File No. _________
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C.
FORM U-3A-2
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
DUKE POWER COMPANY
hereby files (on behalf of itself and all of the members of its
consolidated group as described herein) with the Securities and Exchange
Commission, pursuant to Rule 2, its statement claiming exemption as a
holding company from the provisions of the Public Utility Holding
Company Act of 1935, and submits the following information:
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.
Duke Power Company (the "Claimant"), a North Carolina
corporation, is engaged in the generation, transmission, distribution
and sale of electric energy in the central portion of North Carolina and
the western portion of South Carolina. Its service area, approximately
two-thirds of which is located in North Carolina, covers about 20,000
square miles with an estimated population of 4,800,000 and includes a
number of cities, of which the largest are Charlotte, Greensboro,
Winston-Salem and Durham in North Carolina and Greenville, Spartanburg
and Anderson in South Carolina. During the year ended December 31,
1993, the Claimant's electric revenues amounted to approximately $4.3
billion, of which about 70% was derived from North Carolina and 30% from
South Carolina. The Claimant's executive offices are located in the
Power Building, 422 South Church Street, Charlotte, North Carolina
28242. (Reference is made to Form 10-K Annual Report of the Claimant
for the year ended December 31, 1993, to be available after March 31,
1994, and hereby incorporated herein by reference for additional
information concerning the business of Claimant.)
The Claimant has the following active subsidiaries, all of
which are wholly owned and have a principal place of business in North
Carolina:
1. Nantahala Power and Light Company ("NP&L"), a North Carolina
corporation, is engaged in the business of generating, transmitting and
distributing electric power in western North Carolina.
2
2. Church Street Capital Corp., a Delaware corporation, ("Church
Street") is the parent company for the Claimant's diversified
subsidiaries and provides management of the Claimant's investments.
The Claimant has the following inactive subsidiaries, all of
which are wholly owned:
1. Eastover Mining Company, a Kentucky corporation
2. Eastover Land Company, a Kentucky corporation
3. Catawba Mfg. & Electric Power Company, a North Carolina
corporation
4. Western Carolina Power Company, a North Carolina
corporation
5. Caldwell Power Company, a North Carolina corporation
6. Southern Power Company, a North Carolina corporation
7. Greenville Gas & Electric Light & Power Company, a South
Carolina corporation
8. Wateree Power Company, a South Carolina corporation
9. Western Fuel, Inc., a Wyoming corporation
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 the 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.
3
At December 31, 1993, the Claimant owned three nuclear
generating stations, eight coal-fired stations and twenty-seven
hydroelectric stations, all of which are located in North Carolina or
South Carolina.
The following is a list of the Claimant's major generating
stations at December 31, 1993:
Facility Energy Source Net MW
Oconee Nuclear 2,538
McGuire Nuclear 2,258
Catawba1 Nuclear 2,258
Belews Creek Coal 2,240
Marshall Coal 2,090
Allen Coal 1,140
Cliffside Coal 684
Others Coal 1,356
27 Stations Hydroelectric 2,682 2
Combustion Oil and gas 599
turbines
___________________
1 The Catawba Nuclear Station is a jointly-owned facility
with the Claimant's share of ownership being 12-1/2
percent.
2 Includes Bad Creek and Jocassee hydroelectric stations,
which have licensed generating capabilities of 1065 MW
and 610 MW, respectively.
In addition to the electric generating plants described
above, Claimant owned, as of December 31, 1993, approximately
8,300 conductor miles of transmission lines, including 600
conductor miles of 500,000 volts, 1,400 conductor miles of
220,000 volts, 3,400 conductor miles of 100,000 volts, and 2,900
conductor miles of 13,000-66,000 volts.
4
The Claimant also owned, as of December 31, 1993,
approximately 71,000 conductor miles of distribution lines,
including 46,000 conductor miles of rural overhead lines, 14,000
conductor miles of urban overhead lines, 6,000 conductor miles of
rural underground lines and 5,000 conductor miles of urban
underground lines.
As of such date, the Claimant's transmission and
distribution systems comprised approximately 1,700 substations
with an installed transformer capacity of approximately
83,300,000 kVA.
NP&L's generation facilities consist of eleven
hydroelectric plants with an aggregate nameplate capacity of
approximately 100 MW. The transmission backbone of the system is
a 161 kV line from Santeetlah to substations at Robbinsville,
Nantahala Plant, Oak Grove, Webster and Thorpe Plant. At these
substations, voltage is stepped down and sent over lower voltage
lines to customers.
Duke Power supplies all of NP&L's supplemental power
needs from Duke Power's Tuckaseegee Substation near NP&L's Thorpe
Plant. NP&L also has an interconnection with the Tennessee
Valley Authority (TVA) of 161 kV at Santeetlah, North Carolina.
