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Previous: G T GLOBAL GROWTH SERIES, 24F-2NT, 1996-02-29 |
Next: KYSOR INDUSTRIAL CORP /MI/, 8-K, 1996-02-29 |
<PAGE>
HOUSTON INDUSTRIES INCORPORATED
FORM U-3A-2
FOR CALENDAR YEAR 1995
This report consists of 34 consecutively numbered pages.
<PAGE>
File No. 1-7629
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D. C.
FORM U-3A-2
Statement by Holding Company Claiming
Exemption Under Rule U-3A-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 (1935 Act), 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.
Houston Industries Incorporated. Claimant is Houston
Industries Incorporated, a Texas corporation having its
principal place of business at 1111 Louisiana, Houston, Texas
77002. 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.
Houston Lighting & Power Company. Claimant has one
subsidiary which is a "public utility company" as defined in
Section 2(a)(5) of the 1935 Act, namely Houston Lighting &
Power Company (HL&P), a Texas corporation having its principal
place of business at 1111 Louisiana, 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
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<PAGE>
5,000 square mile area on the Texas Gulf Coast, including
Houston.
HL&P Receivables, Inc., a Delaware corporation and
a wholly-owned subsidiary of HL&P, holds an interest in
a trust for railroad settlement payments received by
HL&P. HL&P Receivables, Inc. is located at 1111
Louisiana, Houston, Texas 77002.
Houston Industries Energy, Inc. Houston Industries
Energy, Inc. (HI Energy), a Delaware corporation having its
principal place of business at 1111 Louisiana, Houston, Texas
77002, participates in domestic and foreign power generation
projects and invests in the privatization of foreign electric
utility systems.
Houston Argentina S.A. (Houston Argentina), a
wholly-owned subsidiary of HI Energy, is an Argentine
corporation located in Buenos Aires, Argentina, the
principal assets of which are: (i) a 100% beneficial
ownership interest in HIE Argener, S.A. (HIE Argener),
a wholly-owned Argentine corporation, formed to develop,
own and operate a 160 MW cogeneration project located at
a steel plant near San Nicolas, Argentina; (ii) a 100%
beneficial ownership interest in HIE Opco S.A. (HIE
Opco), a wholly-owned Argentine corporation, formed to
operate and manage HIE Argener's cogeneration project;
and (iii) a 32.5% ownership interest in an Argentine
holding company which, in turn, owns a controlling
interest in (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. (Central Dique), an Argentine corporation formed to
own and operate the electrical generating assets of
EDELAP. Houston Argentina provides management and
technical services to EDELAP and Central Dique.
Industrias Electricas de Houston S.A. (Industrias),
a wholly-owned subsidiary of HI Energy, is an Argentine
corporation located in Buenos Aires, Argentina, the
principal asset of which is a 90% interest in Empresa
Distribuidora de Electricidad de Santiago del Estero
S.A.(EDESE), an Argentine corporation formed in January
1995 which provides electric utility services to the
Province of Santiago del Estero in northern Argentina.
Houston Industries Energy - India, Inc. (HIE
India), a wholly-owned subsidiary of HI Energy, is
3 of 34
<PAGE>
a Mauritius corporation that owns 100% of the
capital stock of Houston Industries Energy - Rain,
Inc. (HIE Rain), a Mauritius corporation. HIE
Rain, a wholly-owned subsidiary of HIE India, owns
65% of the voting stock of Rain Calcining Limited
(Rain), an Indian corporation, formed to generate
electricity for sale at retail and wholesale in the
State of Andhra Pradesh, India. HI Energy provides
management and technical services to Rain.
For information regarding the assets of HIE Argener
and HIE Opco, reference is made to Section 4(A)(1) of
this Statement. For information regarding the assets of
EDELAP, Central Dique, EDESE, and Rain, reference is
made to Section 4(A)(2) of this Statement. Pursuant to
Section 33(a) of the 1935 Act, none of the foregoing
entities is a "public utility holding company" (as
defined under Section 2(a)(5) of such Act).
HIE Ford Heights, Inc. (HIE Ford Heights), a
wholly-owned subsidiary of HI Energy, is a Delaware
corporation that owns a 20% interest in CGE Ford
Heights, L.L.C. (CGE Ford Heights), a Delaware limited
liability company formed (1) to develop, own, construct
and operate a waste tire processing facility and a tire
combustion facility and (2) to construct and operate an
adjacent recycling facility, all located in the Village
of Ford Heights, Illinois. The principal business
office of HIE Ford Heights is located at 1111 Louisiana,
Houston, Texas 77002.
Houston Industries Energy - Deer Park, Inc. (HIE
Deer Park), a wholly-owned subsidiary of HI Energy, is
a Delaware corporation that manages a cogeneration
facility of Shell Oil Company in Deer Park, Texas. The
principal business office of HIE Deer Park is located at
5700 Hwy. 225 Cogen Gate, Deer Park, Texas 77536.
Neither HIE Ford Heights or HIE Deer Park is an
"EWG", "foreign utility company", or "public utility
holding company", as defined under the 1935 Act.
KBLCOM Incorporated. KBLCOM Incorporated (KBLCOM), a
Delaware corporation, was sold to Time Warner Inc. on July 6,
1995. The Claimant no longer holds, directly or indirectly,
any interest in KBLCOM or its subsidiaries.
4 of 34
<PAGE>
Claimant has six additional subsidiaries, none of which
is material and all of which (except as otherwise noted) are
located at 1111 Louisiana, Houston, Texas 77002, 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 was
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 shares of non-
voting class B common stock of HL&P.
Houston Industries Building, Inc., a Delaware
corporation, owns an office building in downtown Houston,
Texas which is the corporate headquarters for Claimant and its
subsidiaries. During 1995, HL&P made a payment toward the
purchase of an ownership interest in the corporate
headquarters building.
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. The
assets of the joint venture were sold in December 1995.
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, 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
5 of 34
<PAGE>
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, 1995, HL&P owned and
operated 62 generating units located at 12 generating stations
in the Counties of Chambers, Fort Bend, Galveston, Harris,
Limestone and Matagorda having an aggregate turbine nameplate
rating of 13,544,608 kilowatts.
Approximately 32% of HL&P's energy requirements during
1995 was met with natural gas, 43% with coal and lignite, and
9% with nuclear. The remaining 16% was met principally with
purchased power.
HL&P operates 24,385 pole miles of overhead distribution
lines and 3,120 circuit miles of overhead transmission lines
including 658 circuit miles operated at 69,000 volts, 1,959
circuit miles operated at 138,000 volts and 503 circuit miles
operated at 345,000 volts. HL&P operates 9,098 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 RETAIL
OR WHOLESALE), AND MCF. OF NATURAL OR MANUFACTURED GAS
DISTRIBUTED AT RETAIL.
6 of 34
<PAGE>
During calendar year 1995, HL&P sold 61,075,582,119 kwh.
of electric energy as follows:
Energy Sales
kwh.
--------------
Residential 18,103,209,422
Commercial 14,233,412,773
Industrial 27,760,818,869
Other Utilities 860,888,513
Public Authorities 117,252,542
HL&P distributed no natural or manufactured gas during
1995.
(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.
7 of 34
<PAGE>
1. EWGs. The Claimant has an indirect interest in HIE
Argener and HIE Opco; each of which is an EWG as defined in
Section 32 of the 1935 Act. The business address of HIE
Argener and HIE Opco is C.M. Della Paolera 299, 23rd Floor,
1001 Capital Federal, Buenos Aires, Argentina.
HIE Argener owns a cogeneration facility (Facility)
under construction and located near San Nicolas, Argentina.
It is contemplated that the electric energy produced by the
Facility will be sold in the Argentine wholesale electricity
markets. The Facility will consist of one natural gas-fired
turbine generator, one heat recovery steam generator with a
maximum net power production capacity of approximately 160 MW,
one 8 kilometer 220 KV, one-circuit overhead transmission line
interconnecting the Facility to the Ramallo substation on the
Argentine national grid, a one bay 220 KV substation at the
Facility, one incoming bay at the Ramallo substation and
associated transformers, circuit breakers and related
equipment.
