<PAGE> 1
File No. 70-_____
U.S. SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM U-1
JOINT APPLICATION-DECLARATION
UNDER
THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
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THE COLUMBIA GAS SYSTEM, INC.
COLUMBIA GAS SYSTEM SERVICE CORPORATION
COLUMBIA LNG CORPORATION
COLUMBIA ATLANTIC TRADING CORPORATION
12355 Sunrise Valley Drive
Suite 300
Reston, VA 20191-3458
TRISTAR VENTURES CORPORATION
TRISTAR CAPITAL CORPORATION
TRISTAR PEDRICK LIMITED CORPORATION
TRISTAR PEDRICK GENERAL CORPORATION
TRISTAR BINGHAMTON LIMITED CORPORATION
TRISTAR BINGHAMTON GENERAL CORPORATION
TRISTAR VINELAND LIMITED CORPORATION
TRISTAR VINELAND GENERAL CORPORATION
TRISTAR RUMFORD LIMITED CORPORATION
TRISTAR GEORGETOWN GENERAL CORPORATION
TRISTAR GEORGETOWN LIMITED CORPORATION
TRISTAR FUEL CELLS CORPORATION
TVC NINE CORPORATION
TVC TEN CORPORATION
TRISTAR SYSTEM, INC.
205 Van Buren
Herndon, VA 22070
<PAGE> 2
COLUMBIA NATURAL RESOURCES, INC
ALAMCO, INC.
ALAMCO - DELAWARE, INC.
HAWG HAULING & DISPOSAL, INC.
900 Pennsylvania Avenue
Charleston, WV 25302
COLUMBIA ENERGY SERVICES CORPORATION
COLUMBIA ASSURANCE AGENCY, INC.
COLUMBIA ENERGY MARKETING CORPORATION
COLUMBIA POWER MARKETING CORPORATION
COLUMBIA SERVICE PARTNERS, INC.
12355 Sunrise Valley Drive
Suite 300
Reston, VA 20191-3458
COLUMBIA GAS TRANSMISSION CORPORATION
12801 FairLakes Parkway
Fairfax, VA 22030-0146
COLUMBIA NETWORK SERVICES CORPORATION
CNS MICROWAVE, INC.
1600 Dublin Road
Columbus, OH 43215-1082
COLUMBIA PROPANE CORPORATION
9200 Arboretum Parkway, Ste 140
Richmond, VA 23236
COLUMBIA GULF TRANSMISSION COMPANY
2603 Augusta, Suite 125
Houston, TX 77057
COLUMBIA GAS OF KENTUCKY, INC.
COLUMBIA GAS OF OHIO, INC.
COLUMBIA GAS OF MARYLAND, INC.
COLUMBIA GAS OF PENNSYLVANIA, INC.
COMMONWEALTH GAS SERVICES, INC.
200 Civic Center Drive
Columbus, OH 43215
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(Names of company or companies filing this statement
and addresses of principal executive offices)
<PAGE> 3
THE COLUMBIA GAS SYSTEM, INC.
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(Name of top registered holding company parent of
each applicant or declarant)
<PAGE> 4
J. W. Trost, Vice President
COLUMBIA GAS SYSTEM SERVICE CORPORATION
12355 Sunrise Valley Drive
Suite 300
Reston, VA 20191-3458
-----------------------------------------
(Name and address of agent for service)
Names and Addresses of Subsidiary Company Agents for Service:
M. A. CHANDLER, Treasurer
Columbia Natural Resources, Inc.
Alamco, Inc.
Alamco-Delaware, Inc.
Hawg Hauling & Disposal, Inc.
900 Pennsylvania Avenue
Charleston, WV 25302
D. P. DETAR, Treasurer
TriStar Ventures Corporation
TriStar Pedrick Limited Corporation
TriStar Pedrick General Corporation
TriStar Binghamton Limited Corporation
TriStar Binghamton General Corporation
TriStar Vineland Limited Corporation
TriStar Vineland General Corporation
TriStar Rumford Limited Corporation
TriStar Georgetown Limited Corporation
TriStar Georgetown General Corporation
TriStar Fuel Cells Corporation
TVC Nine Corporation
TVC Ten Corporation
TriStar System, Inc.
