<PAGE> 1
File No. 70-8801
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
AMENDMENT NO. 1 TO
FORM U-1
APPLICATION-DECLARATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
THE COLUMBIA GAS SYSTEM, INC.
20 Montchanin Road
Wilmington, DE 19807
- --------------------------------------------------------------------------------
(Names of company or companies filing this statement
and addresses of principal executive offices)
L. J. Bainter, Treasurer
The Columbia Gas System, Inc.
20 Montchanin Road
Wilmington, DE 19807
- --------------------------------------------------------------------------------
(Name and address of agent for service)
<PAGE> 2
PAGE 2
The application/declaration previously filed is hereby amended in its entirety
to read as follows:
Item 1. Description of Proposed Transaction
(a) Furnish a reasonably detailed and precise description of the
proposed transaction, including a statement of the reasons why it is desired
to consummate the transaction and the anticipated effect thereof. If the
transaction is part of a general program, describe the program and its
relation to the proposed transaction.
The Columbia Gas System, Inc. ("Columbia"), a Delaware corporation, and a
holding company registered under the Public Utility Holding Company Act of
1935 (the "Act"), is the Applicant-Declarant.
The Commission previously authorized Columbia to establish Columbia
Energy Services Corporation ("CES") [HCAR 35-25802; 70-8145] to market natural
gas products and services. In addition, the Commission also authorized the
creation of TriStar Ventures Corporation and its subsidiaries (collectively
"TriStar") [HCAR 35-24199; 70-7276] to, among other things, invest in and
operate electric cogeneration facilities for production and sale of
electricity.
Columbia hereby requests authorization to market other forms of
energy(1) either through one or both of these companies or through one or
more subsidiaries of one or both of these companies or through one or more new
direct or indirect subsidiaries of Columbia (any of the foregoing shall be
hereinafter referred to as
- -------------------
(1) For a description of the proposed marketing activities, see pages
3-4.
<PAGE> 3
PAGE 3
"Energy Products Company") or through a joint venture entity to be formed in
conjunction with a third party. Once the Energy Products Company is
established, the services that it offers may overlap with services offered by
another Columbia subsidiary if the dictates of the market make such an
overlap appropriate: a subsidiary, which is predominately a producer of an
energy commodity, may sell the commodity into the same markets as the Energy
Products Company; a subsidiary, which is predominately a transporter, may
transport the commodity in the same markets in which the Energy Products
Company arranges transportation; and the activities of a subsidiary, which
specializes in the marketing and/or management of a particular commodity, may
overlap with the activities of Energy Products Company which may offer
consumers "one-stop shopping" for energy commodities. Although technically in
the same markets, the companies will be serving different customer needs.
Energy Products Company will initially concentrate its efforts in those
states currently served by Energy Products Company's affiliated natural gas
pipeline and local distribution companies (generally Kentucky, Maryland, New
Jersey, New York, North Carolina, Ohio, Pennsylvania, Virginia and West
Virginia). However, consistent with the authorization previously granted in
Unitil Corp. (HCAR 26527) (1996), Energy Products Company's potential customer
base may include individuals and entities located outside of this geographic
area.
<PAGE> 4
PAGE 4
The services provided by Energy Products Company will include the
marketing and/or brokering of electric energy at wholesale, and, to the extent
permitted by state law, at retail. In this latter regard, the Commission has
recognized that "[r]etail electric competition is developing rapidly due to
state initiatives" and that "[u]tilities and other For a description of the
proposed marketing activities, See pages 3-4 suppliers are preparing to
compete in retail electric markets." Consolidated Natural Gas Co., HCAR No.
35-26,512, mimeo at 4, fn. 12 (April 30, 1996) ("Consolidated"). Consistent
with the Commission's holding in Consolidated, Columbia requests that the
Commission approve the request to market and/or broker electric power at
wholesale and retain jurisdiction over the request to market and/or broker
electric power at the retail level, pending implementation by the relevant
states of plans or programs permitting such activities. Additionally, in
order to meet competition in the rapidly expanding energy market and/or to
offer "one-stop shopping" for their energy needs, Energy Products Company may
market any form of natural gas or manufactured gas, propane, natural gas
liquids, oil, refined petroleum and petroleum products, coal, wood products,
compressed air, hot or chilled water, or steam. Energy Products Company may
also market emission allowances. Authorization to market a broad array of
Energy Products is consistent with that previously granted in Unitil Corp.
(HCAR 26527) (1996) and will enable Energy Products Company to compete
effectively with other suppliers in the market place. See generally
Consolidated, mimeo at 3, fn. 9 and 10.
<PAGE> 5
PAGE 5
To minimize financial exposure of Energy Products Company and the
exposure of Columbia resulting from Columbia's guarantees, discussed below,
Energy Products Company will utilize market hedging techniques (including the
use of futures contracts, options on futures, and price swap
agreements),(2) the matching of obligations to market prices, contractual
limitation of damages and volume limitations, and relatively short-term
contracts. Energy Products Company will use market hedging measures solely to
minimize risk and will limit hedging activity to no more than the total amount
of commodities of Energy Products Company that are subject to market price
fluctuation. Columbia will ensure that the relevant procedures and policies
of Energy Products Company conform to Columbia's system policy with respect to
price risk. See Consolidated (mimeo at 6-7).
The Energy Products Company will not own or operate facilities used for
the distribution of gas at retail or facilities used for the generation,
transmission, or distribution of electric energy for sale. Therefore the
company will become neither a "gas utility company" as defined in Section
2(a)(4) of the Act nor an "electric utility company" as defined in Section
2(a)(3) of the Act. In this respect, Columbia notes that, consistent with
Section 2(a)(3)(A) of the Act, the primary business of
- -------------------
(2) These market hedging tools currently exist for the management of
natural gas price risk. Similar tools have become available on a
limited basis for managing electric price risk. See Consolidated,
fn. 21.
<PAGE> 6
PAGE 6
Columbia and its subsidiaries is the sale of natural gas and that such sales
of electric power, which are anticipated to be profitable, will not be of such
a significance to render Columbia or its subsidiaries an "electric utility
company."
