<PAGE> 1
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
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
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.
Columbia requests authorization to expand previously granted
authorizations to market natural gas and natural gas services to include the
marketing of other energy-related products including propane, natural gas
liquids, petroleum and electricity through either an existing, direct
subsidiary or through the establishment of one or more direct or indirect
subsidiaries ("Energy Products Company").
The Commission previously authorized Columbia to establish Columbia
Energy Services Corporation [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 [HCAR 35-24199;
70-7276] to, among other things, invest in and operate electric cogeneration
facilities.
Columbia requests authorization to expand the services offered by one
or both of these companies to include the marketing of other energy related
products including propane, natural gas liquids, petroleum and electricity or,
in the alternative, Columbia requests authorization to establish one or more
new direct or indirect subsidiaries to market the above-described energy
products.
<PAGE> 3
PAGE 3
The services provided will include the marketing and/or brokering of
electric energy at wholesale, and, to the extent permitted by state law, at
retail; provided that the activities will be limited to ensure that they do not
come within the definitions of 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 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".
SOURCE OF FUNDS
Columbia, to the extent required, requests authorization to provide
Energy Products Company with up to $5 million in funding through December 31,
1997, through the purchase of shares of common stock of Energy Products
Company, $25 par value per share, at a purchase price at or above par value.
Thereafter, Energy Products Company 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
Applicant will file quarterly certificates of notification within 45
days after the end of each calendar quarter which will include an income
statement and balance sheet reflecting Energy Products Company's activities.
AUTHORIZATION REQUESTED
1. Columbia requests authorization to create and fund one or more
direct or indirect subsidiaries to market energy products including propane,
natural gas liquids, petroleum and electricity, from time to time through
December 31, 1997 through the purchase of up to
<PAGE> 4
PAGE 4
$5,000,000 of common stock of the subsidiary(ies), $25 par value per share, at
a purchase price at or above par value or, alternatively, to expand
authorizations previously granted to market such energy products in existing
subsidiaries.
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:
<TABLE>
<S> <C>
Securities and Exchange Commission Filing Fee . . . . . . . . . . . . . . . $ 2,000
Services of Columbia Gas System Service Corporation
in connection with the preparation of the Application-Declaration . . . . . 7,500
-----
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,500
=======
</TABLE>
(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
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 and (ii) the marketing of energy-
<PAGE> 5
PAGE 5
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).
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.
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.
No state or federal commission (other than the Securities and Exchange
Commission) has jurisdiction over the proposed transaction.
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PAGE 6
(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.
Not applicable.
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 February 23, 1996, and its order on or by March 22, 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)
specifies 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.
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.
<PAGE> 7
PAGE 7
(b) Financial Statements
(1) The Columbia Gas System, Inc. and Subsidiaries
(a) Balance Sheets as of October 31, 1995 (actual
and pro forma).
(b) Statements of Capitalization as of October
31, 1995 (actual and pro forma).
(c) Statements of Income for the Twelve Months
ended October 31, 1995 (actual and pro
forma).
(d) Statements of Common Stock Equity as of
October 31, 1995 (actual and pro forma).
(2) The Columbia Gas System, Inc.
(a) Balance Sheets as of October 31, 1995 (actual
and pro forma).
(b) Statements of Capitalization as of October
31, 1995 (actual and pro forma).
(c) Statements of Income for the Twelve Months
ended October 31, 1995 (actual and pro forma).
(d) Statements of Common Stock Equity as of
October 31, 1995 (actual and pro forma).
(e) Pro forma entries.
(3) Energy Products Company
(a) Balance Sheets as of October 31, 1995 (actual
and pro forma).
(b) Statements of Capitalization as of October
31, 1995 (actual and pro forma).
(c) Statements of Income for the Twelve Months
ended October 31, 1995 (actual and pro
forma).
(d) Statements of Common Stock Equity as of
October 31, 1995 (actual and pro forma).
