SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM U-3A-2/A
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
NIAGARA MOHAWK HOLDINGS, INC.
HEREBY FILES WITH THE SECURITIES AND 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 AND SUBMITS THE FOLLOWING
INFORMATION:
<PAGE>
1. NAME, STATE OF ORGANIZATION, LOCATION AND NATURE OF BUSINESS OF CLAIMANT
AND EVERY SUBSIDIARY THEREOF, OTHER THAN ANY EXEMPT WHOLESALE GENERATOR
(EWG) OR FOREIGN UTILITY COMPANY IN WHICH THE CLAIMANT DIRECTLY OR
INDIRECTLY HOLDS AN INTEREST.
<TABLE>
<CAPTION>
Column A Column B Column C Column D
- --------------------------------- --------------------- ------------------- -----------------
% of Voting Sec.
Name and Location of Company State of Organization Nature of Business Owned by Claimant
- --------------------------------- --------------------- ------------------- -----------------
<S> <C> <C> <C>
Niagara Mohawk Holdings, Inc.
(Holdings or Claimant). . . . . . Holding Company
Syracuse, New York. . . . . . . . New York (Note A) N/A
Niagara Mohawk Power Corporation
(Niagara Mohawk) Electric and Gas
Syracuse, New York. . . . . . . . New York Utility (Note B) 100.00%
Opinac North America, Inc.
("Opinac NA") Investment
Syracuse, New York. . . . . . . . Delaware Company (Note C) 100.00%
</TABLE>
Note A- HOLDING COMPANY FORMATION: On March 18, 1999, Niagara Mohawk Power
Corporation ("Niagara Mohawk") was reorganized into a holding company
structure in accordance with an Agreement and Plan of Exchange between
Niagara Mohawk and Niagara Mohawk Holdings, Inc. ("Holdings"). Niagara
Mohawk's outstanding common stock was exchanged on a share-for-share
basis for Holdings' common stock. Niagara Mohawk's preferred stock and
debt were not exchanged as part of the share exchange and continue as
obligations of Niagara Mohawk.
SUBSIDIARIES: On March 31, 1999, Niagara Mohawk distributed its
ownership in the stock of Opinac North America, Inc. ("Opinac NA") as
a dividend to Holdings. As a result, the net assets and accumulated
other comprehensive income of Opinac NA are no longer included in
Niagara Mohawk's consolidated balance sheet as of December 31, 1999.
The dividend completed the holding company structure, with Holdings
owning 100 percent of the common stock of its two subsidiaries, Niagara
Mohawk and Opinac NA. Niagara Mohawk and its subsidiaries manage all
regulated activities and comprise approximately 98 percent of the
assets and approximately 94 percent of the revenues of Holdings.
Opinac NA and its subsidiaries manage all other activities including an
energy marketing company and investments in energy related services
businesses and a development stage telecommunications company.
Note B- Niagara Mohawk owns the following:
- 100 percent of NM Uranium, Inc., a mining company incorporated in the
state of Texas and located in Syracuse, New York.
- 100 percent of NM Properties, Inc., ("NM Properties") a real estate
development company located in Syracuse, New York and incorporated in
the state of New York. NM Properties, Inc. owns 100 percent of the
following companies, each of which is a real estate development
company located in Syracuse, New York and incorporated in the state
of New York.
- Hudson Pointe, Inc.
- Land Management & Development, Inc.
- Landwest, Inc.
- Moreau Park, Inc.
- Riverview, Inc.
- Salmon Shores, Inc.
- Upper Hudson Development, Inc.
- Oprop Co., Inc.
- City & Country Realty, Inc.
- 100 percent of NM Receivables Corporation II which was incorporated
in the state of New York in 1998 and is located in Syracuse, New
York. It manages the operations of NM Receivables LLC in which it
has an interest of .00164 percent.
- 99.99836 percent of NM Receivables LLC, which is a limited liability
company incorporated in 1998 in the state of New York and located in
Syracuse, New York. Its business consists of the purchase and resale
of an undivided interest in a designated pool of Niagara Mohawk
customer receivables, including unbilled revenues.
Niagara Mohawk sold its interest in Moreau Manufacturing Corporation
and Beebee Island Corporation on July 29, 1999.
Note C- Opinac NA owns the following:
- 100 percent of Opinac Energy Corporation
- 100 percent of Niagara Mohawk Energy, Inc.
Opinac Energy Corporation is an investment company incorporated in the
province of Ontario, Canada and located in Ontario, Canada and owns the
following:
- 50 percent of Canadian Niagara Power Company, Limited ("CNP Ltd."),
an unregulated electric generation utility located in Ontario,
Canada and incorporated in the province of Ontario, Canada. CNP Ltd.
owns the following:
- 100 percent of Canadian Niagara Power, Inc. ("CNP Inc."), a
regulated transmission and distribution business incorporated in the
province of Ontario, Canada and located in Ontario, Canada.
- 100 percent of 1161557 Ontario Limited incorporated in the province
of Ontario, Canada and located in Ontario, Canada.
Effective April 1, 1999, in order to comply with requirements of the
province of Ontario, Canada, CNP, Ltd. separated its generation
business from its transmission and distribution business. CNP, Ltd.
retained the generation assets and transferred its transmission and
distribution assets to CNP, Inc.
Niagara Mohawk Energy, Inc. ("NM Energy") is an unregulated energy
marketing and energy related energy services company located in
Syracuse, New York, incorporated in the state of Delaware. NM Energy
owns the following:
- 100 percent of Niagara Mohawk Energy Marketing, Inc., incorporated
in the state of Delaware and located in Syracuse, New York;
- 100 percent of Niagara Mohawk Energy, India Private Ltd., New Delhi,
incorporated in India and located in New Delhi, India;
- 90 percent of Dolphin Investments International, Inc., a corporation
organized and existing under the laws of Nevis, West Indies and
located in the island of Nevis.
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.
In May 1998, the PSC approved the Company's plan to divest all of its fossil
and hydro generation assets. Accordingly, during 1999, Niagara Mohawk
completed the sale of its coal-fired generation plants, its hydroelectric
generation plants, including its interest in Beebee Island and Feeder Dam
hydro plants and their output, and its oil and gas-fired generation plant in
Oswego. As of December 31, 1999, Niagara Mohawk owned and operated one
fossil fuel steam plant, had a 25 percent interest in the Roseton Steam
Station and its output, and owned and operated two nuclear fuel steam
plants. Niagara Mohawk has entered into agreements to sell these remaining
generation assets, but is awaiting the necessary regulatory approvals to
complete the sales.
The following is a list of Niagara Mohawk's remaining major generating
stations as of December 31, 1999:
<TABLE>
<CAPTION>
Niagara Mohawk's Share
of Nominal Net
Station, Location and Percent Ownership Energy Source Capability in Megawatts
- ------------------------------------------- --------------- -----------------------
<S> <C> <C>
Albany, Hudson River (100%) . . . . . . . . Oil/Natural Gas 400
Roseton, Hudson River (25%) . . . . . . . . Oil/Natural Gas 300
Nine Mile Point Unit 1, Lake Ontario (100%) Nuclear 613
Nine Mile Point Unit 2, Lake Ontario (41%). Nuclear 469
</TABLE>
As of December 31, 1999, Niagara Mohawk's electric transmission and
distribution systems were composed of:
- 952 substations with a rated transformer capacity of approximately
28,500,000 kilovoltamperes
- approximately 8,000 circuit miles of overhead transmission lines
- approximately 1,100 cable miles of underground transmission lines
- approximately 113,100 conductor miles of overhead distribution lines
- about 5,800 cable miles of underground distribution cables
Only a part of Niagara Mohawk's transmission and distribution lines are
located on property owned by Niagara Mohawk.
Holdings unregulated subsidiary, Opinac North America, Inc., through its
subsidiary Opinac Energy Corporation, owns a 50 percent interest in CNP,
Ltd. (owner and operator of the 76.8 MW Rankine hydroelectric plant) which
distributes electric power within the province of Ontario.
The electric system of Niagara Mohawk and CNP, Inc. is directly
interconnected with other electric utility systems in Ontario, Quebec,
New York, Massachusetts, Vermont and Pennsylvania, and indirectly
interconnected with most of the electric utility systems through the Eastern
Interconnection of the United States.
Niagara Mohawk distributes gas purchased from suppliers and transports gas
owned by others. As of December 31, 1999, Niagara Mohawk's natural gas
delivery system was comprised of 11,975 miles of pipelines and mains. Only
a part of these natural gas pipelines and main are located on property owned
by Niagara Mohawk.
3. THE FOLLOWING INFORMATION IS 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.
<TABLE>
<CAPTION>
Company Kwh Revenues
- ------------------------------------- --------------- ---------------
<S> <C> <C>
Niagara Mohawk . . . . . . . . . . 35,422,255,000 $3,091,016,000
CNP, Ltd. (in Ontario Province). . 827,667,000 (1) $30,245,598 (2)
Natural Gas (Mcf.)
------------------
Niagara Mohawk (in New York State) 66,909,000 $ 500,217,000
(1) Includes sales to Niagara Mohawk of 206,590,000 Kwh, $4,588,016 and
sales to Niagara Mohawk Energy Marketing, Inc. of 222,064,000 kwh,
$6,033,113
(2) Converted to U.S. dollars at average exchange rate for the year
</TABLE>
(b) Number of kwh of electric energy and Mcf. of natural or manufactured
gas distributed at retail outside the state in which each such company
is organized.
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.
<TABLE>
<CAPTION>
Company Kwh Revenues
- ------------------------------------------------------- ----------- -----------
<S> <C> <C>
Niagara Mohawk (at the state line). . . . . . . . . . . 277,080,647 $10,193,246
At the International boundary line
between United States and Canada:
By Niagara Mohawk . . . . . . . . . . . . . . . . . . . 137,848,000 $ 4,328,211
By CNP, Ltd. to Niagara Mohawk. . . . . . . . . . . . . 206,590,000 $ 4,588,016
By CNP, Ltd. to Niagara Mohawk Energy Marketing, Inc. . 222,064,000 $ 6,033,113
By CNP, Ltd. to U.S. third parties. . . . . . . . . . . 112,860,000 $ 3,652,791
Natural Gas (Mcf.)
------------------
Niagara Mohawk (outside the
state or at the state line) . . . . . . . . . . . . . . 1,789,135 $ 4,276,661
</TABLE>
(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.
