Adopted November 9, 1939 File No. 69-65
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
For the Year Ended December 31, 1993
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION UNDER RULE U-2 FROM THE
PROVISIONS OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
(Name of Company)
hereby files with the Securities and Exchange Commission, pursuant to
Rule U-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:
l. Name, State of organization, location and nature of business of
claimant and every subsidiary thereof.
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
Central Vermont Public Service Corporation ("CVPS") was incor-
porated in Vermont on August 20, 1929 and has its principal
executive office at 77 Grove Street, Rutland, Vermont.
The principal business of the Company is the generation and
purchase of electric energy and its transmission, distribution
and sale for light, power, heat and other purposes to about
134,000 customers in Middlebury, Randolph, Rutland, Springfield,
Windsor, Bradford, Bennington, Brattleboro, St. Johnsbury, St.
Albans, Woodstock, Poultney, Manchester and l63 other towns and
villages in Vermont.
CVPS also sells electric energy at wholesale in New Hampshire
to its subsidiary, Connecticut Valley Electric Company Inc.;
Woodsville Fire District Water and Light Dept.; New Hampshire
Electric Cooperative Inc.; and in Vermont to one small private
utility. It also interchanges economy and emergency power
through the New England Power Pool.
CONNECTICUT VALLEY ELECTRIC COMPANY INC.
Connecticut Valley Electric Company Inc. ("CVEC"), a
wholly-owned subsidiary of CVPS, was incorporated in New Hamp-
shire on December 9, 1948, and has its principal office at 104
Pleasant Street, Claremont, New Hampshire.
CVEC acquired on December 31, 1949, the business and properties
of CVPS located in New Hampshire and used in carrying on the
intrastate business of CVPS in that State. (See Form U-1 in
File No. 70-2075).
The principal business of CVEC is the purchase of electric en-
ergy and its transmission, distribution, and sale for light,
power, heat and other purposes to about 10,000 customers in
Claremont and 12 other towns and villages in New Hampshire.
VERMONT ELECTRIC POWER COMPANY, INC.
Vermont Electric Power Company, Inc. ("VELCO"), a subsidiary
of CVPS which owns 56.8% of its outstanding Common Stock, $l00
Par Value, and 46.6% of its outstanding Preferred Stock, $100
Par Value, was incorporated in Vermont on December 28, 1956 and
has its principal office at Pinnacle Ridge Road, Town of
Rutland, Vermont.
VELCO operates pursuant to the terms of the 1985 Four-Party
Agreement (as amended) with the Company and two other major
distribution companies in Vermont. Although the Company owns
56.8% of VELCO's outstanding common stock, the Four-Party
Agreement effectively restricts the Company's control of VELCO
and therefore VELCO's financial statements have not been
consolidated. The Four-Party Agreement continues in full force
and effect until May 1995 and will be extended for an additional
two-year term in May 1995, and every two years thereafter,
unless at least ninety (90) days prior to any two-year anniver-
sary any party shall notify the other parties in writing that
it desires to terminate the agreement as of such anniversary.
No such notification has been filed by the parties.
VELCO provides transmission services for the State of Vermont
acting by and through the Vermont Department of Public Service
and for all of the electric distribution utilities in the State
of Vermont. VELCO is reimbursed for its costs (as defined in
the agreements relating thereto) for the transmission of power
which VELCO transmits for the State of Vermont and the electric
distribution utilities.
VELCO also has agreements for single unit and system power
purchases which it resells at its cost to various electric
distribution utilities in the State of Vermont.
VELCO is also a participant with all of the major electric
utilities in New England in the New England Power Pool, acting
for itself and as agent for twenty-two other electric utilities
in Vermont, including Central Vermont, whereby the generating
and transmission facilities of all of the participants are
coordinated on a New England-wide basis through a central
dispatching agency to assure their operation and maintenance in
accordance with proper standards of reliability, and to attain
the maximum practicable economy for all of the participants
through the interchange of economy and emergency power.
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
Vermont Electric Transmission Company, Inc. ("VETCO"), a
wholly-owned subsidiary of VELCO, was incorporated in Vermont
on May 13, 1982 and has its principal office at Pinnacle Ridge
Road, Town of Rutland, Vermont.
VETCO was formed to construct, finance and operate the Vermont
portion of the high voltage DC transmission line which ties the
New England transmission system to the Hydro-Quebec trans-
mission system.
VERMONT YANKEE NUCLEAR POWER CORPORATION
Vermont Yankee Nuclear Power Corporation ("VY"), an affiliate
of CVPS which owns 31.3% of its outstanding common stock, $100
Par Value, was incorporated in Vermont on August 4, 1966 and
has its principal office at Ferry Road, Brattleboro, Vermont.
The business of VY is the ownership and operation of a nuclear
power plant at Vernon, Vermont and the sale of electricity
generated at the plant to its sponsoring stockholders.
C. V. REALTY, INC.
C. V. Realty, Inc. was incorporated in Vermont on August 30,
1968 and has its principal office at 77 Grove Street, Rutland,
Vermont.
C. V. Realty, Inc., a wholly-owned subsidiary of CVPS, was
formed for the purpose of owning, acquiring, buying, selling,
and leasing real and personal property and interests therein.
It is not the purpose of this Company to own or operate facil-
ities used for the generation, transmission or distribution of
electric energy as an electric utility company.
CENTRAL VERMONT PUBLIC SERVICE CORPORATION -
BRADFORD HYDROELECTRIC, INC.
Central Vermont Public Service Corporation - Bradford Hydro-
electric, Inc., ("Bradford") a wholly-owned subsidiary of CVPS
was incorporated in Vermont on November 3, 1981 and has its
principal office at 77 Grove Street, Rutland, Vermont.
Bradford was formed for the purposes of acquiring and cons-
tructing a hydroelectric project having a capacity of 1500 KW
in Bradford, Vermont and leasing said project to CVPS.
For financial reporting purposes, Bradford's financial data is
included with CVPS on the Consolidating Financial Statements.