205 Van Buren
Herndon, VA 22070
S. T. MACQUEEN, Treasurer
Columbia LNG Corporation
12355 Sunrise Valley Drive
Suite 300
Reston, VA 20191-3458
J. W. TROST, Vice President
Columbia Gas System Service Corporation
12355 Sunrise Valley Drive, Suite 300
Reston, VA 20191-3420
J. W. GROSSMAN, Treasurer
TriStar Capital Corporation
Columbia Atlantic Trading Corporation
12355 Sunrise Valley Drive
Suite 300
Reston, VA 20191-3458
S. M. NORDIN, Treasurer
Columbia Propane Corporation
9200 Arboretum Parkway, Ste 140
Richmond, VA 23236
A. J. SONDERMAN, Corporate Secretary
Columbia Gas of Ohio, Inc.
Columbia Gas of Kentucky, Inc.
Commonwealth Gas Services, Inc.
Columbia Gas of Pennsylvania, Inc.
Columbia Gas of Maryland, Inc.
200 Civic Center Drive
Columbus, OH 43215
G. A. BARNARD, Assistant Controller
Columbia Gas Transmission Corporation
Columbia Gulf Transmission Company
1700 MacCorkle Avenue, S. E.
Charleston, WV 25314
<PAGE> 5
D. FURLANO, Treasurer
Columbia Network Services Corporation
CNS Microwave, Inc.
1600 Dublin Road
Columbus, OH 43215-1082
R. S. GUSTAFSON, Controller
Columbia Assurance Agency, Inc.
Columbia Energy Services Corporation
Columbia Energy Marketing Corporation
Columbia Power Marketing Corporation
Columbia Service Partners, Inc.
121 Hill Pointe Drive
Suite 100
Canonsburg, PA 15317
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(Names and Addresses of Other Agents for Service)
<PAGE> 6
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 with the U. S. Securities and Exchange Commission
("Commission") under the Public Utility Holding Company Act of 1935, as amended
("the Act"), and its subsidiary companies (collectively, "the System") are
requesting Commission approval to update and expand their existing short-term
financing authority. Specifically, Columbia asks the Commission to increase the
System's short-term financing authority to $2 billion through December 31, 2003.
In addition, Columbia asks the Commission to release the reservation of
jurisdiction over Money Pool participation by new Columbia subsidiaries.
By order dated December 23, 1996 in File No. 70-8925 (Holding Co. Act
Release No. 26634) (the "Omnibus Financing Order"), Columbia was authorized to
engage in a wide range of financing transactions through December 31, 2001,
subject to certain conditions and parameters. Among the conditions was the
following: "The aggregate amount of external, long-term debt and equity
financing issued by Columbia, through December 31, 2001, will not exceed $5
billion of long-term debt and equity financing or more than $1 billion of
short-term borrowing outstanding at any one time." Under the terms of the
Omnibus Financing Order, Columbia and its nonutility subsidiaries were
authorized to enter guarantee arrangements, obtain letters of credit and
otherwise provide credit support with respect to obligations of their respective
subsidiaries as may be needed and appropriate to enable them to carry on in the
ordinary course of their respective businesses through December 31, 2001,
subject to an aggregate limit on such credit support of $500 million at any one
time. The guarantees were in addition to any other financing authorization
requested in that file. Columbia was also authorized to utilize the proceeds of
any of the above financing for investments in exempt wholesale generators
("EWGs") and foreign utility companies ("FUCOs"), subject to the requirements of
Sections 32 and 33 of the Act and Rules 53 and 54 thereunder, which restrict
Columbia's aggregate investment in EWGs and FUCOs to an amount equal to 50% of
its consolidated retained earnings as defined in Rule 53(a)(1)(ii).
