho 1972 7.23 7.43

'i P 1973. .7.56 ~ 7.78 i J1974: 9.26 - 9.88 !1975 19.45' 10.64' ~ 1976. 8.71' 9.41 s 1977- -8.12. 8.74- .8.59 9.33 1978: P< 's

1979:

'9.53: 10.56 ( sf.4;.. ,g i.:s d 1 = si [40 -f* .r Source: 4 n . Moody'si1979 Public Ut111ty Manual and Supplementsi i g -

m. -- -

YY .= y s c-r.n q v ma t r: ' r >kg r -( i%.

O

.s -s ,4 e

p-,

t y y% i o a T ~ ,s 'l'. ,5 4 ( ^ L~ n w y -e t' + '--MK , + p

x

.;~. g (? .,r eJ -24,1 ,?, s ^ a' / 'q I ' _k{"J " s . g.Q - y +

/

.P:: f.g w ~? ,,,_e'- ( 't b -

7.,- )-,,.l

.x [/, r- ~ ~, l f . u.ih.8 x--4;..: .;y 3 -e4 3 ;, .r we, q n- % Q.... T.,- '&?.. n,_,,& i,% Nd -Cy ? Q: )sc: i& M [\\, i; gy. ME! P:W 13@;, m m c i &~ ?. u. r 2- + uJ,#.- ~~ s ^Q2' 'a s ;. :", h-49

w. M'- N y Q;jdh Q-

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TM ~. + ~ +': ~ j'~% ~" , C., ' f: n

L

'.'/. i ( \\- E \\m,/ h. If ^

h. 4 ' j 3 e

~ Y; -:A G 2 YIEIDS ON OUTSTANDING PUB'AC UTILITY PREFERRED STOCKS s . MOODY'S h0errHLY AVERAGES 4 January 1969 4 June 1980 } A Medium Grade- .High Grade Medium Grade High Gr?$e Medium Grade ' High Giade_. - Mediuss Grade

High Grade-Public

~ Public - Public Public Public Public-Public-Public +' Utilities . Utilities Utilities - Utilities Utilities Utilities Utilities Utilities . 1969 1972'

1975, 1978 T en.

1 6. 18% : ' 6. 4 9% - 6.86% 7.09% 9.195-10.73% - 8.31% 8.94% J ' Feb. 6.23. 6.45 6.92 .7.13 9.14 10.23' 8.38-8.96 - '- 4' Kar. 6.39 6.58 c 7.08 7.26 9.31' 10.48. 8.3 5 -- 9.07' ' ~ Apr.- 6.42 6.59' 7.26 7.39. 9.48 10.63-8.51-79.11 i nny - .6.59' ' 6.69 7.23 - 7.49_ 9.74 11.00 8.61 .9.31 Jun. .6.71 6.871

7. 28 '

7.43 9.34. 10.88 .8.84 9.56 ' Jul., '. 6.7 5 6.87 7.35

7. 56

' 9. 36 -- 10.75-8.80 9.55-Aug. '6.85 "6.93 7.25 7.51 9.59 10.8, - 8. 56 - 9.26. t Sep.c

,7.09 7.08 7.37-7.61

._9.78 10.71. 8.43 9.22 Oct. 7.05 ." 7.17 - 7.48 7.58. 9.58 10.58 8.61 9.37 ' 'Wov. 7.27 7.44 7.36 7.52 9.43 10.41 8.75 9.58 Dec.' ' 7.54 L 7.80 7.32 7.56 9.41 10.39 8.94 10.07 s ..i .g( 1973 1976 1H9- ) ,Jan. .i?.21 7.50 7.23 7.42 8.79 9.61 9.05 10.02. ~ 1 'Feb. 7.30 7.5? 7.53 7.41' 8.74 9.50 9.11-10.02 i _ ; Mar. 7.26-7.47 7.39 7.53 8.92 9.63 9.10 9.98 - H. 9.15 1 0.07 -Apr. 7.32: 7.57 7.17 7.51 8.77 9.43

Mays 7.67

_'7.76 7.42 7.59 8.90 9.611 9.19 10.37 Jun. 7.84-8.13 7.53 7.62 8.92-9.63 9.03 10.02 Jul. - 7.7 2. 7.96 7.74 7.81 8.80

9. 56 -

8.98 9.97L i c E" - Aug.' 7.77 -7.98 7.81 8.06 8.72 9.49 9.07' '10.12 .Sep. - 7.76 - 8.00 7.72 8.04.

8. 58 9.25-9.60-10.66

Oct.

.7.85. 7.95 7.50 7.94 8.49 9.33 ,10.62 11.66-ENov. -7.66 7.90 7.69' 8.12 8.57-9.15 10.66 - 11.71 .~ Dec. 7.30~ 7.55 7.93 8.28 8.28 8.98 10.86 - 12.12 1971 1974 1977 1910 _. -Jan. .6.68 o.97 7.95 8.36 8.36 8.92-10.96 '12.27 Feb. 6.77' 6.96 7.99 8.27 8.23 8.89 11.62 113.50 Mar. 6.91 7.11 8.06 8.61 8.21 8.88 13.09 14.98 ".Apr. 7.01 7.23-8.37' 8.87 8.16 8.81 11.67 12.68 May' 7.15 7.44 8.84 9.41 8.14 8.84 10.80 - 11.99 .Jun. 7.31 7.58 9.32 9.64 8.03 8.70 10.59 11.51 : -Jul. -7.37 7.74 9.73 10.16 7.91 8.43-Aug.< 7.34 7.66-10.04 10.84 8.02 8.51 .n; ~ (-. Sep. '7.28 7.55 10.41 10.94 7.95 8.60 Oct. 7.07' 7.34 10.38 11.50 8.08 8.74 a y Nov. 7.17 7.37 9.91 10.93 8.15 8.76 '7' .Dec. ~7.15 7.39 10.17 11.20 8.14 8.81 U? Notes Yihlds are based on the closing prices for the last Friday of each month. ~ - Source: Moody's 1979 Public Utility Ma tual and Supplements. 1 'w E L / 4 $ v l 9 a.w- .; @.-~ i ~d._' ; . _1 '., .2 1M a.,.' _ _' ~g.___..._ j.,; %,.,,, n. y___,m. .a.,,._,_.

w.,;... M '.. v , (W k.) w-- c-pm, e N W h SY g., s hye ( f f&f +4 ,...n. .y y- .s 4 m; s ef y ,a x (. 9 O.? l' ,lf-' l? p[)a .c h l\\ , f ,7' p ",, > '.-y, -;;;:3, t / J

p

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ja s

i i s g3 - StDetARU BY' QUARTERS OF1 ~ N. v% n'

i. EIECTRIC AND GAS UTILITY PREFERRED STOCK ISSUED PtBLICLY.

.<R + e, O. M 7.py - c c AMD. RA1TD *BBB* BY STANDARD & POOR'S ' . m: a~ e j& 4 w u 4 .= Janua ry 1962:4' June:1960

4. *

3

'~ ~, W :,- a' - -' Average f,' fAverage"

(f.@

f Averagei. Average Average - Average r s ~ s-

O f fering Issuing

Offering; Issuing (Offering,

-Issuing P %gg r < 122.6 '6-..Cest* '.* 19 A, , [. ~::e ' Yield, 1 Costa Yield ' Cpet* -Yield' ~' ~ r. ' 1 ~A7" ;h 4 -f f c . ' ': 1%2 ' " 1%9 - ~ e '4 i @j' .- ;2nd Quarter: c4.84 4.95 '

9.36

10.01% 3 M

' [M . -S % ' ' -1% ' 9.62% ': '%L

1st Quarter; 9.621

~ ( 9.83. H ' 1 1 p J 5.10-5.37 9.43 1 9.24 ;- ~ g 3rd QuarterJ

8.80 8.93 8.80

i" .4th Quarter ' .vs u 2' ?8.60 '.,Mi 1%3 1970 8.92 L ' i s "W' c. W. ', ~41st Quartere , : 2.ul Quarterx- /4.55, 4.65-t8.54 e 8.90 L t

.4 4

s Rc. " 38.80 1

9.19 t

+ 5 1'" ?3rd Quarter

4.65 4.73' C

l4th. Quarter' f 4,55 - 14.63 9.08 9.23 8.83." '9.16 m .. V 4 O.- 1

p L p,.

