<PAGE> 1
File No. 69-351
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:
<PAGE> 2
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 4,900,000 and includes a number of cities, of which the largest
are Charlotte, Greensboro, Winston-Salem and Durham in North Carolina and
Greenville and Spartanburg in South Carolina. During the year ended
December 31, 1994, 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, 1994, to be available after March 31, 1995, 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.
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. Church Street Capital Corp. ("Church Street"), a Delaware
corporation, manages investment funds and serves as the parent company for the
non-electric operating subsidiaries in the Claimant's system.
2
<PAGE> 3
The Claimant has the following inactive subsidiaries, all of which are
wholly owned:
<TABLE>
<S> <C>
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
</TABLE>
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.
At December 31, 1994, the Claimant operated 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 major generating stations owned by the
Claimant at December 31, 1994:
3
<PAGE> 4
<TABLE>
<CAPTION>
Facility Energy Source Net MW
-------- ------------- ------
<S> <C> <C>
Oconee Nuclear 2,538
McGuire Nuclear 2,258
Catawba(1) Nuclear 2,258
Belews Creek Coal 2,240
Marshall Coal 2,090
Allen Coal 1,140
Cliffside Coal 760
Others Coal 1,431
Bad Creek Hydroelectric 1,065
Jocassee Hydroelectric 610
Others Hydroelectric 1,007
Combustion Oil and gas 584
turbines
</TABLE>
-------------------
(1)The Catawba Nuclear Station is a jointly-owned facility, of
which the Claimant's ownership share is 12-1/2 percent.
The Claimant is currently constructing the Lincoln Combustion
Turbine Station, a 16-turbine facility designed to provide capacity at periods
of peak demand. The station will have a total generating capacity of 1,184
megawatts. Twelve units are expected to begin operation by the end of 1995,
with the remaining four units to begin operation in 1996. The facility is
designed to operate on either natural gas or oil.
In addition to the electric generating plants described above,
Claimant owned, as of December 31, 1994, approximately 8,300 conductor miles of
transmission lines, including 600 conductor miles of 500 kilovolts, 1,400
conductor miles of 220 kilovolts, 3,400 conductor miles of 100 kilovolts, and
2,900 conductor miles of 13 - 66 kilovolts.
4
<PAGE> 5
The Claimant also owned, as of December 31, 1994, approximately 72,500
conductor miles of distribution lines, including 46,800 conductor miles of
rural overhead lines, 14,400 conductor miles of urban overhead lines, 6,300
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 83,100,000 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 D for the
locations of principal generating plants, transmission lines, and distribution
facilities of Claimant and NP&L. Such map is incorporated herein by reference.
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):
5
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<TABLE>
<CAPTION>
Company Kwh.
------- ----
<S> <C>
Claimant(1) 65,687,699,000
(retail)
10,035,612,000(2)
(wholesale)
NP&L
832,637,000
(retail)
176,554,000(3)
(wholesale)
--------------
</TABLE>
(1) Excludes (160,424,000) Kwh for change in electric service rendered
but not yet billed to customers.
(2) Excludes 5,761,187,000 Kwh received by the other joint owners of
the Catawba Nuclear Station, which represents delivery of the
other joint owners energy entitlements. These deliveries are not
reflected as sales by the Claimant.
(3) Includes sales to Claimant of 22,617,000 Kwh.
<TABLE>
<CAPTION>
Gas Sales (at retail)
---------------------
<S> <C>
Company Mcf.
------- ----
Claimant None
NP&L None
</TABLE>
(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.
<TABLE>
<CAPTION>
Company Kwh.
------- ----
<S> <C>
Claimant 20,307,998,000
NP&L None
Company Mcf.
------- ----
Claimant None
NP&L None
</TABLE>
6
<PAGE> 7
(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.
<TABLE>
<CAPTION>
Company Kwh.
------- ----
<S> <C>
Claimant 3,924,268,000
NP&L 79,134,000(1)
Company Mcf.
------- ----
Claimant None
NP&L None
</TABLE>
------------------
(1)Kwh bought from Claimant and sold to TVA, which is
organized outside North Carolina. However, sales are
made at interconnection points inside North Carolina.
(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.
<TABLE>
<CAPTION>
Company Kwh.
------- ----
<S> <C>
Claimant 3,138,268,000
NP&L 22,617,000(1)
Company Mcf.
------- ----
Claimant None
NP&L None
</TABLE>
- ------------------
(1)This 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:
7
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(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.
The Claimant owns indirect equity interests in three foreign utility
companies that directly own electric facilities in Argentina, and one foreign
utility company that directly owns electric facilities in Indonesia. Such
electric facilities 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 Energy and the National
Regulatory Entity of Electricity. Energy and capacity are sold on a
competitive spot market basis and under term agreements 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
8
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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 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 hydro-electric 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. Energy and capacity are sold on a competitive
spot market basis and under term agreements, in accordance with dispatch
instructions from a central dispatch center.
