ML20209C699
| ML20209C699 | |
| Person / Time | |
|---|---|
| Site: | Oyster Creek, Three Mile Island, 05000000 |
| Issue date: | 12/31/1986 |
| From: | Dieckamp H, Hukill H, Kuhns W GENERAL PUBLIC UTILITIES CORP. |
| To: | NRC OFFICE OF ADMINISTRATION & RESOURCES MANAGEMENT (ARM) |
| References | |
| 4410-87-L-0066, 4410-87-L-66, 5211-87-2084, NUDOCS 8704290053 | |
| Download: ML20209C699 (81) | |
Text
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GENERAL PUBLIC UTILITIES l
1986 Annual Report yl84"X888i?8ta8ljp 4g0 u
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(; f) [f The General Public Utilities System professional services to the operating Companies provide some 34.7 billion companies, while a fifth subsidiary, GPU S [ S '/' /[]/ kilowatt-hours of electricity for about 1.7 Nuclear Corporation (GPUN), is responsible n . . million customers (and a total population for the operation, maintenance and
^ - b5 exceeding 4 million) in service territories management of the System's nuclear facilities.
encompassing about half the land area of About 34 percent of the electricity Pennsylvania and New Jersey. distributed by the operating companies is The operating companies are Jersey used by residential customers,28 percent by Central Power & Light Company (JCP&L) commercial accounts,34 percent by industry and,in Pennsylvania, Metropolitan Edison and 4 percent by other customers.
Company (Met-Ed) and Pennsylvania The peak load periods of the operating Electric Company (Penelec). Another companies are in balance, with 1986 winter subsidiary, GPU Service Corporation peaks in Pennsylvania and a 1986 summer (GPUSC), provides integrated System plans peak in New Jersey.
and policies, along with a broad range of Operating Companies' Statistics-1986 Sales Mix:
Residential, Electric Peak Revenues TotalAssets Commercial. Customers Sales Load Number of
($000) ($000) _
Industrial Year-End _( 3f Wil) __(M W)
- Employees JCP&L $1,405,873 $2,743,469 39% 32 % 26 % 815,564 14,784,456 3,427 3,945' Met-Ed $ 600,904 $1,497,573 33 % 24 % 39 % 393,614 8,486,276 1,465 2,891 Penelec $ 786,471 $1,765,752 28 % 24 % 41 % 533,887 11,499,505 1,716 4,299 GPU $2.787,077 $6,085,670 34 % 28 % 34 % 1,743,065 34,770,23 7 6,608 13,934**
- At time of GPU System peak.
- Includes employees of GPU Nuclear and GPU Service Corporations.
1986 F I N i1 N C I /1 L S U M M i1 R Y 1986* 1985*
Net income ($000) $ 205,247 $ 117,106 Per share $ 3.26 $ 1.86 Common shares outstanding, year-end (000) 62,864 62,864 Number ofstockholders 94,822 114,761 Book value per share $ 28.41 $ 25.20 Megawatt-hour sales (000) 34,770 33,346 Operating revenues ($000) $2,787,077 $2,869,509 Construction expenditures ($000) $ 512,755 $ 407,995 Cost offuel and purchased power ($000) $ 806,022 $ 983,317 Total assets ($000) $6,085,670 $5,925,924 Generating capacity (megawatts)** 8,195 8,195 Peak load (megawatts) 6,608 6,691 Customers sened at year-end 1,743,065 1,698,820 Number ofemployees at year-end 13,934 13,713
- See Note 1 to Consolidated Financial Statements and Report ofAuditors.
1985fnancial data has been restated, see Note 3.
- Includes 1,706 megawattsfor both TMI Units 1 and 2.
l ;
Inside GPU's 1986 Annual Report Letter to Stockholders 2. 'Index to ConsolidatedFinancial SeningInvestors 6. Statements & Notes 25.
Regulatory Actions 8. Report ofAuditors 26.
Operations 10. Consolidated Financial Statements 27.
Sening Customers 12. Notes to FinancialStatements 32.
Sening the Community 14. SelectedFinancialData 45.
Sening Employees 17.' Quarterly FinancialData 46.
Statement ofManagement 19. System Statistics 47.
Management's Discussion & Analysis of Directors and Oficers 48. '
FinancialCondition and Results of Shareholder Notesinside Back Cover
. Operations 20.
2.
TO OUR STOCKHOLDERS l l We have made steady progress over the Nuclear Regulatory Commission that last several years.1986 was the first year upon completion of the cleanup program, that we felt the fullimpact of the return TMI-2 will be ready for Post-Defueling of Three Mile Island Unit I to rates. Monitored Storage, and will pose no risk This, combined with lower oil and gas to the health or safety of the public, the prices, resulted in a dramatic reduction in workers or the environment.
energy costs. The result was good news Despite the fact that 1986 earnings for both stockholders and customers- improved so much, they produced a earnings increased while customer costs return on equity significantly below the declined. utility industry average. Since the 1979 GPU earnings in 1986 were $205.2 accident at TMI, GPU earnings have million, or $3.26 per share, up been depressed by the lack of a return on substantially over 1985.1986 earnings TMI and Forked River. Ratemaking has were improved by about 85 cents per provided for revenues from customers to share by the restart of TMI-l and the amortize the investments in TMI-2 and inclusion of that nuclear asset and its Forked River, but without a return on operations and maintenance expenses in the unamortized balance of the rates for the full year. The increased investment.
earnings led to improved financial Under prior accounting procedures, indicators and increased market value for earnings would continue to be depressed GPU stock. by the full efRct of the exclusion from The factor of overriding significance in rates of the TMI-2 and Forked River our 1986 operations was the return of investments. However, the reduction in TMI-l to service. October 3,1986 earnings would diminish as the marked a full year since restart. outstanding balances were amortized.
Following an outstanding performance, In December, the Financial the plant was shut down October 31 for a Accounting Standards Board (FASB) scheduled five-month outage for refueling issued a statement (FAS 90) which and plant modifications. requires, among other things, balance The beginning of off-site fuel shipments sheet recognition of the financial imoact from TMI-2 in July was a major of nonearning assets. Although such milestone in the cleanup program. A recognition is not required before 1988, review of the cleanup program and your Company has chosen to implement estimated $1 billion cost confirmed the this standard beginning in 1986. We are likelihood that the effort can be able to take this step now because rate-completed within that cost estimate. making procedures in place since 1982 In December 1986, we notified the provide a sound basis for us to define the 1
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effects on our capital assets of the TMI-2 The policy of earnings retention since accident. the TMI-2 accident contributed to our In accordance with FAS 90, the ability to absorb the FAS 90 writedown.
nonearning assets, TMI-2 and Forked Although the Company's equity ratio was River, have been written down to the reduced from 47 percent to 45 percent by present value of the future cash flow that this accounting change, the financial l results from the previously allowed position of the Company remains strong.
TMI-2 and Forked River amortization We recognize this is a complicated revenues. This accounting change has the subject, but important enough to deserve following effect: a detailed exph. nation. We do not
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- 1) The difference between the asset consider it as having an adverse impact balance on the books of account and the on your Company, but rather to further present value of the future cash flow is separate future results from the negative written off by reducing retained earnings impact of the TMI-2 accident.
(earned surplus) by about $160 million Despite our substantial progress, we as of December 31,1985. This action are short of our goals. We certainly regret does nothing more than recognize the our inability to restore a cash dividend lack of a return on these assets. As a during 1986. We can assure you that the result, the Company's restated equity will subject receives continuing review. We more closely reflect the earnings potential reported at the Annual Meeting of of the Company and be more comparable Stockholders last May that we were down with others in the industry. to one impediment to the payment of a
- 2) The amounts recorded as a loss in cash dividend-the cleanup of TMI-2 prior fiscal periods are returned to net and, specifically, the need to demonstrate income each subsequent year in declining the effectiveness of the fuel removal amounts as the investments in TMI-2 and process. It was then in its early stages.
Forked River are amortized. For 1986, During the year, we encountered a -
the resulting increased earnings number of problems that are indicative of amounted to 517.8 million or 28 cents per the unprecedented nature of the cleanup.
share. The earnings increase represents Additional effort was necessary to about h'a lf of a normal return on the characterize the con 6guration and capital attributable to those plant material state of the damaged core, to balances after the write-down. break up a large solidi 6ed mass of core
- 3) The Company's equity and equity material, to devise improved debns
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ratio are reduced. Book value cf a share ' handling tools, and to establish
- of OPU common stock is thereby.
. . conditions of water clarity necessary for.-
reduced at December 31,1986 from -
the underwater fuel removal task. The .
530.67 to $28.41. - time necessary to solve theskprob :ms L delayed fuel'removalprogress, t the l k ._
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way seems to be cleared for major positioned to meet the energy challenges progress in 1987. of the future and to provide a reasonable Fuel removal began in January 1986 return to the owners. The industry is and by December 31,1986, we had changing. These changes will require removed 20 percent of the total estimated unprecedented attention to excellence in 290,000 pounds. This had not increased all that we do.
significantly for about eight months. We have come a long way toward Since the end of 1986 to the date this returning to normalcy. This has required report went to press, the fuel removed has high levels of competence and energy increased to 26 percent. from a committed and dedicated The point of all this detailed Company team. In addition,it could not information is to give you some feel for have been achieved without the the fact that we are dealing with first-of- understanding and support of the a-kind tasks. As a result, we cannot regulators, customers, and, of course, the always predict progress with accuracy. stockholders. Your management is We will continue to evaluate the appreciative. l situation. I In the meantime,it should not go unnoticed that our pohey of reinvesting -
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stockholder earnings 1,rovided an above average performance for GPU stock in W. G. Kuhns the marketplace last year. During 1986, Chairman the Standard and Poor's and the Dow- and ChiefExecutive O$cer Jones utility indices grew 21 percent and 18 percent, respectively, while the GPU stock price increased 32 percent. This is / ^
an indication that the GPU stockholder # "
was not disadvantaged in terms of the H. Dieckamp total return on his or her investment in President 1986. We nevertheless will continue to do and ChiefOperating Ofcer everything we can to return your Company to a full state of normalcy, which willinclude a cash dividend March 2,1987 program.
This annual report provides a summary of the Company's finances and operations and our plans for the future.
We believe the Company is well d
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WIL L I A M G. K U H N S:
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THREE DECADES OF S E R VI C E This is my last Annual Report as outside the Company. Throughout this your Chairman. I will retire as Chairman difficult period, I have been sustained and following the 1987 Annual Meeting of strengthened by the " quiet majority" Stockholders on May 7, but I expect to whose support meant more than they l continue as a director and part-time could have measured. )
consultant to GPU. During my 32 years The experiences of survival and
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of service with GPU, your Company and recovery have made us all keener-more ;
indeed the electric utility industry, have dedicated than ever to excellence in doing undergone extensive changes. I am proud ourjob. Your Company is ready for the to have had a part in providing a most future.
essential service to our customers and, for I want to pay particular tribute to at least most of that time, obtaining a your Board of Directors. Their courage, reasonable return f or the stockholders, ability, trust and downright hard work Our plans were dramatically affected were essential to what we accomplished.
by the Three Mile Island accident eight In my experience, a Board of Directors years ago. We faced problems has never been so thoroughly challenged unprecedented in American business. The and involved in a company's future. Their fact that your Company is well on the response was magnificent.
way to normalcy is a tribute to the efforts My thanks and good wishes go to all of so many dedicated people within and ofyou.
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6.
I I S E R VIN G INVESTORS Earnings GPU's 1986 net income was $205 In 1986, the GPU System had $726 million, compared with $117 million in million of capital requirements, with the 1985 as restated. This restatement reflects majority of these funds, $513 million, the implementation in 1986 far prior going to transmission and distribution years of new accounting standards for improvements and modifications of regulated enterprises that were issued by existing generating stations.
the Financial Accounting Standards In 1987, about $562 million has been Board in December 1986. Earnings have budgeted for capital requirements. Of this
! improved substantially, reflecting the amount, about $516 million is budgeted return of TMI Unit I to rates in late for existing transmission, distribution and l 1985, an increase in kilowatt-hour sales generating plant improvements and and the effect of base rate orders received modifications, and about $46 million is in 1985 and 1986. Partially offsetting the budgeted for the retirement oflong-term i
earnings increase were higher operating debt and preferred stock.
and maintenance expenses. The System has full confidence in our ability to fund this need and expects that Electricity Sales ,
two-thirds to three-quarters ofit will be l Sales of electricity were 34.8 billion funded internally.
kilowatt-hours in 1986, compared with We expect only moderate growth in 33.3 billion in 1985. these figures, mostly as a result of For the long term, GPU forecasts inflation and our plant life extension electric energy growth to average about program, over the next few years.
1.2 percent per year, ranging from about Thereafter, whether capital needs would 1.7 percent in New Jersey to about 0.4 begin to expand to fund new generation percent in western Pennsylvania.
construction will depend on how well we CapitalExpenditures are able to control demand and whether the other elements ofour supply plan -
Continued close controls have kept particularly cogeneration -can be made expenditures in line with internally to fall into place. We will strive to avoid generated funds and the System's ability capital expansion, to finance.
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_2J Dollars 280 2 10 Earnings PerShare Before Extraordinaryitems 1.40 -- - ::
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%L Coverage and Capitalization Ratios Company (Penelee) of 4.96 times. Since At the end of 1986, GPU's Afet-Ed owns 50 percent of TMI-I capitalization was well-balanced-45 compared with 25 percent each for percent common equity, i1 percent JCP&L and Penelec, TMI-l's return to preferred stock, and 44 percent debt. In rates gave the greatest boost to Met-Ed.
1979, we had a common equity ratio of .
GPUSecurities Ratings Upgraded 1 31 percent, preferred of 13 percent and l debt of 56 percent. Our capitalization In 1986, Standard & Poor's (S&P) and goal is still 45 percent equity,12 percent M dy's upgraded their ratings of the preferred stock, and 43 percent debt. per ting companies' bonds, debentures With higher earnings and equity ratios, and preferred stock. All of these our coverages (the number of times securities are rated insestment grade.
operating income exceeds the amount of The operating companies' senior debt interest we are paying) have improved is now assigned ratings of A- and dramatically. Jersey Central Power & BBB+ by S&P and A3, Baal and Baa2 Light Company (JCP&L) has interest by Moody's.
coverage of 3.63 times, Metropolitan Financial Unceitainties Edison Company (Met Ed) of 4.38 With TMI l back in rates, the times, and Pennsylvania Electric unamortized investments in TMI-2 and l
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the abandoned Forked River nuclear JCP&L's rates, even though it produced a plant are the only remaining nonearning modest decrease in customer costs. In properties of significance. As a result of responding to the Advocate's argument, the GPU System's implementation of the New Jersey Board of Public Utilities provisions of Financial Accounting (BPU) initiated a separate proceeding to Standard 90 (FAS 90), these investments look at the setting of performance have been written down to the present standards for TMI-l and Oyster Creek.
value of their expected future revenues. The BPU had previously instituted an As of December 31, '985, the investigation into the costs incurred by investments in TMZ and Forked River JCP&L during the 1983-84 Oyster Creek were reduced by $160 million as a result refurbishment outage. We have seen of this accouming change. This similar questioning of costs incurred by adjustment also reduced GPU's retained other utilities in both New Jersey and earnings by a similar amount. Ilowever, Pennsylvania.
this loss is being returned to net income We see no significant immediate in decreasing amounts over the impact on GPU associated with anticipated future recovery periods of the implementation of the new federal investments. In 1986, about $18 million income tax laws. The rate reductions for was returned to net income. the lower tax rate do not have a We are concerned about the potential significant effect on income. Ilowever, the impact of retrospective prudence loss ofinvestment tax credits and the examinations. When TMI l returned to general lowering of coverage ratios service, the New Jersey Public Advocate, associated with a lower operating income citing concern about the plant's ability to before income tax would be important in operate, argued to keep TMI-l out of the context of an expanded construction program.
R E G U L il T O R Y il C T I O N S Energy Cost Reductions Ofset Base Rate Increases of $289 million. This resulted in a net In 1986, the GPU System retail base overall reduction in retail rates of $237 rates were increased by $52 million, offset million.
by a reduction in energy clause revenues On June 24,1986, the DPU issued an 3ff,ygg, novh Y -} Average Assets in Rate Base I"'I" Dollars "::: Kffeg.gg N!:: p
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order approving a $29 million annual 1987, the deadline for a PUC decision on retail base rate increase and a $95 million the base rate requests.
annual reduction in its Levelized Energy As part of the rate settlements, both Adjustment Clause (LEAC) for JCP&L. companies agreed not to file for another The net change in JCP&L's rates base rate increase before July 1987.
represents about a 5 percent decrease in Under the settlement agreement, Met-total customer charges. Ed and Penelee submitted estimates of JCP&L had previously reduced its the effect of the new federal tax law on LEAC by $110 million in March 1986. retail rates. Met-Ed customers will save That decrease, coupled with the $66 $8.7 million in 1987 and $8.7 million in million net reduction approved in June, 1988, for a total change of 3.2 percent.
represents a combined 12 percent For Penelec, the new tax law will reduce decrease in total customer charges. rates by $11 million in 1987 and by $12.4 In April 1986, Met-Ed and Penelee million in 1988, for a total change of 3.5 received retail energy clause decreases of percent. These rate reductions were
$24 million and $43 million, respectively, approved by the PUC in January 1987.
In November 1986, the Pennsylvania In November, JCP&L asked the BPU Public Utility Commission (PUC) to reduce retail rates by $23.3 million, approved settlements for base rate effective January 1,1987, to reflect the increases requested by Met-Ed and 1987 impact of the new federal tax law.
Penelee. This was approved by the BPU in Met-Ed received an $18 million annual December 1986 and has reduced overall increase in retail base rates, or 3.4 customers charges by 1.8 percent.
percent. The savings reflect the tax rate Penelec received a $$ million annual reduction, which are partially offset by increase in retail base rates, and reduced the loss of various credits and deductions.
its energy charges by $16.5 million for a While base rates continue to improve net reduction in customer charges of earnings, reduced energy charges have
$11.5 million or 1.6 percent. more than offset the impact on The settlements wera .iased on a customers. As a result, GPU System number of factors, includmg declining customers are paying lower, competitive cost of capital and lower inflation than electric rates in Pennsylvania and New had been projected. The settlements also Jersey.
provided rate relief sooner than March 48 - -
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- TN11-l's capacity factor from October !
1985 to October 31,1986 was 76.7 l
i percent. We have been sery pleased with
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13Il-2 Cleanup The cleanup of TN11 Unit 2 remains a l
top priority. N1any of the cleanup l
challenges have been met successfully. '
. While there stillis much work to be done, !
I 1 This shipping cask is i>ne of two such cask s that began transporting \ the elcanup program is making steady core debrisfrom TML-2 in July 1986. The damagedfuelis being l i progress taward completion. We continue ;
shipped to a U.S. Department of Energy laboratory in Idahofor examination and storage. ta belie 5e that the 5l bilIion estimate is 5
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! that the funding is reasonably well a ,su red.
I The cleanup is prosiding valuable O /# /[ // A '/' / O 1 S
- research and development data w hich l
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73/1-/ Operationi sharing program insolving substantial l October 3,1986 marked a full year i support by outside sources. The end of since the restart of TN11 Unit 1. TN11-l's that outside support program extends return to sersice was the factor of beyond the completion of the cleanup.
- oserriding significance in our operations Specifically, it is expected to provide oser i during 1986. 5200 million during the years 1987
, After a careful start-up program to full through 1990.
power operation in late 1985, the unit was Defueling of TMI 2, previously l shut down for a steam generator scheduled for completion in 1987, may l inspection in March 1986. The inspection extend into 1988. Completion of the l showed no significant degradation. planned cleanup program at TMI-2 I
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i Defueling Momtored Storage (PDMS) yuun after cleanup and will pose no risk to the ua t]-
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ljie//d/g/m /// or the environment. I E st,s s e.j!! J* During PDMS, a GPU Nuclear staff
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This replica simulator of the T.ti1-1 control room serves as one of the @'" " E""'I""
most important parts of training operators by giving hands-on After the NRC completed its revlew af ,
operating experience without actually operating the plant.
a GPU Nuclear inspection of the unit's drywell containment facility, Oyster Creek began to return to service on I December 21,1986 after being shut down I
in April 1986 for a scheduled refueling i continues to be targeted for 1988. No and maintenance outage. It experienced a l decision has been made on the long-term number of minor problems during the future of the plant. restart sequence which initially delayed At the time this report went to press in its return to sustained full power early March 1987, we had removed more I operation.
l than 26 percent of the core. This core The Company's inspection and l debris is being loaded into casks and subsequent evaluation had shown some shipped to a United States government areas of the drywell were somewhat laboratory. At year-end 1986, four casks thinner than anticipated because of had been shipped. corrosion. However, the evaluation In December 1986, GPU Nuclear verified that it was structurally sound and Corporation notified the Nuclear able to function as designed.
Regulatory Commission (NRC) of plans GPU Nuclear is developing plans to for completion of the cleanup program minimize any future corrosion, and is assessing the need for future actions.
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Oyster Creek und TMI established in 1985 to improve and Attain National Training Accreditation sustain the training performance of Oyster Creek has become the fourth utilities. It is analogous to accreditation unit and TMI-l the seventh unit in the of colleges and universities and is United States to have all 10 training administered by the Institute of Nuclear programs accredited by the National Power Operation (INPO).
Nuclear Accrediting Board. With full accreditation at the two The Accrediting Board supports the plants, GPU Nuclear became the seventh National Academy for Nuclear Training, full member of the Academy in the country.
SERVING CUSTOMERS Demand Forecast to accomplish this by extending outside For the long term, GPU forecasts energy and capacity purchases, electric energy growth to average about expanding our conservation and load
. 1.2 percent per year. JCP&L's annual management program, expanding growth rate in 1986 was higher due to opportunities for cogeneration and small continued growth in commercial sales power producers, and improving the and new residential service connections. performance and extending the life of Offsetting the growth in New Jersey is existing generating facilities.
a continuing loss in industrial sales in Pennsylvania. The central and western Plant Life Extension Pennsylvania smokestack industries-steel As part ofits energy-supply planning and mining-remain uncertain. We expect f r the next 20 years, the GPU System is to continue to see more growth in our evaluating its older generating stations in New Jersey service territory than in our an eff rt to keep them operating Pennsylvania areas. 'I',ciently well beyond their traditional retirement ages.
Supply Planning In the past, our fossil-fueled power GPU remains committed to deferring plants normally were retired after they construction of new generation facilities had been in service about 40 years.
as long as possible. We expect to be able Today, the economics may often favor JCP&L's ResidentialEnergy Conservation Action Program (RECAP), with 3,100 customers
- participating, has received a specialawardfmm Ihe b
U.S. Department ofEnergy. Under RECAP, JCP&L pays a contractor an amountpmportionate to the electricity saved in homes in which the contractor has installed energy conservation improvements.
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A newprecipitatorfor Unit 2 of Met-Ed's PortlandStation will !
go into operation during 1987. / ,
Work willcontinue on installing ;' y .
Unit l's newprecipitator. <
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scheduledfor completion in .. n 1988. Theprecipitators will kl increaseplant output and ,
eficiency while meeting stack y' ' ,
emission requirements.
