|
|
|
|
|
|
|
|
|
|
|
|
|
<PAGE> 1
Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
For the Period
Beginning January 1, 1997 and Ending December 31, 1997
To The
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
COLUMBIA ENERGY GROUP SERVICE CORPORATION
(Exact Name of Report Company)
A Subsidiary Service Company
("Mutual" or "Subsidiary")
Data 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)
COLUMBIA ENERGY GROUP
(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 ENERGY GROUP SERVICE CORPORATION
1997
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
------- ------
$000 $000
<S> <C> <C> <C> <C>
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) 47,737 48,725
107 Construction work in progress (Schedule II) -- --
------- -------
Total Property 47,737 48,725
------- -------
108 Less accumulated provision for depreciation and
amortization of service company property
(Schedule III) 25,176 25,981
------- -------
Net Service Company Property 22,561 22,744
------- -------
INVESTMENTS
123 Investments in associate companies (Schedule IV) -- --
124 Other investments (Schedule IV) -- --
------- -------
Total Investments -- --
------- -------
CURRENT AND ACCRUED ASSETS
131 Cash 15 10,687
134 Special deposits 171 171
135 Working funds 15 23
136 Temporary cash investments (Schedule IV) -- 550
141 Notes receivable -- 364
143 Accounts receivable 13 (502)
144 Accumulated provision for uncollectible accounts -- --
146 Accounts receivable from associate companies
(Schedule V) 44,278 9,798
152 Fuel stock expenses undistributed (Schedule VI) -- --
154 Materials and supplies -- --
163 Stores expense undistributed (Schedule VII) -- --
165 Prepayments 135 60
174 Miscellaneous current and accrued assets
(Schedule VIII) -- --
------- -------
Total Current and Accrued Assets 44,627 21,151
------- -------
DEFERRED DEBITS
181 Unamortized debt expense -- --
184 Clearing accounts 6,449 6,339
186 Miscellaneous deferred debits (Schedule IX) 14,838 17,182
188 Research, development, or demonstration
expenditures (Schedule X) -- --
190 Accumulated deferred income taxes 3,367 2,676
------- -------
Total Deferred Debits 24,654 26,197
------- -------
TOTAL ASSETS AND OTHER DEBITS 91,842 70,092
======= =======
</TABLE>
<PAGE> 6
PAGE 6
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
SCHEDULE I - COMPARATIVE BALANCE SHEET
<TABLE>
<CAPTION>
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
-----------------------
CURRENT PRIOR
------- -------
$000 $000
<S> <C> <C> <C> <C>
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 300 13,000
211 Miscellaneous paid-in-capital (Schedule XI) 12,700 --
215 Appropriated retained earnings (Schedule XI) -- --
216 Unappropriated retained earnings (Schedule XI) 187 174
------- -------
Total Proprietary Capital 13,187 13,174
------- -------
LONG-TERM DEBT
223 Advances from associate companies (Schedule XII) 16,043 16,043
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 16,043
------- -------
CURRENT AND ACCRUED LIABILITIES
231 Notes payable -- --
232 Accounts payable 16,023 11,395
233 Notes payable to associate companies (Schedule XIII) -- --
234 Accounts payable to associate companies (Schedule XIII) 24,435 4,157
236 Taxes accrued (1,857) 41
237 Interest accrued -- 69
238 Dividends declared -- --
241 Tax collections payable 2 150
242 Miscellaneous current and accrued liabilities (Schedule XIII) 12,886 13,499
------- -------
Total Current and Accrued Liabilities 51,489 29,311
------- -------
DEFERRED CREDITS
253 Other deferred credits 8,901 10,501
255 Accumulated deferred investment tax credits -- --
------- -------
Total Deferred Credits 8,901 10,501
------- -------
282 ACCUMULATED DEFERRED INCOME TAXES 2,222 1,063
------- -------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 91,842 70,092
======= =======
</TABLE>
<PAGE> 7
PAGE 7
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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
-----------
SERVICE COMPANY PROPERTY
<S> <C> <C> <C> <C> <C> <C>
Account:
301 ORGANIZATION -- -- -- -- --
303 MISCELLANEOUS
INTANGIBLE PLANT -- -- -- -- --
304 LAND AND LAND RIGHTS 62 -- -- -- 62
305 STRUCTURES AND
IMPROVEMENTS 16,264 310 -- -- 16,574
306 LEASEHOLD IMPROVEMENTS -- -- -- -- --
307 EQUIPMENT (2) 26,915 3,854 (5,845) -- 24,924
308 OFFICE FURNITURE AND
EQUIPMENT 5,093 1,163 (470) -- 5,786
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT -- -- -- -- --
310 AIRCRAFT AND AIRPORT
EQUIPMENT 248 -- -- -- 248
311 OTHER SERVICE COMPANY
PROPERTY (3) 143 -- -- -- 143
------ ------ ------ ------ ------
SUB-TOTAL 48,725 5,327 (6,315) -- 47,737
------ ------ ------ ------ ------
107 CONSTRUCTION WORK IN
PROGRESS (4) -- -- -- -- --
------ ------ ------ ------ ------
TOTAL 48,725 5,327 (6,315) -- 47,737
====== ====== ====== ====== ======
</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
<S> <C> <C> <C>
307-1 Telecommunications Equipment - 115
307-2 Communications Management Center - 1,262
307-3 Data Processing Equipment - 62
307-4 Print Services Equipment - 13
307-5 Research & Laboratory Equipment - 448
307-6 Telecommunications Equipment - after 1979 1,793 3,597
