Commission File No. 69-70
=================================================================
FORM U-3A-2
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
Statement by Holding Company Claiming Exemption Under Rule U-3A-2
from the Provisions of the
Public Utility Holding Company Act of 1935
For the Fiscal Year Ended December 31, 1993
To Be Filed Annually Prior to March 1
THE CINCINNATI GAS & ELECTRIC COMPANY
(Name of Company)
Name, title, and address of officer to whom notices and
correspondence concerning this statement should be addressed:
William L. Sheafer, Treasurer
139 East Fourth Street, Cincinnati, Ohio 45202
513-381-2000
(Telephone Number)
<PAGE>
Commission File No. 69-70
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
THE CINCINNATI GAS & ELECTRIC COMPANY
-------------------------------------
(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.
State of Nature of
Name of Company Organization Location Business
--------------- ------------ -------- --------
The Cincinnati Gas & Ohio Cincinnati, Electric and
Electric Company Ohio Gas Utility
(Claimant)
CGE Corp. Delaware Cincinnati, Non-Utility
(Subsidiary of Claimant) Ohio Operations
(CGE Corp.)
The Union Light, Heat Kentucky Covington, Electric and
and Power Company Kentucky Gas Utility
(Union)
<PAGE>
Enertech Associates Ohio Cincinnati, Non-Utility
International, Inc. Ohio Operations
(Subsidiary of Union)
(Enertech)
The West Harrison Gas Indiana Lawrenceburg, Electric
and Electric Company Indiana Utility
(West Harrison)
Miami Power Indiana Lawrenceburg, Electric
Corporation Indiana Utility
(Miami)
Lawrenceburg Gas Indiana Lawrenceburg, Gas Utility
Company Indiana
(Lawrenceburg Gas)
Tri-State Improvement Ohio Cincinnati, Real Estate
Company Ohio Development
(Tri-State)
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 which deliver or
receive electric energy or gas at the borders of such State.
(a) Claimant
--------
Claimant wholly owns two of four conventional steam electric generating
units and six combustion turbine units, with a combined net capability of
450,000 KW at the Miami Fort Station, located in Ohio. This station is on the
Ohio River and is about 20 miles west of the center of Cincinnati. Claimant
has undivided interests in two commonly-owned units at this station with the
Claimant's share of combined net capability being 640,000 KW.
<PAGE>
Claimant wholly owns five of six conventional steam electric generating
units and four combustion turbine units, with a combined net capability of
948,800 KW at the Walter C. Beckjord Station, located in Ohio. This station
is on the Ohio River and is about 20 miles southeast of the center of
Cincinnati. Claimant has an undivided interest in the sixth unit, a
commonly-owned unit, at this station with the Claimant's share of net
capability being 157,500 KW.
Claimant has undivided interests in four commonly-owned steam electric
generating units at the J.M. Stuart Station, located in Ohio, with the
Claimant's share of combined net capability being 912,600 KW. This station is
on the Ohio River near Aberdeen, Ohio and is about 65 miles southeast of the
center of Cincinnati.
Claimant has an undivided interest in a commonly-owned steam electric
generating unit at the Conesville Station, located in Ohio, with the
Claimant's share of net capability being 312,000 KW. This station is located
on the Muskingum River and is about 60 miles east of Columbus, Ohio.
Claimant has an undivided interest in a commonly-owned steam electric
generating unit at the East Bend Station, located in Kentucky, with the
Claimant's share of net capability being 414,000 KW. This station is located
on the Ohio River and is about 40 miles southwest of the center of Cincinnati.
Claimant has an undivided interest in a commonly-owned steam electric
generating unit at the Killen Station, located in Ohio, with the Claimant's
share of net capability being 198,000 KW. This station is located on the Ohio
River and is about 80 miles southeast of the center of Cincinnati.
Claimant has an undivided interest in a commonly-owned steam electric
generating unit at the Wm. H. Zimmer Generating Station, located in Ohio, with
the Claimant's share of net capability being 604,500 KW. This station is
<PAGE>
located on the Ohio River near Moscow, Ohio and is about 25 miles southeast of
the center of Cincinnati.
Claimant wholly owns a combustion turbine electric generating station,
Dicks Creek Station, with a net capability of 172,300 KW. This station is
located in the City of Middletown, Ohio.
Claimant wholly owns six combustion turbine electric generating units
with a combined net capability of 564,000 KW at Woodsdale Generating Station,
located in Ohio. This station is in Butler County and is about 24 miles north
of the center of Cincinnati.
Total net generating capability available to Claimant as of December 31,
1993 was 5,373,700 KW.
Claimant owns an overhead and underground electric transmission and
distribution system in Cincinnati, and other incorporated communities and
adjacent rural territory within all or parts of the Counties of Hamilton,
Butler, Warren, Clermont, Preble, Montgomery, Clinton, Highland, Adams and
Brown, in southwestern Ohio. Claimant also owns electric transmission lines
within the Counties of Boone, Kenton, Pendleton and Campbell, in northern
Kentucky.
Claimant owns a 7,000,000 gallon capacity underground cavern located in
the Village of Monroe, Ohio, for the storage of liquid propane and a related
vaporization and mixing plant, located in Middletown, Ohio, and an 8,000,000
gallon capacity underground cavern for the storage of liquid propane and a
related vaporization and mixing plant located in the City of Cincinnati, which
are used primarily to augment Claimant's supply of natural gas during periods
of peak demand and emergencies. Claimant has gas distribution systems in
Cincinnati, Middletown, and other incorporated communities and in contiguous
rural territory within all or parts of the Counties of Hamilton, Butler,
Warren, Clermont, Clinton, Montgomery, Brown and Adams, in southwestern Ohio.
<PAGE>
Claimant's electric transmission system is connected at the Kentucky-
Indiana state line and the Indiana-Ohio state line with the transmission
system of Indiana Michigan Power Company and PSI Energy, respectively, both
non-affiliates. (See Note 12 for information regarding the proposed merger of
Claimant and PSI Resources, Inc. parent of PSI Energy, Inc.) The electric
lines of Claimant are also connected at the Ohio-Indiana state line with the
distribution system of West Harrison, and at the Ohio-Kentucky state line with
the distribution system of Union; the latter companies purchase their
requirements of electric energy from Claimant. The electric transmission
lines of Claimant within Kentucky are connected with the Union distribution
system and with the transmission systems of the East Kentucky Power
Cooperative, Inc., and the Ohio Valley Electric Corporation, both non-
affiliates, through various substations in Kentucky.
The electric transmission system of Claimant is connected at the Ohio-
Kentucky state line with the transmission system of Miami, which company
transmits electric energy in interchange between Claimant and Louisville Gas
and Electric Company, a non-affiliate. Within the State of Ohio, the electric
transmission lines of Claimant are connected with the lines of Columbus
Southern Power Company, the City of Hamilton, Ohio, the City of Lebanon, Ohio,
The Dayton Power and Light Company, and Ohio Power Company, all non-
affiliates, and Ohio Valley Electric Corporation, an affiliate.
The gas lines of Claimant are connected at the Ohio-Kentucky state line
with the lines of Union, which transport natural gas to Claimant for the
account of Columbia Gas Transmission Corporation, a subsidiary of the Columbia
Gas System, Inc., a non-affiliate, and with the lines of said Columbia Gas
Transmission Corporation, from which Claimant purchases a part of its natural
gas requirements. Its gas feeder system is connected within Ohio with the
transmission systems of Texas Eastern Transmission Corporation, Texas Gas
<PAGE>
Transmission Corporation, and ANR Pipeline Company, all of which are non-
affiliates.
All of the property owned by Claimant is located within the State of
Ohio, except for the East Bend Station and certain electric transmission lines
located in Northern Kentucky and certain communications equipment located in
southeastern Indiana and northern Kentucky.
(b) Union
-----
Union owns an electric transmission system and an electric distribution
system in Covington, Newport and other smaller communities and in adjacent
rural territory within all or parts of the Counties of Kenton, Campbell,
Boone, Grant and Pendleton, in Kentucky. Union owns a gas distribution system
in Covington, Newport and other smaller communities and in adjacent rural
territory within all or parts of the Counties of Kenton, Campbell, Boone,
Grant, Gallatin and Pendleton, in Kentucky. Union owns a 7,000,000 gallon
capacity underground cavern for the storage of liquid propane and a related
vaporization and mixing plant and feeder lines, located in Kenton County,
Kentucky near the Kentucky-Ohio line and adjacent to one of the gas lines that
transport natural gas to Claimant. The cavern and vaporization and mixing
plant are used primarily to augment Claimant's and Union's supply of natural
gas during periods of peak demand and emergencies. Union's electric
distribution lines are connected at the Ohio-Kentucky state line with the
electric distribution system of Claimant. Union's electric distribution
system is also connected to Claimant's electric transmission lines in Kentucky
at various substations located within Kentucky.
Within the Commonwealth of Kentucky, the electric transmission lines of
Union are connected with the lines of Claimant and the East Kentucky Power
Cooperative, Inc. Union's gas distribution system is connected within
<PAGE>
Kentucky with the transmission lines of Columbia Gas Transmission Corporation,
a non-affiliate, and with the gas distribution system of Claimant at the Ohio-
Kentucky state line. All of the property of Union is located wholly within
the Commonwealth of Kentucky.
(c) West Harrison
-------------
West Harrison owns an electric distribution system in West Harrison,
Indiana and adjacent rural territory which connects at the Indiana-Ohio state
line with the electric distribution system of Claimant. All of the property
of West Harrison is located wholly within the State of Indiana.
(d) Miami
-----
Miami owns an overhead electric transmission system which connects with
the transmission system of Claimant at the Ohio-Kentucky state line and
extends through Kentucky and Indiana to a point near Madison, Indiana, where
it connects with the transmission lines of Louisville Gas and Electric
Company, a non-affiliated company.
(e) Lawrenceburg Gas
----------------
Lawrenceburg Gas owns a gas distribution system in and around
Lawrenceburg, Greendale, Brookville, Rising Sun, Cedar Grove, and West
Harrison, Indiana. Lawrenceburg Gas is connected with and sells gas at
wholesale to the City of Aurora, Indiana, and also is connected within Indiana
with the lines of Texas Gas Transmission Corporation and Texas Eastern
Transmission Corporation, both non-affiliates. All of the property of
Lawrenceburg Gas is located wholly within the State of Indiana.
<PAGE>
3. The following information for the last calendar year with respect to
claimant and each of its subsidiary public utility companies:
Twelve Months Ended December 31, 1993
-------------------------------------
(a) Number of Kwh of electric energy sold (at retail or wholesale), and
Mcf of natural or manufactured gas distributed at retail.
Claimant
Electric Energy
Kwh of electric energy sold......................... 22,539,094,589
(including amounts delivered in interchange)
Gas
Mcf of gas distributed at retail.................... 56,617,858
(including natural and manufactured gas)
Union
Electric Energy
Kwh of electric energy sold......................... 3,016,848,434
Gas
Mcf of gas distributed at retail.................... 10,534,069
West Harrison
Electric Energy
Kwh of electric energy sold......................... 6,101,199
Gas
Mcf of gas distributed at retail.................... Not Applicable
Miami
Electric Energy
Kwh of electric energy sold......................... Not Applicable
Gas
Mcf of gas distributed at retail.................... Not Applicable
<PAGE>
Twelve Months Ended December 31, 1993
-------------------------------------
Lawrenceburg Gas
Electric Energy
Kwh of electric energy sold......................... Not Applicable
Gas
Mcf of gas distributed at retail.................... 727,593
(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.
All companies............................................ 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.
Claimant
Electric Energy
Kwh of electric energy sold to Union
within the state of Kentucky and at
Ohio-Kentucky state line........................... 3,121,382,869
Kwh of electric energy sold to West Harrison
at Indiana-Ohio state line......................... 6,595,891
Kwh of electric energy delivered to PSI Energy
at Indiana-Ohio state line pursuant to
purchase and interchange agreements................ 39,197,000
Kwh of electric energy delivered at Ohio-Kentucky
state line for transmission to Louisville
Gas and Electric Company pursuant to
interchange agreement (delivered through
transmission system of Miami and including energy
interchanged with Tennessee Valley Authority)...... 45,922,000
Kwh of electric energy delivered to
East Kentucky Power Cooperative, Inc.
within the state of Kentucky pursuant
to interconnection agreements...................... 483,594,000
<PAGE>
Twelve Months Ended December 31, 1993
-------------------------------------
Gas
Mcf of natural gas sold............................. None
Union
Electric Energy
Kwh of electric energy sold......................... None
Gas
Mcf of natural gas sold
to Claimant at Ohio-Kentucky state line............ 172,114
West Harrison
Electric Energy
Kwh of electric energy sold......................... None
Gas
Mcf of natural gas sold............................. Not Applicable
Miami
Electric Energy
Kwh of electric energy sold......................... Not Applicable
Gas
Mcf of natural gas sold............................. Not Applicable
Lawrenceburg Gas
Electric Energy
Kwh of electric energy sold......................... Not Applicable
Gas
Mcf of natural gas sold............................. None
<PAGE>
Twelve Months Ended December 31, 1993
-------------------------------------
(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.
