File No. 70-8611
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________
POST-EFFECTIVE AMENDMENT NO. 1
TO
FORM U-1
_______________________________
APPLICATION OR DECLARATION
under the
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
* * *
SOUTHERN OHIO COAL COMPANY
CENTRAL OHIO COAL COMPANY
WINDSOR COAL COMPANY
OHIO POWER COMPANY
1 Riverside Plaza, Columbus, Ohio 43215
(Name of company or companies filing this statement
and address of principal executive office)
* * *
AMERICAN ELECTRIC POWER COMPANY, INC.
1 Riverside Plaza, Columbus, Ohio 43215
(Name of top registered holding company
parent of each applicant or declarant)
* * *
G. P. Maloney, Executive Vice President
American Electric Power Service Corporation
1 Riverside Plaza, Columbus, Ohio 43215
John F. Di Lorenzo, Jr., Associate General Counsel
American Electric Power Service Corporation
1 Riverside Plaza, Columbus, Ohio 43215
(Names and addresses of agents for service)
BACKGROUND
Southern Ohio Coal Company ("SOCCo") and Windsor Coal Company
("Windsor"), West Virginia corporations, and Central Ohio Coal
Company ("COCCo"), an Ohio corporation (collectively, the
"Companies"), are subsidiaries of Ohio Power Company ("Ohio
Power"), an electric utility subsidiary of American Electric Power
Company, Inc. ("AEP"), a registered holding company under the
Public Utility Holding Company Act of 1935, as amended (the "1935
Act"). Pursuant to an order issued by the Commission in this
proceeding on September 13, 1996 (HCAR No. 26573), the Companies
and Ohio Power were authorized to return excess capital to Ohio
Power through declaration of a dividend on their common stock out
of capital surplus. Specifically, SOCCo was authorized to pay up
to $68,000,000 out of capital surplus to Ohio Power by December 31,
1998, as one or more dividends on its common stock.
On October 1, 1996, SOCCo declared and paid a dividend to Ohio
Power out of capital surplus in the amount of $20,858,473, leaving
$47,141,527 authorized to be paid out of capital surplus. On or
about June 26, 1997, SOCCo will receive approximately $50,000,000
from an institutional investor from the sale-leaseback of its Meigs
Division coal preparation plant, intermine coal conveyor and
overland coal conveyor ("SOCCo Plant"), as fully described in the
original file. SOCCo intends to dividend the remaining authorized
$47,141,527 to Ohio Power on June 26, 1997, leaving SOCCo with
$2,858,473 of cash proceeds from the sale-leaseback transaction.
The remaining sale-leaseback proceeds and the cash generated from
SOCCo's Meigs Division are in excess of the $68,000,000 previously
authorized and far exceed the amount of its working capital
requirements. Therefore, SOCCo desires, pending the Commission's
authorization, to increase the amount of dividend it can pay out of
capital surplus from the $68,000,000 previously authorized to
$83,806,814, an increase of $15,806,814.
* * *
SOCCo and Ohio Power hereby amend their Application or
Declaration on Form U-1 in File No. 70-8611, as heretofore amended:
1. By adding the following paragraphs at the end of ITEM 1A
as follows:
"SOCCo seeks to increase the amount of dividend it can
pay out of capital surplus by an additional $15,806,814. Such
dividends or distributions would be declared on outstanding shares
out of surplus. Surplus is defined as the excess of a
corporation's assets over its liabilities plus stated capital. As
shown on the attached financial statements, at March 31, 1997,
SOCCo had a surplus of $115,894,113.
FN1 Total assets as of March 31, 1997 were $335,645,324;
total liabilities were $219,746,211; stated capital was
$5,000. Since capital surplus is the excess of assets
over liabilities plus stated capital, SOCCo had surplus
of $115,894,113 ($335,645,324 minus $219,746,211 minus
$5,000 equals $115,894,113). The capital surplus as of
March 31, 1997, was comprised of retained earnings in the
amount of $24,063,579, of which $863,988 is allocable to
Meigs and $23,199,591 is allocable to SOCCo's currently
inactive Martinka Division, and other paid-in capital in
the amount of $91,830,534.
SOCCo's capital structure at March 31, 1997 consisted of long-term
debt including capital lease obligations in the amount of
$92,467,186 and common equity in the amount of $115,899,113; stated
differently, SOCCo's debt ratio was 44.4 percent and its equity
ratio was 55.6 percent.
SOCCo proposes herein that its Board of Directors declare
a dividend out of its capital surplus of an additional amount up to
$15,806,814 when the cash is available, but in no event later than
December 31, 1998. The attached financial statements indicate
SOCCo's capital structure after paying such dividends.
In accordance with this Commission's order dated December
10, 1982, (HCAR No. 22770; File No. 70-6447), Ohio Power is
entitled to earn up to a specified rate of return on its capital
contributions to SOCCo.
FN2 As of March 31, 1997, Ohio Power's common equity in SOCCo
was comprised of retained earnings and the following
three layers, established pursuant to Holding Company Act
Release Nos. 20515, 21008, 21537, 22129 and 22401, all
totalling $115,899,113: (1) $60,157,220 with a 12.11
percent annual rate of return; (2) $26,239,500 with a
12.04 percent annual rate of return; and (3) $5,438,814
with a 13.58 percent annual rate of return. The retained
earnings balance, which does not generate a return, was
$24,063,579. The $20,858,473 dividend declared on
October 1, 1996 was paid to Ohio Power to reduce the
13.58% and 12.11% layers of equity.
