<PAGE> File No. 70-8573
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
______________________________
AMENDMENT NO. 1
TO
FORM U-1
_______________________________
APPLICATION OR DECLARATION
under the
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
* * *
COLUMBUS SOUTHERN POWER COMPANY
215 North Front Street, Columbus, Ohio 43215
KENTUCKY POWER COMPANY
1701 Central Avenue, P.O. Box 1428, Ashland, Kentucky 41101
OHIO POWER COMPANY
301 Cleveland Avenue, S.W., Canton, Ohio 44702
(Name of companies filing this statement and
addresses of principal executive offices)
* * *
AMERICAN ELECTRIC POWER COMPANY, INC.
1 Riverside Plaza, Columbus, Ohio 43215
(Name of top registered holding company
parent of each applicant or declarant)
* * *
G. P. Maloney, Executive Vice President
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
Jeffrey D. Cross, Assistant General Counsel
AMERICAN ELECTRIC POWER SERVICE CORPORATION
1 Riverside Plaza, Columbus, Ohio 43215
(Names and addresses of agents for service)
ITEM 1. DESCRIPTION OF PROPOSED TRANSACTION.
Columbus Southern Power Company ("CSPCo"), Kentucky Power
Company ("KPCo") and Ohio Power Company ("OPCo") (sometimes
hereinafter referred to individually as an "Operating Affiliate"
and collectively as the "Operating Affiliates") hereby amend
their Application or Declaration on Form U-1 in File No. 70-8573,
as follows:
1. By adding the following sentence at the end of Item 5.
Procedure:
"The Operating Affiliates request that pending
completion of the file the Commission reserve
jurisdiction over the formation of special purpose
subsidiaries and Investment Subs, the sale of Preferred
Securities by the special purpose subsidiaries and the
guarantee of the Preferred Securities by the Operating
Affiliates."
2. By amending and restating Item 2. Fees, Commissions
and Expenses to read as follows:
"Estimates of expenses of the Operating Affiliates in
connection with the proposed issuance and sale of the
Debentures are as follows:
<TABLE>
<CAPTION>
CSPCo* KPCo* OPCo*
*Estimated based upon two
series of Debentures for each
Operating Affiliate
<S> <C> <C> <C>
Securities and Exchange Commission $ 28,253 $ 23,080 $ 31,702
Filing Fees . . . . . . . . . . . .
Printing Registration Statement,
Prospectus, etc. . . . . . . . . . . 100,000 100,000 100,000
Printing/Engraving Debentures . . . . . 20,000 20,000 20,000
Independent Auditors' Fees . . . . . . 30,000 30,000 30,000
Charges of Trustee . . . . . . . . . . 9,000 7,500 10,000
Legal Fees of Counsel . . . . . . . . . 110,000 110,000 110,000
Rating Agency Fees . . . . . . . . . . 40,000 35,000 45,000
Miscellaneous Expenses . . . . . . . . 50,000 50,000 50,000
TOTAL $387,253 $375,580 $396,702
</TABLE>
No other fees, commissions or expenses, other than expenses
billed at cost by American Electric Power Service
Corporation, not to exceed $20,000 for each Operating
Affiliate, are to be paid or incurred by the Company or any
associate company in connection with the proposed issuance
of the Debentures."
3. By filing the following Exhibits and Financial
Statements:
A. Exhibits:
B-1 Form of Indenture [Incorporated by reference from
Registration Statement No. 33-58313, Exhibit
4(a)].
B-2 Form of Supplemental Indenture including form of
Debenture [Incorporated by reference from
Registration Statement No. 33-58313, Exhibit
4(b)].
B-4 Form of Underwriting Agreement [Incorporated by
reference from Registration Statement No. 33-
58313, Exhibit 1(a)].
C Registration Statements under the Securities Act
of 1933, as amended, relating to the various
securities which are the subject hereof
[incorporated by reference]
F Opinion of counsel
B. Balance Sheets as of December 31, 1994, and Statements
of Income and Retained Earnings, per books and pro forma, for the
12 months ended December 31, 1994, of each Operating Affiliate
and its subsidiaries consolidated and of AEP and its subsidiaries
consolidated, together with journal entries reflecting the
proposed transaction."
SIGNATURE
Pursuant to the requirements of the Public Utility Holding
Company Act of 1935, the undersigned companies have duly caused
this statement to be signed on their behalf by the undersigned
thereunto duly authorized.