Columbia wishes to expand and clarify the foregoing authorities and
specifically requests authorization to increase the limit on external short-term
debt at any one time outstanding through December 31, 2003 to $2 billion. In
addition Columbia asks the Commission to release the reservation of jurisdiction
with respect to Money Pool participation by new direct or indirect subsidiaries
of Columbia. As initially set forth in the Omnibus Financing Order, the
authorization sought herein is subject to the following general conditions: (1)
Columbia will maintain its long-term debt rating at an investment grade level as
established
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by a nationally recognized statistical rating organization, as that term is used
in rule c-1(c)(2)(vi)(F) of the Securities Exchange Act of 1934; (2) its common
equity, as reflected in its most recent Form 10-K or Form 10-Q and as adjusted
to reflect subsequent events that affect capitalization, does not fall below 30%
of its consolidated capitalization; (3) the effective cost of money on debt
borrowing occurring pursuant to this authorization will not exceed 300 basis
points over comparable term U.S. Treasury securities; (4) the maturity of
short-term indebtedness will not exceed one year; (5) the underwriting fees,
commissions, or other similar remuneration paid in connection with the
non-competitive bid issue, sale or distribution of a security in this matter
will not exceed 5% of the principal or total amount of the financing; (6) with
respect to any Bid Notes, they will bear interest rates comparable to, or lower
than, those available through other proposed forms of short-term borrowing with
similar terms and have maturities not exceeding 270 days; (7) the proceeds from
the sale of securities by Columbia in external financing transactions will be
added to Columbia's treasury and used for general and corporate purposes
including: (a) the financing, in part, of the capital expenditures of Columbia
and its Subsidiaries; (b) in the case of short-term debt, the financing of gas
storage inventories, other working capital requirements and capital spending of
the System; (c) the acquisition of interests in EWGs and FUCOs; (d) the
acquisition, retirement, or redemption of securities of which Columbia is an
issuer without the need for prior Commission approval pursuant to rule 42 or a
successor rule; and/or (e) the acquisition of the securities of nonutility
companies as permitted under any final rule of the Commission permitting such
acquisitions. The Money Pool will continue to operate pursuant to the terms and
conditions set forth in the Omnibus Financing Order.
The Columbia System requires short-term debt financing to finance gas
storage inventories until sale in the winter months, to meet other short-term
working capital requirements and to finance construction spending until
long-term financing can be arranged. Further, Columbia has an established goal
of increasing its investment in generally non-rate regulated businesses. As
Columbia's operations grow, its need for short-term capital will also increase.
In the rapidly growing energy industry, a higher level of short-term
authorization is required to provide the type of flexibility needed to compete
effectively. Columbia therefore requests an increase in the limit on short-term
debt at any one time outstanding through December 31, 2003 to $2 billion. Such
short-term financing could include, without limitation, a revolving credit
agreement, the issuance of commercial paper, bid notes issued to individual
banks, which are participants in the revolving credit agreement, bank borrowing,
or medium-term notes issued under its Indenture dated November 28, 1995, between
Columbia and Marine Midland Bank, Trustee, as amended.
The Omnibus Financing Order authorizes continuation of the System Money
Pool through December 31, 2001 but reserves jurisdiction over "Money Pool
participation by new direct or indirect subsidiaries engaged in new lines of
business." Columbia asks the
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Commission to release this jurisdiction. Since the Omnibus Financing Order was
issued in December 1996, the Commission has adopted Rule 58 and amendments to
Rules 45 and 52 which exempt the acquisition of the securities of and the
financing of the on-going business of energy and gas-related companies within
the meaning of the rule. The reservation of jurisdiction over Money Pool
participation creates a potential regulatory delay of the sort that Rule 58, for
example, was intended to eliminate. Accordingly, Columbia requests that the
Commission release jurisdiction over Money Pool participation by new
subsidiaries that are engaged in 1935 Act-authorized activities.
* * * * *
Rule 24(c)(1), in pertinent part, provides that, unless otherwise
designated in an application or declaration, every order is subject to a
requirement that the transaction proposed be carried out within 60 days of the
date of such order. As a practical matter, the failure to designate an
alternative period, has lead to a number of lapsed orders in the past,
necessitating the filing of post-effective amendments and the issuance of
supplemental orders. To avoid this situation in the future, Columbia hereby
designates a period from the date of the order in this matter to the expiration
of the authority under this order as the period in which it will carry out
transactions authorized in this order, or previously authorized by Commission
order, in accordance with the terms and conditions of, and for the purposes as
authorized by the relevant orders.