307-7 EDP Equipment - 4 years 2,001 14,915
307-8 EDP Equipment - 10 years - 4
307-9 Personal Computer and Peripheral Equipment 16 2,382
307-10 Distribution Research Equipment - 340
307-11 Electrical Supply Generators 44 1,786
------ ------
TOTAL 3,854 24,924
----- ----- ------
</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 ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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
----------- ------- --- ----------- ----------- -------
$000 $000 $000 $000 $000
<S> <C> <C> <C> <C> <C> <C>
ACCOUNT
301 ORGANIZATION - - - - -
303 MISCELLANEOUS INTANGIBLE
PLANT - - - - -
304 LAND AND LAND RIGHTS - - - - -
305 STRUCTURES AND
IMPROVEMENTS 4,674 328 - - 5,002
306 LEASEHOLD IMPROVEMENTS - -
307 EQUIPMENT 18,504 4,789 (5,817) - 17,476
308 OFFICE FURNITURE AND
FIXTURES 2,447 330 (463) - 2,314
309 AUTOMOBILES, OTHER
VEHICLES AND RELATED
GARAGE EQUIPMENT - - - - -
310 AIRCRAFT AND AIRPORT
EQUIPMENT 248 - - - 248
311 OTHER SERVICE COMPANY
PROPERTY 108 28 - - 136
------ ----- ------- --- ------
TOTAL 25,981 5,475 (6,280) - 25,176
====== ===== ======= === ======
</TABLE>
(1) PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL
NOT APPLICABLE
<PAGE> 10
PAGE 10
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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 550 None
---- ----
TOTAL 550 None
==== ====
</TABLE>
<PAGE> 11
PAGE 11
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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 Energy Group Money Pool 7,246 -
Columbia Energy Group 832 73
Columbia Gulf Transmission Company 2 2,199
Columbia Energy Services 48 1,663
Columbia Propane Corporation - 1,516
Columbia Electric Corporation 199 206
Columbia LNG Corporation 13 186
Columbia Coal Gasification Corporation 2 -
Columbia Network Services Corporation 59 14
Columbia Insurance Corporation, Ltd. 6 41
Columbia Gas of Kentucky, Inc. (276) 1,949
Columbia Gas of Ohio, Inc. 804 11,678
Columbia Gas of Maryland, Inc. 69 372
Columbia Gas of Pennsylvania, Inc. 125 5,503
Columbia Gas of Virginia, Inc. 8 1,773
Commonwealth Propane, Inc. 11 -
TriStar Capital Corporation - 2
Columbia Gas Transmission Corporation 636 14,913
Columbia Atlantic Trading Corporation - 12
Columbia Natural Resources, Inc. 14 2,178
--------- ----------
TOTAL 9,798 44,278
========= ==========
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS:
TOTAL
PAYMENTS
--------
$000
See Schedule V-A, page 12
TOTAL PAYMENT 981,520
=======
</TABLE>
<PAGE> 12
PAGE 12
SCHEDULE V-A
COLUMBIA ENERGY GROUP SERVICE CORPORATION
Convenience & Accommodation Payments
For the Year Ended December 31, 1997
<TABLE>
<CAPTION>
Employee Employee Corporate PH&H Telecom.
Associate Company Benefits Payroll Insurance Leases Systems
----------------- -------- ------- --------- ------ -------
$000 $000 $000 $000 $000
<S> <C> <C> <C> <C> <C>
Columbia Energy Group 866 - 717 1 5
Columbia Gulf Transmission Company 7,206 33,637 3,103 572 322
Columbia Energy Services 1,356 11,205 591 153 321
Columbia Propane Corporation 3,579 14,141 747 1,598 39
Columbia Electric Corporation 435 2,841 686 - 15
Columbia LNG Corporation 386 2,174 542 40 17
Columbia Network Services Corporation 30 238 8 - -
Columbia Insurance Corporation - - - - -
Columbia Gas of Kentucky, Inc. 4,510 14,586 1,570 634 285
Columbia Gas of Ohio, Inc. 40,040 148,184 14,509 5,121 2,799
Columbia Gas of Maryland, Inc. 992 3,200 159 149 38
Columbia Gas of Pennsylvania, Inc. 13,062 52,413 1,726 2,282 1,835
Columbia Gas of Virginia, Inc. 4,207 21,364 757 1,210 316
TriStar Capital Corporation - - - - -
Columbia Gas Transmission Corporation 37,241 170,623 7,568 7,778 720
Columbia Atlantic Trading, Inc. - - - - -
Columbia Natural Resources, Inc. 3,845 19,028 691 2,080 26
------- ------- ------ ------ -----
Total 117,755 493,634 33,374 21,618 6,738
======= ======= ====== ====== =====
</TABLE>
<TABLE>
<CAPTION>
Associate Company Legal Other Total
----------------- ----- ----- -----
$000 $000 $000
<S> <C> <C> <C>
Columbia Energy Group 185 118,509 1) 120,283
Columbia Gulf Transmission Company 84 226 45,150
Columbia Energy Services 529 87,619 2) 101,774
Columbia Propane Corporation 18 8,678 3) 28,800
Columbia Electric Corporation 131 2,982 7,090
Columbia LNG Corporation 19 237 3,415
Columbia Network Services Corporation 25 1,210 1,511
Columbia Insurance Corporation 17 - 17
Columbia Gas of Kentucky, Inc. - 153 21,738
Columbia Gas of Ohio, Inc. 59 2,765 213,477
Columbia Gas of Maryland, Inc. 4 74 4,616
Columbia Gas of Pennsylvania, Inc. 3 407 71,728
Columbia Gas of Virginia, Inc. - 163 28,017
TriStar Capital Corporation 1 1 2
Columbia Gas Transmission Corporation 163 7,221 231,314
Columbia Atlantic Trading, Inc. - 72 72
Columbia Natural Resources, Inc. 115 76,731 3) 102,516
----- ------- -------
Total 1,353 307,048 981,520
===== ======= =======
</TABLE>
Note 1: Primarily reflects electronic funds transfer for System Federal tax
payments.
Note 2: Primarily reflects a service offered by the Corporate Treasury
Department to provide a non-repetitive electronic funds transfer to
third parties.
Note 3: Primarily reflects electronic funds transfer for acquisition of company.
