UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
Form U-3A-2
File No.:1-14161
Statement by Holding Company Claiming Exemption Under Rule U-3A-2 from the
Provisions of the Public Utility Holding Company Act of 1935
MARKETSPAN CORPORATION D/B/A KEYSPAN ENERGY AND
KEYSPAN ENERGY CORPORATION
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
each of its statement claiming exemption as a holding company from the
provisions of the Public Utility Holding Company Act of 1935, (the "Act") and
submits the following information:
1. Name, State of organization, location and nature of business of claimant and
every subsidiary thereof, other than an exempt wholesale generator (EWG) or
foreign utility company in which claimant directly or indirectly holds an
interest.
The claimant, MarketSpan Corporation d/b/a KeySpan Energy ("KeySpan
Energy") is a New York corporation organized in 1998 and has its principal
executive offices at One MetroTech Center, Brooklyn, New York 11201 and 175 East
Old Country Road, Hicksville, New York 11801. KeySpan Energy is the parent
company of KeySpan Energy Corporation ("KSE"), another holding company claiming
exemption under the Public Utility Holding Act of 1935. Claimant 's principal
business is the ownership of all the outstanding shares of common stock or other
equity interests of KSE, KeySpan Gas East Corporation and KeySpan Generation,
LLC.
The claimant, KSE is a New York corporation organized in 1996 and has its
principal executive offices at One MetroTech Center, Brooklyn, New York 11201.
Claimant's principal business is the ownership of all the outstanding shares of
common stock of The Brooklyn Union Gas Company.
KeySpan Energy's principal wholly and majority-owned subsidiaries,
directly or indirectly owned, are as follows:
1
<PAGE>
The Brooklyn Union Gas Company, a New York corporation ("Brooklyn Union"),
distributes natural gas in the New York City boroughs of Brooklyn, Staten Island
and Queens and is regulated by the Public Service Commission of the State of New
York.
KeySpan Gas East Corporation, d/b/a Brooklyn Union of Long Island, a New York
corporation ("Brooklyn Union of Long Island") distributes natural gas in New
York State to Nassau and Suffolk counties and the Rockaway Peninsula in Queens
County and is regulated by the Public Service Commission of the State of New
York.
KeySpan Generation, LLC, a New York limited liability company, generates
electricity for the Long Island Power Authority (LIPA) under a fifteen-year
Power Supply Agreement. LIPA then sells the electricity to over one million
electric customers in Nassau and Suffolk counties and the Rockaway Peninsula of
Queens County.
Alberta Northeast Gas, Ltd., is a Canadian corporation that exports natural gas
for delivery to utilities in the Northeast through the Iroquois Gas Transmission
System.
Fritze KeySpan, LLC, a Delaware limited liability company is headquartered in
Whippany, New Jersey, and designs, builds, installs and services heating,
ventilating, and air-conditioning systems for commercial and residential
customers in North and Central New Jersey.
Gas Energy International Consultants, Inc., a Delaware corporation provides
consulting services relating to natural gas distribution and technologies to
overseas governments and municipalities. Gas Energy International Consultants,
Inc. is inactive, and will be dissolved.
GEI Timna, Inc., a Delaware corporation was established to develop an Israeli
power project.
GEI Power Plant Management, Inc., a Delaware corporation was established to
develop an Israeli power project. It is not active and will be dissolved.
GEI Development Corp., a Delaware corporation is the successor company to, and
holds the outstanding obligations of, Gas Energy Inc. and Gas Energy
Cogeneration, which were sold to Calpine Corporation in December 1997.
2
<PAGE>
Gulf Midstream Services Facilities Ltd., is a corporation organized under the
laws of Alberta, Canada that is engaged in the midstream business in Western
Canada. It holds an interest in the Chevron Fort Saschatachewan gas processing
facility, and the Rimbey Pipeline located in Western Canada.
Gulf Midstream Services Ltd., is a corporation organized under the laws of
Alberta, Canada. It is the managing partner of Gulf Midstream Services
Partnership and has a management agreement to operate facilities on behalf of
the partnership and Gulf Midstream Services Facilities Ltd.
Honeoye Storage Corporation, a New York corporation owns a gas storage
facility in Ontario County, New York. This underground gas storage
facility consists of 28 injection/withdrawal wells, 12 observation wells,
19 miles of field gathering lines, compressor units totaling 2700and 10.5
miles of transmission pipeline connecting the facilities to the Tennessee
Gas Pipeline transmission system. Honeoye provides up to 48.0 Billion
Cubic Feet (BCF) of storage service to New York and New England area gas
distribution companies. Honeoye also maintains an 18.6% interest in Adrian
Gas Storage which owns a gas storage facility in Steuben, New York.
KeySpan Energy owns 28.8% of the outstanding common stock of Honeoye.
KeySpan C.I., Ltd., a Cayman Island corporation, is a holding company for
investments in Phoenix Natural Gas Limited, a natural gas distribution
system, and Premier Transco Limited, a natural gas pipeline company, both
in Northern Ireland.
KeySpan C.I.II, Ltd., a Cayman Island corporation, is a holding company for
investment in Grupo KeySpan S. de R.L. de C. V.
KeySpan Corporate Services LLC, a New York limited liability company
provides corporate administrative services including financial, legal and
tax services to KeySpan Energy and its various subsidiaries and
affiliates.
KeySpan Crossbay, LLC, a Delaware limited liability company owns a 25%
interest in the Crossbay Pipeline Company, LLC, a Delaware limited
liability company that transports gas from interstate pipelines in New
Jersey to New York City and Long Island.
KeySpan Electric Services LLC, a New York limited liability company
provides day to day operation and maintenance services for the facilities
owned by LIPA, subject to LIPA's overall direction.
KeySpan Energy Canada, Ltd., a Canadian corporation was formed to
participate in the expansion of a natural gas liquids extraction plant in
Canada.
3
<PAGE>
KeySpan Energy Development Corporation, a Delaware corporation is the
developmental unit of KeySpan Energy responsible for spearheading
unregulated project development efforts, both domestically and
internationally. It is also involved in gas distribution and cogeneration
activities in selected developing gas markets in Europe and Latin America.
KeySpan Energy Management, Inc., a Delaware corporation is based in
Jericho, Long Island. It designs and operates energy systems of
large-scale residential and commercial facilities, and provides
energy-related services to clients in the New York metropolitan area.
KeySpan Energy Marketing Group, LLC, a Delaware limited liability company,
is a holding company for KeySpan Energy Management, Inc.; KeySpan Energy
Solutions, LLC; KeySpan Energy Services, Inc.; and Fritze KeySpan, LLC.
KeySpan Energy Services, Inc., a Delaware limited liability company buys
and sells gas, and provides related services to individual, commercial and
industrial customers in the Northeastern United States. It also sells
electricity to a limited number of retail customers.