* * * * *
The conditions of Rule 54 are satisfied: At present, Columbia has no
"aggregate investment" within the meaning of Rule 53(a)(1)(i) in exempt
wholesale generators or foreign utility companies None of the disabling
conditions under Rule 53(b) exist with respect to Columbia and so Rule 53(c) is
inapplicable.
(b) Describe briefly, and where practicable state the approximate amount
of, any material interest in the proposed transaction, direct or indirect, of
any associate or affiliate of the applicant or declarant company or any
affiliate of any such associate company.
Not applicable.
(c) If the proposed transaction involves the acquisition of securities not
issued by a registered holding company or subsidiary thereof, describe briefly
the business and property, present or proposed, of the issuer of such
securities.
Not applicable.
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(d) If the proposed transaction involves the acquisition or disposition of
assets, describe briefly such assets, setting forth original cost, vendor's book
cost (including the basis of determination) and applicable valuation and
qualifying reserves.
Not applicable.
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.
<TABLE>
<S> <C>
Legal fees in connection with the preparation of the Application-
Declaration . . . . . . . . . . . . . . . . . . . . . $7,500.00
--------
Total. . . . . . . . . . . . . . . . . . . . . . . . . $7,500.00
--------
</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 the applicant or declarant, or is an affiliate of an associate
company, set forth the facts with respect thereto.
The Service Corporation will render certain legal services at cost.
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 the absence of a specific exemption, state the basis of exemption.
The proposed transactions are jurisdictional under Sections 6, 7, 9, 10
and 12 of the Act and rules thereunder, and Rule 54.
(b) If an 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.
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ITEM 4. REGULATORY APPROVAL
(a) State the nature and extent of the jurisdiction of any State
commission or any Federal commission (other than the U. S. Securities and
Exchange Commission) over the proposed transaction.
The State Corporation Commission of Virginia has jurisdiction over the
acquisition by Columbia and the sale by Commonwealth Services of short-term and
long-term debt securities. Regulatory commissions in the states of Kentucky,
Ohio and Pennsylvania exercise jurisdiction over the issuance and sale of common
stock and notes by Columbia Kentucky, Columbia Ohio and Columbia Pennsylvania,
but do not exercise jurisdiction over the acquisition of those securities by
Columbia.
(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.
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 requested that the Commission issue its Notice by October 30, 1997
and its order on or before November 30, 1997.
(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.
Applicants hereby (i) waive a recommended decision by a hearing officer,
(ii) waive a recommended decision by any other responsible officer or the
Commission, (iii) consent that the Division of Investment Management may assist
in the preparation of the Commission's decision, and (iv) waive 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
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F Opinion of Counsel for Columbia and Subsidiaries (to be filed by
Amendment).
G Proposed Notice.
(b) Financial Statements
The Columbia Gas System, Inc. and Subsidiaries:
(1) Condensed Statements of Income and Capitalization as of June 30,
1997. Actual and Pro Forma
(2) Condensed Balance Sheet as of June 30, 1997. Actual and Pro Forma
(3) Financial Data Schedules.
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 term 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.
The proposed transactions subject to the jurisdiction of this Commission
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, to Columbia's knowledge, is preparing
an EIS with respect to the proposed transaction.
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SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935, the undersigned companies have duly caused this Application-Declaration to
be signed on their behalf by the undersigned thereunto duly authorized.
The signatures of the applicants and of the persons signing on their
behalf are restricted to the information contained in this application which is
pertinent to the application of the respective companies.
THE COLUMBIA GAS SYSTEM, INC.
DATE: October 16, 1997 by: //s//M. W. O'Donnell
----------------------------------------------
M. W. O'Donnell, Senior Vice President
& Chief Financial Officer
COLUMBIA NATURAL RESOURCES, INC.
