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GPU ADJUSTS EARNINGS FOR 1991

 GPU ADJUSTS EARNINGS FOR 1991
 PARSIPPANY, N.J., Dec. 13 /PRNewswire/ -- General Public Utilities


Corporation (NYSE: GPU) announced today that its subsidiaries adopted a change of accounting to accrue unbilled revenues from their customers, while recognizing certain costs relating to Three Mile Island Unit 2.
 The accounting change will result in a favorable adjustment to earnings of $58.3 million, nearly all of which will be offset by the company's recognition of the TMI-2 costs.
 The charges to earnings consist of $33.8 million for the estimated costs to prepare TMI-2 for long-term monitored storage, which is expected to begin in 1994, and $60 million for a portion of future TMI-2 decommissioning expense. These aggregate costs, after taxes, of $54.9 million, were recorded in the fourth quarter of 1991.
 In other words, GPU shareholders will absorb the difference between the currently estimated costs for decommissioning for TMI-2, and the lower decommissioning costs for TMI-1, as calculated by comparing the funding certification amounts for TMI-1 and TMI-2 which were filed with the U.S. Nuclear Regulatory Commission in July 1990.
 Also, Jersey Central Power and Light Company will write off amounts which it has retained on its balance sheet as a deferred cost of TMI-2 cleanup. The net effect of this charge is to reduce 1991 net income by $1.7 million.
 "We hope these actions, including adding the TMI-related charge, over time, to an existing trust account devoted to decommissioning costs will give added assurance to the public that the work needed to put TMI-2 into a fully safe long-term storage condition will be completed, and that sufficient funds will be available for decommissioning," said William G. Kuhns, GPU chairman, president and chief executive officer.
 "With future ratemaking for the remaining decommissioning costs, the public can be assured of the plant's continued safe maintenance and retirement," Kuhns said.
 UNBILLED REVENUES CHANGE IN ACCOUNTING EXPLAINED
 GPU will change its accounting policy to accrue for revenues not yet billed to customers. This change, which accrues revenues for service as rendered rather than as billed, will result in a credit to income, after tax, for 1991 for the cumulative effect of the change of $58.3 million.
 This change in accounting will bring GPU's accounting practice for revenues in line with revenue recognition used for the computation of federal income taxes.
 The 1986 Tax Reform Act requires all utilities to accrue unbilled revenues for income tax purposes even if those revenues were not accrued for financial statement purposes.
 Further, the change will make GPU's practice consistent with accounting practices used by most other electric utilities.
 The change will be effective as of Jan. 1, 1991, and therefore requires restatement of GPU's earnings for the first three quarters of this year.
 TMI-2 CHARGES EXPLAINED
 The charge for future decommissioning expense of $60 million represents the Pennsylvania operating subsidiaries' share of the difference between the currently estimated TMI-2 and TMI-1 decommissioning funding targets.
 Taking the pre-tax charge will put Metropolitan Edison Company and Pennsylvania Electric Company on a par with GPU's New Jersey subsidiary, Jersey Central Power and Light, which took similar action under a 1990 rate order.
 The $60 million will be added to an existing trust devoted to decommissioning costs. GPU will pursue the remaining cost of decommissioning TMI-2 in future rate cases. These additional funds will also be placed in trust as they are collected and be available when TMI- 2 is decommissioned, along with TMI-1, currently forecast to begin no earlier than 2014.
 The $33.8 million to prepare TMI-2 for monitored storage is expected to be spent over approximately the next two years.
 GPU is a registered electric utility holding company with three operating subsidiaries: Met-Ed, Penelec and Jersey Central.
 The GPU System provides about 40 billion kilowatthours of electricity to more than 1.9 million customers in a service territory encompassing approximately half the land area of Pennsylvania and New Jersey.
 /delval/
 -0- 12/13/91
 /CONTACT: John T. Fidler of General Public Utilities, 201-263-6479/
 (GPU) CO: General Public Utilities Corporation ST: New Jersey IN: UTI SU: ERN


MP-LJ -- PH002 -- 2248 12/13/91 08:47 EST
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Date:Dec 13, 1991
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