FORM U-3A-2
FILE NO. 69-53-3
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION
UNDER RULE U-3A-2 FROM THE PROVISIONS OF THE
PUBLIC UTILITY HOLDING COMPANY ACT OF 1935
To Be Filed Annually Prior to March 1
Consolidated Papers, Inc. (herein sometimes designated as the "Claimant")
hereby files with the Securities and Exchange Commission, pursuant to Rule 2,
its statement claiming exemption of itself as a holding company, and of each
of its subsidiaries as such, from the provisions of the Public Utility Holding
Company Act of 1935. Claimant and the system of which it is the top "holding
company" fall within the exemptions granted by said Rule 2. In support of
such claim for exemption the following information is submitted:
1. Name, State of organization, location, and nature of business of Claimant
and every subsidiary thereof, other than any exempt wholesale generator
(EWG) or foreign utility company in which Claimant directly or indirectly
holds an interest.
The Claimant, Consolidated Papers, Inc., is a Wisconsin corporation having
its principal office and place of business at Wisconsin Rapids, Wisconsin,
and is engaged in the business of manufacturing and selling paper.
Niagara of Wisconsin Paper Corporation is a Wisconsin corporation, all of
the common stock of which is owned by Claimant Its principal office and
place of business is the City of Niagara, Wisconsin. It is engaged
primarily in the business of manufacturing and selling paper.
Lake Superior Paper Industries is a Minnesota corporation, all of the
common stock of which is owned by LSPI Duluth Corp. and LSPI Paper
Corporation. All of the common stock of LSPI Duluth Corp. and LSPI Paper
Corporation is owned by Claimant. The principal office and place of
business of Lake Superior Paper Industries is the City of Duluth,
Minnesota. It is engaged primarily in the business of manufacturing and
selling paper.
Superior Recycled Fiber Industries is a Minnesota corporation, all of the
common stock of which is owned by LSPI Fiber Co. and Superior Recycled
Fiber Corporation. All of the common stock of LSPI Fiber Co. and Superior
Recycled Fiber Corporation is owned by Claimant. The principal office and
place of business of Superior Recycled Fiber Industries is the City of
Duluth, Minnesota. It is engaged primarily in the production and selling
of recycled pulp.
Consolidated Water Power Company, a public utility company, is a Wisconsin
corporation, all of the capital stock of which is owned by Claimant. Its
principal office and place of business is the City of Wisconsin Rapids,
Wisconsin. It is engaged primarily in the generation, transmission,
distribution and sale of electric energy and water power.
Consolidated Papers Foreign Sales Corporation is a U.S. Virgin Islands
corporation, all of the common stock of which is owned by Claimant. Its
principal office and place of business is the City of Charlotte Amalie,
St. Thomas, U.S. Virgin Islands. It manages all of the Claimant's export
operations with respect to products which qualify as export property as
defined in Section 927 of the Internal Revenue Code.
Newaygo Forest Products Limited is a corporation of the Province of
Ontario, Canada, all of the common stock of which is owned by Claimant.
Its principal office and place of business is at Mead in said Province.
Its principal business is the ownership of timber and timberlands in
Canada.
Consolidated Papers International Leasing, L.L.C. is a Delaware limited
liability company. It is owned 99% by Claimant and 1% by Consolidated
Water Power Company. Its principal office and place of business is in
Manchester, United Kingdom. It is a leasing company.
CONDEPCO, Inc. is a Delaware corporation, all of the common stock of which
is owned by Claimant. Its principal office and place of business is in
Dover, Delaware. It is a financial management company.
Wisconsin Valley Improvement Company is a Wisconsin corporation having its
principal office and place of business in the City of Wausau, Wisconsin.
It neither controls nor is it controlled by or under common control with
Claimant, and it is a "subsidiary" of Claimant and Consolidated Water
Power Company only by virtue of the definition of Section 2(a)(8)(A) of
the Public Utility Holding Company Act of 1935. It operates a system of
dams and water reservoirs on the Wisconsin River and tributary streams to
produce as nearly a uniform stream flow as practicable through all
seasons, and charges to benefited power plant owners, water tolls as
authorized semi-annually by the Public Service Commission of Wisconsin,
all pursuant to special enactments of the Wisconsin Legislature (as
amended by Chapter 497, Wisconsin Laws of 1939). It generates no electric
energy and renders no public utility services. Its financial statements
are not normally consolidated with those of Claimant or any other company,
and are omitted from the financial statements herein as not material.
