FORM U-3A-2 BLUEFIELD GAS COMPANY
FILE NO. 69-153-3
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
Statement By Holding Company Claiming Exemption
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Under Rule U-3A-2 From the Provisions of the
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Public Utility Holding Company Act of 1935
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Bluefield Gas Company ("Bluefield Gas") 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. In support of such claim for exemption,
the following information is submitted:
1. Bluefield Gas is a natural gas public utility organized and
existing in good standing under the laws of the State of West Virginia.
Bluefield Gas distributes natural gas to some 4,297 residential, commercial
and industrial customers located in the City of Bluefield, West Virginia and
the immediate surrounding area of Mercer County, West Virginia pursuant to
certificates of convenience and necessity at rates and charges issued and
prescribed by the West Virginia Public Service Commission. Bluefield Gas
owns all of the issued and outstanding voting securities of Commonwealth
Public Service Corporation ("Commonwealth"), a Virginia public service
corporation, providing natural gas service to approximately 961 residential,
commercial and industrial customers in Bluefield, Virginia and the immediate
surrounding area in Tazewell County, Virginia pursuant to certificates of
convenience and necessity at rates and charges issued and prescribed by the
State Corporation Commission of Virginia.
2. Bluefield Gas owns a transmission line extending from Princeton,
West Virginia to Bluefield, West Virginia, and a distribution system within
the City of Bluefield, West Virginia, and the immediate surrounding area of
Mercer County, West Virginia. Natural Gas is purchased from various
producers and marketers and transported on Columbia Gas Transmission
Corporation's system to Princeton, West Virginia. It is then transported on
Bluefield Gas' transmission line to Bluefield where it is distributed at
retail to Bluefield Gas customers. A portion of the gas is sold at the West
Virginia-Virginia state line to Commonwealth for resale, pursuant to tariff
on file with the Federal Energy Regulatory Commission, to its customers in
Bluefield, Virginia and the surrounding area of Tazewell County, Virginia.
3. The following information for the last calendar year with respect
to Bluefield Gas and Commonwealth is submitted:
(a) Bluefield Gas distributed at retail 903,416 MCF of gas
during the calendar year 1997. Commonwealth distributed at retail
264,389 MCF of gas during the calendar year 1997.
(b) Neither Bluefield Gas nor Commonwealth distributed at
retail natural gas outside the state of its incorporation.
<PAGE>
(c) Commonwealth did not sell at wholesale natural gas outside
the Commonwealth of Virginia. Bluefield Gas sold 264,389 MCF of
natural gas at wholesale to Commonwealth at the Virginia-West Virginia
State line.
(d) Bluefield Gas purchased 1,220,855 MCF of natural gas
outside the State of West Virginia. All such gas was transported to
Bluefield Gas for resale as system supply by Columbia Gas Transmission
Corporation. Bluefield Gas transported 20,596 MCF of natural gas to
its end-users for other marketers. Commonwealth purchased 264,389 MCF
of natural gas from Bluefield Gas at the Virginia-West Virginia State
line.
4. (a through e) Not applicable. The Company holds no interest,
directly or indirectly in an exempt wholesale generator (EWG) or foreign
utility company.
A consolidating statement of income and surplus and a consolidating
balance sheet for Bluefield Gas and Commonwealth for the 1997 calendar year
is attached as Exhibit A and Exhibit A(1).
The above-named claimant has caused this statement to be duly executed
on its behalf by its authorized officer on this 23rd day of February, 1998.
BLUEFIELD GAS COMPANY
By: s/John B. Williamson, III
[Seal appears here] ---------------------------
Its President
(SEAL)
ATTEST:
s/Roger L. Baumgardner
- -------------------------------
Secretary
Notices and correspondence regarding this statement should be addressed to:
Roger L. Baumgardner
Secretary & Treasurer
Bluefield Gas Company
Post Office Box 13007
Roanoke, VA 24030
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<TABLE>
<CAPTION>
Exhibit A
Bluefield Gas Company
Consolidating Income Statement
Twelve Months Ended December 31, 1997
Bluefield Commonwealth
Gas Public Service Consolidated
Company Corporation Eliminations Total
------- ----------- ------------ -----
<S> <C> <C> <C> <C>
OPERATING REVENUES $ 6,253,205 $ 1,515,310 $ (1,096,567) $ 6,671,948
COST OF GAS 4,753,640 1,081,443 (1,081,443) 4,753,640
---------- ---------- ----------- ----------