__ ceWy investing in rehabilitating the existing Power Purchases stations to keep them running longer, With TMI-l back in service and Oyster when compared to alternatives, including Creek operating, the GPU System should building new generating stations to be able to meet about 70 to 75 percent of replace them. its requirements over the next several Refurbishment work is planned to years with its own generating stations.
extend the life of Met-Ed's coal-fired However, power purchases will continue Portland and Titus stations past the year to be a major element in our strategy for 2000. It also appears economically supplying reliable and economic power. l feasible to extend the lives of much of the We are, therefore, continuing to pursue remainder of the System's facilities into long-term power purchases, taking into the next century.
consideration transmission capability, Programs instituted over the last load growth, capacity availability, and l several years to improve the performance the economics of fuel supply.
of our fossil-fueled power plants have borne positive results. During 1986, those M derateDetnand units had an average availability of over We are proud of our long-standing 75 percent, an improvement of about 3 commitment to load management-a percentage points over their performance commitment that dates back to the early in 1985. 1970s, and that was significantly l l
Wit!s over U.000 residentialcustomers participating. Met Ed has more customers on its Too.. '-of-Day (TOD) rates than any osher utility in the U.S TOD ratesprovide economicincentires to
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use electricity during of-peak periods, which levels out the load and helps defer the need to build new generatingfacilities to meet increasingpeak b ^*% % demand.
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expanded through implementation of our megawatts of cogeneration and small Master Plan for Conservation and Load power producers to the System. Two-Management in 1980. Our efforts in these thirds of this could occur in New Jersey.
areas have allowed us to reduce our These additional megawatts could supply System peak load by about 750 up to 25 percent of the GPU System's megawatts. energy needs in the 1990s.
Cogeneration New Generation The fastest-growing alternate energy Building new generating stations, source today is cogeneration, the especially capital-intensive base-load simultaneous production of heat and stations, will be the option oflast resort electricity from a single energy source. in our efforts to meet future demand.
The GPU companies, by purchasing We have been successfulin our power from private companies, can help strategy to defer such construction and delay their need to build new generating plan to continue this strategy. Our energy plants and reduce the amount of high- needs appear to be covered through the cost energy purchased from other end of this century.
utilities. However, a higher peak forecast means At the present time, there are 28 greater need for peaking units to maintain operating cogeneration and small power reliability. We estimate that we will need production facilities in the GPU service about 2000 megawatts of peaking units, territories with a total capacity of about such as combustion turbines, over the 208 megawatts, which represents about 3 next 15 years to 20 years. These facilities percent of the System's peak load. There are much less capital intensive than base is a potential of adding another 1500 load generating stations.
S E R VIN G THE C O M M U NIT Y
- ecting Environmental Concerns companies spent well over one-half The GPU System is vitally concerned billion dollars to protect the environment.
with protecting the environment in a Environmental protection includes air responsible and cost-effective manner. and water pollution control facilities, Detween 1979 and 1986, the System solid waste disposal equipment and n -
- 22. .
Penelec customerservice representatives wrk with industrialcustomers to help thern save money through conservation and load management i'
- c3( programs such as ofpeak and curtailable service "f options. For companies with high electricity costs, such savings can help them weather economic recessions.
15.
T i ,. Through the KID Care Q3 program. Met-Ed ofersphoto ID equipment andsupplies to local law enforcement agencies. In turn,
~ they can produce " KID Cards,"
which offera convenientform of 9 ;{.a; identification toyoung children s% W_N[ f and theirparents. JCP&L ofers a
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similar Child IDprogram.
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1L 7\ dV) facilities, and noise abatement equipment. Although emission controls in All of the GPU System's generating Pennsylvania are more stringent than in plants are equipped to prevent the escape many midwestern states, the volume of of harmful amounts of pollutants into the coal burned in the Commonwealth makes environment. Pennsylvania a major producer of SO2 At our nuclear facilities, radiation and NOx emissions. New Jersey depends containment is a prime objective. As a on coal burned in Pennsylvania and in result of special training programs and several midwestern states for a significant carefully monitored plant operations, we portion ofits electricity needs. Increased have been highly successful in this effort. costs for those utilities will also be Acid Rain reflected in the cost of power sold to New ye7,ey, More stringent limits on emissions of The GPU companies believe that a sulfur dioxide (SO2) and nitrogen oxide federal acid rain policy should include (NO 3) could have a significant impact on continuing research, emphasis on coal the economies of New Jersey and cleaning before combustion, a uniform Pennsylvania.
control strategy, flexibility and equity.
Pennsylvania is both a leading In 1986, the three GPU operating producer and consumer of coal.
companies agreed to provide financial a
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r o " Louie the Lightning Bug. "a cartoon character, is \
',y 4 used in animated cartoons, coloring booh and in 3 -(), person to educate children and adults in electrical safety.
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l support to a national program that will work with customers experiencing use limestone to treat acidified lakes and financial ditriculty to develop a suitable st reams. payment plan or refer them to one of the The 10-year liming program is being cooperating agencies for further carried out by Living Lakes, Inc., a not- assistance.
for-profit organization that was ,
established in January 1986 and is being Crime IValch !
funded by a group of electric utilities and Each of the GPU operating companies coal companies. has instituted a program known variously as Crime Watch, Utility Watch and Commitment to CommunitJ Utility Crime Watch. This System-wide The GPU System companies believe it version of the now-familiar community is important to be good corporate awareness program plays a significant neighbors in the communities they serve. role in the elTort to reduce crime. Because Community involvement exists at both of their daily presence throughout the the corporate level and through the community, utility employees are in a actions ofindividual employees. particularly good position to be alert to There are many programs-some any unusual activity, which they can System-wide-designed to meet this report to local police agencies.
commitment. The following is just a sample of these many programs.
Gifts ofIVarmth and Light In 1986, Penelee once again offered Project Good Neighbor Electric Energy Gift Certificates as a More than 3,100 utility customers thoughtful way to help relatives and received help in paying their electric bills friends. At the end of the 1986 holiday last year under GPU's customer- season, over 650 gift certificates had been assistance programs, known as Project sold for a total of almost $24,000.
Good Neighbor and Project Ifelping Hand. U" * "" "I"* '* I""'
l Customers in financial need received Every fall since 1978, Penelee has held more than $377,000 through thejoint a series ofIluman Services Seminars endeavors of the GPU companies and throughout its service territory. The 1986 their customers and employees. The meetings in 10 areas focused on helping funds are distributed through community the payment troubled customers of service agencies. utilities and brought together a total of The GPU operating companies also 565 representatives of social service
, Each year in New Jersey, Oyster Creek employees hold a benefit softballgame and otherfund raising
? activities throughout the year to raise money to buy toys, which they distribute at Christmas to needy childn nfrom the surrounding communities.
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Allofthe GPUSystem ~.4: ,
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agencies, fuel oil dealers, utility Tutoring companies, government agencies and For several years, TMI employees have community groups to exchange ideas and served as volunteer tutors in algebra, information on programs available to chemhtry, physics and other subjects for help their customers and clients.
local high school students.
SERVING EMPL0YEES l
Management Changes firm, has been a member of the GPU William G. Kuhns, GPU Chairman Board of Directors since October 1979 and Chief Executive Officer, will retire on and Chairman of the Board of GPU May 7,1987, after nearly 32 years of Nuclear Corporation since February service with GPU. John F. O' Leary will 1984.
succeed Mr. Kuhns in these positions. Richard J. Postweiler was named Vice Mr. O' Leary, who is president of his own President-iluman Resources for the GPU Washington based energy consulting Service Corporation on March 10,1986.
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He was previously Vice President-Human retired November 30,1936 after 25 years Resources with Allied Signal of service with the GPU Sfstem.
Corporation. Succeeding him is James R. Leva, On June 26,1986, Philip R. Clark, formerly President and Chief Operating President and Chief Executive Officer of Officer of Penelec. Robert L Wise, GPU Nuclear Corporation, and John G. formerly Vice President, Division Graham, Executive Vice President of Operations at Penelec, succeeded Mr.
Planning and Finance of the GPU Leva as President and Chief Operating Service Corporation and Treasurer of Officer of Penelee on December 1,1986.
GPU, were elected to the Board of Directors of the GPU Service
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Corporation. At year-end 1986, the number of GPU Don W. Myers was named Vice System employees totaled 13,934. This is President and Comptroller for GPU a 1.6 percent increase over 1985 Nuclear Corporation on September 2, employment level.
1986. He succeeds F. Allen Donofrio' Employment Opportunities who continues as Comptroller of GPU and Vice President and Comptroller of The GPU System companies have the GPU Service Corporation. implemented Affirmative Action William A. Verrochi, President and Programs designed to encourage the full Chief Operating Officer of JCP&L, Participation of women and minorities in all areas at all levels of the Company.
Attention to the administration and support of Affirmative Action Programs continues to be a priority within the GPU System companies, and employment levels of women and minorities increased again in 1986.
Million 2** 5 18m Y ,/Y h.W} Opating Rmnues by Component Dollan _ _ 33 uw---- ---. 600 $ A lEdW 1N 0 ,iiiiiiiiiiiiiiiiiiiii
*19 '80 '81 '82 '83 '84 '83 '86
19. I I STATEMENT OF MANAGEMENT The management of General Public responsible for reviewing and monitoring Utilities Corporation is responsible for the Corporation's financial reporting and the information and representations accounting practices. The Audit contained in the financial statements and Committee meets with management and other sections of this annual report. The internal auditors periodically to review financial statements have been prepared the work of each and to monitor the in conformity with generally accepted discharge by each ofits responsibilities. accounting principles consistently The Audit Committee also meets applied. In preparing the financial periodically with the independent statements, management makes informed auditors who have free access to the judgments and estimates of the expected Audit Committee, without management effects of events and transactions that are present, to discuss internal accounting currently being reported. control, auditing and financial reporting To fulfill its responsibilities for the matters. reliability of the financial statements, Coopers & Lybrand, independent management has developed and public accountants, are engaged to maintains a system ofinternal accounting examine and express an opinion, which control. This system is intended to appears on page 26, on the financial provide reasonable assurance that assets statements. are safeguarded and transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in l accordance with generally accepted accounting principles. The Board of Directors, through its Audit Committee, consisting solely of outside directors of the Corporation, is l Where the 1986 Revenue Dollar Went {4-{_{4}4j4l4444[{ [444{.44{ _
- 1. Energy Costs . . 32 Cents
- 2. Operating & Maintenance . . 31 Cents L 1. 2 .I 4 16 _
- 3. Taxes . . 16 Cents
- 4. Depreciation & Amortization ... 9 Cents
- 3. Interest & Preferred Dividends . . . 7 Cents
,,6il6,i, lt 6,sI,seilssii 6. Common Stock Earnings ... 3 Cents O Cents im Cents
M A N A G EMEN T'S DIS C USSION A ND A N A L YSIS O F FIN A N CI A L C O ND I TIO N AND R E S UL TS OF OPER A TIONS I I Liquidity and CapitalResources million while issuing new long-term debt The GPU System's fmancial condition in the amount of $165 million. Nuclear continued to improve during 1986. This fuel requirements have also been financed improvement is reflected in an improved in the amount of $55 million. The common equity ratio due to the retention System's capitalization ratios are as ofearnings and the retirement of four followS: preferred stock issues and six issues of long-term debt. JCP&L and Penelee each I'#' #985 l98# retired two preferred stock issues in the Long-term Debt 44 % 48 % 49 % total amount of $29 million and $35 Preferred Stock 11 12 . 13 million, respectively. Long term debt in
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the following amounts was retired. IN%l@%l@% JCP&L, $14 million; Met Ed, $10 million; and Penelee, $69 million. Penelee Management's long-term capitalization issued first mortgage pollution control target continues to be 43% debt,12% bonds at the end of the year,in the preferred stock and 45% common equity. amount of $25 million at an interest rate Construction expenditures were $513 of 6%%. JCP&L's Oyster Creek nuclear million in 1986 and are expected to be fuel lease was increased by approximately about $516 million in 1987. Maturing
$30 million in early 1987. Additional debt and preferred stock and sinking fund financings are being considered for the expenditures were $64 million in 1986 GPU System operating subsidiaries in and are expected to be $46 million in 1987 to refinance maturing debt, satisfy 1987. Management estimates that sinking fund requirements, and to finance approximately 72% ofits total cash l construction and nuclear fuel require. construction plus maturing debt and I ments. The GPU System expects sinking fund requirements in 1987 will be j to be able to obtain needed financing at . satisfied through internally generated reasonable rates.
Over the last three years, the GPU System has retired long term debt and , preferred stock in the amount of $414
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l 21. e funds with the remainder being obtained decreases in 1985 compared to 1984 were through external financing. During 1986, due to lower earnings in 1985. These the GPU System made advances of $15 ratios by operating company are as million to fund the TMI-2 cleanup and follows: anticipates additional advances of up to Interest Coverage
$32 million in 1987.
1986 1985 1984 It is management's intention t
' h rd continue to make those construction pg,er & Light J.63x 3.02x 3.50x expenditures necessary to comply with ueiropolitan regulations, operate safely and meet Edison 4.38 1.86 3.15 customers' needs reliably. Management Pennsylvania has established a supply plan designed to Electric 4.96 3.54 4.16 avoid, to the extent possible, construction .-
of new generating facilities. The plan 'In 1986, Standard & Poor's and includes: 1) efforts to minimize demand Moody's upgraded their ratings of the upon the system,2) extension of the hfe operating companies bonds, debentures and maximization of the utilization of and preferred stock. All of these existing facilities,3) encouraging and fa. securities are rated investment grade. cilitating the development of cogenera. As a result of the return of TMI l to tion,4) maximizing long-term contracts rates, the GPU System's return on for energy purchases from other utility common equity has improved steadily systems and,5) as a last resort only, new throughout 1986 and was 12.1% for the generation construction, year. This compares to 7.6% in 1985 and Interest coverage ratios for the GPU 11.1% in 1984 (before extraordinary
. System improved substantially in 1986 as item). The decrease in 1985 compared to a result ofimproved earnings resulting 1984 was caused by lower earnings in from the full impact of TMI l's return to 1985. The last allowed rate of return on rates late in 1985 and the reduction of common equity investment included in outstanding debt. These ratios are now rate base is 15.2% for JCP&L. In the rate .
/ substantially in excess ofindenture cases settled in November 1986, Met-Ed
$l restrictions for new debt issues. The and Penelee were not granted any specific return on common equity in the 1
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A _ = settlements, but the rates to be used for regulators to look back to assess prudence AFUDC calculation purposes were in operations and capital investments. 12.9% for Met-Ed and 12.7% for Pene. For more information concerning GPUN lec. The difference between the allowed nuclear program and retrospective < versus actual rates of return is due to: 1) prudence examinations, see Note I to w regulatory lag and rate disallowances and financial statements, page 32.
- 2) lack of a return on the unamortized The Financial Accounting Standards TMI-2 ano Forked River investments. Board (FASB) has issued FAS 90, While the effect of the disallowance of a " Regulated Enterprises-Accounting for return on these investments will continue Abandonments and Disallowances of to depress future earnings, the effect will Plant Costs." Appl &dm of this decline as these investments are recov- statement by the GPU System in 1986, ered. Moreover, the implementation of which also involved restating previously FAS 90 will partially mitigate thefepres- issued financial statements, resulted in a sive effect of return disallowances *on re- write-down of retained earnings as of De-ported earnings. 1 cember 31,1985 of approximately $160 The future of the GPU System is million for the investments in TMI-2 and subject to uncertainties including those Forked River to their net present values.
relating to a utility's investment in (See Note 3 to the financial statements, ' ~ nuclear projects. GPU and its operating page 39.) companies have made major investments The Tax Reform Act of 1986 (Act) in four nuclear projects; the TMI-1, will affect the financial condition of the TMI 2 and Oyster Creek generating GPU System as it contains a lower > ; stations and the Forked River project. In corporate tax rate while eliminating ~ r recent years, the ability of electric utilities certain benefits such as investment tax to obtain adequate and timely recovery of credits (ITC's). The reduction in income their investments in, and operating costs taxes will result in a modest reduction in . l of, nuclear generating stations and - interest coverage ratios. The elimination associated replacement power costs has -
' ofITC's and reduced deferred taxes will, become more uncertain. In addition, result in a loss of sources of capital. These -
there has been a growing tendency of changes would have a greater impact on s 1
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i 23. e the GPU System should the construction tion of FAS 90. Net income increased in program be significantly expanded. See 1986 by $17.8 million or $.28 per share Note 1 to the financial statements, page and in 1985 by $20.6 million or $.32 per 37 for details on rate reductions resulting share. Income before extraordinary item from the Act. in 1984 increased by $25.7 million or 5.40 Inflation affects the GPU System in the per share. form ofincreased capital and operating Net income continues to be affected by costs. Although as a regulated utility the regulatory decisions to allow recovery of GPU System can expect to recover its the investments in TMI-2 and the increased financing and operating costs, it abandoned Forked River project but will be adversely affected by the without a return on the unamortized regulatory lag in recognizing those investments and to disallow a portion of increased costs. Oyster Creek operation and maintenance expenses. The lack of a return on these Results of0perations investments v/ill continue to have an Net income for 1986 was $205.2 . adverse impact on future earnings but in million or $3.26 per shar~e, as compared a declining amount as these investments to $117.1 million or $1.86 per share in are recovered. However, the 1985, as restated, and $154.2 million of implementation of FAS 90 will partially income before extraordinary item, or mitigate the future adverse impact of
$2.45 per share in 1984, as restated. return disallowances on reported The 1984 earnings include an unusual earnings.
credit of $29.8 million, after taxes, for the deferral of above-normal expense related 1986 versus 1985 to the outage of the Oyster Creek nuclear -The increase in 1986 net income of generating station. This deferral was $88.1 million over 1985 reflects the return permitted in a rate decision by the - ofTMI-l to rates in late 1985, a 4% NJBPU and is being recovered over 10 increase in kilowatt-hour sales and the years without a return on investment. effect of rate orders received in 1985 and - The net income for each period has' -.1986. Partially offsetting the earnings - been restated to' reflect the implementa- - r g
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24. l increase were higher operating and maintenance expenses. 1985 versus 1984 The decrease in 1985 net income of
$37.1 million compared to 1984 income before an extraordinary item, resulted primarily from higher operating and maintenance expenses in 1985, partially offset by rate increases granted in 1984 and 1985. Also,1984 earnings include an unusual credit of $29.8 million related to Oyster Creek expenses which is discussed above. For a discussion of the extraordinary item in 1984, see Note 3 to the financial statements, page 39.
For additional financial information, see Selected Financial Data on page 45.
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25. CONSOLID A TED FINA NCIA L S TA TEMENTS A ND NO TES TO THE I FINA NCIA L S TA TEMEN TS I Index Report ofAuditors 26. Consolidated FinancialStatements 27. Notes to Consolidated FinancialStatements 32. Selected FinancialData 45. Quarterly FinancialData 46. System Statistics 47. e W s- WN it-M i M- IN A 'M ~ b,
r j l 26. I REPOR T OF A UDITORS To the Board of Directors and Stockholders GeneralPublic Utilities Corporation Parsippany, NewJersey We have examined the consolidated balance sheets and (b) the recovery of the excess,if any, of amounts of General Public Utilities Corporation and Subsidiary which might be paid in connection with claims for Companies as of December 31,1986 and 1985 and the damages resulting from the accident over available related consolidated statements ofincome, retained insurance proceeds. earnings and changes in financial position for each of In our opinion, subject to the effects on the the three years in the period ended December 31, consolidated financial statements of such adjustments, 1986. Our examinations were made in accordance if any, as might have been requiced had the outcome of with generally accepted auditing standards and, the uncertainties discussed above been known, the accordingly, included such tests of the accounting aforementioned statements (pages 27 through 45) records and such other auditing procedures as we present fairly the consolidated financial position of considered necessary in the circumstances. General Public Utilities Corporation and Subsidiary As more fully discussed in Note I to Consolidated Companies at December 31,1986 and 1985 and the Financial Statements, the Corporation is unable to consolidated results of their operations and the determine the ultimate consequences of certain consolidated changes in their financial position for contingencies which have resulted from the accident at each of the three years in the period ended Unit No. 2 of the Three Mile Island Nuclear December 31,1986 in conformity with generally Generating Station (TMI-2) and the response of accepted accounting principles applied on a consistent rate regulatory authorities to that accident. Among basis, after restatement for the change, with which we the matters which remain unresolved are (a) the concur, in the method of accounting for their recovery of the cost to be incurred in connection with investments in TMI-2 and the Forked River nuclear the cleanup and eventual decommissioning of TM1-2 project as described in Note 3 to Consolidated from various funding sources including customers, Financial Statements. Coopers & Lybrand February 25,1987 1231 Avenue ofthe Americas . New York, New York 10020 1 a w u - _ _ - '---
27. I CONSOLID A TED S TA TEMENTS OF INCOME (Note 1) General Public Utilities Corporation and Subsidiary Companies in Thousands For the Years Ended December 31, 1986 1985* 1984* Operating Revenues $2,787,077 $2,869,509 $2,735,286 Operating Expenses: Fuel 350,966 432.341 445,012 Power purchased and interchanged, net 455,056 550,976 798,256 Deferral of energy costs, net (Note 2) 81,279 215,681 (137,132) Other operation and maintenance (Note 8) 854,688 769,418 715,289 Deferral of Oyster Creek operation & maintenance (Note 1) (55,306) Depreciation and amortization (Notes 2 & 3) 225,143 223,324 213,950 Amortization ofproperty losses (Note 2) 21,778 25.343 17,494 Taxes, other than income taxes (Note 8) 263,490 264,977 246,669 Total operating expenses 2,252,400 2,482,060 2,244,212 Operating income before income taxes 534,677 387,449 491,074 Income taxes (Notes 2 & 7) 180,452 114,990 172,528 Operating income 354,225 272,459 318,546 Other income and Deductions: Allowancefor otherfunds used during construction (Note 2) 16,186 8,923 5,117 Other income, net (Note 3) 41,101 45,683 48,825 income taxes on other income, net (Notes 2, 3 & 7) (16,153) (21,697) (23,299) Total other income and deductions 41,134 32,909 30,643 Income Before Interest Charges and Preferred Dividends 395,359 305,368 349,189 Interest Charges and Preferred Dividends: Interest on long-term debt 143,589 145,794 150,824 \ Other interest 17,547 12,118 11,296 Allowancefor borrowedfunds used during construction-credit (net of tax) (Note 2) (4,957) (8,402) (6,680) Income taxes attributable to the allowancefor borrowedfunds (Notes 2 & 7) (3,040) (1,219) (961) Preferred stock dividends ofsubsidiaries 36,973 39,971 - 40,507 l 1 Total interest charges and preferred dividends 190,112 188,262 194,986 - Income Before Extraordinary item 205,247 117,106 154,203 Estraordinary item Net of Taxes (Note 3) (12,600) Net income $ 205,247 5 117,106 $ 141,603 Earnings Per Average Share Before Extmordinary item $ 3.26 $ 1,86 $ _ 2.45 Extraordinary item Per Share (.20) Earnings Per Share $ 3,26 $ 1.86 ~$ 2.25 Average Common Shares outstanding 62,864 62,864 62.864 .
- Restated to reflect change in accounting standards, see Note 3.
The accompanying notes are an integralpart of the consolidatedfnancial statements, i- - _ _ .. _ _ _ _ j
28. I CONSOLIDA TED BA L A NCE SHEE TS (Note 1) General Public Utilities Corporation and Subsidiary Companies In Thousands December 31, 1986 1985* Assets Utility Plant (at original cost): In service $5,504,848 $5,096,555 Less, accumulated depreciation (Note 2) 1,701,293 1,564,325 Net 3,803,555 3.532.230 l Investment in Three Mile Island Unit 2 (Notes 2 & 3) 627,238 602,975 Less, accumulated depreciation and amortization (Notes 2 & 3) 328,445 289,698 Net 198,793 313,277 Construction work in progress 301,488 252,253 Property under capital leases, net (Note 11) 37,744 38,702 Heldforfuture use 28,190 28,536 Nuclearfuel, net of amortization (Note 2) 117,459 124,625 Nuclearfuel capitallease (Note 11) 55,158 50,473 Net utility plant 4,642,387 4,344 096 Investments: Otherphysicalproperty, net 1,961 2,641 Loans to non-apiliated mining companies 7,775 7, 775 Other, at cost 6,957 588 Totalinvestments 16,693 11,004 Current Assets: Cash 4,238 3,051 Temporary cash investments 60,040 121,594 Funds held in special depositsfor TMI cleanup 8,940 12,111 Special deposits 99,119 91,800 Accounts receivable: Customers, net 189,623 200,687 Other 21,365 15,102 Inventories, at average cost or less-Ma'erials and suppliesfor construction and operation 136,435 104.070 Fuei 54,799 68,255 Deferred income taxes (Notes 2 & 7) 101,146 60.324 Prepayments 12,002 18,293 Total current assets 687,707 695,287 Deferred Debits: Unamortized property losses (Notes 2 & 3) 174,355 188,733 Deferred costs-TMI-2 cleanup, net of recoveries 289,018 388,861
-Nuclearfuel disposalfee (Note 2) 59,061 64,990
-Oyster Creek outage, net 61,874 67,230 Deferred income taxes (Notes 2 & 7) 88,498 97,923 Other 66,077 71,800 Total deferred debits 738,883 879,537 Total Anets $6,085,670 $5,925,924
- Restated to reflect change in accounting standards, see Note 3.