Reference is made to the map attached hereto as
Exhibit C for the locations of principal generating plants,
transmission lines, and distribution facilities of Claimant and
NP&L. Such map is incorporated herein by reference.
5
3. The following information for the last calendar
year with respect to the 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.
Number of kwh. of electric energy sold (at retail or
wholesale):
Company Kwh.
Claimant1 64,799,446,000
(retail)
11,104,026,000
(wholesale)
NP&L 814,826,000
(retail)
285,359,000 2
(wholesale)
______________
1 Excludes 4,406,008,090 Kwh received by the other joint
owners of the Catawba Nuclear Station.
2 Includes sales to Claimant of 97,750,000 Kwh.
Gas Sales (at retail)
Company Mcf.
Claimant None
NP&L None
(b) Number of kwh. of electric energy and Mcf. of
natural or manufactured gas distributed at retail outside the
State in which each company is organized.
Company Kwh.
Claimant 20,048,797,855
NP&L None
Company Mcf.
Claimant None
NP&L None
6
(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.
Company Kwh.
Claimant 3,745,807,262
NP&L 113,570,000 1
Company Mcf.
Claimant None
NP&L None
__________________
1 Kwh bought from Claimant and sold to TVA.
(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.
Company Kwh.
Claimant 3,171,950,791
NP&L 97,750,000 1
Company Mcf.
Claimant None
NP&L None
__________________
1This amount reflects purchases from TVA, which is
organized outside North Carolina. However, such
purchases are made at interconnection points inside
North Carolina. All Kwh purchased from TVA was sold to
Claimant.
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 company for the
generation, transmission and distribution of electric energy for
sale or for the distribution at retail of natural or manufactured
gas.
7
The Claimant owns indirect equity interests in three
foreign utility companies that directly own electric facilities in
Argentina, which are described below:
(1) Central Termica Guemes S.A. ("Guemes")
Location of Ruta 34 KM 1135
Facility: (4430) GRAL.M.M. de Guemes
Salta, Argentina
Business Alsina 633, Fifth Floor
Address: Buenos Aires
Republic of Argentina
Guemes owns the Guemes Power Station, which is comprised of
two 60 MW gas fired units and one 125 MW gas fired unit.
Guemes sells electric energy and capacity in the "Wholesale
Electric Market" which has been established by statute in
Argentina under the jurisdiction of the Argentine Secretariat of
Electric Power and the National Regulatory Entity of Electricity.
Energy and capacity are sold on a competitive spot market basis
in accordance with dispatch instructions from a central dispatch
center.
(2) Compania de Transporte de Energia
Electrica en Alta Tension
Transener S.A. ("Transener")
Location of Paseo Colon 728
Facility: Buenos Aires
Argentina
Business Av. de Mayo, 645 First Floor
Address: Buenos Aires
Republic of Argentina
Transener holds a concession for the transmission of high
tension electric energy in Argentina. The transmission
facilities that Transener owns consist of 6,867 kilometers of 500
kV transmission lines, 284 kilometers of 220 kV transmission
lines and
8
27 transforming substations.
(3) Hidroelectrica Piedra del Aguila S.A.
("Piedra del Aguila")
Location of (8314) VILLA Piedra del Aguila
Facility: Neuquen
Argentina
Business Av. de Mayo, 645 First Floor
Address: Buenos Aires
Republic of Argentina
Piedra del Aguila holds an exclusive 30-year concession for
the generation of hydroelectric energy from the facility located
at Piedra del Aguila in the Provinces of Neuquen and Rio Negro in
Argentina. The facility consists of four 350 MW units, two of
which are operational and two of which are under construction.
Energy and capacity are sold on a competitive spot market basis,
in accordance with dispatch instructions from a central dispatch
center.
(b) Name of each system company that holds an interest in
such EWG or foreign utility company; and description of the
interest held.
Set forth below, under the names of the facilities described
in Section 4(a) above, are the system companies holding
interests therein and the relationship of such companies to the
Claimant. Each of the companies listed below is a foreign utility
company. The interests in foreign utility companies described
in Section 4(a) are all directly or indirectly held by Duke Energy
Group, Inc., a Delaware corporation ("DEG"), which is a wholly
owned subsidiary of Church Street. Church Street is a direct
subsidiary of the Claimant. Reference is made to the
organizational charts
9
in Exhibits B-1 through B-3.
(1) Guemes Facility
Central Termica Guemes S.A.
Duke Guemes, Inc.
Powerco S.A.
Powerco Services S.A.
