New Jersey Power & Light Company
List of Deals
- 1958 issuance and sale of $7,500,000 first mortgage bonds 4 1/8% series due 1988
- 1954 issuance and sale of $8,700,000 principal amount of first mortgage bonds, 3 1/8% series due 1984 and the redemption of $5,500,000 principal amount (all) first mortgage bonds, 4 1/4% series due 1983
Incorporated in 1915 as a public utility company, New Jersey Power & Light Company produced energy for consumption in western and northwestern New Jersey. All of the common stock of New Jersey Power & Light was owned by General Public Utilities Corporation (GPU), a public utility holding company. The company periodically issued bonds to the public to generate funds to build power plant, transmission, and distribution facilities.
The company collaborated with other interconnected public utilities that were also subsidiaries of GPU in New Jersey and Pennsylvania: Jersey Central Power & Light Company, Metropolitan Edison Company, and Pennsylvania Electric Company (Penelec). New Jersey Power & Light built two power-generating stations in Holland, New Jersey, in 1930 and 1949. The company ran fifty-one substations by 1957. Starting in 1925 a subsidiary of GPU also ran a power station in Manila, the Philippines. During the 1920s New Jersey Power & Light merged two other electric companies into it in an effort to satisfy SEC restrictions on GPU. By the 1930s GPU focused solely on Pennsylvania and New Jersey.
The company’s net income in 1949 was $1.3 million, with operating revenues of $8.1 million. In 1953 net income was $1.4 million on operating revenues of $12.4 million. This rose to $2.4 million in net income in 1957 on operating revenues of $17.1 million. These gains can in part be attributed to more efficient machinery. A 1956 Barron’s article notes that to produce a kilowatt hour of electricity in 1948, GPU subsidiaries required 1.35 pounds of coal. By 1955, 0.87 pounds of coal could produce the same kilowatt hour of energy.
Note: The deal book contains maps of the New Jersey Power & Light transmission and tie line networks, with power stations and substations marked. Also, note that GPU is now known as First Energy.