Claimant
Electric Energy
Kwh of electric energy received from PSI Energy
at Indiana-Ohio state line pursuant to
purchase and interchange agreements................ 544,522,000
Kwh of electric energy received from Louisville
Gas and Electric Company at Ohio-Kentucky
state line pursuant to purchase and interchange
agreements (delivered through transmission
system of Miami and including energy received
for account of Tennessee Valley Authority)......... 144,892,000
Kwh of electric energy received from East
Kentucky Power Cooperative, Inc. within
the state of Kentucky pursuant to
interconnection agreements......................... 270,622,000
Gas
Mcf of natural gas purchased from Union Pacific
Fuels outside the state of Ohio and stored......... 1,408,768
Mcf of natural gas purchased from Natural
Gas Clearinghouse outside the state of
Ohio and stored.................................... 2,022,011
Mcf of natural gas purchased from Tenneco Gas
Marketing outside the state of Ohio and stored..... 275,838
Mcf of natural gas purchased from Texaco Gas
Marketing outside the state of Ohio and stored..... 1,894,053
Mcf of natural gas purchased from Chevron U.S.A.
outside the state of Ohio and stored............... 369,252
Mcf of natural gas purchased from Columbia Gas
Transmission outside the state of Ohio and stored.. 3,210,111
<PAGE>
Twelve Months Ended December 31, 1993
-------------------------------------
Mcf of natural gas purchased from Vastar Gas
Marketing outside the state of Ohio and stored..... 189,987
Mcf of natural gas purchased from various non-
affiliates outside the state of Ohio and stored.... 5,981
Mcf of natural gas purchased from Union at
Ohio-Kentucky state line........................... 172,114
Mcf of natural gas purchased from Columbia
Gas Transmission Corporation at Ohio-Kentucky
state line......................................... 7,037,959
Mcf of natural gas purchased from Tenneco Gas
Marketing outside the state of Ohio................ 7,395,132
Mcf of natural gas purchased from Entrade
outside the state of Ohio.......................... 110,279
Mcf of natural gas purchased from Fina Natural
Gas outside the state of Ohio...................... 598,890
Mcf of natural gas purchased from Unocal Exploration
Partners outside the state of Ohio................. 463,581
Mcf of natural gas purchased from Chevron U.S.A.
outside the state of Ohio.......................... 1,605,617
Mcf of natural gas purchased from Natural Gas
Clearinghouse outside the state of Ohio............ 9,319,942
Mcf of natural gas purchased from Coastal Gas
Marketing outside the state of Ohio................ 479,050
Mcf of natural gas purchased from Columbia Gas
Development outside the state of Ohio.............. 196,246
Mcf of natural gas purchased from TXG Gas
Marketing outside the state of Ohio................ 512,305
Mcf of natural gas purchased from Kerr McGee
outside the state of Ohio.......................... 423,457
<PAGE>
Twelve Months Ended December 31, 1993
-------------------------------------
Mcf of natural gas purchased from Arco Oil
& Gas outside the state of Ohio.................... 136,133
Mcf of natural gas purchased from Mobil
Oil outside the state of Ohio...................... 390,572
Mcf of natural gas purchased from Aquila Energy
outside the state of Ohio.......................... 972,424
Mcf of natural gas purchased from O & R Energy
outside the state of Ohio.......................... 1,944,775
Mcf of natural gas purchased from American
Central Gas Marketing outside the state
of Ohio............................................ 167,841
Mcf of natural gas purchased from Texaco Gas
Marketing outside the state of Ohio................ 4,734,758
Mcf of natural gas purchased from Enron Gas
Marketing outside the state of Ohio................ 275,691
Mcf of natural gas purchased from Polaris
outside the state of Ohio.......................... 411,950
Mcf of natural gas purchased from Seagull
Marketing Service outside the state of Ohio........ 989,310
Mcf of natural gas purchased from Santa Fe
Minerals outside the state of Ohio................. 174,138
Mcf of natural gas purchased from Union
Pacific Fuels outside the state of Ohio............ 3,659,958
Mcf of natural gas purchased from Transco Energy
Marketing outside the state of Ohio................ 424,974
Mcf of natural gas purchased from Tejas Power
outside the state of Ohio.......................... 141,955
Mcf of natural gas purchased from Tennessee
Gas Pipeline outside the state of Ohio............. 199,551
<PAGE>
Twelve Months Ended December 31, 1993
-------------------------------------
Mcf of natural gas purchased from CMS Gas
Marketing outside the state of Ohio................ 219,971
Mcf of natural gas purchased from Women's
Energy outside the state of Ohio................... 273,029
Mcf of natural gas purchased from Anadarko
Trading outside the state of Ohio.................. 301,338
Mcf of natural gas purchased from Conoco
outside the state of Ohio.......................... 550,386
Mcf of natural gas purchased from Valero
Industrial Gas outside the state of Ohio........... 397,233
Mcf of natural gas purchased from Appalachian
Gas Sales outside the state of Ohio................ 345,254
Mcf of natural gas purchased from Vastar
Gas Marketing outside the state of Ohio............ 2,916,622
Mcf of natural gas purchased from Transco
Gas Marketing outside the state of Ohio............ 1,961,576
Mcf of natural gas purchased through exchange from
Texas Gas Transmission outside the state of Ohio... 1,403,258
Mcf of natural gas purchased from various
non-affiliates outside the state of Ohio........... 330,776
Union
Electric Energy
Kwh of electric energy purchased from Claimant
within the state of Kentucky and at Ohio-Kentucky
state line (none purchased outside the state of
Kentucky).......................................... 3,121,382,869
Gas
Mcf of natural gas purchased from Natural Gas
Clearinghouse outside the state of Kentucky
and stored......................................... 343,627
<PAGE>
Twelve Months Ended December 31, 1993
-------------------------------------
Mcf of natural gas purchased from Tenneco Gas
Marketing outside the state of Kentucky and stored. 358,013
Mcf of natural gas purchased from Texaco Gas
Marketing outside the state of Kentucky and stored. 332,475
Mcf of natural gas purchased from Columbia Gas
Transmission outside the state of Kentucky
and stored......................................... 529,838
Mcf of natural gas purchased from various
non-affiliates outside the state of Kentucky
and stored......................................... 27,029
Mcf of natural gas purchased from Texas Gas
Transmission at Ohio-Kentucky state line........... 126,587
Mcf of natural gas purchased from Arco Oil &
Gas outside the state of Kentucky.................. 115,649
Mcf of natural gas purchased from Texaco Gas
Marketing outside the state of Kentucky............ 746,925
Mcf of natural gas purchased from Entrade
outside the state of Kentucky...................... 105,593
Mcf of natural gas purchased from Enron Gas
Marketing outside the state of Kentucky............ 132,899
Mcf of natural gas purchased from Seagull
Marketing Service outside the state of Kentucky.... 270,165
Mcf of natural gas purchased from TXG Gas
Marketing outside the state of Kentucky............ 237,574
Mcf of natural gas purchased from Union Pacific
Fuels outside the state of Kentucky................ 491,088
Mcf of natural gas purchased from Natural Gas
Clearinghouse outside the state of Kentucky........ 1,812,644
Mcf of natural gas purchased from Tenneco Gas
Marketing outside the state of Kentucky............ 1,386,498
<PAGE>
Twelve Months Ended December 31, 1993
-------------------------------------
Mcf of natural gas purchased from Aquila Energy
outside the state of Kentucky...................... 592,488
Mcf of natural gas purchased from Tennessee
Gas Pipeline outside the state of Kentucky......... 126,872
Mcf of natural gas purchased from O & R Energy
outside the state of Kentucky...................... 122,453
Mcf of natural gas purchased from Vastar Gas
Marketing outside the state of Kentucky............ 614,254
Mcf of natural gas purchased from Transco
Gas Marketing outside the state of Kentucky........ 344,859
Mcf of natural gas purchased from Valero
Industrial Gas outside the state of Kentucky....... 85,298
Mcf of natural gas purchased from Chevron U.S.A.
outside the state of Kentucky...................... 98,853
Mcf of natural gas purchased from Unocal Exploration
Partners outside the state of Kentucky............. 95,534
Mcf of natural gas purchased through exchange from
Texas Gas Transmission outside the state of
Kentucky........................................... 222,297
Mcf of natural gas purchased from various
non-affiliates outside the state of Kentucky....... 591,427
West Harrison
Electric Energy
Kwh of electric energy purchased from Claimant
at Indiana-Ohio state line......................... 6,595,891
Gas
Mcf of natural gas purchased........................ Not Applicable
<PAGE>
Twelve Months Ended December 31, 1993
-------------------------------------
Miami
Electric Energy
Kwh of electric energy purchased.................... Not Applicable
Gas
Mcf of natural gas purchased........................ Not Applicable
Lawrenceburg Gas
Electric Energy
Kwh of electric energy purchased.................... Not Applicable
Gas
Mcf of natural gas purchased from CNG Producing
outside the state of Indiana....................... 111,026
Mcf of natural gas purchased from Natural Gas
Clearinghouse outside the state of Indiana......... 255,456
Mcf of natural gas purchased from Texas Gas
Marketing outside the state of Indiana............. 114,963
Mcf of natural gas purchased from Woodward
Marketing outside the state of Indiana............. 220,762
Mcf of natural gas purchased from Valero Industrial
Gas outside the state of Indiana................... 125,933
Mcf of natural gas purchased from Anadarko
Trading outside the state of Indiana............... 80,007
Mcf of natural gas purchased from Seagull
Marketing Service outside the state of Indiana..... 56,322
Mcf of natural gas purchased from Unocal Exploration
Partners outside the state of Indiana.............. 48,934
Mcf of natural gas purchased from various
non-affiliates outside the state of Indiana........ 183,723
<PAGE>
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.
All companies..................................... None
(b) Name of each system company that holds an interest in such EWG or
foreign utility company; and description of the interest held.
All companies..................................... None
(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 foreign utility company.
All companies..................................... None
(d) Capitalization and earnings of the EWG or foreign utility company
during the reporting period.
All companies..................................... None
(e) Identify any service, sales or construction contract(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).
All companies..................................... None
<PAGE>
Attached hereto as Exhibits A-1, A-2, and A-3, respectively, are a
consolidating balance sheet of Claimant, Union, Miami, West Harrison,
Lawrenceburg Gas, Tri-State and Enertech as of December 31, 1993 and
consolidating income and retained earnings statements of Claimant, Union,
Miami, West Harrison, Lawrenceburg Gas, Tri-State and Enertech for the twelve
months ended December 31, 1993 (see Note 1 to Consolidating Financial
Statements).
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, 1994.