As Energy Products Company develops its participation in the energy
market, Energy Products Company may wish to enter into joint ventures with
companies with expertise in other energy commodities and, in furtherance of
this, may wish to acquire an interest in a joint venture entity for the
purpose of marketing or brokering an energy commodity in the same manner as
the Energy Products Company is directly authorized. Columbia requests
authorization for Energy Products Company to invest funds for the development
of joint venture entities subject to a reservation of jurisdiction over the
acquisition by Energy Products Company of any ownership interest in the joint
venture entity. Such an entity could be in the form of a corporation, general
or limited partnership, or a limited liability company.
It is expected that Energy Products Company will contract for large
volumes of energy commodities. In light of the fact that, due to the nature
of the subsidiary's business, it will not be heavily capitalized, it is
anticipated that Columbia will have to guarantee a number of the fuel and
power transactions entered into by the subsidiary. Columbia therefore,
requests authorization to provide guarantees, through August 31, 2001, to any
Energy Products Company,
<PAGE> 7
PAGE 7
or to any joint venture of which Energy Products Company is a participant, so
long as such guarantees in the aggregate do not exceed $100 million. Approval
of this authorization would be consistent with that granted in Consolidated.
See mimeo at 6.
Columbia, to the extent required, requests authorization to provide the
Energy Products Company with up to $5 million in funding through December 31,
1997, through the purchase from time to time of shares of common stock of
Energy Products Company, with $25 par value per share, at a purchase price at
or above par value. Thereafter, the new subsidiary will issue securities, and
Columbia, or a direct subsidiary of Columbia, will acquire securities, in
transactions which will be exempt pursuant to Rule 52.
CERTIFICATE OF NOTIFICATION
Within 45 days after the end of each calendar quarter, applicant will
file certificates of notification, which will include an income statement and
balance sheet reflecting Energy Products Company's activities.
AUTHORIZATION REQUESTED
Columbia requests authorization to (1) create and fund one or more new
direct or indirect subsidiaries or to fund an existing subsidiary to market
energy products through the purchase from time to time through December 31,
1997, of up to $5 million of common stock of the subsidiary(ies), $25 par
value per share,
<PAGE> 8
PAGE 8
at a purchase price at or above par value; (2) to guarantee the performance of
such subsidiary or subsidiaries or a joint venture in which the subsidiary or
subsidiaries has an ownership interest, so long as the aggregate obligations
guaranteed do not exceed $100 million; and (3) to invest funds in the
preliminary investigation of joint venture arrangements for the purpose of
marketing energy products subject to a reservation of jurisdiction over the
terms of the final acquisition of the interest in the joint venture entity.
Item 2. Fees, Commissions and Expenses
(a) State (1) the fees, commissions and expenses paid or incurred, or to
be paid or incurred, directly or indirectly, in connection with the proposed
transaction by the applicant or declarant or any associate company thereof,
and (2) if the proposed transaction involves the sale of securities at
competitive bidding, the fees and expenses to be paid to counsel selected by
applicant or declarant to act for the successful bidder.
The Columbia Gas System Service Corporation has provided certain
services in connection with the preparation of this filing as follows:
Securities and Exchange Commission Filing Fee . . $ 2,000
Services of Columbia Gas System Service Corporation
in connection with the Application-Declaration . 7,500
---------
Total . . . . . . . . . . . . . . . . . $ 9,500
=========
(b) If any person to whom fees or commissions have been or are to be
paid in connection with the proposed transaction is an associate company or an
affiliate of any applicant or declarant, or is an affiliate of an associate
company, set forth the facts with respect thereto.
Columbia Gas System Service Corporation is a wholly owned
<PAGE> 9
PAGE 9
subsidiary of Columbia and has performed certain services at cost as set forth
in Item 2(a) (1) above.
Item 3. Applicable Statutory Provisions.
(a) State the section of the Act and the rules thereunder believed to be
applicable to the proposed transaction. If any section or rule would be
applicable in absence of a specific exemption, state the basis of exemption.
The issuance of new securities by Energy Products Company is made
pursuant to Sections 6(a) and 7 and Rule 43. Sections 9(a), 10, and 12(f) are
deemed applicable to (i) acquisitions of the capital stock of Energy Products
Company or the acquisition of an interest in a joint venture company and (ii)
the marketing of energy-related products by Energy Products Company. The
marketing of energy-related products would be permitted under the Proposed
Rule 58. HCAR No. 16311 (June 28, 1995). Section 12(b) and Rule 45 are
applicable to the guarantees of Energy Products Company by Columbia.
Columbia does not own, nor operate nor is it an equity participant in any
Exempt Wholesale Generator or any Foreign Utility Company and will not be a
company that owns, operates or has an equity participation in an Exempt
Wholesale Generator or Foreign Utility Company as a result of the approvals
requested herein. Columbia does not have any rights, nor will it have any
rights or obligations under a service, sales or construction contract with an
Exempt Wholesale Generator or Foreign Utility Company as a result of the
proposed transactions.
<PAGE> 10
PAGE 10
To the extent that the proposed transactions are considered by the
Commission to require authorization, approval or exemption under any section
of the Act or any provision of the rules and regulations other than those
specifically referred to herein, a request for such authorization, approval or
exemption is hereby made.
(b) If any applicant is not a registered holding company or a subsidiary
thereof, state the name of each public utility company of which it is an
affiliate, or of which it will become an affiliate as a result of the proposed
transaction, and the reasons why it is or will become such an affiliate.
Not applicable
Item 4. Regulatory Approval.
(a) State the nature and extent of the jurisdiction of any State
commission or any Federal commission (other than the Securities and Exchange
Commission) over the proposed transaction.
The marketing of electric power at the retail level is subject to the
jurisdiction of the various state public utility commissions. As noted in
Consolidated, a number of these commissions are opening up their respective
markets to retail competition. State commission action will be required
before Energy Products Company can market electric power at the retail level.
The marketing of electric power at the wholesale level is subject to the
jurisdiction of the Federal Energy Regulatory Commission ("FERC"). Upon
approval of this application and prior to the commencement of wholesale
marketing of electricity, Energy Products Company will seek authorization from
the FERC to
<PAGE> 11
PAGE 11
market electric power at the wholesale level.
