ML20203H839
| ML20203H839 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 04/24/1986 |
| From: | Hukill H GENERAL PUBLIC UTILITIES CORP. |
| To: | Harold Denton Office of Nuclear Reactor Regulation |
| References | |
| 4410-86-L-0068, 4410-86-L-68, 5211-86-2071, NUDOCS 8604300031 | |
| Download: ML20203H839 (25) | |
Text
-
ENuclear
!!.u"re%"re" "
Route 441 South Middletown, Pennsylvania 17057 0191 717 944 7621 TELEX 84 2386 Writer's Direct Dial Number:
April 24, 1986 5211-86-2071 4410-86-L-0068 Mr. Harold Denton, Director Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, DC 20555
Dear Mr. Denton:
Three Mile Island Nuclear Station, Units 1 and 2 (THI-1 and TMI-2)
Operating License Nos. DPR-50 and DPR-73 Docket Nos. 50-289 and 50-320 1985 Annual Financial Reports In accordance with the requirements of 10 CFR 50.71(b) and 10 CFR 140.21, the following financial information it being submitted:
-1985 GPU Annual Report
-1985 GPU Uniform Statistical Report
-1985 GPU Actual source and Application of Funds Statement
-1986 GPU Forecast Source and Application of Funds On April 4,1986, Oyster Creek Nuclear Generating Station submitted the 1985 GPU Annual Report. The report was submitted for Operating License No. DPR-16, Docket No. 50-219. We request that the Oyster Creek submittal be reviewed in conjunction with this submittal, and a single fee be assessed for the three units.
Sincerely, H. D. M ill Director, TMI-1 HDH/SM0/spb Attachments y dOf 0561A F604300031 060424 PDR ADOCK 05000209 I
PDR lsff '
GPU Nuclear Corporation is a subsidiary of the General Public Utilities Corporation
e GENERAL PUBLIC UTILITIES CORPORATION & SUBSIDIARIES l
SOURCE & APPLICATION OF FUNDS - ACTUAL 1985 l
(5 milions) l GPU GPU GPU Jersey Consolidated Eliminations Corporation Service Central Met-Ed Penelec Sources of Funds l
i Internal Sources Depreciation & Amortization 5 252 5 (3)
$ 3 5 99 5 79 5 74 Deferred Energy Costs 215 157 26 32 Deferred Taxes /ITC Net 1
11 (12) 2 Amortization of Noclear Fuel 27 22 3
2 Change in Mg. Capital & Cash Changes
- 14 3
66 5(ol35)
(20)
Total Internal Sources 5 5G9
)
M 5 355
) w External Sources Long-Term Dect 5 80 5 20 3
12 5 28 5 20 Preferred Stock Shcrt-Term Scrrowings (95)
(95)
Total External Sources
> (12)
> (o3) 5 ~TE 5 c5 Total Scurces 5 494 5 23 5 272 5 89 5 110 Apolication of Funds Construction 5 408 5 21 5 206 5 84 5 97 Maturities & Sinking Funds 86 2
66 5
13 Total Apolication of Funds 5 494 5 23 T"7T2 5 69 5 110 Casitalization Lcng-Term Gebt 5 1868 5 (4) 5 5 46 5 775 5 440
$ ell Preferred Stoct 483 169 140 134 Ceccon Equity 1744 (1733) 1744 836 374 s2a Tctal N
M b 44 4c louu 7
TTJE Shcrt-Term Debt Total TTUsi T[T737)
TT7U N
E N
TTTJE
- Includes retained earnings
- _... _. - -... - ~. -
3 O
i i
)
\\
i a
o,>
4 s '
GENERAL PUBLIC UTILITIES CORPORATION & SUBSIDIARIES l
1 SOURrE & APPLICATION OF FUNDS - FORECASTED 1986
($ Millions)
GPil GPU GPU Jersey Conso1* dated Eliminations Corporation
- Servite, Central Met-Ed Penelec.
t t,
3-3 Sources of Funds J
Internal Sources i
Depreciation & Amortization
$ 240
$ 100
$ 65
$ 75 Deferred Energy Costs 32 22 2
8 Deferred Taxes /ITC Net 64 31
- 16 17-I Amortization of inuclear Fuel 24 15 6
3 l
Change in Wkg. Capital & Cash.Ch Ages
- 138 3
Total Internal Sources T T9E 1
57 T W'42 T~U7
-$ loo 29
~55 s..
' External Sources Long-ierm Detf J.
~ Preferred Stock 50 50
\\Short< Term Borrowings 9
9
\\. Total,Ev.tunal Tources
$ W W
' Total Sources
$ 557
$3
$ 269
$ 127
$ 158 Application of Funds Construction
' v.,
$ 503 Maturities & Sinking Funds 54
$ -3
$ 244
$ 124
$ 132 25 3
26 Total Application of Funds N
D T 769' TT17
> 158 2
Capitalization 5 752
$ 436
$ 57' 7
Long-Ierm Debt
$ 1762
~
Preferred Stock r522.
229 149 134 Common Equity
>1896 1893) 18 %
90/
418 Sbs Total T~4TEU
)
TE9ii mu 9n E
Short-Term Debt 13 M,
Total N7 T[TEII)
T TEE TTsd7 T 997 sino
- Includes retained earnings i-t
'l 4
.-1_..
E~'1'73 GPU AND SUBSIDI ARY COMPANIES 1985 UNIFORM l STATISTICAL!
REPORT
== en =a m IM This report should be read in conjunction with GPU's 1985 Annual Report to stockholders.
ELTr~::17E~::3X::EXXX:XEC3
UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 (To Arnerican Gas Association. Edison Electric Institute and Financial Analysts)
Please submit the required pages to tne American Gas Association erwor the Edson Electric Institute for use in compiling statistics put*shed in AGA's Gas Facts and EEra Stathtical Yeartook. Also fumish a copy of the Company's Annual Report to Stockholders with the USR or as soon as the annual report becomes avaHable.
AR energy and dollar amounts should be reported in thousands Because this report is froouently used in conjunction Wth the Company's Annual Report to Stockholders, the data included herein should scree with the comoerable information in such Annual Report. To assure accuracy and wcay, numerous crossses and footnotes have been appended to the schedules so that the statistics for the same item shown on rnore than one schedule w68 be identical Name and Address of Company GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES 100 INTERPACE PARKWAY PARSIPPANY, N. J.
07054 - 1149 Ust Affiliated Companies, Indicate Relationship (Parent, Subsidiary, Associate, etc.) and identify Nature of Business GENERAL PUBLIC UTILITIES CORPORATION GPU SERVICE CORPORATION (SUBSIDIARY)
GPU NUCLEAR CORPORATION (SUBSIDIARY)
JERSEY CENTRAL POWER & LIGHT COMPANY (SUBSIDIARY)
METROPOLITAN EDISON COMPANY (SUBSIDIARY)
PENNSYLVANIA ELECTRIC COMPANY (SUBSIDIARY)
CHERRY HILL FUELS CORPORATION (SUBSIDIARY)
IndMdual Fumishing Information Information Release Name F.A. Donofrio X
Yes, individual company data may be released.
Title Comptroller No, indW company may not be released Toisphone No.
(201) 263-6458 m,,
F.A. Donofrio March 18, 1986 Date This Report Re6 eased THIS REPORT HAS BEEN PREPARED FOR THE PURPOSE OF PROVIDING GENERAL AND STATISTICAL INFORMATION CONCERNING THE COMPANY AND NOT IN CONNECTION WITH ANY SALE, OFFER FOR SALE OR SOUCITATION OF AN OFFER TO BUY ANY SECURITIES.
UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES Company TABLE OF CONTENTS ELECTRIC P_ age,, Schedule 1
1 GENERAL STATISTICS Operating Revenues by State and Jurisdiction Subsidiaries and Leased Companies included in Operating income Utility Systems Acquired, Sold or Otherwise Disposed of Changes in Communities Served Population and Square Miles of Territory Served FINANCIAL AND ACCOUNTING STATISTICS Statements of income, Retained Earnings, and Common Stock Data 2
11 3
Ill Notes to Statements of Income and Retained Earnings....
Functional Details of Operation and Maintenance Expenses 5
IV Taxes.
6 V
7 VI Balance Sheet 7a Via Detail of Capital Stock and Long Term Debt Outstanding by issues..
8 Vil Notes to Balance Sheet.
Utility Plant by Functional Accounts.
9 Vili Notes to Utility Plant by Functional Accounts 10 IX Additions and Retirements to Utility Plant-Current Year 10 X
11 Xl Changes in Securities During the Year 12 Xil Statement of Changes in Financial Position.
EMPLOYEE DATA 13 XIll Number of Employees Salaries and Wages Pensions and Benefits OPERATING STATISTICS-ELECTRIC E-14 XIV Classification of Energy Sales. Revenues and Customers Classification of Industrial (or Large Light and Power) Energy Sales and Revenues...
E-15 XV
(
Source and Disposition of Energy E-16 XVI Maximum Demands and Net Capability at Time of Company Peaks-Calendar Year.......
E-17 XVil GENERATING STATION STATISTICS-ELECTRIC E-18 XVill Generating Station Statistics.
E-19 XIX Fuel Consumed for Generation Efficiency of Steam Generating Units E-19 XX E-20 XXI Changes in Generating Units E-21 XXil MILES OF ELECTRIC LINE OPERATED AND OTHER PHYSICAL DATA Transmission Distribution Substations and Line Transformers
PAGE 1 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 PAEE 1 CENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE I-GENERAL STATISTICS 1.
Report information for states in which Company operates: (if more space is needed please submit additionalpage.)
Percent of Operating Revenues Percent of Subject to Rate Regulation State (s)
Operating Revenues State (s)
FERC New Jersey 51%
50%
1%
Pennsylvania 49%
48%
1%
2.
Name(s) of subsidiaries and leased companies included in Operating income, Line 16, Schedule 11, Page 2 of report: (If data are included for less than full year, please indicate.)
GPU Service Corporation ("GPUSC")
GPU Nuclear Corporation ("GPUN")
Jersey Central Power & Light Company and Subsidiary ("JCP6L")
Metropolitan Edison Company and Subsidiary (" Met-Ed")
Pennsylvania Electric Company and Subsidiaries ("Penelec")
Cherry Hill Fuels Corporation 3.
Utility systems acquired, sold or otherwise disposed of: (Indicate the period for which these acquisitions or sales are reflected in this report.)
ACQUIRED DURING YEAR SOLD OR OTHERWISE DISPOSED OF DURING YEAR Name of System & Date Number of Customers Name of System & Date Number of Customers NONE NONE 4.
Changes in Communities Served: (Indicate whether community is or was served at wholesale or retaillevel by inserting a (w) or an (r) after name of community. Identify separately as Electric or Gas.)
COMMUNITIES ADDED DURING YEAR COMMUNITIES TRANSFERRED OR LOST DURING YEAR Name of Commurwty & State Previously Served By Name of Community & State Now Served By NONE NONE 5.
Population and Square Miles of Territory Served:
POPUt.ATION SERVED SOUARE MILES OF TERRITORY SERVED Electric Gas Electric Gas 4,403,000 Retail 1.1, 61,000 Wholesale.
1,2, 4,464,000 24,145 Total 1.1 12/31/85 12/31/85 Estimated as of
PAGE 2 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 PAGE 2 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES Company SCHEDULE Il-STATEMENTS OF INCOME AND RETAINED EARNINGS (Thousands of $)
FOR NOTES-SEE SCHEDULE lil-PAGES 3 & 4 Steam Heat INCOME Total Electric Ga.
& Other 2,869,509 2,866,379 3,130 l
- 1. Operating Revenues (a)(b) 2.1, l
Operating Expenses:
1,738,779 1,736,377 2,402 2.
Operation (c) 2.2.
3.
Maintenarre.
2.3.
229,637 229,212 425 4.
Depreciation 2,4 223,324 223,043 281 5.
Depletion 2.5.
6.
Amort. Charged to Operation (d)(e) 2.6.
25,343 25,343 7.
Property Losses Charged to Operation 2.7 8.
Taxes Other Than income Taxes 2.8.
264,977 264,897 80 9.
Federal Income Taxes (f)(g) 2.9.
83.738 83.737 1
10.
State income Taxes (f)(g) 2.10 16,649 16,639 10 11.
Deferred income Taxes 4harges 2.11, 68,852 68,725 127 12.
Deferred Income Taxes-Credits 2.12
(
143,051 [
143,053 [
] [
41 13.
Investment Tax Credit Adjusts. (Net)(f) 2.13.
88,808 88,772 36 14.
2.14,
- 15. Total Operating Expenses 2.15, 2,597,050 2.593,692 3,358
- 16. Operating income 2.16, 272,459 272,687 (228)
- 17. Other Operating income (h) 2,17,
- 18. Total Operating income 2.18, 272,459 272,687 (228)
- 19. Allow. for Other Funds Used Dunng Constr (i) 2.19.
8,923 Summary of Common Stock Data
- 20. Other income Less Deductions-Net (e)(h) 2.20, 3.386
- 21. Minority Interest 2.21 12.43. l$ 1.54 N5Yr share based on
- 22. Income Before Interest Charges 2.22.
284,768 6Z, average number interest Charges:
of shares outstanding during 23.
Interest on Long-Term Debt (j) 2.23, 145,794 year.
24.
Interest on Short-Term Debt 2.24 5,395 2.44-l Book value per share S.27.74 25.
Amort. of Debt Dim. Exp. and Prem. (Net) 2.25.
(1,595) e se 2.26.
8,318 12.45. IMarket value: Hi I7 I/4 26.
Other Interest Ex n
27.
Allow. for Borrowed Funds Lo 10 3/4 Used Dunng Constr.-Credit (i) { l.).
2.27 I
9,62)
Close 17 1/8
- 28. Net interest Charges 2.28, 148,291
- 29. Income Before Extraordinary items 2.29.
136,477 l2.46. IReturn on average common equity 5. 7.,,,
[
- 30. Extraordinary items. Less Taxes (h) 2.30.
- 31. Net income 2.31 136,477 Quarterly dividends paid per share:
- 32. Pfd and Pfc Dividend Requirement (j) 2.32.
39,971 2.47, 1st qtr.
- 33. Available for Common Stock.
2.33, 96,506 2.48. 2nd qtr.
2,49, 3rd qtr.
- 34. Common Dividends 2.34,
- 35. Net income After Dividends 2.35.
96,506 2.50. 4th qtr.
Year None RETAINED EARNINGS
'9
- 36. Balance. Ja ap 1.p.
Securities and Exchange Commission terYgognEh... d Div'ide'nds 6,506 k) 2.37 Fixed Charge Coverage:
- 37. Net income
- 38. Pfd and Pfc Dividends Declared 2.38,
- 39. Common Dividends Declared-Cash 2.39, 2.51 Including AFUDC
- 40. Common Dividends Deciared-Other(k).
2.40, 2.52. Excluding AFUDC
- 41. Adjustments (f) 2.41
- See Ind ividual Subsidiary USR 823,418 Reports
- 42. Balance. December 31 2.42.
(1) Includes Income Taxes attri-butable to AFUDC of (1,219).
PA2E 3 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 PASE 3 CENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES Company SCHEDULE lil-NOTES TO STATEMENTS OF INCOME AND RETAINED EARNINGS (Thousands of $)
INCOME-SCHEDULE Il-PAGE 2 (1) If sales of bysroducts are handled as operstmg revenue, report here the amount of byproduct revenue (ecbded on L>ne f) $
and product extracten expense (ccOded on l>nes 2 and 3) $
(b) Operasng Revenues eclude: Revenues colected under bond or subject to refund: Electne
- Gas $
Unbded revenues: Electnc $
Gas $
Indicate retail (R) and wholesale (W) jurisdictional increases / decreases in revenues over the prior year resulting from base rate in-cr:ases/ decreases granted and/or billed:
Electne Gas Amount Amount Effective included n Effectrve included in Junsdction Date Annualtzed Current year Junsdicton Date Annualized Current year See CPU 1985 Annual Report, Page 30 Note: Amounts collected on an etenm base should be shown as a rate increase n the year authonzad and not as a part of the total merease granted with the fmal rate order (c) Operatng Expenses-Operaten meludes:
Amounts subject to refurd:Electrc
- Gas $
Sgndicant amount of rents t for for See Individual Subsidiary 1985 USR Rer> orts for for for (c) includes amortaaten of adNstments to apphances for gas conversons $
(t) Amortizaten of Plant Acquismon Adystments included on Loes 6 and 20. Page 2.
Electnc $
Gas S Other 5 (f) investment Tax Credit Electre Gas Other Total Normahzed.
3.1, 103,687 45 103,732 Less: Amortued (over years).
3.2.
14,915 9
1'.,924 88,772 36 88,808 Net 3.3.
Flowed Through.
3.4 FEDEAAL STATE (g) Not Reducten m inc. Taxes (Not Normahzed)
E'wtnc Gas Other Electne Gas Other Accelerated Arnortzaten Property.
3.5, Other Property 3,6.
(22,082)
(3.486)
Other (Specify) 3,7, 2,380 499 Toti 3.8.
(19,702)
(2.937)
- Investment tax credits (ITC) are being amortized over the estimated service lives of the related facilities.
i PAGE 4 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 PAGE 4 CENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES Company l
l SCHEDULE Ill-NOTES TO STATEMENTSC INCOME AND RETAINED EARNINGS (Thousands of $)
(continued)
(h) Detad mapr items and amounts and all ecome taxes included n-Other Operateg ecome (nebding ecome Taxes of $
)
f 4,097 3
Other income toss Deductons-Net (Incbdeg income Tares of $
(tr net merchaneseg ecluded, give amount)
See Individual Subsidiary 1985 USR Reports Extraordmary items (incbdeg income Taxes of 5
)
(i) Give descnoton of method used to determee Allowance for Funds Used Dunng Construction (inebdeg rate app #ed. gross vs. net of tar method, type of con.
StrUCOon or $12e of job Covered. and penod of Ome used to esclude jobs of short duraton)
See GPU 1985 Annual Report, Page 34, Note 2 Q) Annual eterest and Preferred and Preference Dividend Requirement calculated on amounts (incOding due w@n f year) Outstandmg at Dec 31.
Long-Term Deet s 151.297 pre,e, red and preference stoca s 39.664 RETAINED EARNINGS-SCHEDULE Il-PAGE 2 one (b) Details of Common Dividends Declared-Other than Cash Noite (1) Detads of mapr items and amounts included in Adjustments to Retained Earnings NOTES & REMARKS:
UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1986 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES c
_j SCHEDULE IV-FUNCTIONAL DETAILS OF OPERATION AND MAINTENANCE EXPENSES (Thousands of $)
Steam IIcat and Other ELECTRIC Total Operatum Mantenance Total opershon
- - - - r:e Production:
431,200 431,200 1,141 1,141,c 1.
Fuel (a).
4.1, 550,976 550,976'
,,,,,,,,,,,,,,,~,,,,,,,,,,,,,,,,,,
y,,,o,,,,,,,,,
2.
Purchased Power (Net)(a).
4.2 3.
Purchased Gas (Net)(a).
4.3.
an nimun u n n nunnunnu nanunannan
...oninnson 4.
Other Prod. Expenses (a) 4.4 594,444 452,258 142,191 907 991,o3 6
,o, S.
Total Production.
4.5.
1,576,625 1,434,434 142,191 2.138 2.132 6
- 6. Storage & Liquefied Natural Gas.
4.6.
nuxxxxxxuxum nunxxuxuun unminsinunni 34,189 22,728 11,461
- 7. Transmission.
4.7 127,022 59,060 67,962 441 80 361
- 8. Distnbution.
4.s.
55,954 55,954 36 36
- 9. Customer Accounts 4.9, 16,404 16,404
- 10. Cust. Service & Info.
4.10
- 11. Sales 4.11, 155,395 147,797 7,598 212 154 58
- 13. Administrative & General 4.12 1,965,589 1,736,377 229,212 2,827 2,402 425 13.
Total 4.13.
l4.14. I
- 14. Credit Residuals included in Line g
4 215,717 (36) e==:iudes charge. or (crede nor mened suas com m tme
. g%
(b) See Note (d). Schedulo XIX-Page E-19.
(c) Inchmse only fuel used a prn +.w of gas.
(d) hctudes exploramon and development coess of prospective gas produang fields [4.15. ] 5 NOTES & REMARKS:
o m
cs
PACE 6 UNIFORM STATISTICAL REP'JRT-YEAR ENDED DECEMBER 31,1985 PACE 6 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES Company SCHEDULE V-TAXES (Thousands of $)
ACCRUALS CHARGED To:
Taxes Other Than income Taxes:
OPERATING EXPENSES-TAXES ALL oTHER State and Local:
Totes Electdc Gee Omer Depto.
ACCOUNTS (a) 1.
Property, Ad Valorem, etc.
5.1 18,199 18,165 34 191 2.
Franchise 5.2.
44,210 M,2M 3.
Gross Receipts..
5.3.
175,190 175,190 Capital Stock 5.4 6,410 6,385 25 4.
5.
Miscellaneous 5.5.
6,624 6,616 8
5,774 6.
Total State and Local Taxes:
5.6.
250,633 250,566 67 5,965 Miscellaneous Federal Taxes 7.
Payroll 5.7 14,344 14,331 13 9,701 8.
5.8.
9.
Total Miscellaneous Federal Taxes 5.9.
14,344 14,331 13 9,701 10.
Total Taxes Other Than income Taxes 5.10.
264,977 264,897 80 15,666 Income Taxes-Current:
11.
Federal income Taxes 5.11 83,738 83,737 1
5,686 12.
State income Taxes 5.12.
16,649 16,639 10 225 13.
Total income Taxes Current 5.13.
100,387 100,376 11 5,911 Deferred Income Tax-Charges:
Federal:
14.
Property Related(b) 5.14, 58,339 58,248 91 15 15.
Non-Property Related 5.15.
3,645 3,635 10 249 16.
Total Federal Provision.
5.16.
61,984 61,883 101 264 State:
17.
Property Related(b) 5.17 7.046 7,025 21 3
18.
Non-Property Related 5.18.
(178)
(183) 5 30 13.
Total State Provision 5.19.
6,868 6,842 26 33 Deferred income Tax-Credits:
Federal:
20.
Property Related(b) 5.20.
I 18,069 I i 18,069 1 I
I
(
l
[
]
21.
Non-Property Related 5.21 I 116,728 1 l 116,725 1 I
I I
3 1
[
3,141 1 22.
Total Federal Portion 5.22.
I 134,797 1 134,794 1 t
1 I
3 1 r
3,141 1 State:
23.
Property Related(b) 5.23.
I 2,770 1
[
2,770 1
(
l t
1
[
I l
24 Non-Property Related 5.24 I
5,490 l I
5.489 1 I
I i 1 1
[
182 1 25.
Total State Portion 5.25.
I 8,260 1 I
8,259 1 I
1 I
1 I
[
182 1 26.
Investment Tax Credit Adjustment (c) 5.26.
88,808 88,772 36 26 27.
Job Tax Credits.
5.27
- 28. Total Tars.
5.28.
3 70. 967(os 379,717(d)
(o) 250 to>
18,577 (a) Such as Utsty Plant. Other incorne Deductons. Estraordinary items. Cleann0 Accounts. Retamed Eammgs, etc.
(b) Report amount e Acceterated Amortizanon and Liberahzed Deprecaton (FERC System of Accounts 28f and 282).
(c) Amount of Investment subiect to investment Tax Credd. Electnc Gas Other Departments (d) Should equal Total of Lines 10.13.16,19. 22,25. 26 and 27 and Total of Lines 8. 9.10,11,12 and 13. Schedule 11-Page 2 Notes & Remarks (Please empiaan any unusualitems arrecteg tames):
UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 Company CENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY CO>fPANIES SCHEDULE VI-BALANCE SHEET (Thousands of $) FOR NOTES-SEE SCHEDULE Vll-PAGE 8
'm N
ASSETS CAPITALIZATION AND LIABILITIES Utihty Plant:
Capitahzaton:
Plant in Service 1.
Electric 6.1, 5,096,555 37.
Common Stock (b)....
6.37 157,159 2.
Gas.
6.2 38.
Capital Stock Expense 6.38 (18,056) 3.
Common 6.3 39.
Premium on Common Stock (if not in Line 40).
6.39 4.
6.4, 40.
Other Paid.In Capital (c) 6.40, 781,558 5.
Total Plant in Service.
6.5.
5,096,555 41.
Retained Eamings(d) 6.41 823,418 6.
Accum Prov for Depr & Amort 6.6.
(l,564,325) 42.
Total Common Stock Equity.
6.42, 1,744,079 7.
Construction Work in Progress 6.7 252,253 43.
6.43.
8.
Nuclear Fuel (Incl.Nuc. Fuel Cap. Leasc) 6.s.
231,907 44.
Preferred and P.eference Stock not subject to.
6,44, 424,739 10.
Inves tracn t in TMI-2, net (1)...
6.9 (56,809)
Mandatory Redemption (b) including premium 9.
Accum Prov for Amort of Nuclear Fuel 6.10, 508,277 45.
j,,
Held for future use/ Capital Leases Preferred and Preference Stock Subject to Mandatory 6.45, 58,300 6.11 67,238 Redemption (b) (Excl. amt. due within one year) 12.
Net Utihty Plant 6.12 4.535.096 Long Term Debt:(Exct. amt. due within one year) 13.
Gas Stored Underground (Non-Current) 6.13 46.
Mortgage Bonds.
6.46, 1,591,238 14.
6.14 47.
Debentures (f) 6.47 189,780 15.
Other Property and investments (Net)(a) 6.15 I1,004 48.
Other(g).
6.48 35,293 49.
6.49 Current and Accrued Assets 50.
Total Long-Term Debt.
6.50.
1,816,311 16.
Cash. Spec. Dep., Wkg. Funds & Temp. Cash inv.
6.16, 228,556 51.
Total Capitahzaton (Exct. amt. due within one year) 6.51 4,043,429 17.
Gas Stored Underground (Current) 6.17 Other Non-Current Liabihties:
18.
LNG Stored & Held for Processing 6.18, 52.
Accum. Prov for Rate Refunds 6.52, 19.
Notes Receivable.
6.19, 53.
Other (3')
6.53, 122,099 20.
Customer Accounts Receivable (Net) 6.20 200,687 54.
Total Other Non-Current Liabihties 6.54 I22,099 21.