Duke Guemes, Inc., a Delaware corporation ("Duke Guemes"),
is a wholly owned direct subsidiary of DEG. Duke Guemes in turn
owns a 25% equity interest in Powerco S.A., an Argentine
corporation headquartered in Buenos Aires. Powerco S.A. owns a
60% equity interest in Guemes. This ownership results in Duke
Guemes owning a 15% indirect equity interest in Guemes. Duke
Guemes also owns 51% of Powerco Services S.A., an Argentine
corporation which provides operating expertise to the Guemes facility.
(2) Transener Facility
Compania de Transporte de Energia
Electrica en Alta Tension
Transener S.A.
Duke Transener, Inc.
Compania Inversora en Transmision
de Electrica Citelec S.A. ("Citelec")
Duke Transener, Inc., a Delaware corporation ("Duke
Transener") is a wholly owned direct subsidiary of DEG. Duke
Transener in turn owns a 15% equity interest in Citelec, an
Argentine corporation based in Buenos Aires. Citelec owns a 65%
equity interest in Transener, resulting in Duke Transener holding
a 9.75% indirect equity interest in Transener. Duke Transener is
an operator of the Transener facilities.
10
(3) Piedra del Aguila Facility
Hidroelectrica Piedra del Aguila S.A
Duke Hidronor, Inc.
Hidroneuquen S.A.
Duke Hidronor, Inc., a Delaware corporation ("Duke
Hidronor"), is a wholly owned direct subsidiary of DEG. Duke
Hidronor in turn owns a 16.54% equity interest in Hidroneuquen
S.A., an Argentine corporation. Hidroneuquen S.A. owns a 59%
equity interest in Piedra del Aguila, resulting in Duke Hidronor
holding a 9.76% indirect equity interest in Piedra del Aguila.
Duke Hidronor is an operator of the Piedra del Aguila facility.
(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.
See Exhibit D. Table 1 in such exhibit provides information
called for by this item.
(d) Capitalization and earnings of the EWG or foreign
utility company during the reporting period.
See Exhibit D. Table 1 shows the capitalization of each
foreign utility company listed. Table 2 shows the earnings of
such foreign utility companies.
(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).
During the reporting period, there were no service, sales,
or construction contracts between any of the foreign utility
companies mentioned herein and a system company.
11
The above-named Claimant has caused this statement to be duly
executed on its behalf by its authorized officer on this 28th day
of February, 1994.
DUKE POWER COMPANY
By: Ellen T. Ruff
__________________________
Ellen T. Ruff, Secretary
and Deputy General Counsel
{CORPORATE SEAL}
ATTEST:
Carolyn R. Duncan
_____________________________
Carolyn R. Duncan
Assistant Secretary
Name, title and address of officer to whom notices and
correspondence concerning this statement should be addressed:
Ellen T. Ruff
Secretary and Deputy General Counsel
Duke Power Company PB05E
422 South Church Street
Charlotte, North Carolina 28242-0001
12
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 the Claimant and
its subsidiary companies as of the close of such calendar year.
Exhibit A-1 - Consolidated Statements of Income and Retained
Earnings of Duke Power Company for 1993 and
Consolidated Balance Sheet of Duke Power Company
as of December 31, 1993.
Exhibit A-2 - Unconsolidated Statements of Income and Retained
Earnings of Duke Power Company for 1993 and
Unconsolidated Balance Sheet of Duke Power
Company as of December 31, 1993.
Exhibit A-3 - Statements of Income and Retained Earnings of
Nantahala Power and Light Company for 1993 and
Balance Sheet of Nantahala Power and Light
Company as of December 31, 1993.
Exhibit A-4 - Unconsolidated Statements of Income and Retained
Earnings of Church Street Capital Corp. for 1993
and Unconsolidated Balance Sheet of Church Street
Capital Corp. as of December 31, 1993.