<TABLE>
<CAPTION>
Company Kwh Cost
- ------------------------------------------------- ------------- ------------
<S> <C> <C>
Niagara Mohawk (at the state line). . . . . . . 1,194,457,000 $ 31,895,844
At the International boundary line
between United States and Canada:
From CNP, Ltd.. . . . . . . . . . . . . . . . . . 206,590,000 $ 4,588,016
From Hydro-Quebec . . . . . . . . . . . . . . . . 253,601,000 $ 7,054,907
From Ontario Power Generation . . . . . . . . . . 222,481,000 $ 9,302,339
From Cornwall Electric Company. . . . . . . . . . 8,386,000 $ 164,180
From TransCanada Power Marketing, Inc.. . . . . . 60,000 $ 2,400
From Hydro-Quebec Energy Services . . . . . . . . 2,200,000 $ 48,400
CNP:
- ---
By CNP, Ltd. from Niagara Mohawk. . . . . . . . . 61,204,000 $ 1,990,797
By CNP, Ltd. from Niagara Mohawk
Energy Marketing, Inc. . . . . . . . . . . . . . 53,636,000 $ 1,441,548
By CNP, Ltd. from U.S. third parties. . . . . . . 72,772,000 $ 2,240,921
Natural Gas (Mcf.) Cost
------------------- ------------
Niagara Mohawk (at the state line). . . . . . . . 56,589,581 $123,279,633
At the International boundary line
between United States and Canada:
From Western Gas Marketing, Ltd.. . . . . . . . 19,641,979 $ 38,043,687
From CoGen Energy Tech LP . . . . . . . . . . . 5,700 $ 33,592
</TABLE>
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.
As of December 31, 1998, Niagara Mohawk, Opinac Energy Corporation and
CNP Ltd. each owned a direct or an indirect interest in a wind power
generating facility at Cowley Ridge in the province of Alberta, Canada,
with a capacity of approximately 18.9 megawatts (the "Facility") located
at Cowley Ridge, Pincher Creek, Alberta, Canada.
On July 1, 1999, the joint venture between Canadian Niagara Wind Power
Company, Inc. ("Wind Power Company") and Cowley Ridge Partnership
("Cowley Partnership") was sold to a third party. The Cowley
Partnership sold its one percent interest in the Cowley Ridge joint
venture to the Wind Power Company and the Wind Power Company was sold to
a third party. CNP Ltd., CNP, Inc., Niagara Mohawk, Holdings and Opinac
Energy Corporation no longer have either a direct or indirect interest
in the joint venture which held the title of the wind power facility at
Cowley Ridge.
(b) Name of each system company that holds an interest in such EWG or
foreign utility company and description of the interest held.
None
(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.
None
(d) Capitalization and earnings of the EWG or foreign utility company during
the reporting period.
None
(e) Identify any services, 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
<PAGE>
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
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 the claimant and subsidiary companies as of the close of such
calendar year.
Following are Niagara Mohawk Holdings, Inc. consolidating balance sheets at
December 31, 1999 and consolidating statement of income and retained earnings
for the year ended December 31, 1999. Notes to the Niagara Mohawk Holdings,
Inc. financial statements are incorporated herein by reference to its Annual
Report on Form 10-K for 1999, File No. 0-25595 to be filed by March 30, 2000.
Consolidating balance sheets at December 31, 1999 and consolidating statements
of income and retained earnings for the year ended December 31, 1999 for Niagara
Mohawk Power Corporation (including subsidiaries owned indirectly by Niagara
Mohawk Holdings, Inc. through Niagara Mohawk Power Corporation's ownership in NM
Properties, Inc.) are also attached. Notes to Niagara Mohawk's financial
statements are incorporated herein by reference to its Annual Report on Form
10-K for 1999, File No. 0-25595 to be filed by March 30, 2000.
Consolidating balance sheets of Opinac NA (including subsidiaries owned
indirectly by Niagara Mohawk Holdings, Inc. through Opinac NA's ownership in
Opinac Energy Corporation and Niagara Mohawk Energy, Inc.) at December 31, 1999
and consolidating statements of income and retained earnings for the year ended
December 31, 1999 are also attached.
<PAGE>
S-1
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
EXHIBIT A
INDEX TO FINANCIAL STATEMENTS
Schedule No.
------------
Consolidating Balance Sheet of Holdings at December 31, 1999 S-2
Consolidating Statement of Income and Retained Earnings of
Holdings for the year ended December 31, 1999 S-4
Consolidating Balance Sheet of Niagara Mohawk at
December 31, 1999 S-5
Consolidating Statement of Income and Retained Earnings of
Niagara Mohawk for the year ended December 31, 1999 S-9
Consolidating Balance Sheet of NM Properties, Inc. at
December 31, 1999 S-11
Consolidating Statement of Income and Retained Earnings of
NM Properties, Inc. for the year ended December 31, 1999 S-13
Consolidating Balance Sheet of Opinac North America, Inc. at
December 31, 1999 S-15
Consolidating Statement of Income and Retained Earnings of
Opinac North America, Inc. for the year ended December 31, 1999 S-16
Consolidating Balance Sheet of Niagara Mohawk Energy, Inc.
at December 31, 1999 S-17
Consolidating Statement of Income and Retained Earnings of
Niagara Mohawk Energy, Inc. for the year ended December 31, 1999 S-18
Consolidating Balance Sheet of Opinac Energy Corporation at
December 31, 1999 S-19
Consolidating Statement of Income and Retained Earnings of
Opinac Energy Corporation for the year ended December 31, 1999 S-20
<PAGE>
S-2
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Niagara Niagara
Inter- Mohawk Mohawk Opinac
Company Holdings Power North
(Consolidated) Eliminations Inc. Corporation America Inc.
--------------- -------------- ---------- ------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS
- ------
UTILITY PLANT:
Electric plant. . . . . . . . . . . . . . . . $ 7,221,762 $ - $ - $ 7,221,762 $ -
Nuclear fuel. . . . . . . . . . . . . . . . . 630,321 - - 630,321 -
Gas plant . . . . . . . . . . . . . . . . . . 1,263,168 - - 1,263,168 -
Common plant. . . . . . . . . . . . . . . . . 364,718 - - 364,718 -
Construction work in progress . . . . . . . . 312,322 - - 312,322 -
--------------- -------------- ---------- ------------- --------------
TOTAL UTILITY PLANT . . . . . . . . . . . . . 9,792,291 - - 9,792,291 -
Less: Accumulated depreciation and
amortization . . . . . . . . . . . . . 3,904,049 - - 3,904,049 -
--------------- -------------- ---------- ------------- --------------
NET UTILITY PLANT . . . . . . . . . . . . . . 5,888,242 - - 5,888,242 -
--------------- -------------- ---------- ------------- --------------
OTHER PROPERTY AND INVESTMENTS:
Investment in subsidiary companies
- consolidated . . . . . . . . . . . . - (2,964,941) 2,964,941 - -
Investment. . . . . . . . . . . . . . . . . . 484,735 - - 349,718 135,017
--------------- -------------- ---------- ------------- --------------
484,735 (2,964,941) 2,964,941 349,718 135,017
--------------- -------------- ---------- ------------- --------------
CURRENT ASSETS:
Cash, including temporary cash investments
of $90,029. . . . . . . . . . . . . . . . 116,164 - 31,558 72,479 12,127
Accounts receivable . . . . . . . . . . . . . 434,910 (423) - 390,622 44,711
Less: Allowance for doubtful accounts . . (61,400) - - (59,400) (2,000)
Materials and supplies, at average cost:
Coal and oil for production of electricity 9,263 - - 9,263 -
Gas storage. . . . . . . . . . . . . . . . 39,166 - - 38,252 914
Other. . . . . . . . . . . . . . . . . . . 90,605 - - 90,605 -
Prepaid taxes . . . . . . . . . . . . . . . . 21,489 - - 21,489 -
Other . . . . . . . . . . . . . . . . . . . . 24,042 - - 22,668 1,374
--------------- -------------- ---------- ------------- --------------
674,239 (423) 31,558 585,978 57,126
--------------- -------------- ---------- ------------- --------------
REGULATORY ASSETS:
MRA regulatory asset. . . . . . . . . . . . . 3,686,019 - - 3,686,019 -
Swap contracts regulatory asset . . . . . . . 505,723 - - 505,723 -
Regulatory tax asset. . . . . . . . . . . . . 483,546 - - 483,546 -
Deferred loss on sale of assets . . . . . . . 135,229 - - 135,229 -
IPP buyout costs. . . . . . . . . . . . . . . 260,873 - - 260,873 -
Deferred environmental restoration costs. . . 240,000 - - 240,000 -
Unamortized debt expense. . . . . . . . . . . 44,903 - - 44,903 -
Postretirement benefits other than pensions . 48,937 - - 48,937 -
Other . . . . . . . . . . . . . . . . . . . . 112,556 - - 112,556 -
--------------- -------------- ---------- ------------- --------------
5,517,786 - - 5,517,786 -
--------------- -------------- ---------- ------------- --------------
OTHER ASSETS. . . . . . . . . . . . . . . . . . 105,433 - - 103,884 1,549
--------------- -------------- ---------- ------------- --------------
$ 12,670,435 $ (2,965,364) $2,996,499 $ 12,445,608 $ 193,692
=============== ============== ========== ============= ==============
</TABLE>
<PAGE>
S-3
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Niagara Niagara
Inter- Mohawk Mohawk Opinac
Company Holdings Power North
(Consolidated) Eliminations Inc. Corporation America Inc.
