Rule 424(b)(3)
                                                          File No. 33-49669





          PRICING SUPPLEMENT NO. 2, DATED JANUARY 19, 1994
          (To Prospectus dated June 25, 1993
          and Prospectus Supplement dated June 30, 1993)

          PENNSYLVANIA ELECTRIC COMPANY
          Secured Medium-Term Notes, Series D
          (A Series of First Mortgage Bonds)



          Trade Date:              January 18, 1994

          Principal Amount:        $40,000,000

          Original Issue Date:     January 26, 1994

          Maturity Date:           January 26, 2006

          Issue Price:             100%

          Interest Rate:           6.35%

          Additional Terms:        The Notes are redeemable, at par,  on or
                                   after January  26, 2004.   In  addition,
                                   the Notes  are redeemable at  par, under
                                   certain  limited  circumstances.    (See
                                   "Description   of   Secured  Medium-Term
                                   Notes,  Series  D   --  Redemption   and
                                   Repurchase"     in    the     Prospectus
                                   Supplement.)

          Plan of Distribution:    $32,000,000 of the  principal amount  of
                                   the Notes has been sold to Merrill Lynch
                                   &  Co.,  as  principal,  for  resale  to
                                   purchasers upon terms  described in  the
                                   Prospectus  Supplement.  (See  "Plan  of
                                   Distribution of Notes" in the Prospectus
                                   Supplement.)