(b) Describe the action taken or proposed to be taken before any
Commission named in answer to Paragraph (a) of this item in connection with
the proposed transaction.
Energy Products Company will apply for authorization from the FERC
to market electric power at the wholesale level.
Item 5. Procedure.
(a) State the date when Commission action is requested. If the
date is less than 40 days from the date of the original filing, set forth the
reasons for acceleration.
It is respectfully requested that the Commission issue its notice by
July 12, 1996, and its order on or by August 15, 1996.
(b) State (i) whether there should be a recommended decision by a
hearing officer, (ii) whether there should be a recommended decision by any
other responsible officer of the Commission, (iii) whether the Division of
Investment Management may assist in the preparation of the Commission's
decision, and (iv) whether there should be a 30-day waiting period between the
issuance of the Commission's order and the date on which it is to become
effective.
The Applicants hereby (i) waive a recommended decision by a hearing
officer, (ii) waive a recommended decision by any other responsible officer of
the Commission, (iii) specify that the Division of Investment Management may
assist in the preparation of the Commission's decision, and (iv) specify that
there should not be a 30-day waiting period between the issuance of the
Commission's order and the date on which it is to become effective.
<PAGE> 12
PAGE 12
Item 6. Exhibits and Financial Statements.
(a) Exhibits
A Form of Subsidiary Common Stock Certificate (Exhibit A-2 to
Joint-Application Declaration (File No. 70-7276) is hereby
incorporated by reference.)
F Opinion of Counsel (to be filed by amendment).
G Financial Data Schedules.
H Draft Notice.
(b) Financial Statements
(1) The Columbia Gas System, Inc. and Subsidiaries
(a) Balance Sheets as of April 30, 1996 (actual and pro
forma).
(b) Statements of Capitalization as of April 30, 1996 (actual
and pro forma).
(c) Statements of Income for the Twelve Months ended April 30,
1996 (actual and pro forma).
(d) Statements of Common Stock Equity as of April 30, 1996
(actual and pro forma).
(2) The Columbia Gas System, Inc.
(a) Balance Sheets as of April 30, 1996 (actual and pro
forma).
(b) Statements of Capitalization as of April 30, 1996 (actual
and pro forma).
(c) Statements of Income for the Twelve Months ended April 30,
1996 (actual and pro forma).
(d) Statements of Common Stock Equity as of April 30,
<PAGE> 13
PAGE 13
1996 (actual and pro forma).
(e) Pro forma entries.
(3) Energy Products Company
(a) Balance Sheets as of April 30, 1996 (actual and pro
forma).
(b) Statements of Capitalization as of April 30, 1996 (actual
and pro forma).
(c) Statements of Income for the Twelve Months ended April 30,
1996 (actual and pro forma).
(d) Statements of Common Stock Equity as of April 30, 1996
(actual and pro forma).
(e) Pro forma entries.
There have been no material changes, not in the ordinary course of
business, since the date of the financial statements filed herewith.
Item 7. Information as to Environmental Effects.
(a) Describe briefly the environmental effects of the proposed
transaction in terms of the standards set forth in Section 102(2)(C) of the
National Environmental Policy Act (42 U.S.C. 4232(2)(C)). If the response to
this item is a negative statement as to the applicability of Section 102(2)(C)
in connection with the proposed transaction, also briefly state the reasons
for that response.
As more fully described in Item 1, the proposed transactions relate
only to establishment of a subsidiary company and have no environmental impact
in and of themselves.
(b) State whether any other federal agency has prepared or is preparing
an environmental impact statement ("EIS") with respect to the proposed
transaction. If any other federal agency has prepared or is preparing an EIS,
state which agency or agencies and indicate the status of that EIS
preparation.
<PAGE> 14
PAGE 14
No federal agency has prepared or is preparing an EIS with respect
to the proposed transaction.
<PAGE> 15
PAGE 15
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935, each of the undersigned companies has duly caused this Declaration to be
signed on its behalf by the undersigned thereunto duly authorized.
THE COLUMBIA GAS SYSTEM, INC.
Date: July 9, 1996 By: //s// L. J. Bainter
--------------------------
L. J. Bainter
Treasurer
<PAGE> 16
PAGE 16
EXHIBIT INDEX
(a) Exhibits
A Form of Subsidiary Common Stock Certificate (Exhibit A-2 to
Joint-Application Declaration (File No. 70-7276) is hereby
incorporated by reference)
F Opinion of Counsel (to be filed by amendment).