(4) P.T. PUNCAKJAYA POWER ("PJP")
Location of Irian Jaya region of eastern
Facility: Indonesia
Business Plaza 89, 6th Floor
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Address: J1. H.R. Rasuna Said Kav. X-7 No. 6
Jakarta 12940, Indonesia
PJP owns or will own certain facilities consisting of power
generation, transmission and distribution assets which are existing, under
construction or planned. Such facilities provide electric power to a large
mining and milling operation and its supporting infrastructure. The generation
assets will consist of nine separate power production plants located in Irian
Jaya, Indonesia.
As of December 31, 1994, PJP owned the following assets: five Power
Generation Facilities consisting of 34 diesel generating units (ranging from
2.2 MW to 4.0 MW) and two hydroelectric generating units (approximately 3.15 MW
each) and the related transmission and distribution to deliver the power to the
end user.
Existing on-line power plants have a combined adjusted nameplate
capacity of approximately 108 MW; power plants currently under construction are
expected to have a combined adjusted nameplate capacity of approximately 69MW;
and planned power plant additions are expected to have a combined adjusted
nameplate capacity of approximately 16 MW.
The facilities also include or will include the following transmission
and distribution assets: a 115 kV ring bus which interconnects certain of the
power production plants and a 13 kilometer 20 kV transmission line which will
join two portions of the facilities upon its completion.
(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
10
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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 in Exhibits C-1 through C-4.
(1) GUEMES FACILITY
Central Termica Guemes S.A.
Duke Guemes, Inc.
Powerco S.A.
Powerco Services S.A.
Duke Guemes Operating Corp.
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., ("Powerco") an Argentine corporation headquartered in Buenos
Aires. Powerco 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 ("Powerco
Services"), which provides operating expertise to the Guemes facility, and is
the operator of the Guemes station presently qualified by the Argentine
government. Duke Guemes owns 100% of the outstanding voting stock of Duke
Guemes Operating Corp. ("DGOC"), a Delaware corporation, which assists Powerco
Services in operating the Guemes Power Station.
(2) TRANSENER FACILITIES
Compania de Transporte de Energia
Electrica en Alta Tension
Transener S.A.
Duke Transener, Inc.
Compania Inversora en Transmision
11
<PAGE> 12
de Electrica Citelec S.A. ("Citelec")
Duke Transener Operating Corp.
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 presently qualified by the Argentine government. Duke
Transener also owns 100% of the outstanding voting stock of Duke Transener
Operating Corp., a Delaware corporation ("DTOC"). DTOC provides operating
expertise to the Transener facilities.
(3) PIEDRA DEL AGUILA FACILITY
Hidroelectrica Piedra del Aguila S.A.
Duke Hidronor, Inc.
Hidroneuquen S.A.
Duke Hidronor Operating Corp.
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., ("Hidroneuquen") an Argentine
corporation. Hidroneuquen 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.
Duke Hidronor also owns 100% of the outstanding voting stock of Duke Hidronor
Operating Corp., a Delaware corporation ("DHOC"). DHOC will become an operator
of the Piedra del Aguila facility, upon approval of the Argentine
12
<PAGE> 13
government, replacing Duke Hidronor in that capacity. Duke Hidronor will
continue to be a foreign utility company by virtue of the ownership interests
described herein.
(4) PJP FACILITY
P.T. Puncakjaya Power
P.T. Nusantara Power Services ("NPS")
Duke Irian Jaya, Inc.
Thirty percent of the outstanding voting stock of PJP is owned by Duke
Irian Jaya, Inc., a Delaware corporation ("Duke Irian Jaya"), which is a wholly
owned direct subsidiary of DEG. The outstanding voting stock of NPS is 40%
owned by Duke Coal Project Services Pacific, Inc., a Nevada corporation
("DCPSP"). DCPSP is a wholly owned direct subsidiary of Duke Coal Project
Services Group, Inc., a Delaware corporation, which is a wholly owned
subsidiary of Church Street. NPS became the operator of the PJP facilities
after December 31, 1994.
(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.
(1) GUEMES
As of December 31, 1994, DEG had invested $19,625,448 of equity in
Duke Guemes. Duke Guemes had invested $18,247,005 of equity in Powerco and
$20,910 of equity in Powerco Services. Powerco had invested $31,850,113 of
equity in Guemes.
(2) TRANSENER
13
<PAGE> 14
As of December 31, 1994, DEG had invested $19,384,344 of equity in
Duke Transener. Duke Transener had invested $18,483,010 of equity in Citilec.
Citilec had invested $205,195,749 of equity in Transener.
As of December 31, 1994, Church Street had guaranteed $4 million of
Citilec debt. This guarantee expires in May 1995.
(3) PIEDRA DEL AGUILA
As of December 31, 1994, DEG had invested $48,418,887 of equity in
Duke Hidronor. Duke Hidronor had invested $48,649,407 of equity in
Hidroneuquen. Hidroneuquen had invested $276,535,028 of equity in Piedra del
Aguila.
As of December 31, 1994, Church Street had guaranteed $485,284 to the
Argentine government for a bid bond and public works bond.
(4) PJP
As of December 31, 1994, DEG had invested $7,500,179 of equity in
Duke Irian Jaya. Duke Irian Jaya had invested $3,750,179 of equity and
$3,750,000 of subordinated debt in PJP. As of December 31, 1994, no equity had
been invested in DCPSP or NSP. Operations of these entities began in 1995.