'l}ZJ, ?),92g.-,' 9.3 5 '. 4 p4' q 5.[ i[; } 126,,,4 8.00 8.15-

8.97-1st Quarter

.2nd Quarter 4.69 4.76 - 8.86, 9.03 9.55- '9.87i 1 9.12 9.31? J3rd Quarter 1- ' :.t 4th Quarter. 7.95 8.10 - 9.7 2 - - 9.88.. Ns ?. , Myg- '1965 1972'

gjj72, c

S -4.50 4.57 7.65- ' 7.79 : 10.19 [10.'52<4 1st Quarter < i " b2ndQuarter' 7.96 8.08 110.50 . 10.83L a'i w 3rd Quarteri 8.02 8.20 9.80 ' 9.97 9 th Quarter 7.63- .7.72-11.00, i11.37 4 v

l. J., -

1966 M' g .,14.87 4;; ,e 9 'Ist Quarter 14.55 12nd Quarter 7.92 8.03' '11.98. 12.17, ~ e

3rd Quarter-8.14 8.26 Q'

~

'~ s 8.26 '8.44

^4th'QuarterJ s

m .g d r 1%7 192,4,, ..C, i _ f1st Quarter- ,8.62 .8.74 9.95 10.19-m i2nd Quarters- .g 6. /3rd Quarter. 6.91 12.29 12.74 in. "4th Quarter, 6.79 . 4 -D 1968 1221 y ;. :o 11.10' -11.60 ) 's-s ~~N Alst Quarter' ~11.66 12.27 JE ~: ' 2nd Quarter? 11.36 11.88 J. 0 : b .] ~ =3rd Quarter; 4 th ' ouarter '- 10.67 11.06 E . a ir ;.p. - j7, s .yf.,z! L M. ' Excludes issues of convertible preferred stocks. 4 ~ h Mo es, ' Af ter: underwriting compensation and estimated expense per prospectus. USources Prcapectuses. Ij-

s i

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,y: m. ;,

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+.

w ~,. is. t m t.w. - g JERSEY CENTRAL. POWER & LIGHT.COMPANT \\ 3.g s '[. - i COST OF PREFERRED ' STOCK OUTSTANDING. C. .Decem er'31[1970 a December '31,1979, Jtdyl 31[1980 : j b and-Estimated Decensber. 31, 1980' J i LAmount. . Ouestanding. -Year. (000)' cost 2

12/31/70

.$ 42,000 7.19% n ~ -12/3N71' ~92,000 7.66' -- I -t a 12/31/72: 117,000 7.70 .w t '12/31/73 112,500 7.85 12/31/74: 137,500 8.99 4 12/31/751 161,250 9.34 j ~ - 12/31/76 160,000 9.31' h 112/31/77 -208,750L 9.24 L12/31/78" 207,500: 9.21' I '9,1 12/31/_79f

206,250 9.18 Ji L

.ts. '7/31/801 205,000 9.15 j .. ~. 4 t ? Estimated. 12/31/80; i203,750 9.14 3 ~ i b y t c, .a + q. ,-7 L 5, . II Wh s _.s, m I g e v l~

t. :+..

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m a a.>

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s; 7..

_Schedulec15 s_ ?.y<.n + -. y a m,~ a + mp y ;.. , ' ^., ' ' ' t cn = 4 ': ' A e f yy-s ,a 1 s 4 m n . 7j L: s ~. ; , _,y ~ M rJERSEE CENTRALsPOWER A LIGHT COMPANT .m x. m <~ - ? W y i .= _._a a .5 'A S-m., r,, y .. RATIO: OF EARNINGS ;TO, FIKED. CH RGE ,y ~ 4-, -5 f I. g f

'a.,..

n ~ v. ~ -n ~ + s. ,.,k4.. g .J .Y,. e - n el ' y "_(. n*^ 1 e s .r ~- w n. r 3 c . g,ggn.og_ i 412; Months gs_w Earnings,to; ' - Ended' ,1 Fixed Charges 1 w. 3 i 4, a K W ,12/31/72 2.90x- ~ ~ s ~2.54 112/31/73 e 12/S/74' 2.71 ~ 3 ' f, .1 .fs 12/31/751 2.36 12/31 761 -2;64-w r- -.N J ~p m - 12/31/77: =2.95 c, 12/31778 ~2.59- -- 12/31/79; 2.19L 7/31/80: .1.61 ^ Source: {Prospec_tusj de.ted -January. 17,<1979 covering 2 s F ?$6,300,000 Dauphin County' Industrial.Devel-i i lopment Authorit y. Pollution Control Revenue f ..' Bonds Series Ai7/1/80dus January 1, 2009 _ f b 7.g tand' earlier [prospectusesfand(information. t e f ] supplied:byjCompanyy b y .--a.- w x + ,1 ,7 r -y- ?-. =' I^' ? s Y 'w..

1. ti1 e e

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m..e

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'e.

,.s o - W e - AND THE ELECTRIC UTILITY INDUSTRY: r M,n. eli ' E g[' s ,e s s. - ~ 4 R .A

197d" fl979-yn

'r -c,. ,w.. 4 m.,> u e a - ...~,g T ,,r', fg' m' s ~ ^ x

n' 1 Times Interest.' Charges;

. E" A:@,., .y . / q.,,-#- n +e q w,g ' And. Pref erred ; Dividends k -. f Q.b * / ' Jag., LTimes-InterestLCharges: Earned ~ i Earned After Income Taxesi X' s y:- Before Income TaxesM p ,y

Jersey

- Electric-Utilityi M n. ? Jersey

Electric. Utility

l ]:5.

1. 3@J ' <

Yea'ri iCen'trali Industry > Central ' Industry..- ' i ~ ~~ s r, s 3,. .u

2,;17x x i,:N.

l. -a - .,-..7Lr ~- s s ' ,,.,. -;19703

l. '2'.21x!

- 3.19x-2.22x-1.% 4c.: ~ + .L, e E, p,. - (19713 e-12.33J. -3.00 1.93

2.06:

^ r, t. -4? 8 ~ a. Y:5 ^ T b' ; ? ^ M 1972L l 2~.92 : 3.01 2 '. 05 - 2iop ~, ~ ' ' 3 1 T 4.. ) ~ ~ 11973' 42.55- '2.87 1.94 1.96-1 Y% ( g, ~.197'4- !2.53 .2.48

1;94-1.76c

~ ~, xx.. ,r x .a. . 2. 37-' 2.67 1.58' 1.821 i ' W ' *= 1975c o.. ~ 1.86 m 716' T 1976 l' 2.67- .2.82 1.71; m a .( ie 1-p . Y, . h e 3.23 1.87-1.99.. a: L 21977i /2.99 e

'.3 i'

.g

.a H

l 1978'. ,2.59 3;28; 1.64

1.98J I

cmx i mr. { - .a, 21979' 2.18 N.A. 1.53 = N.' A. : - 7

r.

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i

' f_L t l'. .s s ~ N- ". M '. s ~ 'L-. .: *b

m:rq- [ ^ . M g. '. 3 - 5 j' j. Q & ff - Qw[:.J V + p ~ ^ ^ mf.c r,y.q q ..s ;,

3 g.
.n i <

L . GENERAL; PUBLIC, UTILITIES CO'RPORATION f -i

/',

di s 4 c. ..,.c !9a f 11+

FINANCIAL; DATA g.,-

,2 -<a

,e a.

.? f f ^ 't e.

c iRatio of e

,5 cy, w.~, Average; Earnings' . Price: Average' iAverage Marketi 5i s Market'"?

