FORM U-3A-2
File No. 1-7924
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC
Statement by Holding Company Claiming Exemption Under Rule U-3A-2 from
the Provisions of the Public Utility Holding Company Act of 1935
To be Filed Annually Prior to March 1
VALLEY RESOURCES, INC.
(Name of Company)
hereby files with the Securities Exchange Commission, pursuant to Rule
2, its statement claiming exemption as a holding company from the provisions
of the Public Utility Holding Company Act of 1935, claim for the following
information:
Item 1: Valley Resources, Inc., RI; Cumberland, Rhode Island, Holding Company.
Subsidiaries:
Valley Gas Company, RI; Cumberland, Rhode Island; gas distribu-
tion within Rhode Island.
Valley Appliance and Merchandising Company, RI; Cumberland,
Rhode Island; selling and leasing of merchandise.
Rhode Island Development and Exploration Company, RI; Cumber-
land, Rhode Island; an inactive company.
Valley Propane, Inc., RI; Cumberland, Rhode Island; selling of
propane gas.
Morris Merchants, Inc., MA; Canton, Massachusetts; a manufac-
turers' representative of gas-fired equipment, plumbing and
heating supplies.
Bristol and Warren Gas Company, RI; Bristol, Rhode Island; gas
distribution within Rhode Island.
The New England Gas Company, RI; Bristol, Rhode Island; an inactive
company.
Alternate Energy Corporation, RI; Cumberland, Rhode Island; sells,
installs and designs natural gas conversion systems and facilities.
<PAGE>
Form U-3A-2
File No. 1-7924
Page 2
Item 2: Valley Resources, Inc. (Holding Company)
Valley Gas Company, 1595 Mendon Road, Cumberland, Rhode Island; owns
gas manufacturing plant and gas distribution facilities all of which
are located in Rhode Island.
Bristol and Warren Gas Company, 100 Broad Common Road, Bristol, Rhode
Island; owns gas manufacturing plant and gas distribution facilities
all of which are located in Rhode Island.
Item 3: Valley Resources, Inc. (Holding Company)
Valley Gas Company:
(a) 7,091,773 Mcf natural or manufactured gas distributed at retail
(b) None
(c) None
(d) 1,265,463 Mcf natural gas purchased outside the State of Rhode
Island
Bristol and Warren Gas Company:
(a) 761,185 Mcf natural or manufactured gas distributed at retail
(b) None
(c) None
(d) 141,160 Mcf natural gas purchased outside the State of
Rhode Island
Item 4: Valley Resources, Inc. (Holding Company)
(a) None
(b) None
(c) None
(d) None
(e) None
<PAGE>
Exhibit A
Consolidating Statements of Income for the 12 Months Ended
December 31, 1997
Consolidating Balance Sheets at December 31, 1997
Exhibit B
Financial Data Schedule
Exhibit C
Not Applicable
The above-named claimant has caused this statement to be duly
executed on its behalf by its authorized officer on this 23rd day of February,
1998.
VALLEY RESOURCES, INC.
(Name of Claimant)
S/Kenneth W. Hogan
By Kenneth W. Hogan
Senior Vice President, CFO and
Secretary
Attest:
S/Sharon Partridge
Sharon Partridge, Assistant Vice President Finance & Treasurer
Name, title and address of officer to whom notices and correspondence con-
cerning this statement should be addressed:
S/K. W. Hogan
K. W. Hogan Senior Vice President
(Name) (Title)
1595 Mendon Road, Cumberland, Rhode Island 02864
(Address)
<PAGE>
<TABLE>
Exhibit A
(Unaudited)
VALLEY RESOURCES, INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
<CAPTION>
Utility Nonutility Reclass. &
Operations Operations Eliminations Consolidated
<S> <C> <C> <C> <C>
ASSETS
Utility Plant $81,145,383 $ 81,145,383
Accumulated Depreciation 30,065,420 30,065,420
----------- ----------- ------------ ------------
Net Utility Plant 51,079,963 -0- -0- 51,079,963
----------- ----------- ------------ ------------
Leased Property-Net 2,185,013 $ 33,522 2,218,535
----------- ----------- ------------ ------------
Nonutility Property-Net -0- 3,943,440 3,943,440
----------- ----------- ------------ ------------
Investment in Subsidiaries 26,501,462 $(26,501,462) -0-
Other Investments 1,374,205 225,632 1,599,837
----------- ----------- ------------ ------------
Total Investments 1,374,205 26,727,094 (26,501,462) 1,599,837
----------- ----------- ------------ ------------
Note Receivable -0- 2,872,790 (2,872,790) -0-
----------- ----------- ------------ ------------
CURRENT ASSETS:
Cash (1,034,470) 2,114,946 1,080,476
Accounts Receivable 12,267,772 20,228,608 (20,140,613) 12,355,767
Deferred Fuel Costs 343,074 -0- 343,074
Unbilled Gas Costs 2,307,748 -0- 2,307,748
Fuel & Other Inventories 4,063,853 1,930,306 5,994,159
Prepayments & Other 691,966 59,333 751,299
Common Stock Held for
Drip -0- 311,312 311,312
----------- ----------- ------------ ------------
Total 18,639,943 24,644,505 (20,140,613) 23,143,835
----------- ----------- ------------ ------------
DEFERRED DEBITS:
Prepaid Pensions 242,011 7,429,715 7,671,726