COLUMBUS SOUTHERN POWER COMPANY
KENTUCKY POWER COMPANY
OHIO POWER COMPANY
By__/s/ G. P. Maloney_____
Vice President
Date: March 31, 1995
Exhibit F
614/223-1632
Securities and Exchange Commission
Office of Public Utility Regulation
450 Fifth Street, N.W.
Washington, D.C. 20549-1004
March 28, 1995
Gentlemen:
With respect to the Application or Declaration on Form U-1 of
Columbus Southern Power Company, Kentucky Power Company and Ohio
Power Company ("Operating Affiliates") relating to the issuance
and sale by the Operating Affiliates of certain unsecured junior
subordinated debentures ("Debentures") pursuant to an Indenture,
as supplemented ("Indenture"), I wish to advise you as follows:
I am of the opinion that, in the event that the proposed
transactions are consummated in accordance with said Application
or Declaration, as the same may be amended, and when the steps
referred to in the next following paragraph shall have been
taken:
(a) All state laws applicable to the proposed transactions
will have been complied with;
(b) The Debentures will be valid and binding obligations of
the Operating Affiliates in accordance with their
terms, except as the same may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium or
other laws affecting the enforceability of creditors'
rights generally and by general principles of equity;
and
(c) Consummation of the proposed transactions will not
violate the legal rights of the holders of any
securities issued by the Operating Affiliates or any
associate company thereof.
The steps to be taken which are referred to in the next preceding
paragraph consist of the following:
1. Appropriate action by the Board of Directors of the
Operating Affiliates with respect to the transactions
described in said Application or Declaration;
2. Appropriate action by the Securities and Exchange
Commission and, in the case of Columbus Southern Power
Company and Ohio Power Company, The Public Utilities
Commission of Ohio, with respect to the transactions
described in said Application or Declaration;
3. Compliance with Federal, state and other securities
laws;
4. Execution and delivery of the proposed Indenture
pursuant to which the Debentures will be issued; and
5. Issuance and sale of the Debentures in accordance with
the governmental and corporate authorizations
aforesaid.
I hereby consent to the filing of this opinion as an exhibit to
the above-mentioned Application or Declaration.
Very truly yours,
/s/ John M. Adams, Jr.
John M. Adams, Jr.
Counsel for
Operating Affiliates
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 1
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
C0NSOLIDATED BALANCE SHEET
December 31, 1994
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
ASSETS
Electric Utility Plant:
Production. . . . . . . . . . . . . . . . . . . $9,172,766 $9,172,766
Transmission. . . . . . . . . . . . . . . . . . 3,247,280 3,247,280
Distribution. . . . . . . . . . . . . . . . . . 3,966,442 3,966,442
General (including mining assets & nuclear fuel 1,529,436 1,529,436
Construction Work In Progress . . . . . . . . . 258,700 258,700
Total Electric Utility Plant. . . . . . 18,174,624 18,174,624
Accumulated Depreciation
and Amortization. . . . . . . . . . . . . . . 6,826,514 6,826,514
Net Electric Utility Plant. . . . . . . 11,348,110 11,348,110
Other Property and Investments. . . . . . . . . . 735,042 735,042
Current Assets:
Cash and Cash Equivalents . . . . . . . . . . . 62,866 $5,782 68,648
Accounts Receivable:
Customers . . . . . . . . . . . . . . . . . . 350,518 350,518
Miscellaneous . . . . . . . . . . . . . . . . 86,397 86,397
Allowance for Uncollectible Accounts. . . . . (4,056) (4,056)
Fuel. . . . . . . . . . . . . . . . . . . . . . 306,700 306,700
Materials and Supplies. . . . . . . . . . . . . 216,741 216,741
Accrued Utility Revenues. . . . . . . . . . . . 167,486 167,486
Prepayments and Other . . . . . . . . . . . . . 94,786 94,786
Total Current Assets. . . . . . . . . . 1,281,438 5,782 1,287,220
Regulatory Assets . . . . . . . . . . . . . . . . 1,949,852 6,665 1,956,517
Deferred Charges. . . . . . . . . . . . . . . . . 398,257 7,403 405,660
Total . . . . . . . . . . . . . . . . $15,712,699 $19,850 $15,732,549
The Pro Forma Adjustments are shown on Page 3 of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 2