PerJAverage l Earnings'

' Dividend.,, - Average. Book'. . Value -to ' Average; ~ q' KYear t-2 Price Share-Ratio ' Paid Yield Value' . Book Value - 1 o l 1970 - $21.'13 '

$1.83' 11'. 5x
$1.60 17.57%-

.$21.08 1.00x : 7 ' Y M} ,f1971? ?22.941

2.'08

'11.0 l'.60 6.97 21.34' 1.07 ~ i 1972'- $2235; .-2 21 -10.1 1.60: 7.19-21.651 -1.03 o 1. 11973

19.63 2'25 8.7 1.60-8.15 21.72

-0.90 n

u

~ 3 1N, 14.~ 88

2.25 6.6 1.68 11'.29 21.93-

' - 0.68 - x, j[ rif.o 13.94 '2.00' 7.0 il.68 12.05 21.51 '. 0. 65 - 1976-17.56: -2.20 8.0- .1.68 9.57 21.10-0.83' 11977 19.81 2.50' 7.9 1.70 8.58 21.71 0.91 ^ ;p 1 1978' 18'.83 2.30 8.2 1.77 9.38 22.15 0.85. ' i

1979

12.94

- 1.56 8.3 '1,20 9.27 22.53: 0.57. m.- '. Current' '5.75- .80 7.2 22.'88 0.25 e o.~ Eh: -- H +. M [t; r s + Y g ,g." '_ v i 4A1 __a_ .__.__5___.___:__.-_._______,________

]- $? hl: f', %.S h ,y y N_lNI l T' - '~ ? i gj Q ;, -j [Yy&y e m p -p:. w

m s

c ;2ts t ~ x. 1 ..Q.. - ~z' 3 e, A.. u;m(' f: g(, -)g v.. v=e sp -

6.,

u m 3w,.... a s L 'sc ~ n

s" ~

~- .m .~,..:n c -.,, '~ [ 'V -./ 2 n.a 7 .,V r m; Y j%] 3 4., lf, f e .q q 5 ).g, + .Q: ;., W ^ ',4N jJERSEYCENTRAL? POWER'bLIGHTfCOMPANY

n sv

' ^ (d 5 % ' g ~g, .~ 1- _AR .es <. ~2: Q f 'y iNET PLANT,jKILOWATT-HOUR'SALESvANDiINTEREST AND' PREFERRED DIVIDENDSj .g , 3 "4 - r

f.. d3[o M

%+, /s 11970 :19'7.9; ? , W7 W.~. " ' ^ Js

u. ;.;

,.J.' ? 1.; a 5 ' t .,y y_ e

AndLTwelve; Months' Ended. June-30,:1980-fNW w

M,ffg . wyg ,x ~ 3 y. .,. p 3 +vy __, 3p y a A c y;T m yx + v fe[.,

{,} '

m s j( Dl, ' y-3' (L '.;3 h.{ bj ! v 4, y w ~ 1 ,p~ r s .9;

t. d,.,

r l Interest ': s , M. ~ < Jandf,, .j 7s.[ ..a s -r , kh.: hb ^ 1 -Y' 3 Plant

Indexi Hour. Sales-

- Index' sDividends= 1Index ' 9Z [ yd

cNeti (Kilowatt- -

iPreferred ~ :. M 3% ' * '?t -1970:= 1004 i(000) l1970 i 100' .(000) ' P1970 W:100l

_'M 4c, iYearP, a :(000)4.

,.g < y ,, fb ,I,A n U.P '119701 c $ (.7755,576: l100. 0 '- .8,175'021, 100.0' '$'23,586: 5100.0f _.. i ( s d '] . ~, g.M, d1971: y873,'136 115.6' 8,739,970. 106.9-L30,520i 1129.4: ] f, *, ..'M h ' [, 130.2-9,609k383 117.5~ '37,625

159'.5'?

N,j M' 1983,639' h. 51972L,,, 1 i cM (1,119,112'.

148.1

.10,609,373 . 129.8: s43,454 ' 184'. 2 : '1973L u .[', + m. s > (1974

1,229,327 162.7-10,567,944 129.3

,54,593 .231'.5 m k J E19I5 51,335,010 il76 7 10,714,073 131.1- ~. 63,339 ' 268.5: 4 4 N

1976-11,430,449

-189.3' 11,488,464 - 140.5 71,379: L302.6' m y <..+ .;1977; -1,559,369 206.4 11,901.704 145.6 '76,651' .325.0; t227.6 12 439,065 152.2-85,353< l 361.9.. ' v-' ~ I1978: l',719,349 tw 51979., '1'857 626 245.9 12,770,989 156.2 98,644' '418.2i fr S, ~

e v.

?6/30/80 1,886,232 249.6 12,656,733 154.8 107,361' . '455.2 L 5.t.'i O. ? .g m s +c N.. 'N--s g /, p),, a 'Y '{ '<r 4 i u l '. .,e. s 1. 2 .. q [ ~

3 A,

%g2_:. ^ .Q _. J ( e ',q ,.[ A ?:J C s 1 4 f l t W = d i. v.

i q, -,,3 Aegust198b ' R EIS ' & CH AN DLER.~ INC. r Book Current' 1 Value Earnings Per Share Fiscal Indicated 'Per Sh. ' Market ' Price. 12 Mos. Twelve Months Year. Dividend Year Price Earningsr ~Line Company Ended Latest Year Ago 1979' Rate End 7/31/80_ Yield' Ratio '1? Arizona Public Service 6/80 $2.73 $2.67 $2.90 $2.12*~ $22'.75 18 3/8 11.5% 6.7~

2'. Atlantic City' Electric 6/80 2.33 2.43 2.36 1.96 21.63 19 1/4 10.2' 8.3-
3 Baltimore Gas & Electric 6/80 2.92 3.40 3.40' 2.44 30.08' 23 3/8 10.4 8.0' 4'

'Jangor' Hydro-Electric 6/80 1.08 1.47 1.63 1.52 14.18 12 1/2 12.?' 11.6 -5/ Boston Edison' 6/80 2.88 3.41 3.52 2.72 30.40 22 1/4 12.2 7.7 6 ~ Carolina Power & Light 6/80 3.15 2.94 3.06 2.24 25.25 20 1/4 11.1 6.4: 7' ' Central Hudson Gas & Electric 6/80 3.21 3.27 3.27 2.16 27.52 19 11.4 5.9 d Central Illinois Light 6/80 2.08 2.28 2.38 1.70 19.62 15 1/8 11'.2 7.3 9 Central' Illinois Public Serv. 6/80 1.62 2.05 1.80 1.40 14.06 12 5/8-11.1 7.8 10 . Central Louisiana Energy 6/80 3.15 2.29 2.88 1.00 12.23 34 1/8 2.9 10.8 711' Central Maine. Power -6/80 1.78 2.15 2.10 1.64 17.73 13 3/8 12.3 7.5 -12 Central Vermont Public Serv. 3/80 2.43 3.01 2.74 1.84 21.84 14 7/8 12.4 6.1 13 Cincinnati Gas & Electric 6/80 2.26 2.53 2.59' 2.04 20.43 17 12.0 7.5 14 Citizens Utilities 3/80 3.24 3.04 3. I 's 2.74 23.16 34 1/2 7.9 10.6 15 Cleveland Electric Illum. 6/80 2.24 2.29 2.42 2.00 19.88 16 3/8 12.2 7.3 16 Columbus 6'So. Ohio Electric 3/80 3.12 2.08 2.84 2.32 26.35 25 9.3 8.0 17 Commonwealth Edison 6/80 2.40 2.94 2.51 2.60 28.83 20 3/4 12.5 .8.6' 18 Community Public Service 6/80 1.94 3.00 2.48 1.88 24.24 19 7/8 9.5 10.2 us 19 Consolidated Edison of N.Y. 6/80 4.56 4.07 4.51 2.68 43.88 24 5/8 10.9 5.4 E-20' Consumers Power 6/80 2.71 3.49 3.24 2.36 27.86 19 1/8 12.3 7.12. 4 21 -Dayton Power & Light 6/80 1.90 1.87 2.01 1.74 18.60 14.7/8 11.7 7.8

22f Delmarva Power & Light 6/80 1.73 1.90 1.91 1.48 15.87 13 1/4 11.2.