<PAGE> 13
PAGE 13
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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
----------- ----- -------- -----
$000 $000 $000
<S> <C> <C> <C>
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 ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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
----- -------- -----
$000 $000 $000
<S> <C> <C> <C>
Account 163 - Stores Expenses Undistributed None None None
---------- ----------- -------
TOTAL None None None
</TABLE>
<PAGE> 15
PAGE 15
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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 ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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 12,153 10,213
Restricted Stock Awards 1,459 1,168
Intangible Asset - Pension Restoration Plan 1,127 1,127
Benefits Outsourcing Project - 942
Workers Compensation Claims 964 907
Deferred Convenience Claims 845 410
Deferred Insurance Receivables 347 50
New Corporate Center - 22
Step Program - 8
Branding Project - 5
EDP Software Costs 58 -
Returned Payroll Checks 229 (14)
------ ------
TOTAL 17,182 14,838
====== ======
</TABLE>
<PAGE> 17
PAGE 17
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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
------
$000
<S> <C>
None
----------
TOTAL None
</TABLE>
<PAGE> 18
PAGE 18
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
SCHEDULE XI - PROPRIETARY CAPITAL
<TABLE>
<CAPTION>
NUMBER OF SHARES PAR OR STATED VALUE OUTSTANDING CLOSE OF PERIOD
ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
- -------------- -------------- ---------- --------- ------------- ------------
<S> <C> <C> <C> <C> <C>
201 COMMON STOCK 3,000 $100 3,000 $300,000
</TABLE>
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which give rise
to the reported amount. Effective August 18, 1997, the
Corporation authorized a reverse stock split to reduce the
number of authorized shares to 3,000.
<TABLE>
<CAPTION>
DESCRIPTION AMOUNT
<S> <C>
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL $12,700,000
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS -
-----------
TOTAL $12,700,000
</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
----------- ----------- --------- ----------
$000 $000 $000 $000
ACCOUNT 216 - UNAPPROPRIATED RETAINED EARNINGS 174 2,236 2,223 187
Rate/Share Amount of Dividend Date Declared Date Paid
---------- ------------------ ------------- ---------
<S> <C> <C> <C> <C> <C> <C> <C>
$ $000
4.20 546 02/12/97 02/28/97
4.30 559 05/14/97 05/30/97
4.30 559 08/13/97 08/29/97
186.35 559 11/12/97 11/28/97
----------- ----------- --------- ----------
TOTAL 174 2,236 2,223 187
</TABLE>
<PAGE> 19
PAGE 19
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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
CLASS & SERIES OF INTEREST AMOUNT
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED
---------------- -------------- -------- -------- ----------
% $000
ACCOUNT 223 - ADVANCES FROM
ASSOCIATE COMPANIES:
<S> <C> <C> <C> <C>
Columbia Energy Group Promissory Note 11/28/00 6.89 2,567
Columbia Energy Group Promissory Note 11/28/02 7.11 2,246
Columbia Energy Group Promissory Note 11/28/05 7.30 2,246
Columbia Energy Group Promissory Note 11/28/07 7.55 2,246
Columbia Energy Group Promissory Note 11/28/10 7.82 2,246
Columbia Energy Group Promissory Note 11/28/15 7.92 2,246
Columbia Energy Group Promissory Note 11/28/25 8.12 2,246
ACCOUNT 224 - OTHER LONG-TERM DEBT: -
TOTAL 16,043
------
</TABLE>
<TABLE>
<CAPTION>
BALANCE AT DEDUC- BALANCE AT
BEGINNING ADDI- TIONS CLOSE
NAME OF CREDITOR OF YEAR TIONS (1) OF YEAR
---------------- ---------- ----- ----- ----------
$000 $000 $000 $000
ACCOUNT 223 - ADVANCES FROM
ASSOCIATE COMPANIES:
<S> <C> <C> <C> <C>
Columbia Energy Group 2,567 - - 2,567
Columbia Energy Group 2,246 - - 2,246
Columbia Energy Group 2,246 - - 2,246
Columbia Energy Group 2,246 - - 2,246
Columbia Energy Group 2,246 - - 2,246
Columbia Energy Group 2,246 - - 2,246
Columbia Energy Group 2,246 - - 2,246
ACCOUNT 224 - OTHER LONG-TERM DEBT: - - - -
TOTAL 16,043 - - 16,043
------ --- --- ------
</TABLE>
(1) GIVE AN EXPLANATION OF DEDUCTIONS: The deductions represent
the portion of the Installment Promissory Notes which mature
within one year. Currently there is no long term debt due
within the next year.
<PAGE> 20
PAGE 20
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
- -------------------------------------------------- ------- -------
<S> <C> <C>
$ 000 $ 000
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES
See Schedule XIII-A -- --
------- --------
TOTAL -- --
- --------------------------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Columbia Energy Group 4,132 4,325
Columbia Gulf Transmission Corporation -- 2
Columbia Energy Services 17 --
System Money Pool Payable -- 20,030
System Money Pool Interest Payable 8 78
------- --------
TOTAL 4,157 24,435
- --------------------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
Retirement Income Plan 3,479 3,558
Release & Retention Program 2,589 970
Pension Retirement Benefits 2,540 2,540
Pension Restoration Plan -- 386
Accrued Vacation 1,954 2,043
Contract Retainage 1,467 431
Thrift Restoration Plan 623 960
Comprehensive Medical Expense Plan Accrual 258 258
Employee Agreements 167 216
Employee Thrift Plan 118 130
Aircraft Engine Overhaul Accrual 80 42
Post Retirement Benefit Obligation 72 59
Thrift Plan - Company 64 60
Flexible Spending 49 35
Dental Assistance Plan Accrual 20 20
Unclaimed Accounts 19 15
LTIP Dividend Credit -- 397
Deferred Compensation -- 727
Miscellaneous (2) -- (6)
Deferred Compensation - Interest -- 45
------- --------
TOTAL 13,499 12,886
- --------------------------------------------------------------------------------------------------
</TABLE>
<PAGE> 21
PAGE 21
SCHEDULE XIII-A
COLUMBIA ENERGY GROUP SERVICE CORPORATION
Notes Payable to Associate Companies
Account 233
<TABLE>
<CAPTION>
Balance at Balance at
Beginning Close
of Year of Year
---------- -----------
<S> <C> <C>
$000 $000
Columbia Energy Group
6.89% Installment Promissory Note None None
7.11% Installment Promissory Note None None
7.30% Installment Promissory Note None None
7.55% Installment Promissory Note None None
7.82% Installment Promissory Note None None
7.92% Installment Promissory Note None None
8.12% Installment Promissory Note None None
---- ----
Total None None
==== ====
</TABLE>
Note: As of December 31, 1997 there are no current maturities.
