ML20003H682

Annual Financial Rept 1980.Uniform Statistical Rept for 1980 Encl

ML20003H682
Person / Time
Site:	Crane
Issue date:	03/20/1981
From:	Dieckamp H METROPOLITAN EDISON CO.
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E ROPOLITAN COMPANY 1980 ANNUAL REPORT METROPOLITAN EDISON COMPANY IS A MEMBER COMPANY OF THE GENERAL PUBLIC UTILITIES SYSTEM 81 0 5 0 7 0 l %9.

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T H E M ET-ED SYSTEM sidiary of General Public Utilities Corporation, an electric utility holding company. Met-Ed's corporate headquarters are located in Reading, Pennsylvania. The Company serves more than 360,000 customers in 14 eastern and south-central Pennsylvania counties covering more than 3,274 square miles.

GPU, the parent company headquartered in Parsippany, New Jersey, has two other operating subsidiaries. Pennsylvania Electric Company, serving more than 510,000 customers in northern and western Pennsylvania, and Jersey Cc.ntral Power and Light Company, serving more than 704,000 customers in New Jersey. The three companies combined provide electric service to more than half the land area of the two states. They jointly own several of the System's major electric generating facilities.

GPU is one of the nation's largest publicly owned electric utillifes with assets of $5 billior;.

Its three compcnles sold about 32 million megawatt-hours of electricity in 1980, produc-ing over $1.8 billion in revenues.

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TABLE OF CONTENTS oa i euta c u=an i svii ~

Pages, Pages 1 - 1980 Financial liighlights 8 Consolidated Balance Sheets 2 President's Message 10 - Consolidated Statement of Changes In Financial Position 4 - Statement of Management 4 Management's Discussion and Analysis of 11 - L ng Term Debt and Capital Stock Financial Condition and Results of Operations 12 - Consolidated Statements of Retained Earnings 5 - Statement of Operations and Return on 12 Notes to Consolidated Financial Statements Common Equity 22 23 - Effects of Changing Prices 6 - Report of Auditors 24 - Company Statistics 7 - Consolidated Statements of income -

Inside Back Cover - Officers and Directors 1980 FIN ANCIAL SUMM ARY*

1980 1979 G Change I arnings \\ tailable f or Coninion Stock i snuf h 5

i9.979:

5 15.555 (164.0)

()perating Res enues (SiHH))

5 432.653 5 33s.136 2 s.0

( onst ruction l apenditures t 50no) 5 43.182 5

43.559

( 19.4 )

(iross I tihts Plant i 500 h 51.414.031 51.376 '6~

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( iener.tting ( ~apacity i N1W )*

• 2.144 2.144 Peak I osd \\\\ inter 1.\\1\\\\ i 1.503 1.4~1 14.3)

I nel and l'urchased Power ('ost t N1dls per Ku h )

16.98 13.3' 2'.0 (ieneration \\ln i ' )

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\\ leg.tu att-liiiur Sales d h ki) 7.813 s.Os4 13.4)

( ustomers 5ers ed i T car-1 nd )

361.662 353,265 0.9 1 mploy ces t T car-1 nd i 2.827 2.65'i 6.3 l

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A MESSA~E FRIM THE PRESCENT the containment building for th3 first tim 2 on July 22.

To Our Security lloiders, Customers and Employees:

That entry has been followed by six more to provide additional information to assist the cleanup program.

The Company has persevered while its financial Some 430,000 gallons of radioactive contamin-problems continued in 1980 as a result of the March ated water spilled during the accident has been decon-1979 accident at Three Niile Island (Th11) Unit 2.

tanunated and is now stored on site. Now, a new Actions by the Pennsylvania Public Utility sysum is nearly complete for removing and decon-Commission (PaPUC) during last N1ay and August, taminatmg the 600,000 gallons of highly radioactive which removed the undamaged Thil Unit I from water on the floor of the Containment Building.

base rates and dem. d 535 m.llion in emergency rate But, a tremendous task of cleanup still remains e

i relief, increased financial pressures. With both Thil ahead of us. Estimated costs of cleanup now stand Units not meluded in base rates, the Company is not at about 51 billion. That figure does not unlude the recovering the cap, ital and operating costs of its cost of placing the plant back into operation.

investment in the plants. Continuing delays by the Completion of the cleanup is not expected until 1985 Nuclear Regulatory 1ommission (N RC) in or 1986, insurance courage is for $300 million. A imtiating actions to restart Unit I have had further source of funding must be established to complete deleterious effects on our financial picture and have this critical task when the insurance funds have been deprived our customers of a low cost source of exhausted.

'""8 Y' The accident at Th112 and the activities The Company has no access to the capital associated with the cleanup provide an extensive markets and the available bank credit has been

.. lessons learned" opportunity of value to the dechnmg according to an established formula. As a national nuclear industry. In that vein, efforts have result all spending has been reduced to mimmum been directed toward the sharing of funding for the levels consistent with cash available from cleanup, both through the industry and the operations.

government. The expeditious cleanup of Th112 is a Return of Thil Unit I mandatory obligation of public interest to the plant We have consistently called the attention of the neighbors and also to the national interest in future public and the regulators to the inequity of Thil energy supply.

Unit I rem tining idle while similar nuclear units Hve been permitted to operate. Unit 1, prior to its Cost Controls shutdown at the time of the accident at Unit 2, had Niceting the financial challenge has impacted all one of the nation's best production records.

phases of the Company's operations. There have The net savings to the customers with Thil Unit I been major cutbacks affecting the transmission and in operation and reflected in rates would be about distribution expenditures, operations and S40 million per year. Aside from the economic maintenance costs, coal inventories and personnel ramifications, there is a need to recognize the reductions. These cutbacks initiated in September importance that the nuclear plant contributes to a represent $34 million through April 1981 and secure supply of electric power through a diversity eliminated some 250 non-TN11 jobs at Niet-Ed and of h> cal generation and outside purchases.

some 500 contractor personnel at Thil.

The NRC restart hearings that began in October Such reductions in construction, operations and after significant delays are now scheduled for maintenance expenditures and in personnel are conclusion by June 1981. If NRC approval for bound to undermine the reliability of the electric restart is forthcoming, Unit I may once again system and its required ability to provide the usual provide an economical source of electricity for our high level of service for our 362,000 customers, customers before this year is out. hieanwhile, the Without prompt rate relief to restore operating and Company has made efforts to have the unit in maintenance personnel and programs, the Company service earlier. In December, it requested the NRC faces increasing equipment faile e and a limited to allow the Unit to be restarted prior to the ability to respond to emergency conditions.

conclusion of the hearings. This request has not yet g. pg been acted upon.

During 1980, over 40% of the energy delivered to Cleanup of Thil Unit 2 customers was purchased from utilities to the north hieanw hile, at Unit 2, costs of maintenance and and west and was derived from coal. Since the engineering necessary to assure the health and safety accident such purchases have saved customers about of the workers and the public continues. Actual 590 millian compared to the cost of our normal pre-cleanup costs, to this point, have been substantitily accident purchased power sources. The availability covered by insurance proceeds.

of this coal derived energy has also shielded our Radioactive Krypton gas was vented successfully customers from the continuing extreme inflation in and safely last July, allowing for manned entry to the cost of oil.

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Stanagement Study Corporation Changes A comprehensive management study was ordered in last year's message, I reported the announced by the PaPUC and begun in December,1979 by plans to form GPU Nuclear Corporation (GPUNC)

Theodore Barry and Associates (TB&A). The and combine the managements of Sletropolitan management consultant firm engaged by the Edison Company and Pennsylvania Electric PaPUC, presented the completed study to the Company.

Commissioners in October. While confirming the Although approval was granted by the Securities seriousness of the situation faced by Stet-Ed, the and Exchange Commission (SEC) for GPUNC, study emphasized that the Company's problems are hearings before the PaPUC did not get underway solvable. It supported the return of T511-1 to until November 1980. Those hearings have b:en service and cited the need for financial relief through completed but the PaPUC is not expected to act on the rate process and financial assistance from these changes until late spring. The Federal Energy federal and state governments for the cleanup of Regulatory Commission (FERC) must approve the T511-2. The study also strongly emphasized that interlocking of officers and directors in the bankruptcy or reorganization is not a practical establishment of both GPUNC and the management answer, stating it "... is likely to lead to higher combination.

rates for customers" and "... would probably halt Conser ation and Load Slanagement the work on the cleanup of TS11 -....,

Load management practices that encourage Rrt2 Proceedings and Regulatory 51stters conservation and off-peak usage among customers 1980 was a year of considerable activity for the have succeeded in reducing the winter on-peak load Company before the PaPUC. In Starch, the by 37 megawatts. Part of this has been through the levelized energy cost adjustment was raised from 8.8 establishment of Energy 51anagement Committees mills per kilowatt-hour to 15.M5 mills per kilowatt-in business and industries, where another 84 such hour. Then in June, it was set at 19.1 mills to better committees were formed in 1980 to make the total reitect existing energy costs.

1,380. Residential Time-of-Day Rate efforts In Stay, the PaPUC agreed to the Company's resulted in the addition of 587 customers to the response to a show cause order that Slet-Ed's Time-Of-Day Rate.

Certificate of Convenience should not be revoked.

In July, the Company filed a request for a 576.5 Working Toward Reco ery million annual rate increase, for which hearines We have vigorously and aggressively pursued the were concluded late in January. A decision is'still resolution of our financial problems, the return to pending and expected by April 27.

service of T511-1 and the safe cleanup of T511-2.

In mid-February,1981, the Company filed a We have sought rate and energy cost relief for more special request for a two-month refundable than a year. We have instituted stringent cuts m all P ases of operation. We are pressing for the restart h

surcharge of 2.9 mills per kilowatt-hour to provide 54 million for emergency coal purchases preparatory f T511-1. We are arranging favorable replacement to a possible nationwida coal miners' strike. The power purchases to save our customers money. % e PaPUC allowed the surcharge.

are workmg to mamtam credit availabihty with the Our ability to serve our customers is directly 45-member consortium of banks. We are seeking dependent upon the PaPUC to provide rates aid in the cleanup of T511-2 from federal, regulatory sufficient to not only maintain the existing system and utility sectors, and we are working diligently but also sufficient to mest the future aspirations and with all public sectors to achieve understanding and needs of the territory we serve.

active participation in all phases of our recovery activities. We remain confident that the problems Financing are solvable.

The revolving credit agreement negotiated with 45 We express our appreciation for all of those banks in June,1979 remains the Company's sole customers who have responsibly paid their bills

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source of external funding.

despite the increased costs. We are especially proud The current credit available to Niet-Ed is limited of our loval employees who have responded to these to the value of the Company's liquid assets which difficult times to help to maintain the level of service are defined as 80% of the customer accounts we think our customers rightly deserve.

receivable, an assigned value of S20 million for nuclear fuel and the balance in our deferred energy account. The sum of these assets as of December 31, 1980 defined a credit availability in the amount of 5.86 million, but this amount is declining as the deferred energy balance is amortized. At year-end, Herman Dieckamp the Company had 563 million ofloans outstanding Acting President under this agreement.

Starch 20,1981 3

STATEMENT OF MANAGEMENT MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION The management of Nietropolitan Edison Company is AND RESULTS OF OPERATIONS responsible for the information and representations contained in the financial statements and other sections N diq W C W h e of this annual report. The financial statements have been prepared in conformity with generally accepted The Nuclear Accident at Three N1ile Island has had a accounting principles consistently applied. In preparing significant adverse impact on the earnings and financial x

the fmancial statements, management makes informed peition of the Company. As a direct result of this accident, judgments and estimates of the expected effects of events the Company is earning no return on invested capital and transactions that are currently being reparted.

aggregating approximately $550 million.

In the aftermath of the accident, the Pennsylvania Public To fulfillits responsibilities for the reliability of the Utility Commission reduced allowable annual revenues to financial statements, management has developed and exclude the capital and operating costs associated with maintains a sy stem of internal accounting control. This TN11-2 and TN11-1. This action resulted in a significant system is intended to provide reasonable assurance that decline in earnings because the operating expenses, assets are safeguarded and transactions are executed in depreciation and capital costs associated with the accordance with management's authorization and aforementioned assets are being absorbed by the common recorded properly to permit the preparation of financial shareholder.

statements in accordance with generally accepted The adserse financial results and continuing accounting principles.

uncertainties arising from the accident preclude the Company from issuing any securities. Consequently, the Tne accompanying financial statements and notes only available source of outside funding is short-term thereto disclose the effect of the nuclear accident on borrowings (see Note 4 to consolidated financial Starch 28,1979 at Unit No. 2 of the Three Niite Island statements). Short-term borrowings have more than Nuclear Generating Station (TN11-2). The accident has doubled from 530 million prior to the accident to an had a significant adverse impact on the earnings and average of $69 million in periods subsequent to the Snancial position of the Company in 1950 and 1979. In accident. At December 31,19SJ. short-term borrowings addition, ses eral significant contingencies and were 550 million against available credit of $73 million.

uncertainties, the outcome of which cannot be determined Expenditures for the cleanup aM restoration of TN11-2 at the present time, resulted.

are anticipated to agg egate $1.4 bution for the Company and its affiliates (of which the Company's share is $700 Reference is made to Note I to the accompanying million) a nd is estimated to continue through December 31, financial statements and to 51anagement's Discussion 1987. The Company, through December 31,1980, has and Analysis of Financial Condition and Results of incurred clean-up and recovery costs of 590 million. The Operations for further discussion of the effects and unamortized investment in the nuclear fuel core amounts to impact of the nuclear accident at Three Stile Island.

519 million. These costs have been partially offset by insurance proceeds of $101 million.

Coopers & Lybrand, independent public The Company and its affiliates araicipate recovering accountants.are engaged to examine and express an 5300 million of insurance proceeds (of which the opinion on the financial statements. Their opinion, w hich Company's share is $150 million), the maximum amount follow s, sets forth the contingencies and uncertainties available under their policy for property damaged at TN11-resulting from the accident and other issues.

2. The Company and its affiliates are uncertain as to the source of funding for cleanup and restoration costs in excess of such insurance coverage.

The Company has a rate inoease request pending before the PaPUC. Failure by the emmission to act in a positise and timely manner on this request could result in the inability of the Company to refinance its short-term borrowings and impair its ability to meet its obligations.

4

Results of Operations:

similar costs for TNII-2 were removed from base rates The results of operations as discussed below campare during 1979. Other factors contributing to the decline in 1980 with 1978. The year 1978 is used to provide the reader earnings include (i) the increase in operation and with a basis for comparison with 1980 restalts, as 193 maintenance expenses primarily resulting from inflation represents the last year o normal operations for the and additional expenditures at TN11 and (ii) increased r

Company.

interest expense.

Although operating revenues of the Company increased Following is a comparative statement of operations and by $123 million (39Pe) in 1980 over those of 1978, earnings return on average common equity for the years 1978 and available for common stock declined from S48 million to a 1980. The statement shows the cost components of Th11-1 loss of $10 million.

and TNII-2 that are being excluded from base rates and The substantialincrease in operating revenues from 1978 therefore incurred by the common shareholders and those to 1980 is primarily attributabic to the remery of higher costs associated with the operations oithe Company which fuel and purchased power costs in energy clauses. Such are included in rates. The statement shows that, net of additional revenues (5131 million) reflect the recovery of income taxes, T511-1 accounted for 59 million of costs in the higher energy costs incurred by the Company, and have excess of revenues and TN11-2 accounted for $14 million.

no impact on earnings.

Furthermore, the statement shows that, if non-earning The decline in earnings available for common stock be-operations were excluded, the electric system would have tecen 1978 and 1980 of $58 million is primarily the result produced net income of 513 million in 1980 and a return on of the regulatory response to the accident at Th112. As common equity of 6.2rt.

previously indicated, the Company is not recovering in its For a further discussion of events subsequent to the base rates the costs associated with T511-1 and T511-2. The accident at Three Stile Island see Note I to Consolidated capital and operating costs associated with T511-1 were Financial Statements. With regard to the effect of rernoved from base rates in the second quarter 1980 while changing prices, see page 22.

STATEMENTS OF OPERATIONS AND RETURN ON COMMON EQUITY (UNAUDITED) 1978 and 1980

.tfelropolitan Edison Company and Subsidiary Company Dollars in.tfillions 1978 (a) 1980(b)

Total Total Excluding Company Company Tall T.\\11-1 TA11-2 Plant Values (Net of Depreciation) 51,127 51,148

$596

$195

$357 Revenues 310 433 422 11 Energy Costs 101 185 185 Deferred Energy (10) 40 40 Other Operation and Staintenarce 75 96 86 12 (2)(c)

Depreciation 26 39 22 6

11 Taxes Other Than income Ta,es 25 32 32 Interest Expense 43 57 37 7

13 Total 260 449 402 25 22 Pre-Tax Income 50 (16) 20 (14)

(22)

Income Tax Expense 20 (12) 5 (6)

(11) income after Taxes 30 (4) 15 (8)

(11)

Allow ance for Funds Used During Construction 28 4

4 Preferred Stock Dividends 10 10 6

1 3

Earnings Available for Common Stock Per income Statement

$_ 48

$ (101 S 13 5 (9) 5(14)

Return on AverageCommon Equity 12.9'I

( 2.7 Pc 6.2?e (13.2 Ft (11.2 Fe ta) Operations and return un common equity pr 1979 represent the last pre accsdent year.

(b o T.ti11 costs mere excludedfrom the base resenues effectise kre I. I9Q The costs for T.tif-2. u hich was p aced is commercial operation in December 19't mere neser reflected in base resenues.

{cI Im tudes $6 mdlion ofoperation and maintenance <pendaures more than ofJset by reserse capacity credits.

5

Report of Auditors To the Board of Directors M:tropolitan Edison Company Reading, Pennsylvania We have examined the consolidated balance sheets of contemplates, among other things, the realization of Nietropolitan Edison Company and Subsidiary Company assets and the F.;uidation ofliabilities in the normal as of December 31,1980 and 1979, and the related course of btuness. The Company is currently not consolidated statements of income, retained earnings and receiving a level of revenues sufficient to assure its ability changes in financial position for each of the five years in to continue as a going concern. The continuation of the the period ended December 31,1980. Our examinations Company as a going concern is dependent upon obtaining were made in accordance with generally accepted adequate and timely rate relief, receiving financial auditing standards and, accordingly, included such tests assistance for the cleanup and restoration costs required of the accounting records and such other auditing for TN11-2, and maintaining and increasing the procedures as we considered necessary in the availability of credit under the revolving credit agreement circumstances.

(see Note 4 to Consolidated Financial Statements). The As more fully discussed in Note I to Consolidated eventual outcome and effect of the foregoing on the Financial Statements, the Company is unaole to consolidated financial statements cannot presently be determine the ultimate consequences of the accident at determined.

Unit No. 2 of the Three N1ile Island Nuclear Generating As more fully discussed in Note 1 to Consolidated Station (TN!!-2) and of the response of ratemaking and Financial Statements, the Company may be required to other regulatory agencies to that accident. Among the make refunds to customers for certain payments made contingencies and uncertainties which have resulted as a for coal. At this time, it is uncertain whether or to what direct or indirect consequence of this accident are extent such refunds will have to be made.

questions concerning:

In our opinion, subject to the effect,if any, on the a.

The recovery of the approximately 5338 million consolidated financial statements (the 1980 and 1979 investment in TN11-2; consolidated financial statements only with regard to the b.

