<PAGE> 1
PAGE 1
Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
For the Period
Beginning January 1, 1996 and Ending December 31, 1996
To The
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
COLUMBIA GAS SYSTEM SERVICE CORPORATION
(Exact Name of Report Company
A Subsidiary Service Company
("Mutual" or "Subsidiary")
Date of Incorporation DECEMBER 31, 1932
State or Sovereign Power Under which Incorporated or Organized - DELAWARE
Location of Principal Executive Offices of Reporting Company:
12355 Sunrise Valley Drive, Reston, Virginia 20191-3420
DONATO FURLANO, CONTROLLER
1600 Dublin Road
Columbus, Ohio 43215
(Name, title and address of officer to whom correspondence concerning
this report should be addressed)
THE COLUMBIA GAS SYSTEM INC.
(Name of Principal Holding Company whose Subsidiaries are served by
Reporting Company)
<PAGE> 2
PAGE 2
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing - Rule 94 provides that on or before the first day of May in
each calendar year, each mutual service company and each subsidiary service
company as to which the Commission shall have made a favorable finding
pursuant to Rule 88, and every service company whose application for
approval or declaration pursuant to Rule 88 is pending shall file with the
Commission an annual report on Form U-13-60 and in accordance with the
Instructions for that form.
2. Number of Copies - Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in
case correspondence with reference to the report become necessary.
3. Period Covered by Report - The first report filed by any company shall
cover the period from the date the Uniform System of Accounts was required
to be made effective as to that company under Rules 82 and 93 to the end of
that calendar year. Subsequent reports should cover a calendar year.
4. Report Format - Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form is inadequate,
additional sheets may be inserted on the same size as a sheet of the form
or folded to such size.
5. Money Amounts Displayed - All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of
dollars or in hundred thousands of dollars, as appropriate and subject to
provisions of Regulation S-X (Section 210.3-01[b]).
6. Deficits Displayed - Deficits and other like entries shall be indicated by
the use of either brackets or a parenthesis with corresponding reference in
footnotes.
(Regulation S-X, Section 210.3-01[C]).
7. Major Amendments or Corrections - Any company desiring to amend or correct
a major omission or error in a report after it has been filed with the
Commission shall submit an amended report including only those pages,
schedules, and entries that are to be amended or corrected. A cover letter
shall be submitted requesting the Commission to incorporate the amended
report changes and shall be signed by a duly authorized officer of the
company.
8. Definitions - Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February
2, 1979, shall be applicable to words or terms used specifically within
this Form U-13-60.
9. Organization Chart - The service company shall submit with each annual
report a copy of its current organization chart.
10. Methods of Allocation - The service company shall submit with each annual
report a listing of the currently effective methods of allocation being
used by the service company and on file with the Securities and Exchange
Commission pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed - The service
company shall submit with each annual report a copy of the annual statement
supplied to each associate company in support of the amount of compensation
for use of capital billed during the calendar year.
<PAGE> 3
PAGE 3
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
<TABLE>
<CAPTION>
Schedule or
Account Page
Description of Schedules and Accounts Number Number
- --------------------------------------------------------------------------- ------------------------- ----------
<S> <C> <C>
COMPARATIVE BALANCE SHEET Schedule I 5-6
Service Company Property Schedule II 7-8
Accumulated Provision For Depreciation and Schedule III 9
Amortization of Service Company Property
Investments Schedule IV 10
Accounts Receivable From Associated Companies Schedule V 11-12
Fuel Stock Expenses Undistributed Schedule VI 13
Stores Expense Undistributed Schedule VII 14
Miscellaneous Current and Accrued Assets Schedule VIII 15
Miscellaneous Deferred Debits Schedule IX 16
Research, Development or Demonstration Expenditures Schedule X 17
Proprietary Capital Schedule XI 18
Long-Term Debt Schedule XII 19
Current and Accrued Liabilities Schedule XIII 20-21
Notes to Financial Statements Schedule XIV 22-23
COMPARATIVE INCOME STATEMENT Schedule XV 24
Analysis of Billing - Associate Companies Account 457 25
Analysis of Billing - Nonassociate Companies Account 458 26
Analysis of Charges for Service - Associate and Schedule XVI 27
Nonassociate Companies
Schedule of Expense by Department or Service Function Schedule XVII 28-30
Departmental Analysis of Salaries Account 920 31
Outside Services Employed Account 923 32-34
Employee Pensions and Benefits Account 926 35
General Advertising Expenses Account 930.1 36
Miscellaneous General Expenses Account 930.2 37
Rents Account 931 38
Taxes Other Than Income Taxes Account 408 39
Donations Account 426.1 40
Other Deductions Account 426.5 41
Notes to Statement of Income Schedule XVIII 42
</TABLE>
<PAGE> 4
PAGE 4
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
<TABLE>
<CAPTION>
Page
Description of Reports or Statements Number
- --------------------------------------------------------------------------- ------
<S> <C>
Organization Chart 43
Methods of Allocation 44
Annual Statement of Compensation for Use of Capital Billed 45-46
</TABLE>
<PAGE> 5
PAGE 5
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
1996
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the
current and prior year
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
- ------- ----------------------------------------------------------------- ------------------------------
CURRENT PRIOR
-------- --------
<C> <S> <C> <C>
$000 $000
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) 48,725 54,425
107 Construction work in progress (Schedule II) -- --
-------- --------
Total Property 48,725 54,425
-------- --------
108 Less accumulated provision for depreciation and
amortization of service company property
(Schedule III) 25,981 26,152
-------- --------
Net Service Company Property 22,744 28,273
INVESTMENTS
123 Investments in associate companies (Schedule IV) -- --
124 Other investments (Schedule IV) -- --
-------- --------
Total Investments -- --
-------- --------
CURRENT AND ACCRUED ASSETS
131 Cash 10,687 110
134 Special deposits 171 171
135 Working funds 23 27
136 Temporary cash investments (Schedule IV) 550 --
141 Notes receivable 364 --
143 Accounts receivable (502) 297
144 Accumulated provision for uncollectable accounts -- --
146 Accounts receivable from associate companies
(Schedule V) 9,798 9,182
152 Fuel stock expenses undistributed (Schedule VI) -- --
154 Materials and supplies -- --
163 Stores expense undistributed (Schedule VII) -- --
165 Prepayments 60 316
174 Miscellaneous current and accrued assets
(Schedule VIII) -- --
-------- --------
Total Current and Accrued Assets 21,151 10,103
-------- --------
DEFERRED DEBITS
181 Unamortized debt expense -- --
184 Clearing accounts 6,339 7,352
186 Miscellaneous deferred debits (Schedule IX) 17,182 14,949
188 Research, development, or demonstration
expenditures (Schedule X) -- --
190 Accumulated deferred income taxes 2,676 2,902
-------- --------
Total Deferred Debits 26,197 25,203
-------- --------
TOTAL ASSETS AND OTHER DEBITS 70,092 63,579
======== ========
</TABLE>
<PAGE> 6
PAGE 6
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
SCHEDULE I - COMPARATIVE BALANCE SHEET
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------------------
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
- ------- ----------------------------------------------------------------- ------------------------------
CURRENT PRIOR
-------- --------
<C> <S> <C> <C>
$000 $000
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 13,000 13,000
211 Miscellaneous paid-in-capital (Schedule XI) -- --
215 Appropriated retained earnings (Schedule XI) -- --
216 Unappropriated retained earnings (Schedule XI) 174 176
-------- --------
Total Proprietary Capital 13,174 13,176
-------- --------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) 16,043 14,043
224 Other long-term debt (Schedule XII) -- --
225 Unamortized premium on long-term debt -- --
226 Unamortized discount on long-term debt -- --
-------- --------
Total Long-Term Debt 16,043 14,043