SOCCo sold its Martinka Division and most of the
Martinka-related coal reserves to an unaffiliated
company. No return on equity investment associated with
that operation has been billed since the Division ceased
mining coal effective July 1, 1992. All costs associated
with the Martinka Division since then are billed to Ohio
Power, thereby eliminating any earnings effect to SOCCo.
Since July 1, 1992, SOCCo's billable equity layers have
been distributed to the Meigs and Martinka Divisions
based on a frozen net book value formula method, with
74.37 percent allocable to the Meigs Division.
The terms of the Indenture dated as of October 1, 1972, as amended,
between SOCCo and Ohio Power, include such return as a component of
the compensation payable to SOCCo for supplying coal to Ohio Power.
If the Commission authorizes SOCCo to pay the requested dividend,
Ohio Power's total capital investment in SOCCo will be reduced by
the amount of such dividend. The effect of this reduction in Ohio
Power's capital investment will be to remove from Ohio Power's cost
of coal the return associated with the portion of its capital
investment represented by the amount of the dividend, thereby
reducing Ohio Power's cost of coal.
SOCCo is seeking authorization from the Commission to pay
Ohio Power dividends of an additional $15,806,814 on its common
stock out of capital surplus. If the Commission authorizes payment
of the requested dividends, SOCCo anticipates that the layers of
equity will be reduced in direct relation to cost with the highest-
cost equity layer reduced first, thus slightly reducing the present
weighted average return on equity."
2. By adding the following paragraph to ITEM 2. FEES,
COMMISSIONS AND EXPENSES:
"No fees, commissions or expenses other than expenses
estimated not to exceed $1,000 to be billed at cost by American
Electric Power Service Corporation, are to be paid by the Companies
or any associate company in connection with the additional
authority sought in this Post-Effective Amendment."
3. By adding the following paragraph to ITEM 3. APPLICABLE
STATUTORY PROVISIONS:
"The Companies consider Section 12(c) of the 1935 Act and Rule
46 thereunder to be applicable to the proposed additional
dividends."
4. The following financial statements are filed as part of
this statement:
Balance Sheets as of March 31, 1997 and Statements of Income
and Retained Earnings for the twelve months ended March 31, 1997,
of the Companies and American Electric Power Company, Inc., and its
subsidiaries consolidated, together with journal entries reflecting
the proposed transaction.
SIGNATURE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned companies have duly caused
this statement to be signed on its behalf by their duly authorized
officer.
SOUTHERN OHIO COAL COMPANY
WINDSOR COAL COMPANY
CENTRAL OHIO COAL COMPANY
OHIO POWER COMPANY
By: /s/ A. A. Pena
Treasurer
June 27, 1997
70-8611.pe1
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 1
SOUTHERN OHIO COAL COMPANY
BALANCE SHEET
March 31, 1997
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
<S> <C> <C> <C>
ASSETS
MINING PLANT:
Mining Plant in Service . . . . . . . . . . . $363,638 $363,638
Accumulated Depreciation and Amortization . . 201,676 201,676
NET MINING PLANT. . . . . . . . . . . 161,962 161,962
OTHER PROPERTY AND INVESTMENTS. . . . . . . . . 60,402 60,402
CURRENT ASSETS:
Cash and Cash Equivalents . . . . . . . . . . 9,429 $(15,807) (6,378)*
Accounts Receivable:
General . . . . . . . . . . . . . . . . . . 4,761 4,761
Insurance . . . . . . . . . . . . . . . . . 13,011 13,011
Affiliated Companies. . . . . . . . . . . . 13,776 13,776
Coal. . . . . . . . . . . . . . . . . . . . . 1,287 1,287
Materials and Supplies. . . . . . . . . . . . 10,285 10,285
Other . . . . . . . . . . . . . . . . . . . . 4,707 4,707
TOTAL CURRENT ASSETS. . . . . . . . . 57,256 (15,807) 41,449
REGULATORY ASSETS . . . . . . . . . . . . . . . 52,180 52,180
DEFERRED CHARGES. . . . . . . . . . . . . . . . 3,845 3,845
TOTAL . . . . . . . . . . . . . . . $335,645 $(15,807) $319,838
The Pro Forma Adjustments are shown on Page 3 of these Financial Statements.
* The proposed dividends will be paid as the cash becomes available. Through
December 31, 1998, Southern Ohio Coal Company will continue to receive a stream
of income under the terms of the coal supply agreement and will pay dividends to
its parent, Ohio Power Company from those earnings.