Receivables from Investor Owned Elec. Cos.
6.21 3,709 Current and Accrued Uabihties:
22.
Other Recervables 6.22 I1,393 55.
Amounts Due within one year (h).
6.55, 51,736 23.
Accrued Unbilled Revenues......
6.23, 56.
Short. Term Debt (s) 6.56.
24.
Materials and supphedID b.F.uel. Invent.orled 6.24 I72,325 57.
Acets. Payable (Excl. amt. in Line 58).
6.57, 212,911 25.
Prepayments 6.25 18,293 58.
Payables to investor Owned Elec. Cos.
6.58.
26.
Other Current and Accrued Assets 6.26, 45,308 59.
Taxes Accrued (e) 6.59 136,142 27.
Deferred Energy Costs 6.27 (27,137) 60.
Other Current and Accrued Liabihties.(4).
6.60 154,519 28.
Total Current and Accrued Assets 6.28, 653,134 61.
Total Current and Accrued Liabilities 6,61 555,308 Deterred Debits:
Deferred Credits:
29.
Unamortized Debt Expense.
6.29 6,151 62.
Accumulated Deferred income Taxes (e) 6.62 690,706 30.
Unamortized Converson Costs 6.30 63.
Accumulated Deferred investment Tax Credats(j).
6.63.
230,276 31.
Extraordinary Property Losses 6.31 289,433 64.
Customer Advances for Constructen 6.64 I1,570 32.
Deferred Fuel Costs 6.32, 65.
Other Deferred Credits (5)..
6.65.
135,279 33.
Other Deferred Debits ( 2)....
6.33, 292,602 66.
TMI-2 C1ennup Costs 6.66.
387,614 34.
TMI-2 Cleanup, net of recoveries
- 6.34, 388,861 67.
Total Deferred credits 6.67 1,455,445 g
35.
Total Deferred Debits.
6.35 977.047 68.
6.68.
- 36. Total Assets 6.36 6.I76.281 69.
Total Capitahzation and Liabihties.
p 6.69 6,176,281 m
N
PACE 7A UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 PA?E 7A I
GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES Company SCHEDULE Vla-DETAll OF CAPITAL STOCK AND LONG TERM DEBT OUTSTANDING BY ISSUES For Stock; show rate, par value, shares and arnount. Ust separately, amounts applicable to redeemable preferred stocks, as defined by the Secunties and Exchange Commission, other preferred stocks, and common stock. For Debt: show series, rate, maturity date and amount. Group by typs and show totals for each type.
I Description of issues Amount (Thousands of $)
See Pages 7b and 7c 1
PA2E70 LONG. TERM DEBT OF THE SYSTEM In Thousands December 31,1985 Jersey Central Power & Light Company:
First Mortgage Bonds - Series as noted:
4%% due 1986.....$ 9,456 6%% due 1997...$25,874 8%% due 2003.
. $48,154 5 % due 1987... 13,806 7%% due 1998*
.. 8,000 8%% due 2003
. 29,840 i
4%% duc 1988*.... 7,500 7%% due 1998.... 24,191 9%% due 2006.... 59,748 5%% due 1989.... 4,524 12 % due 1999
. 46,666 9%% due 2006.... 35,000 4%% due 1990*.... 5,000 8%% due 1999
... 8,022 8%% due 2007... 59,899 4%% du 1992... 10,153 11%% due 1999.... 44,333 9 % due 2008... 49,950 4%% due 1993
.. 14,477 10 % due 2000..... 11,995 7%% due 2009... 6,300 4%% due 1994
.14,317 8%% due 2000
.15,656 7%5/o due 2015.... 12,200 4%% due 19e;
. 17,430 8%% due 2001.... 32,887 Multiple rate series due 6%% due 1996... 25,701 8 % due 2001
.. 24,093 1986/91......... 5,000 6 % due 1997*... 10,000 f, % due 2002
. 23,569 Current maturities and sinking fands....(16,457)
'l Debentures - Series as noted:
$ 687,284 4%% due 1988.
.5 5,040 5 % due 1990*. 5 3,000 9%% due 1996... $18,000 4%% due 1989*.... 3,480 5%% due 1990
... 5,400 8%% due 1998..... 22,200 4%% due 1989... 2,900 6 % due 1992... 9,300 Current sinking funds (1,180) 68,140 Other long-term debt..
2,771 (2,771)
Other current obligations......
(%2)
Unamortized net discount on long-term debt Total.......
754,462 Metropolitan Edison Company:
First Mortgage Bonds - Series as noted:
4%% due 1987.. 519,000 8%% due 1999
. $25,000 6 % due 2008
.5 8,700 5 % due 1990.
.15,000 7%% due 2001.
. 15,000 9 Vo due 2008..... 50,000 4%% due 1992
.. 15,000 7%% due 2002
.26,000 Multiple rate series due 4%% due 1995
.12,000 8%% due 2003.
.20,000 1986/91.
.. 10,000 10X% due 1995
.28,500 9 % due 2006
.. 50,000 Current maturities..(1,000) 5%% due 1996
.15,000 8%% due 2007
. 35,000 7 % due 1998
.26,000 369,200 Debentures - Series as noted:
4%% due 1990.
.$ 3,480 8%% due 1997....!39,220 8%% due 1998.... 515,200 6%% due 1992
.. 12,800 Current sinking funds (1,860) 68,840 Other long-term debt....
5,543 Other current obligations.....
(5,543)
Unamortized net discount on long-term debt
)
Pennsylvania Electric Company:
First Mortgage Bonds - Series as noted:
3%% due 1986.
.512,500 6%% due 1998
.538,000 7%% due 2006....$12,000 4 % due 1988.... 29,000 8 % due 1999
.. 28,000 6%% due 2007
.. 16,420 5 % due 1989
.. l.*,000 11%% due 1999
. 46,667 9%% due 2008..... 45,000 5 % due 1990..
.12,000 9%% due 2000.... 25,000 8%% due 2015.... 20,000 4%% due 1991
.10,000 7%% due 2001
. 30,000 Current maturities and 4%% due 1994.... 20,000 8%% due 2003
. 30,000 sinking funds.......(15,833) 6%% due 1996...25,000 10%% due 2004
. 50,000 6%% due 1997
.26,000 9%% due 2006... 60,000 534,754 Debentures - Series as noted:
5%% due 1986...$ 6,240 7 % due 1992....$ 6,400 8K% due 1996...$14,000 5 % due 1990... 11,600 8%% due 1996... 21,000 Current maturities and sinking funds.
.... (6,440) 52,800 Other long-term debt....
2,771 Other current obligations..................
(2,771)
Unamortized net discount on long-term debt..
(1,040)
Total....
586,514 GPU Service Corporation:
Multiple rate notes 1986/94................
25,100 First Mortgage Note 13.25% due 2005...
14,398 Other long-term debt..
2,601 Other current obligations..
(3,616)
Total.....
38,483 System Total...................
$g
- 1ssued by NJP&L and assumed by JCP&L.
PATE7C CUMULATIVE PREFERRED STOCK OF SUBSIDIARY COMPANIES Shares Current Total Ca'l Stated Value December 31,1985 Authorized Outstanding Price (In Thousands)
Cumulative Preferred Stock - Mandatory Redemption Jersey Central Power & Light Company:
Cumulative preferred stock - mandatory redemption (no par value) 13.5 % Series F.........
112,500 106.75
$ 11,250 11 % Series G...........................
175,000 105.00 17,500 Current sinking fund requirement...
(25,000)
Total........
Pennsylvania Electric Company:
Cumulative preferred stock - mandatory redemption (no par value) 11.72% Series J.....
125,000 105.86 12,500 10.88% Series K.....
224,000 105.44 22,400 Current sinking fund requirement....
(28,500) 2 850)
Total.
Total-Mandatory Redemption.....
$ 58.300 Cumulative Preferred Stock - No Mandatory Redemption Jersey Central Power & Light Company:
Cumulative preferred stock - no mt.ndatory redemption (no par value)..........
15,600,000 125,000 106.50
$ 12,500 4 % Seies..
250,000 104.08 25,000 9.36% Series....
8.12% Series........
250,000 105.56 25,000 8 % Series...
250,000 105.91 25,000 7.88% Series E....
250,000 105.62 25,000 T624,000 8.75% Series H...
2,000,000 26.65 50 00 Total.
Metropolitan Edison Company:
Cumulative preferred stock - no mandatory redemption (no par value).
10,000,000 3.90% Series.
I17,729 105.63 11,773 4.35% Series.
33,249 104.25 3,325 3.85% Series.
29,175 104.00 2,917 3.80% Series....
18,122 104.70 1,812 4.45% Series..
35,637 104.25 3,564 8.12% Series.....
160,000 105.56 16,000 7.68% Series G.........
350,000 105.56 35,000 8.32% Series H..
250,000 106.16 25,000 8.12% Series 1..........
250,000 105.56 25,000 D,15 000 8.32% Series J...
150,000 105.62 Total.
Pennsylvania Electric Company:
Cumulative preferred stock - no mandatory redemption (no par value)...
11,435,000 56,810 108.25 5,681 4.40% Series B........
3.70% Series C.....
97,054 105.00 9,705 4.05% Series D.....
63,6 %
104.53 6,370 4.70% Series E................
28,739 105.25 2,874 4.50% Series F........
42,% 9 104.27 4,297 4.60% Series G..................
75,732 104.25 7,573 8.36% Series H..
250,000 106.18 25,000 8.12% Series I.....
250,000 105.56 25,000 1,400.000 27.25 35 9.00% Series L......
T2T4,000 0D Total....................
Total-No Mandatory Redemption.
$423,391
$481,691(1)
System Total..
(1) Excludes premium of $1,348.
PAGE 8 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEM ER 31,1985 PATE 8 Company GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE Vll-NOTES TO BALANCE SHEET (Thousands of $)
(1) Dotad rnajor items and amounts including Excess Cost of Investments in Subsadianes consoldated over Book value at Acquisition Date.
Loans to non-affiliated mining companies - $7.775 12/31/85 114,761
- oine, Preferrw Common (b) Number of Stockholders as of Preference (c) includes Premiums on C.ctal Stock:
Preferred $
Common $
Other $
Preference $
(d) Amount restncted from payment of cash drwidends on common stock $ See GPU 1985 Annual Report, Page 37, Note 6
(:) Deferred Federal and State encome Tax Balances:
FEDERAL STATE Electnc Gas Other Electnc Gas Other Accel Amort. Prop-Une No.
7,1, Liberakzed Depr. Prop.-Une No.
7.2 444.170 548 37,544 65 62 60 6 62 7,3, (11,556)
(84)
(4.726)
(19)
Derd Fuel Costs-Une No.
Otner -Une No.
62 7,4, 203,082 168 6,458 38 Total 7,5, 635,696 632 39,276 84
- Elaborate in Notes & Remarks' W segrvfcant.
None (f) includes convert &e secunties (spec #y)
(3,190)
(g) includes Unamortized Premium and Discount (Ner) $
Orner (Desen3,3 First Morteane Notes. $36.964 and Installment Purchases $1.519 46,386 5,350 (h) Long-Term Deta $
. Preferre Sock Subject to uandaery nedemption $
Other (Desenbe) $
(i; y,e, includes Commercial Paper S
. Gas storage loans $
53,529 Average short-term debt dunng year, based on number of days outstanding $
(j) Accumulated Deferred investment Tax Credds:
Electne 7,7, 229.961 Gas 7,8, 315 other 7,9, 7,10.
Total 7,11, 230.276 NOTES & REMARKS:
(1)
Investment in Three Mile Island Unit No. 2 (Including Nuclear Fuel Core)-$797,975 Less Accum. Depr. and Amort.-$289.698.
(2)
Includes Def. Costs-Nuclear Fuel Disnosal Fee-Sb4,990; Def. Costs Oyster Creek Outage, Net-$67,230; Def. Income Taxes-$94,733-(3)
Includes Obligations Under Capital Leases-325.260: Reserve Capacitv-$69.426.
(4)
Incl. oblications Ifnder Canital Leases-963.915: Def. Income Taxes-Enerev-($15.016);
Interest Accrued-$39.650.
(5)
Includes Def. Credits-Nuclear Accident-Cleanun Revenues and State Funds Held in Escrow-$6,841 Def. Credits-Nuclear Accident-Industry Funds Held in Escrow-$7,322; Nuclear Fuel bisposal Fee-$91,257.
n-SCHEDULE Vill-UTILITY PLANT BY FUNCTIONAL ACCOUNTS (Thousands of 5) cONSTRCS E WNG7WsM ag FOR NOTES-SEE SCHEDULE IX-PAGE 10 ACCuM PROV.
O gyy FOR DEPREC..
UTILITY AMORT AND For Reported ESilMATE AS OF j
g PLANTla)
DEPL Yeartd)
Foe Neue Year For 2nd Vr Foe For 3rd Yr Fo#
1985 19e6 1987 198e (Elecirc advl ELECTRIC g.3 7,526
- 1. intangible Plant
- e. i.
C ProductK)n Plant:
h(
e.2 979,534 419,405 57,773 99,000 2.
Steam....
3.
Nuclear *.
e.3.
1,735,327 452.834 79.989 130,000
,O e.4 23,177 7.838 4.417 2.000
@g 4.
Hydro......
5.
Pumped Storage..
e.5.
32,092 6.098 1.195 1.000 Not Avatinhlo
[ un O )>
6 Gas Turbine.......
a s.
7.
Oine,pT, CC,1C )
e.7 225.434 110.846 5.220 6,000 Qy 8.
Total Production Plant.
e.e.
2.995.564 997.021 148.594 238.000 p -!
- 9. Transmission Plant s.s.
738.851 228.779 29.159 38.000 yO
- j'-
- 10. Distnbution Plant e io. 1.937.046 565.232 147.261 152.000 m
e.18 209,836 62,213 52,834 66.000
- 11. General Plant.....
12.
Subtotal s.12.
5,888,823 1,853,245 377,848 494.000 Q]
- 13. Miscellaneous Plant (e)..
a ta.
28,536 172 ig m
)
f
- 14. Construction Work in Progress,
e i4 252.145
. m m... m mmmmm
,,m.m.m m,. m. m a_
============ u
- 15. Plant Acq. Adj. & Other Adj..
e.t s.
15 nimimum mammm m.m...m
. m.........
- 16. Elec. Plant Excl. Nuclear Fuel.
a.is. 6.I6n.504 1.853.432
_._3 7_7_, 84 8an 494,000 gQ
- 17. Nuclear Fuel...
a.i r.
231,907 56,809 29.821,9 8,000 Z2 s. :..
6,401,411 1 910.241 407.669 502,000 g
JgTgEgTRgy.
18.
2 O
GAS m
mCO
- 19. Intangible Plant a.is. '
W D
- 20. Production..
5.20.
Um
$Q
- 21. Underground Storage (g)....
e.21
- 22. Other Storage..
e.22 gg
- 23. LNG Terminakng & Processing e.23 g2
- 24. Transmission a.24 Qy
- 25. Distribution e.25.
ess.
26 General.
E 27.
Subtotal (h).
e.27
- 28. Miscellaneous Plant (e).....
e.28 29 Construction Work in Progress.
e>9 nu m munimman mmmms m m==a m n m ananmsin.
30 Plant Acq. Adg. & Other Adj...
e.30.
. m. m.,,,,
,,,,,, m m
..........u.
31.
TOTAL GAS PLANT e.st, q
OTHER UTILITY PLANT
- 32. St eam Heat & Water
. 32, 5,815,9 591 326 1,000 l
- 33. Capt tal Leases e.33, 38,702,,
1 34 TOTAL OTHER UTILITY PLANT.
s.34, 44,517 591
.s z b_,n 1,000 35.
COMMON PLANTh) s.35.
19 19 3G.
TOTAL UTILITY PLANT e.3s.
6,445,928 1,910.832 407.995n 503.000 t
PATE 10 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMfER 31,1985 PA2E 10 Company GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COWANIES SCHEDULE IX-NOTES TO UTILITY PLANT BY FUNCTIONAL ACCOUNTS (Thousands of $)
j
() Deprecable Property as of December 31:
ELECTRIC:
OTHER-Total Electnc l9.1. l 5,833,310 7,,,, o,n,,
gg-]
5,570 W:
Taal Gas Total Common l9.4. l (b) Composde book deprecaten rate for Depreciable Property as of December 31:
Electnc
% Gas
% Other
% Common
%. Overal Rate (c) Estrnated Constructen Expenddures include Allowance for Funds Used Dunng Construction ~Yes or No_ indcate in total the AFUDC amounts included 25,000 (escluded) ri estimates: Next Year 3 2nd year s 3rd year s (d) Excludes Purchased Property. Report expenddures. rather than transfers to utihty plant.
() incbdes Experrnental Plant Unclassmed. Leased to Others: Held for Future Use: Completed Constructen Not Classified. and Otner (Specify)
. (f) Should agree with Constructen Expenditures shown on Unes 1 through 8. Schedule X below. See Note (b) Schedule X for amounts of Anowance for Funds Used Dunng Constructort (c) beludes non<urrent gas "For Reported Year" $
(h) Estrnated expenddures for compressor faoktes included ri Reported Year 9.5.
Next Year 9.6.
2r d Year 9.7, s
3rd Year.
9.8.
(i) includes intangeles S Une No _
S Une No _
(j) Esnmated amount appicatse to Utsty Plant:i9.9. lElectrc $
Gass
- Other $
Estimated amount apphcable to Accum. Prov. for Deprecaton:19.10. lEiectre S
- Gas S Other $
SCHEDULE X-ADDITIONS AND RETIREMENTS TO UTILITY PLANT-CURRENT YEAR (Thousands of $)
l Constructen Expenditures Purchases &
Gross (aWel Acousthons Additions (c)
Retrements Other Entnes Net Adddons 377,848 377,848 28,132 (15,711) 334,005
- 1. Elec. Excl Nuclear Fuel 10,1,
- 2. Nuclear Fuel.
10.2, 29,821 29,821 9,160 38,981
- 3. Gas 10,3.
Steam Heat & Wan 326 326 108 218 4.
- ioj,
- 5. Pronerty Under 10.5, 6.
Capital Leases 10.6.
16,249 16,249 7.
10,7 8.
Total.
10.8.
407,995 _
407.995 28.240 9.698 389.453 q
(a) Should agree wth Column-Testructen Expenditures-for Repor'ed Year"in Schedule VIII-Page 9UM incudes Asowance nor Funds used Dun $Constructon;110.9. I Eiectne ejciugguciear Fuel $
(b) 9 Nuclear Fuel 8 Gas S
- Other
- Tota! $
(c) Gross Adddons should be the sum of the Construcson Expenddures and the Purchases and Acquisrbon columns (d) The Total Net Adddions should agree wth the not change in Total Ulikry Plant over last you (Une 77, Schedule VI-Page 7). and should be the sum of Gross Adddens (ConstrucDon Espenditures pbs Purchases and Acqustons). less Retirements and plus or minus Other Entnes.
- Excludes income taxes attributable to AFUDC of $1,219.
PATE 11 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEM2ER 31,1985 PASE 11 GENERAL PUBLIC UTILITIES CORPORATION AMD SUBSIDIARY COMPANIES Corripeny SCHEDULE XI-CHANGES IN SECURITIES DURING THE YEAR l
New Securttles issued During Year:
unit prios.
0 To Pubile Amount (b)
Number of (Thousands Proceeds (c)
C_o_stLdl Pm Y_wg Type of h
Date Desertption of leeue(s)
Shares of $)
$ or %
$ or %
g y
(Thousands) of Par of Par (e)
(f)
MoDay Common Issues (g) 1.
2.
3.
Issued 1,270,186 shares per
- he stociholder Litigati an sett1 2 ment 4.
5.
6.
7.
Preferred and Preference Stock 1.
2.
None 3.
Bonds and Debentures 1.
First Mortcace Bonds:
2.
Multiple Rate 3.
Series Due 2015 12,200 12,200 7.75*
1007
%T Pvt.
F 7-1 4.
First Mort. Due 1995 28.500 28.500 10.841 100%
10b%
Pub.
M 9-24 5.
First Mort. Series A 6.
Due 2015 20,000 97.65%
8.577**
100%
8.375*: Pub.
N 12-V 7.
Notes (f year or enger based on
- Effe :tive through 6-30-90 ongraalmatunty)
- Fixel rate f ar 3 yea rs; may conver t to 3,
vari ible rat e therenfter 2,
Long-Term Notes 19,600 19,600 Variable 100%
FLT Pvt.
N 3.
4.
- Init Lal loan made on 9-26-84 Securftles Reecquired and/or Retired (Describe and report in thousands of 8):
- $8,333 3,
JCP&L - Bonds
- S59,417 Penelec - Bonds 2.
Debentures 2.440 Debentures 1,600 3.
Preferred Stock -
1,250 Preferred Stock -
2,850 4.
DOE Agreement 2,771 DOE Agreement 693 5.
Met-Ed Debentures 1,980 GPUSC Notes 1,460 6.
DOE Agreement 2,771 7.
8.
See Individual Subsidiary 1985 USR Reports for more detail on individual issues.
Securtty Reclassifications and Conversions (Describe and report in thousands of 8):
1.
2.
3.
4 4.
5.
(1) Report each indivdual asue separatePy (incAsdeg secuntes tssued as divadends, as we# as new placements). useg additional sheet if necessary. Specsty matunty date rate, par value, convernbelity, new or refundmg If convertible, bnefly desenbe terms of converton (b) Show pnncipal amounts for Bonds. Debentures and Notes. show stated values for Preferred and Proforence Stock, and oftenng pnce for Common Stock (c) Proceeds should be synonymous with pnce pod by underwnters.
(d) After underwnter comrmessons.
(1) Insert symbols: Pvt-Pnvete. P2-Putsc and Prt-Parent.
(f) insert symbols: C-Competittve and N-Negouted.
(g) Indcate by the fonoweg symbols: PUS-Pubic: DRIP-Dvdend Remvestment Plan; SR-Shen Registrahon; ESP-Employee Stock Plans; Other (Spectry)
PAGE 12 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 PAGE 12 Company GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE Xil-STATEMENT OF CHANGE IN FINANCIAL POSITION /(Thousands of $,),
(Detail Material items Not Shown On Form)
SOURCE OF FUNDS Funds from Operations:
- 1. Net income
.4f.tpr,Prgf.erre.d,(a).
. li2.i. l 96,506 Principal Non-Cash Charges and Credits to income:
- 2. Depreciation and Depletion (b) 12.2.
223,324
- 3. Amortization (Describe in Notes & Remarks below). (I).
12.3.
55,785 y
- 4. Deferred income Taxes (Net)(c).(Itic.1,.$.3.02.7. Assoc.. With. Other. Income.)..
12.4 (77,232)
- 5. Investment Tax Credit Adjustments (d).(E4c.1,,$.10,8.94.P.aysop. Gredit;s).
12.s.
77,914
- 6. Allowance for Funds Used During Construction
.0the,r, Fungis.
12.s.
[
8,9231
- 7. Other Intemal Sources (Net) 12.7 8.
12.8.
9.
12.s.
10.
12.10.
11.
12.11
- 12. Tota! Funds from Operations 12.12 367,374 Funds from Outside Sources (New Money):
- 13. Long-Term Debt (e)(f) 12.13, 80,300
- 14. Preferred and Preference Stock (f).
12.14,
- 15. Common Stock (f).
12.is.
10,225
- 16. Net increase in Short-Term Debt (g) 12.t s.
- 17. Deferred Enerev Costs. Ne f-12.17, 215,6G1
- 18. Other (2) 12.18, 51,348 12.1s.
357,554
- 19. Total Funds from Outisde Sources..
- 20. Total Sources of Funds 1220.
724,928 APPUCATION OF FUNDS
- 21. Gross Additions to Utility Plant (incl. Iand)(h) 1221 407,995
- 22. Allowance for Funds Used During Construction
.0,ther, Fun,ds.....
12.22
[
8.9231
- 23. Dividends on Preferred and Preference Stock (i)...
- 1223,
- 24. Cash Dividends on Common Stock (j) 12.24 Funds for Retirement of Secun'ies and Short. Term Debt:
- 25. Long-Term Debt (e)(f) 12.25, 81,465
- 26. Preferred and Preference Stock (f)..
12.2s.
4.100 27.
12.27,
- 28. Net Decrease in Short-Term Debt (g) 12.2s.
95,000
- 29. Total Funds for Retirement of Securities and Short. Term Debt..
12.29 180,565 30, Leased Nuclear Fuel 12.30, 50,473
- 31. Increase in Other Working Capital Items 12.31, 45,804
- 32. Deferred Costs - Nuclear Accident, Net 12.32.
16,124
- 33. Total Other Applications (Net).
12.33 32,890
- 34. Total Apphcation of Funds 12.34 724.928 C) Should agree wth Schedule 11. Une 31' (f) Not proceeds or paymeros C) inctados $
charged t) cleermg and other (g) includes Comrneraal Paper 3 accounts not included in Schedule 11. Unos 4 & s*
(h) Should agree w'th Schedule X. Une e. Column f (c) Should agree with Schedule 18. Unee 11 & 12*
(i) Should agree with Scheduto it. Une 3(
(d) Should agree with Schedule II. Une 13*
(j) Should agree with Schedule it. Lhe 3(
C) Bonds. Debentures and Oiher Long-Term Debt
- If not, emplem below:
(a) Line 1 Above Represents Net Income After Preferred Dividends NOTES & REMARKS: (1) Includes Property Losses, Oyster Creek 06M, Nuclear Fuel Cost, Spent Nuclear Fuel Cost and excludes Debt Discount Exnense and Premium (2) Includes Sale of Nuclomr Fuel Roserve Capacity and Renavment of Loans by Non-Affiliated Mininn Companies.
1 PAGE 13 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMIER 31,1985 PACE 13 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES I
g SCHEDULE XIll-EMPLOYEE DATA NUMBER OF EMPLOYEES-(Average For Year)
Allocate to Electnc, Gas, and Other Utdity Departments common employees who devote part of their tirne to Electnc and part to Gas, ardor other Utay Departments Estimate sphts on basrs of payron dotars or any other reasonable bases.
y oTHER ELECTRIC OAS UTIUTY DEPTS.
TOTAL
- 1. Operation and Maintenance i s,1,
- 2. Construction,
13,2,
- 3. Other (Desenbe) 13,3, 4.