-------------- -------------- ----------- ------------ ---------------
<S> <C> <C> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common stockholders' equity:
Common stock - $0.01 par value; authorized
300,000,000 shares: outstanding
177,364,863 shares. . . . . . . . . . . $ 1,874 $ - $ 1,874 $ - $ -
Treasury Stock, at cost - 10,000,000 shares (157,167) 157,167 (157,167) (157,167) -
Capital stock premium and expense . . . . . 2,546,630 (2,544,304) 2,546,630 2,361,139) 183,165
Accumulated other comprehensive income. . . (26,200) 5,153 (5,153) (5,153) (21,047)
Capital stock in subsidiary companies . . . - (187,366) - 187,365 1
Retained earnings . . . . . . . . . . . . . 610,952 (395,591) 610,952 398,987 (3,396)
------------ ------------- ----------- ------------ ------------
2,976,089 (2,964,941) 2,997,136 2,785,171 158,723
Cumulative preferred stock - . . . . . . . . . - - - - -
$100 par value: Authorized 3,400,000
shares: issued 2,286,000:
Optionally redeemable . . . . . . . . . . . - (210,000) - 210,000 -
Mandatorily redeemable. . . . . . . . . . . - (16,800) - 16,800 -
Cumulative preferred stock -
$25 par value: authorized 19,600,000
shares: issued 8,215,602
Optionally redeemable . . . . . . . . . . . - (230,000) - 230,000 -
Mandatorily redeemable. . . . . . . . . . . - (44,570) - 44,570 -
Cumulative preference stock -
$25 par value: authorized 8,000,000
shares: issued none
Preferred stock of subsidiary
Not subject to mandatory redemption . . . . 440,000 440,000
Subject to mandatory redemption . . . . . . 61,370 61,370
Long-term debt . . . . . . . . . . . . . . . . 5,042,588 (347) - 5,042,588 347
----------- ------------- ----------- ------------ -----------
TOTAL CAPITALIZATION . . . . . . . . . . . . . 8,520,047 (2,965,288) 2,997,136 8,329,129 159,070
----------- ------------- ----------- ------------ -----------
CURRENT LIABILITIES:
Long-term debt due within one year . . . . . . 613,740 - - 613,740 -
Sinking fund requirements on redeemable
preferred stock of subsidiary . . . . . . . 7,620 - - 7,620 -
Accounts payable . . . . . . . . . . . . . . . 288,223 (76) 3,242 244,031 41,026
Payable on outstanding bank checks . . . . . . 22,067 - - 22,067 -
Customers' deposits. . . . . . . . . . . . . . 15,255 - - 15,255 -
Accrued taxes. . . . . . . . . . . . . . . . . 1,408 - (3,879) 6,246 (959)
Accrued interest . . . . . . . . . . . . . . . 67,593 - - 67,593 -
Accrued vacation pay . . . . . . . . . . . . . 35,334 - - 35,334 -
Other. . . . . . . . . . . . . . . . . . . . . 67,068 - - 66,160 908
------------ ------------- ----------- ------------ ------------
1,118,308 (76) (637) 1,078,046 40,975
------------ ------------- ----------- ------------ ------------
REGULATORY AND OTHER LIABILITIES:
Accumulated deferred income taxes. . . . . . . 1,568,957 - - 1,575,335 (6,378)
Employee pension and other benefits. . . . . . 226,223 - - 226,223 -
Unbilled gas revenues. . . . . . . . . . . . . 14,552 - - 14,552 -
Liability for swap contracts . . . . . . . . . 663,718 - - 663,718 -
Other. . . . . . . . . . . . . . . . . . . . . 318,630 - - 318,605 25
------------ ------------- ----------- ------------ ------------
2,792,080 - - 2,798,433 (6,353)
------------ ------------- ----------- ------------ ------------
COMMITMENTS AND CONTINGENCIES:
Liability for environmental restoration. . . . 240,000 - - 240,000 -
------------ ------------- ----------- ------------ ------------
$12,670,435 $ (2,965,364) $2,996,499 $12,445,608 $ 193,692
============ ============= =========== ============ ============
</TABLE>
<PAGE>
S-4
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Niagara Niagara
Inter- Mohawk Mohawk Opinac
Company Holdings Power North
Consolidated Eliminations Inc. Corporation America Inc.
-------------- -------------- --------- ------------- ---------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Electric . . . . . . . . . . . . . . . . . . . . $ 3,464,901 $ (799) $ - $ 3,247,757 $ 217,943
Gas. . . . . . . . . . . . . . . . . . . . . . . 611,226 - 579,583 31,643
Other. . . . . . . . . . . . . . . . . . . . . . 8,059 - - - 8,059
-------------- -------------- --------- ------------- ---------------
4,084,186 (799) - 3,827,340 257,645
-------------- -------------- --------- ------------- ---------------
OPERATING EXPENSES:
Electricity purchased. . . . . . . . . . . . . . 1,012,811 - - 807,038 205,773
Fuel for electric generation . . . . . . . . . . 189,657 - - 189,657 -
Gas purchased. . . . . . . . . . . . . . . . . . 297,641 - - 266,723 30,918
Other operation and maintenance expenses . . . . 910,871 (799) - 889,100 22,570
Amortization of MRA regulatory asset . . . . . . 386,499 - - 386,499 -
Depreciation and amortization. . . . . . . . . . 345,473 - - 344,930 543
Other taxes. . . . . . . . . . . . . . . . . . . 415,082 - 2,540 411,842 700
-------------- -------------- --------- ------------- ---------------
3,558,034 (799) 2,540 3,295,789 260,504
-------------- -------------- --------- ------------- ---------------
OPERATING INCOME (LOSS). . . . . . . . . . . . . . 526,152 - (2,540) 531,551 (2,859)
Other income (deductions). . . . . . . . . . . . . 3,795 35,202 (33,266) (5,682) 7,541
-------------- ------------- --------- ------------- ---------------
INCOME (LOSS) BEFORE INTEREST CHARGES. . . . . . . 529,947 35,202 (35,806) 525,869 4,682
Interest charges . . . . . . . . . . . . . . . . . 485,240 - - 485,240 -
Preferred dividend requirement of subsidiary . . . 36,808 36,808 - - -
-------------- ------------- --------- ------------- ---------------
INCOME (LOSS) BEFORE FEDERAL AND FOREIGN
INCOME TAXES . . . . . . . . . . . . . . . . . . 7,899 (1,606) (35,806) 40,629 4,682
Federal and foreign income taxes . . . . . . . . . 19,180 288 (718) 18,883 727
-------------- ------------- --------- ------------- ---------------
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM. . . . . . (11,281) (1,894) (35,088) 21,746 3,955
Extraordinary item - Loss from the extinguishment
of debt, net of income taxes of $12,819. . . . . (23,807) - - (23,807) -
-------------- ------------- --------- ------------- ---------------
NET INCOME (LOSS). . . . . . . . . . . . . . . . . (35,088) (1,894) (35,088) (2,061) 3,955
Dividends on preferred stocks. . . . . . . . . . . - (36,808) - 36,808 -
-------------- -------------- --------- ------------- ---------------
BALANCE AVAILABLE FOR COMMON STOCK . . . . . . . . (35,088) 34,914 (35,088) (38,869) 3,955
RETAINED EARNINGS -BEGINNING OF YEAR . . . . . . . - (638,689) - 646,040 (7,351)
TRANSFERRED FROM NIAGARA MOHAWK . . . . . . . . . 646,040 144,465 646,040 (144,465) -
DIVIDEND TO HOLDINGS . . . . . . . . . . . . . . - 63,719 - (63,719) -
-------------- -------------- --------- ------------- ---------------
RETAINED EARNINGS -END OF YEAR . . . . . . . . . . $ 610,952 $ (395,591) $610,952 $ 398,987 $ (3,396)
============== ============== ========= ============= ==============
</TABLE>
<PAGE>
S-5
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Niagara
Inter- Mohawk NM NM
Company Power Properties Receivables
(Consolidated) Eliminations Corporation Inc. Corp. II
--------------- -------------- ------------ ------------ ----------
<S> <C> <C> <C> <C> <C>
ASSETS
- -----
UTILITY PLANT:
Electric plant. . . . . . . . . . . . . . . . $ 7,221,762 $ - $ 7,221,762 $ - $ -
Nuclear fuel. . . . . . . . . . . . . . . . . 630,321 - 630,321 - -
Gas plant . . . . . . . . . . . . . . . . . . 1,263,168 - 1,263,168 - -
Common plant. . . . . . . . . . . . . . . . . 364,718 - 364,718 - -
Construction work in progress . . . . . . . . 312,322 - 312,322 - -
--------------- -------------- ------------ ------------ ----------
TOTAL UTILITY PLANT . . . . . . . . . . . . . 9,792,291 - 9,792,291 - -
Less: Accumulated depreciation and
amortization . . . . . . . . . . . . . 3,904,049 - 3,904,049 - -
--------------- -------------- ------------ ------------ ----------
NET UTILITY PLANT . . . . . . . . . . . . . . 5,888,242 - 5,888,242 - -
--------------- -------------- ------------ ------------ ----------
OTHER PROPERTY AND INVESTMENTS:
Investment in subsidiary companies
- consolidated . . . . . . . . . . . . - (301,585) 301,581 - 4
Investment. . . . . . . . . . . . . . . . . . 349,718 - 338,989 10,626 -
--------------- -------------- ------------ ------------ ----------
349,718 (301,585) 640,570 10,626 4
--------------- -------------- ------------ ------------ ----------
CURRENT ASSETS:
Cash, including temporary cash investments
of $58,276. . . . . . . . . . . . . . . . 72,479 - 69,741 2,244 20
Accounts receivable . . . . . . . . . . . . . 390,622 22,980 45,177 2,437 (3)
Less: Allowance for doubtful accounts . . (59,400) - - - -
Materials and supplies, at average costs:
Coal and oil for production of electricity 9,263 - 9,263 - -
Gas storage. . . . . . . . . . . . . . . . 38,252 - 38,252 - -
Other. . . . . . . . . . . . . . . . . . . 90,605 - 90,605 - -
Prepaid taxes . . . . . . . . . . . . . . . . 21,489 - 21,489 - -
Other . . . . . . . . . . . . . . . . . . . . 22,668 1,140 19,813 - -
--------------- -------------- ------------ ------------ ----------
585,978 24,120 294,340 4,681 17
--------------- -------------- ------------ ------------ ----------
REGULATORY ASSETS:
MRA regulatory asset. . . . . . . . . . . . . 3,686,019 - 3,686,019 - -
Swap contract regulatory asset. . . . . . . . 505,723 - 505,723 - -
Regulatory tax asset. . . . . . . . . . . . . 483,546 - 483,546 - -
Deferred loss on sale of assets . . . . . . . 135,229 - 135,229 - -
IPP buyout costs. . . . . . . . . . . . . . . 260,873 - 260,873 - -
Deferred environmental restoration costs. . . 240,000 - 240,000 - -
Unamortized debt expense. . . . . . . . . . . 44,903 - 44,903 - -
Postretirement benefits other than pensions . 48,937 - 48,937 - -
Other . . . . . . . . . . . . . . . . . . . . 112,556 - 112,556 - -
--------------- -------------- ------------ ------------ ----------
5,517,786 - 5,517,786 - -
--------------- -------------- ------------ ------------ ----------
OTHER ASSETS. . . . . . . . . . . . . . . . . . 103,884 - 103,884 - -
--------------- -------------- ------------ ------------ ----------
$ 12,445,608 $ (277,465) $ 12,444,822 $ 15,307 $ 21
=============== ============== ============ ============ ==========
</TABLE>
<PAGE>
S-6
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
NM NM
Receivables Uranium
LLC Inc.