7.70-23 ' Detroit Edison 6/80 1.56 1.97 1.90 1.60 18.63 12 3/4 12.5 ~ 8.2 7 6/80 2.95 2.76 2.88 1.92 22.14 17 1/2 11.0 5.92 ~ 25 Duques'ne Light 3/80 1.90 1.51 1.81 1.80 17.84 14 1/2 12.4. 7.6 5 24 . Duke Power 26 El Paso Electric 6/80 1.64 1.32 1.45 1.16* 10.44 10 1/8 11.5 '6.2 o 6/80 1.44 1.87 1.72 1.44 14.98 12 3/4 11.3 8.9 ? 6/80 2.13 1.73 2.07 1.56 18.46 14.3/8 10.9

6. 7

27-Empire District Electric 29 Florida Power & Light 6/80 4.68 3.92 4.22 2.72 34.31 27 1/2 9.9 5.9 28-Florida Power 3b Green Mountain Power 4/80 1.99 1.99 1.75 1.32 14.72 11 1/2 11.5 5.8

,.y

y. 79,

..p. 7 g _, 3 w ' yc . g. .4 m u 7 ,w, < ; "m sgPmm.q p wm > ggy c . gow.- 4 s >m se ,s n nw

p.y ey 2.

? 3 Q: y % y; ; % )3 s M_ f ap % l[v~ JC gp g 'Q = >y z ' U.1 J"b >~ ? o '[ s +i M ,1 $ w n ' ,4 q%~ pn^+ ,Q 14. l 2; I

Q W w%; p: ~ c -

s y< n wx ' W u ' N{5 p h/If ' k~ c - n s %g, f ?f' (Bod ~ '[ i s 3 1 "Cderent? .Value %4 r I7N# y.g 2.t.j y 1 Earnings:Per: Share Fiscall ' Indicated' PerTSh? iMMrkM ' iO Price? g%.., < < gg V /M TJ-

12 Mos.

. Twelve Months, ?Yeari

Dividend'

' Year / N Pricek ~SEarnings s Ended hLatest _ < Year Ago. 1979 ' Rate' Endi 37/31/801 [ Yield} 'Ratiot h # [ P[CdepanyC ~ M i.i k@R (Gulf l. Stat'esJUtilities $1.74^-- $1.36 $15.53.

.1-sp 2.

3*M e-3 ..j Jt .J p 15.69 ? 31 - s6/80 !$2.10 L $1'.56. 311:3/4} L11i6%i w { 7i6s "', qp?q q. - ? Hawaiian; Electric? 86/80t '.3;24s ~ 3.61: ' 3.67-1,2.44 F29.53 (24[1/2) C10.0; 0324 ,m.e M S 33? (Houston Industries 1 ? 6/80 ; 14'.55? ? 4'. 63 4.84 r2.68 -

34.58

'28;7/8 7 ;9.3i1 E6:316 W M I.817 M $ 334) lI8sholPower{, !6/807 2;461 42.611 2:41

2.52*i 28.'51"

'21'3/4 ' 11.6 4 (7.0[ 1'^ M 35) fIllinois Power; A

6/80

$2183 J2.62' ,2.70 ?2;38L ' 22.26-19?7/8) 112.0 3 ,i* t W6.3h-U

; p w%, ' '

@s 16/80.. . 3.52l

3.16-

-3.46<

2.24

.23.619: '(22il/8" - (10ill, 4~t s9.3) ^ 636EsIndianapolis(Powe'rn&? Light?

6/80 fl.[474 2.15-l2.01-1.56-17.03'.'

13:5/8l "11.~4L ? jd37c jInterstate1 Power; 3 /80 "1.63 2,16 .2.06-1.60

18.01.

113:1/2; . 11.9j m J g8.33 t, $38MIowalElect'ricjLight[&" Power. 5 ,,fil.1> f7.6 T, g 439pIowa-I111nois Gas :&^ 1ectric,

6/80!

2.50 2.84 .2.86 2.10 21.73 fl9 2 s10.9:, 7 f

1.98

,3.67 "2.93 <2.20 223.00' 21 5/8> 110.2 /6/80' ..' d40i > Iowa"Public Service;

l. m.

Q Iowa. Resources.. m.' 6/80 13.65 3.42. .3.57. 2.52-26 84i '2317/8: f l0.61 ,6{5Q$,., 4 .r M,d41 ,7 77.01 $ ^, s 420,kIowalSouthern Utilities, 6/80. 3.37J L3.95< 3.651 12.38 "29.27E u2373/4 110.0 a

8.51 f437 $ Kansas: Cit'y' Power &l Light 6/80
2.58-14.05<

3.01 ~2.66 31'95

22. f 3M12.1?

p {44Tj (Kansas 1Gasb&) Electric .6/80 2.36 1.66^ '1.84 - 1. 94 ~ 120.781 216 1/8} D12.0' L6.87 g J 345 0 Kansas Power}i Light 1 6/80 2.71 2.63 '2.80 2.04 23.05? J18 5/8

11'01 0 '.6.91.-

N z s' 'c i +,.. ' ~. ma' y" cKe'ntucky;Ut111 ties; 6/80 1.59L 3.06-2.60 2.12 24.19' '17.5/8L il2.0. ,i11.19 + 13 L, ' f 46h[! ( i.47 L Long [Is1'andlLightsing. 3/80 2.42

3.87 2.41 1.86

18.88

15 3/4 11.8j a 6.'5 { X M

f6/80 2.48' 2.04 12.24 2.06 24'.02-11871/4 .11.3 l 1.7. 4 ; g E(48 t :; Louisville Gas:&iElectric. 3 f ~ 4 adison' Gas % Electric. 3/80 1.75: 1.97. 1.76 1.64 '17.76

14Ji/2s- -11.31 J S.'3 b 1 49 M

l50 M Minne Ota Power'&iLight' .6/80 2.27 -3.21 2.92 2.04 22.27 '1913/4? J10.3 i_ i.8.7 A. : 1 J ~ . a. %r m y ?51h :M'is'souri Public Service 5/80-1.43 1.45: 1.71 1.00(a) 14.821 V11f3/8? .'8.8; 8.0;b ~ < M 52~-Montana Po'er 6/80 2'.69 ,2.73 2.81 2.12 24.76- !26'1/4 '(8.1J 19.8i 0 ' ' 5/80 2.45 12.66 3.37 2.32-21.38 I 23 3/81 J9.9; a' [9G1 w 1 353' !! Nevada Power [ 16/80 2.84 2.39 2.83 1.88*'

21'. 79 ;

'16c3/81 11 5?s

5.8Ff?

'?54i !New YorkiState Elec. & Gas [. (55 f D Niagara Mohawk Power - 6/80- .1.85-2.07 2.00 1.52'

16.84;

-13:1/21 111.3l *' L7J3:.4~ Mi I v u . a wom a

3 b 09 % ; w'

~.+ 4 ~ 1.86; El.50: 18.44: '12 3/4 fil'. 8 ? 8.3

r' '

EiS61 ' Northern Indiana-Public; Serv. 6/80 l 1. 54 ' 1.98 1 42- '27.18; 124~3/41 39.8h. [8i6 5 4 h M 57f rNortherndStates' Power (Minn.) 6/80 2.87 3.65 3151 2 % J58L tNorthwest'ern Public. Service 3/80. 2.29

2.64 2.56-

<1.80J 18.92l $15 3/8-- 111'7 9 96.7! R 1- ?728Q ',' [6/80 -1.801 1.29 5 "1.80. 1.76 16 26?< ;14/1/87,(12.50 I59) 30hio Edison" - ~ _T12;0J ~ ',13 1/4'

12.1 L6/80:

'1.10 11'. 68 '. ~1.36 1.60 ' 16.'49 ' ? =,?605 40klahomalGas &lElectric-m 4 , s Cu + s, 1:q ',.,, i i j 7 sa L, [G. c w,'. m ' Q? =, s ~ -f(- j;by 8,I , ;,f. hs g .p ,96. '. ; ~ 'g. s -Q ~ s ,t,, a QX. Q,G__ z_ L., j p y _ g g;x p 3 j gj g gg ____.__m

u_1,

~. ~ - ~ _,. .m.

-- - m i t j 1 5 s j, . l' } - ^ c v i,G %,' l[ , ') p.,/ + i_ 4 o- .f: w, f t:. . Book. G ' Current? c "g a. -Value Price " + .Per Sh'.