-------- --------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable -- --
232 Accounts payable 11,395 4,225
233 Notes payable to associate companies (Schedule XIII) -- 2,078
234 Accounts payable to associate companies (Schedule XIII) 4,157 1,707
236 Taxes accrued 41 3,055
237 Interest accrued 69 48
238 Dividends declared -- --
241 Tax collections payable 150 --
242 Miscellaneous current and accrued liabilities (Schedule XIII) 13,499 8,431
-------- --------
Total Current and Accrued Liabilities 29,311 19,544
-------- --------
DEFERRED CREDITS
253 Other deferred credits 10,501 13,866
255 Accumulated deferred investment tax credits -- --
-------- --------
Total Deferred Credits 10,501 13,866
-------- --------
282 ACCUMULATED DEFERRED INCOME TAXES 1,063 2,950
-------- --------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 70,092 63,579
======== ========
</TABLE>
<PAGE> 7
PAGE 7
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
SCHEDULE II - SERVICE COMPANY PROPERTY
<TABLE>
<CAPTION>
BALANCE BALANCE
AT AT
BEGINNING RETIREMENTS OTHER CLOSE
OF YEAR ADDITIONS OR SALES CHANGES (1) OF YEAR
DESCRIPTION $000 $000 $000 $000 $000
- --------------------------------------------- ----------- ----------- ----------- ----------- -----------
<S> <C> <C> <C> <C> <C> <C>
SERVICE COMPANY PROPERTY
Account:
301 ORGANIZATION -- -- -- -- --
303 MISCELLANEOUS
INTANGIBLE PLANT -- -- -- -- --
304 LAND AND LAND RIGHTS 720 -- (658) -- 62
305 STRUCTURES AND --
IMPROVEMENTS 22,811 902 (7,449) -- 16,264
306 LEASEHOLD IMPROVEMENTS -- -- -- -- --
307 EQUIPMENT (2) 24,552 4,208 (1,845) -- 26,915
308 OFFICE FURNITURE AND
EQUIPMENT 5,014 209 (130) -- 5,093
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT -- -- -- -- --
310 AIRCRAFT AND AIRPORT
EQUIPMENT 248 -- -- -- 248
311 OTHER SERVICE COMPANY
PROPERTY (3) 1,080 -- (937) -- 143
----------- ----------- ----------- --------- -----------
SUB-TOTAL 54,425 5,319 (11,019) -- 48,725
----------- ----------- ----------- --------- -----------
107 CONSTRUCTION WORK IN
PROGRESS (4) -- -- -- -- --
----------- ----------- ----------- --------- -----------
TOTAL 54,425 5,319 (11,019) -- 48,725
=========== =========== =========== =========== ===========
</TABLE>
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NOT APPLICABLE
<PAGE> 8
PAGE 8
SCHEDULE II - CONTINUED
(2) SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS
DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
<TABLE>
<CAPTION>
BALANCE AT
CLOSE OF
SUBACCOUNT DESCRIPTION ADDITIONS YEAR
- -------------------------------------------------------------- -------- ----------
$000 $000
<C> <S> <C> <C>
307-1 Telecommunications Equipment - 16
307-2 Communications Management Center - 1,651
307-3 Data Processing Equipment - 64
307-4 Print Services Equipment - 110
307-5 Research & Laboratory Equipment - 519
307-6 Telecommunications Equipment - after 1979 362 2,683
307-7 EDP Equipment - 4 years 2,099 17,164
307-8 EDP Equipment - 10 years - 4
307-9 Personal Computer and Peripheral Equipment 5 2,622
307-10 Distribution Research Equipment - 340
307-11 Electrical Supply Generators 1,742 1,742
-------- ----------
TOTAL 4,208 26,915
- -------------------------------------------------------------- -------- ----------
</TABLE>
(3) DESCRIBE OTHER SERVICE COMPANY PROPERTY:
Costs incurred in the internal development of the Employee Accounting
System Interface, Labor Distribution System, and Intercompany Billing
software.
(4) DESCRIBE CONSTRUCTION WORK IN PROGRESS:
Not Applicable
<PAGE> 9
PAGE 9
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------------------------------
ADDITIONS
BALANCE CHARGED OTHER BALANCE
AT TO CHANGES AT
BEGINNING ACCOUNT ADD CLOSE
DESCRIPTION OF YEAR 403 RETIREMENTS (DEDUCT)(1) OF YEAR
- --------------------------------------------- ----------- ----------- ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
$000 $000 $000 $000 $000
ACCOUNT
301 ORGANIZATION -- -- -- -- --
303 MISCELLANEOUS INTANGIBLE
PLANT -- -- -- -- --
304 LAND AND LAND RIGHTS -- -- -- -- --
305 STRUCTURES AND
IMPROVEMENTS 7,748 428 (3,502) -- 4,674
306 LEASEHOLD IMPROVEMENTS --
307 EQUIPMENT 14,892 4,948 (1,336) -- 18,504
308 OFFICE FURNITURE AND
FIXTURES 2,248 307 (108) -- 2,447
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT -- -- -- -- --
310 AIRCRAFT AND AIRPORT
EQUIPMENT 248 -- -- -- 248
311 OTHER SERVICE COMPANY
PROPERTY 1,016 28 (936) -- 108
----------- ----------- ----------- ----------- ----------
TOTAL 26,152 5,711 (5,882) 0 25,981
=========== =========== =========== =========== ==========
</TABLE>
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NOT APPLICABLE
<PAGE> 10
PAGE 10
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
SCHEDULE IV - INVESTMENTS
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments," state each investment
separately, with description, including, the name of issuing
company, number of shares or principal amount, etc.
Under Account 136, "Temporary Cash Investments," list each
investment separately.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ------------------------------------------------------- ----------- -----------
<S> <C> <C>
Account 123 - Investment in Associate Companies None None
Account 124 - Other Investments None None
Account 136 - Temporary Cash Investments
System Money Pool - Unaffiliated None 550
----------- -----------
TOTAL None 550
=========== ===========
</TABLE>
<PAGE> 11
PAGE 11
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
INSTRUCTIONS: Complete the following schedule listing accounts receivable
from each associate company. Where the service company has
provided accommodation or convenience payments for associate
companies, a separate listing of total payments for each
associate company
<TABLE>
<CAPTION>
- -----------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ------------------------------------------------------------ ---------- ----------
$000 $000
<S> <C> <C>
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
Columbia Gas System Money Pool 7,264 7,246
The Columbia Gas System, Inc. 377 832
Columbia Gas Development Corporation 14 --
Columbia Gulf Transmission Company 17 2
Columbia Energy Services 149 48
TriStar Ventures Corporation 30 199
Columbia LNG Corporation 8 13
Columbia Coal Gasification Corporation 1 2
Columbia Network Services Corporation -- 59
Columbia Insurance Corporation, Ltd. -- 6
Columbia Gas of Kentucky, Inc. 34 (276)
Columbia Gas of Ohio, Inc. 168 804
Columbia Gas of Maryland, Inc. 5 69
Columbia Gas of Pennsylvania, Inc. 54 125
Commonwealth Gas Services, Inc. (14) 8
Commonwealth Propane, Inc. 13 11
Columbia Gas Transmission Corporation 1,039 636
Columbia Natural Resources, Inc. 23 14
---------- ----------
TOTAL 9,182 9,798
========== ==========
</TABLE>
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
<TABLE>
<CAPTION>
TOTAL
PAYMENTS
--------
$000
<S> <C>
See Schedule V-A, page 12
TOTAL PAYMENT 579,936
========
</TABLE>
<PAGE> 12
PAGE 12
SCHEDULE V-A
COLUMBIA GAS SYSTEM SERVICE CORPORATION
Convenience & Accommodation Payments
For the Year Ended December 31, 1996
<TABLE>
<CAPTION>
Employee Employee Corporate PH&H
Associate Company Benefits Payroll Insurance Leases Other Total
- ---------------------------------------- -------- -------- --------- ------- ------ --------
<S> <C> <C> <C> <C> <C> <C>
$ 000 $ 000 $ 000 $ 000 $ 000 $ 000
The Columbia Gas System, Inc. 1,573 -- 688 2 28,551 30,814
Columbia Gas Development Corporation 649 3,527 88 6 187 4,457
Columbia Gulf Transmission Company 8,092 20,060 5,311 502 252 34,217
Columbia Energy Services 582 4,515 221 73 29,239 34,630
Columbia Propane Corporation 407 1,424 96 196 21 2,144
TriStar Ventures Corporation 355 2,810 23 -- 1,399 4,587
Columbia LNG Corporation 351 1,904 614 37 254 3,160
Columbia Network Services Corporation 33 86 -- -- -- 119
Columbia Insurance Corporation -- -- -- -- 2 2
Columbia Gas of Kentucky, Inc. 4,270 9,879 583 566 31 15,329
Columbia Gas of Ohio, Inc. 46,230 111,140 4,673 5,649 3,107 170,799
Columbia Gas of Maryland, Inc. 1,046 2,534 168 243 30 4,021
Columbia Gas of Pennsylvania, Inc. 13,003 32,154 1,865 2,334 202 49,558
Commonwealth Gas Services, Inc. 5,373 12,822 762 1,322 137 20,416
Commonwealth Propane, Inc. 2,724 13,197 636 1,359 23 17,939
TriStar Capital Corporation -- -- 1 -- -- 1
Columbia Gas Transmission Corporation 38,148 105,127 8,616 6,674 3,014 161,579
Columbia Atlantic Trading, Inc. -- -- 12 -- 31 43
Columbia Natural Resources, Inc. 3,743 19,775 714 1,733 156 26,121
------- ------- ------ ------ ------ -------
Total 126,579 340,954(1) 25,071 20,696 66,636(2) 579,936
======= ======== ====== ====== ======= =======
</TABLE>
Note 1: During 1996, the System payroll function was centralized
within the Service Corporation.