(D) CAPITALIZATION AND EARNINGS OF THE EWG OR FOREIGN UTILITY COMPANY
DURING THE REPORTING PERIOD.
See Exhibit A-6 for capitalization and earnings of 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).
14
<PAGE> 15
During the reporting period, the following service contracts were in
effect:
1. Powerco Services and Guemes are parties to an Operation, Maintenance
and Management Services Agreement under which Powerco Services
provides operation, maintenance and management services for the Guemes
Facility. Guemes reimburses Powerco Services for its direct costs
incurred in providing such services plus an additional 7% of non-labor
direct costs. Guemes also pays Powerco Services a fixed fee of
$15,000 per month (adjusted based on increases in the GNP Implicit
Price Deflator), and a quarterly variable fee of 6% of Guemes's net
quarterly earnings before interest, principal, taxes and depreciation.
2. Powerco Services and Duke Guemes are parties to a Technical Assistance
and Staffing Agreement, whereby Duke Guemes provides technical
assistance and personnel necessary to allow Powerco Services to carry
out its obligations under the Contract described in #1 above. Powerco
Services agrees to reimburse Duke Guemes for all of its direct costs
incurred in carrying out the contract plus an additional 7% of
non-labor direct costs. It also agrees to pay to Duke Guemes a fixed
fee of $7,650 per month (adjusted similarly as above), and a quarterly
variable fee equal to 51% of the variable fee described in #1 above.
3. Transener, DTOC and four other entities are parties to a Technical
Assistance Agreement for the Operation, Maintenance and Management of
the Transener Facilities. DTOC and the other parties provide
technical assistance to Transener in connection with its operation,
maintenance and management of the Transener Facilities. Transener
pays to DTOC and the other parties a fee equal to five percent of
Transener's annual income, distributed pro rata based upon ownership
in Citilec, Transener's direct parent.
4. Piedra del Aguila, Duke Hidronor and two other entities are parties to
a Technological Assistance and Transfer of Technology Agreement
whereby Duke Hidronor and the other two parties provide technical
knowledge and assistance and transfers of certain technology to Piedra
del Aguila for operation of the Piedra del Aguila Facility. As
compensation under the Agreement, Piedra del Aguila agrees to pay Duke
Hidronor and the other parties 1.5% of its annual gross income. The
fee is to be distributed equally among Duke Hidronor and the other two
parties providing services under the Agreement.
5. Duke Energy Corp. ("DEC"), a subsidiary of DEG, has entered into a
Services Agreement with Duke Guemes pursuant to which DEC provides to
Duke Guemes administrative, financial and other services, as requested
by Duke Guemes, related to the Guemes Facility. DEC is reimbursed by
Duke Guemes for all reasonable costs incurred in its performance of
such services. DEC has identical agreements with Duke Transener, Duke
Hidronor, Duke Irian Jaya, DGOC, DTOC and DHOC, each agreement
relating to the project with which such company is associated.
6. PJP and DEC are parties to a Project Administrative Services
Agreement, under which DEC provides administrative services to PJP
related to PJP's insurance, credit agreement, accounting and
treasury functions. DEC receives a fee based on its recovery of cost
of providing such services, at rates which may be revised from time to
time.
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, 1995.
DUKE POWER COMPANY
By: Ellen T. Ruff
--------------------------
Ellen T. Ruff, Secretary
and Deputy General Counsel
{CORPORATE SEAL}
ATTEST:
Robert T. Lucas III
- ------------------------
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
15
<PAGE> 16
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.
<TABLE>
<S> <C>
Exhibit A-1 - Consolidated Statements of Income and Retained Earnings of Duke Power Company for 1994 and Consolidated Balance
Sheet of Duke Power Company as of December 31, 1994.
Exhibit A-2 - Unconsolidated Statements of Income and Retained Earnings of Duke Power Company for 1994 and Unconsolidated
Balance Sheet of Duke Power Company as of December 31, 1994.
Exhibit A-3 - Statement of Income and Retained Earnings of Nantahala Power and Light Company for 1994 and Balance Sheet of
Nantahala Power and Light Company as of December 31, 1994.
Exhibit A-4 - Unconsolidated Statement of Income and Retained Earnings of Church Street Capital Corp. for 1994 and
Unconsolidated Balance Sheet of Church Street Capital Corp. as of December 31, 1994.
Exhibit A-5 - Consolidated Statements of Income and Retained Earnings of Foreign Utility Companies wholly owned by Claimant for
1994 and Consolidated Balance Sheets of Foreign Utility Companies Wholly-Owned by Claimant as of December 31,
1994.