KeySpan Energy Solutions, LLC, a Delaware limited liability company
provides service and maintenance for heating equipment, water heaters,
central air conditioners and gas appliances. It also offers safety
products and services to gas consumers.
KeySpan Energy Supply, LLC, a Delaware limited liability company is a
strategic alliance with Enron Capital & Trade Resources Corporation. This
joint venture markets gas supply management services to gas distribution
companies in the Northeast.
KeySpan Energy Trading Services, LLC, a New York limited liability company
is responsible for all energy supply trading on behalf of LIPA including
energy supply portfolio management, risk management and associated
administration and billing. In addition, it is responsible for the
purchase from third parties of additional capacity and energy on behalf of
LIPA to serve its customers, and the off-system sale, on behalf of LIPA,
of energy not required by LIPA to meet the needs of its system customers.
KeySpan Engineering Associates, Inc., a New York corporation is a
Professional Engineering Corporation that provides engineering services to
its clients. It is a wholly owned subsidiary of KeySpan Energy Management,
Inc.
KeySpan Exploration and Production, LLC, a Delaware corporation is a gas
exploration and development company which, most recently, entered into a
joint venture with The Houston Exploration Company as a result of which it
will jointly explore and develop 55 federal offshore leases in the Gulf of
Mexico.
4
<PAGE>
KeySpan International Corporation, a Delaware corporation is involved in
gas distribution and cogeneration activities in selected developing gas
markets in Europe and Latin America.
KeySpan Midstream, LLC, a Delaware limited liability company, wholly owned
by KeySpan Energy Development Corporation, is the holding company for
KeySpan CI Midstream Ltd.
KeySpan CI Midstream Ltd., a Cayman Island corporation, is the holding
company for Nicodama Beheer BVB, a company organized under the laws of the
Netherlands. Nicodama is the holding company for Lonfine Properties Ltd.,
a Gibraltar corporation which holds all of the issued and outstanding
shares of KeySpan Energy Development Corporation (Nova Scotia).
KeySpan Energy Development Corporation (Nova Scotia), is an unlimited
liability company incorporated under the laws of Nova Scotia. It holds a
50% interest in Gulf Midstream Facilities Ltd., and Gulf Midstream
Services Ltd. It also holds a 50% interest in Gulf Midstream Services
Partnership, a general partnership registered under the laws of Alberta,
Canada that focuses on the midstream business in Western Canada and holds
interests in several pipelines, gas gathering and processing facilities.
The partnership is also engaged in natural gas and gas products marketing.
KeySpan Natural Fuels, LLC, a Delaware limited liability company owns
Section 29 oil and gas properties in West Virginia, operated by The
Houston Exploration Company.
KeySpan North East Ventures, Inc. a Delaware corporation is the parent
holding company for Northeast Gas Markets, LLC.
KeySpan - Ravenswood, Inc., a New York corporation, was formed to acquire
the 2,168 megawatt Ravenswood electric generating facility located in
Queens, New York, currently owned by Consolidated Edison company of New
York, Inc. The acquisition of this facility is expected to occur within
the next several months. Following such acquisition, it is expected that
KeySpan-Ravenswood will be an exempt wholesale generator as defined in
Section 32 of the Act.
KeySpan Utility Services, LLC, a New York limited liability company
provides gas and electric transmission and distribution system planning,
marketing, gas supply planning and procurement, research, and meter repair
operations and corporate administrative services to regulated subsidiaries
of KeySpan Energy and to subsidiaries of KeySpan Energy which provide
services to LIPA.
LILCO Energy Systems, Inc., a New York corporation has a 1% equity
interest in the Iroquois Gas Transmission System, L.P., a FERC regulated
general partnership engaged
5
<PAGE>
in the operation of the Iroquois Pipeline which transports natural gas
from Canada to the Northeast United States.
MarketSpan Finance Corporation is a Vermont corporation, and a wholly
owned subsidiary of KeySpan Energy. This company is inactive.
Marquez Development Corp., a New York corporation owns a non-active
uranium mill and mine in New Mexico.
North East Transmission Co., Inc., a Delaware corporation has a 18.4%
equity interest in Iroquois Transmissions System, L.P., a FERC regulated
general partnership engaged in the operation of the Iroquois Pipeline
which transports natural gas from Canada to the Northeast United States.
Northeast Gas Markets, LLC, a Delaware limited liability company provides
natural gas procurement, management and marketing services, project
development support, and consulting services to clients in the
Northeastern United States.
R.D. Mortman, LLC, a New York limited liability company provides oil
burner/boiler service and installations.
Seneca-Upshur Petroleum, is a subsidiary of The Houston Exploration
Company which owns oil and gas properties in West Virginia.
The Houston Exploration Company, a Delaware corporation is engaged in the
exploration, development and acquisition of domestic natural gas and oil
properties. The company has offshore properties in the Gulf of Mexico, and
onshore properties in South Texas, The Arkoma Basin, East Texas and West
Virginia. The claimant owns approximately 64% of the outstanding stock of
The Houston Exploration Company, which stock is traded on the New York
Stock Exchange under the symbol THX.
THEC Holdings Corp., a Delaware corporation is the parent company for The
Houston Exploration Company.
2. A brief description of the properties of claimant and each of its subsidiary
public utility companies used for the generation, transmission, and distribution
of electric energy for sale, or for the production, transmission and
distribution of natural or manufactured gas, indicating the location of
principal generating plants, transmission lines, producing fields, gas
manufacturing plants, and electric and gas distribution facilities, including
all such properties which are outside the State in which claimant and its
subsidiaries are organized and all transmission or pipelines which deliver or
receive electric energy or gas at the borders of such State.
6
<PAGE>
(a) Description of properties of claimant:
KSE and KeySpan Energy have no properties that are used for the
generation, production, transmission and distribution of electric
energy or manufactured or natural gas.
(b) Description of properties of claimant's public utility company
subsidiary: Brooklyn Union, KSE's wholly-owned subsidiary public
utility company's properties consist primarily of natural gas
distribution systems and related facilities and local offices serving
the New York City boroughs of Brooklyn, Staten Island and Queens. As
of December 31, 1998, Brooklyn Union had approximately 3,909 miles of
gas main and 1,600,000 Mcf. of liquefied natural gas storage capacity.
Brooklyn Union is subject to the regulations of the Public Service
Commission of the State of New York.
Brooklyn Union of Long Island, KeySpan's wholly-owned subsidiary
public utility company's properties consist primarily of natural gas
distribution systems and related facilities and local offices in New
York State that serves Nassau and Suffolk Counties and the Rockaway
peninsula in Queens County in the State of New York. As of December
31, 1998, Brooklyn Union of Long Island had approximately 6,491
miles of gas main and 600,000 Mcf. of liquefied natural gas storage
capacity. Brooklyn Union of Long Island is subject to the
regulations of the Public Service Commission of the State of New
York.