Note 2: The increase in 1996 (primarily for The Columbia Gas System,
Inc. and Columbia Energy Services) reflects a new service
offered by the Corporate Treasury Department to provide a
non-repetitive electronic funds transfer to third parties
which replaces the previous manual procedures of the
affiliates.
<PAGE> 13
PAGE 13
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
- --------------------------------------------------------------------------------
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to fuel stock expenses during the year and indicate amount
attributable to each associate company. Under the section
headed "Summary" listed below give an overall report of the
fuel functions performed by the service company.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- ----------------------------------------------- ----- -------- -----
<S> <C> <C> <C>
$000 $000 $000
Account 152 - Fuel Stock Expenses Undistributed None None None
---- ---- ----
TOTAL None None None
</TABLE>
SUMMARY:
Not Applicable
- -------------------------------------------------------------------------------
<PAGE> 14
PAGE 14
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- -------------------------------------------------------------------------------
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
- -------------------------------------------------------------------------------
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect
to stores expense during the year and indicate amount
attributable to each associate company.
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------
DESCRIPTION LABOR EXPENSES TOTAL
- ----------------------------------------------- ----- -------- -----
<S> <C> <C> <C>
$000 $000 $000
Account 163 - Stores Expenses Undistributed None None None
----- -------- ------
TOTAL None None None
</TABLE>
- -------------------------------------------------------------------------------
<PAGE> 15
PAGE 15
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped, showing the number of items in each
group.
<TABLE>
<CAPTION>
- ---------------------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ------------------------------------------------------------ ---------- ----------
$000 $000
<S> <C> <C>
Account 174 - Miscellaneous Current and Accrued Assets None None
---------- ----------
TOTAL None None
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 16
PAGE 16
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide detail of items in this account. Items less than
$10,000 may be grouped by class showing the number of items in
each class.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ------------------------------------------------------- ---------- ----------
$000 $000
<S> <C> <C>
ACCOUNT 186 - MISCELLANEOUS DEFERRED DEBITS
Other Post Retirement Employee Benefits 13,681 12,153
Restricted Stock Awards - 1,459
Intangible Asset - Pension Restoration Plan 1,127 1,127
Workers Compensation Claims - 964
Deferred Convenience Claims - 845
Deferred Insurance Receivables - 347
Returned Payroll Checks 97 229
EDP Software Costs 44 58
---------- ---------
TOTAL 14,949 17,182
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 17
PAGE 17
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
SCHEDULE X
RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide description of each material research, development, or
demonstration project which incurred costs by the service
corporation during the year.
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- ------------------------------------------------- ------
<S> <C>
$000
None
------
TOTAL None
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 18
PAGE 18
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
SCHEDULE XI - PROPRIETARY CAPITAL
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
OUTSTANDING CLOSE OF PERIOD
NUMBER OF SHARES PAR OR STATED VALUE -----------------------------
ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
- -------------- -------------- ---------------- ------------------- ------------- ------------
<S> <C> <C> <C> <C> <C>
201 COMMON STOCK $130,000 $100 $130,000 $13,000,000
</TABLE>
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which give rise to
the reported amount.
<TABLE>
<CAPTION>
- -------------------------------------------------------
DESCRIPTION AMOUNT
- -------------------------------------------------------
<S> <C>
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL None
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS None
----
TOTAL None
</TABLE>
- --------------------------------------------------------------------------------
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owed
or net loss remaining from servicing nonassociates per the
General Instructions of the Uniform System of Accounts. For
dividends paid during the year in cash or otherwise, provide rate
percentage, amount of dividend, date declared and date paid
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------------------------
BALANCE AT BALANCE AT
BEGINNING NET INCOME DIVIDENDS CLOSE
DESCRIPTION OF YEAR OR (LOSS) PAID OF YEAR
- ---------------------------------------------- ---------- ---------- --------- ----------
<S> <C> <C> <C> <C>
$000 $ 000 $ 000 $ 000
ACCOUNT 216 - UNAPPROPRIATED RETAINED EARNINGS 176 2,026 2,028 174
</TABLE>
<TABLE>
<CAPTION>
Rate/Share Amount of Dividend Date Declared Date Paid
---------- ------------------ ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
$ $000
3.95 514 02/14/96 02/29/96
3.85 500 05/08/96 05/31/96
3.90 507 08/14/96 08/30/96
3.90 507 11/13/96 11/30/96
-------------------------------------------------------------- ---- ----- ----- ---
TOTAL 176 2,026 2,028 174
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 19
PAGE 19
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
Schedule XII - Long-Term Debt
INSTRUCTIONS: Advances From Associate Companies should be reported separately
for advances on notes, and advances on open account. Names of
associate companies from which advances were received shall be
shown under the class and series of obligation column. For
Account 224 - Other Long-Term Debt provide the name of creditor
company or organization, terms of the obligation, date of
maturity, interest rate, and the amount authorized and
outstanding.
<TABLE>
<CAPTION>
TERMS OF OBLIG DATE BALANCE AT DEDUC- BALANCE AT
CLASS & SERIES OF INTEREST AMOUNT BEGINNING ADDI- TIONS CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR TIONS (1) OF YEAR
- ---------------- -------------- -------- -------- ---------- ---------- ----- ------ ----------
% $000 $000 $000 $000 $000
ACCOUNT 223 -
ADVANCES FROM ASSOCIATE COMPANIES:
<S> <C> <C> <C> <C> <C> <C> <C> <C>
The Columbia Gas System, Inc. Promissory Note 11/28/00 6.89 2,567 -- 2,567 -- 2,567
The Columbia Gas System, Inc. Promissory Note 11/28/02 7.11 2,246 -- 2,246 -- 2,246
The Columbia Gas System, Inc. Promissory Note 11/28/05 7.30 2,246 -- 2,246 -- 2,246
The Columbia Gas System, Inc. Promissory Note 11/28/07 7.55 2,246 -- 2,246 -- 2,246
The Columbia Gas System, Inc. Promissory Note 11/28/10 7.82 2,246 -- 2,246 -- 2,246
The Columbia Gas System, Inc. Promissory Note 11/28/15 7.92 2,246 -- 2,246 -- 2,246
The Columbia Gas System, Inc. Promissory Note 11/28/25 8.12 2,246 -- 2,246 -- 2,246
The Columbia Gas System, Inc. Promissory Note 05/31/97 8.30 4,400 176 -- 176 --
The Columbia Gas System, Inc. Promissory Note 02/29/14 9.47 700 525 -- 525 --
The Columbia Gas System, Inc. Promissory Note 02/28/14 9.47 400 299 -- 299 --
The Columbia Gas System, Inc. Promissory Note 02/01/01 9.92 2,500 1,250 -- 1,250 --
The Columbia Gas System, Inc. Promissory Note 02/01/01 9.92 2,900 1,450 -- 1,450 --
The Columbia Gas System, Inc. Promissory Note 01/31/14 10.41 1,600 1,199 -- 1,199 --
The Columbia Gas System, Inc. Promissory Note 01/31/03 10.58 700 326 -- 326 --
The Columbia Gas System, Inc. Promissory Note 01/31/04 10.58 1,000 535 -- 535 --
The Columbia Gas System, Inc. Promissory Note 03/31/01 12.90 1,500 195 -- 195 --
The Columbia Gas System, Inc. Promissory Note 01/31/01 variable 800 268 -- 268 --
The Columbia Gas System, Inc. Promissory Note 04/30/03 8.25 5,000 3,500 -- 3,500 --
The Columbia Gas System, Inc. Promissory Note 04/30/04 7.75 5,400 4,320 -- 4,320 --
ACCOUNT 224 - OTHER LONG-TERM DEBT:
TOTAL 42,943 14,043 16,043 14,043 16,043
------ ------ ------ ------ ------
</TABLE>
(1) GIVE AN EXPLANATION OF DEDUCTIONS: The deductions represent the
portion of the Installment Promissory Notes which mature within
one year. On December 30, 1996 all existing debt with The
Columbia Gas System, Inc. was refunded. Currently there is no
long term debt due within the next year.