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FINANCIAL STATEMENTS
PAGE 2
SOUTHERN OHIO COAL COMPANY
BALANCE SHEET
March 31, 1997
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
SHAREOWNER'S EQUITY:
Common Stock. . . . . . . . . . . . . . . . . $ 5 $ 5
Paid-in Capital . . . . . . . . . . . . . . . 91,830 $(15,807) 76,023
Retained Earnings . . . . . . . . . . . . . . 24,064 24,064
TOTAL SHAREOWNER'S EQUITY . . . . . . 115,899 (15,807) 100,092
LONG-TERM DEBT - Notes Payable. . . . . . . . . 45,000 45,000
OTHER NONCURRENT LIABILITIES:
Obligations Under Capital Leases. . . . . . . 19,542 19,542
Operating Reserves. . . . . . . . . . . . . . 50,456 50,456
TOTAL OTHER NONCURRENT LIABILITIES. . 69,998 69,998
CURRENT LIABILITIES:
Long-term Debt Due Within One Year. . . . . . 16,681 16,681
Accounts Payable:
General . . . . . . . . . . . . . . . . . . 3,554 3,554
Affiliated Companies. . . . . . . . . . . . 1,957 1,957
Taxes Accrued . . . . . . . . . . . . . . . . 6,179 6,179
Accrued Vacation Pay. . . . . . . . . . . . . 3,178 3,178
Workers' Compensation Claims. . . . . . . . . 13,320 13,320
Obligations Under Capital Leases. . . . . . . 11,244 11,244
Other . . . . . . . . . . . . . . . . . . . . 5,104 5,104
TOTAL CURRENT LIABILITIES . . . . . . 61,217 61,217
DEFERRED INCOME TAXES . . . . . . . . . . . . . 37,925 37,925
DEFERRED CREDITS. . . . . . . . . . . . . . . . 5,606 5,606
TOTAL . . . . . . . . . . . . . . . $335,645 $(15,807) $319,838
The Pro Forma Adjustments are shown on Page 3 of these Financial Statements.
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FINANCIAL STATEMENTS
PAGE 3
SOUTHERN OHIO COAL COMPANY
BALANCE SHEET
March 31, 1997
PRO FORMA ADJUSTMENTS
<CAPTION>
Debit Credit
(in thousands)
<S> <C> <C>
1) Paid-in Capital $15,807
Cash and Cash Equivalents $15,807
To record the proposed repayment of capital
surplus through December 31, 1998 as the
cash becomes available.
The pro forma financial statements exclude
previously approved yet not completed
transactions which were authorized in
HCAR 26573.
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FINANCIAL STATEMENTS
PAGE 3A
SOUTHERN OHIO COAL COMPANY
STATEMENT OF INCOME
Twelve Months Ended March 31, 1997
PRO FORMA ADJUSTMENTS
<CAPTION>
Increase
(Decrease)
(in thousands)
<S> <C>
Operating Revenues $(2,945)
Federal Income Taxes (1,031)
To reflect the pro forma changes in operating
revenues associated with the proposed
transaction and the related federal income
tax effect.
The pro forma financial statements exclude
previously approved yet not completed
transactions which were authorized in
HCAR 26573.
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FINANCIAL STATEMENTS
PAGE 4
SOUTHERN OHIO COAL COMPANY
STATEMENT OF INCOME
Twelve Months Ended March 31, 1997
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
<S> <C> <C> <C>
OPERATING REVENUES. . . . . . . . . . . . . . . $233,870 $(2,945) $230,925
OPERATING EXPENSES:
Other Operation . . . . . . . . . . . . . . . 129,902 129,902
Maintenance . . . . . . . . . . . . . . . . . 45,738 45,738
Depreciation, Depletion and Amortization. . . 19,746 19,746
Taxes Other Than Federal Income Taxes . . . . 13,287 13,287
Federal Income Taxes. . . . . . . . . . . . . 12,067 (1,031) 11,036
TOTAL OPERATING EXPENSES. . . . . . . . . 220,740 (1,031) 219,709
OPERATING INCOME. . . . . . . . . . . . . . . . 13,130 (1,914) 11,216
NONOPERATING INCOME . . . . . . . . . . . . . . 1,158 1,158
INCOME BEFORE INTEREST CHARGES. . . . . . . . . 14,288 (1,914) 12,374
INTEREST CHARGES. . . . . . . . . . . . . . . . 5,300 5,300
NET INCOME. . . . . . . . . . . . . . . . . . . $ 8,988 $(1,914) $ 7,074
The Pro Forma Adjustments are shown on Page 3A of these Financial Statements.
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FINANCIAL STATEMENTS
PAGE 5
SOUTHERN OHIO COAL COMPANY
STATEMENT OF RETAINED EARNINGS
TWELVE MONTHS ENDED MARCH 31, 1997
(in thousands)
<S> <C>
BALANCE AT BEGINNING OF PERIOD. . . . . . . . . . . . . . . . . . . $23,199
NET INCOME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,988
CASH DIVIDENDS DECLARED . . . . . . . . . . . . . . . . . . . . . . 8,123
BALANCE AT END OF PERIOD. . . . . . . . . . . . . . . . . . . . . . $24,064
</TABLE>
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FINANCIAL STATEMENTS
PAGE 6
OHIO POWER COMPANY
BALANCE SHEET
MARCH 31, 1997
(UNAUDITED)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
(in thousands)
<S> <C> <C> <C>
ASSETS
ELECTRIC UTILITY PLANT:
Production . . . . . . . . . . . . . . . . . . $2,565,522 $2,565,522
Transmission . . . . . . . . . . . . . . . . . 821,723 821,723
Distribution . . . . . . . . . . . . . . . . . 869,175 869,175
General. . . . . . . . . . . . . . . . . . . . 188,691 188,691
Construction Work in Progress. . . . . . . . . 80,675 80,675
Total Electric Utility Plant . . . . . 4,525,786 4,525,786
Accumulated Depreciation and Amortization. . . 1,968,407 1,968,407
NET ELECTRIC UTILITY PLANT . . . . . . 2,557,379 2,557,379
OTHER PROPERTY AND INVESTMENTS*. . . . . . . . . 173,792 $(15,807) 157,985
CURRENT ASSETS:
Cash and Cash Equivalents. . . . . . . . . . . 11,701 15,807 27,508
Accounts Receivable (net). . . . . . . . . . . 187,160 187,160
Fuel . . . . . . . . . . . . . . . . . . . . . 107,971 107,971
Materials and Supplies . . . . . . . . . . . . 51,095 51,095
Accrued Utility Revenues . . . . . . . . . . . 34,903 34,903
Prepayments. . . . . . . . . . . . . . . . . . 53,201 53,201
TOTAL CURRENT ASSETS . . . . . . . . . 446,031 15,807 461,838
REGULATORY ASSETS. . . . . . . . . . . . . . . . 475,791 475,791
DEFERRED CHARGES . . . . . . . . . . . . . . . . 98,764 98,764
TOTAL. . . . . . . . . . . . . . . . $3,751,757 $ - $3,751,757
*Includes Investments in Subsidiaries of $128,789,000 Per Books and $112,982,000 Pro
Forma.
