<PAGE>
CENTRAL OHIO COAL COMPANY
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 26573
FOR THE QUARTER ENDED DECEMBER 31, 1997
CONTENTS
Page
Statements of Income and Retained Earnings 1
Balance Sheets 2-3
Information Concerning Mine Operations and
Capital Improvements 4
Calculation of Cost of Capital and
Statement of Cost of Commercial Coal Sold and Shipped 5
Statement of Cost of Operation 6
Analysis of Mining Plant in Service 7
Construction Expenditure Budget 8
<PAGE>
<PAGE>
CENTRAL OHIO COAL COMPANY
STATEMENT OF INCOME
FOR THE QUARTER ENDED DECEMBER 31, 1997
(UNAUDITED)
(in thousands)
OPERATING REVENUES $23,949
COST OF OPERATION 24,793
OPERATING LOSS (844)
NONOPERATING INCOME 436
LOSS BEFORE FEDERAL INCOME TAXES (408)
FEDERAL INCOME TAX CREDIT (408)
NET INCOME $ -
STATEMENT OF RETAINED EARNINGS
FOR THE QUARTER ENDED DECEMBER 31, 1997
(UNAUDITED)
(in thousands)
BALANCE AT BEGINNING OF PERIOD $ -
NET INCOME -
BALANCE AT END OF PERIOD $ -
The common stock of the Company is wholly owned by Ohio Power Company.
<PAGE>
<PAGE>
CENTRAL OHIO COAL COMPANY
BALANCE SHEET
(UNAUDITED)
December 31,
1997
(in thousands)
ASSETS
MINING PLANT:
Mining Plant in Service $64,304
Accumulated Depreciation and Amortization 50,673
NET MINING PLANT 13,631
OTHER PROPERTY AND INVESTMENTS 1,059
CURRENT ASSETS:
Cash and Cash Equivalents 14,335
Accounts Receivable:
General 1,724
Affiliated Companies 8,013
Coal 28
Materials and Supplies 7,004
Prepayments 448
TOTAL CURRENT ASSETS 31,552
DEFERRED INCOME TAXES 24,186
REGULATORY ASSETS 474
DEFERRED CHARGES 299
TOTAL $71,201
<PAGE>
<PAGE>
CENTRAL OHIO COAL COMPANY
BALANCE SHEET
(UNAUDITED)
December 31,
1997
(in thousands)
CAPITALIZATION AND LIABILITIES
SHAREHOLDER'S EQUITY:
Common Stock - Par Value $0.10:
Authorized - 100,000 Shares
Outstanding - 69,000 Shares $ 7
Retained Earnings -
TOTAL SHAREHOLDER'S EQUITY 7
LONG-TERM DEBT - Finance Obligations 182
OTHER NONCURRENT LIABILITIES:
Obligations Under Capital Leases 5,124
Accrued Postretirement Benefits Other Than Pensions 14,541
Accrued Reclamation Costs 27,217
Other Operating Reserves 5,274
TOTAL OTHER NONCURRENT LIABILITIES 52,156
CURRENT LIABILITIES:
Long-term Debt Due Within One Year 104
Accounts Payable:
General 1,842
Affiliated Companies 1,017
Accrued Reclamation Costs 5,230
Accrued Vacation Pay 778
Workers' Compensation Claims 855
Obligations Under Capital Leases 2,780
Other 3,353
TOTAL CURRENT LIABILITIES 15,959
DEFERRED CREDITS 2,897
TOTAL $71,201
<PAGE>
<PAGE>
CENTRAL OHIO COAL COMPANY
INFORMATION CONCERNING MINE OPERATIONS AND CAPITAL IMPROVEMENTS
FOR THE QUARTER ENDED DECEMBER 31, 1997
There were no significant changes with regard to the Company's
operations and mining plant during the quarter.