Total 13.4 13,623 (A) 7 13,630 SALARIES AND WAGES (Thousands of 5)f*)
305,446 (A) 273 305,719
- 5. Operation and Maintenance 13.5.
III
- 6. Construction 13.6,
- 7. Other (Describe)
Note (B) 104,455 104,455 i 3,7, 480,513 384 480,897 8.
Total 13.8.
- 9. Payroll, commissions and bonuses applicable to Merchandising only (included in Une
).
l13.9. I PENSIONS AND BENEFITS (Thousands of 5)N 48,790 22 48,'812
- 10. Operation and Maintenance 13,i o.
9,932 15 9,947
- 11. Construction.
14,790 14,790
- 12. Other (Describe) Note (B)...
is,ii.
13.12, 73,512 37 73,549 13.
Total 13.13.
(1) Do not include Pensons and Benefa.
(b) Enumerate the types of Benefits incbded-such as Pensions. Ufe insurance, Hospitaharion, etc.
Pensions Life insurance Hospitalization Workmen's Compensation Accident Prevention Other Miscellaneous Expenses NOTES & REMARKS:
(A) Includes 3.659 CPUSC. CPUN and barcainine unit emnloyee salaries which are chnrged to operation and maintenance and construction accounts and not directly to the payroll account.
Salaries and wages of the operating subsidiaries, excluding these 3,659 employee salaries, were $209,599 - operation and maintenance - electric and $57,926 construction electric. Average employees were not allocated because the GPU System employees are not always assigned solely to operation, maintenance and construction.
(B) Includes Fuel Stock Expense Undistributed, Stores Expense Undistributed, 'Iransportation Expense Clearing Accounts, Miscellaneous Deferred Debits and Accounts Receivable.
PAGE E-14 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 PA'.!E E-14 Company 6t23 of Total System E)
SCHEDULE XIV-CLASSIFICATION OF ELECTRIC ENERGY SALES, REVENUES AND CUSTOMERS Comparmes operating in more than one state should e.cmplete this schedule for each state in which they operate.
MEGAWATTHOURS OPER.HEVENUES CUSTOMERS (e)
(thousande of $)(a)
AT YEAR END.
AVERAGE-12 WOS.
Sales to Ultimate Customers
- 1. Residential (b)*
14,1, 11,141,813 s
1,109.403 1,509,925 1,498,938
- 2. Commercial or Small Lgt. & Pwr.(c)*
14,2, 9,080,101 827,514 175,084 173,249
- 3. Industrial or Large Lgt. & Pwr.(c) 14,3, 11,707,414 807,820 9,710 9,712
- 4. Public Street & Highway Lighting 14,4, 161,174 27,751 2. 812___
2.805
- 5. Other Sales to Public Authonties 14,5, 103,620 9,281 440 444
- 6. Sales to Railroads and Railways 14,6,
- 7. InterdepartmentalSales 14,7,
- 8. Other Sales (Specify) 14,8, 32,194,122 2,781,769 1.698.011 1,685,148
- 9. Total Sales to uttimate Customers.
14,9, id) g Sales for Resale 81,909 3,804 8
8
- 10. Investor Owned Electric Utilities 14,10,
- 11. Cooperatively Owned Electnc Systems 14,11, 705,536 35,095 3
3
- 12. Municipally Owned Electnc Systems 14,12, 364,412 19.498 15 15
- 13. Federal & State Electnc Agencies 14,13,
- 14. Totd for Resa,e 14,14, 1,151,857 58,397 26 26
- 15. GRANO TOTAL.
14,15, 33,345,979 2,840,166 1.698.037 1.685.174
- 16. Less provision for rate refunds 14,16, 84
- 17. CTHER ELECTRIC REVENUES 14,17, 26,297
- 18. TOTAL ELECTRIC OPERATING 2,866, 379 REVENUES 14.18, c emas wei E.ctnc soace wommg text)
Resn.nsal 14,19, 2,654,832 244,296 189,087 185,590 s
commwcw Not Available Apt Bidos wasw uewed 14,20, 3
,g As omer 14.21,
- a st.e pe,contage at
,u,a o, ape,a.eg Reven e for each cos., sa-a-subpect to tuel rate ad ustment: Readoreal
%: Commercial
%: Industnal
%: oever(Specry):
l
-e by.- those c.s.es, sa.s o, _ed Total domara recovered through a sement Fuel and Tan
{*C Year Fuel Clauses s Tax Clauses s Othertoehne)
Untnaed Revenus 5 for uwh on knots)
(b) Resdereal-Annual kWh Use, Annual Elecmc B4 and Revenus Per kWh swerage Annuai nwh us. s N 14,22'
- * * ", * * "14 305""
7,433
^'"#"~'
/wwage Annus Electne B4.
14'23' 1,316.32 740.13 s
s A, wage Revenue per kwh.
14,24, 9.202 9.957
,e
- (c) Indicato classificson by sMea cut me mappropriate parts at captions of Lmes 2 and 3. Give the entena used by Company m clansdyng the cLetomers oto the respectnre groups, also bre pomt tmtween large and smat Light and Pbwer.
- (Q Exchdas l 14.25.l (m year end)
(average-12 mos) ummate customas counted more man once because et species services suon as water heeng..e
- (a) Report Total kWh sales (af uses) and Total Revenue tor those Custorners who use electncty as ther prmcipal source tor space heatmg (inc4sdod at Lines f arkf 2 respec9 vet) Report customers even though other data e not avelabes
- (f) Report here what a consdered to be the average annual heatmg and cookng degree < jay tor the tomtory perved with electncdy by your Company, on a Calender year base i o t=se specar Heahng Degree-Day-1. Latest Year, degree-days. 2. Average Year. based on years exponence degree <.ys.
Cootng Degree-Day-1. Latest Year-degree-days. 2. Average Year, based on years exponence-doyee<seys.
(g) includes l 14,26,l (at year end)
(awwege-12 mos ) dwenng unrts in apartment t uildings master meered Notes & Remarks:
See Individual Subsidiary 1985 USR Reports
PAGE E-15 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMTER 31,1985 PAGE E-15 Company Stat 3 of Toti Sy; tem S SCHEDULE XV-CLASSIFICATION OF INDUSTRIAL (OR LARGE LIGHT AND POWER)
ENERGY SALES AND REVENUES Comparnes operaeng m more than one state should comp 6ete this schedule for each state in which they operate.
Il practcal, please gue a breakdown of your industnal(or Large Light & Power) Sales and Revery;ee by type of Industry, prefereby by the Mapor Mirung and Manufactunng Groups of the Standard Industnal Cassecanon(s). If not coded stnctfy by Standard industnal Classecanon, p6 ease give comparable mformation by any smiar groupng you may have adopted. If you cannot fumeh the mformation on a comprehenswe base, data for your largest industnes would be useful(ten f possbie).
Where a customer or estabhahment has operations portainog to more than one industry, the pnncipal type would determme the class & cation.
REVENUES TYPE OF INDUSTRY S.I.C. NO.fa)
MEGAWATTHOUR SALES (thousands of $)
M!NING 17,245 s
1,718 Metal Mining.
10 15,1 Coal Mining,
11 & 12 15.2, 640,153 35,479 Oil & Gas Extraction,
13 15,3, 24,532 1,708 Mining & Quarrying of Nonmetallic Min.(except fuels) 14 15,4, 172,159 14,485 15,5, Total Mining 15,e, 854,089
'i3,390 MANUFACTURING l
Food and Kindred Products 20 15,7, 742,767 54,966 21 15,8 11,638 934 Tobacco Manufacturers Tixtile Mill Products 22 15,9, 125,014 9,368 Apparel & Other Finished Products made from fabrics
& similar matenals 23 15,10, 79,155 6,691 Lumber & Wood Products except fumiture 24 15.11, 204,890 13,241 Fumiture and Fixtures 25 15,12, 59,845 5,065 Paper & Allied Products 26 15,13, 1,026,751 61,936 Printing, Publishing & Allied Industries 27 15,14, 182,159 14,887 Chemicals & Allied Products 28 15,15, 842,031 66,640 Petroleum Refining and Related Industries 29 15,16, 288,841 16,543 Rubber and Miscellaneous Plastic Products 30 15,17, 624,290 45,364 Ltther & Leather Products 31 15,18, 40,194 3,175 Stone, Clay, Glass and Concrete Products 32 15,19, 907,911 55,425 Primary MetalIndustries 33 15,20, 2,050,551 118,585 Fabricated Metal Products except machinery &
tr;nsportation equipment 34 15.21, 460,686 34,432 35 15,22, 591.516 43,844 Machinery, except Electrical Electrical and Electronic Machinery, Equipment & Supplies 36 15.23, 1,053,784 79,490 Transportation Equipment 37 15.24, 246.011 16,870 Measuring, Analyzing & Controlling Instruments; Photo-graphic, Medical & Optical Goods; Watches & Clocks 38 15.25, 192,901 16,106 Miscellaneous Manufacturing Industries 39 15.26, 199,924 18,503 Military Establishments 15,27, 285,988 24,048 Total Manufacturing 15.28, 10,216,897 706,113 Total Mining and Manufacturing 15.29, 11,070,986 759,503
" Industrial Customers" with demands below kW 15,30 Other
- industrial Customers' not classified 15.31, Non-manufacturing ' Industrial Customers' 15,32, 636,428 48.317 Adjust. for Differences in SIC Coding (-)( + )
15.33, Total Industrial or Large Ught & Power (b) -
15.34, 11,707,414 807,820 (1) The Standard industnal Cassecaten is putfished m manual form by the U S. Government Prineng Office and e availab6e through the Supenntendent of Documents.
It e used pnmanly as an aid m secunng unst amity and comparatdty e the presentation of statstical data collected by vanous agences of the U S. Govemment, State Agences. Trade Assocations, and Private R, search Agencies.
(b) Amounts should agree with line 3 (columns 1 and 2) of Schedule XIV-Page E 14.
1
PAGE E-16 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 PATE E-16 Company State of Total System [!9 SCHEDULE XVI-SOURCE AND DISPOSITION OF ENERGY state cocode Comparmes operatmg n more than one state should complete this schedule for each state m which they operate.
Source of Energy COST Net Generation:
MEGAWATTHOURS (thousands of s) 16,1, 18,405,302 s 486.326 l
1.
Stem. Conventional 2.
Steam, Geothermal 16,2 3.
Steam, Nuclear 16.3.
4,395,842 238,045 16,4, 241,362 2,304 4.
Hydro 5.
Pumped Storage..
16,5 341,842 1,925 6.
Gas Turbine 16.6 7.
Other (Specify). (I.ncl. C.T,.,,C,.g.,and,I,.Q. ).
16.7 1,708,415 72,070 16.8.
502,267 8.
Less: Energy input for Pumped Storage m,,x m, m,, m 16.9, 24,590,496 800,670 9.
Total Net Generation..
Purchased Power, incl. Net Interchange (Account 555):(b) 16,10, 12,181,674 534,893 10.
Investor Owned Electric Utilities 11.
Cooperatvely Owned Elect. Systems 16,11, 12.
P9bHc Agencies (incl. Municipals) 16,12 101,398 3,010 13.
Other Non-Ufility Sources 16.13 372,208 13,073 14.
Intemational imports ( + ).
16.14, 15.
International Exports ( - ).
16,15, 16 Less: Energy input for Pumped Storage (if applicable) 16,16, m rxxxxxxx m m r 12,655,280 550,976 17.
Total Net Purchased Power in,(out).
16,17
- 18. Rec. from own Co. outside state.
16,18
- 19. Totaf Net Energy for Distnbution.
16,19, 37.245,776 rrmxmrrmrvn.
- 20. Energy Wheeled (for accounts of others)(c).
16.20 981,656 m m m r m ur m
- 21. Generation Control and System Dispatching 16.21 saar u = = = =
9,090
- 22. Other Expenses (d) 16,22 x m xxxxxxxx m m x 215,889
- 23. Total Production Expense (Electric) 16.23, m xx m x m x m m s 1.576.625 Disposition of Energy
- 24. Total Energy Sales (e) 16,24, 33,345,979
- 25. Used in Electric & Other Depts and Fumished Without Charge 16,25, 622,041 t
- 26. Total Energy Accounted for (24 and 25) 16.26, 33,968,020
- 27. Energy Lost and Unaccounted for(e).
16,27, 3,277,756
- 28. To own Company in other status.
16.28,
- 29. Total Disposition (Lines 26 + 27 + 28 - Line 19)(a) 16,29, 37,245,776
- 30. Energy Wheeled (for accounts of others)(c) 16.30, 981.656 (a) Exclustve of energy for pumping. If combination Hydro and Pumped Storage Station, Allocate Staten (xpenses to each source of generaton (b) Purchased Power (from alt sources) 16,31, 7,945,994 330,479 Interchange Recorved(Gross) 16,32, 5.202.306 237.829 interchange Dekvered(Gross) 16,33 (493.020)
(17.332)
Tatar set Purcna ed rewer.in. (out)-Should agree with une 17.
16.34, 12,655,280 550,976 N Company purchases all or most of its MWh supply from other utshtes or agencies. grve the name of such supplers and the MWh purchased from each (c) If Company transmits power of and for another system and such power is not included as both a receept and dehvery in Purchased Pbwer account. stow on unos 20 and 30, the MWh wheeled.
(d) incbdes charge or (credit) for deferred fuel costs $ 215,717
() Includes effect of unbilled MWh.
NOTES & REMARKS:
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PAGE E-18 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 PAIE E-18 Company State of Total System El SCHEDULE XVill-GENERATING STATION STATISTICS (a) stais ccrcoos Comparmes which own plants or portons thereof in more than one state should complete Itus schedule for each state in whch they are located.
HEAT RATE j
RATING IN NET KILOWATTS (BTU per i
FOR UNITS IN SERVICE DEC. 31 kWh not NET GENERATION NAME AND LOCATION OF STATION (b)
TYPE (c)
Nomeplete(c')
CapetWilty(e) generation)
Megewetthoure llomer City, Homer City, PA (Penelec Interest)
SC 1,006,000 942,000 10,068 5,443,884 Shawville, Shawville, PA SC 640,000 609.000 10,348 3,931,272 Seward, Seward, PA SC 218,229 199,000 11,452 1,177,933 Front Street, Erie, PA SC 118,800 110,000 14,228 418,839 Warren, Warren. PA SC 84.600 88,000 13,404 468.691 Williamsburg, Williamsburg, PA SC 25,000 33,000 13,422 133,131 Portland, Portland. PA SC 426.700 399.000 10.316 1.138.149 Conemaugh, Huff, PA (Met-Ed Interest)
SC 308.000 280.000 9.718 1.721.296 Titus, Reading, PA SC 225,000 240,000 10,460 1,012,902 Sayr eville, Say r evil le, NJ SC 346.800 319.000 12.181 863.934 Keystone, Indiana, PA (JCP&L Interest)
SC 312.000 283.000 9.811 1.743.313 Gilbert, Holland Twp., NJ SC 126,100 119,000 12,490 234,481 Werner, South Amboy, NJ SC 60,000 60.000 11,837 117.477 Oyster Creek. Lacey Twp., NJ SN 550,000 628,000 10,600 3,744,664 Three Mile Island Units 1 and 2 Dauphin County. PA.
SN 1,832,200 1,706,000 651,178 3 Hydro Stations H
67,600 66,000 241,362 20 Combustion Turbine and Internal Combustion CT 1,141,200 1,487,000 252,391 Gilbert, Holland Twp., NJ CC 349,800 386,000 10,108 908,776 Yards Creek, Blairstown, NJ (JCP&L Interest)
PS 193,400 165,000 247,841 Seneca, Warren, PA (Penelec Interest)
PS 84,400 76,000 94.001 Other 100.000 _
547.248 25,092,763 sut>Totai 18.1 xxxxxxurxxxxxxx xxxxxxxxxxxxxxx xxxxxxx>>>>x 502,267 Less Energy input for Pumped Storage 18.2 runrrrrrrivirrr vuxurrrvirxxxxx urrixxxxxxxx Totar-Asi statens operated 18.3.
8.115.829 8.295.0009 10.647 2 4. 590. 4 9 6,g>
(M kt addrhon to 6stng al statens operated. show separately tietow stanons owned tiut leased t others.
m Grom t,y type end.now etnis er esca type. inmene sianone isa.ed vom ori-We tu and rocme we 9) company portion ansy e manon soine owned we oew.
r (c) kinert symbol SC-Steam, Conventonal; SN-Steam. Nuclear; H-Hyeo, PS-Pumped Storage; l->temal Comtiuston; GT-Gas Turtune; GEo-Geolherms. CC-Comtuned Cycle. S
-Sciar; w-wind. cnnn tsgecay>
<di Gn. manuracture. marunum n mepiam reine v ine turen.sen-mor em
(:) Compenset having gummer peaka, use r
haVFig winter peaka. ute Werter rat 7/ 30/ 78 TMI-2 1
Fct company's largest ur"l O've anpatney date of instasation
..nd name c,,,ta.on
<t>
amount s n,m capat>=y triciueno ne n,m punsiase. *om erin companie.> m osc. men si 10.120.000 (g) Should equal total nnt Generaten on 1;ne 9. Schedule XVI-Page E 16.
UNIFORM CTATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 Company State Of Total System G
$o SCHEDULE XIX-FUEL CONSUMED FOR ELECTRIC GENERATION Es m
m como.n.e.acn o = p re. or pormor. e oe = mor. een on. stem encual comune me.e. cue er cn mm. n nca in,
ec.i.o i*
TOTAL UMTS CONSUMED TOTAL COST AVFRAGE COST PER AVERAGE BTU NET GENERATION BTU PER KihD OF FUELtJNIT OF MEASURE (thousands)
(thousande of $)
Unit Million Btu CONTENT (a)
MWh (b)
NET kWh Under Boners:
- 1. Coal (Tons)(c) 19,1, 7,109
$ 283,121
$39.83 159.92c 12,452 17,189,410 10,299
- 2. Coke (Fbunds)(c) 19,2, 3 Ligrute(Tons)(c) 19.3, 4.
19,4, S. Od(Barrels) 19.5,.
671 20,185 $30.03 494.49c 144,845 248,222 16,445 6.
19.6
- 7. Ges(MCF) 19,7, 11.456 44,447
$ 3.88 375.59c 1,033(f) 967,670 12,229 8.
19,8, 347,753 18 0. 2 3 c,,,,,,,,,,,,,
18,405,302 10,484
- 9. Subtotal-Steam Conventonal 19,9 xxxxxouun u,, u u Intemel Combustion Engines and Gas
- 10. Od-Gas Turtune(Barrels) 19,10,
- 11. Od-Intemal Combuston(Barrels) 19,11, 390 13,672 $35.06 606.54 c _UL613 382.215 5,897
- 12. Gas-Gas Turt>ne(MCF) 19,12,
- 13. Gas-Intemal Combuston(MCF) 19,13, 10,565 47,177
$ 4.47 431.49c 1.035(f) 778.952 14,036 60,849 461.41c xxuin.ninxn 1,161,167 11,357
- 14. Subtotan(unes 10,11,12. 13) 19,14,
= = n in vi n,,,
Nuclear Generation 807 22,598
$28.00 45.83c 61,106(g) 4,425,390(e) 11,143
- 15. Nuclear (Grams) 19,15,
$ 4 31. 200,o),u,,,o 168. 80 C 23.991.859 10.647
- 16. TOTAL ALL FUELS 19.16.
unuxvnnxunu nonounu sa rap, m to a cow ana ci... cune e.m e.ood.no
. amen. e o.i..no orn. a nuc=., eum o comm
- m. G.n.r.nono, w. asu a = = an.. nm o.
(e) T>er FTCF (thousands)TMf*1 an1,Syster Ue,e"k",
(f)
SCHEDULE XX-EFFICIENCY OF STEAM-ELECTRIC GENERATING UNITS (g) Average MBTU content per kilogram Ls the rnost effcent unas (up to ten) wtuch were oper.ted at an annual capacity factor of sos or bener.
AVERAGE ANNUAL FUEL COST PER NET NAME OF STATION UMT NO.
NET CAPA8tuTY(KW)
HEAT RATE kWh GENERATED See Subsidiary 1985 USR Reports ha m
m
..ae
PAGE E-20 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 PAGE E-20 Compiny State of Total System E}
SCHEDULE XXI-CHANGES IN GENERATING UNITS staie cacao.
Compathes operahng n more than one state shoud complete this schedule for each state n which thei operate.
RATING IN NET KILOWATTS (a)
Date in NAME AND LOCATION OF STATION (a)
TYPE (b)
Nameplate (c)
Capability Status (d)
Service (e) '
Shawville Station Shawv111e, PA SC 640,000 609,000 Rr Seward Station Seward, PA SC 218,229 199,000 Rr Warren Station Warren, PA SC 84,600 88,000 Rr Williamsburn Station Williamsburg, PA SC 25.000 33,000 Rr Sayreville Station Sayreville, NJ SC 346,800 319,000 Rr Oyster Creek Station Lacey Two., N.J.
SN 550.000 628,000 Rr l
D) Inocate one W) company ponen onfy of uruts or stahans praty owned wim omers (b) Insert symbol SC-Steam Conventonst; SN-Steam. Nucsear. H-Hydro:PS-Pumped Storage; l-Intemal Correusbon GT-Gas TurtNne; GEO-Geomermal. CC-Corroned Cycas; S-Solar:W-Wnd; and any omer source, tootnote and descree beso.
(c) Gw manufacturers mascun namecuate ranng of me tutune generator set.
(d) Asert syrrect Rr-Rorated. At-Retred. A-Added. U-lkuser Ccnstruction and Au.- Aumonzed but not unoer Conneucten.
g) For unas added. show enact date of commerpal operation For urwts unuer construcnan or sJhonzed, esemate me mcem and year.
NOTES a REMARKS:
PAGE E-21 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1985 PAGE E-21 Company State of Total System El SCHEDULE XXil-MILES OF ELECTRIC LINE OPERATED AND OTHER PHYSICAL DATA Comperwes operatog in more than one state shouki complete tNs so odule for each 3,,,
state in which they operate.
m
,1 MILES OF ELECTRIC LINE OPERATED OVERHEAD LINES UNDERGROUND LINES DESIGN UNE Conduit VOLTAGE-kV Pole Miles Circuit Miles Bank Miles Cable Miles Tronomiselon Under 22 kV 22,1, 22 kV and over:
22 to 30 kV 22,2, 31 to 40 kV 22,3, 1,419.12 1.688.08 16.48 59.78 41 to 50 kV 22,4, 368.20 368.20
.03
.03 51 to 70 kV 22,5, 410.51 462.22
.12
.36 71 to 131 kV 22,6, 1,785.25 1,909.78
.21
.21 132 to 143 kV 22,7 14.23 14.23 144 to 188 kV 22,8, 189 to 253 kV 22,9, 1,247.65 1,499.86 254 to 400 kV 22,10, 147.90 147.90 401 to 600 kV 22,11, 439.01 439.01 601 to 800 kV 22.12 Total Transmisson 22,13, 5,831.87 6,529.28 16 81 60.38 Dietribution Under 22 kV 22,14, 40,203.40 5,548.01 11,183.43 xxxxxxxxxxxxxxxx 22 kV and over:
22 to 30 kv 22,15, 1,611.00 194.93 669.91 31 to 40 kV 22,16, 3,320.59 587.13 256.87 695.48 41 to 50 kV 22,17, 51 to 70 kV 22,18, Over 70 kV 22,19, Total Distnbution 22,20, 45,134.99 xxxxxxxxxxxxxxxx 5.999.81 12,548.82 GRAND TOTAL (T&D) 22,21, 50.966.86 6,015.65 12,609.20 nnnxxxxxxxxn OTHER PHYSICAL DATA
- 1. Distnbution Subetations (includes untity Owned Industrial substations)
Y269_
1 05,4$b
- 2. Une Transformers (IncArdes Network Transfberners) 449.343 17,756,440
'Y ~. GENERAL PUBLIC UTILITIES i
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GPU SYSTEN1 PROFill 1 he(icneral Pubh I nhues M sta tan;c of pri tc+nal ser s tes to the oper e
T huit"1 atin e 6 iini;'an
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used hs resider.:.:! s otonu rs. 27 perc< n fTMRT'*f5P?l3%FfeX M ias son Comp..ns ( \\1d I di anJ Pennsy h an:a inJas n and 5 ;vrsem bs other custona n.
GPU's St Rs K'E Tl RRirORILS I le,. :n u (.ompans # Penclet 6 \\no:hcr seh I he peak load penoJs of the sperann; sidiari. fili he!s h e II5f piraIh'n
( e m ipall!C s i!c in b dart t, w ilh l9\\N i(il't N ' r. pros ides u,rgf a:cJ M ster wausrpeaks m Pem sy h.una ar,J a 1%5 p!Jes and p* d ts L's, ali >l1p % Idi J Ffii,d sill 0!tJr l$Jak m \\cw }JI sc)
OPliRNFING CON 1P,\\NIEs' STATIsncs - 1985 6
Sales Mix:
Residential.
Electric Peak i
Revenues Total Assets Commercial, Customers Sales Load Number of
/
($(XX))
($(XX))
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(MW)*
Employees 4
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! 1985 FINANCIAL
SUMMARY
i
' - ~ ~ ~ ~
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'E2130ll m Wzr m n M.nM ---
1985*
1984*
Net income before extraordinary item (S000)
%,506
$ 128,505 Net income after extraordinary item ($000)
%,506 5 148,258 Per share (before extraordinary item) 1.54 2.05 Per share (after extraordinary item) 1.54 S
2.36 Common shares outstanding, year-end (000) 62,864 62,864 Numberofstockholders 114,761 97,668 s
Book value per share 27.74 S
26.05 Megawatt-hour sales (000) 33,346 33,491 Operating tevenues (S000)
$2,869,509
$2.735,286 Construction expenditures (S000)
$ 407,995 5 311,381
)
Cost of fuel and purchased power (S000)
$ 983,317
$1,243,268 l
Total assets (S000)
$6,176,281
$6,2!5,792 Generating capacity (megawatts)*
- 8,195 8,251 Peak load (megawatts) 6,691 6,401 i
Customers served at year-end 1,698,820 1,665,305 Numberof employees at year-end 13,713 13,216
- See Notes 1 and 3 to Consolidated Financial Statements and Report of Auditors.
- Includes 1,706 megawatts for both TMI Units 1 and 2.