KeySpan Generation, LLC, KeySpan's wholly owned electric public
utility company's properties consist of oil and gas-fired generating
facilities located on Long Island and the delivery of power
generated by these facilities to LIPA. As of December 31, 1998 the
company owned and operated 53 electric generation facilities
throughout Long Island. KeySpan Generation is regulated by the FERC.
It is not subject to The New York State Public Service Commission
(NYPSC) rate regulation because its sales of electricity are made
exclusively at wholesale; however, KeySpan Generation is subject to
NYPSC financial, reliability and safety regulation.
3. The following information for the last calendar year with respect to claimant
and each of its subsidiary public utility companies:
(a) Number of kwh. of electric energy sold (at retail or wholesale), and
Mcf. of natural or manufactured gas distributed at retail.
7
<PAGE>
Claimant Subsidiary
KeySpan Energy Corporati Brooklyn Union
None 154,051,000 dth
KSE Brooklyn Union of Long Island
None 66,270,000 dth
KeySpan Generation, LLC
17,892,652,242 kwh
(b) Number of kwh. of electric energy and Mcf. of natural or
manufactured gas distributed at retail outside the State in which
each company is organized.
KeySpan Energy Corporati Brooklyn Union
None None
KSE Brooklyn Union of Long Island
None None
KeySpan Generation, LLC
None
(c) Number of kwh. of electric energy and Mcf. of natural or manufactured gas
sold at wholesale outside the state in which each such company is
organized, or at the State line.
KeySpan Energy Corporati Brooklyn Union
None 7,265,000 dth
KSE Brooklyn Union of Long Island
17,200,000 dth
None
KeySpan Generation, LLC
34,491,000 kwh
8
<PAGE>
(d) Number of kwh. of electric energy and Mcf. of natural or manufactured gas
purchased outside the State in which each such company is organized, or at
the State line.
KeySpan Energy Corporati Brooklyn Union
None 184,000,481 dth
KSE Brooklyn Union of Long Island
None 76,811,450 dth
KeySpan Generation, LLC
81,202,000 kwh
Note:The information for the gas utilities was reported in dth because it
was not available in mcf.
4. The following information for the reporting period with respect to claimant
and each interest it holds directly or indirectly in an EWG or a foreign utility
company, stating monetary amounts in United States dollars.
(a) Name, location, business address and description of the facilities used by
the EWG or foreign utility company for the generation, transmission and
distribution of electric energy for sale or for the distribution at retail
of natural or manufactured gas.
Phoenix Natural Gas Limited (Phoenix) was organized in the United Kingdom
and has its office at 19 Clarendon Road, Clarendon Dock, Belfast, BT13BG.
Phoenix is a natural gas distribution company in Northern Ireland which
has claimed foreign utility company status under Section 33(a) of the
Public Utility Holding Company Act of 1935.
Premier Transco Limited (Premier), was organized in the United Kingdom and
has its office at 100 Thames Valley Park Drive, Reading, Berkshire,
England. Premier transports natural gas through a 24-inch pipeline from
southwest Scotland, under the Irish Sea, to Northern Ireland.
Finsa Energetics, S. de R.L. de C.V., (FINSA) a Mexican company, has its
office at Paso de la Reform Num. 300, Paso 14 Col. Juarez, Mexico City,
Mexico. It claimed foreign utility company status under Section 33(a) of
the Public Utility Holding Act of 1935, and is involved in the development
of generation and pipeline projects in Mexico.
9
<PAGE>
Grupo KeySpan S. de R.L. de C. V., a Mexican company, has its office at
Paso De Los Tamarinds No. 400A, Paso 20, Col. Basques De Las Lamas,
05120Mexico, D.F. It claimed foreign utility company status under Section
33(a) of the Public Utility Holding Act of 1935 and is the holding company
for KeySpan Energy's 50% interest in FINSA.
(b) Name of each company that holds an interest in such EWG or foreign utility
company; and description of the interest held.
The ownership structure of Phoenix and Premier are as follows: KeySpan CI,
Ltd., a Cayman Island company owns 24.5% of Phoenix's voting stock and 50%
of Premier's voting stock. KeySpan CI, Ltd., is an indirect wholly-owned
subsidiary of both KeySpan and KSE.
The ownership structure of Grupo and FINSA are as follows: KeySpan
International Corporation owns a 100% interest in KeySpan, CI, II, Ltd.,
and a .1% interest in Grupo. KeySpan CI, II, Ltd., owns a 99.9% interest
in Grupo. Grupo owns a 50% voting interest in FINSA.
(c) Type and amount of capital invested, directly or indirectly, by the
holding company claiming exemption; any direct or indirect guarantee of
the security of the EWG or foreign utility company by the holding company
claiming exemption; and any debt or other financial obligation for which
there is recourse, directly or indirectly, to the holding company claiming
exemption or another system company, other than the EWG or foreign utility
company.
The total amount invested in Phoenix is $38,634,000 and the type of
investment is common stock. Phoenix holds no debt for which there is
recourse directly or indirectly to the holding company
The total amount of capital invested in Premier is $61,053,000 and the
type of investment is common stock. Premier holds no debt for which there
is recourse directly or indirectly to the holding company.
The equity investment in FINSA paid through Grupo is $907,000, and the
debt is $1,295,000. There is no guarantee of any obligations of FINSA or
Grupo, nor is there any recourse from any obligations of FINSA or Grupo.
(d) Capitalization and earnings of the EWG or foreign utility company during
the reporting period.
10
<PAGE>
For the period ending December 31, 1998, Phoenix had a net loss of
$3,174,000 and Premier had a net gain of $1,639,000.
For the period ending December 31, 1998, Grupo KeySpan's share of FINSA's
loss was $93,000. Grupo's only asset is its interest in FINSA.
(e) Identify any service, sales or construction contract (s) between the EWG
or foreign utility company and a system company, and describe the services
to be rendered or goods sold and fees or revenues under such agreement(s).
None None
11
<PAGE>
EXHIBIT A
A consolidating statement of income and surplus of the claimant and its
subsidiary companies for the last calendar year, together with a consolidating
balance sheet of claimant and its subsidiary companies as of the close of such
calendar year.