THE CINCINNATI GAS & ELECTRIC COMPANY
-------------------------------------
(CORPORATE SEAL) (Name of Claimant)
By William L. Sheafer
----------------------------------
(Title) (Treasurer)
Attest:
James R. Mosley
- - ------------------------
(Assistant Treasurer and
Assistant Secretary)
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
William L. Sheafer, Treasurer
- - ----------------------------------------------
(Name) (Title)
139 East Fourth Street, Cincinnati, Ohio 45202
- - ----------------------------------------------
(Address)
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-1
SHEET 1
THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES
--------------------------------------------------------------
Consolidating Balance Sheet - Assets December 31, 1993
------------------------------------------------------
West Lawrenceburg
Claimant Union Miami Harrison Gas
------------- ----------- ------- -------- ------------
$ $ $ $ $
<S> <C> <C> <C> <C> <C>
Property, Plant and Equipment
at original cost (Notes 7, 9 and 12)
In Service 4,855,545,489 319,603,467 563,551 511,000 12,378,026
Less - Accumulated provisions
for depreciation 1,372,461,162 96,164,955 550,682 144,447 2,991,664
------------- ----------- ------- ------- -----------
3,483,084,327 223,438,512 12,869 366,553 9,386,362
Construction work in progress 64,163,394 5,060,043 - - 127,944
------------- ----------- ------- ------- -----------
3,547,247,721 228,498,555 12,869 366,553 9,514,306
------------- ----------- ------- ------- -----------
Other Property and Investments
Non-utility property - net 2,407,750 2,206 - - -
Investment in Ohio Valley Electric Corporation,
at cost (Note 12) 900,000 - - - -
Investments in subsidiaries, equity basis
Capital stock 28,666,352 - - - -
Unappropriated undistributed subsidiary earnings 72,771,013 - - - -
Advances to subsidiary companies 13,133,699 - - - -
Other investments and property 604,068 1,500 - - -
------------- ----------- ------- ------- -----------
118,482,882 3,706 - - -
------------- ----------- ------- ------- -----------
Current Assets
Cash (Note 6) 2,014,501 2,477,343 31,069 5,592 35,324
Accounts receivable 191,822,258 27,173,365 - 59,114 1,058,749
Accumulated provisions for doubtful accounts (13,266,883) (1,609,144) - - (29,647)
Accounts receivable from affiliated companies 20,474,717 (21,979) 3,142 18 (5,661)
Accrued unbilled revenues 89,604,212 17,128,720 - 15,304 603,135
Materials, supplies and fuel, at average cost -
Fuel for use in electric production 54,358,039 - - - -
Other 89,480,277 8,664,381 - - 14,257
Taxes applicable to subsequent year 107,410,164 - - - -
Prepayments 28,230,147 703,243 - 204 119,590
Other 132,972 - - - -
------------- ----------- ------- ------- -----------
570,260,404 54,515,929 34,211 80,232 1,795,747
------------- ----------- ------- ------- -----------
Other Assets
Post-in-service carrying costs and deferred
operating expenses (Note 1) 154,635,963 - - - -
Phase-in deferred return and depreciation (Note 1) 83,430,482 - - - -
Amounts due from customers - income taxes 387,733,942 - - 14,053 -
Other 104,235,118 3,004,520 - 1 29,122
------------- ----------- ------- ------- -----------
730,035,505 3,004,520 - 14,054 29,122
------------- ----------- ------- ------- -----------
4,966,026,512 286,022,710 47,080 460,839 11,339,175
============= =========== ======= ======= ===========
<FN>
The accompanying notes are an integral part of the above statement.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-1
SHEET 1 (Continued)
THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES
--------------------------------------------------------------
Consolidating Balance Sheet - Assets December 31, 1993 (Continued)
------------------------------------------------------------------
Combined Consolidated
Tri-State Enertech Totals Adjustments Totals
--------- -------- ------------- ----------- ------------
$ $ $ $ $
<S> <C> <C> <C> <C> <C>
Property, Plant and Equipment
at original cost (Notes 7, 9 and 12)
In Service - - 5,188,601,533 - 5,188,601,533
Less - Accumulated provisions
for depreciation - - 1,472,312,910 - 1,472,312,910
---------- ------- ------------- ------------- -------------
- - 3,716,288,623 - 3,716,288,623
Construction work in progress - - 69,351,381 - 69,351,381
---------- ------- ------------- ------------- -------------
- - 3,785,640,004 - 3,785,640,004
---------- ------- ------------- ------------- -------------
Other Property and Investments
Non-utility property - net 14,643,014 - 17,052,970 - 17,052,970
Investment in Ohio Valley Electric Corporation,
at cost (Note 12) - - 900,000 - 900,000
Investments in subsidiaries, equity basis
Capital stock - - 28,666,352 (28,666,352) -
Unappropriated undistributed subsidiary earnings - - 72,771,013 (72,771,013) -
Advances to subsidiary companies - - 13,133,699 (13,133,699) -
Other investments and property - - 605,568 - 605,568
---------- ------- ------------- ------------- -------------
14,643,014 - 133,129,602 (114,571,064) 18,558,538
---------- ------- ------------- ------------- -------------
Current Assets
Cash (Note 6) 3,709 2,399 4,569,937 - 4,569,937
Accounts receivable 183,372 142,279 220,439,137 676,476 221,115,613
Accumulated provisions for doubtful accounts - - (14,905,674) - (14,905,674)
Accounts receivable from affiliated companies (3,285) - 20,446,952 (20,446,952) -
Accrued unbilled revenues - - 107,351,371 (1,396,031) 105,955,340
Materials, supplies and fuel, at average cost -
Fuel for use in electric production - - 54,358,039 - 54,358,039
Other - - 98,158,915 - 98,158,915
Taxes applicable to subsequent year - - 107,410,164 - 107,410,164
Prepayments - - 29,053,184 - 29,053,184
Other - - 132,972 - 132,972
---------- ------- ------------- ------------- -------------
183,796 144,678 627,014,997 (21,166,507) 605,848,490
---------- ------- ------------- ------------- -------------
Other Assets
Post-in-service carrying costs and deferred
operating expenses (Note 1) - - 154,635,963 - 154,635,963
Phase-in deferred return and depreciation (Note 1) - - 83,430,482 - 83,430,482
Amounts due from customers - income taxes - - 387,747,995 - 387,747,995
Other - - 107,268,761 393,114 107,661,875
---------- ------- ------------- ------------- -------------
- - 733,083,201 393,114 733,476,315
---------- ------- ------------- ------------- -------------
14,826,810 144,678 5,278,867,804 (135,344,457) 5,143,523,347
========== ======= ============= ============= =============
<FN>
The accompanying notes are an integral part of the above statement.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-1
SHEET 2
THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES
--------------------------------------------------------------
Consolidating Balance Sheet - Liabilities December 31, 1993
-----------------------------------------------------------
West Lawrenceburg
Claimant Union Miami Harrison Gas
------------- ----------- ------- -------- ------------
$ $ $ $ $
<S> <C> <C> <C> <C> <C>
Capitalization
Common shareholders' equity
Common shares, par value $8.50 per share
(Note 3)
Authorized-120,000,000 shares
Outstanding-88,062,083 748,527,706 - - - -
Additional paid-in capital (Note 3) 314,218,044 - - - -
Capital shares of subsidiary companies - 27,618,941 1,000 20,000 538,400
Retained earnings 456,511,275 69,327,355 34,628 234,393 4,136,818
------------- ----------- -------- ------- -----------
Total common shareholders' equity 1,519,257,025 96,946,296 35,628 254,393 4,675,218
------------- ----------- -------- ------- -----------
Cumulative preferred shares, par value $100
per share (Notes 4 and 5)
Outstanding-
Not subject to mandatory redemption-
4 % series - 270,000 shares 27,000,000 - - - -
4-3/4 % series - 130,000 shares 13,000,000 - - - -
7.44 % series - 400,000 shares 40,000,000 - - - -
9.28 % series - 400,000 shares 40,000,000 - - - -
------------- ----------- -------- ------- -----------
120,000,000 - - - -
------------- ----------- -------- ------- -----------
Subject to mandatory redemption-
9.15 % series - 500,000 shares 50,000,000 - - - -
7-7/8 % series - 800,000 shares 80,000,000 - - - -
7-3/8 % series - 800,000 shares 80,000,000 - - - -
------------- ----------- -------- ------- -----------
210,000,000 - - - -
------------- ----------- -------- ------- -----------
Long-term debt (Note 7) 1,738,414,278 89,171,831 - - 1,200,000
------------- ----------- -------- ------- -----------
Total capitalization 3,587,671,303 186,118,127 35,628 254,393 5,875,218
------------- ----------- -------- ------- -----------
Current Liabilities
Advances from parent company - - - - -
Notes payable - (Note 6)
Bank 6,000,000 25,000,000 - - -
Other 12,500 - - - -
Accounts payable 114,917,924 6,914,373 - 2 783,006
Accounts payable to affiliated companies (34,998) 17,096,029 1,321 109,386 2,664,747
Dividends payable on preferred shares 6,290,125 - - - -
Accrued taxes 223,189,900 (434,538) 5,178 (1,499) 59,795
Accrued interest on debt 26,965,316 2,126,283 - 796 30,644
Other current and accrued liabilities 25,752,323 3,632,084 - 5,183 106,715
------------- ----------- -------- ------- -----------
403,093,090 54,334,231 6,499 113,868 3,644,907
------------- ----------- -------- ------- -----------
Deferred Credits and Other
Deferred income taxes-(Note 1) 709,797,159 20,486,616 (32,408) 66,046 997,574
Investment tax credits 135,594,342 5,651,190 472 15,228 259,389
Other liabilities and deferred credits 129,870,618 19,432,546 36,889 11,304 562,087
------------- ----------- -------- ------- -----------
975,262,119 45,570,352 4,953 92,578 1,819,050
------------- ----------- -------- ------- -----------
4,966,026,512 286,022,710 47,080 460,839 11,339,175
============= =========== ======== ======= ===========
<FN>
The accompanying notes are an integral part of the above statement.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-1
SHEET 2 (Continued)
THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES
--------------------------------------------------------------
Consolidating Balance Sheet - Liabilities December 31, 1993 (Continued)
-----------------------------------------------------------------------
Combined Consolidated
Tri-State Enertech Totals Adjustments Totals
--------- -------- ------------- ----------- ------------
$ $ $ $ $
<S> <C> <C> <C> <C> <C>
Capitalization
Common shareholders' equity
Common shares, par value $8.50 per share
(Note 3)
Authorized-120,000,000 shares
Outstanding-88,062,083 - - 748,527,706 - 748,527,706
Additional paid-in capital (Note 3) - - 314,218,044 - 314,218,044
Capital shares of subsidiary companies 25,000 50,000 28,253,341 (28,253,341) -
Retained earnings (197,449) (443,114) 529,603,906 (73,092,630) 456,511,276
---------- --------- ------------- ------------- -------------
Total common shareholders' equity (172,449) (393,114) 1,620,602,997 (101,345,971) 1,519,257,026
---------- --------- ------------- ------------- -------------
Cumulative preferred shares, par value $100
per share (Notes 4 and 5)
Outstanding-
Not subject to mandatory redemption-
4 % series - 270,000 shares - - 27,000,000 - 27,000,000
4-3/4 % series - 130,000 shares - - 13,000,000 - 13,000,000
7.44 % series - 400,000 shares - - 40,000,000 - 40,000,000
9.28 % series - 400,000 shares - - 40,000,000 - 40,000,000
---------- --------- ------------- ------------- -------------
- - 120,000,000 - 120,000,000
---------- --------- ------------- ------------- -------------
Subject to mandatory redemption-
9.15 % series - 500,000 shares - - 50,000,000 - 50,000,000
7-7/8 % series - 800,000 shares - - 80,000,000 - 80,000,000
7-3/8 % series - 800,000 shares - - 80,000,000 - 80,000,000
---------- --------- ------------- ------------- -------------
- - 210,000,000 - 210,000,000
---------- --------- ------------- ------------- -------------
Long-term debt (Note 7) 275,000 - 1,829,061,109 - 1,829,061,109
---------- --------- ------------- ------------- -------------
Total capitalization 102,551 (393,114) 3,779,664,106 (101,345,971) 3,678,318,135
---------- --------- ------------- ------------- -------------
Current Liabilities
Advances from parent company 13,133,699 - 13,133,699 (13,133,699) -
Notes payable - (Note 6)
Bank - - 31,000,000 - 31,000,000
Other - - 12,500 - 12,500
Accounts payable 788 4,078 122,620,171 - 122,620,171
Accounts payable to affiliated companies 65,912 544,555 20,446,952 (20,446,952) -
Dividends payable on preferred shares - - 6,290,125 - 6,290,125
Accrued taxes (298,583) (10,840) 222,509,413 (290,431) 222,218,982
Accrued interest on debt - (1) 29,123,038 - 29,123,038
Other current and accrued liabilities - - 29,496,305 - 29,496,305
---------- --------- ------------- ------------- -------------
12,901,816 537,792 474,632,203 (33,871,082) 440,761,121
---------- --------- ------------- ------------- -------------
Deferred Credits and Other
Deferred income taxes-(Note 1) 1,822,443 - 733,137,430 86,226 733,223,656
Investment tax credits - - 141,520,621 - 141,520,621
Other liabilities and deferred credits - - 149,913,444 (213,630) 149,699,814
---------- --------- ------------- ------------- -------------
1,822,443 - 1,024,571,495 (127,404) 1,024,444,091
---------- --------- ------------- ------------- -------------
14,826,810 144,678 5,278,867,804 (135,344,457) 5,143,523,347
========== ========= ============= ============= =============
<FN>
The accompanying notes are an integral part of the above statement.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-1
SHEET 3
THE CINCINNATI GAS & ELECTRIC COMPANY
AND SUBSIDIARY COMPANIES
---------------------------------------
Consolidating Balance Sheet Adjustments
December 31, 1993
---------------------------------------
ADJUSTMENT NO. 1 $ $
---------------- ---------- ----------
<S> <C> <C>
Capital shares of subsidiary companies 28,253,341
Retained earnings 73,184,024
Investment in subsidiaries--capital stock 28,666,352
Unappropriated undistributed subsidiary earnings 72,771,013
</TABLE>
To eliminate investments in subsidiary companies as set forth below:
<TABLE>
<CAPTION>
$
-----------
<S> <C>
Capital stock
The Union Light, Heat and Power Company 27,397,284
Miami Power Corporation 40,980
The West Harrison Gas and Electric Company 25,986
Lawrenceburg Gas Company 1,177,102
Tri-State Improvement Company 25,000
-----------
28,666,352
-----------
Unappropriated undistributed subsidiary earnings:
The Union Light, Heat and Power Company 69,247,292
Miami Power Corporation (5,352)
The West Harrison Gas and Electric Company 228,407
Lawrenceburg Gas Company 3,498,115
Tri-State Improvement Company (197,449)
-----------
72,771,013
-----------
Total investment 101,437,365
Elimination of capital shares 28,253,341
-----------
Net debit to "Retained earnings" 73,184,024
===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-1
SHEET 4
THE CINCINNATI GAS & ELECTRIC COMPANY
AND SUBSIDIARY COMPANIES
---------------------------------------
Consolidating Balance Sheet Adjustments
December 31, 1993
---------------------------------------
ADJUSTMENT NO. 2 $ $
---------------- ---------- ----------
<S> <C> <C>
Advances from parent company 13,133,699
Advances to subsidiary companies 13,133,699
</TABLE>
To eliminate advances to Tri-State Improvement Company
from The Cincinnati Gas & Electric Company.