The recovery of 58 million of costs incurred net of uncertainties discussed in the second and third insurance proceeds received, and the paragraphs above) of such adjustments as might have indeterminable amount of uninsated costs yet to be been required had the outcome of the uncertainties incurred,in connection with the anticipated discussed in the preceding paragraphs been known, the cleanup and restoration of TN11-2 to service; aforementioned statements (pages 7 through 21) present c.

The recovery of the approximately 5195 million fairly the consolidated financial position of N!ctropolitan investment in Three N1ile Island Unit No. I Edison Company and Subsidiary Company at December Nuclear Generating Station:

31,1980 and 1979 and the consolidated results of their d.

The recovery of the excess,if any, of amounts operations and the consolidated changes in their financial which might be paid in connection with claims for position for each of the five years in the period ended damages resulting from the accident over available December 31,1980,in conformity with generally insurance proceeds, and; accepted accounting principles applied on a consistent e.

Any action of ratemaking agencies with respect to basis.

any portion of the replacement pcwer coes for which current recovery is now permittei COOPERS & LYBRAND The accompanying consolidated finaachi statements hase been gepared in conformi y with generally accepted t

accounting principles applicable to a going concern which February 20,1981 1900 Three Girard Plaza Philadelphia, Pennsylvania 19102 6

CCNSOLIDATED STATEMENTS OF INCOME (Note 1)

Metropohtan Edison Campany and Fnbsidiary Company (In Thousands)

For the rears Ended December 31, 1980 1979 1978 1977 1976 Oper:: ting Reunues.

5432,653 5338,136 5310.581 5305,223 52 9.113 Operating Expenses:

Fuel 89,376 70,675 83,874 76,541 69,392 Pow er purchased and interchanged, net:

Afliliates (9,668) 1M (7,732)

(l1,438)

(2.721)

Others.

105,449 107,659 25.228 23.70'

",431 Deferral of energy costs net (Note 2) 40,081 (59,278)

(9.989) 7,132 (12,006)

Other operation and maintenance (Note 7) 95,441 79,481 75,100 62.800 61,190 Depreciation (Note 2) 39,145 37,707 25,485 23,910 22,176 Taxes. other than income taxes (Note 7) 31.436 22,682 25.290 24,176 20,654 Totals.

391,260 259.090 217.256 206.823 181,116 Operating income before income taxes 41,393 79,046 93,325 98,400 82,997 income taxes (Notes 2 and 6) 18.195) 10.265 27.462 31.229 23,962 Oper: ting income 49,588 68.781 65.863 67.171 59.035 Other Income and Dedactions:

Allow ance for other funds used during constructia (Note 3)

(788) 5 20,882 18,929 17.249 Other income. net 316 1.067 78 (1,000) 291 Income taxes on other income, net (Notes 2 and 6).

(171)

(646)

(29) 226 (213)

Total other income and deductions.

1643) 426 20S 3 18.155 17,327 Income Before Interest Charges 48.945 69.207 86,794 85.326 76.362 Int: rest Charges:

Interest on first mortgage bonds.

36,984 35.262 31,961 28,209 26,593 Interest on debentures 6,451 6,603 6.730 6.850 7 oru Other interest 13,900 8,917 3,818 2.397 522 Allow ance for borrow ed funds used during construction---credit (net of tax)(Note 3)

(4,546)

(3.873)

(6,665)

(5,115)

(4,439)

Income taxes attributable to the allow ance for borrow ed funds (Notes 3 and 6)

(4,154)

(3.576)

(7.657)

(5 C 7)

(4,929)

Totalinterest charges 48.635 43.333 28,187 26.494 24.751 Net 1 come 310 25,874 58.607 58.832 51.611 Preferred Stock Disidends 10.2W9 10.289 10.259 10.289 10.259 Income I Loss t after Preferred Stock Disidends 5 (9,979) 5 15.585 5 48,318 5 48.541 5 41.322 The accompanug n tes are an integral part of the consohdated finanaal statements 7

CONSOLIDATED BALANCE SHEETS (Note 1)

Sletropolitan Edison Company and Subsidiary Company (In Thousands}

December 31.

1980 1979 ASSETS Utility Plant (at originalcost):

In service (Note I)

$ 359,736 5 359,647 Insestment in Three N!ile Island Unit Nc, 2 Other 952,021 934.838 Totalin service 1,311,757 1,294,485 Less, accum ulated depreciation (Note 2) 277,369 241,985 Net 1,034,388 1,052,500 Construction w ork in progress 17.591 11,583 IIeld for future use.

11,576 12.579 Totals 1,063,555 1,076,662 Nuclear fue'(N.,te4).

73,107 58,120 Less, accumulated amortization (Note 2) 7,400 7,'99 Net nuclear fuel 65,707 50,72i Net utility plant 1,129,262 1,127,383 I

Imestments:

Other phy sical property, net.

135 164 Othe, at cost.

495 495 Totals 630 659 Current Assets:

Cash 1,153 2,137 Special deposits (Note 1) 17,251 2.747 Temporary cash investments 1,700 Accounts receivable:

A ffiliates 32 29 Customers. net (Note 4) 28,536 20,493 Other 13,763 7,412 Ins entories, at average cost or less:

N!aterials and supplies for construction and operation 19,917 15,03C Fuel.

9,2MM 19,60" Prepay ments.

1,389 942 Totals 93,029 68,408 Deferred Debits:

Deferred energy costs (Notes I,2 and 4) 42,418 82.499 Deferred costs-nuclear accident, net ofinsurance recoveries (Note 1) 7,639 30,670 Deferred income taxes (Not s 2 and 6) 7,049 5,001 Other 11.221 12.529 Totals 68.327 130,699 Total Awets

$1,291,248 S g _149 The a.companyng notn are an sntegral part of the consohJarcJ finanaal statements R

(In Thousands) 1980 1979 LIABILITIES AND CAPITAL Long-Term Debt, Capital Stock and Consolidated Surplus:

First mortgage bonds (page 11)

$ 450,214 5 450,462 Debentures (page I!)

78,740 80.720 Unamortized net discount on long-term debt (1,534)

(1,$86)

Totals.

527,420 529.596 Cumulative preferred stock-no mandatory redemption (page i l),

139,391 139,391 Premium on cumulative preferred stock 483 483 Totals,

139,874 139,874 Common stock and consolidated surplus (Notes I and 4):

Common stock (page 11) 66.273 66,273 Consolidated capitai surplus.

280,524 280,523 Consolidated retained earnings (Note 5) 21.625 31.604 Totals.

368,422 378.400 Totals.

1,035,716 1,047,870 Current Liabilities:

Debt dur within one year (page 11) 15,228 14,475 Notes payable to banks (Note 4).

50,000 68,000 Accounts payable:

A ffiliates 2,727 1,377 Others.

31,834 34,552 Customer deposits.

566 587 Taxes accrued (Note 6) 8,874 7.970 Interest accrued.

11,638 11,857 Other 8,036 7,614 Totals.

128,903 146.432 Deferred Credits and Other Liabilides:

Deferred income taxes (Notes 2 and 6) 99,817 110,63I U namortized investment credits (Notes 2 and 6) 21,035 18,200 Other 5.777 4.016 Totals.

I?s.629 132,847 Commitment and Contingencies (Note 1)

Totd Liabilities and Capital

$1.291.248 51,327,149 9

CENSCLIDATED STATEMENTS CF CHANCES IN FINANCIAL POSITION (Note 1)

Metropolitan Edison Company and Subsidiary Company (In Thousands)

Year Endcd December 31, 1980 1979 1978 1977 1976 Sources of Funds:

Operations:

Net income.

S 310 5 25,874 5 58,607 5 58,832 5 51,611 Principai non-cash charges (credits) to income:

Depreciation (Note 2) 39,145 37,707 25,485 23,910 22,176 Amortization of nuclear fuel (Note 2) 3,340 4,902 4,509 4,603 I nvestment tax credits, net (Notes 2 and 6) 2,116 (15,226) 13,330 7,158 1,450 Deferred income taxes. net (Notes 2 and 6).

(12,592) 42,078 20,466 4,663 14,646 Allowance for other funds used during construction (Note 3) 788 (5) (20,882) (18,929) (17.249)

Total from operations 29,767 93,768 101,908 80,143 77,237 Long-term debt 13,000 58,700 35,000 50,000 Bank borrowings. net (Note 4)

(18,000) 32,500 4,250 19,250 10,000 Decrease in w orking capital (excluding debt)(a) 23,371 9,447 Other, net 5.754 1,222 Total source of funds 30,521 149,639 j64,858 143.840 - il8359 Application of Funds:

Construction expenditures Utility plant.

28,195 34,128 77,455 81,454 73,517 Nuclear fuel.

14,987 19,431 10,202 20,049 16,807 Allowance for other funds used during construction (Note 3).

788 (5) (20,882) (18,929) (17,249)

Preferred stock dividends.

10,289 10,289 10,289 10,289 10,289 Retirement or redemption oflong-term debt 14,471 2,102 5,720 6,718 2,215 Dividends on common stock 7,000 48,000 49,000 39,500 Deferred energy costs, net (Note 2).

(40,081) 59,278 9,989 (7,132) 12,006 Deferred costs-nuclear accident, net ofinsurance recoveries (Note 1).

(23,031) 12,185 increase in working capital (excluding debt)(a).

24,903 18,916 1,374 Other net 5,231 5,169 2,391 Total application of funds 5 30,521 5149,639 5164,858 5143,840 $138,459 (a) Changes in components of working capital (excluding debt):

Cash and temporary investments 5

716 5 (4,266) $ 1,749 5 (146) $ 209 Special deposits 14,504 (5) 43 8

Accounts receivable 14,394 (7,741) 16,303 (8,592) 7,037 Iraentories.

(5,443) 8,481 (1,199) 4,659 129 Accounts payable 1,367 (17,744)

(3,896) 878 (1,565)

Taxes accrued (904)

(1,777) 8,566 (3,938)

(571)

Interest accrued 219 (830)

(1,686)

(876)

(1,671)

Other, net 50 499 (916) 1,475 (2.202)

Total.

S 24,903 $(23,371) $ 18,916 5 (9,447) GJM The accompanying notes are an integra' part of the conwlidated financial statements.

10

END-TERM DEDT AND CAPITAL STCCK Metropolitan Edisus Company and Subsidiary Company December 31, I980 (in Thousands)

Long-Term Debt:

First mortgage bonds - Series as noted (a):

I % due 1981-1984 961 Second Series due 1981 13,000(c) 1I % due 1981 (d) 3%% due 1982 7,800 9%9 due 1983 50,000 3%% due 1984 15,000 9%% due 1985 45,000 4%% due 1987 19,003 5

"c due 1990 15,000 4!Fedue1992 15,000 4% due 1995 12,000 5W due 1996 15,000 7 %due 1998 26,000 3%% due 1999 25,000 7I % due 2001 15,000 7?Fc due 2002 26,000 8%% due 2003 20,000 9 % due 2006 50,000 8%% due 2007 35,000 6 9 due 2008 8,700 9 9 due 2008 50,000 Sub-total 463,461 Current maturities.

(13,247)

Total 450,214 6

- Series as noted(b):

4%

4,200 6W 14,800 8%% duei. -

44,520 84% due l?8 17.200 Sub-total 80,720 Sinking fund requirements due within one year (l.980)

Total 78,740 Unamortized net discount on long-term debt (1,534)

Total

$527,420 Crpital Stock:

Cumulative preferred stock, no par value (stated value $100 per share),

10,000,000 shares authorized (1,393,912 shares issued and outstanding)(c):

3.904 S ries, i 17,729 shares outstanding, callable at $105.625 a share.

$ 11,773 4.35% Series, 33,249 shares outstanding, callable at SIN.25 a share.

3,325 3.85% Series, 29,175 shares outstanding, callable at 51N.00 a share.

2,917 3.80% Series, 18,122 shares outstanding, callable at 51N.70 a share.

1,282 4.45% Series, 35,637 shares outstanding, callable et SIN.25 a share.

3,5M 8.12% Series, 160,000 shares outstanding, callable at $107.59 a share.

16,000 7.68% Series G, 350,000 shares outstanding, callable at $107.48 a share.

35,000 8.32'i Series H. 250,000 shares outstanding, callable at 5108.24 a share.

25,000 8.12% Series I, 250,000 shares outstanding, callable at $107.59 a share.

25,000 8.32% Series J, I 50,000 shares outstanding, callable at $107.70 a share.

15,000 Total 5139,391 Common stock, no par value,900,000 shares authorized,859,500 shsa w=d and outstanding (Note 4) 5 66.273 (a) Substantially ali the utility plant of the Ccmpany is subject to the lien rf the mortgage.

(b) For the years 19C through 1995 ! based on debentures outstanding at Decer ther 31,1980) cash sinkingfund requirements with respect to these debentures will be $1.990.tMW) per annum.

(c) Interest rate 103'i of prime rate.

(dI iss ued a.,1;~!*JgeJ to bank s $40 million. II9 Series due October i. I 99I. as c ollateralfor borros ings under the revolving credit aereement, (see Note 4 to Consolidated Financial Statements 1.

(et if dividends upon any sha s of preferred stock are in arrears to an amount equal to the annual disidend. the holders ofpreferred stock wring as a class are entitled to elect a majority of the Board of Directors until all disidends in arrears hase been paid.

CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (Note 1)

Metropc!itan Edison Company and Subsidiary Company (In Thousands)

For the l' ear 5 Ended December 31, 1980 1979 1978 1977 1976 B: lance, beginning ofyear.

$31,604 523,019 522,701 523,158 521,336 Add, net income 310 25,874 58,607 58,832 51,61I Totals.

31,914 48,893 81,308 81,990 72,947 i

Deduct:

Dividends on capital stock (in cash)

Cumubtive preferred stock (at the annual rates indicated below):

3.90% Series (53.90 a share) 459 459 459 459 459 4.35% Series (54.35 a share) 145 145 145 145 145 3.85% Series (53.85 a share)

I12 112 112 112 112 3.80% Series ($3.80 a share) 69 69 69 69 69 4.45% Series (54.45 a share) 159 159 159 159 159 8.12% Series ($8.12 a share) 1,299 1,299 1,299 1,299 1,299 7.68% Series G (57.68 a share).

2,688 2,688 2,688 2,688 2,688 8.32% Series iI($8.32 a share).

2,080 2,080 2,080 2,080 2,080 8.12% Series 1(58.12 a share) 2,030 2,030 2,030 2,030 2,030 8.329 Series J (58.32 a share).

1,248 1,248 1,248 1,248 1,248 Common stock (not declared on a per share basis).

7.000 48.000 49,000 39,500 Totals.

10,289 17,289

,5 8,2 ba' 59,289 49,789 Halance,end of year (Note 5).

$21,625 531,604 323,019

$22,701 523.I58 l

l NOTES TO CONSOLIDATED FINANCIAL STATEMENTS l

1. Commitments and Contingencies Public Utilities Corporation (GPU). At December 31, l

Three Stile Island Nuclear Accident:

On N1 arch 28, 1980, total net investment by the Company and its i

1979, an accident occurred at Unit No. 2 of the Three affiliates in TN11-2 was approximately $661 million ($706 l

Stile Island nuclear generating station (TN11-2) resulting million investment less $45 million accumulated l

in significant damage to TN11-2 and a release of some low depreciation), excluding the unamortized investment of lesel radiation w hich published reports of governmental approximately 537 million in the nuclear fuel core, of agendes indicate did not constitute a significant public which the Company's share is approximately $338 million health or safety hazard. Thil-2 is jointly owned by the

($360 million investment less $22 million,,ccumulated Company,504; Jersey Central Power & Light Company depreciation) excluding the unamortized investment of (JCP&L),25%; and Pennsylvania Electric Company approximately 519 million in the nuclear fuel core.

l (Penelec),259; w ho are collectively owned by General Three Stile Island nuclear generating station Unit No. I 1

12 l

1 t

(TMI-1), which adjoins TMI-2, was out of service for a on repair of damaged property or construuion of other scheduled refueling and was not involved in the accident.

bondable property. Insurance proceeds of $14 3 million TMI-I is jointly owned by the Company and its affiliates remained on deposit with the Compary's trustee at -

in the same percentages as TMI-2. At December 31, December 31,1980. Such amount is recorded on the 1980, total net investment by the Company in TMI-I was balance sheet as special deposits and included in the approximately $195 million, including the unamortized aforumentioned insurance proceeds.

investment in the nuclear fuel core of $15 million. By The Company and its affiliates carried the maximum orders dated July 2,1979 and August 9,1979, the insurance coverage available at the time (5300 million)

Nuclear Regulatory Commission (NRC) directed that for damage to the unit and core and for decontaminatim TMI-I remain in a shut-down condition until resumption expenses. It is the Company's and its affiliates' belief tnat of operation is authorized by the NRC, after public the recoveries from the insurance companies will hearings and the satisfaction of various requirements set approximate the amount of the insurance carried as forth in such orders. IIcarings commenced on October estimated cleanup expenditures are expected to exceed 15,1980 before an NRC Atomic Safety and Licensing significantly the available insurance coverage.

Board. TMI-l is not expected to return to operation The Company and its affiliates do not know the extent, before the fourth quarter of 1981.

if any, to which the expenditures for repair and restoration of the unit to operation will represent plant improvements or other items that are capitriizable and Cost of Cleanup and Restoration: Current projections which may be recoverable in the future through rates provide for decontamination, including fuel removal, to charged to customers, by amortization or depreciation be completed in 1985, at a cost of $750 million in current charges. Moreover, the Company and its affiliates are dollars ($1 billion when adjusted for inflation of 10% per seeking financial assistance from the Federal government annum). Restoration of the unit (including replacement of and the utility industry. Although as set forth below, the the nuclear fuel core) is expected to take an additional Pennsylvania Public Utility Commission (PaPUC) has two years, at a cost of $260 million in current dollars expressed a contrary view with raspect to the costs of (5430 million when adjusted for inflation of 10% per responding to the TMI-2 accident, managem(nt believes annum). The estimated amounts do not include the cost that any loss suffered by the Company and its affiliates of modifications to meet post-accident regulatory for which they do not receive financial ass: stance, or requirements (estimated at $80 million) or the cost of reimbursement frcm suppliers or others, should be ordinary operation and maintenance of TMI-2 (estimated recoverable in rates. Moreov:r, it is management's intent at $170 million) expected to be incurred during this to seek to recover such costs in future rate and/orjudicial period.

proceedings. Under these circumstances, the amount of The above estimates are subject to major uncertainties, loss, if any, suffered by the Company and its affiliates including (a) the regulatory environment, (b) the full resulting from the TMI-2 accident is not presently scope of the challenges in decontaminating the reactor, determinable and, therefore, no provision has been made (c) the effect of government regulations on the issue of in their accounts.

waste disposal and (d) the reusability of major In its rate order of June 19,1979, the PaPUC components.

recognized that no claim for such costs had been made.