Exhibit A-1
Page 1 of 3
DUKE POWER COMPANY
CONSOLIDATED STATEMENT OF INCOME
(Dollars in Thousands)
(AUDITED)
<TABLE>
<CAPTION>
Year Ended
December
1993
----------
<S> <C>
ELECTRIC REVENUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,281,876
----------
ELECTRIC EXPENSES
Operation
Fuel used in electric generation . . . . . . . . . . . . . . . . . . . . 732,246
Net interchange and purchased power . . . . . . . . . . . . . . . . . . . 535,033
Wages, benefits and materials . . . . . . . . . . . . . . . . . . . . . . 701,994
Maintenance of plant facilities . . . . . . . . . . . . . . . . . . . . . . 375,457
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . 488,441
Taxes
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231,680
Federal income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278,279
State income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,948
Deferred income, net . . . . . . . . . . . . . . . . . . . . . . . . . . 74,990
Investment tax credit
Amortization of deferments (credit) . . . . . . . . . . . . . . . . . . (11,257)
----------
Total electric expenses . . . . . . . . . . . . . . . . . . . . . . . 3,467,811
----------
Electric operating income . . . . . . . . . . . . . . . . . . . . . 814,065
----------
OTHER INCOME
Allowance for equity funds used during construction . . . . . . . . . . . . 17,221
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,769
Income taxes - other, net . . . . . . . . . . . . . . . . . . . . . . . . . (24,092)
Income taxes - credit . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,371
----------
Total other income . . . . . . . . . . . . . . . . . . . . . . . . . 71,269
----------
Income before interest deductions . . . . . . . . . . . . . . . . . 885,334
----------
INTEREST DEDUCTIONS
Interest on long-term debt . . . . . . . . . . . . . . . . . . . . . . . . 256,347
Other interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,431
Allowance for borrowed funds used during
construction (credit) . . . . . . . . . . . . . . . . . . . . . . . . . . (9,859)
----------
Total interest deductions . . . . . . . . . . . . . . . . . . . . . . 258,919
----------
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626,415
Dividends on preferred and preference stocks . . . . . . . . . . . . . . . 52,429
----------
EARNINGS FOR COMMON STOCK . . . . . . . . . . . . . . . . . . . . . . . . . . $ 573,986
==========
COMMON STOCK DATA
Average common shares outstanding (thousands) . . . . . . . . . . . . . . . 204,859
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.80
Dividends per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.84
</TABLE>
Exhibit A-1
Page 2 of 3
<TABLE>
<CAPTION>
DUKE POWER COMPANY
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1993 Year Ended
(Dollars in Thousands) December 31
1993
-------------
<S> <C>
BALANCE - December 31, 1992. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,223,718
ADD - Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626,415
-------------
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,850,133
-------------
DEDUCT
Dividends
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376,937
Preferred and preference stocks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,429
Capital stock transactions, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,942
-------------
Total deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439,308
-------------
BALANCE - December 31, 1993. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,410,825
=============
</TABLE>
Exhibit A-1
Page 3 of 3
DUKE POWER COMPANY
CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
(AUDITED)
ASSETS December 31
1993
------------
ELECTRIC PLANT (at original cost)
Electric plant in service......................... $12,573,012
Less accumulated depreciation and amortization.... 4,431,460
------------
Electric plant in service, net.................. 8,141,552
Nuclear fuel...................................... 705,994
Less accumulated amortization..................... 405,910
------------
Nuclear fuel, net............................... 300,084
------------
Construction work in progress (including nuclear
fuel in process: 1993 - $113,904) 482,473
------------
Total electric plant, net..................... 8,924,109
------------
OTHER PROPERTY AND INVESTMENTS
Other property - at cost (less accumulated
depreciation: 1993 - $90,191)................... 311,241
Investments in joint ventures .................... 101,612
Other investments, at cost or less................ 90,301
Nuclear decommissioning trust fund............... 118,456
Prepaid pension cost.............................. 50,000
------------
Total other property and investments.......... 671,610
------------
CURRENT ASSETS
Cash.............................................. 15,576
Short-term investments............................ 120,651
Receivables (less allowance for losses:
1993 - $6,392).................................. 531,592
Inventory - at average cost
Coal............................................ 69,155
Other........................................... 199,733
Prepayments....................................... 12,062
------------
Total current assets.......................... 948,769
------------
DEFERRED DEBITS
Purchased capacity costs.......................... 768,099
Debt expense, primarily refinancing costs, being
amortized over the terms of related debt........ 197,963
Regulatory asset related to income taxes.......... 486,440
Regulatory asset related to DOE assessment fee.... 116,731
Other............................................. 79,386
------------
Total deferred debits......................... 1,648,619
------------
TOTAL ASSETS........................................ $12,193,107
============
CAPITALIZATION AND LIABILITIES
CAPITALIZATION..................................... $ 8,404,131
------------
CURRENT LIABILITIES
Accounts payable................................. 337,391
Taxes accrued.................................... 82,824
Interest accrued................................. 68,868
Other............................................ 211,207
------------
Total.......................................... 700,290
Notes Payable.................................... 18,000
Current maturities of long-term debt
and preferred stocks........................... 91,898
------------
Total current liabilities.................... 810,188
------------
ACCUMULATED DEFERRED INCOME TAXES.................. 2,207,708
------------
DEFERRED CREDITS AND OTHER LIABILITIES
Investment tax credit............................ 282,505
Department of Energy assessment fee.............. 116,731
Nuclear decommissioning costs externally funded.. 118,456
Other............................................ 253,388
------------
Total deferred credits and other liabilities.. 771,080
------------
COMMITMENTS AND CONTINGENCIES......................
