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Previous: WYNNS INTERNATIONAL INC, PRE 14A, 1994-02-25 |
Next: SALOMON BROTHERS CAPITAL FUND INC, NSAR-B, 1994-02-25 |
<PAGE>
HOUSTON INDUSTRIES INCORPORATED
FORM U-3A-2
FOR CALENDAR YEAR 1993
This report consists of 30 consecutively numbered pages.
1 of 30
<PAGE>
File No. 1-7629
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.
FORM U-3A-2
Statement by Holding Company Claiming
Exemption Under Rule 2 from the
Provisions of the Public Utility
Holding Company Act of 1935
To be Filed Annually Prior to March 1
Houston Industries Incorporated
(Name of 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. NAME, STATE OF ORGANIZATION, LOCATION AND NATURE OF BUSINESS OF CLAIMANT
AND EVERY SUBSIDIARY THEREOF, OTHER THAN ANY EXEMPT WHOLESALE GENERATOR (EWG) OR
FOREIGN UTILITY COMPANY IN WHICH CLAIMANT DIRECTLY OR INDIRECTLY HOLDS AN
INTEREST.
Claimant is Houston Industries Incorporated, a Texas corporation having its
principal place of business at 5 Post Oak Park, 4400 Post Oak Parkway, Houston,
Texas 77027. Claimant's business is the holding of the stocks of its
subsidiaries and performance of financial, administrative and other support
services in connection with the operations of such subsidiaries.
Claimant has one subsidiary which is a "public utility company" as defined in
Section 2(a)(5) of the Public Utility Holding Company Act of 1935, namely
Houston Lighting & Power Company (HL&P), a Texas corporation with executive
offices located at 611 Walker Avenue, Houston, Texas 77002. HL&P, which is
Claimant's principal operating subsidiary, is engaged in the generation,
transmission, distribution and sale of electric energy and serves customers in
an approximately 5,000 square mile area of the Texas Gulf Coast, including
Houston.
The only other subsidiaries of Claimant that have significant assets or made
a material contribution to Claimant's 1993 consolidated revenues or income are
2 of 30
<PAGE>
Utility Fuels, Inc. (Utility Fuels), a Texas corporation, and KBLCOM
Incorporated (KBLCOM), a Delaware corporation.
Prior to October 1993, Utility Fuels provided coal and lignite purchasing,
transportation and handling services, primarily to HL&P. Utility Fuels was
merged with and into HL&P in October 1993.
KBLCOM operates cable television systems through the following subsidiaries.
Indirect subsidiaries of KBLCOM are indented under the listing of their
respective parent corporations. The principal business address of KBLCOM and
each subsidiary is 2 Allen Center, 1200 Smith, Suite 1800, Houston, Texas 77002.
Company (State of Organization)
-------------------------------
KBL Cable, Inc. (Delaware)
KBL-TV Incorporated (Delaware)
KBL-TV Incorporated sells advertising time on behalf of cable systems owned
by subsidiaries of KBL Cable, Inc. and other unrelated parties. KBL-TV
Incorporated owns a 60% interest in the Greater Portland Cable Advertising
Interconnect, an Oregon Partnership that provides advertising services to a
group of Portland area cablesystems. That portion of the ownership interest
in such partnership that is not owned by KBL-TV Incorporated is owned by
unaffiliated partners.
KBL Cablesystems of the Southwest, Inc. (Minnesota)
KBL Cablesystems of the Southwest, Inc. owns (1) cable television systems in
the areas of greater San Antonio, Minneapolis and Laredo and (2) a 99%
interest in (a) Dickinson Pacific Cablesystems, a California general
partnership that owns cable television systems in Orange County, California,
and (b) KBL-Portland Cablesystems Limited Partnership, an Oregon limited
partnership that owns cable television systems in Portland, Oregon.
KBL Cable TV, Inc. (Delaware)
KBL Cable TV, Inc. owns (1) a 1% interest in Dickinson Pacific
Cablesystems, (2) a 1% interest in KBL-Multnomah Cablesystems Limited
Partnership, an Oregon limited partnership that owns cable television
systems in Multnomah County, Oregon and (3) a 1.2536%
3 of 30
<PAGE>
interest in KBL Cablesystems of Minneapolis Limited Partnership, a
Minnesota limited partnership that owns cable television systems in
Minneapolis.
TVE Transmission, Inc. (Texas)
TVE Transmission, Inc. provides microwave services to a division of KBL
Cablesystems of the Southwest, Inc. and other unrelated parties.
KBL Cablesystems of Multnomah, Inc. (Oregon)
KBL Cablesystems of Multnomah, Inc. owns (1) a 99% interest in KBL-
Multnomah Cablesystems Limited Partnership and (2) a 1% interest in KBL-
Portland Cablesystems Limited Partnership.
KBL Cablesystems of Minneapolis, Inc. (Minnesota)
KBL Cablesystems of Minneapolis, Inc. owns a 96.11405% interest in KBL
Cablesystems of Minneapolis Limited Partnership. That portion of the
partnership interest in such partnership that is not owned by KBL
Cablesystems of Minneapolis, Inc. or by KBL Cable TV, Inc. is owned by
unaffiliated limited partners.
KBL Properties, Inc. (Delaware)
KBL Properties, Inc. owns certain real estate properties and leases the
properties to subsidiaries of KBL Cable, Inc.
KBL Ventures Incorporated (Delaware)
KBL Ventures Incorporated owns (1) a 10% interest in Cable Advertising Partners,
a California partnership that provides advertising services to a group of Los
Angeles area cable systems, (2) a 34.3% interest in Upper Midwest Cable
Partners, a Minnesota partnership that provides advertising services to a group
of Minneapolis area cable systems, (3) a 25% interest in Interconnect of the
Twin Cities, a Minnesota partnership that provides advertising services to a
group of Minneapolis area cable systems and (4) a 25% interest in Broadband
Development Partners, General Partnership, a California general partnership that
was formed to develop an alternate access business in the Los Angeles area.
That portion of the ownership
4 of 30
<PAGE>
interests in such partnerships that is not owned by KBL Ventures Incorporated is
owned by unaffiliated partners.
KBL Communications, Inc. (Texas)
KBL Communications, Inc. owns (1) a 50% interest in Paragon Communications, a
Colorado partnership that owns cable television systems, (2) a 16.67% interest
in CAT Partnership, a California partnership that owns certain cable television
assets or systems (or proceeds from the disposition thereof) and (3) a 14.6175%
interest in ARP Partnership, a Delaware partnership that owns certain cable
television assets.
FIBRCOM Incorporated (Delaware)
FIBRCOM Incorporated owns a 33.3% interest in Linkatel Pacific, Limited
Partnership, a California limited partnership that was formed to develop an
alternate access business in the Los Angeles area. That portion of the
ownership interest in such partnership not owned by FIBRCOM Incorporated is
owned by unaffiliated partners.
KBL Integrated Services, Inc. (Delaware)
KBL Integrated Services, Inc. will operate private telephone systems in the San
Antonio area.
_________________________________
Claimant has nine additional subsidiaries, none of which is material and all
of which (except as otherwise noted) are located at 5 Post Oak Park, 4400 Post
Oak Parkway, Houston, Texas 77027, as follows:
Development Ventures, Inc., a Delaware corporation that has principally
provided financing to small, emerging businesses located in or near HL&P's
service area.
Primary Fuels, Inc., a Texas corporation that engaged in oil and gas
exploration, development and production activities until 1989 when all of its
oil and gas assets were sold.
Houston Industries Products, Inc., a Delaware corporation organized to
develop and market inventions, technology and other intellectual property owned
by Claimant and Claimant's other subsidiaries.
Houston Industries (Delaware) Incorporated, a Delaware corporation located at
200 West Ninth Street, Wilmington, Delaware 19801, the only assets of which are
5 of 30
<PAGE>
shares of non-voting class B common stock of HL&P.
Houston Argentina S.A., an Argentine corporation located in Buenos Aires,
Argentina, the principal asset of which is a 32.5% interest in Compania de
Inversiones en Electricidad S.A., an Argentine holding company which owns 51% of
the capital stock of each of (a) Empresa Distribuidora La Plata S.A. (EDELAP),
an Argentine electric utility serving the City of La Plata and its environs and
(b) Central Dique S.A., an Argentine corporation (Central Dique) formed to own
and operate the electrical generating assets of EDELAP. For additional
information regarding the assets of EDELAP and Central Dique, reference is made
to Section 4(A)(2) of this Statement. Subject to the approval of the Argentine
government, the Claimant intends to transfer its ownership in the capital stock
of Houston Argentina to Houston Industries Energy, Inc. (HI Energy) during the
calendar year ended December 31, 1994. Houston Argentina provides management
and technical services to EDELAP. Pursuant to Section 33(a) of the Public
Utility Holding Company Act of 1935, neither EDELAP nor Houston Argentina is a
"public utility company" under Section 2(a)(5) of such Act.
Industrias Electricas de Houston S.A., an Argentine corporation located in
Buenos Aires, Argentina, owns as of the date of this Statement, no assets.
Houston Industries Building, Inc., a Delaware corporation organized in 1993,
owns real property in Houston, Texas.
HI Energy, a Delaware corporation located at 611 Walker Avenue, Houston,
Texas 77002, organized in 1993 to participate in domestic and foreign power
generation projects and to invest in the privatization of foreign electric
utility systems. On February 7, 1994, HI Energy incorporated HIE Ford Heights,
Inc., a wholly-owned subsidiary of HI Energy, which as of the date of this
Statement owned no assets.
Utility Rail Services, Inc., a Delaware corporation that owns 100% of UFI
Services, Inc., a Delaware subsidiary which owns a 50% interest in a Nebraska-
based joint venture that constructs, repairs, stores and maintains rail cars.
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
6 of 30
<PAGE>
PRODUCTION, TRANSMISSION, AND DISTRIBUTION OF NATURAL OR MANUFACTURED GAS,
INDICATING THE LOCATION OF PRINCIPAL GENERATING PLANTS, TRANSMISSION 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.
The only properties to which this item is applicable are the electric utility
properties of HL&P. Such properties are located in the Counties of Anderson,
Austin, Brazoria, Chambers, Colorado, Fort Bend, Freestone, Galveston, Grimes,
Harris, Henderson, Leon, Liberty, Limestone, Madison, Matagorda, Montgomery,
Robertson, Waller and Wharton in the State of Texas. As of December 31, 1993,
HL&P owned and operated 61 generating units located at 11 generating stations in
the Counties of Chambers, Fort Bend, Galveston, Harris, Limestone and Matagorda
having an aggregate turbine nameplate rating of 13,425,868 kilowatts.
Approximately 42% of HL&P's energy requirements during 1993 was met with
natural gas, 40% with coal and lignite, and 1% with nuclear. The remaining 17%
was met principally with purchased power.
HL&P operates 24,065 pole miles of overhead distribution lines and 3,556
circuit miles of overhead transmission lines including 529 circuit miles
operated at 69,000 volts, 1,997 circuit miles operated at 138,000 volts and
1,030 circuit miles operated at 345,000 volts. HL&P operates 8,074 circuit
miles of underground distribution lines and 12.6 circuit miles of underground
transmission lines, including 8.1 circuit miles operated at 138,000 volts and
4.5 circuit miles operated at 69,000 volts. These lines have been constructed
in, or adjoin, the communities and municipalities served by HL&P. In addition,
HL&P owns and operates switching and transformer stations at its generating
plants and at various points on its system. All such facilities are located
within the State of Texas.