HIE Opco, which currently provides operation
and maintenance services for a generation facility of Siderar
S.A.I.C. and will operate the Facility, has no
material physical assets.
2. Foreign Utility Companies.
(a) EDELAP. The Claimant has an indirect interest in
EDELAP, a foreign utility company located in the city of La
Plata, the province of Buenos Aires, Argentina. The business
address of EDELAP 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 250 megawatts. EDELAP
has one substation and 1,499 kilometers of distribution lines
operated at 13,200 volts. Substantially all of the power sold
by EDELAP is transmitted through the Argentine national grid.
(b) Central Dique. The Claimant has an indirect
interest in Central Dique, a foreign utility company located
in the city of La Plata, the province of Buenos Aires,
Argentina. The business address of Central Dique is Calle 50,
No. 543, (1900), La Plata, Argentina.
Central Dique owns the Central Dique Power Plant, which
has five gas turbines with a combined capacity of 84
8 of 34
<PAGE>
megawatts. Electric power generated by Central Dique is sold
at retail under short-term power contracts and at wholesale in the
Argentine wholesale electric market.
(c) EDESE. The Claimant has an indirect interest in
EDESE, an Argentine foreign utility company located in the
city of Santiago del Estero, the province of Santiago del
Estero, Argentina. The business address of EDESE is Avenida
Roca (S) 214, 4200 Santiago del Estero, Argentina.
EDESE distributes electricity to approximately 100,000
customers in the province of Santiago del Estero. Maximum
demand on its system is approximately 65 megawatts. EDESE has
2,260 circuit kilometers of primary distribution voltage
circuitry and 3,450 circuit-kilometers of secondary
distribution voltage circuitry operated at 13,200 volts.
Substantially all of the power sold by EDESE is transmitted
through the Argentine national grid.
(d) Rain. The Claimant has an indirect interest in
Rain, an Indian foreign utility company located in the city
of Hyderabad, the state of Andhra Pradesh, India. The
business address of Rain is 55, Srinagar Colony, Hyderabad 500
073, India.
Rain is developing a petroleum coke calcining facility
that includes a power generation facility capable of
generating an annual average of approximately 41 megawatts of
energy available for sale. Electric power generated by Rain
will be sold at retail to industrial consumers and at
wholesale to the Andhra Pradesh State Electricity Board.
(B) NAME OF EACH SYSTEM COMPANY THAT HOLDS AN INTEREST
IN SUCH EWG OR FOREIGN UTILITY COMPANY; AND DESCRIPTION OF THE
INTEREST HELD.
1. EWGs.
Houston Argentina. Houston Argentina has a 100%
beneficial ownership interest in the capital stock of HIE
Argener. Houston Argentina also has a 100% beneficial
ownership interest in the capital stock of HIE Opco.
2. Foreign Utility Companies.
(a) Houston Argentina. Houston Argentina owns 32.5%
of the capital stock of Compania de Inversiones en
Electricidad S.A., an Argentine holding company (COINELEC).
9 of 34
<PAGE>
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.
(b) Industrias. Industrias owns 90% of the capital
stock of EDESE.
(c) HIE Rain. As of February 29, 1996, HIE Rain owns
65% of the voting stock of Rain. It is contemplated that upon
(i) the receipt by Rain of capital contributions committed by
third parties and (ii) the initial public offering of certain
shares in Rain on the Indian stock market, HIE Rain will own
approximately 20% of the voting stock of Rain.
(d) 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.
1. (a) EDELAP and Central Dique. In 1992, the
Claimant invested $37.4 million (U.S. dollars) in the
acquisition by COINELEC of the Class A shares of EDELAP 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. Since 1992, the Claimant, directly or
indirectly, has made capital advances of $1.6 million to
EDELAP.
(b) EDESE. In January 1995, the Claimant invested
$15.7 million (U.S. dollars) in order to acquire the Class A
and Class B shares of EDESE. During the year ended December
31, 1995, the Claimant, directly or indirectly, advanced $1.8
million to EDESE in the form of intercompany debt.
(c) HIE Argener and HIE Opco. As of December 31,
1995, the Claimant had invested $7.0 million (U.S. dollars) in
HIE Argener and HIE Opco.
10 of 34
<PAGE>
(d) Rain. As of December 31, 1995, the
Claimant's financial statements reflect an investment of $5.1
million (U.S. dollars) in Rain.
2. There are no direct or indirect guarantees by the
Claimant of any security of COINELEC, EDELAP, Central Dique,
EDESE, HIE Argener, HIE Opco, HIE Rain or Rain.
3. In the event that COINELEC defaults on the payment of certain
indebtedness incurred in connection with its acquisition of EDELAP, HI
Energy will either make additional capital contributions or subordinated
loans to COINELEC or pay directly to COINELEC's lenders up to a maximum
aggregate of $6,581,250. In addition, HI Energy has entered into a support
agreement in favor of the International Finance Corporation (IFC) under the
terms of which HI Energy has agreed to provide HIE Rain with sufficient
funds to meet certain funding obligations of HIE Rain under agreements with
the IFC. The maximum aggregate funding commitment of HI Energy under this
support agreement is approximately $18 million, of which approximately $16
million is to support contingent obligations of HIE Rain and the balance of
which is additional equity to be contributed to Rain. With the exception of
the foregoing arrangements, there are no financial obligations of COINELEC,
EDELAP, Central Dique, EDESE, HIE Argener, HIE Opco, HIE Rain or Rain, 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. EDELAP and Central Dique. At December 31, 1995,
the combined capitalization of EDELAP and Central Dique was
approximately $231 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 in accordance with
generally accepted accounting principles in the U.S.
During the twelve-month period ended December 31, 1995,
EDELAP and Central Dique had combined earnings of
approximately $5 million (calculated on the basis of an
exchange ratio of one Argentine peso to one U.S. dollar).
2. EDESE. At December 31, 1995, the capitalization of
EDESE was approximately $13.9 million (calculated on the basis
of an exchange ratio of one Argentine peso to one U.S.
dollar).
During the twelve-month period ended December 31, 1995,
EDESE had a loss of approximately $4 million (calculated on
the basis of an exchange ratio of one Argentine peso to one
U.S. dollar) in accordance with generally accepted accounting
principles in the U.S.
11 of 34
<PAGE>
3. HIE Argener and HIE Opco. At December 31, 1995,
the combined capitalization of HIE Argener and HIE Opco was
approximately $7.0 million (calculated on the basis of an
exchange ratio of one Argentine peso to one U.S. dollar).
During the twelve-month period ended December 31, 1995,
neither HIE Argener nor HIE Opco had any earnings, because the
project was still under construction.
4. Rain. At December 31, 1995, the Claimant's
financial statements reflect capitalization of Rain of
approximately $5.1 million. During the twelve-month period
ended December 31, 1995, Rain was engaged in development
activities and had no earnings.
(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
1935 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 Assistance 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 training the technicians and
operating and managing personnel. The Management Assistance
Agreement expires in December 2002.
The fee under the Management Assistance 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 an additional $500,000 per year.
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.
In addition, HI Energy is a party to a technical
assistance agreement (the "Technical Assistance Agreement")
12 of 34
<PAGE>
with Rain. Under the Technical Assistance Agreement, HI
Energy provides technical and managerial services to Rain with
respect to the design, engineering, construction, operation
and maintenance of Rain's power generation facility. The
Technical Assistance Agreement expires upon the earlier to
occur of (i) the fifth anniversary of the commencement of
operations, or (ii) the date HI Energy's equity interest in
Rain falls below ten percent.
HI Energy's base fee under the Technical Assistance
Agreement is $200,000 per year during construction. HI Energy
is entitled to a bonus payment (not to exceed $200,000) in the
event electric production upon completion of construction is
greater than 47.5 megawatts. During operation, HI Energy will
receive fees and bonuses in an amount not to exceed 1-1/2% of
Rain's electric sales revenue. All fees and bonuses are
payable in U.S. dollars. The Technical Assistance Agreement
also provides that HI Energy will be reimbursed for reasonable
costs and expenses incurred in connection with the Technical
Assistance Agreement.
13 of 34
<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
FINANCIAL DATA SCHEDULE OF CLAIMANT.