Consolidated Water Power Company on December 31, 1996 owned approximately
33.8% of the outstanding stock of Wisconsin River Power Company, a
Wisconsin corporation having its principal office at Wisconsin Rapids,
Wisconsin, (herein sometimes referred to as "River Company"). This
ownership was acquired as of December 31, 1974 from Claimant. The nature
of the business of River Company is as set forth in the findings and
opinion of the Commission entered in reference to River Company on January
29, 1948, in File Nos. 70-1656 and 31-551 (27 SEC Decisions, p. 539),
pursuant to the Public Utility Holding Company Act of 1935, to which
findings and opinion reference is hereby made with the same effect as
though the contents thereof in respect to the nature of such business were
set forth at length herein. Briefly, such business presently consists of
operation of two dams and hydroelectric plants on the Wisconsin River.
The output of these two plants is sold in equal parts to three companies
including Consolidated Water Power Company. Consolidated Water Power
Company and the other two customers own all outstanding stock of Wisconsin
River Power Company in substantially equal parts.
Neither Claimant nor any subsidiary thereof holds an interest, either
directly or indirectly, in any EWG or foreign utility company.
2. A brief description of the properties of Claimant and each of its
subsidiary public utility companies used for the generation, transmission,
and distribution of electric energy for sale, or for the production,
transmission, and distribution of natural or manufactured gas, indicating
the location of principal generating plants, transmission lines, producing
fields, gas manufacturing plants, and electric and gas distribution
facilities, including all such properties which are outside the State in
which Claimant and its subsidiaries are organized and all transmission or
pipelines which deliver or receive electric energy or gas at the borders
of such State.
The properties of Consolidated Water Power Company are used primarily for
the generation and local transmission of energy sold to Claimant and
consumed at Claimant's plants but are also used for the generation and
local transmission and distribution of electric energy sold to the
purchasers of electric energy as follows:
a. Distributed by it at retail directly to approximately one thousand
residential, commercial, industrial, and rural consumers in the City
of Wisconsin Rapids, Village of Biron, and Town of Grand Rapids, Wood
County, Wisconsin, and Towns of Plover and Grant, Portage County,
Wisconsin.
b. Sold at wholesale to Wisconsin Power and Light Company at the City of
Wisconsin Rapids and to Wisconsin Public Service Corporation at the
Town of Grand Rapids and at the City of Stevens Point, Wisconsin.
Consolidated Water Power Company has powerhouses and dams for the
generation of such electric energy at Wisconsin Rapids, Wisconsin; Village
of Biron, Wisconsin; City of Stevens Point, Wisconsin; Village of Whiting,
Wisconsin; and Town of Eau Pleine, Portage County, Wisconsin. It has
electric transmission lines connecting said plants and connecting with the
plants of the Claimant and with the Petenwell plant of Wisconsin River
Power Company. Consolidated Water Power Company owns all necessary
flowage rights in connection with said dams and necessary for the
operation of its hydroelectric plants.
None of the properties of Consolidated Water Power Company used for the
generation, transmission, or distribution of electric energy for sale is
located outside of the Counties of Wood, Portage, Marathon, and Adams,
Wisconsin; no electric energy is sold or delivered by it outside of the
State of Wisconsin; and no electric energy is delivered to or received by
it at the borders of such State. The business of Consolidated Water Power
Company is entirely intrastate.
The properties of Wisconsin River Power Company consist of its Petenwell
hydroelectric plant having a nameplate capacity of 20,000 KW and its
Castle Rock hydroelectric plant having a nameplate capacity of 15,000 KW.
Both plants are located on the Wisconsin River south of Wisconsin Rapids,
Wisconsin. All electric energy produced by River Company has been and
will be sold and delivered at the plant sites which are wholly within the
State of Wisconsin, and no electric energy is to be delivered to or
received by it outside the border of said State. The business of River
Company is entirely intrastate.