<PAGE> 20
PAGE 20
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current and
accrued liabilities. Items less than $10,000 may be grouped,
showing the number of items in each group.
<TABLE>
<CAPTION>
BALANCE AT BALANCE AT
BEGINNING CLOSE
DESCRIPTION OF YEAR OF YEAR
- ----------- ---------- ----------
$000 $000
<S> <C> <C>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
See Schedule XIII-A 2,078 --
----- ------
TOTAL 2,078 --
----- ------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
The Columbia Gas System, Inc. 1,707 4,132
Columbia Energy Services -- 17
System Money Pool Interest Payable -- 8
----- ------
TOTAL 1,707 4,157
----- ------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
Retirement Income Plan 2,501 3,479
Release & Retention Program -- 2,589
Pension Retirement Benefits 948 2,540
Accrued Vacation 2,046 1,954
Contract Retainage 1,364 1,467
Thrift Restoration Plan 312 623
Comprehensive Medical Expense Plan Accrual 258 258
Employee Agreements 221 167
Employee Thrift Plan 172 118
Aircraft Engine Overhaul Accrual 433 80
Post Retirement Benefit Obligation 73 72
Thrift Plan - Company -- 64
Flexible Spending 48 49
Dental Assistance Plan Accrual 20 20
Unclaimed Accounts 19 19
Auditing Fees 16 --
----- ------
TOTAL 8,431 13,499
----- ------
</TABLE>
<PAGE> 21
PAGE 21
SCHEDULE XIII-A
COLUMBIA GAS SYSTEM SERVICE CORPORATION
Notes Payable to Associate Companies
Account 233
<TABLE>
<CAPTION>
Balance at Balance at
Beginning Close
of Year of Year
---------- ----------
$000 $000
<S> <C> <C> <C>
The Columbia Gas System, Inc.
6.89% Installment Promissory Note N/A None
7.11% Installment Promissory Note N/A None
7.30% Installment Promissory Note N/A None
7.55% Installment Promissory Note N/A None
7.82% Installment Promissory Note N/A None
7.92% Installment Promissory Note N/A None
8.12% Installment Promissory Note N/A None
7.75% Installment Promissory Note 540 None
8.40% Installment Promissory Note 4 None
8.30% Installment Promissory Note 176 None
9.47% Installment Promissory Note 29 None
9.47% Installment Promissory Note 17 None
9.92% Installment Promissory Note 250 None
9.92% Installment Promissory Note 290 None
10.41% Installment Promissory Note 67 None
10.58% Installment Promissory Note 47 None
10.58% Installment Promissory Note 66 None
12.90% Installment Promissory Note 39 None
Variable Installment Promissory Note 53 None
8.25% Installment Promissory Note 500 None
-----
Total 2,078 None
===== ====
</TABLE>
Note: On December 30, 1996 all outstanding debt with The Columbia Gas
System, Inc. was refunded. As of December 31, 1996 there are no
current maturities.
<PAGE> 22
PAGE 22
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars
as to any significant contingent assets or liabilities existing
at the end of the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here by
reference.
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
a. Property, Plant and Equipment and Related Depreciation
Property, Plant and Equipment is stated at historical cost. Depreciation
is provided on a composite straight-line basis using the average of
depreciable property at the beginning and end of each year.
b. Income Taxes
The Corporation provides deferred taxes with respect to timing differences
in the recognition of revenues and expenses for tax and accounting
purposes. The major difference results from using accelerated depreciation
for tax purposes. The Corporation is included in the Consolidated Federal
Income Tax Return filed for The Columbia Gas System, Inc. and
Subsidiaries.
c. Pension Costs
The Corporation participates in the Retirement Income Plan of The Columbia
Gas System, Inc. This is a trusteed noncontributory Retirement Income Plan
which, with certain minor exceptions, covers all regular employees. The
Service Corporation's portion amounted to $977,000 in 1996 and
$1,042,000 in 1995, including the amortization of unfunded prior service
costs.
d. Leases
Payments made by the Corporation in connection with operating leases are
charged to expense as incurred. No capitalized leases existed in 1996.
e. Account Numbers
The Corporation uses certain FERC accounts which do not match existing SEC
accounts; therefore, the year-end balances of the following FERC accounts
were reclassified to a corresponding SEC account.
<TABLE>
<CAPTION>
Account Number
------------- Year-End
Account Description FERC SEC Balance
------------------- ---- --- ---------
$000
<S> <C> <C> <C>
Interest Receivable 171 143 135
Deferred Income Taxes 283 282 10
</TABLE>
<PAGE> 23
PAGE 23
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
f. Post-Retirement Benefits Other Than Pensions
During 1991, the System adopted SFAS No. 106, Employer's Accounting for
Post-Retirement Benefits Other Than Pensions, retroactive to January 1,
1991. The Corporation has elected to record and defer the full amount of
its estimated accumulated post-retirement obligations other than pensions.
These obligations total $13,681,000 as of December 31, 1996, and represent
the actuarial present value of the post-retirement benefits to be paid to
current employees and retirees based on services rendered.
g. System Money Pool
The System Money pool exists for affiliate companies to borrow excess cash
from other affiliate companies. Prior to 1996, the Corporation served as
the System Money Pool's administrator.