The following financial statements of claimant and its subsidiary companies are
attached hereto as Exhibit A
Condensed Consolidating Income Statements (Unaudited) for
MarketSpan Corporation d/b/a KeySpan Energy and KeySpan
Energy for the Nine Months Ended December 31, 1998
Condensed Consolidating Earnings Reinvested Statements
(Unaudited) for MarketSpan Corporation d/b/a KeySpan Energy
and KeySpan Energy for the Nine Months Ended December 31,
1998
Condensed Consolidating Balance Sheet (Unaudited) for
MarketSpan Corporation d/b/a KeySpan Energy and KeySpan
Energy as of December 31, 1998
12
<PAGE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Balance Sheet
December 31, 1998
(In Thousands of Dollars)
KeySpan
<CAPTION>
KeySpan Energy Marketspan KeySpan
Marketspan Utility Trading Finance Energy
Corporation Services LLC Services LLC Corporation Services LLC
<S> <C> <C> <C> <C> <C>
Assets
Property
Electric 0 0 0 0 0
Gas 0 0 0 0 0
Common 0 0 0 0 0
Accumulated Depreciation 0 0 0 0 0
Gas Exploration & Production
Accumulated Depletion
-----------------------------------------------------------------------
0 0 0 0 0
-----------------------------------------------------------------------
Equity Investments and Other 2,000,846 0 0 0 0
-----------------------------------------------------------------------
Current Assets
Cash & Temporary Investments 0 0 0 0 0
Customer Accounts Receivables 0 0 0 0 0
Accrued Revenues 0 0 0 0 0
Other Accounts Receivable 4,494,988 32,381 15,922 0 356,402
Allowence for Uncollectible Accounts 0 0 0 0
Special Deposits 91,786 0 0 0 0
Gas in Storage, at average cost 0 0 0 0 0
Materials and Supplies, at average cost 0 0 0 0 19,452
Other 2,622 1,502 174 0 7,226
-----------------------------------------------------------------------
4,589,396 33,883 16,096 0 383,080
-----------------------------------------------------------------------
Deferred Charges
Regulatory Assets 0 0 0 0 0
Goodwill 177,357 0 0 0 0
Other 17,070 20,455 2,459 0 58,430
-----------------------------------------------------------------------
194,427 20,455 2,459 0 58,430
-----------------------------------------------------------------------
Total Assets 6,784,669 54,338 18,555 0 441,510
=======================================================================
</TABLE>
13
<PAGE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Balance Sheet
December 31, 1998
(In Thousands of Dollars)
<CAPTION>
KeySpan KeySpan KeySpan The Brooklyn KeySpan
Gas East Corporate Generation Union Gas Energy
Corporation Services LLC LLC Company Corporation
Assets
<S> <C> <C> <C> <C> <C>
Property
Electric 0 0 1,109,199 0 0
Gas 1,304,538 0 0 1,953,188 0
Common 0 345,007 0 0 0
Accumulated Depreciation (232,703) (108,417) (626,165) (512,753) 0
Gas Exploration & Production 0 14
Accumulated Depletion 0 0
--------------------------------------------------------------------
1,071,835 236,590 483,034 1,440,435 14
--------------------------------------------------------------------
Equity Investments and Other 2,870 372 (3,884) 153,727 1,331,428
--------------------------------------------------------------------
Current Assets
Cash & Temporary Investments 0 848,723 0 41,557 6,509
Customer Accounts Receivables 73,656 0 0 34,271 0
Accrued Revenues 51,972 0 0 126,557 0
Other Accounts Receivable 346,964 2,760,138 429,635 28,030 13,779
Allowence for Uncollectible Accounts (5,586) 0 0 (14,440) 0
Special Deposits 345 31,437 0 15,280 403
Gas in Storage, at average cost 70,957 0 0 74,320 0
Materials and Supplies, at average cost 7,095 3,534 33,973 9,224 0
Other 1,217 12,215 4,257 12,383 0
--------------------------------------------------------------------
546,620 3,656,047 467,865 327,182 20,691
--------------------------------------------------------------------
Deferred Charges
Regulatory Assets 155,363 0 2,300 0 0
Goodwill 0 0 0 0 0
Other (78) 126,339 46,714 221,357 (7,783)
--------------------------------------------------------------------
155,285 126,339 49,014 221,357 (7,783)
--------------------------------------------------------------------
Total Assets 1,776,610 4,019,348 996,029 2,142,701 1,344,350
====================================================================
</TABLE>
14
<PAGE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Balance Sheet
December 31, 1998
(In Thousands of Dollars)
<CAPTION>
KeySpan KeySpan
The Houston GEI Energy Energy Northeast
Expoloration Development Development Marketing Transmission
Company Company Comapny Group Company
Assets
<S> <C> <C> <C> <C> <C>
Property
Electric 0 0 0 0 0
Gas 0 0 0 0
Common 0 0 0 0 0
Accumulated Depreciation 0 0 0 0
Gas Exploration & Production 982,951 0 261 9,450
Accumulated Depletion (446,367) 0 0 (1,359)
-----------------------------------------------------------------
536,584 0 261 8,091 0
-----------------------------------------------------------------
Equity Investments and Other 0 0 296,183 0 45,424
-----------------------------------------------------------------
Current Assets
Cash & Temporary Investments 4,645 1,119 12,073 21,698 3,916
Customer Accounts Receivables 0 0 0 33,150
Accrued Revenues 0 0 0 0
Other Accounts Receivable 19,679 (177) 237 0 0
Allowence for Uncollectible Accounts 0 0 0 0
Special Deposits 0 0 0 0
Gas in Storage, at average cost 0 0 0 0
Materials and Supplies, at average cost 915 0 0 0
Other 4,262 0 510 17,564 0
-----------------------------------------------------------------
29,501 942 12,820 72,412 3,916
-----------------------------------------------------------------
Deferred Charges
Regulatory Assets 0 0 0 0 0
Goodwill 0 0 0 24,530 0
Other 3,369 0 68,211 7,028 0
-----------------------------------------------------------------
3,369 0 68,211 31,558 0
-----------------------------------------------------------------
Total Assets 569,454 942 377,475 112,061 49,340
=================================================================
</TABLE>
15
<PAGE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Balance Sheet
December 31, 1998
(In Thousands of Dollars)
<CAPTION>
KeySpan KeySpan KeySpan
Energy Natural Northeast Reclassifications
Supply LLC Fuels LLC Ventures LLC& Eliminations Consolidated
Assets
<S> <C> <C> <C> <C> <C>
Property
Electric 0 0 0 1,109,199
Gas 0 0 0 3,257,726
Common 0 0 0 345,007
Accumulated Depreciation 0 0 0 (1,480,038)
Gas Exploration & Production 0 1,360 68 994,104
Accumulated Depletion 0 0 (7) (447,733)
--------------------------------------------------------------------
0 1,360 61 0 3,778,265
--------------------------------------------------------------------
Equity Investments and Other 0 0 0 (3,485,620) 341,346
--------------------------------------------------------------------
Current Assets
Cash & Temporary Investments 1,118 65 1,353 942,776
Customer Accounts Receivables 0 0 0 1,230 142,307
Accrued Revenues 0 0 0 178,529
Other Accounts Receivable 380 (436) 187 (8,267,630) 230,479
Allowence for Uncollectible Accounts 0 0 0 (20,026)
Special Deposits 0 0 6,433 145,684
