UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM U-3A-2
File No. 69-198
Statement by Holding Company Claiming Exemption Under Rule U-3A-2 from the
Provisions of the Public Utility Holding Company Act of 1935
CENTRAL MAINE POWER COMPANY
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:
1. Central Maine Power Company (Central Maine) is a Maine corporation with
its principal office at 83 Edison Drive, Augusta, Maine 04336.
Central Maine is principally engaged in the generation, transmission,
distribution and sale of electric energy in the State of Maine, and serves more
than 528,000 customers in southern and central Maine.
Central Securities Corporation (Central Securities), a wholly-owned
subsidiary of Central Maine, is a Maine corporation with its office at 83 Edison
Drive, Augusta, Maine 04336. The business of Central Securities is limited to
the ownership of certain real estate within Central Maine's service area.
Cumberland Securities Corporation (Cumberland Securities), a wholly-owned
subsidiary of Central Maine, is a Maine corporation with its office at 83 Edison
Drive, Augusta, Maine 04336. The business of Cumberland Securities is limited to
the ownership of certain real estate within Central Maine's service area.
Kennebec Water Power Company (Kennebec Water Power) is a Maine corporation
with its principal office at 83 Edison Drive, Augusta, Maine 04336. Central
Maine owns a 24.8% voting interest in Kennebec Water Power, whose business is to
regulate and improve the flow of the Kennebec River. Kennebec Water Power owns
storage dams at the East and West Outlets of Moosehead Lake in Maine.
The Union Water-Power Company (Union Water-Power), a wholly-owned
subsidiary of Central Maine, is a Maine corporation with its principal office at
150 Main Street, Lewiston, Maine 04240. The business of Union Water-Power is to
own storage reservoirs, dams and canals on the Androscoggin River, including
facilities in Lewiston, Maine, where it sells water for power. Effective January
1, 1995, Union Water-Power, through a joint operating agreement with Kennebec
Water Power, assumed a large part of Kennebec Water Power's river-flow
responsibilities with respect to the Kennebec River. In addition, Union
Water-Power has leased one of its dam sites to an unaffiliated party which has
developed on the site a "qualifying facility" exempt from the Public Utility
Holding Company Act of 1935 under Rule 292.602 of the Federal Energy Regulatory
Commission. Union Water-Power also provides other river facilities management
services, including the management of an oxygenation facility on the
Androscoggin River (see Gulf Island below) and fishways on the Saco River. The
"On Target" division of Union Water-Power provides utility support services such
as underground facility locating, infrared photography and workorder ticket
management. Union Water-Power also provides real estate management, development,
sales and leasing through its UnionLand Services division and markets modular
homes through its Maine HomeCrafters division.
Union Water-Power also owns 25% of the voting stock of Androscoggin
Reservoir Company (Androscoggin), a Maine corporation with its principal office
at 83 Edison Drive, Augusta, Maine 04336. The business of Androscoggin is to own
a storage reservoir and dam on the headwaters of the Androscoggin River.
Androscoggin has leased its dam site to an unaffiliated party which has
similarly developed on the site an exempt "qualifying facility".
Kennebec Hydro Resources, Inc. (Kennebec Hydro), a wholly-owned subsidiary
of Central Maine, is a Maine corporation with its principal office at 83 Edison
Drive, Augusta, Maine 04336. Kennebec Hydro is the general partner and owns a
50% interest in The Merimil Limited Partnership, which owns a "qualifying
facility," with unaffiliated limited partners.
Maine Yankee Atomic Power Company (Maine Yankee) is a Maine corporation
with its principal office at Bailey Point Ferry Road, Wiscasset, Maine 04578,
formed for the purpose of constructing, owning and operating a nuclear electric
generating plant at Wiscasset, Maine. Central Maine owns 38% of the common stock
of Maine Yankee. On August 6, 1997, the Board of Directors of Maine Yankee voted
to cease power production permanently at the Maine Yankee plant and to
decommission the plant.
Maine Electric Power Company, Inc. (MEPCo.) is a Maine corporation with its
principal office at 83 Edison Drive, Augusta, Maine 04336, which owns and
operates a 345-KV transmission interconnection between Wiscasset, Maine and the
Maine-New Brunswick international border at Orient, Maine, where its lines
connect with the portion of the interconnection constructed in the province of
New Brunswick, Canada, by The New Brunswick Power Corporation. Central Maine
owns 78.3% of MEPCo.'s common stock. The remaining voting stock of MEPCo. is
owned by two other Maine electric utility companies. MEPCo. also owns and
operates certain equipment, including microwave communication facilities, in
connection with the Hydro-Quebec Phase II (Phase II) project described in the
next paragraph hereof.
NORVARCO, a wholly-owned subsidiary of Central Maine, is a Maine
corporation with its principal office at 83 Edison Drive, Augusta, Maine 04336.
NORVARCO is one of two general partners with 50% interests in Chester SVC
Partnership, a general partnership with its principal office at 83 Edison Drive,
Augusta, Maine 04336, which owns a static var compensator facility (the SVC
Facility) located in Chester, Maine, adjacent to MEPCo.'s 345-KV transmission
interconnection with New Brunswick, Canada. The SVC Facility provides necessary
transmission system reinforcements which support the Phase II transmission line
expansion constructed for New England Hydro-Transmission Corporation in New
Hampshire and which allow the Phase II facilities to operate at their maximum
capability while MEPCo. continues to maintain the full operating capability of
its interconnection with New Brunswick.
