SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) March 12, 2003
Commission Registrant; State of Incorporation; I.R.S. Employer
File Number Address; and Telephone Number Identification No.
----------- ----------------------------------- ------------------
1-446 Metropolitan Edison Company 23-0870160
(A Pennsylvania Corporation)
c/o FirstEnergy Corp.
76 South Main Street
Akron, OH 44308
Telephone (800) 736-3402
Item 5. Other Events
Metropolitan Edison Company (Met-Ed) reports unaudited financial
information for the year ended December 31, 2002. Met-Ed is also providing
specific disclosure with respect to the Pennsylvania Supreme Court action that
was previously reported in Met-Ed's Form 8-K filed on January 21, 2003.
METROPOLITAN EDISON COMPANY
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
For the year ended Nov 7 - Jan. 1 -
December 31, 2002 Dec. 31, 2001 Nov. 6, 2001
----------------------------------------------------------------------------------------------------------------
(Dollars in thousands)
OPERATING REVENUES............................................ $986,608 $143,760 | $824,556
-------- -------- | --------
|
OPERATING EXPENSES AND TAXES: |
Fuel and purchased power (A)............................... 604,305 83,275 | 478,954
Other operating costs...................................... 115,371 16,122 | 123,094
-------- -------- | --------
Total operation and maintenance expenses................. 719,676 99,397 | 602,048
Provision for depreciation and amortization................ 81,419 8,903 | 51,867
General taxes.............................................. 66,795 6,509 | 39,845
Income taxes............................................... 27,447 11,584 | 28,549
-------- -------- | --------
Total operating expenses and taxes....................... 895,337 126,393 | 722,309
-------- -------- | --------
|
OPERATING INCOME.............................................. 91,271 17,367 | 102,247
|
OTHER INCOME.................................................. 21,742 5,465 | 7,807
-------- -------- | --------
|
INCOME BEFORE NET INTEREST CHARGES............................ 113,013 22,832 | 110,054
-------- -------- | --------
|
NET INTEREST CHARGES: |
Subsidiaries' preferred stock dividend requirements........ 7,559 1,102 | 6,248
Interest on long-term debt................................. 40,774 5,615 | 33,101
Allowance for borrowed funds used during |
construction............................................. (470) 30 | (574)
Deferred interest.......................................... (710) (276) | (321)
Other interest expense .................................... 2,636 1,744 | 9,219
-------- -------- | --------
Net interest charges..................................... 49,789 8,215 | 47,673
-------- -------- | --------
|
NET INCOME.................................................... $ 63,224 $ 14,617 | $ 62,381
======== ======== | ========
CONSOLIDATED RATIO OF EARNINGS TO FIXED CHARGES............... 3.09 4.29 | 3.08
==== ==== | ====
Transmission and Distribution
Kilowatt-Hour Deliveries (Millions):
Residential................................................ 4,738 793 | 3,712
Commercial................................................. 3,991 652 | 3,203
Industrial................................................. 3,972 662 | 3,506
Other...................................................... 35 6 | 27
-------- -------- | --------
Total Retail............................................... 12,736 2,113 | 10,448
Total Wholesale............................................ 840 195 | 1,067
-------- -------- | --------
Total...................................................... 13,576 2,308 | 11,515
====== ======= | =======
Met-Ed was formerly a wholly owned subsidiary of GPU, Inc., which merged with
FirstEnergy Corp. (FirstEnergy) on November 7, 2001. Pre-merger period and
post-merger period financial results are separated by a heavy black line.
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METROPOLITAN EDISON COMPANY
SELECTED FINANCIAL DATA
(Unaudited)
December 31, 2002 December 31, 2001
-------------------------------------------------------------------------------------------------
(Dollars in thousands)
Total Assets....................................... $3,564,805 $3,607,187
========== ==========
Total Liabilities.................................. $1,618,020 $1,642,957
========== ==========
Capitalization:
Common Stockholder's Equity..................... $1,315,586 $1,288,953
Company-Obligated Trust Preferred Securities 92,409 92,200
Long-Term Debt.................................. 538,790 583,077
---------- ----------
Total Capitalization.......................... $1,946,785 $1,964,230
========== ==========
Capitalization Ratios:
Common Stockholder's Equity..................... 67.6% 65.6%
Company-Obligated Trust Preferred Securities ... 4.7 4.7
Long-Term Debt.................................. 27.7 29.7
----- -----
Total Capitalization.......................... 100.0% 100.0%
===== =====
(A): On January 17, 2003, the Pennsylvania Supreme Court denied further appeals
of the February 21, 2002 Pennsylvania Commonwealth Court decision related to
FirstEnergy's merger with GPU, Inc. The Commonwealth Court had overturned the
Pennsylvania Public Utility Commission's order allowing Met-Ed to use deferred
cost accounting treatment for Provider of Last Resort costs in excess of
Met-Ed's fixed generation tariff. In 2002, Met-Ed incurred a $40.2 million loss
($23.5 million net of tax) related to the energy costs (included in the fuel and
purchased power costs on the Consolidated Statements of Income) that otherwise
would have been deferred absent the Commonwealth Court decision through August
31, 2002. Met-Ed entered into a wholesale power sale agreement with its
unregulated supply affiliate FirstEnergy Solutions Corp. (FES), effective
September 1, 2002. Under the terms of the wholesale agreement, FES assumes the
supply obligation and the energy supply profit and loss risk for the portion of
power supply requirements not self-supplied by Met-Ed under its nonutility
generation and other existing power contracts with nonaffiliated third party
suppliers.
This Form 8-K includes forward-looking statements based on information
currently available to management. Such statements are subject to certain risks
and uncertainties. These statements typically contain, but are not limited to,
the terms "anticipate," "potential," "expect," "believe," "estimate" and similar
words. Actual results may differ materially due to the speed and nature of
increased competition and deregulation in the electric utility industry,
economic or weather conditions affecting future sales and margins, changes in
markets for energy services, changing energy market prices, legislative and
regulatory changes or approvals (including revised environmental requirements),
availability and cost of capital, inability to accomplish or realize anticipated
benefits of strategic goals and other similar factors.
Item 7. Exhibits
Exhibit No. Description
----------- -----------
12 Consolidated Ratio of Earnings to Fixed Charges
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
March 12, 2003
METROPOLITAN EDISON COMPANY
---------------------------
Registrant
/s/ Harvey L. Wagner
-----------------------------------------
Harvey L. Wagner
Vice President and Controller
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