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) November 29, 2006
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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
November 29,
2006, Metropolitan Edison Company (Met-Ed), Pennsylvania Electric Company
(Penelec) and FirstEnergy Solutions Corp. (FES) agreed to suspend the previously
disclosed Tolling Agreement, dated April 7, 2006 (Tolling Agreement) pending
resolution of the Pennsylvania Public Utility Commission’s (PPUC) proceedings
regarding the Met-Ed and Penelec Transition Rate Cases at which time the
parties
will re-evaluate their respective positions. The PPUC decision is expected
by
January 11, 2007. FES had previously advised Met-Ed and Penelec that it had
elected to terminate, effective midnight December 31, 2006, the Partial
Requirements Agreement under which the utilities had purchased from FES a
portion of their Provider of Last Resort (PLR) requirements, but that said
election was tolled until December 31, 2007 pursuant to the Tolling Agreement
provided that certain conditions were met between the parties. Those conditions
included a requirement that Met-Ed and Penelec procure through arrangements
other than the Partial Requirements Agreement an increasing percentage of
the
capacity and energy necessary to satisfy their PLR obligations for 2008,
2009
and 2010. The Partial Requirements Agreement, as amended November 1, 2005,
shall
remain in full force and effect during suspension of the Tolling Agreement.
This
suspension does not affect Met-Ed’s and Penelec’s obligations under power
purchase agreements entered into with unaffiliated third parties as a result
of
the competitive bid process conducted in September 2006.
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 United States
Attorney’s Office, the Nuclear Regulatory Commission and the various state
public utility commissions as disclosed in the registrants’ Securities and
Exchange Commission filings, generally, and with respect to the Davis-Besse
Nuclear Power Station outage 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.
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.
November
30,
2006
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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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