Form 8-K PRA dated Jan. 17, 2007
UNITED
STATES
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) January 17, 2007
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Commission
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Registrant;
State of Incorporation;
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I.R.S.
Employer
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File
Number
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Address;
and Telephone Number
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Identification
No.
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1-446
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METROPOLITAN
EDISON COMPANY
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23-0870160
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(A
Pennsylvania Corporation)
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c/o
FirstEnergy Corp.
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76
South Main Street
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Akron,
OH 44308
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Telephone
(800)736-3402
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1-3522
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PENNSYLVANIA
ELECTRIC COMPANY
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25-0718085
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(A
Pennsylvania Corporation)
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c/o
FirstEnergy Corp.
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76
South Main Street
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Akron,
OH 44308
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Telephone
(800)736-3402
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Check
the
appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions (see General Instruction A.2. below):
[
]
Written communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
[
]
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
[
]
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange
Act
(17 CFR 240.14d-2(b))
[
]
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange
Act
(17 CFR 240.13e-4(c))
Item
1.01
Entry
into a Material Definitive Agreement.
On
January 17, 2006,
Metropolitan Edison Company (Met-Ed), Pennsylvania Electric Company (Penelec)
and FirstEnergy Solutions Corp. (FES) agreed to restate, effective January
1,
2007, their partial requirements wholesale power sales agreement. The restated
agreement incorporates the same fixed price for residual capacity and energy
supplied by FES as in the Partial Requirements Agreement dated January 1, 2003
between the parties, and automatically extends for successive one year terms
unless any party gives 60 days’ notice prior to the end of the year. The
restated agreement also allows Met-Ed and Penelec to sell the output of
non-utility generation (NUG) to the market and would require FES to provide
energy at the fixed prices to
replace any NUG
energy thus sold to the extent needed for Met-Ed and Penelec to satisfy their
provider of last resort (PLR) obligations. The restated agreement supersedes
the
previous Partial Requirements Agreement and amendments thereto. The parties
have
also separately terminated various related agreements, including a master
supplier agreement under which FES had agreed to supply a certain portion of
Met-Ed’s and Penelec’s PLR requirements at market prices as a result of FES
having been a successful bidder in the September 26, 2006 competitive request
for proposal conducted by Met-Ed and Penelec for a portion of their PLR
obligations for the period December 1, 2006 through December 31, 2008.
Accordingly, the energy that would have been supplied under that master supplier
agreement will now be provided under the restated partial requirements
agreement.
Forward-Looking
Statements:
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 and commodity market prices, replacement power
costs being higher than anticipated or inadequately hedged, the continued
ability of FirstEnergy’s regulated utilities to collect transition and other
charges or to recover increased transmission costs, maintenance costs being
higher than anticipated, legislative and regulatory changes (including revised
environmental requirements), and the legal and regulatory changes resulting
from
the implementation of the Energy Policy Act of 2005 (including, but not limited
to, the repeal of the Public Utility Holding Company Act of 1935), the
uncertainty of the timing and amounts of the capital expenditures needed to,
among other things, implement the Air Quality Compliance Plan (including that
such amounts could be higher than anticipated) or levels of emission reductions
related to the Consent Decree resolving the New Source Review litigation,
adverse regulatory or legal decisions and outcomes (including, but not limited
to, the revocation of necessary licenses or operating permits, fines or other
enforcement actions and remedies) of governmental investigations and oversight,
including by the Securities and Exchange Commission, the Nuclear Regulatory
Commission and the various state public utility commissions as disclosed in
the
registrants’ Securities and Exchange Commission filings, generally, and
heightened scrutiny at the Perry Nuclear Power Plant in particular, the timing
and outcome of various proceedings before the Public Utilities Commission of
Ohio (including, but not limited to, the successful resolution of the issues
remanded to the Public Utilities Commission of Ohio by the Ohio Supreme Court
regarding the Rate Stabilization Plan) and the Pennsylvania Public Utility
Commission, including the transition rate plan filings for Met-Ed and Penelec,
the continuing availability and operation of generating units, the ability
of
generating units to continue to operate at, or near full capacity, the inability
to accomplish or realize anticipated benefits from strategic goals (including
employee workforce initiatives), the anticipated benefits from voluntary pension
plan contributions, the ability to improve electric commodity margins and to
experience growth in the distribution business, the ability to access the public
securities and other capital markets and the cost of such capital, the outcome,
cost and other effects of present and potential legal and administrative
proceedings and claims related to the August 14, 2003 regional power
outage, the successful completion of the share repurchase program announced
August 10, 2006, the risks and other factors discussed from time to time in
the registrants’ Securities and Exchange Commission filings, including their
annual report on Form 10-K for the year ended December 31, 2005, and other
similar factors. The registrants expressly disclaim any current intention to
update any forward-looking statements contained herein as a result of new
information, future events, or otherwise.
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SIGNATURE
Pursuant
to the
requirements of the Securities Exchange Act of 1934, each Registrant has duly
caused this report to be signed on its behalf by the undersigned thereunto
duly
authorized.
January
19,
2007
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METROPOLITAN
EDISON COMPANY
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Registrant
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PENNSYLVANIA
ELECTRIC COMPANY
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Registrant
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/s/
Harvey L.
Wagner
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Harvey
L.
Wagner
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Vice
President
and Controller
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