The Company, as of December 31,1980,in responding Nevertheless, the PaPUC stated: "The Commission is of to the accident at TMI-2, has deferred $90.5 million of the view that none of the costs of responding to the.

costs associated with the cleanup and recovery process. In incident, including repair, disposal of wastes and addition to the deferred cleanup and recovery costs, the decontamination are recoverable from ratepayers.These TMI-2 nuclear fuel core was retired in 1979 and its costs are and should be insurable." In its rate order of unamortized book cost of $18.5 million transferred to May 23,1980, the PaPUC again addressed this issue, deferred debits (deferred costs - nuclear accident). These without any request having been mcde by the Company deferred debits which aggregate $109.0 million have been with respect thereto, by stating: "With respect to the partially offset by the insurance proceeds of $101.4 recovery of cleanup costs through rates, nothing in this million received through December 31,1980.

order negates the statements of the Commission in the The Company's first mortgage bond indenture provides June 19,1979 order."

for insurance proceeds to be held by its trustee for On September 18,1980 the PaPUC issued an order reimbursement to the Company for either expenditures requiring among other things, that the Company " cease il

and desist from using any ovrating revenues for that (r ) depreciation charges (TN11-1,56 million annually uninsured cleanup and restoration costs" of TN11-2. In and rN11-2,511 million annually) are being charged to this order, the PaPUC state.d that "these cleanup costs es use, (b) the interest and preferred stock dividend and expenditures n t covered by insurance ultimately are components of these investments are being accrued and the responsibility of the Company's stockholders and/or (c) the earnings available for commen stock renect the the Federal government; however, they are not the loss of the return on the common equity component of iesponsibility of the ratepayers" and that the cease and that investment.

c'esist order is designed "to insure that ratepayer monies The GPU System is a member of the Pennsylvania-5eing used, currently or in the future either New Jersey-htaryland Interconnection (PJN1). The directly or indirectly to pay clea,-up expenses."

generating facilities of the member companies On September 26,1980 the Company filed a complaint cumulatively satisfy their capacity requirements. As a in the United States District Court for the Niiddlc result of the unavailability of both TN11 units, the GPU District of Pennsylvania seeking a temporary restraining System is unable to meet its obligations for its allocated order and an injunction against enforcement of the share of the PJN1 capacity requirements. Consequently, PaPUC's cease and desist order as well as declaratory the Company and its affiliates will be required to make relief. The Company alleged, among other things, that payments to other PJN1 members in the future.

the PaPUC's cease and desist order con 0icts with the Furthermore, until such time as TN11 or other Company's (i) obligations under the Atomic Energy Act replacement capacity becomes available, the GPU and rules, regulations and orders thereunder, (ii) the System will continue to be unable to meet its PJN1 operating license issued by the NRC for TN11-2 and (iii) obligation. In view of the association of such costs with the Company's duties under the Pennsylvania Public the accident at TN11-2, their ultimate ratemaking Utility Law to furnish and maintain adequate, efficient, treatment is uncertain. Should such future costs not be safe and reasonable facilities. On September 26,1980, the recoverable in rates, this could have a materially adverse District Court denied the Company's request for a effect on the future earnings of the Company.

temporary restraining order; the proceedings relating to the Company's request for an injunction are being held in abeyance at the Company's request.

Rate Proceedings: During the first quarter of 1979, the On October 16,1980 the Company filed an appeal of Company was granted a retail rate increase by the the aforementioned PaPUC order of September 18,1980 PaPUC which, among otNr things, redected in base to the Commonwealth Court of Pennsylvania and the rates its investment in TN11-2 and operation and matter is now pending in that court.

maintenance costs associated with the unit. On April 19, The Company does not know what effect these actions 1979, following the TN11-2 accident, the PaPUC of the PaPUC may have on its ultimate ability to recover established temporary rates for the Company, reducing uninsured TN11-2 cleanup costs from ratepayers. In the annual base revenues by amounts approximating the event of a final unfavorabk determination in operating and capital costs associated with its interests in administrative or judicia' praeedings, the Company, at TN11-2 that had been allowed in its pre-accident rate that time, would be required to make provision in its increase order. This action effectively revoked, prior to financial statements for the estimated losses that would becoming effective, the 546.6 million increase in bae result because of the TN11-2 accident. These losses would rates granted the Company on March 22,1979, returning have a material adverse effect on the earnings at d the rates to levels in effect prior to that rate order. On financial position of the Company.

June 19,1979, the PaPUC issued a rate order directing in order to finance the substantial expenditures that such temporary rates be made permanent.

required for replacement energy, cleanup and repair and On N1ay 23,1980 the PaPUC dismissed a show cause other costs resulting from this accident, GPU and its order it had issued regarding the revocation of the subsidiaries entered into a revolving credit agreement Company's franchise to conduct public utility operations.

with a group of banks in June 1979(see Note 4).

The PaPUC stated that it had found "no imminent and As indicated below, the operating expenses, foreseeable threat to continued provision of adequate and l

depreciation and capital costs associated with the reliable service at reasonable rates." In addition, the Pa-investment in TN11 I and TN11-2 are not being recovered PUC found in this decision that TN11-1 is not "used and from customers. Such depreciation and capital costs are useful in the public service" and prescribed temporary currently being reDected in the financial statements in base rates for the Company, effective June I,1980, 1

l 1

which removed the capital and operating costs ($27 29,1980 request for increased retail base rates. The staff million annually) associated with the unit from the -

of the PaPUC and witnesses for the consumer advocate Company's base rates. As discussed below, the Company have testified in these proceedings. The Company believes has filed complaints against these temporary rates.

that the level of rate relief recommended by the staff and He PaPUC's decision of 51ay 23,1980 further the consumer advocate for the Company could result in allowed for levelized energy cost rates that provided for the inability of the Company to refinance its short-term the full recovery of energy costs for the pericd June 1, borrowirigs under the revolving credit agreement and 1980 through December 31,1980. h1oreover, :he decision impair its ability to meet its obligations.

provided for the recovery of the then outstanding post-On April 15,1981, it will be necessary for the accident deferred energy costs over an 18 month perm, Cempany to effect substantial additional borrowings h the form of a surcharge, effective June 1,1980, to ths under the rewiving credit agreement in order to meet its Company's customers. In this regard the PaPUC stated:

obligations with respect to the payment of Pennsylvania "Those amounts are subject to audit and review by the state taxes. In the course of current rate proceedings the Commission and to a later determination that specific representatives of the agent banks of the revolving credit amounts of energy costs were imprudently or agreement (see Note 4) testified that it would be their unreasonably incurred. If the courts and/or the NRC recommendation that the bank group not substantially should ultimately conclude that hiet-Ed was imprudent increase its exposure by additional loans to the Company or negligent in its operation or management of Three so long as there is uncertainty concerning the resolution N1ile Island, then this Commission will take notice of of these proceedings. Accordingly, the agent banks have such determinations and their relevance to any portion of petitioned the PaPUC to modify its decision timetable for 4

the replacement power costs for which current recovery is such proceeding so as to provide a determination by the permitted today "

Commission prior to April 10,1981. On N1 arch 5,1981, On July 29,1980, the Company filed a new tariff with the PaPUC denied that motion but stated that it would the PaPUC requesting an annualincrease in retail base schedule pollings of the PaPUC Commissioners on all rates of $76.5 million. Of this amount $34.2 million issues for public meetings on April 3 and 10,1981.

pertains to operating and capital costs associated with The Company on October 27,1980 petitioned the Thil-l. The Company's petition requested an emergency PaPUC for the purpose ofimplementing an early interim increase of $34.1 million annually, effective no determination ofits complaint against the temporary later than September 1,1980, subject to a final rates prescribed in its hiay 23,1980 order and certain determination at the conclusion of the rate case. On other related matters. Such petition equests an increase August 28,1980, the PaPUC denied the Company's in annual revenues of $25 million. The Company request for emergency rate relief. On September 29,1980, proposed to account for such increase for the period June the Company filed a petition with the Commonwealth 1,1980 to the effective date of the modified base rates Court seeking to review and set aside the order.

prescribed in response to the complaint by restating the On July 29,1980, the Company filed a complaint with deferred energy balances and thereby retroactively l

the PaPUC with respect to the temporary rates increasing the Company's base revenues. I~urthermore, established by the PaPUC by ;ts order of 51ay 23,1980.

the Company proposes to reduce its rate increase request The complaint alleges that the PaPUC's order of 51ay of July 29,1980 by any amount awarded with respect to 4

23,1980 deprives the Company of the opportunity to this petition.

receive sufficient rever.ae to provide for its operating and The PaPUC, on December 18,1980, approved an capital costs, to assure confidence in its financial energy cost rate for the Company which provides for the integrity, so as to maiqtain its credit and ability to attract current recovery of energy costs expected to be incurred capital, and to provide a return commensurnte with during the period January 1,1981 through December 31, returns on investments in other enterprises having 1981.

corresponding risks, and is, therefore confiscatory and inconsistent with statutory and constitutional requirements.

Investigations: On January 23,1980, the NRC imposed By an order dated October 16,1980 the administrative civil penalties against the Company of $155,000 for law judge consolidated for hearing purposes the safety, maintenance, procedural and training violations at Company's complaint against the temporary base rates Th11. The NRC has 60 stated that, depending upon the fixed by the PaPUC's order of hlay 23,1980 with its July findings of continuing investigations into the Th11-2 15

accident,it may take additional enforcement action such rehabilitate Th11-2 and (iii) the PaPUC's decision with as assessing additional civil penalties or ordering the respect to the ultimate recoverability from ratepayers of suspension, modification or revocation of the Company's the replacement power cuts neecssitated by the license to operate TN11-2.The Company does not know unavailability of Thil-l and Th11-2.

what the ultimate outcome of this matter will be.

On October 30,1979, the Presidential (Kemeny)

Commission on the Accident at Three blile Island issued Litigation: As a rcM of the accident, the Company, its report. The report states,in part, that its and/or its affiliates, havs been named as defendants in

" investigation has revealed problems with the ' system' various law suits. The suits include (i) individual suits as that manufactures, operates and regulates nuclear power well as purr.ted and actual class actions for personal plants" and the <hort-comings which turned the incident and property damages (including claims for punitive

nto a serious ac.ident "are attributable to the utility, to damages) resulting from the accident and (ii) suits to suppliers of equipment and to the federal commission enjoin the future operation of Th11-2.

that regulates nuclear power " The NRC's Special The suits described in (i) abm involve questions as to Inquiry Group (Rogovin) and the U.S. Senate whether certain of such claims, material in amount and Subcommittee on Nuclear Regulation (Hart Committee) arising out of both the accident itself and the cleanup and issued the results of their investigations of the accident at decontamination efforts are (a) subject to limitation of TN11-2 on January 23,1980 and July 2,1980, liability set by tlie Price-Anderson Act; and (b) outside respectively. Their conclusions with respect to these the insurance coverage provided pursuant to the Pra matters were similar to those of the Kemeny Anderson Act.These questions have not yet been Commission.

resolved.

In its order dated June 19,1979, the PaPUC ordered a la February 1981, the insurance companies and comprchensive management audit of the Company, representatives in the class actions reached an agreement Penelec and GPU, including an examinatio : of the for the proposed settlement of the class action claims for financial viability of the Company and GPU and economic losses resulting from the TS11-2 accident. If the decisions related to the construction, mabtenance and settlement agrement is approved by the court in which operation of T511-2. On October 3,1980 the report of the th: class actior claims are pending, theinsurance management audit was filed with the PaPUC. The report companies wo M establish a fund of $20 million for stressed the Company's and its affiliates' critical financial economic loss.tims and a separate fund of 55 million position, but indicated that the problems facing GPU can for public healt.. purposes. Earlier, the court had held be solved. The report cites the need to solve GPU's major that personalinjury claims (other than for medical financial problems through rates and financial assistance det< etion services) could not be pursued in class action from the federal / state governments or the utility p oceedings and the February 1981 agreement does not industry. In addition, the report states: "The oeal with such claims.

uncertainties associated with bankruptcy are sufficiently Class suits for damages on behalf of purchasers of great and pose risks-risks that cannot be completely GPU common stock during the period August 25,1975 quan'ified-to ratepayers, regulators and investors that through April 1,1979 have also been instituted against they should be avoided."

GPU and certain ofits directors as a result of the The Company does not know what effect,if any, these accident. These suits have raised questions, which have reports will have upon it or its affiliates.

not yet been resolved, as to whether certain claims are Other investigations and inquiries into the nature, beyond the insurance coverage for directors' and officers' causes and consequences of the'lN11-2 accident liability carried by the System companies. The directors commenced by varion federal and state bodies are have filed a third-party complaint against the insurance I

continuing. The Company and its affiliates are unable to company providing such primary insurance coverage.

estimate the full scope and nature of these continuing On Starch 25,1980, the Company and its affiliates investigations or the potential consequences thereof to the filed a complaint against the supplier (and its parent) of in estors in the securities of the Company and its the nuclear steam supply system and associated services, affiliates. The Company and its affiliates are also unable training and procedures for T511-2, for damages suffered to determine the impact, if any, the results of such by the Company and its affiliates as a result of the investigations may have on (i) the proceedings to return accident. The complaint alleged that the damages TN11-1 to operation (ii) the efforts to cleanup and incurred were in excess of $500 million and that very 1

16

l substantial future damages re expected. On July 18, The remainder is provided by a government indemnity.

1980, the defendants answered the complaint denying Based on its ownership interest in two nuclear reactors, liability and seeking $4.1 million, plus finance charges, the Company's maximum potential assessment under from the Company and its affiliates for services rendered these provisions would be 55 million per incident but not and equipment allegedly provided under the contract for more than $10 million per calendar year for claims the TMI-2 nuclear steam supply system.

covered by this insurance.

The Company and its affiliates are presently unable to The Company's and its affiliates' private insurance estimate the likelihood of an unfavorable outcome on any under Price-Anderson with respect to TMI 2 provides of the matters set forth in the preceding paragraphs or that coverage is reduced by claims paid but is subject to their financial exposure with respect thereto.

reinstatement to original coverage limits upon approval On December 8,1980, the Company and its affiliates by the insurance carriers. The Company and its affiliates filed a claim with the NP C for damages, estimated at have applied for such reinstatement but are unable at this about 5 t billion, resulting from the accident. The claim time to ascertain whether or when such reinstatement will alleges that the NRC violated its statutory and regulatory be approved. The NRC has informed the Company that duties to warn nuclear plant licensees of defects in the failure by it to obtain such reinstatement could result equipment, analyses, procedures and training at nuclear in the suspension or revocation ofits license to operate facilities. The claim also charges that, following a similar TMI-2.

incident at a nuclear power plant operated by a non-affiliated utility which the NRC had investigated, the NRC failed to take and recommend appropriate action and to warn the Company and other licensees of similar Coal Purchase Costs: In January 1977, the PaPUC reactors of any defects. The claim seeks to recover the issued amended complaints asserting that the Company cost of cleanup and restoration, replacement power costs, made payments in 1974 for coal that were 59.8 million in lost revenues and irareased financing costs. The NRC has excess of those required by its contracts, and that such not yet responded to the claim.

excess payments we' e without justification and directing the Company to show cause why it should not be required to refund this amount to its customers. The Company Insurance: The property damage insurance, and the believes that the payments which it made were justified

$300 million limit of coverage, was applicable to both and that there is no basis for requiring such refund, and it TMI-l and TMI-2. This property insurance had been so responded to the complaint, reduced by claims paid. The insurance carriers have During the spring of 1980, the PaPUC upheld in part reinstated the original coverage limits for TMI-1. With the complaint against the Company and ordered the regard to property insurance for TMI-2, coverage has Company to refund to its customers $3.7 million plus been reinstated only for possible damage which might interest at 6% per annum, or an aggregate of 54.7 million.

result from a non-nuclear accident during the unit's On May 23,1980, the PaPUC directed the Company to restoration period. Additional property damage insurance reduce its deferred energy costs balance in satisfaction of for TMI-I of up to 5375 million was obtained by the such refunds. Effective May 1980, the Company recorded Company and its affiliates through membership in such adjustment, net of related tax benefits of $2.1 Nuclear Mutual Limited (NML). As members of NML, million. The Campany has appealed the PaPUC's the Company is subject to an annual assessment of up to decision to the Pennsylvania Commonwealth Court.

14 times its annual premium, or $9.7 million, in the event in November 1978, the PaPUC issued a further j

of an incident at a nuclear plant of any member company.

complaint asserting that the Company incurred excess of any member company.

costs of $4.6 million for coal purchased during 1975 and The Price-Anderson Amendments to the Atomic that such excess payments were withoutjustification and Energy Act limit liability to third parties to $560 million directed the Company to show cause why it should not be for each nuclear incident. Coverage of the first $140 required to refund this amount to its customers. Such million (raised to $160 million following the accident) of complaint was based on an audit report prepared by the such liability is provided by private insurance. The next PaPUC staff. The Company believes that the payments i

5355 million is provided by assessments of up to the limit which it made werejustified and that there is no basis for l

of $5 million per nuclear reactor per incident, but not requiring such refund, and has so responded to the more than $10 million per reactor in any calendar year.

complaint.

t l

l 17

s

. The Company is unable at this time to predict the and minor replacements is charged to appropriate outcome of these matters.

operating expense and clearing accounts and the cost of renewals and betterments is capitalized. The original cost of utility plant retired, or otherwise disposed of, is Other: The Company's construction program, which charged to accumulated depreciation.

ext:nds over several years, contemplates expendittires of approximately $45 million during 1981. In connection with this construction program, the Company has Operating Revenues R:venuet are generally recorded incurred commitments.

on the basis of billings rendered.

The Company is engaged in negotiations and,in certain instances, litigation with various suppliers relating to the latters' claims for delay or termination charges or Deferred Energy Costs: The Company follows a policy increased fees which such suppliers assert result from the of recognizing energy costs in the period in which the Company's revisions of its construction plans and related energy clause revenues are billed (See Note 1).

schedules and/or from the increased scope of supply. The Company's management does not expect at this time that such negotiations and litigation will result in any material Depreciation: The Company provides for depreciation increase in costs that would not be valid costs properly at annual rates determined and revised periodically, on recognizable through the ratemaking process.

the basis of studies, to be sufficient to amortize the The Company has cancelled pla is for its Berne original cost of depreciable property over estimated generating station. At December 31,1980, the remaining ser-ice lives, which are generally longer than Company's investment in the project was approximately those employed for tax purposes. The Company uses

$6.4 million, of which amount $3.8 million represented depreciation rates which, on an aggregate composite investment in lar.d and $2.6 million prelimi tary licensing, basis, resulted in an approximat: annual rate of 2.97%,

environmental and engineering studies. In its July 29, 2.95%,2.84%,2.80% and 2.75%, for the years 1980,1979, 1980 rate increase application, the Company asked the 1978,1977, and 1976, respectively.

PaPUC for authorization to amortize it.a investment in the project, subject to disposition of the land, over a period of five years, and for the inclusion of the Nuclear Plant Decommissioning Costs: In accordance unamortized portion in rate base. There can be no with ratemaking determinations, the Company is charging assurance that such treatment will be granted.

to expense amounts intended to provide over its service The Stony Creek pumped storage project has been lives for the decommissioning ofits share of the cancelled byits non-affiliated principal sponsor. At radioactive components ofits nuclear umts December 31,1980, the Company's investment in the (approximately 524 million in then current dollars). In project was approximately 52.6 million. In its current accordance with ratemaking requiments, these charges rate proceeding, the Company has asked for make no prousion for possible inflation in decomm,ssionmg costs durmg the period prior to authorization to amortize such investment over a period i

of five years and for the inclusion of the unamortized decommissioning but are npected.o be subject to portion in rate base. There can be no assurance that such modification to take cogrJaance on that factor.

treatment will be granted.