Gulf Island Pond Oxygenation Project (Gulf Island) is a Maine general
partnership with its principal office at 83 Edison Drive, Augusta, Maine 04336,
whose business is to operate and maintain an oxygenation facility at Gulf Island
Pond on the Androscoggin River in Greene, Maine. Central Maine holds a 14%
interest in the partnership. The oxygenation facility is operated by Union
Water-Power under an operating agreement with Gulf Island.
CMP International Consultants (CMP International), a wholly-owned
subsidiary of Central Maine, is a Maine corporation with its principal office at
1 Grandview Place, Winthrop, Maine 04364. The business of CMP International is
to provide consulting, planning, training and project management services to
foreign and domestic utilities and government agencies in various aspects of
utility operations and utility support services. CMP International's Center for
Energy Information division provides information and research services and
related consulting. E/PRO, also a division of CMP International, provides
engineering, environmental, licensing and other technical services.
Aroostook Valley Electric Company (AVEC), a wholly-owned subsidiary of
Central Maine, is a Maine corporation with its principal office at Cheney Grove
Road, Fort Fairfield, Maine 04742. The business of AVEC is to own and operate a
31 megawatt wood-fired generating plant in Fort Fairfield, Maine, the output of
which is sold to Central Maine.
MaineCom Services (MaineCom), a wholly-owned subsidiary of Central Maine,
is a Maine corporation with its principal office at 41 Anthony Avenue, Augusta,
Maine 04330. The business of MaineCom is to develop telecommunications projects
and provide telecommunications services. MaineCom holds an 85% voting interest
in FiveCom, Inc. MaineCom also holds a 66% voting interest in FiveCom Maine LLC
and a 40% voting interest in New England Fiber Communications LLC. FiveCom, Inc.
holds an 88% voting interest in FiveCom LLC, which holds a 33% voting interest
in FiveCom Maine LLC and a 60% voting interest in NECOM LLC. All of these
entities are in the business of developing telecommunications facilities in the
New England states.
TeleSmart, a wholly-owned subsidiary of Central Maine, is a Maine
corporation with its principal office at 81 Leighton Road, Augusta, Maine 04330.
The business of TeleSmart is to provide customer contact management services,
including collection and related services, to unrelated third parties and to
Central Maine.
Central Securities, Cumberland Securities, Kennebec Water Power, Union
Water-Power, Androscoggin, Kennebec Hydro, Gulf Island, CMP International,
MaineCom and TeleSmart are not public utilities. Because the Maine Yankee plant
has been permanently shut down, Maine Yankee is no longer a public utility under
the Public Utility Holding Company Act of 1935 ("PUHCA").
Yankee Atomic Electric Company (Yankee Atomic), Connecticut Yankee Atomic
Power Company (Connecticut Yankee) and Vermont Yankee Nuclear Power Corporation,
corporations which own nuclear generating facilities, are not subsidiaries of
Central Maine, as Central Maine owns, and expects to continue to own, less than
10% of the voting stock of each company. On February 26, 1992, the Board of
Directors of Yankee Atomic decided to discontinue permanently power operation at
the Yankee Atomic Plant in Rowe, Massachusetts, and to decommission that
facility. On December 4, 1996, the Board of Directors of Connecticut Yankee
voted in favor of permanently discontinuing power operation at the Connecticut
Yankee plant in Haddam, Connecticut and of decommissioning that facility.
In addition, Central Maine owns a 2.50% interest as a tenant in common in
the Millstone No. 3 nuclear unit in Waterford, Connecticut. The unit is operated
by Northeast Utilities.
On April 28, 1997, Central Maine announced a plan to seek proposals to
purchase its generating assets and, as part of an auction process, received
final bids on December 10, 1997. On January 6, 1998, Central Maine announced
that it had reached agreement to sell all of its hydro, fossil and biomass power
plants with a combined generating capacity of 1,185 megawatts to an affiliate of
Florida-based FPL Group Inc., the winning bidder in the auction process.
The hydropower assets to be included in the sale represent approximately
373 megawatts of generating capacity. Central Maine's fossil-fueled generating
assets included in the sale represent 781 megawatts. The sole biomass plant is
the 31-megawatt unit in Fort Fairfield, Maine, owned by AVEC, whose stock will
be transferred to FPL Group Inc. The sale is subject to various closing
conditions, including approvals of state and federal regulatory agencies.
Central Maine holds no interest, directly or indirectly, in any exempt
wholesale generator (EWG) or foreign utility company.
2. At December 31, 1997, Central Maine leased one and owned 30
hydro-electric generating stations of which it operated 29, and owned and
operated two steam generating plant and two internal combustion generating
plants, all within its service area within the State of Maine. Central Maine
also owns approximately 2,293 circuit-miles of overhead transmission lines,
19,514 pole-miles of overhead distribution lines, and 1,384 miles of underground
and submarine cable, all within its service area within the State of Maine.