HL&P has no properties and furnishes no service outside of, or at the state
line of, the State of Texas.
3. THE FOLLOWING INFORMATION FOR THE LAST CALENDAR YEAR WITH RESPECT TO
CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES:
(A) NUMBER OF KWH. OF ELECTRIC ENERGY SOLD (AT
7 of 30
<PAGE>
RETAIL OR WHOLESALE), AND MCF. OF NATURAL OR MANUFACTURED GAS DISTRIBUTED AT
RETAIL.
During calendar year 1993, HL&P sold 61,149,460,291 kwh. of electric energy
as follows:
<TABLE>
<CAPTION>
Energy Sales
kwh.
--------------
<S> <C>
Residential 16,953,667,431
Commercial 13,083,391,427
Industrial 30,434,868,343
Other Utilities 564,619,636
Public Authorities 112,913,454
</TABLE>
HL&P distributed no natural or manufactured gas during 1993.
(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.
None
(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.
None
(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.
None
4. THE FOLLOWING INFORMATION FOR THE REPORTING PERIOD WITH RESPECT TO
CLAIMANT AND EACH INTEREST IT HOLDS DIRECTLY OR INDIRECTLY IN AN EWG OR A
FOREIGN UTILITY COMPANY, STATING MONETARY AMOUNTS IN UNITED STATES DOLLARS:
(A) NAME, LOCATION, BUSINESS ADDRESS AND DESCRIPTION OF THE FACILITIES USED
BY THE EWG OR FOREIGN UTILITY COMPANY FOR THE GENERATION, TRANSMISSION AND
DISTRIBUTION OF ELECTRIC ENERGY FOR SALE OR FOR THE DISTRIBUTION AT RETAIL OF
NATURAL OR MANUFACTURED GAS.
1. The Claimant does not directly or indirectly own any interest in an EWG.
8 of 30
<PAGE>
2. The Claimant has an indirect interest in two Argentine corporations:
EDELAP and Central Dique. The principal location of EDELAP and Central Dique is
in the city of La Plata, the province of Buenos Aires, Argentina. The business
address of such entities is Calle 50, No. 543, (1900), La Plata, Argentina.
EDELAP distributes electricity to approximately 250,000 customers in La
Plata, Argentina and its environs. Maximum demand on its system is
approximately 230 megawatts. EDELAP has one substation and 32 kilometers of
transmission lines operated at 220,000 volts, and eight substations and 246
kilometers of transmission lines operated at 132,000 volts. Substantially all
of the power sold by EDELAP is provided through the Argentine national grid.
Central Dique owns the Dique Power Plant which has seven gas turbines
with a combined capacity of 120 megawatts. Electric power generated by Central
Dique is sold through the Argentine national grid.
(B) NAME OF EACH SYSTEM COMPANY THAT HOLDS AN INTEREST IN SUCH EWG OR
FOREIGN UTILITY COMPANY; AND DESCRIPTION OF THE INTEREST HELD.
1. No system company (as defined to refer to each subsidiary of the
Claimant, a "System Company") holds an interest in any EWG.
2. Houston Argentina S.A., an Argentine corporation and a direct wholly
owned subsidiary of the Claimant ("Houston Argentina"), owns 32.5% of the voting
stock of Compania de Inversiones en Electricidad S.A., a special purpose
Argentine holding company (COINELEC). COINELEC owns all the issued and
outstanding shares of Class A stock of each of EDELAP and Central Dique. The
Class A shares held by COINELEC represent 51% of the capital stock of each of
EDELAP and Central Dique. Subject to the approval of the Argentine government,
the Claimant intends to transfer its ownership in the capital stock of Houston
Argentina to HI Energy during 1994.
(C) TYPE AND AMOUNT OF CAPITAL INVESTED, DIRECTLY OR INDIRECTLY, BY THE
HOLDING COMPANY CLAIMING EXEMPTION; ANY DIRECT OR INDIRECT GUARANTEE OF THE
SECURITY OF THE EWG OR FOREIGN UTILITY COMPANY BY THE HOLDING COMPANY CLAIMING
EXEMPTION; AND ANY DEBT OR OTHER FINANCIAL OBLIGATION FOR WHICH THERE IS
RECOURSE, DIRECTLY OR INDIRECTLY, TO THE HOLDING COMPANY CLAIMING EXEMPTION OR
ANOTHER SYSTEM COMPANY, OTHER THAN THE EWG OR THE FOREIGN UTILITY COMPANY.
9 of 30
<PAGE>
1. The Claimant invested $37.4 million (U.S. dollars) in the acquisition by
COINELEC of the Class A shares of ELEDAP and Central Dique. Such investment was
in the form of (a) a direct cash contribution of $1.6 million to COINELEC, (b)
the contribution of $26.0 million aggregate principal amount of foreign debt
securities issued by the Argentine government and (c) a loan to COINELEC in the
aggregate principal amount of $9.8 million.
2. There are no direct or indirect guarantees by the Claimant of any
security of COINELEC, EDELAP or Central Dique.
3. There are no financial obligations of COINELEC, EDELAP or Central Dique
for which there is recourse, directly or indirectly, to the Claimant or any
other subsidiary of the Claimant.
(D) CAPITALIZATION AND EARNINGS OF THE EWG OR FOREIGN UTILITY COMPANY DURING
THE REPORTING PERIOD.
1. At December 31, 1993, the combined capitalization of EDELAP and
Central Dique was approximately $46 million (calculated on the basis of an
exchange ratio of one Argentine peso to one U.S. dollar) based on the combined
book value of their assets at the time of purchase of control by COINELEC. A
proposal to step up such book value is pending before the Argentine government.
2. During the twelve-month period ended December 31, 1993, EDELAP and
Central Dique had combined earnings of approximately $350,000 (calculated on the
basis of an exchange ratio of one Argentine peso to one U.S. dollar). Such
results were materially impacted by the unexpected availability of substantial
amounts of hydroelectric generation, which reduced the marginal cost of electric
energy in Argentina and limited the dispatch of Central Dique's gas-fired
generation to meet peaking requirements.
(E) IDENTIFY ANY SERVICE, SALES OR CONSTRUCTION CONTRACTS(S) BETWEEN THE EWG
OR FOREIGN UTILITY COMPANY AND A SYSTEM COMPANY, AND DESCRIBE THE SERVICES TO BE
RENDERED OR GOODS SOLD AND FEES OR REVENUES UNDER SUCH AGREEMENT(S).
1. There are no "sales contracts" or "construction contract(s)" (as such
terms are defined in Section 2(a) of the Public Utility
Holding Company Act), between any EWG or Foreign Utility Company and the
Claimant or any System Company.
2. Houston Argentina is a party to a management assistance agreement (the
"Management Services Agreement") with EDELAP and Central Dique. Under the
Management Assistance Agreement, Houston Argentina provides certain technical
and managerial assistance services to EDELAP and Central Dique, including
advising and assisting in the management of the facilities and the training of
technicians and operating and managing
10 of 30
<PAGE>
personnel. The Management Assistance Agreement expires in December 2002.
The fee under the Management Services Agreement, which is shared by Houston
Argentina with other shareholders of COINELEC, is 2.7% of the gross receipts of
EDELAP and Central Dique (net of taxes) plus (a) an additional $1 million during
1993 and 1994 and (b) an additional $500,000 for each year thereafter until the
termination of the agreement. The management fee is payable quarterly in U.S.
dollars. The Management Assistance Agreement also provides that EDELAP and
Central Dique will reimburse Houston Argentina for certain costs associated with
the temporary assignment of persons employed by the Claimant or by subsidiaries
of the Claimant to perform services on behalf of EDELAP and Central Dique.
11 of 30
<PAGE>
EXHIBIT A
---------
A CONSOLIDATING STATEMENT OF INCOME AND SURPLUS 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 Exhibits A-1 and A-2, respectively.
EXHIBIT B
---------
AN ORGANIZATIONAL CHART SHOWING THE RELATIONSHIP OF EACH EWG OR FOREIGN
UTILITY COMPANY TO ASSOCIATE COMPANIES IN THE HOLDING-COMPANY SYSTEM.
EXHIBIT C
---------
FINANCIAL DATA SCHEDULE OF CLAIMANT.
The above-named Claimant has caused this statement to be duly executed on its
behalf by its authorized officer on this 25th day of February, 1993.
HOUSTON INDUSTRIES INCORPORATED
By: /s/ Mary P. Ricciardello
-------------------------
Mary P. Ricciardello
Comptroller
ATTEST:
/s/ R. E. Smith
- -----------------------------
Assistant Corporate Secretary
(Seal)
NAME, TITLE AND ADDRESS OF OFFICER TO WHOM NOTICES AND CORRESPONDENCE
CONCERNING THIS STATEMENT SHOULD BE ADDRESSED:
William A. Cropper
Vice President and Treasurer
Houston Industries Incorporated
5 Post Oak Park, 28th Floor
4400 Post Oak Parkway
Houston, Texas 77027
12 of 30
<PAGE>
EXHIBIT A-1
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HII HL&P KBLCOM DVI HASA HIEI HIBI
---------- ---------- --------- ------- -------- ------- -------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $4,079,863 $ 244,067
---------- ---------- --------- -------- -------- ------- -------
OPERATING EXPENSES:
ELECTRIC:
FUEL 1,063,050
PURCHASED POWER 515,502
OPERATION AND MAINTENANCE 898,535
TAXES OTHER THAN INCOME TAXES 211,295
CABLE TELEVISION OPERATING EXPENSES 148,325
DEPRECIATION & AMORTIZATION $ 729 385,731 77,912 $ 22 $ 8
---------- ---------- ---------- -------- -------- ------- -------
TOTAL 729 3,074,113 226,237 0 22 8 0
---------- ---------- ---------- -------- -------- ------- -------
OPERATING INCOME (LOSS) (729) 1,005,750 17,830 0 (22) (8) 0
---------- ---------- ---------- -------- -------- ------- -------
OTHER INCOME (EXPENSE):
ALLOWANCE FOR OTHER FUNDS USED DURING
CONSTRUCTION 3,512
DIVIDEND INCOME
INTEREST INCOME 32,744 3,296 396
EQUITY IN INCOME OF CABLE TELEVISION
PARTNERSHIPS 31,979
OTHER-NET (14,421) (7,279) (3,607) ($280) 560 (2,824) ($2)
INTEREST INCOME FROM SUBSIDIARIES 26,525
---------- ---------- ---------- -------- -------- ------- -------
TOTAL OTHER INCOME (EXPENSE) 44,848 (471) 28,768 (280) 560 (2,824) (2)
---------- ---------- ---------- -------- -------- ------- -------
FIXED CHARGES:
INTEREST ON LONG-TERM DEBT 49,328 276,049 47,477
OTHER INTEREST 25,418 12,317 3,697 392 1 10
ALLOWANCE FOR BORROWED FUNDS USED
DURING CONSTRUCTION (CREDIT) (3,781)
PREFERRED DIVIDENDS OF SUBSIDIARY
---------- ---------- ---------- -------- -------- ------- -------
TOTAL FIXED CHARGES 74,746 284,585 51,174 392 1 10 0
---------- ---------- ---------- -------- -------- ------- -------
INCOME (LOSS) BEFORE INCOME TAXES (30,627) 720,694 (4,576) (672) 537 (2,842) (2)
INCOME TAXES (12,726) 236,471 8,436 (260) 286 (1,001) (1)
---------- ---------- ---------- -------- -------- ------- -------
NET INCOME (LOSS) (17,901) 484,223 (13,012) (412) 251 (1,841) (1)
DIVIDENDS ON PREFERRED STOCK 34,473
---------- ---------- ---------- -------- -------- ------- -------
NET INCOME (LOSS) FOR COMMON STOCK (17,901) 449,750 (13,012) (412) 251 (1,841) (1)
EQUITY IN EARNINGS OF SUBSIDIARIES 405,156
DIVIDENDS ON PREFERRED STOCK HELD BY
PARENT 19,097 (19,097)
INTEREST ON NOTE HELD BY PARENT (NET
OF TAX BENEFIT OF $5,211) 9,679 (9,679)
CASH DIVIDENDS ON COMMON STOCK 487,927 342,982 350,000
---------- ---------- ---------- -------- -------- ------- -------
NET INCREASE (DECREASE) IN RETAINED
EARNINGS (71,896) 106,768 (391,788) (412) 251 (1,841) (1)
RETAINED EARNINGS (DEFICIT) AT
BEGINNING OF PERIOD 1,254,686 1,922,558 (552,842) (10,226) (70) 0 0
TAX BENEFIT ON DIVIDENDS PAID TO ESOP 8,939
REACQUISITION OF PREFERRED STOCK (402) (402)
ADJUSTMENT TO ADDITIONAL PAID-IN CAPITAL
TERMINATION OF OPERATIONS
---------- ---------- ---------- -------- -------- ------- -------
RETAINED EARNINGS (DEFICIT) AT END OF
PERIOD $1,191,327 $2,028,924 ($944,630) ($10,638) $181 ($1,841) ($1)
========== ========== ========== ======== ======== ======= =======
EARNINGS (LOSS) PER COMMON SHARE (1) ($0.14) $3.46 ($0.10) $0.00 $0.00 ($0.01) $0.00
========== ========== ========== ======== ======== ======= =======
(1) BASED ON WEIGHTED AVERAGE COMMON LEGEND OF SUBSIDIARY NAMES:
SHARES OUTSTANDING OF HOUSTON ---------------------------
INDUSTRIES INCORPORATED (000) - 130,004 HII - HOUSTON INDUSTRIES INCORPORATED
HL&P - HOUSTON LIGHTING & POWER COMPANY
NOTE: KBLCOM - KBLCOM INCORPORATED AND SUBSIDIARIES
- ----- DVI - DEVELOPMENT VENTURES, INC.