------------
TOTAL CAPITALIZATION AND LIABILITIES............... $12,193,107
============
Exhibit A-2
Page 1 of 3
DUKE POWER COMPANY
STATEMENT OF INCOME
(Dollars in Thousands)
(UNAUDITED)
<TABLE>
<CAPTION>
Year Ended
December
1993
----------
<S> <C>
ELECTRIC REVENUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,281,876
----------
ELECTRIC EXPENSES
Operation
Fuel used in electric generation . . . . . . . . . . . . . . . . . . . . 732,246
Net interchange and purchased power . . . . . . . . . . . . . . . . . . . 535,033
Wages, benefits and materials . . . . . . . . . . . . . . . . . . . . . . 701,994
Maintenance of plant facilities . . . . . . . . . . . . . . . . . . . . . . 375,457
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . . 488,441
Taxes
General . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 231,680
Federal income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 278,279
State income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 60,948
Deferred income, net . . . . . . . . . . . . . . . . . . . . . . . . . . 74,990
Investment tax credit
Amortization of deferments (credit) . . . . . . . . . . . . . . . . . . (11,257)
----------
Total electric expenses . . . . . . . . . . . . . . . . . . . . . . . 3,467,811
----------
Electric operating income . . . . . . . . . . . . . . . . . . . . . 814,065
----------
OTHER INCOME
Allowance for equity funds used during construction . . . . . . . . . . . . 17,221
Earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . 25,698
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,694
Income taxes - other, net . . . . . . . . . . . . . . . . . . . . . . . . . (9,435)
Income taxes - credit . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,371
----------
Total other income . . . . . . . . . . . . . . . . . . . . . . . . . 71,549
----------
Income before interest deductions . . . . . . . . . . . . . . . . . 885,614
----------
INTEREST DEDUCTIONS
Interest on long-term debt . . . . . . . . . . . . . . . . . . . . . . . . 256,347
Other interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,711
Allowance for borrowed funds used during
construction (credit) . . . . . . . . . . . . . . . . . . . . . . . . . . (9,859)
----------
Total interest deductions . . . . . . . . . . . . . . . . . . . . . . 259,199
----------
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626,415
Dividends on preferred and preference stocks . . . . . . . . . . . . . . . 52,429
----------
EARNINGS FOR COMMON STOCK . . . . . . . . . . . . . . . . . . . . . . . . . . $ 573,986
==========
COMMON STOCK DATA
Average common shares outstanding (thousands) . . . . . . . . . . . . . . . 204,859
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . $2.80
Dividends per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1.84
</TABLE>
Exhibit A-2
Page 2 of 3
<TABLE>
<CAPTION>
DUKE POWER COMPANY
STATEMENT OF RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1993 Year Ended
(Dollars in Thousands) December 31
1993
-------------
<S> <C>
BALANCE - December 31, 1992. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,223,718
ADD - Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 626,415
-------------
Total. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,850,133
-------------
DEDUCT
Dividends
Common stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 376,937
Preferred and preference stocks. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52,429
Capital stock transactions, net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,942
-------------
Total deductions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 439,308
-------------
BALANCE - December 31, 1993. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,410,825
=============
</TABLE>
Exhibit A-2
Page 3 of 3
DUKE POWER COMPANY
BALANCE SHEET
(Dollars in Thousands)
(UNAUDITED)
ASSETS December 31
1993
------------
ELECTRIC PLANT (at original cost)
Electric plant in service......................... $12,573,012
Less accumulated depreciation and amortization.... 4,431,460
------------
Electric plant in service, net.................. 8,141,552
Nuclear fuel...................................... 705,994
Less accumulated amortization..................... 405,910
------------
Nuclear fuel, net............................... 300,084
------------
Construction work in progress (including nuclear
fuel in process: 1993 - $113,904) 482,473
------------
Total electric plant, net..................... 8,924,109
------------
OTHER PROPERTY AND INVESTMENTS
Other property - at cost (less accumulated
depreciation: 1993 - $9,319).................... 48,321
Investments in and advances to subsidiaries....... 460,999
Other investments, at cost or less................ 16,884
Nuclear decommissioning trust fund............... 118,456
Prepaid pension cost.............................. 50,000
------------
Total other property and investments.......... 694,660
------------
CURRENT ASSETS
Cash.............................................. 15,576
Receivables (less allowance for losses:
1993 - $6,392).................................. 555,009
Inventory - at average cost
Coal............................................ 69,155
Other........................................... 199,733
Prepayments....................................... 12,062
------------
Total current assets.......................... 851,535
------------
DEFERRED DEBITS
Purchased capacity costs.......................... 768,099
Debt expense, primarily refinancing costs, being
amortized over the terms of related debt........ 197,963
Regulatory asset related to income taxes.......... 486,440
Regulatory asset related to DOE assessment fee.... 116,731
Other............................................. 79,386
------------
Total deferred debits......................... 1,648,619
------------
TOTAL ASSETS........................................ $12,118,923
============
CAPITALIZATION AND LIABILITIES
CAPITALIZATION..................................... $ 8,317,766
------------
CURRENT LIABILITIES
Accounts payable................................. 345,014
Taxes accrued.................................... 82,824
Interest accrued................................. 68,868
Other............................................ 217,007
------------
Total.......................................... 713,713
Notes Payable.................................... 18,000
Current maturities of long-term debt
and preferred stocks........................... 90,656
------------
Total current liabilities.................... 822,369
------------
ACCUMULATED DEFERRED INCOME TAXES.................. 2,207,708
------------
DEFERRED CREDITS AND OTHER LIABILITIES
Investment tax credit............................ 282,505
Department of Energy assessment fee.............. 116,731
Nuclear decommissioning costs externally funded.. 118,456
Other............................................ 253,388
------------
Total deferred credits and other liabilities.. 771,080
------------
COMMITMENTS AND CONTINGENCIES......................