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
C0NSOLIDATED BALANCE SHEET
December 31, 1994
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization:
Common Stock. . . . . . . . . . . . . . . . . . $1,262,527 $1,262,527
Paid-in Capital . . . . . . . . . . . . . . . . 1,641,522 1,641,522
Retained Earnings . . . . . . . . . . . . . . . 1,325,581 1,325,581
Total Common Shareholders' Equity . . . 4,229,630 4,229,630
Cumulative Preferred Stocks of Subsidiaries:
Not Subject to Mandatory Redemption . . . . . 233,240 ($85,000) 148,240
Subject to Mandatory Redemption . . . . . . . 590,300 (75,000) 515,300
Long-term Debt. . . . . . . . . . . . . . . . . 4,686,648 235,000 4,921,648
Total Capitalization. . . . . . . . . . 9,739,818 75,000 9,814,818
Other Noncurrent Liabilities. . . . . . . . . . . 667,722 667,722
Current Liabilities:
Long-term Debt Due Within One Year. . . . . . . 293,671 293,671
Short-term Debt . . . . . . . . . . . . . . . . 316,985 (55,150) 261,835
Accounts Payable. . . . . . . . . . . . . . . . 251,186 251,186
Taxes Accrued . . . . . . . . . . . . . . . . . 382,677 382,677
Interest Accrued. . . . . . . . . . . . . . . . 88,916 88,916
Obligations Under Capital Leases. . . . . . . . 93,252 93,252
Other . . . . . . . . . . . . . . . . . . . . . 407,965 407,965
Total Current Liabilities . . . . . . . 1,834,652 (55,150) 1,779,502
Deferred Federal Income Taxes . . . . . . . . . . 2,473,539 2,473,539
Deferred Investment Tax Credits . . . . . . . . . 456,043 456,043
Deferred Gain on Sale and Leaseback -
Rockport Plant Unit 2 . . . . . . . . . . . . . 415,226 415,226
Deferred Credits. . . . . . . . . . . . . . . . . 125,699 125,699
Total . . . . . . . . . . . . . . . . $15,712,699 $19,850 $15,732,549
The Pro Forma Adjustments are shown on Page 3 of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 3
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
C0NSOLIDATED BALANCE SHEET<PAGE>
December 31, 1994
PRO FORMA ADJUSTMENTS
<CAPTION>
Debit Credit
(in thousands)
<S> <C> <C>
1) Cash $227,597
Deferred Charges - Unamortized Debt Expense 7,403
Long-term Debt - Debentures $235,000
To record the issuance and sale of junior debentures at
100%* $80 million by Columbus Southern Power Company (CSPCO),
$65 million by Kentucky Power Company and $90 million by Ohio
Power Company (OPCO) and the related estimated expense of
the debts issuance.
2) Short-term Debt 55,150
Cash 55,150
To record the redemption by Kentucky Power Company of
short-term debt
3) Cumulative Preferred Stock-Not Subject to Mandatory Redempti 85,000
Cumulative Preferred Stock-Subject to Mandatory Redemption 75,000
Regulatory Assets - Unamortized Loss on
Reacquired Preferred Stock 6,665
Cash 166,665
To record the redemption of the $100 par value
Cumulative Preferred Stock at premiums listed below:
Redemption Principal Premium
Series Shares Price Retired Paid
(in thounsands)
CSPCO
9.50% 750,000 $106.33 $75,000 $4,748
OPCO
7.60% 350,000 $102.26 $35,000 791
7-6/10% 350,000 $102.11 $35,000 739
8.04% 150,000 $102.58 $15,000 387
TOTAL $160,000 $6,665
* Price assumed solely for the purpose of these
Pro Forma Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 3A<PAGE>
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
C0NSOLIDATED STATEMENT OF INCOME
Year Ended December 31, 1994
PRO FORMA ADJUSTMENTS
<CAPTION> Increase
(Decrease)
(in thousands)
<S> <C>
Interest on debentures @ 9%* $21,150
Amortization of Debt Issuance Expense over 30 years 247
Interest on retired short-term debt (1,621)
Federal Income Taxes @ 35% (6,921)
Preferred Stock Dividend Requirements: (13,651)
CSP
9.50% Series Cumulative Preferred Stock ($7,125,000)
OPCO
7.60% Series Cumulative Preferred Stock (2,660,000)
7-6/10% Series Cumulative Preferred Stock (2,660,000)
8.04% Series Cumulative Preferred Stock (1,206,000)
TOTAL ($13,651,000)
Amortization of Redemption Premium over 30 years: 222
CSP
9.50% Series Cumulative Preferred Stock 158,250
OPCO
7.60% Series Cumulative Preferred Stock 26,367
7-6/10% Series Cumulative Preferred Stock 24,617
8.04% Series Cumulative Preferred Stock 12,900
TOTAL 222,134
To reflect the pro forma changes in interest charges and
Preferred Stock Dividend Requirements associated with the
proposed transactions and the related federal income tax effect.