I l INSIDE GPU's 1985 ANNUAL REPORT l
L r.me=mamm=rmum=c:rc2r - --
LETTru To S mcKnoustas 2 M AN AGl.MLNT'S Dl%COSSloN & ANALYSIS Not ts To fin ANelAL STATEMLNTS 27 CouronATr goals 4 ot FiNANc ALCoNomoN ANDRLsUlls Sys rLu STAllsTICS 41 INvi. slows 5 or Ori nAnoNs 17 En irrs or CuANc No PniCLs 42 Cesrourns 7 QUARILHLY FINANCIAL DA1A 20 Distrions ANo Os riCrus 44 CouurNiry11 INoLx to CoNsounatto FIN AV.'I AL SnARElloLDi.R Nuri.s Euri.ours 13 S rATLuixrs & Nons 21 INsIDE BACK COVER Nt ci Lau OPER AlioNs 14 REM)Rr oF AllDiloRs 22 S I ATLMLNT OF M AN AGF31FNr 16 CONSouDAru) FIN ANCIAL STAli.MLN"rs 23 pmwwxm~my$wiSML%ddi.anihd.OUrMs.4L.MuskhMSNCAAWiMMws;kOAhlGeh-6&dk$ $m$$
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. _ _ - _ - _.. ~ _.
.._._7 To Tiin STOCKHOLDERS rm a m inrra m 1W ~'
The year 1985 was a landmark year for TN11-l's return has resulted in an annual again upgr. ed the Sy stem's securities.
your Company - one in u hich we reached reduction m customer costs across the Now, for i e first :ime since the 1979 acci-seseral significant goals GPU Sy stem of about 580 million.
dentatTF 1-2 allofoursecuritiesare The year marked the culminatmo of sn The expeditious, safe defueling of the rated inve:. ment grade.
years of et tort to return the undamaged TN112 reactor and completion of the While GPU has made steady progress in Three N1ile Island Umt i to sers ice - the clean up program remains a major goal of all areas since the uncertain day s after the accomplishment of one of our most impor-GPU. Fuel removal activities began last 1979 accident at Three Stile Island Unit 2, tantgoals. Afterthoroughly resiewing and October. The cleanup program remains on a number of factors could exert pressure on weighing all the evidence descloped in schedule for completion in 1988 and is earnings over the next few years. These numerous hearinp. the Nuclear Regula-w ithin budget. The program has been include potential reductions of the return tory Commimon on Ntay 29.19S5 review ed and remains unchanged from the allowed by regulators, spending to approsed the restart of Unit 1.
$1 billion estimate that has been in place improve the perfonnance and extend the Court appeals tollowed until the United mer the past three ycars.
lives of the System's generating stations, a States Supreme Court, on October 2.
The final piece of the TN11 Unit 2 possible w ritedow n of investments in 19S5, lified the stay of the operation of cleanup cost-sharing program 5 as put in abandoned plant (a proposed addition to j
TN11-1. The plant began operating at less place when utility industry participation Fmancial Accounting Standard 71), the than 1 percent power on October L lt com-w as committed in late 1984. In early 1985, Internal Revenue Service treatment of pleted its three month start-up program on we received the first industry funds, and abandoned plants, and the impact of retro-January 2.1986 and reached f ull power on we expect to receise the temainder at a rate spectis e nuclear plant outage inquiries.
January 6.
of $25 million each y ear for six years for a GPU's planning for future electricity
'I he return of TNil-1 to sers ice in Octo-total of 5150 million. When taken together supply is ba, sed on projected compound ber and to electrie rates in November is w ith the other sources, the cleanup fund-Lilowatt-hour sales grow th mer the next important to both shareholders and cus-ing is essentially assured, based on the 20 years of 1.1 percent a y ear. To meet that romers. The Company's carning power
$1 billion cost estimate. Iloweser, the grow th, the GPU System w ill improve the w ill increase by ahnost $100 per share on U.S. Department of Energy's long term operation and extend the life of existing an annual basis.
commitment to the cleanup funding is sub-generation, extend outside energy and Ilecause the combined emt of capacity jeet to continuing federal budget review.
capacity purchases, continue aggressive and energy generated by IN11-1 is Icw than Citing the restart of TN11-1, Duf f &
conservation and load management pro-that purchased during its shutdow n.
Phelps, Standard & Poor's and N1oody's grams, encourage cogeneration and small l
we J 4
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i pow er producers and, only as a last resort.
hase benetited from the earnings improve. Island crucible. w e are a stronger team.
construct new generating facihties. We ment and the reinsestment of those earn.
We base learned some s atuable lessons -
will make es ery crfort to asoid major gen-ings. as indicated by the increase in the lessons that w ill stand us in good stead to cration construction unless we have the market salue of our stock oser the last face the future confidently.
agreement and support of our regulators three years. That s alue has increased from We recogm/e the sacrihees made by our for the need and cost of the facilities and a low of $3 % in 19SO to a high of about $19 shareholders. customers and employees the energy produced.
in early 1986 on this long. arduous road to recosery. We Afler carefut consideration of diudend We assure the suvkholders that their appreciate and will exert every effort to policy over the past year, we concluded ins estment w ill be managed prudently to desene the continuing understanding.
thatdeclarationof any disidendistock or mau mi/c its s alue. We w ill continue to be su: port and dedication of so many.
cash) would not be in the best interest of dedicated to protecting the health and the stockholders at this time. Significant safety of the public and our employees. We gj factors attecting that judgment meluded.
w ill contmue to uphold our obligation to il perceptions of the sanous constituen-proside reliable sers ice to our customers.
W. G. Kctiss cres supportmg the TMi-2 cleanup pro-At the same ume, w e w ill increase our on-c,,3,gy33 gram and its lunding: 2) the nced to going eltorts to meet the challenges of the ANo CmLF Extetmvc Gi r ictn demonstrate the ettectneness of the future.
TMI-2 fuel removal process; and 3) the The electric utility industry is undergo-importance of contmuing the successf ul ing major changes m the w ay s th:1 it w ill y
operation of TMI 1. As GPU continues to generate or otherw ise obtain the electricity
/
C._-
mos e forw ard w iih its hnancial t ecos cry.
it deliscrs to its customers. Deregulation.
H. DIECKAMr*
we intend to be sery caretul that any action competition.daersification increased Patsinixr taken does not result in an adverse impact regional planning and m.eenin i/ed rate AND CWLF Ol's R ATING Omca n on our shareholders. total return.
makmg are concepts thai w ill become Although it continues to be true that increasingly pronnnent in utility opera-your Company is not yet in a Imsture tions. Their proper deselopment and w here it can pay a cash da idend. the earn-implementation w ill require tarsighted ings retaintd are being reins ested and are management and responsible regulation.
earning a reasonable return. Stockholders lias ing come through the Three Mile M Ancia 3.1986
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i Goals andobjectives provide
~
direction anda uny to measure p 'r-formance. Theyprovide theframe-svorkfrom svhich an organi:ation operates.
At GPU. we have set a number of s
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These goals are toprovide aftur andappropriate return to our investors; to provide reliable, eco-mn nomic service to our custinnerst to carry out our obligations as neigh-a hors andgoodciti: ens;toprovide a safe andchallenging environment Ji>rouremi oyees;andtooperate d
GPU's stRviCE TI RRITDRilS INCE.UDE our nuclearjacilities safely and l' ARMt. ANDS AND IURISTS, SCHURHs AND CITilS.
diectively.
In surn. cach GPU System com-pany has a set ofgoals andchjec-tirespredicated on these basic corporate goals. The goals and objectivesprograms are closely monitored.
7'hese goals provide thefounda-tion upon which see can buildto Incel thejitture needs ofour inves-fors, custanters and employees.
rm L4si
Our goalis to provide a jair anl appro-prmte return to our inrotors.
INVESTORS
" Erm':2:a5 l
l EARNINGS milhon or 3 percent os er l9S4 due to rate j
l GPU's 1985 net income was $96.5 mil.
increases granted the UpU Companies.
t lion, compared w ith 512S.5 million.
CAMAL EXPENDITURIS before an estraordinary item in 19x4 Continued close c ontrols base kept Earnmps per share w cre $1.54 compared espenditures in line w ith internally gener-with 52 05 per share before an extraordi-ated funds.
nary item. in 1984. This reduction in earn-In 1985, the GpU Sy stem had $494 mil-ings w as due prinurily to higheroperating lion of capitai requirement s, w ith the and mamtenance espenses particularly to orin of these funds.540x million.
moderm/e Oy ster Creek and to operate oing to transmission and distnbution that plant safely. We are working hard to imprmements and mothhcations to exist-control operatmp and maintenance ing generating stations.
espenses and ihn et f or t. together w ith the in 1956, about 5565 million has been added earning power trom TMI-l's return, budgeted for capital requirements, an shouhl bear f ruit for the f uture.
increase of about $71 milhon, or 14 per-Ibpne the inabihty to restore a dn i~
cent, oser 1985 Of this amount. about dend. the market s alue of our stock ha' s,503 mdlion is budgeted for esisting trant grow n appreciably and returned to pre ~
mmon. dianbution and generation plant accident les els.
imprm ements and mothiieations, and EurrRictrY SARS about 562 million is budgeted for retirine Sa:es of e!cctricity wcre 33.3 billion debt or preferred.tock 'Ihe prinury kdowatt. hours m l'h5. compared w ith source of f unds to meet expenditures in 33 5 bilhon m 1954. Part of this minor detline in sa!cs u as due to milder weather than nor mal and t he low of sales to a ilult nr liARNINGS pl R SHARE customer that initiated a self-generation Bu<mt ExTuAoun N Auv in sts project.
52 ao I or the long.tcrm. GPU forecasts elce-2 inc energy grow th aseraging about 1.1 per-f 1
cent per year The f aqest growing "E E I 1
)
customer dass is eyw red to be the com-s l gI mercul clan as the transition irom a man-l I El om km--wwwf.
NW 81 82 83 84 85 uracturing to a more sersice-onented Maabe eCorHimy cilnlintles.
i Total resenues f or 1985 increased si t4.2 nulhon or 5 percent over 1984.
Resenues for lux 5 not including those related to energy s osts. inc reased $48.8 i
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i NET INCOME CONSTRUCTION EXPENDITt'REs TYPICAL Bill. COMPARISONS BEIORE EXTRAORDINARY ITEMS RESIDENTIAL 500 KWIFMoNTH MIL 1JONS MILLIONS
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l'Wh w ill continue to be internally gener-mon equity and 45 percent debt inim a JCP&l. will use the proceeds of the ated f unds capitah/ation rano ot 34 percent common bonds to finance m part the construction of equas and 54 percent debt poor to the a temporary low -lesel radioactn e w aste COVERAGE AND CAPITAU/.ATION RATIOS
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A s the $$ stemi finances h.n e st.i-i at hiese a capitah/ation ratio of about 45 Nuclear Generating Station.
l bih/ed. interest coserage has increased il pert ent (omnion equit b 43 percent debt Met-Iki w ill hnance the construction et 1
%. li the return of I MI-I to rates, we and 12 percent preferred stos L.
enuronmental control lacihties at its coal-should see contmued impros ement such 3
fired Portland Station in Portland, that the new issue nununmn for all three GI,U Stet RiTits RATINGS UPGRADED E'""') I'
- d operating companienhould be reached Rettetting the nnpact of TMI-I restart.
Peneleis sale w dl help tinance air and and m.nntamed.
DutIA Phdps. Moody's and Standard A wster pollution control and sewage and l'he (iPlJ operanny (ompames also Poor 's has e upgraded the bonds, deben-wiid waste disposal f acihties tur seseral ot l
h.oc bonJable property and market access tures and pref erred stak ot'the GPli oper-awoaMred generaung stanons I
adequate enoueh to allow us to issue bonds ating tompames to insestment grade This l
and pteterred vock to the cucm we need to means that all GPli Sy stem secunties are doso.
now rated msestment grade.
j in addaion, os er the last ine ye""'
GPU SensrDIAnits issue BONDS (iPI ' has conhnuously imptos ed the S)'~
During PW5. ICPh. Met.1.d and Pen tem's equity raho through debt retirement e ec sohl tini morteage pollunon control and retent' tin or earnings. lhe capilall/a' I
h e in the amounts of $12.2 nullion.
tion ratio has onprosed io 43 percent t oni 528.5 mdhon and 520 milhon.
respectnely.
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Our goalis to provide rcliaNe, cco-nomic wrrit c to our cu stomm.
m CUSTOMERS N'[
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/b REGULATORY ACTIONS I.DNG-TERM CAPACITY NEEDS wy,W Atter meeting specific operating crite-GPU is study mg its long-term capacity
(
na, TMI-l w as returned to customer rates needs and options for meetmy future
~
a in November 19S5 bs both the Penno ha.
demand.
6J P-nia Pubhc Utihty Conumuion < PUC) and We are proud of our early conunitment e
the New Jersey Board of Pubbe Utihties to the conecpts and prattices of consersa-C9
((^
( BPU I. ~1 his resulted in an oserall redut -
tion aad load management - a commit-
, u.?
" Q.s ec tion in rates of about 550 mdhon annua!h ment that dates back to the earls 1970s.
at ross the GPU Sy stem. The New Jersey Our ef torts in these areas base allow ed us
- 'ei' Department ot the Pubhe.\\dsocatc has to defer more th.m m megaw atts of new OcR COMeurtR ZED CUSTOMER appealed the New Jersey attion toIhe generatmg capacity for significant sasings INfoRMATION SYSTEM IMPROVES SPEED SUperiorCourt of New Jerw) at today \\ costs < tt new corntruellon.
AND EFUCIENCY IN RESPONDING TO in other FMl related regulatory action.
GPU rem.uns committed to a course or
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in late October. our Penns) h ama subude action u ha h w dl deler construchon of nies' customers maeased their f undmc et new generanon fauhties as long as pows-the'l Mi-2 cleanup by about 515 nu!! ion ble. W e equ t to be able to accomplish per year, w hde reduang other resenues by thn objectne by continump to contratt for Smee then work mg with a Master Plan an idenocal amount.
tum power purs bases with neighboring des chiped by the Sy s:cm's economic, in rceognition of hichcr non 'l M1 unhties. by turther espandmg an already plannmg and engmeenny experts, the related lesch of msestments and wsts, our ambitious. agereun e tonsen ation and GPU companies hase esobed programs Penns)hama subudiaries wcre granted load management program. by espandmg for residential, commeraal. mdustrial and
%3 mdhon in annual base rate mcreases onw tumhes f or cogeneration in our sers-Institutional customer s that are among the by the PLC on ()tloher 25. lW5. JCPAUs R e temtoriet by imptos mg ihe pertoim-most comprehensise - and most
%7.3 nulhon niin-I M t related retail rate ance and citending the hfe of es nting ambitious - o!!cred by the nationiciec-mtrease request filed July 12. lW5, n cur-generating f acihties, and b) enhancing siur tric uhhty industry today.
rently bemg pracoed.
import capabdities by more etiet taely I he programs base two Iacets. One h In 195 5. Ihe GPU Sy Mem tempames usme our exntmg transnuwion and dntri-tonsen mg energy 'I he other is Imd man-were able to remain current in recoiermt bution netwot k.
agement. w hich we use to shilt load so we g
can use our most et ficient and lowest cost energy costt McFl.d reduced energy wst rates Iw sce in l'M for a total annual generatmp f acihties to meet as much of Ihe GPU S.y Mem wmpamcs began detrease ot 519 6 nulhon JCPA1. m.nn that demand as possible.
thelrellotts m encrpy conservation in lained energy wst rates at the 19s4 lescl.
To date. all of the GPU Sy stem's cus-1969 - well before the world od trisis 01 w hde Penelec required a $25.2 nalhon tomers base shared in some $X50 mdhon 1971-w hen it became es ident that mila-01 sas Ings through these progrann.
energy cost ra!c msrease tion, the end of the utihts industrs \\ econ-GPU customeri bdh rem.nn in hne onnes of wale, and the mcreased(ost of wlth nCichbtlijne tillhtle s.
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~1 he Residential Coot.NinAnoN Il)O rates are designed to encour.lge huele) Consenation Action ProgrJm.
.l,he laste51-prow Iny alternate enCrpy custorncIs to postpene he.n ser uses of UnJer this procrani. w hhh was unple electncity unni et!- peak i our s w hen their menicd in l'h 1. t be G Plicompanies p.n a nut-source tmta\\ is toceneration. the su.
taneous produst:on of heat and electtieity eleCIThlt) is hil!Cd at a }oM Cr rale.
conf rat f or an amount propt >llionate to thC f rom a single energ) sourec.
'I hese lou er rali s re!! jct t he lou er cost elettilcity sas ed in hitmes in W hich the
.I he surge in cogeneratitin actn ity has 01 paiducing electrhit) wI!h the most elil-contracle r has installed energy consersa-
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been spuned b\\ two leen. tatne attions tient eeneuung umts u hen demand tor tion improiements. The customer int urs that niake it economically attractne. Ihe p1 M er h b'u flo cosl and Ihe utilit) pay s thJ eontractof Puh!ic filhty Regulatory Pokey Att In ad Suen. the IUD rate helpuennol only for actualenergy sa\\inys realveJ (Pt RP.\\iot 197h encourages togener-the crow!h ol elecirlCiti demand. M hh h oier se\\ cr.il \\ c. irs.
amr s b\\ requning utilities to buy elec-helps delay the need io huild exWnsnc RIGP n now being tested in up to triciti trom them L. hties hus at a rate new ceneruime f acihttet % IIh more than 5 MiH1 homes in the Gl'U S\\ stent These ti t;p tl to llie a\\illded cost - w hat it wiiuld sn.u in reudennal customers and all et our programs..re the hrst of their kind m the cost the utthty to generate the extra clee-laf et siirms N lal and industri.d cu shimer s
! S \\\\ hile(ip(' espects tip spend oscr $l5 tocit\\ :tsell - or at necotuted contrast (10 t he IJ e. I11'(. is ($1lC 4 51 the natl + 'ri N nllllHin h)[ the multi y c.ir prgiprJ!ib, wi\\ -
I lcJilCis in the use til l()l) rates.
In\\estment tax t redits and energy tax (redits pro \\ ide ether incentn es I
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throu c h the cl'at i d IW.. loraled ahiut NIII) wlih a t(ital capacity q aN>ut 276 ruega-b w ath. u hich represenh about 4 percent of i F-nlllllnm IwCr w hJ! It u(Old hasC(twt (t) purchase pow t r t rom the reponal power the Sprem's peak load f -,
I4 j g pool lidt I) lbl )e Jr. IUP A L began a lone PIANT LH li EXTI.NSION m
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'I#'U n> hoin Pennsy h ania Pow er A esaluatmp ts oldcr eeneranny st nons in
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Light Conipany ' PPAlJ through IM with Ihe amount then detInunc uni!ormly an eitort to kep t hem operatmg cf hcientl) hme mm u m m.
wcH bey nd theu *raditionalictsrenient Cah year thrimeh PN snrioss mus s-cososuc st Nst Ihh wI!! plosIde a stahle relub!c ages in the pet. our f ossd-t ueled pow er wur<e ot econonntal power for JUPalJs pl.ints rhtrola!!\\ were retl[ed alter thes had (ip{ ' ts ; yesslgely rsg jn,, t his sggg.
t astonkh dming ille NCst l Elhi 15 s ea: 3, and il sup[!) alnhKt 3n pcIsent iet been in 'C rs k e.th nit M I y ean l t ida). the en as lmanJing pernnts, and b Colomilled cwnonucs mn onen lawr inseshog to to es tenJmg plant operaung In e s
.lCPAlJs energs segmremenh 'I he f uel rChablllta!)ng !!.e esistInf stJ'h ms iti k ecp j(l'Al. iet entl% signed an greeng[ t,i Inl\\ lN Ibc pult hPC. hJed tin a pr., rata lhCol ru n ning l sin t Jr. u hen con; par eil ti) purglu'C p'Mer tr'4n a nuHir ctgneMlhm
'hdIC I'l Cd'h i a 11 WIJS generatine unos t ew en.
l A d dg. The l }j-nlecau all laellus w dl he wI I be ahlut 25 percent Musicar, h% per abcrnJlnCN Int lUdme buddin cranng stahons to replas e Ihem buik in Ibyunne. New lersey. and w di t ent coal and 10 percent oil and other
'""hC5 The t iPl' operanny t ompames are produce clearway for ICPAl and steam Ies ICuing !!!c cimditnin tit the,r tdder sta-18 4 sJIe h1 a nuinber of ct)f npanies.
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" ' ' " '" M th ms. estnhatthy the cost of phigranh Iti l$cCaU W I'l th need lor Ct tinonuC enCrg) m unt:nn or unprose pertornunte and to sources, JCPAl is cspecully interested m be able to meet about 75 peu eni of us estenti their operahng In es. and study mg idenm) mg and dewloping cogeneration gnremenh w nh ih ou n pencranny stm IUW' bMOd. PM W @ b c w lll um IbC i t hi bCfNtits td d,qng this ct4npard t@ dmmlb M b n@Nd a ya-with drc roaines sus h e part hemp pow cr rate subshary. I nergy Imhain e. Inc unue to be a numr eleinent m our stra!cey b T s"PP ) mg reliaNe anJ couu mut I
or htnM!np MCW planh The results t4 these t.rthispurptne.
studies will help us allocate our tund s tor I nergs lmtutnes w as created by P"wer We are A ncly pursumg and nego-the greatest et ta tncness.
JCPAl to promote the deselopment of hahn; for lon e tenn power porthees. tak snuH pow er produs non and togeneranon ing nuo consideranon transonwion l44'la is IIirt nughinut the sl,t!c ot Neg t apabilf ty. lo.ld.c[t1% t h. $ a p A t[\\,n al]3bgl.
Jersey. I nergs Indi.ones prosides encryy ny. and the econonucs of f uel supply projeti desclopment st n hes. mtluthng
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maximum use of its transmission Ni.w Gl.N1 R ATION bined escle plant for JUPAl. in the 19ms.
resources consistent w ith the economics ot Buildine new central eeneratine sta-purc hase options and sound operatine This combmed cycle plant torJUPAL tions w ill be a last resort in our elforts to w di be continuously res iewed and pratticet Near-term enhancements to the dmW transmission sy stem transter capabilii) are deterred unlew it is absolutely required bm waMd wem made when they are cost ettettise.
%'e willitiake esers ef fort to asoid under-to del'er sus h tonstruction and plan to con-llecause of the hichly mteractne nature of takmg sut h construction w ithout ptior tinue this strategy. %.e are, how eser. [w ni-the interconnected transmisuon sy stems.
assurances f rom our regulators both that tionine ourseh es to be able to add new much of'GPU's near term etti>rt to the projeet is ticcessary and appropriate ceneration to our ss stem should tha enhancC transmiolon capabih!) Ins oises and that the insested capital w di carn a beCollte nCcessars. Ihe focusot these cash icturn and be recosered in rates-Y.
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\\ lore thJn 2.$ dl uultt) custon Cr' rCCel\\ ed ht If in [J)ine IbCtr ek Af rk bills IaNt!!Jr t LHIJIH: nit) aw areness prt'/ ram CtRilmitICe d'thpf1*Cd Id three L dlhe Illur j
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progrann. know n,a horca G ed Neigh re h e u m h liccause of their dady pres-board of ihreetors. I he Comnuttee and its bor or h orca llelping flard cine throughout the wmmumty, utiht) mdeperaient statf pros ide additional mer-('ustoners m linJntIJIiwed reWn ed emph$ ces aTC ul J p.H tlCuIar {y g6 Hid p hl-slght of the trJming,4 hpCranons and rnan-more than WnM o through the tomt non to be alert to ny unusual xtn ny.
acement of TN11 1 and 0 ster Creek.
3 endenors el the t ;Pt comp unes and iherr w ha h ihey tao rcpmt to hical pohce apen-In addnion. GPl' has mos ed t ustonwr s and employ ces. Ihefund are t ws. % e're there and we care aggressnely m upgradmg its nuclear tr.un.
distributed d,reugh somma uty sen h e NUCLLAR SA) LTY mp, ejMons and 1.h Mes M any of i
"W "' ' C' Operanog our nuclear f auhnes safely n those changes were based on the lessons learncJ Irom the I N112.hcider t
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onut our ponm oNeono work u nh custorners espenent mp nran' lo n,eet thn tomnatnicnt. the GPl; t he enwiceng preparednen plans j
ual diths uh> todeselop a sun.ible pa)
Nih lear Corporanen is t harged w ith the doeloped at 1 M1 and Oy ster Creek are ment planor acter tbemioone of the sole regnubihty oi gerang and nun also n adable ter any other enwr gency inan Inade or natural. 'Ihe GPli Nucicar Olopelannp aferh!Js for lorther n stem s nW leJr hru%
ggg ghg s d "' 'Id"' C mMnc the en of I NH Umt 1. w hid Medu Center at llarraburg. w hu h w.n buik to han& thi dow of uitornianon in a du terent \\cm, c.a h ol the (iPl' has Iren du ompMhed saf ely. the saic and operatmp comp.mies has msntuted a pro ethueni(kanupof I Mil'mt 2. and the dunng an enwrgent b w as reand) used by pram known sanously as Crime Wahh.
continued operanon of Oy ster Creek and Penns)lunia State Unnerury N Hersho j
l nhty Warsh and l'hiny (' tune Wah h.
j y;;.ng; Medleal Center w hen ihcir phy su uns p:r-Ihis Company wide \\eruon of the n"" ~
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l'onned their hrst aiuticial hear t u ansplant inhed a Nuclear hafety and( omphante i
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('omnnwinn, the Tudulkm Mtict) ar.d contlntung study on [N>rtions ut Pcnclcis The GPI' Sy stem imta'ly t oncerned 1 ast Stroudsburg l nnersny to nghts of was Ints 31 speties of birds. as w ilh protCcling the ein Irs Inmel.t in a reiniroduce thn bird i't prey t< > the are.i.
w ell as dcct. 6 ott< mtail r.ibbit, rut led resjunsible and cost ettectne manner.
A nunne ble lundhng sy sicm has been grou se. w dJ iud ey, olwum. t accoon Iletween 10 and Pn5, the Sy stem com mstalled at Oy ster Cicek. I hat des h e and wo.sk hut k pames got approumately one half bd dncils nunne hre f rom the plant. return.