Amorti:ation ofNuclear Fuel: The amortization of

2. Summary of Significant Aeccunting Policies nuc!:ar fuel is provided on a unit of production basis.

General: The consolidated financial statements include Rates are determined and periodically revised to amortize l

the accounts of York flaven Power company, a wholly-the cost over the useful life. Future handling costs for the owned subsidiary company.

spent TMI nuclear fuel will be provided for when it is the general policy of the Company to record required.

additions to utility plant at cost, which includes material, j

labor, overhead and the allowance for funds used during l

construction (A FC). The cost of current repairs (except Income Taxes: GPU and its subsidiaries file those related to.he nuclear accident described in Note I) consolidated Federal income tax returns. All participants

(

i

$g

in a consolidated Federal income tax return are severally current increase in utility plant to be recognized for -

liable for the full amount of any tax, including penalties ratemaking purposes and represents,in this fashion, j

and interest, which may be assessed against the group.

current compensation, AFC is not an item of current cash -

Beginning with the year 1979, GPU and its subsidiaries income;instead, AFC is realized in cash after the related -

changed the method of allocation of Federal income plant is placed in service by means of the allowance for taxes. The effect of this change is to allocate the tax depreciation charges based on the total cost of the plant, -

i reduction attributable to GPU expenses among its including AFC.

subsidiaries in proportion to the dollers of average During 1980, tiie Company recorded a Federal Energy common stock equity investment of GPU in such Regulatory Commission compliance audit adjustment to subsidiaries during the year. In addition, each subsidiary reverse approximately $1 million of previously accrued will receive in current cash payments the benefit ofits A FC.

own net operating loss carrybacks to the extent that the To the extent permitted in the ratemaking proceedings other subsidiaries can utilize such net operating loss of the Company, the income tax rcductions associated carrybacks to offset the tax liability they would otherwise with the interest component of AFC has been alloccted to have on a separate return basis (after taking into account reduce interest charges and, correspondingly, have not any investment tax credits they could utilize on a separate reduced income taxes charged to operating expenses.

eturn basis). This method of allocation does not allow Pursuant to such rate orders, the Company employs a net any subsidiary to pay more than its separate return of tax accrual rate for AFC.

liability as ifit had always filed separate returns.

The Company has accrued AFC using rates which, on The revenues of the Company in any period are an aggregate composite basis, resulted in annual rates of dependent to a significant extent upon the costs which are 8.78%,7.53%,7.59%,9.50% and 9.25% for the years recognized and allowed in that period for ratemaking 1980,1979,1978,1977 and 1976, respectively.

purposes. In accordance therewith, the Company has employed the following policies:

4

4. Short-Term Borrowing Arrangements Tax Depreciation: The Company generally utilizes In June 1979, GPU and its subsidiaries entered into a liberalized depreciation methods and the shortest revolving credit agreement with a group of banks, depreciation lives permitted by the Internal Revenue scheduled to expire on Octob~,1981, under which they Code in computing depreciation deductions and had available, at December 3i,1980, $292 million of-provide for deferred income taxes where permitted in credit, of which $169 million (5156 million of short-term the ratemaking process. However, in 1980, with respect borrowings,513 million of first mortgage bonds due to TMI-2, the Company elected to utilize straight-line October 1,1981) has been utilized for outstanding tax depreciation.

borrowings. Borrowings under the agreement are renew able at six month intervals, the next such date being April 1,1981. Such available credit may be increased to Investment Credits: The 3' Mvestment credits are 5412 million upon the approval of banks holding 85% of being amortized over a 10-yu ceriod while the 4%

the notes outstanding. Subject to the overall system limit, end 10% investment credits are being amortized over which is less than the total of the individual limits of the the estimated service lives of the related facilities.

Company and its affiliates, the Company is effectively limited to $86 million (including 513 million of bonds sold to the banks in January 1980) of which 563 million was utilized at December 31,1980. The agreemem

3. Allowance for Funds Used During Construction provides for a commitment fee of one-half of one percent The applicable regulatory Uniform System of Accounts per annum of each bank's total commitment (w hether provides for AFC which is defm' ed as including the net used or unused). Interest rates on such borrowings range cost during the period of construction of borrowed funds from 105% to 111% of the prime rate.

(allowance for borrowed funds used during construction)

In light of the actions taken by the PaPUC on May 23, used for construction p.aposes and a reasonable rate on 1980 and August 28,1980, the banks advised that they do other funds (allowance for other funds used during not expect the Company to borrow in excess of an t

construction) when so used. While AFC results in a aggregate amount equal to (i) 520,000,000 (the value i

19

~

ascribed by the banks to the uranium the Company has sin uittions

- pledged to them as collateral)(ii) the amount of the Company's deferred energy account which amount is Igne 1979 1978 1977 1976 anticipated to decrease from time to time, and (iii) 80%

Operating income before me me taxes 5 41 5 79 5 93 5 98 5 83 ~

of pledged acceptable short-term liquid assets to the O' * " ' * * ' " *

• I I

IU banks, such as accounts receivable. They also advised in Totals 41 80 94 97 83 any event that borrowings under the aforementioned formula should not exceed $105 million. On November interest expense 157:

(31) 93)

(37)

(34) 14,1980 the Company pledged its customers accounts Book income subject receivable as collateral for loans under the revolving to income tas 5

5_g $J

3) J 5_H credit agreement.

GPU has guaranteed all borrowings outstanding under income tas at the revolving credit agreement. As collateral for such statutory rate (a) 5 (7) : $ 14 5 25 5 29 5 24 guarantee, GPU has pledged the common stock of all its Escess of tas oser book subsidiaries including the Company.

depreciation (now The Company has secured its notes under the revolving through portion) credit agreement by pledging certain nuclear fuel in the (N te 2) i2)

(3)

(6)

(3)

(4)

Am rtization of process of refinement, conversion, enrichment and fabrication as collateral. Such nuclear fuel was recorded,

• ',*"*[*

' e 2h m

(O' m

(0 m

,n d

on the December 31,1980 balance sheet, at a cost of Allocated share of con-520.7 million. In addition, the Company has pledged $40 solidated tas return million of first mortgage bonds as collateral for its benent (Note 2) 121 (2)

(1) indebtedness under the revolving credit agreement and Other adjustments

-(3) - - -

2 2

I has also pledged its customer accounts receivable ($28.9 income tas expense million at December 31,1980), as noted above.

(credit) 5'12 57 5 20 5 25 5 19

' Die revolving credit agreement contains a provision for Effectise income the immediate payment of the indebtedness involved upon tas rate ibW 24%

39%

.12 1 39%

the occurence of an esent deemed by specific raajontie.

=

of the lenders to have a materially adverse effect on the g

q,,,,

,,,,,,y, g f, borrow cr.

,, a There can be no assurance that the notes under the g,,cecentage retarwig sig@dy iny. acred by fier.n=ent revolving credit agreement will be renewed or that the 4,ffer,nca as indicaird by reconcaiarion in terms ofdonars a! oie.

agreement will be extended beyond October 1,1981.

The maximum aggregate amount of bank borrowings outstanding at any montbend during 1980 was $b6 Income tax expense is comprised of the following:

million. For the ycar 1980, the average daily amount tin nations outstanding wa approximately 570 milli n, having a weighted average interest rate of 17.1%. Bank borrowings 19ao 1979 1973 1977 1976 outstanding at December 31,1980 aggregated $50 million Federal income tas 52 5(17) 5(8) 513 56 having a weighted average interest rate of 24.2%.

State income tas 2

6 2

The maximum aggregate amount of bank borrowings income tases on other

'nc me, net i

I outstanding at any month-end during 1979 was $98 I"'

million. For the year 1979, the average daily amount b ble o e outstanding was approximately 555 million, havmg a Iowance for borrowed weighted average interest rate of 14.4%. Bank borrowings funos (Note 3) tai (4)

(s)

(6)

(5) outstanding at December 31,1979 aggregated 568 million Pr sion or ta having a weighted average interest rate of 16.9"e.

(refundable) til (20)

(14) 13 3

5. Consolidated Retained Earnings Deferred income tases. net (13) 42 21 5

15 In accordance with the Company's supplemental Curr t mi tment l

indenture dated March N 1952,53,360,000 of the balance of the Company's retamed earnings is restricted as to the Amortization of accu-payment of dividends on its common stock. At Deceraber mutated investment 31,1980,518,265,000 of retained earnings was available credits ali (O

(1)

(O (I) for declaration or payment of dividends on the

,,com,,,,

Company s common stock.

espense (creditisil21 57 520 525 519

6. Income Taxes ca, guerer,,,,nagw,,jp,,o, years'inintment tax credits resulting Examinations of Federal income tax returns through from net operar,ns losses. These amounts are reflected in unused 1978 have been completed.

imes tmen' <redi's-Income tax expense for the years 1976 through 1980

• C""'d '"'"'*'s"'2 mdhon of w hich $1 milhon. 313 m

"' *d"' "d"bl'I "* /"""d '"/"'""

3 ears aggregate

. was less than the amount computed by apply.ing the mdl,on and $2 m,uion cy,,re in ion nu.19%nd 19n.

statutory rate to book income subject to tax as follows:

respecriirty.

20

The provisions for deferred income taxes, net, result (In Afillions) from the following timing differences:

January I,1980 January 1,1979

//n Afillionsi Actuaria! present values of accumulated benefits:'

j 1980 1979 1978 1977 1976 Vested 560.2 554.8 I

Liberalized dep.aciation Noniested 7.5 6.4 (Note 2)-

567.7 561.2 Federal 59 515 511 57 5

Net assets available b!"I' for benefits

$59.5 551.0 Deferral ofenergy costs 1Notc 2):

• Represents benefits as of the date of the evaluationfor current Vederal iI8>

28 4

(3) pankipadon in the plans, based upon anmptions ofcontinuation of State (1)

(l)

I (I)

I

'"E' I "'"' 0' "" P"""'!"" ""'# "*'*"I """*'"I GKr. futuN I'"'"'

' * " 5

,,",, g,,.gagg;;,',,',"f,",",y, p a,,

,"",,',",',",'g

,,333.4,"S""# E",_y Other (3) 3 g

7go,,,4 33 Totals

$il3) 542 52l 55 515 r d:>n at wuarv l.19M and 1979. respectisely.

The assumed rate of return used in determining the actuarial present value of accumulated plan benefits was 8 percent for both 1980 and 1979.

7, Supplementary income Statement Information Maintenance and other taxes charged to operating expenses consisted of the following:

9. Jointly Owned Generating Stations The Company participated, with affiliated and non-a a ed utWties,in the following jointly owned 19R0 1979 1978 1977 1976 generatmg stations at December 31,1980:

Niaintenance 529 524 528 522 522 BalanceIin Thousands)

Other taxes:

State and local gross In Accumulated receipts

$19 515 514 513 512 Station

% Ownership Sersice Depreciation C.pitai swek 6

5 5

3 Real estate and Conemaugh 8' 45 5 44,312 510.167 personal propety 10 4

4 4

TNil (See Note 1) 50 565,054 59,763 Other 2

2 2

2 2

Each participant in a jointly owned generating unit Totals

$31 523 525 524 521 fiaances its own portion and charges the appropria.c operating expenses with its share of direct expenses. The dollar amounts shown above represent only those l

portions of the units ow ned by the Company.

For the years 1980,1979,1978,1977 and 1976 the cost to the Company of services rendered to it by GPU Service Corporation, an affiliated company, amounted to approximately $16,417,000. 510,655,000,57,612.06),

l 56,780,000 and 56,460,000 respectively, of which

10. Quarterly Financial Data (Unsudited):

l approximately 59,347,000, 57.108,000, 56,251,000, (In Thousands) 55,276,000 and 55,007,000 respectively, wcre charged t first quarter second guarter income.

19N0 1979 1980 1979 Operating Resenues 5105.985 588.866 5 98,929 575,813

8. Pension Plans Operatmg inmme 5 19,831 518.857 5 10,556 517,906 The Company has a pension plan applicable to all Net income (Loss) 5 5,698 5 9.973 5 (2,707) 5 6.917 employees, the accrued costs of which are being funded.

Inc me(Loss)after Preferred Stock The cost of a supplemental pension plan applicable only Disidends 5 3.126 5 7,40I 5 15.280: 5 4345 to supervisory employees was not funded prior to 1976.

The previous unfunded supplemental pension plan costs Third quart,r fourth quarter are being funded during the live year period beginning 1920 1979 1980 1979 January 1,1977. Prior service costs applicable to all plans are being amortized and funded over 25-year periods.

Operating P.cnues

$ 113.096 585.846 5114.642 587.611 Total pension costs for the years 1980,1979,1978 Operating inwme 5 9,742 517,957 5 9,458 514.061 1977 and 1976 amounted to approximately $5.8 million, Net income (Lossi 5 11,817 5 6.340 $ (865) 5 2h84 56.0 million,55.0 million,54.2 million, and 53.8 million income (Loss) after Preferred Stock rmectively.

Dnidends 5 14JM9 5 3.767 5 (3,437) 5 72 H.ned on the i.mt available actuarial reports as of JWJary l,1980, tne Company's plans had accumulated 3,,.vor, f.h,ch con,a,n,,nformarmn =u t re'p,vi to rate orders and benefits ano net assets as follows:

these eJJect on quarterly earnings.

21

Supplementary Infor:t:sdon To Disclose The Effects Of Changing Prices (Unaudited)

The following supplementary information is supplied in estimate of the approxirrt effect ofinflation, rather accordance with the requirem:nts of FASB Statement than as a precise measurement, since a number of l

No. 33 " Financial Reporting and Changing Prices," for subjectivejudgements and estimating techniques were the purpose of providing certain information about the employed in developing the information.

effects of changing prices. It should be viewed as an Consolidated Statement of Income Adjusted for Changing Prices (Note A) in Thousands Conventional Constant Dollar Current Cost flistorical A verage A wrage

[or the Year Fnded December 31. I940 Cost I#0 Dollars I980 Dollars Operating Revenues

$432,653 5432,653 5432,653 Energy Costs (Note D) 225,238 225,233 225,238 Depreciation (Note C) 39,145 72,901 77,102 Other Operating Expenses 126,877 126,877 126,877 income Tases(Note E)

(8,195)

(8,195)

(8.195)

TotalOperating Expenses 383,065 416,821 421,022 Operating Income

• 49,588 15,832 11,631 Ot'icr Income and Deductions (643)

(643)

(643)

Interest Charges 48,635 48,635 18,635 Preferred Dividends 10,289 10,289 10,289 income (Loss) after Preferred Stock Dividends (excluding reduction to net recoverable cost) 5 (9.979) 5(43,735)

$(47,936)

Change in net plant assets caring 1980 due to increases in specific prices 5200,148 Less: Change in net plant assets during 1980 due to increase in 223,636 general price level (innation)

$(23,433)

Change in specific prices net of general price level (inflation) 5(93,120)

(65.431)

Reduction to net recoverable cost of plant assets (Note F) 5(88.919)

Excess of increase in general price les el over increase in speciGc prices, after reduction to net recos erable value 65,992 65,992 Gain from decline in purchasing pow er of net amounts oued (Note B) 5(27.128) 5(22,927)

Net (Note F)

• Revenues.operatingincome and urcome availablefor common have been adsersely affected by regulatory disallowance ofoperating expeces and return re-quirements associated wit u Ull-1 and 2 (see Note'lL t

hes to Supplementary Information associated with a gain of general purchasing power because the amount of iaoney required to settle the liabilities represents dollars of Note A-Adjusting for changing prices:

diminished purchasing power.

Constant dollar amounts represent historical costs stated in terms or All assets and liabilities that are not monetary are nonmonetary, dollars of equal purchasing power, as measured by the Consumer Price Nonmonetary items, such as property, plant and equiprt.cnt, do not gain indes for All Urban Consumers (CPI UL Current cost amounts reflect or lose general purchasing power solely as a result of general price level the changes in specinc prices of p! ant, and differ from constant do.lar changes, but rather are affected by the relationships between specific amounts to the extent that specific prices haic increased more or less prices for the item and changes in the general level of prices.

rapidly than prices in general The current cost of property, plant, and equipment, w hich includes Note B Purchasing Power Cain:

land, land rights, intangible plant, property held for future use, Since the Company owed net monetary liabihties durmg a period in construction mork in progress, and other physical property, was which the purchasing power of the dollar declined (i.e., during a period determined by applying the company's equipment cost indices or the of innation), the Company esperienced a gain in purchasing power. This Handy-Whitman indes of Pubhc Utihty Construction Costs to net gain in purchasing power, show n separately in the accompanying sur ising plant investments. These current cost amounts are supplementary schedule, was calculated as the difference between restatements of the purchasing power which was invested in surviving beginning and ending year net monetary liabilities, each converted to plant, but do not necessarily represent replacement cost or current value aserage 1980 dollars per the CPI U index. All assets and liabilities of existing plant productive capacity. The actual replacement of the other than property, plant and equipment, as well as amounts apphcable capacity of present facilities will occur over many years as future to redeemabic preferred stock, were treated as monetary items and thus facilitics, different in kind from present facilities, are constructed and included in the purchasing power gain computation. Although certain placed in service.

assets and liabihties might be considered nonmonetary from a strict A key concept in understanding the data adjusted for inflation is the theoretical point of view, such amounts do not roaterially affect the distinction between monetary and nonmonetary assets and liabihties.

purchasing power gain reported. This gain is strictly an economic Monetary items are those assets and liabilities uhich are or will be concept and will never be reahied in cash. As such, the amount does not converted mto a fixed number of dollars regardless of changes in prices.

represent funds asailable for distribution to shareholders.

bamples of monetary items include cash, accounts receivable and debt.

During periods of inflation, the holding of monetary assets results in a Note C-Depreciation adjusted for changing prices:

loss of general purchasing power. Similarly, monetary habilities are in accordance with procedures specified in FASB Statement No. 33 22

~

3 rennues and all expenses other thin depreciitioa tre considered to Note F-Effect of Rose Regulaties:

reflect the average price level for the year and accordingly remain Under the ratemaking prescribed by the regulatory commission to unchsng ed from those amounts show n in the Company's primary which the Company is subject, only the historical cost of plant is financial s:atements.

' recoverable in revenues as depreciation. Therefore, the escess of the cost The current year's constant dollar and current cost depreciation

. of plant stated in terms of constant dollars or current cost oser the provisions were determined by applying the depreciation rates of the historical cost of plant is not presently recoverable in rates as Company to its respectne indesed aserage depreciable plant amounts.

depreciation, and is reflected as a reduction to net recoverable cost.

t While the ratemaking process presently gives no recognition to the -

Note D-Energy Costs and leventories:

current c st concept of property, plant, and equipment, the Company.

Energy costs include fuct, power purchased and interchanged, and beheves, based on past prasces,it wW k aHowed to carn on the ncreased cost ofits net insestment when construction of both new and changes in deferred energy cost balances.

Fuel inventories, nuclear fue!. the cost of fuel used in generation, and replacement capacity actually occurs.

i parchased power and interchange have not been restated from their To properly reflect the economics of rate regulation in the j

actual historical cost. Regulation 14 nits the recovery of fuel and Consolidated Statement of Income Adjusted for Changing Prices, the purchased power and interchange through the operation of energy reduction of net property, plant, and equipment should be offset by the adjustment clauses or adjustments in basic rate scheddes to actual gain from the dechne in purchasing power of net amounts owed. During historical costs. For this reason fuel inventories and nuclear fuel are a period of inflation, holders of monetary assets suffer a loss of general effectively monetary assets.

purchasing power while holders of monetary liabilities esperience a gain. The gain from the decline in purchasir.g power of net amounts i

owed is primarily attributable to the substantial amount of debt which Notr E-Income Tases:

has been used to finance property, plant, and equipment. Since the Since present tas laws do not allow increased deductn for depreciation on this plant is limite,i to the recovery of historical costs, depreciation adjusted for the effects of inflation, income _

included the Company does not have the opportunity to realize a holding gain on -

in the data adjusted for general inflation remain unchanged from those Ab? arcj is limited to recovery only of the embedded amounts of debt amounts presented in the Company's primary financial statements.

u.a; 1

Fin Year Comparison of Selected Financial Data

• In Thousands Year Ended December 31.

