GPU Responds to PA Administrative Law Judge's Recommendations In Merger and Provider of Last Resort Proceedings.

Business Editors

MORRISTOWN, N.J.--(BUSINESS WIRE)--April 26, 2001

GPU, Inc. (NYSE:GPU) said it was encouraged by the recommended decision from a Pennsylvania Public Utility Commission (PUC) administrative law judge in the combined proceeding considering both GPU's proposed merger with FirstEnergy Corp. of Akron, OH, and requested relief for the excess costs of GPU Energy's provider of last resort (PLR) responsibility in Pennsylvania.

"We are pleased that the judge has recommended that the merger be approved," said Fred D. Hafer, chairman, president and chief executive officer of GPU. "We also view as positive that the judge recognizes the importance of GPU Energy's PLR situation and has responded to it." Pursuant to applicable law, the judge recommended rate increases totaling $316.7 million for GPU Energy in the PLR proceeding. The increase will offset the companies' estimated losses resulting from its PLR obligation due to the increased costs of procuring power on behalf of GPU Energy's Pennsylvania customers.

Hafer said GPU might have further comments after it completes its review of the lengthy recommended decision.

Parties in the proceedings will have an opportunity to comment on the recommended decision. The judge's recommended decision, together with the parties' comments, will go to the PUC commissioners for their consideration. The commissioners are scheduled to make the final decision in the proceedings at a public meeting on May 24.

GPU, Inc., headquartered in Morristown, NJ, is a registered public utility holding company providing utility and utility-related services to customers throughout the world. GPU serves 4.6 million customers directly through its electric companies -- GPU Energy in the US, GPU Power UK in England, and Emdersa in Argentina. It serves an additional 1.4 million customers indirectly through GPU GasNet, its gas transmission subsidiary in Australia. The company's independent power project business units own interests in and operate eight projects in five countries. GPU's 2000 revenues were $5.2 billion and its total assets were more than $19.3 billion. GPU's other subsidiaries include MYR Group Inc., GPU Advanced Resources, Inc., GPU Nuclear, Inc., GPU Service, Inc. GPU Telcom Services, Inc. and GPU Diversified Holdings LLC.