------------
TOTAL CAPITALIZATION AND LIABILITIES............... $12,118,923
============
Exhibit A-3
Page 1 of 2
NANTAHALA POWER AND LIGHT COMPANY
STATEMENT OF INCOME AND RETAINED EARNINGS
(UNAUDITIED)
For the Year
Ended
December 31
1993
-------------
Electric Revenues - Regular 50,928,787
Electric Revenues - Special Contract 16,213,341
-------------
Total Revenues 67,142,128
Electric Expenses
Purchased Power - Regular 24,284,267
Purchased Power - Special Contract 12,590,122
Other Operations 8,070,569
Maintenance 5,426,520
Depreciation 4,251,600
Taxes Other than Income 3,675,390
Income Taxes 2,574,033
-------------
Total Electric Expenses 60,872,501
-------------
Electric Operating Income 6,269,627
Other Income
Miscellaneous, net 48,305
Income Taxes, net (19,389)
-------------
Total Other Income 28,916
-------------
Income Before Interest Charges 6,298,543
-------------
Interest Charges
Interest on Long-term Debt 2,689,835
Other Interest 121,947
AFUDC (399,138)
Carrying Costs on Cancellation Charges (375,509)
-------------
Total Interest Charges 2,037,135
-------------
Net Income 4,261,408
Retained Earnings - Beginning of Period 40,291,221
-------------
Retained Earnings - End of Period 44,552,629
=============
Exhibit A-3
Page 2 of 2
NANTAHALA POWER AND LIGHT COMPANY
BALANCE SHEET
(UNAUDITED)
December 31,
1993
-----------
Electric Plant in Service 139,264,576
Less: accumulated depreciation & amortization 70,020,751
-----------
Electric Plant in Service, net 69,243,825
Construction Work in Progress 14,359,951
-----------
Total Electric Plant, net 83,603,776
-----------
Other Property 1,185,597
-----------
Current Assets:
Cash 413,024
Receivables, net - customers 6,413,294
Receivables - Parent 1,068,021
Materials and Supplies 2,491,446
Prepayments 175,934
Deferred Income Taxes 767,746
-----------
Total Current Assets 11,329,465
-----------
Deferred Debits 12,375,655
-----------
Total Assets 108,494,493
===========
Capitalization:
Common Stock 382,020
Additional Paid in Capital 2,744,686
Retained Earnings 44,552,629
-----------
47,679,335
Long-term Debt 33,354,204
-----------
Total Capitalization 81,033,539
-----------
Current Liabilities:
Current Portion of Long-term Debt 104,305
Notes Payable 2,800,000
Accounts Payable - Trade 2,201,230
Accounts Payable - Parent 3,333,569
Taxes Accrued 1,908,898
Customer Deposits 377,191
Deferred Purchased Power Costs 1,912,755
Other Accrued Liabilities 559,399
-----------
Total Current Liabilities 13,197,347
-----------
Deferred Income Tax 7,393,012
Deferred Investment Tax Credit 1,458,540
Other 5,412,056
-----------
Total Deferred Credits 14,263,608
-----------
Total Liabilities and Capitalization 108,494,494
===========
Exhibit A-4
Page 1 of 2
CHURCH STREET CAPITAL CORP.