Mernil freck. t resenoir(m enng b50 hon dollars Io protet t the ens ironment.
ing the Inh and un errebrates '.o t ))sier acres. is under tonuruction by a(onsor I hC Companies h.n e entert J into a number l'rct k and ILir neg..t lia). I he sy stem c.in ti nn or utthiics. nh luJine JC'PA1. anJ j
ot' consent orders and des tecs w nh regula-abo transler ihe manne hic Irom Ihe water N!ct-i-d I he resenoir w ill pros h!c fory agenues to pros ide tone to da ch'p shJe to an mJoor hohhng pool for identih replacement w accr f or the 1)claware Rnct and impicment control cratecies tanon and mspect:on. par 1 of an ongome M minnnire the nnp.h t of power genera-cns ironmentaf unpast study by ( Wl rion on the i n er Junng t unes 01 diought h Onit R Ess inouttNi At l'arxinasts I
Nuaar Corporanon w di sunultaneously proude a natural hah-
% lnle maior conuruenon lends to dn.
At Ihice Mtk Idind, abouf h.!!I til the ltat hir the wi!Jlif e iri its suriiinirnbric luIh w IlJiite habarats. w ildlife is pndi!crat
- Las te nland is m.nntameti m its rutural 2.Was re land presen c. I A pected to be lny afi'und Cles IrlJ lM'uer plaf'ts. ufh!Cr state alid sW[jkilis a nillhlluJe of indige-tiirupleted iri loss the rnyet t w ill prin ide transnu uton hnes and w u tan ot hc r n_chts thaus alld[IlJ In addllh'n, I $11 emphn i npjN'l tu nitie s hir IUlnting, ilshing, lh 'al t'l w as In bh at birlillili a chi ttit t he ( el4'
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- m persono; t. Jonate resources in the winr r t aref ully tontrolicd program ot hm-c cath UI't smpans tAus on prevn mp O h tn!l.s til bin hJ), t ill rl and s alt bu ks f or inten stt) phbbC usCs desig nCd lo frescr s C the natur al u.s sico ern nomnent and thcu IIiJ detI. w hh h af e lill.thie 16ilind it41ufish the (r.Whpilli harJerer l'l lbJ II w al af Ca
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Pcnch m unt uns eletloc transnu-sion Menill Creck, w hh h a hw ared m its sen nata c iupMan.m of ospics itnh h.u k u r echh of a n w uh coth cro for w ddhte A h e terntor y fell s a tun to the ellet ts of h Nat dc'Irut 11:511. SIcl l i! is a.sistin;" (f) a l4t t3 s i t in 4
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len emg cm-irowns for our a mploun tary. Wilham I.. Gilh>rd was named Vice EMPIDYMENT OPPORTUNITil:S EMPwYIIS hesident Commumcations hir GPU GPU n manmued to proddmg a de Sen h e Corporation.
lengmg work enuronment for all of its v.
s I. Allen Donot no w as elected Comp-employces Our continued success M AN AGl MINF CilANGl.S troUer f or GPC Jnd V.ce PreMdent anJ depends beauly on the tull and etfetine I'loy J J. Sunth. Preddent and Chief Comptroller of GPl! Seruce forporation utihranon of allquahtied persont The Operating Ut neer ot N1et-l.d. w di retne m Nta) 1985. Ile continues as Vice Preu-GPl' Sy stem companies base imple-Ntart h 31. PM athr 37 ycan of scrne dent and Comptroller of GPU Nuclear mented Alfirmatne Action Programs w uh the GPl' Ss stem Suucethop lum Corporanon. Ntr Ihmotrio rep! aced designed to encourage the f ull partaipa-will be I red D llater w ho haJ pres ioudy I:dw ard J. llolcombe, w ha accepted a tion of women and nunonty pioup mem-I sened as Vhe President-Rate Case Ntan.
bers in aU areas at alllesels of the agement of GPl: Senice ('orporanon anJ P
Company. Attennon to the admimstration
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I mans u! Planna e and Irecurer ot (iPl' inins til e.h h 1)t the S) stem companiCs.
Set s k e (hirptiralD in and I rca surer i;l (il'l' Oi'It WRIM D111 ND% ON Int iL ii. AND llaining and apprentice prograiin are N, uJe ar (.orp,4 anon (iraham w dls on i t,i a su ru o,- y i nem n n n p,inoNt prog ided l.or employ ees m potchhJll) hab tinue as liceurer of GPl, and w nl hcsome ardoin tohs such as imemen in addition.
a Ihlector of the(ili' tijs/ratin thCre are c\\Ierlsne h'rmal trJining pro-lH Williin as as4stant til Verik'r 11 Ctmdt $n subsidiaries an Iaccutne Vice President of GPl! Sets-grams for our nudear plant operator s
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At yC ar-crkl l%.'. the numbCr Int (iPl.
laahnes, int ludmg the cleanup ot ~l Nil llow son. Vis e Preudent R ates Sy stem employecs totaled 13.713. Ibn n a I'mt 2 Danne the r.carls sn scars of the Sues ecdme (iraham as.l r caulc r of 4 pcrecnt mercase ou r the IW emplos -
I Nll 2 cicanup, workcrs there base had t iPU Sen he ('orporanon and(;Pl' ment lesel. I hc number of GPt ! S.~s stem leu collet t n e c ym ure to raJianon than NuJear Corporanon n \\1h haci P
.mpiosces engaecd in non-nuclear attn i-wttrkers at mehl 48perallne ink lear plants.
N1onell
, < s om reced by i per,ent. I he number et A report prepared by (iPL t NuclearN (iPI '.mnoum ed ihe icinement of empiget s enya ced in nudcar.h tnines n i aJioloch al('ontrols Department at Wdh.un it NIun ay. Cor poraic heuetary op 6 pertent ou r lH 4 due to the mcreecd i N112 found that for the aserage I'mt ?
ani! Vh e Presulent Conununhan.ms f or need f or meenne nudear safets and com worker mer the entne sn scars, the ink (iPI' Nen he (brivratn n m 1o13 tw phan,e requnements IIolli 4 4 tupJtHinal Iadiation eyMhure has Gr.n e Wah w e named (.orpor.a:Setre been about the same as smokmg tw o oparettes per ycar, e
L f
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3 lhe @ operation vt our steam genen. tors. increasing the plant out-mec/rar t;u shno. im hulme the NUCLEAR OPERATIONS put to tuli pow er l'ntil resobed. thh situa-rotart ut / t//-/ am/ the < Iramer tion, winth n genere to plants of ihn v/ /M/ 2 illiotrain the < lose deugn. could result in penodw reductions harnrlanomhip vt our coa!< am/
ggy gun,g of output oba cto n as n !/ u s the i:n n!r-The three-month start-up procew w as Two che dwe m prmk m r el our mam i,oontu, n-carried out in a measured and dehberate reMW A I Miin PW A p dd manner. Ihe performance of both the plant
< in -- our on cuno, i n on"n r s.
thnuhmhonof s eof ornim to m r ehlen am/< replou n.
g g yg g]( it I to n
and the operators during this process w as n
I Al o m Ph5 the detueling otl Millmt 2
#'"P">'
began.
TMI-2 CLEANt1P TMI I Rt.srAa r
'I he TMI 2 eleanur remams on sched-The NuJear Regulatory Ou"nis, ion "I# I"""* P # """ '"
"'N""
h" "' 'h P " """ "'
"h""
on M.ly 24 htred the shutdf 6 n oldets on g yy.g reuewed and remains unt hanged f rom th; M dhon ohinate du has ban in plaw I Mi opponents unmediately mounted an appeats ellori that delayed iestatt until osa dw past threc ycars.
<s %
O< tober 2 w hen Ihe t '.h. Supreme court.
I he hna! piece et the l MI l'mt 2 L*
dI nQ m an 01 det nion. mted to hit the stay of deanup coq shanng prognun n in plaw the operahon at l Mi-l pendmg lurther he t undmg plan lot the deJMup wJs com-h y
appeals Restar t operations began the ne u pie when unigy inanny parhapahon
(
,ge; d,
wastommmeainuten u incoiy m 5 i
we u n dw unt indusay tuna and g
i Mi l returned to IIo pertent power on I
j q
January 6, Unh. alter tesunung opaanon we nrn t to waia dw min,unda at a me r'
I vd tonow me a shutdow n test on January 2 of about M5 nnlhon a year f or sn years tot he om mala nmu_tui-de.n ot e i"* u s" n"ihoo me nd>a "+
i y
9 o,u
- o_om, up p,am.
<ew - - meiena,r - - ow
!!j At the end of !)ecember. I Mi-IN power
""'C F"'""'"'"I'. the U h. l > epa rt ment o nag). c uqo at W and dw Jap-i s
output had been knutt-d to M penent by
- k. h depmik m the plant \\ 4 cam generators.
""#'e powa indusu y - hu ban in Subsequent culaanons mdicate that the plaw Men taken togetha w uh dw W 4
,b[
shutJow n tot. plas.m automahe shut.
nulhon of msurance proteeds pres iously 5
I "Q ~
dow n onhe reauor nianteurred w hen iht k""ed H' de""u r '""d'"g c"e" l
"y '
reaaor w a, rotaned ionow me ow test, ti"H) "'"' red h"'ed "" "w M bilh""' o't M
resuhed m iedntnbunon of the depouts C' tun.de Howeser. the I)Oliilong term I
W?
. JE~2ALnT Inn anowca pwa,, u.ne, n,,w in om conumtment to the deanop lun<hng n ub-ject to t ononump l'ederal budget reuew Tui 11 R H
- ms< a of n< n n u n-ri AN r Asn ini ill1 R AioR5 % %s t \\f MPt.ARY til Riso g ut TMI-l s r Ak tt e iRix iss.
i
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l A major milestone w as reached on returned saf ely to Oy ster Creek from w est-restart and that they would separate inses-October 29. l985 w hen removal of the f uel ern New York.
tigations of pwsible insobement of indi-elements and debns f rom the TMI-2 reac-The 224 spent tuel awemblies were uduah in the TMI-2 leak rate testmg tor began. This is bemy loaded into can-returned under terms of a court order that problems f rom the FMI-l restart decision isters for es entual shipment to a United required GPU Nuclear Corporation to An independent investigation of leak States gosernment facihty. Complehon of ren ase the spent fuel from the site of a rate testing before March 1979 at FMI-2 fuelremosalis now scheduled forJuly fortner commercial spent fuel reprocess-was completed in September and the 19S7. The es peditious, sate defochng of ing f acihty at West Valley, New York.~1he rcport w as provided to the N RC.
the TMI-2 reactor and completion of the spent tuel w as shipped to West Valley f or The investigation, conducted by former cleanup program remain major goahof storage in 1975.
New Jersey CriminalJustiec Director GPU.
'I he spent fuel is now back in the Oyster Edwin Stier user a 15 month period, was Creek spent fuel piol mside the reactor commissioned by GPU Nucicar and OYSTER CRiiEK OPERATIONS buildmg. Ihe 33 shipments were com-ins oh ed estenske technical anal) ses of 4
Ovster t.reck returned to sers icc on picted between January 3 and July 9 tests and interuew s inwh ing more than N.osember IS. on schedule, alter a month-w ithout incident.
(d] indh iduah.
long outage to mstall modifications to ens ironment.dly quahty eletincal comen TMI INVLSTIGATIONS senior h stem oWars awewd the nents to meet NRC requirements. GPU
'I he 1 Mi-2 accident ins estigations and
" " " " " I'II""" "" "I P'C'C"I Nuclear aho pertonned mamtenance that ingmnes connnue. In Februar y 1985, the emp o)ces inw n the M2 M rate can be done only w hile the plant h out of NRC ruled that no additional hearings testmg and has completed disciplinary sets ice were needed bef ore decidine on 't Mi-l
"'U""'
in 1985. O) ster Creek log ced its best On 1)ecember 18,19S5, the NRC operating pertorrnance in six y ears. reach.
ordered public hearings on the pwsible ing a capacity fastor et (H percent. w hh h inwhenient of present or tormer Met Ed is slightly lugher than the national aserace L
employees in faluheation of leak-rate tests for nuclear pow er plants.
"I M 2 '" l*#
On July 9,19SS, the tmal shipment of more than 5titons of spent nutlear fuel w as
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l The management of General Public able assurance that awels are safeguarded nuttee also meets periodically with the Utihties Corporation is responsible f or the and transacnons are esecuted in accor-independent auditors w ho bas e free access inf ormation and re presentationwontained dance w ith management's authori/ation to the Auda Committee, w ithout manage-in the tmancial statements and other sec-and recorded properly to permit the prepa-ment present. to discuw intei nal account-tions of this annual ceivtt Iheimancial ration of hnancial statements in accor-ing contral, authting, and financial j
statements bas e been prepared in confonn-dance w ith generally accepted accounting reportmg matters.
)
iry with generally accepted accountmg principles.
Coopers A l.) brand, independent pub.
I principles consistentI) apphed In prepar-l'he lloard of Directors, through ih lic actoumanh, are engaged tocunune ing the financial statements. management Audit Comnnttee, consistmg solely of out-and e sprew an opmion w his h appears on 1
makes infonned judgmenh and estimates side directors of the Company, is responsi-page 22, on the hnancial statemenh.
of the espected ettech of esents and trans-ble for ro icw ing and momtoring the l
actions that are t urrently being reported.
Company 's unancial reporting and i
1 To tulhli ih responsibihties Ior the relia-aaounting pracoces Ihe Audit Commit-4 bihty of the unancial statements, manage-tee mech w nh management and intern d 4
j ment has deseloped and mamtains a audnors periodwally to reuew the work of j
sy stem of mternal accounung control.
cath.ind to monitor lhe thscharge by eat h l
~1 his sy stem is intended to proude reason -
of th reqwnsihihties. The Audit Com-t
)
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6 Wnt RI liti.1985 Rnr Not Dot t Au WINT tv v~y 1
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unce 1980, in addition to increased earn-about $503 million in 1956. N1aturing debt l
! MANAGEMENT,S DISCUSSION ings were imprmements in the subsidi-and sinking l.und espenditures were 586 l AND ANAISSIS OF FINANCIAL y;es equity ratios.emerage ratios and million in 1955 and are espected to be i
l CONDITION AND RESULTS OF securities rahngs by the national rating about 563 nuHion in 1986. Alanagement j
! OPERATIONS agencies.
estimates that apprmimately 75% of its t
_. ~
The GPL' System's equity ratios hase total cash construction plus maturing debt g
i imprmed since 1980 as a resuk of debt and sinking fund requirements in 1986 w ill i
D M
N" Lu3mnrry Asn CAPirAL. RLsoenci;s Since 1980. lonptenu debt has been funds w ith the remainder being obtained The GI,U Sy stem s fmancial condihon reduced by approumately $300 mdlion.
through esternal hnancing, has substantially imprmed since 19ho. the Notes pay able to banks has e been reduced it is management's intention to continue first full ycar retlestmg the impact of Ihe to fero at year-end 19S5 f rom the peak of to make only thme construction espendi-1.N112 accident. E..dence ol.such u
5324 nulhon in mid-1980. The Sy stemN tures necewary to compiv w ith regula-imprmement is the GPU Ss stem s aNhtv caNahranon rahos am aMm sns operaw saMy anheha$ meet to obtain lone-term tinancine throuch 1
customer needs. Management has estab-accewmg capual markets and other sources. I.or the first time unce the year of.
lished a supply plan designed to as oid, to
,9g
,99
,939 wn! powMe, wnMmson of new the TMI-2 accident, the GPU System oper-generating iacilines. The plan sneludes ating subsidianes iwued long term debt tWong an.1 3
Ainaennt m
M Oe nts to minimize demand upon the I
through pubhe of ferings m the form of hrst Preferred stoa 12 12 12 symtem. 2) estension of the 'ife and max-mortgaye pollution wntrol lmnds in the p9_
43 4g 33 un ahon o uhWahon of eW,ing i
loilowing.unounty JCP&l. 512.2 mil-I""
C' N #"*""F "F "d I""
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lion; Met-1:d. 528.5 milhon; and Pencice.
U* E CI"P*C"' "I'"F#"#'"'i""
- 4 3 *"
l 520 nnihon in aJdinon. JCP&l. entered imizing long-term contracts for energy f
into a lease to finance up to %ro milhon of purchases from odwr utddy sy wms and, I
its nuclear fuel requirements for ts Oy ster l
Creek stauon Addinonal hnancmps are Managemenfs capitalitanon target of
- 5) as a last resort only. new generation j
beme wnsidered for the GPU Swtem 434 debt.129 preferred stock and 45g construction.
1 l
operat mg subsidiaries in 1986 to rehnance equity b espected to be met in 1986 by Interest cmerage ratios for the GPU matunne debt. satisfy sinking fund knuung constms tion spending primarily S) stem have also imprmed since 19X0.
requirements and hnance constructmn.
to antounts that can be hnanced through The deercases in 1985 mmpared to 1984
.l Contnbunny to the GPU Sy stemN inwrnally generated f unds, as discuwed are due to lower earnings in 1985. These renewed longterm hnanemy capaNhty below. Consiera w ith that goal manage.
ratim by subsidiary are as follow v ment contmues to beliese that substanhal q
retention of cah earnine is an appropriate i
pokey to pursue in the near term. 'l hese
[
interest (.merage l
l retained earnings are being employed to F
J support necewary construction and con.
1943 19 4 1980 tinue to impime the equity raho toward j
our target.
Jeney(.entral
)
Construi. tion es penditures were $40S Iwer a ught 2.93: 3 23 1.86 i
nullion m 1985 and are espected to be Metrotuhtan liinon i R$ 3.03 1.02 linmylvania l:.lectne 3.39 4 n0 2 n6 2
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tin.o ', itm t.o. !
thr c lo rt t.u.a d ear rm a roul Imp lio:n cm e 1 1 e.l I f..I. n a t in I ' ' t d;Jr
..nno.
!the i\\ll 2.u.l i
I i ti cl R m i nu otn ent, to i! e present 18 -
salue of future resenue streams. (See Note the hrst f ul!yearimpact of thelMi 2 TMI-l costs in customer rates for most of 2 to hnancial statements, page 33.)
accident the year and 2l to allow recosery of the A claim w a reccised by the Cormra-The 19S4 earnings insluJe an unusual insestments in TMI-2 and Forked Riser tion from the Internal Revenue Sers ise credit of $29.8 mdhon, after tases, for the but w ithout a return on the unamor tired (IRSidated July 1,1985. for additional deferralof abme-normalespense related ins estments. With the return of TMI-I to Federal income taxes for the y ears 1977 to the outage of the Oy ster Creek nuclear rates late in 19X5. that aJs erse impact will through 1982 in the amount of approe generating station. Uns deferral was per-no longer be espenenced. The lack of a imately $120 million for the GPU System.
mitted in a rate decision by the NJllPU and return on the1 MI-2 and Forked Riser 1 he Corporation ided a protest w ith the is bemp recovered user 18 years u ithout a ins estments w di contmue to deprew future IRS on September 23.1985 contestmg the return.
earnings but in a dechning amount as these proposed awessment. If the IRS's po i-insestments are amortiid. l'or additional 1985 vs.1984 tions are sustamed, management estimates informatmn, see the first section of th.is lhe decrease in 1985 net income of that the GPU Sy stem w ouiJ ou e additional manacement report and Note I to hnancial
$32 0 million compared to 1984 income taxes of approsimately $173 milhon plus statements, pages 28 and 30.
ore an curaonhnay item. msu dps l
mterest w hich as of December 31.1985 man inun lugha opmhng and rnainte.
i amounted to appiosimately $30 mdhon, nana esiwnses in 1955, partially of f set by j
net of ta ef fects. Assuming the contmua-
'd'# *"Cd'C' E'"""'d to subsidi-tion of the currently applicable annual ano in 1984 and 1985. I or a dncunion of interest rate of 10'i. interest for the year thauraordmary item in 19S4, see Note 3 19S6 would be approsimately $13 nullion, net of tax efrects. In the event the IRWs to hn incial statemenh. page 35.
gwinons are sustamed, management 1985 vs.1980 belieses, based upon the current haancmg 1he increase in 1985 net mcome mer capabihties of the GpU Sy stem anJ 1980 resulted primanly f rom rate inc reases awuming continuation thereof. that the granted to the subudianes by the state required land, would be as ailable. (See regulatory comminions, increased Note 7 to financial statements.,uge 30 kdowatt.houc, ales, lower interest espense Rt.st't.Ts or Of4 RATIONS debt. reduced lesels of short term debt and Net income for 1985 w as $96 5 mdhon or $1.5J per share, as compared to $128.$ lowerinterest rates Partially ott'rt'mg
'"'h inaeaws to intome w ne inmases in mdhon of mcome before an estraordmar>
item. or 52 05 per share in 1984 and $20.6 opnahng an maintenance espenset Although net income m 1985 reflech indlion of net income or 34 tents per share n coscry w hen compared to 1980, sus h in 1980. I he ycar 19X0 is being used for comparatise purpmes because it refletis earm ng les els continue to be impacted bs regulatory decnions il not toinclude most i
m.
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- QUARTERLY FINANCIAL DATA (UNAUDITED) l
' ~ ~
'turL*M MC1M:7:n=%=2DM M MIt'um)
First Quarter Second Quarter In Thouwmh Drept l'er Share Data 1985 19S4 1985 1984 Operanny resenues
$762,631
$693.113
$673,343
$658,710 Operating income
$ 79,624
$ 79,985
$ 56,295
$ 65.337 l
Net income
$ 34,161
$ 33.272
$ 12,%7
$ 19.049 Earninp per share
.54 5
.53
.21
.30 j
Average shores 62,864 62,864 62,864 62,864 Third Quarter Fourth Quarter for Jhowamb 1.nc ept l'er Sharc Data 1985 1984 1985 1984
-.~.---
1 operating resecues
$740,348
$705,035 5693,187
$678,428 Operarme inunne
$ 77,585
$ 81,591 5 58,955
$ 88,335 franme bef ate estraordmary item
$ 35,235
$ 34.945
$ 14,143
$ 41,239 lhtraordman item (Note 31
$ 19.753 j
Net income
$ 35,235
$ 34.945
$ 14,143
$ 60,992 liarmnp per share before coraordmary item 5
.56
.56
.23
.66 1
j lhtraordmary item per share 5
.31 i
I!armnp per share
.56 5
.56 5
.23
.97 i
Ascrace shares 62,864 62,x64 62,864 62,864 1
Income beture c uraordmary item her the iourth quarter of 1984 includes an unusual credit of $29.8 million representing the deferral of anne normal estenses recogmicd in the pnor three quarters, related to the outage at the Opter Creek nudear generating stanon.1:or a,lditivnal mlermation see Note I to financial statements, page 27.
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CONSOLIDATED FINANCIAL STATEMENTS ANo NOTES 1D Tile FINANCIAL STATEMENTS
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INDEX REPORT OF AuorTonS 22 CONSOUDATED FINANCIAL STATEMEKTS 23-26 notes To CONSOUDATED FINANCIAL STATEMENTS 27-40 SYSTEM STATISTICS 4l Es-FEcTS OF CHANGINo Pasets 42 1
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TO THE BOARD OF DiRtc10RS AND S rOCKHOURRs GENER AL PUBUC UTIUTIES CORIUR ATION PARSnTANY, NEw JI RSEY i
I We have examined the consolidated balance sheets of General Statements, the Corporation's New Jersey subsidiary is engaged INblic Utilities Corporation and Subsidiary Companies as of in litigation w ith a nuclear fuel supplier involving the pricing of December 31,1985 and 1984 and the related consolidated nuclear fuel. At this time, the outcome of the litigation and the statements ofincome, retained earnings and changes in financial rate-making treatment of any increased fuel costs which might position for each of the three years in the period ended result from an adverse legal determination are uncertain.
December 31,1985. Our examinations were made in accordance As more fully discussed in Note 7 to Consolidated Financial w ith generally accepted auditing standards and, accordingly Statements, during 1985 the Corporation received an included such tests of the accour. ting records and such other assessment from the Internal Revenue Sers ice for additional auditing procedures as we considered necessary in the Federal income taxes and related interest for the years 1977 circumstances.
through 1982. The Corporation has protested the claim, but the As more fully discussed in Note I to Consolidated Financial ultimate outcome of the proceeding is uncertain.
Statements, the Corporation is unable to determine the ultimate in our opinion, subject to the effects on the consolidated consequences of certain contingencies u hich have resulted from financial statements (1985 only for the matter discussed in the the accident at Unit No. 2 of the Three N1ile Island Nuclear fourth paragraph) of such adjustments, if any, as might have Generating Station (TN11-2) and of the response of rate been required had the outcome of the uncertainties discussed 1
regulatory authorities to that accident. Among the matters above been know n, the aforementioned statements (pages 23 w hich remain unresob ed are (a) tl.e ultimate cost to be incurred through 40) present fairly the consolidated financial position of in connection with cleanup of TN11-2 and the recosery of that General 1%blic Utilities Corporation and Subsidiary Companies cost from various funding sources including customers, and (b) at December 1985 and 1984 and the consolidated results of their the recovery of the excess, if any, of amounts w hich might be operations and the consolidated changes in their financial paid in connection w ith claims for damages resulting from the position for each of the three years in the period ended accident over available insurance proceeds.
December 31,1985 in conformity w ith generally accepted As more fully discussed in Note I to Consolidated Financial accounting principles applied on a consistent basis.