The Pro Forma Adjustments are shown on Page 8 of these Financial Statements.
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FINANCIAL STATEMENTS
PAGE 7
OHIO POWER COMPANY
BALANCE SHEET
MARCH 31, 1997
(UNAUDITED)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
(in thousands)
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock - No Par Value:
Authorized - 40,000,000 Shares
Outstanding - 27,952,473 Shares. . . . . . . $ 321,201 $ 321,201
Paid-in Capital. . . . . . . . . . . . . . . . 462,285 462,285
Retained Earnings. . . . . . . . . . . . . . . 609,934 609,934
Total Common Shareholder's Equity . . . . 1,393,420 1,393,420
Cumulative Preferred Stock:
Not Subject to Mandatory Redemption. . . . . 17,575 17,575
Subject to Mandatory Redemption. . . . . . . 11,850 11,850
Long-term Debt . . . . . . . . . . . . . . . . 876,239 876,239
TOTAL CAPITALIZATION. . . . . . . . . . . 2,299,084 2,299,084
OTHER NONCURRENT LIABILITIES . . . . . . . . . . 115,423 115,423
CURRENT LIABILITIES:
Long-term Debt Due Within One Year . . . . . . 152,281 152,281
Short-term Debt. . . . . . . . . . . . . . . . 35,400 35,400
Accounts Payable . . . . . . . . . . . . . . . 88,353 88,353
Taxes Accrued. . . . . . . . . . . . . . . . . 159,833 159,833
Interest Accrued . . . . . . . . . . . . . . . 25,457 25,457
Obligations Under Capital Leases . . . . . . . 11,212 11,212
Other. . . . . . . . . . . . . . . . . . . . . 56,546 56,546
TOTAL CURRENT LIABILITIES . . . . . . . . 529,082 529,082
DEFERRED INCOME TAXES. . . . . . . . . . . . . . 715,810 715,810
DEFERRED INVESTMENT TAX CREDITS. . . . . . . . . 45,463 45,463
DEFERRED CREDITS . . . . . . . . . . . . . . . . 46,895 46,895
TOTAL. . . . . . . . . . . . . . . . . $3,751,757 $ - $3,751,757
The Pro Forma Adjustments are shown on Page 8 of these Financial Statements.
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FINANCIAL STATEMENTS
PAGE 8
OHIO POWER COMPANY
BALANCE SHEET
MARCH 31, 1997
PRO FORMA ADJUSTMENTS
<CAPTION>
Debit Credit
(in thousands)
<S> <C> <C>
1) Cash and Cash Equivalents $15,807
Other Property and Investments -
Investments in Subsidiaries $15,807
To record the return of invested
capital by Southern Ohio Coal Co.
through December 31, 1998 as the
cash becomes available.
The pro forma financial statements exclude
previously approved yet not completed
transactions which were authorized in HCAR 26573.
</TABLE>
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FINANCIAL STATEMENTS
PAGE 8A
OHIO POWER COMPANY
STATEMENT OF INCOME
TWELVE MONTHS ENDED MARCH 31, 1997
PRO FORMA ADJUSTMENTS
<CAPTION>
Increase
(Decrease)
(in thousands)
<S> <C>
Operating Revenues = $(2,945)
Fuel Expense = (2,945)
Nonoperating Income - Equity in Earnings
of Subsidiary Companies = (1,914)
To reflect the pro forma effects on fuel recovery
revenues and fuel expense and the pro forma changes
in equity in earnings of the subsidiary company
associated with the proposed transactions.
The pro forma financial statements exclude previously
approved yet not completed transactions which were
authorized in HCAR 26573.
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<TABLE>
FINANCIAL STATEMENTS
PAGE 9
OHIO POWER COMPANY
STATEMENT OF INCOME
TWELVE MONTHS ENDED MARCH 31, 1997
(UNAUDITED)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
(in thousands)
<S> <C> <C> <C>
OPERATING REVENUES . . . . . . . . . . . . . $1,900,427 $(2,945) $1,897,482
OPERATING EXPENSES:
Fuel . . . . . . . . . . . . . . . . . . . 667,851 (2,945) 664,906
Purchased Power. . . . . . . . . . . . . . 65,256 65,256
Other Operation. . . . . . . . . . . . . . 322,039 322,039
Maintenance. . . . . . . . . . . . . . . . 152,905 152,905
Depreciation and Amortization. . . . . . . 138,470 138,470
Taxes Other Than Federal Income Taxes. . . 167,727 167,727
Federal Income Taxes . . . . . . . . . . . 110,103 110,103
TOTAL OPERATING EXPENSES . . . . . 1,624,351 (2,945) 1,621,406
OPERATING INCOME . . . . . . . . . . . . . . 276,076 - 276,076
NONOPERATING INCOME. . . . . . . . . . . . . 17,825 (1,914) 15,911
INCOME BEFORE INTEREST CHARGES . . . . . . . 293,901 (1,914) 291,987
INTEREST CHARGES . . . . . . . . . . . . . . 77,191 77,191
NET INCOME . . . . . . . . . . . . . . . . . 216,710 (1,914) 214,796
PREFERRED STOCK DIVIDEND REQUIREMENTS. . . . 8,076 8,076
EARNINGS APPLICABLE TO COMMON STOCK. . . . . $ 208,634 $(1,914) $ 206,720
The common stock of the Company is wholly owned by American Electric Power Company, Inc.