<PAGE> 22
PAGE 22
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
- -------------------------------------------------------------------------------
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 Energy Group and Subsidiaries.
c. Pension Costs
The Corporation participates in the Retirement Income Plan of the
Columbia Energy Group. This is a trusteed noncontributory Retirement
Income Plan which, with certain minor exceptions, covers all regular
employees. The Service Corporation's portion amounted to $79,000 in
1997 and $977,000 in 1996, 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
1997.
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
------------------------ ---------- ---------- ------------
<S> <C> <C> <C>
$000
Interest Receivable 171 143 32
Deferred Income Taxes 283 282 (20)
- -------------------------------------------------------------------------------
</TABLE>
<PAGE> 23
PAGE 23
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
- -------------------------------------------------------------------------------
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 $10,374,000 as of
December 31, 1997, 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.
<PAGE> 24
PAGE 24
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year ended December 31, 1997
- -------------------------------------------------------------------------------
SCHEDULE XV
STATEMENT OF INCOME
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
1997 1996
------------- ----------
ACCOUNT DESCRIPTION CURRENT YEAR PRIOR YEAR
- ------- ------------------------------------------------ ------------- ----------
<S> <C> <C> <C>
$ 000 $ 000
INCOME
457 Services rendered to associate companies 79,989 85,015
458 Services rendered to nonassociate companies 31 -
421 Miscellaneous income or loss - 5,852
------- --------
Total Income 80,020 90,867
EXPENSE
920 Salaries and wages 28,828 35,660
921 Office supplies and expenses 6,375 7,973
922 Administrative expense transferred - credit (2,058) (2,302)
923 Outside services employed 11,764 10,252
924 Property insurance 178 195
925 Injuries and damages 192 146
926 Employee pensions and benefits 9,317 11,637
928 Regulatory commission expense 3 1
930.1 General advertising expenses 84 62
930.2 Miscellaneous general expenses 1,126 2,729
931 Rents 5,782 7,720
932 Maintenance of structures and equipment 3,352 2,328
403 Depreciation and amortization expense 5,476 5,711
408 Taxes other than income taxes 3,029 3,103
409 Income taxes 1,977 3,882
410 Provision for deferred income taxes 6,105 2,368
411 Provision for deferred income taxes - credit (5,638) (4,028)
411.5 Investment tax credit - -
426.1 Donations 119 136
426.5 Other deductions - -
427 Interest on long-term debt - -
430 Interest on debt to associate companies 1,925 1,526
431 Other interest expense (152) (258)
------- -------
Total Expense 77,784 88,841
------- -------
Net Income or (Loss) 2,236 2,026
======= =======
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 25
PAGE 25
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year ended December 31, 1997
- -------------------------------------------------------------------------------
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
------- ------- ------
<S> <C> <C> <C> <C>
$ 000 $ 000 $ 000 $ 000
Columbia Energy Group 1,956 1,258 192 . 3,406
Columbia Gulf Transmission Company 4,280 2,356 336 6,972
Columbia Energy Services 1,901 853 116 2,870
Columbia Propane Corporation 646 561 74 1,281
Columbia Electric Corporation 387 273 37 697
Columbia LNG Corporation 127 119 17 263
Columbia Network Services Corporation 102 90 14 206
Columbia Insurance Corporation, Ltd 81 58 9 148
Columbia Gas of Kentucky, Inc. 1,853 797 105 2,755
Columbia Gas of Ohio, Inc. 15,291 6,532 859 22,682
Columbia Gas of Maryland, Inc. 589 254 34 877
Columbia Gas of Pennsylvania, Inc. 5,631 2,437 323 8,391
Columbia Gas of Virginia, Inc. 2,687 1,195 158 4,040
TriStar Capital Corporation 4 8 1 13
Columbia Gas Transmission Corporation 14,201 7,933 1,099 23,233
Columbia Atlantic Trading, Inc. (11) 25 1 15
Columbia Natural Resources, Inc. 1,627 1,042 148 2,817
------- ------- ------ ------
Total Amount Billed in 1997 51,352 25,791 3,523 80,666
Reconciliations to Total Revenues:
Difference between Amount of
Unbilled Revenue December 1996 and
December 1997 (3,012) 1,698 637 (677)
------- ------- ------ ------
48,340 27,489 4,160 79,989
======= ======= ====== ======
</TABLE>
- --------------------------------------------------------------------------------
<PAGE> 26
Page 26
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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
Aviara Energy Corporation 31 - - 31 - 31
</TABLE>
INSTRUCTION: Provide a brief description of the services rendered to each
nonassociate company:
Services provided to Aviara Energy Corporation were for Mainframe
Computer Utilization. Aviara Energy Corporation was the company that
acquired one of our affiliates (Columbia Gas Development Corporation)
in 1995.