COOrt Rs & LYnRANo FumUARY 25,1986 1251 AVENULOF tHL AsttRicAs Ntw YoR A Ntw YORx 10020 i
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GENERAL PuBLic UTILITIES CORPORATION AND SUBSIDIARY COMPANIES in Thousands For the Years Ended December 31, 198a 1984 1983 l
Operating Revenues
$2,869,509 $2,735,286 $2.480,3N Operating Expenses:
Fuel 432,341 445,012 427,747 Power purchased and interchanged, net 550,976 798,256 740,702 Deferral of energy costs, net (Note 2) 215,681 (137,152)
(115,800)
Other operation and maintenance (Note 8) 769,418 715,289 620,915 Deferral of Oyster Creek operation and maintenance (Note 1)
(55,306)
(20,470)
Depreciation and amortization (Notes 2 and 3) 223,324 219,491 219,593 Amortization of property losses (Note 2) 25,343 17,494 27,023 Tues, other than mcome taxes (Note 8) 264,977 246,669 221,900 Total operating expenses 2,482,060 2,249,753 2.121,610 Operating income before income taxes 387,449 485,533 358,694 income taxes (Notes 2 and 7)
I14,990 170,285 103,622 Operating Income 272,459 315,248 255,072 Other Income and Deductions:
Allowance for other funds used during con,truction (Note 2) 8,923 5,117 7.979 Other income, net 7,483 7,225 12.464 income taxes on other income, net (Notes 2 and 7)
(4,097)
(4,099)
(6,773)
Total other income and deductions 12,309 8,243 13,670 Income Before Interest Charges and Preferred Disidends 284,768 323,491 268,742 Interest Charges ard Preferred Disidends:
Interest on long-term debt 145,794 150,824 157,058 Other interest 12,I18 11,296 8,413 Allowance for borrowed funds used during construction-credit (net of tax)(Note 2)
(8,402)
(6,680)
(3,643)
Income taes attributable to the allowance for borrowed funds (Notes 2 and 7)
(1,219)
(%I)
(1,046)
Preferred stock dividends of subsidiaries 39,971 40,507 41,053 Total interest charges and preferred dividends 188,262 __ 194,986 201,835 Income Before Extraordinary Items
%,506 128,505 66,907 Extraordinary items, Net of Taxes (Note 3) 19,753 (16,018)
Net income 96,50
- -, 6 5 148,258 5 50,889 Earnings INr Aserage Share liefore Extraordinary items 1,54 5..
1.09 2.05 5 Extraordinary items Per Share
.31
(.26)
Earnings 1%r Share 1,54 $
2.36 5
.83 Aserage Common Shares Outstanding 62,864 62,864 61,526 CONSOLIDATED STATEMENTS OF RETAINED EARNINGS (NUTE 1) c, a ' :w
. m GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES In Thousands For lhe Years Ended December 31, 1985 1984 1983 Italance, beginning of year
$ 726,912 $ 578,654 $ $27,765 Add, net income
%,506 148,258 50,889 Ilafance, end of ycar (Note 6)
$ 823,418 $ 726,912 $ 578,654 The accompanying notes are an integral part of the consolidated financial statements.
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I Asstrrs Utility Plant (at original cost):
l in service
$5,096,555
$4,800,522 less, accumulated depreciation (Note 2) 1,564,325
_ 1,445,912 Net 3,532,230
_._ _ 3,354,610 investment in 'Ihree hiile Island Unit 2 797,975 788,891 Less, accumulated depreciation and amortization (Notes 2 and 3) 289,698 _
222,116 Net
.___50N,277 _
__566,775 Construction work in progress 252,253 209,204 Property under capital leases, net (Note 11) 38,702 38,663
!!cid for future use 28,536 28,607 Nuclear fuel, net of amortization (Note 2) 124,625 154,720
+
Nuclear fuel capital lease (Note 1I) 50,473 Net utility plant 4,535,096 4.,352,579 Investments:
Other physical property, net 2,641 2,810 Imans to non-affiliated mining companies 7,775 13,875 Other, at cost 588 759 Total investments i1,004 17,444 Current Assets:
Cash 3,051 3,402 Temporary cash investments 121,594 18,536 1 unds held in special deposits for Tht! cleanup 12,11I 31,702 Special deposits 91,N00 37,386 Accounts receivable:
Customers, net (Note 4) 200,687 198,170 Other 15,102 22,MI inventories, at aserage cost or less:
hiaterials and supplies for construction and operation 104,070 95,708 l'uel 6N,255 89,895 Deferred energy costs (Note 2)
(27,137) 190,393 Ikferred income tases (Notes 2 and 7) 45,308 38,339 Prepayments IN,293 _
15,003 Total current auets 653,134 _
741,175
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Deferred Debits:
Unamortized property lowes (Note 2) 289,433 305,865 Deferred costs - Th112 cleanup, net of recoveries 38N,861 491,848
- Nuclear fuel disposal fee (Note 2) 64,990 62,321
- Oyster Creek outage, net 67,230 71,324 Deferred income tases (Notes 2 and 7) 94,733 95,616 Other 71,N00 77,620
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Total deferred debits 977,047 1,104,594 Tohl Awets
$6,176,2N1
$6,215,792 The accompanying notes are an integral part of the consolidated financial statements.
- Reclanitied to conform to 1985's presentation.
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i in Thousands Decemt,er 31, 1985
_ 1984 LIABILITIES AND CAPTIAL Long Term Debt, Capital Stock and Consolidated Surplus.
Long-term debt _(Notes 4 and 5)
_$1,816,311_
$1,797,154 Cumulative preferred stock (Note 6):
With mandatory redemption 58,300 _ _
63,650 Without mandatory redemption, including premium
_ 424,739 424,739 Common stock and consolidated surplus (Note 6):
Common stock 157,229 154,054 Consolidated capital surplus 781,558 774,508 Less, capital stock expense 18,056 18,056 Consolidated retained earnings 823,418
__ 726,912 Total 1,744,149 1,637,418 less, reacquired common stock 70 70 Total common stockholder equity
_ 1,744,079
_!_,637,348 Total capitalization
_ 4,043,429 3,922,891 Ccrrent Liabilities:
Securities due within one year (Notes 4,5, and 6) 51,736 75,746 Notes payable to banks (Note 4) 95,000 Obligations under capital leases (Note ! I) 63,915 11,398 Accounts payable 212,911 228,842 Taxes accrued (Note 7) 136,142 97,057 Deferred income taxes-energy (Notes 2 and 7)
(15,016) 88,297 Interest accrued 39,650 39,387 Other 65,970 _ _
63,144 Total current liabilities 555,308_
698,871 Deferred Credits and Other Liabilities:
Deferred income taxes (Notes 2 and 7) 690,706 656,644 Unamortized investment tax credits (Notes 2 and 7) 230,276 152,362 TMI 2 cleanup costs 387,614 506,725 Deferred credits-nuclear accident:
4 Insurance funds held by trustee 6,892 Cleanup revenues and state funds held in escrow 6,841 15,426 Industry funds held in escrow 7,322 10,877 Obligations under capital leases (Note i I) 25,260 27,265 Nuclear fuel disposal fee 91,257 84,029 Reserve capacity (Note 2) 69,426 65,491 Other 68,842 68,319 Tetal deferred credits and other liabilities 1,577,544 1,594,030 Commitments and Contingencies (Notes I and 7)
Total Liabilities and Capital
$6,176,281
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GENERAL PUBLic UTILITIES CORPORATION AND SUBSIDIARY COMPANIES in Thousands For the Years Ended December 31, 1985 1984*
1983 Source of Funds:
Operations:
Income before extraordinary items
$ %,506
$128,505
$ 66,907 Principal non-cash charges (credits) to income:
Depreciation and amortization (Notes 2 and 3) 279,109 251,494 251,214 investment tax credits, net (Notes 2 and 7) 77,914 35,466 (14,177)
Deferred income taxes, net (Notes 2 and 7)
(77,232)
I12.455 115,244 AFUDC on other funds (Note 2)
(8,923)
(5,117)
(7,979) l Total from operations 367,374 522,803 411.209 4
Extraordinary items, net of taxes (Note 3) 19,753 (16,018)
Extraordinary items (non-cash portion)
(19,753) 10,510 Long-term debt (Note 5) 80,300 25,500 j
Increase in bank borrowings (Note 4) 81,000 Decrease in funds held for retirement of bonds 27,000 52,800 i
Common stock 10,225 2,655 i
Deferred energy costs, net (Note 2) 215,681 1
Sale of nuclear fuel (Note 1I) 41,313 36,096 Reserve capacity (Note 2) 3,935 (6,81I) 20,470 Repayment of loans by non-affiliated mining companies 6,100 250 1,450 Decrease in other working capital items (a) 72,338 Other, net 24,544 8,320 Total source of funds
$724,928
$676,941
$597,175 l
Application of Funds:
1 Construction expenditures (excluding AFUDC on other funds)
$399,072
$306,264
$277,409 Leased nuclear fuel (Note 1I) 50,473 Decrease in bank borrowings (Note 4) 95,000 5,000 i
Retirement or redemption of long-term debt and preferred stock 85,565 112,722 178,096 j
Deferred energy costs, net (Note 2) 137,152 115,800 Deferred costs-nuclear accident, net 16,124 2,425 400 Deferred costs-Oyster Creek outage
$5.306 20,470 Increase in other working capital items (a) 45,804 63,072 Other, net 32,890 4
Total application of funds
$724,928
$676,941
$597,175 (a) Changes in components of other workmg capital:
Temporary cash insestments
$103,058
$(23,730)
$(60,781) 1 Accounts receivable (5,022) 22,867 I I,702 i
Funds held in special deposits for TMI cleanup (19,591) 9,402 8,405 Special deposits 54,414 20,163 10,372 i
i inventories (13,278) 45,094 1,239 Accounts payable 15,931 6,112 (53,303) i Taxes accrued (39,085)
(7,430) 4,243 l
Obligations under nuclear fuel capital lease (Note II)
(50,473) l Other, net (150)
(9,406) 5,785 Total
$ 45,804 5 63,072
$:72,338)
The accompanying notes are an integral part of the consolidated financial statements.
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and (d) the continued availability of funds.
NUCLEAR FACit.mES In 1981, the Governor of Pennsylvania proposed a plan to provide for the then estimated remaining cost of the cleanup The Corporation and its subsidiaries have made investments with funding to be received from various sources including in four major nuclear projects - Dree hiile Island generating customers, the Federal government, the utility industry, insur-station Unit No. 2 (TMI-2) w hich is now being decontaminated ance, the Commonwealth of Pennsylvania and the State of New following the March 28,1979 nuclear accident, Dree Mile Jersey. Funding is being received from these sources and others Island generating station Unit No.1 (TMI-1) and the Oyster generally in accordance with the Governor's plan; however, the Creek generating 3 tation both of w hich are currently in opera-amounts being received from several sources are subject to tion, and the cancelled Forked h iver project, all of w hich are annual authorization.
discussed below. TMI-I anc' TMI-2 arejointly owned by the As of December 31,1985, the subsidiaries had spent operating subsidiaries as follow s: Jersey Central Power & Light
$612 million, of w hich $39 million has been charged to capital Company (JCP&L),25%; Metropolitan Edison Company additions to the plant, $47 million has been charged to main-(Met-Ed),50% ; and Pennsylvania Electric Company (Penelec),
tenance expense and $526 million of the expenditures were 25%. Oyster Creek and Forked River are ow ned by JCP&L.
deferred. The subsidiaries have credited against such deferrals These nuclear projects are operated and maintained by G PU
$3% million ofinsurance proceeds (including interest of Nuclear Corporation (GPUN).
$6 million);$114 million of cleanup reven'ies from customers; In recent years, the ability of electric utilities to obtain ade-
$53 million of U. S. Department of Energy (DOE) funding of quate and timely recovery of their investments in nuclear proj-certain tasks; contributions from investor-owned utilities of ects has become more uncertain. Similarly, the recovery of the
$21 million, the Commonwealth of Pennsylvania of $15 million carrying costs associated with investments in nuclear facilities, and the State of New Jersey of $4 million; and $13 million from their operating and maintenance expenses, and the costs of any other sources. These amounts are summarized as follows:
needed replacement power has become increasingly subject to question. In addition, the subsidiaries do not know w hether the (In Afillions) current level of revenues being collected for nuclear plant Total estimated costs
$1,000 decommission!ng expense will be adequate to cover actual future costs. (See Nuclear Plant Decommissioning Costs in Expenditures to date:
Deferred
$526 Note 2.) It is management's intent to seek to recover such costs in rate and'orjudicial proceedings, although there can be no Capital additions to plant 39 assurance of the extent to w hich these costs will be recoverable Charged to maintenance expense 47 612 through rates.
Remaining estimated costs
$_388 TAff-2:
These remaining estimated costs are expected to be funded The TMI-2 accident resulted in significant damage to the as follows:
TM1-2 system and components, contamination of major por-tions of the plant and a release of radioactivity to the environ-(In Afillions) ment w hich published reports of governmental agencies indicated did not coastitute a significant public health or safety Customers
$ 135 hazard.
Federalgovernment (DOE) 42 Accident Cleanup: The Corporation projects that the cleanup Investor-owned utilities 129 ofTMI-2 will be completed in 1988 at a cost of approximately Commonwealth of Pennsylvania 15
$1 billion (including escalation). This estimate provides for the State of New Jersey 7
removal of nuclear fuel and other radioactive substances suffi-Other 8
cient to permit safe, monitored storage of the remaining con-Total 336 taminants. He cleanup estimate is subject to major uncertain-Advances to be provided by GPU System 52 ties, including (a) regulatory requirements, (b) the full scope of the technical challenges in decontaminating the reactor, (c) the Remaining estimated costs
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Customers are contributing to the cleanup effort as the result of the major components, and'or an evaluation of the economic of rate orders issued by the Pennsylvania Public Utility Commis-appropriateness and licensing feasibility of restoration.
sion (PaPUC) and the New Jersey Board of Public Utilities AccountingfortheInvestment n TMI 2:The subsidiaries (NJBPU) in 1985 which allow for collection of revenues at a levelof $49 million per year.
ceased the accmal of depreciation on TMI-2 effective approx,
imately w hen the related operating and capital costs were ehmi-The Federal government, through the DOE, is providing n
mm mates m 1979. The PaPUC in 1982 and the research and development funds, a portion of w hich directly NJBPU in 1984 authonzed revenues for amortization of the offsets cleanup expenses, for certain activities engaged in dur-ingthecourseof thecleanup. Anamountof$12.5 millionis Sh.idiaries' investments m TMI-2 consisting of the depreciated ongin I cost of the facility and nuclear fuel in the reactor at the authorized by DOE for the government's fiscal 1986 year. The tm of the accident and certain capital additions made subse-level of DOE funding for fiscal 1987 and thereafter is subject to quent thereto. Met-Ed and Penelee are presently collecting future authorization. In addition, a consortium of Japanese revenues f appr ximately $38 million annually which willbe power companies is funding $18 million over six years of suff cient to recover their remaining investments over the next research and development cleanup expense at TMI-2 through eight years. The NJ B PU has authorized JCP& L to recover its the DOE investment over an 18-year period beginning in 1989. The
'Ihe Edison Electric Institute (EEI), a national trade associa-P PUC and NJ BPU have not provided revenues for a return on tion of investor-ow ned electric utilities, recommended in Janu-the unamortized investments in Th11-2.
ary 1983 that its members make voluntary contributions to cleanup funding. At present, approximately 40 utilities, includ.
Investigations: Investigations and inquiries concerning the ing the Corporation's subsidiaries, have pledged about $76 mil-nature, causes and consequences of the TN11-2 accident have lion or $12.6 million per year for six years under the program.
generally been completed but continue to provide a potential for Pennsylvania and New Jersey electric utilities, including further uncertainties. In 1980 and 1983, the Nuclear Regulatory JCP&L, hiet-Ed and Penelec, have agreed to provide a portion Commission (NRC) imposed and the GPU System has paid civil of normal research and development funding each year to sup-penalties aggregating $235,000 w ith respect to the TN11-2 acci-plement the eel voluntary program in an amount necessary to dent and its aftermath. The NRC has also stated that, depending maintain an annual funding level by the ins estor-ow ned electric upon the findings of continuing investigations, it may take utility industry of about $25 million per year for six years additionalenforcement action.
beginning in 1985; such supplemental amount, to be pros ided On November 7,1983, a Federal grandjury returned an 1I by the Pennsylvania and New Jersey electric utilities, is about count indictment charging Met-Ed with criminal misconduct in
$8 million for 1986.
connection w ith the performance ofleak rate testing at Th11-2 The Commonwealth of Pennsylvania and the State of New beginning sometime before October 18,1978 and continuing Jersey have been providing $5 million and $1.8 million, respec.
through h1 arch 28,1979. On February 29,1984, hiet-Ed tively, per year for cleanup expenditures and similar funding is pleaded guilty to one count charging that over a six-month anticipated in subsequent years.
period it operated TN11-2 with an inaccurate and unreliable leak Under a settlement agreement, the supplier of the Th11-2 rate testing procedure, and no contest to six other regulatory nuclear steam supply system is to provide rebates to the subsidi.
counts. The remaining four counts were dismissed. Met-Ed paid aries on future purchases of services and equipment over a fines totaling $45,000 and provided $1 million to establish a period of ten to fifteen years. The subsidiaries are applying these fund for emergency planning to directly benefit the area around rebates to offset cleanup costs.
TMI. In 1985, the NRC instituted a new proceeding to consider The GPU System anticipates providing advances to be used and determine the involvement ofindividuals possibly involved for cleanup expenditures in anticipation of future reimburse-in the alleged falsification ofleak rate testing at TMI-2.
ment. Management believes that any costs incurred by the Excluded from consideration in this proceeding are those indi-subsidisies for w hich they do not receive financial assistance or viduals (officers and directors of GPUN and all the directors of reimbursement from the utility industry, the Federal govern-Met-Ed) who were identified by the United States Attorney as ment, suppliers or others, should be recoverable through the not involved in those matters or those already reviewed and ratemaking process, but recognizes that this is not assured. It is found not to be implicated by the NRC's Office ofInvestigation management's intent to seek recovery of such costs in rate and!
(01). On December 18,1985, the NRC ordered public hearings orjudicial proceedings.
on this matter but has not yet set a hearing date. In September RepairandRestorationofTMI-2: A finaldecisionconcerning 1985, an investigation commissioned by GPUN in 1984 con-f rmed that (a) the test method was inaccurate, (b) certain the future of TMI-2 depends upon an assessment of the usability company personnel did not meet the requirements with respect 7
to the testing. (c) test results were viewed as unreliable and The Corporation and its subsidiaries are unable to determine unnecessary for safe operation by certain company personnel, the final outcome or consequences of these and other (d) actual leakage infrequently exceeded the operating license investigations.
limit and (e) upper management was not aware or involved in Litigation and Claims: As a result of the accident and its these practices. A panel of senior GPU System officers was aftermath, claims have been asserted against the Corporation, established to assess the behavior and performance of indi-its subsidiaries and certain of their officers and directors. The viduals w ho are presently employed by the GPU System and claims include (a) individual claims as w ell as purported and were involved in the TN11-2 leak rate testing. The panel has actual class actions for alleged personal and property damages determined those cases w here disciplinary action is appropriate
( neluding claims for punitive damages) resulting from the concerning such individuals, and such action has been taken.
accident and (b) suits to enjoin the future operation of Th11-2.
On September 13,1983, the O! issued a report concluding Questions have not yet been resolved as to w hether certain of that certain allegations, concerning violations of NRC regula-these claims, that are material in amount and arise out of both l
tions occurring as a result of the Th11-2 cleanup, were true. The the accident itself and the cleanup and decontamination efforts, 01 report recommended a detailed review of the cleanup proj-are (a) subject to limitation ofliability set by the Price-Anderson ect. An NRC Performance Appraisal Team has reviewed Th11-2 Act and (b) outside the insurance coverage provided pursuant to management and given a favorable report. The NRC also asked the Price-Anderson Act.
its staff for a plan to assure compliance with required safety rules In 1985, the Corporation's insurance carriers entered into and indicated that enforcement action may be taken against settlement agreements with the individual plaintiffs in 276 per-GPUN. A February 1984 report of the Office ofInspection and sonal injury claims (including related claims for punitive dam-Enforcement found procedural violations in the repair of the ages) commenced as a result of the Th11-2 accident. The polar crane to be of minor safety significance but reflective of settlement agreements provided for payment by the insurance management failures w hich were "more the result of confusion companies of an aggregate of $14.3 million in settlement of all than deliberateness." On October 29,1944, the staff reversed claims brought by these plaintiffs. Additional complaints have its earlier position that there was noevidence of deliberate cir-been filed against the Corporation and its subsidiaries on behalf cumvention of procedural requirements and stated that such of over 1,900 plaintiffs who either reside in the vicinity of Th11-2 circumvention was at least to some degree deliberate. The staff or were involved in the TMI-2 cleanup, claiming personal and 01 are currently determining w hether further enforcement injuries (including claims for punitive damages) as a result of the action is now warranted.
Th11-2 accident and its aftermath. The insurance carriers have GPUN received a notice of violation and proposed imposition assumed the defense of these actions, substantially all of w hich of civil penalty dated August 12,1985 from the NRC's Office of are pending in Pennsylvania state courts.
Inspection and Enforcement noting that the NRC staff con-On February 12,1985, the U.S. District Court for the Middle cluded that several violations of NRC regulations had occurred.
District of Pennsylvania held that punitive damages are avail-The notice of violation proposed a civil penalty of $M,000 able in actions under the Price-Anderson Act. The decision was against GPUN for alleged acts of discrimination by one of appealed to the U.S. Court of Appeals for the Third Circuit, GPUN's subcontractors against an employee for raising safety w hich on February 19,1986 reversed the District Court decision concerns associated with the TMI-2 polar crane refurbishment and held that the Federal courts have nojurisdiction in this in early 1983. The notice of violation states that the alleged matter.
discriminatory acts against the employee are violations of NRC A group of customers of the operating subsidiaries brought a regulations, w hether committed directly or through contractor class action suit against those companies and others in the U.S.
l personnel. On October 21,1985, GPUN denied the allegations, District Court claiming damages in the form of higher electric I
and the matter is currently under NRC review.
rates resulting from the TMI-2 accident. The Court of Appeals On August 13,1984, a group ofindividuals and organizations affirmed the District Court decision dismissing the action on collectively filed a petition with the NRC seeking the revocation jurisdictional grounds. The case is now pending in the Pennsyl-of G PUN's licenses to operate TMI-1, TMI-2 and Oyster Creek. vania Court of Common Pleas.
This petition was denied by the NRC's Director of Nuclear A group of 21 tourist-related businesses have filed suit seek-l Reactor Regulation. On April 5,1985, the NRC issued an order ing to recover loss of business and profits allegedly caused by upholding the Director's decision and on May 9,1985, the NRC the TMI-2 accident. The defendants have files a motion for reconsidered and affirmed that order. The NRC's order has been summaryjudgement denying such claims and the matter is appealed by the petitioning group to the U.S. Court of Appeals pending in the Pennsylvania Court of Common Pleas.
for the Third Circuit.
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1xvelized Energy Adjustme,t Clause of $59.5 million, reflect-Th11-1, w hich is adjacent to Th11-2, was out of service for a ing the anticipated reduction in energy costs related to the return scheduled refueling at the time of the Th11-2 accident. hianage, to service of Th11-1, resulting in a net reduction in customer ment decided to keep Thil-l shut down pending evaluation of charges of $14.9 million, annually. In the order, the NJBPU the Th11-2 accident. De NRC subsequently ordered that Th11-1 directed that a proceeding begin immediately "to investigate the remain shut down until it authorized resumption of operation.
operation of the Thil-l facility and to investigate the setting of performance standards for the Company's nuclear stations" Restart: After extensive hearings before an NRC Atomic (Th11-1 and Oyster Creek). On November 12,1985, the New Safety and Licensing Board and an Atomic Safety and Licensing Jersey Public Advocate appealed this order to the Appellate Appeals Board, on hiay 29,1985 the NRC authorized Thil-l t Division of the New Jersey Superior Court, and the appeal is restart. Such orders were affirmed by the U.S. Court of Appeals pending.
for the Third Circuit and, atter the United States Supreme Court O N E8 CREEK denied requests to continue a previously granted stay of the order's efrectiveness, TN11-1 was returned to operation on Octo-The Oyster Creek nuclear generating station was taken out of ber 3,1985. On December 18,1985, one of the parties to the service for scheduled repairs, maintenance and refueling in proceeding requested Supreme Court review of the merits of the February 1983 and returned to service in November 1984.
NRC's order.
Certain outage related costs totaling $76 million were deferred, Although Th11 1 has reached 100% ofits rated capacity since of which there was an unamortized balance at December 31, restart, GPUN believes that a buildup of deposits on the second-1985 of $67 million. JCP&L is collecting revenues to recover i
ary, non-nuclear side of the Th11-1 steam generators may prevent the deferral (without a return on the unamortized balance) over a the unit from operating at 100% ofits rated power capacity in the period of about 18 years. The NJ BPU issued an order on Decem.
future without remedial action. Similar buildups have occurred ber 11,1984 initiating a comprehensive review of all costs at other plants using the same ty pe of steam generator. GPUN incurred by JCP&L for the capital additions, operating and has not yet determined the extent of needed corrective action, maintenance expenses and replacement power costs associated the length of time such action would require, or its cost.
with the outage. The NJ BPU has indicated that, to the extent any The Corporation anticipates that TA11-1 will be taken out of such costs are determined to have been unreasonably incurred, service in the spring of 1986 to inspect the steam generators, and they may not be recoverable through rates. In a separate order in to take such corrective action, if any, which might be necessary.
which Th11-1 was returned to customer rates, the NJ BPU stated The inspection is expected to take approximately six weeks. The its intention to investigate the setting of performance standards Corporation is unable to predict w hether any corrective action for JCP&L's nuclear stations. (See Rate Proceedings under will be indicated, and if so, its cost and the length of time that Th11-1.)
such action would require.
Oyster Creek is now scheduled to be taken out of service in A ccountingfor the Investment in TMI-1: The subsidiaries the spring of 1986 for maintenance and refueling. JCP&L ceased the accrual of depreciation on Th11-1 effective appro -
expects that the outage will last approximately six to nine imately w hen the related operating and capital costs were elimi-m nths and that its capital, operating and maintenance costs nated from base rates in 1980. The NJB PU issued a rate order will be substantial.
returning the operating and capital costs of Th11-1 to the base Fonxro Riven:
rates of JCP&L effective November 12,1985 and the PaPUC in 1980, as a result of regulatory, cost and other uncertainties issued similar orders with respect to hiet-Ed and Penelec effec-following the Th11-2 accident, JCP&L abandoned construction tive November 8,1985. The subsidiaries resumed the accrual of of the Forked River nuclear project. Subsequent to this decision, depreciation concurrent with the unit's return to base rates. The the investment in the project was reclassified to deferred debits New Jersey Public Advocate has appealed the order with respect (unamortized property losses). In a 1981 order, the NJBPU toJCP&L(see" Rate Proceedings"). At December 31,1985,the permitted JCP&L to recover the major portion ofits investment subsidiaries' total investment in Th11-1, net of depreciation, was over 15 years. The order excluded the recovery of $26.9 million
$473 million, excluding nuclearfuel,netof amortization,of of allowance for funds used during construction ( AFUDC)
$28 million. The subsidiaries are presently collecting revenues which was written offin 1981 as an extraordinary charge to net of approximately $16 million annually to recover the c'eprecia-income. The AFUDC written off was accrued during the period tion of: heir investments for about the next 24 years.
following the suspension of construction activities to the date Rate Proceedings: The NJB PU order authorizing JCP&L to JCP&L ceased the accrual of AFUDC on the project. In 1984, return the operating and capital costs of Th11-1 to base rates in pursuant to an NJB PU order, the recovery period for the Forked the amount of $44.6 million also provided fc r a decrease in its River investment was extended from 15 to 25 years. No revenues
are being provided for a return on the unamortized balance,
$16.4 million annually, in the event that losses as a result of an w hich at December 31,1985 amounted to $266 million, less accident at a nuclear plant of any member company exceed the deferred taxes of $1G4 million, netting to $162 million.
accumulated funds available to NEIL.