<TABLE>
<CAPTION>
ADJUSTMENT NO. 3
----------------
<S> <C> <C>
Accounts payable to affiliated companies 20,446,952
Accounts receivable from affiliated companies 20,446,952
</TABLE>
To eliminate inter-company accounts receivable and
payable at December 31, 1993, as set forth below:
<TABLE>
<CAPTION>
Receivables Payables
----------- --------
<S> <C> <C>
The Cincinnati Gas & Electric Company 20,474,717 (34,998)
The Union Light, Heat and Power Company (21,979) 17,096,029
Miami Power Corporation 3,142 1,321
The West Harrison Gas and Electric Company 18 109,386
Lawrenceburg Gas Company (5,661) 2,664,747
Tri-State Improvement Company (3,285) 65,912
Enertech Associates International -- 544,555
---------- ----------
20,446,952 20,446,952
========== ==========
</TABLE>
<TABLE>
<CAPTION>
ADJUSTMENT NO. 4
----------------
<S> <C> <C>
Accounts receivable 676,476
Other assets - other 393,114
Accrued taxes 290,431
Other liabilities and deferred credits 213,630
Accrued unbilled revenues 1,396,031
Retained earnings 91,394
Deferred income taxes 86,226
</TABLE>
To eliminate miscellaneous adjustments of The Union Light, Heat and Power
Company for consolidation.
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-2
SHEET 1
THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES
--------------------------------------------------------------
Consolidating Statement of Income - Year Ended December 31, 1993
----------------------------------------------------------------
West Lawrenceburg
Claimant Union Miami Harrison Gas
------------- ----------- ------- -------- ------------
$ $ $ $ $
<S> <C> <C> <C> <C> <C>
Operating Revenues
Electric 1,242,658,815 175,712,173 33,519 457,074 -
Gas 387,673,125 75,744,165 - - 7,571,005
------------- ----------- ------- ------- -----------
Total operating revenues 1,630,331,940 251,456,338 33,519 457,074 7,571,005
------------- ----------- ------- ------- -----------
Operating Expenses
Gas purchased 233,479,468 43,380,287 - - 4,271,867
Fuel used in electric production 333,331,900 160,218 - 52 -
Electricity purchased from parent
company for resale - 134,129,849 - 335,114 -
Other operation 250,725,409 30,395,427 21,904 70,765 1,281,926
Maintenance 102,490,945 6,267,181 2,328 13,440 83,270
Provision for depreciation 141,886,282 9,812,929 1,356 16,377 343,909
Post-in-service deferred
operating expenses-net (Note 1) (6,471,389) - - - -
Phase-in deferred depreciation (Note 1) (8,523,784) - - - -
Taxes other than income taxes (Note 13) 179,442,677 3,623,331 4,870 12,945 283,483
Income taxes (Note 2) 64,194,962 4,749,667 2,545 (287) 352,243
Deferred income taxes - net (Note 2) 38,813,095 1,001,573 (1,453) 2,146 59,270
------------- ----------- ------- ------- -----------
Total operating expenses 1,329,369,565 233,520,462 31,550 450,552 6,675,968
------------- ----------- ------- ------- -----------
Operating Income 300,962,375 17,935,876 1,969 6,522 895,037
------------- ----------- ------- ------- -----------
Other Income and Deductions
Allowance for other funds used
during construction 2,856,897 296,639 - - -
Post-in-service carrying costs (Note 1) 12,100,043 - - - -
Phase-in deferred return (Note 1) 35,333,880 - - - -
Write-off of a portion of Zimmer Station (Note 8) (234,844,433) - - - -
Income taxes - credit (Notes 1 and 2)
Related to write-off of a portion of
Zimmer Station (Note 8) 12,084,977 - - - -
Other 9,136,119 45,775 - 745 2,131
Other - net 1,777,468 (579,695) - 9 (5,707)
------------- ----------- ------- ------- -----------
Total other income and deductions (161,555,049) (237,281) - 754 (3,576)
------------- ----------- ------- ------- -----------
Income (Loss) Before Interest Charges 139,407,326 17,698,595 1,969 7,276 891,461
------------- ----------- ------- ------- -----------
Interest Charges
Interest on long-term debt 145,368,195 8,207,155 - - 117,000
Other interest 2,112,800 331,499 - 4,759 62,153
Amortization of debt discount,
premium and other 3,255,129 89,592 - - 6,156
Allowance for borrowed funds used during
construction-credit (2,605,190) (268,226) - - (892)
------------- ----------- ------- ------- -----------
Net interest charges 148,130,934 8,360,020 - 4,759 184,417
------------- ----------- ------- ------- -----------
Net Income (Loss) (8,723,608) 9,338,575 1,969 2,517 707,044
============= =========== ======= ======= ===========
<FN>
The accompanying notes are an integral part of the above statement.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-2
SHEET 1 (Continued)
THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES
--------------------------------------------------------------
Consolidating Statement of Income - Year Ended December 31, 1993 (Continued)
----------------------------------------------------------------------------
Combined Consolidated
Tri-State Enertech Totals Adjustments Totals
--------- -------- ------------- ----------- ------------
$ $ $ $ $
<S> <C> <C> <C> <C> <C>
Operating Revenues
Electric - - 1,418,861,581 (136,416,501) 1,282,445,080
Gas - - 470,988,295 (1,692,488) 469,295,807
--------- --------- ------------- ------------- -------------
Total operating revenues - - 1,889,849,876 (138,108,989) 1,751,740,887
--------- --------- ------------- ------------- -------------
Operating Expenses
Gas purchased - - 281,131,622 (295,217) 280,836,405
Fuel used in electric production - - 333,492,170 (213,630) 333,278,540
Electricity purchased from parent
company for resale - - 134,464,963 (134,464,963) -
Other operation - - 282,495,431 (2,629,254) 279,866,177
Maintenance - - 108,857,164 - 108,857,164
Provision for depreciation - - 152,060,853 - 152,060,853
Post-in-service deferred
operating expenses-net (Note 1) - - (6,471,389) - (6,471,389)
Phase-in deferred depreciation (Note 1) - - (8,523,784) - (8,523,784)
Taxes other than income taxes (Note 13) - - 183,367,306 - 183,367,306
Income taxes (Note 2) - - 69,299,130 (290,431) 69,008,699
Deferred income taxes - net (Note 2) - - 39,874,631 86,226 39,960,857
--------- --------- ------------- ------------- -------------
Total operating expenses - - 1,570,048,097 (137,807,269) 1,432,240,828
--------- --------- ------------- ------------- -------------
Operating Income - - 319,801,779 (301,720) 319,500,059
--------- --------- ------------- ------------- -------------
Other Income and Deductions
Allowance for other funds used
during construction - - 3,153,536 - 3,153,536
Post-in-service carrying costs (Note 1) - - 12,100,043 - 12,100,043
Phase-in deferred return (Note 1) - - 35,333,880 - 35,333,880
Write-off of a portion of Zimmer Station (Note 8) - - (234,844,433) - (234,844,433)
Income taxes - credit (Notes 1 and 2)
Related to write-off of a portion of
Zimmer Station (Note 8) - - 12,084,977 - 12,084,977
Other (18,564) 238,600 9,404,806 - 9,404,806
Other - net - (664,484) 527,591 (10,077,870) (9,550,279)
--------- --------- ------------- ------------- -------------
Total other income and deductions (18,564) (425,884) (162,239,600) (10,077,870) (172,317,470)
--------- --------- ------------- ------------- -------------
Income (Loss) Before Interest Charges (18,564) (425,884) 157,562,179 (10,379,590) 147,182,589
--------- --------- ------------- ------------- -------------
Interest Charges
Interest on long-term debt - - 153,692,350 - 153,692,350
Other interest 712,060 17,230 3,240,501 (791,163) 2,449,338
Amortization of debt discount,
premium and other - - 3,350,877 - 3,350,877
Allowance for borrowed funds used during
construction-credit (712,060) - (3,586,368) - (3,586,368)
--------- --------- ------------- ------------- -------------
Net interest charges - 17,230 156,697,360 (791,163) 155,906,197
--------- --------- ------------- ------------- -------------
Net Income (Loss) (18,564) (443,114) 864,819 (9,588,427) (8,723,608)
========= ========= ============= ============= =============
<FN>
The accompanying notes are an integral part of the above statement.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-2
SHEET 2
THE CINCINNATI GAS & ELECTRIC COMPANY
AND SUBSIDIARY COMPANIES
---------------------------------------
Consolidating Statement of Income Adjustments
Year Ended December 31, 1993
---------------------------------------------
ADJUSTMENT NO. 1 $ $
---------------- ---------- ----------
<S> <C> <C>
Electric revenues 135,696,946
Gas revenues 1,692,488
Electricity purchased from parent company for resale 134,464,963
Gas purchased 295,217
Other operation 2,629,254
</TABLE>
To eliminate inter-company revenues and operation
expenses as described below:
<TABLE>
<CAPTION>
$
----------
<S> <C>
Electric --
Sale of electricity by The Cincinnati Gas &
Electric Company to --
The Union Light, Heat and Power Company 134,129,849
The West Harrison Gas and Electric Company 335,114
-----------
134,464,963
-----------
Transmission service rents charged by Miami Power
Corporation to --
The Cincinnati Gas & Electric Company 33,519
-----------
Rent charged by The Cincinnati Gas & Electric
Company to --
The Union Light, Heat and Power Company 1,139,916
Rent charged by The Union Light, Heat and Power
Company to --
The Cincinnati Gas & Electric Company 58,548
-----------
1,198,464
-----------
Total 135,696,946
===========
Gas --
Sale of gas by The Union Light, Heat and Power
Company to --
The Cincinnati Gas & Electric Company 142,724
Transportation charges by The Cincinnati Gas &
Electric Company to --
The Union Light, Heat and Power Company 152,493
-----------
295,217
-----------
Transportation charges by The Cincinnati Gas &
Electric Company to --
The Union Light, Heat and Power Company 47,268
-----------
Rent charged by The Cincinnati Gas & Electric
Company to --
Lawrenceburg Gas Company 13,596
The Union Light, Heat and Power Company 874,164
Rent charged by The Union Light, Heat and Power
Company to --
The Cincinnati Gas & Electric Company 462,243
-----------
1,350,003
-----------
Total 1,692,488
===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-2
SHEET 3
THE CINCINNATI GAS & ELECTRIC COMPANY
AND SUBSIDIARY COMPANIES
---------------------------------------
Consolidating Statement of Income Adjustments
Year Ended December 31, 1993
---------------------------------------------
ADJUSTMENT NO. 2 $ $
---------------- ---------- ----------
<S> <C> <C>
Electric revenues 719,555
Deferred income taxes -- net 86,226
Fuel used in electric production 213,630
Income taxes 290,431
Other -- net 301,720
</TABLE>
To eliminate miscellaneous adjustments of The Union Light, Heat and
Power Company for consolidation.