<PAGE>
<PAGE>
<TABLE>
CENTRAL OHIO COAL COMPANY
CALCULATION OF COST OF CAPITAL AND STATEMENT OF COST OF COMMERCIAL COAL SOLD AND SHIPPED
FOR THE QUARTER ENDED DECEMBER 31, 1997
(in thousands, except as noted)
<CAPTION> October through
December
1997
<S> <C>
I. Calculation of Cost-of-Capital Compensation:
A. Equity Investment at Beginning of Period:
Common Stock $ 7
B. Rate of Return Allowable per HCAR No. 26573:
10.29% per annum, 2.5725% per quarter .025725
C. Earnings Allowable on Equity Investment
1. Current Quarter $ -
2. Year-to-Date $ -
D. Net Income per Statement of Income $ -
Add: Interest Charges -
Less: Nonoperating Income 436
E. Applied Cost-of-Capital Billing Adder:
1. Current Quarter $ (436)
2. Year-to-Date $ (3,879)
II. Coal Billing Calculation:
A. Total Operating Expenses (a) $ 24,385
B. Add: Cost-of-Capital Billing Adder as Applied per E. 1. of Section I (436)
C. Cost Applicable to Current Quarter Coal Billings 23,949
Less: Cost Applicable to Coal Sold to Unaffiliated Companies 1,198
Cost Applicable to Current Quarter Coal Billings to Ohio Power $ 22,751
D. Coal Sold and Shipped in Current Quarter to Ohio Power (in tons) 391,504
E. Average Price per Ton to Ohio Power (in dollars) (C/D) $58.11
(a) As represented by "Cost of Operation" plus "Federal Income Taxes" reported in Statements of Income.
/TABLE
<PAGE>
<PAGE>
CENTRAL OHIO COAL COMPANY
STATEMENT OF COST OF OPERATION
FOR THE QUARTER ENDED DECEMBER 31, 1997
(in thousands)
Direct Labor-UMW* $ 511
Indirect Labor-UMW* 1,403
Benefits-UMW* 1,101
Salaries and Benefits-Nonunion 1,099
Operating Supplies 1,895
Repair Parts and Materials 2,336
Electricity and Other Utilities 686
Outside Services-Maintenance, Haulage and Reclamation 1,193
Taxes Other Than Federal Income Taxes** 510
Rental of Equipment 1,947
Depreciation, Depletion and Amortization 1,020
Mining Cost Normalization*** 6,320
Reclamation 2,693
Other Production Costs 2,081
Subtotal 24,795
Transfers of Production Costs (to)/from Coal Inventory (2)
Total $24,793
* United Mine Workers of America.
** Excludes FICA, Federal Unemployment and State Unemployment.
These costs are reflected in employee benefits.
*** Represents the deferral/accrual required to establish a selling
price based on forecasted results for the year.
The amount of mining cost normalization is established on an
"overall" company basis(i.e., not itemized) and is eliminated by
year-end.
<PAGE>
<PAGE>
CENTRAL OHIO COAL COMPANY
ANALYSIS OF MINING PLANT IN SERVICE
AND RELATED ACCUMULATED PROVISIONS FOR
DEPRECIATION AND AMORTIZATION
December 31, 1997
Net
Gross Accumulated Carrying
Cost Provisions Amount
(in thousands)
Description
Surface Lands $ 324 $ - $ 324
Mining Structures and Equipment 58,576 48,464 10,112
Coal Interests (net of depletion) 3,112 - 3,112
Leasehold Improvements 2,292 2,209 83
Total Mining Plant
in Service $64,304 $50,673 $13,631
<PAGE>
<PAGE>
CENTRAL OHIO COAL COMPANY
CONSTRUCTION EXPENDITURE BUDGET - 1998*
Description Budgeted Amount
(in thousands)
Dozer and Drill $1,600
Transportation Blanket 214
Mine Plant Blanket 130
Pre-Planning Blanket and Other 70
$2,014
*This budget does not include any possible lease transactions.