UTILITY RELATED BUSINESS OF UTILITY FUELS, INC. WAS MERGED HASA - HOUSTON ARGENTINA S.A.
WITH HL&P ON OCTOBER 8, 1993. NON-UTILITY BUSINESS WAS HIEI - HOUSTON INDUSTRIES ENERGY, INC.
TRANSFERRED TO URS, A NEWLY FORMED SUBSIDIARY. HIBI - HOUSTON INDUSTRIES BUILDING, INC.
</TABLE>
13 of 30
<PAGE>
EXHIBIT A-1
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
ELIMINATIONS/
HIDI HIPI URS PFI HIFI RECLASSIFICATION CONSOLIDATED
-------- ---------- -------- -------- -------- ----------------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES $ 1,688 $ 1,259 ($2,947) $4,323,930
-------- ---------- -------- -------- -------- ----------- ----------
OPERATING EXPENSES:
ELECTRIC:
FUEL 1,063,050
PURCHASED POWER 515,502
OPERATION AND MAINTENANCE 898,535
TAXES OTHER THAN INCOME TAXES 211,295
CABLE TELEVISION OPERATING
EXPENSES 148,325
DEPRECIATION & AMORTIZATION $ 9 395 464,806
-------- ---------- -------- -------- -------- ---------- ----------
TOTAL 0 9 395 0 0 0 3,301,513
-------- ---------- -------- -------- -------- ---------- ----------
OPERATING INCOME (LOSS) 0 (9) 1,293 0 1,259 (2,947) 1,022,417
-------- ---------- -------- -------- -------- ---------- ----------
OTHER INCOME (EXPENSE):
ALLOWANCE FOR OTHER FUNDS
USED DURING CONSTRUCTION 3,512
DIVIDEND INCOME $342,982 (342,982) 0
INTEREST INCOME (3,079) 33,357
EQUITY IN INCOME OF CABLE
TELEVISION PARTNERSHIPS 31,979
OTHER-NET (30) (259) (2,543) ($131) (332) 10,182 (20,966)
INTEREST INCOME FROM SUBSIDIARIES (26,525) 0
-------- ---------- -------- -------- -------- ---------- ----------
TOTAL OTHER INCOME (EXPENSE) 342,952 (259) (2,543) (131) (332) (362,404) 47,882
-------- ---------- -------- -------- -------- ---------- ----------
FIXED CHARGES:
INTEREST ON LONG-TERM DEBT 7,235 380,089
OTHER INTEREST 139 (29,610) 12,364
ALLOWANCE FOR BORROWED FUNDS
USED DURING CONSTRUCTION
(CREDIT) (3,781)
PREFERRED DIVIDENDS OF SUBSIDIARY 34,473 34,473
-------- ---------- -------- -------- -------- ---------- ----------
TOTAL FIXED CHARGES 0 0 0 0 139 12,098 423,145
-------- ---------- -------- -------- -------- ---------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 342,952 (268) (1,250) (131) 788 (377,449) 647,154
INCOME TAXES (11) (94) (206) (46) 268 2 231,118
-------- ---------- -------- -------- -------- ---------- ----------
NET INCOME (LOSS) 342,963 (174) (1,044) (85) 520 (377,451) 416,036
DIVIDENDS ON PREFERRED STOCK (34,473) 0
-------- ---------- -------- -------- -------- ---------- ----------
NET INCOME (LOSS) FOR COMMON STOCK 342,963 (174) (1,044) (85) 520 (342,978) 416,036
EQUITY IN EARNINGS OF SUBSIDIARIES (405,156) 0
DIVIDENDS ON PREFERRED STOCK HELD
BY PARENT 0
INTEREST ON NOTE HELD BY PARENT (NET
OF TAX BENEFIT OF $5,211) 0
CASH DIVIDENDS ON COMMON STOCK 342,947 (1,035,929) 487,927
-------- ---------- -------- -------- -------- ---------- ----------
NET INCREASE (DECREASE) IN RETAINED
EARNINGS 16 (174) (1,044) (85) 520 287,795 (71,891)
RETAINED EARNINGS (DEFICIT) AT
BEGINNING OF PERIOD 0 0 (1,433) (3,993) 0 (1,354,096) 1,254,584
TAX BENEFIT ON DIVIDENDS PAID TO ESOP 8,939
REACQUISITION OF PREFERRED STOCK 402 (402)
ADJUSTMENT TO ADDITIONAL PAID-IN
CAPITAL (155) 155 0
TERMINATION OF OPERATIONS (520) 520 0
-------- ---------- -------- -------- -------- ---------- ----------
RETAINED EARNINGS (DEFICIT) AT END
OF PERIOD $16 ($174) ($2,477) ($4,233) $0 ($1,065,224) $1,191,230
======== ========== ======== ======== ======== ========== ==========
EARNINGS (LOSS) PER COMMON SHARE (1) $0.00 $0.00 ($0.01) $0.00 $0.00 $3.20
======== ========== ======== ======== ======== ========== ==========
(1) BASED ON WEIGHTED AVERAGE COMMON LEGEND OF SUBSIDIARY NAMES:
SHARES OUTSTANDING OF HOUSTON ----------------------------
INDUSTRIES INCORPORATED (000) - 130,004 HIDI - HOUSTON INDUSTRIES (DELAWARE) INCORPORATED
HIPI - HOUSTON INDUSTRIES PRODUCTS, INC.
NOTE: URS - UTILITY RAIL SERVICES, INC.
- ----- PFI - PRIMARY FUELS, INC.
UTILITY RELATED BUSINESS OF UTILITY FUELS, INC. WAS MERGED HIFI - HOUSTON INDUSTRIES FINANCE, INC.
WITH HL&P ON OCTOBER 8, 1993. NON-UTILITY BUSINESS WAS
TRANSFERRED TO URS, A NEWLY FORMED SUBSIDIARY.