The accompanying notes are an integralpart of the consolidatedfinancial statements. s
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29. l In Thousands December 31, 1986 1985* Liabilities and Capital Long-Term Debt, Capital Stock and Consolidated Surplus: Long-term debt (Note 5) $1,736,580 $1.816,311 Cumulative preferred stock (Note 6): With mandatory redemption 58.300 Without mandatory redemption, including premium 424,739 424.739 Common stock and consolidated surplus (Note 6): Common stock 157,229 157,229 Consolidated capital surplus 779,813 781,558 Less, capitalstock expense 18,056 18,056 Consolidated retained earnings 867,223 663.718
~
Total 1,786,209 1,584,449 Less, reacquired common stock 70 70 Total common stockholder equity 1,786,139 1,584,379 Total capitalization 3,947,458 3,883,729 Current Liabilities: Securities due within one year (Notes 5 & 6) 46,098 51,736 Notes payable to banks (Note 4) 44,248 Obligations under capitalleases (Note 11) 66,758 63,915 Accounts payable 241,833 212,911 Taxes accrued (Note 7) 141,700 136,142 Deferred energy credits (Note 2) 119,283 27,137 Interest accrued 42,868 39,650 Other 70,359 65,970 Total current liabilities 773,147 597,461 Deferred Credits and Other Liabilities: Deferred income taxes (Notes 2, 3 & 7) 606,912 557,896 Unamortized investment tax credits (Notes 2 & 7) 247,757 230,276 T3ff-2 cleanup costs 268,860 387,614 Deferred credits-nuclear accident: Cleanup revenues and statefunds held in escrow 5,933 6,841 Industryfunds held in escrow 5,039 7,322 Obligations under capitalleases (Note 11) 26,144 ' 25,260 ~ Nuclearfuel disposalfee (Note 2) 97,166 91,237 Reserve capacity (Note 2) 45,994 69,426 Other 61,260 68,842 - Total deferred credits and other liabilities 1,365,065 1,444,734 Commitments and Contingencies (Notes 1 & 7) Total Liabilities and Capital $6,085,670 55,925,924 M
Isa 1 CONSOLID A TED S TA TEMENTS OF CHA NG ES IN FINA NCIA L POSITION (Note 1) I General Public Utilities Corporation and Subsidiary Companies In Thousands For the Years Ended December 31, 1986 1985* 1984* Source of Funds: Operations-Income before extraordinary item $205,247 $117,106 $154,203 Principal non-cash charges (credits) to income: Depreciation and amortization (Notes 2 & 3) 279,833 279,109 245,953 , FAS 90 accretion (Note 3) (32,800) (38,200) (41,600) J investment tax credits, net (Notes 2 & 7) 17,481 77,914 35,763 Deferred income taxes, net (Notes 2 & 7) 15,920 (59,632) 133,601 AFUDC on mherfunds (Note 2) (16,186) (8,923) (5,117) Totalfrom operations 469,495 367,374 522,803 Extraordinary item, net of taxes (Note 3) (12,600) Extraordinary item (non-cash portion) 12,600 Long-term debt (Note 5) 59,500 80,300 25,500 increase (decrease) in bank borrowings (Note 4) 14,248 (95,000) 81,000 Decrease in funds heldfor retirement of bonds 27,000 Common stock 10,225 2,655 Deferred energy costs, net (Note 2) 81,279 215,681 (137,132) Sale of nuclearfuel(Note i1) 262 41,313 mpayment ofloans by non-affiliated mining companies 6,100 250 Decrease (increase) in other working capital items (a) 95,171 (45,804) (63,072) Oi'rer, net 7,137 (30,213) 23,852 Total source offunds $757,095 $549,976 $482,836 Application of Funds: Construction expenditures (excluding AFUDC on otherfunds) $496,569 $399,072 $306,264 Leased nuclearfuel (Note 11) 4,68S 50,473 Retirement or redemption oflong-term debt and preferred stock 213,498 88,242 112.030 Deferred costs-nuclear accident, net 18,911 16,124 2,425 Reserve capacity (Note 2) 23,432 (3,935) 6,811 Deferred costs-Oyster Creek outage 55,306 Total application offunds $757,095 $549,976 $482,836 (a) Decrease (increase) in components ofother working capital: Temporary cash investments $60,367 $(103.058) 523,730 Accounts receivable 4,801 5,022 (22,867) Funds held in special depositsfor TMI cleanup 3,1 71 19,591 (9,402) Special deposits (7,319) (54.414) (20,163) Inventories (18,909) 13,278 (45.094) Accounts payable 28,922 (15,931) (6,112) Taxes accrued 5,5S8 39,085 7,430 Obligations under nuclearfuel capitallease (Note 11) 4,685 50,473 Other, net 13,898 150 9,406 Total $ 95,174 $ (45,804) $(63,072)
- Restated to reflect change in accounting standards, see Note 3, The accompanying notes are an integralpart of the consolidatedfnancial statements.
31. I C O NS O LIDi1 TED S T/1 TEMEN TS OF R E TilINED Ei! R NING S (No t e 1) General Public Utilities Corporation and Subsidiary Companies In Thousands For the Years Ended December 31, 1986 1985* 1984* Balance, beginning ofyear, as previously reported $ 823,418 $ 726,912 5 578,654 Deduct, cumulative efect on prior years of retroactively applying FAS 90 (Note 3) 159,700 180,300 173,645 Balance, beginning ofyear, as adjusted 663,718 546,612 405,009 Add, net income 205,247 117,106 141,603 Deduct, other adjustments (Note 6) 1,742 - - Balance, end ofyear (Note 6) $ 867,223 $ 663,718 $ 546,612
- Restated to reflect change in accounting standards, see Note 3.
The accorrpanying notes are an integralpart of the consolidatedjinancialstatements. l I 1
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32. I NO TES TO rate proceedings, but there can be no assurance of the CONSOLID A TED extent to which these costs will be recoverable. The Corporation is unable to predict what effect, if FINA NCI A L any, the accident at the Chernobyl nuclear power plant in the Soviet Union or any other nuclear power S TA TEMENTS plant experience might have on the licensing, operation or modifications to nuclear power plants in the United States.
- 1. Commitments and Contingencies TMI-2.-
l The TMI-2 accident resulted in significant damage Nuc/ car Facilities to the TMI-2 system and components, contamination The Corporation and its subsidiaries have made of major portions of the plant and a release of investments in four major nuclear projects-Three radioactivity to the environment which published Mile Island generating station Unit No. 2 (TMI-2) reports of governmental agencies indicated did not which is now being decontaminated following the constitute a significant public health or safety hazard. March 28,1979 nuclear accident, Three Mile Island Accident Cleanup Cleanup efforts at TMI-2 generating station Unit No.1 (TMI-1) and the Oyster continue to progress. The schedule for the defueling of Creek generating station, both of which are operation- the damaged reactor has fallen behind prior al facilities, and the cancelled Forked River project, all expectations due to impaired visibility of the reactor of which are discussed below. TMI-l and TMI-2 are water. Efforts to solve the visibility problem appear to jointly owned by the operating subsidiaries as follows: have been successful. Nevertheless, defueling, Jersey Central Power & Light Company (JCP&L), previously scheduled for completion in 1987, may 25%; Metropolitan Edison Company (Met-Ed),50%; extend into 1988. Management believes that the and Pennsylvania Electric Company (Penelec),25%. cleanup program for TMI-2 will be completed in 1988 Oyster Creek and Forked River are owned by JCP&L. at a cost of approximately $1 billion (including JCP&L, Met-Ed and Penelee own all the common escalation). The cleanup estimate is subject to stock of Saxton Nuclear Experimental Corporation continuing uncertainties, including (a) regulatory (Saxton) .is follows: JCP&L,44%; Met Ed,32%; and requirements, (b) the full scope of the technical Pene!ee,24%. Saxton owned and operated a small challenges in decontaminating the reactor,- (c) the demonstration reactor which was remosed from serv
- resolution of criteria for maintaining the plant pending ice in 1972 and is in a mothballed state awaiting de- its ultimate disposition, (d) the effect of government commissioning. These nuclear projects are operated regulations on the issue of waste disposal and (e) the and maintained by GPU Nuclear Corporation continued availability of funds.
(GPUN). As of December 31,1986, $731 million has been In recent years, the operating costs and capital spent on the cleanup. The total expenditures and - requirements for nuclear plants have been increasing - remaining estimated costs are summarized as follows: and are becommg less predictable. The ability of electric utilities to obtain adequate and timely (In Millions) . recovery of their investments in nuclear projects has j, also become more unceitain. Sumlarly, the recovery of the carrying costs associated with investments in Fapenditures to date: nuclear facilities, their operating and maintenance 645' Deferred expenses, and the costs of any needed replacement ' Charged to maintenance expense 47 power has become increasingly subject to question. In Capital additions to plant -39 addition, the subsidiaries are not collecting revenues for the decommissioning of TMI 2 and do not believe Total expenditures 73 1 that the current level of revenues being collected for
. the decommissioning of their of her nuclear plants will Remaining estimated costs 5 169 be adequate to cover actual future costs (see Nuclear..
Plant Decommissioning Costs in Note 2).-It is ~
; For the balance of the estimated costs of $269 management's intent to seek to recover such costs in .million, the GPU System has obtained arrangements A
- 4 t' _ s 5
33.
) :
i ! I for funding $220 million of the remaining cleanup the depreciated original cost of the facility and nuclear effort, some of which is dependent on voluntary ! fuelin the reactor at the time of the accident and j contributions or yearly authorizations. These i certain capital additions made subsequent thereto. j remaining estimated costs are expected to be funded as l Met-Ed and Penelee are presently collecting annual ; follows: revenues of approximately $25 million and $12 million, respectively, w hich will be sufficient to
. (In Millions) recover their remaining investments oser the next I l seven years. The NJBPU has authorized JCP&L to i Customers S 84 l recover its investment over an 18-year paiod l Federalgovernment 22 Invest r-owned urdines M beginning in 1989. The PaPUC and NJBPU have not Other 7 provided revenues for a return on the unamortized investments in TMI-2. (See Note 3.)
Total 220 In restigations: Investigations and inquiries j Advances to beprovided concerning the nature, causes and consequences of the
- by GPUSystem 49 TMI-2 accident have generally been completed but Remaining estimated costs $269 continue to provide a potential for further
! uncertainties. The NRC imposed, and the GPU
! System has paid, civil penalties with respect to the l Upon completion of the cleanup program, GPUN TMI-2 accident and its aftermath. The NRC has
' intends to implement a Post-Defueling Monitored stated that, depending upon the findings of continuing Storage (PDMS) plan. Under this plan, which is l investigations, it may take additional enforcement i subject to approval by the Nuclear Regulatory [ action.
Commission (NRC), radioactive materials will have In 1983, a Federalindictment charged Met Ed with l i been largely removed and conditions will have been ' criminal misconduct in connection with the perform-established to maintain a safe, stable and secure ance ofleak rate testing at TMI-2 prior to the acci-facility which will pose no danger to the public health dent. In 1984, Met Ed pleaded guilty to one count or safety. The PDMS plan anticipates continued charging that it operated TMI-2 with an inaccurate annual costs of approximately SS million commencing and unreliable leak rate testing procedure, and no con-in 1989 w hich the subsidiaries will seek to obtain test to six other regulatory counts. The remaining four through rates. The GPU System anticipates providing counts were dismissed. In 1985, the NRC instituted a advances to be used for cleanup expenditures and new proceeding to consider and determine the involve-annual costs of the PDMS plan in anticipation of ment of certain individuals possibly involved in the future reimbursement. alleged falsification ofleak rate testing at TMI-2. Pub-Management believes that any costs incurred by the lic hearings on this matter were held before an NRC subsidiaries associated with cleanup, PDMS and the panel in 1986 and a decision is pending. In September eventual decommissioning of TMI-2 for which they do 1985, an investigation commissioned by GPUN con-not receive financial assistance or reimbursement from firmed that (a)the test method was inaccurate, the Federal government, the utility industry, suppliers (b)certain company personnel did not follow com-or others, should be recoserable through the pany testing procedures, (c) test results were viewed as ratemaking process. Management intends to seek unreliable and unnecessary for safe operation by cer-recovery of such costs, but recognizes that this is not tain company personnel, (d) actual leakage infrequent- l assured. ly exceeded the operating license limit and (e) upper Repair and Restoration of DfI-2: A final decision management was not aware of or involved in these concerning the future use of TMI-2 will depend upon practices. an evaluation of the economic appropriateness as well The Corporation and its subsidiaries are unable to as the licensing and technical feasibility of restoration. determine the final outcome or consequences of these Accountingfor the Investment in DII-2: The and other investigations. Pennsylvania Public Utility Commission (PaPUC) Litigation and Claims: As a result of the accident and the New Jersey Board of Public Utilities and its aftermath, claims have been asserted against (NJBPU) have authorized revenues fer amortization the Corporation,its subsidiaries and certain of their of the subsidiaries' investments in TMI-2 based upon officers and directors. The claims include (a)in-
l 34. dividual claims as well as purported and actual class returned to operation in October 1985 and to base actions for alleged personal and property damages (in- rates in November 1985. cluding claims for punitive damages) resulting from In a November 1985 rate order, the NJ13PU the accident and (b) suits to enjoin the future opera- directed that a proceeding begin immediately "to tion of TMI-2. investigate the operation of the TMI-l facility and to Questions have not yet been resolved as to w hether investigate the setting of performance standards for certain of these claims, that are material in amount the Company's nuclear stations" (TMI-l and Oyster and arise out of both the accident itself and the Creek). In that proceeding, the NJIlPU StafTand the cleanup and decontamination efforts, are (a) subject to Public Advocate have proposed performance the limitation ofliability set by the Price-Anderson standards for JCP&l 's nuclear stations which, if Act and (b)outside the insurance coverage provided adopted, could result in ratemaking disallowances of pursuant to the Price-Anderson Act. In 1985, a U.S. significant replacement energy costs. There can be no District Court held that punitive damages are assurance as to the outcome of this proceeding. available in actions under the Price-Anderson Act. During 1986, reinspections were made of the steam The decision was appealed to the U.S. Court of generators for cracks in the generator tubes which had Appeals for the Third Circuit, which reversed the previously been inspected and extensively repaired in decision on jurisdictional grounds. (See Insurance for prior years. As a result of these tests, a smali number a discussion of the coverage of these claims under the of tubes were plugged and removed from service. The Price-Anderson Act.) plugged tubes, along with those previously plugged, In 1985, the Corporation's insurance carriers settled are not expected to limit TMI-l's power output. 282 personal injury claims (including related claims flowever, there is some potential in the future that for punitive damages) commenced as a result of the flow blockage from corrosion deposits on the TMI-2 accident. The settlement agreements provided secondary, non-nuclear side of the generators could for payment by the insurance companies of an from time to time prevent TMI-1 from operating at aggregate of $14.3 million in settlement of all claims 100'7c ofits rated power capacity until corrective brought by these plaintiffs. Additional complaints action is taken. GPUN has not yet _determin-d the have been filed against the Corporation and its extent of needed corrective action, the length of time subsidiaries on behalf of over 2,100 plaintiffs claiming such action would require, or its cost. TMI-I was shut personalinjuries (including claims for punitive down on October 31,1986 for a scheduled refueling damages) as a result of the TMI-2 accident and its and plant modification outage which is expected to aftermath. The insurance carriers have assumed the last approximately five months. defense of these actions, substantially all of which are On February 10,1987, the Union of Concerned pending in the Pennsylvania Court of Common Pleas. Scientists and others filed a petition with the NRC A trial of twelve of these cases is scheduled to begin in requesting, among other things, that the NRC suspend the fall of 1987. the operating license for all Babcock & Wilcox design A group of 21 tourist-related businesses has filed reactors, including TMI-1. The petition alleges that, suit seeking to recover for loss of business and profits based upon their operating history, these plants are allegedly caused by the TMI-2 accident. This matter is inherently more dangerous than other reactors and F ling in the Pennsylvania Court of Common Pleas. requests that the NRC hold public hearings to y gf,. determine the corrective actions necessary to protect At December 31,1986, the subsidiaries' total the public health and safety. There can be no assurance as to the outcome of this matter. investment in TMI-1, net of depreciation, was $503 million, excluding nuclear fuel. Oyster Creek: . . . TMI-1, which is adjacent to TMI-2, was out of At December 31,1986, JCP&L's total investment in service for a scheduled refueling at the time of the the Oyster Creek nuclear generating station, net of TMI-2 accident. The NRC subsequently ordered that depreciation, was $505 million, excluding nuclear fuel. TMI-l remain shut down until it authorized resump- : The Oyster Creek nuclear generating station was tion of operation. After extensive hearings, the NRC . taken out of service for scheduled repairs, mainte - authorized TMI I to restart, and the plant was nance and refueling in February 1983 and returned to
-- service in November 1984. Certain outage related s .m Yhs -+ e M ~I I ~ d Y
f- 3
l 35. costs totaling 576 million were deferred. JCP&L is col- Insurance lecting revenues to recover the deferral (without a re- The Corporation and its subsidiaries have obtained turn on the unamortized balance) over a period of 10 the maximum amount ofinsurance available to them years pursuant to a June 1986 rate order. At Decem- to insure their nuclear plants for (a) property damage ber 31,1986, the unamortized balance of these de- (other than certain flood and earthquake coverages) ferred costs was $62 million. The NJBPU issued an and decontamination, (b) liability to third parties, and order in December 1984 initiating a comprehensive (c) incremental replacement power costs, as described review of all costs incurred by JCP&L for the capital below. The Corporation and its subsidiaries have also additions, operating and maintenance expenses and re- obtained insurance for their other operations and placement power costs associated with the outage. The facilities including coverage for property damage, NJBPU has indicated that, to the extent any such liability to employees and third parties and loss of use costs are determined to have been unreasonably in- and occupancy (primarily incremental replacement curred, they may not be recoverable through rates. power costs). However, some potential losses or This matter is still pending. liabilities may not be insurable or the amount of Oyster Creek was taken out of service in April 1986 insurance carried may not be sufficient to meet for scheduled maintenance and refueling. Inspections potential losses and liabilities, including liabilities of the steel shell that houses the reactor vessel relating to the release or escape of hazardous indicated that a portion of the shell's wallis of a substances into the environment. There is also no thickness less than expected. Tests indicate that, assurance that the Corporation and its subsidiaries although some corrosion has occurred, the wall meets will be able to maintain insurance coverages at their design requirements and the plant is safe to operate. present levels. Under those circumstances, such losses GPUN will test for additional corrosion by September or liabilities, unless allowed in ratemaking, could have 30,1987 and evaluate methods for ensuring the a material adverse effect on the financial condition of continued integrity of the reactor containment by the Corporation and its subsidiaries. halting corrosion and making future repairs, if neded. The primary property damage and decontamination After a review by the NRC, the plant was restarted in insurance for the TMI site, in the amount of 5500 December 1986. million, provides full coverage for TMI l but, with in 1985, JCP&L expensed $97 million and in 1980, regard to TMI-2, only for possible damage which expensed $123 million (of which approximately $28 might result from a non-nuclear accident at that unit million is outage related) of Oyster Creek operation and for cross contamination from an accident at and maintenance expense. In June 1986, the NJBPU TMI-l. This insurance is provided by American approved an annual retail base rate increase reflecting Nuclear Insurers / Mutual Atomic Energy Liability a level of $72.5 million for Oyster Creek operation and Underwriters (ANI/MAELU). maintenance expense. In December 1986, the NJBPU The primary property damage and decontamination denied JCP&L's request to continue that rate case insurance for the Oyster Creek station is also 5500 docket to permit it to supplement the record regarding million. This coverage is provided by Nuclear Mutual the reasonableness of the level of actual expenses. The Limited (NML), a mutualinsurance company. As a order allows JCP&L to argue the reasonableness of member of NML, JCP&L is subject to annual such expenses in its next base rate case. assessments of up to ten times its annual premium, or approximately 520.4 million, in the event that losses as forked River a result of an accident at a nuclear plant of any NJBPU rate orders permit JCP&L to recover the member company exceed the accumulated funds major portion ofits investment in the abandoned available to NML Forked River nuclear project over 25 years. JCP&L is Additional nuclear property damage insurance of ~ presently collecting annual revenues of approximately
$730 million for losses in excess of $500 million is $12.4 million (decreasing to $11.8 million in 1996) carried by the subsidiaries. This excess insurance is which will be sufficient to recover its investment by the Provided by Nuclear Electric Insurance Limited year 2006. The NJBPU has not provided revenues for (NEIL), a mutualinsurance company, and ANI/
a return on the unamortized balance. (See Amortiza-tion Pol;cies under Note 2, and Note 3.) MAELU. The msurance provides that expenses for s 3
,sp
,( .,
,, - -4 9 4 # # _
- m. 1 % J
l 36. : b l l l decontamination and debris removal shall be paid stat %ns is provided to the subsidiaries as members of j before any payments for claims relating to property NEIL. Such coverage under NEIL provides for a damage. Under the NEIL portion of this coverage, the weekh indemnity of $1.7 million and $2.4 million for subsidiaries are subject to annual assessments of up to Oyster Creek and TMI-1, respectively, for the { 7.5 times their annual premium, or approximately l incremental cost of replacement power beginning 26
$16.1 million annually, in the event that losses as a f weeks after an outage caused by an accident. The result of an accident at a nuclear plant of any member I policies limit covered outages to 52 weeks at 1009c of company exceed the accumulated funds asailable to ; the weekly indemnity and 52 additional weeks at 50%
NEIL. of the pekly indemnity. As members of NEIL, the Liability coverage for nuclear incidents falls under subsiduries are subject to assessments of up to five the Price-Anderson Amendments to the Atomic l times their annual premium, or approximately $7.2 Energy Act which presently limit liability to third million annually, in the event that losses exceed the 4 parties to $700 million for each nuclear incident. accumulated funds available to NEIL. Coverage of the first $160 million of such liability is The Corporation and its subsidiaries are also subject provided by private insurance. The remaining $540 to assessments for directors' and officers' liability and million is provided by assessments of up to $5 million general liability insurance policies which could total per nuclear reactor per incident, but not more than approximately $9.2 million annually. In the aggregate,
$10 million per reactor in any calendar year. Based on the GPU System is subject to various potential the ow nership of three nuclear reactors, the assessments by insurers, as described above, which subsidiaries
- maximum potential assessment under could total approximately $82.9 million annually.
these provisions would be $15 million per incident but not more than $30 million per calendar year for claims Other Commitments and Contingencies covered by this insurance. The current Price- The subsidiaries' construction programs, which Anderson Act is scheduled to expire in August 1987. extend over several years, contemplate expenditures of It is anticipated that legislation to amend the Price- approximately $516 million during 1987. In Anderson Act including proposals to substantially connection with these construction programs, the increase, modify or eliminate the limitation on liability subsidiaries have incurred substantial commitments. pn, visions will be introduced in Congress. It is In the normal course of the operation of their uncertain what indemnity and limitation on liability businesses, the subsidiaries are from time to time provisions would remain in effect if the Price- involved in disputes, claims, and, in some cases, as Anderson Act is not extended beyond its expiration defendants in litigation with contractors, vendors, and date, other suppliers of equipment and services. The $160 million of coverage prosided by private The subsidiaries have entered into long-term insurance for liability to third parties, referred to contracts with non-affiliated mining companies for the above, was in force only in the amount of $140 million purchase of coal for certain generating stations in at the time of the TMI-2 accident. In view of the total which they have ownership interests. The contracts, of claim payments and expenscs to date (approximate. which expire between 2001 and the end of the ly $50 million), the number and nature of additional expected service lives of the generating stations, claims that have been filed and potential future claims, require the purchase of either fixed or minimum there is a possibility that the $140 million of coverage amounts of the stations' coal requirements. The price may be exceeded. If payments on account of such of the coalis determined by formulas providing for the claims exceed the $140 million of coverage, it would recovery by the mining companies of their costs of be necessary to require assessments (as described in production. Under one of these contracts, the price of the preceding paragraph) against those utilities (in- coal is based on escalation ofindexed cost cluding the subsidiaries with respect to three reactors) components. The subsidiaries
- share of the cost of coal who were nuclear reactor licensees at the time of the purchased under these agreements is expected to TMI 2 accident. aggregate $101 million for 1987.