Market'

. Ecrnings Per Share Fiscal-Indicated; .Earningsf 12 Mos. Twelve Months . Year . Dividend ' Year Price Ended! sLatest Year Ago ,1979 Rate End 7/31/80! 5 Yield. 'Ratior 0 m _1:Line3 J Company. $2.00 '$1;60L $17128' 513'1/2: 11'.9% > 6'. 7 e, K M-:, ' 461 ?.. Orange &iRockland Utilities ,6/80

$2.02-

$2.09~ 3.46'

2.20 24.531 21(,..

10.5 6.6 'j:p J6/80- -3.48' 3.75 3.55 2.60 29.83. l2311/2 11.13 6.8L ,162; aOtter Tail _ Power! 16/80 3.17-3.51' l M80 - ,2.30 ?2.41 2.46 2.04 21.281 19.1/4? (10.6 .;8.4 l, i ,?.f63;-Pacific Gas &lElectric', 1 57 iPennsylvania Power &. Light ., 6 /80 - 2.85

3.09 3.32

2.12' F25.60 1913/8:

l10.90 2 6.8 t ' s. 4

f64LHPacific' Power,&. Light'-

6 f: a, 6/80 -1.76

1. 9 9.-

-1.86 1.80' 19.06'- .14'1/2 12.4-8.2' 6/80 1.06 1.57 1.06 '1.70 17.55-14:1/81 12.0-l13.3 :, ~ ,J66 3 Philadelphia ElectricL ~ Potomac Electric Power:f 6/80 1.88 1.65 1.73- > 1. 52* l - 16.47 13 3/4 ,11;1-47.3 ~ % [67J ~ Portland. General. Electric ~.64 1.35 1.60 L 17.18 - 13.. 12;3 49.2 5 Y-I 68 6/80 ~ 3.52 3.49-3.79' 2.48- '26.50 J22 1/4 11.11

6.3L 1

69 1 Public Service of. Colorado. 6/80 1.42 170".Public: Service of Indiana I71D Public" Serv.4 of New' Hampshire 6/80 2.71 3.01 2.56 2.12 22.39' ' 16.1/2 '12.8i

6'.1':.

f72; ;Public Serv.;of New. Mexico' 6/80 3.19 2.48 2.97 2.08 22.26 20

10.44 6.3l ~

73 Public' Serv.SElectrici&-Gas 6/80 2.68 3.08 2.85- '2.32. .26.80 20L ,11.6i ,, L7.'5 ; 6/80 1.30 2.10 1.67 1.64. 17.93. 13.1/2- .12.1J 10.4? 'y .7 5, Rochester Gas &. Electric' 6/80 1.92 2.29 2.14 1.48(a)' 21.90 '14'1/8-10.5; '7.4 i 74. Puget. Sound Power.& Light' 3/80 1.28 1.57 1.31 1.26 .14.50' -11 11.5- , '8. 6 y) 6/80 1.94 .1.50 1.80 1.52-17.35 214 10.9' -17.22 ^ 76 L z St. Joseph Light, & Power 6/80 0.93 2.06 1.24 1.20 19.93 10 1/8'- 711.9 10.9' 77 3 San Diegol Gas & Electric 6/80 1.97~ 1.92 1.96 1,46 15.78-13.5/8-

10.7 16.9

!78 Savannah Electric & Power 18 0 South Carolina.Elec. & Gas 6/80 2.02 1.78 1.90 1,74 18.48-15'1/2-11.2l 7.7 F E 17 9-iSierra Pacific Power 181 iSouthern California Edison 6/80 4.27 .4.23 4.56 2.72-34'.41' 25 1/4-19.8: ' 5.' 9' I 6/80 2.82 2.96 2.29 1.68 21.62 17 7/8 9.4 6.3 T ' 6/80 1.31 1.63 1.50 .1.28 " ? 11 7/8-10.8 ~ 9.19 82 So.; Indiana Gas;&; Electric 6/80 J2.77 2.14-2.12 l1.56 '.8.07 16'3/4? '9.3: '6.0 $ J83 ? Southwestern Public Service 6/80 2.56 2.91 2.65 2.20 .24'.15 19'1/4. 11.4 . 7. 5:.o d ! i: 84i. Tampa Electric ~ 6/80 2.18 2.15 2.17 1.52 15.28 15 1/2 9.8 17.1

1

- i85 Toledo! Edison-6/80 1.77 1.98 1,73 1.52* 15.84' 12 ? 12.7j 6.8 *', 88: 1 United Illuminating ~ 6/80 3.85~ 3.71 3.94 2.68-30.60 .22 12.2, . 5.7 b

86l Tucson. Electric Power 87i ' Union!Electri; 6/80 2.01 1.68-2.05 2.00

-18.46

18: 1/2-10.8; 9.2 4 6/80

.1.60 1.70 1.63 1.40 18.65~ 11 3/8f 12.3; .- 7.1 [ ~ 89' Utah PowerL& _ Light q ,90i Virginia Electric & Power 4 / w i,.

, f 4 . ~. .7 m gj

<" ]-

,g 74 _.g. ^ 't: (~N. ys . d, )) y i

g 3

e vr v. s s w W

s

. -1. 4 -- D't s. _T 'i'; ~ v .1 .,'t ] Book- . Carrenta Value Earnings Per Share Fiscal. Indicated 'Per Sh.- Market-Price: fl.ine :- <l Company . Ended' Latest Year Ago-

1979L Rate End-L7/31/80 Yieldt. Earnings C

!y 12 Mos. Twelve Months LYear' Dividend Year. Pricer Ratio ). [91Y(WashiSgtonLWaterPower .6/80 .'$2.03-

$2.76

-$2.78 -$2.16 'S24128 19 1/2 .. '11.1%. 9.' 6 ? 7.1' ' p:

6.67.j L ': . 92f ; Wisconsin. Electric Power 6/80

,3. 68 - 3.61. ' 3.75' 2.52: 30.72 24.3/8; .10.3l ..93 " 1 Wiscon'ain: Power & Light; 6/80' 2.47 -2.39-2.50 '1.92* 19.89 117 5/8 x10.9: 094' 3 Wisconsin Public Service 4/80 2.88 2.81-' 2.81 1.82* 20.38 '17'3/4' '10.3i 6 '. 2 ; E ~ 1-1 Electric Operating Company: Average (h)' Plus ' stock dividend. iAO Denotes dividend' increase this' month.'- } 4 6/80 $2.15 $2.46 $2.24 $1.80 .$20.72' .15.7/8 -11.3~ 7. 41

1. Allegheny Power.

6/80 2.36 2.11 2.29 2.22

21.32'-

19 1/4 11.5-8.2 ? .2 EAmerican Electric Power t3 iCentrall& South West 6/80 2.25 2.30 2.27 1.50 '16.50 -13 5/8- . 11. 0 :' . 6 '.1 L4~ Eastern. Utilities Associates 6/80

1. (. t.

1.78 1.75 1.60 27.33 12 5/8 '12.7 D7.8~ ,8.0l

5,,. General PubliciUtilities 6/80 0.80 2.11 1.56-0.00 22.69' 6 3/8..

0.0# t 1 en -: 6 -Middle' South Utilities .6/80 1.86 2.57 2.13 1.58 18.42' 12 5/8- -12;5: 6.8 9 ?i? - ' l 7 '. New England Ele'ctric 6/80 3.25 3.55 3.45 2.36 26.15 22 1/2 10.5 ' 6. 9 E.:- ~ 8 ..New England Gas & Electric 6/80 2.70-2.66 2.50 1.72 19.48- '15 1/2' 11.1 5,7 C. 9-

Northeast Utilities.

6/80~ 1.24

1.39 1.22-1.10 13.35-9' 12. 2.-

7.3 - 710- Southern Company-5/80 1.73 .-l.42 1.51' 1.54 -16.80 ,12 1/2 .12.3 .7.2 G. d11: ' Texas Utilities 6/80 -2.43 2.62 2.45 1.76 20.80- -17 3/4 9.9 L 7.3

5(

11.5;

17. 2 % '

Electric Holding. Company Average o -NOTE:. 1979. Year End-Book Value. Denotes dividend increase this month.

s. :

-Not'in'cluded in average,

m..

l, ' L.- __u _1.____ _m

37" ' ' - = -= 3;; w, . ;3 y, s;;;p m , qc; < - ^ + r ~' ifz +p? { '[' x c, y .F. ' (, 'y 3 ' + W ;- f 1.. 1(a gy, 07 ; a s.