1990 1979 1978 1977 1976 i

Operating revenues As reported 5 432,653 5 338,136 5 310.581 5 305.223 5 264.113 J

In 1980 average purchasing power 432.653

' 383,864 392,279 415.036 382.306 Income (less) available for common i

in historical cost dollars 5 (9.979) - 5 15.585 5 48.318 5 48.543 -

5 41.322 in constant dollars (43,735)

(10.956).

NA NA NA In current cost dollars (47.936)

(17.569)

NA NA NA Net Plant Assets (in year-end dollars)

In Historical Cost Dollars 51.063.689 51,076.826 51.080.635 51.028.462 -

5 972.148 4

. In Constant Dollars 1,930,753 1.981,202 NA NA NA in Current Cost Dollars 1,979,608 2,059,591 NA NA NA Net assets at year end at net recoverable cost In constant dollars 5 485,491 5 N,586 NA NA NA in current cost dollars 485,491 556,586 NA NA NA Excess of increase in gereral price level over increase in specific prices after reduction to net recoverable cost 5 (88,919) 5 (118,533)

NA NA NA 4

Gain from decline in purchasmg power of l

net amounts owed 5 65,992 5 80,796 NA NA NA Selected balance sheet data at year end (historical costs)

Total Assets 51,291.248 51,327,149 51.239.803 51.151,523 51.090.371 Long term debt 527,420 529.5 %

544,021 488.2G4 459.501 Ascrage consumer pnce indes 246.8 217.4 195.4 181.5 170.5 December consumer price indes 258.4 229.9 202.9 186.1 174.3

• The Company does not declare cash dnidends on a per share basis. noris the Company's common stock traded on the mark et. Accordmgly, nofiveyearcom.

parisons arepresented on a per share basisfor encomello'ss). cash dividends and market price. Allconstant dollars and current cost amounts are expressedin average 1990 dollars. except as noted.

23

CEPANY STATISTICS Metropolitan Edison Company and Subsidiary Company 1980 1979 1978 1977 1976 Generating Capacities and Peak (31W):

Installed capacity (at y ear end)(a) 2,144 2,144 2,144 1,698 1,811 Annual hou rly peak load (b).

1.503 1,571 1,483 1,428 1,410 Reserve (%)(a) 42.6 36.5 44.6 18.9 28.4 Net Sy stem Requirements (in thousands of 31Wil):

Net generation 5.387 5,434 8,391 8,144

,294 Pow er purchased and interchanged, net 3.156 3.352 180 (79) 626 Total Net System Requirements 8.543 8,786 8,571 8,065 7,920 Loa d Fa c tor ( % ).............................

64.9 63.8 66.0 64.5 63.9 Production Data:

Cost of fuel (in mills per KWil ofgeneration):

Coal 15.59 15.12 14.59 12.53 12.37 Oil.

70.75 48.07 39.68 41.35 37.27 Nuclear.

3.25 1.54 1.65 2.10 Other 54.19 51.78 41.72 36.54 As erage 16.98 13.37 10.57 9.53 9.67 Generation By I uel Ty pe (7):

Coal 96 76 58 62 66 Oil.

I 2

2 2

2 Nuclear (Ii 19 38 34 30 Other(gas & hydro).

4 3

2 2

2 Totals.

100 100 100 100 100 Electric Energy Sales (in thousands of.stWil):

Residential 2,501 2,489 2,504 2,340 2,268 Commercial 1,638 1,535 1,538 1,451 1,35!

Industrial 3,212 3.341 3,166 2,937 2,794 Other.

462 719 709 683 676 Totals.

7,813 8,084 7,917 7,411 7,089 Electric Operating Reienues (in thousands):

Residential 5155,196 5122,317 5116,351 5113,682 5101,347 Commercial 93,041 66,292 65,573 64,954 55,693 Industrial 151,864 112,833 94,500 92,745 78,709 Other 23,189 27.677 24,107 23.092 21,980 Totals from KWli sales.

423,290 329,119 300,531 294,473 257,729 Other revenues 9.362 9,017 10,050 10,500 5.774 Totals.

$432,652 5338.136 5310,581 5304.973 5263.503 Customers-Year End (in thousands):

Residential 321 317 311 305 299 Commercial 38 36 36 35 35 Industrial 2

2 2

2 2

Other 1

3 3

3 3

Totals.

362

. E3 312 345 339 Price per KWil-allcustomers(cents).

5.42 4.07 3.80 3.97 3.64

!a} Includes the snstalled capacity of the Three Mile Island nuclear generating station Unit No. I of400 M li'and Unit No. 2 of453 Mli'. The rescne capacity excluding these units for 1979 and 1990. nould be (1759) and 113199. respectisely.

(b) li'anter Peak l

l N

3 Company Officers William G. Kuhns We are aware that you may be receiving extra copies of the Metropolitan Chairman of the Board and Edison Company's annual report and of its paren' company, General Chief Executive Officer Pu blic Utilities Corporation. We are working on a system that will red uce the number of these extra copies. Since an informed public will play a tierman 51. Dieckamp*

significant role in the future of the GPU System-and of your invest-Acting President ment, if you do receive duplicate copies, we urge you to make good use Robert C. Arnold of these extras by giving them to family members and friends.

Senior Vice President Floyd J. Smith Serdor Vice President James S. Bartman Vice President, Engineering Metropolitan Edison Company A membercompanyofthe GeneralPublic Utilities System Philip R. Clark-Eff. 9/4/20 Vice President, Nuclear Board of Directors Annual Meeting Will am G. Kuhns, Chairman Second hionday in hlay ce r sid nt Finance James S. Bartman Verner 11. Condon Principal Office 11erman 51. Dieckamp 2800 Pottsville Pike, ce Presiden Generation Fred D. IIafer hiuhlenberg Township Ernest W. Schleicher Henry D. liukill-Eff. 9/4/80 Berks County, Pennsylvania Floyd J. Smith Alailing Address:

Vice President, Director TN11-1 Raymond E. W,erts P.O. Box 542, Reading, PA 19640 Gale K. Ilovey-Eff. 9/4/80 The Executive Committee comprises Successor Trustee-hee President, Director TN11-2 h1r. Kuhns as Chairman, with hiessrs.

First Mortgage Donde Dieckamp and Schleicher as members llenry L. Robidoux.

and hiessrs. Bartman and Smith as J. IIenry Schroder Bank & Trust Vice President, Operations alternate members.

Company-Eff. 3 o/81 f

One State Street Ernest W. Schleicher New York, NY 10015 Vice President, Consumer Affairs Successor Trustee-Debentures Robert E. Gehman United States Trust Company of

5"'"

New York-Eff. 2/6/81 Robert B' fleist Division Offices 45 Wall Street New York, NY 10005 Secretary Central Division-Ernest 11. Ellichausen, Stanager Preferred Stocks Raymond E. Werts 2800 Pcesville Pike Comptroller P.O. Box 542, Reading, PA 19640 Trarufer Agents American Bank and Trust Co. of Pa.

IIelen 51. Gra>dori Eastern Division-35 N. 6th Street Assistant Secretary Robert C. Nagel, hianager Reading, PA 19601 2121 Sullivan Trail.

Chemical Bank Rita 51. Powers P.O. Box 428, Easton, PA 18042 20 Pine Street Assistant Secretary New York, NY 10015 Lebanon Division-David L. liuff David S. liigh, Stanager Reghtrars Assistant Comptroller 600 South Fifth Ave.

Girard Bank Broad and Chestnut Streets P.O. Box 240, Lebanon, PA 17(M2 Philadelph,a, PA 19101 i

Donald B. Wise Assistant Comptroller Western Division-hianufacturers llanover John R. Clugston, Stanager Trust Company Parkway Boulevard Four New York Plaza

' Subject to FERC approval.

P.O. Box 1909, York, PA 17405 New York, NY 10015

METROPOLITAN EDISON COMPANY 2800 Pottsville Pike P.O. Box 542 Reading, PA 19640 E

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M I

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E i>Z PRINTED IN U.S.A.

th-

)

it UNIFORM STATISTIOAL REPORT-YEAR ENDED DECEMBER 31,1980

}

(To Amencan Gas Association Edison Electric Institute and Financial Analysts)

Please sutmt the recured pages to the American Gas Assocaton and/or me Edison Electnc insttute. A_so fisnesh a copy of the Company's Amuel Report to Stockhoeders eth the USR or as soon as the annual report becomes avadable As Energy and Dosar Amounts should be reported in Thousar.ds Because th s report is frequentty used in cor0anction with the Compangs Annual Report to Stockhoiders the data ncg herein should agree em the comparable information in auct' Annual Report To aneure accuracy and cons stency. nun wrcus crosstes and footnotes have been appended to the scheoules so that the statstcs for the same stem sW ort more than one Schedde we be idenbcal This report should be read in conjunction with the 1930 Annual Report of Metropolitan Edison Cc=pany.

Name and Address of Company Metropolitan Edison Cc=pany & Subsidiary i

P. O. Rox 542 Reading, PA 196fo i

4 Ust Affdiated Companies. Ind.cate Relatonship (Parent Subsidiary, Associate,etc.)and hientsfy Nature of Business General Pabl. Utilities Corp. - Parent Jersey Central Power & Light Co. - Associate Pennsylvania Electric Co. - Associate York Haven Power Co. - Subsidiary indmdual Furnishng informaton InformMon Release Name R. E. Werts X

Yes. indnnoual company data may be re-reased.

Title Cc=rtroller N, nomdual company data may not l

Telephone No.

(215) 921-6350 be released.

Authorizer R. E. Werts

!&rch 31, 1981 Date This Report Released THIS REPORT HAS BEEN PREPARED FOR THE PURPOSE OF PROv10tNG GENERAL AND STATISTICAL INFORMATION CONCERNING THE COMPANY AND NOT IN CONNECTION WITH ANY SALE. OFFER FOR SALE OR SOLICITATION OF AN OFFER TO BUY ANY SECURITIES

O O

UNIF@RM STATISTICAL REPORT-YEAL ENDED DECEMBER 31,1980 Metropolitan Edison Cc=pany and Subsidiary Company TABLE OF CONTENTS ELECTR:C P

Schedule y

I. GENERAL STATISTICS.

I 1

States in which Company Operates and Percent of Operating Revenue in each State Subsidiaries and Leased Companies Utility Systems Acquired, Sold or Otherwwe Disposed of Changes in Communities Served Populatior, and Square Miles of Temtory Served

11. FINANCIAL AND ACCOUNTING STATISTICS Statements of income and Retained Eamings.

Il 2

Notes to Statements of income and Retained Earnings.

til 3

Functonal Details of Operation and Maintenance Expenses.

IV 5

Taxes.

V 6

Balance Sheet.

VI 7

Detail of Capital Stock and Long Term Debt Outstanding By issues.

Via 7a Notes to Balance Sheet.

Vil 8

Utility Plant by Functional Accounts.

Vill 9

IX 10 Notes to Utilit, Plant by Functional Accounts.

Additons, Retirements and Adjustments to Utility Plant.

X 10 New Secunties issued Dunng Year.

XI 11 Statement of Changes in Financial Position.

Xil 12 111. EMPLOYEE DATA.

XIII 13 Numberof Employees Salaries and Wages Per:sions and Benefits IV. OPERATING STATISTICS-ELECTRIC Classification of Electnc Energy Sales, Revenues and Customers.

XIV E-14 Classifica' ion of Industnal(or Large Ught and Power) Kilowatt Hour Sales and Revenues.

XV E 15 Source and Disposition of Energy.

XVI E 16 Maximum Demands and Net Capability Available at Time of Company Peaks-Calendar Year.

XVil E-17 V. GENERATING STATION STATISTICS-ELECTRIC Generating Staten Statistics.

XVill E 18 Fuel Consumed for Electric Generaton.

XIX E 19 Efficiency of Steam Electric Generating Units.

XX E-19 Changes in Generating Units.

XXI E 20 VI. MILES OF ELECTRIC LINE OPERATED AND OTHER PHYSICAL DATA XXil E-21 Transmission Distnbution Substatens and Une Transformere

PAGE1 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1980 PAIE1 Metropolitan Edison Company & Subsidiary Company SCHEDULE l-GENERAL STATISTICS

1. State (s)in which company operates and percent of operating revenue in each state Pennsylvania - 100%

2. Name(s) of subsidiaries and leased companies included in Une 16, Schedule 11, Page 2 of report (if data are included forless than full year, please indicate)

York Haven Power Company

3. Utihty systems acquired, sold or otherwise disposed of:

mecate une r, nod ror whien enese acaurss>ons or sates are renected m fna reoorf.

ACQUIRED DURING YEAR SOLD OR OTHERWISE DISPOSED OF DURING YEAR Name of System & Date Numberof Customers Name of System & Date Number of Customers None None

4. Changes in Communities Served (Group separately for Bectric and Gas) mdocate whether communty is or was served at wholesale or retadlevelby usertaq a (w) or an fr) after name of communty.

Communstes ADOED Dureg Year Commumtes TRANSFERRED or LOST Dirng Year Name of Community & State Prevously Served By Name of Communsty & State Now Served By None Hershey, Pa. (W)

Pennsylvania Power

& Light CO.

5. Population and Square Miles M Terntory Served:

1 POPULATION SERVED sOUARE MILES OF TERRITORY SERVED Electnc Gas Electnc Gas Retail.

b[

811.800 1.274 Wholesale.

i.2.

Total s.a.

811,800 3,274 Estimated as of 1970 Census

PATE2 UNIFOR] STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1980 PATE2 Company Metropolitan Edison Company & 3 sidiary b

SCHEDULE ll-STATEMENTS OF INCOME AND RETAINED EARNINGS Ghousands of $)

FOR NOTES-SEE SCHEDULE lil-PAGES 3,4, & d INCOME Total Electric Gas I

432,653

_ _432,653

1. Operating Revenues (a)(b).

2.1.

Operating Expenses:

291,561 291,561 2.

Operation (c)(d).

2.2.

3.

Maintenance (d).

2.3.

29.118 29.118 4-Depreciation (e).

2.4 99 145 99.145 3

5.

Depletion (e).

2.5.

6.

Amort. Charged to Operation (f)(g).

2.6.

7.

Propert/ Losses Charged to Operation.

2.7 8.

Taxes Other Than income Taxes.

2, 31.496 91.496 2,436 2,436 9.

Federalincome Taxes (e)(h)(i) -

2.9.

(154)

(154) 10.

State income Taxes (e)(h)(i).

2.10.

11.

Deferred Income Taxes-Charges.

2.11.

( 5,300_.)_

(5,300) 12.

Deferred lncome Taxes-Credits.

2.12.

[

7,293 ) [

7,293 i [

i [

i 2,llb 2,Ub 13.

Investment Tax Credit Adjusts. (N f)(h).

2.13.

14.

2.14 383.065 383.065

15. Total Operating Expenses.

2.15.

16. O erati,eg income.

2.18.

49.580_

49.588_

c

17. Other Operating income (j).

2.t 7.

49,568 49,568

18. Total Operating income.

2.18.

(700)

19. Allow. for Other Funds Used Dunng Constr. (k).

2.19, Eamings Per Share of Common Stock 145

20. Other !ncome Less Deductions-Net (g)(j).

2.20.

I-er share based on average

21. Minonty Interest.

2.21.

22. Income Before Interest Charges.

2.22.

48.gh5 number of shares outstanding during year interest Charges:

43,435 per share based on shares 23.

Interest on Long-Term Debt (l).

2.23.

12,060 outstanding December 31 24.

Interest on Short-Term Debt.

u4.

85 25.

Amort. of Debt Disc. Exp. and Prem. (Net).

2.25:

1,755 Report earnings per share on any other basis, if appli-26.

Other Interest Expense.

2.28.

27.

Allow. for Borrowed Funds -Cr. (k)

(4,546) cable, and explain Inc. Taxes on Borrow. Fun 4:;-Cr..

2.27.

[

4.154 )

28. Net interest Charges.

2.28.

48.695 See General Public Utilities

29. Income Before Extraordinary items.

229.

310

30. Extraordinary items. less Taxes (j).

2.30.

Corporation Uniform Statistical fd d Pf Dvidend Requirement (1) 2.

10.

9

33. Available for Common Stock.

2.33.

I4 9791-3 34 Common Dividends.

2 34 See also Notes to Financial State-

35. Netincome After Dividends 2 35 (9.4743-ments contained in Met-Ed's 1980 RETAINED EARNINGS

36. Balance. January 1 -

2.38, 31.604 _

Annual Report.

37. Net income During Year (Line 31).

2.37.

3.1. 0__

38. Pfd and Pfc Dividends Declared 2.38.

10,289 39 Common Dvidends Declared-Cash.

2.39.

40 Common Dividends Declared-Other(m).

2.40.

Dvidends per Common Share

41. Adjustments (nl.

2.41.

Paid.

42. Balance. December 31.

2.42.

21.625 Decia ed.

PAGE 3 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1980 PAGE 3 Company Metropolitan Edison Cc::many & Subsidiary SCHEDULE Ill-NOTES TO STATEMENTS OF INCOME AND RETAINED EARNINGS (Thousands of 8)

INCOME-SCHEDULE li-PAGE 2 (a) if sales of by products are handled as operatng revenue. report here the amount of by-product ravenue(bcluded on Lee f) $

and produrt etracton espense (Mc4eded ten Lees 2 and 3) $

(b) includes Revenues co#ected under bond or subtect to refund Electnc $

Gas $

Unt>#ed revenues Electnc $

Gas $

increase e revenue over the pnor year resultog from base rate increases granted and/or bdled.

Electnc Gas Amount Amount Effective Mctuded m Etfecteve included a Date Annualced Current year Date Annuahzed Current year See Note 1 - Notes to Financial Statements contained in Met-Ed's 1980 Annual Report.

Note Amounts conected on an eterm basis should be shown as a rate acrease m the year authonted and not as a part of the total meresse granted eth the feal rate order, (c) operateg 6penses-operaton ecludes.

Amounts sub ect to refund-Electnc $

Gas $

l 40,081 Charge or (credit) for deferred fuel costs-Electnc $

Gas $

Not of merchandiseg-Electnc 5 Gas $

other $

Segnihcant amount of rents $

for for for S.

for for (d) Salanes. Wages and Employee Pensons. Benef tts charged to operatng Expenses (Lees 2 and 3. page 2) 47.663 Ewtnc $

Gas $

otner $

(s) Deprec., Accel Amort and Depleton to be FEDERAL STATE clarned on Fed & State Inc. Tax Returns-Electric Oes Other Electric Gas Other Oberanzed Deprecaton.

3.1, 58.962 Accesorated Amortriat.on.

32.

Stra*ght One Depreciaton.

33.

3.597 Depleton.

34 other(specify)

3. 5.

Tois 3 e.