<TABLE>
<CAPTION>
ADJUSTMENT NO. 3
----------------
<S> <C> <C>
Other -- net 10,379,590
Other interest 791,163
Net income (memo) 9,588,427
</TABLE>
To eliminate other income and deductions as described below:
<TABLE>
<CAPTION>
$
-----------
<S> <C>
Interest on advance by The Cincinnati Gas & Electric
Company to Tri-State Improvement Company 712,060
-----------
Interest on accounts payable due The Cincinnati Gas &
Electric Company from --
The West Harrison Gas and Electric Company 4,481
Lawrenceburg Gas Company 60,964
Enertech Associates International 13,658
-----------
79,103
-----------
791,163
-----------
The Cincinnati Gas & Electric Company's equity in the current
year earnings of its subsidiaries for the year 1993 --
The Union Light, Heat and Power Company 9,338,575
Miami Power Corporation 1,969
The West Harrison Gas and Electric Company 2,517
Lawrenceburg Gas Company 707,044
Tri-State Improvement Company (18,564)
Enertech Associates International (443,114)
-----------
9,588,427
-----------
Total 10,379,590
===========
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-3
SHEET 1
THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES
--------------------------------------------------------------
Consolidating Statement of Retained Earnings - Year Ended December 31, 1993
---------------------------------------------------------------------------
West Lawrenceburg
Claimant Union Miami Harrison Gas
----------- ---------- ------- -------- ------------
$ $ $ $ $
<S> <C> <C> <C> <C> <C>
Balance - December 31, 1992 636,336,691 62,915,445 35,659 231,876 3,429,774
Add - Net income (loss) (8,723,608) 9,338,575 1,969 2,517 707,044
----------- ---------- ------- ------- -----------
627,613,083 72,254,020 37,628 234,393 4,136,818
----------- ---------- ------- ------- -----------
Deduct-
Cash dividends declared on capital shares:
Cumulative preferred - 4 % 1,080,000 - - - -
Cumulative preferred - 4-3/4 % 617,504 - - - -
Cumulative preferred - 7.44 % 2,976,000 - - - -
Cumulative preferred - 9.28 % 3,712,000 - - - -
Cumulative preferred - 9.15 % 4,575,000 - - - -
Cumulative preferred - 7-7/8 % 6,300,000 - - - -
Cumulative preferred - 7-3/8 % 5,900,000 - - - -
Common shares 145,941,304 2,926,665 3,000 - -
----------- ---------- ------- ------- -----------
171,101,808 2,926,665 3,000 - -
----------- ---------- ------- ------- -----------
Balance - December 31, 1993 456,511,275 69,327,355 34,628 234,393 4,136,818
=========== ========== ======= ======= ===========
<FN>
The accompanying notes are an integral part of the above statement.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-3
SHEET 1 (Continued)
THE CINCINNATI GAS & ELECTRIC COMPANY AND SUBSIDIARY COMPANIES
--------------------------------------------------------------
Consolidating Statement of Retained Earnings - Year Ended December 31, 1993 (Continued)
---------------------------------------------------------------------------------------
Combined Consolidated
Tri-State Enertech Totals Adjustments Totals
--------- -------- ----------- ----------- ------------
$ $ $ $ $
<S> <C> <C> <C> <C> <C>
Balance - December 31, 1992 (178,885) - 702,770,560 (66,433,868) 636,336,692
Add - Net income (loss) (18,564) (443,114) 864,819 (9,588,427) (8,723,608)
--------- --------- ----------- ------------ -----------
(197,449) (443,114) 703,635,379 (76,022,295) 627,613,084
--------- --------- ----------- ------------ -----------
Deduct-
Cash dividends declared on capital shares:
Cumulative preferred - 4 % - - 1,080,000 - 1,080,000
Cumulative preferred - 4-3/4 % - - 617,504 - 617,504
Cumulative preferred - 7.44 % - - 2,976,000 - 2,976,000
Cumulative preferred - 9.28 % - - 3,712,000 - 3,712,000
Cumulative preferred - 9.15 % - - 4,575,000 - 4,575,000
Cumulative preferred - 7-7/8 % - - 6,300,000 - 6,300,000
Cumulative preferred - 7-3/8 % - - 5,900,000 - 5,900,000
Common shares - - 148,870,969 (2,929,665) 145,941,304
--------- --------- ----------- ------------ -----------
- - 174,031,473 (2,929,665) 171,101,808
--------- --------- ----------- ------------ -----------
Balance - December 31, 1993 (197,449) (443,114) 529,603,906 (73,092,630) 456,511,276
========= ========= =========== ============ ===========
<FN>
The accompanying notes are an integral part of the above statement.
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
EXHIBIT A-3
SHEET 2
THE CINCINNATI GAS & ELECTRIC COMPANY
AND SUBSIDIARY COMPANIES
---------------------------------------
Consolidating Retained Earnings Adjustments
Year Ended December 31, 1993
-------------------------------------------
ADJUSTMENT NO. 1 $
---------------- -----------
To eliminate The Cincinnati Gas & Electric Company's equity
in earnings of its subsidiaries for the year 1993:
<S> <C>
The Union Light, Heat and Power Company 9,338,575
Miami Power Corporation 1,969
The West Harrison Gas and Electric Company 2,517
Lawrenceburg Gas Company 707,044
Tri-State Improvement Company (18,564)
Enertech Associates International (443,114)
-----------
9,588,427
===========
</TABLE>
<TABLE>
<CAPTION>
ADJUSTMENT NO. 2
----------------
To eliminate dividends received by The Cincinnati Gas &
Electric Company from its subsidiaries:
<S> <C>
The Union Light, Heat and Power Company 2,926,665
Miami Power Corporation 3,000
-----------
2,929,665
===========
</TABLE>
<PAGE>
THE CINCINNATI GAS & ELECTRIC COMPANY
AND SUBSIDIARY COMPANIES
-------------------------------------
NOTES TO CONSOLIDATING FINANCIAL STATEMENTS
-------------------------------------------
December 31, 1993
-----------------
(1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES:
The Cincinnati Gas & Electric Company (CG&E) and its subsidiaries follow
the Uniform Systems of Accounts prescribed by the Federal Energy Regulatory
Commission (FERC), and are subject to the provisions of Statement of Financial
Accounting Standards No. 71, "Accounting for the Effects of Certain Types of
Regulation". The more significant accounting policies are summarized below:
PRINCIPLES OF CONSOLIDATION. All subsidiaries of CG&E are included in the
consolidating statements. Intercompany items and transactions have been
eliminated.
UTILITY PLANT. Property, plant and equipment is stated at the original cost
of construction, which includes payroll and related costs such as taxes,
pensions and other fringe benefits, general and administrative costs, and an
allowance for funds used during construction.
REVENUES AND FUEL. CG&E and its subsidiaries recognize revenues for gas and
electric service rendered during the month, which includes revenue for sales
unbilled at the end of each month. CG&E and The Union Light, Heat and Power
Company (Union) expense the costs of gas and electricity purchased and the
cost of fuel used in electric production as recovered through revenues and
defer the portion of these costs recoverable or refundable in future periods.
DEPRECIATION AND MAINTENANCE. The Companies determine their provision for
depreciation using the straight-line method and by the application of rates to
various classes of property, plant and equipment. The rates are based on
periodic studies of the estimated service lives and net cost of removal of the
properties. The percentages of the annual provisions for depreciation to the
weighted average of depreciable property for the year 1993 were equivalent to
2.9% of electric plant, 2.7% of gas plant and 4.0% of common plant.
Expenditures for maintenance and repairs of units of property, including
renewals of minor items, are charged to the appropriate maintenance expense
accounts. A betterment or replacement of a unit of property is accounted for
as an addition and retirement of property, plant and equipment. At the time of
<PAGE>
such a retirement, the accumulated provision for depreciation is charged with
the original cost of the property retired and also for the net cost of
removal.
INCOME TAXES. For income tax purposes, CG&E and its subsidiaries use
liberalized depreciation methods and deduct removal costs as incurred.
Consistent with regulatory treatment, CG&E and its subsidiaries currently
provide for deferred taxes arising from the use of liberalized depreciation
for operations regulated by state utility commissions, and for income tax
deferrals on all timing differences for operations regulated by FERC.
Although CG&E does not provide for deferred taxes resulting from the use of
liberalized depreciation for property additions subject to The Public
Utilities Commission of Ohio (PUCO) jurisdiction made prior to October 1978,
CG&E is allowed to collect through rates the income taxes payable in the
future as a result of using liberalized depreciation for such property.
CG&E and its subsidiaries adopted Statement of Financial Accounting
Standards No. 109, "Accounting for Income Taxes" (SFAS No. 109), in 1993.
SFAS No. 109 requires deferred tax recognition for all temporary differences
in accordance with the liability method, requires that deferred tax
liabilities and assets be adjusted for enacted changes in tax laws or rates
and prohibits net-of-tax accounting and reporting. The Company believes it is
probable that the net future increases in income taxes payable will be
recovered from customers through future rates and, accordingly, has recorded a
net regulatory asset at December 31, 1993. Adoption of SFAS No. 109 had no
impact on results of operations.
The following are the tax effects of temporary differences resulting in
deferred tax assets and liabilities:
<TABLE>
<CAPTION>
December 31, January 1,
1993 1993
------------ ----------
<S> <C> <C>
Deferred tax liabilities
Depreciation and other plant related items--net..... $ 631,601,519 $ 641,596,798
Income taxes due from customers--net................ 106,111,134 113,382,716
Deferred expenses and carrying costs................ 70,568,481 57,064,537
Other liabilities................................... 38,407,331 49,693,552
------------- -------------
846,688,465 861,737,603
------------- -------------
Deferred tax assets
Investment tax credits.............................. 49,867,377 50,537,471
Other assets........................................ 63,597,428 55,705,229
------------- -------------
113,464,805 106,242,700
------------- -------------
Net deferred tax liability................... $ 733,223,660 $ 755,494,903
============= =============
</TABLE>
<PAGE>
The following table reconciles the change in the net deferred tax
liability to the deferred income tax expense included in the accompanying
Consolidating Statement of Income for the year ended December 31, 1993:
<TABLE>
<S> <C>
Net change in deferred tax liability per above table.......... $(22,271,243)
Change in amounts due from customers - income taxes........... 52,049,023
------------
Deferred income tax expense for the year
ended December 31, 1993.................................. $ 29,777,780
============
</TABLE>
In August 1993, President Clinton signed into law the Omnibus Budget
Reconciliation Act of 1993. Among the Act's provisions is an increase in the
corporate Federal income tax rate from 34% to 35%, retroactive to January 1,
1993. Under SFAS No. 109, the increase in the tax rate has resulted in an
increase in the net deferred tax liability and in income tax related
regulatory assets. In the above table, this increase in regulatory assets has
been included in "Change in amounts due from customers - income taxes". The
increase in the Federal income tax rate has not had a material impact on the
Company's results of operations.
RETIREMENT INCOME PLANS. CG&E and its subsidiaries have trusteed
non-contributory retirement income plans covering substantially all regular
employees. The benefits are based on the employee's compensation, years of
service, and age at retirement. The Companies' funding policy is to
contribute annually to the plans an amount which is not less than the minimum
amount required by the Employee Retirement Income Security Act of 1974 and not
more than the maximum amount deductible for income tax purposes.