MEPCo. owns a 345-KV transmission line between Wiscasset, Maine, and the
Maine-New Brunswick international border at Orient, Maine.
Maine Yankee owns a nuclear-powered generating plant at Wiscasset, Maine.
On August 6, 1997, the Board of Directors of Maine Yankee voted to cease power
production permanently at the Maine Yankee plant and to decommission the plant.
(Permanently shutdown since August 6, 1997, therefore, not a public utility
under PUHCA.)
Chester SVC Partnership owns a static var compensator facility at Chester,
Maine.
AVEC owns a 31-megawatt wood-fired generating plant at Fort Fairfield,
Maine.
3. Central Maine submits the following information with respect to it and
its subsidiary public utility companies for the calendar year 1997:
A. Central Maine Power Company
(a) 9,730,580,420 Kwh of electric energy sold
(b) 4,011,562 Kwh of electric energy distributed
outside of Maine (State where organized)
(c) 372,387,960 Kwh of electric energy sold at
wholesale outside of Maine or at the State
line:
Commonwealth Electric Company 2,250,000
Massachusetts Municipal
Wholesale Electric Company 3,923,611
New England Ventures, Inc. 8,140,560
ENRON Power Marketing, Inc. 8,859,180
Unitil 13,163,545
New England Power Pool 53,705,930
Northeast Utilities 282,345,134
(d) 3,231,760,366 Kwh of electric energy purchased at
wholesale outside of Maine or at the
State line:
Hydro-Quebec 268,600
NP Energy, Inc. 283,000
Fitchburg Gas & Electric
Light Co. 880,000
Tractabel Energy Marketing, Inc. 1,040,000
Green Mountain Power
Corporation 2,335,000
Central Vermont Public
Service Co. 3,449,000
New England Power Company 10,870,000
Niagara Mohawk Power Corp. 10,998,000
North American Energy
Conserv. Corp. 19,435,000
Commonwealth Electric 23,463,000
United Illuminating Co. 26,552,880
Plum St. Energy Marketing 32,226,000
Aquila Corp. 43,800,000
New England Ventures, Inc. 51,260,000
Great Bay Power Corporation 81,418,685
U.S. Generating 118,787,000
Vermont Yankee Nuclear Power
Corporation 153,669,379
Federal Energy Sales, Inc. 174,077,000
ENRON Power Marketing, Inc. 181,751,000
New Brunswick 509,238,000
Northeast Utilities 844,535,452
New England Power Pool 941,423,370
B. Maine Electric Power Company, Inc.
(a) 728,403,000 Kwh of electric energy sold.
(b) None Kwh of electric energy distributed
outside of Maine (State where organized).
(c) 46,043,000 Kwh of electric energy sold at
wholesale outside of Maine or at the State
line.
(d) 728,403,000 Kwh of electric energy purchased
outside of Maine or at the State line.
C. NORVARCO
NORVARCO does not purchase or sell electric energy.
D. Aroostook Valley Electric Company
(a) 251,322,554 Kwh of electric energy sold.
(b) None Kwh of electric energy distributed
outside of Maine (State where organized).
(c) None Kwh of electric energy sold at wholesale
outside of Maine or at the State line.
(d) None Kwh of electric energy purchased outside
of Maine or at the State line.
<PAGE>
Maine Yankee Atomic Power Company (Permanently shutdown since August 6, 1997,
therefore, not a public utility under PUHCA)
(a) None Kwh of electric energy sold.
(b) None Kwh of electric energy distributed
outside of Maine (State where organized).
(c) None Kwh of electric energy sold at wholesale
outside of Maine or at the State line.
(d) None Kwh of electric energy purchased outside
of Maine or at the State line.
4. Not applicable, as Central Maine holds no interest, directly or
indirectly, in any EWG or foreign utility company.
EXHIBIT A-1
Exhibit A-1 includes corporate consolidating financial statements of
Central Maine for 1997. The consolidated column is as it appears in Central
Maine's Annual Report to Shareholders for that year.
EXHIBIT A-2
Exhibit A-2 includes (1) a table showing, for 1997, the ratio of subsidiary
utility revenues to the utility revenues of the holding company (Central Maine)
as a public-utility company; (2) unconsolidated financial statements which
include the capitalization of Central Maine at December 31, 1997; (3) financial
statements which include the capitalization of MEPCo. at December 31, 1997; (4)
financial statements which include the capitalization of NORVARCO at December
31, 1997; (5) financial statements which include the capitalization of AVEC at
December 31, 1997; (6) a table showing, for 1997, the non-public utility
subsidiaries Total Revenues and Total Assets.
<PAGE>
EXHIBIT B
Financial Data Schedule.
<PAGE>
EXHIBIT C
Not applicable.
<PAGE>
Central Maine has caused this statement to be duly executed on its behalf
by its authorized representative on this 27th day of February, 1998.
CENTRAL MAINE POWER COMPANY
By /S/Michael W. Caron
Comptroller
CORPORATE SEAL
Attest:
/S/Anne M. Pare
Secretary
Name, title and address of persons to whom notices and correspondence concerning
this statement should be addressed.