The Price-Anderson Amendments to the Atomic Energy Act INSURANCE presently limit liability to third parties to $650 million for each The Corporation and its subsidiaries have obtained all the nuclear incident. Coverage of the first $160 million of such insurance available to insure their nuclear plants for (1) property liability is provided by private insurance. The remaining damage and decontamination. (2) liability to employees ar.d
$490 million is provided by assessments of t.p to $5 million per third parties, and (3) incremental replacement power costs, as nuclear reactor per incident, but not more than $10 million per described below. The Corporation and its subsidiaries have also reactor in any calendar year. Based on the ow nership of three obtained insurance for their other operations and facilities nuclear reactors, the subsidiaries
- maximum potential assess-including coverage for property damage, liability to employees ment under these provisions would be $15 million per incident and third parties, and loss of use and occupancy (primarily but not more than $30 million per calendar year for claims incremental replacement power costs). However, some potential covered by this insurance. The current Price-Anderson legisla-losses or liabilities, including liabilities relating to the release or tion expires in 1987. Bills to amend the Price-Andersoa Act, escape of hazardous substances into the environment to which including proposals to substantially modify or eliminate the the Corporation and its subsidiaries may be subject, may not be limitation on liability provisions, have been introduced in insurable or the amount of insurance carried may not be suffi.
Congress.
cient to meet potential losses and liabilities. There is also no The $160 million of coverage provided by private insurance assurance that the Corporation and its subsidiaries will be able for liability to third parties, referred to above, was in force only to maintain insurance coverages at their present levels. Under in the amount of $140 million at the time of the Th11-2 accident.
those circumstances, such losses or liabilities could have a in view of the total of the claim payments made to date (approx-material ads erse effect on the financial condition of the Corpora. imately $47 million), the number and nature of additional tion and its subsidiaries.
claims that have been filed and potential future claims, there is a The primary property damage and decontamination insur.
possibility that the $140 million of coverage may be exhausted.
ance for the TN11 site, in the amount of $500 million, provides If payments on account of such claims exceed the $140 million full normal coverage for TN11-1 but, with regard to Th11-2, only of coverage, it would be necessary to require retrospective for possible damage w hich might result from a non-nuclear premium payments by those utilities (including the subsidiaries accident at that unit and for cross-contamination from an ace _
with respect to three reactors) w ho were licensees at the time of dent at Th11-1.
the Th11-2 accident.
JCP&L is a member of Nuclear h1utual Limited (Nh1L), a As members of NEIL, the subsidiaries have insurance cover-mutual insurance company all of w hose members and pol-age for incremental replacement power costs resulting from an icyholders are electric utilities. Such membership provides accidental outage at their Oyster Creek and Th11-1 nuclear JCP&L with $500 million of primary property damage and generating stations. Such coverage under NEIL provides for a decontamination insurance for its Oyster Creek station. As a weekly indemnity of $2.8 million ana $3.0 mi' lion for Oyster member of Nh1L, JCP&L is subject to annual assessments of up Creek and Th11-1, respectively, for the incremental cost of l
rep acement power, beginning 26 weeks after an outage caused to ten times its annual premium, or approximately $18.8 mil.
lion, in the event that losses as a result of an accident at a nuclear by an accident. The policies limit covered outages to 52 weeks at plant of any membercompany exceed the accumulated funds 100% of the weekly indemnity and 52 additional weeks at 50%
available to Nh1L.
f the weeklyindemnity. As members of NEIL, the subsidiaries The subsidiaries have additional nuclear property damage are subject to a retrospective premium of up to five times their insuranceof$635 million forlossesinexcessof5500 million.
annual premium, orapproximately $13.9 million annually, in This excess insurance is provided by Nuclear Electric Insurance the event that losses exceed the accumulated funds available to NEIL.
Limited (NEIL), a mutual insurance company all of whose members and policyholders are electric utilities, and American The Corporation and its subsidiaries are also subject to retro-NuclearInsurers/hfutual Atomic Energy Liability Underwrit.
5Pective premium assessments for directors' and officers' lia.
ers. The insurance provides that expenses for decontamination bility and general liability insurance policies which could total and debris removal shall be paid before any payments for claims aPProximately $5.5 million annually. In the aggregate, the GPU relating to property damage. Under the NEIL portion of this System is subject to vanous retrospective premium assessments coverage, the subsidiaries are subject to annual assessments of which could total approximately $84.6 million annually.
up to 7.5 times their annual premium, or approximately
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NUCLEAR FUEL LIT 1GKilON disputes, claims, and, in some cases, as defendants ir. iiogation with contractors, vendors, and other suppliers ofequipment and In 1971, JCP&L entered into a contract to purchase nuclear fuel reloads for the Oyster Creek station, with an option for
,t;bsidiaries have entered into long-term contracts with additional reloads. JCP&L believes that it exercised that option g;
- g gg7 to extend the contract to cover additional reloads begmmng m 1976. The supplier disputed this position and, in November which expire between 2001 and the end of 1978, submitted bills for material and services in the aggregate d wrvice lives of the generating station concerr.ed.
amount of approximately $33 million, covering reloads sup-require the purchase of either fixed or minimum amounts of the plied in 1977,1978 and 1979. Of this amount, JCP& L has paid coal requirements. The price of the coal is determined the supplier $3.8 million.
by formulas providing for the recovery by the mining companies in 1979, the supplier filed suits in the U.S. District Court for of their costs of production. Under one of these contracts, the the Distnet of Washmgton agamst JCP&L, the Corporation and price of coal is based on escalation of indexed cost components.
GPU Service Corporation (GPUSC). In 1982, the Court upheld i
' share of the cost of coal purchased under these JCP&L's position, and in 1985 the Court essentially upheld agreements is expected to aggregate $109 million for 1986.
JCP&L's damage claims with respect to one reload batch, The subsidiaries have entered into agreements with other util-awarding JCP&L damages of $12.4 million, net of the sup-f f
tely 2,045 megawatts (MW) plier's countercla_ ms, with respect to that one batch. Further i
of capacity and energy for various periods through 1999. Pay-proceedmgs w ill be conducted to determine JCP&L's damages ments pursuant to these agreements are estimated to aggregate with respect to the remaining reload batch.
$394 million for 1986. The price of the energy purchased under JCP&L does not know w hether the supph.er will appeal any or the agreements is determined by contracts, which have been all of the decisions of the District Court, but believes that any accepted by the Federal Energy Regulatory Commission, additional amount that :t might be required to pay as a result of i
d@pg @Mb oWima an appeal would be valid costs and should be recognized for Other possible long-term purchases are the subject of pending ratemaking purposes. However, there can be no assurance that neg tianons.
this will be the case. If the supplier were to appeal successfully "N"*.
and the suits were ultimately resolved in the supplier's favor, taxes of $10 million for the years 1980 through 1984 under the JCP&Lwouldincur$23 millionin additionalfuelexpense Public Utility Realty Tax Act based upon JCP&L's ownership based on the amount of fuel consumed through December 31, interest in the TMI station. JCP&L has not recorded a liability 1985.
"' #N#
In 1985, pursuant to a Court approved settlement agreement, JCP&L completed the removal of 224 spent nuclear fuel assem-On December 7,1984, the PaPUC proposed a form of man-blies which had been stored at the West Valley, New York dat ry Energy Cost Rate (ECR) which contemplates use of Nuclear Fuel Receiving Facility (Facility) since 1975. In 1983, the U.S. District Court for the Western District of New York purported incentives to encourage the efficient operation of ruled that JCP&L is liable to the New York State Energy electric gener ting units. The Corporation is unable to predict Research and Development Authority, the present owner of the the impact of the proposed ECR, if eventually adopted, upon its Pennsylvama subsidianes' ability to fully recover their future Facility, for storage charges above those JCP&L originally contracted to pay the previous owner. A trial to determine the
- "*'EY # * *
- amount of these additional charges has been completed and a JCP&L filed a petition with the NJBPU on July 12,1985 decision is pending. JCP&L believes that any additional storage requesting a $67.3 million annual retail base rate increase and costs it might be required to pay would be recognized for rate _
the petition is still pending. On January 28,1986, JCP&L filed a making purposes although there is no assurance that this will be Petition with the NJBPU requesting a decrease of approximately the case.
$130.8 million annually in its levelized energy adjustment clause charges (LEAC). The NJBPU has approved a decrease in OrnEn CouurTMENTS AND CONTINGENCIES JCP&L's LEAC of $110 million annually, effective March I, 1986, and has indicated that it would continue to review the The subsidianes' construction programs, w hich extend over balance of JCP&L's LEAC request.
several years, contemplate expenditures of approximately On February 3,1986, Met-Ed and Penelec filed preliminary
$503 million during 1986. In connection with these constme-ECR's with the PaPUC reflecting proposed annual decreases of tion programs, the subsidiaries have mcurred substantial com'
$17.9 million and $40.4 million, respectively.
mitments. In the normal course of the operation of their Claims for civil penalties have been asserted against JCP&L businesses, the subsidiaries are from time to time involved in and Penelec under section 505(a) of the Federal Clean Water Act 32-
~
alleging violations of the effluent discharge permits for certain revisions would have the effect oflimiting or restricting the of the Companies' generating stations. The subsidiaries are also deferral of certain historical costs m anticipation of recovery in defendants in actions, including purported class actions, seek-future rates and would require the discounting of deferred aban-ing compensatory and punitive damages for alleged unlawful donment losses which are being recovered in rates but without employment practices. There can be no assurance as to the any return thereon. These revisions, if enacted in their proposed outcome of these proceedings.
form, could have a material adverse effect on the subsidiaries' As a result of existing and proposed legislation and regula-retained earnings and capital structures. Public hearings are tions dealing with environmental matters including, among scheduled to be held by the FASB in June 1986. At this time, the other things, legislation regarding acid rain, air quality regula-Corporation and its subsidiaries are unable to assess the out-tions relating to stack height requirements and storage and come of such hearings and the resulting financial statement disposal of solid and hazardous wastes, the subsidiaries may be impact.
required to incur substantial additional costs to modify or DEFERRED ENERGY COSTS replace existing and proposed equipment and to improve or clean up environmental sites currently or formerly used by Energy costs are recognized in the period in w hich the related them, including previously owned coal gasif: cation sites. The energy clause revenues are billed.
subsidiaries are unable to estimate the extent of such possible costs (w hich may be material and may not be covered by RESERVE CAPACITY CREDIT insurance) or the impact thereof on future operations.
Since April 1981, the Pennsylvania subsidiaries have recog-
- 2.
SUMMARY
OF SIGNIFICANT ACCOUNTING POUCIES nized a charge to current expense equivalent to the revenues provided by the PaPUC for possible future reserve capacity
-mmmm
-menm..
m payments to other members of the Pennsylvania-New Jelsey-GENERAL Maryland Interconnection. Pursuant to rate orders received in The consolidated financial statements include the accounts of October 1985, the annual provision for such payments was all subsidiaries.
eliminated and the accumulated reserve is being returned to customers over approximately three to four years.
UTlWTY PLANT DEPRECIATION It is the general policy of the subsidiaries to record additions to utility plant at cost, w hich includes material, labor, overhead The subsidiaries provide for depreciation at annual rates and AFUDC. The cost of current repairs and minor replace-determmed and revised periodically, on the basis of studies, to ments is charged to appropriate operating and maintenance be sufficient to depreciate the original cost of depreciable prop-expense and clearing accounts and the cost of renewals is erty over estimated remaining service lives, w hich are generally capitalized. The original cost of utility plant retired, or other-I nger than those employed for tax purposes. The subsidiaries wise disposed of, is charged to accumulated depreciation.
use depreciation rates which, on an aggregate composite basis, resulted in an approximate annual rate of 3.33%,3.28% and OPERATING REVENUES 3.27% for the years 1985,1984 and 1983, respectively.
Revenues are generally recorded on the basis of billings AMORTIZATION POuCIES rendered.
PROPERTY EDSSES; ACCOUNTING UNDER FINANCIAL ACCOUNTING Property losses are amortized and recovered through rates as j
STANDARDS BOARD STATEMENT NO. 71 prescribed by the NJ BPU and the PaPUC. The total amount of f
The subsidiaries follow the accounting standards set forth in unamortized property losses at December 31,1985 was Statement of Financial Accounting Standards No.71 (FAS 71).
$289 million, before taxes, of w hich $266 million related to the FAS 71 provides that an enterprise shall capitalize all or part of abandoned Forked River project. (See Forked River under Note an incurred cost that would otherwise be charged to expense if 1.) No revenues are being provided for a return on the unamor-(a) it is probable that future revenue in an amount equal to the tized balances.
capitalized cost will be recovered through rates and (b) future TMI-2 hvcsruEAT-.
I revenue will be provided to recover previously incurred costs See Accounting for the Investment in TMI-2 under Note 1.
rather than to provide for expected levels of similar future costs.
The Financial Accounting Standards Board (FASB) has pro-posed certain revisions to FAS 71. Certain of the proposed m
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Recoveny or Fontro Rivra 4xo TAfl-2 /xvrsnrEvrs:
decommissioning of their shares of the radioactive components As a result of the length of the amortization periods, the of Th11-1 and TMI-2 at the end of their useful lives. The current denial of revenues for a return on the unamortized investments estimate for ratemaking determinations is $19 million and in Forked River and Th11-2 projects and the need to utilize the 59 million for hiet-Ed's and Penelec's shares of Th11-1, respec-total allowed amortization revenues to meet the carrying tively. With Th11-l's return to rates in November 1985, hiet-Ed charges associated with the senior capital invested in the and Penelee have resumed charges to expense for Th11-1 decom-aforesaid projects, the subsidiaries do not expect that they will missioning. hiet-Ed and Penelee have not been charging recover a significant part of their common stock equity invest-expense for decommissioning costs associated with Th11-2 since ment in these projects.
such costs were removed f rom base rates in 1981. The estimate forTh11-2 decommissioning costs of $12 million and $6 million
- "### I'*
for hiet-Ed and Penelec, respectively, hase not been revised Nuclear fuel is amortized on a unit of production basis. Rates since that time.
are determined and periodically revised to amortize the cost in 1985, the NRC published a proposed rulemaking setting over the usefullife.
forth an amount of $100 million per plant, in 1984 dollars, ALLOWANCE FOR FUNDS w hich would be required to be used to fund decommissioning j
costs in the absence of a site specihc study. As noted above, the USto DeRtNG CONSTRUCTION ( AFUDC) subsidiaries are collecting less than this amount. JCP& L, in its The Uniform System of Accounts provides for AFUDC present retail rate case, has requested that its collection of which is defmed as the net cost, during the period of construc_
revenues for decommissioning expense for Oyster Creek be tion, of borrowed funds used for construction purposes and a based on a total cost of $108 million.
reasonable rate on other funds u hen so used. While AFUDC The subsidiaries collectively own all of the common stock of results in a current increase in utility plant to be recognized for the Saxtan Nuclear Experimental Corporation (Saxton), a cor-ratemaking purposes and represents current earnings, it is not an poration organized to demonstrate the commercial feasibility of item of current mh income until the related plant is depreciated nuclear power. The subsidiaries, in accordance with rate deter-or amortized.
minations, are charging to expense and funding a trust, intended To the extent permitted in the ratemaking proceedings of the to provide for the cost of decommissioning the Saxton facility.
subsidiaries, the income tax reductions associated with the Current estimates for ratemaking determinations are $5.6 mil-interest component of AFUDC have been allocated to reduce lion, $2.0 million and $1.5 million forJCP&L's, hiet-Ed's and interest charges and, correspondingly, have not reduced income Penelec's shares, respectively. These estimates assume dis-taxes charged to operating expenses. Pursuant to rate orders, the mantlement, however, for hiet-Ed and Penelec, they are based Pennsylvania subsidiaries employ a net of tax accrual rate for only on the radioactive components. A site specific study was AFUDC while JCP&L is essentially employing a gross rate. On recently performed w hich estimates a cost of approximately $13 an aggregate composite basis, the annual rates utilized to cap _
million to decommission the Saxton facility.
italize AFUDC were 10.67%,9.98% and 10.86% for the years The subsidiaries believe that any additional expenditures with 1985,1984 and 1983, respectively.
regard to decommissioning should be recoverable through the ratemaking process.
NUCLEAR PLANT DECOMMISSIONING COSTS WASTE DISPOSAL JCP&L, in accordance with rate determinations, is charging to expense and crediting to a reserve amounts intended to The subsidiaries are providing for estimated future handling provide, over their service lives, for the cost of decommission _
c sts for spent nuclear fuel at Oyster Creek and Th11-1 in ing nuclear plants at the end of their usefullives. Current ccordance v. ith the Nuclear Waste Policy Act of 1982. The estimates for ratemaking determinations are $15 million for subsidiaries entered into contracts in June 1983 with the DOE JCP&L's share of Th11-1 and $54 million for Oyster Creek f r the disposal of spent nuclear fuel. The total liability includ-assuming in-place entombment. With Th11-l's return to rates in ing interest at December 31,1985 and 1984, all of w hich related November 1985, JCP&L has resumed charges to expense for to spent nuclear fuel from nuclear generation through April 6, Th11-1 decommissioning. Although not recognized in rates, 1983, amounts toS91 million and $84 million,respcctively. As JCP&L is continuing to charge expense for its share of Th11-2 the actual liability under these contracts is substantially in decommissioning based on an estimate of $9 million.
excess of the amount recovered to date from ratepayers, the Alet-Ed and Penelec,in accordance with rate determinations, subsidiaries have reflected such excess, which totals $65 mil-were charging to expense and crediting to a reserve amounts li n and $62 million at December 31,1985 and 1984, respec-intended to provide, over their service lives, for the cost of tively, as deferred costs. Customer rates presently recognize s
thew levels of costs, plus interest, and provide for collection lion (which is net of $3.6 million of related income tax benefits) over eight years for hiet-Ed and Penelee and fourteen years for to reflect the effect on the Corporation of the settlement has been JCP&L.
recorded as an extraordinary charge.
The subsidiaries are collecting i mill per kilowatt-hour from The effective tax rate applicable to the class action suit their customers for spent nuclear fuel disposal costs resulting settlement is less than the statutory rate because approximately from nucleargeneration subsequent to April 6,1983. These 40% of the shares issued are being considered a distribution of amounts are remitted quarterly to the DOE.
capital and the remainder being attributed to expense for tax INCOME TAXES P" "
The Corporation and its subsidiaries file consolidated Federal
- 4. SilORT-TERM BORROWING ARRANGEMENTS income tax returns and all participants arejointly and severally liable for the full amount of any tax, including penalties and On April 1,1985, the Corporation and its subsidiaries entered interest, w hich may be assessed against the group-into a Revolving Credit Agreement (Credit Agreement) with a Deferred income taxes, w hich result primarily from liber-consortium of banks. The Credit Agreement, w hich expires on alized depreciation methods, deferral of energy costs and aban-h1 arch 31,1987, provides for an aggregate borrowing limit of donment losses, are provided fordifferences between book and
$150 million, with individual borrowing sublimits of $10 mil-taxable income to the extent permitted for ratemaking purposes.
lion applicable to the Corporation and $50 million applicable to Investment tax credits (ITC) are being amortized over the esti-hiet-Ed. The notes issued under the Credit Agreement bear mated service lives of the related facilities.
nterest at rates based upon Citibank's Alternate Base Rate The cumulative net amount ofincome tax timing differences, (ranging from prime to % of 1% above prime) or the Domestic primarily due to depreciation, for w hich deferred income taxes have not been provided approximates $688 million at December N1oney h1arket Bid Rate for certificates of deposit (increased by amounts ranging from t h% to 1 %%). hiet-Ed has pledged as 31,1985. It is expected that future revenues w iM be pros ided for such taxes as they become payable.
collateral for its indebtedness (a) $40 million of first mortgage bonds and (b)its customer accounts receivable ($36 million at
- 3. EXTRAORDINARY ITEMS December 31,1985).
Notes issued under the Credit Agreement are subject to vari-ous covenants and acceleration under certain conditions, includ-As a direct or indirect consequence of the nuclear accident at ing the occurrence of a material adverse change in the financial Th11-2, consolidated net income for 1984 and 1983 reflects the condition of the borrower or failure to satisfy earnings coverage following extraordinary items, net of related income tax effects.
or common equity ratio requirements. The Credit Agreement 1984 and the purchase agreements forcertain bonds sold by JCP&L
($96 million), Penelec($50 million)and Niet-Ed($10 million)
The NJBPU issued an order in 1984 permitting JCP&L to also contain provisions for the immediate payment of the indebt-recover its investment in Th11-2 and as a result, JCP&L ceased edness involved upon the occurrence of an event deemed by the accrual of depreciation on Th1I-2 retroactively to April specified majorities of the lenders or holders of an issue to have a 1979. The adjustment to reflect the reversal of the previously material adv:rse effect on the borrower or certain other accrued depreciation of $19.8 million (which is net of conditions.
$13.3 million of related income tax charges) for Th11 2 for the The Corporation and its subsidiaries have additional informal period April 1979 to November 1984 has been accounted for as bank lines of credit, under which aggregate borrowings out-an extraordinary credit.
standing at any one time for the Corporation and hiet Ed are The effecti<e tax rate for 1984 applicable to the reversal of restricted by the Credit Agreement. Borrowings under these h
depreciation on Th11-2 is less than the statutory rate due to the lines of credit generally bear interest based on the prime rate and effects of reversing the portion of depreciation related to cap.
Provide for various compensation requirements.
italized AFUDC and the previous amortization ofinvestment tax credits.
1983 A settlement was reached in class action suits for alleged damages as a result of the accident at Th11-2 to purchasers of GPUcommonstock. Anadjustmentin theamountof$16 mil-m 4
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- 5. LoNo-TERM DEBT
- 6. CAPITALSTOCK ANDSURPLUS
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At December 31,1985, the Corporation's subsidiaries !.ad COMMON STOCK long-term debt outstanding, as follows:
Of the 75 million authon. zed shares of $2.50 par value com-(In Thousands)
Internt Rates mon stock of the Corporation at December 31,1985 and 1984,
-~
62,864,000 were considered issued and outstand:ng and 28,000 3%% to 7% to 9% to shares were recorded as reacquired at par value.
Maturities 6%%
8%%
12 %
Total PREFERRED STOCK First Mortgage Bonds:
At December 31,1985 and 1984, the subsidiaries had the 1986-1991
$152,786 $ -
$ 15,000 $ 167,786 following issues of cumulative preferred stock outstanding:
1992-2001 268,952 236,849 203,161 708.962 2002-2015 25,120 322, % 2 399,698 747,780 Shares Stated Value Total
$446,858 $559,811 $617,859 1,624,528
- Outstanding ~ ~ ~ -
(In Thousands)
~
^ ~ ~
^ - - -
- - - - - - - ~
Series (a) 1985 1984 1985 1984
" - * * " ~ ~ ~ ~ ~ ~ ~
within one year (33,290) Subject toMandatory Redemption (b):
Total 1,591,238 10.88 %-13.5 % 636,500 677,500 $ 63,650 $ 67,750 Debentures:
Due within 1986-1991
$ 41,140 $ -
41,140 one year (53,500) (4l,000)
(5,350)__(4,l00) 1992-1998 22,100 118,020 18,000 158,120 Total 583,000 636,500 $ 58,300 $ 63,650 Total
$ 63,240 $118,020 $ 18,000 199,260
~
No Mandatory
~~-~~--
Amounts due Redemption:
within one year (9,480) 3.7044.70%
723,912 723,912 5 72,39I 5 72,39i 7.6848.36% 2,410,000 2,410,000 241,000 241,000 Total 189,780 Other long-term
--3,650,000 3,650,000- - - - - - - - - - - - - - -110,000 8.7549.36%
I10,000 debt 53,184 Total Othercurrent
.6,783,912 6,783,912 423,391 423,391 obligations (14,701)
Premiym _ _ _ _ _ _ _ - _ _ _. __ _, _ _ _ l.348__
1,348 Unamortized net Total
$424,739 $424,739 discount
_ 3,190)
~ ' ~ - - -
- ~ ~ ~ - - - - - - -
(
Total
$1,816,3 I I (a) lf dividends on the preferred stock of any subsidiary are in
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arrears in an amount equal to the annual dividend, the holders of For the years 1986,1987,1988,1989 and 1990, the subsidi-preferred stock, voting as a class, are entitled to elect a majority aries have long-term debt maturities, including cash sinking of the board of directors of that subsidiary until all dividends in fund requirements, of $57 million (including $11 million due to arrears have been paid. No redemptions of preferred stock may the DOE reflected as accounts payable on the balance sheet),
be made unless dividends on all of that subsidiary's preferred
$56 million,$63 million,$47 millionand$74 million, stock for all past quarterly dividend periods have been paid or
(
respectively.
declared and set aside forpayment.
l GPUSC and the DOE have entered into an agreement for the (b) The annual redemption requirement is 53,500 shares of repayment in monthly installments ending in 1986 of amounts preferred stock, Based on shares outstanding at December 31, owed the DOE since 1979 by the subsidiaries under certain 1985, the aggregate mandatory redemption requirement is uranium enrichment contracts. The aggregate amounts payable $5.4 million per year through 1990. All mandatory redemptions were $1I million and $20 million at December 31,1985 and are at the stated values of the shares, plus accmed dividends.
1984, respectively.
Substantially all of the subsidiaries' properties are subject to the tien of their respective mortgages.