3. The following information for the last calendar year with respect to
Claimant and each of its subsidiary public utility companies:
a. Number of KWH of electric energy sold (at retail or wholesale) and
Mcf. of natural or manufactured gas distributed at retail.
Neither Claimant nor any subsidiary thereof sells or distributes any
natural or manufactured gas at retail or wholesale either within or
outside of the State of Wisconsin or at the state line.
Neither Claimant nor any subsidiary thereof other than Consolidated Water
Power Company and Wisconsin River Power Company sells or distributes any
electric energy at retail or wholesale either within or outside of the
State of Wisconsin or at the state line, provided however Niagara of
Wisconsin Paper Corporation sells some power back to its supplier,
Wisconsin Electric Power Company, at a buy-back rate when machines are
down and power generation is available.
The number of KWH of electric energy sold at retail or wholesale during
the twelve months ended December 31, 1996, by Consolidated Water Power
Company and Wisconsin River Power Company and places where such sales were
made are set forth in Exhibit "AA" annexed hereto and made a part hereof.
b. Number of KWH of electric energy and Mcf. of natural or manufactured
gas distributed at retail outside the State in which each such company
is organized.
None.
c. Number of KWH of electric energy and Mcf. of natural or manufactured
gas sold at wholesale outside the State in which each such company is
organized or at the State line.
None.
d. Number of KWH of electric energy and Mcf. of natural or manufactured
gas purchased outside the State in which each such company is
organized or at the State line.
Consolidated Water Power Company during the year ending December 31,
1996 purchased 6,240,000 KWHs of electric energy outside the State.
4. The following information for the reporting period with respect to
Claimant and each interest it holds directly or indirectly in an EWG or a
foreign utility company, stating monetary amounts in United States
dollars:
a. Name, location, business address and description of the facilities
used by the EWG or foreign utility for the generation, transmission
and distribution of electric energy for sale or for the distribution
at retail of natural or manufactured gas.
Not applicable.
b. Name of each system company that holds an interest in such EWG or
foreign utility company; and description of the interest held.
Not applicable.
c. Type and amount of capital invested, directly or indirectly, by the
holding company claiming exemption; any direct or indirect guarantee
of the security of the EWG or foreign utility company by the holding
company claiming exemption; and any debt or other financial obligation
for which there is recourse, directly or indirectly, to the holding
company claiming exemption or another system company, other than the
EWG or foreign utility company.
Not applicable.
d. Capitalization and earnings of the EWG or foreign utility company
during the reporting period.
Not applicable.
e. Identify any service, sales or construction contract(s) between the
EWG or foreign utility company and a system company, and describe the
services to be rendered or goods sold and fees or revenues under such
agreement(s).
Not applicable.
EXHIBIT "A"
A consolidating statement of income and surplus of the Claimant and its
subsidiary companies for the last calendar year, together with a consolidating
balance sheet of Claimant and its subsidiary companies as of the close of such
calendar year, excluding Wisconsin River Power Company (not normally
consolidated), and a separate balance sheet and statement of income and surplus
of Wisconsin River Power Company.