<PAGE> 27
PAGE 27
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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
------ -------- ----- ------ -------- -----
$000 $000 $000 $000 $000 $000
<S> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 25,189 3,639 28,828 -- -- --
921 Office Supplies and Expenses 4,072 2,303 6,375 -- -- --
922 Administrative Expenses Transferred - -- -- --
Credit 934 (2,992) (2,058) -- -- --
923 Outside Services Employed 9,553 2,211 11,764 -- -- --
924 Property Insurance 97 81 178 -- -- --
925 Injuries and Damages 188 4 192 -- -- --
926 Employee Pensions and Benefits 2,617 6,700 9,317 -- -- --
928 Regulatory Commission Expense 3 -- 3 -- -- --
930.1 General Advertising Expenses 26 58 84 -- -- --
930.2 Miscellaneous General Expense (5,568) 6,663 1,095 31 -- 31
931 Rents 4,808 974 5,782 -- -- --
932 Maintenance of Structure and Equipment 2,553 799 3,352 -- -- --
403 Depreciation and Amortization Expense 3,848 1,628 5,476 -- -- --
408 Taxes Other Than Income Taxes 80 2,949 3,029 -- -- --
409 Income Taxes -- 1,977 1,977 -- -- --
410 Provision for Deferred Income Taxes -- 6,105 6,105 -- -- --
411 Provision for Deferred Income Taxes - -- -- --
Credit -- (5,638) (5,638) -- -- --
411.5 Investment for Credit -- -- -- -- -- --
421 Miscellaneous Income or Loss -- -- -- -- -- --
426.1 Donations 3 116 119 -- -- --
426.5 Other Deductions -- -- -- -- -- --
427 Interest on Long-Term Debt -- -- -- -- -- --
431 Other Interest Expense -- (152) (152) -- -- --
----- ----- -----
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 48,403 27,425 75,828 31 -- 31
------ ------ ------ ----- ----- -----
Compensation for Use of Equity Capital 2,236
------
430 Interest on Debt to Associate Companies 1,925
------
Total Cost of Service 79,989
------
</TABLE>
<TABLE>
<CAPTION>
TOTAL CHARGES FOR
SERVICE
---------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT
COST COST TOTAL
------ -------- -----
$000 $000 $000
<S> <C> <C> <C>
920 Salaries and Wages 25,189 3,639 28,828
921 Office Supplies and Expenses 4,072 2,303 6,375
922 Administrative Expenses Transferred -
Credit 934 (2,992) (2,058)
923 Outside Services Employed 9,553 2,211 11,764
924 Property Insurance 97 81 178
925 Injuries and Damages 188 4 192
926 Employee Pensions and Benefits 2,617 6,700 9,317
928 Regulatory Commission Expense 3 -- 3
930.1 General Advertising Expenses 26 58 84
930.2 Miscellaneous General Expense (5,537) 6,663 1,126
931 Rents 4,808 974 5,782
932 Maintenance of Structure and Equipment 2,553 799 3,352
403 Depreciation and Amortization Expense 3,848 1,628 5,476
408 Taxes Other Than Income Taxes 80 2,949 3,029
409 Income Taxes -- 1,977 1,977
410 Provision for Deferred Income Taxes -- 6,105 6,105
411 Provision for Deferred Income Taxes -
Credit -- (5,638) (5,638)
411.5 Investment for Credit -- -- --
421 Miscellaneous Income or Loss -- -- --
426.1 Donations 3 116 119
426.5 Other Deductions -- -- --
427 Interest on Long-Term Debt -- -- --
431 Other Interest Expense -- (152) (152)
------ ------ ------
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 48,434 27,425 75,859
------ ------ ------
Compensation for Use of Equity Capital 2,236
------
430 Interest on Debt to Associate Companies 1,925
------
Total Cost of Service 80,020
------
</TABLE>
<PAGE> 28
PAGE 28
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
-------------------------------------------
AIR COMMON/
TOTAL TRANS- CLIENT CORPORATE
DESCRIPTION OF ITEMS AMOUNT OVERHEAD ACCOUNTING PORTATION SUPPORT SYSTEMS
-------------------- ------ -------- ---------- --------- ------- ---------
<S> <C> <C> <C> <C> <C> <C>
920 Salaries and Wages 28,828 3,639 51 225 505 1,081
921 Office Supplies and Expenses 6,375 2,303 3 172 73 92
922 Administrative Expenses Transferred -
Credit (2,058) (2,992) -- -- 3 33
923 Outside Services Employed 11,764 2,211 -- 38 43 472
924 Property Insurance 178 81 -- -- -- --
925 Injuries and Damages 192 4 -- 34 -- --
926 Employee Pensions and Benefits 9,317 6,700 -- -- -- --
928 Regulatory Commission Expense 3 -- 1 -- -- --
930.1 General Advertising Expense 84 58 -- -- -- --
930.2 Misellaneous General Expense 1,126 6,663 4 275 8 359
931 Rents 5,782 974 -- 691 1 --
932 Maintenance of Structures and Equipment 3,352 799 -- 153 19 205
403 Depreciation and Amortization Expense 5,476 1,628 -- -- -- --
408 Taxes Other Than Income Taxes 3,029 2,949 -- (27) -- --
409 Income Taxes 1,977 1,977 -- -- -- --
410 Provision for Deferred Income Taxes 6,105 6,105 -- -- -- --
411 Provision for Deferred Income Taxes -
Credit (5,638) (5,638) -- -- -- --
411.5 Investment Tax Credit -- -- -- -- -- --
421 Miscellaneous Income or Loss -- -- -- -- -- --
426.1 Donations 119 116 -- -- -- --
426.5 Other Deductions -- -- -- -- -- --
427 Interest on Long-Term Debt -- -- -- -- -- --
430 Interest on Debt to Associate Companies 1,925 1,925 -- -- -- --
431 Other Interest Expense (152) (152) -- -- -- --
Instruction: Indicate each department or service
function. (See Instruction 01-3
General Structure of Accounting
System: Uniform System Account)
------ ------ -- ----- --- -----
Total Expenses 77,784 29,350 59 1,561 652 2,242
------ ------ -- ----- --- -----
</TABLE>
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
-------------------------------------
CORPORATE
CONSOLIDATION COMMUNI- CORPORATE
DESCRIPTION OF ITEMS CATIONS TREASURY
-------------------- ------------- --------- ---------
<S> <C> <C> <C>
920 Salaries and Wages 739 400 270
921 Office Supplies and Expenses 65 105 30
922 Administrative Expenses Transferred -
Credit -- -- --
923 Outside Services Employed 18 1,497 229
924 Property Insurance -- -- --
925 Injuries and Damages -- -- --
926 Employee Pensions and Benefits -- -- --
928 Regulatory Commission Expense -- -- --
930.1 General Advertising Expense 1 4 --
930.2 Misellaneous General Expense 256 51 255
931 Rents 2 2 4
932 Maintenance of Structures and Equipment 32 -- 9