</TABLE>
14 of 30
<PAGE>
EXHIBIT A-2
HOUSTON INDUSTRIES INCORPORATED & SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HII HL&P KBLCOM DVI HASA HIEI HIBI
--------- ----------- ---------- ------- ------- ------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS:
PROPERTY, PLANT, AND EQUIPMENT, AT COST:
ELECTRIC PLANT $11,919,235
ELECTRIC PLANT AQUISITION ADJUSTMENTS 3,166
NUCLEAR FUEL 211,785
CABLE TELEVISION PROPERTY $ 372,178
OTHER PROPERTY $ 12,344 $ 236 $26,035
---------- ----------- ---------- ------- ------- ------- -------
TOTAL PROPERTY, PLANT AND EQUIPMENT 12,344 12,134,186 372,178 0 0 236 26,035
LESS: ACCUMULATED DEPRECIATION
AND AMORTIZATION 8,814 3,194,127 151,671 8
---------- ----------- ---------- ------- ------- ------- -------
PROPERTY, PLANT AND EQUIPMENT-NET 3,530 8,940,059 220,507 0 0 228 26,035
---------- ----------- ---------- ------- ------- ------- -------
INVESTMENT IN ASSOCIATED COMPANIES 3,526,833
---------- ----------- ---------- ------- ------- ------- -------
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS 148 12,413 $ 7 $ 996 258 332
SPECIAL DEPOSITS 11,834
ACCOUNTS RECEIVABLE - CUSTOMERS 4,961
ACCOUNTS RECEIVABLE - OTHER 553 2,540 7,441 317 224 78
ACCRUED UNBILLED REVENUES 29,322
ACCOUNTS RECEIVABLE FROM ASSOCIATED
COMPANIES 48,276 1,792 653 17 544
NOTES RECEIVABLE FROM ASSOCIATED
COMPANIES 805,567
FUEL STOCK, AT LIFO COST 58,585
MATERIALS & SUPPLIES, AT
AVERAGE COST 160,371 6,072
OTHER 4,883 9,234 3,148 11 10 3,117
---------- ----------- ---------- ------- ------- ------ -------
TOTAL CURRENT ASSETS 859,427 286,091 21,622 977 1,248 890 3,449
---------- ----------- ---------- ------- ------- ------ -------
OTHER ASSETS:
CABLE TELEVISION FRANCHISES AND
INTANGIBLE ASSETS 984,032
DEFERRED PLANT COSTS 664,699
DEFERRED DEBITS 30,166 333,620 59,224 11,184 605 2,479 1
UNAMORTIZED DEBT EXPENSE AND
PREMIUM ON REACQUIRED DEBT 2,508 164,368
EQUITY INVESTMENT IN CABLE TELEVISION
PARTNERSHIPS 122,531
EQUITY INVESTMENT IN FOREIGN ELECTRIC
UTILITY 36,984
REGULATORY ASSET - NET 246,763
RECOVERABLE PROJECT COSTS 118,016
---------- ----------- ---------- ------- ------- ------ -------
TOTAL OTHER ASSETS 32,674 1,527,466 1,165,787 11,184 37,589 2,479 1
---------- ----------- ---------- ------- ------- ------ -------
TOTAL $4,422,464 $10,753,616 $1,407,916 $12,161 $38,837 $3,597 $29,485
========== =========== ========== ======= ======= ====== =======
</TABLE>
15 of 30
<PAGE>
EXHIBIT A-2
HOUSTON INDUSTRIES INCORPORATED & SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
ELIMINATIONS/
HIDI HIPI URS PFI RECLASSIFICATION CONSOLIDATED
--------- --------- -------- ------- ---------------- ------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
PROPERTY, PLANT, AND EQUIPMENT, AT COST:
ELECTRIC PLANT $11,919,235
ELECTRIC PLANT AQUISITION ADJUSTMENTS 3,166
NUCLEAR FUEL 211,785
CABLE TELEVISION PROPERTY 372,178
OTHER PROPERTY $ 1 $9,282 ($404) 47,494
--------- --------- -------- ------- ---------- -----------
TOTAL PROPERTY, PLANT AND
EQUIPMENT 0 1 9,282 0 (404) 12,553,858
LESS: ACCUMULATED DEPRECIATION
AND AMORTIZATION 16 846 134 3,355,616
--------- --------- -------- ------- ---------- -----------
PROPERTY, PLANT AND EQUIPMENT-NET 0 (15) 8,436 0 (538) 9,198,242
--------- --------- -------- ------- ---------- -----------
INVESTMENT IN ASSOCIATED COMPANIES $150,978 (3,677,811) 0
--------- --------- -------- ------- ---------- -----------
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS 37 53 61 579 14,884
SPECIAL DEPOSITS 11,834
ACCOUNTS RECEIVABLE - CUSTOMERS 24 4,985
ACCOUNTS RECEIVABLE - OTHER 11,153
ACCRUED UNBILLED REVENUES 29,322
ACCOUNTS RECEIVABLE FROM ASSOCIATED
COMPANIES 64 (51,346) 0
NOTES RECEIVABLE FROM ASSOCIATED
COMPANIES 300 (805,867) 0
FUEL STOCK, AT LIFO COST 58,585
MATERIALS & SUPPLIES, AT AVERAGE COST 34 166,477
OTHER 25 4 20,432
--------- --------- -------- ------- ---------- -----------
TOTAL CURRENT ASSETS 37 136 429 0 (856,634) 317,672
--------- --------- -------- ------- ---------- -----------
OTHER ASSETS:
CABLE TELEVISION FRANCHISES AND
INTANGIBLE ASSETS 984,032
DEFERRED PLANT COSTS 664,699
DEFERRED DEBITS 279 6,375 (72,160) 371,773
UNAMORTIZED DEBT EXPENSE AND
PREMIUM ON REACQUIRED DEBT 2,589 169,465
EQUITY INVESTMENT IN CABLE TELEVISION
PARTNERSHIPS 122,531
EQUITY INVESTMENT IN FOREIGN
ELECTRIC UTILITY 36,984
REGULATORY ASSET - NET 246,763
RECOVERABLE PROJECT COSTS 118,016
--------- --------- -------- ------- ---------- -----------
TOTAL OTHER ASSETS 0 279 6,375 0 (69,571) 2,714,263
--------- --------- -------- ------- ---------- -----------
TOTAL $151,015 $400 $15,240 $0 ($4,604,554) $12,230,177
========= ========= ======== ======= ========== ===========
</TABLE>
16 of 30
<PAGE>
EXHIBIT A-2
HOUSTON INDUSTRIES INCORPORATED & SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - LIABILITIES
DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HII HL&P KBLCOM DVI HASA HIEI HIBI
---------- ----------- ---------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY:
SHAREHOLDERS' EQUITY:
COMMON STOCK $2,415,256 $ 1,675,927 $ 718,043 $23,867 $37,413 $ 5 $ 1
NOTE RECEIVABLE - ESOP (332,489)
RETAINED EARNINGS 1,191,327 2,028,924 (944,630) (10,638) 181 (1,841) (1)
PREFERRED STOCK 518,590
---------- ------------ ---------- -------- ------- ------- -------
TOTAL SHAREHOLDERS' EQUITY 3,274,094 4,223,441 (226,587) 13,229 37,594 (1,836) 0
---------- ------------ ---------- -------- ------- ------- -------
LONG-TERM DEBT:
FIRST MORTGAGE BONDS 3,019,843
OTHER LONG-TERM DEBT - NET 548,544 170,228 504,580
LONG-TERM DEBT OF ASSOCIATED
COMPANIES 694,097 26,075
---------- ------------ ---------- -------- ------- ------- -------
TOTAL LONG-TERM DEBT 548,544 3,190,071 1,198,677 0 0 0 26,075
---------- ------------ ---------- -------- ------- ------- -------
TOTAL CAPITALIZATION 3,822,638 7,413,512 972,090 13,229 37,594 (1,836) 26,075
---------- ------------ ---------- -------- ------- ------- -------
CURRENT LIABILITIES:
NOTES PAYABLE 420,285 171,100
NOTES PAYABLE TO ASSOCIATED
COMPANIES 17,400 57,700 400 252
ACCOUNTS PAYABLE 30,612 190,583 35,508 634 1,822
ACCOUNTS PAYABLE TO ASSOCIATED
COMPANIES 1,456 8,449 797 135 917 2,237 3
TAXES ACCRUED (22,164) 187,517 (1,262) (1,579) 322 (552) 1,329
INTEREST ACCRUED 8,456 65,238 25,701 9
DIVIDENDS ACCRUED 97,994
ACCRUED LIABILITIES TO
MUNICIPALITIES 22,589
CURRENT PORTION OF LONG-TERM DEBT
AND PREFERRED STOCK 44,725 10,384
OTHER 1,808 129,211 2,759
---------- ------------ ---------- -------- ------- ------- -------
TOTAL CURRENT LIABILITIES 555,847 819,412 131,587 (1,444) 1,239 2,728 3,406
---------- ------------ ---------- -------- ------- ------- -------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES (16,871) 1,798,976 297,624 171 (825) 4
UNAMORTIZED INVESTMENT TAX CREDIT 430,996 3,601
OTHER 60,850 290,720 3,014 205 4 3,530
---------- ------------ ---------- -------- ------- ------- -------
TOTAL DEFERRED CREDITS 43,979 2,520,692 304,239 376 4 2,705 4
---------- ------------ ---------- -------- ------- ------- -------
TOTAL $4,422,464 $10,753,616 $1,407,916 $12,161 $38,837 $ 3,597 $29,485
========== ============ ========== ======== ======= ======= =======
</TABLE>
17 of 30
<PAGE>
EXHIBIT A-2
HOUSTON INDUSTRIES INCORPORATED & SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - LIABILITIES
DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
ELIMINATIONS/
HIDI HIPI URS PFI RECLASSIFICATION CONSOLIDATED
--------- ----------- ---------- -------- ---------------- -------------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY:
SHAREHOLDERS' EQUITY:
COMMON STOCK $151,002 $ 261 $ 6,160 $ 5 ($2,612,684) $ 2,415,256
NOTE RECEIVABLE - ESOP (332,489)
RETAINED EARNINGS 16 (174) (2,477) (4,233) (1,065,224) 1,191,230
PREFERRED STOCK 518,590
--------- ------------ ---------- -------- ----------- -----------
TOTAL SHAREHOLDERS' EQUITY 151,018 87 3,683 (4,228) (3,677,908) 3,792,587
--------- ------------ ---------- -------- ----------- -----------
LONG-TERM DEBT:
FIRST MORTGAGE BONDS 3,019,843
OTHER LONG-TERM DEBT - NET 1,223,352
LONG-TERM DEBT OF ASSOCIATED
COMPANIES (720,172) 0
--------- ------------ ---------- -------- ----------- -----------
TOTAL LONG-TERM DEBT 0 0 0 0 (720,172) 4,243,195
--------- ------------ ---------- -------- ----------- -----------
TOTAL CAPITALIZATION 151,018 87 3,683 (4,228) (4,398,080) 8,035,782
--------- ------------ ---------- -------- ----------- -----------
CURRENT LIABILITIES:
NOTES PAYABLE 591,385
NOTES PAYABLE TO ASSOCIATED
COMPANIES 9,943 (85,695) 0
ACCOUNTS PAYABLE 20 (19,365) 239,814
ACCOUNTS PAYABLE TO ASSOCIATED
COMPANIES 178 152 (14,324) 0
TAXES ACCRUED (3) (37) (413) 2,432 21,913 187,503
INTEREST ACCRUED (15,226) 84,178
DIVIDENDS ACCRUED 7,213 105,207
ACCRUED LIABILITIES TO
MUNICIPALITIES 22,589
CURRENT PORTION OF LONG-TERM DEBT
AND PREFERRED STOCK 55,109
OTHER 152 1,576 (7,214) 128,292
--------- ------------ ---------- -------- ----------- -----------
TOTAL CURRENT LIABILITIES (3) 313 9,682 4,008 (112,698) 1,414,077
--------- ------------ ---------- -------- ----------- -----------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES 1,813 220 (93,776) 1,987,336
UNAMORTIZED INVESTMENT TAX CREDIT 434,597
OTHER 62 358,385
--------- ------------ ---------- -------- ----------- -----------
TOTAL DEFERRED CREDITS 0 0 1,875 220 (93,776) 2,780,318
--------- ------------ ---------- -------- ----------- -----------
TOTAL $151,015 $400 $15,240 $0 ($4,604,554) $12,230,177
========== ============ ========== ======== =========== ===========
</TABLE>
18 of 30
<PAGE>
KBLCOM INCORPORATED AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS (DEFICIT)
TWELVE MONTHS ENDED DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
KBL KBL
KBLCOM KBL CABLE, INC. KBL VENTURES COMMUNICATIONS,
INCORPORATED CONSOLIDATED PROPERTIES, INC. INCORPORATED INC.
------------ --------------- ---------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $243,904
------------ --------------- ---------------- -------------- --------------
OPERATING EXPENSES:
CABLE TELEVISION $10,063 138,531 ($584) $3 $12
DEPRECIATION AND AMORTIZATION 786 77,500 170 3
------------ --------------- ---------------- -------------- --------------
TOTAL 10,849 216,031 (414) 6 12
------------ --------------- ---------------- -------------- --------------
OPERATING INCOME (LOSS) (10,849) 27,873 414 (6) (12)
------------ --------------- ---------------- -------------- --------------
OTHER INCOME (EXPENSE) - NET (2,861) (304) (1) (348) 32,408
------------ --------------- ---------------- -------------- --------------
FIXED CHARGES:
INTEREST ON LONG-TERM DEBT 2,304 44,560
OTHER INTEREST (25,951) 29,327 321 347 (347)
------------ --------------- ---------------- -------------- --------------
TOTAL FIXED CHARGES (23,647) 73,887 321 347 (347)
------------ --------------- ---------------- -------------- --------------
INCOME (LOSS) BEFORE INCOME TAXES 9,937 (46,318) 92 (701) 32,743
------------ --------------- ---------------- -------------- --------------
INCOME TAXES 3,456 (8,186) 32 367 12,879
------------ --------------- ---------------- -------------- --------------
EARNINGS (LOSS) FOR COMMON STOCK 6,481 (38,132) 60 (1,068) 19,864
EQUITY IN EARNINGS (LOSS)
OF SUBSIDIARIES (19,493) 0
DIVIDENDS ON PREFERRED
STOCK HELD BY PARENT (19,097) 0
INTEREST ON NOTE HELD BY PARENT
(NET OF TAX BENEFIT OF $5,211) (9,679)
------------ --------------- ---------------- -------------- --------------
NET CHANGE TO RETAINED
EARNINGS (DEFICIT) (41,788) (38,132) 60 (1,068) 19,864
------------ --------------- ---------------- -------------- --------------
RETAINED EARNINGS
(DEFICIT) AT BEGINNING OF PERIOD (363,723) (421,216) 149 (898) (37,014)
ADJUSTMENT TO BEGINNING
RETAINED EARNINGS (DEFICIT) (2) (414) 414
------------ --------------- ---------------- -------------- --------------
RETAINED EARNINGS (DEFICIT)
AT BEGINNING OF PERIOD - ADJUSTED (364,137) (420,802) 149 (898) (37,014)
COMMON STOCK DIVIDEND (350,000)
RETAINED EARNINGS (DEFICIT)
AT END OF PERIOD ($755,925) ($458,934) $209 ($1,966) ($17,150)
============ =============== ================ ============== ==============
EARNINGS (LOSS) PER COMMON SHARE (1) $0.05 ($0.29) $0.00 ($0.00) $0.15
============ =============== ================ ============== ==============
</TABLE>
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
OF HOUSTON INDUSTRIES INCORPORATED (000'S) - 130,004
(2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT
A 1992 TAX ADJUSTMENT.