G Financial Data Schedules
H Draft Notice
<PAGE> 17
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)(a)
(1 of 2)
CONSOLIDATED BALANCE SHEET
ACTUAL and PRO FORMA
As of April 30, 1996
($000)
<TABLE>
<CAPTION>
CGS Pro Forma CGS
Actual Entries Pro Forma
----------- ----------- -----------
<S> <C> <C> <C>
ASSETS
Property, Plant and Equipment
Gas utility and other plant, at original cost .... 6,811,775 - 6,811,775
Accumulated depreciation and depletion ........... (3,288,535) - (3,288,535)
----------- ----------- -----------
Net Gas Utility and Other Plant .................. 3,523,240 - 3,523,240
----------- ----------- -----------
Oil and gas producing properties, full cost method 516,077 - 516,077
Accumulated depletion ............................ (146,996) - (146,996)
----------- ----------- -----------
Net Oil and Gas Producing Properties ............. 369,081 - 369,081
----------- ----------- -----------
Net Property, Plant, and Equipment ................. 3,892,321 - 3,892,321
----------- ----------- -----------
Investments and Other Assets
Gas supply prepayments ........................... - - -
Accounts receivable - noncurrent ................. 79,523 - 79,523
Unconsolidated affiliates ........................ 68,552 - 68,552
Other ............................................ 15,514 - 15,514
----------- ----------- -----------
Total Investments and Other Assets ................. 163,589 - 163,589
----------- ----------- -----------
Current Assets
Cash and temporary cash investments .............. 414,162 - 414,162
Accounts receivable, net ......................... 527,429 - 527,429
Gas inventories .................................. 17,704 - 17,704
Other inventories at average cost ................ 46,103 - 46,103
Prepayments ...................................... 51,887 - 51,887
Current regulatory assets ........................ 72,122 - 72,122
Other ............................................ 275,810 - 275,810
----------- ----------- -----------
Total Current Assets ............................... 1,405,217 - 1,405,217
----------- ----------- -----------
Long-term regulatory assets ........................ 420,783 - 420,783
Deferred charges ................................... 50,419 - 50,419
----------- ----------- -----------
Total Assets ....................................... 5,932,329 - 5,932,329
=========== =========== ===========
</TABLE>
<PAGE> 18
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)(a)
CONSOLIDATED BALANCE SHEET (2 of 2)
ACTUAL and PRO FORMA
As of April 30, 1996
($000)
<TABLE>
<CAPTION>
CGS Pro Forma CGS
Actual Entries Pro Forma
----------- ----------- -----------
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholder's equity ............................. 1,515,180 - 1,515,180
Long-term debt ................................... 2,004,159 - 2,004,159
----------- ----------- -----------
Total Capitalization ............................... 3,519,339 - 3,519,339
----------- ----------- -----------
Current Liabilities
Short-term debt .................................. 195,000 - 195,000
Debt obligations ................................. 478 - 478
Debtor in possession financing ................... - - -
Accounts and drafts payable ...................... 273,231 - 273,231
Accrued taxes .................................... 242,015 - 242,015
Accrued interest ................................. 144,872 - 144,872
Estimated rate refunds ........................... 89,449 - 89,449
Estimated supplier obligations ................... 140,730 - 140,730
Deferred income taxes - current .................. - - -
Other ............................................ 350,504 - 350,504
----------- ----------- -----------
Total Current Liabilities .......................... 1,436,279 - 1,436,279
----------- ----------- -----------
Other Liabilities and Deferred Credits
Deferred income taxes, noncurrent ................ 512,904 - 512,904
Deferred investment tax credits .................. 38,111 - 38,111
Postretirement benefits other than pensions ...... 189,712 - 189,712
Long-term regulatory liabilities ................. 44,756 - 44,756
Other ............................................ 191,228 - 191,228
----------- ----------- -----------
Total Other Liabilities and Deferred Credits ....... 976,711 - 976,711
----------- ----------- -----------
Total Capitalization and Liabilities ............... 5,932,329 - 5,932,329
=========== =========== ===========
</TABLE>
<PAGE> 19
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)(b)
CONSOLIDATED STATEMENT OF CAPITALIZATION
ACTUAL and PRO FORMA
As of April 30, 1996
($000)
<TABLE>
<CAPTION>
CGS Pro Forma CGS
Actual Entries Pro Forma
----------- ----------- -----------
<S> <C> <C> <C>
Stockholder's Equity
Common Stock, The Columbia Gas System, Inc.,
$10 par value, authorized 100,000,000 shares,
outstanding 55,028,424 shares ................... 550,284 - 550,284
Additional paid in capital ....................... 735,607 - 735,607
Retained earnings ................................ 229,289 - 229,289
----------- ----------- -----------
Total Stockholder's Equity ......................... 1,515,180 - 1,515,180
----------- ----------- -----------
Long-Term Debt
CG debentures .................................... 2,000,056 - 2,000,056
Miscellaneous debt of subsidiaries ............... 1,398 - 1,398
Capitalized lease obligations .................... 2,705 - 2,705
----------- ----------- -----------
Total Long-Term Debt ............................... 2,004,159 - 2,004,159
----------- ----------- -----------
Total Capitalization ............................... 3,519,339 - 3,519,339
=========== =========== ===========
</TABLE>
<PAGE> 20
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)(c)
STATEMENT OF CONSOLIDATED INCOME
ACTUAL and PRO FORMA
Twelve Months Ended April 30, 1996
($000)
<TABLE>
<CAPTION>
CGS Pro Forma CGS
Actual Entries Pro Forma
----------- ----------- -----------
<S> <C> <C> <C>
Operating Revenues
Gas sales......................................... 2,152,771 - 2,152,771
Transportation ................................... 500,618 - 500,618
Storage .......................................... 63,365 - 63,365
Other ............................................ 147,166 - 147,166
----------- ----------- -----------
Total Operating Revenues ........................... 2,863,920 - 2,863,920
----------- ----------- -----------
Operating Expenses
Products purchased .............................. 979,926 - 979,926
Operation ........................................ 823,311 - 823,311
Maintenance ...................................... 117,533 - 117,533
Depreciation and depletion ....................... 251,770 - 251,770
Other taxes ...................................... 210,872 - 210,872
----------- ----------- -----------
Total Operating Expenses ........................... 2,383,412 - 2,383,412
----------- ----------- -----------
Operating Income ................................... 480,508 - 480,508
----------- ----------- -----------
Other Income (Deductions)
Interest income and other, net ................... (55,331) - (55,331)