<PAGE> 24
PAGE 24
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year ended December 31, 1996
SCHEDULE XV
STATEMENT OF INCOME
<TABLE>
<CAPTION>
1996 1995
------------ ----------
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
- ------- ---------------------------------------------- ------------ ----------
$000 $000
<S> <C> <C> <C>
INCOME
457 Services rendered to associate companies 85,015 74,228
458 Services rendered to nonassociate companies None None
421 Miscellaneous income or loss 5,852 None
------ ------
Total Income 90,867 74,228
EXPENSE
920 Salaries and wages 35,660 27,975
921 Office supplies and expenses 7,973 6,611
922 Administrative expense transferred - credit (2,302) (2,636)
923 Outside services employed 10,252 8,356
924 Property insurance 195 270
925 Injuries and damages 146 92
926 Employee pensions and benefits 11,637 7,941
928 Regulatory commission expense 1 1
930.1 General advertising expenses 62 18
930.2 Miscellaneous general expenses 2,729 281
931 Rents 7,720 7,854
932 Maintenance of structures and equipment 2,328 3,544
403 Depreciation and amortization expense 5,711 5,268
408 Taxes other than income taxes 3,103 2,804
409 Income taxes 3,882 3,417
410 Provision for deferred income taxes 2,368 1,807
411 Provision for deferred income taxes - credit (4,028) (2,789)
411.5 Investment tax credit None None
426.1 Donations 136 105
426.5 Other deductions None None
427 Interest on long-term debt None None
430 Interest on debt to associate companies 1,526 1,557
431 Other interest expense (258) (338)
------ ------
Total Expense 88,841 72,138
------ ------
Net Income or (Loss) 2,026 2,090
====== ======
</TABLE>
<PAGE> 25
PAGE 25
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year ended December 31, 1996
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
<TABLE>
<CAPTION>
DIRECT INDIRECT COMPENSAT'N TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
- -------------------------------------- ------- ------- ----------- ------
457-1 457-2 457-3
------- ------- -----------
$000 $000 $000 $000
<S> <C> <C> <C> <C>
The Columbia Gas System, Inc 1,950 918 153 3,021
Columbia Gas Development Corporation 260 73 18 351
Columbia Gulf Transmission Company 4,528 2,151 323 7,002
Columbia Energy Services 381 269 42 692
Columbia Propane Corporation 111 82 12 205
TriStar Ventures Corporation 423 217 32 672
Columbia LNG Corporation 165 108 17 290
Columbia Coal Gasification Corporation 20 10 2 32
Columbia Network Services Corporation 25 9 -- 34
Columbia Insurance Corporation, Ltd 2 2 -- 4
Columbia Gas of Kentucky, Inc. 2,192 720 105 3,017
Columbia Gas of Ohio, Inc. 16,985 5,356 779 23,120
Columbia Gas of Maryland, Inc. 731 225 34 990
Columbia Gas of Pennsylvania, Inc. 6,231 2,075 305 8,611
Commonwealth Gas Services, Inc. 3,164 1,016 147 4,327
Commonwealth Propane, Inc. 514 357 52 923
TriStar Capital Corporation 5 7 1 13
Columbia Gas Transmission Corporation 20,535 7,498 1,116 29,149
Columbia Atlantic Trading, Inc. 9 10 2 21
Columbia Natural Resources, Inc. 1,946 947 145 3,038
------ ------ ----- ------
Total Amount Billed in 1996 60,177 22,050 3,285 85,512
Reconciliations to Total Revenues:
Difference between Amount of
Unbilled Revenue December 1995 and
December 1996 (2,512) 1,749 266 (497)
------ ------ ----- ------
57,665 23,799 3,551 85,015
====== ====== ===== ======
</TABLE>
<PAGE> 26
PAGE 26
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
<TABLE>
<CAPTION>
DIRECT INDIRECT COMPENSATION
COST COST FOR USE TOTAL EXCESS OR AMOUNT
NAME OF NONASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED
- ---------------------------- ------- -------- ------------ ----- ---------- ------
<S> <C> <C> <C> <C> <C> <C>
458-1 458-2 458-3 458-4
------- -------- ------------ ----------
$000 $000 $000 $000 $000
NONE
</TABLE>
INSTRUCTION: Provide a brief description of the services rendered to each
nonassociate company:
<PAGE> 27
PAGE 27
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
Schedule XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
<TABLE>
<CAPTION>
ASSOCIATE COMPANY NONASSOCIATE COMPANY
CHARGES CHARGES
------------------------- -------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT DIRECT INDIRECT
COST COST TOTAL COST COST TOTAL
- ------------------------------------------------------ ------ -------- ----- ------ -------- -----
<S> <C> <C> <C> <C> <C> <C>
$000 $000 $000 $000 $000 $000
920 Salaries and Wages 20,729 14,931 35,660 0 0 0
921 Office Supplies and Expenses 5,416 2,557 7,973 0 0 0
922 Administrative Expenses Transferred -
Credit 3,088 (5,390) (2,302) 0 0 0
923 Outside Services Employed 8,370 1,882 10,252 0 0 0
924 Property Insurance 8 187 195 0 0 0
925 Injuries and Damages 75 71 146 0 0 0
926 Employee Pensions and Benefits 4,835 6,802 11,637 0 0 0
928 Regulatory Commission Expense 1 0 1 0 0 0
930.1 General Advertising Expenses 1 61 62 0 0 0
930.2 Miscellaneous General Expense 1,801 928 2,729 0 0 0
931 Rents 7,215 505 7,720 0 0 0
932 Maintenance of Structure and Equipment 1,266 1,062 2,328 0 0 0
403 Depreciation and Amortization Expense 4,544 1,167 5,711 0 0 0
408 Taxes Other Than Income Taxes 316 2,787 3,103 0 0 0
409 Income Taxes 0 3,882 3,882 0 0 0
410 Provision for Deferred Income Taxes 0 2,368 2,368 0 0 0
411 Provision for Deferred Income Taxes -
Credit 0 (4,028) (4,028) 0 0 0
411.5 Investment for Credit 0 0 0 0 0 0
421 Miscellaneous Income or Loss 0 (5,852) (5,852) 0 0 0
426.1 Donations 0 136 136 0 0 0
426.5 Other Deductions 0 0 0 0 0 0
427 Interest on Long-Term Debt 0 0 0 0 0 0
431 Other Interest Expense 0 (258) (258) 0 0 0
- ------------------------------------------------------ ------ ------ ------ ------- -----
Instructions: Total cost of service will equal for
associate and nonassociate companies
the total amount billed under their
separate analysis of billing schedules.
- ------------------------------------------------------ ------ ------ ------ ------ ------- -----
Total Expenses 57,665 23,798 81,463 0 0 0
------ ------ ------ ------ ------- -----
Compensation for Use of Equity Capital 2,026
------
430 Interest on Debt to Associate Companies 1,526
------
Total Cost of Service 85,015
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TOTAL CHARGES FOR
SERVICE
---------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT
COST COST TOTAL
- ------------------------------------------------------ ------ -------- -----
<S> <C> <C> <C>
$000 $000 $000
920 Salaries and Wages 20,729 14,931 35,660
921 Office Supplies and Expenses 5,416 2,557 7,973
922 Administrative Expenses Transferred -
Credit 3,088 (5,390) (2,302)
923 Outside Services Employed 8,370 1,882 10,252
924 Property Insurance 8 187 195
925 Injuries and Damages 75 71 146
926 Employee Pensions and Benefits 4,835 6,802 11,637
928 Regulatory Commission Expense 1 0 1
930.1 General Advertising Expenses 1 61 62
930.2 Miscellaneous General Expense 1,801 928 2,729
931 Rents 7,215 505 7,720
932 Maintenance of Structure and Equipment 1,266 1,062 2,328
403 Depreciation and Amortization Expense 4,544 1,167 5,711
408 Taxes Other Than Income Taxes 316 2,787 3,103
409 Income Taxes 0 3,882 3,882
410 Provision for Deferred Income Taxes 0 2,368 2,368
411 Provision for Deferred Income Taxes -
Credit 0 (4,028) (4,028)
411.5 Investment for Credit 0 0 0
421 Miscellaneous Income or Loss 0 (5,852) (5,852)
426.1 Donations 0 136 136
426.5 Other Deductions 0 0 0
427 Interest on Long-Term Debt 0 0 0
431 Other Interest Expense 0 (258) (258)
- ------------------------------------------------------ ------ ------ ------
Instructions: Total cost of service will equal for
associate and nonassociate companies
the total amount billed under their
separate analysis of billing schedules.
- ------------------------------------------------------ ------ ------ ------
Total Expenses 57,665 23,798 81,463
------ ------ ------
Compensation for Use of Equity Capital 2,026
------
430 Interest on Debt to Associate Companies 1,526
------
Total Cost of Service 85,015
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 28
PAGE 28
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
----------------------------------------------------------------
AIR COMMON/
TOTAL TRANS- CLIENT CORPORATE CONSOLIDATION
DESCRIPTION OF ITEMS AMOUNT OVERHEAD ACCOUNTING PORTATION SUPPORT SYSTEMS
-------------------- ------ -------- ---------- --------- ------- ------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 35,660 14,931 39 603 506 1,362 1,150
921 Office Supplies and Expenses 7,973 2,557 3 679 73 31 399
922 Administrative Expenses
Transferred - Credit (2,302) (5,390) 0 2 41 175 139
923 Outside Services Employed 10,252 1,882 1 72 241 264 62
924 Property Insurance 195 187 0 0 0 0 0
925 Injuries and Damages 146 71 0 93 0 0 0
926 Employee Pensions and Benefits 11,637 6,802 1 268 0 0 0
928 Regulatory Commission Expense 1 0 0 0 0 0
930.1 General Advertising Expense 62 61 0 0 0 0 0
930.2 Miscellaneous General Expense 2,729 928 3 1,190 18 778 283
931 Rents 7,720 505 0 887 0 0 0
932 Maintenance of Structures and
Equipment 2,328 1,062 0 (366) 0 239 0
403 Depreciation and Amortization
Expense 5,711 1,167 0 0 0 0 0
408 Taxes Other Than Income Taxes 3,103 2,787 0 0 0 0 0
409 Income Taxes 3,882 3,882 0 0 0 0 0
410 Provision for Deferred Income
Taxes 2,368 2,368 0 0 0 0 0
411 Provision for Deferred Income
Taxes - Credit (4,028) (4,028) 0 0 0 0 0
411.5 Investment Tax Credit 0 0 0 0 0 0 0
421 Miscellaneous Income or Loss (5,852) (5,852) 0 0 0 0 0
426.1 Donations 136 136 0 0 0 0 0
426.5 Other Deductions 0 0 0 0 0 0 0
427 Interest on Long-Term Debt 0 0 0 0 0 0 0
430 Interest on Debt to Associate
Companies 1,526 1,526 0 0 0 0 0
431 Other Interest Expense (258) (258) 0 0 0 0 0
- ---------------------------------------
Instruction:
Indicate each department
or service function.
