<PAGE> 1
File No. 70-__________
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)
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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 establish one or more direct or
indirect subsidiaries ("Consumer Services Company") to engage in the business
of providing energy-related services ("Consumer Services"), of a nature
described herein, to customers of Columbia's local distribution companies
("LDCs")(1), and to others, primarily customers of nonaffiliated utilities.
In addition, 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").
PROPOSED CONSUMER SERVICE ACTIVITIES
The Consumer Services represent a potential source of new income for
Columbia as well as a valuable source of new services for Columbia's existing
and potential customers. Additionally, these services are related to the
services being provided to Columbia customers
- -------------------
(1) These companies are Columbia Gas of Kentucky, Inc., Columbia Gas of
Maryland, Inc., Columbia Gas of Ohio, Inc., Columbia Gas of
Pennsylvania, Inc., and Commonwealth Gas Services, Inc.
<PAGE> 3
PAGE 3
which will lead to increased and more efficient utilization of existing
Columbia LDC facilities. These Consumer Services will add value to existing
natural gas service by offering to maintain natural gas equipment all the way
to the burner tip. It will thereby make available a valuable array of
currently unavailable services to Columbia's existing customers as well as to
potential customers.
The Consumer Services will be provided by one or more direct or indirect
subsidiaries of Columbia. Columbia is seeking authorization herein to create
such subsidiaries. If a new direct subsidiary is created, financing will be
provided by the sale of up to $5 million of Consumer Services Company common
stock to Columbia. In the case of an indirect subsidiary or an existing
subsidiary, financing will be provided out of funds on hand or pursuant to
existing funding authority by a Columbia subsidiary. In either case the
amount of funding will not exceed $5,000,000 during the first two years of
operations. None of the Consumer Services will require a large amount of
additional capital investment. It is anticipated that many, if not all,
services will be provided through the Consumer Services Company's own staff,
third-party vendors, contractors and/or trade allies. The Consumer Services
will be offered both within and outside of Columbia's market area.
Examples of customer and Columbia System benefits from the provision of
Consumer Services would be to: (1) maintain or increase System gas load; (2)
promote aspects of the gas business that are less weather sensitive; and (3)
utilize existing Columbia System facilities and experience to manage, support
and staff the new service entity. It is expected that the Consumer Services
will be profitable which will inure to the benefit of Columbia's investors.
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The following is a more detailed description of the Consumer Services:
(1) Safety Inspections
Residential and small commercial business customers may be offered an
array of energy assessment and energy-related safety inspections such as
carbon monoxide and radon testing, appliance efficiency ratings and
wiring safety checks.
(2) Appliance Financing
Customers may be offered loans to support the purchase and installation
of energy-related appliances.
(3) Billing Insurance
Customers may be offered an opportunity to ensure the payment of their
utility bills in the event of death, disability or involuntary
unemployment.
(4) Appliance Repair Warranty
Customers may be offered an appliance repair service that would protect
customers heating and air conditioning systems and other major appliance
repair costs.
(5) Gas Line Repair Warranty
Customers may be offered an opportunity to warrant against the cost of
repair of faulty gas service lines located both within and external to
the customer's location.
(6) Merchandising of Energy Related Goods
Customers may be offered opportunity to purchase energy-related devices.
(7) Commercial Equipment Service
Operators of commercial equipment may be offered a repair warranty
program that would respond to faulty equipment.
(8) Bill Risk Management Products
A variety of programs may be made available to gas customers interested
in hedging energy price or consumption fluctuations.
(9) Consulting and Fuel Management Services
Commercial and industrial customers may be offered advisory and/or
management services regarding energy consumption and its measurement.
(10) Electronic Measurement Services
Industrial and commercial customers may be offered a variety of enhanced
measurement and billing services that will enable them to better monitor
their energy consumption and expenditures.
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(11) Incidental Services
In addition, Columbia specifically requests authorization for Consumer
Service Company to engage in services, the need for which arises as a
result of or evolves out of the services enumerated above.