CENTRAL VERMONT PUBLIC SERVICE CORPORATION -
EAST BARNET HYDROELECTRIC, INC.
Central Vermont Public Service Corporation - East Barnet
Hydroelectric, Inc., ("East Barnet") a wholly-owned subsidiary
of CVPS was incorporated in Vermont on November 3, 1981 and has
its principal office at 77 Grove Street, Rutland, Vermont.
East Barnet was formed for the purpose of acquiring and
constructing a hydroelectric project having a capacity of
2200 KW in East Barnet, Vermont and leasing said project to
CVPS.
For financial reporting purposes, East Barnet's financial data
is included with CVPS on the Consolidating Financial Statements.
CV ENERGY SERVICES, INC.
CV Energy Services, Inc. ("CVES") was incorporated in Vermont
on November 25, 1986 and has its principal office at 77 Grove
Street, Rutland, Vermont.
CV Energy Services, Inc., formerly a wholly-owned subsidiary of
CV Energy Resources, Inc., became a wholly-owned subsidiary of
CVPS on August 3, 1992. It was formed for the purpose of en-
gaging in energy-related businesses. The dissolution of CVES
occurred on March 16, 1993.
SMARTENERGY SERVICES, INC.
SmartEnergy Services, Inc. ("SES") was incorporated in Vermont
on January 8, 1993 and has its principal office at 77 Grove
Street, Rutland, Vermont.
SES is a wholly-owned subsidiary of CVPS was formed for the pur-
pose of engaging in the sale or rental of electric water
heaters and other energy-efficient products.
CV ENERGY RESOURCES, INC.
CV Energy Resources, Inc. ("CVER") was incorporated in Vermont
on August 4, 1986 and has its principal office at 71 Allen
Street, Rutland, Vermont.
CVER is a wholly-owned subsidiary of CVPS and was formed pri-
marily for the purpose of investing in energy supply projects.
CVER has one wholly owned subsidiary, Catamount Energy Corpor-
ation. Effective August 3, 1992, Catamount Rumford, Inc.,
Equinox Vermont Corporation and Appomattox Vermont Corporation
were transferred to Catamount Energy Corporation.
CATAMOUNT ENERGY CORPORATION
Catamount Energy Corporation ("CEC") was incorporated on
June 23, 1992 and has its principal office at 71 Allen Street,
Rutland, Vermont.
CEC is a wholly-owned subsidiary of CVER and was formed pri-
marily for the purpose of investing in energy supply projects.
CEC has four wholly owned subsidiaries: Catamount Rumford,
Inc., Equinox Vermont Corporation, Appomattox Vermont
Corporation and Catamount Williams Lake, Ltd.
CATAMOUNT RUMFORD, INC.
Catamount Rumford, Inc., formerly CV Rumford, Inc., was incor-
porated in Vermont on April 11, 1989 and has its principal
office at 71 Allen Street, Rutland, Vermont.
Catamount Rumford, Inc. is a wholly-owned subsidiary of CEC
and was formed for the purpose of allowing participation as
a limited partner in the Rumford Regulus Power Partnership,
a partner in an 85 megawatt cogeneration facility located in
Rumford, Maine.
For financial reporting purposes, Catamount Rumford, Inc.'s
financial data is included with CEC on the Consolidating Finan-
cial Statements.
EQUINOX VERMONT CORPORATION
Equinox Vermont Corporation was incorporated in Vermont on
May 10, 1990 and has its principal office at 71 Allen Street,
Rutland, Vermont.
Equinox Vermont Corporation is a wholly-owned subsidiary of
CEC and was formed for the purpose of allowing participation
as a partner in Ryegate Associates, a partnership formed to
develop an 18.4 MW wood-fired generating facility in East
Ryegate, Vermont.
For financial reporting purposes, Equinox Vermont Corporation's
financial data is included with CEC on the Consolidating Finan-
cial Statements.
APPOMATTOX VERMONT CORPORATION
Appomattox Vermont Corporation was incorporated in Vermont on
October 24, 1991 and has its principal office at 71 Allen
Street, Rutland, Vermont.
Appomattox Vermont Corporation is a wholly-owned subsidiary of
CEC and was formed for the purpose of acquiring a 50% leasehold
interest in a coal-and wood-fired cogeneration facility located
in Hopewell, Virginia.
For financial reporting purposes, Appomattox Vermont Corpora-
tion's financial data is included with CEC on the Consolidating
Financial Statements.
CATAMOUNT WILLIAMS LAKE, LTD.
Catamount Williams Lake, Inc. was incorporated in Vermont on
December 14, 1992 and has its principal office at 71 Allen
Street, Rutland, Vermont.
Catamount Williams Lake, Ltd. is a wholly-owned subsidiary of
CEC and was formed primarily for the purpose of participating
in a limited partnership that will own and operate a 60 MW
wood-fired generating project in Williams Lake, British
Columbia, Canada.
For financial reporting purposes, Catamount Williams Lake,
Ltd.'s financial data is included with CEC on the Consolidating
Financial Statements.
2. A brief description of the properties of claimant and each of
its subsidiary public utility companies used for the generation,
transmission, and distribution of electric energy for sale, or for the
production, transmission, and distribution of natural or manufactured
gas, indicating the location of principal generating plants, trans-
mission lines, producing fields, gas manufacturing plants, and electric
and gas distribution facilities, including all such properties which
are outside the State in which claimant and its subsidiaries are
organized and all transmission or pipelines which deliver or receive
electric energy or gas at the borders of such State.
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
CVPS's electric properties consist of five principal distri-
bution systems, namely, the so-called Central, Bennington, St.
Albans, St. Johnsbury and Brattleboro systems. All, except the
Brattleboro system, are connected with the transmission facil-
ities of VELCO (an affiliate of CVPS) and all except the St.
