ML19345B884

Forwards 801107 Rept Re TMI-2 Accident & Aftermath

ML19345B884
Person / Time
Site:	Three Mile Island
Issue date:	11/07/1980
From:	Condon V GENERAL PUBLIC UTILITIES CORP.
To:	SECURITIES & EXCHANGE COMMISSION
Shared Package
ML19345B881	List: ML19345B880 ML19345B884 ML19345B887 ML19345B896
References
NUDOCS 8012020668
Download: ML19345B884 (9)

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!r--, GENERAE I

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CORPORATION ' 00 **** ***Y Parsippany, New Jersey 07054 201 263-6500 TELEX 136-482 Wnter's Direct Dial Number:

- November 7, 1980

. Securities and Exchange Commission

~ ' 500 North Capitol Street -

Washington, D. C. 20549 Re: General Public Utilities Corporation File No. 1-3292 Jersey Central Power & Light Company File No. 1-3241 Metropolitan Edison Company File No. 1-446 .

Pennsylvania Electric Company File No. 1-3522

, Gentlemen:

l On behalf of the above captioned companies there are enclosed herewith #or filing under the Securities Exchange Act of 1934, threts sigrad and five conformed copies of a joint current report on Furm 8-k Because of the nature of a matter being reported - the accident at Unit No. 2 of the Three Mile Island nuclear generating station 'and its aftermath -it is believed that a joint report on behalf of the GPU System is appropriate under the circumstances.

Kindly acknowledge receipt of this filing on the duplicate copies of this letter and return in'the stamped self addressed envelopes enclosed for that purpose.

Very truly yours, General Public Utilities Corporation Jersey Central Power & Light Company Metropolitan Edison Company Pennsylvania Electric Company By:

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V. H. Condon, Vice President A. Levy

, G. Gu ':hrie S. Duvall A. Schwart: stein R. Nason i New York Stock Exchange (one signed copy)

Philadelphia Stock Exchange (one signed copy) 8012020(alsF l u

Jaruj CsarJ Eber & L;ht C.

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SECURITIES AND EXCHANGE-COMMISSION WASHINGTON, D. C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 10, i180 GENERAL PUBLIC UTILITIES CORFORATION (Exact name of registrant as specified in charter)

Pennsylvania 1-3292 13-5516989 (State of Incorporation) (Commission File No.) (I.R.S. Employer Identification No.)

100 Interpace Parkway, Parsippany, New Jersey 07054 (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (201) 263-6500 METROPOLITAN EDISON COMPANY (Exact name of registrant as specified in charter)

Pennsylvania 1-446 23-0870160 (State of Incorporation)

(Commission File No.) (I.R.S. Employer Identification No.)

2800 Pottsville Pike, Muhlenberg Twp., Berks County, Pa. 19604 (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (215) 929-3601 PENNSYLVANIA ELECTRIC COMPANY (Exact name of registrant as specified in charter)

Pennsylvania 1-3522 25-0718085 (State of Incorporation) (Commission File No.) (I.R.S. Employer Identification No.)

1001 Broad Street, Johnstown, Pa. 15907 (Address of principal executive offices) (Zip Code)

Registrant's-telephone number, including area code: (814) 533-8111 JERSEY CENTRAL POWER & LIGHT COMPANY (Exact name of registrant as specified in charter)

New Jersey- 1-3141 21-0485010 (State of Incorporation) (Commission File No.) (I.R.S. Employer Identification No.)

Madison Avenue at Punch Bowl Rd., Morristown, N.J. 07960 (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code: (201) 455-8200

' Item 5. Other Materially Important Events.

1. Rate Proceedings.

A. Pennsylvania.

Reference is made to the Current Report on Form 8-K for September 1980 for information regarding the September 18, 1980 order of the Pennsylvania Public Utility Commission ("PaPUC")

requiring, among other things, that Metropolitan Edison Company a

(" Met-Ed") ceas( and desist from using any operating revenues for uninsured cleanup and restoration costs" of Unit No. 2 of the Three Mile Island nuclear generating station ("TMI-2") and the complaint filed by Met-Ed in the United States District Court for the Middle District of Pennsylvania in response to that order.