62,559 Est tar deoroc that would have been taken if straight les tax rates 55,194 were used 37 Give a general descnpten of the method or methods used m computeg book and tax deprecaton with respect to mayor Classes of deprecable assets See Note 2 - Notes to Financial Statements contained in Met-Ed's 1960 Annual Report.

(t) includes amortizaten of adrustments to apolences for gas conversions $

fg) Amortsaten of Plant Acquissten Adrustments included on Lee 6 page 2 ENN:tnc $

Gas $

other $

PATE 4 UNIFORM STATISTICAL REPCRT-YEAR ENZED DECEMBER 31,1980 PACE 4 Metropolitan Edison Campany & Subsidiary Company SCHEDULE lil-NOTES TO STATEMENTS OF INCOME AND RETAINED EARNINGS (Thousands of $)

(

(continued)

Elec*nc Gas other Total (h) evestment fan Crcet 90 2,6c0 makzed.

38.

572 572 ten Amorte.dlow.r years) s o.

2s11b

___2 11b 9

het

• 3.10 Flowed-Tirough 3.11

'Should agree with Ime 13 page 2 STATE FEDERAL,

0) Not Reducten m Inc. Tames (Not Norme4:ed)

Electric Gas Other Electrie Gee Other Accelerated Amorttrateorprooerty.

3,12.

2,367 604 orner proost,y 3.i 3 669 171 otnw < speedy).

3.i.

_ 3.016 775 Total 3.15 G) Detal mapor dems and amounts and a8 mcome tanes ecluded m i

Other operateg income (includeg income Tames of s 171 i

orne income Less o ductons-Net (incs,d o income Taxes or s Interest & Dividend Income

$1,118 pr oer mweasaeseg ecwed. g,ve wnorr, Other Tre me qq TRAESOP (674)

Pennities (80)

Other Income Deductions (74)

(178)

Tnven Total 5 le Entrnorenvy nems (inclueng income Tanos of s

)

(4 0 ve descrWon of method used to determee AAowance for Fur'ds Used Ourmg Constructon (McOdeg rate appaed. fype of constructor or stre of pb covered. and pered ofIWne Used to enCludejobs of shOtt duralon)

? - Motes to Financial Stat e ents centained in Met-Ed's 1980 See Mote Ann in1 Report.

m Annuse etw.st and PreterH and prefwence Orndend Requrement catulated on amounts (McWeg due wiW f yew)outstandeg at Dec 3t :

10,289 tong-Term oeta s 44,195 p,e, erred and preewence stock s

s PAGE5 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1980 PAGE5 Company Metropolitan Edison Ccupany & Subsidiary SCHEDULE fil-NOTES TO STATEMENTS OF INCOME AND RETAINED EARNINGS (Thousands of $)

(continued)

RETAINED EARNINGS-SCHEDULE Il-PAGE 2 (a) Detaes of common omdends Deciated-omer t*an can (n) ootads of ma or items and amounts ecbded n Adgstments to Retamed Eammes r

NOTES & REMARKS:

SCHEDULE IV-FUNCTIONAL DETAILS OF OPERATION AND MAINTENANCE EXPENSES (Thousands of $)

ELECT":

f AS Total Ooeraton Mactonance Total Operaton Mantenance Production:

1.

Fuel (a).

89.377 89.377.i nanunn (i.

,c, n=nuxnn 2.

Purchased Power (Net)(a) 95.T01 93.TO3 m u n n"n 42.

nnunnu nunnnu nuninnu 3

Purchased Gas (Net)(a) wannmu unn="nu unrnann 4.3.

4.

Other Prod _ Expenses (a).

8h.920 66.6h9 J8.271

nnum

4.4 5.

Total Production.

270.078 251.607 _lf.271 4 s.

6. Storage & Uguefied NaNralGas.

unmmna un== nun rummun 4 e,

7. Transmission h.lkh 2.8hh 1.900 4. 7.

8 Di 5t'uton.

16,549 7.782 8.811 48.

9 Customer Accounts.

7,h79 7,479 4 g.

10 Cust. Sennce & Info.

008

11. Safes k

W 4 t o.

h

4. i i.

12. Administrative & Gent 21.All 20.777 716 4 12.

13.

Total.

120.679 291.561 29.118 4 i s.

14. Cred;t for Residuals included in line l 4.14. l b

tai inciudes char;;es or acrests) for de' erred ts costs e w Elecine s h0.081 cas s (b) See Note (d). Schedule XIX-cece E i9 (c) Inciude only bei used e oroducten of gas (d) Wluces espeoraton and c: ; w.

.; costs of prosoectrve gas produeng feeds l 4.i 5. l $

1 PACE 6 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1980 PAGE6 Company Metropolitan Edison Cc::Ipany & Subsidiary SCHEDULE V-TAXES (Thousands of $)

ACCMUALs CHAmoED TO:

T:xes Other Than income Taxes:

open ATwo execuses-Taxes att orHen State and Local-Tetal Electric osa other Depts.

ACCOUNTS f a) 1.

Property, Ad Valorem. etc.

s.t.

10,009 10,009 So 2.

Franchise 5.2.

3 Gross Receipts.

sa 18,902 18,902 4.

Capital Steck s e.

(253)

(253) 5.

Miscenaneous.

s.7, 728 728 724 6.

Total State and Local Taxes.

s s.

29,366 29,3co 7 77 Miscellaneous FederalTaxes:

7.

Payroll.

s.9 2,050 2,050 1,842 8.

s t o.

9.

Total M>scel:aneous Federal Taxes.

s 12.

2,050 2,050 1,042 10.

Total Taxes Other Than income Taxes.

s.13.

31,436 31,436 2,616 income Taxes-Current:

2,436 2,h36 (3,759)(1 )

11.

Federalincome Taxes.

s 14 (15h)

(15h) 43 (1 )

12.

State income Taxes.

s.t s.

13. Totsiincome Taxes Current.

s.1 e.

2,262 2,262 (3,716)

Deferred Income Tax-Charges:

Federal:

14.

Accelerated Amortization Property s.t 7 6,717 6,717 15 Other Propertymi.

s. t s.

16.

Energy Costs (18,253)

(16,253)

3., g.

17, Other 4,416 4,416 36

18. Total Federal Provision 5.20.

(5.1201 (5.120) 76 State.

19.

Accelerated Amortizaton Property 5.21.

12 12

20. Other Property *'.

s.22.

21.

Energy Costs (591)

(591) l s 23.

22. Other 399 399 g

(180)

(loo) e

23. Total State Provision.

5.24 Deferred income Tax-Credits:

Federal:

24.

Accelerated Amortization Property 5 25.

I I

I I

I I

l l

i 1

25. Other Property

• s 2e.

I 114 1 I

114 I I

III I

I I

26.

Other

[ 7,102 ]

[

7,102 1

[

]

[

]

[

310 1 s27 27.

I I

1 I

1 1

1 l

1

28. Total Federal Portion.

s 28.

[

7,21o, 1

[

7,21b }

[

]

[

}

[

310 ]

Stata:

29.

Accelerated Amortization Property 5 29.

I I

I I

I I

I I

I

]

30. Other Property *'.

s.30.

I 26 )

[

26 1

[

]

[

}

[

}

31.

Other 3 3,,

[

51 )

[

51 )

[

j

[

j

[

y 32.

I I

i 1 1 1

[

]

[

]

33. Total State Portion.

5.32.

I 77 I I

77 1' l 1

I

)

[

]

34.

Investment Tax Credit Adjustment *.

s.31 2,116 2,116

35. Job Tax Credits s 34, 23,241 22,241 (1,266)

36. Total Taxes.

5 35.

+

m lei ici I

r) Such as UtMy Plant. Other mcomo Deductons. E straorecary ne% Oeamg ecounts. Retaced Eamnos. etc.

G) Report amount due to Leersieed Deprecaton (FERC System of Accounts 282)

(c) Should equal Total of Lanes 10. t 3.18. 23. 28. 33. 34 and 35. and Total or s 8. 9.1 o. t 1.12 and 13 Schecue 5-Page 2 (d) Amount of swestment sutwet to evostraent Tan Credit. Electre

- Gas

- Other Departments Notes & Flerm.tka ter.ase ee.n en, svusuar rems ar ecreg ruest (1) Includes Income Taxes - AFUDC (54,190)

UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 3i 1980 0

Company Metropolitan Edison Company & Subsidiary o>o SCHEDULE VI-BALANCE SHEET (Thousands of s) FOR NOTES--SEE SCHEDULE Vll-PAGE 8 m

N ASSETS LIABILITIES Utkty Plant.

Captalization (excluding reacquired secunties):

1,340,923 38 Common Stock (b) 3 5% 5.00 sha.c.es)._.

66,273 1

Electnc exclud Nuclear Fuel.

e.i.

a.se 277,369 39.

e so.

2.

Less Accum. Prov. Ior Depr. & Amort.

62.

3 Net Electnc Utdity Plant exct. Nuclear Fuel.

e.3, 1,003,554 40.

Premium on Common Stock (if not m hoe 4 7).

e 40.

4 Nuclear Fuel,

e.4 73,107 41.

Other Paid-In Capstal(c).

e.41 280,524 5

Less Accum Prov.for Arrort. Nuclear Fuel.

e s.

7,399

42. Retained Eamings.

e 42.

21,625 6.

Net Nuclear Fuel.

e e.

65,MS 43.

e 43.

7.

Net Electnc utdity Plant e.r.

1,129,262 44.

Total Retained Eamings.

e.44, 21.675 8

Gas.

e e.

45.

Total Common Stock Equity e.4 5.

168.422 9.

Less Accum. Prov. for Depr. & Amort.

e e.

46.

Menonty Interest e 4e.

10 N31G3s Utaty Plant.

e. i o.

47.

Accum. Credits for Defened inc. Taxes (d),

e.4 7

11. Liner.

e.i i,

48.

Prefened and Preference Stock (b).

eie.

139.391 12.

Less Accum.Prov.for Dept.& Amort.

e.i 2.

49.

Premium on Pfd and Pfc (If not m Line 4 7).

6,49.

bb3 13.

Net Othw sJit; otant.

e.i3 50.

Total Pfd and Pfc Equity (hnes 48 and 49).

6.so.

. 139.07N 14.

Common

e. 4.

Long Term Debt: (exclud. amt. due w# thin one yr.)

15.

Less Accum. Prev.for Depr.& Amort.

e t s.

51.

Mortgage Bonds.

e si.

h50.214 16.

Net Common Utdity Plant.

e.i s.

52.

Debentures (e) e.s2.

78.740

17. Total Utaty Plant.

e t r.

1,41b,030 53.

Other (f).Unamorti7.ed. Pred. Dis c..

e.sa.

(1.534 18, Less Accum Prov.for Deprec.and A.wrt.

e.i s.

284,768 54.

Total Long. Term Debt.

e 54.

927.hPO

19. Net Utd.ty Plant (Total).

e., s.

1,129,262

55. Total Capitalization (exciud amt. due within one yr.).

e ss.

1.035.716 2D. Other Property and investments (Net)(a),

e.20.

630 Current and Accrued Liabaties:

Current and Accrued Assets:

56. Long Term Debt Due withen one year.

e.se 15.227

21. Cash. Spec. Dep, Wkg Funds & Temp. Cash inv.

c 25 20.103

57. Short. Term Debt (g).

e.s r.

50.000 31.834

22. Gas Stored Underground (Current).

e.22

58. Accts. Payable (excf. amt. m Ane 59).

e.sa.

23. LNG Stored & Held for Processing.

e.23.

59. Payabler 'o investor Owned Elec. Cos.

e.s9.

2.727 8.07b l

24. Notes and Accounts. Receivable (Net) s.24 41,902 60 Taxes Accrued (d)..

e.co.

25. Receivables from Investor Owned Elec. Cos.

e,2 5.

32 61.

Other and Misc. Current and Accrued Liabdities e e t.

20,N1 26.

Accrued Unbdled Revenues.

e 26.

62. Total Current and Accrued Uabet es.

e e2.

128. % 3 27.

Materials and Supplies.

e 2 7.

29,205 Defened Credits and Operating Reserves:

28. Prepayments and C'her Cunent and Accrued Assets 6.2a.

1,706 63.

e e3.

29 e.29.

64. Customer Advances for Construction.

e e4 1.103

30. TotalCunentand Accrued Assets.

e,3o.

93,026 65.

Other Deterred Credits.

e es.

4.225 Deterred Debas:

66.

Accumulated Deferred income Taxes (d).

e.se.

99 817

31. Unamortized Debt Expense.

e.3 i.

1,350

67. Accumulated Defened investment Tax Credits (h).

e er.

21,036 08

32. Unamortized Conversion Costs...

e.32.

68. Operating Reserves (i).

e es.

33. Nuclear Accident, net of.. ins..r.ecpy..

e 33.

7,639

69. Total Deferred Crects and Operating Reserves.

e.ee.

126,629 34.

Defened Energy Cos.ts,

e.34 43,858 70.

e.ro.

35. OtherMfened Debits..

e 35.

15.h81

71. Reserve for Deferred or F9ure income Taxes (d) e.F t.

[

36. Total Deferred Debits.

e.se.

68,328 72.

. s. r2.

O e.37 1.291.2h8

73. TotalLiabsties.

( e.73.

1,291.248 ' *

37. Total Assets.

PAGE 7a UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31, 1980 PAGE 7a Company Metropolitan Edison Ca=pany & Subsidiar/

SCHEDULE Vla-DETAIL OF CAPITAL STOCK AND LONG TERM DEBT OUTSTANDING BY ISSUES For Stock show rate par value, shares and amount. Lrst separately, amounts apphcable to redeemable preferred stocks, as dehned by

• he Secunties and Exchange Commisson, other preferred stocks, and cor'vnon stock. For Debt. show series, rate, matunty date and smount, Group by type and show totals for e.ach type.

Maturity Descnpten of issues Rate Par Value Series r Shares Date A'nount (Thousandsof $)

Cc=on Stock No 859,500 66,273 Stated Value Preferred Stock 3 90

' 100 117,729 11,773 4.35 100 33,2h9 3,325 3.85 100 29,175 2,917 3.80 100 18,122 1,812 h.45 IPO 35,637 3,56h 8.12 1m 160,000 16,000 7.68 100 G

350,000 35,000 8.32 100 H

250,000 25,000 8.12 100 I

250,000 25,000 8.32 100 J

150,000 15,000 Total 1,393,912 139,Q First MortgaEe Bonds 3-1/h%

1982 7,800 3-1/8%

1984 15,000 h-7/8%

1987 19,000 5

1990 15,000 h-3/8%

1992 15,000 h-5/8%

1995 12,000 5-3/h%

1996 15,000 7

1998 26,000 8-1/8%

1999 25,000 7-7/8%

2001 15,000 7-7/8%

2002 26,000 8-1/2%

2003 20,003 1

1975-Sh 71h 9-3/h%

1983 50,000 9-5/8%

1985 h5,000 9

2006 50,000 8-3/8%

2007 35,000 i

6 2008 8,700 9

2008 50,000 Total 450,21h i

Debentures 4-3/h%

1990 4,080 6-7/8%

1992 14,400 8-1/8%

1997 43,L60 i

8-3/h%

1998 16,800 Total

'78,7h0 l

l

I PAGE 8 UNIFORM STATIC 7l CAL REPORT-YEAR ENDED DECEMBER 31,1980 PAGE 8 Metropolitan Edison Company & Subcidiary Company SCHEDULE Vil-NOTES TO BALANCE SHEET (Thousands of $)

(c) Detad maior dems and amounts acbong Escess Coct of bvestments n Sut> scares conschdated over Book Ven e at Date Acossden u

)

a tunner ce Stocknoiders as et-UbNN 1

Preferred Cornmon Other Preverence (c) Incbdes Premps on Capdal Stock P-Merred S Common 5 Other $

pre erence 5 (d) oeferred Fed *al and State income Tan Balances FEDERAL STATE Electne Gas Other E4ctnc Gaa Omer Acces Amort Prop-lee No.

7,1, 66 66.h61 9.977

~

teerau,ed o or Proo-tes so 7.2.

bb 7.3.

19.300 781 Def'd Fuel Costs-LMe No.

66 7.d.

2.066 992

~

cmer -te uo Tote.

7.s.

88.'727 11.000

• Elaborate m hotes & Remarks' d sqnkant.

to) includes convertue securdes (spec #y)

(1,53h) m befudes unamort.,ed Premum and Dscount (Net) $

0:ner ao. scree)

(g) includes Commercial Paper $

Gas storageloans S i

70,h73 Amage short term deed sena year. based on rweer or days outstandag 5 sh) Accumseed oeterred evestment Tan crests 21,036 Electnc F.6.

aas.

13.

Other, 7.8.

7.9.

Tots -

7.t o 21,036 til o taa maror dems and a.eunts-NOTES & REMARKS:

i

SCHEDULE Vill-UTILITY PLANT BY FUNCTIONAL ACbOUNTS (Thouvnda of $)

FOR NOTES-SEE SCHEDULE IX-PAGE 10 CONsTHuCTiON E xPF NOITuRE S (td ten ACCuM PROV g

FOn DEPRf C.

uTluTV AMORT ANo for Regnarted ESTIM ATE AS OF W80 ge PL ANT (an of PL Year (d)

For Next Year For 2nd Vr Fou For 3rd Yr Fog

]

3 ELECTRIC 1980 1961 1982 1383

1. Intangible Plant.

27b g,

a.t.

Production Plant:

MC 2.

Steam.

82.

168 3 1 68.133 2,170 3,698 3

Nuclear.

_ 565.05i 59,677 8,024 10,300 I

a 3.

8o 4

Hydro,

s.4.

4.112 2,473 334 238 Not Available Q

5 Pumped Storage.

a.s.

3 6.

Gas Turbine

$ us e e.

7.

Other (_ Comb.1\\lth,)

a r, 25.652 10.726 89 2

8.

Total Production Plant.

-j a.a.

763.069 141.009 10.617 14.238 h$

9 Transmission Plant.

as

.. 17%Q2h.

35.287 956 2.638

a. i o.

342,005 90.h65 16.211 18.177 g5

10. Dstribution Plant.

ug

11. Genera! Plant.

a.t i.

ll.995 lO IO8

_,,jJll__

352 0

12.

Subtotal.

a.12.

1.311.757

_277.369 1 195 35.405 3y

13. Miscellaneous Plant (e) s.t a.

11.575.

I

!"3 0

14. Construction Work in Progress.

s. i e.

17.59L

=""""""""=""4""

N5

15. Plant Acq Adj.a Other Adj a.t s, xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx xxxxxxxxxxxxxxx

&j 18 Elec. Plant Exct. Nuclear Fuel.

a. t n.

1,340.923 m 277,369

_28,196

,n 3 405 pg 17 Nuclear Fuel

s. t r, "

73.107 7.399

_Q4)87

, % 469 g>

18.

TOTALEL. TRIC PLANT

a. i s.

1.414.030,n 284.768 43,183 en y

2 4.874 3

P GAS

19. Intangible Plant.

8'

a. t o.

o l

23, Production.

e.20

21. Underground Storage (h) 8.21, O

22 Other Storage.

a 22.

23 LNG Terminahng & Processing.

e 23.

g 24 Transmission a 24,

25. Dstribution a 25.

26. Cenoral.

s.2o, g,

27.

Subtotal (i).

s.27, 28 Miscellaneous Plant (e).

a 28.

29. Construction Work in Progress.

e 29.

30. Plant Acq Ads & Other Adi.

e.30 31.