*Rate assumed solely for the purpose of these
Pro Forma Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 4
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
C0NSOLIDATED STATEMENT OF INCOME
Year Ended December 31, 1994
(in thousands, except per share amounts)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
Operating Revenues. . . . . . . . . . . . . . . . $5,504,670 $5,504,670
Operating Expenses:
Fuel and Purchased Power. . . . . . . . . . . . 1,745,245 1,745,245
Other Operation . . . . . . . . . . . . . . . . 997,235 997,235
Maintenance . . . . . . . . . . . . . . . . . . 544,312 544,312
Depreciation and Amortization . . . . . . . . . 572,189 572,189
Taxes Other Than Federal Income Taxes . . . . . 496,260 496,260
Federal Income Taxes. . . . . . . . . . . . . . 217,209 ($6,921) 210,288
Total Operating Expenses. . . . . . . . . . 4,572,450 (6,921) 4,565,529
Operating Income . . . . . . . . . . . . . . . . 932,220 6,921 939,141
Nonoperating Income:
Deferred Zimmer Plant Carrying
Charges (net of tax). . . . . . . . . . . . . 5,604 5,604
Other . . . . . . . . . . . . . . . . . . . . . 5,881 5,881
Total Nonoperating Income . . . . . . . . . 11,485 11,485
Income Before Interest Charges
and Preferred Dividends . . . . . . . . . . . . 943,705 6,921 950,626
Interest Charges (net). . . . . . . . . . . . . . 388,998 19,776 408,774
Preferred Stock Dividend
Requirements of Subsidiaries. . . . . . . . . . 54,695 (13,429) 41,266
Net Income . . . . . . . . . . . . . . . . . . . $500,012 $574 $500,586
Average Number of Shares Outstanding. . . . . . . 184,666 184,666
Earnings Per Share . . . . . . . . . . . . . . . $2.71 $2.71
Cash Dividends Paid Per Share . . . . . . . . . . $2.40 $2.40
The Pro Forma Adjustments are shown on Page 3A of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 5
AMERICAN ELECTRIC POWER COMPANY, INC. AND SUBSIDIARY COMPANIES
C0NSOLIDATED STATEMENT OF RETAINED EARNINGS
YEAR ENDED DECEMBER 31, 1994
(in thousands)
<S> <C>
Retained Earnings January 1 . . . . . . . . . . $1,269,283
Net Income. . . . . . . . . . . . . . . . . . . 500,012
Deductions:
Cash Dividends Declared . . . . . . . . . . . 443,101
Other . . . . . . . . . . . . . . . . . . . . 613
Retained Earnings December 31 . . . . . . . . . $1,325,581
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 6
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31, 1994
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
ASSETS
Electric Utility Plant:
Production. . . . . . . . . . . . . . . . . . . $1,461,484 $1,461,484
Transmission. . . . . . . . . . . . . . . . . . 306,744 306,744
Distribution. . . . . . . . . . . . . . . . . . 797,570 797,570
General . . . . . . . . . . . . . . . . . . . . 111,623 111,623
Construction Work In Progress . . . . . . . . . 52,156 52,156
Total Electric Utility Plant. . . . . . 2,729,577 2,729,577
Accumulated Depreciation. . . . . . . . . . . . 884,237 884,237
Net Electric Utility Plant. . . . . . . 1,845,340 1,845,340
Other Property and Investments. . . . . . . . . . 26,744 26,744
Current Assets:
Cash and Cash Equivalents . . . . . . . . . . . 14,065 ($2,268) 11,797
Accounts Receivable:
Customers . . . . . . . . . . . . . . . . . . 41,056 41,056
Affiliated Companies. . . . . . . . . . . . . 4,624 4,624
Miscellaneous . . . . . . . . . . . . . . . . 10,025 10,025
Allowance for Uncollectible Accounts. . . . . (1,768) (1,768)
Fuel. . . . . . . . . . . . . . . . . . . . . . 28,060 28,060
Materials and Supplies. . . . . . . . . . . . . 24,923 24,923
Accrued Utility Revenues. . . . . . . . . . . . 31,595 31,595
Prepayments . . . . . . . . . . . . . . . . . . 31,241 31,241
Total Current Assets. . . . . . . . . . 183,821 (2,268) 181,553
Regulatory Assets . . . . . . . . . . . . . 475,019 4,748 479,767
Deferred Charges. . . . . . . . . . . . . . . 63,418 2,520 65,938
Total . . . . . . . . . . . . . . . . $2,594,342 $5,000 $2,599,342<PAGE>
The Pro Forma Adjustments are shown on page 8 of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 7
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31, 1994
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization:
Common Stock. . . . . . . . . . . . . . . . . . $41,026 $41,026
Paid-in Capital . . . . . . . . . . . . . . . . 565,642 565,642
Retained Earnings . . . . . . . . . . . . . . . 46,976 46,976
Total Common Shareowner's Equity. . . . 653,644 653,644
Cumulative Preferred Stock-
Subject to Mandatory Redemption . . . . . . . 150,000 ($75,000) 75,000
Long-term Debt. . . . . . . . . . . . . . . . . 917,608 80,000 997,608
Total Capitalization. . . . . . . . . . 1,721,252 5,000 1,726,252
Other Noncurrent Liabilities. . . . . . . . . . . 25,861 25,861
Current Liabilities:
Long-term Debt Due Within One Year. . . . . . . 80,000 80,000
Accounts Payable - General. . . . . . . . . . . 34,934 34,934
Accounts Payable - Affiliated Companies . . . . 14,057 14,057
Taxes Accrued . . . . . . . . . . . . . . . . . 113,362 113,362
Interest Accrued. . . . . . . . . . . . . . . . 18,923 18,923
Other . . . . . . . . . . . . . . . . . . . . . 37,521 37,521
Total Current Liabilities . . . . . . . 298,797 298,797
Deferred Federal Income Taxes . . . . . . . . . . 467,593 467,593
Deferred Investment Tax Credits . . . . . . . . . 64,597 64,597
Deferred Credits. . . . . . . . . . . . . . . . . 16,242 16,242
Total . . . . . . . . . . . . . . . . $2,594,342 $5,000 $2,599,342
The Pro Forma Adjustments are shown on page 8 of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 8
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31, 1994
PRO FORMA ADJUSTMENTS<PAGE>
<CAPTION>
Debit Credit
(in thousands)
<S> <C> <C>
1) Cash $77,480
Deferred Charges - Unamortized Debt Expense 2,520
Long-term Debt - Debentures $80,000
To record the issuance and sale of junior debentures
at 100%* and the estimated expense of the debt
issuance.
