GPU announces second quarter financial results.

PARSIPPANY, N.J.--(BUSINESS WIRE)--July 18, 1995--General Public Utilities Corp. (NYSE:GPU) today reported earnings per share of $0.53 (unaudited) for the second quarter of 1995, compared to $1.09 loss per share (unaudited) for the second quarter of 1994. Net income for the quarter was $61.0 million, compared to a net loss of $125.3 million for the same period in 1994.

The increase in second quarter earnings was due to GPU's recognition last year of one-time charges totalling $329.5 million pre-tax, or $1.66 per share. These one-time charges consisted of a write-off of certain Three Mile Island Unit 2 retirement costs ($104.9 million after-tax) resulting from a Pennsylvania court order, costs related to the voluntary enhanced retirement programs ($76.1 million after-tax), and a write-off of postretirement benefit costs ($10.6 million after-tax).

Lower operation and maintenance expense, which included payroll and benefits savings from the retirement programs, also contributed to the earnings increase. However, these increases were more than offset by lower sales resulting from cooler spring weather this year compared to last year.

James R. Leva, GPU chairman, president and chief executive officer, said, "Our results for the quarter are showing the positive effects of GPU's corporate realignment, especially the voluntary enhanced retirement programs.

"As the pressures of a more competitive electric utility industry mount, GPU will continue to pay close attention to operation and maintenance spending, as well as our ongoing performance improvement initiatives," Leva said.

For the six months ended June 30, net income was $136.5 million, or $1.18 per share, compared to a net loss of $2.4 million, or a $0.02 loss per share, for the same period last year.

The same factors affecting the quarterly results also affected the results for the six month period. In addition, earnings for the current six month period versus last year benefitted from increased sales from new customer growth. Earnings compared to last year were negatively affected by higher reserve capacity expense and lower sales due to warmer winter weather in 1995. Earnings were also negatively affected by nonrecurring interest income in 1994 of $45.6 million pre-tax, or $0.23 per share, resulting from refunds of previously paid federal income taxes related to the tax retirement of TMI-2.

Net income for the twelve month period ended June 30 was $302.6 million, or $2.62 per share, compared to $155.3 million, or $1.39 per share, for the comparable period for 1994. The twelve month June 1995 earnings increase was due primarily to 1994 nonrecurring items and lower operation and maintenance expense in 1995, partially offset by lower 1995 weather-related sales.

GPU is a registered electric utility holding company with three utility operating subsidiaries: Jersey Central Power & Light Co., Metropolitan Edison Co. and Pennsylvania Electric Co. 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., a nonutility generation company. -0-

    The financial tables follow:

Three Months Ended June 30 (Unaudited)           1995        1994

Sales to customers (gigawatt-hours) (Note 1)     9,567       9,547

Total revenues (000)                          $ 864,648    $ 873,533

    Revenues other than those related
       to energy costs (000)                  $ 604,416    $ 632,730
    Energy cost revenues (000)                $ 260,232    $ 240,803

Net income/(loss) (000) (Note 2)              $  60,980    $(125,342)

Earnings/(Loss) per average share (Note 2)    $    .053    $   (1.09)

Average common shares outstanding (000)         115,660     115,119

Six Months Ended June 30 (Unaudited)           1995        1994

Sales to customers (gigawatt-hours)(Note 1)     20,251      20,752
Total revenues (000)                        $1,778,620  $1,810,742
  Revenues other than those related
   to energy costs (000)                    $1,243,466  $1,302,832
  Energy cost revenues (000)                $  535,154  $  507,910
Net income/(loss) (000) (Note 3)            $  136,477  $   (2,440)
Earnings/(loss) per average share (Note 3)  $    1.18   $    (0.02)
Average common shares outstanding (000)       115,502      115,092

12 Months Ended June 30 (Unaudited)              1995      1994

Sales to customers (gigawatt-hours)(Note 1)    40,816       41,302
Total revenues (000)                       $3,617,394   $3,662,442
  Revenues other than those related
   to energy costs (000)                   $2,568,787   $2,648,125
  Energy cost revenues (000)               $1,048,607   $1,014,317
Net income (000)                           $  302,605   $  155,340
Earnings per average share                 $     2.62   $     1.39
Average common shares outstanding (000)       115,367      113,867

Note 1:  Gigawatt-hour sales exclude interchange sales.

Note 2:  Second quarter 1994 earnings include after-tax adjustments totaling
$191.6 million, 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).

Note 3:  Six months June 1994 earnings include interest income of
$26.9 million after-tax, or $0.23 per share, related to the tax
retirement of TMI-2.

CONTACT: General Public Utilities Corp., Parsippany

John P. Fidler, 201/263-6479

or 201/328-8494 (Home)