(e) Pro forma entries.
<PAGE> 8
PAGE 8
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.
No federal agency has prepared or is preparing an EIS with
respect to the proposed transaction.
<PAGE> 9
PAGE 9
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: February 15, 1996 By: /s/ L. J. BAINTER
-- -----------------------
L. J. Bainter
Treasurer
<PAGE> 10
PAGE 1
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)(a)
(1 of 2)
CONSOLIDATED BALANCE SHEET
ACTUAL and PRO FORMA
As of October 31, 1995
($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 .... 6,851,742 - 6,851,742
Accumulated depreciation and depletion ........... (3,307,816) - (3,307,816)
----------- ----------- -----------
Net Gas Utility and Other Plant .................. 3,543,926 - 3,543,926
----------- ----------- -----------
Oil and gas producing properties, full cost method 1,286,015 - 1,286,015
Accumulated depletion ............................ (669,681) - (669,681)
----------- ----------- -----------
Net Oil and Gas Producing Properties ............. 616,334 - 616,334
----------- ----------- -----------
Net Property, Plant, and Equipment ................. 4,160,260 - 4,160,260
----------- ----------- -----------
Investments and Other Assets
Gas supply prepayments ........................... - - -
Accounts receivable - noncurrent ................. 207,852 - 207,852
Unconsolidated affiliates ........................ 80,766 - 80,766
Other ............................................ 6,951 - 6,951
----------- ----------- -----------
Total Investments and Other Assets ................. 295,569 - 295,569
----------- ----------- -----------
Current Assets
Cash and temporary cash investments .............. 1,730,771 - 1,730,771
Accounts receivable, net ......................... 334,845 - 334,845
Gas inventories .................................. 272,792 - 272,792
Other inventories at average cost ................ 46,550 - 46,550
Prepayments ...................................... 87,054 - 87,054
Other ............................................ 59,850 - 59,850
----------- ----------- -----------
Total Current Assets ............................... 2,531,862 - 2,531,862
----------- ----------- -----------
Deferred Charges ................................... 284,561 - 284,561
----------- ----------- -----------
Total Assets ....................................... 7,272,252 - 7,272,252
=========== =========== ===========
</TABLE>
<PAGE> 11
PAGE 2
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)(a)
CONSOLIDATED BALANCE SHEET (2 of 2)
ACTUAL and PRO FORMA
As of October 31, 1995
($000)
<TABLE>
<CAPTION>
CGS Pro Forma CGS
Actual Entries Pro Forma
----------- ----------- -----------
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholder's equity ............................. 1,670,914 - 1,670,914
Long-term debt ................................... 4,411 - 4,411
----------- ----------- -----------
Total Capitalization ............................... 1,675,325 - 1,675,325
----------- ----------- -----------
Current Liabilities
Debt obligations ................................. 533 - 533
Debtor in possession financing ................... - - -
Accounts and drafts payable ...................... 130,882 - 130,882
Accrued taxes .................................... 110,326 - 110,326
Accrued interest ................................. (3,572) - (3,572)
Estimated rate refunds ........................... 55,270 - 55,270
Estimated supplier obligations ................... 34,116 - 34,116
Deferred income taxes - current .................. - - -
Other ............................................ 387,519 - 387,519
----------- ----------- -----------
Total Current Liabilities .......................... 715,074 - 715,074
----------- ----------- -----------
Liabilities Subject to Chapter 11 Proceedings ..... 3,982,196 - 3,982,196
----------- ----------- -----------
Other Liabilities and Deferred Credits
Deferred income taxes, noncurrent ................ 432,835 - 432,835
Deferred investment tax credits .................. 37,376 - 37,376
Postretirement benefits other than pensions ...... 218,642 - 218,642
Other ............................................ 210,804 - 210,804
----------- ----------- -----------