Gas in Storage, at average cost 0 0 0 145,277
Materials and Supplies, at average cost 0 0 0 74,193
Other 0 0 0 8,886 72,818
--------------------------------------------------------------------
1,498 (371) 1,540 (8,251,081) 1,912,037
--------------------------------------------------------------------
Deferred Charges
Regulatory Assets 0 0 0 121,861 279,524
Goodwill 0 0 0 201,887
Other 0 0 1,780 (183,308) 382,043
--------------------------------------------------------------------
0 0 1,780 (61,447) 863,454
--------------------------------------------------------------------
Total Assets 1,498 989 3,381 (11,798,148) 6,895,102
====================================================================
</TABLE>
16
<PAGE>
<TABLE>
<CAPTION>
Capitalization and Liabilities
<S> <C> <C> <C> <C> <C>
Capitalization
Common Stock 2,973,388 6,751 3,238 0 26,311
Retained Earnings 478,703 (3,985) 5,432 (5) (4,664)
Accumulated Foreign Currency Adjustment 0 0 0 0 0
Treasury Stock Purchased (423,350) 0 0 0 0
-----------------------------------------------------------------------
3,028,741 2,766 8,670 (5) 21,647
Preferred Stock 447,973 0 0 0 0
Long-Term Debt 1,069,341 10,126 4,857 0 39,466
-----------------------------------------------------------------------
Total Capitalization 4,546,055 12,892 13,527 (5) 61,113
-----------------------------------------------------------------------
Current Liabilities
Current Maturities of Long-Term Debt 0 0 0 0 0
Accounts Payable and Accrued Expenses 1,846,170 43,438 9,749 5,007 391,281
Dividends Payable 65,827 0 0 0 0
Taxes Accrued 25,176 11 12 (5,000) 2,094
Customer Deposits 0 0 0 0
Interest Accrued 10,875 0 0 0 0
-----------------------------------------------------------------------
1,948,048 43,449 9,761 7 393,375
-----------------------------------------------------------------------
Deferred Credits and Other Liabilities
Regulatory Liabilities 0 0 0 0 0
Deferred Fedeal Income Tax (58,461) (2,754) (4,832) (2) (22,949)
Pensions, Claims & Other Reserves 287,264 751 99 0 9,959
Other 61,763 0 0 0 12
-----------------------------------------------------------------------
290,566 (2,003) (4,733) (2) (12,978)
-----------------------------------------------------------------------
Minority Interest in Subsidiary Company
-----------------------------------------------------------------------
Total Capitalization and Liabilities 6,784,669 54,338 18,555 0 441,510
=======================================================================
</TABLE>
17
<PAGE>
<TABLE>
<CAPTION>
Capitalization and Liabilities
<S> <C> <C> <C> <C> <C>
Capitalization
Common Stock 530,085 172,807 197,745 468,747 591,773
Retained Earnings 83,242 (42,926) 8,868 484,250 420,772
Accumulated Foreign Currency Adjustment 0 0 0 0 (363)
Treasury Stock Purchased 0 0 0 0 0
--------------------------------------------------------------------
613,327 129,881 206,613 952,997 1,012,182
Preferred Stock 0 0 0 0 0
Long-Term Debt 574,259 259,206 322,637 647,191 0
--------------------------------------------------------------------
Total Capitalization 1,187,586 389,087 529,250 1,600,188 1,012,182
--------------------------------------------------------------------
Current Liabilities
Current Maturities of Long-Term Debt 0 0 0 0 0
Accounts Payable and Accrued Expenses 571,675 3,622,516 448,457 107,810 331,543
Dividends Payable 0 0 0 2 403
Taxes Accrued 3,930 74 21,455 20,611 978
Customer Deposits 4,167 0 0 25,607 0
Interest Accrued (28) 0 0 38,381 2,182
--------------------------------------------------------------------
579,744 3,622,590 469,912 192,411 335,106
--------------------------------------------------------------------
Deferred Credits and Other Liabilities
Regulatory Liabilities 23,332 0 0 0 0
Deferred Fedeal Income Tax (100,229) 684 (5,565) 238,769 (3,257)
Pensions, Claims & Other Reserves 86,110 4,193 2,432 45,179 319
Other 67 2,794 0 66,154 0
--------------------------------------------------------------------
9,280 7,671 (3,133) 350,102 (2,938)
--------------------------------------------------------------------
Minority Interest in Subsidiary Company
--------------------------------------------------------------------
Total Capitalization and Liabilities 1,776,610 4,019,348 996,029 2,142,701 1,344,350
====================================================================
</TABLE>
18
<PAGE>
<TABLE>
<CAPTION>
Capitalization and Liabilities
<S> <C> <C> <C> <C> <C>
Capitalization
Common Stock 231,171 9,944 297,990 84,806 32,448
Retained Earnings (38,639) (15,683) 6,057 (13,916) 7,060
Accumulated Foreign Currency Adjustment 0 0 (589) 0 0
Treasury Stock Purchased 0 0 0 0 0
-----------------------------------------------------------------
192,532 (5,739) 303,458 70,890 39,508
Preferred Stock 0 0 0 0 0
Long-Term Debt 233,000 0 67,535 0 0
-----------------------------------------------------------------
Total Capitalization 425,532 (5,739) 370,993 70,890 39,508
-----------------------------------------------------------------
Current Liabilities
Current Maturities of Long-Term Debt 0 0 0 0
Accounts Payable and Accrued Expenses 32,743 12,939 8,240 27,282 45
Dividends Payable 0 0 0 0
Taxes Accrued 0 0 0 1,584 2,594
Customer Deposits 0 0 0 0
Interest Accrued 80,000 (581) 0 11,799 0
-----------------------------------------------------------------
112,743 12,358 8,240 40,665 2,639
-----------------------------------------------------------------
Deferred Credits and Other Liabilities
Regulatory Liabilities 0 0 0 0 0
Deferred Fedeal Income Tax 31,027 (5,677) (1,758) (4,953) 7,193
Pensions, Claims & Other Reserves 152 0 0 5,459 0
Other 0 0 0 0 0
-----------------------------------------------------------------
31,179 (5,677) (1,758) 506 7,193
-----------------------------------------------------------------
Minority Interest in Subsidiary Company
-----------------------------------------------------------------
Total Capitalization and Liabilities 569,454 942 377,475 112,061 49,340
=================================================================
</TABLE>
19
<PAGE>
<TABLE>
<CAPTION>
Capitalization and Liabilities
<S> <C> <C> <C> <C> <C>
Capitalization
Common Stock 1,500 1,500 1,997 (2,658,813) 2,973,388
Retained Earnings (120) 594 620 (901,472) 474,188
Accumulated Foreign Currency Adjustment 0 0 0 (952)
Treasury Stock Purchased 0 0 0 (366) (423,716)
--------------------------------------------------------------------
1,380 2,094 2,617 (3,560,651) 3,022,908
Preferred Stock 0 0 0 447,973
Long-Term Debt 0 0 0 (1,608,551) 1,619,067
--------------------------------------------------------------------
Total Capitalization 1,380 2,094 2,617 (5,169,202) 5,089,948
--------------------------------------------------------------------
Current Liabilities
Current Maturities of Long-Term Debt 0 0 398,000 398,000
Accounts Payable and Accrued Expenses 172 200 122 (6,940,101) 519,288
Dividends Payable 0 0 0 66,232
Taxes Accrued 0 294 126 (4,197) 69,742
Customer Deposits 0 0 0 29,774
Interest Accrued 0 0 0 (122,663) 19,965