Insurance coverage for incremental replacement The subsidiaries have entered into agreements with power costs resulting from an accidental outage at other utilities for the purchase of approximately 2,385 their Oyster Creek and TMI-l nuclear generating megawatts (MW) of capacity and energy for various
% , m ~
l l l 37. I 1 l
\ l periods through 1999. Payments pursuant to these Met-Ed and Penelee to reduce annual retail base rates 1 agreements are estimated to aggregate $354 million for by $8.7 million and $11 million, respectively,in 1987 ,
1987. The price of the energy purchased under the as a result of the Act. The settlements further provide agreements is determined by contracts, w hich have for decreases of $8.7 million and $12.4 million for been accepted by the Federal Energy Regulatory Met-Ed and Penelec, respectively, on January 1,1988.
; Commission, providing generally for recovery by the On January 28,1987, JCP&L filed a petition with j sellers of their costs. Other possible long-term j the NJ13PU for a decrease of approximately $32 purchases are the subject of pending negotiations. { million annually in its levelized energy adjustment The Commonwealth of Pennsylvania has assessed l clause charges.
JCP& L taxes of $12 million for the years 1980 l On February 27,1987, Met Ed and Penelec filed through 1985 (plus interest which as of December 31, l ECR's with the PaPUC reflecting proposed annual 1986 approximates $5 million) under the Publie j decreases of $22.5 million and $36.3 million, Utility Realty Tax Act based upon JCP&L's I respectisely. ownership interest in the TMI station. JCP&L has not Claims for civil penalties have been asserted against l recorded a liability for these taxes and is contesting the JCP&L and Penelee under Section 505(a) of the
; assessments. Federal Clean Water Act alleging violations of the ! On March 18,1986, the Pennsylvania Consumer effluent discharge permits for certain of the l Advocate (Consumer Advocate) filed complaints companies' generating stations. The subsidiaries are against the Energy Cost Rates (ECR) of a number of also defendants in actions, including purported class t
electric utilities, including those of Met-Ed and actions, seeking compensatory and punitive damages Penelee. In the cases of Met-Ed and Penelec, the for alleged unlawful employment practices. There can Consumer Advocate has asserted that the ECR's may te no assurance as to the outcome of these be unjust and unreasonablein view of thelow capacity proceedings. factor projected for TMI-l during the period. In i As a result of existing and proposed legislation and addition, the Consumer Advocate has taken the regulations dealing with environmental matters position that any problems encountered with the including, among other things, legislation regarding i TMI-l steam generators are due to management acid rain, air quality regulations relating to stack i imprudence and that replacement power costs height requirements and storage and disposal of solid associated with the recent TMI-l outage to inspect the and hazardous wastes, the subsidiaries may be unit's steam generators, and any other related outages, required to incur substantial additional costs to modify or replace existing and proposed equipment j should not be borne by customers. The Consumer i Advocate has also stated that certain historical and and to improve or clean up waste disposal sites l prospectise fossil fuel prices may be excessive and currently or formerly used by them, including
! should be insestigated by the PaPUC. Met-Ed and previously owned coal gasification sites. The Penelee have tiled statements denying these subsidiaries are unable to estimate the full extent of complaints. There can be no assurance as to the such possible costs (which may be material and may outcome of these proceedings. not be covered by insurance) or the impact thereof on The PaPUC approved settlement agreements future operations. The subsidiaries have been named granting annual retail base rate increases of $18 by the U.S. Environmental Protection Agency as million and $5 million to Met-Ed and Penelee, potentially responsible parties and as third-party respectively, effective November 26,1986. As part of defendants in related lawsuits and may be liable for the settlement, Penelec's ECR was reduced by $16.5 contributing to the costs of cleaning up certain million, annually. The agreements provide that the hazardous waste disposal sites. There can be no companies will not file new general base rate requests assurance as to the outcome of these proceedings.
before July 1987. In December 1986, the NJilPU approved JCP&L's
- 2. Summary of Signifcant Accounting Policies request to reduce its annual retail base rates by $23.3 l
million as a result of the Federal Tax Reform Act of General 1986 ( Act), effective January 1,1987. In January The consolidated financial statements include the 1987, the PaPUC approved settlement agreements for accounts of all subsidiaries.
l l l 38. Utility Plant Depreciation
! It is the general policy of the subsidiaries to record { The subsidiaries provide for depreciation at annual additions to utility plant at cost, w hich includes l rates determined and resised periodically, on the basis material, labor, overhead and an allowance for funds ! of studies, to be sufficient to depreciate the oiiginal used during construction. The cost of current repairs { cost of depreciable property over estimated remaining and minor replacements is charged to appropriate ! service lives, which are generally longer than those operating and maintenance expense and clearing l employed for tax purposes. As a consequence of accounts and the cost of renewals is capitalized. The licensing, environmental and other requirements for original cost of utility plant retired, or otherwise nuclear and non-nuclear facilities, substantial disposed of, is charged to accumulated depreciation. , additions to facilities may be required relatively late in I the expected service lives of such facilities. Current Operating Revenues l depreciation allowance methodology for rate Resenues are generally recorded on the basis of l regulatory purposes may not make adequate billings rendered. l provisions for the recovery of such future investments.
It is management's intent to seek to recover such costs Deferred Energy Costs in rate proceedings, but there can be no assurance of l Energy costs are recognized in the period in w hieh i the extent to w hich these costs will be recoverable. l the related energy clause resenues are billed. l The subsidiaries use depreciation rates which, on an l aggregate composite basis, resulted in an approximate Reserve Capacity Credit annual rate of 3.40%,3.33% and 3.28% for the years During the period from April 1981 to October 1985, 1986,1985 and 1984, respectively. l , l the Pennsylvania subsidiaries recognized a charge to l 1 current expense equivalent to the revenues prosided efmortization Policies by the PaPUC for possible future reserve capacity Nuc/ car Fuel: Nuclear fuel is amoitized on a unit of payments to other members of the Pennsyl ania-New production basis. Rates are determined and l Jersey-Maryland Interconnection. Pursuant to rate periodically revised to amortize the cost over the l orders received in October 1985, the annual provision useful life. j for such payments was eliminated and the l Property Losses: Property losses are amortized and accumulated reserve is being returned to customers recovered through rates as prescribed by the NJBPU oser a period which will expire about September 1988. and the PaPUC. The total amount of unamortized property lesses at December 31,1986 was $174 illtowancejbr Funds Used During Construction (ilFUDC) million, before taxes, of which $156 million related to The Uniform System of Accounts prosides for the abandoned Forked River project. No revenues are AFUDC which is defmed as the net cost, during the being provided for a return on the unamortized period of construction, of borrowed funds used for balances. (See Note 3.) construction purposes and a reasonable rate on other TMI-2 /nrestment: See Accounting for the Investment funds when so used. While AFUDC results in a in TMI-2 under Note l, and Note 3. current increase in utility plant to be recognized for ratemaking purposes and represents current earnings, Nuclear Plant Decommissioning Costs it is not an item of current cash income until the The subsidiaries, in accordance with rate related plant is depreciated or amortized. determinaticas, are charging to expense and either To the extent permitted in the ratemaking crediting to reserves or funding amounts intended to proceedings of the operating subsidiaries, the income provide, over their remaining service lives, for the cost tax reductions associated with the interest component of decommissioning the TMI-l and Oyster Creek of AFUDC have been alhicated to reduce interest nuclear plants at the end of their useful lives. The charges and, correspondingly, have not reduced operating subsidiaries are not now collecting revenues income taxes charged to operating expenses. Pursuant for the decommissioning of TMI-2 (the costs for to rate orders, the subsidiaries employ net of tax w hich are expected to be substantial) and the estimate accrual rates for AFUDC. On an aggregate composite of the cost to cleanup TMI-2 does not include any basis, the annual rates utilized to capitalize AFUDC amount for demmmissioning. were 9.75%,10.67% and 10.02% for the years 1986, The subsidiaries believe that the current level of 1985 rid 1984, respectively. revenues being collected for nu4:ar plant
E 39. 1 i l l r decommissioning expense will not be adequate to The total liability including interest at December 31, coser actual future costs. The subsidiaries beliese that ; 1986, all of which relates to spent nuclear fuel from additional expenditures above the levels currently l nuclear generation through April 6,1983, amounts to being collected should be recoverable through the t $97 million. As the actualliability under these
! ratemaking process. i contracts is substantially in excess of the amount l In a 1985 proposed rulemaking, the NRC assumed ! recovered to date from ratepayers, the subsidiaries j that, in the absence of a site specific study, an amount have reflected such excess of $59 million at December i of $100 million per plant, in 1984 dollars, would be ! 31,1986 as deferred costs. The rates presently charged I required to fund decommissioning costs. If the NRC ,
to customers recognize these levels of costs, plus rule becomes efTective, the operating subsidiaries ! interest, and provide for collection over eight years for I would have to fund decommissioning costs of $100 Niet-Ed and Penelee and fourteen years for JCP&L. million per plant unless site specific studies determined { The subsidiaries are collecting 1 mill per kilowatt-l otherwise. In rate cases decided or settled in 1986, the l hour from their customers for spent nuclear fuel operating subsidiaries requested resenues for decommissioning Oyster Creek and TN1I-l of $100 !' disposal subsequent costs resulting to April from amounts 6,1983. These nuclearare generation million adjusted for inflation since 1984. The j remitted quarterly to the DOE. l subsidiaries currently are collecting less than this l l amount. Income Taxes In its June 1986 rate order, the NJBPU allowed The Corporation and its subsidiaries file JCP&L to collect revenues for decommissioning consolidated Federalincome tax returns and all Oyster Creek at a level of $56.2 million (representing participants arejointly and severally liable for the full the previous level allowed plus inflation), assuming in- : amount of any tax, including penalties and interest, place entombment. JCP&L is collecting revenues j which may be assessed against the group. based on an estimate of $15 million for its share of j Deferred income taxes, which result primarily from TN11-1 total decommissioning expenses ($60 million), j liberalized depreciation methods, deferral of energy assuming in-place entombment. Niet-Ed and Penelec ' costs and abandonment losses, are prosided for are collecting revenues based on an estimate of $19 ! differences between book and taxable income to the million and $9 million, respectively, for their share of l extent permitted for ratemaking purposes (see Note TN11-1 total decommissioning expenses. These revenue ! 7). Investment tax credits (ITC) are being amortized levels for Niet-Ed and Penelee are based on the cost of over the estimated service lives of the related facilities. decommissioning only the radioactive components of The cumulative net amount ofincome tax timing TN11-1 ($38 million). differences, primarily due to depreciation, for which For the Saxton facility, the subsidiaries are funding deferred income taxes have not been provided a trust for decommissioning in accordance with rate ,l approximates $630 million at December 31,1986. It is determinations. Current estimates for ratemaking i expected that future revenues will be provided for determinations are $5.7 million, $2.0 million and $1.5 l such taxes as they become payable. million for JCP&L's, Niet-Ed's and Penelee's shares, . respectively. These estimates assume dismantlement; 3. <tecounts.ng UnderI..snancsalitecounting Standards Board Statement No. 90 how ever, for Niet-Ed and Penelee, they are based only In December 1986, the Financial Accounting on decomnu.ssiomng of the radioactive components. A recent site si,ecific study estimates a cost of Standards Board (FASB) issued Statement of Financial Accounting Standards No. 90 (FAS 90), approximately $13 million. During 1987, GPUN plans . to rfo Regulated Enterpri countm r econtamination work at an estimated cost Although the statement is effective for fiscal years beginning after December 15,1987, the FASB has encouraged, and the Corporation and its subsidiaries The subsidiaries are providing for estimated future hve elected, implementation of FAS 90 in 1986 by handling costs for spent nuclear fuel at Oyster Creek restating their financial statements for prior fiscal and TN11 1 m accordance with the Nuclear Waste Policy Act of 1982. The subsidiaries entered int plementation of FAS 90 requires that when contracts in June 1983 with the U.S. Department of abandonment of an operating asset or asset under Energy (DOE) for the disposal of spent nuclear fuel. construction becomes probable, the present value of
l l l 40. the estimated future revenues expected to be provided <f djustments Incorporated In Balance Sheets to recover the cost of that asset should be reported as a Forked separate asset. Any excess of the recorded cost of the (in Millions) TMI-2 River Total asset over that present value shall be recognized as a
<fs ofDecember 31.1986 loss. During the recovery period, recorded losses are returned to income, in declining amounts. Balance ofinrestment The Corporation and its subsidiaries have before F<fS 90 $468.4 S249.0 Present value 198.8 155.7 determined that FAS 90 applies to the investments in TMI-2 and Forked River and losses have been Xct 169.6 93.3 recognized in 1979 and 1980, respectively. Deferred tax efect (78.1) (42.9)
Additionally, a loss has been recognized in 1984 for Reduction ofretained the reduction in the present value of the Forked River earnings S 91.5 $ 50.4 $/4/.9 investment as a result of a 1984 NJBPU order extending the Forked River recovery period. <fs ofDecember 31,1985: These losses, which are a direct or indirect result of Balance ofinrestment the accident at TMI-2, are considered to be $508.3 5265.6 before F<fS 90 extraordinary items and total 5316 million, net of Present value 313.3 164.9 taxes (1979-5227 million; 1980-$77 million: Vet 195.0 100.7 1984-512 million, which are net of related income Deferred tax efect (89. 7) (46.3) tax credits of $193 million; $66 million; and $10 million, respectively). Depreciation expense of $19.8 Reduction ofretained million (which is net of $13.3 million of related earnings $105.3 $ 54.4 $159.7 income tax credits) recorded by JCP&L for TMI-2 between April 1979, and November 1984, and the 4. Short-Term Borrowing <f rrangements eventual reversal of such accruals during 1984 as an In October 1986, the Corporation and its extraordinary item have been eliminated from the subsidiaries entered into a new Revolving Credit respective financial statements. Agreement (Credit Agreement) with a consortium of Following is a summary of the results of banks. The Credit Agreement, which will expire on implementing FAS 90 on the Corporation's April 1,1989, permits total borrowings of $110 Consolidated Statements of Income and Consolidated million, with a $20 million sublimit applicable to the Balance Sheets as presented in this Annual Report: Corporation. The notes issued under the Credit <idjustments incorporated in income Statements ^E'""'"' * " ' " ' ' ' "' '*' 0 *" ' Citibank's Alternate Base Rate (prime rate), a (In Millions except Per certificate of deposit rate or a Eurodollar rate. Notes Share Data) Increase /(Decrease) issued under the Credit Agreement are subject to 1936 1985 1984 various covenants and acceleration under certain Operating Income $- $- S 3.3 conditioas, including the failure to satisfy a common Other income, net J2.8 38.2 41.6 equity ratio requirement. Income taxes on other The Corporation and its subsidiaries also have income, net (15.0) (17.6) (19.2) informal bank lines of credit. Borrowings under these lines of credit generally bear interest based on the Income Before Extraordinary Item 17.8 2G6 25.7 Prime rate or money market rates and provide for Extraordinary Item, Net of various compensation requirements. Taxes - - (32.4) Net income $ 17.8 $ 2G6 $ (6.7) Earnings PerShare Before Extraordinary Item $ .28 $ .32 5 .40 Estraonlinaryitem Per Share -. -.
' (.51)_
Earnings.PerShare $ ' .28 $ .32 $ (.11)
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41. S. Long-Term Debt PreferredStock At December 31,1986 and 1985, the Corporation's At December 31,1986, the Corporation's subsidiaries had the following issues of cumulative subsidiaries had long-term debt outstanding, as preferred stock outstanding: follows: Shares Stated Value (In Thousands) Interest Rates Outstanding (In Thousands) 4% to 6% to 9% to Series 1986 1985 1986 1985 Maturities 5%% 8%% 12 % Total Subject to mandatory First mortgage bonds: redemption: 1987-1996 $249,207 $ 50,701 $ 31,834 $ 331,742 10.88 %-13.50 % - 636,500 $ - $ 63,650 1997-2006 - 526,286 366,241 892,527 Due within one 2007-2016 - 183,519 144,950 328,469 year - (53,500) - (5,350) Total $249,207 $_760,506_$5_43,025 1,552,738 Total _ _583,000 $ _
- $ 58,300 Amounts due within oneyear (42,641)
Total 1,51G,097 a o mandatory redemption: Debentures: 3. 70%- 1987-1996 $ 33,074 5 61,600 517,000 111,674 7,ggg j,323,9j2 j,333,913 $j32,39j $j32,39j 1997-1998 - 74,560 - 74,560 8.00%- Total $ 33,074 $136,160 $ 17,000 186,234 9.36 % S,460,000 5,460,000 291,000 291,000 Amounts due within oneyear (2.114) Total 6,783,912 6,783,912 423,391 423,391 Total 184,120 Premium 1,348 1.348 Otherlong-term debt 47,653 Total $424,739 $424,739 Other current obligations (1,343) Unamortized net discount (3,94 7) If dividends on the preferred stock of any subsidiary Total $1.736,580 are in arrears in an amount equal to the annual dividend, the holders of preferred stock, voting as a class, are entitled to elect a majority of the board of For the years 1987,1988,1989,1990 and 1991, the directors of that subsidiary until all dividends in subsidiaries have long-term debt maturities, including arrears have been paid. No redemptions of preferred cash sinking fund requirements, of $46 million, $57 stock may be made unless dividends on all of that million,541 million, $67 million and $25 million, subsidiary's preferred stock for all past quarterly I respectively. dividend periods have been paid or declared and set Substantially all of the subsidiaries' properties are aside for payment. Dividends have been paid currently subject to the lien of their respective mortgages. on all outstanding' preferred stock issues of the subsidiaries. At December 31,1986 and 1985, the subsidiaries
- 6. CipitalStock and Surplus were authorized to issue 37,035,000 shares of -
l cumulative preferred stock, no par value. No shares of Common Stock cumulative preferred stock have been sold during the Of the 75 million authorized shares of $2.50 par three years ended December 31,1986. value common stock of the Corporation at Decemt er 31,1986 and 1985,62,864,000 were issued and outstanding and 28,000 shares were recorded as reacquired at par value. ? ! m - 7+ g --g
l l 42. l Retained Earnings 7. Income Taxes l In accordance with JCP&L's supplemental l' indenture dated June 1,1979, common dividends Income tax expense for the years 1984 through 1986 payable by JCP&L are limited, to the extent they are was ditTerent from the amount computed by applying not matched by cash capital contributions from the the statutory rate to book income subject to tax as Corporation, to an amount equal to 257c of earnings follows: for the years 1979 and 1980 and 1007c of earnings i thereafter, less any amounts paid for the purchase or (In Millions) 1986 1985 1984 acquisition of any stock of JCP&L (other than by Operating income before mandatory sinking fund redemption of preferred income taxes $535 $387 5491 stock). As of December 31,1986, pursuant to that Otherincome, net il 46 49_ l prosision, $187 million of retained earnings of $223 Total 5 76 433 540 j million, as restated for FAS 90, were available for Intnest expense U61) UJ8) U62) declaration and payment of dividends on JCP&L's common stock. The NJBPU has tequested that Book income subject ro tax $415 $275 $378 JCP&L notify it before declaring dividends on its f ,, fy, ,, ,fy, , rm $191 S/27 5174 Effect ofdiference between in accordance with Met-Ed's supplemental tax and book depreciation m_ denture dated March 1,1952, $3.4 million of the { for which deferred taxes balance of Met-Ed's retained earnings are restricted as were notprovided (Note 2) 12 13 13 to the payment ofdividends on its common stock. As Amortization of TMI-2 6 Il 12 of December 31,1986, pursuant to this provision, 537.0 million of retained earnings of $40.4 million, as Amortization oflTC U2) (/5) (9) Other adjustments (3) - J restated for FAS 90, were available for declaration and payment of disiden6 on Met-Ed's common stock. Income tax expense $19J $136 $195
, in accordance with Penelec's supplemental Effective income tax rate 479c 49 % J27c mdenturc dated June 1,1979, the aggregate amount of any dechration or payment of dividends on common stock after December 31,1978 may not exceed Penelec's earnings available for common stock less any amounts paid for the purchase or acquisition of any stock of Penelec (other than by mandatory sinking fund redemption of preferred 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 31,1986, pursuant to that provision, $122 million of retamed earnings of $191 million, as restated for FAS 90, were available for declaration and payment of dividends on Penelec's common stock.
During 1986, an adjustment of S t.7 million was charged to retained earnings which represented premiums paid for the redemption of preferred stock over stated values by Penelec.
43. Income tax expense is comprised of the following: During 1985 the Corporation received a claim from the IRS for additional Federal income taxes for the (In 3/illions) 1986 1985 1984 years 1977 through 1982 in the amount of approxi-Federalincome tax $137 $ 84 $ 2 mately $120 million for the GPU System as a result of State income tax 23 16 16 an audit for the years 1979 through 1982. The asserted Income taxes on other income, tax deficiency results principally from the proposed net I 7 5 denial of deductions of approximately (a) 5279 mil-Income '. xes attributable to the lion in connection with the abandonment in 1980 of allowancefor borrowedfunds (3) (1) (1) JCP&L's Forked River nuclear generating project; 0* n f certain expenses incurred by the Provisionsfor taxes currently subsidianes m the aftermath of the accident at TMI-2; payable 15s 106 22 , and (c) $16 milh,on m premiums paid by the Deferred income taxes subsidiaries to certain offshore electric utility mutual Liberalized depreciation 40 44 44 insurance companies. Deferralofenergy costs (41) (102) 56 With respect to items (a) and (b) above, the IRS is Forked River abandonment not proposing ultimate denial of the tax benefits loss (6) (7) (9) claimed, but is arguing that they are applicable to N.J. revenue taxes 3 (7) (4) subsequent years. With respect to item (c), the IRS is Reserve capacity credit 12 (2) 4 proposing disallowance of the deduction in its entirety. Deferralof 0&3f expense- The Corporation and its subsidiaries filed a protest Oyster Creek (2) (2) 24 with the IRS contesting the proposed assessment. ReversaloffAS 90 With respect to item (a), management understands adjustment 15 18 19 that in two similar situations, the National Office of Other (4) (1) (1) the IRS has recently advised that the deduction is Deferred income taxes, allowable in the year in which the project is aban-net 16 (59) 133 doned. Although such advice does not serve as precedent in other situations, management believes {unent I 31 104 49 that the facts and circumstances are substantially Amortization oflTC (12) (15) (9) similar to those involved in the Forked River Income tax expense abandonment and that the issue will ultimately be
$194 5136 $195(a) resolved in favor of the Corporation.