The proposed Consumer Services are reasonably incidental and/or
economically necessary or appropriate to Columbia's core utility business of
distributing gas at retail and will primarily benefit the LDCs and their
customers.(2) The proposed gas line warranty program will facilitate and
enhance the ability of the LDCs to maintain their distribution lines in good
working order and effect repairs quickly when needed, thereby minimizing
service interruptions and lost sales due to leaks and line breaks and
enhancing the utility service provided to customers and the ability of the
LDCs to distribute gas reliably and efficiently. Similarly, proposed Consumer
Services such as appliance repairs, including routine furnace services, and
appliance financing will promote the safe and efficient distribution of gas by
facilitating the maintenance, repair, and replacement of gas utilizing
equipment that is broken or not working properly. In addition, the
inspection, warranty, and repair services will foster more effective and
efficient energy consumption and enhance customer safety. These services will
give the utility customers the ability to minimize financial exposure
resulting from potential repair costs. Also, these services are consistent
with the services previously approved by the Commission in Consolidated
Natural Gas Co., 1995 SEC LEXIS 2289, HCAR Nos. 35-26363 and 70-8577 (August
28, 1995).
- -------------------
(2) The Applicant submits that each of the proposed Consumer Services
falls within one or more of the categories of energy-related
activities which would be permitted under proposed Rule 58. See
Holding Company Act Release No. 16311 (June 28, 1995).
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SERVICE ARRANGEMENTS WITH COLUMBIA LDCS
The LDCs will provide customer billing, accounting and other
energy-related services. All services between the LDCs and the Consumer
Services Company, or between the Consumer Services Company and any other
Columbia System company, required to conduct the new Consumer Services will be
billed at cost, in accordance with Section 13(b) of the Act and Commission
Rules 87, 90 and 91.
SOURCE OF FUNDS
Columbia, to the extent required, requests authorization to provide
Consumer Services Company with up to $5 million in funding through December
31, 1997, through the purchase of shares of common stock of Consumer Services
Company, $25 par value per share, at a purchase price at or above par value.
Thereafter, Consumer Services 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.
CERTIFICATES OF NOTIFICATION
Applicant will file quarterly certificates of notification within 45 days
after the end of each calendar quarterly period, which will include the
following information:
(i) A statement of all revenues derived from the Consumer Services
activities authorized both during the period covered and
cumulatively.
(ii) Copies of all state commission orders approving or post-transaction
audit documents pertaining to affiliate service arrangements or
affiliate transactions between Consumer Services Company and
Columbia System LDCs obtained during the period covered.
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(iii) A statement containing a company-by-company breakdown of all
services provided by Columbia LDCs (or any other Columbia
company) to Consumer Services Company and all payments for such
services made by Consumer Services Company during the period
covered and cumulatively.
Additionally, Columbia or its subsidiaries will file no later than
February 15th of each year a balance sheet for Consumer Services Company as of
December 31st of that year and an income statement for Consumer Services
Corporation for the year ending on December 31st.
ENERGY MARKETING
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.
Further, Columbia requests authorization to establish one or more direct or
indirect subsidiaries to market the above-described energy products.
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
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PAGE 8
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.
SUMMARY OF AUTHORIZATIONS REQUESTED
1. Columbia requests authorization to create and fund one or more
direct or indirect subsidiaries to offer Consumer Services as herein defined,
from time to time through December 31, 1997, through the purchase of up to
$5,000,000 of common stock of the newly created subsidiaries, $25 par value
per share, at a purchase price at or above par value.
2. 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 $5,000,000 of common stock of
the newly created subsidiaries, $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.
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PAGE 9
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 . . . . 15,000
------
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 17,000
========
</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 Consumer Services Company and Energy
Products Company is made pursuant to Sections 6(a) and 7 and Rule 43.