Other 11,821,502 739,986 38,682 12,600,170
----------- ----------- ------------ ------------
Total 12,063,513 8,169,701 38,682 20,271,896
----------- ----------- ------------ ------------
Total Assets $85,342,637 $66,391,052 $(49,476,183) $102,257,506
=========== =========== ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit A
(Unaudited)
VALLEY RESOURCES, INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
<CAPTION>
Utility Nonutility Reclass. &
Operations Operations Eliminations Consolidated
LIABILITIES & CAPITALIZATION
<S> <C> <C> <C> <C>
COMMON EQUITY:
Common Stock $10,800,000 $ 5,000,328 $(10,807,300) $ 4,993,028
Paid in Capital 4,279,782 26,334,767 (5,711,253) 24,903,296
Retained Earnings 5,898,752 10,395,251 (9,907,163) 6,386,840
----------- ----------- ------------ ------------
Total 20,978,534 41,730,346 (26,425,716) 36,283,164
Less: Accts. Rec. ESOP -0- (2,872,790) (2,872,790)
----------- ----------- ------------ ------------
Total 20,978,534 41,730,346 (29,298,506) 33,410,374
----------- ----------- ------------ ------------
LONG-TERM DEBT:
First Mortgage Bonds:
8.0% Series 20,039,000 -0- 20,039,000
7.7% Debentures 7,000,000 7,000,000
----------- ----------- ------------ ------------
Total 20,039,000 -0- -0- 27,039,000
----------- ----------- ------------ ------------
Note Payable 2,300,000 4,837,786 7,137,786
----------- ----------- ------------ ------------
Total 22,339,000 11,837,786 -0- 34,176,786
----------- ----------- ------------ ------------
Oblig. Under Cap Lease 1,472,326 26,704 -0- 1,499,030
----------- ----------- ------------ ------------
Minority Interest (37,066) (37,066)
----------- ----------- ------------ ------------
CURRENT LIABILITIES:
Current Matur-LT Debt -0- 150,000 150,000
Note Payable 19,685,028 2,175,000 (15,660,028) 6,200,000
Oblig. Under Cap
Lease 712,687 6,818 719,505
Accounts Payable 4,102,702 4,551,046 (2,998,787) 5,654,961
Security Deposits and
Refunds 1,024,460 3,325 1,027,785
Dividends Declared 912,100 1,493,406 (1,481,796) 923,710
Taxes Accrued (695,012) 217,754 (477,258)
Other 1,000,425 291,712 1,292,137
----------- ----------- ------------ ------------
Total 26,742,390 8,889,061 (20,140,611) 15,490,840
----------- ----------- ------------ ------------
DEFERRED CREDITS:
Unamort Invest Credit 658,460 -0- 658,460
Other 4,025,835 423,955 4,449,790
----------- ----------- ------------ ------------
Total 4,684,295 423,955 -0- 5,108,250
----------- ----------- ------------ ------------
Def. Federal Inc Taxes 9,126,092 3,483,200 12,609,292
----------- ----------- ------------ ------------
Total Liab & Capital $85,342,637 $66,391,052 $(49,476,183) $102,257,506
=========== =========== ============ ============
</TABLE>
<PAGE>
<TABLE>
Exhibit A
(Unaudited)
VALLEY RESOURCES, INC.
CONSOLIDATING INCOME STATEMENT
FOR THE TWELVE MONTHS ENDED DECEMBER 31, 1997
<CAPTION>
Utility Nonutility Reclass. &
Operations Operations Eliminations Consolidated
<S> <C> <C> <C> <C>
OPERATING REVENUES:
Utility Gas Revenues $65,875,065 $65,875,065
Nonutility Revenues $21,843,285 $ (124,567) 21,718,718
----------- ----------- ----------- -----------
Total 65,875,065 21,843,285 (124,567) 87,593,783
----------- ----------- ----------- -----------
OPERATING EXPENSES:
Cost of Gas Sold 37,469,320 37,469,320
Cost of Sales-
Nonutility 15,191,848 (88,932) 15,102,916
Operations 15,080,484 3,259,192 (168,617) 18,171,059
Maintenance 1,550,894 61,284 (1,916) 1,610,262
Depreciation 2,647,611 559,899 (675) 3,206,835
Taxes-Other Than FIT 3,944,937 302,572 (772) 4,246,737
Taxes-Federal Income 348,571 912,668 13,340 1,274,579
----------- ----------- ----------- -----------
Total 61,041,817 20,287,463 (247,572) 81,081,708
----------- ----------- ----------- -----------
Operating Income 4,833,248 1,555,822 123,005 6,512,075
Equity in Earnings
of Subsidiaries 2,954,931 (2,954,931) -0-
Other Income-Before FIT 174,637 740,543 (488,276) 426,904
Fed Inc Tax-Net of ITC 25,683 -0- -0- 25,683
----------- ----------- ----------- -----------
Total Income 4,982,202 5,251,296 (3,320,202) 6,913,296
----------- ----------- ----------- -----------
INTEREST CHARGES:
Long Term Debt 1,755,276 386,823 -0- 2,142,099
Other 1,434,206 105,829 (387,434) 1,152,601
Capitalized Interest (1,118) -0- -0- (1,118)
----------- ----------- ----------- -----------
Total 3,188,364 492,652 (387,434) 3,293,582
----------- ----------- ----------- -----------
Net Income $ 1,793,838 $ 4,758,644 $(2,932,768) $ 3,619,714
=========== =========== =========== ===========
Average Number of Common
Shares Outstanding 4,496,305
Earnings Per Average
Common Share $0.81
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> AUG-31-1998
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 102,257,506
<TOTAL-OPERATING-REVENUES> 87,593,783
<NET-INCOME> 3,619,714
</TABLE>