Interest expense and related charges.............. (1,038,461) - (1,038,461)
Reorganization items, net ........................ (665) - (665)
----------- ----------- -----------
Total Other Income (Deductions) .................... (1,094,457) - (1,094,457)
----------- ----------- -----------
Income (Loss) before Income Taxes and Extraordinary
Item ............................................. (613,949) - (613,949)
Income taxes ....................................... (206,394) - (206,394)
----------- ----------- -----------
Income (Loss) before Extraordinary Item ............ (407,555) - (407,555)
Extraordinary Item ................................. 71,575 - 71,575
----------- ----------- -----------
Net Income (Loss) .................................. (335,980) - (335,980)
=========== =========== ===========
</TABLE>
<PAGE> 21
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)(d)
CONSOLIDATED STATEMENTS OF COMMON STOCK EQUITY
ACTUAL and PRO FORMA
Twelve Months Ended April 30, 1996
($000)
<TABLE>
<CAPTION>
CGS Pro Forma CGS
Actual Entries Pro Forma
----------- ----------- -----------
<S> <C> <C> <C>
COMMON STOCK
Balance at May 1, 1995 ............................. 505,633 - 505,633
Common stock issued -
Leveraged employee stock ownership plan (LESOP) .. - - -
Dividend reinvestment plan ....................... - - -
Long-term incentive plan ......................... 1,313 - 1,313
Public offering .................................. 43,338 - 43,338
----------- ----------- -----------
Balance at April 30, 1996 .......................... 550,284 - 550,284
----------- ----------- -----------
ADDITIONAL PAID IN CAPITAL
Balance at May 1, 1995 ............................. 601,828 - 601,828
Common stock issued -
Leveraged employee stock ownership plan (LESOP) .. (7,903) - (7,903)
Dividend reinvestment plan ....................... - - -
Long-term incentive plan ......................... 3,931 - 3,931
Public offering .................................. 137,751 - 137,751
Preferred stock issued ............................. - - -
----------- ----------- -----------
Balance at April 30, 1996 .......................... 735,607 - 735,607
----------- ----------- -----------
RETAINED EARNINGS
Balance at May 1, 1995 ............................. 572,652 - 572,652
Net income ......................................... (335,980) - (335,980)
Common stock dividends ............................. 7,383 - 7,383
Other .............................................. - - -
----------- ----------- -----------
Balance at April 30, 1996 .......................... 229,289 - 229,289
----------- ----------- -----------
UNEARNED EMPLOYEE COMPENSATION
Balance at May 1, 1995 ............................. (69,966) - (69,966)
Adjustment ......................................... 69,966 - 69,966
----------- ----------- -----------
Balance at April 30, 1996 .......................... - - -
----------- ----------- -----------
TOTAL COMMON STOCK EQUITY .......................... 1,515,180 - 1,515,180
=========== =========== ===========
</TABLE>
<PAGE> 22
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(a)
(1 of 2)
BALANCE SHEET
ACTUAL and PRO FORMA
As of April 30, 1996
($000)
<TABLE>
<CAPTION>
CG Pro Forma CG
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Investments and Other Assets
Accounts receivable - noncurrent ................. 4,183 - 4,183
Unconsolidated affiliates ........................ - - -
------------ ------------ ------------
Total Investments and Other Assets ................. 4,183 - 4,183
------------ ------------ ------------
Investments in Subsidiaries
Capital stock .................................... 2,298,685 5,000 2,303,685
Equity in undistributed retained earnings ........ (169,233) - (169,233)
Installment promissory notes receivable .......... 567,595 - 567,595
Other investments ................................ 900,000 - 900,000
Other receivables - TCO .......................... - - -
------------ ------------ ------------
Total Investments in Subsidiaries .................. 3,597,047 5,000 3,602,047
------------ ------------ ------------
Current Assets
Cash and temporary cash investments .............. 110,500 (5,000) 105,500
Accounts receivable, net
Customers ...................................... - - -
Affiliated ..................................... 154,209 - 154,209
Other .......................................... 9,815 - 9,815
Prepayments ...................................... 101 - 101
Other ............................................ 8,707 - 8,707
------------ ------------ ------------
Total Current Assets ............................... 283,332 (5,000) 278,332
------------ ------------ ------------
Deferred Charges ................................... 31,626 - 31,626
------------ ------------ ------------
Total Assets ....................................... 3,916,188 - 3,916,188
============ ============ ============
</TABLE>
<PAGE> 23
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(a)
BALANCE SHEET (2 of 2)
ACTUAL and PRO FORMA
As of April 30, 1996
($000)
<TABLE>
<CAPTION>
CG Pro Forma CG
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholder's equity ............................. 1,515,180 - 1,515,180
Long-term debt ................................... 2,000,056 - 2,000,056
------------ ------------ ------------
Total Capitalization ............................... 3,515,236 - 3,515,236
------------ ------------ ------------
Current Liabilities
Short-term debt .................................. 195,000 - 195,000
Debtor in possession financing ................... - - -
Accounts and drafts payable ...................... 12,924 - 12,924
Affiliated accounts payable ...................... 7,958 - 7,958
Accrued taxes .................................... 3,740 - 3,740
Accrued interest ................................. 145,824 - 145,824
Deferred income taxes - current .................. - - -
Other ............................................ 13,339 - 13,339
------------ ------------ ------------
Total Current Liabilities .......................... 378,785 - 378,785
------------ ------------ ------------
Liabilities Subject to Chapter 11 Proceedings ...... - - -
------------ ------------ ------------
Other Liabilities and Deferred Credits
Deferred income taxes, noncurrent ................ 7,455 - 7,455
Postretirement benefits other than pensions ...... 8,299 - 8,299
Other ............................................ 6,413 - 6,413
------------ ------------ ------------
Total Other Liabilities and Deferred Credits ....... 22,167 - 22,167
------------ ------------ ------------
Total Capitalization and Liabilities ............... 3,916,188 - 3,916,188
============ ============ ============
</TABLE>
<PAGE> 24
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(b)
STATEMENT OF CAPITALIZATION
ACTUAL and PRO FORMA
As of April 30, 1996
($000)
<TABLE>
<CAPTION>
CG Pro Forma CG
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
Stockholder's Equity
Common Stock, $10 par value, authorized
100,000,000 shares, outstanding 55,028,424
shares .......................................... 550,284 - 550,284