Albans system are interconnected at the Vermont State line with
the facilities of New England Power Company (not an affiliate
of CVPS); also the Brattleboro System is directly connected at
the Vermont State line with the facilities of the Public Service
Company of New Hampshire (not an affiliate of CVPS). The elec-
tric generating plants of the Company consist of l8 hydroelec-
tric generating stations, two gas turbine generating stations,
and one diesel-electric generating station, of which one hydro-
electric generating station is located in New York and the
remainder in Vermont.
The electric systems of CVPS include about 613 miles of trans-
mission lines, about 7,136 miles of overhead distribution lines
and about 192 miles of underground distribution lines, which are
located in Vermont except for about 23 miles of transmission
lines which are located in located in New York.
CVPS is a stockholder, together with other New England utili-
ties, in four nuclear generating companies. CVPS is entitled
to a percentage of the power output of each of such companies,
as follows:
Vermont Yankee Nuclear Power Corporation in Vermont
(30.428% -156.4 MW); Maine Yankee Atomic Power Company in
Maine (1.7961% -14.881 MW); Connecticut Yankee Atomic Power
Company in Connecticut (2% - 11.6 MW); and Yankee Atomic
Electric Company in Massachusetts (3.5% - 6.153 MW).
CVPS is a participant with other New England utilities in
three major electric generating stations pursuant to joint own-
ership agreements under each of which the Lead Participant has
constructed and is operating the plant for the Participants
(including itself) as tenants-in-common. The plants and loca-
tions, and the amount of CVPS's participation is as follows:
Wyman #4 in Maine (1.7769% - 11 MW); Millstone #3 in
Connecticut (1.7303% - 20 MW); Joseph C. McNeil Generat-
ing Station in Vermont (20% - 10.76 MW).
The Company, along with eight other Vermont Joint-Owners, owns
and operates a 200 MW converter station and associated trans-
mission line in Highgate, Vermont. The station and the ass-
ociated transmission line interconnects the VELCO system with
the system of Hydro-Quebec. The Company is a 46.08% owner of
this project.
CONNECTICUT VALLEY ELECTRIC COMPANY INC.
CVEC's electric properties consist of two principal systems in
New Hampshire which are not interconnected with each other but
each of which is connected directly with facilities of CVPS.
The electric systems of CVEC include about two miles of trans-
mission lines, about 422 miles of overhead distribution lines
and about nine miles of underground distribution lines.
VERMONT ELECTRIC POWER COMPANY, INC.
VELCO has no generating facilities but has approximately 483
miles of transmission lines and twenty-five associated substa-
tions located in the State of Vermont. VELCO's properties
interconnect with the lines of the NYPA at the New York-Vermont
State line near Plattsburgh, New York; with the transmission
facilities of Niagara Mohawk Power Corporation at the
New York-Vermont State line near Whitehall, New York, and
North Troy, New York; with lines of New England Power Company
at or near the New Hampshire-Vermont State line at Wilder,
Vermont and at Monroe, New Hampshire, Claremont, New Hampshire,
and at the Massachusetts-Vermont State line near North Adams,
Massachusetts; with the lines of Public Service Company of New
Hampshire at or near the New Hampshire-Vermont State line at
Littleton, New Hampshire, Ascutney, Vermont and Vernon, Vermont;
and with the lines of Hydro-Quebec at the Quebec/Vermont border
near Highgate, Vermont through an AC/DC/AC converter and 7.6
miles of transmission lines jointly owned by several Vermont
utilities. All of its transmission facilities are in Vermont
except for approximately 4.3 miles of transmission lines which
are located in New Hampshire.
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
VETCO has approximately 52 miles of high voltage DC trans-
mission line connecting at the Quebec-Vermont border in the Town
of Norton, Vermont with the transmission line of Hydro-Quebec
and connecting at the Vermont-New Hampshire border near New Eng-
land Power Company's Moore Hydroelectric Generating Station with
the transmission line of New England Electric Transmission
Corporation, a subsidiary of New England Electric System (not
an affiliate of CVPS).
VERMONT YANKEE NUCLEAR POWER CORPORATION
VY declared its nuclear-power electric generating plant with a
capacity of about 514 megawatts (net) in commercial operation
on November 30, 1972. The plant is located on the west bank
of the Connecticut River in Vernon, Vermont.
CENTRAL VERMONT PUBLIC SERVICE CORPORATION -
BRADFORD HYDROELECTRIC, INC.
Electric properties of Bradford consist of a 1500 KW hydro-
electric generating station and associated facilities at Brad-
ford, Vermont involving real estate of 10.2 acres.
CENTRAL VERMONT PUBLIC SERVICE CORPORATION -
EAST BARNET HYDROELECTRIC, INC.
Electric properties of East Barnet consist of a 2200 KW hydro-
electric generating station and associated facilities at East
Barnet, Vermont, involving real estate of 25.54 acres.
3. The following information for the last calendar year is
submitted with respect to claimant and each of its subsidiary public
utility companies:
a) Number of KWH of electric energy sold (at retail or
wholesale), and Mcf. of manufactured gas distributed
at retail.
<TABLE>
<CAPTION>
1993
VY(F1) CVPS(F2) CVEC
Electic:
<C> <C> <C>
3,372,147,700 KWH 3,407,063,153 KWH 160,498,309 KWH
<S>
Gas: <S> <S>
None None None
(FN)
(F1)The sales of electric energy shown herein of VY include sales to VELCO.
(F2)The sales of electric energy shown herein of CVPS include sales to CVEC
and VELCO.
</TABLE>
<TABLE>
<CAPTION>
1993
VELCO
<S> <C>
Electric 884,463,420 KWH
<S>
Gas None
</TABLE>
(b) Number of KWH of electric energy and Mcf. of natural
or manufactured gas distributed at retail outside the
State in which each such company is organized.
<TABLE>
<CAPTION>
1993
VY CVPS CVEC
<S> <C> <S>
Electric:
None 38,399 KWH None
<S> <S> <S>
Gas:
None None None
1993
VELCO
<S> <S>
Electric None
Gas None
</TABLE>
(c) Number of KWH of electric energy and Mcf. of natural
or manufactured gas sold at wholesale outside the
State in which each such company is organized or at
the state line.