403 Depreciation and Amortization Expense -- -- --
408 Taxes Other Than Income Taxes -- -- --
409 Income Taxes -- -- --
410 Provision for Deferred Income Taxes -- -- --
411 Provision for Deferred Income Taxes -
Credit -- -- --
411.5 Investment Tax Credit -- -- --
421 Miscellaneous Income or Loss -- -- --
426.1 Donations -- 2 --
426.5 Other Deductions -- -- --
427 Interest on Long-Term Debt -- -- --
430 Interest on Debt to Associate Companies -- -- --
431 Other Interest Expense -- -- --
Instruction: Indicate each department or service
function. (See Instruction 01-3
General Structure of Accounting
System: Uniform System Account)
----- ----- ---
Total Expenses 1,113 2,061 797
----- ----- ---
</TABLE>
<PAGE> 29
PAGE 29
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
---------------------------------------------------------------------------------------------------------------------------------
ENTERPRISE ENVIRON- FINANCE MC NETWORK
Account MULTIMEDIA MENTAL GOVERNMENT INVESTOR HUMAN INTERNAL BUILDING COMTPUTER
Number COMMUNICATIONS AFFAIRS EXECUTIVE AFFAIRS RELATIONS RESOURCES AUDIT LEGAL SERVICES SERVICES
------ -------------- -------- --------- ---------- --------- --------- -------- ----- -------- ---------
$000 $000 $000 $000 $000 $000 $000 $000 $000 $000
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 1,782 272 1,860 288 428 1,478 854 947 1 2,859
921 921 65 128 81 118 236 99 196 -- 1,334
922 199 14 -- -- -- -- 1 -- -- 669
923 681 7 200 75 510 601 14 1,719 1 1,150
924 -- -- -- -- -- -- -- -- -- --
925 -- -- -- -- -- -- -- -- -- --
926 -- -- -- -- -- 15 -- -- -- --
928 -- -- -- -- 2 -- -- -- -- --
930.1 -- -- -- -- -- 15 -- -- -- --
930.2 314 15 440 37 82 769 116 85 -- (3,112)
931 130 2 9 323 18 203 2 1 -- 3,391
932 54 -- -- -- -- -- -- 4 -- 2,077
403 301 -- -- -- -- -- -- -- -- 3,547
408 -- -- -- -- -- -- -- -- -- 107
409 -- -- -- -- -- -- -- -- -- --
410 -- -- -- -- -- -- -- -- -- --
411 -- -- -- -- -- -- -- -- -- --
411.5 -- -- -- -- -- -- -- -- -- --
421 -- -- -- -- -- -- -- -- -- --
426.1 -- -- -- 1 -- -- -- -- -- --
426.5 -- -- -- -- -- -- -- -- -- --
427 -- -- -- -- -- -- -- -- -- --
430 -- -- -- -- -- -- -- -- -- --
431 -- -- -- -- -- -- -- -- -- --
----- --- ----- --- ----- ----- ----- ----- - ------
Total Expenses 4,382 375 2,637 805 1,158 3,317 1,086 2,952 2 12,022
----- --- ----- --- ----- ----- ----- ----- - ------
</TABLE>
<PAGE> 30
PAGE 30
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
Schedule XVII
SCHEDULE OF EXPENSE DISTRIBUTION BY DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
<TABLE>
<CAPTION>
RESTON
Account OTHER RISK BUILDING STRATEGIC FINANCIAL ENERGY
Number GENERAL PAYROLL MANAGEMENT SERVICES PLANNING REPORTING TAX VENTURES
------- ------- ------- ---------- -------- --------- --------- --- --------
$000 $000 $000 $000 $000 $000 $000 $000
<S> <C> <C> <C> <C> <C> <C> <C> <C>
920 8,324 446 320 12 573 727 503 244
921 -- 2 86 2 103 38 54 69
922 -- -- -- -- -- -- -- 15
923 58 87 47 -- 1,497 99 459 51
924 -- -- 97 -- -- -- -- --
925 -- -- 154 -- -- -- -- --
926 2,591 -- 11 -- -- -- -- --
928 -- -- -- -- -- -- -- --
930.1 -- -- -- -- 6 -- -- --
930.2 (6,055) 209 95 -- 63 167 16 14
931 -- -- 1 -- 2 2 24 --
932 -- -- -- -- -- -- -- --
403 -- -- -- -- -- -- -- --
408 -- -- -- -- -- -- -- --
409 -- -- -- -- -- -- -- --
410 -- -- -- -- -- -- -- --
411 -- -- -- -- -- -- -- --
411.5 -- -- -- -- -- -- -- --
421 -- -- -- -- -- -- -- --
426.1 -- -- -- -- -- -- -- --
426.5 -- -- -- -- -- -- -- --
427 -- -- -- -- -- -- -- --
430 -- -- -- -- -- -- -- --
431 -- -- -- -- -- -- -- --
------ --- --- -- ----- ----- ----- ---
Total Expenses 4,918 744 811 14 2,244 1,033 1,056 393
------ --- --- -- ----- ----- ----- ---
</TABLE>
<PAGE> 31
Page 31
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
<TABLE>
<CAPTION>
DEPARTMENTAL SALARY EXPENSE
---------------------------------------------- NUMBER
INCLUDED IN AMOUNTS BILLED TO PERSONNEL
NAME OF DEPARTMENT ----------------------------- ---------
Indicate each department or TOTAL PARENT OTHER NON END OF
service function AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
--------------------------- ------ ------- ---------- ---------- ---------
$000 $000 $000 $000
<S> <C> <C> <C> <C> <C>
Accounting 51 -- 51 -- 12
Air Transportation 225 163 62 -- 7
Client Support 505 -- 505 -- 11
Common/Corporate Systems 1,081 7 1,074 -- 46
Consolidation 739 77 662 -- 17
Corporate Communications 400 -- 400 -- 6
Corporate Treasury 270 5 265 -- 6
Enterprise Multimedia Communication 1,782 2 1,780 -- 42
Environmental Affairs 272 9 263 -- 4
Executive 1,860 168 1,692 -- 11
Finance & Investor Relations 288 -- 288 -- 6
Government Affairs 428 -- 428 -- 4
Human Resources 1,478 13 1,465 -- 35
Internal Audit 854 5 849 -- 19
Legal 947 68 879 -- 13
Marble Cliff Building Services 1 1 -- -- 19
Network Computer Services 2,859 -- 2,859 -- 71
Other General 8,324 -- 8,324 -- --
Payroll 446 1 445 -- 17
Risk Management 320 11 309 -- 6
Reston Building Services 12 -- 12 -- 7
Strategic Planning 573 14 559 -- 6
Financial Planning & Reporting 727 13 714 -- 14
Tax 503 35 468 -- 7
Energy Ventures 244 181 63 -- 4
------ --- ------ ---- ---
Total 25,189 773 24,416 -- 390
------ --- ------ ---- ---
</TABLE>
<PAGE> 32
Page 32
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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
- ------------------ ------- ------------------- ------
$000
<S> <C> <C> <C>
See schedule 923-A 11,764
</TABLE>
<PAGE> 33
PAGE 33
SCHEDULE 923-A
COLUMBIA ENERGY GROUP 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 & MacRae 125 W.55th Street New York., N.Y. 100195389 NA 1,163
US Trust Co. of California, NA 515 S. Flower Street, Suite 2700, Los Angeles, CA 90071 NA 75
39 Organizations 281
-----
Total Special Services - Legal 1,519
2-Special Services - Audit
Arthur Andersen P O Box 13882, Newark, NJ 07188-0882 NA 92
-----
Total Special Services - Audit 92
3-Special Services - Other