2) Cumulative Preferred Stock - Subject to Mandatory Redemption 75,000
Regulatory Assets - Unamortized Loss on
Reacquired Preferred Stock 4,748
Cash 79,748
To record the redemption of the 9.50% Series $100 par value
Cumulative Preferred Stock at 106.33%.
* Rate assumed solely for the purpose of these
Pro Forma Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 8A
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Year Ended December 31, 1994
PRO FORMA ADJUSTMENTS
<CAPTION>
Increase
(Decrease)
(in thousands)
<S> <C>
Interest on new first mortgage bonds @ 9%* $7,200
Amortization of Debt Issuance Expense over 30 years. 84
Federal Income Taxes @ 35% (2,549)
Preferred Stock Dividend Requirements @ 9.50% (7,125)
Amortization of Premium on reacquired Cumulative Preferred
Stock over 30 years. 158
To reflect the pro forma changes in interest charges and
preferred stock dividend requirements associated with the
proposed transactions and related federal income tax effect.<PAGE>
* Rate assumed solely for the purpose of these
Pro Forma Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 9
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Year Ended December 31, 1994
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
Operating Revenues. . . . . . . . . . . . . . . . $1,031,151 $1,031,151
Operating Expenses:
Fuel. . . . . . . . . . . . . . . . . . . . . . 204,210 204,210
Purchased Power . . . . . . . . . . . . . . . . 134,540 134,540
Other Operation . . . . . . . . . . . . . . . . 175,102 175,102
Maintenance . . . . . . . . . . . . . . . . . . 71,629 71,629
Depreciation. . . . . . . . . . . . . . . . . . 83,180 83,180
Amortization of Zimmer Plant Phase-in Costs . . 27,144 27,144
Taxes Other Than Federal Income Taxes . . . . . 102,672 102,672
Federal Income Taxes. . . . . . . . . . . . . . 46,806 ($2,549) 44,257
Total Operating Expenses. . . . . . . . . . 845,283 (2,549) 842,734
Operating Income . . . . . . . . . . . . . . . . 185,868 2,549 188,417
Nonoperating Income:
Deferred Zimmer Plant Carrying
Charges (net of tax). . . . . . . . . . . . . 5,604 5,604
Other . . . . . . . . . . . . . . . . . . . . . 1,426 1,426
Total Nonoperating Income . . . . . . . . . 7,030 7,030
Income Before Interest Charges. . . . . . . . . . 192,898 2,549 195,447
Interest Charges. . . . . . . . . . . . . . . . . 83,053 7,284 90,337
Net Income. . . . . . . . . . . . . . . . . . . . 109,845 (4,735) 105,110
Preferred Stock Dividend Requirements . . . . . . 12,084 (6,967) 5,117
Earnings Applicable to Common Stock . . . . . . . $97,761 $2,232 $99,993
The Pro Forma Adjustments are shown on page 8A of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 10
COLUMBUS SOUTHERN POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
YEAR ENDED DECEMBER 31, 1994
(in thousands)
<S> <C>
Retained Earnings January 1 . . . . . . . . . . $18,288
Net Income. . . . . . . . . . . . . . . . . . . 109,845
Deductions:
Cash Dividends Declared:
Common Stock. . . . . . . . . . . . . . . . 68,788
Preferred Stock . . . . . . . . . . . . . . 12,230
Other . . . . . . . . . . . . . . . . . . . . 139
Retained Earnings December 31 . . . . . . . . . $46,976
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 11
KENTUCKY POWER COMPANY
BALANCE SHEET
December 31, 1994
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
ASSETS
Electric Utility Plant:
Production. . . . . . . . . . . . . . . . . . $224,365 $224,365
Transmission. . . . . . . . . . . . . . . . . 258,178 258,178
Distribution. . . . . . . . . . . . . . . . . 297,754 297,754
General . . . . . . . . . . . . . . . . . . . 56,613 56,613
Construction Work In Progress . . . . . . . . 15,002 15,002