Total Other Liabilities and Deferred Credits ....... 899,657 - 899,657
----------- ----------- -----------
Total Capitalization and Liabilities ............... 7,272,252 - 7,272,252
=========== =========== ===========
</TABLE>
<PAGE> 12
PAGE 3
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)(b)
CONSOLIDATED STATEMENT OF CAPITALIZATION
ACTUAL and PRO FORMA
As of October 31, 1995
($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 50,575,835 shares ................... 505,758 - 505,758
Additional paid in capital ....................... 602,092 - 602,092
Retained earnings ................................ 633,030 - 633,030
Unearned employee compensation ................... (69,966) - (69,966)
----------- ----------- -----------
Total Stockholder's Equity ......................... 1,670,914 - 1,670,914
----------- ----------- -----------
Long-Term Debt
Miscellaneous debt of subsidiaries ............... 1,520 - 1,520
Capitalized lease obligations .................... 2,891 - 2,891
----------- ----------- -----------
Total Long-Term Debt ............................... 4,411 - 4,411
----------- ----------- -----------
Total Capitalization ............................... 1,675,325 - 1,675,325
=========== =========== ===========
</TABLE>
<PAGE> 13
PAGE 4
THE COLUMBIA GAS SYSTEM, INC. AND SUBSIDIARIES UNAUDITED
6(b)(1)(c)
STATEMENT OF CONSOLIDATED INCOME
ACTUAL and PRO FORMA
Twelve Months Ended October 31, 1995
($000)
<TABLE>
<CAPTION>
CGS Pro Forma CGS
Actual Entries Pro Forma
----------- ----------- -----------
<S> <C> <C> <C>
Operating Revenues
Gas sales......................................... 1,875,686 - 1,875,686
Transportation ................................... 557,368 - 557,368
Storage .......................................... 61,696 - 61,696
Other ............................................ 167,435 - 167,435
----------- ----------- -----------
Total Operating Revenues ........................... 2,662,185 - 2,662,185
----------- ----------- -----------
Operating Expenses
Products purchased .............................. 845,142 - 845,142
Operation ........................................ 881,951 - 881,951
Maintenance ...................................... 118,842 - 118,842
Depreciation and depletion ....................... 268,270 - 268,270
Other taxes ...................................... 210,650 - 210,650
----------- ----------- -----------
Total Operating Expenses ........................... 2,324,855 - 2,324,855
----------- ----------- -----------
Operating Income ................................... 337,330 - 337,330
----------- ----------- -----------
Other Income (Deductions)
Interest income and other, net ................... 20,416 - 20,416
Interest expense and related charges.............. (22,412) - (22,412)
Reorganization items, net ........................ 63,426 - 63,426
----------- ----------- -----------
Total Other Income (Deductions) .................... 61,430 - 61,430
----------- ----------- -----------
Income before Income Taxes and Cumulative Effect
of Accounting Change ............................. 398,760 - 398,760
Income taxes ....................................... 147,475 - 147,475
----------- ----------- -----------
Income before Cumulative Effect of Accounting
Change ........................................... 251,285 - 251,285
Cumulative Effect of Change in Accounting for
Postemployment Benefits .......................... 68 - 68
----------- ----------- -----------
Net Income ......................................... 251,353 - 251,353
=========== =========== ===========
</TABLE>
<PAGE> 14
PAGE 5
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 October 31, 1995
($000)
<TABLE>
<CAPTION>
CGS Pro Forma CGS
Actual Entries Pro Forma
----------- ----------- -----------
<S> <C> <C> <C>
COMMON STOCK
Balance at November 1, 1994 ........................ 505,633 - 505,633
Common stock issued -
Leveraged employee stock ownership plan (LESOP) .. - - -
Dividend reinvestment plan ....................... - - -
Long-term incentive plan ......................... 125 - 125
Public offering .................................. - - -
----------- ----------- -----------
Balance at October 31, 1995 ........................ 505,758 - 505,758
----------- ----------- -----------
ADDITIONAL PAID IN CAPITAL