! 3,

~ Q, * ' ' - e ,..E. r f',_ } Schsdsle120 9 ~ y, h+j ', (ANALYSISTOFELECTRIC~AND. GAS'UTILITYi ~ h -a E 9 ,g.

COMMON' STOCK HOLDINGS ~0Fi I

' Ei TWENTY' LARGEST:NON-SPECIALIZED MUTUAL FUNDS ,;;jjk Y i1965 -:1979- ~: .m ~ UtilityICommon Stock Holdings 1 Percent:of Total Common Stock Holdings: Fiscal' -Combination; iDistribution- .. Total, cElectric and.: , Gas _ v Electric Year .Cowpanies -Companies 1 and Gas ...1965 .9.02%: 1.36% '10.38% i 1966 J 8.441 -1.04-9.48 - ~ l1967' ~ ~ 4.44' O.74 5.18: =1968' 13;12. 0.50 3.62? l1969' 3.27: 0.41 3.68 ?1970>

5. 04 -

0.76-5.80 M .1971-4.06' O.31

4. s1972; 2;90-0.18 3.08.

-;.1973 2.64-0.20 -2.84, .1974-L2.15' O.24 2.39 .y 1975 2.91: 0.39 3.30 '1976 . 3.72 - 0.28 4.N .1977: 3.97 0.28 I.25-1978 -3.22 0'.26 3.48 -Q, l1979; 2.07 -0.25 2.32 ^ .Thecomhanies.analyzedare_th'etwenty-largestnon-specializedmutual.fundsat ?Decembery31; 1979 at which date the funds had a total net. asset value off T -'approximately;$16.6 billion' land' represented about-half'of the total assets of

the.mutualEfund industry.

The. funds: included are: l+ Affiliated Fund,JInc.

DreyfusiFund,.'Inc.-
Fidelity Fund,'Inc.-

,*+ Fidelity Trend-Fund, sinc. Fundamental _ Investors, Inc.' 1k: i+The} Investment.; Company of4 America 2

L+ Investors-Mutual; Inc.'

~ .n:

+ Investors Stock Fund,cInc.- -

/*+Iny'estors' Variable--Payment Fund Inc. g "*+Ma'ssachusetts Investors Growth: Stock Fund, Inc. ~

+ Massachusetts. Investors Trust

+ + ?*+ National ~Iny'estors Corporation-JPioneer Fund W 1*PuritanTFund,cInc.

Putn'am Growth Fund ' >

^

Putnam_ Investors Fund,11nck J*+T.cRowe' Price Growth' Stock FundnInc.,

^ ~ .a+UnitediAccumulative Fund- ^ i+ United Income 1 Fund 1 s%n.. J-- ,c. - ~, 4 Wellington Fund;'Inc. d 4 xs m ,a +Aem s ,1 12/31/79.: <t ' m% f+ Held"no.commonLatock in gas' distribution companies at 1 y L* Held noicommon stbckEinLelectric'or; combination companie' stat 12/31/79) p - o ',,; :: > h..y .n a m M [n 1 U 3 c v

c1

~ Y! ~[ y

A

.q. s V lj Q... > lhWk r d HO, }l. qq

(> *g 3; W, ;;7

NT: 'h

p

', '~ 5.l, '

~ ^ W . ;d $. 4y: + = was,.,y v s ~ y ~. - s ,3-y 4. ..c-y:, s. -. y + j - r my < m i 7 I b 1 4 "., f o. ,.. zs -E a -,,I ..y i s' -"'- = .s

-4..

SEhedule(21~~

i

'Af e- ~ L:,-V: e

p t.-

r .4 RATE OF: EARNINGS 1ON AVERAGE-TOT L. CAP.ITALIZATION- ) ~ i -. AVERAGE 0F. TWELVE LARGEST FOOD COMPANIES: - d; [ + 41970 - 1979-i ? M f: Rate of Earnings on ? Average . Total i LJ Year : Capitalization. ~ ~' 1970 11.4%. 1 1 1971 11.5 1972 11.5 H-1973: 11.9 l in i 1974' 12.3 j j. 4 1975 12.5 3 i F- '1976-13.4~ k; 13.2 ' 1977i d '1978 13.8 1; 1979 13'.7 ?

Companies--included in~ averages:

. Kraft-Inc. iEsmark Inc. ,lBeatrice Fobds.'Cor'poration j =:

General. Foods' Corporation

J l

Borden.. Inc.: -Ralston Purina~ Company i i ~ c ~CPC International' -; Consolidated Foods ' Corporation-i ,E +: 1 . General Mills,-Inc. e. Q ~ / ?. Carnation Company-(Nabisco,--Inc.& Xt ' %;# s m _ l Standard iBrands', TInc. w_ . I

k y

,3 ) 'T 1 'l -8 N 4 -O ,..9'L< ~ s N -.j lk,.; ? 1 s l j'[G k -'" i,:, ' l < ~ g a. .c (- j g; _.

7 g-g; 4yy

+ -..;n s. <. q w g. " ^ * < g .y e-s

l c?, m' ~ s. l^ - . x,, -- - - - + - v s- "~ s 9 r,w m - m, b ? .+, d. ; + " S- ~e s h + -w u ,.,

l 4-

' %m.fY c.,f l.. + n[. V i 1 ^ .9-3 7 k 1 3. ' + e, u-J ,s

a

,. v. ,~ , 3r-

.,s g.

w t ,(^ I 1 t [ .,'r.-- .'Q 1 i *, p ' ~ -:.4[ h- ,l'.d'.

~

g y + s n, m >c-

s -,

g ,1 s Schedule 221 a J yyN - x 1~*i. \\- ,,,,p ~, ".c .x ^ a .m-x Y 7'"'.. - ~ .fl. - 3 ~ m. a ~ t , o b.- n s. s ~ 4 AVERAGE.0F,FIVE LARGEST-TOBACCO COMPANIES: 'rt. 5 ,p, - - t 19701 ;1979 4' s f sl: ate of-4 Earnings on. s d- ' Average. - To tal -- b . ' Year' '. Capitalization G E1970[ 11.0% 4-11.3 '1971c c1972? 10.9 ^

1973-11.4 m.

?4 '1974 11.7- -1975: 12.0 (1976 12.2: 9 '1977' -12.4 g ~ 1978 14.1 i '1979 15.7 _ p ap Companies included.in averages: tRa_J.3Reynolds; Industries,-Inc. L 'American, Brands. 9 7 Philip.-Morris L Incorporated : E ~ ' 1 'Liggett1 Group Incorporated i s Universal Leaf;. Tobacco, Inc. s \\ L ( r ? r "_vg -# by ") ~ v + ..[' k ., 4 _j g' / -I-' ' ' - ';- 'q,'. 't

/

I ? v.% y t.* , c,,...g / s. 2 N,. h' ,r.

\\

( g'.f. - ,-,g.g; s

4v f' L..

-}., N 'T J ;2.

k s

u -; \\ '.. 5 i? f h. 4 .. I.7, ] I .I .'.-sJ.'5=. s i. t's.

.,. 8,

r ,i-3 - ( ,'tg.~ ?"'A ,~ '

-A n,

'ig.Sf p K,.W, # 4 iS ]-7*- r' ' -,y J.. ~ + g, ^ Y.w. .i /? p- .l < ^ 'y@<.~ s.