EXHIBIT C
AN ORGANIZATIONAL CHART SHOWING THE RELATIONSHIP OF EACH
EWG OR FOREIGN UTILITY COMPANY TO ASSOCIATE COMPANIES IN THE
HOLDING-COMPANY SYSTEM.
The above-named Claimant has caused this statement to be
duly executed on its behalf by its authorized officer on this
29th day of February, 1996.
HOUSTON INDUSTRIES INCORPORATED
By:/s/ Mary P. Ricciardello
Mary P. Ricciardello
Vice President and
Comptroller
CORPORATE SEAL
ATTEST:
/s/ R. E. Smith
Assistant Corporate Secretary
NAME, TITLE AND ADDRESS OF OFFICER TO WHOM NOTICES AND
CORRESPONDENCE CONCERNING THIS STATEMENT SHOULD BE ADDRESSED:
Mary P. Ricciardello
Vice President and Comptroller
Houston Industries Incorporated
1111 Louisiana, 47th Floor
Houston, TX 77002
14 of 34
<PAGE>
EXHIBIT A-1
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HII HL&P DVI HIEI HIBI
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
REVENUES:
ELECTRIC UTILITY $3,680,297
OTHER $ 47,691 $ 2,015
---------------------------------------------------------------------
0 3,680,297 0 47,691 2,015
---------------------------------------------------------------------
OPERATING EXPENSES:
ELECTRIC:
FUEL 879,148
PURCHASED POWER 233,494
OPERATION AND MAINTENANCE 866,170
TAXES OTHER THAN INCOME TAXES 245,890
DEPRECIATION & AMORTIZATION $ 687 475,124 2,067 132
OTHER OPERATING EXPENSES 19,841 $ 52 71,071 1,365
---------------------------------------------------------------------
TOTAL 20,528 2,699,826 52 73,138 1,497
---------------------------------------------------------------------
OPERATING INCOME (LOSS) (20,528) 980,471 (52) (25,447) 518
---------------------------------------------------------------------
OTHER INCOME (EXPENSE):
ALLOWANCE FOR OTHER FUNDS USED DURING CONSTRUCTION 7,760
DIVIDEND INCOME 20,132
INTEREST INCOME 3,249 12,218 4,878 265
OTHER-NET 352 (26,752) 239 (679)
LOSS ON SALE OF RAILCAR MAINTENANCE SERVICE
INTEREST INCOME FROM SUBSIDIARIES 61,222
---------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSE) 84,955 (6,774) 239 4,199 265
---------------------------------------------------------------------
INTEREST AND OTHER CHARGES:
INTEREST ON LONG-TERM DEBT 24,644 244,384
OTHER INTEREST 32,548 8,117 1,064 1,184
ALLOWANCE FOR BORROWED FUNDS USED DURING
CONSTRUCTION (CREDIT) (4,692)
PREFERRED DIVIDENDS OF SUBSIDIARY
---------------------------------------------------------------------
TOTAL INTEREST AND OTHER CHARGES 57,192 247,809 0 1,064 1,184
---------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 7,235 725,888 187 (22,313) (401)
INCOME TAXES (8,045) 244,956 15 (7,934) (139)
---------------------------------------------------------------------
NET INCOME AFTER INCOME TAXES AND BEFORE
DISCONTINUED OPERATIONS 15,280 480,932 172 (14,379) (262)
---------------------------------------------------------------------
DISCONTINUED OPERATIONS:
GAIN ON SALE OF CABLE TELEVISION SUBSIDIARY 674,515
---------------------------------------------------------------------
NET INCOME (LOSS) 689,795 480,932 172 (14,379) (262)
DIVIDENDS ON PREFERRED STOCK 29,955
---------------------------------------------------------------------
NET INCOME (LOSS) FOR COMMON STOCK 689,795 450,977 172 (14,379) (262)
EQUITY IN EARNINGS OF SUBSIDIARIES 434,143
CASH DIVIDENDS ON COMMON STOCK 371,760 454,000
---------------------------------------------------------------------
NET INCREASE (DECREASE) IN RETAINED EARNINGS 752,178 (3,023) 172 (14,379) (262)
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD 1,221,299 2,153,109 (10,570) (7,807) (2,059)
ADJUSTMENT TO ADDITIONAL PAID-IN CAPITAL (1,313)
---------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD $1,972,164 $2,150,086 $(10,398) $(22,186) $(2,321)
=====================================================================
EARNINGS (LOSS) PER COMMON SHARE(1) $2.79 $1.82 $0.00 $(0.06) $0.00
=====================================================================
</TABLE>
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
OF HOUSTON INDUSTRIES INCORPORATED (000)-- 247,706
LEGEND OF SUBSIDIARY NAMES:
HII-HOUSTON INDUSTRIES INCORPORATED
HL&P-HOUSTON LIGHTING & POWER COMPANY
DVI-DEVELOPMENT VENTURES, INC.
HIEI-HOUSTON INDUSTRIES ENERGY, INC.
HIBI-HOUSTON INDUSTRIES BUILDING, INC.
15 of 34
<PAGE>
EXHIBIT A-1
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
ELIMINATIONS/
HIDI HIPI URS PFI RECLASSES CONSOLIDATED
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
REVENUES:
ELECTRIC UTILITY $3,680,297
OTHER $ 170 49,876
--------------------------------------------------------------------------
0 170 0 0 0 3,730,173
--------------------------------------------------------------------------
OPERATING EXPENSES:
ELECTRIC:
FUEL 879,148
PURCHASED POWER 233,494
OPERATION AND MAINTENANCE 866,170
TAXES OTHER THAN INCOME TAXES 245,890
DEPRECIATION & AMORTIZATION 24 478,034
OTHER OPERATING EXPENSES $ 37 486 $ 121 $(82) $ 1,241 94,132
--------------------------------------------------------------------------
TOTAL 37 510 121 (82) 1,241 2,796,868
--------------------------------------------------------------------------
OPERATING INCOME (LOSS) (37) (340) (121) 82 (1,241) 933,305
--------------------------------------------------------------------------
OTHER INCOME (EXPENSE):
ALLOWANCE FOR OTHER FUNDS USED DURING CONSTRUCTION 7,760
DIVIDEND INCOME $454,000 (454,000) 20,132
INTEREST INCOME (10,836) 9,774
OTHER-NET (1,001) 8,537 (19,304)
LOSS ON SALE OF RAILCAR MAINTENANCE SERVICE (1,898) 1,898
INTEREST INCOME FROM SUBSIDIARIES (61,222)
--------------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSE) 454,000 0 (2,899) 0 (515,623) 18,362
--------------------------------------------------------------------------
INTEREST AND OTHER CHARGES:
INTEREST ON LONG-TERM DEBT 10,463 279,491
OTHER INTEREST 323 (21,649) 21,586
ALLOWANCE FOR BORROWED FUNDS USED DURING
CONSTRUCTION (CREDIT) (4,692)
PREFERRED DIVIDENDS OF SUBSIDIARY 29,955 29,955
--------------------------------------------------------------------------
TOTAL INTEREST AND OTHER CHARGES 0 0 323 0 18,769 326,340
--------------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 453,963 (340) (3,343) 82 (535,633) 625,327
INCOME TAXES (13) (117) (1,170) 29 (18,097) 209,485
--------------------------------------------------------------------------
NET INCOME AFTER INCOME TAXES AND BEFORE
DISCONTINUED OPERATIONS 453,976 (223) (2,173) 53 (517,536) 415,842
--------------------------------------------------------------------------
DISCONTINUED OPERATIONS:
GAIN ON SALE OF CABLE TELEVISION SUBSIDIARY 33,609 708,124
--------------------------------------------------------------------------
NET INCOME (LOSS) 453,976 (223) (2,173) 53 (483,926) 1,123,966
DIVIDENDS ON PREFERRED STOCK (29,955)
--------------------------------------------------------------------------
NET INCOME (LOSS) FOR COMMON STOCK 453,976 (223) (2,173) 53 (453,971) 1,123,966
EQUITY IN EARNINGS OF SUBSIDIARIES (434,143)
CASH DIVIDENDS ON COMMON STOCK 454,000 (908,000) 371,760
--------------------------------------------------------------------------
NET INCREASE (DECREASE) IN RETAINED EARNINGS (24) (223) (2,173) 53 19,886 752,207
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD 40 (368) (3,313) (4,344) (2,124,766) 1,221,221
ADJUSTMENT TO ADDITIONAL PAID-IN CAPITAL (53) 53 (1,313)
--------------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD $16 $(591) $(5,486) $(4,344) $(2,104,827) $1,972,114
==========================================================================
EARNINGS (LOSS) PER COMMON SHARE(1) $0.00 $0.00 $(0.01) $0.00 $4.54
==========================================================================
</TABLE>
(1) BASED ON WEIGHTED AVERAGE COMMON SHARES OUTSTANDING
OF HOUSTON INDUSTRIES INCORPORATED (000)-- 247,706
LEGEND OF SUBSIDIARY NAMES:
HIDI-HOUSTON INDUSTRIES (DELAWARE) INCORPORATED
HIPI-HOUSTON INDUSTRIES PRODUCTS, INC.