Additional paid in capital ....................... 735,607 - 735,607
Retained earnings ................................ 229,289 - 229,289
------------ ------------ ------------
Total Stockholder's Equity ......................... 1,515,180 - 1,515,180
------------ ------------ ------------
Total Long-Term Debt ............................... 2,000,056 - 2,000,056
------------ ------------ ------------
Total Capitalization ............................... 3,515,236 - 3,515,236
============ ============ ============
</TABLE>
<PAGE> 25
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(c)
STATEMENT OF INCOME
ACTUAL and PRO FORMA
Twelve Months Ended April 30, 1996
($000)
<TABLE>
<CAPTION>
CG Pro Forma CG
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
Operating Revenues
Gas Sales ........................................ - - -
Transportation ................................... - - -
Other ............................................ - - -
------------ ------------ ------------
Total Operating Revenues ........................... - - -
------------ ------------ ------------
Operating Expenses
Products purchased ............................... - - -
Operation ........................................ 21,415 - 21,415
Maintenance ...................................... - - -
Depreciation and depletion ....................... - - -
Other taxes ...................................... 355 - 355
------------ ------------ ------------
Total Operating Expenses ........................... 21,770 - 21,770
------------ ------------ ------------
Operating Income (Loss) ............................ (21,770) - (21,770)
------------ ------------ ------------
Other Income (Deductions)
Interest income and other, net ................... 395,413 - 395,413
Interest expense and related charges ............. (1,063,806) - (1,063,806)
Reorganization items, net ........................ (11,362) - (11,362)
------------ ------------ ------------
Total Other Income (Deductions) .................... (679,755) - (679,755)
------------ ------------ ------------
Income (Loss) before Income Taxes .................. (701,525) - (701,525)
Income taxes ....................................... (365,545) - (365,545)
------------ ------------ ------------
Net Income (Loss) .................................. (335,980) - (335,980)
============ ============ ============
</TABLE>
<PAGE> 26
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(d)
STATEMENTS OF COMMON STOCK EQUITY
ACTUAL and PRO FORMA
Twelve Months Ended April 30, 1996
($000)
<TABLE>
<CAPTION>
CG Pro Forma CG
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
COMMON STOCK
Balance at May 1, 1995 ............................. 505,633 - 505,633
Common stock issued -
Subsidiaries ..................................... - - -
Leveraged employee stock ownership plan (LESOP) .. - - -
Dividend reinvestment plan ....................... - - -
Long-term incentive plan ......................... 1,313 - 1,313
Public offering .................................. 43,338 - 43,338
------------ ------------ ------------
Balance at April 30, 1996 .......................... 550,284 - 550,284
------------ ------------ ------------
ADDITIONAL PAID IN CAPITAL
Balance at May 1, 1995 ............................. 601,828 - 601,828
Common stock issued -
Subsidiaries ..................................... - - -
Leveraged employee stock ownership plan (LESOP) .. (7,903) - (7,903)
Dividend reinvestment plan ....................... - - -
Long-term incentive plan ......................... 3,931 - 3,931
Public offering .................................. 137,751 - 137,751
Preferred stock issued ............................. - - -
------------ ------------ ------------
Balance at April 30, 1996 .......................... 735,607 - 735,607
------------ ------------ ------------
RETAINED EARNINGS
Balance at May 1, 1995 ............................. 572,652 - 572,652
Net income ......................................... (335,980) - (335,980)
Common stock dividends -
CG ............................................... 7,383 - 7,383
Subsidiaries (to CG) ............................. - - -
Other .............................................. - - -
------------ ------------ ------------
Balance at April 30, 1996 .......................... 229,289 - 229,289
------------ ------------ ------------
UNEARNED EMPLOYEE COMPENSATION
Balance at May 1, 1995 ............................. (69,966) - (69,966)
Adjustment ......................................... 69,966 - 69,966
------------ ------------ ------------
Balance at April 30, 1996 .......................... - - -
------------ ------------ ------------
TOTAL COMMON STOCK EQUITY .......................... 1,515,180 - 1,515,180
============ ============ ============
</TABLE>
<PAGE> 27
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(e)
PRO FORMA ENTRIES
($000)
<TABLE>
<CAPTION>
Debit Credit
<S> <C> <C>
1. Investment in Subsidiaries - Capital Stock 5,000
Cash and Temporary Cash Investments 5,000
To record CG's purchase of 200,000 shares of EPC common
stock at par value ($25 per share).
</TABLE>
<PAGE> 28
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(3)(a)
(1 of 2)
BALANCE SHEET
ACTUAL and PRO FORMA
As of April 30, 1996
($000)
<TABLE>
<CAPTION>
EPC Pro Forma EPC
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Property, Plant and Equipment
Gas Utility and Other Plant ...................... - - -
Accumulated Depreciation and Depletion ........... - - -
------------ ------------ ------------
Net Gas Utility and Other PP&E ..................... - - -
------------ ------------ ------------
Investments and Other Assets
Accounts receivable - noncurrent ................. - - -
Unconsolidated affiliates ........................ - - -
Investment in Subsidiaries ....................... - - -
Other ............................................ - - -
------------ ------------ ------------
Total Investments and Other Assets ................. - - -
------------ ------------ ------------
Current Assets
Cash and temporary cash investments .............. - 5,000 5,000
Accounts receivable, net
Customers ...................................... - - -
Affiliated ..................................... - - -
Other .......................................... - - -
Prepayments ...................................... - - -
Other ............................................ - - -
------------ ------------ ------------
Total Current Assets ............................... - 5,000 5,000
------------ ------------ ------------
Deferred Charges ................................... - - -
------------ ------------ ------------
Total Assets ....................................... - 5,000 5,000
============ ============ ============
</TABLE>
<PAGE> 29
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(3)(a)
(2 of 2)
BALANCE SHEET
ACTUAL and PRO FORMA
As of April 30, 1996
($000)
<TABLE>
<CAPTION>
EPC Pro Forma EPC
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholder's equity ............................. - 5,000 5,000