<TABLE>
CONSOLIDATED PAPERS, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF NET INCOME
AS OF DECEMBER 31, 1996
<CAPTION>
Consoli-
dated
Sup- Consol- Newaygo Papers
Niagara erior idated For- Forest Interna- Intraco./
Consolidated of Lake Re- Water eign Pro- tional Interco. Con-
Papers Wis- Superior cycled Power Sales ducts Leasing Elim- solidated
Inc. consin Paper Fiber Company Corp. Limited L.L.C. Condepco inations Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Outside sales
- net $1,204,912 $128,877 $174,404 $35,586 $ 662 - $ 650 - - - $1,545,091
Intracompany
sales 589,328 - - - - - - - - $(589,328) -
Intercompany
sales 2,449 19 - 15,593 30,037 - 1,477 - - ( 49,575) -
Total Sales 1,796,689 128,896 174,404 51,179 30,699 - 2,127 - - (638,903) 1,545,091
Less: Cost
of sales 1,466,162 137,843 141,440 44,426 27,309 - 1,533 $(4,506) - (638,903) 1,175,304
Gross Profit
or (Loss) 330,527 (8,947) 32,964 6,753 3,390 - 594 4,506 - - 369,787
Admn., Selling,
& General
Expenses
Administra-
tive
expenses 53,167 - - 120 1,053 $ 3 - 13 - - 54,236
Selling
expenses 17,719 - - - - - - - - - 17,839
Research &
Development
expenses 6,452 - - - - - - - - - 6,452
Total 77,338 - - 120 1,053 3 - 13 - - 78,527
Net Profit
or (Loss)
From
Opera-
tions 253,189 (8,947) 32,964 6,633 2,337 (3) 594 4,493 - - 291,260
Other Income
Dividends
received 1 - - - - - - - - - 1
Interest
earned 174 - 28 172 - - - 9 $10,616 - 10,999
Rentals -
net 155 - - - - - - - - - 155
Royalties -
net 246 - - - - - - - - - 246
Profit or
(loss)on
disposal of
capital
assets 2,834 48 - - - - - - - - 2,882
Equity in
earnings
of other
companies 2,800 - - - 541 - - - - - 3,341
Miscellaneous 669 17 34 - - 275 1 - 206 - 1,202
Total 6,879 65 62 172 541 275 1 9 10,822 - 18,826
Total Income or
(Loss) 260,068 (8,882) 33,026 6,805 2,878 272 595 4,502 10,822 - 310,086
Other Deduc-
tions
Interest 5,236 726 - - - - - 9,336 - - 15,298
Carrying
charge
on timber
resources 1,848 - - - - - - - - - 1,848
Carrying
charge
on non-
operational
land 30 - - - - - - - - - 30
Miscellaneous 3,702 (205) 120 - 61 19 60 ( 17) - - 3,740
Total 10,816 521 120 - 61 19 60 9,319 - - 20,916
Net income or
(loss) before
income taxes 249,252 (9,403) 32,906 6,805 2,817 253 535 (4,817) 10,822 - 289,170
Provision for
income taxes 94,840 (3,238) 12,360 2,947 981 33 - (1,826) 3,788 - 109,885
Net Income or
(Loss) $ 154,412 $ (6,165) $ 20,546 $ 3,858 $1,836 $220 $ 535 $(2,991) $ 7,034 $ - $ 179,285
CPI AND SUBSIDIARY COMPANIES
CONSOLIDATED STATEMENT OF SURPLUS ACCOUNTS
YEAR ENDED DECEMBER 31, 1996
Consoli-
dated
Sup- Consol- Newaygo Papers
Niagara erior idated For- Forest Interna- Intraco./
Consolidated of Lake Re- Water eign Pro- tional Interco. Con-
Papers Wis- Superior cycled Power Sales ducts Leasing Elim- solidated
Inc. consin Paper Fiber Company Corp. Limited L.L.C. Condepco inations Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Capital Sur-
plus Arising
From:
Premium on
capital
stock
sold,
1911
& 1918 $ 300 - - - - - - - - - $ 300
Appraisal of
plants &
equipment,
1917 95 - - - - - - - - - 95
Valuation of
water power
rights, 1921 448 - - - - - - - - - 448
Premium on
capital
stock sold
1959, 1960,
1961, and
1962 485 - - - - - - - - - 485
Net premium
on stock
sales &
purchases,
prior years 46,110 - - - - - - - - - 46,110
Tax effect of
incentive
stock option
- 1994, 1995,
1996 2,610 - - - - - - - - - 2,610
Proceeds from
stock issued
in 1996 in
excess of
common stock
at par value
of $1.00 per
share 6,252 - - - - - - - - - 6,252
Interco. trans-
fer of Power