(See Instruction 01-3
General Structure of
Accounting System:
Uniform System Account)
- --------------------------------------- ------ ------ -- ----- --- ----- -----
Total Expenses 82,989 25,324 47 3,428 879 2,849 2,033
- --------------------------------------- ---------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
------------------------------
CORPORATE
COMMUNI- CORPORATE
DESCRIPTION OF ITEMS CATIONS TREASURY
-------------------- ------- --------
<S> <C> <C>
920 Salaries and Wages 319 598
921 Office Supplies and Expenses 89 60
922 Administrative Expenses
Transferred - Credit 33 142
923 Outside Services Employed 1,044 262
924 Property Insurance 0 0
925 Injuries and Damages 0 0
926 Employee Pensions and Benefits 0 0
928 Regulatory Commission Expense 0 0
930.1 General Advertising Expense 0 0
930.2 MisCellaneous General Expense 158 226
931 Rents 3 1
932 Maintenance of Structures and
Equipment 3 6
403 Depreciation and Amortization
Expense 0 0
408 Taxes Other Than Income Taxes 0 0
409 Income Taxes 0 0
410 Provision for Deferred Income
Taxes 0 0
411 Provision for Deferred Income
Taxes - Credit 0 0
411.5 Investment Tax Credit 0 0
421 Miscellaneous Income or Loss 0 0
426.1 Donations 0 0
426.5 Other Deductions 0 0
427 Interest on Long-Term Debt 0 0
430 Interest on Debt to Associate
Companies 0 0
431 Other Interest Expense 0 0
- ---------------------------------------
Instruction:
Indicate each department
or service function.
(See Instruction 01-3
General Structure of
Accounting System:
Uniform System Account)
- --------------------------------------- ----- -----
Total Expenses 1,649 1,295
- --------------------------------------- ------------------
</TABLE>
<PAGE> 29
PAGE 29
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
ENTERPRISE ENVIRON- FINANCE MC NETWORK
Account MULTIMEDIA MENTAL GOVERNMENT INVESTOR HUMAN INTERNAL BUILDING COMPUTER
Number COMMUNICATIONS AFFAIRS EXECUTIVE AFFAIRS RELATIONS RESOURCES AUDIT LEGAL SERVICES SERVICES
------ -------------- ------- --------- ------- --------- --------- ----- ----- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
920 600 302 1,814 248 323 1,226 1,322 1,007 2 2,935
921 1,796 50 134 72 81 71 169 194 0 1,060
922 38 18 127 70 186 0 1,831
923 31 30 141 0 400 661 6 1,289 0 1,093
924 148 7 1,322 0 0 0 0 0 0 0
925 0 0 0 0 0 0 0 0 0 0
926 0 0 0 0 0 99 0 0 0 0
928 0 0 0 0 0 0 0 0 0 0
930.1 0 0 0 1 0 0 0 0 0 0
930.2 0 0 0 153 20 280 130 139 0 (2,794)
931 90 28 799 336 0 70 30 0 0 5,837
932 27 0 10 0 1 0 0 0 0 1,328
403 41 0 0 0 0 0 0 0 0 4,545
408 0 0 0 0 0 0 0 0 0 247
409 0 0 0 0 0 0 0 0 0 0
410 0 0 0 0 0 0 0 0 0 0
411 0 0 0 0 0 0 0 0 0 0
0 0 0
411.5 0 0 0 0 0 0 0 0 0 0
421 0 0 0 0 0 0 0 0 0 0
426.1 0 0 0 0 0 0 0 0 0 0
426.5 0 0 0 0 0 0 0 0 0 0
427 0 0 0 0 0 0 0 0 0 0
430 0 0 0 0 0 0 0 0 0 0
431 0 0 0 0 0 0 0 0 0 0
- ------------- ----- --- ----- --- --- ---- ----- ----- - ------
Total Expenses 2,733 417 4,220 848 843 2,534 1,727 2,815 2 16,082
----- --- ----- --- --- ---- ----- ----- - ------
</TABLE>
<PAGE> 30
PAGE 30
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
RESTON FINANCIAL
Account OTHER RISK BUILDING STRATEGIC PLANNING &
Number GENERAL PAYROLL MANAGEMENT SERVICES PLANNING REPORTING TAX
- ------------- -------- --------- -------------- ----------- ---------- ---------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
$000 $000 $000 $000 $000 $000 $000
920 4,282 361 295 43 360 532 500
921 68 0 59 61 151 79 36
922 0 0 31 0 37 31 76
923 146 0 145 139 262 70 649
924 0 0 7 0 0 0 0
925 0 0 (18) 0 0 0 0
926 4,467 0 0 0 0 0 0
928 0 0 0 0 0 0 0
930.1 0 0 0 0 0 0 0
930.2 86 62 0 3 44 89 29
931 0 0 57 3 3 0 7
932 0 0 0 12 0 0 0
403 0 0 0 0 0 0 0
408 0 0 0 0 0 0 0
409 0 0 0 0 0 0 0
410 0 0 0 0 0 0 0
411 0 0 0 0 0 0 0
411.5 0 0 0 0 0 0 0
421 0 0 0 0 0 0 0
426.1 0 0 0 0 0 0 0
426.5 0 0 0 0 0 0 0
427 0 0 0 0 0 0 0
430 0 0 0 0 0 0 0
431 0 0 0 0 0 0 0
- ------------- -------- --------- ------------ ----------- ---------- ---------- ---------
Total Expenses 9,049 423 576 261 857 801 1,297
-------- --------- ------------ ----------- ---------- ---------- ---------
</TABLE>
<PAGE> 31
Page 31
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DEPARTMENTAL SALARY EXPENSE
------------------------------------------------- PERSONNEL
INCLUDED IN AMOUNTS BILLED TO NUMBER
NAME OF DEPARTMENT ----------------------------- ---------
Indicate each department or TOTAL PARENT OTHER NON END OF
service function AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
- ----------------------------- ------- ------- ---------- ---------- ----
<S> <C> <C> <C> <C> <C>
$000 $000 $000 $000
Accounting 39 0 39 - 12
Air Transportation 603 0 603 - 7
Client Support 506 0 506 12
Common/Corporate Systems 1,362 11 1,351 49
Consolidation 1,150 149 1,001 19
Corporate Communications 319 1 318 - 6
Corporate Treasury 598 43 555 - 7
Enterprise Multimedia
Communication 600 0 600 45
Environmental Affairs 302 9 293 - 4
Executive 1,814 39 1,775 - 10
Finance & Investor Relations 323 12 311 - 6
Government Affairs 248 0 248 - 4
Human Resources 1,226 2 1,224 - 29
Internal Audit 1,322 4 1,318 - 23
Legal 1,007 108 899 - 12
Marble Cliff Building
Services 2 1 1 19
Network Computer Services 2,935 0 2,935 71
Other General 4,282 0 4,282 0
Payroll 361 7 354 14
Risk Management 295 18 277 - 5
Reston Building Services 43 4 39 8
Strategic Planning 360 0 360 6
Financial Planning &
Reporting 532 1 531 - 7
Tax 500 23 477 8
---------- ---------- ------------ ------------ ------------
Total 20,729 432 20,297 - 383
---------- ---------- ------------ ------------ ------------
</TABLE>
<PAGE> 32
Page 32
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- -------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
- -------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by subaccount of outside services employed.
If the aggregate amounts paid to any one payee and included
within one subaccount is less than $100,000, only the aggregate
number and the amount of all such payments included within the
subaccount need be shown. Provide a subtotal for each type of
service.