The Pro Forma Adjustments are shown on Page 8A of these Financial Statements.
</TABLE>
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<TABLE>
FINANCIAL STATEMENTS
PAGE 10
OHIO POWER COMPANY
STATEMENT OF RETAINED EARNINGS
TWELVE MONTHS ENDED MARCH 31, 1997
(UNAUDITED)
<CAPTION>
(in thousands)
<S> <C>
BALANCE AT BEGINNING OF PERIOD . . . . . . . . . . . . . . . . $546,611
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . 216,710
DEDUCTIONS:
Cash Dividends Declared:
Common Stock . . . . . . . . . . . . . . . . . . . . . . . 144,704
Cumulative Preferred Stock . . . . . . . . . . . . . . . . 8,540
Capital Stock Expense. . . . . . . . . . . . . . . . . . . . 143
BALANCE AT END OF PERIOD . . . . . . . . . . . . . . . . . . . $609,934
</TABLE>
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<TABLE>
FINANCIAL STATEMENTS
PAGE 11
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
C0NSOLIDATED BALANCE SHEET
March 31, 1997
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
<S> <C> <C> <C>
ASSETS
ELECTRIC UTILITY PLANT:
Production. . . . . . . . . . . . . . . . . . . $ 9,353,218 $ 9,353,218
Transmission. . . . . . . . . . . . . . . . . . 3,379,638 3,379,638
Distribution. . . . . . . . . . . . . . . . . . 4,432,353 4,432,353
General
(including mining assets & nuclear fuel). . . 1,506,921 1,506,921
Construction Work In Progress . . . . . . . . . 395,070 395,070
Total Electric Utility Plant. . . . . . 19,067,200 19,067,200
Accumulated Depreciation
and Amortization. . . . . . . . . . . . . . . 7,650,991 7,650,991
NET ELECTRIC UTILITY PLANT. . . . . . . 11,416,209 11,416,209
OTHER PROPERTY AND INVESTMENTS. . . . . . . . . . 917,497 917,497
CURRENT ASSETS:
Cash and Cash Equivalents . . . . . . . . . . . 86,083 86,083
Accounts Receivable . . . . . . . . . . . . . . 584,514 584,514
Allowance for Uncollectible Accounts. . . . . . (7,437) (7,437)
Fuel. . . . . . . . . . . . . . . . . . . . . . 215,067 215,067
Materials and Supplies. . . . . . . . . . . . . 246,168 246,168
Accrued Utility Revenues. . . . . . . . . . . . 153,941 153,941
Prepayments . . . . . . . . . . . . . . . . . . 129,444 129,444
TOTAL CURRENT ASSETS. . . . . . . . . . 1,407,780 1,407,780
REGULATORY ASSETS . . . . . . . . . . . . . . . . 1,871,497 1,871,497
DEFERRED CHARGES. . . . . . . . . . . . . . . . . 292,707 292,707
TOTAL . . . . . . . . . . . . . . . . $15,905,690 $ - $15,905,690
The Pro Forma Adjustments are shown on Page 13 of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 12
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
C0NSOLIDATED BALANCE SHEET
March 31, 1997
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
CAPITALIZATION:
Common Stock. . . . . . . . . . . . . . . . . . $ 1,285,115 $ 1,285,115
Paid-in Capital . . . . . . . . . . . . . . . . 1,731,695 1,731,695
Retained Earnings . . . . . . . . . . . . . . . 1,607,776 1,607,776
Total Common Shareholders' Equity . . . 4,624,586 4,624,586
Cumulative Preferred Stocks of Subsidiaries:
Not Subject to Mandatory Redemption . . . . . 46,933 46,933
Subject to Mandatory Redemption . . . . . . . 127,605 127,605
Long-term Debt. . . . . . . . . . . . . . . . . 4,786,636 4,786,636
TOTAL CAPITALIZATION. . . . . . . . . . 9,585,760 9,585,760
OTHER NONCURRENT LIABILITIES. . . . . . . . . . . 1,065,046 1,065,046
CURRENT LIABILITIES:
Preferred Stock and Long-term Debt
Due Within One Year . . . . . . . . . . . . . 344,039 344,039
Short-term Debt . . . . . . . . . . . . . . . . 334,318 334,318
Accounts Payable. . . . . . . . . . . . . . . . 158,749 158,749
Taxes Accrued . . . . . . . . . . . . . . . . . 476,480 476,480
Interest Accrued. . . . . . . . . . . . . . . . 111,530 111,530
Obligations Under Capital Leases. . . . . . . . 83,827 83,827
Other . . . . . . . . . . . . . . . . . . . . . 328,069 328,069
TOTAL CURRENT LIABILITIES . . . . . . . 1,837,012 1,837,012
DEFERRED INCOME TAXES . . . . . . . . . . . . . . 2,621,692 2,621,692
DEFERRED INVESTMENT TAX CREDITS . . . . . . . . . 398,168 398,168
DEFERRED GAIN ON SALE AND LEASEBACK -
ROCKPORT PLANT UNIT 2 . . . . . . . . . . . . . 238,278 238,278
DEFERRED CREDITS. . . . . . . . . . . . . . . . . 159,734 159,734
TOTAL . . . . . . . . . . . . . . . . $15,905,690 $ - $15,905,690
The Pro Forma Adjustments are shown on Page 13 of these Financial Statements.