Accountemps P. O Box 4377, Columbus, Ohio 43212 NA 82
Advantis P O Box 98880, Chicago, IL. 60693 NA 275
Arnold Saks Associates, Inc. 350 East 81st Street, New York, NY 10028 NA 116
The Case Hoyt Corp. P O Box 522625, Miami, FL. 33152 NA 314
Columbia Gas of Ohio, Inc. Accounts Receivable, P O Box 117, Columbus, OH 43216 A 121
Comdisco Continuity Service P O Box 91753, Chicago, IL. 60693 NA 282
Cyborg Systems P O Box 5222, Lisle, IL 60532-5222 NA 79
Dawson Personnel Services P O Box 690662, Cincinnati, OH 45269-0662 NA 198
Harris Trust & Savings Bank 33101 Treasury Center, Chicago, IL 60694-3100 NA 326
International Network Services P O Box 7049, San Francisco, CA 94120-7049 NA 200
Knowledge Link Dept L-1715, Columbus, Ohio 43260-1715 NA 251
Lexis-Nexis P O Box 7247-7090, Philadelphia, PA 19170-7090 NA 100
McArdle-Desco Corporation P O Box 8500-S-3350 Philadelphia, PA 19178 NA 441
Maximation, LLC 3535 Fishinger Blvd. Suite 220, Hilliard, OH 43026 NA 102
PNC Bank, N.A. P O Box 821523, Philadelphia, PA 19182-1523 NA 135
Pinkerton's , Inc. P O Box 4655, Carol Stream, IL 60132-4655 NA 94
Placers Temps & Search P O Box 15621, Wilmington, DE. 19850-5621 NA 90
Sarcom Dept. # 0703, Columbus, OH 43271-0703 NA 474
Savoy Partners, LTD. 1620 L Street, NW Suite 801, Washington, DC 20036 NA 122
Shandwick Public Affairs P O Box 3075, Buffalo, NY 14240 NA 81
Walker Interactive Systems P O Box 60000, San Francisco, CA 94160-3028 NA 186
Xerox Corporation P O Box 827598 Philadelphia, PA 19182-7598 NA 187
3X Corporation P O Box 182039, Columbus, OH. 43218-2039 NA 78
461 Organizations 2,459
-----
Total Special Services - Other 6,793
</TABLE>
<PAGE> 34
PAGE 34
SCHEDULE 923-A
COLUMBIA ENERGY GROUP 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
Stroock & Stroock & Lavan LLP 180 Maiden Lane, New York, NY 10038 NA 165
Miller & Chevalier 655 Fifteenth Street, Washington DC 20005 NA 75
5 Organizations 86
-----
Total Special Services - Tax 326
5- Special Services - Consulting
Allegheny Power System, Inc. 10435 Downsville Pike, Hagerstown, MD 21741-1458 NA 289
Gartner Group, Inc. P O Box 911319, Dallas, TX. 75391-1319 NA 220
LAI P O Box 340468, Tampa, FL 33694-0468 NA 130
Marketing Corp. of America P O Box 3938, Boston, MA 02241-3938 NA 1,079
OVCA Associates Inc. 7 Overlook Road, Louisville, KY 40207 NA 144
Shandwick Public Affairs P O Box 1213, Dept. 14984, Newark, NJ 07101 NA 398
49 Organizations 774
-----
Total Special Services - Consulting 3,034
------
Total All Special Services 11,764
======
</TABLE>
<PAGE> 35
Page 35
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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
- ----------- --------
$ 000
<S> <C>
Employee Relocation Expense 3,051
Other Post-Employment Benefits 2,108
Medical Expense Plan 1,700
Thrift Plan 815
Pension Restoration Plan 514
Group Life Insurance 371
Dental Assistance Plan 209
Long-Term Disability Insurance 151
Employee Assistance Plan 112
Employee Retirement Expense 97
Employee Cafeteria Subsidy 67
Educational Assistance 62
Miscellaneous 60
------
Total 9,317
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 36
Page 36
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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 Stackig, Inc. 25
Employee Recruiting The Columbus Dispatch 16
Employee Recruiting GTR Advertising, Inc. 14
Employee Recruiting Washington Post 11
Employee Recruiting Nationwide Advertising Service 8
Employee Recruiting Miscellaneous (10) 6
Periodical - Informational Tal, Inc. 4
-----
TOTAL 84
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 37
Page 37
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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>
Employment Agreement 346
Courier Services 175
Dues and Memberships - Corporate 163
Industry Meetings 85
Employee Recruiting 60
Filing and License Fees 37
Political Activities 24
Newswire Services 23
Bank Service Charges 21
SEC Filings 19
Aircraft Service 17
Other 156
---------------
TOTAL 1,126
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 38
PAGE 38
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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>
AMOUNT
- --------------------------------------------------------------- -----------
$000
<S> <C>
Data Processing 2,945
Office Space 1,325
Air Transportation 645
Auto and General Tools 155
Communications 117
Miscellaneous 595
-----------
TOTAL 5,782
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 39
PAGE 39
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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 930
Unemployment 43
Sales and Use 30
License or Franchise 72
-----------
Total - other 1,075
(2) U.S. Government Taxes:
Federal Insurance Contribution 1,925
Unemployment 28
Miscellaneous 1
-----------
Total - Federal 1,954
TOTAL 3,029
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 40
PAGE 40
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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 103
Miscellaneous (15) Community Welfare 16
---------
TOTAL 119
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 41
PAGE 41
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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>
- --------------------------------------------------------------------------------
DESCRIPTION AMOUNT
- ---------------------------------------------------- --------------
$000
<S> <C>
NONE
--------------
TOTAL NONE
- --------------------------------------------------------------------------------
</TABLE>
<PAGE> 42
PAGE 42
ANNUAL REPORT OF COLUMBIA ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
- --------------------------------------------------------------------------------
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 decreased from 1996 as a result of the
severance paid to 130 employees who were severed as part of
the Corporation's relocation of Corporate headquarters to
Virginia in 1996.