Michael W. Caron, Comptroller Anne M. Pare
Central Maine Power Company Secretary and Clerk
83 Edison Drive Central Maine Power Company
Augusta, ME 04336 83 Edison Drive
Augusta, ME 04336
<PAGE>
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Central Maine Power Company
1997 Form U-3A-2
Exhibit A-1
Page 1 of 3
Central Maine Power Company
STATEMENT OF EARNINGS
12 Month Period
Ended 12/31/97
(Dollars in Thousands Except Per Share Amounts)
Maine
Central Electric
Maine Power Inter Company
Power Company Minority
Company Inc. Debit Credit Interest Total
----------------------------------------------------------------------------
ELECTRIC OPERATING REVENUES $944,389 $24,473 $14,686 $ $ $954,176
--------------------------------------------------------------------------
OPERATING EXPENSES
Fuel Used for Company Generation 34,946 34,946
Purchase Power
Energy 411,430 21,153 13,439 419,144
Other (Capacity) 112,791 19 112,810
Other Operation 206,805 936 1,247 206,494
Maintenance 33,658 246 33,904
Depreciation and Amortization 53,910 222 54,132
Taxes
Federal and State Income 6,835 589 7,424
Local Property and Other 27,919 384 28,303
--------------------------------------------------------------------------
Total Operating Expenses 888,294 23,549 14,686 897,157
--------------------------------------------------------------------------
EQUITY IN EARNINGS OF ASSOCIATED
COMPANIES 7,099 839 6,260
--------------------------------------------------------------------------
OPERATING INCOME 63,194 924 15,525 (14,686) 63,279
--------------------------------------------------------------------------
OTHER INCOME (EXPENSE)
AFC-Equity Funds 622 20 642
Other, Net 1,765 274 2,039
Minority Interest in Consolidated
Net Income 233 (233)
Income Taxes Applicable to Other
Income (Expense) (659) (79) (738)
--------------------------------------------------------------------------
Total Other Income (Expense) 1,728 215 233 1,710
--------------------------------------------------------------------------
INCOME BEFORE INTEREST CHARGES 64,922 1,139 15,525 (14,686) 233 64,989
--------------------------------------------------------------------------
INTEREST CHARGES
Long-Term Debt 44,299 47 44,346
Other Interest 7,640 20 7,660
Allowance for Borrowed Funds Used
During Construction (439) (439)
--------------------------------------------------------------------------
Total Interest Charges 51,500 67 51,567
--------------------------------------------------------------------------
NET INCOME 13,422 1,072 15,525 (14,686) 233 13,422
Dividends on Preferred Stock 8,209 8,209
--------------------------------------------------------------------------
EARNINGS APPLICABLE TO COMMON STOCK $ 5,213 $ 1,072 $15,525 $(14,686) $233 $5,213
==========================================================================
WEIGHTED AVERAGE NUMBER OF COMMON
SHARES OUTSTANDING 32,442,752 8,785 32,442,752
EARNINGS PER SHARE OF COMMON STOCK $0.16 $ 122.10 $0.16
DIVIDENDS DECLARED PER SHARE OF
COMMON STOCK %0.16 $ 11.00 $0.90
</TABLE>
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Central Maine Power Company
1997 Form U-3A-2
Exhibit A-1
Page 2 of 3
Central Maine Power Co.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
Maine
Central Electric
Maine Power
Power Company Inter Company Minority
Company Inc. Debit Credit Interest Total
ELECTRIC PROPERTY, at Original Cost $1,651,366 $23,510 $ $ $ $1,674,876
Less: Accumulated Depreciation 611,766 22,618 634,384
------------------------------------------------------------------------
Electric Property in Service 1,039,600 892 1,040,492
Construction Work in Progress 15,080 25 15,105
Net Nuclear Fuel 1,157 1,157
------------------------------------------------------------------------
Net Electric Property 1,055,837 917 1,056,754
------------------------------------------------------------------------
INVESTMENTS IN ASSOCIATED
COMPANIES, at Equity 78,359 1,850 76,509
------------------------------------------------------------------------
Net Electric Property and
Investments in Associated Companies
1,134,196 917 1,850 1,133,263
------------------------------------------------------------------------
CURRENT ASSETS
Cash & Temporary Cash Investments 18,982 1,859 20,841
Accounts Receivable
Service - Billed 84,083 240 84,323
- Unbilled 46,807 46,807
Other Accounts Receivable 15,477 146 376 15,247
Prepaid Income Taxes 341 341
Inventories, at Average Cost
Fuel Oil 5,390 5,390
Materials and Supplies 11,779 11,779
Funds on Deposit with Trustee 61,694 61,694
Prepayments and Other Current Assets 8,968 142 9,110
------------------------------------------------------------------------
Total Current Assets 253,180 2,728 717 255,191
------------------------------------------------------------------------
DEFERRED CHARGES AND OTHER ASSETS
Recoverable Costs of Seabrook 1 and
Abandoned Projects, Net 84,026 84,026
Regulatory Tax Asset 236,632 236,632
Yankee Atomic Purchase Power Contract 13,056 13,056
Connecticut Yankee Purchase Power Contract 36,877 36,877
Maine Yankee Purchase Power Contract 329,206 329,206
Other Deferred Charges and Other
Assets 210,577 717 579 210,715
------------------------------------------------------------------------
Deferred Charges and Other
Assets, Net 910,374 717 579 910,512
------------------------------------------------------------------------
TOTAL ASSETS $2,297,750 $4,362 $ $3,146 $ $2,298,966
========================================================================
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<PAGE>
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Central Maine Power
Company
1997 Form U-3A-2
Exhibit A-1
Page 3 of 3
Central Maine Power Co.