Long-term debt ................................... - - -
------------ ------------ ------------
Total Capitalization ............................... - 5,000 5,000
------------ ------------ ------------
Current Liabilities
Debt obligations ................................. - - -
Debtor in possession financing ................... - - -
Accounts and drafts payable ...................... - - -
Affiliated accounts payable ...................... - - -
Accrued taxes .................................... - - -
Accrued interest ................................. - - -
Deferred income taxes - current .................. - - -
Other ............................................ - - -
------------ ------------ ------------
Total Current Liabilities .......................... - - -
------------ ------------ ------------
Other Liabilities and Deferred Credits
Deferred income taxes, noncurrent ................ - - -
Postretirement benefits other than pensions ...... - - -
Other ............................................ - - -
------------ ------------ ------------
Total Other Liabilities and Deferred Credits ....... - - -
------------ ------------ ------------
Total Capitalization and Liabilities ............... - 5,000 5,000
============ ============ ============
</TABLE>
<PAGE> 30
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(3)(b)
STATEMENT OF CAPITALIZATION
ACTUAL and PRO FORMA
As of April 30, 1996
($000)
<TABLE>
<CAPTION>
EPC Pro Forma EPC
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
Stockholder's Equity
Common Stock, $25 par value, authorized
200,000 shares, outstanding 200,000
shares .......................................... - 5,000 5,000
Additional paid in capital ....................... - - -
Retained earnings ................................ - - -
------------ ------------ ------------
Total Stockholder's Equity ......................... - 5,000 5,000
------------ ------------ ------------
Long-Term Debt ..................................... - - -
------------ ------------ ------------
Total Capitalization ............................... - 5,000 5,000
============ ============ ============
</TABLE>
<PAGE> 31
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(3)(c)
STATEMENT OF INCOME
ACTUAL and PRO FORMA
Twelve Months Ended April 30, 1996
($000)
<TABLE>
<CAPTION>
EPC Pro Forma EPC
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
Operating Revenues
Gas Sales ........................................ - - -
Transportation ................................... - - -
Other ............................................ - - -
------------ ------------ ------------
Total Operating Revenues ........................... - - -
------------ ------------ ------------
Operating Expenses
Products purchased ............................... - - -
Operation ........................................ - - -
Maintenance ...................................... - - -
Depreciation and depletion ....................... - - -
Other taxes ...................................... - - -
------------ ------------ ------------
Total Operating Expenses ........................... - - -
------------ ------------ ------------
Operating Income (Loss) ............................ - - -
------------ ------------ ------------
Other Income (Deductions)
Interest income and other, net ................... - - -
Interest expense and related charges ............. - - -
------------ ------------ ------------
Total Other Income (Deductions) .................... - - -
------------ ------------ ------------
Income before Income Taxes ......................... - - -
Income taxes ....................................... - - -
------------ ------------ ------------
Net Income ......................................... - - -
============ ============ ============
</TABLE>
<PAGE> 32
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(3)(d)
STATEMENTS OF COMMON STOCK EQUITY
ACTUAL and PRO FORMA
Twelve Months Ended April 30, 1996
($000)
<TABLE>
<CAPTION>
EPC Pro Forma EPC
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
COMMON STOCK
Balance at May 1, 1995 ............................. - - -
Common stock issued -
Subsidiaries ..................................... - 5,000 5,000
Leveraged employee stock ownership plan (LESOP) .. - - -
Dividend reinvestment plan ....................... - - -
Long-term incentive plan ......................... - - -
Public offering .................................. - - -
------------ ------------ ------------
Balance at April 30, 1996 .......................... - 5,000 5,000
------------ ------------ ------------
ADDITIONAL PAID IN CAPITAL
Balance at May 1, 1995 ............................. - - -
Common stock issued -
Subsidiaries ..................................... - - -
Leveraged employee stock ownership plan (LESOP) .. - - -
Dividend reinvestment plan ....................... - - -
Long-term incentive plan ......................... - - -
Public offering .................................. - - -
Preferred stock issued ............................. - - -
------------ ------------ ------------
Balance at April 30, 1996 .......................... - - -
------------ ------------ ------------
RETAINED EARNINGS
Balance at May 1, 1995 ............................. - - -
Net income ......................................... - - -
Common stock dividends -
CG ............................................... - - -
Subsidiaries (to CG) ............................. - - -
Other .............................................. - - -
------------ ------------ ------------
Balance at April 30, 1996 .......................... - - -
------------ ------------ ------------
UNEARNED EMPLOYEE COMPENSATION
Balance at May 1, 1995 ............................. - - -
Adjustment ......................................... - - -
------------ ------------ ------------
Balance at April 30, 1996 .......................... - - -
------------ ------------ ------------
TOTAL COMMON STOCK EQUITY .......................... - 5,000 5,000
============ ============ ============
</TABLE>
<PAGE> 33
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(3)(e)
PRO FORMA ENTRIES
($000)
<TABLE>
<CAPTION>
Debit Credit
<S> <C> <C>
1. Cash and Temporary Cash Investments 5,000
Common Stock 5,000
To record the issuance of 200,000 shares of $25 par value
common stock at $25 per share.
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
[TYPE] EX-27
[DESCRIPTION] Form U-1 for The Columbia Gas System, Inc.
<ARTICLE> OPUR1
<SUBSIDIARY>
<NUMBER> 1
<NAME> CGS
<S> <C> <C>
<MULTIPLIER> 1,000 1,000
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1996
<PERIOD-START> MAY-01-1995 MAY-01-1995
<PERIOD-END> APR-30-1996 APR-30-1996
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 3,523,240 3,523,240
<OTHER-PROPERTY-AND-INVEST> 532,670 532,670
<TOTAL-CURRENT-ASSETS> 1,405,217 1,405,217
<TOTAL-DEFERRED-CHARGES> 50,419 50,419
<OTHER-ASSETS> 420,783 420,783
<TOTAL-ASSETS> 5,932,329 5,932,329
<COMMON> 550,284 550,284
<CAPITAL-SURPLUS-PAID-IN> 735,607 735,607
<RETAINED-EARNINGS> 229,289 229,289
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,515,180 1,515,180
0 0