<TABLE>
<CAPTION>
1993
VY CVPS(F1) CVEC
<S> <C> <S>
Electric(F2):
None 160,662,340 KWH None
<S>
Gas: <S> <S>
None None None
(FN)
(F1)The sales of electric energy shown herein of CVPS include sales to CVEC.
(F2)Deliveries made at the step-up substation at the site.
</TABLE>
<TABLE>
<CAPTION>
1993
VELCO
<S> <S>
Electric None
Gas None
</TABLE>
(d) Number of KWH of electric energy and Mcf. of natural
or manufactured gas purchased outside the State in
which each such company is organized, or at the state
line.
<TABLE>
1993
VY CVPS CVEC
<S> <C> <C>
Electric:
None 1,081,637,344 KWH 127,250,900 KWH
<S> <S> <S>
Gas:
None None None
1993
VELCO
<S> <C>
Electric 639,989,390 KWH
Gas None
</TABLE>
Central Vermont Public Service Corporation -
Bradford Hydroelectric, Inc.
Bradford leases one hydroelectric generating station, which went into
service December 20, 1982 to CVPS.
Central Vermont Public Service Corporation -
East Barnet Hydroelectric, Inc.
East Barnet leases one hydroelectric generating station, which went
into service September 1, 1984 to CVPS.
EXHIBIT A
Exhibit A consists of a consolidating statement of income and
retained earnings of the claimant and its subsidiary companies for the
last calendar year together with a consolidating balance sheet of
claimant and its subsidiary companies as of the close of such calendar
year.
See attachments for consolidating financial statements of CVPS
and its subsidiaries for the year 1993.
The above-named claimant has caused this statement to be duly
executed on its behalf by its authorized officer on this 24th day
of February 1994.
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
(Name of Claimant)
s/s James M. Pennington
By: ____________________________________
Controller
Attest:
s/s Carole L. Root
____________________________________
Assistant Secretary
<TABLE>
<CAPTION>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION 1 of 2
AND ITS SUBSIDIARIES
Consolidating Statement of Income and Retained Earnings
Year ended December 31, 1993
(Dollars in thousands)
Consol-
idating TOTAL
CVPS-CONS VELCO VETCO VY Entries CONS
---------- ---------- ---------- ---------- ---------- -----------
56.8% (Note C) 31.3%
Owned Owned
<S> <C> <C> <C> <C> <C> <C>
Operating revenues $279,389 $17,891 $6,509 $180,145 ($68,296) $415,638
-------- ------- ------ -------- -------- ---------
Operating expenses:
Operation:
Purchased power 146,583 - - - (54,869) 91,714
Production and transmission 21,188 1,629 23 19,526 (13,301) 29,065
Other operation 35,933 3,651 163 74,012 (126) 113,633
Maintenance 11,719 1,898 149 31,406 - 45,172
Depreciation 15,402 3,753 2,542 13,707 - 35,404
Decommissioning expense - - - 11,315 - 11,315
Other taxes, principally property taxes 10,022 1,989 519 9,961 - 22,491
Taxes on income (Note B) 12,496 547 534 3,777 - 17,354
-------- ------- ------ -------- -------- ---------
Total operating expenses 253,343 13,467 3,930 163,704 (68,296) 366,148
-------- ------- ------ -------- -------- ---------
Operating income 26,046 4,424 2,579 16,441 - 49,490
Other income and deductions:
Equity in earnings of companies not
consolidated 3,613 828 - - (3,960) 481
Allowance for equity funds during const. 35 - - 92 - 127
Other income, net 966 276 90 1,318 - 2,650
Other taxes (139) - - - - (139)
Benefit (provision) for income taxes (276) - - (623) - (899)
-------- ------- ------ -------- -------- ---------
Total operating and other income 30,245 5,528 2,669 17,228 (3,960) 51,710
Net interest expense 8,953 4,153 1,841 9,434 - 24,381
-------- ------- ------ -------- -------- ---------
Net income before minority interest 21,292 1,375 828 7,794 (3,960) 27,329
Minority interest in net income - - - - (6,037) (6,037)
-------- ------- ------ -------- -------- ---------
Net income after minority interest 21,292 1,375 828 7,794 (9,997) 21,292
Retained Earnings, January 1 55,438 233 107 1,178 (1,518) 55,438
-------- ------- ------ -------- -------- ---------
76,730 1,608 935 8,972 (11,515) 76,730
Dividends Declared: -------- ------- ------ -------- -------- ---------
Preferred stock 2,658 875 - - (875) 2,658
Common stock 12,193 540 875 7,905 (9,320) 12,193
-------- ------- ------ -------- -------- ---------
Retained Earnings, December 31 $61,879 $193 $60 $1,067 ($1,320) $61,879
======== ======= ====== ======== ======== =========
</TABLE>
<TABLE>
<CAPTION>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION 2 of 2
AND ITS SUBSIDIARIES
Consolidating Statement of Income and Retained Earnings
Year ended December 31, 1993
(Dollars in thousands)
Reclassi-
fying &
C.V. Consol-
Realty, idating
CVPS CVEC Inc. CVER SES CEC Entries CVPS-CONS
---------- ---------- ---------- ---------- ---------- ---------- ----------- ---------
(Note A) (Note A) (Note A) (Note A) (Note A)
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Operating revenues $271,758 $16,699 $ - $ - $1,806 $92 ($10,966) $279,389
-------- ------- ------- ------- ------ ------- ------- --------
Operating expenses:
Operation:
Purchased power 142,630 12,751 - - - - (8,798) 146,583
Production and transmission 21,188 - - - - - - 21,188
Other operation 33,829 2,274 - - 874 1,158 (2,202) 35,933
Maintenance 11,347 372 - - 6 19 (25) 11,719
Depreciation 14,991 411 3 - 353 20 (376) 15,402
Other taxes, principally property taxes 9,511 511 - - 55 50 (105) 10,022
Taxes on income (Note B) 12,616 44 1 12 210 856 (1,243) 12,496
-------- ------- ------- ------- ------ ------- ------- --------