Exhibit A-6 - Duke Power Company Capitalization and Earnings of Foreign Utility Companies as of and for the year ended December
31, 1994
</TABLE>
16
<PAGE> 17
EXHIBIT A-1
Page 1 of 3
DUKE POWER COMPANY
CONSOLIDATED STATEMENT OF INCOME
(DOLLARS IN THOUSANDS)
(AUDITED)
<TABLE>
<CAPTION>
Year Ended
December 31
1994
-----------
<S> <C>
OPERATING REVENUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,488,913
OPERATING EXPENSES
Fuel used in electric generation . . . . . . . . . . . . . . . . . . . . 705,019
Net interchange and purchased power . . . . . . . . . . . . . . . . . . . 553,355
Other operation and maintenance . . . . . . . . . . . . . . . . . . . . . 1,341,659
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 459,781
General taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 249,273
-----------
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . 3,309,087
-----------
OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,179,826
-----------
INTEREST EXPENSE AND OTHER INCOME
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . (270,217)
Allowance for funds used during construction and other deferred returns . 111,872
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14,414
-----------
Total interest expense and other income . . . . . . . . . . . . . . . (143,931)
-----------
INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . 1,035,895
-----------
INCOME TAXES
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 302,758
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,512
Investment tax credit - amortization of credits . . . . . . . . . . . . . (11,251)
-----------
Total income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 397,019
-----------
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638,876
Dividends on preferred and preference stock . . . . . . . . . . . . . . . 49,724
-----------
EARNINGS FOR COMMON STOCK . . . . . . . . . . . . . . . . . . . . . . . . . $ 589,152
===========
COMMON STOCK DATA
Average common shares outstanding (thousands) . . . . . . . . . . . . . . 204,859
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.88
Dividends per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.92
</TABLE>
<PAGE> 18
Exhibit A-1
Page 2 of 3
DUKE POWER COMPANY
CONSOLIDATED STATEMENT OF RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1994
(DOLLARS IN THOUSANDS)
<TABLE>
<CAPTION>
Year Ended
December 31
1994
-----------
<S> <C>
BALANCE - December 31, 1993 . . . . . . . . . . . . . . $ 2,410,825
ADD - Net income . . . . . . . . . . . . . . . . . . . . 638,876
-----------
Total . . . . . . . . . . . . . . . . . . . 3,049,701
-----------
DEDUCT
Dividends
Common stock . . . . . . . . . . . . . . . . . . . . 393,370
Preferred and preference stock . . . . . . . . . . . 49,724
Capital stock transactions, net . . . . . . . . . . . 687
-----------
Total deductions . . . . . . . . . . . . . . 443,781
-----------
BALANCE - December 31, 1994 . . . . . . . . . . . . . . $ 2,605,920
===========
</TABLE>
<PAGE> 19
Exhibit A-1
Page 3 of 3
DUKE POWER COMPANY
CONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
(AUDITED)
<TABLE>
<CAPTION>
December 31
1994
ASSETS -----------------
<S> <C>
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 37,430
Short-term investments . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 132,692
Receivables (less allowance for losses: 1994 - $6,637) . . . . . . . . . . . . . . . . . . . . 552,865
Inventory - at average cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 319,385
Prepayments and other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,722
-----------------
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,058,094
-----------------
INVESTMENTS AND OTHER
Investments in joint ventures . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 108,330
Other investments, at cost or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,226
Nuclear decommissioning trust funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,390
Pre-funded pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
-----------------
Total investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 443,946
-----------------
PROPERTY, PLANT AND EQUIPMENT
Electric plant in service (at original cost)
Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,747,397
Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,439,435
Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,965,393
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,020,192
-----------------
Electric plant in service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,172,417
Less accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 4,810,004
-----------------
Electric plant in service, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,362,413
-----------------
Nuclear fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757,983
Less accumulated amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415,560
-----------------
Nuclear fuel, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342,423
-----------------
Construction work in progress (including nuclear fuel in process: 1994 - $52,273) . . . . . . 558,730
-----------------
Total electric plant, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,263,566
Other property - at cost (less accumulated depreciation: 1994 - $24,137) . . . . . . . . . . . 302,383
-----------------
Total property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . 9,565,949
-----------------
DEFERRED DEBITS
Purchased capacity costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 932,324
Debt expense, primarily refinancing costs, being amortized over the terms of related debt . . 186,306
Regulatory asset related to income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 489,292
Regulatory asset related to DOE assessment fee . . . . . . . . . . . . . . . . . . . . . . . . 102,467
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 83,850
-----------------
Total deferred debits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,794,239
-----------------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,862,228
=================
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 343,688
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 107,100
Taxes accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29,999
Interest accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,157
Current maturities of long-term debt and preferred stock . . . . . . . . . . . . . . . . . . . 93,759
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 121,539
-----------------
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 768,242
-----------------
LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,567,122
-----------------