b. Employee Pensions and Benefits
Employee pensions and benefits decreased from 1996 as a result
of the pensions and benefits paid to employees who took lump
sum distributions or retired as part of the Corporation's
relocation of Corporate headquarters to Virginia in 1996.
- --------------------------------------------------------------------------------
<PAGE> 43
PAGE 43
COLUMBIA ENERGY GROUP SERVICE CORPORATION
Organization Chart
Chairman, President &
CEO
RICHARD, III
<TABLE>
<S> <C> <C> <C> <C> <C> <C> <C>
VP Strategic SR VP Human Senior VP Senior VP Senior VP VP Governmental VP Senior VP
Planning Resources Services & CFO & Chief Affairs Communications Energy Supply
Legal Officer
HAMMICK FONT MAGLEY O'DONNELL SCHWOLSKY CASALI JENNRICH KASKEL
Strategic Corporate Air Consolidation Environmental Government Corporate Energy
Planning Benefits Transportation Affairs Affairs Communications Ventures
Human Client Corporate Legal
Resources Support Treasury
Training Common/ Finance & Risk
Corporate Investor Management
Systems Relations
Organizational Enterprise Financial
Development Multimedia Planning &
Communications Reporting
Executive Marble Cliff Internal
Compensation Building Audit
Services
Network Tax
Computer
Services
Region
Building
Services
Accounting
Payroll
</TABLE>
<PAGE> 44
PAGE 44
ANNUAL REPORT OF COLUMBIA ENERGY GROUP 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.
METHODS OF ALLOCATION CURRENTLY IN USE:
- Gross Fixed Assets and Total Operating Expenses
- Gross Fixed Assets
- Total Operating Expenses and Gross Depreciable Property
- Gross Depreciable Property
- Number of Regular Employees
- Fixed Allocation
- Direct Costs
METHODS OF ALLOCATION NOT CURRENTLY IN USE:
- Distribution Property and Distribution Expenses
- Transmission Property and Transmission Expenses
- Number of Automobile Units (Owned and Leased)
- Number of Retail Customers
- 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
- 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 ENERGY GROUP SERVICE CORPORATION
For the Year Ended December 31, 1997
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>
Columbia Energy Group 883 192
Columbia Gulf Transmission Company 1,661 336
Columbia Energy Services 553 116
Columbia Propane Corporation 360 74
Columbia Electric Corporation 169 37
Columbia LNG Corporation 79 17
Columbia Network Services Corporation 64 14
Columbia Insurance Corporation, Ltd. 42 9
Columbia Gas of Kentucky, Inc. 514 105
Columbia Gas of Ohio, Inc. 4,169 859
Columbia Gas of Maryland, Inc. 166 34
Columbia Gas of Pennsylvania, Inc. 1,567 323
Columbia Gas of Virginia, Inc. 771 158
Tristar Capital Corporation 5 1
Columbia Gas Transmission Corporation 5,410 1,099
Columbia Atlantic Trading Corporation 5 1
Columbia Natural Resources, Inc. 733 148
------ ------
Total 17,151 3,523
====== ======
</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 ENERGY GROUP SERVICE CORPORATION
COMPENSATION FOR USE OF CAPITAL
- --------------------------------------------------------------------------------
BILLED TO
COLUMBIA PROPANE CORPORATION
DURING 1997
- --------------------------------------------------------------------------------
<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 114,881.09 168,784.00 283,665.09 898,622.62 31.56665 16,560.41 5,227.57
FEBRUARY 109,578.21 186,312.00 295,890.21 1,739,062.34 17.01435 39,171.17 6,664.72
MARCH 108,741.96 186,312.00 295,053.96 1,553,698.83 18.99042 37,784.05 7,175.35
APRIL 109,906.80 186,312.00 296,218.80 1,282,923.96 23.08935 27,040.14 6,243.39
MAY 109,210.38 186,312.00 295,522.38 1,759,049.67 16.80012 31,118.41 5,227.93
JUNE 107,867.73 186,312.00 294,179.73 1,176,416.01 25.00644 24,553.04 6,139.84
JULY 108,805.67 186,312.00 295,117.67 1,285,542.09 22.95667 23,358.99 5,362.45
AUGUST 104,839.34 186,312.00 291,151.34 1,202,719.22 24.20776 25,425.50 6,154.94
SEPTEMBER 107,191.65 186,312.00 293,503.65 1,272,749.85 23.06059 27,787.29 6,407.91
OCTOBER 106,912.02 186,312.00 293,224.02 1,208,145.48 24.27059 26,760.23 6,494.87
NOVEMBER 107,464.14 186,312.00 293,776.14 1,285,267.24 22.85720 29,436.03 6,728.25
DECEMBER 109,546.51 186,312.00 295,858.51 2,486,540.37 11.89840 51,080.49 6,077.76
--------------- --------------- --------------- --------------- --------------- --------------- ---------------
1,304,945.50 2,218,216.00 3,523,161.50 17,150,737.68 20.54233 360,075.75 73,904.98
=============== =============== =============== =============== =============== =============== ===============
</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 ENERGY GROUP SERVICE CORPORATION
By:
--------------------------------------------
D. Furlano
Controller
Date: April 1, 1998
- --------------------------------------------------------------------------------
|
|