<PAGE>
The plans' funded status and amounts recognized on the Consolidating
Balance Sheet for the year 1993 are presented below:
<TABLE>
<CAPTION>
December 31,
1993
--------
<S> <C>
Actuarial present value of benefit obligation:
Vested benefit obligation....................................... $328,075,134
Nonvested benefit obligation.................................... 32,285,927
------------
Total accumulated benefit obligation................................ 360,361,061
Projected future compensation increases............................. 110,332,287
------------
Projected benefit obligation for service rendered................... 470,693,348
Plans' assets at fair value, primarily stocks and bonds............. 423,052,596
------------
Plans' assets in excess of (less than) projected benefit obligation. (47,640,752)
Unrecognized net gain............................................... (15,969,932)
Unrecognized prior service cost..................................... 29,149,311
Unrecognized net transition asset................................... (7,364,481)
------------
Accrued pension cost........................................ $(41,825,854)
============
</TABLE>
For the year 1993, the discount rate and assumed rate of increase in
future compensation levels used in determining the actuarial present value of
the projected benefit obligation were 7.50% and 5.00%, respectively. The
expected long-term rate of return on plans' assets was 9.50%.
Net pension cost for the year 1993 included the following components:
<TABLE>
<CAPTION>
<S> <C>
Service cost -- benefits earned..................................... $ 9,173,557
Interest cost on projected benefit obligation....................... 34,475,106
Reduction in pension costs from actual return on assets............. (31,370,545)
Net amortization and deferral....................................... (4,665,977)
------------
Net periodic pension cost..................................... $ 7,612,141
============
</TABLE>
EARLY RETIREMENT PROGRAM AND WORKFORCE REDUCTIONS. As a result of unfavorable
rate orders received in 1992, CG&E and its subsidiaries eliminated
approximately 900 regular, temporary and contract positions. The workforce
reduction was accomplished through a voluntary early retirement program and
involuntary separations. At December 31, 1992, the accrued liability
associated with the workforce reduction was $30.4 million (including
$28.4 million of additional pension benefits). In accordance with a
stipulation approved by the PUCO in August 1993, CG&E is recovering the
majority of these costs through rates over a period of three years. The
balance of unrecovered costs at December 31, 1993, totaled $27.2 million, and
is reflected in "Other Assets--Other" on the Consolidating Balance Sheet.
<PAGE>
POSTRETIREMENT BENEFITS. Effective January 1, 1993, CG&E and its subsidiaries
adopted Statement of Financial Accounting Standards No. 106, "Employers
Accounting for Postretirement Benefits Other Than Pensions" (SFAS No. 106).
SFAS No. 106 requires the accrual of the expected cost of providing
postretirement benefits other than pensions to an employee and the employee s
covered dependents during the employee's active working career. SFAS No. 106
also requires the recognition of the actuarially determined total
postretirement benefit obligation earned by existing retirees. CG&E offers
health care and life insurance benefits which are subject to SFAS No. 106.
Life insurance benefits are fully paid by the Company for qualified
employees. Eligibility to receive postretirement coverage is limited to those
employees who had participated in the plans and earned the right to
postretirement benefits prior to January 1, 1991.
In 1988, CG&E and its subsidiaries recognized the actuarially determined
accumulated benefit obligation for postretirement life insurance benefits
earned by retirees. The accumulated benefit obligation for active employees
is being amortized over 15 years, the employees' estimated remaining service
lives. The accounting for postretirement life insurance benefits is not
impacted by the adoption of SFAS No. 106.
Postretirement health care benefits are subject to deductibles,
copayment provisions and other limitations. Retirees can participate in
health care plans by paying 100% of the group coverage premium. Prior to the
adoption of SFAS No. 106, the cost of postretirement health care benefits was
expensed by the Companies as paid. Beginning in 1993, the Companies began
recognizing the accumulated postretirement benefit obligation over 20 years in
accordance with SFAS No. 106.
The PUCO, under whose jurisdiction the majority of SFAS No. 106 costs
fall, authorized CG&E to begin recovering these costs in September 1993. The
adoption of SFAS No. 106 did not have a material effect on results of
operations.
The net periodic postretirement cost for the Companies' postretirement
benefit plans for 1993 are presented below:
<TABLE>
<CAPTION>
Health Life
Care Insurance Total
------ --------- -------
(Thousands)
<S> <C> <C> <C>
Service cost................................ $ 995 $ 116 $ 1,111
Interest cost............................... 4,269 1,924 6,193
Amortization of the unrecognized
transition obligation..................... 2,584 415 2,999
------ ------ -------
Postretirement benefit cost............ $7,848 $2,455 $10,303
====== ====== =======
</TABLE>
<PAGE>
The Companies' accumulated postretirement benefit obligation and accrued
postretirement benefit cost under the plans at December 31, 1993 are as
follows:
<TABLE>
<CAPTION>
Health Life
Care Insurance Total
------ --------- -------
(Thousands)
<S> <C> <C> <C>
Retirees..................................... $ 22,753 $22,271 $45,024
Active employees eligible to retire.......... 2,363 1,494 3,857
Other active employees who are
plan participants.......................... 27,501 2,912 30,413
-------- ------- -------
Accumulated postretirement benefit
obligation................................. 52,617 26,677 79,294
Unrecognized net gain (loss)................. 3,822 (249) 3,573
Unrecognized transition obligation........... (49,104) (3,733) (52,837)
-------- ------- -------
Accrued postretirement benefit cost...... $ 7,335 $22,695 $30,030
======== ======= =======
</TABLE>
The following assumptions were used to determine the accumulated
postretirement benefit obligation:
<TABLE>
<CAPTION>
December 31, January 1,
1993 1993
------------ ----------
<S> <C> <C>
Discount rate................................... 7.50% 8.25%
Health care cost trend rate, gradually declining 10.00% to 12.00% to
to 5% in 2002 and 2003, respectively.......... 13.00% 15.00%
</TABLE>
Increasing the assumed medical care cost trend rates by one percentage point
in each year would increase the estimated accumulated postretirement benefit
obligation as of December 31, 1993 by $10.5 million and the net periodic
postretirement cost by $1.2 million. No funding has been established by the
Companies for postretirement benefits.
POSTEMPLOYMENT BENEFITS. In 1993, CG&E and its subsidiaries adopted Statement
of Financial Accounting Standards No. 112, "Employers' Accounting for
Postemployment Benefits" (SFAS No. 112). SFAS No. 112 requires the accrual of
the cost of certain postemployment benefits provided to former or inactive
employees. The adoption of SFAS No. 112 did not have a material effect on
results of operations.
ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION. The applicable regulatory
uniform systems of accounts define "allowance for funds used during
construction" (AFC) as including "the net cost for the period of construction
<PAGE>
of borrowed funds used for construction purposes and a reasonable rate on
other funds when so used." This amount of AFC constitutes an actual cost of
construction and, under established regulatory rate practices, a return on and
recovery of such costs heretofore has been permitted in determining the rates
charged for utility services.
For 1993, AFC was accrued at an average pre-tax rate of 8.33%,
compounded semi-annually. AFC represents non-cash earnings and, as a result,
does not affect current cash flow.
PHASE-IN DEFERRED DEPRECIATION AND DEFERRED RETURN. In a 1992 rate order, the
PUCO authorized CG&E an annual increase in electric revenues of approximately
$116.4 million, to be phased in over a three-year period under a plan that met
the requirements of Statement of Financial Accounting Standards No. 92,
"Regulated Enterprises - Accounting for Phase-in Plans". The phase-in plan
was designed so that the three rate increases will provide revenues sufficient
to recover all operating expenses and provide a fair rate of return on plant
investment. In the first three years of the phase-in plan ordered by the
PUCO, rates charged to customers do not fully recover depreciation expense and
return on shareholders' investment. This deficiency is being capitalized on
the Consolidating Balance Sheet and will be recovered over a 10-year period.
Beginning in the fourth year, the revenue levels authorized pursuant to the
phase-in plan are designed to be sufficient to recover that period's operating
expenses, a fair return on the unrecovered investment, and amortization of
deferred depreciation and deferred return recorded during the first three
years of the plan. Under the rate order, the amount of deferred depreciation
and deferred return, including carrying costs on the deferrals, estimated to
be recorded in 1994 totaled approximately $15 million, net of tax, in addition
to the $70 million already deferred.
In August 1992, CG&E filed an appeal with the Supreme Court of Ohio to
overturn the PUCO's 1992 rate order. In the appeal, CG&E asserted, among
other things, that the PUCO did not have authority to order a phased-in rate
increase. On November 3, 1993, the Supreme Court of Ohio issued its decision
on CG&E's appeal. The Court ruled that the PUCO did not have the authority to
order a phase-in of amounts granted in a rate proceeding and remanded the case
to the PUCO to set rates that provide the gross annual revenues determined in
accordance with Ohio statutes. The Court also said the PUCO must provide a
mechanism by which CG&E may recover costs deferred under the phase-in plan
through the date of the order on remand. For information on the write-off of
a portion of Zimmer Station, see Note 8.
POST-IN-SERVICE DEFERRED OPERATING EXPENSES AND CARRYING COSTS. In accordance
with an order of the PUCO, CG&E capitalized carrying costs for Zimmer Station
from the time it was placed in service in March 1991 until the effective date
of new rates authorized by the PUCO's 1992 rate order which reflected Zimmer
<PAGE>
Station. CG&E began recovering these carrying costs over the useful life of
Zimmer Station in accordance with a stipulation approved by the PUCO in August
1993 (see Note 8 herein). At December 31, 1993, the unamortized amount of
post-in-service carrying costs associated with Zimmer Station was
$102.7 million and is reflected in "Other Assets--Post-in-service carrying
costs and deferred operating expenses" on the Consolidating Balance Sheet.
Effective in January 1992, the PUCO, at CG&E's request, authorized the
Company to defer Zimmer Station depreciation, operation and maintenance
expenses (exclusive of fuel costs) and property taxes, which were not being
recovered in rates charged to customers. The PUCO also authorized CG&E to
accrue carrying costs on the deferred expenses. In its 1992 rate order, the
PUCO authorized CG&E to begin recovering these deferred expenses and
associated carrying costs over a 10-year period. At December 31, 1993, the
unamortized amount of post-in-service deferred operating expenses associated
with Zimmer Station was $18.7 million and is reflected in "Other Assets--
Post-in-service carrying costs and deferred operating expenses" on the
Consolidating Balance Sheet.
In May 1992, the first three units at the Woodsdale Generating Station
began commercial operation and, in July 1992, two additional units were
declared operational. In accordance with an order issued by the PUCO, CG&E
capitalized carrying costs on the first five units at Woodsdale Station and
deferred depreciation, operation and maintenance expenses (exclusive of fuel
costs) and property taxes from the time these units were placed in service
until the effective date of new rates approved by the PUCO in August 1993
which reflected the Woodsdale units. CG&E began recovering a portion of
carrying costs over the useful life of Woodsdale Station and the deferred
expenses over a 10-year period in accordance with the stipulation approved by
the PUCO in August 1993 (see Note 8 herein). At December 31, 1993,
unamortized carrying costs and deferred expenses associated with Woodsdale
Station were $19.2 million and $14.0 million, respectively, and are reflected
in "Other Assets--Post-in-service carrying costs and deferred operating
expenses" on the Consolidating Balance Sheet.
<PAGE>
(2) INCOME TAXES:
The provision for income taxes included in the accompanying
Consolidating Statement of Income consists of the following components:
<TABLE>
<S> <C>
Included in operating expenses -
Currently payable........................................... $ 69,008,699
Deferred - net
Liberalized depreciation.................................. 42,786,389
Gas costs................................................. 805,997
Post-in-service deferred operating expenses............... 2,405,831
Alternative minimum tax credit carryforward............... 6,597,626
Property taxes............................................ (11,415,788)
Systems costs capitalized................................. (45,859)
Other..................................................... 3,856,351
Investment tax credits - net................................ (5,029,690)
-------------
Total................................................ 108,969,556
-------------
Included in other income and deductions (Note 1) -
Currently payable........................................... (5,164,053)
Deferred - net
Alternative minimum tax credit carryforward............... (2,758,717)
Write-off of a portion of Zimmer Station.................. (10,972,014)
Other..................................................... (1,482,036)
Investment tax credits related to write-off of a portion
of Zimmer Station....................................... (1,112,963)
-------------
Total................................................ (21,489,783)
-------------
Total provision...................................... $ 87,479,773
=============
Analysis of provision -
Federal income taxes........................................ $ 84,884,809
State income taxes.......................................... 2,594,964
-------------
$ 87,479,773
=============
</TABLE>
<PAGE>
The provision for income taxes summarized above is different than the
amount which would be computed by applying the statutory Federal income tax
rate to pre-tax income; the principal reasons for this difference are as
follows:
<TABLE>
<S> <C>
Pre-tax income................................................ $ 76,161,201
=============
Tax at statutory Federal income tax rate applied
to pre-tax income........................................... $ 26,656,420
Changes in Federal income taxes resulting from -
Allowance for funds used during construction
which does not constitute taxable income.................. (8,265,706)
Excess of book depreciation over tax depreciation........... 8,528,752
Cost of removal for property retired........................ (1,625,221)
Amortization of investment tax credits...................... (5,833,332)
Write-off of a portion of Zimmer Station.................... 69,364,738
Other-net................................................... (3,940,842)
-------------
Federal income tax provision......................... $ 84,884,809
=============
</TABLE>
(3) COMMON STOCK:
CG&E issued authorized but previously unissued shares of Common Stock as
follows:
<TABLE>
<CAPTION>
Shares Reserved
Shares Issued for Issuance at
During 1993 December 31, 1993
-------------- ------------------
<S> <C> <C>
Dividend Reinvestment and Stock Purchase Plan... 829,706 724,641
Employee Stock Purchase Plans................... 843,352 2,476,419
--------- ---------
1,673,058 3,201,060
========= =========
</TABLE>
Pursuant to a Shareholders' Rights Plan adopted by CG&E in 1992, one
right is presently attached to and trading with each share of outstanding CG&E
common stock. The rights will be exercisable, if not otherwise approved by
the Board of Directors, only if a person or group becomes the beneficial owner
of 20% or more of CG&E's common stock, commences a tender or exchange offer
for 25% or more of the common stock, or is declared an Adverse Person by the
Board of Directors.