BALANCE SHEET
December 31, 1997
(Dollars in Thousands)
Maine
Central Electric
Maine Power
Power Company Inter Company Minority
STOCKHOLDERS' INVESTMENT & LIABILITIES Company Inc. Debit Credit Interest Total
CAPITALIZATION
Common Stock Investment - Common Stock,Par $ 162,214 $ $ $ $(191) $
878 687 162,214
Value $5 Per Share, Authorized 38,000,000
Shares, Outstanding 32,442,752 Shares
Other Paid in Capital 277,168 277,168
Retained Earnings 48,212 1,486 15,925 14,762 (323) 48,212
Preferred Stock 65,571 65,571
Redeemable Preferred Stock 39,528 39,528
Mortgage Debt 259,563 259,563
Long-Term Debt 140,940 420 141,360
---------------------------------------------------------------------
Total Capitalization 993,196 2,784 16,612 14,762 (514) 993,616
---------------------------------------------------------------------
CURRENT LIABILITIES & INTERIM FINANCING
Interim Financing 238,000 238,000
---------------------------------------------------------------------
Other Current Liabilities
Sinking Fund Requirements 9,211 200 9,411
Accounts Payable & Bank Checks Outstanding 96,932 505 357 97,080
Dividends Payable 9,197 24 19 9,202
Accrued Interest 11,194 7 11,201
Accrued Income Taxes 3,342 341 3,001
Miscellaneous Current Liabilities 15,242 6 514 15,762
---------------------------------------------------------------------
Total Current Liabilities 145,118 742 717 514 145,657
---------------------------------------------------------------------
Total Current Liabilities & Interim Financing 383,118 742 717 514 383,657
---------------------------------------------------------------------
COMMITMENTS AND CONTINGENCIES
RESERVES AND DEFERRED CREDITS
Accumulated Deferred Income Taxes 351,491 579 350,912
Unamortized Investment Tax Credits 30,512 21 30,533
Yankee Atomic Purchase Power Contract 13,056 13,056
Connecticut Yankee Purchase Power Contract 36,877 36,877
Maine Yankee Purchase Power Contract 329,206 329,206
Other Reserves and Deferred Credits 103,658 599 104,257
Regulatory Tax Liabilities 56,636 216 56,852
---------------------------------------------------------------------
Total Reserves and Deferred Credits 921,436 836 579 921,693
---------------------------------------------------------------------
TOTAL STOCKHOLDERS' INVESTMENT
AND LIABILITIES $2,297,750 $ 4,362 $17,908 $14,762 $ $2,298,966
=====================================================================
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<PAGE>
EXHIBIT A-2
Attached hereto, as Exhibit A-2, are the following:
A-2(1). A table showing, for 1997, the ratio of subsidiary utility revenues
to the utility revenues of the holding company (Central Maine) as a
public-utility company;
A-2(2). Central Maine: unconsolidated financial statements which include
the capitalization at December 31, 1997;
A-2(3). MEPCo.: financial statements which include the capitalization at
December 31, 1997;
A-2(4). NORVARCO: financial statements which include the capitalization at
December 31, 1997
A-2(5). AVEC: financial statements which include the capitalization at
December 31, 1997
A-2(6). A table showing, for 1997, the non-public utility subsidiaries
Total Revenues and Total Assets.
<PAGE>
EXHIBIT A-2(1)
The following shows actual corporate revenues of MEPCo., NORVARCO and
AVEC in 1997, each adjusted to eliminate sales to Central Maine Power Company.
Central Maine Power Company also had sales to these subsidiaries during the year
which have been eliminated in the adjusted column. In 1997, actual and adjusted
electric revenues for these companies were:
(Dollars in Thousands)
Actual Adjusted
MEPCo. $ 24,473 $ 10,080
NORVARCO 4 4
AVEC 8,567 -
--------- ------
Sub Total 33,044 10,084
Central Maine 944,389 944,096
------- -------
$977,433 $954,180
======= =======
Subsidiary revenues from sales, other than to Central Maine, were about
$10 million, or 1% of Central Maine's adjusted revenues. This ratio is
acceptable and supports Central Maine's claim, in good faith, to its continuing
exemption pursuant to Rule 2.
