GPU announces 1994 earnings.

PARSIPPANY, N.J.--(BUSINESS WIRE)--Jan. 17, 1995--General Public Utilities Corp. (NYSE:GPU) reported earnings per share of $1.42 (unaudited) for 1994, compared to $2.65 per share for 1993.

Net income for 1994 was $163.7 million (unaudited), compared to $295.7 million for the same period in 1993.

The 1994 earnings decrease was principally attributable to a second quarter write-off of $183.9 million pre-tax ($0.91 per share) resulting from a Pennsylvania court decision disallowing the collection of revenues for certain Three Mile Island Unit 2 (TMI-2) retirement costs, a $127.0 million pre-tax ($0.66 per share) charge to earnings for costs related to the Voluntary Enhanced Retirement Programs, and an $18.6 million pre-tax ($0.09 per share) write-off of postretirement benefit costs not considered likely to be recovered through ratemaking.

These losses were partially offset by first quarter interest income of $45.6 million pre-tax ($0.23 per share) resulting from refunds of previously paid federal income taxes related to the tax retirement of TMI-2. Net income for 1994 would have been $328.4 million, or $2.85 per share, if not for these nonrecurring events.

Earnings were positively affected by an increase in sales resulting primarily affected by an increase in sales resulting primarily from growth in the number of customers and an increase in revenues attributable to a February 1993 retail base rate increase at Jersey Central Power & Light Company (JCP&L). Unseasonable weather conditions in 1994 and 1993 favorably affected earnings for both years.

"I'm pleased to report that we are keeping our commitments to making drastic changes," said James R. Leva, GPU chairman, president and chief executive officer.

"In 1994, we reduced our capital spending from originally budgeted levels, and reduced spending targets again for 1995. On the personnel front, we reduced our workforce by 11 percent with a voluntary early retirement program that will allow us to save some $75 million a year.

"In achieving these results, our underlying earnings foundation remains solid.

"While we have accomplished much, we still have much to do to make GPU a truly competitive company. I am confident that we can make additional strides in 1995 that will benefit both our near-term performance and our long-term results," Leva said.

Net income for the fourth quarter 1994 was $54.8 million (unaudited), or $0.47 per share (unaudited), compared with net income of $31.3 million or $0.27 per share for the same period in 1993.

The fourth quarter earnings increase was largely due to lower expenses as compared to last year, when the electric operating subsidiaries wrote-off $24.7 million pre-tax ($0.14 per share) of costs related to the cancellation of proposed power supply and transmission facilities agreements with Duquesne Light Co. Decreased operation and maintenance expense, which included savings resulting from the Voluntary Enhanced Retirement Programs, also contributed to the earnings increase. These increases were partially offset by lower weather-related sales as a result of milder weather as compared to the year ago period.

GPU is a registered electric utility holding company with three public utility operating subsidiaries: JCP&L, Metropolitan Edison Co. and Pennsylvania Electric Co. The GPU System annually provides approximately 41 billion kilowatt-hours of electricity for approximately 1.9 million customers. -0-

                      GPU Financial Results

Twelve Months Ended Dec. 31                      1994      1993
                                              (Unaudited)

Sales to customers (gigawatt-hours)(Note 1)    41,317     40,337
Total revenues (000)                       $3,649,516 $3,596,090
  Revenues other than those related
   to energy costs (000)                   $2,628,153 $2,573,835
  Energy cost revenues (000)               $1,021,363 $1,022,255
Net income (000)(Note 2)                   $  163,688 $  295,673
Earnings per average share (Note 2)        $     1.42 $     2.65
Average common shares outstanding (000)       115,160    111,779

Three Months Ended Dec. 31                      1994      1993
                                              (Unaudited)

Sales to customers (gigawatt-hours)(Note 1)     9,666      9,810
Total revenues (000)                       $  844,102 $  861,540
  Revenues other than those related
   to energy costs (000)                   $  608,025 $  621,109
  Energy cost revenues (000)               $  236,077 $  240,431
Net income (000)                           $   54,829 $   31,294
Earnings per average share                 $      .47 $      .27
Average common shares outstanding (000)       115,268    114,362

Note 1: Gigawatt-hour sales exclude interchange sales.

Note 2: 1994 earnings were significantly reduced by second quarter adjustments totaling $191,583 after tax, or $1.66 per share, consisting of charges for certain TMI-2 retirement costs ($104.9 million), or $0.91 per share); the costs of the Voluntary Enhanced Retirement Programs ($76.1 million, or $0.66 per share); and the write-off of previously deferred postretirement benefit costs ($10.6 million, or $0.09 per share). These charges were somewhat offset by first quarter 1994 interest income of $26,889 after tax, or $0.23 per share, related to the tax retirement of TMI-2.

CONTACT: John T. Fidler

201/263-6479