(a) Does not include $10 million (deferred income tax I(the IRS's position with respect to item (c) is credit related to the application of FAS 90) related to sustained, the Corporation's consolidated net income extraordinary item. (See Note 3.) would be reduced by approximately $21 million for insurance premiums paid through December 31,1986. Examinations of Federal income tax retums through 1982 have been completed (see below) and the years 1983 and 1984 are currently under audit by the Internal Revenue Service (IRS). The Corporation does not know whether the IRS will assess an addi-tional income tax liability against the Corporation as a result of the audits of 1983 and 1984. l l
i l 44. l
- 8. Supplementary Income Statement Information in December 1985, the FASB issued FAS 87,
" Employers' Accounting for Pensions."The f
i Maintenance and other taxes charged to operating Corporation and its subsidiaries will implement expenses consisted of the following: FAS 87 effective January 1,1987, which will not have a significant affect on net income. Each plan's assets l j (In Millions) 1986 1985 1984 are expected to exceed the pension benefit obligation calculated in accordance with FAS 87. Accordingly, Maintenance * $263 $230 $243 the Corporation and its subsidianes do not anticipate Other taxes: recording an unfunded liability. State and localgross receipts $159 5156 $149 in addition to providing pension benefits, the Gross revenue andfranchise 42 44 40 Corporation and its subsidiaries provide certain health State surtax I3 19 17 care and life insurance benefits for retired employees. Realestate andpersonal Substantially all of the Corporation's employees property 13 18 20 become eligible for those benefits if they reach j Other 31 28 11 retirement age while working for the Corporation. The e st f retiree health care and life insurance benefits is { Total $163 5265 5247 recognized as expense when premiums are paid. For 1986,1985 and 1984, those costs totaled
' Excludes reversal of Oyster Creek outage-related approximately $3.5 million,53.2 million and $2.8 expenses in 1984 of $49 million. million, respectively.
- 9. Pension Plans and Postretirement Benefts
.. The operating subsidiaries participated with The subsidianes have several pension plans nonafliliated utilities in the followingjointly owned applicable to all employees, the accrued costs of which stations at December 31,1986:
are being funded. Prior service costs applicable to all plans are being amortized and funded over 25-year
.@ Mulions) Balance periods. Total pension cost for the years 1986,1985 i and 1984 amounted to approximately $35.3 million, % Accumulated .
$35.7 million and $34.5 million, respectively. Station Ownership Investment -Depreciation I
i Based on the latest available actuarial reports, the Homer City 50 5353.1 $868 subsidiaries' plans had accumulated benefits . Keystone 16.67 55.8 14.9 (assuming an 8% rate of return) and net assets as Conemaugh 16.45 57.7 17.0 follows: Yards Creek 30 18.8 3. 7 ? Seneca '20 14.1 2.9 January 1, I (In Millions) 1986 1985 Each participant in a jointly owned station finances g g its own portion and charges the appropriate operating expenses with its share of direct expenses.-The dollar
"'8'#,
j y,th W '$364 am unts shown above represent only those portions of -
'-the umts owned by the operating subsidianes. In .
49 42 _d#".mted . addition, the subsidiaries are participating in water . Total $45A $406 ~ supply projects with other utilities. l Netassets ansilablefor benefts $652 $316 i f .
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- 11. Leases expires by its terms in 1993. Lease pay ments consist of an amount designed to amortize the cost of the The subsidiaries have recorded capital leases w hich nuclear fuel as consumed plus interest costs. The lease have balances at December 31,1986 and 1985 of $93 may be terminated at any time upon five months million and $89 million, respectively (net of i notice by either party. Subject to certain conditions of amortization of $28 million and $32 million, i termination, JCP&L is required to purchase, within respectively). These leases include a nuclear fuel lease 120 days, all nuclear fuel then subject to the lease described below. The recording of capital leases has no , arrangement at a price that will allow the lessor to impact on net income because all leases, for i recover its net investment. JCP&L is obligated for the ratemaking purposes, are considered operating leases. '
spent nuclear fuel disposal costs of nuclear fuel leased Pursuant to a nuclear fuel lease agreement, JCP&L i under this agreement. In 1985, JCP&L sold and leased may finance its nuclear fuel requirements for its back nuclear fuel at its book salue, including AFUDC Oyster Creek station having a cost of up to $100 t and related income taxes, and has accounted for the million outstanding at any one time. The lease is l obligation as a capital lease which have balances at renewable monthly subject to certain conditions and ! December 31,1986 and 1985 of $55 million and $50
! million, respectively.
l 1 i l SEL EC TED FINA NCI A L D A TA in Thousands Except Per Share Data Year Ended December 3i, i986 1985* 1984* 1983* I982* Operating revenues $2,787,077 $2,869,509 $2. 735,286 $2.480,304 $2,405,527 Income before extraordinary items 205,247 117,106 154,203 96,468 65,075 Earnings per share before extraordinary items 3.26 1.86 2.45 1.57 1.06 l Total assets 6,085,670 5,925,924 5,885.323 3.012,947 4,822,247 l Long-term debt 1,736,580 1,816,311 1,797,154 1,894,965 1,998,700 Cumulativepreferred stock-mandatory redemption - 58,300 63,650 67,194 72,2 74
- Restated to nflect change in accounting standards, see Note 3.
Q UA R TERL Y FINA NCIA L D A TA ( Un a u dited) First Quarter
- Second Quarter
- Dollars in Thousands Except Per Share Data 1986 1985 1986 1985 Operating revenues 5776,794 $762,631 5652,158 $673,343 :
Operating income 104,582 79,624 72,557 56,295 Net income, as previously reported 64,694 34,161 30,095 12,967 Adjustments 4,450 5,150 4,450 5,150 Net income, as adjusted 69,144 39,311 34,S45 18,117 Earnings per share, as previously reported 1.03 .54 48 .21 Adjustments .07 .08 .07 .08 Earnings per share, as adjusted 1.10 .62 .55 .29 Average shares 62,864 62,864 62,864 62,864 TI,ird Quarter
- _ Fourth Quarter
- Dollars in Thousands Except Per Share Data 1986 1985 1986 1985 Operating revenues $697,660 $740,348 5660,465 $693,187 Operating income 93,072 77,585 84,014 58,955 Net income, as previously reported S2,723 35.235 44,385 14,143 Adjustments .I,450 5,150 - 5,150 Net income, as adjusted 57,173 40,385 14,385 19,293 Earnings per share, as previously reported .84 .56 .70 .23 Adjustments .07 .08 - .08 Earnings per share, as adjusted .91 .64 .70 .31 Average shares 62,864 62,864 62,864 62,864
- Restated to reflect change in accounting standards, see Note 3.
s
47. I S YS I'EM S TA TIS TICS l General Public Utilities Corporation and Subsidiary Cornpanies 1986 1985 1984 1983 1982 Generating Capacities and Peaks (31IV): Installed capacity (at year end)(a) 8,195 8,195 8,251 8.251 8,251 sinnual hourly peak load 6,608(b) 6,691(b) 6,401(b) 6,140(b) 6,442(c) Reserve (%)(a) 24.0 22.5 28.9 34.4 28.1 Net System Requirernents (in thousands of 31IVil): Net generation 25,121 24,590 20,075 20.635 20,841 Power purchased and interchanged, net 13,277 12,656 16,681 14,333 13,336 Total net system requirements 38,398 37,246 36,756 34,968 34,177 Load Factor (%) 66.3 63.5 65.3 65.0 60.5 Production Data: Cost offuel (in mills per KIVil ofgeneration): Coal 14.45 15.79 15.92 14.90 16.35 Oil 39.54 44.31 49.06 52.31 58.16 Nuclear 3.59 5.03 6.25 5.85 4.08 Other 39.41 32.45 5 9. 74 35.55 64.06 ilverage 13.44 17.29 21.53 19.94 19.80 Generation byfuel type (%): Coal 68 71 85 87 81 Oil 3 3 3 3 2 Nuclear 25 18 1 9 Other (gas & hydro) 4 8 11 10 8 Total 100 100 100 100 100 Electric Energy Sales (in thousands of 31IV11): Residential 11,779 11,142 11,273 10,901 10,604 Commercial 9,654 9,080 8,826 8,322 8,1 73 Industrial 11,856 11,707 11,770 10,608 10 752 Other 1,181 1,417 1,622 1,669 1,824 Total 34,770 33,346 33,491 31,500 31,353~ Electric Operating Revenues (in thousands): Residential $1,107,380 $1,109,403 $1,049,257 $ 978,743 $ 919,532 Commercial 816,261 827,514 765,394 687,773 661,910 Industrial 735,692 807,820 772.923 673,101 694,291 Other 96,769 95,344 107,474 105,113 101,712 Totalfrom KEVil Sales 2,756,102 2,840,081 2,695,048 2,444,730 2,377,445 Other revenues 30,975 29,428 40,238 35,574 28,082 Total $2,787,077 $2,869,509 $2,735,286 $2,480,304 $2,405,527 C tomers-Year End (in thousands): Residential 1,549 1,511 1,482 1,456 1,434 Commercial 181 1 75 170 166 164 Industrial 10 10 10 10 10 Other 3 3 3 3 3 Total 1,743 1,699 1,665 1,635 1,611 Price per KIVII-all customers (cents) 7.93 8.52 8.05 7.76 7.58 (a) includes the installed capacity of T311-1 and T311-2 of 800 3iIV and 906 StIV, respectively,for allperiods. The reserve (%) excluding T3ff-2 for 1986 and 1985 would be 10.3% and 8.9%. respectively, and excluding T3ff-1 and T3ff-2for 1984,1983 and 1982 would be 2.2%, 6.6% and 1.6%, respectively. (b) Summerpeak. (c) DVinterpeak.
48. l DIRECTORS Louis J. Appell, Jr.12 ff'illiam G. Kuhns President Chairman and ChiefExecutive Ofcer Susquehanna Broadcasting Co. General Public Utilities Corporation York. Pennsyl ania 17401 Parsippany, New Jersey 07054 (Communications John F. O' Leary and Consumer Products) Energy Consultant Donald J. Bainton 1.1 g.ashington, D.C. 20015 Chairman and ChiefExecutive Oficer Dr. John il'. Oswald 1.3 Viatech Inc. Pusident Emeritus Syosset, New York 11791 (Engineering. Architectural and The Pennsylvania State University Surveying Services) Ogontz Campus Abington, Pennsylvar.ia 19001 John F. Burditt 11 Retired Chairman and ChiefExecutive Oficer Paul R. Roedel 12 Pusident and ChiefExeutin Ofur ACF Industries Inc. Earth City, Missouri 63045 Carpenter Technology Corporation (Equipment Manufacturing) Reading Pennsylvania 19603 Herman Dieckamp President and Chief Operating ODicer Dr. Patricia K. It'oolf1.3 l'isiting Research Sociologist General Public Utilities Corporation Parsippany, New Jersey 07054 Princeton University Princeton, New Jersey 08!44 Dr. David L. Grove 1.1 Former President 1 Member of Audit Committee David L. Grove, Ltd. 2 Member of Personnet Commitice Armonk. New York 10504 3 Member of Nominating Committee (Economic Consultants) OFFICERS GeneralPublic Utilities Corporation Subsidiary Company Presidents it'illiam G. Kuhns Phil!p R. Clark Chairr~ san and ChiefExecusive Ofcer GPUNuclear Corporation liermas Dieckamp Herman Dieckamp President and Chief Operating Oficer GPUService Corporation l'ernerIL Condon Fred D. Hafer l' ice President and ChiefFinancial Ofcer Metropolitan Edison Company F. Allen Donofrio James R. Leva Comptroller Jeruy CentralPower & Light Company John G. Graham Robert L. Wise . Treasurer Pennsylvania Electric Company (' Grace Wade Secretary Mary L. Breslin James B. Liberman Assistant Secretary GeneralCounsel e x A fp -
l l THE GP U S YS TE Af SHAREHOLDER CO MPA NIES NO TES General Public Utilities Corporation 1987 Annual Meeting 100 Interpace Parkway The Annual Meeting of Stockholders of General Parsippany, New Jersey 07054-1149 Public Utilities Corporation will be held at 2:30 (201) 263-6500 p.m. EDT, May 7,1987 at the llanover Marriott 11 tel, Whippany, New Jersey. GPU Service Corporation GPU Nuclear Corporation Transfer Agent (Same address and telephone number as GPU Manufacturers llanover Trust Company,P.O. Box Corporation) 24935, Church Street Station, New York, New Jersey Central Power & Light Company , Y*'k IO1#*' Madison Asenue at Punch Bowl Road Transfers can also be hand-delivered to Morristown, New Jersey 07960 Manufacturers llanover Trust Company, (201) 455-8200 Securities Window, Street Level,130 John Street, New York, New York. Metropolitan Edison Company, I 2800 Pottsville Pike ? Too Many Reports? Reading, Pennsylvania 19Mo-0C01 You may be receiving multiple copies of the GPU (215) 929-3601 Annual Report because of multiple accounts Pennsylvania Electric Company within your household. To stop the extra copies, 1001 Broad Street please write to Manufacturers llanover Trust Johnstown, Pennsylvania 15907 Company, P.O. Box 24935, Church Street Station, New York, New York 10249 and enclose the (814) 533-8111 mailing labels from the extra copies. Stock Price 1979 - 1986 I I l ! l ! ! !I fl
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'79 '80 '81 '82 '8.1 '84 IQ 2Q JQ 4Q _ IQ ]Q _JQ 4Q 1985 1986 For Further informasNm Copies o(GPLPs System Statistics and the General Public Utilities Corporation is listed as Corporation's 198610-K Annual Report to the GPU on the New York Stock Exchange; at c Securities and Exchange Commission will be December 31,1986 there were 94,822 registered available after March 31,1987. Write to holders of GPU common stock.
Shareholder Relations, General Public Utilities Corporation,100 Interpace Parkwsy, Parsippany, New Jfesey q7054-1149, or call 201 263-6600. . f t a
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l i i G PU & SU BSIDI ARY COM P ANIES m= , m_= _ _ . ~ . _ _ m _ _ _ _ _ _ _ , , _ _ _ ,,_ _ ,,, i 1986 Umfonn Statistical Report This report should be read in conjunction with GPU's 1986 Annual Report to stoa': holders.
l UNIFORM STATISTICAL REPORT-YEAR ENDED DECEM2ER 31,1986 (To Amencan Gas Association, Edison Electnc Institute and Financial Analysts) Please submit the required paGee to the Amercan Gas Association and or the Edison Electnc Institute for use in compiling statistes published in AGA's Gas Facts and eel s Stanstical Yeart)ook. Also fumish a copy of the Company's Annual Report to Stockholders with the USR or as soon as the annual repo#1 becomes available. All errgy and dollar amounts should be reported in thousands. Because this report is frequentty used in confunction with the Company's Annual Report to Stockholders, the data ecluded herein should agree with the comparable information e such Annual Report. To assure accuracy and consistency, numerous crossnes and footnotes have been appended to the schedules so that the statistes for the same item shown on more than one schedule will be identcal Name and Address of Company GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY C051PANIES 100 INTERPACE PARINAY PARSIPPANY, N.J. 07054 - 1149 Ust Affiliated Companies. Indcate Relationship (Parent. Subsidiary, Associate, etc.) and dentify Nature of Business GENERAL PUBLIC UTILITIES CORPORATION GPU SERVICE CORPORATION (SUBSIDIARY) GPU NUCLEAR CORPORATION (SUBSIDIARY) JERSEY CENTRAL POWER & LIGilT COMPANY (SUBSIDIARY)
!!ETROPOLITAN EDISON C0!!PANY (SUBSIDIARY)
PENNSYLVANIA ELECTRIC COMPANY (SUBSIDIARY) Individual Fumishing Informato Information Release
* * " X Name Yes, indivdual company data may be released.
Tate Cornpt ro11er No, indrvidual company may not be released Telephone No (201) 263-6458 Authonzer F. A. Donof n* o March 25, 1987 Date This Report Released 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 BOY ANY SECURITIES
UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1986 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES TABLE OF CONTENTS ELECTRIC h Schedule GENERAL STATISTICS ... .. 1 1 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 Terntory Served FINANCIAL AND ACCOUNTING STATISTICS Statements of Income. Retained Earnings, and Common Stock Data 2 11 Notes to Statements of income and Retained Earnings . . . .. 3 Ill Functional Details of Operation and Maintenance Expenses . . . 5 IV Taxes. . . 6 V Balance Sheet . . 7 VI Detail of Capital Stock and Long Term Debt Outstanding by issues . . . . 7a Via Notes to Balance Sheet . . . . 8 Vll Utility Plant by Functional Accounts . . 9 Vill Notes to Utility Plant by Functional Accounts . 10 IX Additions and Retirements to Utility Plant-Current Year . 10 X Changes in Secunties During the Year . 11 XI Statement of Changes in Financial Position 12 XII EMPLOYEE DATA 13 XIll Number of Employees Salanes and Wages Pensions and Benefits OPERATING STATISTICS-ELECTRIC Classification of Energy Sales, Revenues and Customers . . .. E-14 XIV Classification of Industrial (or Large Light and Power) Energy Sales and Havenues . .. E-15 XV Source and Disposition of Energy E-16 XVI l Maximum Demands and Net Capability at Time of Company Peaks-Calendar Year . E-17 XVil !
@ENERATING STATION STATISTICS-ELECTRIC Generating Station Statistics . E-18 XVill Fuel Consumed for Generation . E-19 XIX Efficiency of Steam Generating Units E-19 XX Changes in Generating Units E-20 XXI MILES OF ELECTRIC LINE OPERATED AND OTHER PHYSICAL DATA E-21 XXil Transmission Distnbution Substations and Line Transformers
PAGE 1 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMIER 31,1986 PA?E 1 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE l-GENERAL STATISTICS
- 1. Report information for states in which Company operates: (if more space is needed please submit additional page.)
Percent of Operating Revenues Percent of Subject to Rate Regulation State (s) Operating Revenues State (s) FERC New Jersey 50% 49% 1% Pennsv1vania 50% 48% 2%
- 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") CPU Nuclear Corporation ("CPUN") Jersev Central Power & Light Company and Subsidiarv ("JCP&L") Metropolitan Edison Company and Subsidiary (" Met-Ed") Pennsylvania Electric Company and Subsidiaries ("Penelec")
- 3. Utility systems acquired, sold or otherwise disposed of: (Indicate the penod 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 # of Customers Name of System & Date # of Customers NONE NONE
- 4. Changes in Communtties Served: (Indicate whether community is or was served at wholesale or retaillevel by inserting a (w) i or an (t) after name of community. Idenofy separately as Electric or Gas.)
COMMUNITIES ADDED DURING YEAR COMMUNITIES TRANSFERRED OR LOST DURING YEAR Name of Community & State Previously Served By Name of Community & State Now Served By NONE NONE
- 5. Population and Square Miles of Terntory Served:
POPULATION SERVED SOUARE MILES OF TERRITORY SERVED Electnc Gas Electric Gas Retail 1,1, 4,429,000 Wholesale 1,2, 62,000 4,491,000 24,145 Total 1.3. Estimated as of 12/31/86 12/31/86 l
1 PAGE 2 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1986 PAGE 2 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES i SCHEDULE Il-STATEMENTS OF INCOME AND RETAINED EARNINGS (Thousands of $) FOR NOTES-SEE SCHEDULE lil-PAGES 3 & 4 INCOME Steam Heat Taeol Electric Gas & Other
- 1. Operating Revenues (a)(b) 2.1, 2,787,077 2,784,765 2,312 Operating Expenses:
- 2. Operation (c) . . 2.2, 1,478,367 1,476,439 1,928
- 3. Maintenance . . 2,3, 263,164 262,762 402
- 4. Depreciation . 2,4, 225,143 224,902 241
- 5. Depletion , 2.5,
- 6. Amort. Charged to Operation (d)(e) 2.6, 21,778 21,778
- 7. Property Losses Charged to Operaton . 2.7 458 458
- 8. Taxes Other Than income Taxes 2,8, 263,490 263,417 73
- 9. Federal Income Taxes (f)(g) , 2,9, 137,083 137,069 14
- 10. State income Taxes (f)(g) 2,10, 22,482 22,480 2
- 11. Deferred Income Taxes-Charges 2,11, 111,352 111,267 85
- 12. Deferred income Taxes-Credits 2,12, [ 110,096] [ 110,077) [ l [ 19 j
- 13. Investment Tax Credit Adjusts. (Net)(f) 2,13, 19,631 19,633 (2)
- 14. 2,14,
- 15. Total Operating Expenses 2,15, 2,432,852 2,430,128 2,724
- 16. Operating income 2,16, 354,225 354,637 (412)
- 17. Other Operating income (h) 2,17,
- 18. Total Operating income 2,18, 354,225 354,637 (412)
- 19. Allow. for Other Funds Used During Constr (i) 2.19, 16,186 g
- 20. Other income Less Deductons-Net (e)(h) 2.20, 24,948
- 21. Minority Interest 2.21, l2.43, l$ 3.26 Eamings per share based on
- 22. Income Before Interest Charges 2,22, 395,359 62,863,643 average number interest Charges: of shares outstanding during year.
- 23. Interest on Long-Term Debt (j) 2,23, 143,589
- 24. Interest on Short-Term Debt 2.24, 458 28.41 l2.44 l Book value per share $
- 25. Amort. of Debt Disc. Exp. and Prem. (Net) 2,25, 465
- 26. Other Interest Expense 2.26, 16,624 25 12.45. IMarket value: Hi $
- 27. Allow. for Borrowed Funds Lo $ 16 1/2 Used Dunng Constr.-Credit (i) { l.) . 2.27 ( 7'9971 Close $ 22 5/8
- 28. Net interest Charges 2,28, 153,139
- 29. Income Before Extraordinary items 2.29, 242,220 12.46. lRetum on average common equity 12.14,
- 30. Extraordinary items, Less Taxes (h) 2,30, 2,31, 242,220
- 31. Net income Quarterly dividends paid per share:
- 32. Pfd and Pfc Dividend Requirement (j) 2,32, 36,973 .
2,47, 1st qtr. $ - J
- 33. Net income Available for Common Stock. 2.33, 205*247 ~
2,48, 2nd qtr. l
- 34. Common Dividends 2,34 -
2,49, 3rd qtr. ) 2.35, 205,247
- 35. Net income After Dividends ,
RETAINED EARNINGS Year $ None
- 36. Balance, January 1 (2). 2.36, 663,718
- 37. Net income Af ter Preferred Dividendi 2,37, 205,247 Securities and Exchange Commission
- 38. Pfd and Pfc Dividends Declared 2.38. Fixed Charge Coverage:
*See
- 39. Common Dividends Declared-Cash 2.39. Ind ividual 2,40, 2,51, including AFUDC *
- 40. Common Dividends Declared-Other(k) . ar 2,41, (1,742) 2.52. Excluding AFUDC *
- 41. Adjustments (l) _
- 42. Balance, December 31 .. .. . 2.42. 867,223 (1) Includes Income Taxes attributab e to AFUDC of $(3,040).
(2) Restated to reflect change in accounting standards, see GPU 1986 Annual Report, Page 39, Note 3.