<PAGE>
Central Maine Power Company
1997 Form U-3A-2
Exhibit A-2(2)
Page 1 of 4
Central Maine Power Company
UNCONSOLIDATED STATEMENT OF EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands Except Per Share Amounts)
ELECTRIC OPERATING REVENUES $944,389
OPERATING EXPENSES
Fuel Used for Company Generation 34,946
Purchased Power
Energy 411,430
Capacity 112,791
Other Operation 206,805
Maintenance 33,658
Depreciation and Amortization 53,910
Taxes
Federal and State Income 6,835
Taxes Other Than Income 27,919
Total Operating Expenses 888,294
-------
EQUITY IN EARNINGS OF ASSOCIATED COMPANIES 7,099
---------
OPERATING INCOME 63,194
--------
OPERATING INCOME (EXPENSE)
Allowance for Equity Funds Used During Construction 622
Other, Net 1,765
Income Taxes Applicable to Other Income (Expense) (659)
---------
Total Other Income (Expense) 1,728
INCOME BEFORE INTEREST CHARGES 64,922
INTEREST CHARGES
Long-Term Debt 44,299
Other Interest 7,640
Allowance for Borrowed Funds Used During Construction (439)
----------
Total Interest Charges 51,500
NET INCOME 13,422
Dividends on Preferred Stock 8,209
---------
EARNINGS APPLICABLE TO COMMON STOCK $ 5,213
=========
WEIGHTED AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING 32,442,752
EARNINGS PER SHARE OF COMMON STOCK $.16
DIVIDENDS DECLARED PER SHARE OF COMMON STOCK $.90
<PAGE>
Central Maine Power Company
1997 Form U-3A-2
Exhibit A-2(2)
Page 2 of 4
Central Maine Power Company
UNCONSOLIDATED BALANCE SHEET
At December 31, 1997
(Dollars in Thousands)
ASSETS
ELECTRIC PROPERTY, at Original Cost $1,651,366
Less: Accumulated Depreciation 611,766
Electric Property in Service 1,039,600
Construction Work in Progress 15,080
Net Nuclear Fuel 1,157
-----------
Net Electric Property 1,055,837
INVESTMENTS IN ASSOCIATED COMPANIES, at Equity 78,359
Net Electric Property and Investments in Associated Companies 1,134,196
---------
CURRENT ASSETS
Cash and Cash Equivalents 18,982
Accounts Receivable
Service - Billed 84,083
- Unbilled 46,807
Other Accounts Receivable 15,477
Inventories, at Average Cost
Fuel Oil 5,390
Materials and Supplies 11,779
Funds on Deposit with Trustee 61,694
Prepayments and Other Current Assets 8,968
Total Current Assets 253,180
DEFERRED CHARGES AND OTHER ASSETS
Recoverable Costs of Seabrook 1 and Abandoned Projects, Net 84,026
Decommissioning Liability 379,139
Regulatory Assets-Deferred Taxes 236,632
Deferred Charges and Other Assets 210,577
---------
Total Deferred Charges and Other Assets 910,374
TOTAL ASSETS $2,297,750
<PAGE>
Central Maine Power Company
1997 Form U-3A-2
Exhibit A-2(2)
Page 3 of 4
Central Maine Power Company
UNCONSOLIDATED BALANCE SHEET
At December 31, 1997
(Dollars in Thousands)
STOCKHOLDERS' INVESTMENT AND LIABILITIES
CAPITALIZATION (See Separate Statement)
Common Stock Investment $ 487,594
Preferred Stock 65,571
Redeemable Preferred Stock 39,528
Long-Term Obligations 400,503
---------
Total Capitalization 993,196
CURRENT LIABILITIES AND INTERIM FINANCING
Interim Financing 238,000
Sinking Fund Requirements 9,211
Accounts Payable 94,583
Bank Checks Outstanding 2,349
Dividends Payable 9,197
Accrued Interest 11,194
Accrued Income Taxes 3,342
Miscellaneous Current Liabilities 15,242
----------
Total Current Liabilities and Interim Financing 383,118
---------
COMMITMENTS AND CONTINGENCIES
RESERVES AND DEFERRED CREDITS
Accumulated Deferred Income Taxes 351,491
Unamortized Investment Tax Credits 30,512
Decommissioning Liability 379,139
Regulatory Liabilities-Deferred Taxes 56,636
Other Reserves and Deferred Credits 103,658
---------
Total Reserves and Deferred Credits 921,436
TOTAL STOCKHOLDERS' INVESTMENT AND LIABILITIES $2,297,750
<PAGE>
Central Maine Power Company
1997 Form U-3A-2
Exhibit A-2(2)
Page 4 of 4
Central Maine Power Company
UNCONSOLIDATED STATEMENT OF CAPITALIZATION AND INTERIM FINANCING
At December 31, 1997
(Dollars in Thousands)
Amount Percent
CAPITALIZATION
Common Stock Investment:
Common Stock, Par Value $5 Per Share-
Authorized - 80,000,000 Shares
Outstanding - 32,442,752 Shares $ 162,214 -
Other Paid-In Capital 277,168 -
Retained Earnings 48,212 -
----------- -----
Total Common Stock Investment 487,594 39.6%
---------- ----
Preferred Stock:
Preferred Stock - Not Subject to Mandatory Redemption 65,571 5.4
----------- ------
Redeemable Preferred Stock - Subject to
Mandatory Redemption 39,528 3.2
----------- ------
Long-Term Obligations:
Mortgage Bonds 421,000 -
Less: Unamortized Debt Discount 1,437 -
----------- ----
Total Mortgage Bonds 419,563 -
--------- ----
Medium-Term Notes 43,000 -
Other Long-Term Obligations:
Lease Obligations 34,517 -
Pollution Control Facility and Other Notes 83,634 -
----------- ----
Total Other Long-Term Obligations 118,151 -
---------- ----
Less: Current Sinking Fund Requirements
and Current Maturities 180,211 -
----------- ----
Total Long-Term Obligations 400,503 32.5
---------- ------
Total Capitalization 993,196 80.7
--------- ------
INTERIM FINANCING
Current Maturities of Long-Term Obligations 178,000 -
Short Term Revolving Credit 60,000 -
---------- ----
Total Interim Financing 238,000 19.3
---------- -----
Total Capitalization and Interim Financing $1,231,196 100.0%
========= =====
<PAGE>
Central Maine Power Company
1997 Form U-3A-2
Exhibit A-2(3)
Page 1 of 2
Maine Electric Power Company, Inc.