URS-UTILITY RAIL SERVICES, INC.
PFI-PRIMARY FUELS, INC.
16 of 34
<PAGE>
EXHIBIT A-2
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HII HL&P(1) DVI HIEI HIBI
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
ASSETS:
PROPERTY, PLANT AND EQUIPMENT, AT COST:
ELECTRIC PLANT $12,458,161
NUCLEAR FUEL 217,604
OTHER PROPERTY $ 12,779 $ 18,834 $74,458
----------------------------------------------------------------------------
TOTAL PROPERTY, PLANT AND EQUIPMENT 12,779 12,675,765 0 18,834 74,458
LESS: ACCUMULATED DEPRECIATION
AND AMORTIZATION 10,084 3,906,139 100 274
----------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT-NET 2,695 8,769,626 0 18,734 74,184
----------------------------------------------------------------------------
INVESTMENT IN ASSOCIATED COMPANIES 3,874,129
----------------------------------------------------------------------------
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS 24 75,851 $ 42 4,792 6,482
SPECIAL DEPOSITS 433
ACCOUNTS RECEIVABLE-OTHER 4,086 23,858 11,095 292
ACCRUED UNBILLED REVENUES 59,017
ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES 13,285 2,845 2 (121) 1,033
NOTES RECEIVABLE FROM ASSOCIATED COMPANIES 131,769 300
DIVIDEND RECEIVABLE 10,313
FUEL STOCK 59,699
MATERIALS & SUPPLIES, AT AVERAGE COST 137,584 349
OTHER 5,087 11,876 1,565
-----------------------------------------------------------------------------
TOTAL CURRENT ASSETS 164,564 371,163 344 17,680 7,807
-----------------------------------------------------------------------------
OTHER ASSETS:
INVESTMENT IN EQUITY SECURITIES 1,027,875
DEFERRED PLANT COSTS-NET 613,134
DEFERRED DEBITS 27,723 290,012 11,808 7,840 2,236
UNAMORTIZED DEBT EXPENSE AND PREMIUM ON REACQUIRED
DEBT 1,826 159,962
EQUITY INVESTMENTS IN AND ADVANCES TO FOREIGN AND
NON-REGULATED AFFILIATES 63,350
REGULATORY TAX ASSET-NET 228,587
RECOVERABLE PROJECT COSTS-NET 232,775
-----------------------------------------------------------------------------
TOTAL OTHER ASSETS 1,057,424 1,524,470 11,808 71,190 2,236
-----------------------------------------------------------------------------
TOTAL $5,098,812 $10,665,259 $12,152 $107,604 $84,227
=============================================================================
</TABLE>
17 of 34
<PAGE>
EXHIBIT A-2
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
ELIMINATIONS/
HIDI HIPI URS PFI RECLASSES CONSOLIDATED
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
ASSETS:
PROPERTY, PLANT AND EQUIPMENT, AT COST:
ELECTRIC PLANT $12,458,161
NUCLEAR FUEL 217,604
OTHER PROPERTY $ 1 $ (448) 105,624
----------------------------------------------------------------------------
TOTAL PROPERTY, PLANT AND EQUIPMENT 0 1 0 0 (448) 12,781,389
LESS: ACCUMULATED DEPRECIATION
AND AMORTIZATION 59 (116) 3,916,540
----------------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT-NET 0 (58) 0 0 (332) 8,864,849
----------------------------------------------------------------------------
INVESTMENT IN ASSOCIATED COMPANIES $150,978 (4,025,107)
----------------------------------------------------------------------------
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS 34 47 $ 8 (75,501) 11,779
SPECIAL DEPOSITS 433
ACCOUNTS RECEIVABLE-OTHER 54 250 39,635
ACCRUED UNBILLED REVENUES 59,017
ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES 0 (17,044)
NOTES RECEIVABLE FROM ASSOCIATED COMPANIES (132,069)
DIVIDEND RECEIVABLE 10,313
FUEL STOCK 59,699
MATERIALS & SUPPLIES, AT AVERAGE COST 74 138,007
OTHER 34 18,562
-----------------------------------------------------------------------------
TOTAL CURRENT ASSETS 34 209 258 0 (224,614) 337,445
-----------------------------------------------------------------------------
OTHER ASSETS:
INVESTMENT IN EQUITY SECURITIES 1,027,875
DEFERRED PLANT COSTS-NET 613,134
DEFERRED DEBITS 408 0 (22,812) 317,215
UNAMORTIZED DEBT EXPENSE AND PREMIUM ON REACQUIRED
DEBT 161,788
EQUITY INVESTMENTS IN AND ADVANCES TO FOREIGN AND
NON-REGULATED AFFILIATES 63,350
REGULATORY TAX ASSET-NET 228,587
RECOVERABLE PROJECT COSTS-NET 232,775
-----------------------------------------------------------------------------
TOTAL OTHER ASSETS 0 408 0 0 (22,812) 2,644,724
-----------------------------------------------------------------------------
TOTAL $151,012 $559 $258 $0 $(4,272,865) $11,847,018
=============================================================================
</TABLE>
18 of 34
<PAGE>
EXHIBIT A-2
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - LIABILITIES
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HII HL&P DVI HIEI HIBI
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY:
SHAREHOLDERS' EQUITY:
COMMON STOCK $2,441,790 $ 1,675,927 $ 23,867 $ 62,926 $ 1
UNEARNED ESOP SHARES (268,405)
UNREALIZED GAIN/LOSS ON EQUITY SECURITIES (3,494)
RETAINED EARNINGS 1,972,164 2,150,086 (10,398) (22,186) (2,321)
PREFERRED STOCK 402,400
------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 4,142,055 4,228,413 13,470 40,740 (2,320)
------------------------------------------------------------------------------
LONG-TERM DEBT:
FIRST MORTGAGE BONDS 2,979,293
OTHER LONG-TERM DEBT-NET 348,913 10,216
------------------------------------------------------------------------------
TOTAL LONG-TERM DEBT 348,913 2,989,509 0 0 0
------------------------------------------------------------------------------
TOTAL CAPITALIZATION 4,490,968 7,217,922 13,470 40,740 (2,320)
------------------------------------------------------------------------------
CURRENT LIABILITIES:
NOTES PAYABLE 6,300
NOTES PAYABLE TO ASSOCIATED COMPANIES 75,800 53,400 78,013
ACCOUNTS PAYABLE 3,945 119,032 6,278 6,746
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 678 6,982 5 4,004 1,129
TAXES ACCRUED (58,084) 192,673 (1,648) (6,085) (147)
INTEREST ACCRUED 8,556 70,823 0
DIVIDENDS ACCRUED 98,502
ACCRUED LIABILITIES TO MUNICIPALITIES 20,773
CURRENT PORTION OF LONG-TERM DEBT AND
PREFERRED STOCK 200,000 179,451
OTHER 960 115,731 2,136 4
------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 336,657 705,465 (1,643) 59,733 85,745
------------------------------------------------------------------------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES 202,390 1,947,488 99 (865) 773
UNAMORTIZED INVESTMENT TAX CREDIT 392,153
OTHER 68,797 402,231 226 7,996 30
------------------------------------------------------------------------------
TOTAL DEFERRED CREDITS 271,187 2,741,872 325 7,131 803
------------------------------------------------------------------------------
TOTAL $5,098,812 $10,665,259 $ 12,152 $107,604 $84,227
==============================================================================
</TABLE>
19 of 34
<PAGE>
EXHIBIT A-2