ALAMCO, INC.
ALAMCO-DELAWARE, INC.
HAWG HAULING & DISPOSAL, INC.
DATE: October 16, 1997 by: //s//M. A. Chandler
----------------------------------------------
M. A. Chandler,
Chief Financial
Officer & Treasurer
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COLUMBIA GAS OF OHIO, INC.
COLUMBIA GAS OF KENTUCKY, INC.
COLUMBIA GAS OF MARYLAND, INC.
COLUMBIA GAS OF PENNSYLVANIA, INC.
COMMONWEALTH GAS SERVICES, INC.
COLUMBIA NETWORK SERVICES CORPORATION
CNS MICROWAVE, INC.
COLUMBIA GULF TRANSMISSION COMPANY
COLUMBIA GAS TRANSMISSION CORPORATION
COLUMBIA PROPANE CORPORATION
COLUMBIA GAS SYSTEM SERVICE CORPORATION
COLUMBIA LNG CORPORATION
COLUMBIA ATLANTIC TRADING CORPORATION
COLUMBIA ENERGY SERVICES CORPORATION
COLUMBIA ASSURANCE AGENCY, INC.
COLUMBIA ENERGY MARKETING CORPORATION
COLUMBIA POWER MARKETING CORPORATION
COLUMBIA SERVICE PARTNERS, INC.
TRISTAR CAPITAL CORPORATION
TRISTAR VENTURES CORPORATION
TRISTAR PEDRICK LIMITED CORPORATION
TRISTAR PEDRICK GENERAL CORPORATION
TRISTAR BINGHAMTON LIMITED CORPORATION
TRISTAR BINGHAMTON GENERAL CORPORATION
TRISTAR VINELAND LIMITED CORPORATION
TRISTAR VINELAND GENERAL CORPORATION
TRISTAR RUMFORD LIMITED CORPORATION
TRISTAR GEORGETOWN GENERAL CORPORATION
TRISTAR GEORGETOWN LIMITED CORPORATION
TRISTAR FUEL CELLS CORPORATION
TVC NINE CORPORATION
TVC TEN CORPORATION
TRISTAR SYSTEM, INC.
DATE: October 16, 1997 by: //s//J. W. Trost
----------------------------------------------
J. W. Trost, Vice President
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<PAGE> 14
EXHIBIT G
SECURITIES AND EXCHANGE COMMISSION
(RELEASE NO. )
The Columbia Gas System, Inc. ("Columbia"), 12355 Sunrise Valley Drive,
Suite 300, Reston, Virginia, 20191-3458, a Delaware Corporation, and a
registered holding company under the Act, and its subsidiary companies
(collectively, "the System") have filed an application and declaration under
Sections 6, 7, 9, 10 and 12 of the Act and rules thereunder, and Rule 54.
Columbia requests Commission approval to update and expand their existing
short-term financing authority. By order dated December 23, 1996 in File No.
70-8925 (Holding Co. Act Release No. 26634) (the "Omnibus Financing Order"),
Columbia was authorized to engage in a wide range of financing transactions
through December 31, 2001, including short-term financing in an amount not to
exceed $1 billion outstanding at any one time, subject to certain conditions and
parameters. Columbia wishes to expand and clarify the foregoing order and
specifically requests authorization to increase the System's short-term
financing authority to an amount not to exceed $2 billion outstanding at any one
time through December 31, 2003. Such short-term financing could include, without
limitation, a revolving credit agreement, the issuance of commercial paper, bid
notes issued to individual banks, which are participants in the revolving credit
agreement, bank borrowing, or medium-term notes issued under its Indenture dated
November 28, 1995, between Columbia and Marine Midland Bank, Trustee, as
amended.
Columbia also requests authorization to release the reservation of
jurisdiction over Money Pool participation by new direct or indirect
subsidiaries of Columbia. The Omnibus Financing Order authorized continuation of
the System Money Pool through December 31, 2001 but reserved jurisdiction over
"Money Pool participation by new direct or indirect subsidiaries engaged in new
lines of business." Since the Omnibus Financing Order was issued in December
1996, the Commission has adopted Rule 58 and amendments to Rule 45 and 52 which
exempt the acquisition of the securities of and the financing of the on-going
business of energy and gas-related companies within the meaning of the rule.