(4) CUMULATIVE PREFERRED STOCK - SUBJECT TO MANDATORY REDEMPTION:
The Cumulative Preferred Stock, 9.15% Series is subject to mandatory
redemption each July 1, beginning in 1996, in an amount sufficient to retire
25,000 shares, and the 7-3/8% Series is subject to mandatory redemption each
<PAGE>
August 1, beginning in 1998, in an amount sufficient to retire 40,000 shares,
each at $100 per share, plus accrued dividends. For both series, CG&E has the
noncumulative option to redeem up to a like amount of additional shares in
each year. CG&E has the option to satisfy the mandatory redemption
requirements in whole or in part by crediting shares acquired by CG&E. To the
extent CG&E does not satisfy its mandatory sinking fund obligation in any
year, such obligation must be satisfied in the succeeding year or years. If
CG&E is in arrears in the redemption pursuant to the mandatory sinking fund
requirement, CG&E shall not purchase or otherwise acquire for value, or pay
dividends on, Common Stock.
The Cumulative Preferred Stock, 7-7/8% Series is subject to mandatory
redemption on January 1, 2004, at $100 per share plus accrued dividends to the
redemption date.
(5) PREFERRED STOCK:
Under CG&E's Articles of Incorporation, the Company presently is
authorized to issue a maximum of 6,000,000 shares of preferred stock at a par
value of $100 per share.
The Cumulative Preferred Stock, 4% Series, may be redeemed by CG&E, upon
call, at $108.00 per share plus accrued dividends.
The Cumulative Preferred Stock, 4-3/4% Series, may be redeemed by CG&E,
upon call, at $101.00 per share plus accrued dividends.
The Cumulative Preferred Stock, 7.44% Series, may be redeemed by CG&E,
upon call, at $101.00 per share plus accrued dividends.
The Cumulative Preferred Stock, 9.28% Series, may be redeemed by CG&E,
upon call, at $101.00 per share plus accrued dividends.
The Cumulative Preferred Stock, 9.15% Series, may be redeemed by CG&E,
upon call, at $107.32 per share prior to July 1, 1994; and declining amounts
thereafter to $100.00 per share at July 1, 2005 and thereafter, all plus
accrued dividends; provided, however, that prior to July 1, 1995, none of the
shares may be redeemed through certain refunding operations.
The Cumulative Preferred Stock, 7-7/8% Series, is subject to mandatory
redemption by CG&E, on January 1, 2004 at $100.00 per share; not redeemable
prior to that date.
The Cumulative Preferred Stock, 7-3/8% Series, may be redeemed by CG&E,
upon call, after August 1, 2002 at $100.00 per share plus accrued dividends.
<PAGE>
On February 16, 1994, CG&E gave notice to the holders of the Cumulative
Preferred Stock, 9.28% Series of its intention to redeem the remaining shares
at $101 per share on April 1, 1994.
(6) BANK LINES OF CREDIT AND REVOLVING CREDIT AGREEMENT:
At December 31, 1993, CG&E and its subsidiaries had lines of credit
totaling $123.4 million, which were maintained by compensating balances and/or
fees. Unused lines of credit at December 31, 1993, totaled $102.4 million
(generally subject to withdrawal by the banks). Substantially all of the cash
balances of CG&E and its subsidiaries are maintained to compensate the
respective banks for banking services and to obtain lines of credit; however,
CG&E and its subsidiaries have the right of withdrawal of such funds. The
maximum amount of outstanding short-term notes payable, including commercial
paper, authorized by the PUCO to be incurred by CG&E at any time through
June 30, 1994 is $200 million and, in addition, FERC authorized Union to issue
a maximum of $35 million of short-term notes payable through December 31,
1994.
CG&E has a bank revolving credit agreement providing for borrowings of
up to $200 million through September 1, 1996. At the option of CG&E, interest
rates on borrowings under the agreement may be based upon the prevailing prime
rate or certain other interest measurements. CG&E must pay a commitment fee
of 3/16% on the total amount of the credit agreement. CG&E has not made any
borrowings under this agreement.
<PAGE>
(7) LONG-TERM DEBT:
Under the terms of the respective mortgage indentures securing first
mortgage bonds issued by CG&E and its subsidiaries, substantially all property
is subject to a direct first mortgage lien.
<TABLE>
<CAPTION>
December 31,
1993
--------------
<S> <C>
The Cincinnati Gas & Electric Company
First mortgage bonds -
5 7/8 % series due 1997.............................. $ 30,000,000
6 1/4 % series due 1997.............................. 100,000,000
7 3/8 % series due 1999.............................. 50,000,000
8 5/8 % series due 2000.............................. 60,000,000
7 3/8 % series due 2001.............................. 60,000,000
7 1/4 % series due 2002.............................. 100,000,000
8 1/8 % series due 2003.............................. 60,000,000
8.55 % series due 2006.............................. 75,000,000
9 1/8 % series due 2008.............................. 75,000,000
9 5/8 % series A and B due 2013...................... 31,700,000
10 1/8% series due 2015.............................. 84,000,000
9.70 % series due 2019.............................. 100,000,000
10 1/8% series due 2020.............................. 100,000,000
10.20 % series due 2020.............................. 150,000,000
8.95 % series due 2021.............................. 100,000,000
8 1/2 % series due 2022.............................. 100,000,000
7.20 % series due 2023.............................. 300,000,000
--------------
1,575,700,000
--------------
Other long-term debt -
6.50% through 8 1/2% due 1993 through 2022........... 75,733,163
Variable rate due 2013 and 2015...................... 100,000,000
--------------
175,733,163
--------------
1,751,433,163
--------------
The Union Light, Heat and Power Company
First mortgage bonds -
6 1/2 % series due 1999.............................. 20,000,000
8 % series due 2003.............................. 10,000,000
9 1/2 % series due 2008.............................. 10,000,000
9.70 % series due 2019.............................. 20,000,000
10 1/4% series due 2020.............................. 30,000,000
--------------
90,000,000
--------------
Other Subsidiary Companies' Debt.......................... 1,475,000
Less current maturities................................... 12,500
Unamortized premium (discount) - net...................... (13,834,554)
--------------
Total long-term debt............................ $1,829,061,109
==============
</TABLE>
<PAGE>
Improvement and sinking fund provisions contained in the indentures
applicable to the First Mortgage Bonds of CG&E issued prior to 1980, and of
Union issued prior to 1981, require deposits with the Trustee, on or before
April 30 of each year, of amounts in cash and/or principal amount of bonds
equal to 1% ($4,300,000) of the principal amount of bonds of the applicable
series originally outstanding less certain designated retirements.
In lieu of such cash deposits or delivery of bonds and as permitted
under the terms of the indentures, historically the companies have followed
the practice of pledging unfunded property additions to the extent of 166 2/3%
of the annual sinking fund requirements.
Over the next five years, long-term debt of CG&E and its subsidiaries
will mature or be subject to mandatory redemption as follows: $.3 million in
1994 and $130.0 million in 1997.
In November 1993, CG&E redeemed $280 million principal amount of First
Mortgage Bonds, consisting of the 8 3/4% Series due 1996, 9.15% Series due
2004 and 9 1/4% Series due 2016. Reacquisition expenses associated with the
extinguishment of these First Mortgage Bonds are reflected in "Other Assets -
Other" on the Consolidating Balance Sheet ($9.5 million as of December 31,
1993) and, consistent with past regulatory treatment, are being amortized over
a period of 12 years. The total balance of reacquisition expenses associated
with early retirements of long-term debt reflected in "Other Assets - Other"
on the Consolidating Balance Sheet at December 31, 1993, is $27.4 million.
In January 1994, the Company issued $94.7 million principal amount of
pollution control revenue refunding bonds at interest rates of 5.45% and
5 1/2%, the proceeds from which were used to refund six different series of
pollution control revenue bonds with interest rates ranging from 6.70% to
9 5/8%.
In February 1994, the Company sold $220 million principal amount of
first mortgage bonds with interest rates of 5.80% and 6.45%. The net proceeds
from the sales will be used to refund $210 million principal amount of first
mortgage bonds with interest rates ranging from 8.55% to 9 1/8%, on March 17,
1994.
(8) RATES:
In April 1991, CG&E filed a request with the PUCO to increase electric
rates by approximately $200 million annually. The primary reason for the
request was recovery of costs associated with Zimmer Station.
In a 1992 rate decision, the PUCO authorized CG&E to increase electric
revenues by $116.4 million to be phased in over a three-year period through
<PAGE>
annual increases of $37.8 million, $38.8 million and $39.8 million in the
first, second and third years, respectively. The PUCO also disallowed from
rate base approximately $230 million, representing costs related to Zimmer
Station for nuclear fuel, nuclear wind-down activities during the conversion
to a coal-fired facility and a portion of the AFC accrued by CG&E on Zimmer.
In August 1992, CG&E filed an appeal with the Supreme Court of Ohio to
overturn the rate order issued by the PUCO including the rate base
disallowances. In the appeal, CG&E stated that the PUCO did not have
authority to order a phased-in rate increase and erroneously determined the
amount of CG&E's required cash working capital.
On November 3, 1993, the Supreme Court of Ohio issued its decision on
CG&E's appeal. The Court ruled that the PUCO does not have the authority to
order a phase-in of amounts granted in a rate proceeding and remanded the case
to the PUCO to set rates that provide the gross annual revenues determined in
accordance with Ohio statutes. The Court also said the PUCO must provide a
mechanism by which CG&E may recover costs already deferred under the phase-in
plan through the date of the order on remand. At December 31, 1993, CG&E had
deferred $70 million of costs, net of taxes, related to the phase-in plan. On
the other issues, the Court ruled in favor of the PUCO, stating the PUCO
properly determined CG&E's cash working capital allowance and properly
excluded costs related to nuclear fuel, nuclear wind-down activities, and AFC
from rate base. As a result of the Supreme Court decision, CG&E wrote off
Zimmer Station costs of approximately $223 million, net of taxes, in November
1993.
In September 1992, CG&E filed applications with the PUCO requesting
increases in annual electric and gas revenues of approximately $86 million and
$35 million, respectively. In August 1993, the PUCO approved a stipulation
providing for annual increases of approximately $41 million (5%) in electric
revenues and $19 million (6%) in gas revenues effective immediately. As part
of the stipulation, CG&E agreed, among other things, not to increase electric
or gas base rates prior to June 1, 1995. This would not include rate filings
made under certain circumstances, such as to address financial emergencies or
to reflect any savings associated with the prospective merger with PSI
Resources, Inc. (see Note 12).
In September 1992, Union filed a request with the Kentucky Public
Service Commission (KPSC) to increase annual gas revenues by approximately
$9 million. Orders issued in mid-1993 by the KPSC authorized Union to
increase annual gas revenues by $4.2 million.