PAGE 3 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEM!ER 31,1986 PACE 3 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE lil-NOTES TO STATEMENTS OF INCOME AND RETAINED EARNINGS (Thousands of $) INCOME-SCHEDULE ll-PAGE 2 u e **e of bye are handled = operanno revenue. report here the amount of bycoduct revenue 9' coded on une n $ and product extracton expense (mckded on Unos 2 and 3) $ (b) Operaeng Revenues include: Revenues cosected under bond or subsect to refund: Electnc
- Gas $
urtweed revenues: Electnc $ Gas $ Indicate retail (R) and/or wholesale (W) jurisdictional increases / decreases in revenues over the pnor year resulting from base rate increases / decreases granted and/or billed: Electnc Gas Arnount Arnount Effectrve included in Effectrve included in Junedicbon Date Annualized Current year Junsdicbon Date Annualized Current year See Individual Subsidiary 1986 USR Reports Note: /. mounts collected on an intenm base should be shown as a rate mcrease n the year authorued and not as a part of the totalincrease granted with the final rate order. (c) Operatog Expenses-Operaton includes: Amounts subtect to refund: Electre
- Gas
- Sgnecant amount of rents t for
$ for
$ for See Individual Subsidiary 1986 USR Reports
$ for
$ for (d) includes amortuaton of adjustments to appliances for gas conversons $
(i) Amortzanon of Plant Acquarton Adjustments included on Lees 6 and 20. Page 2. Electnc $ Gas $ Other $ (f) Investment Tax Credg Electne Gas Other Total so,meueo , 3,1, 32,133 3 32,136 yars) . 3,2, 12,500 5 12,505 Less: Amortued (over Not 3.3. 19,633 (2) 19,631 Flowed-Through . 3.4 FEDERAL STATE (g) Net Reducbon m Inc. Taxes (Not Normakzed) Electne Gas Other Electne Gas Other Acce4 rated Amortzaton Property . 3.5, Omer Property 3.6, (16,645) (2,367) Omer (spec,fn 3,7, 6,616 1,040 Tote, 3.8, (10,029) (1,327)
- Investment tax credits (ITC) are being amortized over the estimated service lives of the related facilities.
PAGE 4 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMIER 31,1986 PA*1E 4 y GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE Ill-NOTES TO STATEMENTS OF INCOME AND RETAINED EARNINGS (Thousands of $) (continued) (h) Dotad mapr nome and amounto and as mcome twee mcbded m: Other Operatog income-(ecbang ecome Taxes of $ ) Other income Lose Deductons-Net (incbdeg income Taxes of $ 4,6 5 3 (11not mechandismo eckded, give amount) See Individual Subsidiary 1986 USR Reports Extraordinary items (incbong Income Taxes of $ b.) I (1) Give desenphon of method used to determme AAowancs for Funde Used Dunng Constructon (incbdeg rare apphed, gross vs. not of tax method, type of con- ! struccon or site atjob covered, and penod of eme ussd to exclude jobs of short duranon) See GPU 1986 Annual Report, Page 38, Note 2 Q) Annual interest and Preferred arxi Preferexe Dnndend Requirement calculated on amounts (incbding due wen f year) outstanding at Dec 31. Long-Term coet $ 143,029 p,eferred and Preference stock $ 32,318 RETAINED EARNINGS-SCHEDJLE Il-PAGE 2 (k) Detmas of Common Dnrdonde Declarad-Other than Cash None (I) Detads of mapr noms and amounts included m Adpstments to Retamed Eammgs Premiums naid far the redemntion of preferred stock over stated values hv Penelec $(1.731). NOTES & REMARKS:
SCHEDULE IV-FUNCTIONAL DETAILS OF OPERATION AND MAINTENANCE EXPENSES (Thousands of $) j O ELECTRc Steam Heat and Other m Tam op., mon u m .n.nc. Tove op m.n u.a.n.nce Production:
- 1. Fuel (a) 4.1, 350,161 3 5 0 ,161 ,,,,, ,,,,,,,,,, 805 8 0 5 ,,3 , , , , , , , , , , , , , , , ,
- 2. Purchased Power (Nef)(a) . 42, 455,056 455,056 ~ ,,,,,,,,,,,,,,, ,,,,,,,,,,,,,,,, ............... ................ Q
- 3. eu,cna ed Gas (uenca) . 4.3 ............... ............... ,,............. ................ g
- 4. Other Prod. Expenses (a) 4.4 504,132 332.488 171,644 870 866,a3 4 ,a3 2,c c
- 5. Total Producten . 4.5. 1,309,349 1,137,705 171,644 1,675 1,671 4 r Z
- 6. Storage & Liquefied @
CC h 3 Natural Gas . 4.6 =====.========= ,==.=======.,s ............... 37'404 24,248 13,156 C E
- 7. Transtrussion . 4.7
- 8. Distnbuteon . 4.8.
142,944 70,364 72,580 461 96 365 $
- 9. Customer Accounts 4.9.
59,811 59.811 43 43 % $ 10 cust. Service & Info
- 11. Sales 4.10.
4.11 21,027 21,027 { H Ui d o
- 12. Admnstrative & General 4,12 168,666 163,284 5,382 151 118 33 p g 1,739,201 1,476,439 262,762 2,330 1,928 402 M
- 13. Total 4.13. 3 n m
- 14. Credit Reswfuals included in Line Steam Heat I I 3 4 cm incw. cang or acr.on nor o n.o w m s % to). scn. oui, xix-Pag. E-19 cons in on. 4 Ems 81,311 , (32) l y
N i
<ci ~ % w u o.- n g g ;g I (d) inciuo.s ..piorston .nd o.v.aopm.nt costs of prosp.cov. gas producing fi.aos @J5;j g g )
3 NOTES & REMARKS: $ O i m m si o m O M m b O m
- lc E 1 < a m
O 3 4
'f Z ^
H IT1 to o m J on
l l PA2E 6 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEM2ER 31,1986 PAGE 6 l l Company GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE V-TAXES (Thousands of $) ' ACCRUALS CHARGED TO: Taxes Other Then income Taxes: OPERATING EXPENSES-TAXES ALL OTHER Sttte and Local: Tot.: Eiectric o other ospis. ACCOUNTS (a)
- 1. Property, Ad Valorem, etc. 5.1 14,080 14,054 26 309
- 2. Franchise 5.2. 42,455 42,455
- 3. Gross Receipts 5.3. 177,232 177,232
- 4. Capital Stock 5.4 6,885 6,857 28
- 5. Miscellaneous 5.5. 7,469 7,462 7 6,511
- 6. Total State and Local Taxes 5.s, 248,121 248,060 61 6,820 Miscellaneous Federal Taxes:
- 7. Payroll 5.7. 15,369 15,357 12 10,472
- 8. 5.s.
- 9. Total Miscellaneous Federal Taxes 5.9. 15,369 15,357 12 10,472
- 10. Total Taxes Other Than income Taxes 5.10. 263,490 263,417 73 17,292 income Taxes-Current:
- 11. Federal income Taxes 5.11 137,083 137,069 14 (333)
- 12. State income Taxes 5.12. 22,482 22,480 2 (252)
- 13. Total income Taxes Current 5.13. 159,565 159,549 16 (585)
Deferred income Tax-Cl arges: Federal:
- 14. Property Related(b) 5.14 53,869 53,800 69 6,330
- 15. Non-Property Related 5.i s. 54,132 54,119 13 3,369
- 16. Total Federal Provision . 5.16. 108,001 107,919 82 9,699 State:
- 17. Property Related(ti) 5.17, 596 596 0 30
- 18. Non-Property Related 5.18. 2,755 2,752 3 22
- 19. Total State Provision 5.19. 3,351 3,348 3 52 Deferred income Tax-Credits:
Federal:
- 20. Property Related(b) 5.20. I 11,137 1 ! 11,120 1 ( l i 17 1 I I
- 21. Non-Property Related 5.21 I 93,321 1 I 93,321 ) [ l f 0 I i 9901
- 22. Total Federal Portion 5.22. I 104,458 1 f 104,441 1 l 1 l 17 1 r 9901 State:
- 23. Property Related(b) 5.23. I 2,470 1 i 2,468 1 1 1 I 2 I I 1
- 24. Non-Property Related 5.24 I 3,168 1 I 3,168 1 I 1 l 0 1 ! 96 1 1 25. Total State Portion 5.25. [ 5,638 1 I 5.636 1 I I i 2 1 t 96 1
?6. Investment Tax Credit Adjustment (c) 5a 19,631 19,633 (2) (2)
- 27. Job Tax Credits 5 27
- 28. Total Taxes 5.28. 443,942 ,d) 44 3,789 (d> em 15 3 ,d) 25,370 (a) Such as Utility Plant. Other income Deductons. Extraordinary items. Cleanng Accounts. Retamed Earnings. etc.
(b) Report amount e Accelerated Amortization and bberakzed Depreciaton IFEAC System of Accounts 28f and 282). (C) Amount of Investment subHICt to inves' ment Tan Credit. Electnc ; Gas ; Other Departrnents (d) should equal Total of bres to. 13.16.19. 22. 25,26 and 27 and Total of bees 8. 9 10.11.12 and 13, Schedule 11-Page 2. Notes & Remarks tpwase enpae any unusuantems anecteg rases)
-. .. _ . _ _ . - _ . . - _ . _ . _ _ _ - _ - _ _ _ _ _ - - . - . _ - - - - . ~ _ - . -.
a y a o m SCHEDULE VI-BALANCE SHEET (Thousands of $) FOR NOTES-SEE SCHEDULE Vll-PAGE 8 (; y ASSETS CAPITALIZATION AND LIABILITIES
- Utskty Plant. Capitahzation
Plant in Sennce
- 1. Electnc 6.1 5,498,962 36. Common Stock (b) . . . . . .
6.36. 157,159 a
- 2. Gas . 6.2. 37. Capital Stock Expense 6.37 (18,056) E rn Common . . . . .... . C
- 3. 6.3. 38. Premium on Common Stock (if not en Line 39) . 6.38 g 4.
5. Steam Heat and k'ater Total Plant en Service 6.4 6.5. 5,886 5,504,848 39. 40. Other Paid.In Captal(c) Retained Earnings (d) . . 6.39, 6.40 779,813 867,223 e m (O Accum Prov for Dept & Amort 6.6. (1,701,293) i 4
- 6. 41. Total Common Stock Equity . 6.41, 1.786,139 h h
- 7. Construction work en Progress - 6.7 301,488 42. 6.42. L co 1
8 Nuclear Fuet (Incl.Nuc. Fuel Cap. Lease) 6.s. 247,432 43 Prefened and Preference Stock not subt ect to
. 9 Accum Prov for Amort of Nuclear Fuel 6.9. (74,815) Mandatory Redemption (b) including premium 6.43. 424,739 $ g i 10. Investment in TMI-2. net (1) 6.10 298,793 d
- 44. Prefened and Preference Stock Subrect to Mandatory E
, ii. Held for future use/ Capital Leases 6,i t. 65,934 Redempuon(b) (Exct amt. due within one year). 6.44 y h 4
- 12. Net Utshty Plant 4,642,387 6.12. Long Term Debt:(Exct. amt. due withm one year) $ 8~
l 13 Gas Stored Underground (Non-Cunent) 6.13. 45 Mortgage Bonds . . 6.45, 1,510,097 m g
- 14. 6.14 46. Debentures (f) 6.46. 184,120 g g 15 Other Property and investments (Net)(a) 6.15. 16,693 47. Other(g) . 6.47, 42,363 g a d
- 48. 6,48 O Current and Accrued Assets 49 Total Long Term Debt 1,736,580
- 16. Cash. Spec. Dep., Wkg. Funds & Temp Cash inv. 6.16, 172,337 50.
6.49 h m Total Capitahzation (Excl. amt. due within one year) 6.50, 3.947.458 g
- 17. Gas Stored Underground (Current) 6.11 Other Non-Current Uabehties: Z 3
- 18. LNG Stored & Held for Processing 6.18. 51. Accum. Prov. for Rate Refunds 6.51 g ITI 19 Notes Receivable . 6.19. 52. Other (3) 6.52 93,571 e $
m Customer Accounts Receivable (Net) 6.20. 189,623 53. Total Other Non-Cunent Uabihtes 6.53. 93,571 m
- 21. Receivables from investor Owned Elec. Cos. 6.21 1,471 Current and Accrued Wabihtes: $
m 0 l 22. Other Receivables 6.22. 19,894 54. Amounts Due within one year (h) . 6.54 46,098 m i
- 23. Accrued Unbilled Revenues . 6.23. 55. Short-Term Debt (i) . 6.55. 44,248 3 :Ti
- 24. Matenals and Suppies(Incl Fuel Inventorles) 6.24 191.234 56. Accts. Payable (Exct. amt. in Une 57) . 6.56, 241,833 $
- 25. Prepayments 6.25, 12,002 d l
- 57. Payablos to investor Owned Elec. Cos. 6.57 I'l
- 26. Other Current and Accrued Assets 6.26. 58. Taxes Accrued (e) ... 6.58, 141,700 Q [^
- 27. Deferred Income Taxes 6.27 101,146 299.268
- 59. Other Current and Accrued Liabshties (4) . 6.59. 4
- 28. Total Cerront and Accrued Assets 6.2s. 687.707 60. Total Cunent and Accrued dabehtes 6.60. 773,147 g -
g' Deterred Debits: Defened Credits: y &
- 29. Unamortued Debt Expense . 6.29. 5,952 61. 606,912 m Accumulated Deferred income Taxes (e) . 6.6i .
, 30. Extraordinary Property Losses . . 6.30. 174,355 62. Accumulated Deferred investment Tax Credits (s) . 6.62 247,757
- 31. Defened Fuel Costs 6.31 63. Customer Advances for Constr% tion 6.63.
- 32. Other Deterred Debits (2) 6.32 269.558 64. Other Deferred Credits (5) . 6.64 147,965 g TMI-2 Cleanup. net of recoveries 6.33. 289,018 65 TMI-2 Cleanup Costs 6.65, 268,860 34 Totai Defened Debits . 738,883 1,271,494
- 35. Votal Assets 6.34 6.35. 6,085,670 66.
67. Total Deterred Credits 6.66, g 6.67 g
- 68. Total Capitalaation and Liabahtses 6.68. 6.085,670 m i N
PATE 7a UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1986 PAf E 73 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE Via-DETAll OF CAPITAL STOCK AND LONG TERM DEBT OUTSTANDING BY ISSUES For Stock: show rate, par vaks, shares and amount. Ust separately, amounts applicable to redeemable preferred stocks, as defined by the Securities and Exchange Commission, other preferred stocks, and common stock. For Debt: show series, rate, maturity date and amount. Group by type and show totals for each type. Descrimion of issues Amount (Thousands of $) See Pages 7b and 7e l l i i l l
PAGE 7b 1 LONG TERM DEB T OF THE S YS TEM l 3 in 11wusands I)ecember 31,1986 Jersey Central Power & l.ight Company: First Afortgage Bonds . Series as m>ted:
$ % due 1987. .$13,806 7!i% due 1998* . .$ 8,000 8y% due 2003 . . .$29,840 4'i% due 1988* .7.500 7lj% due 1998. .24.191 9,y% due 2006 . . . 59,748 5'i% due 1989 . .4,524 12 % due 1999 . . .43,332 9y% due 2006 . .35,000 47% due 1990* .. 5,(XX) 8'j% due 1999. . 8,022 8.1% due 2007. . 59.899 4'i% due 1992 . .10,153 11,5 % due 1999 . . 41.166 9 % due 2003 .49,950 4ti% due 1993 . . 14,477 10 % due 20tK) . . .11.995 7!;% due 2009. . 6,300 4y% due 1994 . .14,317 8?i% due 2000. .15.656 7?i% due 2015 . .12.200 4',% due 1995 . .17,430 8!;% due 2001 .32,887 Current maturities and 6'i% due 1996 . .25,701 8 % due 2001 . 24,093 sinling funds . .(20,307) 6 % due 1997* .10.000 8 % due 2002 . . 23.569 65 % due 1997. .25,874 8,y% due 2003 . ,48,154
$ 662,477 I)chentures - Series as noted:
Jy% due 1988. .$ 4,700 5 % due 1990* .$ 2.800 9li% due 1996 . .$17.000 4 % % due 1989* . .3,240 5'i% due 1990. . 5,040 8'i% due 1998 . . . 21,600 45 % due 1989 . .2,700 6 % due 1992 . . 9,(XX) Current sinking fimds . . (20) 66.060 Unamorti:ed net discount on long-term debt . . . .. (9 70) Total . . . . . . . 727,567 Sletropolitan Edison Company: First Afortgage Bonds - Series as noted: J ', % due 1987 . . $19.000 7 % due 1998 . . $26,000 9 % due 2006 . .$50.000 5 % due 1990 .15.000 8'i% due 1999. .25.000 8, due 2007. . 35.(X)0 4y% due 1992 .15.tXX) 7;';% due 2001 ,15,000 6 % due 2003. . 8,700 4',% due 1995 .I2.000 7y% due 2002 ,26.(XX) 9 % due 2003 . .50,000 10'j % due 1995 . 28,500 8!i% due 2003 , .20,000 Current maturities . (19,000) 5'i% due 1996 .15,(XX) 341.200 I)ebentures - Series as noted: 4 % % due 1990 . .$ 3,360 8';% due 1997. .$38.160 Current sinking 6's% due 1992 .I2.400 8'i% due 1998 . .I4.8(X) funds . . . $ (l.860) 66,860 Unamorti:ed net discount on long-term debt . .... . . . . (1,152) Total . . . .. 406,908 Pennsylvania Electr,c Company: First Afortgage Bonds - Seri s as noted: 4 % due 1988 . . $29.000 6% % due 1998 . .$38,00t) 7))% due 2006 . .$12,000 5 % due 1989 . .15.(XX) 8 % due 1999 . .28,000 6'i% due 2007. .16.420 5 % due 1990 .12.lkN) ll!i% due 1999. .43,334 9'j% due 2008 . . . 45.000 45 % due 199) .10JKX) 9 % % due 2(XX) . .25,000 8'i% due 2015 . . 20,000 45 % due 1994 . . 201XX) 7li% due 2001. .30.000 6'i% due 2016 . . . 25.000 6'i'i due 1996 . .25.0tk) S 5 % due 2003 , .30,000 Current maturities and 6'i% due 1997. .26,000 9% % due 2006 . . 60,00t) sinking funds .. . (3.334) 506,420 l)ebentures - Series as noted: 5 % due 1990 .511.234 8'i% due 19% . . $20,400 Current maturities and 7 % due 1992 .6.200 8':% due 1996 . .13.600 sinking funds . ...$ (234) 51.200 Unamorti:ed net discount on long-term debt .. . . (1,325) Total . . . . . .... 555,795 GPU Service Corporation: 10.87% secured notes due 2001. . . . . . . .. .. .. ... 32JXX) First mortgage note 13.25% due 2005. . . .... 14,232 (hher long-term debt . . . . l. 121 l t)tlier current obligations . . . . .. . .. (l,343) Total .
. . . 46.310 System Total. . . . .. .. . $1,736,580
*lssued by NJP&l. and assumed by JCP&L l
L
1 PAGE 7c CUMUL A TIVE PREFERRED STOCK OF S UBSIDIAR Y COMPANIES Current Total Shares Call Stated Value December 31,1986 Authori:ed Outstanding Price (in Dwusands) Jersey Central Power & Light Company: Cumulative preferred stock - no mandatory redemption (no par value) . . ... ... . .. . .. . 15,600,000 4 % Series. .. . ..... . .... . .. . . 125,000 106.50 $ 12.500 9.36% Series . . . . . ... . . . 250,000 104.08 25,000 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 8.75% Series H . .. .. .... . 2,000,000 26.65 50,000 Total. .. .. . . . . .... . . 162,500 .11etropolitan Edison Company: Cumulanvc preferred stock - no mandatory redemption (no par value) . . ... . . . . .... .. 10,000.000 3.90% Series. . . . . . . ... .. 1 I 7, 72 9 105.63 Ii,773 4.LA 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,$64 8.12 % Series. . . .. . . .. . 160,000 105.56 16,000 7.68% Series G .. .. 350,000 105.56 3!.000 8.32% Series H .. . .. . . . . ... 250,000 106.16 23,000 8.12 % Series I . . . . . . .. . .. .. . . 250,000 105.56 25,000 8.32% Series J . . . .. . .. .. 150,000 105.62 15,000 Total . . . . . . . . . ... . . 139.391 Pennsylvania Electric Company: Cumulative preferred stock - no mandatory redemption (no par value) . . . ..... . . , 11,435,000 4.40% Series B . . . . . . . . . . .. 56,810 108.25 5,681
- 3. 70% Series C. . . . . . . . .. . . .. 97.054 105.00 9.705 4.05% Series D .. . . . . .. . 63,6 % 104.53 6,3 70
.l. 70% Series E. . . .... .. . . .... 28,739 105.25 2,8 74 4.50% Series F. ,. . .. . . . .. ,, 42, % 9 104.27 4.297 4.60% Series G .. ... . . . ... . . . 75,732 104.25 7,5 73 8.36% Series H . .. . .. ... . . .. . 250,000 104.09 25,000 3.12% Series I . .. . . . .. .. . 250.000 105.56 25.000 9.00% Series L , . . . . . . .. . . I,400,000 26.I3 35.000 Total. . . . . . . . . . 121.500 System Total . . . . .. $423,391 *
(1) Etcludes premium of $1,348. l l l l l l 1
PAGE 8 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1986 PACE 8 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE Vil-NOTES TO BALANCE SHEET (Thousands of $) (e) oomii maior nwn. and amoune neuena Enc.se Coot u inv im.nte n Sube d.ance consonde=d ove sook vowe at Acquisamn oew. l.oans to non-affiliated mining companies - S7,775 c) Numbwof Sax *noides as o, 12/ll/86 p,,,,, red Cornmon 94,822 % Preference (c) includes Prerrwume on Capnal Stock: Preferred $ Common $ Other $ Preference $ (a Amount teetncied from payment of caeh dandends on common stock $ See GPU 1986 Annual Report, Page 42, Note 6 (;) Deserved Federal and State income Tax Badences FEDERAL STATE Electnc Gas Other Electnc Gas Other Accel, Amort. Prop-Une No. 7,1, Uberanted Depr. Prop. -Une No bl 7,2, 451,384 586 35,400 59 Def'd Fue4 Costs-Orne No. 27 7,3. (51,195) (73) (7,936) (16) Oenw*-Une No. bl 7,4, 111,988 22 6.662 Totat 7.5. 512.177 535 34,126 43
- Elaborate m ' Notes & Remarks'sf significant.
(f) Includes convertiene securmee (specay) N""" (g) includee Unamorttred Prenwum and Discount (Net) $ I3'907) Other toesenbe) First Mortgage Notes - $14,025; Secured Notes - $32,000; Installment Purchases - $285 (h) Long Tonn Debe $ 4 6, M ; Pre 4ned Stock Subsect to Mandat>ry Redenpean $ . Other (Desenbe) $ (1) Ts" incbdes Commercial Peper $ . Gas storage loane $ AvveGe short4erm dets dumg year, based on numbw of days outstandng $ b'l71 (J) Accumulated Defened Investment Tas Credits. Electnc 7,7, 247,447 ,, Gas 7,8. Other 7,9, 310 7,10, Totai 7,11, 247,757 NOTES & REMARKS: (1) Investment in Three Mile Island Unit No. 2 (Including Nuclear Fual Core)-$627,238 Less Accumulated Deprecia tion and Amort izat ion-S 328,445. (2) includes Det . Costs-Nuclear Fuel Disposal Fee-$59.061; Def. Costs-Oyster Creek Outano Net-S61,874; Def. Income Taxes-$88.498. (1) Includm obligat ions tr der n Capital Leases-$26.144; Reserve Capacity-$45,994. (4) Includes Ohlinations Under capital Leases-$66.758; Deferred Enerny Credits-$119,283; Interest Accrued-$42.868. (5) Includes Def erred Cred i t s-Nucl ear Acc ident-Cleanup Revenues and State Funds field in Esc row-$ 5,933 Nuclear Fuel 15'1sposal Fee-$97,166.Def. Credits-Nuclear Accident-Industry Funds lleld in Escrow-$5,039;
l
- SCHEDULE Vill-UTILITY PLANT BY FUNCTIONAL ACCOUMTS (Thousands of S)
CONSTRUCW EWWWES4c) o g g FOR POTES-SEE SCHEDULE in-PAGE 10 9 occVM PROV ] m FOR DEPREC . 4 6 UTILITY AMORT ANo For Wed ESTIMATE AS OF i PLANT (a) DEPL tta year (d) For heut Year for 2nd Vr Fod f or 3rd Vr fos i 1986 1987 1988 1989 (Eutnc orvy) ELECTRIC Q
- 1. Intangde Plant s.t. 9,069 y
! Production Plant: $ 2 Steam e.2. 1,017,565 442,993 77,114 81,000 t~ g , 3 Nuclear
- a s. 1,694,591 528,493 139,606 102,000 g g
, 4. Hydro e.4 23,480 7,940 1,523 2,000 g g 5 Pumped Storage . e 5. 32,164 6,631 836 1,000 g g
- 6. Gas Turtune .
a s. Not Available - (4 235,236 122,713 8,275 1,000 ! 7. Other( CT.CC.IC3 e.7 ] 8 Total Producton Plant e s. 3,003,036 1,108,770 227,354 187,000 g g
- 9. Transmission Plant a s. 765,149 246,028 35,674 31,000 H -f 2,093,122 603,329 183,846 168,000 Q
- 10. Distnbuten Plant 8.10.