--------------------------------------------------------------------
172 494 248 (6,668,961) 1,103,001
--------------------------------------------------------------------
Deferred Credits and Other Liabilities
Regulatory Liabilities 0 0 0 29,805 53,137
Deferred Fedeal Income Tax (54) (1,599) 122 5,844 71,549
Pensions, Claims & Other Reserves 0 0 135 15,407 457,459
Other 0 0 0 (80,333) 50,457
--------------------------------------------------------------------
(54) (1,599) 257 (29,277) 632,602
--------------------------------------------------------------------
Minority Interest in Subsidiary Company 259 69,292 69,551
--------------------------------------------------------------------
Total Capitalization and Liabilities 1,498 989 3,381 (11,798,148) 6,895,102
====================================================================
</TABLE>
20
<PAGE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Income Statement
Nine Months ended December 31, 1998
(In Thousands of Dollars)
<CAPTION>
KeySpan
KeySpan Energy Marketspan KeySpan
Marketspan Utility Trading Finance Energy
Corporation Services LLC Services LLC Corporation Services LLC
<S> <C> <C> <C> <C> <C>
Revenues
Gas Distribution 79,979 0 0 0 0
Gas Exploration & Production 0 0 0 0 0
Electric Service 0 0 3,565 0 226,372
Electric Distribution 330,011 0 0 0 0
Other 1,493 33,152 1,414 0 1,937
---------------------------------------------------------------------
Total Revenues 411,483 33,152 4,979 0 228,309
---------------------------------------------------------------------
Operating Expenses
Purchased Gas 38,933 0 0 0 0
Fuel and Purchased Power 91,762 0 0 0 0
Operations 94,805 37,662 4,242 7 205,889
Maintenance 21,566 0 0 0 31,929
Depreciation, Depletion and Amortization 30,320 0 0 0 0
Electric Regulatory Amortization (39,841) 0 0 0 0
Operating Taxes 75,300 (18) 51 0 3,616
Federal Income Taxes (Credit) 14,518 (1,568) 241 (3) (4,639)
---------------------------------------------------------------------
Total Operating Expenses 327,363 36,076 4,534 4 236,795
---------------------------------------------------------------------
Operating Income 84,120 (2,924) 445 (4) (8,486)
---------------------------------------------------------------------
Other Income and Deductions
Transaction related Expenses
(Net of $99,701 Income Tax) (190,413) (850) 4,917 0 4,879
Interest and Other, net 53,518 122 229 0 377
Minority Interest 0 0 0 0 0
---------------------------------------------------------------------
Total Other Income and (Deductions) (136,895) (728) 5,146 0 5,256
---------------------------------------------------------------------
Income (Loss) Before Interest Charges (52,775) (3,652) 5,591 (4) (3,230)
Interest Charges 115,856 332 159 0 1,292
---------------------------------------------------------------------
Net Income (Loss) (168,631) (3,984) 5,432 (4) (4,522)
Preferred Stock Dividend Requirements 28,604 0 0 0 0
---------------------------------------------------------------------
Earnings (Loss) for Common Stock (197,235) (3,984) 5,432 (4) (4,522)
=====================================================================
</TABLE>
21
<PAGE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Income Statement
Nine Months ended December 31, 1998
(In Thousands of Dollars)
<CAPTION>
KeySpan KeySpan KeySpan The Brooklyn KeySpan
Gas East Corporate Generation Union Gas Energy
Corporation Services LLC LLC Company Corporation
<S> <C> <C> <C> <C> <C>
Revenues
Gas Distribution 270,026 0 0 499,538 0
Gas Exploration & Production 0 0 0 0 0
Electric Service 0 0 178,368 0 0
Electric Distribution 0 0 0 0
Other 1,963 136,785 11,969 0 0
----------------------------------------------------------------
Total Revenues 271,989 136,785 190,337 499,538 0
----------------------------------------------------------------
Operating Expenses
Purchased Gas 111,654 0 0 168,116 0
Fuel and Purchased Power 0 0 0 0 0
Operations 74,247 194,413 65,760 156,844 (152)
Maintenance 9,498 (5) 18,252 32,474 0
Depreciation, Depletion and Amortization 15,887 10,550 22,915 39,090 0
Electric Regulatory Amortization (2,548) 0 0 0 0
Operating Taxes 41,637 5,280 61,460 67,462 1,237
Federal Income Taxes (Credit) (2,402) (27,623) 1,450 5,498 867
----------------------------------------------------------------
Total Operating Expenses 247,973 182,615 169,837 469,484 1,952
----------------------------------------------------------------
Operating Income 24,016 (45,830) 20,500 30,054 (1,952)
----------------------------------------------------------------
Other Income and Deductions
Transaction related Expenses
(Net of $99,701 Income Tax) 90,934 (19,471) 2,092 0 0
Interest and Other, net 2,311 34,820 (1,504) (52,566) (48,959)
Minority Interest 0 0 0 0 0
----------------------------------------------------------------
Total Other Income and (Deductions) 93,245 15,349 588 (52,566) (48,959)
----------------------------------------------------------------
Income (Loss) Before Interest Charges 117,261 (30,481) 21,088 (22,512) (50,911)
Interest Charges 32,485 7,905 11,658 20,115 0
----------------------------------------------------------------
Net Income (Loss) 84,776 (38,386) 9,430 (42,627) (50,911)
Preferred Stock Dividend Requirements 0 0 0 0 0
----------------------------------------------------------------
Earnings (Loss) for Common Stock 84,776 (38,386) 9,430 (42,627) (50,911)
================================================================
</TABLE>
22
<PAGE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Income Statement
Nine Months ended December 31, 1998
(In Thousands of Dollars)
<CAPTION>
KeySpan KeySpan
The Houston GEI Energy Energy Northeast
Expoloration Development Development Marketing Transmission
Company Company Comapny Group Company
<S> <C> <C> <C> <C> <C>
Revenues
Gas Distribution 0 0 0 0 0
Gas Exploration & Production 70,812 0 0 0 0
Electric Service 0 0 0 0 0
Electric Distribution 0 0 0 0 0
Other 0 0 117 61,248 0
--------------------------------------------------------------------
Total Revenues 70,812 0 117 61,248 0
--------------------------------------------------------------------
Operating Expenses
Purchased Gas 0 0 0 0
Fuel and Purchased Power 0 0 0 0 0
Operations 15,880 0 3,750 66,539 0
Maintenance 0 0 0 0
Depreciation, Depletion and Amortization 177,113 0 253 997
Electric Regulatory Amortization 0 0 0 0 0
Operating Taxes 373 0 1 660
Federal Income Taxes (Credit) (44,642) 0 (1,306) (2,136) 0
--------------------------------------------------------------------
Total Operating Expenses 148,724 0 2,698 66,060 0
--------------------------------------------------------------------
Operating Income (77,912) 0 (2,581) (4,812) 0
--------------------------------------------------------------------
Other Income and Deductions
Transaction related Expenses
(Net of $99,701 Income Tax) 0 0 0 0 0
Interest and Other, net 650 (5,217) (184) 811 3,601
Minority Interest 0 0 0 0 0
--------------------------------------------------------------------