Columbia therefore requests that the Commission release jurisdiction over Money
Pool participation by new subsidiaries that are engaged in 1935 Act-authorized
activities.
The joint 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 , to the Secretary, Securities and Exchange
Commission, Washington, D.C. 20549, and serve a copy on the applicants-
declarants at the address specified above. Proof of service (by affidavit or, in
case of an attorney-at-law, by certificate) should be filed with the request.
Any request for a 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
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<PAGE> 15
matter. After said date, the joint 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
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<TABLE>
<CAPTION>
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
(b)(2)
(1 of 2)
CONSOLIDATED BALANCE SHEET
ACTUAL and PRO FORMA
As of June 30, 1997
($000)
CG Pro Forma Entries CG
Actual Debit Credit Pro Forma
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
ASSETS
Property, Plant and Equipment
Gas utility and other plant, at original cost ............ -- -- -- --
Accumulated depreciation and depletion ................... -- -- -- --
---------- ---------- ---------- ----------
Net Gas Utility and Other Plant .......................... -- -- -- --
---------- ---------- ---------- ----------
Oil and gas producing properties, full cost method ....... -- -- -- --
Accumulated depletion .................................... -- -- -- --
---------- ---------- ---------- ----------
Net Oil and Gas Producing Properties ..................... -- -- -- --
---------- ---------- ---------- ----------
Net Property, Plant, and Equipment ......................... -- -- -- --
---------- ---------- ---------- ----------
Investments and Other Assets
Accounts receivable - noncurrent ......................... -- -- -- --
Unconsolidated affiliates ................................ -- -- -- --
Other .................................................... -- -- -- --
---------- ---------- ---------- ----------
Total Investments and Other Assets ......................... -- -- -- --
---------- ---------- ---------- ----------
Investments in Subsidiaries
Capital stock ............................................ 2,451,463 -- -- 2,451,463
Equity in undistributed retained earnings ................ (168,439) -- -- (168,439)
Installment promissory notes receivable .................. 783,008 -- -- 783,008
Other investments ........................................ 643,000 -- -- 643,000
---------- ---------- ---------- ----------
Total Investments in Subsidiaries .......................... 3,709,032 -- -- 3,709,032
---------- ---------- ---------- ----------
Current Assets
Cash and temporary cash investments ...................... 14,239 2,000,000(a) -- 2,014,239
Accounts receivable, net
Customers .............................................. -- -- -- --
Affiliated ............................................. 45,275 -- -- 45,275
Other .................................................. 877 -- -- 877
Gas inventory ............................................ -- -- -- --
Other inventory at average cost .......................... -- -- -- --
Prepayments .............................................. 1 -- -- 1
Current regulatory assets ................................ -- -- -- --
Other .................................................... 22,728 -- -- 22,728
---------- ---------- ---------- ----------
Total Current Assets ....................................... 83,120 2,000,000 -- 2,083,120
---------- ---------- ---------- ----------
Deferred Charges ........................................... 4,716 -- -- 4,716
Long term regulatory assets ................................ -- -- -- --
---------- ---------- ---------- ----------
Total Assets ............................................... 3,796,868 2,000,000 -- 5,796,868
========== ========== ========== ==========
</TABLE>
<PAGE> 17
<TABLE>
<CAPTION>
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
(b)(2)
(2 of 2)
BALANCE SHEET
ACTUAL and PRO FORMA
As of June 30, 1997
($000)
CG Pro Forma Entries CG
Actual Debit Credit Pro Forma
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholder's equity ............................. 1,734,463 112,531 -- 1,621,932
Long-term debt ................................... 2,000,056 -- -- 2,000,056
---------- ---------- ---------- ----------
Total Capitalization ............................... 3,734,519 112,531 -- 3,621,988
---------- ---------- ---------- ----------
Current Liabilities
Current maturities of long term debt ............. -- -- -- --
Short-term debt .................................. -- -- 2,000,000(a) 2,000,000
