Exhibit 1
News Release
GPU Energy
2800 Pottsville Pike
Post Office Box 16001
Reading, PA 19640-0001
Tel 610-929-3601
Date: June 4, 1998
Further Information: Ray E. Dotter 717-720-5310
Pager: 888-584-3971
For Release: Immediate
Release Number: 59-98
GPU ENERGY EXPECTS TO CHALLENGE PaPUC DECISION
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Reading, PA - GPU Chairman and Chief Executive Officer Fred D. Hafer said he was
astounded at the action taken today by the Pennsylvania Public Utility
Commission which reduces transmission and distribution rates and offers no
mechanism for ensuring non-utility generation cost recovery. "The Commission has
taken the Competition Act, which was designed to introduce competition to
electricity generation, and turned it into a vehicle for rate reduction by
confiscating the property of GPU Energy and its shareholders in violation of
their legal and constitutional rights," said Hafer. "If the PaPUC final order on
our restructuring cases follows the results of today's preliminary action, GPU
Energy will vigorously pursue all available remedies to challenge the ruling."
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GPU ENERGY EXPECTS TO CHALLENGE PaPUC DECISION
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ADD ONE
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The company said that, in order to continue to be able to provide reliable
service to its customers, it must have the opportunity to recover prudently
incurred transmission and distribution costs as well as non-utility generation
costs. "The PaPUC's approach also violates the Pennsylvania Competition Act,"
said Hafer. "Apparently, no recognition was given to our historically low rates,
our need to recover our substantial non-utility generation costs under
government-mandated contracts and our need to maintain transmission and
distribution rates at adequate levels."
"The Commission failed to provide a mechanism to ensure recovery of the full
amount of the company's stranded costs related to non-utility generation, while
conceding our legal right to recovery of the actual amount of these costs." "We
cannot accept today's Commission action. It is very disheartening to take a
leadership role in bringing competition to our industry and choice to our
customers and to be treated in this manner," said Hafer. "It would be
unfortunate if the Commission's action today had the effect of delaying the
benefits of customer choice that the state has correctly sought to create. This
is not a good day for our customers, shareholders, vendors and employees or for
the Commonwealth of Pennsylvania."
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