TOT AL GAS PLANT, s ai, it) en u

OTHER UTILITY PLANT 32 a 32, fa 33.

)

e 33.

,9 O

34.

Total Other Utikty Plant.

e a4 in en

[

r>

35 Common Plant (k).

o e.as.

eno) en to) 36 TOT AL UTILITY PLANT.

1,414.030,n 284.'i66 43,103 44,b74 a an in g

PAGE 10 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1980 PAGE 10 Company Metropolitan Edison Company and Subsidiery SCHEDULE IX-NOTES TO UTILITY PLANT BY FUNCTIONAL ACCOUNTS (Thousands of 5)

(c) Deprec6abie Property as of December 31:

ELECTRC GAS:

7b1=b79 Producten and Local Storage.

9.11, Producten.

9.1 Transmissen.

9.2.

170.901 Underground Storage.

9.12 D stntnAon..

9.3.

M40 12b Transmisson.

9.13 Generaf.

9.4 79 I497 Distnbuten.

9.14 M scoRaneous.

9.5.

General.

9.15.

TotalElectne -

96.

1 -3OI4 -335 Meceaaneous.

9.16.

COMMON Total Gas.

9.17 Electnc.

91.

OTHER Gas 9.8.

9.18.

Other.

9.9.

9.19.

Total Common 9.1 c.

9.20.

Total Other..

9.21.

(b) Estrnated constructon expenotures for thed (3rd) year followng l9.22.l Gas $

Other S (cl Estmated Constructen Expenditures eclude A#owance for Funds Used Durmg Constructon-Yes_ or No Indcate m total the AFUDC amounts ecluded (excluded)

I. 455.2nd year S I A 3rd year $ IdA 4

m estrnates Neut year S (d) Excludes Purchased Property F4eport expend 4 ares rather than transfers to utAty plant (s) Incbdes Espenmental Plant Unclassded. Leased to Others. He:d for Future Use. Completed Construction Not Classefed (f) Should agree w th amounts shown m Balance Sheet (Schedule VI-Page 7)

(9) Should agree with Constructen Expenditures encwn on Lees 1 through 8. Schedule X below. See Note (b) Schedule x for amounts of Anowance for Funds Used Ourmg Constructen (h) includes non current gas "For Reported Year" $

(i) Esteated expenditures for compressor facht.es ecluded m Reportsd Year.

9.23, Next Year.

9.24.

2nd Year 9 25.

S

}d Yew J 26.

4) includes intangeles $

. Lrse No

Lee No (k) Estunated amount apphcable to Utsty Plant Electnc $_

Gas $

Other $

Estanated amount appbcable to Accum Prov for Deoreces.on Electnc $

Gas S

. Other $

SCHEDULE X-ADDITIONS AND RETIREMENTS TO UTILITY PLANT-CURRENT YEAR (Thousands of 5)

Construction Esponditures Purchases &

Gross faubl Acquisitions Additions (c)

Retirements Other Entries Not Additions 28,196 28,196 3,721 (2.199) 22.276 1 EleC. F-Cl Nuclear Fuel.

10.1

2. Nuclear Fuel.

10.2.

_1h987

_ll,987 1h-9R7 t

3. Gas.

101 4.

10 4 5 __._____

10.5 6

ic e 7

101.

43,183 43,183 3,721 (2,199) 37,26{dy 8

Total io 8 m Shouid agece w.tn Coiumn Constr cten E, pen #tures-eor Reported year m Schedule Vtil-page 9 u

(b) incbdes Ano*ance for Funds Used Durmg constructon Electre excludeg Nuclear Fuel $

208 l 1o 9 l Nuclear Fuel $ _3 25 50. _ _. _ _ _.. Gas $ _. _ _

. Other $

Totai $ _ 3,758

. _ Snovid ag.ee wan tee i s and 27. Scneduie n-page 2 (c) Gross Adotons should be the sum of the Constructen Espend tures and the Purchases and Acquisrton col nns (d) The Total Net Ad@ tons should agree w4h the net change m Total Utaty Plant over last year (Lee f 7. Schedule VF-page 7). and should be the sum of Gross Add tons ; Con-strucfon fapend4ures plus Purchases and 4cquesafoes) legs Refvements and plus or meus Other Entres

PAGE 11 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1980 PACE 11 company Metr _opolitan Edison Co=pany & Subsidiary SCHEDULE XI-NEW SECURITIES ISSUED DURING YEAR Unn Pelces Amount (n)

_.. To comoeat Te Putine 7,,e of sete oete Neder of (incusande Procwe (c; gespdi Pric.

v_ie_d S or %

Description of leave (a) s M *e of 3)

$ or %

(Thcesende) ofPer of Per (e)

(f) tie /Dey Common issues fr 1.

2.

3.

4.

Preferred and Preference Stock (g)(h) 5.

6.

7.

8.

-t 9.

Bonds and Debentures Pvt.

1/1 100%

10.. Bonds due 1931 13,000 100%

11.

12.

13.

See Note 4 - Notes to Financial Stettements contained in Met-Ed's 15do Annual 14.

Report.

15.

16.

17.

Notes (1 year orlonger based on onginal matunty) 18.

19.

20.

21.

22, Secunty Reclassificatons and Conversons (Desenbe and report amount) 23.

$ 244.970 of Id First Mortgage Bonds due 1975-1964 (SEA) (redee=ed) 24.

$7.000,0C0 cf 2 2/h'% First Mortgage Bonds due 1980 (redemed) 25.

$5325n 0n0 # 9-3/M Fi rmt '.'nekgnga % As Ana T o ("adamedi 3

26.

27.

28 Secunties Reacquired and/or Retred 29.

Debentures were retired through the sinking funds provisions as follcWs:

30.

$ 120.000 cf h-9/h4 due 1990 31.

s h00;000 of 6-7/6% due 1992 32.

1.060.000 of_8-1/84 due lo97 33 s ~h00; M of a-3/44 due 1998 34.

33 _.___.._.__

38 37.

38 39.

40.

(e) Report each mdedualissue separate 8y (nebdeg securfes #ssued as dMdends, as ese as free pecoments). useg add 4cnol sheet d necessary speedy maturity date, rate.

Der vibe Cortverteddy.new or rehnding ff CorwertCW bne y describe terms of Corwerson n

(D) Show preccal armwis for Bonds. Debenksos and Notes. show stated vebes for Preferred and Preference Stock, aru a**smg once for Common Stock s

(c) Proceeds shoued be synonymous eth once pesd by underwnters (d) After underwnter conwemssons (s) bsort symbois Pvt-Prtvete. Pub-Pit *C.and Pet-Parent (f) bsert syrreoes C-Compettrwe and N-W*ieted ig) If sold on a ngets base rocate openng rato Commort Other (bl Prce range of ngr*ts diseg offereg pened

PAGE 12 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1980 PAGE 12 i

Ccmpany Metropolitan Edison Cc=pany & Subsidiary SCHEDULE Xil-STATEMENT OF CHANGES IN FINANCIAL POSITION (Thousands of $)

(Detail Material items Not Shown On Form)

SOURCE OF FUNDS Funds from Operations:

310

1. Netincome(a).

l 12.1. l Pnncipal Non-Cash Charg as and Cred:ts to income:

39,145

2. Depreciation and De;% tic i(b).

12.2.

3. Amort:zaronof.

........._( c ).

12.3.

(12 592)

4. Deferred income Taxes-Net (d).

12.4 9

2,116

5. Investment Tax Cred.t Adjustments (e).

12.s.

700

6. Allowance for Funds Used Dunng Construction (f).

12 e.

7.

12.r.

5*754

8. OtherIntemal Sources-Net.

12.s.

9. _

12.o.

10.

12.10.

11.

12.i t.

35,521

12. Total Funds from Operations.

t 2.12.

Funds from Outside Sourew "uew Money):

13,000

13. Long-Term Debt (g)(h).

12.i a.

14 Preferred and Preference Stock (h).

12.14

15. Common Stock (h).

12.15.

(18.000)

16. Net increase in Short-Term Debt (i).

12.i e.

17. _.

12.11 18.

12.i s.

(5,000)

19. Total Funds from Outsade Sources.

12.19.

20. Total Sources of Funds 12 20

'O.521 APPLICATION OF FUNDS h3,182

21. Gross Additons to Utety Plant (inct. land)(j).

t 2 21

22. Allowance for Funds Used Dunng ConstructorT).

12.22, 7dd

23. Dvidends on Preferred and Preference Stock 8).

12 23.

10,289

24. Cash Dvidends on Common Stock (1).

12 2(

Funds for Retirement of Secunties and Short-Term Debt:

lh.b71 25 Long Term Debt (g)(h).

12.25.

26. Preferred and Preference Stock (h).

12.2s.

27.

12.27 28 Net Decrease in Short Term Debt (i).

12.2s.

lh W

29. Total Funds for Retirement of Securities and Short Term Debt.

12.29.

30. Deferred Energy Costs - Iie.t.............

12.30.

(ho.081)

31. Deferred Costs-Iluelear Accident.,. IIe.t. of. Insurance. Recov.eries.

i 2.s i.

(23,031)

32. Increase in Working Capital (Excluding. Debt). "

24,903 12.32.

(38,209) 33 TotalOther Apphcatons-Net.

12.s3.

34. Total Applicaton of Funds.

12 34.

30,521 (a) Should agree with Schedu!e 11. Une 31 *

(g) Bonds. Debentures and Other Long Term Debt (b) includes $

charged to cleanng and other (h) Net proceeds or payments accounts not included in Schedule ti, Unes 4 & 5 *

(i) includes Commercial Paper 5 (c) Should agree with Schedule 11. Unes 6. 7 & 25*

(j) Should agree with Schedule X. Une 8' (d) Should agree with Schedule 11. Unes 11 & 12 *

(k) Should agree with Schedule 11. Une 38*

(s) Should agree with Schedufe I:. Une 13*

(1) S".ould agree with Schedule II. Une 39 8 40' (f) Should agree with Schedule 11. Unes 19 & 27 *

• 1f not, expla:n below:

See Footnote (a) to Consolidated Statement e Changes in Financial Position contained in Met-Ed's 1960 Annual Report ror deaus.

PACE 13 UNIFORM STATISTICAL REPORT-YEAR ENDED DEOEMBER 31,1980 PAGE 13 Metropolitan Edison Campany & Subsidiary Company SCHEDULE Xill-EMPLOYEE DATA, NUMBER OF EMPLOYEES-(Average For Year)

Allocate to Electnc, Gas, and other Ut*ty Departments common emp6oyees who devote part of ther tune to Electnc and part to Gas, and/or Other UtAty Departments.

Estanate sphts on base of payros dotars or any other reasonable base.

OTHER ELECTRIC OAS UTILITY DEPTS.

TOTAL

1. Operation and Maintenance.

13.1,

2. Construction.

13.2.

3. Other(Desenbe) 13.3.

2,d22

• 2,622 4.

Total 13.4.

SALARIES AND WAGES (Thousands of $V4 39,265 99.265

5. Operation and Maintenance @).

i s.e.

7 oh0 7.040

6. Construction.

s ay.

14. %8 *

• 19.968

7. Other(Describe) i s.s.

65.673 65.679

8. Total.

13.o.

Payroll, commissions and bonuses applicable to Merchandising only (sncludedin line t

< 3.11, 719 Plant Removal Costs included in linedis12.

719 PENSIONS AND BENEFITS (Thousands of $)

9. Operation and Maintenancem.

13.13T 8,398 8,398 1,502 1,502

10. Construction.

13.14.

4,143 4.143

11. Other(Describe) 1315.

14,043 14.043

12. Total.

i s.i s.

Pensions, Life Insurance, Blue Cross /

Enumerate tne types of Benefits ecluded-such as Pensons. L3fe insurance, Hosodakzahon, etc.

Blue Shield. Medi7are. Education Allowances. 2:oloyee Mmetions snonsored by cganyy Assigned Vehicle allowances. Payroll taxes paid by the c m sny.

(a) Do not mclude Pensons and Benefits Ib) Total of Lees 5 and 9 should agree edh Schedule 111. Note (d) on Page 3 NOTES & REMARKS:

Average employees were not allocated bece.use Ccapany employees are not always assigned to Operation & Maintenence and Construction.

Includes Stores Dcoense Undistributed. Transportation Clearing and 2

Other Clearing Accounts Miscellaneour Deferred Debits. Accounts Receivable 'MI Owners.

PA':E E-14 UNIFORD STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1990 PAEE E-14 CompanyMetrennHtan FMnnn cnmpnny & Subs h y Pennsylvania Total System d SCHEDULE XIV-CLASSIFIC 4 TION OF ELECTRIC ENERGY SALES, REVENUES AND CUSTOMERS Compones operateg n more then one state should compiete thes schedule for each state m wtwch they operate DO NOT FILL IN eel Use Only Year Regen State Co Type Release Co Code hE AotNG.1980 KILOWATTHOU'ts OPER. REVENUES CusTOteERs (thousande)(a)

(thousands of $)(a)

AT YE AR ENo.

AVERAGE-12 ttOs.

l Sales to Ultimate Customers 2,500,812 155,196 320,676 318,975

1. Residential (b)*

14.1 1,637,839 93,041 37,495 37.319

2. Commercial (c)*

i42, 3,212,686 151.865 2.157 2.177

3. Industrial (c).

14.3 37.843 3.817 638 655

4. Public Street & Highway Lighting 14.4 170.261 9.617 687 779

5. Other Sales to Public Authorities i 4.5.

6. Sales to Railroads and Railways.

14.e.

7. Interdepartmental Sales.

14.7

8. Other Safes (Specify).

14.s.

7.559.hbl hll.516 761.653 159.005 gd3

9. Total Sales to Ultimate Customers i 4.9 to Sales for Resale 54.713 2.816 1

3

10. Mvestor Owned Electric Utilities.

i4.10.

100.800 4.712 1

1

11. Cooperatively Owned Electric Systems 14.i i.

08.h51 2.227 5

5

12. Municipally Owned Electric Systems.

14.12.

13. Federal & State Electric Agencies.

t 4.13.

253.964 9.755 9

9

14. Total for Resale.

i4.54

15. GRAND TOTAL.

14.i s.

7.813.h05 h23.291 161.662 959.914 9d62

16. OTHER ELECTRIC REVENUES.

14.1 e.

17. TOTAL ELECTRIC OPERATING 432,65 3 REVENUES.

14.17

• Customers with Efectnc Space Heatog (e)(f) 700,776 38,958 41,087 39,757 Resdent#

$ 4.i s.

CommerCal IN IN l2 (g)

_y Apt Bldgs. Master Metered 14,59.

NA NA p.6m 2.h83 AR Omer.

i4,20.

N

1. 8 f a) State percentage of Kdowatthours or Oper:4m Revowes for each class of sa6es (edcafe wfwch)

N

%. other(Spec #r)

_l.0__0.%_Excep_t subiect to fuel rate adlustment Resdentel

%; Commercet

%. Industnsf for Resale 74%

or odcate ey s, mea m inose ciasses of sees fuiry covved Total dotars recovered through automat c rate adiustment Fuel and Ta Clauses e Current year 17.260 154.141 Tu causes s omer(oefme) roeicauses s Untnited Revenue s for Kwhr on ine(s)

(b) Res4entel-Annual Kwhr Use, Annual Electrc Be and Revenue Per Kwbr.

space Heating C_ustomers Atl Resid. Customws 1bb2b Kwhr

_L840 Kwhr Average Annual Kwtv Use Per Customer.

14.2i Average AnnualElectre BA i4.22 s_919*91 s _486 55

• 559 cents 6.206

,n,,

c Average Revenue Per Kwhr 14 23 fc) indcate cla=/caton by serAeg out the mapproprote parts of captons of Lnes 2 and 3 Give the criterm used by "lompany n classifyng the customers into the respectsve Each customer is ceded cot::mercial or industrial g,oup,. a,so vea po.nt eetween targe and smaii ugnt and Pow,,

based on_the_ type _otbusiness_ activity._._

endt. b.,llO.i(abe-i2 mosEnate customers counted more inan once because of soecai servces. sucn (d) Eucludes 11a 24l _

(at ye as water heateg etC (e) Reoort Totai Kohr sa' s fa# uses) and Total Revenue for those Customers who use electrcity as ther pnnc. pal source for space heating (Mc%ided a knes y and 2respectsvely) e Report customers even though other data is not avadaDie (f) ReDort here what is Consdered to be the average annual beetrg and Coolang degree-day for the ternfory served w!th eiectrcity by your Company, on a calendar year basis it omer me e s deve dass soecay __ Cooling _ Degree Day. Base _ is_TO F 5,880 dea,ee. days 2 A..r.ae ve.

.ed on __10_ ye.s e,p.,,ence 5,7%wree days seatog cevee.os,-i teest ve,.

coang oevee osy-i toest ve.r 590_ dea,eems 2 Average year. eased on 10 402 eo,.e day.

veys e.p,,ence d

..688

,a,e,aae. i a mos i dweeng un ts in.p iment condegs m.ste, mete,ed (g) inciudes FaTil _

763.._ at ye-ene Not:s & Remarks:

PAGE E-15 UNIFORM STATISTICAL REPORT-YEAR ENDED D5CEMBER 31,1980 PATE E-15 Company Metropolitan Edison C m any & Subsidiary State of Pennsylvania

. Total System G SCHEDULE XV-CLASSIFICATION OF INDUSTRIAL (OR LARGE LIGHT AND POWER)

KILOWATT HOUR SALES AND REVENUES Compermes operatng n more than one state should complete this schedule for each sta'a n whch tr.ay operate DO NOT FILL IN EE! Use Only Year Regen State Co Type Re4 ease Co Code l HE ADING. t 980 W practcal please gwe a treancben of your hdustnad for Large Light & Power) Saes and Revenues by type of Westry, preferatWy by the Mapr Mnng and Manufacturmg Groups of the Standard mdustnal Classdicaton (a) W not coded stnctry by Standard houstnal Class #catern. please give comparab6e informaton by any sandar groeng ycu may ha ve adocead W rou cannot furneh the adormaten on a wW %ive base. data for your largest edusbes would be useful(ten W possbe) where a c 4tomer or estathshment has operatons pertamog to more than one edustry.the pnnceal type would detenrane the clasadcahon KILOW ATTHOuR SALES REVENUES TYPE oF NDusTRY s1C No fai (thousands)

(thousandsof St MINING 17 5

1 Metal Minng.

10 t 5.1 Coal Mining.

11 & 12 15.2.

Oil & Gas Extraction.

13 i s.3.

116,064 5.Sh7 Mining & Quarry ng of Nonmetallic Min. (except fuels).

14 154 15.5.

Total Mining.

i 5 e.

116,101 5,545 MANUFACTURING 214,699 10,357 Food and Kindred Products.

20 15.7 h.123 222 Tobacco Manufacturers.

21 is 8.

121.81h 5,262 Textile Mill Products.

22 i59.

Apparel & Other Finished Products made from fabncs 65,585 2,517

& semitar matenals.

23 is.io.

23,349 1,227 Lumber & Wood Products except furniture.

24 15.11 Furniture and Fixtures.

25 15.12.

29.559 1.555 Paper & Allied Products 26 i5.13.

o00.679 _

lh.788 6WM 8 2.716 Printing. Publiehing & Allied industnes 27 15.i4 160;006 8.260 Chemicals & A!!ied Products.

28 15.1s.

P:troleum Refining and Related industnes.

29 15.16.