Total operating expenses 246,112 16,363 4 12 1,498 2,103 (12,749) 253,343
-------- ------- ------- ------- ------ ------- ------- --------
Operating income (loss) 25,646 336 (4) (12) 308 (2,011) 1,783 26,046
Other income and deductions:
Equity in earnings of companies not
consolidated 5,250 - - - - 3,557 (5,194) 3,613
Allow. for equity funds during const. 35 - - - - - - 35
Other income (expenses), net (1,459) 46 10 - (22) (469) 2,860 966
Other taxes (31) - - - - (3) (105) (139)
Benefit (provision) for income taxes 728 1 - - 15 223 (1,243) (276)
-------- ------- ------- ------- ------- ------- ------- --------
Total operating and other income (loss) 30,169 383 6 (12) 301 1,297 (1,899) 30,245
Net interest expense 8,877 281 - - 12 46 (263) 8,953
-------- ------- ------- ------- ------- ------- ------- --------
Net income (loss) 21,292 102 6 (12) 289 1,251 (1,636) 21,292
Retained Earnings, January 1 55,438 2,035 169 (2,226) - 1,446 (1,424) 55,438
-------- ------- ------- ------- ------- ------- ------- --------
76,730 2,137 175 (2,238) 289 2,697 (3,060) 76,730
Dividends Declared: -------- ------- ------- ------- ------- ------- ------- --------
Preferred stock 2,658 - - - - - - 2,658
Common stock 12,193 305 - - - - (305) 12,193
-------- ------- ------- ------- ------- ------- ------- --------
Total dividends 14,851 305 - - - - (305) 14,851
-------- ------- ------- ------- ------- ------- ------- --------
Retained Earnings, December 31 $61,879 $1,832 $175 ($2,238) $289 $2,697 ($2,755) $61,879
======== ======= ======= ======= ======= ======= ======= ========
</TABLE>
<TABLE>
<CAPTION>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION 1 of 4
AND ITS SUBSIDIARIES
Consolidating Balance Sheet
Year ended December 31, 1993
(Dollars in thousands)
Consol-
idating TOTAL
CVPS-Cons VELCO VETCO VY Entries CONS
---------- ---------- ---------- ---------- ---------- -----------
56.8% (Note C) 31.3%
Owned Owned
Assets
<S> ------ <C> <C> <C> <C> <C> <C>
Utility plant, at original cost $421,929 $90,407 $47,763 $374,736 $ - $934,835
Less accumulated depreciation 112,299 42,523 17,792 198,389 - 371,003
-------- ------- ------- -------- -------- ----------
309,630 47,884 29,971 176,347 - 563,832
Construction work in progress 8,388 - - 597 - 8,985
-------- ------- ------- -------- -------- ----------
318,018 47,884 29,971 176,944 - 572,817
Nuclear fuel 6,289 - - 356,762 - 363,051
Less accumulated amortization 4,899 - - 324,258 - 329,157
-------- ------- ------- -------- -------- ----------
Net utility plant 319,408 47,884 29,971 209,448 - 606,711
-------- ------- ------- -------- -------- ----------
Investments in affiliates, at equity (Note D)
Nuclear generating companies 21,012 - - - (16,811) 4,201
Other affiliated companies 5,951 5,260 - - (11,211) 0
-------- ------- ------- -------- -------- ----------
Total 26,963 5,260 - - (28,022) 4,201
-------- ------- ------- -------- -------- ----------
Nonutility property, less accumulated
depreciation of $16 parent company
and $3,497 consolidated 3,203 - - - - 3,203
-------- ------- ------- -------- -------- ----------
Nonutility Investments 30,123 - - - - 30,123
-------- ------- ------- -------- -------- ----------
Current assets:
Cash 823 246 62 172 - 1,303
Temporary cash investments 1,162 - - 2,177 - 3,339
Accounts receivable, less allowance for
uncollectible accounts $896 parent
company and $936 consolidated 17,763 8,267 - 12,151 - 38,181
Accounts receivable - affiliates 864 2,380 7 4,282 (7,533) 0
Notes receivable - affiliates - 700 - - (700) 0
Unbilled revenue 10,959 150 - - - 11,109
Interest receivable (13) 83 - - - 70
Materials and supplies, at average cost 4,641 1,328 124 17,082 - 23,175
Prepayments 3,098 443 483 3,949 - 7,973
Other current assets 4,821 1,584 - 323 - 6,728
-------- ------- ------- -------- -------- ----------
Total current assets 44,118 15,181 676 40,136 (8,233) 91,878
-------- ------- ------- -------- -------- ----------
Regulatory assets and other deferred charges 56,335 1,874 216 201,955 - 260,380
-------- ------- ------- -------- -------- ----------
Total assets $480,150 $70,199 $30,863 $451,539 ($36,255) $996,496
======== ======= ======= ======== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION 2 of 4
AND ITS SUBSIDIARIES
Consolidating Balance Sheet
Year ended December 31, 1993
(Dollars in thousands)
Consol-
idating TOTAL
CVPS-CONS VELCO VETCO VY Entries CONS
---------- ---------- ---------- ---------- ---------- -----------
56.8% (Note C) 31.3%
Capitalization and Liabilities Owned Owned
------------------------------
<S>
Capitalization: <C> <C> <C> <C> <C> <C>
Common stock (Note E) $69,373 $6,000 $1 $40,001 ($46,002) $69,373
Other paid-in capital 44,543 - 5,199 14,227 (9,304) 54,665
Capital stock expense (1,959) - - - - (1,959)
Retained earnings 61,879 193 60 1,067 (1,320) 61,879
Treasury stock, at cost
(7,533 common shares) (Note E) - - - (1,131) - (1,131)
-------- ------- ------- -------- -------- ----------
Total common stock equity 173,836 6,193 5,260 54,164 (56,626) 182,827
-------- ------- ------- -------- -------- ----------
Cumulative preferred and preference
stock (Note F) 35,054 10,000 - - (10,000) 35,054
Return of capital - (4,800) - - 4,800 0
First mortgage bonds 105,730 37,679 - 75,845 - 219,254
Notes payable 16,689 16,880 - - 33,569
Other long-term debt - 264 - 3,791 - 4,055
-------- ------- ------- -------- -------- ----------
157,473 43,143 16,880 79,636 (5,200) 291,932