ACCUMULATED DEFERRED INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,348,631
-----------------
DEFERRED CREDITS AND OTHER LIABILITIES
Investment tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 272,594
DOE assessment fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,467
Nuclear decommissioning costs externally funded . . . . . . . . . . . . . . . . . . . . . . . 172,390
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 318,453
-----------------
Total deferred credits and other liabilities . . . . . . . . . . . . . . . . . . . . . . . 865,904
-----------------
PREFERRED AND PREFERENCE STOCK
Without sinking fund requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
With sinking fund requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279,500
-----------------
Total preferred and preference stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 779,500
-----------------
COMMON STOCKHOLDERS' EQUITY
Common stock, no par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,926,909
Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,605,920
-----------------
Total common stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,532,829
-----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,862,228
=================
</TABLE>
<PAGE> 20
EXHIBIT A-2
Page 1 of 3
DUKE POWER COMPANY
UNCONSOLIDATED STATEMENT OF INCOME
(DOLLARS IN THOUSANDS)
(UNAUDITED)
<TABLE>
<CAPTION>
Year Ended
December 31
1994
-----------
<S> <C>
OPERATING REVENUES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 4,279,329
OPERATING EXPENSES
Fuel used in electric generation . . . . . . . . . . . . . . . . . . . . . 705,019
Net interchange and purchased power . . . . . . . . . . . . . . . . . . . 553,802
Other operation and maintenance . . . . . . . . . . . . . . . . . . . . . 1,211,459
Depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 450,215
General taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239,714
-----------
Total operating expenses . . . . . . . . . . . . . . . . . . . . . . . 3,160,209
-----------
OPERATING INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,119,120
-----------
INTEREST EXPENSE AND OTHER INCOME
Interest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (264,512)
Allowance for funds used during construction and other deferred returns. . 110,856
Earnings of subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . 47,437
Other, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (327)
-----------
Total interest expense and other income . . . . . . . . . . . . . . . . (106,546)
-----------
INCOME BEFORE INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . 1,012,574
-----------
INCOME TAXES
Current . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 274,595
Deferred . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 110,354
Investment tax credit - amortization of credits . . . . . . . . . . . . . (11,251)
-----------
Total income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . 373,698
-----------
NET INCOME . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 638,876
Dividends on preferred and preference stock . . . . . . . . . . . . . . . 49,724
-----------
EARNINGS FOR COMMON STOCK . . . . . . . . . . . . . . . . . . . . . . . . . $ 589,152
===========
COMMON STOCK DATA
Average common shares outstanding (thousands) . . . . . . . . . . . . . . 204,859
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2.88
Dividends per share . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.92
</TABLE>
<PAGE> 21
Exhibit A-2
Page 2 of 3
DUKE POWER COMPANY
UNCONSOLIDATED STATEMENT OF RETAINED EARNINGS
TWELVE MONTHS ENDED DECEMBER 31, 1994
(Dollars in Thousands)
<TABLE>
<CAPTION>
Year Ended
December 31
1994
-----------
<S> <C>
BALANCE - December 31, 1993 . . . . . . . . . . . . . . $ 2,410,825
ADD - Net income . . . . . . . . . . . . . . . . . . . . 638,876
-----------
Total . . . . . . . . . . . . . . . . . . . 3,049,701
-----------
DEDUCT
Dividends
Common stock . . . . . . . . . . . . . . . . . . . . 393,370
Preferred and preference stock . . . . . . . . . . 49,724
Capital stock transactions, net . . . . . . . . . . . 687
-----------
Total deductions . . . . . . . . . . . . . . 443,781
-----------
BALANCE - December 31, 1994 . . . . . . . . . . . . . . $ 2,605,920
===========
</TABLE>
<PAGE> 22
Exhibit A-2
Page 3 of 3
DUKE POWER COMPANY
UNCONSOLIDATED BALANCE SHEET
(Dollars in Thousands)
(UNAUDITED)
<TABLE>
<CAPTION>
December 31
1994
ASSETS -----------------
<S> <C>
CURRENT ASSETS
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 15,608
Receivables (less allowance for losses: 1994 - $6,637) . . . . . . . . . . . . . . . . . . . . 553,010
Inventory - at average cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 305,251
Prepayments and other. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,713
-----------------
Total current assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 886,582
-----------------
INVESTMENTS AND OTHER
Investments in and advances to subsidiaries . . . . . . . . . . . . . . . . . . . . . . . . . 507,981
Other investments, at cost or less . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,449
Nuclear decommissioning trust funds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 172,390
Pre-funded pension cost . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 80,000
-----------------
Total investments and other assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . 777,820
-----------------
PROPERTY, PLANT AND EQUIPMENT
Electric plant in service (at original cost)
Production . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,718,341
Transmission . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,397,087
Distribution . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,892,196
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,011,761
-----------------
Electric plant in service . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,019,385
Less accumulated depreciation and amortization . . . . . . . . . . . . . . . . . . . . . . 4,736,595
-----------------
Electric plant in service, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,282,790
-----------------
Nuclear fuel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 757,983
Less accumulated amortization . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 415,560
-----------------
Nuclear fuel, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 342,423
-----------------
Construction work in progress (including nuclear fuel in process: 1994 - $52,273) . . . . . . 541,087
-----------------
Total electric plant, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,166,300
-----------------
Other property - at cost (less accumulated depreciation: 1994 - $10,268) . . . . . . . . . . . 48,166