----------- -----------
<S> <C> <C>
ASSETS
- ------
UTILITY PLANT:
Electric plant $ - $ -
Nuclear fuel - -
Gas plant - -
Common plant - -
Construction work in progress - -
--------- ---------
TOTAL UTILITY PLANT - -
Less: Accumulated depreciation and
amortization - -
--------- ---------
NET UTILITY PLANT - -
--------- ---------
OTHER PROPERTY AND INVESTMENTS:
Investment in subsidiary companies
- consolidated - -
Investment. . . . . . . . . . . . . . . . . . - 103
--------- ---------
- 103
--------- ---------
CURRENT ASSETS:
Cash, including temporary cash investments
of $58,276. . . . . . . . . . . . . . . . 377 97
Accounts receivable . . . . . . . . . . . . . 320,031 -
Less: Allowance for doubtful accounts . . (59,400) -
Materials and supplies, at average costs:
Coal and oil for production of electricity - -
Gas storage. . . . . . . . . . . . . . . . - -
Other. . . . . . . . . . . . . . . . . . . - -
Prepaid taxes . . . . . . . . . . . . . . . . - -
Other . . . . . . . . . . . . . . . . . . . . 1,715 -
--------- ---------
262,723 97
--------- ---------
REGULATORY ASSETS:
MRA regulatory asset. . . . . . . . . . . . . - -
Swap contract regulatory asset. . . . . . . . - -
Regulatory tax asset. . . . . . . . . . . . . - -
Deferred loss on sale of assets . . . . . . . - -
IPP buyout costs. . . . . . . . . . . . . . . - -
Deferred environmental restoration costs. . . - -
Unamortized debt expense. . . . . . . . . . . - -
Postretirement benefits other than pensions . - -
Other . . . . . . . . . . . . . . . . . . . . - -
--------- ---------
- -
--------- ---------
OTHER ASSETS. . . . . . . . . . . . . . . . . . - -
--------- ---------
$262,723 $ 200
========= =========
</TABLE>
<PAGE>
S-7
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Niagara
Inter- Mohawk NM NM
Company Power Properties Receivables
(Consolidated) Eliminations Corporation Inc. Corp II
-------------- -------------- ------------- ----------- ------------
<S> <C> <C> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
- ------------------------------
CAPITALIZATION:
Common stockholders' equity:
Common stock - $1 par value; authorized
250,000,000 shares: issued
187,364,863 shares . . . . . . . . . $ 187,365 $ - $ 187,365 $ - $ -
Repurchase of Holdings stock, at cost. . (157,167) - (157,167) - -
Capital stock premium and expense. . . . 2,361,139 (299,682) 2,361,139 13,796 3
Accumulated other comprehensive income . (5,153) - (5,153) - -
Capital stock in subsidiary companies. . - (25) - 3 2
Retained earnings. . . . . . . . . . . . 398,987 (1,878) 398,987 1,868 10
------------- ------------ ----------- ----------- ----------
2,785,171 (301,585) 2,785,171 15,667 15
Cumulative preferred stock -
$100 par value: Authorized 3,400,000
shares: issued 2,286,000:
Optionally redeemable. . . . . . . . . . 210,000 - 210,000 - -
Mandatorily redeemable . . . . . . . . . 16,800 - 16,800 - -
Cumulative preferred stock -
$25 par value: authorized 19,600,000
shares: issued 8,215,602
Optionally redeemable. . . . . . . . . . 230,000 - 230,000 - -
Mandatorily redeemable . . . . . . . . . 44,570 - 44,570 - -
Cumulative preference stock -
$25 par value: authorized 8,000,000
shares: issued none . . . . . . . . - - - - -
Long-term debt. . . . . . . . . . . . . . . 5,042,588 (34,297) 5,042,588 - -
------------- ------------ ----------- ----------- ----------
TOTAL CAPITALIZATION. . . . . . . . . . . . 8,329,129 (335,882) 8,329,129 15,667 15
------------- ------------ ----------- ----------- ----------
CURRENT LIABILITIES:
Long-term debt due within one year. . . . . 613,740 - 613,740 - -
Sinking fund requirements on redeemable
preferred stock. . . . . . . . . . . . . 7,620 - 7,620 - -
Accounts payable. . . . . . . . . . . . . . 244,031 58,417 243,764 (19) -
Payable on outstanding bank checks. . . . . 22,067 - 22,067 - -
Customers' deposits . . . . . . . . . . . . 15,255 - 15,255 - -
Accrued taxes . . . . . . . . . . . . . . . 6,246 - 6,240 - 6
Accrued interest. . . . . . . . . . . . . . 67,593 - 67,593 - -
Accrued vacation pay. . . . . . . . . . . . 35,334 - 35,334 - -
Other . . . . . . . . . . . . . . . . . . . 66,160 - 65,306 - -
------------- ------------ ----------- ----------- ----------
1,078,046 58,417 1,076,919 (19) 6
------------- ------------ ----------- ----------- ----------
REGULATORY AND OTHER LIABILITIES:
Accumulated deferred income taxes . . . . . 1,575,335 - 1,575,676 (341) -
Employee pension and other benefits . . . . 226,223 - 226,223 - -
Unbilled gas revenues . . . . . . . . . . . 14,552 - 14,552 - -
Liability for swap contracts. . . . . . . . 663,718 - 663,718 - -
Other . . . . . . . . . . . . . . . . . . . 318,605 - 318,605 - -
------------- ------------ ----------- ----------- ----------
2,798,433 - 2,798,774 (341) -
------------- ------------ ----------- ----------- ----------
COMMITMENTS AND CONTINGENCIES:
Liability for environmental restoration . . 240,000 - 240,000 - -
------------- ------------ ----------- ----------- ----------
$ 12,445,608 $ (277,465) $12,444,822 $ 15,307 $ 21
============= ============ ============ =========== ==========
</TABLE>
<PAGE>
S-8
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
NM NM
Receivables Uranium
LLC Inc.
----------- --------
<S> <C> <C>
CAPITALIZATION AND LIABILITIES
- ------------------------------
CAPITALIZATION:
Common stockholders' equity:
Common stock - $1 par value; authorized
250,000,000 shares: issued
187,364,863 shares . . . . . . . . . - -
Repurchase of Holdings stock, at cost. . - -
Capital stock premium and expense. . . . 285,797 86
Accumulated other comprehensive income . - -
Capital stock in subsidiary companies. . - 20
Retained earnings. . . . . . . . . . . . - -
----------- ---------
285,797 106
Cumulative preferred stock -
$100 par value: Authorized 3,400,000
shares: issued 2,286,000:
Optionally redeemable. . . . . . . . . . - -
Mandatorily redeemable . . . . . . . . . - -
Cumulative preferred stock -
$25 par value: authorized 19,600,000
shares: issued 8,215,602
Optionally redeemable. . . . . . . . . . - -
Mandatorily redeemable . . . . . . . . . - -
Cumulative preference stock -
$25 par value: authorized 8,000,000
shares: issued none . . . . . . . . - -
Long-term debt. . . . . . . . . . . . . . . 34,297 -
----------- ---------
TOTAL CAPITALIZATION. . . . . . . . . . . . 320,094 106
----------- ---------
CURRENT LIABILITIES:
Long-term debt due within one year. . . . . - -
Sinking fund requirements on redeemable
preferred stock. . . . . . . . . . . . . - -
Accounts payable. . . . . . . . . . . . . . (58,225) 94
Payable on outstanding bank checks. . . . . - -
Customers' deposits . . . . . . . . . . . . - -
Accrued taxes . . . . . . . . . . . . . . . - -
Accrued interest. . . . . . . . . . . . . . - -
Accrued vacation pay. . . . . . . . . . . . - -
Other . . . . . . . . . . . . . . . . . . . 854 -
----------- ---------
(57,371) 94
----------- ---------
REGULATORY AND OTHER LIABILITIES:
Accumulated deferred income taxes . . . . . - -
Employee pension and other benefits . . . . - -
Unbilled gas revenues . . . . . . . . . . . - -
Liability for swap contracts. . . . . . . . - -
Other . . . . . . . . . . . . . . . . . . . - -
----------- ---------
- -
----------- ---------
COMMITMENTS AND CONTINGENCIES:
Liability for environmental restoration . . - -
----------- ---------
$ 262,723 $ 200
=========== =========
</TABLE>
<PAGE>
S-9
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Niagara
Inter- Mohawk NM NM
Company Power Properties Receivables
Consolidated Eliminations Corporation Inc. Corp. II
-------------- -------------- ------------- ------------- ----------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Electric . . . . . . . . . . . . . . . . . . . . $ 3,247,757 $ - $ 3,247,757 $ - $ -
Gas. . . . . . . . . . . . . . . . . . . . . . . 579,583 - 579,583 - -
-------------- -------------- ------------- ------------- ----------
3,827,340 - 3,827,340 - -
-------------- -------------- ------------- ------------- ----------
OPERATING EXPENSES:
Electricity purchased. . . . . . . . . . . . . . 807,038 - 807,038 - -
Fuel for electric generation . . . . . . . . . . 189,657 - 189,657 - -
Gas purchased. . . . . . . . . . . . . . . . . . 266,723 - 266,723 - -
Other operation and maintenance expenses . . . . 889,100 (20) 878,644 - 8
Amortization of MRA regulatory asset . . . . . . 386,499 - 386,499 - -
Depreciation and amortization. . . . . . . . . . 344,930 - 344,930 - -
Other taxes. . . . . . . . . . . . . . . . . . . 411,842 - 411,841 - 1
-------------- -------------- ------------- ------------- ----------
3,295,789 (20) 3,285,332 - 9
-------------- -------------- ------------- ------------- ----------
OPERATING INCOME (LOSS). . . . . . . . . . . . . . 531,551 20 542,008 - (9)
Other income (deductions). . . . . . . . . . . . . (5,682) 9,712 (16,426) 961 20
-------------- -------------- ------------- ------------- ----------
INCOME (LOSS) BEFORE INTEREST CHARGES. . . . . . . 525,869 9,732 525,582 961 11
Interest charges . . . . . . . . . . . . . . . . . 485,240 (9,724) 485,240 - -
-------------- -------------- ------------- ------------- ----------
INCOME (LOSS) BEFORE FEDERAL AND FOREIGN
INCOME TAXES . . . . . . . . . . . . . . . . . . 40,629 19,456 40,342 961 11
Federal and foreign income taxes . . . . . . . . . 18,883 - 18,596 283 4
-------------- -------------- ------------- ------------- ----------
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM. . . . . . 21,746 19,456 21,746 678 7
Extraordinary item - Loss from the extinguishment
of debt, net of income taxes of $12,819. . . . . (23,807) - (23,807) - -
-------------- -------------- ------------- ------------- ----------
NET INCOME (LOSS). . . . . . . . . . . . . . . . . (2,061) 19,456 (2,061) 678 7
Dividends on preferred stocks. . . . . . . . . . . 36,808 - 36,808 - -
-------------- -------------- ------------- ------------- ----------
BALANCE AVAILABLE FOR COMMON STOCK . . . . . . . . (38,869) 19,456 (38,869) 678 7
RETAINED EARNINGS -BEGINNING OF YEAR . . . . . . . 646,040 (1,193)(A) 646,040 1,190 3
DIVIDEND OF OPINAC NA TO HOLDINGS. . . . . . . . . (144,465)(B) - (144,465) - -
DIVIDEND TO HOLDINGS . . . . . . . . . . . . . . . (63,719) - (63,719) - -
PARTNERSHIP IN NM RECEIVABLES. . . . . . . . . . . - (20,141) - - -
-------------- -------------- ------------- ------------- ----------
RETAINED EARNINGS -END OF YEAR . . . . . . . . . . $ 398,987 $ (1,878) $ 398,987 $ 1,868 $ 10
============== ============== ============= ============= ==========
</TABLE>
(A) Beginning retained earnings has been adjusted to remove the balances of
Moreau Manufacturing and Beebee Island which were sold in 1999 and Opinac
North America, Inc. that was transferred to Niagara Mohawk Holdings, Inc.