-------- ------- ------- -------- -------- ----------
Minority interest - - - - 33,804 33,804
-------- ------- ------- -------- -------- ----------
Total Capitalization 331,309 49,336 22,140 133,800 (28,022) 508,563
-------- ------- ------- -------- -------- ----------
Long-term lease arrangements 21,553 22 - - - 21,575
Current liabilities:
Notes payable - banks 1,356 - 1,550 - - 2,906
Notes payable - affiliates - - 700 - (700) 0
Long-term debt - current portion 4,850 3,918 2,240 - - 11,008
Accounts payable 7,859 8,223 26 19,105 - 35,213
Accounts payable - affiliates 6,631 671 31 200 (7,533) 0
Accrued interest 564 284 64 635 - 1,547
Accrued income taxes 788 55 26 1,206 - 2,075
Other current liabilities 24,577 29 - 10,875 - 35,481
-------- ------- ------- -------- -------- ----------
Total current liabilities 46,625 13,180 4,637 32,021 (8,233) 88,230
-------- ------- ------- -------- -------- ----------
Accumulated deferred income taxes 52,028 1,511 2,669 38,247 - 94,455
Deferred investment tax credits 8,785 931 1,108 7,013 - 17,837
Accrued decommissioning costs - - - 134,614 - 134,614
Deferred credits and misc. reserves 19,850 5,219 309 105,844 - 131,222
-------- ------- ------- -------- -------- ----------
80,663 7,661 4,086 285,718 - 378,128
-------- ------- ------- -------- -------- ----------
Total capitalization and liabilities $480,150 $70,199 $30,863 $451,539 ($36,255) $996,496
======== ======= ======= ======== ======== ==========
</TABLE>
<TABLE>
<CAPTION>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION 3 of 4
AND ITS SUBSIDIARIES
Consolidating Balance Sheet
Year ended December 31, 1993
(Dollars in thousands)
C.V. Consol-
Realty, idating
CVPS CVEC Inc. CVER SES CEC Entries CVPS-Cons
---------- ---------- ---------- ---------- ---------- ---------- ----------- ---------
(Note A) (Note A) (Note A) (Note A) (Note A)
Assets
<S> ------ <C> <C> <C> <C> <C> <C> <C> <C>
Utility plant, at original cost $411,357 $10,572 $ - $ - $ - $ - $ - $421,929
Less accumulated depreciation 108,652 3,647 - - - - - 112,299
-------- ------ ------ ------ ------ ------- -------- --------
302,705 6,925 - - - - - 309,630
Construction work in progress 8,266 122 - - - - - 8,388
-------- ------ ------ ------ ------ ------- -------- --------
310,971 7,047 - - - - - 318,018
Nuclear fuel 6,289 - - - - - - 6,289
Less accumulated amortization 4,899 - - - - - - 4,899
-------- ------ ------ ------ ------ ------- -------- --------
Net utility plant 312,361 7,047 - - - - - 319,408
-------- ------ ------ ------ ------ ------- -------- --------
Investments in affiliates,
at equity (Note D)
Nuclear generating companies 21,012 - - - - - - 21,012
Other affiliated companies 37,308 - - - - - (31,357) 5,951
-------- ------ ------ ------ ------ ------- -------- --------
Total 58,320 - - - - - (31,357) 26,963
-------- ------ ------ ------ ------ ------- -------- --------
Nonutility property, less accumulated
depreciation of $16 parent company
and $3,497 consolidated 397 - 56 - 2,201 549 - 3,203
-------- ------ ------ ------ ------ ------- -------- --------
Nonutility Investments - - - - 1,216 25,957 2,950 30,123
-------- ------ ------ ------ ------ ------- -------- --------
Current assets:
Cash 639 73 14 1 2 94 - 823
Temporary cash investments 257 6 186 - - 713 - 1,162
Accounts receivable, less allowance for
uncollectible accounts $896 parent
company and $936 consolidated 16,129 1,618 - - 3 13 - 17,763
Accounts receivable - affiliates 3,567 14 56 - 158 483 (3,414) 864
Accrued utility revenue 10,708 251 - - - - - 10,959
Interest receivable 25 - - - - 2 (40) (13)
Materials and supplies, at average cost 4,623 - - - 18 - - 4,641
Prepayments 2,923 116 - - - 59 - 3,098
Other current assets 4,800 18 - - - 2,953 (2,950) 4,821
-------- ------ ---- ---- ------ ------- -------- --------
Total current assets 43,671 2,096 256 1 181 4,317 (6,404) 44,118
-------- ------ ---- ---- ------ ------- -------- --------
Regulatory assets and other deferred charges 56,280 57 - - - (2) - 56,335
-------- ------ ---- ---- ------ ------- -------- --------
Total Assets $471,029 $9,200 $312 $1 $3,598 $30,821 ($34,811) $480,150
======== ====== ==== ==== ====== ======= ======== ========
</TABLE>
<TABLE>
<CAPTION>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION 4 of 4
AND ITS SUBSIDIARIES
Consolidating Balance Sheet
Year ended December 31, 1993
(Dollars in thousands)
C.V. Consol-
Realty, idating
CVPS CVEC Inc. CVER SES CEC Entries CVPS-CONS
---------- ---------- ---------- ---------- ---------- ---------- ----------- ---------
(Note A) (Note A) (Note A) (Note A) (Note A)
Capitalization and Liabilities
------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Capitalization:
Common stock (Note E) $69,373 $700 $30 $ - $ - $ - ($730) $69,373
Other paid-in capital 44,543 - - 2,183 2,173 21,016 (25,372) 44,543
Capital stock expense (1,959) - - - - - - (1,959)
Retained earnings 61,879 1,832 175 (2,238) 289 2,697 (2,755) 61,879
-------- ------ ------ ------ ------- ------- -------- --------
Total common stock equity 173,836 2,532 205 (55) 2,462 23,713 (28,857) 173,836
-------- ------ ------ ------ ------- ------- -------- --------
Cumulative preferred and preference
stock (Note F) 35,054 - - - - - - 35,054
First mortgage bonds 105,730 - - - - - - 105,730
Notes payable 16,300 2,500 - - - 389 (2,500) 16,689
-------- ------ ------ ------ ------- ------- -------- --------