<TABLE>
<CAPTION>
KBL
INTEGRATED FIBRCOM ELIMINATIONS/
SERVICES, INC. INCORPORATED RECLASSIFICATION CONSOLIDATED
-------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
OPERATING REVENUES $163 $244,067
-------------- ------------ ---------------- ------------
OPERATING EXPENSES:
CABLE TELEVISION $68 234 ($2) 148,325
DEPRECIATION AND AMORTIZATION 67 (614) 77,912
-------------- ------------ ---------------- ------------
TOTAL 68 301 (616) 226,237
-------------- ------------ ---------------- ------------
OPERATING INCOME (LOSS) (68) (138) 616 17,830
-------------- ------------ ---------------- ------------
OTHER INCOME (EXPENSE) - NET (128) 2 28,768
-------------- ------------ ---------------- ------------
FIXED CHARGES:
INTEREST ON LONG-TERM DEBT 613 47,477
OTHER INTEREST 3,697
-------------- ------------ ---------------- ------------
TOTAL FIXED CHARGES 0 0 613 51,174
-------------- ------------ ---------------- ------------
INCOME (LOSS) BEFORE INCOME TAXES (68) (266) 5 (4,576)
-------------- ------------ ---------------- ------------
INCOME TAXES (24) (89) 1 8,436
-------------- ------------ ---------------- ------------
EARNINGS (LOSS) FOR COMMON STOCK (44) (177) 4 (13,012)
EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES 19,493 0
DIVIDENDS ON PREFERRED STOCK HELD BY PARENT (19,097)
INTEREST ON NOTE HELD BY PARENT
(NET OF TAX BENEFIT OF $5,211) (9,679)
-------------- ------------ ---------------- ------------
NET CHANGE TO RETAINED EARNINGS (DEFICIT) (44) (177) 19,497 (41,788)
-------------- ------------ ---------------- ------------
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD 0 0 269,860 (552,842)
ADJUSTMENT TO BEGINNING RETAINED EARNINGS (DEFICIT) (2) 0
-------------- ------------ ---------------- ------------
RETAINED EARNINGS (DEFICIT)
AT BEGINNING OF PERIOD - ADJUSTED 0 0 269,860 (552,842)
COMMON STOCK DIVIDEND (350,000)
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD ($44) ($177) $289,357 ($944,630)
============== ============ ================ ============
EARNINGS (LOSS) PER COMMON SHARE (1) ($0.00) ($0.00) ($0.10)
============== ============ ================ ============
</TABLE>
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
OF HOUSTON INDUSTRIES INCORPORATED (000'S) -
(2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT
A 1992 TAX ADJUSTMENT.
19 OF 30
<PAGE>
KBLCOM INCORPORATED AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
KBL KBL
KBLCOM KBL CABLE, INC. KBL VENTURES COMMUNICATIONS
INCORPORATED CONSOLIDATED PROPERTIES, INC. INCORPORATED INC.
------------ --------------- ---------------- -------------- --------------
<S> <C> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $ 2,084
ACCOUNTS RECEIVABLE - OTHER $445,577 (427,877) ($2,034) ($9,737) $4,061
ACCOUNTS RECEIVABLE -
CUSTOMER 4,903
INVENTORIES 6,073
OTHER 477 2,692
------------ --------------- ---------------- -------------- --------------
TOTAL CURRENT ASSETS 446,054 (412,125) (2,034) (9,737) 4,061
------------ --------------- ---------------- -------------- --------------
PROPERTY, PLANT AND EQUIPMENT 4,641 359,489 $4,999
ACCUMULATED DEPRECIATION (1,978) (148,805) (756)
------------ --------------- ---------------- -------------- --------------
NET PROPERTY, PLANT AND
EQUIPMENT 2,663 210,684 4,243 0 0
------------ --------------- ---------------- -------------- --------------
OTHER ASSETS:
CABLE TELEVISION INVESTMENT 0
INVESTMENT IN ASSOCIATED
COMPANIES 358,627 0 8,706 122,314
FRANCHISES & INTANGIBLE ASSETS 983,984 48
DEFERRED DEBITS AND OTHER
INVESTMENTS (47,295) 95,577 (70) 93 2,448
------------ --------------- ---------------- -------------- --------------
TOTAL OTHER ASSETS 311,332 1,079,561 (22) 8,799 124,762
------------ --------------- ---------------- -------------- --------------
TOTAL $760,049 $878,120 $2,187 ($938) $128,823
============ =============== ================ ============== ==============
LIABILITIES AND STOCKHOLDERS' EQUITY:
STOCKHOLDERS' EQUITY:
COMMON STOCK $718,043 $564,913 $2,039 $1 $81,030
RETAINED EARNINGS (DEFICIT) (755,925) (458,934) 209 (1,966) (17,150)
PREFERRED STOCK 0
------------ --------------- ---------------- -------------- --------------
TOTAL STOCKHOLDERS' EQUITY (37,882) 105,979 2,248 (1,965) 63,880
------------ --------------- ---------------- -------------- --------------
LONG-TERM DEBT:
LONG-TERM DEBT 514,964
LONG-TERM DEBT OF ASSOCIATED
COMPANIES 694,097 0
------------ --------------- ---------------- -------------- --------------
TOTAL LONG-TERM DEBT 694,097 514,964 0 0 0
------------ --------------- ---------------- -------------- --------------
TOTAL CAPITALIZATION 656,215 620,943 2,248 (1,965) 63,880
------------ --------------- ---------------- -------------- --------------
CURRENT LIABILITIES:
ACCOUNTS PAYABLE 26,514 29,657 18 1,662 4,408
ACCOUNTS PAYABLE TO ASSOCIATED
COMPANIES 0
NOTES PAYABLE TO ASSOCIATED
COMPANIES 74,800 (17,100)
INTEREST PAYABLE TO ASSOCIATED
COMPANIES 0
CURRENT PORTION OF LONG-TERM DEBT
OTHER 2,760
------------ --------------- ---------------- -------------- --------------
TOTAL CURRENT LIABILITIES 101,314 15,317 18 1,662 4,408
------------ --------------- ---------------- -------------- --------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME
TAXES 959 237,961 (79) (635) 59,376
UNAMORTIZED INVESTMENT TAX
CREDIT 2,442 1,159
OTHER 1,561 1,457
------------ --------------- ---------------- -------------- --------------
TOTAL DEFERRED CREDITS 2,520 241,860 (79) (635) 60,535
------------ --------------- ---------------- -------------- --------------
TOTAL $760,049 $878,120 $2,187 ($938) $128,823
============ =============== ================ ============== ==============
</TABLE>
<TABLE>
<CAPTION>
KBL
INTEGRATED FIBRCOM ELIMINATIONS/
SERVICES, INC. INCORPORATED RECLASSIFICATION CONSOLIDATED
------------- ------------ ---------------- ------------
<S> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS ($2,084) $0
ACCOUNTS RECEIVABLE - OTHER ($113) ($2,442) 6 7,441
ACCOUNTS RECEIVABLE -
CUSTOMER 58 4,961
INVENTORIES (1) 6,072
OTHER 31 (52) 3,148
-------------- ------------ ---------------- ------------
TOTAL CURRENT ASSETS (113) (2,353) (2,131) 21,622
-------------- ------------ ---------------- ------------
PROPERTY, PLANT AND EQUIPMENT 3,050 (1) 372,178
ACCUMULATED DEPRECIATION (132) (151,671)
-------------- ------------ ---------------- ------------
NET PROPERTY, PLANT AND
EQUIPMENT 0 2,918 (1) 220,507
-------------- ------------ ---------------- ------------
OTHER ASSETS:
CABLE TELEVISION INVESTMENT 0
INVESTMENT IN ASSOCIATED
COMPANIES (118) (366,998) 122,531
FRANCHISES & INTANGIBLE ASSETS 984,032
DEFERRED DEBITS AND OTHER
INVESTMENTS 46 59 8,366 59,224
-------------- ------------ ---------------- ------------
TOTAL OTHER ASSETS 46 (59) (358,632) 1,165,787
-------------- ------------ ---------------- ------------
TOTAL ($67) $506 ($360,764) $1,407,916
============== ============= ================ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
STOCKHOLDERS' EQUITY:
COMMON STOCK $1 $1 ($647,985) $718,043
RETAINED EARNINGS (DEFICIT) (44) (177) 289,357 (944,630)
PREFERRED STOCK 0
-------------- ------------ ---------------- ------------
TOTAL STOCKHOLDERS' EQUITY (43) (176) (358,628) (226,587)
-------------- ------------ ---------------- ------------
LONG-TERM DEBT:
LONG-TERM DEBT (10,384) 504,580
LONG-TERM DEBT OF ASSOCIATED
COMPANIES 694,097
-------------- ------------ ---------------- ------------
TOTAL LONG-TERM DEBT 0 0 (10,384) 1,198,677
-------------- ------------ ---------------- ------------
TOTAL CAPITALIZATION (43) (176) (369,012) 972,090
-------------- ------------ ---------------- ------------
CURRENT LIABILITIES:
ACCOUNTS PAYABLE (24) 644 (18,148) 44,731
ACCOUNTS PAYABLE TO ASSOCIATED
COMPANIES 797 797
NOTES PAYABLE TO ASSOCIATED
COMPANIES 57,700
INTEREST PAYABLE TO ASSOCIATED
COMPANIES 15,216 15,216
CURRENT PORTION OF LONG-TERM DEBT 10,384 10,384
OTHER (1) 2,759
-------------- ------------ ---------------- ------------
TOTAL CURRENT LIABILITIES (24) 644 8,248 131,587
-------------- ------------ ---------------- ------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME
TAXES 41 1 297,624
UNAMORTIZED INVESTMENT TAX
CREDIT 3,601
OTHER (3) (1) 3,014
-------------- ------------ ---------------- ------------
TOTAL DEFERRED CREDITS 0 38 0 304,239
-------------- ------------ ---------------- ------------
TOTAL ($67) $506 ($360,764) $1,407,916
============== ============ ================ ============
</TABLE>
20 of 30
<PAGE>
KBL CABLE, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS (DEFICIT)
TWELVE MONTHS ENDED DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
KBL
CABLESYSTEMS
OF THE
KBL SOUTHWEST, INC. KBL - TV ELIMINATIONS/
CABLE, INC. CONSOLIDATED INCORPORATED RECLASSIFICATION CONSOLIDATED
------------ ---------------- ------------- ---------------- -------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $233,467 $10,437 $243,904
---------- ---------- -------- -------- ----------
OPERATING EXPENSES:
CABLE TELEVISION ($605) 129,595 9,541 138,531
DEPRECIATION AND AMORTIZATION 6,331 70,295 874 77,500
---------- ---------- -------- -------- ----------
TOTAL 5,726 199,890 10,415 0 216,031
---------- ---------- -------- -------- ----------
OPERATING INCOME (LOSS) (5,726) 33,577 22 0 27,873
---------- ---------- -------- -------- ----------
OTHER INCOME (EXPENSE) - NET (867) 565 (2) (304)
---------- ---------- -------- -------- ----------
FIXED CHARGES:
INTEREST ON LONG-TERM DEBT 44,996 (436) 44,560
OTHER INTEREST (52,413) 81,740 29,327
---------- ---------- -------- -------- ----------
TOTAL FIXED CHARGES (7,417) 81,304 0 0 73,887
---------- ---------- -------- -------- ----------
INCOME (LOSS) BEFORE INCOME TAXES 824 (47,162) 20 0 (46,318)
---------- ---------- -------- -------- ----------
INCOME TAXES (8,315) 129 (8,186)
---------- ---------- -------- -------- ----------
EARNINGS (LOSS) FOR COMMON STOCK 9,139 (47,291) 20 0 (38,132)
EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES (30,153) 0 $30,153 0
DIVIDENDS ON PREFERRED STOCK HELD BY PARENT 0 0 0
---------- ---------- -------- -------- ----------
NET CHANGE TO RETAINED EARNINGS (DEFICIT) (21,014) (47,291) 20 30,153 (38,132)
---------- ---------- -------- -------- ----------
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD (421,222) (221,397) (4,462) 225,865 (421,216)
ADJUSTMENT TO BEGINNING RETAINED EARNINGS
(DEFICIT) (2) (3,861) 0 4,275 414
---------- ---------- -------- -------- ----------
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD
- ADJUSTED (425,083) (221,397) (4,462) 230,140 (420,802)
---------- ---------- -------- -------- ----------
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD ($446,097) ($268,688) ($4,442) $260,293 ($458,934)
========== ========== ======== ======== ==========
EARNINGS (LOSS) PER COMMON SHARE (1) $0.07 ($0.36) $0.00 ($0.29)
========== ========== ======== -------- ==========
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
OF HOUSTON INDUSTRIES INCORPORATED (000'S) - 130,004
(2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT
A 1992 TAX ADJUSTMENT.