Total Other Income and (Deductions) 650 (5,217) (184) 811 3,601
--------------------------------------------------------------------
Income (Loss) Before Interest Charges (77,262) (5,217) (2,765) (4,001) 3,601
Interest Charges 3,873 0 0 0 0
--------------------------------------------------------------------
Net Income (Loss) (81,135) (5,217) (2,765) (4,001) 3,601
Preferred Stock Dividend Requirements 0 0 0 0 0
--------------------------------------------------------------------
Earnings (Loss) for Common Stock (81,135) (5,217) (2,765) (4,001) 3,601
====================================================================
</TABLE>
23
<PAGE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Income Statement
Nine Months ended December 31, 1998
(In Thousands of Dollars)
<CAPTION>
KeySpan KeySpan KeySpan
Energy Natural Nportheast Reclassifications
Supply LLC Fuels LLC Ventures LLC & Eliminations Consolidated
<S> <C> <C> <C> <C> <C>
Revenues
Gas Distribution 0 0 0 849,543
Gas Exploration & Production 0 0 0 70,812
Electric Service 0 0 0 408,305
Electric Distribution 0 0 0 330,011
Other 244 0 1,265 (188,406) 63,181
------------------------------------------------------------------------
Total Revenues 244 0 1,265 (188,406) 1,721,852
------------------------------------------------------------------------
Operating Expenses
Purchased Gas 0 318,703
Fuel and Purchased Power 0 0 0 91,762
Operations 428 0 434 (185,791) 734,957
Maintenance 0 0 0 113,714
Depreciation, Depletion and Amortization 0 0 122 (2,384) 294,863
Electric Regulatory Amortization 0 0 0 2,384 (40,005)
Operating Taxes 0 0 60 5 257,124
Federal Income Taxes (Credit) (54) 0 215 (922) (62,506)
------------------------------------------------------------------------
Total Operating Expenses 374 0 831 (186,708) 1,708,612
------------------------------------------------------------------------
Operating Income (130) 0 434 (1,698) 13,240
------------------------------------------------------------------------
Other Income and Deductions
Transaction related Expenses
(Net of $99,701 Income Tax) 0 0 0 (107,912)
Interest and Other, net 31 194 16 49,064 37,314
Minority Interest 0 0 (63) 29,204 29,141
------------------------------------------------------------------------
Total Other Income and (Deductions) 31 194 (47) 78,268 (41,457)
------------------------------------------------------------------------
Income (Loss) Before Interest Charges (99) 194 387 76,570 (28,217)
Interest Charges 0 0 0 (54,960) 138,715
------------------------------------------------------------------------
Net Income (Loss) (99) 194 387 131,530 (166,932)
Preferred Stock Dividend Requirements 0 0 0 28,604
---------------------------------------- ---------------
Earnings (Loss) for Common Stock (99) 194 387 131,530 (195,536)
========================================================================
</TABLE>
24
<PAGE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Earnings Reinvestment Statement
Nine Months ended December 31, 1998
(In Thousands of Dollars)
<CAPTION>
KeySpan
KeySpan Energy Marketspan KeySpan
Marketspan Utility Trading Finance Energy
Corporation Services LLC Services LLC Corporation Services LLC
<S> <C> <C> <C> <C> <C>
Earnings Reinvested at Beginning of Period 956,092 0 0 0 0
Net Income ( Loss) (168,631) (3,984) 5,432 (4) (4,522)
----------------------------------------------------------------------
787,461 (3,984) 5,432 (4) (4,522)
Dividends Declared on Common Stock (214,012) 0 0 0 0
Dividends Declared on Preferred Stock (28,604) 0 0 0 0
Other, Includes Redemption of Preferred Stock (66,142) (1) 0 (1) (142)
======================================================================
Earnings Reinvested at End of Period 478,703 (3,985) 5,432 (5) (4,664)
======================================================================
</TABLE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Earnings Reinvestment Statement
Nine Months ended December 31, 1998
(In Thousands of Dollars)
<CAPTION>
KeySpan KeySpan KeySpan The Brooklyn KeySpan
Gas East Corporate Generation Union Gas Energy
Corporation Services LLC LLC Company Corporation
<S> <C> <C> <C> <C> <C>
Earnings Reinvested at Beginning of Period 0 0 0 526,884 471,733
Net Income ( Loss) 84,776 (38,386) 9,430 (42,627) (50,911)
------------------------------------------------------------------
84,776 (38,386) 9,430 484,257 420,822
Dividends Declared on Common Stock 0 0 0 0 0
Dividends Declared on Preferred Stock 0 0 0 0 0
Other, Includes Redemption of Preferred Stock (1,534) (4,540) (562) (7) (50)
==================================================================
Earnings Reinvested at End of Period 83,242 (42,926) 8,868 484,250 420,772
==================================================================
</TABLE>
25
<PAGE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Earnings Reinvestment Statement
Nine Months ended December 31, 1998
(In Thousands of Dollars)
<CAPTION>
KeySpan KeySpan
The Houston GEI Energy Energy Northeast
Expoloration Development Development Marketing Transmission
Company Company Comapny Group Company
<S> <C> <C> <C> <C> <C>
Earnings Reinvested at Beginning of Period 42,497 (10,617) 8,821 (9,886) 3,459
Net Income ( Loss) (81,135) (5,217) (2,765) (4,001) 3,601
-------------------------------------------------------------------
(38,638) (15,834) 6,056 (13,887) 7,060
Dividends Declared on Common Stock 0 0 0 0 0
Dividends Declared on Preferred Stock 0 0 0 0 0
Other, Includes Redemption of Preferred Stock (1) 151 1 (29) 0
===================================================================
Earnings Reinvested at End of Period (38,639) (15,683) 6,057 (13,916) 7,060
===================================================================
</TABLE>
<TABLE>
MarketSpan Corporation
D/B/A KeySpan Energy
Consolidating Earnings Reinvestment Statement
Nine Months ended December 31, 1998
(In Thousands of Dollars)
<CAPTION>
KeySpan KeySpan KeySpan
Energy Natural Nportheast Reclassifications
Supply LLC Fuels LLC Ventures LLC & Eliminations Consolidated
<S> <C> <C> <C> <C> <C>
Earnings Reinvested at Beginning of Period (21) 400 234 (1,033,504) 956,092
Net Income ( Loss) (99) 194 387 131,530 (166,932)
-------------------------------------------------------------------------
(120) 594 621 (901,974) 789,160
Dividends Declared on Common Stock 0 0 0 0 (214,012)
Dividends Declared on Preferred Stock 0 0 0 0 (28,604)
Other, Includes Redemption of Preferred Stock 0 0 (1) 502 (72,356)
=========================================================================
Earnings Reinvested at End of Period (120) 594 620 (901,472) 474,188
=========================================================================
</TABLE>
26
<PAGE>
MarketSpan Corporation
Notes to the Consolidating Financial Statements
The financial statements of KeySpan Energy Development Corporation include the
assets, liabilities, results of operations and changes in reinvested earnings of
the following companies:
KeySpan International Corporation KeySpan CI Ltd.