<PAGE>
(9) COMMON OWNERSHIP OF ELECTRIC UTILITY PLANT:
CG&E, Columbus Southern Power Company, and The Dayton Power and Light
Company have constructed electric generating units and related transmission
facilities on varying common ownership bases as follows:
<TABLE>
<CAPTION>
CG&E's share at December 31, 1993
-----------------------------------------------
Percent Property, Plant Accumulated Construction
Owned by and Equipment Provisions for Work In
CG&E In Service (a) Depreciation Progress (b)
--------- -------------- --------------- ------------
<S> <C> <C> <C> <C>
Production
Miami Fort Station (Units 7 and 8). 64 $ 197,865,173 $ 94,653,021 $ 825,391
W.C. Beckjord Station (Unit 6)..... 37.5 $ 37,741,024 $ 21,042,079 $ 251,101
J.M. Stuart Station................ 39 $ 251,541,656 $ 99,028,605 $ 10,376,953
Conesville Station (Unit 4)........ 40 $ 69,355,293 $ 29,218,166 $ 2,511,195
Wm. H. Zimmer Station.............. 46.5 $ 1,209,632,166 $ 97,763,022 $ 2,047,513
East Bend Station.................. 69 $ 324,165,056 $ 131,983,643 $ 1,567,519
Killen Station..................... 33 $ 186,054,596 $ 65,990,079 $ 270,942
Transmission......................... various $ 62,139,055 $ 26,345,850 $ 3,828
<FN>
(a) The Consolidating Statement of Income reflects CG&E's portion of all operating costs
associated with the commonly owned facilities.
(b) Each participant must provide funds for its share of the construction project.
</TABLE>
(10) LEASES:
CG&E and its subsidiaries have entered into operating leases covering
various facilities and properties, including office space, and computer,
communications and miscellaneous equipment. Rental payments for operating
leases are primarily charged to operating expenses. Total rental payments for
all operating leases were $21,755,675 for 1993. Future minimum lease payments
required by CG&E and its subsidiaries under such operating leases that have
initial or remaining noncancelable lease terms in excess of one year as of
December 31, 1993 were as follows:
<TABLE>
<CAPTION>
Year Ended December 31,
----------------------------------------------------
<S> <C>
1994............................. $ 16,343,794
1995............................. 14,731,302
1996............................. 9,213,489
1997............................. 6,505,904
1998............................. 3,323,215
Future Years..................... 14,470,132
-------------
Total Minimum Lease Commitments.. $ 64,587,836
=============
</TABLE>
<PAGE>
(11) FAIR VALUE OF FINANCIAL INSTRUMENTS:
The Statement of Financial Accounting Standards No. 107, "Disclosures
about Fair Value of Financial Instruments" (SFAS No. 107), requires disclosure
of the estimated fair value of certain financial instruments of the Company.
This information does not purport to be a valuation of the Company as a whole.
The following methods and assumptions were used to estimate the fair
value of each major class of financial instrument of CG&E and its subsidiaries
as required by SFAS No. 107:
CASH, NOTES PAYABLE, ACCOUNTS RECEIVABLE AND ACCOUNTS PAYABLE. The carrying
amount as reflected on the Consolidating Balance Sheet approximates the fair
value of these instruments due to the short period to maturity.
LONG-TERM DEBT. The aggregate fair values for the first mortgage bonds and
other long-term debt of CG&E and its subsidiaries are based on the present
value of future cash flows. The discount rates used approximate the
incremental borrowing costs for similar instruments. Certain notes payable
have been excluded due to immateriality.
CUMULATIVE PREFERRED STOCK. The aggregate fair value for CG&E's preferred
stock is based on the latest closing prices quoted on the New York Stock
Exchange for each series.
The estimated fair values of long-term debt and preferred stock at
December 31, 1993 are as follows:
<TABLE>
<CAPTION>
1993
---------------
<S> <C>
Long-term Debt:
First mortgage bonds................ $ 1,847,149,882
Other long-term debt................ $ 192,953,479
Preferred Stock:
Not subject to mandatory redemption. $ 105,235,000
Subject to mandatory redemption..... $ 230,362,500
</TABLE>
(12) COMMITMENTS AND CONTINGENCIES:
In December 1992, CG&E, PSI Resources, Inc. (PSI) and PSI Energy, Inc.,
PSI's principal subsidiary, an Indiana electric utility (PSI Energy), entered
into an agreement which, as subsequently amended (the Merger Agreement)
provides for the merger of PSI into a newly formed corporation named CINergy
Corp. (CINergy) and the merger of a newly formed subsidiary of CINergy into
CG&E. For 1993, PSI had operating revenues of $1.1 billion and earnings on
common shares of $96.4 million. As a result of the merger, holders of CG&E
<PAGE>
Common Stock and PSI Common Stock will become the holders of CINergy Common
Stock. CINergy will become a holding company required to be registered under
the Public Utility Holding Company Act of 1935 (PUHCA) with two operating
subsidiaries, CG&E and PSI Energy. Union will remain a subsidiary of CG&E.
Under the Merger Agreement, each share of CG&E Common Stock will be converted
into the right to receive one share of CINergy Common Stock. Each share of
PSI Common Stock will be converted into the right to receive that number of
shares of CINergy Common Stock obtained by dividing $30.69 by the average
closing price of CG&E Common Stock for the 15 consecutive trading days
preceding the fifth trading day prior to the merger; provided that, if the
actual quotient obtained thereby is less than .909, the quotient shall be
.909, and if the actual quotient obtained thereby is more than 1.023, the
quotient shall be 1.023.
The merger will be accounted for as a "pooling of interests", and it is
anticipated that the transaction will be completed in the third quarter of
1994. The merger is subject to approval by the Securities and Exchange
Commission (SEC) and FERC. Shareholders of both companies approved the merger
in November 1993.
It is the belief of CG&E and PSI that no state utility commissions have
jurisdiction over approval of the proposed merger. However, an application
will be filed with the KPSC to comply with the Staff of the KPSC's position
that the KPSC's authorization is required for the indirect change in control
of Union to CINergy.
FERC issued conditional approval of the CINergy merger in August, but
several intervenors filed for rehearing of that order. On January 12, 1994,
FERC withdrew its conditional approval of the merger and ordered the setting
of FERC-sponsored settlement procedures to be held on the merger. If the
settlement conference ordered by FERC is not successful by mid-March, FERC
said it would issue a further order setting appropriate issues for hearing.
If a hearing is held by FERC, consummation of the merger would likely be
extended beyond the third quarter of 1994.
PUHCA imposes restrictions on the operations of registered holding
company systems. Among these are requirements that securities issuances,
sales and acquisitions of utility assets or of securities of utility companies
and acquisitions of interests in any other business be approved by the SEC.
PUHCA also limits the ability of registered holding companies to engage in
non-utility ventures and regulates holding company system service companies
and the rendering of services by holding company affiliates to the system s
utilities. The SEC has interpreted the PUHCA to preclude registered holding
companies, with some exceptions, from owning both electric and gas utility
systems. The SEC may require that CG&E divest its gas properties within a
reasonable time after the merger in order to approve the merger as it has done
<PAGE>
in many cases involving the acquisition by a holding company of a combination
gas and electric company. In some cases, the SEC has allowed the retention of
the gas properties or deferred the question of divestiture for a substantial
period of time. In those cases in which divestiture has taken place, the SEC
usually has allowed companies sufficient time to accomplish the divestiture in
a manner that protects shareholder value. CG&E believes good arguments exist
to allow retention of the gas assets, and CG&E will request that it be allowed
to do so.
Construction expenditures for CG&E and its subsidiaries are estimated to
be $192 million for 1994 and $1,343 million over the next five years (1994-
1998), including AFC of $5 million and $54 million, respectively. These
estimates are under continuing review and subject to adjustment.
CG&E and its subsidiaries are subject to regulation by various Federal,
state and local authorities relative to air and water quality, solid and
hazardous waste disposal, and other environmental matters. Compliance
programs necessary to meet existing and future environmental laws and
regulations will increase the cost of utility service. CG&E presently
estimates that capital expenditures needed to comply with the Clean Air Act
Amendments of 1990 (Air Act) will be between $125 million and $150 million
through the year 2000. Capital expenditures related to environmental
compliance are included in the Companies' estimated construction programs
including expenditures of $73 million over the next five years. Compliance
with the Air Act also will increase operating costs. CG&E expects that its
cost of compliance with the Air Act will be recoverable through rates.
In April 1992, FERC issued Order 636 which restructures the
relationships between interstate gas pipelines and their customers for gas
sales and transportation services. Order 636 will result in changes in the
way CG&E and Union purchase gas supplies and contract for transportation and
storage services, and will result in increased risks in managing the ability
to meet demand.
Order 636 also allows pipelines to recover transition costs they incur
in complying with the Order from customers, including CG&E and Union. An
agreement between CG&E and residential and industrial customer groups
regarding recovery of these transition costs has been submitted to the PUCO
for approval. Order 636 transition costs are not expected to significantly
impact the Company.
The United States Environmental Protection Agency (U.S. EPA) alleges
that CG&E is a Potentially Responsible Party (PRP) under the Comprehensive
Environmental Response Compensation and Liability Act (CERCLA) liable for
cleanup of the United Scrap Lead site in Troy, Ohio. CG&E was one of
approximately 200 companies so named. CG&E believes it is not a PRP and
<PAGE>
should not be responsible for cleanup of the site. Under CERCLA, CG&E could be
jointly and severally liable for costs incurred in cleaning the site,
estimated by the U.S. EPA to be $27 million.
CG&E owns 9% of the common stock of Ohio Valley Electric Corporation
(OVEC) which has a long-term contract to supply power to the Department of
Energy (DOE). The proceeds from the sales of power by OVEC are to be
sufficient to meet all of its costs. CG&E and other sponsoring utilities are
entitled to receive, and are obligated to pay for the right to receive, any
available power from OVEC's facilities not required by DOE; CG&E's portion of
available OVEC capacity is 9%.
The coal and oil required by CG&E is primarily obtained through
purchases under long-term contracts.
(13) SUPPLEMENTARY INCOME INFORMATION:
Taxes other than income taxes, as set forth in the Consolidating
Statement of Income are as follows:
<TABLE>
<S> <C>
Property........................................ $104,978,770
Public Utility Gross Receipts................... 61,765,200
Payroll......................................... 12,202,627
Other........................................... 4,420,709
------------
$183,367,306
============
</TABLE>
(14) QUARTERLY FINANCIAL DATA (THOUSANDS):
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------
First Second Third Fourth
Quarter Quarter Quarter Quarter Total
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
1993
Total Operating Revenues......... $ 493,476 $ 367,470 $ 408,638 $ 482,157 $ 1,751,741
Operating Income................. $ 89,683 $ 63,652 $ 85,356 $ 80,809 $ 319,500
Net Income (Loss)................ $ 68,401 $ 39,928 $ 59,519 $(176,572)(a) $ (8,724)(a)
Earnings (Loss) on Common Shares. $ 62,111 $ 33,638 $ 53,228 $(182,861)(a) $ (33,884)(a)
Average Number of Common
Shares Outstanding............ 86,722 87,143 87,539 87,937
Earnings (Loss) per Common Share. $ .71 $ .38 $ .61 $ (2.08)(a) (b)
<FN>
(a) Reflects the write-off of a portion of Zimmer Station of approximately $223 million, net of
taxes.
(b) Total does not equal annual earnings per share due to change in shares outstanding.
</TABLE>
<PAGE>
(15) FINANCIAL INFORMATION BY BUSINESS SEGMENTS:
<TABLE>
<CAPTION>
- - ------------------------------------------------------------------------------------------------------------
Operating Operating Income Provision for Construction
Revenues Income Taxes Depreciation Expenditures(a)
- - ------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
YEAR ENDED DECEMBER 31, 1993
Electric................ $1,282,445,080 $286,609,257 $102,033,318 $134,121,467 $ 157,193,477
Gas..................... 469,295,807 32,890,802 6,936,238 17,939,386 44,720,045
-------------- ------------ ------------ ------------ -------------
Total............... $1,751,740,887 $319,500,059 $108,969,556 $152,060,853 $ 201,913,522
============== ============ ============ ============ =============
<FN>
(a) Excludes construction expenditures for non-utility plant of $(50,410) in 1993.
</TABLE>
<TABLE>
<CAPTION>
December 31,
1993
------------
<S> <C>
Property, Plant and Equipment, net--
Electric....................... $3,281,619,724
Gas............................ 504,020,280
--------------
3,785,640,004
Other Corporate Assets.............. 1,357,883,343
--------------
Total Assets.............. $5,143,523,347
==============
</TABLE>