BALANCE SHEET
(UNCONSOLIDATED)
(UNAUDITED)
<TABLE>
<CAPTION>
December 31,
CURRENT ASSETS 1993
<S> <C>
CASH $ 365,779
ACCOUNTS RECEIVABLE 10,000
MUNICIPAL SECURITIES 115,632,156
OTHER SHORT TERM INVESTMENTS 5,000,000
ACCRUED INTEREST RECEIVABLE 141,335
ACCRUED DIVIDENDS RECEIVABLE 31,671
-----------
TOTAL CURRENT ASSETS 121,180,941
-----------
NON-CURRENT ASSETS
INVESTMENT IN SUBSIDIARIES 264,213,233
INVESTMENT IN PREFERRED STOCKS 2,051,349
INVESTMENT IN DIVIDEND CAPTURE PROGRAM 33,187,132
-----------
TOTAL NON-CURRENT ASSETS 299,451,714
-----------
TOTAL ASSETS $ 420,632,655
============
LIABILITIES
ACCOUNTS PAYABLE $ 931,516
ACCRUED INTEREST-ASSOCIATED COMPANIES 60,647
ACCRUED INCOME TAXES (169,625)
ADVANCES FROM ASSOCIATED COMPANIES 377,515
DEFERRED INCOME TAXES 163,872
---------
TOTAL LIABILITIES 1,363,925
---------
CAPITALIZATION
COMMON STOCK 5,500
ADDITIONAL PAID IN CAPITAL 269,682,659
RETAINED EARNINGS 149,581,071
LESS: TREASURY STOCK (500)
-----------
TOTAL CAPITALIZATION 419,268,730
-----------
TOTAL LIABILITIES AND CAPITALIZATION $ 420,632,655
============
</TABLE>
NOTE: Retained earnings are restricted in the amount of the cost of the
treasury stock.
Exhibit A-4
Page 2 of 2
CHURCH STREET CAPITAL CORP.
STATEMENT OF INCOME AND RETAINED EARNINGS
(UNCONSOLIDATED)
(UNAUDITED)
<TABLE>
<CAPTION>
YEAR ENDED
INCOME DECEMBER 31, 1993
<S> <C>
BONDS AND OTHER INVESTMENTS $ 60,675
MUNICIPAL SECURITIES 2,344,773
OTHER INTEREST INCOME 10,252
----------
TOTAL INTEREST INCOME 2,415,700
EQUITY METHOD-EARNINGS OF SUBSIDIARIES 16,519,676
INCOME FROM DIVIDEND CAPTURE PROGRAM 3,155,265
DIVIDEND INCOME 359,423
AMORTIZATION OF (PREMIUMS) AND DISCOUNTS (NET) 21,586
GAIN/(LOSS) ON TRANSACTIONS-SHORT TERM 2,960
OTHER INCOME 23,340
----------
TOTAL INTEREST, DIVIDEND AND OTHER INCOME 22,497,950
EXPENSES
INTEREST ON ADVANCES 13,695
MANAGEMENT FEES 1,431,145
TAX EXPENSES-OTHER THAN INCOME 5,640
MISCELLANEOUS EXPENSES 1,145,286
-----------
TOTAL EXPENSES 2,595,766
-----------
INCOME BEFORE INCOME TAXES 19,902,184
-----------
PROVISIONS FOR INCOME TAXES (88,800)
PROVISIONS FOR DEFERRED INCOME TAXES (226,410)
-----------
NET INCOME 20,217,394
-----------
RETAINED EARNINGS - BEGINNING OF THE PERIOD 129,363,677
----------
RETAINED EARNINGS - END OF THE PERIOD $149,581,071
============
</TABLE>
EXHIBIT B
An organizational chart showing the relationship of each EWG
or foreign utility company to associate companies in the holding-
company system.
EXHIBIT B-1 Chart showing relationship of Guemes to
associate companies in the holding-company
system.
EXHIBIT B-2 Chart showing relationship of Transener to
associate companies in the holding-company
system.
EXHIBIT B-3 Chart showing relationship of Piedra del
Aguila to associate companies in the holding-
company system.
EXHIBIT B-1
GUEMES
Claimant
.
.
.
.
. 100%
Church Street
.
.
.
.
. 100%
DEG
.
.
.
.
. 100%
Duke Guemes - - - - - - - Powerco Services S.A.
. 51%
.
.
.
. 25%
Powerco S.A.
.
.
.
.
. 60%
Guemes
EXHIBIT B-2
TRANSENER
Claimant
.
.
.
.
. 100%
Church Street
.
.
.
.
. 100%
DEG
.
.
.
.
. 100%
Duke Transener
.
.
.
.
. 15%
Citelec
.
.
.
.
. 65%
Transener
EXHIBIT B-3
PIEDRA DEL AGUILA
Claimant
.
.
.
.
. 100%
Church Street
.
.
.
.
. 100%
DEG
.
.
.
.
. 100%
Duke Hidronor
.
.
.
.
. 16.54%
Hidroneuquen S.A.
.
.
.
.