</TABLE>
21 of 30
<PAGE>
KBL CABLE, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
KBL
CABLESYSTEMS
OF THE
KBL SOUTHWEST, INC. KBL - TV ELIMINATIONS/
CABLE, INC. CONSOLIDATED INCORPORATED RECLASSIFICATION CONSOLIDATED
----------- --------------- ------------- ----------------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $9 $1,913 $162 $2,084
ACCOUNTS RECEIVABLE - OTHER 158,163 (580,643) (5,397) (427,877)
ACCOUNTS RECEIVABLE - CUSTOMER 5,243 (340) 4,903
INVENTORIES 6,073 6,073
OTHER 2,576 116 2,692
----------- --------- -------- --------- ----------
TOTAL CURRENT ASSETS 158,172 (564,838) (5,459) 0 (412,125)
----------- --------- -------- --------- ----------
PROPERTY, PLANT AND EQUIPMENT 27,267 327,024 5,198 359,489
ACCUMULATED DEPRECIATION (15,391) (130,732) (2,682) (148,805)
----------- --------- -------- --------- ----------
NET PROPERTY, PLANT AND EQUIPMENT 11,876 196,292 2,516 0 210,684
----------- --------- -------- --------- ----------
OTHER ASSETS:
CABLE TELEVISION INVESTMENT 0 0
INVESTMENT IN ASSOCIATED COMPANIES 600,692 0 ($600,692) 0
FRANCHISES & INTANGIBLE ASSETS 24,603 959,381 983,984
DEFERRED DEBITS AND OTHER INVESTMENTS 94,122 1,408 47 95,577
----------- --------- -------- --------- ----------
TOTAL OTHER ASSETS 719,417 960,789 47 (600,692) 1,079,561
----------- --------- -------- --------- ----------
TOTAL $889,465 $592,243 ($2,896) ($600,692) $878,120
=========== ========= ======== ========= ==========
LIABILITIES AND STOCKHOLDERS' EQUITY:
STOCKHOLDERS' EQUITY:
PREFERRED STOCK $600,000 ($600,000) $0
COMMON STOCK $564,914 260,983 $1 (260,985) 564,913
RETAINED EARNINGS (DEFICIT) (446,097) (268,688) (4,442) 260,293 (458,934)
----------- --------- -------- --------- ----------
TOTAL STOCKHOLDERS' EQUITY 118,817 592,295 (4,441) (600,692) 105,979
----------- --------- -------- --------- ----------
LONG-TERM DEBT:
LONG-TERM DEBT 514,964 0 514,964
LONG-TERM DEBT OF ASSOCIATED
COMPANIES 0 0
----------- --------- -------- --------- ----------
TOTAL LONG-TERM DEBT 514,964 0 0 0 514,964
----------- --------- -------- --------- ----------
TOTAL CAPITALIZATION 633,781 592,295 (4,441) (600,692) 620,943
----------- --------- -------- --------- ----------
CURRENT LIABILITIES:
ACCOUNTS PAYABLE 15,281 13,267 1,109 29,657
ACCOUNTS PAYABLE TO ASSOCIATED
COMPANIES 0 0
NOTES PAYABLE TO ASSOCIATED COMPANIES (17,100) (17,100)
INTEREST PAYABLE TO ASSOCIATED
COMPANIES 0 0
OTHER 2,552 208 2,760
----------- --------- -------- --------- ----------
TOTAL CURRENT LIABILITIES 15,281 (1,281) 1,317 0 15,317
----------- --------- -------- --------- ----------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES 237,961 0 237,961
UNAMORTIZED INVESTMENT TAX CREDIT 2,442 0 2,442
OTHER 1,229 228 1,457
----------- --------- -------- --------- ----------
TOTAL DEFERRED CREDITS 240,403 1,229 228 0 241,860
----------- --------- -------- --------- ----------
TOTAL $889,465 $592,243 ($2,896) ($600,692) $878,120
=========== ========= ======== ========= ==========
</TABLE>
22 of 30
<PAGE>
KBL CABLESYSTEMS OF THE SOUTHWEST, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS (DEFICIT)
TWELVE MONTHS ENDED DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
KBL KBL
KBL CABLESYSTEMS CABLESYSTEMS
CABLESYSTEMS OF MULTNOMAH, OF MINNEAPOLIS, TVE
OF THE INC. INC. KBL CABLE TRANSMISSION,
SOUTHWEST, INC. CONSOLIDATED CONSOLIDATED TV, INC. INC.
--------------- ------------ --------------- --------- -------------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES $167,374 $19,004 $24,921 $17
--------------- ------------ --------------- --------- -------------
OPERATING EXPENSES:
CABLE TELEVISION 91,086 10,525 15,453 0 7
DEPRECIATION AND
AMORTIZATION 42,526 5,085 7,300 15
--------------- ------------ --------------- --------- -------------
TOTAL 133,612 15,610 22,753 0 22
--------------- ------------ --------------- --------- -------------
OPERATING INCOME (LOSS) 33,762 3,394 2,168 0 (5)
--------------- ------------ --------------- --------- -------------
OTHER INCOME (EXPENSE) -
NET 844 40 (352)
--------------- ------------ --------------- --------- -------------
FIXED CHARGES:
INTEREST ON LONG-TERM
DEBT (334) (41) (46)
OTHER INTEREST 35,364 8,346 13,797 ($1)
--------------- ------------ --------------- --------- -------------
TOTAL FIXED CHARGES 35,030 8,305 13,751 (1) 0
--------------- ------------ --------------- --------- -------------
INCOME (LOSS) BEFORE
INCOME TAXES (424) (4,871) (11,935) 1 (5)
--------------- ------------ --------------- --------- -------------
INCOME TAXES 82 18 5 (0)
--------------- ------------ --------------- --------- -------------
EARNINGS (LOSS) FOR COMMON
STOCK (506) (4,889) (11,940) 1 (5)
EQUITY IN EARNINGS (LOSS)
OF SUBSIDIARIES (46,681) 0 0 (286)
DIVIDENDS ON PREFERRED
STOCK HELD BY PARENT
--------------- ------------ --------------- --------- -------------
NET CHANGE TO RETAINED
EARNINGS (DEFICIT) (47,187) (4,889) (11,940) (285) (5)
--------------- ------------ --------------- --------- -------------
RETAINED EARNINGS (DEFICIT)
AT BEGINNING OF PERIOD (311,735) (21,874) (46,720) (1,007) 96
ADJUSTMENT TO BEGINNING
RETAINED EARNINGS (DEFICIT) (2) 86,099 0 (42) (271)
--------------- ------------ --------------- --------- -------------
RETAINED EARNINGS (DEFICIT) AT
BEGINNING OF PERIOD - ADJUSTED (225,636) (21,874) (46,762) (1,278) 96
--------------- ------------ --------------- --------- -------------
RETAINED EARNINGS (DEFICIT) AT
END OF PERIOD ($272,823) ($26,763) ($58,702) ($1,563) $91
=============== ============ =============== ========= =============
EARNINGS (LOSS) PER COMMON
SHARE (1) ($0.00) ($0.04) ($0.09) $0.00 ($0.00)
=============== ============ =============== ========= =============
</TABLE>
<TABLE>
<CAPTION>
DICKINSON
PACIFIC KBL-PORTLAND ELIMINATIONS/
CABLESYSTEMS CABLESYSTEMS LP RECLASSIFICATION CONSOLIDATED
------------ --------------- ---------------- ------------
<S> <C> <C> <C> <C>
OPERATING REVENUES $22,151 $233,467
------------ --------------- ---------------- ------------
OPERATING EXPENSES:
CABLE TELEVISION 12,524 129,595
DEPRECIATION AND AMORTIZATION $7,197 8,172 70,295
------------ --------------- ---------------- ------------
TOTAL 7,197 20,696 0 199,890
------------ --------------- ---------------- ------------
OPERATING INCOME (LOSS) (7,197) 1,455 0 33,577
------------ --------------- ---------------- ------------
OTHER INCOME (EXPENSE) - NET 114 ($81) 565
------------ --------------- ---------------- ------------
FIXED CHARGES:
INTEREST ON LONG-TERM DEBT (15) (436)
OTHER INTEREST 13,313 10,921 81,740
------------ --------------- ---------------- ------------
TOTAL FIXED CHARGES 13,313 10,906 0 81,304
------------ --------------- ---------------- ------------
INCOME (LOSS) BEFORE INCOME TAXES (20,510) (9,337) (81) (47,162)
------------ --------------- ---------------- ------------
INCOME TAXES 24 129
------------ --------------- ---------------- ------------
EARNINGS (LOSS) FOR COMMON STOCK (20,510) (9,361) (81) (47,291)
EQUITY IN EARNINGS (LOSS)
OF SUBSIDIARIES 46,967 0
DIVIDENDS ON PREFERRED
STOCK HELD BY PARENT 0
------------ --------------- ---------------- ------------
NET CHANGE TO RETAINED
EARNINGS (DEFICIT) (20,510) (9,361) 46,886 (47,291)
------------ --------------- ---------------- ------------
RETAINED EARNINGS (DEFICIT)
AT BEGINNING OF PERIOD (48,639) (35,139) 243,621 (221,397)
ADJUSTMENT TO BEGINNING RETAINED
EARNINGS (DEFICIT) (2) (85,786) 0
------------ --------------- ---------------- ------------
RETAINED EARNINGS (DEFICIT) AT
BEGINNING OF PERIOD - ADJUSTED (48,639) (35,139) 157,835 (221,397)
------------ --------------- ---------------- ------------
RETAINED EARNINGS (DEFICIT) AT END OF
PERIOD ($69,149) ($44,500) $204,721 ($268,688)
============ =============== ================ ============
EARNINGS (LOSS) PER COMMON SHARE (1) ($0.16) ($0.07) ($0.36)
============ =============== ================ ============
</TABLE>
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
OF HOUSTON INDUSTRIES INCORPORATED (000'S) - 130,004
(2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT
THE MERGER OF KBL CABLESYSTEMS OF AMERICA, INC. AND
KBL U.S. CABLESYSTEMS, INC. INTO KBL CABLESYSTEMS
OF THE SOUTHWEST, INC., THE REORGANIZATION OF CERTAIN
FINANCIAL INFORMATION AS A RESULT OF THIS MERGER AND
THE RECLASSIFICATION OF CERTAIN INVESTMENT IN SUBSIDIARY
BALANCES.