Balance at November 1, 1994 ........................ 601,828 - 601,828
Common stock issued -
Leveraged employee stock ownership plan (LESOP) .. - - -
Dividend reinvestment plan ....................... - - -
Long-term incentive plan ......................... 264 - 264
Public offering .................................. - - -
Preferred stock issued ............................. - - -
----------- ----------- -----------
Balance at October 31, 1995 ........................ 602,092 - 602,092
----------- ----------- -----------
RETAINED EARNINGS
Balance at November 1, 1994 ........................ 381,677 - 381,677
Net income ......................................... 251,353 - 251,353
Common stock dividends ............................. - - -
Other .............................................. - - -
----------- ----------- -----------
Balance at October 31, 1995 ........................ 633,030 - 633,030
----------- ----------- -----------
UNEARNED EMPLOYEE COMPENSATION
Balance at November 1, 1994 ........................ (69,966) - (69,966)
Adjustment ......................................... - - -
----------- ----------- -----------
Balance at October 31, 1995 ........................ (69,966) - (69,966)
----------- ----------- -----------
TOTAL COMMON STOCK EQUITY .......................... 1,670,914 - 1,670,914
=========== =========== ===========
</TABLE>
<PAGE> 15
PAGE 6
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(a)
(1 of 2)
BALANCE SHEET
ACTUAL and PRO FORMA
As of October 31, 1995
($000)
<TABLE>
<CAPTION>
CG Pro Forma CG
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
ASSETS
Investments and Other Assets
Accounts receivable - noncurrent ................. 32,048 - 32,048
Unconsolidated affiliates ........................ - - -
------------ ------------ ------------
Total Investments and Other Assets ................. 32,048 - 32,048
------------ ------------ ------------
Investments in Subsidiaries
Capital stock .................................... 1,330,364 5,000 1,335,364
Equity in undistributed retained earnings ........ (443,982) - (443,982)
Installment promissory notes receivable .......... 701,574 - 701,574
Other investments ................................ 437,833 - 437,833
Other receivables - TCO .......................... 1,735,345 - 1,735,345
------------ ------------ ------------
Total Investments in Subsidiaries .................. 3,761,134 5,000 3,766,134
------------ ------------ ------------
Current Assets
Cash and temporary cash investments .............. 17,129 (5,000) 12,129
Accounts receivable, net
Customers ...................................... - - -
Affiliated ..................................... 511,221 - 511,221
Other .......................................... 10,452 - 10,452
Prepayments ...................................... 372 - 372
Other ............................................ 33,048 - 33,048
------------ ------------ ------------
Total Current Assets ............................... 572,222 (5,000) 567,222
------------ ------------ ------------
Deferred Charges ................................... 2,458 - 2,458
------------ ------------ ------------
Total Assets ....................................... 4,367,862 - 4,367,862
============ ============ ============
</TABLE>
<PAGE> 16
PAGE 7
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(a)
BALANCE SHEET (2 of 2)
ACTUAL and PRO FORMA
As of October 31, 1995
($000)
<TABLE>
<CAPTION>
CG Pro Forma CG
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholder's equity ............................. 1,670,914 - 1,670,914
Long-term debt ................................... - - -
------------ ------------ ------------
Total Capitalization ............................... 1,670,914 - 1,670,914
------------ ------------ ------------
Current Liabilities
Debt obligations ................................. - - -
Debtor in possession financing ................... - - -
Accounts and drafts payable ...................... 2,160 - 2,160
Affiliated accounts payable ...................... 3,596 - 3,596
Accrued taxes .................................... 2,158 - 2,158
Accrued interest ................................. 1,449 - 1,449
Deferred income taxes - current .................. - - -