<TABLE>
<CAPTION>
RELATIONSHIP
"A"= ASSOCIATE
FOR WHOM PURCHASED ADDRESS "NA"= NON-ASSOCIATE AMOUNT
- ------------------ ------- ------------------- ------
<S> <C> <C> <C>
$000
See schedule 923-A 10,252
</TABLE>
<PAGE> 33
PAGE 33
SCHEDULE 923-A
COLUMBIA GAS SYSTEM SERVICE CORPORATION
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
<TABLE>
<CAPTION>
RELATIONSHIP
"A"=ASSOCIATE AMOUNT
"NA"=NON ---------------------
FOR WHOM PURCHASED ADDRESS ASSOCIATE $000 $000
- ------------------------------- --------------------------------------------------- -------------- -------- ---------
<S> <C> <C> <C> <C>
1-Special Services - Legal
Leboeuf Lamb Greene 125 W.55th Street New York., N.Y. 100195389 NA 953
Akin Gump Straus Haver 711 Louisiana St Houston, Tx. 77002 NA 218
23 Organizations 244
--------
Total Special Services - Legal 1,415
2-Special Services - Audit
Arthur Andersen & Co 1345 Avenue of the Americas, New York, NY 10105 NA 75
--------
Total Special Services - Audit 75
3-Special Services - Other
Gartner Group P O Box 73783, Rochester, NY 146737382 NA 381
Challenger Gray & Christmas P o Box 324, Winnetka, Il. 60093 NA 354
Bowne of New York City 345 Hudson Street, New York,NY 100144502 NA 294
Jackson Cross 1001 Jefferson Plaza Suite 104, Wilmington, De 19801 NA 275
Case Hoyt Corporation P .O. Box 522625, Miami, Fl. 33152 NA 264
Placers P O Box 15621, Wilmington, De 198505621 NA 252
Advantis P.O. Box 98880, Chicago, Il.l 60693 NA 221
Harris Trust P O Box 1017 Wall Steet Station, New York, NY 10268 NA 211
CDRS Chicago P O Box 91753, Chicago,Il 60693 NA 191
Shandwick Public Affairs P O Box 3075, Buffalo, NY 14240 NA 185
Dawson Personnel P O Box 690662, Cincinnati, Oh 452690662 NA 180
Knowledge Link Dept L - 1715, Columbus, Oh 432601715 NA 153
Lamalie Amrop International P O Box 340468, Tampa Fl 336940468 NA 137
PNC Bank P O Box 641338, Pittsburgh, Pa 152641338 NA 131
Arnold Saks Associates 350 E. 81st Street, New York, NY 10028 NA 123
Cyborg Users Association 2 N Riverside Plaza Suite 2400, Chicago, Il 60606 NA 117
Columbia Gas of Pennsylvania P O Box 117, Columbus, Oh 432160117 A 111
McCardle Printing 800 Commerce Dr., Upper Marlboro, Md 20772 NA 110
Office Movers 6810 Deerpath Rd #100, Baltimore, Md 212274897 NA 107
Pinkertons's Inc. P O Box 7247 Dept 8256, Philadelphia, Pa 191708256 NA 101
491 Organizations 2,462
Total Special Services - Other 6,360
</TABLE>
<PAGE> 34
PAGE 34
SCHEDULE 923-A
COLUMBIA GAS SYSTEM SERVICE CORPORATION
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
<TABLE>
<CAPTION>
RELATIONSHIP
"A"=ASSOCIATE AMOUNT
"NA"=NON ----------------------------
FOR WHOM PURCHASED ADDRESS ASSOCIATE $000 $000
- -------------------------------------- ----------------------------------------------- --------- ------------- -------------
<S> <C> <C> <C> <C>
4-Special Services - Tax
Jones Day Reavis & Pogue 1900 Huntington Center, Columbus, Oh 43215 NA 175
Stroock Stroock & Lavan 180 Maiden Lane, New York, NY 10038 NA 252
4 Organizations 66
------------
Total Special Services - Tax 493
5- Special Services - Consulting
Gem Energy Consulting 6100 Hillcroft Suite 605, Houston Tx. 77081 NA 398
Marketing Corporation of America PO Box 3938, Boston, Ma. 022413938 NA 243
Towers Perrin P.O. Box 8500, S-6110 , Philadelphia, Pa. 19178 NA 143
Logan Wallingford 124 Ponds Lane, Wilmington, De. 19807 NA 243
48 Organizations 882
------------
Total Special Services - Consulting 1,909
Total All Special Services 10,252
============
</TABLE>
<PAGE> 35
Page 35
ANNUAL REPORT OF COLUMBIA GAS SERVICE CORPORATION
For the Year Ended December 31, 1996
- ------------------------------------------------------------------------
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
- -------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be
limited to $25,000.
- -------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AMOUNT
- --------------------- --------------
<S> <C>
$000
Employee Relocation Expense 4,664
Other Post-Employment Benefits 2,415
Medical Expense Plan 1,811
Employee Retirement Expense 1,080
Thrift Plan 844
Pension Restoration Plan 384
Dental Assistance Plan 182
Employee Cafeteria Subsidy 123
Long-Term Disability Insurance 122
Employee Physicals 44
Educational Assistance 31
Group Life Insurance (188)
Miscellaneous 125
--------------
Total 11,637
- -------------------------------------------------------------------------
</TABLE>
<PAGE> 36
Page 36
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- -------------------------------------------------------------------------------
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
- -------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses," classifying the items
according to the nature of the advertising and as defined in
the account definition. If a particular class includes an
amount in excess of $3,000 applicable to a single payee, show
separately the name of the payee and the aggregate amount
applicable thereto.
<TABLE>
<CAPTION>
- ------------------------------------------------------------------------------------------------
DESCRIPTION NAME OF PAYEE AMOUNT
- ------------------------------- ----------------------- ------------ -----------
$000
<S> <C> <C>
Employee Recruiting Knowledge Workers, Inc. 38
Employee Recruiting The Columbus Dispatch 8
Employee Recruiting Washington Post 8
Employee Recruiting Stacking, Inc. 6
Employee Recruiting Miscellaneous (2) 2
-----------
TOTAL 62
- ------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 37
PAGE 37
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses," classifying such expenses
according to their nature. Payments and expenses permitted by
Section 321 (b)(2) of the Federal Election Campaign Act, as
amended by Public Law 94-283 in 1976 (2 U.S.C. Section 441
(b)(2) shall be separately classified.
<TABLE>
<CAPTION>
- -------------------------------------------------------
DESCRIPTION AMOUNT
- --------------------------------- ------
$000
<S> <C>
Aircraft Service 1,791
Employment Agreement 481
Courier Services 121
Dues and Memberships - Company 118
Political Activities 74
Employee Recruiting - General 30
Bank Service Charges 19
Other 95
------
TOTAL 2,729
- -------------------------------------------------------
</TABLE>
<PAGE> 38
PAGE 38
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
RENTS
ACCOUNT 931
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 931,
"Rents", classifying such expenses by major grouping of
property, as defined in the account definition of the Uniform
System of Accounts.
<TABLE>
<CAPTION>
- ------------------------------------
TYPE OF PROPERTY AMOUNT
- ------------------------- ------
$000
<S> <C>
Data Processing 5,530
Office Space 843
Air Transportation 770
Auto and General Tools 98
Communications 80
Miscellaneous 399
------
TOTAL 7,720
- ------------------------------------
</TABLE>
<PAGE> 39
PAGE 39
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide an analysis of Account 408, "Taxes Other Than Income
Taxes." Separate the analysis into two groups: (1) other than
U.S. Government taxes, and (2) U.S. Government taxes. Specify
each of the various kinds of taxes and show the amounts
thereof. Provide a subtotal for each class tax.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
AMOUNT
- -------------------------------------------- --------
$000
<S> <C>
(1) Other than U.S. Government Taxes:
Property 1,114
Unemployment 49
License or Franchise 3
--------
Total - other 1,166
(2) U.S. Government Taxes:
Federal Insurance Contribution 1,905
Unemployment 30
Environmental 1
Miscellaneous 1
--------
Total - Federal 1,937
TOTAL 3,103
- --------------------------------------------------------
</TABLE>
<PAGE> 40
PAGE 40
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
DONATIONS
ACCOUNT 426.1
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 426-1,
"Donations," classifying such expenses by its purpose. The
aggregate number and amount of all items of less than $3,000
may be shown in lieu of details.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
----------------------- ------------------- ------
$000
<S> <C> <C>
Columbia Gas Foundation Community Welfare 107
Junior Achievement Community Welfare 4
Miscellaneous (25) Community Welfare 25
----
TOTAL 136
- ----------------------------------------------------------------
</TABLE>
<PAGE> 41
PAGE 41
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
OTHER DONATIONS
ACCOUNT 426.5
- --------------------------------------------------------------------------------
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5,
"Other Deductions," classifying such expenses according to
their nature.