Services
facility -
1994, 1995 - - - - $ 540 - - - - $ (540) -
Increase to
reflect
change in
par value
of common
stock 24,517 - - - - - - - - - 24,517
Purchase
price of
new
acquisitions - $42,946 $124,202 $72,135 - - - - $393,230 (632,513) -
Total Capital
Surplus As Of
December 31,
1996 80,817 42,946 124,202 72,135 540 - - - 393,230 (633,053) 80,817
Earned Surplus
Balance at
beginning
of year 979,215 19,493 20,101 2,992 20,668 486 (5,541) - - 2,433 1,039,847
Net income
for the
year 154,412 (6,164) 20,546 3,858 1,836 220 534 (2,991) 7,034 - 179,285
1,333,627 13,329 40,647 6,850 22,504 706 (5,007) (2,991) 7,034 2,433 1,219,132
Dividends
paid in
cash (75,056) - - - - - - - - - (75,056)
Changes:
Cumulative
transla-
tion
adjustment (582) - - - - - ( 13) 674 - - 79
Treasury stock 81 - - - - - - - - - 81
Earned Surplus
or (Deficit)
at End
of Year 1,058,070 13,329 40,647 6,850 22,504 706 (5,020) (2,317) 7,034 2,433 1,144,236
Total Capital and
Earned Surplus or
(Deficit) at
End of
Year $1,138,887 $56,275 $164,849 $78,985 $23,044 $706 $(5,020) $(2,317) $400,264 $(630,620) $1,225,053
CONSOLIDATED PAPERS, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 1996
Consoli-
dated
Sup- Consol- Newaygo Papers
Niagara erior idated For- Forest Interna- Intraco./
Consolidated of Lake Re- Water eign Pro- tional Interco. Con-
Papers Wis- Superior cycled Power Sales ducts Leasing Elim- solidated
Inc. consin Paper Fiber Company Corp. Limited L.L.C. Condepco inations Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Current
Assets
Cash & market-
able secur-
ities $ 502 $ 9 $ 231 $ 144 - - $( 19) $ 2,334 $ 9,727 - $ 12,928
Receivables
(less
reserves) 92,385 7,083 15,026 4,611 $ 316 - - 197 6,485 - 126,103
Inventories
Finished
stock 42,234 2,945 1,552 1,644 - - - - - - 48,375
Unfinished
stock 6,822 47 155 75 - - - - - - 7,099
Raw materials
& supplies 68,542 5,970 5,740 1,997 220 - 11 - - - 82,480
117,598 8,962 7,447 3,716 220 - 11 - - - 137,954
Other Prepaids 17,068 3,512 23,940 912 1,505 $ 38 4 1,587 (1,455) $( 199) 46,912
Total Current
Assets 227,553 19,566 46,644 9,383 2,041 38 ( 4) 4,118 14,757 ( 199) 323,897
Investment &
Other Non-
current
Assets
Stock - Sub-
sidiaries 639,425 - - - - - - - - (639,425) -
Stock - other
companies
(at cost) 28,800 - - - 5,984 - - - - - 34,784
Commercial &
& residential
property 2,156 169 - - - - - - - 47 2,372
Other receivables 97 - - 2,857 - - 3 - - - 2,957
Prepaid leases - - 21,980 - - - - - - - 21,980
Goodwill - 7,145 35,854 16,035 - - - - - - 59,034
Restricted cash
related to
lease - - - - - - - - 423,618 - 423,618
Other prepaids 2,402 - 10,707 1,995 52 - - - - ( 56) 15,100
672,880 7,314 68,541 20,887 6,036 - 3 - 423,618 (639,434) 559,845
Advances to
Affiliated
Companies 48,037 - 25,290 16,575 - 669 ( 246) 112,863 8,961 (212,149) -
Fixed Assets
Bldgs., mach.
& equip. 1,631,004 97,705 56,800 61,407 34,656 - 1,640 315,627 - - 2,198,839
Less:
Accum-
ulated
Depre-
ciation (729,741) (10,074) (3,483) (4,322) (15,553) - (1,150) (10,757) - - (775,080)
901,263 87,631 53,317 57,085 19,103 - 490 304,870 - - 1,423,759
Land & ripar-
ian rights 6,416 1,264 1,142 180 2,445 - - - - - 11,447
Timberlands
(less deple-
tion) 24,975 - - - - - 175 - - - 25,150
Capital add-
itions in
process 163,756 19,497 2,459 815 1,468 - 5 - - - 188,000
1,096,410 108,392 56,918 58,080 23,016 - 670 304,870 - - 1,648,356
Deferred
Charges 111 33 - - - - - - - - 144
Total Assets $2,044,991 $135,305 $197,393 $104,925 $31,093 $707 $ 423 $421,851 $447,336 $(851,782) $2,532,242
CONSOLIDATED PAPERS, INC.
AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 1996
Consoli-
dated
Sup- Consol- Newaygo Papers
Niagara erior idated For- Forest Interna- Intraco./
Consolidated of Lake Re- Water eign Pro- tional Interco. Con-
Papers Wis- Superior cycled Power Sales ducts Leasing Elim- solidated
Inc. consin Paper Fiber Company Corp. Limited L.L.C. Condepco inations Total
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Current Lia-
bilities
Current
maturi-
ties of
L-T debt $ (1,414) $ 1,414 - - - - - - - - -
Capital
lease
obliga-
gation - - - - - - - $ 9,586 - - $ 9,586
Leases
payable - 646 - - - - - - 646
Accounts
payable 56,411 2,980 $ 11,115 $ 2,701 - - $ (60) - - - 73,147
Dividends
payable 170 - - - - - - - - - 170
Accruals
Salaries
& wages 31,107 2,456 3,374 - - - - - - - 36,937
Interest 135 726 - - - - - - - - 861
Income
taxes - - - - $ 199 - - - - $( 199) -
Property
taxes 6,671 436 2,628 281 - - - - - - 10,016
Payroll
taxes &
benefits 10,441 1,495 788 - - - - - - - 12,724
Other
accruals 8,836 4,680 362 1,726 350 - 131 3,584 - - 19,669
Total
Accruals 57,190 9,793 7,152 2,007 549 - 131 3,584 - $( 199) 80,207
Total Current
Liab. 112,357 14,833 18,267 4,708 549 - 71 13,170 - ( 199) 163,756
Long-term debt
Notes Payable 250,414 22,053 - - - - - - - - 272,467
Capital lease
obligation - - - - - - - 462,083 - - 462,083
Deferred Income
Taxes 257,381 (4,687) (3,377) 1,008 4,311 - - ( 239) - ( 2,442) 251,955
Post-Retir.
Health Care 82,740 14,794 1,080 - - - - - - - 98,614
Other Noncurr.
Liab. 10,659 6,660 - - - - - (50,847) 47,072 - 13,544
Advances from
Affil. Cos. 147,784 25,377 16,574 20,225 2,189 - - - - (212,149) -
Shareholders'
Investment
Common Stock
Cons.
Papers,
Inc. 44,768 - - - - - - - - - 44,768
Cons.
Water
Power
Co. - - - - 1,000 - - - - ( 1,000) -
Foreign
Sales
Corp. - - - - - 1 - - - ( 1) -
Newaygo
Forest
Prod. - - - - - - 5,371 - - ( 5,371) -
44,768 - - - 1,000 1 5,371 - - ( 6,372) 44,768
Capital
surplus 80,818 42,946 124,202 72,135 540 - - - 393,230 (633,053) 80,818
Reinvested
earnings 1,060,672 13,329 40,647 6,849 22,504 706 (3,189) (2,991) 7,034 2,985 1,148,546
Cum. trans-
lation
adj. (582) - - - - - (1,830) 674 - ( 552) (2,290)
Treasury
stock (2,020) - - - - - - - - - (2,020)
Total 1,183,656 56,275 164,849 78,984 24,044 707 352 (2,317) 400,264 (636,992) 1,269,822
Total Liabi-
lities &
Share-
holders'
Investment $2,044,991 $135,305 $197,393 $104,925 $31,093 $707 $ 423 $421,851 $447,336 $(851,782) $2,532,242
WISCONSIN RIVER POWER COMPANY AND SUBSIDIARY
WISCONSIN RAPIDS, WISCONSIN
BALANCE SHEET
AS OF DECEMBER 31, 1996
ASSETS
<S> <C>
Utility Plant
At cost when constructed $ 27,922
Less: Reserve for depreciation (14,175)
13,747
Other Property and Investments
Other physical property (at cost or less) 1,297
Stock - other companies (at cost) 213
1,510
Current and Accrued Asset
Cash and marketable securities (at cost) 1,852
Accounts receivable - other 5
Accounts receivable from associated companies 71
Mortgage notes receivable 39
Interest received 3
Materials and supplies 62