HOUSTON INDUSTRIES INCORPORATED AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - LIABILITIES
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
ELIMINATIONS/
HIDI HIPI URS PFI RECLASSES CONSOLIDATED
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY:
SHAREHOLDERS' EQUITY:
COMMON STOCK $151,002 $ 441 $ 6,160 $ 5 $(1,920,330) $ 2,441,790
UNEARNED ESOP SHARES (268,405)
UNREALIZED GAIN/LOSS ON EQUITY SECURITIES (3,494)
RETAINED EARNINGS 16 (591) (5,486) (4,344) (2,104,827) 1,972,114
PREFERRED STOCK 402,400
------------------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 151,019 (150) 674 (4,339) (4,025,157) 4,544,405
------------------------------------------------------------------------------
LONG-TERM DEBT:
FIRST MORTGAGE BONDS 2,979,293
OTHER LONG-TERM DEBT-NET 359,129
------------------------------------------------------------------------------
TOTAL LONG-TERM DEBT 0 0 0 0 3,338,422
------------------------------------------------------------------------------
TOTAL CAPITALIZATION 151,019 (150) 674 (4,339) (4,025,157) 7,882,827
------------------------------------------------------------------------------
CURRENT LIABILITIES:
NOTES PAYABLE 6,300
NOTES PAYABLE TO ASSOCIATED COMPANIES 357 (207,570)
ACCOUNTS PAYABLE 0 7 136,008
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 759 127 (13,684)
TAXES ACCRUED (7) (72) (711) 2,491 46,515 174,925
INTEREST ACCRUED 0 1 79,380
DIVIDENDS ACCRUED 98,502
ACCRUED LIABILITIES TO MUNICIPALITIES 20,773
CURRENT PORTION OF LONG-TERM DEBT AND
PREFERRED STOCK 379,451
OTHER 22 1,392 1 120,246
------------------------------------------------------------------------------
TOTAL CURRENT LIABILITIES (7) 716 (227) 3,883 (174,737) 1,015,585
------------------------------------------------------------------------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES (7) (189) 456 (72,969) 2,077,176
UNAMORTIZED INVESTMENT TAX CREDIT 392,153
OTHER (2) 479,277
------------------------------------------------------------------------------
TOTAL DEFERRED CREDITS 0 (7) (189) 456 (72,971) 2,948,606
------------------------------------------------------------------------------
TOTAL $151,012 $ 559 $ 258 $ 0 $(4,272,865) $11,847,018
==============================================================================
</TABLE>
20 of 34
<PAGE>
HOUSTON INDUSTRIES ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HOUSTON
HOUSTON INDUSTRIES HOUSTON
INDUSTRIES ENERGY - HIE FORD ARGENTINA S.A.
ENERGY, INC. DEER PARK, INC. HEIGHTS, INC. CONSOLIDATED
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
REVENUE:
ELECTRIC SALES
OPERATING REVENUE $ 6,843 $2,418 $ 150 $2,183
-------------------------------------------------------------------
TOTAL REVENUES 6,843 2,418 150 2,183
-------------------------------------------------------------------
OPERATING EXPENSES:
ADMINISTRATIVE & GENERAL 28,003 1,410 21 1,293
DEPRECIATION & AMORTIZATION 123
OTHER TAXES 578 10
OTHER OPERATING EXPENSES
-------------------------------------------------------------------
TOTAL OPERATING EXPENSES 28,704 1,420 21 1,293
-------------------------------------------------------------------
OPERATING INCOME (LOSS) (21,861) 998 129 890
-------------------------------------------------------------------
OTHER INCOME (EXPENSE):
INTEREST INCOME 4,878
OTHER - NET 0 (837)
-------------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSE) 4,878 0 0 (837)
-------------------------------------------------------------------
FIXED CHARGES:
OTHER INTEREST 1,064
-------------------------------------------------------------------
TOTAL FIXED CHARGES 1,064
-------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (18,047) 998 129 53
INCOME TAXES (6,367) 349 45 (271)
-------------------------------------------------------------------
NET INCOME (LOSS) (11,680) 649 84 324
EQUITY IN EARNINGS OF SUBSIDIARIES (1,554)
-------------------------------------------------------------------
NET INCREASE (DECREASE) IN RETAINED EARNINGS (13,234) 649 84 324
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD (8,941) (9) 554 589
ADJUSTMENT TO RETAINED EARNINGS (11) 9
-------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD $(22,186) $ 649 $ 638 $ 913
===================================================================
EARNINGS (LOSS) PER COMMON SHARE (1) $ (0.05) $ 0.00 $0.00 $ 0.00
===================================================================
(BASED ON WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING OF HOUSTON
INDUSTRIES INCORPORATED (000) - 247,706
HOUSTON
INDUSTRIAS INDUSTRIES
ELECTRICAS DE ENERGY -
HOUSTON S.A. INDIA, INC. ELIMINATIONS/
CONSOLIDATED CONSOLIDATED RECLASSES CONSOLIDATED
---------------------------------------------------------------
REVENUE:
ELECTRIC SALES $36,097 $ 36,097
OPERATING REVENUE 11,594
---------------------------------------------------------------
TOTAL REVENUES 36,097 0 0 47,691
---------------------------------------------------------------
OPERATING EXPENSES:
ADMINISTRATIVE & GENERAL 22,172 $ 204 53,103
DEPRECIATION & AMORTIZATION 1,944 2,067
OTHER TAXES 588
OTHER OPERATING EXPENSES 17,380 17,380
---------------------------------------------------------------
TOTAL OPERATING EXPENSES 41,496 204 0 73,138
---------------------------------------------------------------
OPERATING INCOME (LOSS) (5,399) (204) 0 (25,447)
---------------------------------------------------------------
OTHER INCOME (EXPENSE):
INTEREST INCOME 4,878
OTHER - NET 158 0 (679)
---------------------------------------------------------------
TOTAL OTHER INCOME (EXPENSE) 158 0 0 4,199
---------------------------------------------------------------
FIXED CHARGES:
OTHER INTEREST 1,064
---------------------------------------------------------------
TOTAL FIXED CHARGES 1,064
---------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (5,241) (204) 0 (22,313)
INCOME TAXES (1,691) (7,934)
---------------------------------------------------------------
NET INCOME (LOSS) (3,550) (204) (14,379)
EQUITY IN EARNINGS OF SUBSIDIARIES $1,554
---------------------------------------------------------------
NET INCREASE (DECREASE) IN RETAINED EARNINGS (3,550) (204) 1,554 (14,379)
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD (7,807)
ADJUSTMENT TO RETAINED EARNINGS 2
---------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD $(3,550) $(204) $1,556 $(22,186)
===============================================================
EARNINGS (LOSS) PER COMMON SHARE (1) ($0.01) $0.00 $ (0.06)
===============================================================
</TABLE>
21 of 34
<PAGE>
HOUSTON INDUSTRIES ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HOUSTON
HOUSTON INDUSTRIES HOUSTON
INDUSTRIES ENERGY - HIE FORD ARGENTINA S.A.