157,084 2,500 - - - 389 (2,500) 157,473
-------- -------- -------- -------- ------- ------- -------- --------
Total Capitalization 330,920 5,032 205 (55) 2,462 24,102 (31,357) 331,309
-------- -------- -------- -------- ------- ------- -------- --------
Long-term lease arrangements 21,553 - - - - - - 21,553
Current liabilities:
Notes Payable - banks 500 160 - - 696 - 1,356
Long-term debt - current portion 4,850 - - - - - - 4,850
Accounts payable 7,145 676 - - 16 22 - 7,859
Accounts payable - affiliates 7,336 1,999 106 74 130 400 (3,414) 6,631
Accrued interest 545 40 - - 4 15 (40) 564
Accrued income taxes 735 - - 12 - 41 - 788
Other current liabilities 24,083 443 - - 1 50 - 24,577
-------- ------ ------ ------ ------- ------- -------- --------
Total current liabilities 45,194 3,318 106 86 847 528 (3,454) 46,625
-------- ------ ------ ------ ------- ------- -------- --------
Accumulated deferred income taxes 45,017 560 1 (30) 289 6,191 - 52,028
Deferred investment tax credits 8,648 137 - - - - - 8,785
Deferred credits 19,697 153 - - - - - 19,850
-------- ------ ------ ------ ------- ------- -------- --------
73,362 850 1 (30) 289 6,191 - 80,663
-------- ------ ------ ------ ------- ------- -------- --------
Total capitalization & liabilities $471,029 $9,200 $312 $1 $3,598 $30,821 ($34,811) $480,150
======== ====== ====== ====== ======= ======= ======== ========
</TABLE>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
AND ITS SUBSIDIARIES
Notes to Consolidating Financial Statements
For the Year Ended December 31, 1993
Note A-Consolidation:
The consolidating financial statements include the accounts of
Central Vermont Public Service Corporation (CVPS), its wholly owned
subsidiaries, Connecticut Valley Electric Company Inc. (CVEC),
C.V. Realty, Inc., CV Energy Resources, Inc. (CVER), SmartEnergy
Services, Inc. (SES) and Catamount Energy Corporation, Inc. (CEC),
which compose CVPS Consolidated. In addition, for purposes of this
SEC Form U-3A-2, the consolidating financial statements include the
accounts of CVPS's affiliates, Vermont Electric Power Company, Inc.
(VELCO) 56.8% owned, Vermont Electric Transmission Company, Inc.
(VETCO), a wholly owned subsidiary of VELCO and Vermont Yankee Nuclear
Power Corporation (VY) 31.3% owned, which constitutes all affiliates
consolidated.
CVPS follows the equity method of accounting for its
investments in affiliates. See Note D.
Note B-Income taxes:
CVPS and its wholly owned subsidiaries
As of January 1, 1993, the Company adopted Statement of Financial
Accounting Standards (SFAS) No. 109, which requires an asset and
liability approach to determine income tax liabilities. The
pronouncement recognizes tax assets and liabilities for the cumulative
effect of all temporary differences between financial statement carrying
amounts and the tax bases of assets and liabilities including the impact
of (1) income tax benefits associated with temporary differences
previously passed on to the Company's customers (flow-through), (2) the
equity component of allowance for funds used during construction and
(3) deferred investment tax credits. The new standard also requires the
adjustment of deferred tax liabilities or assets for an enacted change
in tax laws or rates, among other things. Prior year financial state-
ments have not been restated to apply the provisions of SFAS No. 109.
The income statement impact of adopting SFAS No. 109 was not material
and therefore no cumulative effect of a change in accounting method is
separately reflected in the accompanying financial statements. See
Note 10. The deferred method under APB 11, was applied in 1992 and
prior years. Deferred income taxes were provided to recognize the
income tax effect of reporting certain transactions in different years
for income tax and financial reporting purposes. Investment tax cre-
dits associated with utility plant are deferred and amortized ratably
to income over the lives of the related properties. Investment tax
credits associated with non-utility plant are recognized as income in
the year realized.
VELCO
VELCO has consistently followed the practice of billing and
reporting as income tax expense only income taxes currently payable,
including billing and reporting to the Public Service Board (the util-
ity rate-setting body for the state of Vermont). VELCO is now re-
quired by Federal tax law to use the normalization method for account-
ing and billing in order to use accelerated depreciation and to obtain
<PAGE>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
AND ITS SUBSIDIARIES
Notes to Consolidating Financial Statements
(continued)
investments tax credits for property placed in service after
December 31, 1980. Therefore, beginning in 1981, deferred taxes have
been provided for the effects of timing differences related to depre-
ciation. The tax effects of all other timing differences are flowed-
through for both accounting and billing purposes. Management believes
that the unrecorded deferred tax costs are recoverable under the terms
of its transmission service contracts.
Beginning in 1981, investment tax credits are available to VELCO
only if they are deferred and amortized to income over the life of the
related property for both billing and financial reporting purposes.
Prior to 1981, VELCO recorded investment tax credits as reductions of
Federal income tax expense in the year that such credits were utilized
in its Federal income tax return.