STATEMENT OF INCOME
For the Year Ended December 31, 1997
(Dollars in Thousands Except Per Share Amounts)
ELECTRIC OPERATING REVENUES
Sales for Resale $21,172
Transmission Revenues 2,696
Support Charges and Other 605
---------
Total Electric Operating Revenues 24,473
OPERATING EXPENSES
Purchased Power 21,172
Operation 936
Maintenance 246
Depreciation 222
Taxes
Federal and State Income 589
Local Property and Other 384
Total Operating Expenses 23,549
OPERATING INCOME 924
OTHER INCOME, NET 215
INCOME BEFORE INTEREST CHARGES 1,139
INTEREST CHARGES
Long-Term Debt 47
Other Interest Charges 20
Total Interest Charges 67
NET INCOME $ 1,072
=======
WEIGHTED AVERAGE NUMBER OF SHARES
OF COMMON STOCK OUTSTANDING 8,785
EARNINGS PER SHARE OF COMMON STOCK $122.10
======
DIVIDENDS DECLARED PER SHARE OF
COMMON STOCK $11.00
<PAGE>
Central Maine Power Company
1997 Form U-3A-2
Exhibit A-2(3)
Page 2 of 2
Maine Electric Power Company, Inc.
BALANCE SHEET
At December 31, 1997
(Dollars in Thousands)
ASSETS
ELECTRIC PROPERTY, at Original Cost $23,510
Less: Accumulated Depreciation 22,618
892
Construction Work in Progress 25
Electric Property, Net 917
CURRENT ASSETS
Cash and Cash Equivalents 1,859
Accounts Receivable - Associated Companies 101
- Other 285
Accrued Taxes 341
Other Current Assets 142
Total Current Assets 2,728
DEFERRED CHARGES AND OTHER ASSETS
Accumulated Deferred Income Taxes 579
Other Deferred Debits 138
Total Deferred Charges and Other Assets 717
-------
$ 4,362
COMMON STOCK INVESTMENT AND LIABILITIES
CAPITALIZATION
Common Stock Investment
Common Stock, $100 Par Value, Authorized 20,000 Shares,
Outstanding
8,785 Shares $ 878
Retained Earnings 1,486
-----
Total Common Stock Investment 2,364
Long-Term Debt, net of current portion 420
Total Capitalization 2,784
CURRENT LIABILITIES
Sinking Fund Requirements 200
Accounts Payable - Associated Companies 381
- Other 124
Dividends Payable 24
Accrued Interest, Taxes and Other 13
Total Current Liabilities 742
DEFERRED CREDITS
Unamortized Investment Tax Credits 21
Regulatory Obligation - Deferred Taxes 216
Other Deferred Credits 599
------
Total Deferred Credits 836
$4,362
<PAGE>
Central Maine Power Company
1997 Form U-3A-2
Exhibit A-2(4)
Page 1 of 2
NORVARCO
STATEMENT OF INCOME AND RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
Support Charges Chester SVC $ 4
----
Administrative Expenses 4
Income Tax Expense 27
Total Operating Expenses 31
Net Operating Loss (27)
Interest Income 41
Total Income 14
Retained Earnings-Beginning of the Year 211
Retained Earnings-End of the Year $225
<PAGE>
Central Maine Power Company
1997 Form U-3A-2
Exhibit A-2(4)
Page 2 of 2
NORVARCO
BALANCE SHEET
at December 31, 1997
(Dollars in Thousands)
ASSETS
CURRENT ASSETS
Cash and Cash Equivalents $ 851
Receivables 1
Prepaid Income Taxes 209
------
Total Current Assets 1,061
Accumulated Deferred Income Taxes 1,478
$2,539
STOCKHOLDERS' INVESTMENT AND LIABILITIES
CAPITALIZATION
Common Stock, $100 Par Value Outstanding, 5,000 Shares $ 500
Retained Earnings 225
------
Total Common Stock Equity 725
------
Accounts Payable 1
Accumulated Deferred Income Taxes 1,813
-----
$2,539
<PAGE>
Central Maine Power Company
1997 Form U-3A-2
Exhibit A-2(5)
Page 1 of 2
Aroostook Valley Electric Company
STATEMENT OF INCOME AND RETAINED EARNINGS
For the Year Ended December 31, 1997
(Dollars in Thousands)
ELECTRIC OPERATING REVENUES $8,567
OPERATING EXPENSES
Fuel Costs 5,398
Operation 1,424
Maintenance 613
Depreciation 260
Taxes
Federal and State Income 197
Local Property and Other 520
TOTAL OPERATING EXPENSES 8,412
-----
OPERATING INCOME 155
OTHER INCOME AND DEDUCTIONS 40
-------