2..g:sL

+ _ ~ + ~ EQK %+, s w;.- p :' m.a m, Q;..;9,. L, ~7 t p'~j?* $_n.-- A+ '1 c.: s-.a c- = + W {-Ei P >. an >: su .. '.,u V

m- .. -g ---r ",1 ARb %I g ggg y . j oO') 1 14 TABLE 4.' ANNUAL RATES'0F PROFIT ON STOCKH0LDERS' EQUITY, BY INDUSTRY '[ Percent) Before income t ases 2/ After taxes industry IQ 2Q 30 4q 10 1Q 20 3Q 4Q IQ N E 1979M 1979 1979 1980 1979 1979 1979 1979 1980 1979 ~ All Manufacturing Corporatione 25.4 28.8 25.1 23.6 24.6 15.7 18.1 ' 16.3 15.7 15.4 teonderable Manufacturins Corporations 24.1 27.8 - 28.0 26.3 28.4 15.3 17.8 18.4 17.9 18.1 Pood and Findred Products - 20.3 24.7 26.1 20.9 20.3 12.2 15.6 17.2 13.8 12.8 Tcbacco Manufactures 30.7 30.0 33.6 29.3 32.3 18.5 18.4 21.6 18.4 21.2 Teat tle Mt11 PrcJucts ' 16.8 21.9 22.0 21.9 19.6 9.0 12.8 13.4 12.5 10.9 Paper and Allied Products 24.2 25.0 29.7 19.5 19.4 16.3 16.8 20.5 13.4 13.3 Printing and Pubitshina - 27.8 33.8 34.7 30.9 26.5 16.1 19.3 20.1 16.8 15.0 Chemicals and Allied Products 27.5 27.8 23.7 21.8 27.7 17.5 18.2 15.9 15.3 18.0 Industrial chemicals and synthettes t/ 26.6 26.5 19.0 17.6 25.0 - 16.8 17.2 13.3 13.6 16.1 Drugs 1/ 30.7 29.1 26.0 25.6 31.7 20.8 20.2 18.4 17.9 21.6 Petroleum and Coal Products 23.7 30.5 31.4 34.4 37.7 15.8 20.1 21.1 24.6 24.3 Rubber and Miscellaneous Plastics Products 22.8 21.1 13.7 9.2 12.5 14.1 13.4 8.8 5.6 7.7 . FN j i i j Other NorAurable Manufacturing Corporatione 22.6 22.7 31.1 25.6 20.7 12.6 12.7 19.0 14.3 10.5 Durable Manufacturing Corporations 26.7 29.8 22.1 20.7 20.5 16.2 18.4 14.0 13.4 12.6 i i stone, Clay and class Products 13.5 30.9 30.5 21.8 11.2 7.8 19.6 ?.'. 4 13.9 5.9 i Primary Metal Industries 20.1 25.9 19. Am 24.5 12.7 17.2 13.3 5.7 16.8 fron and steet 1/ 16.5 21.9 17.3 -4.3 18.8 10.2 15.6 11.7 -2.3 12.7 Monferrous metals I/ 26.1,29.3 23.1 24.2 33.1 17.0 a.0 15.8 18.2 22.9 I Fabricates Metal Products 26.7 31.2 26.2 24.3 26.1 15.6 18.9 15.9 15.4 16.6 Machinery, except Electrical 26.9 28.9 25.8 2% 7 22.7 16.4 17.R 16.0 17.2 14.1 Itectrical and Electronte Equipment 28.4 31.6 27.0 2m.5 27.0 17.2 18.6 16.4 17 6 16.0 fransportation Eqvfpeent 32.1 30.9 6.8 12.6

7. 8 20.0 19.1 5.2 7.9

1. 8

' Motor vehicles and equipment.- t/ 34.5 29.8 -3.1 >.4 -1.1 21.8 18.7 -0.5 3.5 -2.2 Atreraft, guided misslice and parts if 28.3 31.9 28.9 29.9 26.6 17.0 20.4 17.9 18.3 16.4 Inetruments and Related Products 27.4 - ?8.5 27.4 26.6 25.6 16.7 17.4 16.2 17.0' 16.2 Other Durable Manuf act.arlett Corporations 27.1 : 3 ?. 3 31.0 26.5 21.4 16.3 19.3 19.7 15.7 12.5 Ali Mlatas Corporations' '19.6 l.7 31.6 29.9 24.3

2.2 15.7 21.0 20.3 14.3 All Retsil Trade Corporations 19.4 27.0 26.8 ' 31.3

!sA 12.2 18.4 17.9 21.4 NA All bholesale Trade Corporations' 29.8 35.1 35.0 3n.1 28.1 19.0 22.6 22.l 18.2 16 ' ~ 1/ Included in ma Mr infustry above. j

j/ - Based on profit figure uht.h tecludes net income (toes) of foreign brandu m and L

equity la earninan -(tosse=1 of non-reneolidated subatalaries, net of forefin s amen. J/. Fome of the rates in thin volumn have been revised since their first appwerance. .! tee footnotes to Tables A-K. Source: - " Quarterly Financial Report for. Manufacturillge Mining and Trade Corporations ~ First Quarterf1980" published-by.the Federal Trade s Commission. i 4 w q

kh[ * 'g%gg4<@ ' y. ;,' Q 4, k)]h.., i g: [ ]' I' ,, j j l ~y $4. pg, ?. ; I 2 %q e , e

W q9.

w w [ 33 e - w, Q im g [ ( [g, Y-D ' g '"'7 M' ~ $jh ^ g ', ';,;jyd ; pl f. m ~;-w - y,- &p a r ~. s s+ m r a. .-t u.. . j w' g z.. gg gn",. w p. ' W. 4 t 1.c 4, +.C". sr9 - i

:T.:

.N, 2 T ,.s 14 l ) O . ; <. Aq 1 r g 7 _r a ;-#, 3 .c U9 ww' Q.. Ay f :p l -l " ' 'g 5 'e ~ s1. y P y. +gpy

w r

m. / cN[p ' .f fl q%..}. ? ( ' ECONOMIC DATA;ON OUTPUTi' PRODUCTION,lPRICES ' AND WACES ' POST WORLD WAR II to DATt* * ? 7 . ~..,, s -g JS-iM5. ~, m ' s (' ". 'y, ,.:( [ National: Product? - 1%7 = 100 ' + ,.'. Average'Hourlyv /, y 2 r ,..,,] cross (. m B., V;y g[,"h[P + s + s [ a

.4'V' 1972-oPrice

.~ Wholesale-Industrial .Corpcrate, Constructioni U: Earninga'inf ~ $ Q@ A 1Un'billiono)" Consumer-4 QM 3 e (Manufacturing 3 tLCurrent Price :, , Production' . Profits ~ Cost _ m .,C i# i 7 7,, 4

l,,, 7:O, Yea r'

$ iDollars:' / Dollarsi f4iindex ' Index ' index' .: After Taxes i - Indem" Industries' ' .(D) (E): .(F)-

(G)

<(H), (1), . ], * 'f1. -(A)l y(B) - m(C)" t e J? < a t 3 + .- t 4 ?58.5- " 62.' 3 t 35.01 . 28.8 /, 'H468.3i 66.9 .' 7 6. 5 " --- 3 9. 4 1 19.1- '% 45?

51.075[

'N ' *7 r 19469 iS).209.6': ' J$4477.0y m 54 - 1.2 17 [ .'=- - e- .1947.1 'c T232.8i

p a1948

1.259.1 487.71 172.1 82.8, 141.0 - 43.6. - 60 r

.1.328; 1 tR;,

i 'P '1 1949i 258;0 ' 490.7q - 71. 4 - 78.7' J38.8-33.9: ' 59 . r1.378; T: r a q ll - Jnk [. (~ CE_* j.., - 'M. .s. + _;T.. 48.9'. . ' 62 o1.44 : 119507 .286.2/ 2533.5' 272.1 81'8 44.9-' J42.3'

"673

-1.561 4- 'd'.< h: 77.8 J -91.1. 48.7' 4 . 9;1951' Ei. 1 330.27 576;5 S _" 1 A5 i. 3-W;' >, J

1952 P

~ ?347.2; )598.5 - o79.5 88.6 '50.6 J 36.9 l-

69' 1.74 T '

,a jl9531 ,366.1;

621.8:

80.1 l87.4 ~ 54.8 - 38.81 x70: + w 1.78( Z 1954. --366.3.