23 of 30
<PAGE>
KBL CABLESYSTEMS OF THE SOUTHWEST, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
KBL KBL
KBL CABLESYSTEMS CABLESYSTEMS
CABLESYSTEMS OF MULTNOMAH, OF MINNEAPOLIS, TVE
OF THE INC. INC. KBL CABLE TRANSMISSION,
SOUTHWEST, INC. CONSOLIDATED CONSOLIDATED TV, INC. INC.
--------------- ------------- --------------- --------- -------------
<S> <C> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $1,791 $0 $18
ACCOUNTS RECEIVABLE - OTHER (194) (98,908) (178,833) ($139) ($130)
ACCOUNTS RECEIVABLE -
CUSTOMER 3,206 779 1,162
INVENTORIES 4,377 1 843
OTHER 1,893 32 177
--------------- ------------- --------------- --------- -------------
TOTAL CURRENT ASSETS 11,073 (98,096) (176,633) (139) (130)
--------------- ------------- --------------- --------- -------------
PROPERTY, PLANT AND EQUIPMENT 198,281 $24,218 39,836 $252
ACCUMULATED DEPRECIATION (75,597) (7,609) (16,494) (30)
--------------- ------------- --------------- --------- -------------
NET PROPERTY, PLANT AND
EQUIPMENT 122,684 16,609 23,342 0 222
--------------- ------------- --------------- --------- -------------
OTHER ASSETS:
CABLE TELEVISION INVESTMENT
INVESTMENT IN ASSOCIATED
COMPANIES (155,731) (234) 0 (1,194)
FRANCHISES & INTANGIBLE
ASSETS 603,202 63,999 110,365
DEFERRED DEBITS AND OTHER
INVESTMENTS 1,181 0 45
--------------- ------------- --------------- --------- -------------
TOTAL OTHER ASSETS 448,652 63,765 110,410 (1,194) 0
--------------- ------------- --------------- --------- -------------
TOTAL $582,409 ($17,722) ($42,881) ($1,333) $92
=============== ============= =============== ========= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
STOCKHOLDERS' EQUITY:
PREFERRED STOCK $600,000
COMMON STOCK 260,983 $8,832 $13,101 $230 $1
RETAINED EARNINGS (DEFICIT) (272,823) (26,763) (58,702) (1,563) 91
--------------- ------------- --------------- --------- -------------
TOTAL STOCKHOLDERS'
EQUITY 588,160 (17,931) (45,601) (1,333) 92
--------------- ------------- --------------- --------- -------------
LONG-TERM DEBT:
LONG-TERM DEBT 0 0
LONG-TERM DEBT OF ASSOCIATED
COMPANIES 0 0
--------------- ------------- --------------- --------- -------------
TOTAL LONG-TERM DEBT 0 0 0 0 0
--------------- ------------- --------------- --------- -------------
TOTAL CAPITALIZATION 588,160 (17,931) (45,601) (1,333) 92
--------------- ------------- --------------- --------- -------------
CURRENT LIABILITIES:
ACCOUNTS PAYABLE 8,544 276 2,625 0
ACCOUNTS PAYABLE TO
ASSOCIATED COMPANIES 0 0
NOTES PAYABLE TO
ASSOCIATED COMPANIES (17,100) 0 0
INTEREST PAYABLE TO
ASSOCIATED COMPANIES 0 0
OTHER 1,576 (67) 95
--------------- ------------- --------------- --------- -------------
TOTAL CURRENT
LIABILITIES (6,980) 209 2,720 0 0
--------------- ------------- --------------- --------- -------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME
TAXES 0 0
UNAMORTIZED INVESTMENT TAX
CREDIT 0 0
OTHER 1,229 0 0
--------------- ------------- --------------- --------- -------------
TOTAL DEFERRED CREDITS 1,229 0 0 0 0
--------------- ------------- --------------- --------- -------------
TOTAL $582,409 ($17,722) ($42,881) ($1,333) $92
=============== ============= =============== ========= =============
</TABLE>
<TABLE>
<CAPTION>
DICKINSON
PACIFIC KBL-PROTLAND ELIMINATIONS/
CABLESYSTEMS CABLESYSTEMS LP RECLASSIFICATION CONSOLIDATED
------------ --------------- ---------------- ------------
<S> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $104 $1,913
ACCOUNTS RECEIVABLE - OTHER ($168,209) (134,230) (580,643)
ACCOUNTS RECEIVABLE -
CUSTOMER 96 5,243
INVENTORIES 852 6,073
OTHER 474 2,576
------------ --------------- ---------------- ------------
TOTAL CURRENT ASSETS (168,209) (132,704) 0 (564,838)
------------ --------------- ---------------- ------------
PROPERTY, PLANT AND EQUIPMENT $29,996 34,441 327,024
ACCUMULATED DEPRECIATION (16,746) (14,256) (130,732)
------------ --------------- ---------------- ------------
NET PROPERTY, PLANT AND
EQUIPMENT 13,250 20,185 0 196,292
------------ --------------- ---------------- ------------
OTHER ASSETS:
CABLE TELEVISION INVESTMENT 0
INVESTMENT IN ASSOCIATED
COMPANIES $157,159 0
FRANCHISES & INTANGIBLE
ASSETS 99,952 81,863 959,381
DEFERRED DEBITS AND OTHER
INVESTMENTS 178 4 1,408
------------ --------------- ---------------- ------------
TOTAL OTHER ASSETS 99,952 82,041 157,163 960,789
------------ --------------- ---------------- ------------
TOTAL ($55,007) ($30,478) $157,163 $592,243
============ =============== ================ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
STOCKHOLDERS' EQUITY:
PREFERRED STOCK $600,000
COMMON STOCK $14,142 $11,715 ($48,021) 260,983
RETAINED EARNINGS (DEFICIT) (69,149) (44,500) 204,721 (268,688)
------------ --------------- ---------------- ------------
TOTAL STOCKHOLDERS'
EQUITY (55,007) (32,785) 156,700 592,295
------------ --------------- ---------------- ------------
LONG-TERM DEBT:
LONG-TERM DEBT 0
LONG-TERM DEBT OF ASSOCIATED
COMPANIES 0
------------ --------------- ---------------- ------------
TOTAL LONG-TERM DEBT 0 0 0 0
------------ --------------- ---------------- ------------
TOTAL CAPITALIZATION (55,007) (32,785) 156,700 592,295
------------ --------------- ---------------- ------------
CURRENT LIABILITIES:
ACCOUNTS PAYABLE 1,822 13,267
ACCOUNTS PAYABLE TO
ASSOCIATED COMPANIES 0
NOTES PAYABLE TO
ASSOCIATED COMPANIES (17,100)
INTEREST PAYABLE TO
ASSOCIATED COMPANIES 0
OTHER 485 463 2,552
------------ --------------- ---------------- ------------
TOTAL CURRENT
LIABILITIES 0 2,307 463 (1,281)
------------ --------------- ---------------- ------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME
TAXES 0
UNAMORTIZED INVESTMENT TAX
CREDIT 0
OTHER 1,229
------------ --------------- ---------------- ------------
TOTAL DEFERRED CREDITS 0 0 0 1,229
------------ --------------- ---------------- ------------
TOTAL ($55,007) ($30,478) $157,163 $592,243
============ =============== ================ ============
</TABLE>
24 of 30
<PAGE>
KBL CABLESYSTEMS OF MULTNOMAH, INC.
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS (DEFICIT)
TWELVE MONTHS ENDED DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
KBL
CABLESYSTEMS
OF MULTNOMAH, KBL - MULTNOMAH ELIMINATIONS/
INC. CABLESYSTEMS LP RECLASSIFICATION CONSOLIDATED
------------- --------------- ---------------- ------------
<S> <C> <C> <C> <C>
OPERATING REVENUES $19,004 $19,004
------------- --------------- ---------------- ------------
OPERATING EXPENSES:
CABLE TELEVISION 10,525 10,525
DEPRECIATION AND AMORTIZATION $1 5,084 5,085
------------- --------------- ---------------- ------------
TOTAL 1 15,609 0 15,610
------------- --------------- ---------------- ------------
OPERATING INCOME (LOSS) (1) 3,395 0 3,394
------------- --------------- ---------------- ------------
OTHER INCOME (EXPENSE) - NET 0 (8) $48 40
------------- --------------- ---------------- ------------
FIXED CHARGES:
INTEREST ON LONG-TERM DEBT (41) (41)
OTHER INTEREST $133 8,213 8,346
------------- --------------- ---------------- ------------
TOTAL FIXED CHARGES 133 8,172 0 8,305
------------- --------------- ---------------- ------------
INCOME (LOSS) BEFORE INCOME TAXES (134) (4,785) 48 (4,871)
------------- --------------- ---------------- ------------
INCOME TAXES 18 18
------------- --------------- ---------------- ------------
EARNINGS (LOSS) FOR COMMON STOCK (134) (4,803) 48 (4,889)
EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES (4,850) 4,850 0
DIVIDENDS ON PREFERRED STOCK HELD BY PARENT 0
------------- --------------- ---------------- ------------
NET CHANGE TO RETAINED EARNINGS (DEFICIT) (4,984) (4,803) 4,898 (4,889)
------------- --------------- ---------------- ------------
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD (19,645) (21,664) 19,435 (21,874)
ADJUSTMENT TO BEGINNING RETAINED EARNINGS (DEFICIT) (2) (2,323) 2,323 0
------------- --------------- ---------------- ------------
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD - ADJUSTED (21,968) (21,664) 21,758 (21,874)
------------- --------------- ---------------- ------------
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD ($26,952) ($26,467) $26,656 ($26,763)
============= =============== ================ ============
EARNINGS (LOSS) PER COMMON SHARE (1) ($0.00) ($0.04) ($0.04)
============= =============== ================ ============
</TABLE>
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
OF HOUSTON INDUSTRIES INCORPORATED (000'S) - 130,004
(2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT
THE RECLASSIFICATION OF CERTAIN INVESTMENT IN SUBSIDIARY
BALANCES.