255,824 70,890 57,517 94,000 h r-
- 11. General Ptant a.i t .
- 12. Subtotal s.ir. 6,126,200 2,029,017 504,391 480,000 o g
- 13. Miscellaneous Plant (e) . e is. 28,190 205 g 14 Construction Work in Progress . e.14 301,387 ............. ............. ,,,,,,,,,,,,, ,,,,,,,,,,,,, ,,,,,,,,,,,,,
g m
- 15. Plant Acq. Adj. & Other Adj. e ts. ============= nunni,vemens inns =======nu : ::: ..... H
- 16. Elec. Plant Excl. Nuclear Fuei . a.is. 6.455.777 2.029.222 504,391 n) 480.000 $ .<
247,432 74,815 36,000 - m
- 17. Nuclear Fuel . . . s.37, 7.032n3 s.is. 6,703,209 2,104,037 512,323 516,000 m
- 18. TOTAL ELECTRIC PLANT .
GAS
- Includes TMI-2 g j 19. Intang@e Plant . a.is. @ $
- 20. Production . . . s20. $ 0
- 21. Underground Storage (g) . e.21 3 $
- 22. Other Storage s.22. 0
- 23. LNG Terminating & Processing a 23
$* g a
- 24. Transmission ... ... e.24 Q g
- 25. Distnbuton ...... . e 25 q 3
- 26. General . ... e2s. @ M
- 27. Subtotal . . .. s.27 p L M
{
- 28. Miscellaneous Plant (e) . . e2s.
- 29. Constructen Wbrk in Progress . e.29 nux.uunanmuun muunnuunnuras unmannuunnunu unwananussman
- 30. Plant Acq. Adj & Other Adj. . a.33. ,,,,,, ,,,,,, ,,,,,,,,,,,,, , ,, , ,
- 31. TOTAL GAS PLANT , . e.33 n3 OTHER UTILITY PLANT
- 32. Steam Heat & Water . 33, 5.987 n>
t 516 432
- 33. Capital Leases s.33. 37,744,n3
- 34. TOTAL OTHER UTILITY PLANT s.34 43,731 516 4U m g
- 35. COMMON PLANTQ. . . e.35 enn n) o 6,746,940 2,104,553 512,755 n3 516,000 m
- 36. TOTAL UTILITY PLANT . . . s.3s. e
. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ - _ _ _ _ _ _ - _ _ _ - - -_ ___N
PAGE 10 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1986 PAGE 10 GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE IX-NOTES TO UTILITY PLANT BY FUNCTIONAL ACCOUNTS (Thousands Of $) () Deprecable Property as of December 3t: ELECTRIC: OTHER: 6,178,057 lg,3, l 5,762 Total Electnc l9.1, l 7,,,% GAS: COMMON: Total Gu l9.2, l Total Common l9.4. l (b) Compoone tnok depreciason sate for Depreciable Property as of December 31:
% Other % Common % Overal Rate 3.40 g Electnc % Gas Estimated Construction Expendeures mctude Anowance for Funds Used Dunne Construcean-Veelor No._ Indicate in total the AFUDC smounts included (c)
(encad> in mat : N.rt Year $ 26.000 2nd year s 3rd year s (d) Excludes Purchased Property. Report expenditures, rather than transfers to usiny plant. (~) includes Exmirimental Plant Uncienseed; Leased to Others: Held for Future Use; Completed Construchon Not Claseshed, and Other (Spec #y) (f) Should agree wth Construchon Expenditures shown on unos t through 8. Schedule X boiow. See Note (b) Schedule X for amounts of Allowance for Funds Used During Construebon. (g) includes nons:urrent gae "For Reported Year * $ (h) inciudes intangibiu s I . One No 32.$ UneNo (i) Esemated amount applicable to Utilny Plant:l9.9. IElectnc $ - Gee $ Other $ Esemated amount apphcable to Accum. Prov. for Depreciation:[9.10, lElectne 5 : Gass : Other S SCHEDULE X-ADDITIONS AND RETIREMENTS TO UTILITY PLANT-CURRENT YEAR (Thousands of $) Construccon Espenditures Purchases & Gross (exb) Acquissbone Addsbons(c) Aeurements Other Entnes Not Addnions 10,1, 504,391 504.391 41,141 (176,927)* 286.273
- 1. Elec. Excl. Nuclear Fuel
- 2. Nuclear Fuel . 10.2, 7,932 7,932 7,593 15.525
- 3. Gas .. 10,3,
- 4. Steam Heat......& Water 10,4, 432 432 241 (19) 172
- 5. Property Under 10,5, 6.
Capital Leases 10.6, (958) (958)
- 7. 10,7, '
10.8, 512,755 512,755 41,432 (170,311) 301. 012 (d)
- 8. Total .
(1) Should agree with Colur'in *Constructen Expenotures-for Reported Year"in Scheduie vill-Page 9 (b) includes Anowance for Funds Used Dunng Constructon;l10.9. lEsctne exclueng Nuclear Fuel $ 21.227 . Nuciear Fuei s (85) Gus ; Other 1 Totai s 21,143 (Excluding income taxes of $3,040) (c) Gross Adddons should be the sum of the Constructon Expenddures and the Purchases and Accuisition columns Should agree with Schedule Xil. Lir's 2t. (d) The Total Not Additons should agree mth the not change in Total Uhlity Ptant over last year (Une 36, Scheduk Vitt-Page 9), and should be the sum of Gross 1 Addstnons (ConstrucDon Espenditures plus Purchases and Acquisit>ons), less Retirements plus or minus Other Entnes.
- Includes $(195,000) attributed to restatement of prior fiscal years to reflect change in accounting standards connected with implementation of FAS 90, see CPU 1986 Annual Report, Page 39, Note 3.
l i _. _ . _ .
PAGE 11 UNIFOR] STATISTICAL REPORT-YEAR ENDED DECEMIER 31,1986 PAf E 11 i GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE XI-CHANGES IN SECURITIES DURING THE YEAR New Securttles issued During Yeer: unet PMee. I o To M Amount (b) Type of Number of (Thousands Proceeds (c) Cost (d) P_nci YA DescMpean of leeue(s) of 3) $ or % % $ or % % h Date Sharea (Thouseds) of p., of p., (e) (f) Mooay Common issues (g) 9, None 2. 3. 4. 5. 6. 7. Preferred and Preference Stock
- 1. None _
2. 3. Bonds and Debentures
- 1. First Mortnane Bonds
- 2. Due 2016 25,000 97.00% 6.70l* 49% 6.566* Pub. N 12/31 3.
4. 5. 6. 7. Notes (t year or longer based on ongonal matunty) Lonn-Term Notes 2,500 2,500 Variabl e 100% MLT Pvt. N ** 1.
- 2. Secured Notes 32,000 32,000 10.877 1007 10.87% Pvt. N 4/20
- 3.
- Fixed rate for 3 years: bondholder may con fert to zariable rate there fter i 4, ** Initial loi n mad e < .n 9-26-84 Securttles Reecquired endor Retired (Describe and report in thousands of 8):
- 1. JCP&L - Bonds - S20,957 Penelec - Bonds - $65,833 4 2. Debentttres -
3.240 Debentures - 7,806
- 3. Preterred Stock - 28,750 Preferred Stock - 34,900
- 4. DOE Agreement - 2,771 DOE Agreement - 2,771
- 5. Met-Fd - Bonds - 10,000 CPUSC - Notes 28.947 !
- 6. Debentures - 1,980
- 7. DOE Agreement - 5,543
- 8. See Individual Subsidiary 1986 USR Reports for more detail on individual issues Security Reclassificatione and Conversions (Describe and report in thousands of 8): 1
- 1. l l
2. 3. 4. S. (s) Report each atvdual esue separate 8y (sncO&g securtes issued as deveends, as we# as new placements). using additonal sheet d necessary Specify matunty d e rate par value. converttukty, new or refunding if convertibbs. bnefly desenbe terms of conversinn (b) Show prrepel amounts %r Bonds. Debentures and Notes, show stated values for Pre' erred and Preference Stock, and offerng pnce for Corwon Stock (c) Proceeds should te synonymous ogh pnce pad by underwnters (d) After undarenter's commissons (e) Int 4<t symDois Pvt-Prmate, P@-Pubhc. and Prt-Parent. (f) Insert symbois- C-Compettve and N-Negotiated. (g) Indicate by the followeg symbots PUS-Pubhe: DRIP-Dvdend Asenvestment Pian $R-$helf Aegistration. ESP-Employee Stock Plans. Other ISpeci4)
PAGE 12 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1986 PAGE 12 Company _ GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIDARY COMPANIES SCHEDULE XIl-STATEMENT OF CHANGES IN FINANCIAL POSITION (Thcusands of $) (Detail Material items Not Shown On Form) f SOURCE OF FUNDS l Funds from Operations: l12.1, j 205,247
- 1. Net locome Af ter Preferred (a) . . . .
Pnne pal Non-Cash Charges and Credits to income:
- 2. Depreciation and Depletion (b) . . . .... .. .. 12.2. 225,143
- 3. Amottization (Desenbe in Notes & Remarks below)(1) . . ..... 12.3. 54,690
- 4. Defe'Ted lncome Taxes (Net)(c)(Incl. $14,664 Assoc. With other Income) . 12,4, 15,920
- 5. Invet.tment Tax Credit Adjustments (d)(Exc1. $2,150 PAYSDP Cred ita) ...... 12.s. I7.481
' 6. Allowance for Funds Used During Construction - Other Funds . . .... . 12.s. ( 16,186 3 i 7. Other Internal Sources (Net) . . . .... . .. .. ...... . 12.7
- 8. FAS 90 Accret ton . . ..... . 12,s. (32,800) 1 12.9.
- 9. . . . .... . .
- 10. ... ...... ... 12.10.
- 11. .. . .. . . ., 12.11
- 12. Total Funds from Operations .. .. . .. . . .. .. .. ... 12.12. 469,495 i
Funds from Outside Sources (New Money):
- 13. Long-Term Debt (e)(f) . . . .... . .. ... .
12.13, 59,500
- 14. Preferred and Preference Stock (f) . .. .. .. .. .. .. 12.84
- 15. Common Stock (f) . . . . ....... . .. . . .. ...... 12.15.
- 16. Net increase in Short. Term Debt (g) .. . .. . . .. . . ..... 12.t s.
44,248
- 17. Def erred Energy Cos t s, Net .. . .. v2.t r. 81,279
- 18. Othor(2) .. .. . .. 12.i s. 102,573
- 19. Total Funds from Outside Sources . .. ..... . . 12.19. 287.600 l 20. Total Sources of Funds .. . .. . .. . .. . 12.20. 757,095 l APPLICATION OF FUNDS 4
- 21. Gross Additions to Utility Plant (inct lard)(h) . .. 12.21, 512,755
- 22. Allowance for Funds Used Dunng Construction - Other Funds . . .. . 12.22. I 16,1861
- 23. Dividends on Preferred and Preference Stock (i) . . . . 12.23.
- 24. Caah Dividends on Common Stock (j) . . . . t 2.24 Funds for Retirement of Secunties and Short Term Debt:
- 25. Lorg Term Debt (e)(f) . .. .. .... 12.25. 149,848
- 26. Preferred and Preference Stock (f) . . . .. . .. . ta re. 63,650
- 27. -- - - . ... . . . ... 12.27
- 28. Net Decrease in Short. Term Debt (g) . ... .. ... . 12,2s.
- 29. TottJ Funds for Retirement of Secunties and Short Te", Debt . ..
12.2,. 213,498
- 30. I. eased Nuc lear Fuel , t 2.30. 4,685
- 31. Det erred Costn - Nuclear Accident , Net , , , , , ,
,,,3,, 18,911
- 32. Reserve Capac itY . , , . . 12.32. 23,432
- 33. Total Other Applications (Net) . . .... .. .. ... 12.33.
- 34. Tota' Application of Funds .. . . ,. , 12.34 757,095 (a) Shouw agree ash Schedue 11. Lee si' (f) Net proceeds or paymeMs (t4 incbdet $ charged to cleareg and other (g) Includes Commercial Paper $
accounts a 3t mcbded in Schedule 14. Lees 4 & 5* (b) Should agree eth Scheduie X. Line 8. Cobmn f (c) Should age te wth Schedule it. Lres 11 & 12' (i) Shoud agree with Schedule it. Lme 38' (d) Shoud agree wth Schedule ti. Lee 13' (i) Should egree adh Schedule 11, Line 31 (e) Bonds. Detentures and Other Long term Debt I j 9tret.e.p u e.o.- (ai I,ine I above represents Net incone After Preferred Dividends NOTES & REMARKS: (1) includes Property Losses, Oyster Creek OM1, Nuclear Fuel Cost, Spent Fuel Contri, Unrecovered Plant Study Costs and excludes Debt Discount Expense and Premium. (2) Includes Sala of Nuclear Fuel and Decrease in Other Working Capital items.
PAGE 13 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEM:ER 31,1986 PAGE 13 Company GENERAL PUBLIC UTILITIES CORPORATION AND SUBSIDIARY COMPANIES SCHEDULE XIll-EMPLOYEE DATA Anocate e sectnc, cas. and oiner uomy D.cartm ets common omrnoyees meio devote part of tiev ame to Electnc and part to oas. and or Other Umay Departments Essmate splita on bas.e of payfoll dosars or any other reasonabut basis NUIBER OF EMPLOYEES (Average For Year) oTHEn ELECT 1uC oAS UTIUTV DEPTS. TOTAL
- 1. Operation and Maintenance . tit.
- 2. Construction . 13.2.
- 3. Other (Describe) 13.3.
4 Total . . ... . 114. 13,198 (A) 4 13,802 SALARIES AND WAGES (Thousands of Sf') S. Operation and Maintenance . its, 326,246 (A) 228 3g4n
- 6. Construction .....,.. ,ye, 83.103 (A) 91 83,194
- 7. Other (Descnbe) Note (B) ,3y, 105.610 ygq
- 8. Total . .. . . t3 e. 514.979 yo sj s, >ug
- 9. Payroll. commissions and bonuses applicable to Merchandising only (included in Une ). . . I t3 9. l FENSIONS AND BENEFITS (Thousands of Sfb)
- 10. Operation and Maintenance . 13.10, 52,108 18 52,126
- 11. Construction ....... 13.11 11.I14 12 11,126 15,991 15,n93
- 12. Other (Desenbe) Note (B) ,1, ,,
- 13. Total . . 13.11 M ,215 10 70,745 (a) Do not victude Pensons and Benen ts (b) Enumerate tre types of Benef+ts inch 4.d-such as f%nsons. Us insurance. Hospitaustion. etc.
Pensions I, f f e insurance llospita1izatinn Worl< men's Compensation i Other Ffiscellaneous Expenses NOTES & REMARKS: (A) Includes 3,768 CPUSC, CPUN and bargaining unit employee salaries charged to operation and maintenance and construction accounts and not directly to the navroll account of SLO 3,668 and $18,658, respectively. Average employees were not allocated because the GPU System employees are not always assinned solelv to oneration. tnnintenance nnd construction. I i (H) lucluden l'uel Stock Expense Undistributed. Storen Expense UndistributeJ,
' transportation 1:xpense Clearing Accounts, Fliscellaneous Deferred Debits and Accotants Receivable.
PAGE E-14 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMIER 31,1986 PAGE E-14 Company State of Total System d SCHEDULE XIV-CLASSIFICATION OF ELECTRIC ENERGY SALES, REVENUES AND CUSTOMERS Comparmes operatmg m more thart one state should complete this schedule for For eel state eacf1 state in which they operate. Use Only c+ code RAEGAWATTHOURS OPER. REVENUES CUSTOt4ERS (e) (thousands of $)(a) AT VEAR END. AVERAGE-12 4005. Selee to Ultimate Customere
- 1. Residential (bf . 14,1, 11,778,847 s 1,107,380 1,548,295 1,533,302
- 2. Commercial or SmaI Lgt. & Pwr.(cf 14,2, 9,654,029 816,261 180,991 178,891
- 3. Industnat or Large Lgt. & Pwr (c) 14,3, 11,855,575 735,692 9,607 9.673
- 4. Public Street & Highway lighting 14,4, 155,180 27,401 2,937 2.912
- 5. Other Sales to Public Authontres 14,$, 105,898 8,719 420 431
- 6. Sales to Railroads and Ratlways 14.6,
- 7. Interdepartmental Sales t 4,7,
- 8. Other Sales (Specdy) , 14,8,
- 9. Total Sales to Ultimate Customers . 14,9. 33,549,529 2,695,451 1.742,750 ,o3 1,725,209 ,d)
Sales for Reeale 14.10, 85,328 3,868 8 8
- 10. Investor Owned Electnc Ut.fmes
- 11. Cooperatively Owned Electnc Systems 14,11, 767,313 37,504 3 3
- 12. Municipally Owned Electnc Systems 14,12, 368,067 19,323 15 15
- 13. Federal & State Electne Agencies 14,13, 14,14, I ,2.'O , / 08 60,695 26 26
- 14. Total for Resa!e 14,15, 34,770,237 2,756,148 1,/42,276 1,725,215
- 15. GRANO TOTAL .
- 16. Less provision for rate refunds 14,16, 46
- 17. OTHER ELECTRIC REVENUES 14.17, 28,bb3
- 18. TOTAL ELECTRIC OPERATING REVENUES .
14,18, 3 2 + Mb + 8
; 'cuammer .+ rece= sp=e seenvec j no,,de,,,, 94,19, 2,899,881 s 251,435 197,610 194,246 ca""*c* Not Available Apt sees uwer ue .d 14,20, s 'o 'g)
As osse, 14 21. $ N (el State pecerenge of n,enwaft%nors or Opmesng Anvertes ont each cessr o new tmdcat wasch) seiert to be raw m%smiet Aeesser*ef % commerew 4 %. bdusines % 00m(90erM j ' or e@ cue by symbol te) these elestes of setes Ney covered 1 fois arence t .ed mroue ewerc ,re wweene* rum r.: tu cieuse, m cur.-* var r um cioune : 112.738 tocm ess 50 790 o'+,orm,.e> urwedno.wes ior uwh on in.isi {b) Reew!sr'es- Annum bWh Use. Anstel clores e O eruf Revenue Per kWh Avyege Armum bWh U,e Per Cue'omer 14J2' D
- UII'bbdIEFI-i A..ege Annus turne e.s 14,929*** 7,682 ***
14'23' i A -ege nev-=e r= hwh . s 1,294.42 ' 722.22 14,24, 8,671 9JoI rente
' cents
* (c) Inecre eteseksum by s%r'a cut to eiespep ofe parts of coppans of Leen 2 and 3 Gme the cedrie used by Comper'y a classhwig me cuewnere vWo the respecbve groups. eleo treih pont bereeen Lego and Smes L q;ht seuf Powe
* <di Encodee l :4.25.1 4. ,es, .nd, es.e,oge -in m- > u-,e cueiom.. cou, ed ,e ,,en -e be s. o, e-. me. s . . .s.e, honn e,c
- le) Reprwt fois hWh genes (48 uteel pid rofW Revenue for Pete Cuefomers who un pwtr4y se Per prmccel tource for opere heehng lec4def et (Pet f and 7 retrocer#O heport customerg i even though orner date e not avocable
! * (f) Repnet here what e consajerad to be the eveeye annues heseng and cootn0 de9'oe day for the terreory servet een etertecey by your corier*y, en a cowwer yew besie 4 otter ten 65 dngree base speedy near,y 0 yee oey-t (seet vow. deyn daye 2 Avrege vow. besat on veers espea ace doyee days coonne cera Day- t tema veer, deg<ee de,s a Average yew based on yees e,cer e, :. doyee de3, fel ><bdes l 14.26.l (m year one (e.wege.- 12 mne I d.cnas un,te e ac imeit buermos me,w awa.ed Notes & Remarks:
** ""I " # D*"
PAGE E-15 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMIER 31,1986 PAGE E-15 Company State of Total System d SCHEDULE XV-CLASSIFICATION OF INDUSTRIAL (OR LARGE LIGHT AND POWER) 4 ENERGY SALES AND REVENUES
- compen.es operang in more een one state enouid compwe ne schedui. ior each state m which they operate.
- If practica, please gNe a breakdom, of your industnal (or Large Light & Power) Sales and Revenues by type of Industry, preferabiy by the Mapr Mmmg and Manufactunng Groups of me Standard industnal Class 4ationta) If not coded stnctfy by Standard Industrial Classkation, please give comparabie eformation by any smier groupmg you
; may have adopted if you cannot Nrrush me c ormaton r on a comprenensive basia, data for your aergest vidustnes wouid be use8ul(ten 8 possete).
Where a customer or estabhshment has operations portainmg to more man one edustr/ the precipal type would determee the class 4ation. REVENUES j TYPE OF INDUSTRY S I C. NO fa) MEGAWATTHOUR C ALES (thousands of $) i MINsNG Metal Mining . .. , . . 10 15.1 16,535 s 1,440 Coal Mining .. . . . 11 & 12 15.2 577,119 30,911 Oil & Gas Extraction . 13 15.3. 19,584 1,42/ Mining & Quarrying of Nonmetattic Min.(except fuels) 14 15.4 I76,911 11,694 15.5. Total Mining 15 s. 790,149 47,469 MANUFACTURING Food and Kindred Products 20 15.7 772,247 50,615 j . . . Tobacco Manufacturers . . . 21 15.8 I1,297 H25 4 Textile Mill Products 22 15,9. I70,176 8,I?7 Apparel & Other Finished Products made from fabrics l 1 & similar matenais 23 15.10, 76,311 6,I48 Lumber & Wood Products except furniture 24 15.I1, 201,471 13,019 Furniture and Fixtures 25 15.12, 61,060 4,8H4 Paper & Allied Products 26 15.13. 901,608 50, M 2 , Pnnting, Publishing & Allied Industnes , . 27 15.14 190,110 11,864 l Chemicals & Allied Products 28 15.15 878+099 60,7 % Petroleum Refining and Related industries 29 15.16. 107,689 16, 127 1 Rubber and Misccilanecus Plastic Products 30 15.17, 625.90H 40.9R9 Leather & Leather Products . 31 15.18. 40'490 2.470 Stone. Clay. Glass and Concrete Products 32 15.19 169,800 42,111 i 2,139,921 Primary MetalIndustries 33 15.20, I I 8,15 5 Fabncated Metal Products except machinery & transportation equipment 34 15.21, 479,794 12,828 Machinery, except Electncal 35 15.22, 598, S H 'e 30,277 Electrical and Electronic Machinery. Equipment & Supplies 36 15.23. I,104,034 72,528 Transportation Equipment 37 15.24 251,958 15,768 M:asunng. Analyzing & Controlling instruments; Photo-graphic, Medical & Optical Goods; Watches & Clocks 38 15.25 178,468 13,808 Miscellaneous Manufactunng industries 39 15.26. 228+385 I8*924 Military 1:stablinhments 15 27, 246 "?? 21 H81 Total Manuf acturing . 15.28 10.4 I4' 35 M4'645 Total Mining and Manufacturing . 15 29 11,224,503 692,114 l
- Industrial Customers' with demands below kW 15.30.