ENERGY, INC. DEER PARK, INC. HEIGHTS, INC. CONSOLIDATED
------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
PROPERTY, PLANT, AND EQUIPMENT, AT COST:
OTHER PROPERTY $ 363 $ 6,123
------------------------------------------------------------------
TOTAL PROPERTY, PLANT AND EQUIPMENT 363 6,123
LESS: ACCUMULATED DEPRECIATION
AND AMORTIZATION 100
------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT- NET 263 6,123
------------------------------------------------------------------
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS 334 $ 879 $ 906 1,671
ACCOUNTS RECEIVABLE - OTHER 2,158 587 323 695
ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES (1,254) 28,169
NOTES RECEIVABLE FROM ASSOCIATED COMPANIES 2,000
MATERIALS AND SUPPLIES AT AVERAGE COST
OTHER 168
------------------------------------------------------------------
TOTAL CURRENT ASSETS 3,238 1,467 1,229 30,703
------------------------------------------------------------------
OTHER ASSETS:
DEFERRED DEBITS 3,530 342
EQUITY INVESTMENT IN AND ADVANCES TO CGE-L.L.C. 28,460 400
EQUITY INVESTMENT IN SUBSIDIARY 649
EQUITY INVESTMENT IN AND ADVANCES TO FOREIGN
ELECTRIC UTILITY 62,757 26,644
------------------------------------------------------------------
TOTAL OTHER ASSETS 95,396 400 26,986
------------------------------------------------------------------
TOTAL $98,897 $1,467 $1,629 $63,812
==================================================================
HOUSTON
INDUSTRIAS INDUSTRIES
ELECTRICAS DE ENERGY -
HOUSTON S.A. INDIA, INC. ELIMINATIONS/
CONSOLIDATED CONSOLIDATED RECLASSES CONSOLIDATED
--------------------------------------------------------------
ASSETS:
PROPERTY, PLANT, AND EQUIPMENT, AT COST:
OTHER PROPERTY $12,315 $ 33 $ 18,834
--------------------------------------------------------------
TOTAL PROPERTY, PLANT AND EQUIPMENT 12,315 33 18,834
LESS: ACCUMULATED DEPRECIATION
AND AMORTIZATION 100
--------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT- NET 12,315 33 18,734
--------------------------------------------------------------
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS 509 505 $ (12) 4,792
ACCOUNTS RECEIVABLE - OTHER 7,332 11,095
ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES (27,036) (121)
NOTES RECEIVABLE FROM ASSOCIATED COMPANIES (2,000)
MATERIALS AND SUPPLIES AT AVERAGE COST 349 349
OTHER 1,397 1,565
--------------------------------------------------------------
TOTAL CURRENT ASSETS 9,587 505 (29,048) 17,680
--------------------------------------------------------------
OTHER ASSETS:
DEFERRED DEBITS 68 3,900 7,840
EQUITY INVESTMENT IN AND ADVANCES TO CGE-L.L.C. (1,448) 27,412
EQUITY INVESTMENT IN SUBSIDIARY (649)
EQUITY INVESTMENT IN AND ADVANCES TO FOREIGN
ELECTRIC UTILITY 3,492 (56,953) 35,938
--------------------------------------------------------------
TOTAL OTHER ASSETS 68 3,492 (55,150) 71,190
--------------------------------------------------------------
TOTAL $21,970 $4,030 $(84,198) $107,604
==============================================================
</TABLE>
22 of 34
<PAGE>
HOUSTON INDUSTRIES ENERGY, INC. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - LIABILITIES
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HOUSTON
HOUSTON INDUSTRIES HOUSTON
INDUSTRIES ENERGY - HIE FORD ARGENTINA S.A.
ENERGY, INC. DEER PARK, INC. HEIGHTS, INC. CONSOLIDATED
-------------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY:
SHAREHOLDERS' EQUITY:
COMMON STOCK $ 62,926 $ 400 $63,207
RETAINED EARNINGS (22,186) $ 649 638 913
-------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 40,740 649 1,038 64,120
-------------------------------------------------------------------
CURRENT LIABILITIES:
NOTES PAYABLE TO ASSOCIATED COMPANIES 53,400
ACCOUNTS PAYABLE 1,115 378 634
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 3,921 83 248 9
TAXES ACCRUED (5,361) 357 33 (951)
OTHER
-------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 53,075 818 281 (308)
-------------------------------------------------------------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES (1,175) 310
OTHER 6,257
-------------------------------------------------------------------
TOTAL DEFERRED CREDITS 5,082 310
-------------------------------------------------------------------
TOTAL $ 98,897 $1,467 $1,629 $63,812
===================================================================
HOUSTON
INDUSTRIAS INDUSTRIES
ELECTRICAS DE ENERGY -
HOUSTON S.A. INDIA, INC. ELIMINATIONS/
CONSOLIDATED CONSOLIDATED RECLASSES CONSOLIDATED
---------------------------------------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY:
SHAREHOLDERS' EQUITY:
COMMON STOCK $15,667 $4,224 $(83,498) $ 62,926
RETAINED EARNINGS (3,550) (204) 1,556 (22,186)
---------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 12,117 4,020 (81,941) 40,740
---------------------------------------------------------------
CURRENT LIABILITIES:
NOTES PAYABLE TO ASSOCIATED COMPANIES 2,000 (2,000) 53,400
ACCOUNTS PAYABLE 4,151 6,278
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES (257) 4,004
TAXES ACCRUED (163) (6,085)
OTHER 2,126 10 2,136
---------------------------------------------------------------
TOTAL CURRENT LIABILITIES 8,114 10 (2,257) 59,733
---------------------------------------------------------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES (865)
OTHER 1,739 7,996
---------------------------------------------------------------
TOTAL DEFERRED CREDITS 1,739 7,131
---------------------------------------------------------------
TOTAL $21,970 $4,030 $(84,198) $107,604
===============================================================
</TABLE>
23 of 34
<PAGE>
HOUSTON ARGENTINA S.A. AND SUBSIDIARIES
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HOUSTON HIE HIE
ARGENTINA S.A. ARGENER S.A. OPCO S.A.
---------------------------------------------------
<S> <C> <C> <C>
OPERATING REVENUES $ 1,881 $ 302
OPERATING EXPENSES:
ADMINISTRATIVE AND GENERAL 757 $ 204 332
---------------------------------------------------
OPERATING INCOME (LOSS) 1,124 (204) (30)
---------------------------------------------------
OTHER INCOME (EXPENSE) - NET (837)
---------------------------------------------------
FIXED CHARGES:
OTHER INTEREST
---------------------------------------------------
TOTAL FIXED CHARGES
---------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 287 (204) (30)
INCOME TAXES (201) (61) (9)
---------------------------------------------------
NET INCOME (LOSS) 488 (143) (21)
EQUITY IN EARNINGS OF SUBSIDIARIES 11,092
---------------------------------------------------
NET INCREASE (DECREASE) IN RETAINED EARNINGS 11,580 (143) (21)
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD 589
---------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD $12,169 $ (143) $ (21)
===================================================
EARNINGS (LOSS) PER COMMON SHARE (1) $ 0.00 $(0.00) $(0.00)
===================================================
(1) BASED ON WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING OF HOUSTON
INDUSTRIES INCORPORATED (000) - 247,706
ELIMINATIONS/
RECLASSES CONSOLIDATED
-------------------------------
OPERATING REVENUES $2,183
OPERATING EXPENSES:
ADMINISTRATIVE AND GENERAL 1,293
-------------------------------
OPERATING INCOME (LOSS) 890
-------------------------------
OTHER INCOME (EXPENSE) - NET (837)
-------------------------------
FIXED CHARGES:
OTHER INTEREST
-------------------------------
TOTAL FIXED CHARGES
-------------------------------
INCOME (LOSS) BEFORE INCOME TAXES 53
INCOME TAXES (271)
-------------------------------
NET INCOME (LOSS) 324
EQUITY IN EARNINGS OF SUBSIDIARIES $(11,092)
-------------------------------
NET INCREASE (DECREASE) IN RETAINED EARNINGS (11,092) 324
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD 589
-------------------------------
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD $(11,092) $ 913
===============================
EARNINGS (LOSS) PER COMMON SHARE (1) $ 0.00
===============================
</TABLE>
24 of 34
<PAGE>
HOUSTON ARGENTINA S.A. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HOUSTON HIE HIE
ARGENTINA S.A. ARGENER S.A. OPCO S.A.