Phoenix Natural Gas Limited
Premier Transco Limited
KeySpan CI II Ltd.
Grupo KeySpan S. de R.L. de C.V.
FINSA Energeticos, S. de R.L. de C.V.
GEI Timna, Inc.
GEI International Consultants, Inc.
GEI Power Plant Management Inc.
Honeoye Storage Corporation
Arlington Associates Limited Partnership
KeySpan Energy Canada Ltd.
KeySpan Midstream, LLC
KeySpan CI Midstream Ltd.
KeySpan Energy Development Corporation (Nova Scotia)
Gulf Midstream Services Facilities Ltd.
Gulf Midstream Services Ltd.
The financial statements of KeySpan Energy Marketing Group include the assets,
liabilities, results of operations and changes in reinvested earnings of the
following companies:
KeySpan Energy Management, Inc.
KeySpan Engineering Associates Inc.
R. D. Mortman, LLC
KeySpan Energy Solutions, LLC
KeySpan Energy Services, Inc.
Fritze KeySpan, LLC
The financial statements of KeySpan North East Ventures, Inc. include the
assets, liabilities, results of operations and changes in reinvested earnings of
Northeast Gas Markets, LLC.
The financial statements of The Houston Exploration Company include the assets,
liabilities, results of operations and changes in reinvested earnings of
Seneca-Upshur Petroleum, Inc.
and THEC Holdings Corp.
The financial statements of North East Transmission Company, Inc. includes the
equity investment in Iroquois Gas Transmission System, L.P.
The financial statements of KeySpan Generation, LLC includes the equity
investment in Marques Development Corp.
The financial statements of KeySpan Gas East Corporation, d/b/a Brooklyn Union
of Long Island includes the equity investment in LILCO Energy Systems, Inc.
27
<PAGE>
EXHIBIT B. Financial Data Schedule
If, at the time a report on this form is filed, the registrant is required
to submit this report and any amendments thereto electronically via EDGAR, the
registrant shall furnish a Financial Data Schedule. The Schedule shall set forth
the financial and other data specified below that are applicable to the
registrant on a consolidated basis.
Item No. Caption Heading
1 Total Assets
2 Total Operating Revenues
3 Net Income
SEE EXHIBIT 27 ANNEXED HERETO
28
<PAGE>
EXHIBIT C
An organization chart showing the relationship of each EWG or foreign
utility company to associate companies in the holding-company system.
KEYSPAN ENERGY
APRIL 16, 1999
----------------------
MarketSpan Corporation
d/b/a
KeySpan Energy
----------------------
|
----------------------
KeySpan Energy
Corporation
----------------------
|
----------------------
KeySpan Energy
Development
Corporation
----------------------
|
---------------------------------
KeySpan International Corporation
---------------------------------
|
-------------------------------------------------------------------
| |
------------------ ---------------------
KeySpan, C.I., LTD KeySpan, C.I. II, LTD
------------------ ---------------------
| |
- ------------------------------------ ---------------------------------
| | Grupo KeySpan, S. de R.L. de C.V.
- ------------------- ----------------------- (99.9 Own)
Phoenix Premier Transco Limited --------------------------------
Natural Gas Limited (50% Interest) |
(24.5% Interest) -----------------------
- ------------------ ----------------------- FINSA Energeticos,
S. de R.L. de C.V.
(50% Interest)
-----------------------
29
<PAGE>
The above-named claimant has caused this statement to be duly executed on
its behalf by its authorized officer on this 16th day of April, 1999.
MARKETSPAN CORPORATION
d/b/a KEYSPAN ENERGY
(Name of Claimant)
By /s/ Ronald S. Jendras
--------------------------
Ronald S. Jendras
Vice President, Controller &
Chief Accounting Officer
[Corporate Seal of MarketSpan Corporation d/b/a KeySpan Energy Appears Here]
CORPORATE SEAL
Attest
/s/ Robert R. Wieczorek
-----------------------
Robert R. Wieczorek
Vice President, Secretary &
Treasurer
30
<PAGE>
The above-named claimant has caused this statement to be duly executed on its
behalf by its authorized officer on this 16th day of April, 1999.
KEYSPAN ENERGY CORPORATION
(Name of Claimant)
By /s/ Ronald S. Jendras
------------------------------------
Ronald S. Jendras
Vice President, Controller &
Chief Accounting Officer
[Corporate Seal of KeySpan Energy Corporation Appears Here]
CORPORATE SEAL
Attest
/s/ Robert R. Wieczorek
-----------------------
Robert R. Wieczorek
Vice President, Secretary &
Treasurer
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Robert R. Wieczorek Vice President, Secretary & Treasurer
-------------------- --------------------------------------
(Name) (Title)
One MetroTech Center, Brooklyn, New York 11201
-----------------------------------------------
(Address)
31
<TABLE> <S> <C>
<ARTICLE> OPUR3
<LEGEND>
This schedule contains summary financial information extracted from the
Consolidating Balance Sheet, Consolidating Income Statement, and Consolidating
Earnings Reinvestment Statement, and is qualified in its entirety by referene to
such financial statements.
</LEGEND>
<MULTIPLIER> 1000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-START> APR-01-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 6,895,102
<TOTAL-OPERATING-REVENUES> 1,721,852
<NET-INCOME> (195,536)
</TABLE>