Other ............................................ 10,984 - 10,984
------------ ------------ ------------
Total Current Liabilities .......................... 20,347 - 20,347
------------ ------------ ------------
Liabilities Subject to Chapter 11 Proceedings ...... 2,382,625 - 2,382,625
------------ ------------ ------------
Other Liabilities and Deferred Credits
Deferred income taxes, noncurrent ................ 288,188 - 288,188
Postretirement benefits other than pensions ...... 5,749 - 5,749
Other ............................................ 39 - 39
------------ ------------ ------------
Total Other Liabilities and Deferred Credits ....... 293,976 - 293,976
------------ ------------ ------------
Total Capitalization and Liabilities ............... 4,367,862 - 4,367,862
============ ============ ============
</TABLE>
<PAGE> 17
PAGE 8
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(b)
STATEMENT OF CAPITALIZATION
ACTUAL and PRO FORMA
As of October 31, 1995
($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 50,563,335
shares .......................................... 505,758 - 505,758
Additional paid in capital ....................... 602,092 - 602,092
Retained earnings ................................ 633,030 - 633,030
Unearned employee compensation ................... (69,966) - (69,966)
------------ ------------ ------------
Total Stockholder's Equity ......................... 1,670,914 - 1,670,914
------------ ------------ ------------
Total Long-Term Debt ............................... - - -
------------ ------------ ------------
Total Capitalization ............................... 1,670,914 - 1,670,914
============ ============ ============
</TABLE>
<PAGE> 18
PAGE 9
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(c)
STATEMENT OF INCOME
ACTUAL and PRO FORMA
Twelve Months Ended October 31, 1995
($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 ........................................ 105,859 - 105,859
Maintenance ...................................... - - -
Depreciation and depletion ....................... - - -
Other taxes ...................................... 181 - 181
------------ ------------ ------------
Total Operating Expenses ........................... 106,040 - 106,040
------------ ------------ ------------
Operating Income (Loss) ............................ (106,040) - (106,040)
------------ ------------ ------------
Other Income (Deductions)
Interest income and other, net ................... 401,771 - 401,771
Interest expense and related charges ............. (240) - (240)
Reorganization items, net ........................ 4,444 - 4,444
------------ ------------ ------------
Total Other Income (Deductions) .................... 405,975 - 405,975
------------ ------------ ------------
Income before Income Taxes and Cumulative Effect
of Accounting Change ............................. 299,935 - 299,935
Income taxes ....................................... 48,575 - 48,575
------------ ------------ ------------
Income before Cumulative Effect of Accounting
Change ........................................... 251,360 - 251,360
Cumulative Effect of Accounting for Postemployment
Benefits ......................................... (7) - (7)
------------ ------------ ------------
Net Income ......................................... 251,353 - 251,353
============ ============ ============
</TABLE>
<PAGE> 19
PAGE 10
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(d)
STATEMENTS OF COMMON STOCK EQUITY
ACTUAL and PRO FORMA
Twelve Months Ended October 31, 1995
($000)
<TABLE>
<CAPTION>
CG Pro Forma CG
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
COMMON STOCK
Balance at November 1, 1994 ........................ 505,633 - 505,633
Common stock issued -
Subsidiaries ..................................... - - -
Leveraged employee stock ownership plan (LESOP) .. - - -
Dividend reinvestment plan ....................... - - -
Long-term incentive plan ......................... 125 - 125
Public offering .................................. - - -
------------ ------------ ------------
Balance at October 31, 1995 ........................ 505,758 - 505,758
------------ ------------ ------------
ADDITIONAL PAID IN CAPITAL
Balance at November 1, 1994 ........................ 601,828 - 601,828