Total Electric Utility Plant. . . . . 851,912 851,912
Accumulated Depreciation
and Amortization. . . . . . . . . . . . . . 259,984 259,984
Net Electric Utility Plant. . . . . . 591,928 591,928
Other Property and Investments. . . . . . . . . 6,533 6,533
Current Assets:
Cash and Cash Equivalents . . . . . . . . . . 879 $7,802 8,681
Accounts Receivable:
Customers . . . . . . . . . . . . . . . . . 19,144 19,144
Affiliated Companies. . . . . . . . . . . . 514 514
Miscellaneous . . . . . . . . . . . . . . . 2,048 2,048
Allowance for Uncollectible Accounts. . . . (260) (260)
Fuel. . . . . . . . . . . . . . . . . . . . . 11,735 11,735
Materials and Supplies. . . . . . . . . . . . 9,615 9,615
Accrued Utility Revenues. . . . . . . . . . . 9,128 9,128
Prepayments. . . . . . . . . . . . . . . . . 1,476 1,476
Total Current Assets. . . . . . . . . 54,279 7,802 62,081<PAGE>
Regulatory Assets . . . . . . . . . . . . . . . 50,519 50,519
Deferred Charges. . . . . . . . . . . . . . . . 11,049 2,048 13,097
Total . . . . . . . . . . . . . . . $714,308 $9,850 $724,158
The Pro Forma Adjustments are shown on Page 13 of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 12
KENTUCKY POWER COMPANY
BALANCE SHEET
December 31, 1994
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES $65,000
Capitalization:
Common Stock. . . . . . . . . . . . . . . . . $50,450 $50,450
Paid-in Capital . . . . . . . . . . . . . . . 68,750 68,750
Retained Earnings . . . . . . . . . . . . . . 89,173 89,173
Total Common Shareowners' Equity. . . 208,373 208,373
Long-term Debt. . . . . . . . . . . . . . . . 253,583 $65,000 318,583
Total Capitalization. . . . . . . . . 461,956 65,000 526,956
Other Noncurrent Liabilities. . . . . . . . . . 11,449 11,449
Current Liabilities:
Short-term Debt . . . . . . . . . . . . . . . 55,150 (55,150) 0
Accounts Payable - General. . . . . . . . . . 11,119 11,119
Accounts Payable - Affiliated Companies . . . 8,301 8,301
Customer Deposits . . . . . . . . . . . . . . 4,297 4,297
Taxes Accrued . . . . . . . . . . . . . . . . 6,256 6,256
Interest Accrued. . . . . . . . . . . . . . . 5,794 5,794
Other . . . . . . . . . . . . . . . . . . . . 14,467 14,467
Total Current Liabilities . . . . . . 105,384 (55,150) 50,234
Deferred Federal Income Taxes . . . . . . . . . 115,003 115,003
Deferred Investment Tax Credits . . . . . . . . 15,288 15,288
Deferred Credits. . . . . . . . . . . . . . . . 5,228 5,228
Total . . . . . . . . . . . . . . . $714,308 $9,850 $724,158
The Pro Forma Adjustments are shown on Page 13 of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 13
KENTUCKY POWER COMPANY
BALANCE SHEET
December 31, 1994
PRO FORMA ADJUSTMENTS
<CAPTION>
Debit Credit
(in thousands)
<S> <C> <C>
1) Cash $62,952
Deferred Charges - Unamortized Debt Expense 2,048
Long-term Debt - Debentures $65,000
To record the issuance and sale of junior debentures
at 100%* and the estimated expense of the debt
issuance.
2) Short-term Debt 55,150
Cash 55,150
To record the redemption of short-term debt
* Rate assumed solely for the purpose of these
Pro Forma Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 13A
KENTUCKY POWER COMPANY
STATEMENT OF INCOME
Year Ended December 31, 1994
PRO FORMA ADJUSTMENTS
<CAPTION>
Increase
(Decrease)
(in thousands)
<S> <C>
Interest on debentures @ 9%* $5,850
Amortization of Debt Issuance Expense over 30 years 68
Interest on retired short-term debt (1,621)
Federal Income Taxes @ 35% (1,504)
To reflect the pro forma changes in interest charges
associated with the proposed transactions and the
related federal income tax effect.<PAGE>
* Price assumed solely for the purpose of these
Pro Forma Financial Statements.