Sections 9(a), 10 and 12(f) is deemed applicable to (i) acquisitions of the
capital stock and notes of Consumer Services Company and Energy Products
Company, respectively and (ii) the provisions of Consumer Services by Consumer
Services Company and the marketing of energy-related products by Energy
Services Company. Indebtedness issued and credit extended by Columbia and by
one or more Columbia subsidiaries are made pursuant to Section 12(b) and Rule
45. Section 13(b) and Rules 87, 90 and 91 may be applicable to any services
provided by System subsidiaries to any new subsidiary company. Given the role
and relationship of natural gas to the proposed
<PAGE> 10
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Consumer Services and energy-related products, it is entirely possible that
these energy-related activities 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.
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PAGE 11
Because of the nature of certain products proposed herein, including but
not limited to billing insurance, the subsidiary(s) providing Consumer
Services will have to seek licensure as an insurer or an insurance agent in
the states in which the Consumer Services are being offered.
The Columbia LDC's in Kentucky, Ohio, Pennsylvania and Virginia may have
to seek approval from the state utility regulatory bodies in their respective
states to modify their billing statements to allow for billing of Consumer
Services. Additionally, affiliate agreements must be approved by the state
regulatory bodies in Pennsylvania and Virginia.
(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
January 19, 1996, and its order on or by February 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) 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.
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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 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.
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PAGE 13
(3) Consumer Services 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.
(4) 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.
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.
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PAGE 14
As more fully described in Item 1, the proposed transactions relate
only to establishment of a subsidiary company and corporate governance issues
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.
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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 signatures of the Declarants and of the persons signing on their
behalf are restricted to the information contained in this Declaration which
is pertinent to the application of the respective companies.
THE COLUMBIA GAS SYSTEM, INC.
Date: January 12, 1996 By: /s/ L. J. Bainter
--------------------------------
L. J. Bainter
Treasurer
<PAGE> 16
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>
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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> 18
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> 19
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> 20
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> 21
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 10,000 1,340,364
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 10,000 3,771,134
------------ ------------ ------------
Current Assets
Cash and temporary cash investments .............. 17,129 (10,000) 7,129
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 (10,000) 562,222
------------ ------------ ------------
Deferred Charges ................................... 2,458 - 2,458
------------ ------------ ------------
Total Assets ....................................... 4,367,862 - 4,367,862
============ ============ ============
</TABLE>
<PAGE> 22
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> 23
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> 24
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> 25
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> 26
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
6(b)(2)(e)
PRO FORMA ENTRIES
($000)
<TABLE>
<CAPTION>
Debit Credit
<S> <C> <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 CSC common
stock at par value ($25 per share).
2. 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> 27
CONSUMER SERVICES COMPANY UNAUDITED
6(b)(3)(a)
(1 of 2)
BALANCE SHEET
ACTUAL and PRO FORMA
As of October 31, 1995
($000)
<TABLE>
<CAPTION>
CSC Pro Forma CSC
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> 28
CONSUMER SERVICES COMPANY UNAUDITED
6(b)(3)(a)
(2 of 2)
BALANCE SHEET
ACTUAL and PRO FORMA
As of October 31, 1995
($000)
<TABLE>
<CAPTION>
CSC Pro Forma CSC
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> 29
CONSUMER SERVICES COMPANY UNAUDITED
6(b)(3)(b)
STATEMENT OF CAPITALIZATION
ACTUAL and PRO FORMA
As of October 31, 1995
($000)
<TABLE>
<CAPTION>
CSC Pro Forma CSC
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> 30
CONSUMER SERVICES COMPANY UNAUDITED
6(b)(3)(c)
STATEMENT OF INCOME
ACTUAL and PRO FORMA