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
DESCRIPTION AMOUNT
- --------------------------------------- ------
$000
<S> <C>
NONE
------
TOTAL NONE
- --------------------------------------------------------
</TABLE>
<PAGE> 42
PAGE 42
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
- --------------------------------------------------------------------------------
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish
particulars as to any significant increase in services
rendered or expenses incurred during the year. Notes relating
to financial statements shown elsewhere in this report may be
indicated here by reference.
- --------------------------------------------------------------------------------
For additional notes, see Page 22, Notes to Financial Statements.
1. SUMMARY OF SIGNIFICANT INCREASE IN SERVICES OR EXPENSES
a. Salaries and Wages
Salaries and wages increased over 1995 as a result of the severance paid
to 130 employees who were severed as part of the Corporation's
reorganization plan.
b. Employee Pensions and Benefits
Employee pensions and benefits increased over 1995 as a result of the
pensions and benefits paid to employees who took lump sum distributions
or retired as part of the Corporation's reorganization plan.
- --------------------------------------------------------------------------------
<PAGE> 43
COLUMBIA GAS SYSTEM SERVICE CORPORATION
ORGANIZATION CHART
<TABLE>
<CAPTION>
Chairman, President & CEO
RICHARD, III
- -----------------------------------------------------------------------------------------------------------------------------------
VP Strategic SR VP Human Senior VP Services Senior VP & CFO Senior VP & Chief VP Governmental VP
Planning Resources Legal Officer Affairs Communications
HARVEY FONT MAGLEY O'DONNELL SCHWOLSKY CASALI JENNRICH
<S> <C> <C> <C> <C> <C> <C>
Strategic Corporate Air Consolidation Environmental Governmental Corporate
Planning Benefits Transportation Affairs Affairs Communications
Human Client Corporate Legal
Resources Support Treasury
Training Common/ Finance Risk
Corporate Systems & Investor Management
Relations
Enterprise Financial
Multimedia Planning &
Communications Reporting
Marble Cliff Internal
Building Services Audit
Reston Building Tax
Services
Accounting
Payroll
</TABLE>
<PAGE> 44
PAGE 44
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
METHODS OF ALLOCATION
- --------------------------------------------------------------------------------
The following Basis of Allocation have been approved by the SEC as a
method of allocating Job Order charges and convenience payments directly to
Associate Companies.
- Gross Fixed Assets and Total Operating Expenses
- Gross Fixed Assets
- Distribution Property and Distribution Expenses
- Transmission Property and Transmission Expenses
- Total Operating Expenses and Gross Depreciable Property
- Gross Depreciable Property
- Number of Automobile Units (Owned and Leased)
- Number of Retail Customers
- Number of Regular Employees
- Fixed Allocation
- Number of Transportation Customers
- Number of Commercial Customers
- Number of Residential Customers
- Number of High Pressure Customers
- Number of Gas Purchase Customers
- Number of Charts Processed
- Direct Costs
- Property Values
- Number of Directors and Officers
- Household Moves
- Payroll
- Number of Nurses
- Total Actuarial Costs
- Covered Compensation
- Office Occupancy
- Total Capitalization
- Revenues
- Throughput Volumes
- Number of Customers
- Number of Employees
<PAGE> 45
PAGE 45
ANNUAL REPORT OF COLUMBIA GAS SYSTEM SERVICE CORPORATION
For the Year Ended December 31, 1996
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
- --------------------------------------------------------------------------------
COMPENSATION FOR USE OF CAPITAL
SUMMARY OF BILLING TO ASSOCIATE COMPANIES
<TABLE>
<CAPTION>
Direct &
Allocated Compensation
Company Labor Billed
- ------------------------------------------ --------- ------------
$ 000 $ 000
<S> <C> <C>
The Columbia Gas System, Inc. 648 153
Columbia Gas Development Corporation 64 18
Columbia Gulf Transmission Company 1,517 323
Columbia Energy Services 184 42
Columbia Propane Corporation 54 12
Tristar Ventures Corporation 143 32
Columbia LNG Corporation 76 17
Columbia Coal Gasification Corporation 8 2
Columbia Network Services Corporation 4 --
Columbia Insurance Corporation, Ltd. 2 --
Columbia Gas of Kentucky, Inc. 484 105
Columbia Gas of Ohio, Inc. 3,586 779
Columbia Gas of Maryland, Inc. 154 34
Columbia Gas of Pennsylvania, Inc. 1,405 305
Commonwealth Gas Services, Inc. 680 147
Commonwealth Propane, Inc. 236 52
Tristar Capital Corporation 4 1
Columbia Gas Transmission Corporation 5,245 1,116
Columbia Atlantic Trading Corporation 7 2
Columbia Natural Resources, Inc. 676 145
------- ------
Total 15,177 3,285
======= ======
</TABLE>
The above is a summary of the Compensation for Use of Capital billed to
each company. Attached is a sample of the annual statement sent to each
associate company. Since they are identical except for the amount billed, the
summary is included in lieu of twenty individual statements (see page 46).
- --------------------------------------------------------------------------------
<PAGE> 46
PAGE 46
COLUMBIA GAS SYSTEM SERVICE CORPORATION
COMPENSATION FOR USE OF CAPITAL
---------------------------------------
BILLED TO
COLUMBIA PROPANE CORPORATION
DURING 1996
---------------------------------------
<TABLE>
<CAPTION>
SYSTEM MONTHLY MANAGEMENT
INTEREST DIRECT & RATE D&A LABOR COMPENSATION
BILLING TO NET TOTAL ALLOCATED COL. 3/ BILLED TO BILLED
MONTH PARENT INCOME COMPENSATION LABOR COL. 4 CPC COL. 5 x COL. 6
- ----------- ----------- ---------- ------------ ------------ -------- ---------- -----------------
(1) (2) (3) (4) (5) (6) (7)
<S> <C> <C> <C> <C> <C> <C> <C>
JANUARY 98,023.02 174,169.00 272,192.02 877,230.56 31.02856 4,024.49 1,248.74
FEBRUARY 97,828.65 168,786.00 266,614.65 1,039,478.01 25.64890 3,713.34 952.43
MARCH 84,667.38 168,786.00 253,453.38 1,134,636.63 22.33785 3,526.43 787.73
APRIL 91,555.02 168,786.00 260,341.02 1,117,470.26 23.29736 3,492.73 813.71
MAY 80,652.38 168,786.00 249,438.38 1,086,803.62 22.95156 3,060.00 702.32
JUNE 84,088.19 168,786.00 252,874.19 1,044,627.86 24.20711 3,424.87 829.06
JULY 107,326.56 168,786.00 276,112.56 2,058,442.53 13.41366 7,677.39 1,029.82
AUGUST 172,485.44 168,786.00 341,271.44 1,103,986.46 30.91265 3,958.55 1,223.69
SEPTEMBER 110,943.16 168,786.00 279,729.16 1,066,377.10 26.23173 3,353.24 879.61
OCTOBER 107,424.61 168,786.00 276,210.61 2,103,081.11 13.13362 9,556.26 1,255.08
NOVEMBER 111,131.33 168,786.00 279,917.33 1,436,183.36 19.49036 4,228.07 824.07
DECEMBER 107,925.03 168,786.00 276,711.03 1,109,022.94 24.95088 3,638.02 907.72
------------ ------------ ------------ ------------- -------- --------- ---------
1,254,050.77 2,030,815.00 3,284,865.77 15,177,340.44 21.64322 53,653.39 11,453.98
============ ============ ============ ============= ======== ========= =========
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 47
PAGE 47
SIGNATURE
Pursuant to the requirements of the Public Utility Holding Company Act of 1935
and the rules and regulations of the Securities and Exchange Commission issued
thereunder, the undersigned company has duly caused this report to be signed on
its behalf by the undersigned officer thereunto duly authorized.
COLUMBIA GAS SYSTEM SERVICE CORPORATION
By: /s/ D. Furlano
-------------------------------------
D. Furlano
Controller
Date: April 9, 1997
- --------------------------------------------------------------------------------