Prepaid expense 278
2,310
Deferred Debits
Land development 1,399
Other 290
1,689
Total Assets $ 19,256
LIABILITIES AND CAPITAL
Capital Stock
Authorized 95,000 shares $100 par value $ 9,500
Less: Shares unissued (1,400) 140
Capital Stock Issued and Outstanding (93,600 Shares) 9,360
Current and Accrued Liabilities
Notes payable -
Accounts payable 109
Accounts payable - Associated Co. -
Dividends payable 936
Federal and state income taxes accrued 15
Property taxes accrued 908
Other accrued liabilities 174
2,142
Deferred Credits and Other Liabilities (Note 1) 338
Postretirement Benefits 166
Reinvested Earnings 7,250
Total Liabilities and Capital $ 19,256
WISCONSIN RIVER POWER COMPANY AND SUBSIDIARY
WISCONSIN RAPIDS, WISCONSIN
STATEMENT OF NET INCOME AND REINVESTED EARNINGS
FOR THE TWELVE MONTHS' PERIOD ENDED DECEMBER 31, 1996
<S> <C>
Operating Revenue
Sales of electric energy $ 5,112
Sales of water and other operating revenue 84
Total Operating Revenues 5,196
Operating Expenses and Taxes
Operation 515
Maintenance 381
Administrative and General Expenses
Management and supervision fees 631
Injuries and damages 97
Other administrative and general expenses 300
Depreciation 346
Taxes
Federal and State income taxes (Note 2) 836
Property taxes 780
Other taxes 19
Total Operating Deductions 3,905
Operating Income 1,291
Other Income (Deductions) (Net) (Notes 3, 4, & 5) 313
Income Before Interest Charges 1,604
Interest Expense 14
Net Income 1,590
STATEMENT OF REINVESTED EARNINGS
Balance, January 1, 1996 7,719
Net Income, 1996 1,590
Less: Cash dividends 2,059
Reinvested Earnings, December 31, 1996 $ 7,250
Note 1 - Deferred credit and other liabilities consist of the following items:
1996
<S> <C>
Deferred income tax $ 279
Deferred Investment -
Tax Credit 39
Other credits and
liabilities 20
$ 338
Note 2 - Federal and State income taxes consist of the following items:
1996
<S> <C>
Current $ 787
Deferred 48
Deferred Investment -
Tax Credit 1
$ 836
Note 3 - Included in "Other Income and Deductions (Net)" are the following
income tax items:
1996
<S> <C>
Current $ 10
Deferred 146
Investment Tax Credit
Ratably Restored ( 3)
Total $ 153
Note 4 - Included in "Other Income and Deductions (Net)" are the following
amounts related to Wisconsin River Power Company's land development
projects. These amounts are stated on a before-tax basis.
1996
<S> <C>
Land Development Sales $1,661
Less: Cost of Sales 994
Selling Expense 153
Administrative Expense 149
Income (Loss) Before Tax $ 365
Note 5 - Included in "Other Income and Deductions (Net)" are the following
amounts related to activity of the subsidiary - The Lakes Development
Company, Inc. These amounts are stated on a before-tax basis.
1996
<S> <C>
Sales $ 55
Cost of Sales -
Gross Profit 55
Less: Operating and
Maintenance Expense 41
Interest Expense -
Total Expense 41
Other Income -
Income (Loss) Before Tax $ 1
EXHIBIT "AA"
A sales analysis for Consolidated Water Power Company and Wisconsin River
Power Company for the calendar year ended December 31, 1996.