At December 31,1985 and 1984, the subsidiaries were autho-
- 7. INCOMETAXES rized to issue 37,035,000 shares of cumulative preferred stock, me.- mm*=
no par value. No shares of cumulative preferred stock have been sold during the three years ended December 31,1985.
Inc me tax expense for the years 1983 through 1985 was different from the amount computed by applying the statutory RETAINED EARNINGS rate to book income subject to tax as follows:
Under the Credit Agreement described in Note 4, the Corpo-(In Millions) ration and its subsidiaries have agreed to maintain consolidated 1985 1984
.1983 l
retained earnings of at least $600 million and JCP&L, Met-Ed Operating income before income taxes
$387
$486
$359 and Penelee have agreed to maintain retained earnings of at least
$75 million,$1and$40 million,respectively.
Other income, net 8
_7 _ _ _ 12 In accordance with JCP&L's supplemental indenture dated Total 395 493 371 June 1,1979, common dividends payable by JCP&L are limited. Interest expense (158) _(162). (165) to the extent they are not matched by cash capital contributions from the Corporation, to an amount equal to 25% ofearnings for Book income subject to tax
_.__$237
$331
_$206 the years 1979 and 1980 and 100% of earnings thereafter. As of December 31,1985, pursuant to that provision, $181 million of Income tax at statutory rate
$109
$152
$ 95 Effect of difference between tax and retained earnings of $244 million were available for declaration and payment of dividends on JCP&L's common stock. The book depreciation for which NJBPU has requested that JCP&L notify it before declanng deferred taxes were not provided (Note 2) 13 13 9
dividends on its common stock.
Amortization ofTMI-2 11 12 13 In accordance with Met-Ed's supplemental indenture dated Amortization ofITC (15)
(9)-
(8)
March 1,1952, $3.4 million of the balance of Met-Ed's retained earnings are restricted as to the payment of dividends on its Other adjustments 5
common stock. As of December 31,1985, pursuant to this Income tax expense
. _. _ $118 __ $173
$109 provision, $24.2 million ofretained earnings of $27.6 million were available for declaration and payment of dividends on Met. Effective income tax rate _ __ _
50%
52%
53 %
Ed's common stock. In accordance with Met-Ed's supplemental indenture dated September 1,1984, additional restrictions would apply to the payment of common dividends by Met-Ed in the event its bond ratings fall below investment grade.
In accordance with Penelec's supplemental indenture dated June I,1979, the aggregate amount of any declaration or pay-ment of dividends on common stock after December 31,1978 cannot exceed Penelec's earnirigs available for common stock for the period commencing January 1,1979 and terminating at the end of the last fiscal quarter preceding the date of such restricted payment. As of December 31,1985, pursuant to that provision, $114 million of retained earnings of $151 million were available for declaration and payment of dividends on Penelec's common stock.
I i
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- ,g Income tax expense is comprised of the following
With respect to items (a) and (b) noted above, the IRS is not proposing ultimate denial of the tax benefits claimed, but is (In Millions) 1985 1984 1983 arguing that they are applicable to subsequent years. With Federalincome tax
$ 84 5 2 5 (3) respect to item (c), the IRS is proposing disallowance of the State income tax 16 16 6
deduction in its entirety. The Corporation understands that dis-allowance of similar deductions for items (a) and (c) have been Income taxes on otherincome, net 7
5 8
proposed in connection with the IRS audits of other electric income taxes attributable to the allow-utilities.
ance forborrowed funds (1)
(1)
(1)
The asserted deficiency of $120 million is net of certain tax Provisions for taxes currently payable 106 22 10 credits of approximately $69 million w hich the GPU System has applied in determining its Federal income tax liability for 1983 Deferred income taxes:
through December 31,1985, but which would be available for Liberalized depreciation 44 41 35 use in the 1977 through 1982 period if the IRS's positions are Deferral of energy costs (102) 56 51 sustained. These credits would then not be available for use m Forked River abandonment loss (7)
(9)
(II) determimng the 1983 through December 31,1985 liability N.J. revenue taxes (7)
(4)
(6) resulting in an increase in that liability of approximately $53 Reserve capacity credit (2) 4 (11) milli n, after giving effect to $23 million of tax benefits result-Nuclear fuel disposal fee (2)
(5) 30 ing fr m the amortization of the Forked River project and Deferralof O&M expense -
dditional taxes of $7 million associated with offshore insurance Oyster Creek (2) 24 9
Other 1
4 18 Premiums.
The shares of each subsidiary and that of the GPU System on Deferred income taxes, net (77) 1II I15 a consolidated basis of the proposed increase in tax liability as of December 31,1985 are as follows:
Current ITC 1(M 49 (8)
Amortization ofITC (15)
(9)
(8)
Met Pen Consoli-Income tax expense
$118_ $173(b) $1,09(a) (In Millions)
JCP&L Ed elec dated Additional taxes
$102
$6 $12
$120 (a) Does not include a $3.6 million tax benefit resulting from Carryback of credits 53 12 4
69 a litigation settlement. (See Note 3.)
Amortization of Forked (b) Does not include $13.3 million (deferred income tax River (23)
(23) expense related to liberalized depreciation - $11.6 million and Offshore insurance reversal of investment tax credit amortization - $1.7 million) premiums 5
1 1
7 related to an extraordinary item. (See Note 3.)
Interest on additional taxes, Examinations of Federal income tax returns through 1982 netof tax effects 28 (2) 5 31 have been completed (see below) and the years 1983 and 1984 Interest on carryback of are currently under audit by the Internal Revenue Service (IRS).
credits, net of tax effects (2) 1 (1)
The Corporation does not know w hether the IRS will assess an Total
$163
$18 $22
$203 additional income tax liability against the Corporation as a result of the audits of1983 and 1984.
He Corporation has received from the IRS a claim, dated The Corporation and its subsidiaries filed a protest with the July 1,1985, for additional Federal income taxes for the years IRS on September 23,1985 contesting the proposed assessment 1977 through 1982 in the amount of approximately $120 mil! ion and intend to continue this effort in the courts, if necessary.
for the GPU System as a result of an audit for the years 1979 There can be no assurance as to the outcome of the proceeding through 1982. The asserted tax deficiency results principally which may take several years before final determination. In the from the proposed denial of deductions of approximately (a) event that all of the issues are ultimately determined unfavora-
$279 million in connection with the abandonment in 1980 of bly, the Corporation expects that the GPU System would owe JCP&L's Forked River nuclear generating project;(b) $56 mil.
additional taxes of approximately $173 million plus net interest lion of certain expenses incurred by the subsidiaries in the which as of December 31,1985 amounted to approximately $30 aftermath of the accident at TMI-2; and (c) $16 million in million, net of tax effects, for a total of $203 million. Assuming premiums paid by the subsidiaries to certain offshore electric the continuation of the currently applicable annual interest rate utility mutual insurance companies.
of 10% effective January 1,1986, interest, net of tax effects, foc the year 1986 would be approximately $13 million.
t
l l
1 If the IRS's positions are sustained, the Corporation's consol-
- 9. PENSION PLANS AND POSTRETIREN1ENT BENEFITS idated net income would be reduced by the amount ofinterest a sr - m,
- - x ve w--rrm.w w due until the date of payment, net of taxes,($30 million at December 31,1985) and by the disallowed tax benefits associ-The subsidiaries have several pension plans applicable to all ated with item (c) above ($14 million at December 31,1985), for employees, the accrued costs of which are being funded. Prior a total reduction of net income of approximately $44 million.
service costs applicable to all plans are being amortized and There would be no effect on net income resulting from the funded over 25-year periods. Total pension cost for the years disallowance of the deductions described in Items (a) and (b) 1985,1984 and 1983 amounted to approximately $35.7 million, above, because deferred taxes have been or would be provided
$34.5 million and $34.1 million, respectively.
for these items.
Based on the latest available actuarial reports, the subsidi-aries' plans had accumulated benefits (assuming an 8% rate of
- 8. SUPPLEN1ENTARY INCON1E return)and net assets as follows:
STATEA1ENT INFORNIATION January l,
., m su
.m.m (In Afillions) 1985 1984 Maintenance and other taxes charged to operating expenses consisted of the following:
Actuarial present value of accumulated benefits:
Vested
$364
$340 (InAfillions) 1985 1984 1983 Nonvested 42 47 Maintenance *
$23_0 _$243. _$207 Total
$406
$387 m
Other taxes:
Net assets available for benefits
$516 $480 State and local gross receipts
$156 $149 $135 Gross revenue and franchise 44 40 38 In December 1985, the FASB issued FAS No. 87 on employ-State surtax 19 17 16 ers' accounting for pensions, w hich is effective in 1987. The Realestate and personal property 18 20 14 statement's provisions would not require the Corporation and its Other 28 21 19 subsidiaries to record a liability because plan assets exceed the
$265- - $247 $222 actuarial present value of accumulated benefits.
Total
. ~ - '
In addition to providing pension benefits, the Corporation and CExcludes reversal of Oyster Creek outage-related expenses in its subsidiaries provide certain health care and life insurance 1984 and 1983 in the amounts of $49 million and $15 million, benefits for retired employees. Substantia!!y all of the Corpora-respectively.
tion's employees become eligible for thow benefits if they reach retirement age w hile working for the Corporation. The cost of retiree health care and life insurance benefits is recognized as expense as premiums are paid. For 1985 and 1984, those costs totaled approximately $3.2 million and $2.8 million, l
respectively.
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- 10. JOINTLX OWNED S RATIONS
- 11. LEASES The subsidiaries participated with nonaffiliated utilities in the The subsidiaries have recorded capital leases w hich have followingjointly owned stations at December 31,1985:
balances at December 31,1985 and 1984 of $89 million and $39 million, respectively (net of amortization of $32 million and $25 (In Afillions)
Balance million, respectively). These leases include a nuclear fuel lease described below. The recording of capital leases has no impact
<~r Accumulated on net income because all leases, for ratemaking purposes, are Station Ow nership Insestment Depreciation considered operating leases.
Homer City 50
$346.1
$80.2 in September 1985, JCP& L entered into a nuclear fuel lease Keystone 16.67 53.9 14.3 agreement under w hich it may finance its nuclear fuel require-Conemaugh 16.45 53.I 15.7 ments for its Oyster Creek Station having a cort of up to $60 Yards Creek 50 18.0 3.4 million outstanding at any one time. The lease has a six month Seneca 20 14.1 2.7 initial term, is renewable monthly thereafter subject to certain Merrill Creek (a) 16.74 8.2 conditions and expires by its terms in 1993. lease payments consist of an amount designed to amortize the cost of the nuclear (a) Underconstruction fuel as consumed plus interest costs. The lease may be termi-Each participant in ajointly ow neJ generating station nated at any time upon five months notice by either party.
tinances its own portion and charges the appropriate operating Subject to certain conditions of termination, JCP& L is required expenses with its share of direct expenses. The dollar amounts to purchase, w ithin 120 days, all nuclear fuel then subject to the shown abose represent only those portions of the units ow ned by lease arrangement at a price that will allow the lessor to recover the subsidiaries.
its net investment. JCP&L is obligated for the spent nuclear fuel disposal costs of nuclear fuel leased under this agreement. In September 1985, JCP& L sold and leased back nuclear fuel at its book value including AFUDC plus related income taxes and has accounted for the obligation as a capital lease w hich has a balance of $50 million at December 31,1985.
k40
SYSTEM STATISTICS r:x= w m a m --~~
~
GENERAL Puauc UTruTIES CORPOR ATION AND SUBSIDIARY COMPANIES 1985 ---
1983
.-. 1982 1981 1984 Generating Capacities and Peaks (MW):
Installed capacity (at yearend)(a) 8,195 8,251 8,251 8,251 8,251 Annualhourly peak load 6,691(b) 6,401(b) 6,140(b) 6,442(c) 6.215(c)
Reserve (%)(a) 22.5 28.9 34.4 28.1 32.8 Nst system requirements (in thousands of MWH):
Net generation 24,590 20,075 20,635 20,841 22,266 Po_wer purchased and interchanged, net 12,656
_,__ _16,681 14,333 _
13,336 _
_12,659 Total net system requirements 37,246 36,756
_ 34,968
__34,177 _
34,925 Load Factor (%)
62.5 65.3 65.0 60.5 64.1 Production Data:
Cost of fuel (in mills per KWH of generation):
Coal 15.79 15.92 14.90 16.35 16.11 Oil 44,31 49.%
52.31 58.16 62.29 Nuclear 5.03 6.25 5.85 4.08 3.83 Other 52.45 59.74 55.55 64.06 56.82 Average 17.29 21.53 19.94 19.80 19.06 Generation by fuel type (%):
Coal 71 85 87 81 78 Oil 3
3 3
2 3
Nuclear 18 1
9 11 Other_(gas & hydro) _
8_
_ 11
_ _ _I_0 _ _ _
_8 8
Total IW Im 100 IW IW Electric Energy Sales (in thousands of MWH):
Residential 11,142 11,273 10,901 10,6M 10,707 Commercial 9,080 8,826 8,322 8,173 7,949 Industrial 11,707 11,770 10,608 10,752 11,535 Other
_ 1,417..
____l,622_ _. _ 1,669 _ __ 1,824 _ _
1,821 Total _
33,346
__ 33,491 31,500 31,353 32,012 Electric Operating Resenues (in thousands):
Residential
$1,109,403
$1,049,257
$ 978,743
$ 919,532
$ 793,056 Commercial 827,514 765,394 687,773 661,910 548,367 Industrial 807,820 772,923 673,101 694,291 609,177 Other 95,429 _ _ 107,474_ _ __l_0_5,113 _ _ 101,712 _.91,591 Total from KWH sales 2,840,166 2,695,G48 2,444,730 2,377,445 2,042,191 Other revenues 29,M3 _ _
.__40,238 _ _ _ 35,574 _ _
28.08_2
_ 23,296 Total _
$2,869,509
$2,735,286
$2,480,304
$2.405,527
$2,%5,487 Customers--Year-End (in thousands):
Residen al 1,511 1,482 1,456 1,434 1,422 a
Commercial 175 170 166 164 163 Industrial 10 10 10 10 10 Other 3_
3 3
__3 3
Total 1,699 -
1.598 1,665 1,635 1,611 Price per KWH-allcustomers (cents) 8,52 8.05 7.76 7.58 6.38 (a) Includes the installed capacity of Th11 1 and Thll-2 of 800 MW and 906 MW, respectively, for all periods. The reserve (W) excluding TMI-2 for 1985 would be 8.9%, and excluding TMI-l and TMI-2 for 1984,1983,1982 and 1981 would be 2.2%,6.6%,
1.6% and 5.3%, respectively.
(b) Summer peak.
(c) Winter peak.
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SUPPLEN1ENTARY INFORh1 ATION CONCERNING INFLATION EFimers (UNAUDITED)
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The following supplementary information is pros ided in gations to pay a fixed sum), primarily long-term debt, during a accord with FAS No. 33, " Financial Reporting and Changing period in w hich the purchasing power of the dollar declined, Prices" (as amended), w hich requires disclosure of certain inflation adjusted figures reflect a net gain in purchasing power.
intiation effects upon company operations. The inflation This gain is strictly an economic concept, is not realized in cash, estimating method prescribed by FAS No. 33 involves restating and does not represent funds available for actual use or for significant monetary and non-monetary items from conven-distribution to shareholders.
tional historical dollars to current cost dollars. The differences Non monetary items are those without any contractual con-between these amounts are the estimates of inflation effects version provisions to a fixed number of dollars as, for example, w hich occur m the current period. The Corporation utilizes investments in plant and equipment and related depreciatior..
company equipment cost indexes, the Handy Whitman Indexes Utility plant and related accumulated depreciation were esti-of Public Utility Construction Costs, and the Consumer Pnce mated in current cost dollars by applying appropriate cost index, as appropriate, to estimate equivalent current cost figures indexes to vintaged historical cost dollars by equipment classes.
for these purposes' The current y ear's depreciation provision in current cost terms
, The current cost estimating method employs a number of was derived by applying methods and rates as used in the Judgements and experimental procedures to approximate infla-historical financial statements to current cost restated plant tion effects. Consequently, the Corporation cautions readers investments.
that this data should not be siewed as any precise measurement of theeffectsofinflation.
Other items, including revenues, taxes, and expenses other The primary items affected by intlation are those financial than depreciation, are considered to reflect the average price commitments w hich extend over many years of operation.
level for the year, and consequently, remain the same as reported These items fall into two classes termed " monetary" and "non.
in the primary financial statements.
- "'b'YI Present regulatory ratemaking implicitly assumes that com.
Monetary items are those assets or liabilities w hich are con-pensation for inflation effects is incorporated as a component in vertible into a predesignated fixed number ofdollars by their debt interest rates, preferred dividends, and the common equity contractual terms and conditions, such as receivables, payables, return rate used in the ratemaking process. Consequently, and long-term debt. Holding monetary assets during inflation-ratemaking deals with recovery of plant investment and other ary periods results in a purchasing power loss, since the fixed expenses only in historical cost amounts. The estimated quan-dollars received in the future will purchase less. Conversely, tification of inflation effects on monetary and non-monetary holding monetary liabilities results in purchasing power gains, items, including adjustment to historical costs recoverable via since future fixed pay ments will be made with dollars of dimin-ratemaking, provides a tentative measure ofinflation erosion of ished purchasing power.
common equity w hich is not explicitly recognized in the Since GPU's subsidiaries owed net monetary liabilities (obli-ratemaking process.
EFFECTS OF CHANGING Paices L
in Thousands ofAverage1985 Dollars Current Cost Net income, as reported *
$96,506 Erosion of common stockholder's equity due to changing prices:
Excess of current cost over historical cost depreciation
$(273,097)
Current cost increases, net of general inflation" (129,328)
Current year adjustment to recoverable costs 246,546 Net non-monetary items purchasing power loss (155,879)
Net monetary items purchasing power gain 77.880 Net erosion of common stockholder's equity (77,999)
Net income, as adjusted
$_18,5,07
~
- Adversely affected by regulatory disallowances of operating expenses and return requirements associated with Thll-1, TN1I-2 and Forked River (see Note I L
- Current cost increase was $ 191,433 for plant facilities. General inflation increase was $320,761.
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I FivE YEAR COMPARISON OF SELECTED FINANCIAL DATA
- 1 i
tx:=:====::2n1= :n=:n==nc wn2m -
-- - - - ~ -
InMillions ExceptPerShareData Year Ended December 31,
_-5 198 1984 1983 1982 1981 Operating revenues:
As reported
$2,869.5
$2,735.3
$2,480.3
$2,405.5
$2,065.5 In 1985 average purchasing power 2,869.5 2,832.9 2,678.I 2,680.9 2,443.I Income (loss) before extraordinary items:
As reported
%.5
$ 128.5
$ 66.9
$ 33.7
$ 20.5 In current cost dollars *
- 18.5 53.9 (3.6)
(41.9)
(l69.4)
Earnings (loss) per share before extraordinary items:
As reported 1.54
$ 2.05 1.09
.55
.33 In current cost dollars **
.29
.86
(.06)
(.68)
(2.77)
Market price per common share at year-end:
As reported
$ 17.13
$ i1.50
$ 7.75
$ 6.75
$ 6.75 In 1985 average purchasing power 16.85 11.75 8.23 7.44 7.73 Net plant assets (in 1985 year-end dollars):* *
- In historicalcost dollars
$4,300.2
$4,135.3
$4,006.5
$3,958.4
$3,871.2 In current cost dollars" 8,700.3 8,557.I 8,663.5 8,98I.4 9,101.7 Net assets at recoverable cost:
In historicalcost dollars
$2,168.8
$2,062.1
$1,912.7
$ 1,861.6
$1,823.2 In current cost dollars **
2,134.5 2,106.0 2,030.6 2,051.3 2,086.9 Current cost gain (loss), net of general inflation, after current year adjustment to recoverable cost * *
$ 117,2
$ 95.2
$ 93.0 84.0
$ (172.5)
Gain in purchasing power of net amounts owed
$ 77.9
$ 84.2
$ 84.5
$ 88.0
$ 201.5 Selected balance sheet data at year-end (historical costs):
Total assets
$6,176.3
$6,215.8
$5,333.9
$5,1%.8
$5,%3.3 Long-term debt 1,816.3 1,797.2 1,895.0 1,998.7 ~
2,109.3 Cumulative preferred stock - mandatory redemption 58.3 63.7 67.2 72.3 77.3 Average common shares outstanding 62.9 62.9 61.5 61.3 61.3 Average consumer price index 322.2 311.I 298.4 289.1 272.4 December consumer price index 327.4 315.5 303.5 292.4 281.5
- All current cost amounts expressed in 1985 average dollars, except as noted.
- Prior years' current cost amounts adjusted to 1985 by applying the CPI-U indexes, as required.
- Includes $2.6 million for Other Physical Property and excludes $23.6 million for the TMI-2 damaged core. The latter is treated as a monetary item for FAS No. 33 disclosure purposes.
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. ~. - - -
DIRECTORS i
L
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touts J._APPELL, JR.I.2 HERM_AN DIECKAMP DR. JOHN W. OswALo' 3 President President President Emeritus Susquehanna Broadcasting Co.
andChiefOperating Ogcer The Pennsylvania State University York, Pennsylvania 17401 General Public Utilities Corporation Ogontz Campus (Communications Parsippany, New Jersey 07054 Abington, Pennsylvania 19001 and Consumer Products)
DR. DAvin L. GROVE' 3 PAUL R. ROEDEd.2 DON _ ALo J._B AlNTON' 2 Former President PresidentandChiefExecutive Ofcer Chairman David L. Grove, Ltd.
CarpenterTechnology Corporation andChiefExecutive Offcer Armonk, New York 10504 Reading, Pennsylvania 19603 Viatech, Inc.
(Economic Consultants)
(Specialty Metals)
Syosset, New York 11791
-WILWAM G. KUHNs DR. PATRICIA K. WOOLP' 3 (Engineering, Architecturaland g,j,j,j,g,,,,7cgg,cj,f,g,,
g g
j Surveying Services) andChiefErecutive Offcer Princeton University JOHN F. BtRorTT' 2 General Public Utilities Corporation Princeton, New Jersey 08544 RetiredChairman Parsippany, New Jersey 07054
,y g_,,
andChiefExecutive Offcer 8
2 JOHN F. O' LEARY.3 Member of PersonnelCommittee ACF Industries Inc.
- -- -- ~
%mber of Nominating Committec Energy Consultant Earth City, Misscuri 63045 (Equipment Manufacturing)
Washington, D.C. 20015 OFFICERS
..__.______j GENERAL PUBLIC UTluTIES SUBSIDIARY COMPANY CORPORATION PRESIDENTS unewmmesmsrew WiluAM G. KUHNS PHlLIP.R. CLARK Chairman.
GPUNuclear Corporation andChiefExecutiw Officer HERMAN DIECKAMP HERMAN DIECK_ AMP GPlf5esice Corporation President andChiefOperating Offcer M_Es RMA Pennsylvania Electric Company VERNER H. CONDON 9 ice President FLOYD J. SMrru*
andChiefFinancialOffcer Metropolitan Edison Company F. ALLEN DONOFRIO WILUAM A. VERROCHI Comptroller Jersey Central JOHN _G. GRAH AM Treasurer GRACE WADE JA_MES _B. Ll_BE_RM AN Secretary General Counsel MARY L. BRESLIN
- Floyd 1 Smith has announced his retirement Assistantsecretary effective March 31,1986. Fred D. Hafer has been named to succeed him.
A W
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- SilAREHOLDER NOTES Tile GPU SYSTEM COMPANIES 1986 ANNUAL MuiTING GENER AL Punue UTrurits FOR Ft'RTH: R INIORNIATioN The Annual Niceting of Stockholders of CORPORATION
( 'opies of GPU's Sy stem St.itistics and the General PuNic Clihties Corporation w ill 100 Interpace Parkw ay Corporationi 19ss 10-K Annual Report to be held at 2:30 p nt I:Df N1a) 6,1956 Parsippany, New Jersey 07054-1140 the securities and ikchange Conumssion at the N1etropohtan N1useum of Art.
4 201) 2r33 65m w di be as adable af ter N1 arch 31.14X6 New York. New York.
GPU St RvicE CoRW)R ATioN k*
TRANstT.R AGENT G PU Nt 'CL EAR CoRW)R ATloN N1anutacturers llanoser l' rust Compans.
< Same address and telephone number as E"' k" J) E"I'iPP""> N I "7"i4 ~ I I 49' "'
P.O. Box 24915, Church Street Station'.
GPU Corporation)
"I b
New hk, NY 10249 JERSEY CENTRAL Transibs can also be hand-dehscred to Pow on & LiGrir CONtPANY N1anufacturers Hanoser Irust Company.
N1ashson Asenue at Punch Bow I Road Secunnes W mdow. Street i.es el, N1ornstoo n. NJ 0799) 130 John Street, New York NY.
( 201: 4 s542m Too M ANY REPORTS?
MElRoK)LITAN Enisos CON 1PANY You may be receising mulaple copics of 2500 Pottss ille Pike the GPU Annual Report because of muhi-Readmg. PA 19640 0001 pie accounts within your househo!J To i215) 920 3 Nil stop the e stra copies. pfea e u nte to N1an PENNsyt.v NNI A Ell CTRIC CONtPANY utat f urers llanos er liust L ompany. P O N BroaJ Street Box 24935, Church Street 5tanon. Ne" JoWo
- n. P.\\ 15907 uk, NY 10249 and enclose :he maihng g,~q m g, labels f rom th estra copies.
h stock price 1979-1985 h
l!L Ww f
o E
79 80 81 82 R3 iQ 2Q 3Q 4Q IQ 2Q 3Q 4Q g
84 85 4 Ssps? Q lEism W ;'i%W % ',%%D
. L. : hL l ' - ~
GENrRAL PenLic UnLrr ES CORPORATION 15 US1TD AS GPU oN die NEw YORK stock EXCHANGE. AT DircuniR 31,1985 nlLRE % LRE 114,761 REGISTERED HotDF RS OF GPU CouuoN stock WirH RESPECT TO RESTRICTION oN THE PAYMENT OF couwoN stock DIVIDENDS BY GPU SEE Nort 6 R) THE FINANct AL STATEMENTS.
GENERAL PUBLIC UTILITIES CORPORATION 100 INTERPACE PARKWAY PARSIPPANY, NEw JERSEY 07054-1149 (201)263-6500 l
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