---------------------------------------------------
<S> <C> <C> <C>
ASSETS:
PROPERTY, PLANT, AND EQUIPMENT, AT COST:
OTHER PROPERTY $ 2 $6,100 $ 21
---------------------------------------------------
TOTAL PROPERTY, PLANT AND EQUIPMENT 2 6,100 21
LESS: ACCUMULATED DEPRECIATION
AND AMORTIZATION
---------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT- NET 2 6,100 21
---------------------------------------------------
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS 1,447 176 48
ACCOUNTS RECEIVABLE - CUSTOMERS 0
ACCOUNTS RECEIVABLE - OTHER 520 175
ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES 28,179
NOTES RECEIVABLE FROM ASSOCIATED COMPANIES
OTHER 168 12 12
---------------------------------------------------
TOTAL CURRENT ASSETS 30,314 188 235
---------------------------------------------------
OTHER ASSETS:
DEFERRED DEBITS 238 104
CONSTRUCTION WORK IN PROGRESS
EQUITY INVESTMENT IN FOREIGN ELECTRIC UTILITY 44,721
---------------------------------------------------
TOTAL OTHER ASSETS 44,959 104
---------------------------------------------------
TOTAL $75,275 $6,392 $256
===================================================
ELIMINATIONS/
RECLASSES CONSOLIDATED
-------------------------------
ASSETS:
PROPERTY, PLANT, AND EQUIPMENT, AT COST:
OTHER PROPERTY $ 6,123
-------------------------------
TOTAL PROPERTY, PLANT AND EQUIPMENT 6,123
LESS: ACCUMULATED DEPRECIATION
AND AMORTIZATION
-------------------------------
PROPERTY, PLANT AND EQUIPMENT- NET 0 6,123
-------------------------------
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS 1,671
ACCOUNTS RECEIVABLE - CUSTOMERS
ACCOUNTS RECEIVABLE - OTHER 695
ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES $ (10) 28,169
NOTES RECEIVABLE FROM ASSOCIATED COMPANIES
OTHER (24) 168
-------------------------------
TOTAL CURRENT ASSETS (34) 30,703
-------------------------------
OTHER ASSETS:
DEFERRED DEBITS 342
CONSTRUCTION WORK IN PROGRESS
EQUITY INVESTMENT IN FOREIGN ELECTRIC UTILITY (18,077) 26,644
-------------------------------
TOTAL OTHER ASSETS (18,077) 26,986
-------------------------------
TOTAL $(18,111) $63,812
===============================
</TABLE>
25 of 34
<PAGE>
HOUSTON ARGENTINA S.A. AND SUBSIDIARIES
CONSOLIDATING BALANCE SHEET - LIABILITIES
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HOUSTON HIE HIE
ARGENTINA S.A. ARGENER S.A. OPCO S.A.
---------------------------------------------------
<S> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY:
SHAREHOLDERS' EQUITY:
COMMON STOCK $63,207 $6,797 $ 12
RETAINED EARNINGS 12,169 (143) (21)
---------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 75,376 6,654 (9)
---------------------------------------------------
CURRENT LIABILITIES:
NOTES PAYABLE TO ASSOCIATED COMPANIES
ACCOUNTS PAYABLE 127 486 21
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES 9 1 209
TAXES ACCRUED (237) (749) 35
INTEREST ACCRUED
---------------------------------------------------
TOTAL CURRENT LIABILITIES (101) (262) 265
---------------------------------------------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES
OTHER
---------------------------------------------------
TOTAL DEFERRED CREDITS 0 0 0
---------------------------------------------------
TOTAL $75,275 $6,392 $256
===================================================
ELIMINATIONS/
RECLASSES CONSOLIDATED
-------------------------------
LIABILITIES AND STOCKHOLDERS' EQUITY:
SHAREHOLDERS' EQUITY:
COMMON STOCK $ (6,809) $63,207
RETAINED EARNINGS (11,092) 913
-------------------------------
TOTAL SHAREHOLDERS' EQUITY (17,901) 64,120
-------------------------------
CURRENT LIABILITIES:
NOTES PAYABLE TO ASSOCIATED COMPANIES
ACCOUNTS PAYABLE 634
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES (210) 9
TAXES ACCRUED (951)
INTEREST ACCRUED
-------------------------------
TOTAL CURRENT LIABILITIES (210) (308)
-------------------------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES
OTHER
-------------------------------
TOTAL DEFERRED CREDITS 0 0
-------------------------------
TOTAL $(18,111) $63,812
===============================
</TABLE>
26 of 34
<PAGE>
INDUSTRIAS ELECTRICAS DE HOUSTON S.A. AND SUBSIDIARY
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
EMPRESA
DISTRIBUIDORA
INDUSTRIAS DE ELECTRICIDAD
ELECTRICAS DE DE SANTIAGO DEL ELIMINATIONS/
HOUSTON S.A. ESTERO S.A. RECLASSES CONSOLIDATED
------------------------------------------------------------------
<S> <C> <C> <C> <C>
ELECTRIC SALES $36,097 $36,097
OPERATING EXPENSES:
ADMINISTRATIVE & GENERAL 22,172 22,172
DEPRECIATION & AMORTIZATION 1,944 1,944
OTHER OPERATING EXPENSES 17,380 17,380
------------------------------------------------------------------
TOTAL 41,496 41,496
------------------------------------------------------------------
OPERATING INCOME (LOSS) (5,399) (5,399)
------------------------------------------------------------------
OTHER INCOME (EXPENSE) - NET 158 158
------------------------------------------------------------------
FIXED CHARGES:
OTHER INTEREST
------------------------------------------------------------------
TOTAL FIXED CHARGES
------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (5,241) (5,241)
INCOME TAXES (1,691) (1,691)
------------------------------------------------------------------
NET INCOME (LOSS) (3,550) (3,550)
EQUITY IN EARNINGS OF SUBSIDIARIES $(3,550) $3,550
NET INCREASE (DECREASE) IN RETAINED EARNINGS (3,550) (3,550) 3,550 (3,550)
------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD
------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD $(3,550) $(3,550) $3,550 $(3,550)
==================================================================
EARNINGS (LOSS) PER COMMON SHARE (1) $ 0.00 $ (0.01) $ (0.01)
==================================================================
(1) BASED ON WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING OF HOUSTON
INDUSTRIES INCORPORATED (000) - 247,706
</TABLE>
27 of 34
<PAGE>
INDUSTRIAS ELECTRICAS DE HOUSTON S.A. AND SUBSIDIARY
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
EMPRESA
DISTRIBUIDORA
INDUSTRIAS DE ELECTRICIDAD
ELECTRICAS DE DE SANTIAGO DEL ELIMINATIONS/
HOUSTON S.A. ESTERO S.A. RECLASSES CONSOLIDATED
------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
PROPERTY, PLANT, AND EQUIPMENT, AT COST:
OTHER PROPERTY $12,315 $12,315
------------------------------------------------------------------
TOTAL PROPERTY, PLANT AND EQUIPMENT 0 12,315 0 12,315
LESS: ACCUMULATED DEPRECIATION
AND AMORTIZATION
------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT - NET 0 12,315 0 12,315
------------------------------------------------------------------
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS 509 509
ACCOUNTS RECEIVABLE - CUSTOMERS
ACCOUNTS RECEIVABLE - OTHER 7,332 7,332
ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES
NOTES RECEIVABLE FROM ASSOCIATED COMPANIES 0 1,700 $ (1,700) 0
MATERIALS AND SUPPLIES AT AVERAGE COST 349 349
OTHER 1,397 1,397
------------------------------------------------------------------
TOTAL CURRENT ASSETS 0 11,287 (1,700) 9,587
------------------------------------------------------------------
OTHER ASSETS:
DEFERRED DEBITS 68 68
EQUITY INVESTMENT IN FOREIGN ELECTRIC UTILITY $13,856 (13,856) 0
------------------------------------------------------------------
TOTAL OTHER ASSETS 13,856 68 (13,856) 68
------------------------------------------------------------------
TOTAL $13,856 $23,670 $(15,556) $21,970
==================================================================
</TABLE>
28 of 34
<PAGE>
INDUSTRIAS ELECTRICAS DE HOUSTON S.A. AND SUBSIDIARY
CONSOLIDATING BALANCE SHEET - LIABILITIES