On October 16, 1980, Met-Ed filed an appeal from the September 18, 19 80 - order with the Pennsylvania Commonwealth Court and the matter is pending.

As has been previously reported, by order dated May 23, 1980 the PaPUC fixed temporary rates for Met-Ed and Penn-sylvania Electric Company ("Penelec") effective June 1, 1980 for a period of six-months. In that order the PaPUC, among other things, reduced Met-Ed's and Penelec's base rates by approximately 4?.7 million and $12 million, respective 1;, as a result of its find-ing that Three Mile Island Unit No. 1 ( "TMI-1" ) was not "used and j useful in the public service" and that therefore the capital and operating costs associated with that unit should be removed from the companies' base rates. On July 29, 1980, Met-Ed and Penelec filed with the PaPUC complaints against these temporary rates; separately, Met-Ed and Penelec- simultaneously filed proposed general i

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base rate increases of $76.5 million and $67.4 million, annually, 4

such proposed increases to become effective 60 days later. Under the pertinent statute, proposed general rate increases are auto-matically suspended for a period of seven months from the time they would otherwise become effective unless the PaPUC otherwise directs. The proceedings relating to the Met-Ed and Penelec com-plaints and their proposed general rate increases have been con-solidated for the purposes of hearings and such hearings are being held. On October 27 and 28, 1980 respectively, Met-Ed and Penelec filed petitions to implement possible early determination of their com-plaints against the temporary rates and related matters. Copies of these petitions are annexed.

Met-Ed had also asked that of the $76.5 million general base rate increase requested, the PaPUC grant Met-Ed extraordinary rate relief of $35 million annually, which request the PaPUC de-nied on August 28, 1980. Met-Ed has appealed that order of the PaPUC to the Pennsylvania Commonwealth Court.

The PaPUC directed a management audit of Met-Ed and Pene-lec to be performed by Theodore Barry and Associates ( "TBA " ) ', and in October 1980, TBA submitted its report on the results of such audit (a summary of which was filed as an exhibit to the Current Report on Form 8-K for September 1980) . The PaPUC docket relating to that audit has been assigned to an Administrative Law Judge, and those proceedings have also been consolidated with proceedings relating to (1) the proposed contract between Met-Ed and Penelec with GPU Nuclear Corporation (which was recently formed) for the management by the latter of the GPU System nuclear stations, (2) the proposed contract between Met-Ed and

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1 Penelec for_the combined management of the two companies and P

(3) the _ complaint of the .JohnstNn Area Regional Industries '

against'the proposal-to combine the managements of Met-Ed.and l

Penelec.

j B. New Jersey.

As previously reported in the Current Report. on Form 8-K for September 1980, on September 16, 1980 the.Adminis-trative Law Judge'in the proceeding involving the request by Jersey Central Power.& Light Company ("JCP&L") for an increase in its levelized energy adjustment clause designed'to produce adA ditional annual _ revenues of S77.8 million (including $9.3 million for related taxes) issued a decision recommending that JCP&L's i

request be denied in. full, and the New Jersey Board of Public i

Utilities ("NJBPU") adopted this recommendation. A copy of the NJBPU's order, dated October 7, 1980, is annexed as an exhibit.

2.- Forked River Station.

As has been previously reported, following the TMI-1 accident on March 28, 1979, JCP&L suspended' construction on its p'lanned Forked River nuclear-generating station and began to explore i

various alternatives for the facility. At September 30, 1980, j JCP&L's' investment in the project was approximately $394 million, a

'of which 582 million reflects the accrual of allowance for funds  ;

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used during. construction. 1 When_it subsequently became apparent that a resolu-

- tion of- final plans - for the Forked River project could not be

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expected for some time, effective April 1, 1980, JCP&L suspended the credits to income of further accruals of allowance for funds used during construction, which at the time of suspension were approximately $2.5 million a month.