-----------------
Total property, plant and equipment, net . . . . . . . . . . . . . . . . . . . . . . . . . 9,214,466
-----------------
DEFERRED DEBITS
Purchased capacity costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 932,324
Debt expense, primarily refinancing costs, being amortized over the terms of related debt . . 186,306
Regulatory asset related to income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . 489,292
Regulatory asset related to DOE assessment fee . . . . . . . . . . . . . . . . . . . . . . . . 102,467
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 71,679
-----------------
Total deferred debits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,782,068
-----------------
TOTAL ASSETS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,660,936
=================
</TABLE>
<PAGE> 23
<TABLE>
<CAPTION>
<S> <C>
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES
Accounts payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 341,168
Notes payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 97,000
Taxes accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 22,961
Interest accrued . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 72,017
Current maturities of long-term debt and preferred stock . . . . . . . . . . . . . . . . . . . 83,426
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 119,443
-----------------
Total current liabilities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 736,015
-----------------
LONG-TERM DEBT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,451,700
-----------------
ACCUMULATED DEFERRED INCOME TAXES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,319,943
-----------------
DEFERRED CREDITS AND OTHER LIABILITIES
Investment tax credit . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 271,254
DOE assessment fee . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 102,467
Nuclear decommissioning costs externally funded . . . . . . . . . . . . . . . . . . . . . . . 172,390
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 294,838
-----------------
Total deferred credits and other liabilities . . . . . . . . . . . . . . . . . . . . . . . 840,949
-----------------
PREFERRED AND PREFERENCE STOCK
Without sinking fund requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 500,000
With sinking fund requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 279,500
-----------------
Total preferred and preference stock . . . . . . . . . . . . . . . . . . . . . . . . . . . 779,500
-----------------
COMMON STOCKHOLDERS' EQUITY
Common stock, no par . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,926,909
Retained earnings. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,605,920
-----------------
Total common stockholders' equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,532,829
-----------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY . . . . . . . . . . . . . . . . . . . . . . . . . . $ 12,660,936
=================
</TABLE>
<PAGE> 24
Exhibit A-3
Page 1 of 2
NANTAHALA POWER AND LIGHT COMPANY
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1994
(UNAUDITED)
<TABLE>
<S> <C>
Operating Revenues
Electric revenues-regular $ 54,652,622
Electric revenues-special contract 13,942,952
-------------
Total Revenues 68,595,574
-------------
Operating Expenses
Purchased power-regular 24,888,271
Purchased power-special contract 10,230,178
Other operations 8,387,516
Maintenance 4,412,309
Depreciation 4,531,350
Taxes other than income 3,921,544
-------------
Total Electric Expenses 56,371,168
-------------
Operating Income 12,224,406
-------------
Interest Expense and Other Income
Interest expense (3,147,729)
AFUDC and other deferred returns 1,016,212
Other, net (68,105)
-------------
Total Other Income (2,199,622)
-------------
Income Before Income Taxes 10,024,784
Income Taxes 3,855,837
-------------
Net Income 6,168,947
Retained Earnings-Beginning of Period 44,552,629
-------------
Retained Earnings-End of Period $ 50,721,576
=============
</TABLE>
<PAGE> 25
Exhibit A-3
Page 2 of 2
NANTAHALA POWER AND LIGHT COMPANY
BALANCE SHEET
AS OF DECEMBER 31, 1994
(UNAUDITED)
<TABLE>
<S> <C>
Current Assets
Cash $ 136,733
Receivables, net-customers 5,205,881
Receivables-parent 1,025,848
Materials and supplies 2,833,231
Prepayments 173,282
Deferred income taxes 1,183,603
-------------
Total Current Assets 10,558,578
-------------
Property, Plant And Equipment
Electric plant in service 154,766,597
Less: accumulated depreciation & amortization 74,150,536
-------------
Electric plant in service, net 80,616,061
Construction work in progress 22,233,337
-------------
Total Electric Plant, net 102,849,398
Other property 1,240,080
-------------
Total Property, Plant and Equipment, Net 104,089,478
-------------
Deferred Debits 12,419,114
-------------
Total Assets $ 127,067,170
=============
Current Liabilities
Accounts payable-trade $ 1,717,190
Accounts payable-parent 4,119,720
Notes payable 13,400,000
Taxes accrued 312,816
Current portion of long-term debt 222,309
Customer deposits 433,273
Deferred purchased power costs 2,443,005
Other accrued liabilities 476,490
-------------
Total Current Liabilities 23,124,803
-------------
Long-Term Debt 33,430,669
-------------
Accumulated Deferred Income Tax 6,879,358
-------------
Deferred Credits And Other Liabilities
Deferred investment tax credit 1,328,573
Other 8,962,783
-------------
Total Deferred Credits 10,291,356
-------------
Stockholder's Equity
Common Stock 382,020
Additional Paid-In-Capital 2,237,388
Retained Earnings 50,721,576
-------------
Total Stockholder's Equity 53,340,984
-------------
Total Liabilities and Stockholder's Equity $ 127,067,170
=============
</TABLE>
<PAGE> 26
Exhibit A-4
Page 1 of 2
CHURCH STREET CAPITAL CORP.
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1994
(UNCONSOLIDATED)
(UNAUDITED)
<TABLE>
<S> <C>
Operating Revenues
Interest Income $ 3,496,252
Income From Dividend Capture Program 4,762,368
Dividend Income 514,900
Amortization of (Premiums) and Discounts (Net) 3,489
Gain/(Loss) on Transactions 65,099
Other Income 10,380
---------------
Total Income 8,852,488
---------------
Operating Expenses
Interest on Advances 2,072
Management Fees 2,125,143
Miscellaneous Expenses 341,368
---------------
Total Expenses 2,468,583
---------------
Operating Income 6,383,905
Equity Method-Earnings of Subsidiaries 34,486,125
---------------
Income Before Income Taxes 40,870,030
Provision for Income Taxes
Current 6,098,717
Deferred (7,277,245)
---------------
Net Income 42,048,558
Retained Earnings-Beginning of the Period 148,812,406
---------------
Retained Earnings-End of the Period $ 190,860,964
===============
</TABLE>
<PAGE> 27
Exhibit A-4
Page 2 of 2
CHURCH STREET CAPITAL CORP.