</TABLE>
<PAGE>
FINANCIAL STATEMENTS
PAGE 13
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
C0NSOLIDATED BALANCE SHEET
March 31, 1997
PRO FORMA ADJUSTMENTS
The proposed transactions has no effect on the consolidated balance sheet as it
is between affiliates and would be eliminated in consolidation.
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 13A
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
C0NSOLIDATED STATEMENT OF INCOME
Twelve Months Ended March 31, 1997
PRO FORMA ADJUSTMENTS
<CAPTION> Increase
(Decrease)
(in thousands)
<S> <C>
Operating Revenues $(2,945)
Federal Income Taxes (1,031)
To reflect the pro forma changes in operating
revenues associated with the proposed
transaction and the related federal income
tax effect.
The pro forma financial statements exclude
previously approved yet not completed
transactions which were authorized in
HCAR 26573.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 14
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF INCOME
Twelve Months Ended March 31, 1997
(in thousands, except per share amounts)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
<S> <C> <C> <C>
OPERATING REVENUES. . . . . . . . . . . . . . . . $5,823,521 $(2,945) $5,820,576
OPERATING EXPENSES:
Fuel and Purchased Power. . . . . . . . . . . . 1,680,474 1,680,474
Other Operation . . . . . . . . . . . . . . . . 1,208,598 1,208,598
Maintenance . . . . . . . . . . . . . . . . . . 496,803 496,803
Depreciation and Amortization . . . . . . . . . 603,689 603,689
Taxes Other Than Federal Income Taxes . . . . . 497,555 497,555
Federal Income Taxes. . . . . . . . . . . . . . 348,574 (1,031) 347,543
TOTAL OPERATING EXPENSES. . . . . . . . . . 4,835,693 (1,031) 4,834,662
OPERATING INCOME . . . . . . . . . . . . . . . . 987,828 (1,914) 985,914
NONOPERATING INCOME . . . . . . . . . . . . . . . 7,848 7,848
INCOME BEFORE INTEREST CHARGES
AND PREFERRED DIVIDENDS . . . . . . . . . . . . 995,676 993,762
INTEREST CHARGES. . . . . . . . . . . . . . . . . 375,125 375,125
PREFERRED STOCK DIVIDEND
REQUIREMENTS OF SUBSIDIARIES. . . . . . . . . . 40,571 40,571
NET INCOME . . . . . . . . . . . . . . . . . . . $ 579,980 $(1,914) $ 578,066
AVERAGE NUMBER OF SHARES OUTSTANDING. . . . . . . 187,727 187,727
EARNINGS PER SHARE. . . . . . . . . . . . . . . . $3.09 $3.08
CASH DIVIDENDS PAID PER SHARE . . . . . . . . . . $2.40 $2.40
The Pro Forma Adjustments are shown on Page 13A of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS
PAGE 15
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
TWELVE MONTHS ENDED MARCH 31, 1997
(in thousands)
<S> <C>
BALANCE AT BEGINNING OF PERIOD. . . . . . . . . . . . . . . . . . . . $1,477,852
NET INCOME. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 579,980
DEDUCTIONS:
Cash Dividends Declared . . . . . . . . . . . . . . . . . . . . . . 450,313
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (257)
BALANCE AT END OF PERIOD. . . . . . . . . . . . . . . . . . . . . . . $1,607,776
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<CIK> 0000310339
<NAME> SOUTHERN OHIO COAL COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 161,962
<OTHER-PROPERTY-AND-INVEST> 60,402
<TOTAL-CURRENT-ASSETS> 57,256
<TOTAL-DEFERRED-CHARGES> 3,845
<OTHER-ASSETS> 52,180
<TOTAL-ASSETS> 335,645
<COMMON> 5
<CAPITAL-SURPLUS-PAID-IN> 91,830
<RETAINED-EARNINGS> 24,064
<TOTAL-COMMON-STOCKHOLDERS-EQ> 115,899
0
0
<LONG-TERM-DEBT-NET> 45,000
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 16,681
0
<CAPITAL-LEASE-OBLIGATIONS> 19,542
<LEASES-CURRENT> 11,244
<OTHER-ITEMS-CAPITAL-AND-LIAB> 127,279
<TOT-CAPITALIZATION-AND-LIAB> 335,645
<GROSS-OPERATING-REVENUE> 233,870
<INCOME-TAX-EXPENSE> 12,067
<OTHER-OPERATING-EXPENSES> 208,673
<TOTAL-OPERATING-EXPENSES> 220,740
<OPERATING-INCOME-LOSS> 13,130
<OTHER-INCOME-NET> 1,158
<INCOME-BEFORE-INTEREST-EXPEN> 14,288
<TOTAL-INTEREST-EXPENSE> 5,300
<NET-INCOME> 8,988
0
<EARNINGS-AVAILABLE-FOR-COMM> 8,988
<COMMON-STOCK-DIVIDENDS> 8,123
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 38,531
<EPS-PRIMARY> 0 <F1>
<EPS-DILUTED> 0 <F1>
<FN>
<F1> All common stock owned by parent company; no EPS required.
