GPU announces 1995 earnings increase.

PARSIPPANY, N.J.--(BUSINESS WIRE)--Jan. 17, 1996--General Public Utilities Corp. (NYSE:GPU) today reported 1995 net income of $440.1 million (unaudited), or $3.79 per share, compared to 1994 net income of $163.7 million, or $1.42 per share.

This increase was primarily due to the net effect of several 1994 and 1995 nonrecurring items.

Excluding these nonrecurring items, net income for 1995 would have been $343.6 million, or $2.95 per share, compared to 1994 net income of $328.4 million, or $2.85 per share. Contributing to this increase were higher new customer sales and lower payroll and benefits expense resulting from the early retirement programs in 1994, which helped offset the effects of inflation on operation and maintenance expense. These earnings increases were partially offset by higher depreciation and financing expenses.

The 1995 nonrecurring items consisted of a reversal of $104.9 million (after-tax), or 91 cents per share, of certain future Three Mile Island Unit 2 (TMI-2) retirement costs written off by Metropolitan Edison Co. (Met-Ed) and Pennsylvania Electric Co. (Penelec) in 1994. The reversal of the TMI-2 write-off resulted from a 1995 Pennsylvania Supreme Court decision that overturned a 1994 Pennsylvania Commonwealth Court order, and restored a 1993 Pennsylvania Public Utility Commission order allowing Met-Ed to recover certain TMI-2 retirement costs from customers. Partially offsetting this increase was a charge to income of $8.4 million (after-tax), or 7 cents per share, of TMI-2 monitored storage costs which Met-Ed and Penelec believe will not be recoverable through ratemaking.

The 1994 nonrecurring items included the above mentioned TMI-2 write-off of $104.9 million (after-tax), or 91 cents per share. Also in 1994, there was a charge to income of $76.1 million (after-tax), or 66 cents per share, for early retirement program costs; a write-off of $10.6 million (after-tax), or 9 cents per share, for postretirement benefit costs; and net interest income of $26.9 million (after-tax), or 23 cents per share, resulting from refunds of previously paid federal income taxes related to the tax retirement of TMI-2.

"GPU has much to be proud of as we look back at 1995," said James R. Leva, GPU chairman, president and chief executive officer.

"While we continued to gear up for a more competitive electric utility environment, we were able to provide our shareholders with increased earnings and dividends in 1995.

"The year also saw the favorable resolution of customer funding for certain Three Mile Island Unit 2 retirement costs in Pennsylvania.

"As we continue to achieve ways to become more competitive in 1996, I am pleased to report that our underlying earnings foundation remains solid," Leva said.

Net income for the fourth quarter of 1995 was $69.4 million (unaudited), or 59 cents per share, compared to net income of $54.8 million, or 47 cents per share, for the same period in 1994. The fourth quarter earnings increase was due largely to colder December weather this year compared to last year.

GPU is a registered electric utility holding company with three utility operating subsidiaries: Jersey Central Power & Light Co., Met-Ed and Penelec. The GPU System's utility subsidiaries annually provide approximately 41 billion kilowatt-hours of electricity for approximately 2.0 million customers. GPU also owns all of the common stock of Energy Initiatives Inc., EI Power Inc. and EI Energy Inc. which are engaged in the development, ownership and operation of generation, transmission and distribution facilities in the United States and foreign countries. -0-

                   General Public Utilities Corp.
                       Financial Highlights

Twelve Months Ended Dec. 31                        1995        1994
                                             (Unaudited)

Sales to customers (gigawatt-hours)(Note 1)      41,471      41,317
Total revenues (000)                         $3,804,656  $3,649,516
  Revenues other than those related
  to energy costs (000)                      $2,641,687  $2,628,153
  Energy cost revenues (000)                 $1,162,969  $1,021,363
Net income (000) (Note 2)(Note3)             $  440,135  $  163,688
Earnings per average share (Note 2)(Note 3)  $     3.79  $     1.42
Average common shares outstanding (000)         116,214     115,160

Three Months Ended Dec. 31 (Unaudited)             1995        1994

Sales to customers (gigawatt-hours)(Note 1)      10,049       9,666
Total revenues (000)                         $  930,954  $  844,102
  Revenues other than those related
   to energy costs (000)                     $  642,471  $  608,025
  Energy cost revenues (000)                 $  288,483  $  236,077
Net income (000)                             $   69,380  $   54,829
Earnings per average share                   $     0.59  $     0.47
Average common shares outstanding (000)         117,318     115,268

Note 1:  Gigawatt-hour sales exclude interchange sales.
Note 2:  Net income for 1995 includes a credit to income of $104.9
         million, or 91 cents per share, from the reversal of
         future TMI-2 retirement costs previously written off.
         Partially offsetting this increase was a write-off of $8.4
         million, or 7 cents per share, for TMI-2 monitored
         storage costs.
Note 3:  Net income for 1994 includes net charges of
         $164.7 million, or $1.43 per share, consisting of a
         write-off of future TMI-2 retirement costs ($104.9 million,
         or 91 cents per share); the costs of the early
         retirement programs ($76.1 million, or 66 cents
         per share); the write-off of postretirement benefit costs
         ($10.6 million, or 9 cents per share); and net interest
         income related to the tax retirement of TMI-2 ($26.9
         million, or 23 cents per share).

CONTACT: General Public Utilities Corp., Parsippany

John T. Fidler, 201/263-6479