JCP&L files request for rate changes.

MORRISTOWN, N.J.--(BUSINESS WIRE)--Dec. 8, 1995-- Jersey Central Power & Light Company (JCP&L) today made requests for changes in two separate rate categories in a filing with the New Jersey Board of Public Utilities (BPU).

In its filing, JCP&L asked for an increase in annual overall revenues of $37.7 million in the levelized energy adjustment clause (LEAC) component of rates, which includes the demand side factor (DSF). The company also asked for a decrease in base rates of $3.2 million. The changes account for an increase in annual overall revenues of $34.5 million.

If approved as requested, the rate application represents a 1.9% increase in customer costs and would become effective March 1, 1996. The company's LEAC is adjusted annually to provide for changes in the cost of fuel and energy purchases and demand side management programs. The LEAC is a pass-along charge on which the company does not earn any profit.

"The small increase we have requested is largely the result of several issues, which not only have kept this increase to a minimum, but in fact will save our customers millions of dollars in future energy adjustment costs," said Michael Morrell, JCP&L vice president - regulatory and public affairs. The issues involved were the buy out of the Crown and Vista Energy projects, the outstanding performance of JCP&L owned nuclear generating stations, the natural gas pooling plan for JCP&L and non utility generation (NUG) fuel purchases and demand side management programs, Morrell explained.

"Our business decisions during the last year have paved the way for us to save our customers hundreds of millions of dollars in energy adjustment costs over the next 20 years. Because of our actions, we were able to decrease the potential amount of our LEAC," Morrell said.

The LEAC includes $19 million for recovery of costs associated with JCP&L's demand side management plan. Since 1992, JCP&L has been able to recover these costs through the DSF component of the LEAC for programs intended to help customers reduce their energy costs. In turn, these efficiency measures should benefit all customers on a long term basis.

"The outstanding performance of the Oyster Creek and Three Mile Island nuclear generating stations will earn JCP&L a performance award of approximately $6 million. Their reliability played a role in minimizing the LEAC by accounting for savings of $19 million in replacement fuel costs," Morrell noted.

Earlier this year, JCP&L announced the formation of a pooling plan for managing the natural gas supply for its generation facilities and contracted NUGs. This LEAC filing reflects savings expected from the operation of the pool.

JCP&L's LEAC request also includes $6 million a year, for the next three years, for recovery of costs to terminate and buy out non-utility generation contracts with Crown Energy Ltd. and Vista Energy Ltd. "The excess future energy costs to JCP&L customers for Crown/Vista alone would have exceeded $700 million," Morrell said.

If the changes are approved as filed, a residential customer using an average of 500 kilowatt-hours monthly and paying $60.34 would experience an increase of $0.75 a month or 1.2%.

CONTACT: JCP&L

Ron Morano, 201/644-4297

Donna Rovins, 201/455-8408