25 of 30
<PAGE>
KBL CABLESYSTEMS OF MULTNOMAH, INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
KBL
CABLESYSTEMS
OF MULTNOMAH, KBL - MULTNOMAH ELIMINATIONS/
INC. CABLESYSTEMS LP RECLASSIFICATION CONSOLIDATED
------------- --------------- ---------------- ------------
<S> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS
ACCOUNTS RECEIVABLE - OTHER ($312) ($98,596) ($98,908)
ACCOUNTS RECEIVABLE - CUSTOMER 0 779 779
INVENTORIES 0 1 1
OTHER 0 32 32
------------- --------------- ---------------- ------------
TOTAL CURRENT ASSETS (312) (97,784) 0 (98,096)
------------- --------------- ---------------- ------------
PROPERTY, PLANT AND EQUIPMENT 24,218 $24,218
ACCUMULATED DEPRECIATION (7,609) (7,609)
------------- --------------- ---------------- ------------
NET PROPERTY, PLANT AND EQUIPMENT 0 16,609 0 16,609
------------- --------------- ---------------- ------------
OTHER ASSETS:
CABLE TELEVISION INVESTMENT 0
INVESTMENT IN ASSOCIATED COMPANIES (17,788) $17,554 (234)
FRANCHISES & INTANGIBLE ASSETS 9 63,990 63,999
DEFERRED DEBITS AND OTHER INVESTMENTS 0
------------- --------------- ---------------- ------------
TOTAL OTHER ASSETS (17,779) 63,990 17,554 63,765
------------- --------------- ---------------- ------------
TOTAL ($18,091) ($17,185) $17,554 ($17,722)
============= =============== ================ ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
STOCKHOLDERS' EQUITY:
COMMON STOCK $8,861 $8,832 ($8,861) $8,832
RETAINED EARNINGS (DEFICIT) (26,952) (26,467) 26,656 (26,763)
------------- --------------- ---------------- ------------
TOTAL STOCKHOLDERS' EQUITY (18,091) (17,635) 17,795 (17,931)
------------- --------------- ---------------- ------------
LONG-TERM DEBT:
LONG-TERM DEBT 0
LONG-TERM DEBT OF ASSOCIATED COMPANIES 0
------------- --------------- ---------------- ------------
TOTAL LONG-TERM DEBT 0 0 0 0
------------- --------------- ---------------- ------------
TOTAL CAPITALIZATION (18,091) (17,635) 17,795 (17,931)
------------- --------------- ---------------- ------------
CURRENT LIABILITIES:
ACCOUNTS PAYABLE 276 276
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 0
NOTES PAYABLE TO ASSOCIATED COMPANIES 0
INTEREST PAYABLE TO ASSOCIATED COMPANIES 0
OTHER 174 (241) (67)
------------- --------------- ---------------- ------------
TOTAL CURRENT LIABILITIES 0 450 (241) 209
------------- --------------- ---------------- ------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES 0
UNAMORTIZED INVESTMENT TAX CREDIT 0
OTHER 0
------------- --------------- ---------------- ------------
TOTAL DEFERRED CREDITS 0 0 0 0
------------- --------------- ---------------- ------------
TOTAL ($18,091) ($17,185) $17,554 ($17,722)
============= =============== ================ ============
</TABLE>
26 of 30
<PAGE>
KBL CABLESYSTEMS OF MINNEAPOLIS, INC.
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS (DEFICIT)
TWELVE MONTHS ENDED DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
KBL
CABLESYSTEMS KBL
OF MINNEAPOLIS, CABLESYSTEMS OF ELIMINATIONS/
INC. MINNEAPOLIS LP RECLASSIFICATION CONSOLIDATED
--------------- -------------- ---------------- ------------
<S> <C> <C> <C> <C>
OPERATING REVENUES $24,921 $24,921
--------------- -------------- ---------------- ------------
OPERATING EXPENSES:
CABLE TELEVISION 15,453 15,453
DEPRECIATION AND AMORTIZATION $2,059 5,241 7,300
--------------- -------------- ---------------- ------------
TOTAL 2,059 20,694 0 22,753
--------------- -------------- ---------------- ------------
OPERATING INCOME (LOSS) (2,059) 4,227 0 2,168
--------------- -------------- ---------------- ------------
OTHER INCOME (EXPENSE) - NET 682 (1,067) $33 (352)
--------------- -------------- ---------------- ------------
FIXED CHARGES:
INTEREST ON LONG-TERM DEBT (46) (46)
OTHER INTEREST 7,999 5,798 13,797
--------------- -------------- ---------------- ------------
TOTAL FIXED CHARGES 7,999 5,752 0 13,751
--------------- -------------- ---------------- ------------
INCOME (LOSS) BEFORE INCOME TAXES (9,376) (2,592) 33 (11,935)
--------------- -------------- ---------------- ------------
INCOME TAXES 5 5
--------------- -------------- ---------------- ------------
EARNINGS (LOSS) FOR COMMON STOCK (9,376) (2,597) 33 (11,940)
EQUITY IN EARNINGS (LOSS) OF SUBSIDIARIES (12,387) 12,387 0
DIVIDENDS ON PREFERRED STOCK HELD BY PARENT 0
--------------- -------------- ---------------- ------------
NET CHANGE TO RETAINED EARNINGS (DEFICIT) (21,763) (2,597) 12,420 (11,940)
--------------- -------------- ---------------- ------------
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD (46,570) (49,742) 49,592 (46,720)
ADJUSTMENT TO BEGINNING RETAINED EARNINGS (DEFICIT) (2) 823 (42) (823) (42)
--------------- -------------- ---------------- ------------
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD - ADJUSTED (45,747) (49,784) 48,769 (46,762)
--------------- -------------- ---------------- ------------
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD ($67,510) ($52,381) $61,189 ($58,702)
=============== ============== ================ ============
EARNINGS (LOSS) PER COMMON SHARE (1) ($0.07) ($0.02) ($0.09)
=============== ============== ================ ============
</TABLE>
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
OF HOUSTON INDUSTRIES INCORPORATED (000'S) - 130,004
(2) RETAINED EARNINGS HAS BEEN ADJUSTED TO REFLECT
THE RECLASSIFICATION OF CERTAIN INVESTMENT IN SUBSIDIARY
BALANCES AND THE REORGANIZATION OF CERTAIN FINANCIAL
INFORMATION AS THE RESULT OF THE MERGER OF KBL CABLESYSTEMS
OF AMERICA, INC. AND KBL U.S. CABLESYSTEMS, INC. INTO KBL CABLESYSTEMS
OF THE SOUTHWEST, INC.
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<PAGE>
KBL CABLESYSTEMS OF MINNEAPOLIS, INC.
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1993
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
KBL
CABLESYSTEMS KBL
OF MINNEAPOLIS, CABLESYSTEMS OF ELIMINATIONS/
INC. MINNEAPOLIS LP RECLASSIFICATION CONSOLIDATED
----------------- --------------- ----------------- ------------
<S> <C> <C> <C> <C>
ASSETS:
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS $3 $15 $18
ACCOUNTS RECEIVABLE - OTHER (110,653) (68,180) (178,833)
ACCOUNTS RECEIVABLE - CUSTOMER 1,162 1,162
INVENTORIES 843 843
OTHER 51 126 177
----------------- --------------- ----------------- ------------
TOTAL CURRENT ASSETS (110,599) (66,034) 0 (176,633)
----------------- --------------- ----------------- ------------
PROPERTY, PLANT AND EQUIPMENT (28,807) 68,643 39,836
ACCUMULATED DEPRECIATION 19,751 (36,245) (16,494)
----------------- --------------- ----------------- ------------
NET PROPERTY, PLANT AND EQUIPMENT (9,056) 32,398 0 23,342
----------------- --------------- ----------------- ------------
OTHER ASSETS:
CABLE TELEVISION INVESTMENT 0
INVESTMENT IN ASSOCIATED COMPANIES (47,586) $47,586 0
FRANCHISES & INTANGIBLE ASSETS 107,847 2,518 110,365
DEFERRED DEBITS AND OTHER INVESTMENTS (18) 63 45
----------------- --------------- ----------------- ------------
TOTAL OTHER ASSETS 60,242 2,581 47,587 110,410
----------------- --------------- ----------------- ------------
TOTAL ($59,413) ($31,055) $47,587 ($42,881)
================= =============== ================= ============
LIABILITIES AND STOCKHOLDERS' EQUITY:
STOCKHOLDERS' EQUITY:
COMMON STOCK $8,097 $18,384 ($13,380) $13,101
RETAINED EARNINGS (DEFICIT) (67,510) (52,381) 61,189 (58,702)
----------------- --------------- ----------------- ------------
TOTAL STOCKHOLDERS' EQUITY (59,413) (33,997) 47,809 (45,601)
----------------- --------------- ----------------- ------------
LONG-TERM DEBT:
LONG-TERM DEBT 0
LONG-TERM DEBT OF ASSOCIATED COMPANIES 0
----------------- --------------- ----------------- ------------
TOTAL LONG-TERM DEBT 0 0 0 0
----------------- --------------- ----------------- ------------
TOTAL CAPITALIZATION (59,413) (33,997) 47,809 (45,601)
----------------- --------------- ----------------- ------------
CURRENT LIABILITIES:
ACCOUNTS PAYABLE 2,625 2,625
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 0
NOTES PAYABLE TO ASSOCIATED COMPANIES 0
INTEREST PAYABLE TO ASSOCIATED COMPANIES 0
OTHER 317 (222) 95
----------------- --------------- ----------------- ------------
TOTAL CURRENT LIABILITIES 0 2,942 (222) 2,720
----------------- --------------- ----------------- ------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES 0
UNAMORTIZED INVESTMENT TAX CREDIT 0
OTHER 0
----------------- --------------- ----------------- ------------
TOTAL DEFERRED CREDITS 0 0 0 0
----------------- --------------- ----------------- ------------
TOTAL ($59,413) ($31,055) $47,587 ($42,881)
================= =============== ================= ============
</TABLE>
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<PAGE>
EXHIBIT B
---------
Organizational Chart of System Companies
----------------------------------------
Houston Industries Incorporated
(a Texas corporation, "HI")
Houston Argentina S.A. (100% owned by HI)*
(an Argentine corporation, "HI Argentina")
Compania de Inversiones en Electricidad S.A. (32.5% owned by HI Argentina)
(an Argentine corporation, "COINELEC")
Empresa Distribuidora La Plata S.A. (51% owned by COINELEC)
(an Argentine corporation)
Central Dique S.A. (51% owned by COINELEC)
(an Argentine corporation)
* Subject to the approval of the Argentine government, HI intends to transfer
its ownership interest in HI Argentina to HI Energy.
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<PAGE>
EXHIBIT C
---------
Financial Data Schedule
-----------------------
Houston Industries Incorporated
(Thousands of Dollars)
<TABLE>
<CAPTION>
<S> <C>
Consolidated Total Assets $12,230,177
Consolidated Total Operating Revenues $ 4,323,930
Consolidated Net Income $ 416,036
</TABLE>
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