GPU announces first quarter earnings.

PARSIPPANY, N.J.--(BUSINESS WIRE)--April 18, 1995--General Public Utilities Corp. (NYSE:GPU) today reported earnings per share of $0.65 (unaudited) for the first quarter of 1995, compared to $1.07 per share (unaudited) for the first quarter of 1994. Net income for the quarter was $75.5 million, compared to $122.9 million for the same period in 1994.

The decrease in first quarter earnings was due primarily to lower interest income as compared to last year, when the electric operating subsidiaries recognized nonrecurring interest income of $45.6 million pre-tax ($0.23 per share) which resulted from refunds of previously paid federal income taxes relative to the tax retirement of Three Mile Island Unit 2 (TMI-2), and lower sales due to warmer winter weather this year as compared to last year. Also contributing to the earnings decline was higher reserve capacity expense.

These reductions were partially offset by lower operation and maintenance expense (O&M), which included savings from an 11% reduction in workforce, and increased sales from new customer growth.

James R. Leva, GPU chairman, president and chief executive officer, said, "The mild winter did not generate the level of heating-related sales we would normally expect. These results are sharply contrasted with the winter sales of the previous winter, which was unusually cold.

"Our close attention to O&M spending, which was lower than the same period last year, helped somewhat to offset the effects of the mild winter.

"We are reviewing our spending plans for the remainder of 1995 to look for opportunities to make up the lost revenue without affecting our level of customer service. While this will be a difficult challenge, I am confident that these additional measures will cause us to be even more vigilant in our cost-control efforts," Leva said.

Net income for the twelve month period ending March 31, 1995 was $116.3 million, or $1.00 per share (unaudited), compared to $339.3 million, or $3.00 per share (unaudited), for the comparable twelve month period ending in 1994.

The earnings decrease for the twelve month period was principally attributable to second quarter 1994 one-time adjustments totaling $329.5 million pre-tax, or $1.66 per share. These adjustments consisted of a write-off of $183.9 million resulting from a Pennsylvania court order disallowing the collection of revenues for certain TMI-2 retirement costs, a $127.0 million charge to earnings for costs related to the Voluntary Enhanced Retirement Programs, and an $18.6 million write-off of postretirement benefit costs not considered likely to be recovered through ratemaking. The same factors affecting the quarterly results also affected the results for the twelve month period.

GPU is a registered electric utility holding company with three public utility operating subsidiaries: Jersey Central Power & Light Co., Metropolitan Edison Co. and Pennsylvania Electric Co. GPU also owns all of the common stock of Energy Initiatives, Inc., a nonutility generation company. The GPU System's utility subsidiaries annually provide approximately 41 billion kilowatt-hours of electricity for approximately 2.0 million customers. -0-

                      GPU Financial Results

Three Months Ended March 31 (Unaudited)          1995      1994

Sales to customers (gigawatt-hours)(Note 1)    10,684     11,205
Total revenues (000)                        $ 913,972  $ 937,209
  Revenues other than those related
   to energy costs (000)                    $ 639,050  $ 670,102
  Energy cost revenues (000)                $ 274,922  $ 267,107
Net income (000) (Note 2)                   $  75,497  $ 122,902
Earnings per average share (Note 2)         $    0.65  $    1.07
Average common shares outstanding (000)       115,340    115,065

Twelve Months Ended March 31 (Unaudited)        1995        1994

Sales to customers (gigawatt-hours)(Note 1)     40,796      41,003
Total revenues (000)                        $3,626,279  $3,652,145
  Revenues other than those related
   to energy costs (000)                    $2,597,101  $2,627,900
  Energy cost revenues (000)                $1,029,178  $1,024,245
  Net income (000) (Note 3)                 $  116,283  $  339,252
Earnings per average share (Note 3)         $     1.00  $     3.00
Average common shares outstanding (000)        115,231     112,813

Note 1:  Gigawatt-hour sales exclude interchange sales.

Note 2:  First quarter 1994 earnings included interest income of
$26,889 after-tax, or $0.23 per share, related to the tax retirement
of TMI-2.

Note 3:  Twelve months March 1995 earnings were significantly reduced
by second quarter 1994 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 66 cents
per share); and the write-off of previously deferred postretirement
benefit costs ($10.6 million, or $0.09 per share).

CONTACT: John T. Fidler

201/263-6479