OPERATING MARGIN 1,499,565 433,867 (15,124) 1,918,308
OTHER OPERATING EXPENSES:
Gas utilities:
Other operations 626,523 205,575 (15,124) 816,974
Maintenance 124,296 68,620 192,916
Taxes - general 276,299 62,110 338,409
Taxes - income 42,893 15,104 57,997
Depreciation and amortization 159,905 50,788 210,693
---------- ---------- ----------- ----------
Total other operating expenses 1,229,916 402,197 (15,124) 1,616,989
OPERATING EARNINGS 269,649 31,670 - 301,319
OTHER INCOME AND DEDUCTIONS:
Gas utilities:
Interest Income -
Merchandising and jobbing, net 4,404 4,404
Other deductions (6,132) (275) (6,407)
Taxes - income (620) 94 (526)
---------- ---------- ----------- ----------
Total other income and deductions (2,348) (181) - (2,529)
EARNINGS BEFORE INTEREST CHARGES 267,301 31,489 - 298,790
INTEREST CHARGES:
Gas utilities:
Long-term debt 105,181 105,181
Other interest 106,745 1,656 108,401
---------- ---------- ----------- ----------
Total interest charges 211,926 1,656 - 213,582
NET EARNINGS $ 55,375 $ 29,833 $ 0 $ 85,208
========== ========== =========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A(1)
BLUEFIELD GAS COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Bluefield Commonwealth
Gas Public Service Consolidated
ASSETS Company Corporation Eliminations Total
- ------ ------- ----------- ------------ -----
<S> <C> <C> <C> <C>
UTILITY PLANT:
Utility Plant in Service $ 5,130,392 $ 1,211,960 $ 6,342,352
Accumulated Depreciation (1,823,628) (391,564) (2,215,192)
---------- ---------- ----------- ----------
Utility Plant in Service, Net 3,306,764 820,396 0 4,127,160
Construction Work-In-Progress 135,425 126,485 261,910
---------- ---------- ----------- ----------
Utility Plant, Net 3,442,189 946,881 0 4,389,070
---------- ---------- ----------- ----------
CURRENT ASSETS:
Cash and Cash Equivalents 64,047 64,047
Accounts Receivable 1,358,450 (216,002) 1,142,448
Inventories 923,486 923,486
Deferred Income Taxes 0
Purchased Gas Adjustments 453,304 33,168 486,472
Other 41,034 41,034
---------- ---------- ----------- ----------
Total Current Assets 2,840,321 (182,834) 0 2,657,487
---------- ---------- ----------- ----------
OTHER ASSETS 57,674 (107) (500) 57,067
---------- ---------- ----------- ----------
TOTAL $ 6,340,184 $ 763,940 $ (500) $ 7,103,624
========== ========== =========== ==========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A(1)
BLUEFIELD GAS COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
Bluefield Commonwealth
Gas Public Service Consolidated
LIABILITIES Company Corporation Eliminations Total
- ----------- ------- ----------- ------------ -----
<S> <C> <C> <C> <C>
CAPITALIZATION:
Stockholders' Equity:
Common Stock $ 49,704 $ 500 $ (500) $ 49,704
Capital in Excess of Par Value 220,564 37,241 257,805
Retained Earnings 1,380,608 489,798 1,870,406
---------- -------- ------ ----------
Total Stockholders' Equity 1,650,876 527,539 (500) 2,177,915
Long-Term Debt (Less Current Maturities) 1,300,000 1,300,000
---------- -------- ------ ----------
Total Capitalization 2,950,876 527,539 (500) 3,477,915
---------- -------- ------ ----------
CURRENT LIABILITIES:
Current Maturities of Long-Term Debt 0 0
Notes Payable 2,271,000 2,271,000
Accounts Payable 476,605 34,745 511,350
Income Taxes Payable (24,022) 105,203 81,181
Customers' Deposits 49,666 9,575 59,241
Accrued Expenses 331,337 11,631 342,968
Refunds From Suppliers - Due Customers 0 1,968 1,968
Purchased Gas Adjustments 0
---------- -------- ------ ----------
Total Current Liabilities 3,104,586 163,122 0 3,267,708
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred Income Taxes 271,139 70,160 341,299
Deferred Investment Tax Credits 13,583 3,119 16,702
Other Deferred Credits 0
---------- -------- ------ ----------
Total Deferred Credits and Other
Liabilities 284,722 73,279 0 358,001
---------- -------- ------ ----------
TOTAL $ 6,340,184 $ 763,940 $ (500) $ 7,103,624
========== ======== ====== ==========
</TABLE>
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EXHIBIT B
BLUEFIELD GAS COMPANY
FINANCIAL DATA SCHEDULE
Item No. Caption Heading
-------- ---------------
1 Total Assets $7,103,624
2 Total Operating Revenues 6,671,948
3 Net Income 85,208
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EXHIBIT C
NOT APPLICABLE
<PAGE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATING INCOME STATEMENT AND THE CONSOLIDATING BALANCE SHEET OF BLUEFIELD
GAS COMPANY FOR THE YEAR ENDED DECEMBER 31, 1997, AND IS QUALIFIED IN ITS
ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<SUBSIDIARY>
<NUMBER> 1
<NAME> COMMONWEALTH PUBLIC SERVICE CORPORATION
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1998
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 7,103,624
<TOTAL-OPERATING-REVENUES> 6,671,948
<NET-INCOME> 85,208
</TABLE>