on March 31, 1999 as a result of the reorganization into a holding company
structure.
(B) Represents the transfer of Opinac North America, Inc. to Niagara Mohawk
Holdings, Inc. on March 31, 1999.
<PAGE>
S-10
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
NM NM
Receivables Uranium
LLC. Inc.
---------- ----------
<S> <C> <C>
OPERATING REVENUES:
Electric $ - $ -
Gas - -
--------- ---------
- -
--------- ---------
OPERATING EXPENSES:
Electricity purchased - -
Fuel for electric generation - -
Gas purchased - -
Other operation and maintenance expenses . . . . 10,468 -
Amortization of MRA regulatory asset . . . . . . - -
Depreciation and amortization. . . . . . . . . . - -
Other taxes. . . . . . . . . . . . . . . . . . . - -
--------- ---------
10,468 -
--------- ---------
OPERATING INCOME (LOSS). . . . . . . . . . . . . . (10,468) -
Other income (deductions). . . . . . . . . . . . . 51 -
--------- ---------
INCOME (LOSS) BEFORE INTEREST CHARGES. . . . . . . (10,417) -
Interest charges . . . . . . . . . . . . . . . . . 9,724 -
--------- ---------
INCOME (LOSS) BEFORE FEDERAL AND FOREIGN
INCOME TAXES . . . . . . . . . . . . . . . . . . (20,141) -
Federal and foreign income taxes . . . . . . . . . - -
--------- ---------
INCOME (LOSS) BEFORE EXTRAORDINARY ITEM. . . . . . (20,141) -
Extraordinary item - Loss from the extinguishment
of debt, net of income taxes of $12,819. . . . . - -
--------- ---------
NET INCOME (LOSS). . . . . . . . . . . . . . . . . (20,141) -
Dividends on preferred stocks. . . . . . . . . . . - -
--------- ---------
BALANCE AVAILABLE FOR COMMON STOCK . . . . . . . . (20,141) -
RETAINED EARNINGS -BEGINNING OF YEAR . . . . . . . - -
DIVIDEND OF OPINAC NA TO HOLDINGS. . . . . . . . . - -
DIVIDEND TO HOLDINGS . . . . . . . . . . . . . . . - -
PARTNERSHIP IN NM RECEIVABLES. . . . . . . . . . . 20,141 -
--------- ---------
RETAINED EARNINGS-END OF YEAR . . . . . . . . . . $ - $ -
========= =========
</TABLE>
<PAGE>
S-11
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NM PROPERTIES, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Inter- City &
Reported Consolidated Company Country Landwest Oprop Co.
Total Reclasses Total Eliminations Realty Inc. Inc. Inc.
---------- -------------- --------- -------------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
Cash. . . . . . . . . . . . . . . $ 2,244 $ - $ 2,244 $ - $ 3 $ 93 $ 192
Receivables . . . . . . . . . . . 2,437 - 2,437 - - 815 31
Due from affiliates . . . . . . . - - - (1,355) - - -
Investment in subsidiaries. . . . - (410) 410 (13,650) - - -
Investment in development project 10,626 411 10,215 - - (212) 5,904
Deferred federal income taxes . . - (341) 341 - - 205 63
Organization costs. . . . . . . . - (1) 1 - - - -
---------- -------------- --------- -------------- ------------- ----------- -------
TOTAL ASSETS. . . . . . . . . . . $ 15,307 $ (341) $ 15,648 $ (15,005) $ 3 $ 901 $6,190
========== ============== ========= ============== ============= =========== =======
LIABILITIES &
CAPITALIZATION
- --------------
Accounts payable. . . . . . . . . $ (19) $ (75) $ 56 $ - $ 1 $ 2 $ 8
Purchase deposits held. . . . . . - (85) 85 - - - -
Accrued NY franchise tax. . . . . - (32) 32 - - 8 -
Due to parent . . . . . . . . . . - 192 (192) (1,355) (1) 3 (46)
Deferred federal income taxes . . (341) (341) - - - - -
---------- -------------- --------- -------------- ------------- ----------- -------
(360) (341) (19) (1,355) - 13 (38)
---------- -------------- --------- -------------- ------------- ----------- -------
SHAREHOLDER EQUITY:
Common stock . . . . . . . . . 3 - 3 (4) - - 1
Paid in capital. . . . . . . . 13,796 - 13,796 (11,983) 5 638 6,823
Retained earnings. . . . . . . 1,868 - 1,868 (1,663) (2) 250 (596)
---------- -------------- --------- -------------- ------------- ----------- -------
15,667 - 15,667 (13,650) 3 888 6,228
---------- -------------- --------- -------------- ------------- ----------- -------
TOTAL LIABILITIES
AND EQUITY. . . . . . . . . . . . $ 15,307 $ (341) $ 15,648 $ (15,005) $ 3 $ 901 $6,190
========== ============== ========= ============== ============= =========== =======
</TABLE>
<PAGE>
S-12
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NM PROPERTIES, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Land Mgmt. & Upper Hudson Hudson Moreau Salmon NM
Development Development Pointe Riverview Park Shores Properties
Inc. Inc. Inc. Inc. Inc. Inc. Inc.
------------- -------------- ------- ----------- -------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
Cash. . . . . . . . . . . . . . . $ 836 $ 276 $ 160 $ 165 $ 57 $ 5 $ 457
Receivables . . . . . . . . . . . 1,452 40 13 12 54 - 20
Due from affiliates . . . . . . . - - - - - - 1,355
Investment in subsidiaries. . . . 410 - - - - - 13,650
Investment in development project 1,936 1,114 183 271 700 319 -
Deferred federal income taxes . . - 73 - - - - -
Organization costs. . . . . . . . 1 - - - - - -
------------- -------------- ------- ----------- -------- -------- ------------
TOTAL ASSETS. . . . . . . . . . . $ 4,635 $ 1,503 $ 356 $ 448 $ 811 $ 324 $ 15,482
============= ============== ======= =========== ======== ======== ============
LIABILITIES &
CAPITALIZATION
- --------------
Accounts payable. . . . . . . . . $ 25 $ 7 $ 1 $ 1 $ 4 $ - $ 7
Purchase deposits held. . . . . . 79 - - 6 - - -
Accrued NY franchise tax. . . . . 39 (8) 2 (2) (7) - -
Due to parent . . . . . . . . . . 992 13 35 44 33 283 (193)
Deferred federal income taxes . . - - - - - - -
------------- -------------- ------- ----------- -------- -------- ------------
1,135 12 38 49 30 283 (186)
------------- -------------- ------- ----------- -------- -------- ------------
SHAREHOLDER EQUITY:
Common stock . . . . . . . . . 1 1 - 1 - - 3
Paid in capital. . . . . . . . 2,351 999 210 181 674 101 13,797
Retained earnings. . . . . . . 1,148 491 108 217 107 (60) 1,868
------------- -------------- ------- ----------- -------- -------- ------------
3,500 1,491 318 399 781 41 15,668
------------- -------------- ------- ----------- -------- -------- ------------
TOTAL LIABILITIES & EQUITY. . . . $ 4,635 $ 1,503 $ 356 $ 448 $ 811 $ 324 $ 15,482
============= ============== ======= =========== ======== ======== ============
</TABLE>
<PAGE>
S-13
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NM PROPERTIES, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE ENDED DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Inter- City &
Reported Consolidated Company Country Landwest Oprop Co.
Total Reclasses Total Eliminations Realty Inc. Inc. Inc.