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
EMPRESA
DISTRIBUIDORA
INDUSTRIAS DE ELECTRICIDAD
ELECTRICAS DE DE SANTIAGO DEL ELIMINATIONS/
HOUSTON S.A. ESTERO S.A. RECLASSES CONSOLIDATED
------------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY:
SHAREHOLDERS' EQUITY:
COMMON STOCK $17,406 $15,667 $(17,406) $15,667
RETAINED EARNINGS (3,550) (3,550) 3,550 (3,550)
------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 13,856 12,117 (13,856) 12,117
------------------------------------------------------------------
CURRENT LIABILITIES:
NOTES PAYABLE TO ASSOCIATED COMPANIES 3,700 (1,700) 2,000
ACCOUNTS PAYABLE 4,151 4,151
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES
TAXES ACCRUED (163) (163)
INTEREST ACCRUED
OTHER 2,126 2,126
------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 0 9,814 (1,700) 8,114
------------------------------------------------------------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES
OTHER 1,739 1,739
------------------------------------------------------------------
TOTAL DEFERRED CREDITS 0 1,739 0 1,739
------------------------------------------------------------------
TOTAL $13,856 $23,670 $(15,556) $21,970
==================================================================
</TABLE>
29 of 34
<PAGE>
HOUSTON INDUSTRIES ENERGY - INDIA, INC. AND SUBSIDIARY
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HOUSTON HOUSTON
INDUSTRIES INDUSTRIES
ENERGY - ENERGY - ELIMINATIONS/
INDIA, INC. RAIN, INC. RECLASSES CONSOLIDATED
------------------------------------------------------------------
<S> <C> <C> <C> <C>
OPERATING EXPENSES:
ADMINISTRATIVE & GENERAL $ 200 $ 4 $ 204
------------------------------------------------------------------
OPERATING INCOME (LOSS) (200) (4) 0 (204)
------------------------------------------------------------------
OTHER INCOME (EXPENSE) - NET
------------------------------------------------------------------
FIXED CHARGES:
OTHER INTEREST
------------------------------------------------------------------
TOTAL FIXED CHARGES
------------------------------------------------------------------
INCOME (LOSS) BEFORE INCOME TAXES (200) (4) (204)
INCOME TAXES
------------------------------------------------------------------
NET INCOME (LOSS) (200) (4) (204)
EQUITY IN EARNINGS OF SUBSIDIARIES (11) $11
------------------------------------------------------------------
NET INCREASE (DECREASE) IN RETAINED EARNINGS (211) (4) 11 (204)
RETAINED EARNINGS (DEFICIT) AT BEGINNING OF PERIOD ------------------------------------------------------------------
RETAINED EARNINGS (DEFICIT) AT END OF PERIOD $(211) $ (4) $11 $(204)
==================================================================
EARNINGS (LOSS) PER COMMON SHARE (1) $0.00 $0.00 $0.00
==================================================================
(1) BASED ON WEIGHTED AVERAGE COMMON
SHARES OUTSTANDING OF HOUSTON
INDUSTRIES INCORPORATED (000) - 247,706
</TABLE>
30 of 34
<PAGE>
HOUSTON INDUSTRIES ENERGY - INDIA, INC. AND SUBSIDIARY
CONSOLIDATING BALANCE SHEET - ASSETS
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HOUSTON HOUSTON
INDUSTRIES INDUSTRIES
ENERGY - ENERGY - ELIMINATIONS/
INDIA, INC. RAIN, INC. RECLASSES CONSOLIDATED
------------------------------------------------------------------
<S> <C> <C> <C> <C>
ASSETS:
PROPERTY, PLANT, AND EQUIPMENT, AT COST:
OTHER PROPERTY $ 33 $ 33
------------------------------------------------------------------
TOTAL PROPERTY, PLANT AND EQUIPMENT 33 0 0 33
LESS: ACCUMULATED DEPRECIATION
AND AMORTIZATION
------------------------------------------------------------------
PROPERTY, PLANT AND EQUIPMENT - NET 33 0 0 33
------------------------------------------------------------------
CURRENT ASSETS:
CASH AND CASH EQUIVALENTS 503 $ 2 505
ACCOUNTS RECEIVABLE - CUSTOMERS
ACCOUNTS RECEIVABLE - OTHER
ACCOUNTS RECEIVABLE FROM ASSOCIATED COMPANIES
NOTES RECEIVABLE FROM ASSOCIATED COMPANIES
OTHER
------------------------------------------------------------------
TOTAL CURRENT ASSETS 503 2 0 505
------------------------------------------------------------------
OTHER ASSETS:
DEFERRED DEBITS
EQUITY INVESTMENT IN FOREIGN ELECTRIC UTILITY 3,492 3,492 $(3,492) 3,492
------------------------------------------------------------------
TOTAL OTHER ASSETS 3,492 3,492 (3,492) 3,492
------------------------------------------------------------------
TOTAL $4,028 $3,494 $(3,492) $4,030
==================================================================
</TABLE>
31 of 34
<PAGE>
HOUSTON INDUSTRIES ENERGY - INDIA, INC. AND SUBSIDIARY
CONSOLIDATING BALANCE SHEET - LIABILITIES
DECEMBER 31, 1995
(THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
HOUSTON HOUSTON
INDUSTRIES INDUSTRIES
ENERGY - ENERGY - ELIMINATIONS/
INDIA, INC. RAIN, INC. RECLASSES CONSOLIDATED
------------------------------------------------------------------
<S> <C> <C> <C> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY:
SHAREHOLDERS' EQUITY:
COMMON STOCK $4,230 $3,497 $(3,503) $4,224
RETAINED EARNINGS (211) (4) 11 (204)
------------------------------------------------------------------
TOTAL SHAREHOLDERS' EQUITY 4,019 3,493 (3,492) 4,020
------------------------------------------------------------------
CURRENT LIABILITIES:
NOTES PAYABLE TO ASSOCIATED COMPANIES
ACCOUNTS PAYABLE
ACCOUNTS PAYABLE TO ASSOCIATED COMPANIES
TAXES ACCRUED
INTEREST ACCRUED
OTHER 9 1 10
------------------------------------------------------------------
TOTAL CURRENT LIABILITIES 9 1 0 10
------------------------------------------------------------------
DEFERRED CREDITS:
ACCUMULATED DEFERRED INCOME TAXES
OTHER
------------------------------------------------------------------
TOTAL DEFERRED CREDITS 0 0 0 0
------------------------------------------------------------------
TOTAL $4,028 $3,494 $(3,492) $4,030
==================================================================
</TABLE>
32 of 34
<PAGE>
EXHIBIT B
Financial Data Schedule
Houston Industries Incorporated
December 31, 1995
(Thousands of Dollars)
Consolidated Total Assets $11,847,018
Consolidated Total Operating Revenues $ 3,730,173
Consolidated Net Income $ 1,123,966
33 of 34
<PAGE>
EXHIBIT C
Organizational Chart of System Companies
Houston Industries Incorporated
(a Texas corporation, "Claimant")
Houston Industries Energy, Inc.
(a Delaware corporation, "HI Energy")
Houston Argentina S.A. (100% beneficially owned by HI
Energy) (an Argentine corporation, "HI Argentina")
HIE Argener S.A. (100% beneficially owned by HI
Argentina) (an Argentine corporation, "HIE Argener")
HIE Opco S.A. (100% beneficially owned by HI
Argentina) (an Argentine corporation, "HIE Opco")
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,"EDELAP")
Central Dique S.A. (51% owned by COINELEC)
(an Argentine corporation,"Central Dique")
Industrias Electricas de Houston S.A. (100% owned by HI
Energy) (an Argentine corporation, "Industrias")
Empresa de Distribuidora de Electricidad de Santiago
del Estero S.A. (90% owned by Industrias) (an
Argentine corporation, "EDESE")
Houston Industries Energy - India, Inc. (100% owned by
HI Energy) (a Mauritius corporation, "HIE India")
Houston Industries Energy - Rain, Inc. (100% owned
HIE India) (a Mauritius corporation, "HIE Rain")
Rain Calcining Limited (65% owned by HIE Rain) (an
Indian corporation, "Rain")
34 of 34
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> OPUR3
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1995
<PERIOD-START> JAN-01-1995
<PERIOD-END> DEC-31-1995
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 11,847,018
<TOTAL-OPERATING-REVENUES> 3,730,173
<NET-INCOME> 1,123,966
</TABLE>
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