25.335 1,337 Rubber and Miscellaneous Plastic Products.

30 15.17 MQ.o6o h.h2h Leather & Leather Products.

31 t s.i s.

25;10h 1,369 Stone. Clay, G! ass and Concrete Products.

32 i5.19.

3h0,622 14,724 Primary Metal Industnes includog production of coke 6hh,Shh 32,563 (without electnc furnaces).

33 15.20.

Pnmary Metal Industnes including production of coke (with electnc furnaces).

33 i5.21 Fcbncated Metal Products except machinery &

181,119 10,303 transportation equipment.

34 15.22.

Machinery, except Electnca!.

35 15.23.

3SS,620 16,744 c%ctncal and Bectronic Madunery. Easement & Suophes 36 15.24.

245.683 11.301 Transportation Equipment.

37 15.25 88.Q43 4,446 iweasunng. Analyzog & Controlling instruments; Photo-21.47h 1,107 graphic. Medcal & Optical Goods; Watches & Clocks 38 i s.26.

Misceltaneous Manufactunng industries.

39 i5 27 h5.129 1.002 15.28.

Total Manuf acturing i5.29.

3.0c6.3Oh 146.290 Total Mining & Manufacturing.

t s.30.

3,212,405 151,03

" Industrial Customers" with demands below Kw.

15.31 Other industnalCustomers"notclassified.

15.32.

201 21 Non-manuf actunng " Industrial Customers" 15.33.

Ad uM. for Differences in SIC Coding (-)( + ).

i s.34.

i

_ Totallndustrial or Large Light & Power (b).

15.35.

3,212,6c 6 151,065 4 The Standard mdvstnal Class #caton e put*shed a manual form by the U S Government Pmteg Omco and a avadable through the Swenntendent of occuments ft e oed prvnarsy as an asd n secunng undormity and comparabaty n the presentaten of statstcan data colected by vanous agences of the US Govemment. State Agences<

Trade Assocetons. and Pr vete Research Agences (D) Amounts shoud agee wth irse 3 (cotwnns i and 21of Schedule xN-page E-14

PAGE E-16 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31, 1980 PASE E-16 CompanyMetropolitan Edison Co._ & Subsidiary State of Pennsylvania Total System Si SCHEDULE XVI-SOURCE AND DISPOSITION OF ENERGY (thousands of Kwbr and $)

Companes operateg m more than one state should como ete this schedule fu each s' ate m which they operate oo NoT FILL IN eel Use only Year Regen State Co Type Re+aase Co Code HE ADING. i 9ew Sourceof Energy Net Generation:

KILOwATTwouRs Cost 1.

Steam, Conventional.

' i s.i.

5,162,h35 s

95,595 2.

Steam. Geothermal.

18.2.

3.

Steam. Nuclear.

38.3.

(h8.702) 26,267 4.

Hydro.

t e.4, 122.900 786 5.

Pumped Storage.

is s.

(a) 6.

Gas Turbine.

ie s.

7.

Other(Specify).

..C.c=bustic.. Turbines & Diesel 3,,,

150,531 10,015 8.

Other(Specify).

t e.e.

9.

Less: Energy snput for Pumped Storage.

i s.g.

xxxxxxxxxxxxxxxxxx 5,386,65h 132,663 10.

Total Net Generation.

i s.io.

Purchased Power, incl. Net Interchange ( Account 555)- (b)(c)

_3,156,239 95,781 11.

Insestor Owned Electric Utihties.

s e.i i.

12.

Cooperatively Owned Elect. Systems.

i s.12.

13.

Pubhc Agencies (incl Municipals).

18.13.

14.

Industnal Sources.

16.14 15.

Intemationallmports ( +).

16,15.

16.

Intemational Exports (-).

s e. s e.

17.

Less: Energy input for Pumped Storage (if applicable).

t e.i r.

xxx u xxxxxxxxxxxxx 18.

Total Net Purchased Power-ir',(out).

i e.i e.

3,156,239 95,782.

19. Total Net Energy for Dstnbutica,

is.i s.

6,5h2,893 xxxxxxxxxxxxxxxxxx

20. Energy Wheeled (for accouf7s of others)(d).

is 20.

M,bd xxxxxxxxxxxxxxxxxx

21. Generation Control and S stem Dispatching.

i e.2 i.

1,553 i

22. Other Expenses (e).

I e.22.

h0,081

23. Total Production Expense (Electnc).

t e.23.

$ 270,078 Disposition of Energy 7,813,h0 (

24. Total Energy Sales (c)(f).

t e.24 I

25. Used in Electric & Other Depts and Fumished Without Charge.

16.25.

2h,0C ' _

26. Total Energy Accounted for(24 and 25).

1 e.26.

7,837,406

27. Enercv Lost and Unaccounted for(f).

1 e.27 705.h85

28. Tota:Dsposition(Lines 26 + 27 = line 19)(a).

1 e.28.

8.Sh2.893 I

29. Energy Wheeled (for accounts of others)(d).

is 29.

50 h12_

(c) ExcLsare of energy for pumpeg it comt>naton Hydro and Pumped storage staten, anocate staton esperises to each source of generaten (b) Purchase 1 Power prom rJ sources)..

18.30.

3.566,585 110,701 mtercnang. Rece.ved forossi.

i s.3 i.

213.560 13.329 meeren ngeoenveredforosst i s.32.

(623,006)

(28,2h9)

Totai Net Purchased Po*er caouti-snound egree we tno t e i s.33.

3.156,239 95.781 If Company purchases aA or most of sts Kwhr supply from other utsistes of agences. give the name of such supphers and the Kwhr purchased from each (c) The Company we turnesrt upon written request copes of pages 412. 413. 422. 423 and 424 of its FERC No i repori whsch contams Kehr and cost data by compan.es and systems for Purchased Power fociudog Net interchange) and Derwenes of Energy for Resale (d) If Company transmits power of and for ancther sys'em and such power is not eciuded as both a rece pt and celevery e Purchased Power account, show on Lees 20 and 29, tne Kwhr whee.ed

+

(e) includes charge or (creotpor deferrec :.,w costs of s 40,081 m mciudes enect of unneed awnr.

NOTES & REMARKS:

(

) Indicates red figure.

UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1980 g

Company Metropolitan Edison Company & Subsidiary Qm.

7 SCHEDULE XVll-MAXIMUM DEMANDS AND NET CAPABILITY AVAILABLE AT TIME OF COMPANY PEAKS-CALENDAR YEAR (KW U

OTHER ACTUAL DATA AT TIME OF M AKissVM DEMAND (aHb)

CAPABILITY AT TIME OF COMPANY PEAKS COMeANY PE AES Company's Own F6rm Purchases Firm Sales To peon-Flem pean Flem Sales Hour, Month Generating From Other Other Electric System Purchases From To Other K6lowatts and Day Not CapatWdty (c)

• Companies (.1)

Utmties (d)(e)

CapetNiity (t)

Other Sources Electile Utihhes 1.h74.000 3P. 9/2/60 2,030,000 summm me. ib.

i t.$.

2,030,000 670,000 wntm ezak te) s u, 1.503.000 loa. 2/1/80 2_14h,000 2,144,000 814,00 _0 1.h29.000 SA.12/22/80 2,144.000 December Porm 17,3.

2,144,000 492,000 (4 121; mute (e o mmute, et avaAstse) mtegtsted peak for the Company's totalbad (f sc4x1e power "whoo4 (di Company's ownated M... mum o mand, 60

.mus,,og,,,ed pm.,no,,no no.i c.g, ye, summ.,_ 1 0,W 1,500,000 xw n.e, x,

(c) Geve the total plant capatw.ty at the tane of the peaka noted atove, whether or not the generatsng unsts were carrym0 load or mamtamed as reserve include the capald4y of uruts which were out of sonnce for maintenance idi bclude "one und contr acts" wdh F em Ptschases or Frm Sales touch contracts prowie c@atW ty trom a urut onty so long as the unit is capable 1 Demg operaled)

(4 include only sales to companees w%,h obtam thee precipal suppty from other sources (t) see Page t O of E F CA>ssary for detrutnin of Net System Capqbety Annus'. cad Factor

• k based on a Demand Intervalof 60 7933m,,,

87.4%

syste n inadicor vor day oe peak iu

summe,

unte, v eompany is part oe s powm pooi. pie.a. g ve name oe poo, The Campany is a member of_th.e General Public Utilities Integrated System and thereby a participant in the Pennsylvanin-New Jersey-Maryland Interconnection.

Also O've name of nuclear power development group (s) wth wtuch company is attdated NOTES O REMARKS:

Includes both Three Mile Island nuclear generating station unito, rated at 653 Mw-winter and 828 MW-Steer.

N

>O m

7

.a N

PAGE E-18 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1980 PAGE E 18 Metropolitan Edison Cccpany & Subsf diaNte of Pennsylvania Total System [3 SCHEDULE XVill-GENERATING STATION STATISTICS (a)

Co,

. orateg e,,o,. inan one Sw. se corw. in Scheu. eor.ecn Sw. e ench uy coer.t.

DO NOT FILL IN eel Use Only Year Regen State Co. Type P.eemase Co Code HE ADPdG.1980 NEAT RATE R ATING IN NET KILOW ATTS (BTU per FOR UnditS IN SERVICE DEC. 31 Kwhr not NET GENERATICN NA40E AND LOC ATION OF ST ATION (b)

TVPE (c)

Nomepleteici Cesetetty fes generetten)

Kehr (themsende(

Titus - Reading. Pa.

SC 225.000 2h0.000 10.819 1.h76.007 Portland - Portland. Pt..

SC h26.700 999.000 10.272 1.952.914 Cone =augh - Huff. Pa.

(J1 SC 908,000 280.000 10.128 1.799.514 Total 959,700 919,000 10,378 5,162,h35 York Haven - York Haven, Pa.

H 19,600 19,000

~ 122,390 Hunterstevn - Hunterstcwn, Pa.

C.T.

58,800 81,003 lb,h10 13.575 Orrtanna - Orrtanna, Pa.

C.T.

19,600 26,000 1h.3h7 6.559 Titus - Peading. Pa.

C.T.

35.600 39.000 15.hhh 31.59h Portlan] - Portland Pa.

C.T.

37.600 h5.000 15.098 58.579 Shawnee - Monree County, Pa.

C. T.

__ 19.600 26.000 13.989 2.592 Hamilten - Hamilton. Pa.

C.T.

19.600 26.000 1h.695 5.772 Mountain - Cunberland Co.. Pa.

C J_._

53.2Cr)

Sh.000 14.25h 29.806 Tolna - York County, Pa.

C.T.

53,200 54.000 14.208 7.899 Total 297,200 351.000 1h.835 150.910 Cone =auch - Huff, ca.

(J)

I 1.800 2.000 9.955 9?1 Three Mile Island 61 IhuVhin County, Pa.

(J)

SN h15.500 LO9.OOO (20.E&G Three Mile Island u2 DauDhin County. Pa.

(J)

SN h80,600 h59,Ooo (p7,83p Total 916.100 859.060 (LR ?O?)

5xssxxxssxxx=#n xxxasssxxxxx Sub-Total.

se,

===xxxuss#sx=nxx tcss: Energy Input for Pumped Storage.

ie2

==xxxxxxxxxxssrx xxxxxxxxxxxnuxxx xxxxxxxxxxxx Total-M Stations Operated.

18 3 2.lOh.h00 2.1h4.OOO (f) 10.602

5. 086. 4h

<g)

(t) e eddion to ksfeg 85 StatCMS operated. Show separately beeow statens owned but leased to others (b) Grets by type and show tota 4 Mr eeCh type hd' Cafe statens leased from others wth (L) and edlCate wet (J) company porten only of stations jocFy owned wth others (c) esort syf9bol SC-Steem, Conven*enal. SN--3 team. Ncieer. H-Hydro PS-Purnped Storage.1-e'emal Corneuston. GT-Gas Turece; GEO-Geothermal

<.c w cyc=

C.T. - Cc=bustion Turbine (d) Gr o ment /acturers raestnurn namep6ste rateg of the ttsoco generamr set v

(c) Corncenes heweg surreer pee.s use summer rategs. tnose Paveg weter peaks. use weter rategs.

h59.000 det. oe entw an 12 hO /7L and an or staten For Corecervy's largest und g%e capeDe*v Three Mile Island #2 (f) Amount of fem cacet#y (eciuong net fem Durchases from other compenses) at December 31 (g) Shondd equal toth not generahon on Lee 10. Screduie XVI-cege E 16.

UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1980 Company ' etropolltnILEdison Co. & Subs 15 diary St:ta of Pennsy vania

_ Total System 01 d

O SCHEDULE XIX-FUEL CONSUMED FOR ELECTRIC GENERATION m

m 00 NOT FDLL IN eel Use Only Companes operatng m more than one state should complete Year Regen State Co Type Reiease Co Code tNs schedule ter each state m wNch they operate HE ADING. i980 TOTAL UNITS CONSUMED TOT AL COST AVERAGE COST PER AVERAGE STU NET GENER AfloN STU PER KiedO OF FUELiuteli oF tee ASURE (thousands)

(thousands of 8)

Unit tsul6cn Stu CONTENT (a)

M whr (thousands)(b)

NETkwtw under Boders:

1. Coai(Tons).

2,124 78,191

$36.81 147.17 12,507 5,162,435 10,378 i.,

2. Coke (Pounds, i s.2

3. Lignite (Tons).

toa 4.

ig.

5. Oil (Barrels). f el 78 2.309

$29.60 514.58 137.026 ie s 6.

ige

7. Gas (MCF).

i g,y 8-ios

9. Subtotal-Steam Conventional.

80,500 150.256 x, g xxxxxxxxxx 5.162.435 10.378 is.o xxxxxxxxxxxxxxx xxxxxxxxx erHernas Combusuon Enen.und Gas

10. Oil-Cambustion Tttrbine. (Barrels).

is.in !

105 2.947 828.07. 490r8Qf

- 136.372 41.624 14.427

11. Oil-Internal Combustion (Barrels).......

is.i t 13 83.l 1ji 595 55i 138.800 221 9.955 L

~

12. Gas Combustion Tu,rbine..(MCF.).

l.s97 s.890 A 3 69 361.48 1,019,980 108,686 14,992

13. Gas-Internal Combustion (MCF).

39.33

14. Subtohl(Lines 10.11,12,13).

io s.

xxxxxxxxxxxxxxx 8,850 xxxxxxxxx xxxxxxxxxxxxxxx 150,531 Nuclear Generanon

15. NucleRr(Grams) 27(f)

(48.702) is is N.377 (d)xxxxxxxxx 3 60.Ihg xxxxxxxxxxxxxxx 5.264.264

_10.602

13. TOTAL ALL FUELS,

• • • • """"*"5""""

is.ie R$ Expresa m units of Ibo of coal and coke.cutnc rest of wood and gas. gasons of od. and grams of nuclear fust (c) sickade m sohd fuela equivalent tons for od and gas used m startmg up bodars (b) E stenate Not Generaten by type of fusi d actual data is not evadable (d) Should agree with Fuelin Schedule IV-page 5. e not explan.

(e) Includes oil for starting coal-fed boilers; generation (f) Cost of oil used for non-generation purposes at TMT nuclear by oil not available.

station. No nuclear fuel was consumed in 1980.

SCHEDULE XX-EFFICIENCY OF STEAM-ELECTRIC GENERATING UNITS-List the most efflcaent units (up to ten) which were operated at an annual capacity factor of 50 % or Leder.

AVERAGE ANNUAL FUEL COST PER NET NAteE OF STATION UNIT 000.

• NET CAP AS4LITY (KW)

HEAT RATE KWHR GEteERATED Titus 1

80.000 10.753 16.56 Milln Titus 2

80.000 11.011 16.98 Mn1n Titus 3

80.000 10.671 16.39 M111n Portland 1

156.000 10.493 15.98 Milln Pe#1and 2

2M Ann 11h enn - nyh 1

146.'000 10'171 IAMA(iMs-10 14.6h Mill" conemaudh 2

140.000 10.08s 14.s6 M111 n -

m a

e

• Winter Rating

PACE E 20 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31, 1980 PAGE E-20 Company Rqttopplilan_2dison CO. & Subsidiary State of Pennsylvania Total System El SCHEDULE XXI-CHANGES IN GENERATING UNITS Compan.es operateg m more than one state should comp 4ete this schechsle for each state m s.hch they operate DO NOT FILL IN eel Use Only Year Regon State Co Type Refeese Co Code HE ADING. t 980 RATING IN NET nILOWATTS(al Date IR, NAME AND LOCATICN Or STATIONfa)

TYPE (b)

Nemoplate(c)

Capability Statue (d)

Servicefe)

None i

-a i

Ia) Indicate eth (J) company portaon only of units or statens pntly owned with others (b) msert symtnl SC-Steam. Conventonal. SN-Steam. Nuclear; H-Hydro; PS-Pumped Storage. l->temal Combushon GT-Gas Turbee. GEO-Geothermal.

CC-Comtuned Cycle.

(c) Geve menufacturers mansnum nameplate ratco of the turbee-generator set (d) msert 6pmbol Rr-Rerated. At-Retred, A-Added. U-Uncer Constructen and An-Authonzed buy not under Constr m ro,-s added. s-e.., da,. ot -e,c., o-aten ro, -s under cons _ or autmod. es a,. the -,n and,ea, NOTES & REMARKS:

1 e

v PAGE E-21 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31, 1980 PAGE E 21 Company Metropolitan Edison Co. & Subsidiary State of Pennsylvania Total System 'd SCHEDULE XXil-MILES OF ELECTRIC LINE OPERATED AND OTHER PHYSICAL DATA Cow owaws e more an one sw. se eme en icnesse for eacn state a we my owate Do NoT FILL IN EEI Use Onfy Year Regaon State Co Tree Rownse Co Code MEADedG 1980 MILES OF ELECTRIC LINE OPERATED OVERHEAD LINES UNDERGAOUND UNES DESIGN LINE Conduft VOLTAGE-KV Poie Miles Circuit Miles Bank Miles Cable Miles Transmission Under 22 Kv 22.1 22 Kv and over 22 to 30 Kv 22 2 78.72 82.11

.04

.12 31 to 40 Kv 22 3 41 to 50 Kv 22 s 392.93 455.15

.06

.10 51to70 Kv 22 s 292.41 325.55 71 to 131 Kv 22 e 2.73 2.73 132 to 143 Kv 22 7 144 to 188 Kv 22 8 278.3L 359 09 189 to 253 Kv 22 9 254 to 400 Kv 22to 186.h0 186.ho 401 to 600 Kv 22 ii 601 to 800 Kv 22.12 Total Transmisson.

2213 1.231.53 1,h11.03

.10 30 Distribution 10 505.R 716.h7 2,2h5.63 Under 22 Kv 22 14 22 Kv and oser.

22 to 30 Kv 22.t 5 31 to 40 KV 22 16

_ 228.50 2 % 26 23.09 53.62 41 to 50 Kv 22 i r 51 to 70 KV 22 18 Over 70 KV 22 19 10,913.82 739.56 2,299 25 Total Dstnbuton.

222c 12,lk5.35 739.66 2,299 55 GRAND TOTAltT&D).

22 21 OTHER PHYSICAL DATA Number Cappcity (Mva) 1 Ostnbuten Substatens(Includes Utahty OwnedIndustnalSubstanons)

Sh*

2,630,200

2. Une Transformers (#rcludes Network Transformers; 111,315 4,119,943.5 i

-...,...,