Other " Industrial Customers' not chssif ed 15.31 Non manuf actunng ' Industrial Customet s' . t 5.32, 611,072 43,578 Adjust for Differences in SIC CodingH( * ) is 33 i TotalIndustrial or Large Light & Power (bl . 15.34. I1> N +575 S 7 M,692 l ta) The SleMard Industnal Classharon es punished m manual form by the U S Gevernment Pnelmq Che and es available through the Supent'temfaat of Documer'ts it 4 blad pomaW as an aid m secunno uni ormety f anri compaenb.hty e the presentation of statistical da!4 collected by vapous agencies of the U S Govemment, Sute Agenc+es. Trade Assocafons. and Pr'veia notearch Agenc es (b) Anmuets SNst! agree we nee 3 (cos umes 1 and 2) of Svedur e XIV-Page E 14
PAGE E-16 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMIER 31,1986 PA!E E-16
- Company State of Total System G SCHEDULE XVI-SOURCE AND DISPOSITION OF ENERGY state l
Co-Code Comparmes operat ng n more than one state should complete this schedule for each state m whch they operate. Source of Energy COST fet Generation: MEGAWATTHOUf1S (thousands of $) 16.1, 17,685,601 s 431,914
- 1. Steam, Conventional ,. . . . . . .
- 2. Steam, Geothermal ... . .. 16.2 16.3, 6,078,757 284,485
- 3. Steam, Nucicar . . . . . . , . .
- 4. Hydro . . .. .. s. . . . 16,4, 244,619 3,636
- 5. Pumped Storage . . .. . .. . . 16.5 362.419 1.890
- 6. Gas Turbine . .. . . . . 16.6.
1,288,386 42,040
- 7. Other (Specify) ( I nc l . C .T. , C . C . a nd 1. C . ) . 16.7 Less: Energy input for Pumped Storage 16.8.
538,489 ,,,,,,,,,,,,,,,,,,
- 8. .
- 9. Total Not Generation ... . ..... 16,9, 25a121.291 763.965 Purchased Power, inct. Net Interchange (Account 555).(b) 16.10.
12,792,104 438,891 1
- 10. Investor Owned Electric Utilities . . ...
- 11. Cooperatively Owned Elect. Systems . . . 16.11 Public Agencies (incl. Municipals) 16.12, 100,719 2,945 l 12. . . . .
- 13. Other Non-Utility Sources .. . . .. 16,13, 384.242 13.220
- 14. Internationalimports( + ) . . . . 16.14 .
- 15. International Exports ( - ) . . 16,15.
l 16. 16.16.
! 17. Less: Energy lnput for Pumped Storage (if applicable) .. 16.17, xxxxxxxxxxxxxxxxxx
- 18. Total Net Purchased Pbwer-in.(out) . . 16.18 13.277.065 455.056
- 19. Rec. from own Co. outside state . . 16.19. .
- 20. Total Net Energy for Distnbution 16 20. 38+398+358 vinnvinnumuuruv==v J 21. Energy Wheeled (for accounts of others)(c) . 16.21 L ,090,413 xxxnnxxxxxvinuxx
- 22. Generation Control and System Dispatching 16.22 unuxxxxxxxxxxxx,wjgt 8.834 l 23. Other Expenses (d) . . 16.23. x x x x xu ru n u nux n n nx.
81+494
- 24. Total Production Expense (Electric) 16.24 xxxxximmininvinnrx $ I+309' M Disposition of Energy
- 25. Total Energy Sales (e) 16.25. 34,770,237_
i 26. Used in Electric & Other Depts and Furnished Without Charge 16.26. 735.284
- 27. Total Energy Accounted for (25 and 26) . . 16.27, 352 505,526.
- 28. Energy Lost and Unaccounted for(e) ... 16.28, 2,892,832
- 29. To own Company in other states . 16.29,
- 30. Total Disposition (Lines 27 + 28 + 29 = Line 20)(a) 16.30.
38,398,358
- 31. Energy Wheeled (for accounts of others)(c) . 16.31 I 090.413_
; (a) Exclusse of energy is purnpog if combeaton Hydro and Pumped Storage Staton. Mocate Stanon l expenses to each source of generation i (b) Purchased Power (from all sources) 16.32 8,764.190_ 352,460
' interchange necewedtGross) 16.33. 4.H21,198 110,765 ,
- intercha ge Deliveredtoross) 16.34. (308,323) (8,169) !
fotal Net Purchased Poweran toutJ-Should agree with tre 18 16 35 I3,277e065 455,056 If Company purct'ases all or most of its M,Nh supply from other utees or agencies, gne the name of such suppt'ers and the MWh purchased from each (c) If Company trensmde power of and for another system and such power es not mcluded as both a rece1pt and delivery e Purchased Ibwer account, show on Unes 21 i and 11. the MWh wheeled. 2 (d) Includes charge or (cred4) for de' erred fust costs S ' 1 untsiled MWh (e) includes eeect of , NOTES & REMARKS: I
n % Q SCHEDULE XVII-MAXIMUM DEMANDS AND NET CAPABILITY AVAILABLE AT TIME OF COMPANY PEAKS-CALENDAR YEAR (MW) m m. OTHER ACTUAL caTa af TiesE OF maziasues otasamoi.umi Canaan;Tv af Time or Coespany naus Caes,emymeans
- Cenpany'. Ouse Firm Purchase. F>ne sea. T. es.s> Firm warm S.am.
nour; as e o.a rmme prom om , oins, Enseine syman. Purca Fr m T. Osw ammes no On. Y.or Basee-- a; como.nemese traum. mew.6 C.penaryft) Osher S.urs El.cete Unmana. n m Summer P m 17,t. 6.60M 3 P!1 - J til . 7 /.7M7 1.7uu 9,586 5 l w ream 11 A't - Jan. 14 17.2 6.228 6.05o 6 P>t - Dec. 11 8.20s 8,315 1,825 1.825 10.120 5E o.c e., n tra 10,140 F Ti
.e., n.wm.a m o e. camp.n, == e.a exw mO
- t. ennu. 4eo meu.. e -a c3 e = an.,,g 64
<bs canp.av.esana.d u .num o.mana t 64I c u. sw.warea p , w w m o, m. am p nr e = e. an. a e. -. nm.a ace .r.e., or noe
- n. ca.noa, year summ., 6 . . _. uw, w,n., 6.533 uw 5E
- v. g.n., anno unni carrPaae .a a ===,.a as r rv. exu. e. capes, oe on .n.ca r. our a ,ve. = maa.n nc. E 88
- r_
_ un.__..- -.,_sm-.__,r_._ cv**** m._ _ , -. _ % 5d e., mc w , -
- noeia,ne. onncipe m.p.,nomo.s.,.ow,c o m amor to EEi cm nary w amans m or w s,.eim em% annum toma Facior B s e a on . D.m.na tw.<v.s as 3 eninue.s anau i capacey saciar 3 % n a on m. capacey at unney-f
*""** 0***'eang .iauem.at sva.m io.a ince, w a., or p li7.4. I summ.-
g winner 3 $3m 1
, m . , ,, o, . , , ,,m, - p n.,n. poo, Penne1vania - New Jer*" - 511rv1and Q]
93 o -4 5I s -< ano ww. n.m. ce nucan.r po r o com.ne owst .e .ans company . n.6. sea ~m o>
=3
>m
..Z NOTES & REMARKS:
C O m ED (A) Include << T'tI-2 Capacity of 906 554 (winter) and 880 FCi (sunmer) 5O ( P,) See Individual Subsidiarv lo86 l'SR Report s EO m
>E M EB 4 m nN h3 h3 0=
m* v3 T O m M 1 .'. N
. -- _.- ~ . - - - - . . . - - - - - - -- . - - - - - - - - .- . .-
PAGE E-18 UNIFORM STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1986 PAGE E-18 l Company State of Total System C9 i i siate SCHEDULE XVill-GENERATING STATION STATISTICS (a) Co Code Companies whch own plants or portions thereof ei more than one state should compiete in s scheavie for each state vi whch they are located HE AT R ATE l RATING IN NET KILOWATTS (8TU por j i FOR UNITS IN SERVICE DEC. 31 kWh not NET GENERATION j l NAME AND LOCATION OF STAfiON(b) TYPE (c) Nemoplate(d) Cepecility(e) generation) Megawatthoure l { j llomer City, llomer City. PA (Penelec Interest) SC 1,006,000 942,000 4,627 5,465,666 Shawv111e, Shawv111e, PA SC 640,000 609.000 10,210 3,805,002 Seward, Seward, PA SC 218,229 1"9,000 11,334 1,225,454 Front Street. Erie, PA SC 118,800 110,000 14,400 299,719 Warren, Warren, PA SC 84,600 88,000 13,546 357,554 Will iamsburn, Will iamsburn, PA SC 25,000 31,000 12,800 114,488 Portland, Portland, PA SC 426,700 399,000 10,330 930,029 l Conemaunh, iluf f, PA (Met-Ed Interest) SC 308.000 280,000 9,703 1,730,250 Titus, Readinn, PA SC 225,000 240,000 10,646 834,212 j Savreville. Savreville. KI SC 346.800_ 319.000 12.429 671,945 Keystone, Indiana, PA (ICPF,I Interest) SC 312,000 283,000 9.753 1,932,363
! Gilbert, llolland Twp. , ILI SC 126.100 119,000 12,241 230.371 l Werner, South Amboy, ft.I SC 60,000 60,000 12,034 88,528 ,
I Oyster Creek, I.acey Twp., N.i SN 550,000 628,000 10.822 1,299,311 $ Three Mlle Island Unit 1 Dauphin County, PA SN 871,000 800,000 11,052 4,808,889 Three Mlle Island Unit 2 Dauphin County, PA SN 961,200 906.000 (29,441) 1 Ilydro Stat ions 11 67,600 66,000 24',,619 , 20 Combustten Turbine and internal Combustion 1,141,200 1,487,000 241,156
) CT j C1!bert. 1101 land Two. KI CC 349.800 386.000 10,674 431,915 j Yards Creek, Blairstown, NJ ; (JCP61. Interest) PS 193,400 165,000 285,520 l Seneca, Warren, PA l (Penelee interest) PS 84.400 76.000 76.899 Other 120,000 611,315 sub-total 18.1, noniu= uni _ .nuiusunin nuinus 25,659,782 j Less Energy lnpuf fof Pumred $torage 18,2, ananannamananin min,urriersness manannmannan SM.W Totat- An statens Opera +ed 18,3. 8,115,829 8.115,004, 10,547 25,121,291 3, ) 4.) In wete to e,teg .8 s'.We op.e.tei sho. separre'y toe. st. hone o. net tM le.s.1 to omere l
l M n,m., tom as inc. inw. to, eyn e,m in *n. ev- ws em.wew. .* o ano nuce .e once+ , ona,a a,w nr ,w m pwer e.ma .= ne.m l m in ,,,,ca sc - si..m. carw.m.mm. m s ..m. Nort*r. H - Hyeo PS- Pumpad 9,w.go. t- Inteine C,v4etort Gt ---G fist >ne. 6f O - G newm.I. CC - Cmata'w'd Cyt.m. S i - sm,. w - w io. om is c .cm ! im ca. nwvecu.,e me mum n.-as. ,.ing nr in. i.,t- en.co, .*
- i., c- -. -, r..me .- ,,,, e.n.. n.m ron camp.n, e i.re s v,,t sh. e.,,,u, . 906.000 m.,
ae r.o . ..~.,, ,,q. ,2 /10 / 7 8 .,,, n.m. ., w,o,, TMi-2 , m Amet aHwm t.pd My in btng nM twm purch.,*, fmm cew rwnp.n*,) W D. comte 31 10,!ZUa000 tai >=as *ium tow am can**ca en Lee 9 Schwfue XVI- Pag. EM6
, . _ _ _ _ _ _ _ _ . . . _ _ . , , - _ _ . - - , , _ , . - . , _ , . _ _ _ _ . , _ . _ _ . , _-._.m_,.-__.___ _ _ - . _ . _ , . _ . - , _ _ _ _ _ _ . _ , , _ _ . , _ _ . . - . , _ . . - _ _ , _ .
._______.____.___ _ _ _ _ _ _ _ . _ _ - _ .- __ _ _m______
i SCHEDULE XIX-FUEL CONSUMED FOR ELECTRIC GENERATION l lI si.= m. 9 e g c - . e - . - , . m - - m w ..,,,,c m . ,m g h TOTAL useTS m CONSUtsED TOTAL COST AvtRAGE COST PER AVERAGE STU NET GENERATION BTU PER i (thousands) (thousande of SI Unn esimum Stu CONTENT (as towh M NETkwh @ GNeO OF FUELuself OF 40EASURE Under Bottere:
- 1. CoaqTonsgc) 19,1, 6,848 S254,470 537.16 150.51c 12,344 16,694,757 10,127 19.2 C
- 2. Come<Fbunosuct .
3 LagrutetTonsHc) 19,3, 4 19.4 O 5 OABarrods) 19.5, 1,391 27,061 S19.45 316.17c 146,461 618,477 13,839 j 6 19.6. g H
- 7. Gas #CF) 19y, 4,544 11,643 S 2.50 247.26c 1,035(t) 372.367 12,646 j 19.a.
_N. e 9 SuetotaFSteam Convertonal 19.9. .......... .. M .II* ,,,,,,,, 160.78c ,,,,,,,,,,,,, 11,685,601 10,310 $ Intemel Combuedon Enginee and Gee t-l
- 10. OeCas Turesne(Barrois) 19.10. g3 11 O&lnternaiCombustontBarroes) 303 9,602 S31.64 548.43c 137,356 200,477 8,733 se m 4 19.11- = 2
- 12. Gas <.as TAMCF) . 19,12. e Q 6,539 21,738 s 3.32 321.05c 1,035(f) 474,594 14,267
) 13. Gas-internas CorneustionguCF) 19.13. 19.14, N 3OO 3b7.77C ss==uassassne 675,071 12,623 l
! 14 Sucecta@nes 10. 11.12.13) ==......... : :: qs., ! wa - Gene,edon m
, 11 NuctearGrams) 19.15, 1,036 25,647 S24.76 38.16e 64,877(g) 6.108,200(c) 11,004 $ 16 TOTAL ALL FUELS 19.16. is s=======in 0350'Ihl w ===.ns== 13 5 . 6 8 c _ , ,, ,,,, , ,,,, , 24,468.872 10.547 0 f.6 Epa . i.isu. e t. W com se a.e. a.m and of .coe we r,n geww d d mW gi.m W aud.e kam m i = Ea c e, w.m s .co am.. an : M ****** "*****'********"'8*""*5****' O en s . sen m w-emy. s e and T."."ru 4 1 (e) D' -1 and ov e r ( reek (f) Per MCF (thousands) (g) Average METU content per k O j i SCHEDULE XX-EFFICIENCY OF STEAM-ELECTRIC GENERATING UNITS kilogram m L. masi .e.c sos o, een ' urn. (uo e i.n. -n ch . op.m.a = an annum cao.cir, v.cm, ae g m i AVERAGE AssNUAL FUEL COST PER NET "I3 seansE OF STATIOes Uesti NO. feet CAPASIUTY(KW) seEAT RATE kWh GENERATED a
-e
- Su Subsidiarv 199A l'SR Report s a
L*. 2 ] S.'
$ R 3 >
Gk O m m i i e f l
PAGE E 20 UNIFOR] STATISTICAL REPORT-YEAR ENDED DECEMZER 31,1986 PAIE E-20 Company State of Total System (3 SCHEDULE XXI-CHANGES IN GENERATING UNITS si ie
- c. coo.
compereee operenna a more men one ame erwe compe mis scheeui.
- each sw m *o mer =*rce-RATING IN NET KILOWATTS (e) Date in NAME ANO LOCATION OF STATION (e) TYPE (b) Nemoplate(c) Capability Statue (d) Service (e) y i
m were. .e un comre, pnrw era sv wve ce sewe r**y o.a.d o'e eene ini v .n sv-eos sc-siesm comeww SN-suc w== H-Hyee, PS-Pm sionage s-wacas cor+.ee of-ces twtww oro-Gemi cc-cent crew 4 - swer: w - wM se es eene wree tween eM daeerte twaw sei 6.. m.v. wee aw..mwn aem. owe eveg s e. mona. ww em te re.4 eyw me- n.,,.t se-me.r.d. a -sand u-thw cecnshna em Au - Amt.s tu w uMe coaev sema i., car wee t*, w=. .r.3 6.= s on,--am wcoa r, wve war e.ww.ca or eemar.t seme . e. ~e em ,.. NOTES & REMARKS: , l No channes in neueratinn unitu 1
PAGE E-21 UNIFOR] STATISTICAL REPORT-YEAR ENDED DECEMBER 31,1986 PAGE E-21 ' Company State of Total System O l SCHEDULE XXll-MILES OF ELECTRIC LINE OPERATED AND OTHER PHYSICAL DATA Compermes operehng in more than one state should complete Fue schedule for each State state in which Ibey operate i MILES 6F ELECTRIC llNE OPERATED a OVERHE AD LINES UNDERGROUNO UNES 1 DESIGN UNE Conduit VOLTAGE-kV Pole Miles Circuit Miles Senk Miles Cable Miles Trenemleolon , Under 22 kV , 22,1, I O2 kV and over; 22 to 30 kV 22,2, T to 40 kV 22,3, 1,415.29 1,690.55 16.62 60.20
' 18o 50 kV 4 22,4, 368.00 368.00 .03 .03 51 to 70 kV 22,5, 403.51 452.77 .12 .36 71 to 13t kV 22,8, 1,785.08 1.909.61 .21 .21 132 6143 kV 22,7, 14.23 14.23 144 to 188 kV 22,8, 189 to 253 kV 22,9, 1.247.55 1.499.76 254 to 400 kV 22,10, 147.90 147.90 401 to 600 kV 22,11, 471.77 471.77 t,0tb m)kV 22,12, , _
Yotet fanstmssco r 22,13, 5,853.33 6,554.59 16.98 60.80 Distribution Under 22 kV 22,14, 40,411.8'i n ,,,u ,,,,,,, g 5,955.f>4 11,890.95 22 kV end over: 22 to 30 kV 22.15, 1,620,50 198.79 675.58 31 to 40 kV 22,18, .l.379.29 619.58 270.46 722.93 41 to 50 kV 22,17, . _ 51 to 70 kV 22,18. . Over 70 kV 22,19, Total Distribution r 22,20, 45,41I.63 n ,,ps,m un,12 6,424.89 13,289.46 GRAtc TOTAL (T&D) 22.21, 51.264.96 ,, u n n ,n n ., 6,441.87 13,350,26 OTHER FHYSICAL DATA Numt*r Capac ty (kVA)
- 1. Distr: button Substatens (Includes Ut>Isry owned Industnal Substatens) Is244 I4,147,500
- 2. Line Transformers (Incbdes Network Transformers) 460,127 _18 ,154 ,8 4 r,
4 8 . 8
~f f
i q f I 1 1
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General Public Utilities Corpomtion , 100 Interpace Parkuay i lbrsippany, New Jersey 07054-1149 i (201) 263-6500 s ',
)
I i
1 GPU Nuclear Corporation i U Nuclear ::: ,o =s = 8o Middletown, Pennsylvania 17057 0191 , 717 944 7621 ' TELEX 84 2386 Writer's Direct Dial Number: April 23,1987 5211-87-2084 4410-87-L-0066 U.S. Nuclear Regulatory Commission Attn: Document Control Desk Washington, DC 20555
Dear Sir:
Three Mile Island Nuclear Station, Unit 1 (TMI-1) Operating License No. DPR-50, Docket No. 50-289 Three Mile Island Nuclear Station, Unit 2 (TMI-2) Operating License No. DPR-73, Docket No. 50-320 Oyster Creek Nuclear Generating Station (OCNGS) Operating License No. DPR-16, Docket No. 50-219 1986 Annual Financial Reports In accordance with the requirements of 10 CFR 50.71(b) and 10 CFR 140.21, the following financial information is being submitted:
-1986 Annual Report
-1986 Uniform Statistical Report
-1986 CPU Actual Source and Application of Funds Statement
-1987 GPU Forecast Source and Application of Funds Sincerely,
. D. u ill Vice President & Director, TMI-l HDH/SM0/spb:0859A Attachments GPil Nuclear Corporation is a subsidiary of the General Public Utilities Corporation
r , GENERAL PUBLIC UTILITIES CORPORATION & SUBSIDIARIES SOURCE & APPLICATION OF FUNDS - ACTUAL 1986 * ($ Millions) l [ GPU Jersey Metropolitan Pennsylvania Consolidated
- Central Edison Electric Sources of Funds Internal Sources Depreciation & Amortization $ 280 $ 123 $ '4 i $ 83 Deferred Energy Costs 81 55 3 23 Deferred Taxes 16 (7) 14 9 Investment Tax Credit, Net 17 14 -
3 Change in Wkg. Capital & Cash Changes ** 287 89 42 150 Total Internal Sources $ 681 $ 274 $ 133 $ 268 External Sources Long-Term Debt $ 59 $ -
$ 25 Preferred Stock - - - -
Nuclear Fuel Lease - - - - Short-Term Debt / Temp Investments (16) 33 4 (48) Total External Sources $ 43 $ 33 $ 4 $ (23) Total Sources $ 724 $ 307 $ 137 $ 245 Application of Funds Construction J. $ 492 $ 243 $ 114 $ 130 AFC 21 11 6 4 Maturities & Sinking Funds 211 53 17 111 Total Application of Funds $ 724 $ 307 5 137 $ 245 Crpitalization Long-Term Debt $ 1,783 $ 748 $ 428 4 559 Preferred Stock 425 163 140 122 Common Equity 1,786 812 402 562 Total .s $ 3,994 $ 1,723 $ 970 $ 1,243 Short-Term Debt 44 38 - 6 Total $ 4,038 $ 1,761 $ 970 $ 1,249
- Includes GPU Service Corporation and GPU Nuclear Corporation
** Includes retained earnings
e GENERAL PUBLIC UTILITIES CORPORATION & SUBSEDIARIES . SOURCE & APPLICATION OF FUNDS - FORECAST 1987 , (4 Millions) GPU Jersey Metropolitan Pennsylvania Consolidated
- Central Edison Electric Sources of Funds Internal Sources Depreciation & Amortization 4 265 $ 108 $ 72 $ 85 Deferred Energy Costs (95) (24) (42) (29)
Deferred Taxes 60 24 22 14 Investment Tax Credit, Net 9 6 1 2 Change in Wkg. Capital & Cash Changes ** 64 49 6 4 Total Internal Sources $ 303 $ 163 $ 59 $ 76 External Sources Long-Term Debt $ 100 $ 100 $ - Preferred Stock - - - - Nuclear Fuel Lease 123 70 35 18 Short-Term Debt / Temp Investments 37 (33) 53 17 Total External Sources $ 260 $ 137 $ 88 $ 35 Total Sources $ 563 $ 300 $ 147 $ 111 Applict. tion of Funds Construction $ 491 $ 263 $ 120 $ 103 AFC 25 15 6 4 Maturities & Sinking Funds 47 22 21 4 Total Application of Funds $ 563 $- 300 $ 147 $ 111 Crpitalization Long-Term Debt $ 1,801 $ 828 4 408 $ 565 Preferred Stock 425 163 140 122 Common Equity 2,000 899 456 613 Total $ 4,226 $ 1,890 $ 1,004 $ 1,300 Short-Term Debt 11 5 5 14 Total $ 4,237 $ 1,895 $ 1,009 $ 1,314 '* Includes GPU Service Corporation and GPU Nuclear Corporation
- Includes retained earnings J}}