BALANCE SHEET
AS OF DECEMBER 31, 1994
(UNCONSOLIDATED)
(UNAUDITED)
<TABLE>
<S> <C>
Current Assets
Cash $ 235,335
Accounts Receivable 10,000
Muncipal Securities 118,492,250
Other Short Term Investments 14,200,000
Accrued Interests Receivable 346,035
Accrued Dividends Receivable 14,145
---------------
Total Current Assets 133,297,765
---------------
Investments And Other
Investment in Subsidiaries 286,631,069
Investment in Dividend Capture Program 37,949,500
Accumulated Deferred Income Taxes 4,107,836
---------------
Total Investments And Other 328,688,405
---------------
Total Assets $ 461,986,170
===============
Current Liabilities
Accounts Payable $ 1,508,376
Taxes accrued (70,829)
---------------
Total Current Liabilities 1,437,547
---------------
Stockholder's Equity
Common Stock 5,500
Additional Paid In Capital 269,682,659
Retained Earnings 190,860,964
Less: Treasury Stock 500
---------------
Total Stockholder's Equity 460,548,623
---------------
Total Liabilities and Stockholder's Equity $ 461,986,170
===============
</TABLE>
Note: Retained earnings are restricted in the amount of the cost of the
treasury stock.
<PAGE> 28
Exhibit A-5
Page 1 of 2
FOREIGN UTILITY COMPANIES WHOLLY-OWNED BY CLAIMANT
CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
DUKE DUKE
DUKE GUEMES TRANSENER HIDRONOR
--------------------------------------------------------------
<S> <C> <C> <C>
Operating Revenues
Income from operations of facilities $ 1,472,000 $ 616,092 $ 648,938
Earnings of Powerco (503,368)
Earnings of Citilec 579,108
Earnings of Hidroneuquen 2,652,994
Other income 15,300 35,650 12,000
--------------- --------------- ----------------
Total Revenues 983,932 1,230,850 3,313,932
--------------- --------------- ----------------
Operating Expenses
Administrative and other 1,007,800 329,533 211,841
Depreciation and amortization 173,809 140,395 139,481
Other taxes 220,386 168,591 199,579
--------------- --------------- ---------------
Total Expenses 1,401,995 638,519 550,901
--------------- --------------- ---------------
Operating Income (418,063) 592,331 2,763,031
Other Income, Net (40,600) 1,305,512 288,856
--------------- --------------- ---------------
Income Before Income Taxes (458,663) 1,897,843 3,051,887
Provision for Income Taxes
Current 10,464 964,885 139,612
Deferred (422,653) (80,166) 928,548
--------------- --------------- ---------------
Net Income (46,474) 1,013,124 1,983,727
Retained Earnings - Beginning of the Period (1,049,078) 859,666 -
Dividends Paid to DEG - (1,723,902) (235,000)
--------------- --------------- ---------------
Retained Earnings - End of the Period $ (1,095,552) $ 148,888 $ 1,748,727
=============== =============== ===============
</TABLE>
NOTE: Duke Irian Jaya began operations on December 30, 1994. Revenues and
expenses were not reported for 1994.
<PAGE> 29
Exhibit A-5
Page 2 of 2
FOREIGN UTILITY COMPANIES WHOLLY-OWNED BY CLAIMANT
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 1994
(UNAUDITED)
<TABLE>
<CAPTION>
DUKE DUKE DUKE IRIAN
DUKE GUEMES TRANSENER HIDRONOR JAYA
-----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Current Assets
Cash $ 22,158 $ 787,867 $ 404,468
Accounts receivable-trade 1,721 571
Accounts receivable-affiliate 877,960 100,744 97,588
Other current assets 225,000 50,000
------------ ------------ ------------ -------------
Total Current Assets 1,126,839 889,182 552,056
------------ ------------ ------------ -------------
Investments And Other
Investment in Powerco S.A. 18,247,005
Investment in Citilec S.A. 18,483,010
Investment in Hidroneuquen S.A. 48,649,407
Investment in Puncakjaya Power 7,500,179
Other deferred costs 521,428 526,482 790,391 934,491
------------ ------------ ------------ -------------
Total Investments And Other 18,768,433 19,009,492 49,439,798 8,434,670
------------ ------------ ------------ -------------
Total Assets $ 19,895,272 $ 19,898,674 $ 49,991,854 $ 8,434,670
============ ============ ============ =============
Current Liabilities
Accounts payable-trade $ 1,050 $ 1,050 $ 1,000
Accounts payable-affiliate 704,164 981,870 685,978 535,060
Taxes accrued (3,688) (274,205) (42,559)
Other 72,000 - - 399,431
------------ ------------ ------------ -------------