Common stock issued -
Subsidiaries ..................................... - - -
Leveraged employee stock ownership plan (LESOP) .. - - -
Dividend reinvestment plan ....................... - - -
Long-term incentive plan ......................... 264 - 264
Public offering .................................. - - -
Preferred stock issued ............................. - - -
------------ ------------ ------------
Balance at October 31, 1995 ........................ 602,092 - 602,092
------------ ------------ ------------
RETAINED EARNINGS
Balance at November 1, 1994 ........................ 381,677 - 381,677
Net income ......................................... 251,353 - 251,353
Common stock dividends -
CG ............................................... - - -
Subsidiaries (to CG) ............................. - - -
Other .............................................. - - -
------------ ------------ ------------
Balance at October 31, 1995 ........................ 633,030 - 633,030
------------ ------------ ------------
UNEARNED EMPLOYEE COMPENSATION
Balance at November 1, 1994 ........................ (69,966) - (69,966)
Adjustment ......................................... - - -
------------ ------------ ------------
Balance at October 31, 1995 ........................ (69,966) - (69,966)
------------ ------------ ------------
TOTAL COMMON STOCK EQUITY .......................... 1,670,914 - 1,670,914
============ ============ ============
</TABLE>
<PAGE> 20
PAGE 11
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> 21
PAGE 12
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(3)(a)
(1 of 2)
BALANCE SHEET
ACTUAL and PRO FORMA
As of October 31, 1995
($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> 22
PAGE 13
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(3)(a)
(2 of 2)
BALANCE SHEET
ACTUAL and PRO FORMA
As of October 31, 1995
($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> 23
PAGE 14
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(3)(b)
STATEMENT OF CAPITALIZATION
ACTUAL and PRO FORMA
As of October 31, 1995
($000)
<TABLE>
<CAPTION>
EPC Pro Forma EPC
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
Stockholder's Equity
Common Stock, $25 par value, authorized
500,000 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> 24
PAGE 15
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(3)(c)
STATEMENT OF INCOME
ACTUAL and PRO FORMA
Twelve Months Ended October 31, 1995
($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> 25
PAGE 16
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(3)(d)
STATEMENTS OF COMMON STOCK EQUITY
ACTUAL and PRO FORMA
Twelve Months Ended October 31, 1995
($000)
<TABLE>
<CAPTION>
EPC Pro Forma EPC
Actual Entries Pro Forma
------------ ------------ ------------
<S> <C> <C> <C>
COMMON STOCK
Balance at November 1, 1994 ........................ - - -
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 October 31, 1995 ........................ - 5,000 5,000
------------ ------------ ------------
ADDITIONAL PAID IN CAPITAL
Balance at November 1, 1994 ........................ - - -
Common stock issued -
Subsidiaries ..................................... - - -
Leveraged employee stock ownership plan (LESOP) .. - - -
Dividend reinvestment plan ....................... - - -
Long-term incentive plan ......................... - - -
Public offering .................................. - - -
Preferred stock issued ............................. - - -
------------ ------------ ------------
Balance at October 31, 1995 ........................ - - -
------------ ------------ ------------
RETAINED EARNINGS
Balance at November 1, 1994 ........................ - - -
Net income ......................................... - - -
Common stock dividends -
CG ............................................... - - -
Subsidiaries (to CG) ............................. - - -
Other .............................................. - - -
------------ ------------ ------------
Balance at October 31, 1995 ........................ - - -
------------ ------------ ------------
UNEARNED EMPLOYEE COMPENSATION
Balance at November 1, 1994 ........................ - - -
Adjustment ......................................... - - -
------------ ------------ ------------