--------- -------------- --------- -------------- ------------- ----------- ----------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Property sales. . . . . . . $ - $ (2,143) $ 2,143 $ - $ - $ 208 $ 235
Sales of timber . . . . . . - (875) 875 - - - -
Rent and other income . . . - (25) 25 - - 10 -
--------- -------------- --------- -------------- ------------- ----------- ------
- (3,043) 3,043 - - 218 235
--------- -------------- --------- -------------- ------------- ----------- ------
OPERATING EXPENSES:
Cost of property sold . . . - (1,269) 1,269 - - 129 384
Logging operations expense. - (17) 17 - - - -
Accounting. . . . . . . . . - (44) 44 - 1 4 4
Legal . . . . . . . . . . . - (15) 15 - - 3 -
Insurance . . . . . . . . . - (26) 26 - - 2 2
Building maintenance. . . . - (80) 80 - - 6 -
Advertising and promotion . - (24) 24 - - - 1
Management. . . . . . . . . - (222) 222 - - 3 13
NYS franchise tax . . . . . - (143) 143 - 1 6 12
Amortization of org. costs. - (12) 12 - - - -
Consulting fees . . . . . . - (152) 152 - - 6 14
Property taxes. . . . . . . - (319) 319 - - 9 1
Other (net) . . . . . . . . - (1) 1 - - - -
--------- -------------- --------- -------------- ------------- ----------- ------
- (2,324) 2,324 - 2 168 431
--------- -------------- --------- -------------- ------------- ----------- ------
OPERATING INCOME (LOSS). . . . . - (719) 719 - (2) 50 (196)
Other income . . . . . . . . . . 961 961 - - - - -
Interest income. . . . . . . . . - (270) 270 - - 77 1
Equity in subs earnings. . . . . - 28 (28) (731) - (17) -
--------- -------------- --------- -------------- ------------- ----------- ------
INCOME (LOSS) BEFORE TAXES . . . 961 - 961 (731) (2) 110 (195)
Federal income tax . . . . . . . 283 - 283 - - 3 (68)
--------- -------------- --------- -------------- ------------- ----------- ------
NET INCOME (LOSS). . . . . . . . 678 - 678 (731) (2) 107 (127)
RETAINED EARNINGS -
BEGINNING OF YEAR. . . . . . . . 1,190 - 1,190 (932) - 143 (469)
--------- -------------- --------- -------------- ------------- ----------- ------
RETAINED EARNINGS -
END OF YEAR. . . . . . . . . . . $ 1,868 $ - $ 1,868 $ (1,663) $ (2) $ 250 $(596)
========= ============== ========= ============== ============= =========== ======
</TABLE>
<PAGE>
S-14
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NM PROPERTIES, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE ENDED DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Land Mgmt . & Upper Hudson Hudson Moreau Salmon NM
Development Development Pointe Riverview Park Shores Properties
Inc. Inc. Inc. Inc. Inc. Inc. Inc.
--------------- ------------- ------- ---------- -------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Property sales. . . . . . . $ 1,032 $ 215 $ 208 $ 245 $ - $ - $ -
Sales of timber . . . . . . 815 60 - - - - -
Rent and other income . . . 15 - - - - - -
--------------- ------------- ------- ---------- -------- -------- ------------
1,862 275 208 245 - - -
--------------- ------------- ------- ---------- -------- -------- ------------
OPERATING EXPENSES:
Cost of property sold . . . 402 148 97 109 - - -
Logging operations expense. 14 3 - - - - -
Accounting. . . . . . . . . 6 4 4 4 4 4 9
Legal . . . . . . . . . . . 11 - - - - - 1
Insurance . . . . . . . . . 13 2 2 2 2 2 (1)
Building maintenance. . . . 74 - - - - - -
Advertising and promotion . 21 - - - - - 2
Management. . . . . . . . . 149 18 - 1 2 5 31
NYS franchise tax . . . . . 84 9 3 12 1 1 14
Amortization of org. costs. 1 1 1 - 1 1 7
Consulting fees . . . . . . 71 1 - 1 - - 59
Property taxes. . . . . . . 268 20 9 4 8 - -
Other (net) . . . . . . . . - - - - - - 1
--------------- ------------- ------- ---------- -------- -------- ------------
1,114 206 116 133 18 13 123
--------------- ------------- ------- ---------- -------- -------- ------------
OPERATING INCOME (LOSS) . . . 748 69 92 112 (18) (13) (123)
Other income. . . . . . . . . - - - - - - -
Interest income . . . . . . . 102 17 12 13 3 4 41
Equity in subs earnings . . . (4) - - - - (7) 731
--------------- ------------- ------- ---------- -------- -------- ------------
INCOME (LOSS) BEFORE TAXES. . 846 86 104 125 (15) (16) 649
Federal income tax. . . . . . 296 12 36 44 (5) (6) (29)
--------------- ------------- ------- ---------- -------- -------- ------------
NET INCOME (LOSS) . . . . . . 550 74 68 81 (10) (10) 678
RETAINED EARNINGS -
BEGINNING OF YEAR . . . . . . 598 417 40 136 117 (50) 1,190
--------------- ------------- -------- ----------- -------- -------- ------------
RETAINED EARNINGS -
END OF YEAR . . . . . . . . . $ 1,148 $ 491 $ 108 $ 217 $ 107 $ (60) $ 1,868
=============== ============== ======== =========== ======== ======== ============
</TABLE>
<PAGE>
S-15
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
OPINAC NORTH AMERICA, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Inter- Opinac Opinac
Reported Company North NM Energy
Total Eliminations America Inc. Energy Corporation
---------- -------------- -------------- --------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS
- ------
OTHER PROPERTY AND INVESTMENTS:
Other investments . . . . . . . . . . . $ 135,017 $ - $ 30,000 $ 12,647 $ 92,370
Investments - subsidiaries. . . . . . . - (149,846) 149,846
---------- -------------- -------------- --------- -------------
135,017 (149,846) 179,846 12,647 92,370
---------- -------------- -------------- --------- -------------
CURRENT ASSETS:
Cash & temporary investments. . . . . . 12,127 (3) 11,638 492
Accounts receivable . . . . . . . . . . 44,711 (188) 188 42,898 1,813
Less: Allowance for doubtful accounts (2,000) (2,000)
Gas stored underground. . . . . . . . . 914 914
Other . . . . . . . . . . . . . . . . . 1,374 1,374 -
---------- -------------- -------------- --------- -------------
57,126 (188) 185 54,824 2,305
---------- -------------- -------------- --------- -------------
OTHER ASSETS. . . . . . . . . . . . . . . 1,549 1,549 -
---------- -------------- -------------- --------- -------------
TOTAL ASSETS . . . . . . . . . . . . . . $ 193,692 $ (150,034) $ 180,031 $ 69,020 $ 94,675
========== ============== ============== ========= =============
CAPITALIZATION
AND LIABILITIES
- ---------------
Common stock. . . . . . . . . . . . . . $ 1 $ (7,433) $ 1 $ - $ 7,433
Paid in surplus . . . . . . . . . . . . 183,165 (76,336) 183,165 55,000 21,336
Retained earnings . . . . . . . . . . . (3,396) (61,520) (3,396) (21,835) 83,355
Translation adjustment/Accumulated
other comprehensive income. . . . . . (21,047) (4,557) - - (16,490)
---------- -------------- -------------- --------- -------------
158,723 (149,846) 179,770 33,165 95,634
---------- -------------- -------------- --------- -------------
Long-term debt. . . . . . . . . . . . . 347 - 347 - -
---------- -------------- -------------- --------- -------------
CURRENT LIABILITIES:
Accounts payable. . . . . . . . . . . . 41,026 (188) 5 41,166 43
Accrued taxes . . . . . . . . . . . . . (959) - (91) - (868)
Other . . . . . . . . . . . . . . . . . 908 - - 908 -
---------- -------------- -------------- --------- -------------
40,975 (188) (86) 42,074 (825)
---------- -------------- -------------- --------- -------------
Accumulated deferred income taxes . . . (6,378) - - (6,244) (134)
Other . . . . . . . . . . . . . . . . . 25 - - 25 -
---------- -------------- -------------- --------- -------------
(6,353) - - (6,219) (134)
---------- -------------- -------------- --------- -------------
TOTAL CAPITALIZATION
& LIABILITIES. . . . . . . . . . . . . $ 193,692 $ (150,034) $ 180,031 $ 69,020 $ 94,675
========== ============== ============== ========= =============
</TABLE>
<PAGE>
S-16
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
OPINAC NORTH AMERICA, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Inter- Opinac Opinac
Reported Company North NM Energy
Total Eliminations America Inc. Energy Corporation
---------- -------------- -------------- --------- -------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Electric. . . . . . . . . . . . . . . . . $ 217,943 $ - $ - $217,943 $ -
Gas . . . . . . . . . . . . . . . . . . . 31,643 - - 31,643 -
Other . . . . . . . . . . . . . . . . . . 8,059 - - 8,059 -
---------- -------------- -------------- --------- -------------
257,645 - - 257,645 -
---------- -------------- -------------- --------- -------------
OPERATING EXPENSES:
Electricity purchased . . . . . . . . . . 205,773 - - 205,773 -
Gas purchased . . . . . . . . . . . . . . 30,918 - - 30,918 -
Other operation and maintenance expenses. 22,570 - - 22,570 -
Depreciation and amortization . . . . . . 543 - - 543 -
Other taxes . . . . . . . . . . . . . . . 700 - 26 674 -
---------- -------------- -------------- --------- -------------
260,504 - 26 260,478 -
---------- -------------- -------------- --------- -------------
OPERATING LOSS. . . . . . . . . . . . . . . (2,859) - (26) (2,833) -
Income taxes. . . . . . . . . . . . . . . - 818 - 656 (1,474)
Subsidiary earnings . . . . . . . . . . . - (4,255) 4,255 - -
Other income (deductions) . . . . . . . . 7,541 - (365) 1,782 6,124
---------- -------------- -------------- --------- -------------
INCOME (LOSS) BEFORE FEDERAL AND FOREIGN
INCOME TAXES. . . . . . . . . . . . . . . 4,682 (3,437) 3,864 (395) 4,650
Federal and foreign income taxes. . . . . 727 818 (91) - -
---------- -------------- -------------- --------- -------------
NET INCOME (LOSS) . . . . . . . . . . . . . 3,955 (4,255) 3,955 (395) 4,650
RETAINED EARNINGS, BEGINNING OF YEAR. . . . (7,351) (57,265) (7,351) (21,440) 78,705
Dividends paid. . . . . . . . . . . . . . - - - - -
---------- -------------- -------------- --------- -------------
RETAINED EARNINGS, END OF YEAR. . . . . . . $ (3,396) $ (61,520) $ (3,396) $(21,835) $ 83,355
========== ============== ============== ========= =============
</TABLE>
<PAGE>
S-17
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NIAGARA MOHAWK ENERGY, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Inter- Niagara Mohawk
Reported Consolidated Company NM Energy
Total Reclasses Total Eliminations Energy Marketing Inc.