As reported-in the Current Report on Form 8-K for April 1980, as a part of its petition for a retail base rate in-crease filed with the NJBPU on April 29, 1980, JCP&L requested an increase of approximately S52 million annually in its base rates to provide revenue with respect to its investment in the Forked River station. On November 6, 1980, the Boards o'f Directors of JCP&L and GPU determined that the project should be cancelled in view of the continuing financial pressures and regulatory uncer-tainties which made continuation imprudent. JCP&L will request that the FJBPU permit it to recover through rates its investment in the project over a reasonable period. A copy of GPU's related news release is annexed as an exhibit.

3. TMI Investigations and Incuiries.

Investigations into the nature and causes of the TMI-2 accident commenced by various federal and state bodies are continuing. GPU is unable to estimate the full scope and nature of these continuing investigations or the potential consequences thereof to the investors in the securities of GPU and its subsi-diaries. GPU is also unable to determine the impact, if any, the results of such investigations may have on the proceedings to return TMI-1 to service and the efforts to cleanup and rehabilitate TMI-2.

4. TMI-2 Cleanup and Rehabilitation.

As previously reported in the Current Report on Form 3-K for August 1980, the staff of the Nuclear Regulatory Commission ("NRC") has issued a draft Programmatic Environ-mental Impact Statement ("PEIS") relating to the decontamina-tion and disposal of radioactive wastes at TMI-2. On Novem-ber 7, 1980, as part of its comments submitted on the PEIS, GPU advised the NRC that due to continuing regulatory delays and financial constraints, it now expected that decontamination of TMI-2, including fuel removal, would take from two to three years longer - to about August 1985 - and would cost an addi-tional $150 million. Total decontamination costs are now es-timated at S750 million (inclusive of approximately $100 million spent in 1979) without any allowance for inflation. These es-timates are in 1980 dollars and do not include the cost of modi-fications to meet post-accident regulatory requirements or the cost of ordinary maintenance and operation of TMI-2 expected to be incurred during the decontamination period.

A copy of GPU's related news release is annexed as an exhibit.

5 GPU Dividend. -

At its meeting held on November 6, 1980, the GPU Board of Directors determined not to declare a quarterly dividend on GPU common stock for the fourth quarter of 1980. This was the fourth consecutive quarterly dividend on GPU common stock which the GPU Board has determined not to declare. Following the TMI-2 accident, GPU had paid quarterly dividends at the reduced rate of S.25 per-share (from S.45 per share) in May, August and Novem-ber 1979.

6. News Releases.

StGsequent to the Current Report on Form 8-K for Sep-tember 1980, GPU has issued additional news releases concerning the TMI-2 accident and its af termath and other important develop-ments. Copies of such news releases are annexed as exhibits.

Item 7. Exhibits and Financial Statements.

Exhibits:

1. Copies of petitions filed by Metropolitan Edison Company and Pennsylvania Electric Company with the PaPUC requesting early determination of their com-plaints against temporary rates.

2. Order of New Jersey Board of Public Utilities, dated October 7, 1980.

3. GPU news releases.

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SIGNATURES PURSUANT TO THE REQUIREf1ENTS OF THE SECURITIES EXCIIANGE ACT OF 19 34, TiiE UNDERSIGNED cot 1PANIES HAVE DULY CAUSED THIS STATEMENT TO DE SIGNED ON T!!EIR BEHALF BY

. T!IE UNDERSIGNED THEREUNTO DULY AUTilORIZED.

GENERAL PUBLIC UTILITIES CORPORATION METROPOLITAN EDISON CollPANY PENNSYLVANIA ELECTRIC COMPANY JERSEY CENTRAL POWER & LIGHT OMPANY By GENERAL PUBLIC' UTILITIES CORPORATION

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By i .

V. H. Condon, Vice President Date: November 7, 1980 T

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