GPU SIGNS DOE CLIMATE CHALLENGE ACCORD IN WASHINGTON.

WASHINGTON--(BUSINESS WIRE)--Feb. 3, 1994--General Public Utilities Corporation joined more than 30 other electric utility companies today by signing a company accord that is part of the Department of Energy Climate Challenge Program, a nationwide, voluntary program designed to reduce greenhouse gases to 1990 levels by the year 2000.

GPU's programs alone are expected to avoid or reduce the equivalent of 8 million tons of carbon dioxide emissions between 1995 and 2000. With a reduction or avoidance of the equivalent of 6 million tons of CO2 between 1991 and 1994, GPU's average annual total will be 1.4 million tons between 1991 and 2000.

"GPU strongly supports a greenhouse gas program which will, in a cost-effective manner, lead to the voluntary reduction of pollutants in the atmosphere which may be contributing to global warming," said James R. Leva, chairman, president and chief executive officer of GPU.

"We believe our program, the GPU Climate Challenge Accord, is comprehensive, and emphasizes investments in alternative technologies, reducing, avoiding or sequestering emissions where practical, and long-term plans and strategies to reduce atmospheric concentrations of greehouse gases," Leva said.

"We believe additional emphasis must be placed on the reduction of greenhouse gas levels in the atmosphere from U.S. and international efforts over the long term, rather than reductions in a specific year or by a specific date," Leva added.

Representing GPU at the climate challenge signing ceremony was Ira H. Jolles, GPU senior vice president and general counsel.

Jolles spoke about the International Utility Efficiency Partnership, one of five Climate Challenge industry initiatives. The partnership, which currently consists of GPU and six other electric utilities that are members of the Edison Electric Institute, will promote energy efficiency in international utility modernization efforts and reduce greenhouse gases of the host utilities.

Jolles said that the IUEP will act as a clearinghouse to identify international energy projects and as a vehicle through which the developers of these projects can readily access the expertise and financial support of the seven IUEP member utilities.

To accomplish reductions in greehouse gases, the GPU operating companies -- Jersey Central Power and Light in New Jersey, and Metropolitan Edison and Pennsylvania Electric in Pennsylvania -- have committed to a variety of programs, including the five Industry Initiatives that are the heart of the joint industry/DOE program.

A key component of the GPU program is a $20.7 million investment (for 1995) in 28 research and development projects designed to avoid, reduce or sequester greenhouse gases.

Three of GPU's programs are expected to avoid emissions of 12 million tons of CO2 through 2000.

The first program will improve the capacity and availability at GPU's two nuclear power plants for a projected avoidance of 6 million tons of CO2.

The second involves purchases of electricity from energy plants fueled by methane gas at landfills, for an avoidance of 4 million tons of CO2.

The third emphasizes conservation and demand management activities and has a target avoidance of 2 million tons of CO2.

For all three programs, the millions of tons of CO2 avoided refers to the equivalent amount of CO2 that would have been emitted had that electricity come from a fossil-fueled plant.

A detailed list of GPU's programs and projects is attached.

General Public Utilities Corp.

Voluntary Greenhouse Gas Reduction Plan/Climate Challenge Accord

General Public Utilities Corp.'s greenhouse gas program consists of commitments to numerous projects and actions and five industry initiatives. The GPU Climate Challenge Accord includes activities by the GPU subsidiaries Jersey Central Power & Light, Metropolitan Edison, Pennsylvania Electric, GPU Service Corp. and GPU Nuclear Corp. GPU is a registered holding company serving close to two million customers in New Jersey and Pennsylvania.

GPU's estimate of greenhouse gas reduction, avoidance and sequestration from its program annually averages 1,400,000 tons CO2 equivalent for the period 1991 through 2000.

GPU is a participant in five Industry Initiatives: Utility Forest Carbon Management Program; Geothermal Heat Pump Consortium Inc., Envior Tech Investment Fund; International Utility Efficiency Partnership; and EV America. Overall expenditures toward the Industry Initiatives are expected to exceed $5.0 million.

GPU Projects and Programs:

o System R&D-GPU is a sponsor or participant in 28 research and development programs which may result in projects or actions which reduce, avoid or sequester greenhouse gases. Includes 4 programs to which U.S. DOE is contributing funds. GPU's expected 1995 expenditure is $20.7 million.

o Nuclear Capacity/Availability Improvement-GPUNC, Oyster Creek and Three Mile Island improvements. Increased nuclear production estimated to reduce emissions by over 6 million tons CO2 equivalent through 2000.

o Methane Offsets-Purchases from landfill gas/agricultural waste to energy facilities using methane gas are expected to avoid over 4.0 million tons CO2 equivalent through 2000.

o Demand Side Management, Efficiency and Electrotechnology - JCP&L, MetEd and Penelec offer "value added" efficiency programs. Projected to avoid over 2.0 million tons CO2 equivalent emissions through 1999. Other projects and programs in this area include: Homer City Greenhouse Waste Heat Recovery; U.S. EPA Green Lights Program participant; Electric Vehicle use and project participant; "Green" Computer use and purchasing; Facility Energy Consumption Reduction through facility operational improvements. These related programs and activities are expected to reduce or avoid 40,000 tons CO2 equivalent emissions through 2000.

o T & D Loss Reduction-Improvements expected to reduce emissions approximately 350,000 tons CO2 equivalent through 2000.

o Recycling-Extensive recycling programs throughout the system are expected to avoid or reduce emissions of at least 100,000 tons CO2 equivalent through 2000. A related program is Ash Utilization, use of coal combustion by-products as cement substitute.

o USAPV Photovoltaic Research-GPU working with DOE and Atlantic Electric has arranged for $2 million in projects to be carried out through USAPV.

o Generation Projects: One power plant will be repowered with DOE funding assistance under the Clean Coal V program, improving heat rate and reducing CO2 emissions by approximately 30%. Numerous other plant improvement projects will also be implemented.

CONTACT: General Public Utilities Corp., Parsippany, N.J.

John T. Fidler, 201/263-6479