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): July 11, 1994
PENNSYLVANIA ELECTRIC COMPANY
(Exact name of registrant as specified in charter)
Pennsylvania 1-3522 25-0718085
(State or other (Commission (IRS employer
jurisdiction of file number) identification no.)
incorporation)
1001 Broad Street, Johnstown, Pennsylvania 15907
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (814) 533-8111
ITEM 5. OTHER EVENTS.
As has been previously reported, in March 1993, the
Pennsylvania Public Utility Commission ("PaPUC") amended a
January 1993 rate order and allowed Metropolitan Edison Company
("Met-Ed"), an electric operating affiliate of Pennsylvania
Electric Company ("Penelec"), to collect revenues it had
requested for certain decommissioning costs associated with Three
Mile Island Unit No. 2 ("TMI - 2"). In May 1993, the
Pennsylvania Office of Consumer Advocate filed a petition for
review with the Pennsylvania Commonwealth Court seeking to set
aside the portion of the PaPUC's amended rate order which allowed
Met-Ed to recover TMI-2 decommissioning costs.
On July 11, 1994, the Commonwealth Court reversed the
PaPUC's amended rate order. Met-Ed intends to seek a review of
the Commonwealth Court decision by the Pennsylvania Supreme
Court.
As a result of the Commonwealth Court decision, Met-Ed
and Penelec intend to write off, in the second quarter of 1994,
their allocable share (based on their 50% and 25% respective TMI-
2 ownership interests) of estimated TMI-2 decommissioning costs.
At December 31, 1993, such amount totalled approximately $171
million (before taxes), based on the funding target established
by the Nuclear Regulatory Commission which target is subject to
future adjustment. Management is continuing to review these
amounts, but presently expects that the write off will be
approximately $171 million. Penelec's other electric operating
1
affiliate, Jersey Central Power & Light Company, which owns the
remaining 25% interest in TMI-2, has been permitted by the New
Jersey Board of Public Utilities to recover its share of the
estimated TMI-2 decommissioning costs from its customers and is
not affected by the Commonwealth Court decision.
General Public Utilities Corporation ("GPU"), Penelec's
parent, has previously announced that it will incur a substantial
charge to income in 1994 of between $110 and $120 million due to
its Voluntary Enhanced Retirement Program and that, as a result
of another Commonwealth Court decision involving a nonaffiliated
utility, Penelec may be required to write off an estimated $14
million of post-retirement benefit costs.
Unless the Commonwealth Court decisions are overturned,
the effect of these developments, particularly upon Met-Ed, will
severely restrict the ability of Met-Ed and Penelec to issue
senior securities, and GPU is therefore reviewing their 1994-95
operation and construction plans.
There can be no assurance as to the outcome of these
matters.
A copy of GPU's related news release is annexed as an
exhibit.
ITEM 7. FINANCIAL STATEMENTS, PRO FORMA FINANCIAL INFORMATION
AND EXHIBITS.
(b) Exhibits:
1. GPU News Release, dated July 11, 1994.
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SIGNATURE
PURSUANT TO THE REQUIREMENTS OF THE SECURITIES EXCHANGE
ACT OF 1934, THE REGISTRANT HAS DULY CAUSED THIS REPORT TO BE
SIGNED ON ITS BEHALF OF THE UNDERSIGNED THEREUNTO DULY
AUTHORIZED.
PENNSYLVANIA ELECTRIC COMPANY
By:
Don W. Myers, Vice President
and Treasurer
Date: July 12, 1994