Balance at October 31, 1995 ........................ - - -
------------ ------------ ------------
TOTAL COMMON STOCK EQUITY .......................... - 5,000 5,000
============ ============ ============
</TABLE>
<PAGE> 26
PAGE 17
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>
<PAGE> 27
PAGE 1
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
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<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-31-1995 DEC-31-1995
<PERIOD-START> NOV-01-1994 NOV-01-1994
<PERIOD-END> OCT-31-1995 OCT-31-1995
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 3,543,926 3,543,926
<OTHER-PROPERTY-AND-INVEST> 911,903 911,903
<TOTAL-CURRENT-ASSETS> 2,531,862 2,531,862
<TOTAL-DEFERRED-CHARGES> 284,561 284,561
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 7,272,252 7,272,252
<COMMON> 505,758 505,758
<CAPITAL-SURPLUS-PAID-IN> 602,092 602,092
<RETAINED-EARNINGS> 633,030 633,030
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,670,914 1,670,914
0 0
0 0
<LONG-TERM-DEBT-NET> 4,411 4,411
<SHORT-TERM-NOTES> 0 0
<LONG-TERM-NOTES-PAYABLE> 0 0
<COMMERCIAL-PAPER-OBLIGATIONS> 0 0
<LONG-TERM-DEBT-CURRENT-PORT> 1,520 1,520
0 0
<CAPITAL-LEASE-OBLIGATIONS> 2,891 2,891
<LEASES-CURRENT> 0 0
<OTHER-ITEMS-CAPITAL-AND-LIAB> 5,596,927 5,596,927
<TOT-CAPITALIZATION-AND-LIAB> 7,272,252 7,272,252
<GROSS-OPERATING-REVENUE> 2,662,185 2,662,185
<INCOME-TAX-EXPENSE> 147,475 147,475
<OTHER-OPERATING-EXPENSES> 2,324,855 2,324,855
<TOTAL-OPERATING-EXPENSES> 2,324,855 2,324,855
<OPERATING-INCOME-LOSS> 337,330 337,330
<OTHER-INCOME-NET> 83,842 83,842
<INCOME-BEFORE-INTEREST-EXPEN> 421,172 421,172
<TOTAL-INTEREST-EXPENSE> 22,412 22,412
<NET-INCOME> 251,353 251,353
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 251,353 251,353
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 4.97 4.97
<EPS-DILUTED> 4.97 4.97
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<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-31-1995 DEC-31-1995
<PERIOD-START> NOV-01-1994 NOV-01-1994
<PERIOD-END> OCT-31-1995 OCT-31-1995
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 3,793,182 3,798,182
<TOTAL-CURRENT-ASSETS> 572,222 567,222
<TOTAL-DEFERRED-CHARGES> 2,458 2,458
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 4,367,862 4,367,862
<COMMON> 505,758 505,758
<CAPITAL-SURPLUS-PAID-IN> 602,092 602,092
<RETAINED-EARNINGS> 633,030 633,030
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,670,914 1,670,914
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> 2,696,948 2,696,948
<TOT-CAPITALIZATION-AND-LIAB> 4,367,862 4,367,862
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> 48,575 48,575
<OTHER-OPERATING-EXPENSES> 106,040 106,040
<TOTAL-OPERATING-EXPENSES> 106,040 106,040
<OPERATING-INCOME-LOSS> (106,040) (106,040)
<OTHER-INCOME-NET> 406,215 406,215
<INCOME-BEFORE-INTEREST-EXPEN> 300,175 300,175
<TOTAL-INTEREST-EXPENSE> 240 240
<NET-INCOME> 251,353 251,353
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 251,353 251,353
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 4.97 4.97
<EPS-DILUTED> 4.97 4.97
</TABLE>
WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<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-31-1995 DEC-31-1995
<PERIOD-START> NOV-01-1994 NOV-01-1994
<PERIOD-END> OCT-31-1995 OCT-31-1995
<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
application-declaration under section 6(a), 7, 9(a), 10 and 12(f) of the Act
and rule 43 thereunder.
Columbia requests authorization to engage in the business of
marketing and brokering products other than natural gas -- including petroleum,
petroleum products, propane and electricity ("Energy Marketing") either through
an existing subsidiary or by forming one or more direct or indirect
subsidiaries. To the extent these services are provided by a new
subsidiary(ies), Columbia seeks authorization in the aggregate to fund the new
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 either from previously authorized funding or from
cash on hand.
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.
The application-declaration and any amendments thereto are
available for public inspection through the Commission's office of Public
Reference. 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