---------- ------------- ------------ -------------- --------- ---------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
OTHER PROPERTY AND INVESTMENTS:
Other investments. . . . . . . . . . . . $ 12,647 $ - $ 12,647 $ - $ 12,620 $ -
Investments - subsidiaries . . . . . . . - - - 11,235 (11,235) -
---------- ----------- ---------- ----------- --------- --------------
12,647 - 12,647 11,235 1,385 -
---------- ----------- ---------- ----------- --------- --------------
CURRENT ASSETS
Cash & temporary investments . . . . . . 11,638 - 11,638 - 6,174 5,191
Accounts receivable. . . . . . . . . . . 42,898 - 42,898 (22,444) 26,305 39,022
Less: Allowance for doubtful accounts (2,000) - (2,000) - (813) (1,187)
Gas stored underground . . . . . . . . . 914 - 914 - - 914
Other. . . . . . . . . . . . . . . . . . 1,374 - 1,374 - 640 734
---------- ----------- ---------- ----------- --------- --------------
54,824 - 54,824 (22,444) 32,306 44,674
---------- ----------- ---------- ----------- --------- --------------
OTHER ASSETS . . . . . . . . . . . . . . 1,549 - 1,549 - 622 916
---------- ----------- ---------- ----------- --------- --------------
TOTAL ASSETS . . . . . . . . . . . . . . $ 69,020 $ - $ 69,020 $ (11,209) $ 34,313 $ 45,590
========== =========== ========== =========== ========= =============
CAPITALIZATION
AND LIABILITIES
Common stock . . . . . . . . . . . . . . $ - $ - $ - $ (10) $ - $ 10
Paid in surplus. . . . . . . . . . . . . 55,000 - 55,000 (2,250) 55,000 -
Retained earnings. . . . . . . . . . . . (21,835) - (21,835) 13,470 (21,835) (11,488)
Minority interest. . . . . . . . . . . . - (25) 25 25 - -
---------- ----------- ---------- ----------- --------- --------------
33,165 (25) 33,190 11,235 33,165 (11,478)
---------- ----------- ---------- ----------- --------- --------------
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . . 41,166 - 41,166 (22,444) 2,245 61,365
Other. . . . . . . . . . . . . . . . . . 908 - 908 - 812 38
---------- ----------- ---------- ----------- --------- --------------
42,074 - 42,074 (22,444) 3,057 61,403
---------- ----------- ---------- ----------- --------- --------------
Accumulated deferred income taxes. . . . (6,244) - (6,244) - (1,909) (4,335)
Other. . . . . . . . . . . . . . . . . . 25 25 - - - -
---------- ------------- ---------- ----------- --------- --------------
(6,219) 25 (6,244) - (1,909) (4,335)
---------- ------------- ---------- ----------- --------- --------------
TOTAL CAPITALIZATION
& LIABILITIES . . . . . . . . . . . . $ 69,020 $ - $ 69,020 $ (11,209) $ 34,313 $ 45,590
========== ============= ========== =========== ========= =============
Niagara Mohawk Dolphin
Energy Investments
India Private International
Ltd. Inc.
-------------- -------------
<S> <C> <C>
ASSETS
- ------
OTHER PROPERTY AND INVESTMENTS:
Other investments. . . . . . . . . . . . $ 27 $ -
Investments - subsidiaries . . . . . . . - -
-------------- ----------
27 -
-------------- ----------
CURRENT ASSETS
Cash & temporary investments . . . . . . 5 268
Accounts receivable. . . . . . . . . . . 15 -
Less: Allowance for doubtful accounts - -
Gas stored underground . . . . . . . . . - -
Other. . . . . . . . . . . . . . . . . . - -
-------------- ----------
20 268
-------------- ----------
OTHER ASSETS . . . . . . . . . . . . . . 11 -
-------------- ----------
TOTAL ASSETS . . . . . . . . . . . . . . $ 58 $ 268
============== ==========
CAPITALIZATION
AND LIABILITIES
Common stock . . . . . . . . . . . . . . $ - $ -
Paid in surplus. . . . . . . . . . . . . 950 1,300
Retained earnings. . . . . . . . . . . . (950) (1,032)
Minority interest. . . . . . . . . . . . - -
-------------- ----------
- 268
-------------- ----------
CURRENT LIABILITIES:
Accounts payable . . . . . . . . . . . . - -
Other. . . . . . . . . . . . . . . . . . 58 -
-------------- ----------
58 -
-------------- ----------
Accumulated deferred income taxes. . . . - -
Other. . . . . . . . . . . . . . . . . . - -
-------------- ----------
- -
-------------- ----------
TOTAL CAPITALIZATION
& LIABILITIES . . . . . . . . . . . . $ 58 $ 268
============== ==========
</TABLE>
<PAGE>
S-18
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
NIAGARA MOHAWK ENERGY, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Inter- Niagara Mohawk
Reported Consolidated Company NM Energy
Total Reclasses Total Eliminations Energy Marketing Inc.
---------- ----------- ---------- -------------- ---------- ----------------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUE:
Electric. . . . . . . . . . . . . $ 217,943 $ 828 $ 217,115 $ - $ - $ 217,115
Gas . . . . . . . . . . . . . . . 31,643 - 31,643 - - 31,643
Energy services . . . . . . . . . 8,059 27 8,032 - 8,032 -
Consulting. . . . . . . . . . . . - (826) 826 - - 826
---------- ---------- ---------- ---------- ---------- -------------
257,645 29 257,616 - 8,032 249,584
---------- ---------- ---------- ---------- ---------- -------------
OPERATING EXPENSES:
Electricity purchased . . . . . . 205,773 205,773 205,773
Gas purchased . . . . . . . . . . 30,918 30,918 30,918
Other operation and
maintenance expenses. . . . . 22,570 32 22,538 - 12,561 9,985
Other taxes . . . . . . . . . . . 674 - 674 - 316 358
Depreciation and amortization . . 543 - 543 - 150 393
Minority interest . . . . . . . . - (7) 7 7 - -
---------- ---------- ---------- ---------- ---------- ------------
260,478 25 260,453 7 13,027 247,427
---------- ---------- ---------- ---------- ---------- ------------
OPERATING INCOME (LOSS). . . . . . . . (2,833) 4 (2,837) (7) (4,995) 2,157
OTHER INCOME AND DEDUCTIONS:
Income taxes. . . . . . . . . . . 656 95 561 - 1,379 (818)
Other income. . . . . . . . . . . 1,782 (699) 2,481 - 2,244 182
Other deductions. . . . . . . . . - (600) 600 - 583 (4)
Loss in affiliates. . . . . . . . - - - 1,560 (1,560) -
---------- ---------- ---------- ---------- ---------- ------------
NET INCOME (LOSS). . . . . . . . . . . (395) - (395) (1,567) (395) 1,525
Retained earnings - beginning of year. (21,440) - (21,440) 15,037 (21,440) (13,013)
---------- ---------- ---------- ---------- ---------- ------------
RETAINED EARNINGS - END OF YEAR. . . . $ (21,835) $ - $ (21,835) $ 13,470 $ (21,835) $ (11,488)
========== ========== ========== ========== ========== ============
Niagara Mohawk Dolphin
Energy Investments
India Private International
Ltd. Inc.
-------------- -------------
<S> <C> <C>
OPERATING REVENUE:
Electric. . . . . . . . . . . . . $ - $ -
Gas . . . . . . . . . . . . . . . - -
Energy services . . . . . . . . . - -
Consulting. . . . . . . . . . . . - -
------------- ----------
- -
------------- ----------
OPERATING EXPENSES:
Electricity purchased
Gas purchased
Other operation and
maintenance expenses. . . . . - (8)
Other taxes . . . . . . . . . . . - -
Depreciation and amortization . . - -
Minority interest . . . . . . . . - -
------------- ----------
- (8)
------------- ----------
OPERATING INCOME (LOSS). . . . . . . . - 8
OTHER INCOME AND DEDUCTIONS:
Income taxes. . . . . . . . . . . - -
Other income. . . . . . . . . . . - 55
Other deductions. . . . . . . . . 21 -
Loss in affiliates. . . . . . . . - -
------------- ----------
NET INCOME (LOSS). . . . . . . . . . . (21) 63
Retained earnings - beginning of year. (929) (1,095)
------------- ----------
RETAINED EARNINGS - END OF YEAR. . . . $ (950) $ (1,032)
============= ==========
</TABLE>
<PAGE>
S-19
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
OPINAC ENERGY CORPORATION
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Opinac Opinac
Energy Corp. Energy Corp. Opinac CNP Ltd. Inter-Company 1161557
Total Total Energy Consolidated Eliminations Ontario
US Dollar* Canadian Corporation Reclasses Total and Reclasses Limited
---------- ----------- ----------- ---------- ------------ ------------ ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
UTILITY PLANT (NET) . . . . . . . . $ - $ - $ - $ (47,002) $ 47,002 $ - $ 61
----------- ----------- ----------- ----------- ---------- ---------- ----------
OTHER PROPERTY AND INVESTMENTS:
Other investments . . . . . . . . . 92,370 133,406 120,466 12,940 - - -
Investments - subsidiaries. . . . . - - - - - (36,579) -
----------- ----------- ----------- ----------- ---------- ---------- ----------
92,370 133,406 120,466 12,940 - (36,579) -
----------- ----------- ----------- ----------- ---------- ---------- ----------
CURRENT ASSETS:
Cash & temporary investments. . . . 492 710 710 (4,775) 4,775 - 8
Accounts receivable . . . . . . . . 1,813 2,618 2,618 (5,708) 5,708 (3,966) 3
Inventory . . . . . . . . . . . . . - - - (887) 887 - -
----------- ----------- ----------- ----------- ---------- ---------- ----------
2,305 3,328 3,328 (11,370) 11,370 (3,966) 11
----------- ----------- ----------- ----------- ---------- ---------- ----------
Deferred pension costs. . . . . . . - - - (3,610) 3,610 - -
Other assets. . . . . . . . . . . . - - - (801) 801 - -
----------- ----------- ----------- ----------- ---------- ---------- ----------
- - - (4,411) 4,411 - -
----------- ----------- ----------- ----------- ---------- ---------- ----------
TOTAL ASSETS. . . . . . . . . . . . $ 94,675 $ 136,734 $ 123,794 $ (49,843) $ 62,783 $ (40,545) $ 72
=========== =========== =========== =========== ========== ========== =========
CAPITALIZATION
AND LIABILITIES
Common stock. . . . . . . . . . . . $ 7,433 $ 9,007 $ 9,007 $ - $ - $ (11,470) $ 70
Paid in surplus . . . . . . . . . . 21,336 24,264 24,264 (804) 804 - -
Retained earnings . . . . . . . . . 83,355 104,849 104,849 (25,879) 25,879 (288) (24)
Translation adjustment/Accumulated
other comprehensive income. . . . (16,490) - - - - - -
Minority interest . . . . . . . . . - - (12,940) 12,940 - - -
----------- ----------- ----------- ----------- ---------- ---------- ----------
95,634 138,120 125,180 (13,743) 26,683 (11,758) 46
----------- ----------- ----------- ----------- ---------- ---------- ----------
Long-term debt. . . . . . . . . . . - - - (19,200) 19,200 (24,821) -
----------- ----------- ----------- ----------- ---------- --------- ----------
Accounts payable. . . . . . . . . . 43 61 61 (8,724) 8,724 (3,966) 26
Income taxes payable. . . . . . . . (868) (1,253) (1,253) (2,509) 2,509 - -
Deferred taxes payable. . . . . . . - - - (855) 855 - -
----------- ----------- ----------- ----------- ---------- ---------- ----------
(825) (1,192) (1,192) (12,088) 12,088 (3,966) 26
----------- ----------- ----------- ----------- ---------- ---------- ----------
Accumulated deferred taxes. . . . . (134) (194) (194) - - - -
Deferred credits. . . . . . . . . . - - - (4,812) 4,812 - -
----------- ----------- ----------- ----------- ---------- ---------- ----------
TOTAL LIABILITIES
& CAPITALIZATION . . . . . . . . $ 94,675 $ 136,734 $ 123,794 $ (49,843) $ 62,783 $ (40,545) $ 72
=========== =========== =========== =========== ========== ========== =========
Canadian
Cowley Wind Power
Ridge Company
Partnership (1) Inc. (1) CNP Ltd. CNP Inc.