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<CIK> 0000310339
<NAME> SOUTHERN OHIO COAL COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<BOOK-VALUE> PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 161,962
<OTHER-PROPERTY-AND-INVEST> 60,402
<TOTAL-CURRENT-ASSETS> 41,449
<TOTAL-DEFERRED-CHARGES> 3,845
<OTHER-ASSETS> 52,180
<TOTAL-ASSETS> 319,838
<COMMON> 5
<CAPITAL-SURPLUS-PAID-IN> 76,023
<RETAINED-EARNINGS> 24,064
<TOTAL-COMMON-STOCKHOLDERS-EQ> 100,092
0
0
<LONG-TERM-DEBT-NET> 45,000
<SHORT-TERM-NOTES> 0
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0
<LONG-TERM-DEBT-CURRENT-PORT> 16,681
0
<CAPITAL-LEASE-OBLIGATIONS> 19,542
<LEASES-CURRENT> 11,244
<OTHER-ITEMS-CAPITAL-AND-LIAB> 127,279
<TOT-CAPITALIZATION-AND-LIAB> 319,838
<GROSS-OPERATING-REVENUE> 230,925
<INCOME-TAX-EXPENSE> 11,036
<OTHER-OPERATING-EXPENSES> 208,673
<TOTAL-OPERATING-EXPENSES> 219,709
<OPERATING-INCOME-LOSS> 11,216
<OTHER-INCOME-NET> 1,158
<INCOME-BEFORE-INTEREST-EXPEN> 12,374
<TOTAL-INTEREST-EXPENSE> 5,300
<NET-INCOME> 7,074
0
<EARNINGS-AVAILABLE-FOR-COMM> 7,074
<COMMON-STOCK-DIVIDENDS> 8,123
<TOTAL-INTEREST-ON-BONDS> 0
<CASH-FLOW-OPERATIONS> 36,617
<EPS-PRIMARY> 0 <F1>
<EPS-DILUTED> 0 <F1>
<FN>
<F1> All common stock owned by parent company; no EPS required.
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<CIK> 0000073986
<NAME> OHIO POWER COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 2,557,379
<OTHER-PROPERTY-AND-INVEST> 173,792
<TOTAL-CURRENT-ASSETS> 446,031
<TOTAL-DEFERRED-CHARGES> 98,764
<OTHER-ASSETS> 475,791
<TOTAL-ASSETS> 3,751,757
<COMMON> 321,201
<CAPITAL-SURPLUS-PAID-IN> 462,285
<RETAINED-EARNINGS> 609,934
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,393,420
11,850
17,575
<LONG-TERM-DEBT-NET> 876,239
<SHORT-TERM-NOTES> 20,700
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 14,700
<LONG-TERM-DEBT-CURRENT-PORT> 152,281
0
<CAPITAL-LEASE-OBLIGATIONS> 77,467
<LEASES-CURRENT> 11,212
<OTHER-ITEMS-CAPITAL-AND-LIAB> 1,176,313
<TOT-CAPITALIZATION-AND-LIAB> 3,751,757
<GROSS-OPERATING-REVENUE> 1,900,427
<INCOME-TAX-EXPENSE> 112,815
<OTHER-OPERATING-EXPENSES> 1,511,536
<TOTAL-OPERATING-EXPENSES> 1,624,351
<OPERATING-INCOME-LOSS> 276,076
<OTHER-INCOME-NET> 17,825
<INCOME-BEFORE-INTEREST-EXPEN> 293,901
<TOTAL-INTEREST-EXPENSE> 77,191
<NET-INCOME> 216,710
8,076
<EARNINGS-AVAILABLE-FOR-COMM> 208,634
<COMMON-STOCK-DIVIDENDS> 144,704
<TOTAL-INTEREST-ON-BONDS> 50,249
<CASH-FLOW-OPERATIONS> 389,594
<EPS-PRIMARY> 0 <F1>
<EPS-DILUTED> 0 <F1>
<FN>
<F1> All common stock owned by parent company; no EPS required.
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<CIK> 0000073986
<NAME> OHIO POWER COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<BOOK-VALUE> PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 2,557,379
<OTHER-PROPERTY-AND-INVEST> 157,985
<TOTAL-CURRENT-ASSETS> 461,838
<TOTAL-DEFERRED-CHARGES> 98,764
<OTHER-ASSETS> 475,791
<TOTAL-ASSETS> 3,751,757
<COMMON> 321,201
<CAPITAL-SURPLUS-PAID-IN> 462,285
<RETAINED-EARNINGS> 609,934
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,393,420
11,850
17,575
<LONG-TERM-DEBT-NET> 876,239
<SHORT-TERM-NOTES> 20,700
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 14,700
<LONG-TERM-DEBT-CURRENT-PORT> 152,281
0
<CAPITAL-LEASE-OBLIGATIONS> 77,467
<LEASES-CURRENT> 11,212
<OTHER-ITEMS-CAPITAL-AND-LIAB> 1,176,313
<TOT-CAPITALIZATION-AND-LIAB> 3,751,757
<GROSS-OPERATING-REVENUE> 1,897,482
<INCOME-TAX-EXPENSE> 112,815
<OTHER-OPERATING-EXPENSES> 1,508,591
<TOTAL-OPERATING-EXPENSES> 1,621,406
<OPERATING-INCOME-LOSS> 276,076
<OTHER-INCOME-NET> 15,911
<INCOME-BEFORE-INTEREST-EXPEN> 291,987
<TOTAL-INTEREST-EXPENSE> 77,191
<NET-INCOME> 214,796
8,076
<EARNINGS-AVAILABLE-FOR-COMM> 206,720
<COMMON-STOCK-DIVIDENDS> 144,704
<TOTAL-INTEREST-ON-BONDS> 50,249
<CASH-FLOW-OPERATIONS> 387,680
<EPS-PRIMARY> 0 <F1>
<EPS-DILUTED> 0 <F1>
<FN>
<F1> All common stock owned by parent company; no EPS required.