VY
In February 1992, the Financial Accounting Standards Board issued
SFAS No. 109, "Accounting for Income Taxes" which required VY to change
from the deferred method to the liability method of accounting for
income taxes on January 1, 1993. The liability method accounts for
deferred income taxes by applying enacted statutory rates in effect at
the balance sheet date to differences between the book basis and the tax
basis of assets and liabilities ("temporary differences").
This new statement requires recognition of deferred tax liabili-
ties for (a) income tax benefits associated with timing differences
previously passed on to customers and (b) the equity component of allow-
ance for funds used during construction, and of a deferred tax asset for
the tax effect of the accumulated deferred investment tax credits. It
also requires the adjustment of deferred tax liabilities or assets for
an enacted change in tax laws or rates, among other things.
Although adoption of this new statement has not and is not expected
to have a material impact on VY's cash flow, results of operations or
financial position because of the effect of rate regulation, VY was
required to recognize an adjustment to accumulated deferred income taxes
and a corresponding regulatory asset or liability to customers (in
amounts equal to the required deferred income tax adjustment) to reflect
the future revenues or reduction in revenues that will be required when
the temporary differences turn around and are recovered or settled in
rates. In addition, this new statement required a reclassification of
certain deferred income tax liabilities to liabilities to customers in
order to reflect VY's obligation to flow back deferred income taxes
provided at rates higher than the current 35% federal tax rate. VY has
applied the provisions of this new statement without restating prior
year's financial statements.
<PAGE>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
AND ITS SUBSIDIARIES
Notes to Consolidating Financial Statements
(continued)
Note C-VETCO:
Vermont Electric Transmission Company, Inc. (VETCO), which was
incorporated in 1982, is a wholly owned subsidiary of Vermont Electric
Power Company, Inc. VETCO was formed to construct, own and operate
the Vermont portion of a high voltage transmission line connecting the
electric system of New England with that of Hydro-Quebec, a Canadian
utility.
VETCO has entered into support agreements in connection with
construction of the transmission line with substantially all of the
New England electric utilities. The support agreements require the
utilities to reimburse VETCO for all operating and capital costs of the
transmission line on an unconditional and absolute basis. In return,
VETCO has agreed to build, own, operate and maintain the line and to
involve itself in no other activities during the term of the agreement,
which extends for 30 years from the date of commercial operation of the
line. These support agreements also provide for an advisory committee
made up of participants to review the operations of VETCO and to make
recommendations on major decisions. VETCO is obligated to follow
these recommendations to the extent reasonably practical.
Because these provisions of the support agreements effectively
restrict VELCO's control, VELCO has not consolidated its financial
information with that of VETCO and instead is accounting for its
investment using the equity method.
<TABLE>
<CAPTION>
<PAGE>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
AND ITS SUBSIDIARIES
Notes to Consolidating Financial Statements
Note D-Investments in affiliates:
CVPS accounts for investments in its affiliates by the
equity method (dollars in thousands):
December 31
1993
Nuclear generating companies:
<S> <C>
VY $ 16,811
Maine Yankee Atomic Power Company 1,349
Connecticut Yankee Atomic Power Company 2,016
Yankee Atomic Electric Company 836
Other affiliated companies:
CVEC 5,032
C. V. Realty, Inc. 205
CVER (55)
SES 2,462
CEC 23,713
VELCO:
Common stock 3,498
Preferred stock 2,453
Total investments - CVPS 58,320
VELCO investment in VETCO 5,260
Total investments 63,580
Consolidating eliminations 59,379
All affiliates consolidated $ 4,201
________
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
AND ITS SUBSIDIARIES
Notes to Consolidating Financial Statements
Note E-Common stock:
The authorized and outstanding common stock for each of the
companies was as follows (dollars in thousands):
December 31
1993
<S> <C>
CVPS:
Common stock, $6 par value, authorized
19,000,000 shares; outstanding
11,562,219 shares $69,373
CVEC:
Common stock, $50 par value, authorized
20,000 shares; outstanding 14,000 shares 700
C. V. Realty, Inc.:
Common stock, $100 par value, authorized
500 shares; outstanding 300 shares 30
CVER:
Common stock, $1 par value, authorized
5,000 shares; outstanding 101 shares -
SES:
Common stock, $1 par value, authorized
10,000 shares; outstanding 1 share -
CEC:
Common stock, $1 par value, authorized
10,000 shares; outstanding 1 share -
VELCO:
Common stock, $100 par value, Class B-authorized
92,000 shares; outstanding 60,000 shares 6,000
VETCO:
Common stock, $100 par value, authorized
and outstanding 10 shares 1
VY:
Common stock, $100 par value, authorized
400,100 shares; outstanding 400,014 shares 40,001
Treasury stock, at cost 7,533 shares (1,131)
Total common stock equity 114,974
Consolidating eliminations 46,732
All affiliates consolidated $68,242
_______
</TABLE>
<TABLE>
<CAPTION>
<PAGE>
CENTRAL VERMONT PUBLIC SERVICE CORPORATION
AND ITS SUBSIDIARIES
Notes to Consolidating Financial Statements
Note F-Preferred stock:
Cumulative preferred and preference stock outstanding were as
follows (dollars in thousands):
December 31
1993
<S> <C>
CVPS:
Preferred stock, $100 par value, authorized
500,000 shares
Outstanding:
4.15% series, 37,856 shares $ 3,786
4.65% series, 10,000 shares 1,000
4.75% series, 17,682 shares 1,768
5.375% series, 15,000 shares 1,500
8.30% series, 200,000 shares 20,000
Preferred stock, $25 par value, authorized
1,000,000 shares
Outstanding:
9.00% series, 280,000 shares 7,000
Preference stock, $1 par value, authorized
1,000,000 shares; outstanding - none -
VELCO:
Preferred stock, $100 par value, authorized
125,000 shares; outstanding 100,000 shares 10,000
Return of capital (4,800)
VY:
Preferred stock, $100 par value, authorized
300,000 shares; outstanding - none -
Total cumulative preferred and
preference stock 40,254
Consolidating eliminations 5,200
All affiliates consolidated $35,054
_______
/TABLE
<PAGE>