--------------- ----------- ---------- -----------
<S> <C> <C> <C> <C>
ASSETS
- -----
UTILITY PLANT (NET) . . . . . . . . $ - $ - $ 7,256 $ 39,685
---------- ---------- ---------- ----------
OTHER PROPERTY AND INVESTMENTS:
Other investments . . . . . . . . . - - - -
Investments - subsidiaries. . . . . - - 36,579 -
---------- ---------- ---------- ----------
- - 36,579 -
---------- ---------- ---------- ----------
CURRENT ASSETS:
Cash & temporary investments. . . . - - 3,520 1,247
Accounts receivable . . . . . . . . - - 7,453 2,218
Inventory . . . . . . . . . . . . . - - - 887
---------- ---------- ---------- ----------
- - 10,973 4,352
---------- ---------- ---------- ----------
Deferred pension costs. . . . . . . - - 1,791 1,819
Other assets. . . . . . . . . . . . - - 738 63
---------- ---------- ---------- ----------
- - 2,529 1,882
---------- ---------- ---------- ----------
TOTAL ASSETS. . . . . . . . . . . . $ - $ - $ 57,337 $ 45,919
========== ========== ========== ==========
CAPITALIZATION
AND LIABILITIES
Common stock. . . . . . . . . . . . $ - $ - $ - $ 11,400
Paid in surplus . . . . . . . . . . - - - 804
Retained earnings . . . . . . . . . - - 25,879 312
Translation adjustment/Accumulated
other comprehensive income. . . . - - - -
Minority interest . . . . . . . . . - - - -
---------- ----------- ---------- ----------
- - 25,879 12,516
---------- ----------- ---------- ----------
Long-term debt. . . . . . . . . . . - - 19,200 24,821
---------- ----------- ---------- ----------
Accounts payable. . . . . . . . . . - - 6,438 6,226
Income taxes payable. . . . . . . . - - 1,937 572
Deferred taxes payable. . . . . . . - - 1,083 (228)
---------- ----------- ---------- ----------
- - 9,458 6,570
---------- ----------- ---------- ----------
Accumulated deferred taxes. . . . . - - - -
Deferred credits. . . . . . . . . . - - 2,800 2,012
---------- ----------- ---------- ----------
TOTAL LIABILITIES
& CAPITALIZATION . . . . . . . . $ - $ - $ 57,337 $ 45,919
========== =========== ========== ==========
</TABLE>
* Exchange Rate 0.6924
(1) Cowley Ridge Partnership interest and Canadian Wind Power were sold in
1999.
<PAGE>
S-20
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
OPINAC ENERGY CORPORATION
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1999
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Opinac Opinac
Energy Corp. Energy Corp. Opinac CNP Ltd. Inter
Total Total Energy Consolidated Company
US Dollar Canadian Corporation Reclasses Total Eliminations
----------- ----------- ----------- --------- ------------- --------------
<S> <C> <C> <C> <C> <C> <C>
ELECTRIC REVENUE . . . . . . . . . . . $ - $ - $ - $(44,505) $ 44,505 $ (10,434)
------------ ------------- ------------ --------- ------------ -----------
OPERATING EXPENSES:
Electric utility. . . . . . . . . - - - (17,416) 17,416 (8,521)
Administration. . . . . . . . . . - - - (4,857) 4,857 -
Depreciation. . . . . . . . . . . - - - (2,724) 2,724 -
------------ ------------- ------------ --------- ------------ -----------
- - - (24,997) 24,997 (8,521)
------------ ------------- ------------ --------- ------------ -----------
OPERATING INCOME (LOSS). . . . . . . . - - - (19,508) 19,508 (1,913)
OTHER INCOME AND DEDUCTIONS:
Taxes . . . . . . . . . . . . . . (1,474) (2,196) (2,196) - - -
Other income. . . . . . . . . . . 6,124 9,089 9,089 - - (1,533)
Other deductions-interco. . . . . - - - - - (1,215)
Interest expense. . . . . . . . . - - - (1,861) 1,861 (1,570)
------------ ------------- ------------ --------- ------------ -----------
INCOME(LOSS) BEFORE FEDERAL
AND FOREIGN INCOME TAXES . . . . . 4,650 6,893 6,893 (17,647) 17,647 (661)
Income taxes . . . . . . . . . . . . . - - - (8,144) 8,144 -
------------ ------------- ------------ --------- ------------ -----------
NET INCOME (LOSS). . . . . . . . . . . 4,650 6,893 6,893 (9,503) 9,503 (661)
Retained earnings - beginning of year. 78,705 97,956 97,956 (21,376) 21,376 (121)
Dividends paid . . . . . . . . . . . . - - - 5,000 (5,000) -
Sale of CWP and CRP. . . . . . . . . . - - - - - 494
------------ ------------- ------------ --------- ----------- -----------
RETAINED EARNINGS - END OF YEAR. . . . $ 83,355 $ 104,849 $ 104,849 $(25,879) $ 25,879 $ (288)
============ ============= ============ ========= ============ ===========
Canadian
1161557 Cowley Wind Power
Ontario Ridge Company
Limited Partnership(CRP) Inc. (CWP) CNP Ltd. CNP Inc.
----------- ---------------- ------------ ---------- --------
<S> <C> <C> <C> <C> <C>
ELECTRIC REVENUE . . . . . . . . . . . $ 16 $ 18 $ 2,067 $ 37,210 $15,628
----------- ----------- ---------- ---------- --------
OPERATING EXPENSES:
Electric utility. . . . . . . . . 27 5 499 13,636 11,770
Administration. . . . . . . . . . - - - 4,857 -
Depreciation. . . . . . . . . . . 3 4 372 1,165 1,180
----------- ----------- ---------- ---------- --------
30 9 871 19,658 12,950
----------- ----------- ---------- ---------- --------
OPERATING INCOME (LOSS). . . . . . . . (14) 9 1,196 17,552 2,678
OTHER INCOME AND DEDUCTIONS:
Taxes . . . . . . . . . . . . . . - - - - -
Other income. . . . . . . . . . . - - 27 1,493 13
Other deductions-interco. . . . . - - - 297 918
Interest expense. . . . . . . . . - 6 573 1,642 1,210
----------- ----------- ---------- ---------- --------
INCOME(LOSS) BEFORE FEDERAL
AND FOREIGN INCOME TAXES . . . . . (14) 3 650 17,106 563
Income taxes . . . . . . . . . . . . . - - 290 7,603 251
----------- ----------- ---------- ---------- --------
NET INCOME (LOSS). . . . . . . . . . . (14) 3 360 9,503 312
Retained earnings - beginning of year. (10) (425) 556 21,376 -
Dividends paid . . . . . . . . . . . . - - - (5,000) -
Sale of CWP and CRP. . . . . . . . . . - 422 (916) - -
----------- ----------- ---------- ---------- --------
RETAINED EARNINGS - END OF YEAR. . . . $ (24) $ - $ - $ 25,879 $ 312
=========== =========== ========== ========== ========
</TABLE>
<PAGE>
EXHIBIT B
[ARTICLE] UT
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET, CONSOLIDATED STATEMENT OF INCOME, AND
CONSOLIDATED STATEMENT OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
[/LEGEND]
[MULTIPLIER] 1000
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1999
[PERIOD-END] DEC-31-1999
[BOOK-VALUE] PER-BOOK
[TOTAL-ASSETS] 12670435
[TOTAL-OPERATING-REVENUES] 4084186
[NET-INCOME] (35088)
</TABLE>
<PAGE>
EXHIBIT C
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
An organizational chart showing the relationship of each EWG or foreign utility
company to associate companies in holding company system.
EXHIBIT C IS NOT APPLICABLE.
<PAGE>
NIAGARA MOHAWK HOLDINGS, INC. AND SUBSIDIARY COMPANIES
The above-named Claimant has caused this statement to be duly executed on its
behalf by its authorized officers on this 9th day of March 2000.
Corporate Seal
Attest: NIAGARA MOHAWK HOLDINGS, INC.
(Name of Claimant)
By: /s/Steven W. Tasker
-------------------------
Steven W. Tasker
Vice President-Controller
By: /s/Kapua A. Rice
-------------------------
Kapua A. Rice
Secretary
Name, title and address of officer to whom notices and correspondence concerning
this statement should be addressed:
Steven W. Tasker, Vice President-
Controller and Principal
Accounting Officer
Niagara Mohawk Holdings, Inc.
300 Erie Boulevard West
Syracuse, New York 13202
25
