BLUEFIELD GAS COMPANY
FILE NO. 69-153-3
FORM U-3A-2
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
Statement By Holding Company Claiming Exemption
Under Rule U-3A-2 From the Provisions of the
Public Utility Holding Company Act of 1935
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 4,326 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 1,003 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.
<PAGE>
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.
In December, 1998, Bluefield Gas Company completed approximately two miles of 4"
steel distribution lines to connect to facilities owned by Phoenix Energy Sales
Company that provides for the delivery of natural gas from Consolidated Natural
Gas Company. 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 781,305 MCF of gas in the State
of West Virginia during the calendar year 1998 for total revenues of $4,990,862.
Commonwealth distributed at retail 220,192 MCF of gas in the Commonwealth of
Virginia during the calendar year 1998 for total revenues of $1,358,636.
(b) Neither Bluefield Gas nor Commonwealth distributed at retail natural
gas outside the state of its incorporation.
(c) Commonwealth did not sell at wholesale natural gas outside the
Commonwealth of Virginia. Bluefield Gas sold 220,192 MCF of natural gas at
wholesale to Commonwealth at the Virginia-West Virginia State line for $861,103.
<PAGE>
(d) Bluefield Gas purchased 1,059,514 MCF of natural gas for $4,093,069
outside the State of West Virginia. All such gas was transported to Bluefield
Gas for resale as system supply by Columbia Gas Transmission Corporation and
Phoenix Energy Sales Company. Bluefield Gas transported 57,535 MCF of natural
gas to its end-users for other marketers for $40,601 in transportation fees.
Commonwealth transported 10,658 MCF of natural gas to its end-users for other
marketers for $6,417 in transportation fees. Commonwealth purchased 220,192 MCF
of natural gas from Bluefield Gas at the Virginia-West Virginia State line for
$861,103. 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 1998 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 26th day of February, 1999.
BLUEFIELD GAS COMPANY
By: s/John B. Williamson, III
Its President
(SEAL)
ATTEST:
s/Roger L. Baumgardner
Secretary
<PAGE>
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
<PAGE>
<TABLE>
<CAPTION>
Exhibit A
Bluefield Gas Company
Consolidating Income Statement
Twelve Months Ended December 31, 1998
Bluefield Commonwealth
Gas Public Service Consolidated
Company Corporation Eliminations Total
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<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $ 5,448,239 $ 1,311,892 $ (875,370) $ 5,884,761
COST OF GAS 3,923,188 861,103 (861,103) 3,923,188
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OPERATING MARGIN 1,525,051 450,789 (14,267) 1,961,573
OTHER OPERATING EXPENSES:
Gas utilities:
Other operations 629,144 136,942 (14,267) 751,819
Maintenance 93,933 37,640 131,573
Taxes - general 276,180 57,649 333,829
Taxes - income 58,812 50,607 109,419
Depreciation and amortization 202,969 68,991 271,960
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Total other operating expenses 1,261,038 351,829 (14,267) 1,598,600
OPERATING EARNINGS 264,013 98,960 - 362,973
OTHER INCOME AND DEDUCTIONS:
Gas utilities:
Interest Income 32 32
Merchandising and jobbing, net 4,271 4,271
Other deductions (4,324) (452) (4,776)
Taxes - income (1,648) 154 (1,494)
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Total other income and deductions (1,669) (298) - (1,967)
EARNINGS BEFORE INTEREST CHARGES 262,344 98,662 - 361,006
INTEREST CHARGES:
Gas utilities:
Long-term debt 96,909 96,909
Other interest 91,308 770 92,078
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Total interest charges 188,217 770 - 188,987
NET EARNINGS $ 74,127 $ 97,892 $ 0 $ 172,019
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</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A(1)
BLUEFIELD GAS COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Bluefield Commonwealth
Gas Public Service Consolidated
ASSETS Company Corporation Eliminations Total
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<S> <C> <C> <C> <C> <C> <C>
UTILITY PLANT:
Utility Plant in Service $ 5,464,394 $ 1,379,591 $ 6,843,985
Accumulated Depreciation (1,873,215) (388,239) (2,261,454)
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Utility Plant in Service, Net 3,591,179 991,352 0 4,582,531
Construction Work-In-Progress 170,848 289,452 460,300
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Utility Plant, Net 3,762,027 1,280,804 0 5,042,831
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CURRENT ASSETS:
Cash and Cash Equivalents 46,282 46,282
Accounts Receivable 1,235,664 (374,706) 860,958
Inventories 1,025,860 1,025,860
Deferred Income Taxes 0
Purchased Gas Adjustments (16,750) (19,992) (36,742)
Other 42,072 42,072
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Total Current Assets 2,333,128 (394,698) 0 1,938,430
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OTHER ASSETS 31,134 18,367 (500) 49,001
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TOTAL $ 6,126,289 $ 904,473 $ (500) $ 7,030,262
==============================================================================
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
Exhibit A(1)
BLUEFIELD GAS COMPANY
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
Bluefield Commonwealth
Gas Public Service Consolidated
LIABILITIES Company Corporation Eliminations Total
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<S> <C> <C> <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 1,454,734 587,690 2,042,424
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Total Stockholders' Equity 1,725,002 625,431 (500) 2,349,933
Long-Term Debt (Less Current Maturities) 1,300,000 1,300,000
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Total Capitalization 3,025,002 625,431 (500) 3,649,933
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CURRENT LIABILITIES:
Current Maturities of Long-Term Debt 0 0
Notes Payable 2,012,000 2,012,000
Accounts Payable 362,822 68,774 431,596
Income Taxes Payable 209,284 144,561 353,845
Customers' Deposits 58,249 13,046 71,295
Accrued Expenses 326,219 3,288 329,507
Refunds From Suppliers - Due Customers 0 2,940 2,940
Purchased Gas Adjustments 0
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Total Current Liabilities 2,968,574 232,609 0 3,201,183
DEFERRED CREDITS AND OTHER LIABILITIES:
Deferred Income Taxes 119,929 43,485 163,414
Deferred Investment Tax Credits 12,784 2,948 15,732
Other Deferred Credits 0
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Total Deferred Credits and Other
Liabilities 132,713 46,433 0 179,146
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TOTAL $ 6,126,289 $ 904,473 $ (500) $ 7,030,262
==============================================================================
</TABLE>
<PAGE>
EXHIBIT B
BLUEFIELD GAS COMPANY
FINANCIAL DATA SCHEDULE
Item No. Caption Heading
1 Total Assets $7,030,262
2 Total Operating Revenues 5,884,761
3 Net Income 172,019
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EXHIBIT C
NOT APPLICABLE
<TABLE> <S> <C>
<ARTICLE> OPUR3
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATING INCOME STATEMENTS OF ROANOKE GAS CO. AND SUBSIDIARIES AND OF
BLUEFIELD GAS CO. AND THE CONSOLIDATING BALANCE SHEETS OF ROANOKE GAS CO. AND
SUBSIDIARIES AND OF BLUEFIELD GAS CO. FOR THE YEAR ENDED DEC. 31, 1998 AND IS
QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> SEP-30-1999
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 7,030,262
<TOTAL-OPERATING-REVENUES> 5,884,761
<NET-INCOME> 172,019
</TABLE>