Total Current Liabilities 773,526 708,715 644,419 934,491
------------ ------------ ------------ -------------
Deferred Credits And Other Liabilities
Accumulated Deferred Income Taxes (522,792) (194,385) 928,548
Minority Interest in Consolidated Joint Venture 19,090 - - -
------------ ------------ ------------ -------------
Total Deferred Credits And Other Liabilities (503,702) (194,385) 928,548 -
------------ ------------ ------------ -------------
Stockholder's Equity
Common Stock- no par 1,000 1,000 1,000
Additional Paid-In-Capital 20,720,000 19,234,456 46,669,160 7,500,179
Retained Earnings (1,095,552) 148,888 1,748,727 -
------------ ------------ ------------ -------------
Total Stockholder's Equity 19,625,448 19,384,344 48,418,887 7,500,179
------------ ------------ ------------ -------------
Total Liabilities and Stockholder's Equity $ 19,895,272 $ 19,898,674 $ 49,991,854 $ 8,434,670
============ ============ ============ =============
</TABLE>
<PAGE> 30
EXHIBIT A-6
PAGE 1 OF 1
DUKE POWER COMPANY
Capitalization and Earnings of Foreign Utility Companies
As Of And For The Year Ended December 31, 1994
US $
<TABLE>
<CAPTION>
CAPITALIZATION:
Amount
------
<S> <C>
Guemes
Shareholders' Equity $ 53,083,522
Long-term Debt $ 65,683,000
--------------
Total Capitalization $ 118,766,522
==============
Transener
Shareholders' Equity $ 315,685,768
Long-term Debt $ 671,064
--------------
Total Capitalization $ 316,356,832
==============
Piedra del Aguila
Shareholders' Equity $ 468,703,438
Long-term Debt $ 400,748,243
--------------
Total Capitalization $ 869,451,681
==============
Puncakjaya Power
Shareholders' Equity $ 12,500,000
Long-term Debt $ 75,000,000
Subordinated Debt $ 12,500,000
--------------
Total Capitalization $ 100,000,000
==============
EARNINGS:
Guemes $ 316,240
==============
Transener $ 18,372,677
==============
Piedra del Aguila $ 27,891,906
==============
Puncakjaya Power $ - (1)
==============
</TABLE>
(1) Puncakjaya Power began operations on December 30, 1994.
Revenues and expenses were not reported for 1994.
<PAGE> 31
EXHIBIT B
FINANCIAL DATA SCHEDULE
(DOLLARS IN THOUSANDS)
<TABLE>
<S> <C>
Total Assets $ 12,862,228
Total Operating Revenues $ 4,488,913
Net Income $ 638,876
</TABLE>
<PAGE> 32
EXHIBIT C
An organizational chart showing the relationship of each EWG or foreign
utility company to associate companies in the holding-company system.
<TABLE>
<S> <C>
EXHIBIT C-1 Chart showing relationship of Guemes to associate companies in the holding-company system.
EXHIBIT C-2 Chart showing relationship of Transener to associate companies in the holding-company system.
EXHIBIT C-3 Chart showing relationship of Piedra del Aguila to associate companies in the holding-company system.
EXHIBIT C-4 Chart showing relationship of PJP to associate companies in the holding-company system.
</TABLE>
<PAGE> 33
EXHIBIT C-1
GUEMES
Claimant
|
|
|
|
Church Street
|
|
|
|
DEG
| Duke Guemes
| Operating Corp.
| |
| ------------------
Duke Guemes
| ------------------
| | 51%
| |
25% | Powerco
| Services S.A.
|
|
Powerco S.A.
|
|
60% |
|
|
Guemes
Ownership is 100% unless otherwise specified.
<PAGE> 34
EXHIBIT C-2
TRANSENER
Claimant
|
|
|
|
Church Street
|
|
|
|
DEG
|
|
|
|
Duke Transener------------ Duke Transener
| Operating Corp.
|
| 15%
|
|
Citelec
|
|
|
| 65%
|
|
Transener
Ownership is 100% unless otherwise specified
<PAGE> 35
EXHIBIT C-3
PIEDRA DEL AGUILA
Claimant
|
|
|
|
Church Street
|
|
|
|
DEG
|
|
|
|
Duke Hidronor------------ Duke Hidronor
| Operating Corp.
16.54% |
|
|
Hidroneuquen S.A.
|
|
|
59% |
|
|
Piedra del Aguila
Ownership is 100% unless otherwise specified
<PAGE> 36
EXHIBIT C-4
PJP
Claimant
|
|
|
| Duke Coal
Church Street------------Project Services
| Group, Inc.
| |
| |
| |
| |
DEG |
| Duke Coal Project
| Services Pacific, Inc.
| |
Duke Irian Jaya | 40%
| |
| |
| |
30%| NPS
|
|
PJP
Ownership is 100% unless otherwise specified.
<PAGE> 37
EXHIBIT D
Map showing principal generating plants, transmission lines, and
distribution facilities of Claimant and NP&L. Reference is made to Exhibit C
of the Claimant's Form U-3A-2, File Number 69-351, for the year ended December
31, 1993, filed under cover of Form SE on February 25, 1994. Such exhibit is
hereby incorporated herein by reference.