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<CIK> 0000004904
<NAME> AMERICAN ELECTRIC POWER COMPANY, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-NET-UTILITY-PLANT> 11,416,209
<OTHER-PROPERTY-AND-INVEST> 917,497
<TOTAL-CURRENT-ASSETS> 1,407,780
<TOTAL-DEFERRED-CHARGES> 292,707
<OTHER-ASSETS> 1,871,497
<TOTAL-ASSETS> 15,905,690
<COMMON> 1,285,115
<CAPITAL-SURPLUS-PAID-IN> 1,731,695
<RETAINED-EARNINGS> 1,607,776
<TOTAL-COMMON-STOCKHOLDERS-EQ> 4,624,586
127,605
46,933
<LONG-TERM-DEBT-NET> 4,786,636
<SHORT-TERM-NOTES> 74,046
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 260,272
<LONG-TERM-DEBT-CURRENT-PORT> 296,289
47,750
<CAPITAL-LEASE-OBLIGATIONS> 353,361
<LEASES-CURRENT> 83,827
<OTHER-ITEMS-CAPITAL-AND-LIAB> 5,204,385
<TOT-CAPITALIZATION-AND-LIAB> 15,905,690
<GROSS-OPERATING-REVENUE> 5,823,521
<INCOME-TAX-EXPENSE> 373,228
<OTHER-OPERATING-EXPENSES> 4,462,465
<TOTAL-OPERATING-EXPENSES> 4,835,693
<OPERATING-INCOME-LOSS> 987,828
<OTHER-INCOME-NET> 7,848
<INCOME-BEFORE-INTEREST-EXPEN> 995,676
<TOTAL-INTEREST-EXPENSE> 375,125
<NET-INCOME> 579,980
40,571 <F1>
<EARNINGS-AVAILABLE-FOR-COMM> 579,980
<COMMON-STOCK-DIVIDENDS> 450,313
<TOTAL-INTEREST-ON-BONDS> 243,432
<CASH-FLOW-OPERATIONS> 1,240,898
<EPS-PRIMARY> $3.09
<EPS-DILUTED> $3.09
<FN>
<F1>Represents preferred stock dividend requirements of
subsidiaries; deducted before computation of net income.
</FN>
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<CIK> 0000004904
<NAME> AMERICAN ELECTRIC POWER COMPANY, INC.
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> MAR-31-1997
<BOOK-VALUE> PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 11,416,209
<OTHER-PROPERTY-AND-INVEST> 917,497
<TOTAL-CURRENT-ASSETS> 1,407,780
<TOTAL-DEFERRED-CHARGES> 292,707
<OTHER-ASSETS> 1,871,497
<TOTAL-ASSETS> 15,905,690
<COMMON> 1,285,115
<CAPITAL-SURPLUS-PAID-IN> 1,731,695
<RETAINED-EARNINGS> 1,607,776
<TOTAL-COMMON-STOCKHOLDERS-EQ> 4,624,586
127,605
46,933
<LONG-TERM-DEBT-NET> 4,786,636
<SHORT-TERM-NOTES> 74,046
<LONG-TERM-NOTES-PAYABLE> 0
<COMMERCIAL-PAPER-OBLIGATIONS> 260,272
<LONG-TERM-DEBT-CURRENT-PORT> 296,289
47,750
<CAPITAL-LEASE-OBLIGATIONS> 353,361
<LEASES-CURRENT> 83,827
<OTHER-ITEMS-CAPITAL-AND-LIAB> 5,204,385
<TOT-CAPITALIZATION-AND-LIAB> 15,905,690
<GROSS-OPERATING-REVENUE> 5,820,576
<INCOME-TAX-EXPENSE> 372,197
<OTHER-OPERATING-EXPENSES> 4,462,465
<TOTAL-OPERATING-EXPENSES> 4,834,662
<OPERATING-INCOME-LOSS> 985,914
<OTHER-INCOME-NET> 7,848
<INCOME-BEFORE-INTEREST-EXPEN> 993,762
<TOTAL-INTEREST-EXPENSE> 375,125
<NET-INCOME> 578,066
40,571 <F1>
<EARNINGS-AVAILABLE-FOR-COMM> 578,066
<COMMON-STOCK-DIVIDENDS> 450,313
<TOTAL-INTEREST-ON-BONDS> 243,432
<CASH-FLOW-OPERATIONS> 1,238,984
<EPS-PRIMARY> $3.08
<EPS-DILUTED> $3.08
<FN>
<F1>Represents preferred stock dividend requirements of
subsidiaries; deducted before computation of net income.
</FN>
</TABLE>
