<PAGE>
CONESVILLE COAL PREPARATION COMPANY
QUARTERLY REPORT PER REQUIREMENTS
OF HOLDING COMPANY ACT RELEASE NO. 23463
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1998
CONTENTS
Page
Statements of Income 1
Balance Sheets 2
Statements of Quantities of Coal Processed and
Customer Billings for Coal Washing Services 3
Statements of Cost of Operation 4
Price Per Ton of Coal Deliveries 5
<PAGE>
<PAGE>
<TABLE>
CONESVILLE COAL PREPARATION COMPANY
STATEMENTS OF INCOME
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1998
(UNAUDITED)
<CAPTION>
Three
Months
Month Ended Ended
July 31, August 31, September 30, September 30,
1998 1998 1998 1998
(in thousands)
<S> <C> <C> <C> <C>
OPERATING REVENUES -
Services to Parent . . . $493 $816 $935 $2,244
COST OF OPERATION. . . . . 483 804 924 2,211
OPERATING INCOME . . . . . 10 12 11 33
FEDERAL INCOME TAXES . . . 4 6 6 16
NET INCOME . . . . . . . . $ 6 $ 6 $ 5 $ 17
The common stock of the Company is wholly
owned by Columbus Southern Power Company.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
CONESVILLE COAL PREPARATION COMPANY
BALANCE SHEETS
BY MONTH-END, FOR THE QUARTER ENDED SEPTEMBER 30, 1998
(UNAUDITED)
<CAPTION>
July 31, August 31, September 30,
1998 1998 1998
(in thousands)
<S> <C> <C> <C>
ASSETS
MINING PLANT:
Mining Plant in Service . . . . . . . . . $ 823 $ 828 $ 848
Accumulated Amortization. . . . . . . . . 526 532 525
NET MINING PLANT . . . . . . . . . 297 296 323
OTHER PROPERTY AND INVESTMENTS. . . . . . . 792 785 830
CURRENT ASSETS:
Cash and Cash Equivalents . . . . . . . . 80 51 42
Accounts Receivable:
General . . . . . . . . . . . . . . . . 18 12 6
Affiliated Companies. . . . . . . . . . 1,549 2,062 2,378
Materials and Supplies. . . . . . . . . . 823 806 822
Other . . . . . . . . . . . . . . . . . . 4 4 3
TOTAL CURRENT ASSETS . . . . . . . 2,474 2,935 3,251
DEFERRED INCOME TAXES . . . . . . . . . . . 705 694 699
REGULATORY ASSETS . . . . . . . . . . . . . 166 162 159
DEFERRED CHARGES. . . . . . . . . . . . . . 35 40 36
TOTAL. . . . . . . . . . . . . . $4,469 $4,912 $5,298
CAPITALIZATION AND LIABILITIES
SHAREOWNER'S EQUITY:
Common Stock - Par Value $1,000:
Authorized - 500 Shares
Outstanding - 100 Shares. . . . . . . . $ 100 $ 100 $ 100
Paid-in Capital . . . . . . . . . . . . . 400 400 400
Retained Earnings . . . . . . . . . . . . 861 867 872
TOTAL SHAREHOLDER'S EQUITY . . . . 1,361 1,367 1,372
OTHER NONCURRENT LIABILITIES. . . . . . . . 1,283 1,297 1,339
CURRENT LIABILITIES:
Accounts Payable:
General . . . . . . . . . . . . . . . . 61 134 122
Affiliated Companies. . . . . . . . . . 169 270 224
Accrued Rentals . . . . . . . . . . . . . 312 601 890
Other . . . . . . . . . . . . . . . . . . 394 419 440
TOTAL CURRENT LIABILITIES. . . . . 936 1,424 1,676
DEFERRED GAIN ON SALE OF PLANT. . . . . . . 809 789 769
REGULATORY LIABILITIES. . . . . . . . . . . 80 35 142
TOTAL. . . . . . . . . . . . . . $4,469 $4,912 $5,298
/TABLE
<PAGE>
<PAGE>
<TABLE>
CONESVILLE COAL PREPARATION COMPANY
STATEMENTS OF QUANTITIES OF COAL PROCESSED AND
CUSTOMER BILLINGS FOR COAL WASHING SERVICES
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1998
<CAPTION>
Services Rendered to
Columbus Southern Raw Clean
Power Company's Coal Coal
Conesville Plant* Input Rejects Output Unit Price Amount
(Month/Year) (tons) (tons) (tons) (per ton) (000)
<S> <C> <C> <C> <C> <C>
July 1998. . . . . . . . . . 124,248 19,948 104,300 $4.73 $493
August 1998. . . . . . . . . 210,281 26,585 183,696 $4.44 $816
September 1998 . . . . . . . 256,151 32,773 223,378 $4.19 $935
* Jointly owned by Cincinnati Gas & Electric Company, Dayton Power & Light Company
and Columbus Southern Power Company, the parent of Conesville Coal Preparation
Company.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
CONESVILLE COAL PREPARATION COMPANY
STATEMENTS OF COST OF OPERATION
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1998
<CAPTION>
Three
Months
July August September Ended
1998 1998 1998 9/30/98
(in thousands)
<S> <C> <C> <C> <C>
Labor-UMW*. . . . . . . . . . . . . . . . .$ 50 $ 87 $ 92 $ 229
Benefits-UMW* . . . . . . . . . . . . . . . 75 87 64 226
Office Salaries and Benefits. . . . . . . . 85 79 74 238
Operating Materials . . . . . . . . . . . . 43 28 49 120
Maintenance - Materials and Services. . . . 19 47 54 120
Electricity . . . . . . . . . . . . . . . . 28 51 41 120
Other Billed Services . . . . . . . . . . . 12 102 57 171
Rentals . . . . . . . . . . . . . . . . . . 319 320 320 959
Amortization of Deferred Gain
on Sale of Plant. . . . . . . . . . . . . (19) (20) (20) (59)
Depreciation. . . . . . . . . . . . . . . . 2 2 3 7
Cleaning Cost Normalization** . . . . . . . (188) (45) 107 (126)
Other . . . . . . . . . . . . . . . . . . . 57 66 83 206
Total . . . . . . . . . . . . . .$ 483 $ 804 $ 924 $2,211
* United Mine Workers of America.
** Represents the deferral/accrual required to establish revenue based on forecasted
results for the remainder of the year. The amount of cleaning cost normalization
is established on an "overall" company basis (i.e., not itemized) and is
eliminated by year-end.
</TABLE>
<PAGE>
<PAGE>
<TABLE>
COLUMBUS SOUTHERN POWER COMPANY
PRICE PER TON OF COAL DELIVERIES
BY MONTH, FOR THE QUARTER ENDED SEPTEMBER 30, 1998
<CAPTION>
July August September
1998 1998 1998
<S> <C> <C> <C>
Clean Coal Deliveries from Conesville Coal
Preparation Plant (a) . . . . . . . . . . . . . . $42.81 * $42.31 * $38.84 *
Notes: (a) Coal cleaned by Conesville Coal Preparation Plant and delivered to
Columbus Southern Power's Conesville Generating Plant. These deliveries of
clean coal will normally consist of coal cleaned from beginning inventory
as well as current month deliveries.
* Average price per ton.
</TABLE>