<PAGE>
</TABLE>
<TABLE>
FINANCIAL STATEMENTS PAGE 14
KENTUCKY POWER COMPANY
STATEMENT OF INCOME
Year Ended December 31, 1994
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
Operating Revenues. . . . . . . . . . . . . . . $307,443 $307,443
Operating Expenses:
Fuel. . . . . . . . . . . . . . . . . . . . . 62,072 62,072
Purchased Power . . . . . . . . . . . . . . . 94,565 94,565
Other Operation . . . . . . . . . . . . . . . 39,237 39,237
Maintenance . . . . . . . . . . . . . . . . . 31,967 31,967
Depreciation and Amortization . . . . . . . . 23,047 23,047
Taxes Other Than Federal Income Taxes . . . . 7,825 7,825
Federal Income Taxes. . . . . . . . . . . . . 2,641 ($1,504) 1,137
Total Operating Expenses. . . . . . . . . 261,354 (1,504) 259,850
Operating Income. . . . . . . . . . . . . . . . 46,089 1,504 47,593
Nonoperating Loss . . . . . . . . . . . . . . . (102) (102)
Income Before Interest Charges. . . . . . . . . 45,987 1,504 47,491
Interest Charges. . . . . . . . . . . . . . . . 20,714 4,297 25,011
Net Income. . . . . . . . . . . . . . . . . . . $25,273 ($2,793) $22,480
The Pro Forma Adjustments are shown on page 13A of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 15
KENTUCKY POWER COMPANY
STATEMENT OF RETAINED EARNINGS
YEAR ENDED DECEMBER 31, 1994
(in thousands)
<S> <C>
Retained Earnings January 1 . . . . . . . . . $85,296
Net Income. . . . . . . . . . . . . . . . . . 25,273
Cash Dividends Declared . . . . . . . . . . . 21,396<PAGE>
Retained Earnings December 31 . . . . . . . . $89,173
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 16
OHIO POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31, 1994
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
ASSETS
Electric Utility Plant:
Production. . . . . . . . . . . . . . . . . . . $2,516,390 $2,516,390
Transmission. . . . . . . . . . . . . . . . . . 790,736 790,736
Distribution. . . . . . . . . . . . . . . . . . 798,387 798,387
General (including mining assets) . . . . . . . 782,719 782,719
Construction Work In Progress . . . . . . . . . 49,889 49,889
Total Electric Utility Plant. . . . . . 4,938,121 4,938,121
Accumulated Depreciation
and Amortization. . . . . . . . . . . . . . . 2,077,626 2,077,626
Net Electric Utility Plant. . . . . . . 2,860,495 2,860,495
Other Property and Investments. . . . . . . . . . 120,856 120,856
Current Assets:
Cash and Cash Equivalents . . . . . . . . . . . 30,700 $248 30,948
Accounts Receivable:
Customers . . . . . . . . . . . . . . . . . . 94,984 94,984
Affiliated Companies. . . . . . . . . . . . . 37,257 37,257
Miscellaneous . . . . . . . . . . . . . . . . 26,440 26,440
Allowance for Uncollectible Accounts. . . . . (1,019) (1,019)
Fuel. . . . . . . . . . . . . . . . . . . . . . 147,152 147,152
Materials and Supplies. . . . . . . . . . . . . 67,719 67,719
Accrued Utility Revenues. . . . . . . . . . . . 28,775 28,775
Prepayments . . . . . . . . . . . . . . . . . . 43,894 43,894
Total Current Assets. . . . . . . . . . 475,902 248 476,150
Regulatory Assets . . . . . . . . . . . . . 521,855 1,917 523,772
Deferred Charges. . . . . . . . . . . . . . 154,501 2,835 157,336
Total . . . . . . . . . . . . . . . . $4,133,609 $5,000 $4,138,609
The Pro Forma Adjustments are shown on Page 18 of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 17
OHIO POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31, 1994
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
CAPITALIZATION AND LIABILITIES
Capitalization:
Common Stock. . . . . . . . . . . . . . . . . . $321,201 $321,201
Paid-in Capital . . . . . . . . . . . . . . . . 463,100 463,100
Retained Earnings . . . . . . . . . . . . . . . 483,222 483,222
Total Common Shareowner's Equity. . . . 1,267,523 1,267,523
Cumulative Preferred Stock:
Not Subject to Mandatory Redemption . . . . . 126,240 ($85,000) 41,240
Subject to Mandatory Redemption . . . . . . . 115,000 115,000
Long-term Debt. . . . . . . . . . . . . . . . . 1,188,319 90,000 1,278,319
Total Capitalization. . . . . . . . . . 2,697,082 5,000 2,702,082
Other Noncurrent Liabilities. . . . . . . . . . . 181,446 181,446
Current Liabilities:
Long-term Debt Due Within One Year. . . . . . 670 670
Short-term Debt . . . . . . . . . . . . . . . . 17,235 17,235
Accounts Payable - General. . . . . . . . . . . 93,770 93,770
Accounts Payable - Affiliated Companies . . . . 28,662 28,662
Taxes Accrued . . . . . . . . . . . . . . . . . 156,525 156,525
Interest Accrued. . . . . . . . . . . . . . . . 22,681 22,681
Obligations Under Capital Leases. . . . . . . . 25,314 25,314
Other . . . . . . . . . . . . . . . . . . . . . 95,218 95,218
Total Current Liabilities . . . . . . . 440,075 440,075
Deferred Federal Income Taxes . . . . . . . . . . 695,115 695,115
Deferred Investment Tax Credits . . . . . . . . . 42,828 42,828
Deferred Credits. . . . . . . . . . . . . . . . . 77,063 77,063
Total . . . . . . . . . . . . . . . . $4,133,609 $5,000 $4,138,609
The Pro Forma Adjustments are shown on Page 18 of these Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 18
OHIO POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEET
December 31, 1994
PRO FORMA ADJUSTMENTS
<CAPTION>
Debit Credit<PAGE>
(in thousands)
<S> <C> <C>
1) Cash $87,165
Deferred Charges - Unamortized Debt Expense 2,835
Long-term Debt - Debentures $90,000
To record the issuance and sale of junior debentures
at 100%* and the estimated expense of the debt
issuance.