Debtor in possession financing ................... -- -- -- --
Accounts and drafts payable ...................... 3,847 -- -- 3,847
Affiliated accounts payable ...................... (94) -- -- (94)
Accrued taxes .................................... 9,500 60,594(b) -- (51,094)
Accrued interest ................................. 24,817 -- 173,125(b) 197,942
Estimated rate refunds ........................... -- -- -- --
Estimated supplier obligations ................... -- -- -- --
Current regulatory liabilities ................... -- -- -- --
Deferred income taxes - current .................. -- -- -- --
Other ............................................ 12,890 -- -- 12,890
---------- ---------- ---------- ----------
Total Current Liabilities .......................... 50,960 60,594 2,173,125 2,163,491
---------- ---------- ---------- ----------
Other Liabilities and Deferred Credits
Deferred income taxes, noncurrent ................ -- -- -- --
Deferred investment tax credit ................... -- -- -- --
Postretirement benefits other than pensions ...... 7,991 -- -- 7,991
Long-term regulatory liabilities ................. -- -- -- --
Other ............................................ 3,398 -- -- 3,398
---------- ---------- ---------- ----------
Total Other Liabilities and Deferred Credits ....... 11,389 -- -- 11,389
---------- ---------- ---------- ----------
Total Capitalization and Liabilities ............... 3,796,868 173,125 2,173,125 5,796,868
========== ========== ========== ==========
</TABLE>
<PAGE> 18
<TABLE>
<CAPTION>
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
(b)(1)(b)
STATEMENT OF CAPITALIZATION
ACTUAL and PRO FORMA
As of June 30, 1997
($000)
CG Pro Forma Entries CG
Actual Debit Credit Pro Forma
---------- ---------- ---------- ----------
<S> <C> <C> <C> <C>
Stockholder's Equity
Common Stock, $10 par value, authorized
100,000,000 shares, outstanding 55,382,267
shares ............................................. 553,823 -- -- 553,823
Additional paid in capital .......................... 747,083 -- -- 747,083
Retained earnings ................................... 434,724 112,531 -- 322,193
Unearned employee compensation ...................... (1,167) -- -- (1,167)
---------- ---------- ---------- ----------
Total Stockholder's Equity ............................ 1,734,463 112,531 -- 1,621,932
---------- ---------- ---------- ----------
Long-Term Debt
Long term debt ...................................... 2,000,056 -- -- 2,000,056
Installment promissory notes payable ................ -- -- -- --
---------- ---------- ---------- ----------
Total Long-Term Debt .................................. 2,000,056 -- -- 2,000,056
---------- ---------- ---------- ----------
Total Capitalization .................................. 3,734,519 112,531 -- 3,621,988
========== ========== ========== ==========
</TABLE>
<PAGE> 19
THE COLUMBIA GAS SYSTEM, INC. UNAUDITED
(b)(1)(a)
STATEMENT OF INCOME
ACTUAL and PRO FORMA
Twelve Months Ended June 30, 1997
($000)
<TABLE>
<CAPTION>
CG Pro Forma Entries CG
Actual Debit Credit Pro Forma
-------- -------- -------- ---------
<S> <C> <C> <C> <C>
Operating Revenues
Gas Sales .......................... -- -- -- --
Transportation ..................... -- -- -- --
Other .............................. -- -- -- --
-------- -------- -------- --------
Total Operating Revenues ............. -- -- -- --
-------- -------- -------- --------
Operating Expenses
Products purchased ................. -- -- -- --
Operation .......................... 7,576 -- -- 7,576
Maintenance ........................ -- -- -- --
Depreciation and depletion ......... -- -- -- --
Other taxes ........................ 130 -- -- 130
-------- -------- -------- --------
Total Operating Expenses ............. 7,706 -- -- 7,706
-------- -------- -------- --------
Operating Income (Loss) .............. (7,706) -- -- (7,706)
-------- -------- -------- --------
Other Income (Deductions)
Interest income and other, net
Unaffiliated ..................... (2,804) -- -- (2,804)
Affiliated ....................... 394,607 -- -- 394,607
Interest expense and related charges
Unaffiliated ..................... (151,391) 173,125(b) -- (324,516)
Affiliated ....................... -- -- -- --
Reorganization items, net .......... -- -- -- --
-------- -------- -------- --------
Total Other Income (Deductions) ...... 240,412 173,125 -- 67,287
-------- -------- -------- --------
Income (Loss) before Income Taxes .... 232,706 173,125 -- 59,581
Income Taxes ......................... (27,013) -- 60,594(b) (87,607)
-------- -------- -------- --------
Net Income (Loss) .................... 259,719 173,125 (60,594) 147,188
======== ======== ======== ========
</TABLE>
<PAGE> 20
UNAUDITED
(b)
THE COLUMBIA GAS SYSTEM, INC.