CONSOLIDATED WATER POWER COMPANY
WISCONSIN RAPIDS, WISCONSIN
SALES ANALYSIS
YEAR ENDED DECEMBER 31, 1996
Location KWH Revenue
<S> <C> <C> <C>
Electric Energy
Sold at Retail
Residential and rural Village of Biron, WI 3,482,982 $ 148,952.03
Residential and rural Town of Grand Rapids, WI 5,648,076 239,045.50
Residential and rural Town of Plover, WI 4,123,102 179,495.67
Residential and rural Town of Grant, WI 357,214 18,036.43
Residential and rural Wisconsin Rapids, WI 118,335 4,168.15
Total 13,729,709 589,697.78
Electric Energy
Sold at Wholesale
WI Power & Light Co. Wisconsin Rapids, WI - -
WI Public Service Corp. Wisconsin Rapids, WI 439,000 2,904.00
WI Public Service Corp. Stevens Point, WI - -
Total 439,000 2,904.00
Interco. Sales of
Electric Energy
Consolidated Papers, Inc. Wisconsin Rapids, WI 301,445,800 7,163,466.08
Consolidated Papers, Inc. Village of Biron, WI 477,275,687 11,294,083.44
Consolidated Papers, Inc. Stevens Point, WI 139,147,300 3,300,614.22
Consolidated Papers, Inc. Village of Whiting, WI 349,159,560 8,249,556.13
Total 1,267,028,347 30,007,719.87
Interco. Sales
of Water Power
Consolidated Papers, Inc. Wisconsin Rapids, WI - -
Consolidated Papers, Inc. Village of Biron, WI - -
Consolidated Papers, Inc. Village of Whiting, WI - -
Total - -
Utility Sale of Water - 29,026.02
Miscellaneous Income - 69,719.79
Total 1,281,197,056 $30,699,067.46
WISCONSIN RIVER POWER COMPANY
WISCONSIN RAPIDS, WISCONSIN
SALES ANALYSIS
YEAR ENDED DECEMBER 31, 1996
Location KWH* Revenue
<S> <C> <C> <C>
Electric Energy Sold
at Wholesale
Consolidated Water
Power Co. Wisconsin Rapids, WI 75,341,000 1,703,968.00
Wisconsin Power &
Light Co. Madison, WI 75,341,000 1,703,969.00
Wisconsin Public
Service Corp. Stevens Point, WI 75,341,000 1,703,969.00
Total 226,023,000 5,111,906.00
Miscellaneous Income - 84,386.50
Total 226,023,000 5,196,292.50
* Each of the three purchasers of the output of the Wisconsin River Power
Company by contract is entitled to receive and is required to pay for one-
third of the total output. The above KWH figures and all billings conform
to this contractual requirement. In practice, actual deliveries vary from
the contractual one-third as the result of system conditions existing from
time to time and such variations are equalized as soon as practicable
without any payment adjustment. Actual deliveries in 1996 were:
KWH*
<S> <C>
Consolidated Water Power Company 75,341,000
Wisconsin Power & Light Company 75,341,000
Wisconsin Public Service Corporation 75,341,000
226,023,000
EXHIBIT 27
Financial Data Schedule of Claimant and its subsidiary companies on a
consolidated basis (official Exhibit "B").
Exhibit "C" is not applicable.
The above-named Claimant has caused this statement to be duly executed on its
behalf by its authorized officer on this 26th day of February, 1997.
CONSOLIDATED PAPERS,INC.
By /s/ Gorton M. Evans
Gorton M. Evans
President and Chief Executive Officer
CORPORATE SEAL
Attest:
/s/ Carl R. Lemke
Carl R. Lemke, Assistant Secretary
Name, title, and address of officer to whom notices and correspondence
concerning this statement should be addressed:
Carl R. Lemke, Assistant Secretary
Consolidated Papers, Inc.
P.O. Box 8050
Wisconsin Rapids, Wisconsin 54495-8050
</TABLE>
<TABLE> <S> <C>
<ARTICLE> OPUR3
<LEGEND> This schedule contains summary financial information
extracted from the December 31, 1996 consolidated balance
sheet and the consolidated statements of income,
shareholders' equity and cash flows for the twelve-month
period ended 12/31/96 is qualified in its entirety by
references to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-START> JAN-01-1996
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 2,532,242
<TOTAL-OPERATING-REVENUES> 291,260
<NET-INCOME> 179,285
</TABLE>