2) Cumulative Preferred Stock-Not Subject Mandatory Redemption 85,000
Regulatory Assets-Loss on Reacquired Preferred Stock 1,917
Cash 86,917
To record the redemption of the following $100 par
value Cumulative Preferred Stock at their respective
premium using cash and defering the premium.
Redemption Total
Series Shares Price Paid
7.60% 350,000 $102.26 $35,791,000
7-6/10% 350,000 $102.11 $35,738,500
8.04% 150,000 $102.58 $15,387,000
-----------
Total $86,916,500
===========
* Rate assumed solely for the purpose of these
Pro Forma Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 18A
OHIO POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Year Ended December 31, 1994
PRO FORMA ADJUSTMENTS
<CAPTION>
Increase
(Decrease)
(in thousands)
<S> <C>
Interest on debentures @ 9%* $8,100
Amortization of Debt Issuance Expense over 30 years 95
Federal Income Taxes @ 35% (2,868)
Preferred Stock Dividend Requirements on Series: (6,526)
7.60% Series Cumulative Preferred Stock $2,660,000
7-6/10% Series Cumulative Preferred Stock 2,660,000<PAGE>
8.04% Series Cumulative Preferred Stock 1,206,000
Amortization of loss on Cumulative Preferred
Stock over 30 years 64
7.60% Series Cumulative Preferred Stock 791,000
7-6/10% Series Cumulative Preferred Stock 738,500
8.04% Series Cumulative Preferred Stock 387,000
To reflect the pro forma changes in interest charges and
preferred stock dividend requirements associated with the
proposed transactions and the related income tax effect.
* Rate assumed solely for the purpose of these
Pro Forma Financial Statements.
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 19
OHIO POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF INCOME
Year Ended December 31, 1994
(in thousands)
<CAPTION>
Pro Forma
Per Books Adjustments Pro Forma
--------- ----------- ---------
<S> <C> <C> <C>
Operating Revenues. . . . . . . . . . . . . . . . $1,738,726 $1,738,726
Operating Expenses:
Fuel. . . . . . . . . . . . . . . . . . . . . . 682,537 682,537
Purchased Power . . . . . . . . . . . . . . . . 59,956 59,956
Other Operation . . . . . . . . . . . . . . . . 207,292 207,292
Maintenance . . . . . . . . . . . . . . . . . . 150,568 150,568
Depreciation and Amortization . . . . . . . . . 132,498 132,498
Taxes Other Than Federal Income Taxes . . . . . 181,435 181,435
Federal Income Taxes. . . . . . . . . . . . . . 79,567 ($2,868) 76,699
Total Operating Expenses. . . . . . . . . . 1,493,853 (2,868) 1,490,985
Operating Income . . . . . . . . . . . . . . . . 244,873 2,868 247,741
Nonoperating Income . . . . . . . . . . . . . . . 7,722 7,722
Income Before Interest Charges. . . . . . . . . . 252,595 2,868 255,463
Interest Charges. . . . . . . . . . . . . . . . . 89,969 8,195 98,164
Net Income. . . . . . . . . . . . . . . . . . . . 162,626 (5,327) 157,299
Preferred Stock Dividend Requirements . . . . . . 15,301 (6,462) 8,839
Earnings Applicable to Common Stock . . . . . . . $147,325 $1,135 $148,460
The Pro Forma Adjustments are shown on Page 18A of these Financial Statements.<PAGE>
</TABLE>
<PAGE>
<TABLE>
FINANCIAL STATEMENTS PAGE 20
OHIO POWER COMPANY AND SUBSIDIARIES
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
YEAR ENDED DECEMBER 31, 1994
(in thousands)
<S> <C>
Retained Earnings January 1 . . . . . . . . . . $474,500
Net Income. . . . . . . . . . . . . . . . . . . 162,626
Deductions:
Cash Dividends Declared:
Common Stock. . . . . . . . . . . . . . . . 138,468
Preferred Stock . . . . . . . . . . . . . . 15,301
Other . . . . . . . . . . . . . . . . . . . . 135
Retained Earnings December 31 . . . . . . . . . $483,222
</TABLE>