-613.7 80.5L 87.6 51.9 36.1:

701 'O 'M 1955:, 399.3' . 654.8 .80.2 87.8 l58.51 . 49.4 ; 72- '1' 86 c . Y Mi -..T 668.8 81.4' ' 90.7. 61.1-750.4 ' '76 ,1.951 .h,.

p. -b ' T J1956/
420.7^

1 >2.05J 'm 680.9 84.3? - 93.3 - '61.9' 47.9' .79l 1 13

1957-1 442.8';

{1959 i .486.51 '720.4~ ' 87.3 94.8 l64.8 - 61. 2 J ' 8 2 '. + 2.19 c O "' .' 67 9. 5 ' - l86.6-c 94.6. 57.9 - 1 47.9 ' .80' .2.11" se V/1 e1958L '448.9 - 1 d.[%E u a A; S.' b L736.81 88.7 .94.9 66.2 57.3: 82 r 2.261 d -1%0J

-506.0) s

.,2.32 a M. ~ 31961 e523.3-L 7 55.3 ' .89.6 94.5 66.7 58.4 r 83-e 2 > 1%2 ~ 563.8 ; '799.1 90.63 94.8-72.2 '67.0 - 86.

2.39?

' 1%3 ' 594.7 -830.7 91.7 94.5 76.5 71.0. . 87; 2.46.. ,N-l1%4' 635.7 s 874.4 92.9 94.7 81.7 ,82.4 : 1 90-: 2.53 7 M-19657 688.1- .925.9 '.94.5 ! %.6 " 89.2 .'107.11 45: " T 2.61 ; f 99.8' 92. J 1%6 : 1753.0' . -981.0 97.2" 99.8 .97.9 ' 2 a7 2, JC + 11,007.7 f100.0-100.0 100.0 100.0 100 2.83- /1%7 ; 4796.3 bv a1968~ '868.5 1.051.8 104.2-102.5-105.7 99.1: .105: 3.01 " ~. b 31%9 ,935.57 '1,078.8-V109.8 x106.5-110.7 94.O ' 114' ' 3.19 l .a '1970 - 982.4/ , 1,075.3 116.3 110.4 106.7 79.4l a122'

3.36 #

1971.' 1,063.4-1,107.5 121.3 113.9 106.8 ' 9 5.1, 130' ' 3. 56 " -6 9^ ';- < " - 1972/ 31,171.lf 1,17 1;1 125.3 '119.1 115.2 117.2' '139: ]LI3.81 J c1973 21,306.6 -1,235.0, -133.1 - 134.7-125.6, 144.0 ,148 - ' : 4.08.- s S1974 al,412.9. 1,217.8 147.7 160.1 229.3 -159.9. >173 -4.41' 4 '1975: 1,528.8-J1,202.3 161.2 174.9 117.8' 151.51 189 .74.81 i l129.8. 197.9. ?200 - - 5.22 - . f: y --.h ?1976 -.1,702.2 '1,273.0' .170.5l - 183.0". ~224.2 218 5.68' L '"..... s ~"'4 -1977: - 1,889.5 1,340.5 - 181.5 ; 194.2 138.2. a n s

f19782, 12,127.6"

.1,399.2 195.3 .209.3' 146.1 .260.7 '- 244. /6.174 > A -t > 309.2 277 -. 6.69 0. .1979 '2,368.8 1.431.6 ,217.7 235.6.. 152.2.. '333.5(a),. '290(a). '7.02(b); '.l i 3;k,i 198 0.y.. j 2,520.8 (a), 1,444.7 (a ) : -236.6(a)- 259.6(b) s 150. 2 (b)' y 3 ,, o e.~ - b

h* I

' "8 .(a) Throu9h March ~ 7(b) Through April' g, s 1 [G m m 6 [) ' Q^ i a .+ 9 / e h

hr

-(. 1e 1.- a )

n

-s .g. a. o 7 ) 4 j 'A2Y N a , ? ) t t .~ + i [; [ ' W-a. TM - M '

i e

r s44 .4

e v.

't m-EC0NOMIC DATA ON OUTPUT, PRODUCTION, PRICES AND WAGES - POST WORLD WAR II TO DATE ~ Explanatory Notes Column B " Gross National Product" is the market value of the output of goods and services produced by the nation's

conomy,.before deduction of depreciation charges and other allowances for business and institutional consumption of

. durable capital goods. Gross national product comprises the purchase of goods and services by consumers and govern-ment, gross private domestic investment and net exports. .C lumn C " Gross National Produc't in constant dollars" is derived principally by dividing components of the season-Elly adjusted current-dollar gross national product by appropriate price indexes. Column D - The.index measures the effect of price change on the living costs of-urban wage earners and clerical workers. Column E - The index is designed to shcw the general rate and direction of the composite of price movements in primary market. The term " wholesale" refers to sales in large lots, not to prices received by wholesalers, jobbers or distributors. Column F - The index measures changes in the physical volume or quantity of output of manufactures, minerals and

lectric and gas utilities.

Column G - The data represent Department of Commerce estimates. Quarterly data are seasonally adjusted. C91umn H - The data represent a combination of various construction cost indexes weighted by the relative importance of the major classes of construction. Column I - The hours and earnings series are based on reports of gross payroll and corresponding paid man-hours for full-and part-time production workers, construction workers, or non-supervisory employees. 5Y n: ec Source: Columns B and C from U. S. Dep't, of Commerce, Bureau of Economic Analysis, January 1976 issue; Columns D, g E, H and I data prior to 1962 from U. S. Dep't. of Commerce, Office of Business Economics, " Business N E. Statistics" 1971 Edition; Column F from 1973 " Economic Report c' the President", Table C 35. Later data oa from " Survey of Current Business". Column G from Federal Reserve Bulletins, yy

- M y.i 4 _%, , n ' = ' - 1. ~ ~ ~ 7E - ~ W,~ =~ ,t m:

+'.

j %2 .g. ' );;,),,., i r. ,r a,$ f,~ l Q ,.[

~t l

. lc, r :,.7 ; - 1 ,. +.

b,-

3.2 f A

'i

^ 9' &c: ~ ,.,. - %.t 2.j. 1 . 7< s m c :: A -- a .u o -e 4,.f' 4 4 .' ',/ r,,, I ,y.-P_ y m e", e-s g n .'.j . se'h. ,y..-- m. q u,,, 7 n-s 0' ^ e; -l ,a i .m 3 y .. e y a.m,,.. ' m>- ' / f ;, - e s 1 i h g .4 7 e ,g o - n, 5 ., r.c. .,k. p,:.yg.wij: /_ ..g.j. ? JERSEY CENTRAL: POWER '& : LIGHT. COMPANY ' L>

G Wu

+ s. ~ m,, .u. ', J. T .,n -., _._. m. a g:q r I

,g r

-y y .,q y 1 Estimated' Cost of Capitaliat Decemberf31, 1980.. - r-M, a e b p., a <.y e '3 r(( j j ..(Assuming;the' exclusion of TMI'-I. e'tc. from rate base) sjNk a e- .m.,;. ~,v. m m' &g +, Va y' y.. .>,,.c. s y + >i^ I ,,J w _, ~s.

c Proportion' e

4 s a Cost.of;

of Total M"
A

-Amount -Capital- ,Each Type,9 Costl ' ' ^ E's. .t'.' g - .(000,000)' ization: of Capital- -: Component. g s b-s. ^S e s 47.75% .;8.29% L3.96%. .(Long Term Debt; .$ '.890:. v,' .m,

m:

, i (. Additional LonglTerm Debt l s 100-5 37' 114'.50 . 78" ,f n' 4 , Preferred: Stock- ' 204 -10.94 .9.14 ' 1.00 ' r .u t

m. Comon. Stock.iEquity '

- 670 135.94- '18.75-19.50' ' 6. 7,4-L7i01l s v

-:.t

.$1,864. 100.00%

12;48-12.75%,

p s a + 2 ~ ~ ^ ' 4he: data: approximate the December.1980 situation:plus the assumed'. issuance and saleLof $100,000,000 of. ^ Tmortgage; bonds.-

~

s E s ( 'I e 9 # S e$ - n D* CL-t -C; - , V ' p c.

g a

t: w. t

e' 4

J r. '.). I ,,I 9 g

.i

(

gg,,-

, ~ 9-5' y n y 4 . +' f y. 1.-- M - i t 4 ' 5 L, 1 J a f~ } l, J .,}}

ML19338D551

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