PRO FORMA ENTRIES
($000)
<TABLE>
<CAPTION>
Debit Credit
<S> <C> <C>
Entry (a):
Cash and Temporary Cash Investments 2,000,000
Short-term Debt 2,000,000
To record CG's borrowing.
Entry (b):
Interest Expense 173,125
Taxes Payable 60,594
Tax Expense 60,594
Interest Payable 173,125
</TABLE>
To record CG's interest* on short-term debt and related taxes.
* The October 10, 1997 Libor interest rate of 5.65625% plus 300 basis points,
per Item 1, Section (a), Subsection (3) of attached Form U-1.
<TABLE> <S> <C>
<ARTICLE> OPUR1
<SUBSIDIARY>
<NUMBER> 1
<NAME> CG
<MULTIPLIER> 1,000
<S> <C> <C>
<PERIOD-TYPE> 12-MOS 12-MOS
<FISCAL-YEAR-END> DEC-31-1997 DEC-31-1997
<PERIOD-START> JUL-01-1996 JUL-01-1996
<PERIOD-END> JUN-30-1997 JUN-30-1997
<BOOK-VALUE> PER-BOOK PRO-FORMA
<TOTAL-NET-UTILITY-PLANT> 0 0
<OTHER-PROPERTY-AND-INVEST> 3,709,000 3,709,000
<TOTAL-CURRENT-ASSETS> 83,100 2,083,100
<TOTAL-DEFERRED-CHARGES> 4,700 4,700
<OTHER-ASSETS> 0 0
<TOTAL-ASSETS> 3,796,800 5,796,800
<COMMON> 553,800 553,800
<CAPITAL-SURPLUS-PAID-IN> 747,100 747,100
<RETAINED-EARNINGS> 434,700 322,200
<TOTAL-COMMON-STOCKHOLDERS-EQ> 1,734,500 1,622,000
0 0
0 0
<LONG-TERM-DEBT-NET> 2,000,100 2,000,100
<SHORT-TERM-NOTES> 0 2,000,000
<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> 62,200 2,174,700
<TOT-CAPITALIZATION-AND-LIAB> 3,796,800 5,796,800
<GROSS-OPERATING-REVENUE> 0 0
<INCOME-TAX-EXPENSE> (27,000) (87,600)
<OTHER-OPERATING-EXPENSES> 7,700 7,700
<TOTAL-OPERATING-EXPENSES> 7,700 7,700
<OPERATING-INCOME-LOSS> (7,700) (7,700)
<OTHER-INCOME-NET> 391,800 391,800
<INCOME-BEFORE-INTEREST-EXPEN> 384,100 384,100
<TOTAL-INTEREST-EXPENSE> 151,400 324,500
<NET-INCOME> 259,700 147,200
0 0
<EARNINGS-AVAILABLE-FOR-COMM> 259,700 147,200
<COMMON-STOCK-DIVIDENDS> 0 0
<TOTAL-INTEREST-ON-BONDS> 0 0
<CASH-FLOW-OPERATIONS> 0 0
<EPS-PRIMARY> 4.70 2.66
<EPS-DILUTED> 4.68 2.65
</TABLE>