. 59%
Piedra del Aguila
EXHIBIT C
Map showing principal generating plants, transmission lines,
and distribution facilities of Claimant and NP&L.
[Filed under cover of Form SE]
EXHIBIT D
Interests in foreign utility companies (FUCO's) (a)
TABLE 1
<TABLE>
<CAPTION>
As of December 31, 1993
Net Worth of Claimant's Indirect
Investment in each FUCO Obligations with
Indirect by direct Guarantees Recourse to
% Ownership by subsidiaries by Joint Venture by Claimant Church Street
FUCO by Claimant DEG of DEG (b) Corporations (c) for FUCO for FUCO
<S> <C> <C> <C> <C> <C> <C>
Guemes Facility
Duke Guemes, Inc. 100.00% $19,821,922 $0 $0
Powerco S.A. 25.00% $18,897,943 (d) $0 $0
Central Termica Guemes S.A. 15.00% $8,158,391 (g) $0 $0
Powerco Services S.A. 51.00% $86,700 (d) $0 $0
Transener Facilities
Duke Transener, Inc. 100.00% $19,595,122 $0 $0
Citelec S.A. 15.00% $21,560,312 (e) $0 $4,000,000 (j)
Transener S.A. 9.75% $31,970,005 (h) $0 $0
Piedra del Aguila Facility
Duke Hidronor, Inc. 100.00% $39,491,342 $0 $0
Hidroneuquen S.A. 16.54% $44,040,090 (f) $0 $64,000,000 (k)
Piedra del Aguila S.A. 9.76% $44,978,840 (i) $0 $0
</TABLE>
TABLE 2
<TABLE>
<CAPTION>
Year End December 31, 1993
Claimant's Share of FUCO's Earnings (l)
to direct
% Ownership to subsidiaries to Joint Venture
FUCO by Claimant DEG of DEG (b) Corporations (c)
<S> <C> <C> <C> <C>
Guemes Facility
Duke Guemes, Inc. 100.00% ($1,151,174)
Powerco S.A. 25.00% ($1,221,815)
Central Termica Guemes S.A. 15.00% ($652,215)
Powerco Services S.A. 51.00% ($1,242)
Transener Facilities
Duke Transener, Inc. 100.00% $859,666
Citelec S.A. 15.00% $652,454
Transener S.A. 9.75% $933,626
Piedra del Aguila Facility
Duke Hidronor, Inc. 100.00% $0
Hidroneuquen S.A. 16.54% $0
Piedra del Aguila S.A. 9.76% ($29,488)
Footnotes:
(a): See exhibit B for ownership structure. All amounts are unaudited,
in U.S. dollars and calculated in compliance with U.S. generally
accepted accounting principles.
(b): "Direct subsidiaries of DEG" refers to Duke Guemes, Inc., Duke Transener,
Inc., and Duke Hidronor, Inc.
(c): "Joint Venture Corporations" refers to Powerco S.A., Citelec S.A., and
Hidroneuquen S.A.
(d): Invested by Duke Guemes, Inc. and included in the $19,821,922 amount
invested by Church Street in Duke Guemes, Inc.
The difference between $19,821,922 and $18,897,943 is primarily
working capital.
(e): Invested by Duke Transener, Inc. and included in the $19,595,122 amount
invested by Church Street in Duke Transener, Inc.
The difference between $19,595,122 and $21,560,312 is primarily
working capital.
(f): Invested by Duke Hidronor, Inc. and included in the $39,491,342 amount
invested by Church Street in Duke Hidronor, Inc.
The difference between $39,491,342 and $44,040,090 is primarily
working capital.
(g): Invested by Powerco S.A. and included in the $18,897,943 amount invested
by Duke Guemes, Inc. in Powerco S.A.
The difference between $18,897,943 and $8,158,391 is primarily
working capital and goodwill.
(h): Invested by Citelec S.A. and included in the $21,560,312 amount
invested by Duke Transener, Inc. in Citelec S.A.
The difference between $21,560,312 and $31,970,005 is primarily
working capital and long term debt..
(i): Invested by Hidroneuquen S.A. and included in the $44,040,090 amount
invested by Duke Hidronor, Inc. in Hidroneuquen S.A.
The difference between $44,040,090 and $44,978,840 is primarily
working capital.
(j): Guarantee by Church Street of Citelec's debt, which expires in May 1995.
(k): Guarantee by Church Street to the Argentine government to pay the
remainder of the acquisition price for common stock of Piedra del
Aguila and guarantee certain debt assumed on behalf of Piedra del
Aguila. Amount of the guarantee was reduced to $29.1 million on
January 7, 1994.
(l): Differences in earnings among companies related to the same facility
are due to other revenues and expenses of the direct parent of each
company.
</TABLE>