0 0
<LONG-TERM-DEBT-NET> 2,004,159 2,004,159
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 1,398 1,398
0 0
<CAPITAL-LEASE-OBLIGATIONS> 2,705 2,705
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 2,412,990 2,412,990
<TOT-CAPITALIZATION-AND-LIAB> 5,932,329 5,932,329
<GROSS-OPERATING-REVENUE> 2,863,920 2,863,920
<INCOME-TAX-EXPENSE> (206,394) (206,394)
<OTHER-OPERATING-EXPENSES> 2,383,412 2,383,412
<TOTAL-OPERATING-EXPENSES> 2,383,412 2,383,412
<OPERATING-INCOME-LOSS> 480,508 480,508
<OTHER-INCOME-NET> (55,996) (55,996)
<INCOME-BEFORE-INTEREST-EXPEN> 424,512 424,512
<TOTAL-INTEREST-EXPENSE> 1,038,461 1,038,461
<NET-INCOME> (335,980) (335,980)
0 0
<EARNINGS-AVAILABLE-FOR-COMM> (335,980) (335,980)
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> (6.59) (6.59)
<EPS-DILUTED> (6.59) (6.59)
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
[TYPE] EX-27
[DESCRIPTION] Form U-1 for The Columbia Gas System
<ARTICLE> OPUR1
<SUBSIDIARY>
<NUMBER> 2
<NAME> CG
<S> <C> <C>
<MULTIPLIER> 1,000 1,000
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1996
<PERIOD-START> MAY-01-1995 MAY-01-1995
<PERIOD-END> APR-30-1996 APR-30-1996
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 3,601,230 3,606,230
<TOTAL-CURRENT-ASSETS> 283,332 278,332
<TOTAL-DEFERRED-CHARGES> 31,626 31,626
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 3,916,188 3,916,188
<COMMON> 550,284 550,284
<CAPITAL-SURPLUS-PAID-IN> 735,607 735,607
<RETAINED-EARNINGS> 229,289 229,289
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,515,180 1,515,180
0 0
0 0
<LONG-TERM-DEBT-NET> 2,000,056 2,000,056
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 400,952 400,952
<TOT-CAPITALIZATION-AND-LIAB> 3,916,188 3,916,188
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> (365,545) (365,545)
<OTHER-OPERATING-EXPENSES> 21,770 21,770
<TOTAL-OPERATING-EXPENSES> 21,770 21,770
<OPERATING-INCOME-LOSS> (21,770) (21,770)
<OTHER-INCOME-NET> 384,051 384,051
<INCOME-BEFORE-INTEREST-EXPEN> 362,281 362,281
<TOTAL-INTEREST-EXPENSE> 1,063,806 1,063,806
<NET-INCOME> (335,980) (335,980)
0 0
<EARNINGS-AVAILABLE-FOR-COMM> (335,980) (335,980)
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> (6.59) (6.59)
<EPS-DILUTED> (6.59) (6.59)
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
[TYPE] EX-27
[DESCRIPTION] Form U-1 for The Columbia Gas System
<ARTICLE> OPUR1
<SUBSIDIARY>
<NUMBER> 3
<NAME> EPC
<S> <C> <C>
<MULTIPLIER> 1,000 1,000
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1996 DEC-31-1996
<PERIOD-START> MAY-01-1995 MAY-01-1995
<PERIOD-END> APR-30-1996 APR-30-1996
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 0 0
<TOTAL-CURRENT-ASSETS> 0 5,000
<TOTAL-DEFERRED-CHARGES> 0 0
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 0 5,000
<COMMON> 0 5,000
<CAPITAL-SURPLUS-PAID-IN> 0 0
<RETAINED-EARNINGS> 0 0
<TOTAL-COMMON-STOCKHOLDERS-EQ> 0 5,000
0 0
0 0
<LONG-TERM-DEBT-NET> 0 0
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 0 0
0 0
<CAPITAL-LEASE-OBLIGATIONS> 0 0
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 0 0
<TOT-CAPITALIZATION-AND-LIAB> 0 5,000
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 0 0
<OTHER-OPERATING-EXPENSES> 0 0
<TOTAL-OPERATING-EXPENSES> 0 0
<OPERATING-INCOME-LOSS> 0 0
<OTHER-INCOME-NET> 0 0
<INCOME-BEFORE-INTEREST-EXPEN> 0 0
<TOTAL-INTEREST-EXPENSE> 0 0
<NET-INCOME> 0 0
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 0 0
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 0.00 0.00
<EPS-DILUTED> 0.00 0.00
</TABLE>
<PAGE> 1
PAGE 1
EXHIBIT H
SECURITIES AND EXCHANGE COMMISSION
(Release No. )
The Columbia Gas System, Inc. ("Columbia"), a holding company
registered under the Public Utility Holding Company Act of 1935 (the "Act"),
located at 20 Montchanin Road, Wilmington, Delaware 19807, has filed an
amended application-declaration under section 6(a), 7, 9(a), 10, 12(b) and
12(f) of the Act and rules 43 and 45 thereunder.
Columbia requests authorization to engage in the business of
marketing and brokering products other than natural gas -- namely electricity,
manufactured gas, propane, natural gas liquids, oil, refined petroleum and
petroleum products, coal, wood products, compressed air, hot or chilled water,
or steam, and/or emission allowances, ("Energy Marketing") either through an
existing subsidiary or by forming one or more direct or indirect subsidiaries.
Columbia seeks authorization in the aggregate to fund the subsidiary(ies)
through the purchase of up to $5 million dollars of equity by either Columbia
(in the case of a direct subsidiary) or by one of Columbia's subsidiary
companies (in the case of an indirect subsidiary). To the extent that the
services are provided by an indirect subsidiary, the funding by the direct
subsidiary will come from the sale of common stock to Columbia. In any event,
the aggregate authorized funding through December 31, 1997, will be $5
million. Thereafter, all funding will be through transactions that are exempt
under Rule 52. Additionally, Columbia requests the Commission to authorize
Columbia to invest funds into the preliminary investigation of joint ventures
for energy marketing subject to a reservation of jurisdiction over the entry
of Columbia into the joint ventures and seeks authorization to guarantee the
obligations of such subsidiary(ies) or any joint venture of which such
subsidiary(ies) is a participant, in an amount not in excess of $100 million.
To minimize the risk associated with the guarantees, Columbia states that the
marketing subsidiary will utilize commodity price hedging techniques
(including futures contracts, options on futures and price swap agreements),
the matching of obligations to market prices, contractual limitation of
damages, volume limitations, and relatively short-term contracts.
The Energy Marketing services will enhance and expand services
previously authorized and currently being performed by one or more Columbia
subsidiaries -- namely TriStar Ventures Corporation and its subsidiaries, and
Columbia Energy Services Corporation and its subsidiaries.
The application-declaration and any amendments thereto are available
for public inspection through the Commission's office of Public Reference.
<PAGE> 2
PAGE 2
Interested persons wishing to comment or request a hearing should submit their
views in writing by ________________________________, 1996, to the Secretary,
Securities and Exchange Commission, Washington, DC 20549, and serve a copy on
the applicant-declarant at the address specified above. Proof of service (by
affidavit or, in the case of an attorney-at-law, by certificate) should be
filed with the request. Any request for hearing shall identify specifically
the issues of fact or law that are disputed. A person who so requests will be
notified of any hearing, if ordered, and will receive a copy of any notice or
order issued in this matter. After said date, the application-declaration, as
filed or as it may be amended, may be permitted to become effective.
For the Commission by the Division of Investment Management,
pursuant to delegated authority.
Jonathan G. Katz
Secretary