Twelve Months Ended October 31, 1995
($000)
<TABLE>
<CAPTION>
CSC Pro Forma CSC
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> 31
CONSUMER SERVICES COMPANY UNAUDITED
6(b)(3)(d)
STATEMENTS OF COMMON STOCK EQUITY
ACTUAL and PRO FORMA
Twelve Months Ended October 31, 1995
($000)
<TABLE>
<CAPTION>
CSC Pro Forma CSC
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> 32
CONSUMER SERVICES COMPANY UNAUDITED
6(b)(3)(e)
PRO FORMA ENTRIES
($000)
<TABLE>
<CAPTION>
Debit Credit
<S> <C> <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> 33
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(4)(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> 34
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(4)(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> 35
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(4)(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> 36
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(4)(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> 37
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(4)(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> 38
ENERGY PRODUCTS COMPANY UNAUDITED
6(b)(4)(e)
PRO FORMA ENTRIES
($000)
<TABLE>
<CAPTION>
Debit Credit
<S> <C> <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> 39
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>
<NAME> CGS
<MULTIPLIER> 1,000
<S> <C> <C>
<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>
<NAME> CG
<MULTIPLIER> 1,000
<S> <C> <C>
<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 3,803,182
<TOTAL-CURRENT-ASSETS> 572,222 562,222
<TOTAL-DEFERRED-CHARGES> 2,458 2,458
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 4,367,862 4,367,862
<COMMON> 505,758 505,758
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<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,670,914 1,670,914
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<INCOME-TAX-EXPENSE> 48,575 48,575
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<TOTAL-OPERATING-EXPENSES> 106,040 106,040
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0 0
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<SUBSIDIARY>
<NUMBER>
<NAME> CSC
<MULTIPLIER> 1,000
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WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<SUBSIDIARY>
<NUMBER>
<NAME> EPC
<MULTIPLIER> 1,000
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<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, 12(b) and (f), and
13(b) of the Act and rules 43, 45, 87, 90, and 91 thereunder.
Columbia requests authorization to form one or more direct or
indirect subsidiaries to engage in the business of (i) providing-energy
related consumer services ("Consumer Services");(1) and (ii) providing marketing
and brokering services for products other than natural gas -- including
petroleum, petroleum products, propane and electricity ("Energy Marketing").
To the extent these services are provided by a new subsidiary, Columbia seeks
authorization to fund each of the two new ventures 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.
Columbia expects that its Consumer Services and Energy Marketing
subsidiaries will conduct their businesses both within and outside of the
states of Kentucky, Maryland, Ohio, Pennsylvania, and Virginia. Applicants
state that the Consumer Services will primarily benefit the
- -------------------
(1) The Consumer Services offered would include the following:
(1) "Safety Inspections" (energy assessments and energy-related
safety inspections); (2) "Appliance Financing" (loans supporting the
purchase of energy-related appliances); (3) "Billing Insurance"
(payment of consumer utility bills in the event of death, disability,
or involuntary unemployment); (4) Appliance Repair Warranty" (repair
service for heating and air conditioning and major appliances); (5)
"Gas Line Repair Warranty" (warranty against repair of customer's gas
lines); (6) "Merchandising of Energy-Related Goods" (direct sales of
energy-related devices); (7) Commercial Equipment Service (warranty
service for operators of commercial equipment); (8) "Bill Risk
Management Products" (price protection services for gas consumers); (9)
"Consulting and Fuel Management Services" (advisory and/or management
services regarding energy consumption and measurement for commercial
and industrial customers); (10) "Electronic Measurement Services"
(enhanced measurement and billing services for commercial and
industrial customers); (11) "Incidental Services" ( such services, the
need for which evolves out of the provision of the services set forth
above).
<PAGE> 2
PAGE 2
Columbia LDCs and their customers. 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.
Columbia states that the Columbia LDCs will provide the Consumer
Services subsidiary with billing, accounting, and other energy-related
services. Columbia states that all services required to conduct the Consumer
Services subsidiary's business that are provided by the LDCs or any other
Columbia company will be billed in accordance with section 13(b) of the Act
and rules 87, 90 and 91 thereunder.
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