NET INCOME 195
Retained Earnings-Beginning of Period 506
------
RETAINED EARNINGS-END OF PERIOD $ 701
=====
WEIGHTED AVERAGE NUMBER OF SHARES OF
COMMON STOCK OUTSTANDING 10,000
======
EARNINGS PER SHARE OF COMMON STOCK $19.50
=====
<PAGE>
Central Maine Power Company
1997 Form U-3A-2
Exhibit A-2(5)
Page 2 of 2
Aroostook Valley Electric Company
BALANCE SHEET
at December 31, 1997
(Dollars in Thousands)
ASSETS
Property, Plant and Equipment $48,950
Less: Accumulated Depreciation 47,565
Net Property, Plant and Equipment 1,385
Current Assets
Cash and Cash Equivalents 837
Accounts Receivable 826
Fuel Stock 263
Fuel Stock Expense 10
Prepaid Expenses 50
--------
Total Current Assets 1,986
Deferred Assets
Accumulated Deferred Income Taxes 22
Regulatory Tax Asset 102
Other Deferred Assets 27
--------
Total Deferred Assets 151
-------
TOTAL ASSETS $ 3,522
=======
STOCKHOLDER'S INVESTMENT AND LIABILITIES
Capitalization
Common Stock, $1 Par Value Outstanding, 10,000 Shares $ 10
Additional Paid-in Capital 1,990
Retained Earnings 702
-------
Total Common Stock Investment 2,702
Current Liabilities
Accounts Payable
Trade 124
Associated Companies 82
Fuel and Other 229
Other Current Liabilities 385
Total Current Liabilities 820
TOTAL STOCKHOLDERS' INVESTMENT AND LIABILITIES $ 3,522
======
<PAGE>
Central Maine Power Company
1997 Form U-3A-2
Exhibit A-2(6)
Non-Public Utility Subsidiaries
1997
(Dollars in Thousands)
Met Retained Earnings
Income (Accumulated Total Total
(Loss) Deficit) Revenues Assets
Maine Yankee Atomic Power Co. $ 9,037 $ 7,613 $238,586 $1,573,648
Central Securities 33 594 85 1,710
Cumberland Securities (3) 927 33 2,262
Kennebec Water Power 43 52 367 161
Union Water-Power 629 5,121 6,975 9,540
Kennebec Hydro 2,095 2,645 3,453 9,666
Gulf Island (Partners' Capital) (195) 612 485 674
CMP International 387 184 8,594 3,004
MaineCom (858) (989) 558 16,216
TeleSmart (453) (888) 688 809
------- ------- ------- ---------
Total $10,715 $15,871 $259,824 $1,617,690
====== ====== ======= =========
<TABLE> <S> <C>
<ARTICLE> UT
<LEGEND>
This schedule contains summary financial information extracted from Central
Maine Power Company's Consolidated Statement of Earnings, Consolidated Balance
Sheet and Consolidated Statement of Cash Flows and is qualified in it entirety
by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1
<CURRENCY> DOLLARS
<S> <C>
<PERIOD-TYPE> 12-mos
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-START> JAN-01-1997
<PERIOD-END> DEC-31-1997
<EXCHANGE-RATE> 1
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 1,056,754
<OTHER-PROPERTY-AND-INVEST> 76,509
<TOTAL-CURRENT-ASSETS> 255,191
<TOTAL-DEFERRED-CHARGES> 910,512
<OTHER-ASSETS> 0
<TOTAL-ASSETS> 2,298,966
<COMMON> 162,214
<CAPITAL-SURPLUS-PAID-IN> 277,168
<RETAINED-EARNINGS> 48,212
<TOTAL-COMMON-STOCKHOLDERS-EQ> 487,594
65,571
39,528
<LONG-TERM-DEBT-NET> 366,406
<SHORT-TERM-NOTES> 60,000
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 178,675
7,000
<CAPITAL-LEASE-OBLIGATIONS> 34,517
<LEASES-CURRENT> 1,736
<OTHER-ITEMS-CAPITAL-AND-LIAB> 1,057,939
<TOT-CAPITALIZATION-AND-LIAB> 2,298,966
<GROSS-OPERATING-REVENUE> 954,176
<INCOME-TAX-EXPENSE> 7,424
<OTHER-OPERATING-EXPENSES> 883,473<F1>
<TOTAL-OPERATING-EXPENSES> 890,897
<OPERATING-INCOME-LOSS> 63,279
<OTHER-INCOME-NET> 1,710
<INCOME-BEFORE-INTEREST-EXPEN> 64,989
<TOTAL-INTEREST-EXPENSE> 51,567
<NET-INCOME> 13,422
8,209
<EARNINGS-AVAILABLE-FOR-COMM> 5,213
<COMMON-STOCK-DIVIDENDS> 29,220
<TOTAL-INTEREST-ON-BONDS> 29,783
<CASH-FLOW-OPERATIONS> 92,210
<EPS-PRIMARY> .16
<EPS-DILUTED> .16
<FN>
*Includes $6,260 Equity in Earnings of Associated Companies.
</FN>
</TABLE>
