<PAGE>
FORM U-3A-2
FILE NO. 69-143
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
STATEMENT BY HOLDING COMPANY CLAIMING
EXEMPTION UNDER U-3A-2 RULE FROM THE
PROVISIONS OF THE PUBLIC UTILITY
HOLDING COMPANY ACT OF 1935
EASTERN GAS & WATER INVESTMENT COMPANY
OCEAN CITY, MARYLAND
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EASTERN GAS & WATER INVESTMENT COMPANY hereby files 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. In support of such claim for exemption the following
information is submitted:
1. The name of the claimant is Eastern Gas & Water
Investment Company, a corporation organized in the State
of Delaware, and located at Ocean City, Maryland. It is
a holding company, having totally owned subsidiaries as
follows:
(a) The Eastern Shore Gas Company (Maryland), a
corporation organized in the State of Maryland,
whose principal office is located at Ocean City,
Maryland. It is engaged in the retail, utility
distribution of propane to its customers.
(b) Eastern Shore Propane, a corporation organized in
the State of Delaware, whose principal office is
located at Ocean City, Maryland. It is engaged in
the retail sale of bottled propane to its customers.
(c) The Chestertown Shorgas Company, a corporation
organized in the State of Maryland, whose principal
office was located at Chestertown, Maryland. It was
formerly engaged in the retail, utility distribution
of propane air gas to its customers. This company
is currently a shell corporation with no business
activity.
(d) Eastern Management Services, Inc., a Delaware
Corporation, whose principal office was located in
King of Prussia, Pennsylvania. It was formerly
engaged in management services to its affiliates.
This company is currently a shell corporation with
no business activity.
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(e) West Virginia Oil Gathering Corporation, a
corporation organized in the State of West Virginia,
whose principal office is located in Eureka, West
Virginia. It is engaged in truck and pipeline
operations.
2. The Eastern Shore Gas Company (Maryland) has plants in
Snow Hill, Berlin, Ocean City, West Ocean City and
Pocomoke City, Maryland, at which propane gas is stored
and then distributed and sold to its customers.
3. The following information is for the last calendar year
(i.e., December 31, 1997) with respect to claimant and
each of its subsidiary public utility companies:
(a) During the calendar year 1997, the Eastern Shore Gas
Company (Maryland) sold 565,203 M.C.F. to its retail
customers.
(b) None of the above mentioned subsidiaries distributes
any natural or manufactured gas at retail outside of
the state in which each company is organized.
(c) None of the above mentioned subsidiaries sells
natural or manufactured gas at wholesale outside the
state in which each company is organized or at the
state line.
(d) None of the above mentioned subsidiaries purchases
natural or manufactured gas outside the state in
which each company is organized or at the state
line.
A consolidating statement of income and surplus of the
claimant and its subsidiary companies for the last
calendar year (i.e., calendar year ending December 31,
1997) together with a consolidating balance sheet of
claimant and its subsidiary companies as of the close of
such calendar year is attached hereto as Exhibit A.
4. a. through e. -- none of the subsidiaries qualify as an
EWG or as a foreign utility.
Exhibit C -- Not Applicable.
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The above named claimant has caused this statement to be duly
executed on its behalf by its authorized officers on this 26th
day of February 1998.
EASTERN GAS & WATER INVESTMENT COMPANY
BY: Nicolette M. Martinelli
Treasurer
ATTEST:
Carolyn A. Park
Secretary
Name, title and address of officer to whom notices and
correspondence concerning this statement should be addressed:
Nicolette M. Martinelli Treasurer
5 Radnor Corporate Center, Suite 400
Radnor, PA 19087
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EASTERN GAS & WATER INVESTMENT CO
FILE NO. 69-143
CONSOLIDATING INCOME STATEMENT
FOR THE YEAR ENDING DECEMBER 31, 1997
<TABLE>
<CAPTION>
WEST
EASTERN EASTERN VIRGINIA
SHORE SHORE OIL
GAS PROPANE GATHERING EGWIC CONSOLIDATED
---------- ---------- ------------- ---------- ----------------
<S> <C> <C> <C> <C> <C>
REVENUE
GAS SALES................................ 2,649,045 346,881 -- 2,995,926
SERVICE INCOME........................... 309,308 -- -- 309,308
OTHER REVENUE............................ 47,408 9,465 167,950 224,823
OIL GATHERING............................ 2,422,618 2,422,618
---------- ---------- ------------- ---------- ----------------
3,005,761 356,346 2,590,568 -- 5,952,674
EXPENSES
PRODUCTION EXPENSE....................... 43,390 33,990 -- -- 77,380
DISTRIBUTION EXPENSE..................... 1,891,104 160,910 -- 5,992 2,058,006
OPERATING EXENSES........................ -- -- 1,906,184 -- 1,906,184
DEPRECIATION............................. 342,614 71,332 232,063 39,000 685,009
GENERAL & ADMINISTRATIVE................. 268,626 40,384 129,099 235 438,344
---------- ---------- ------------- ---------- ----------------
2,545,734 306,617 2,267,346 45,227 5,164,924
EARNINGS BEFORE TAXES.................... 460,027 49,728 323,222 (45,227) 787,751
INTEREST EXPENSE......................... -- -- 101,089 -- 101,089
STATE INCOME TAX......................... -- 3,482 22,213 25,695
FEDERAL INCOME TAX....................... 161,009 16,186 69,972 (15,829) 231,338
---------- ---------- ------------- ---------- ----------------
NET INCOME............................... 299,018 30,060 129,947 (29,397) 429,628
---------- ---------- ------------- ---------- ----------------
---------- ---------- ------------- ---------- ----------------
</TABLE>
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<TABLE>
<CAPTION>
EASTERN GAS & WATER INVESTMENT COMPANY
FILE NO. 69-143
CONSOLIDATING BALANCE SHEET
AS OF DECEMBER 31, 1997
WEST
EASTERN EASTERN VIRGINIA
SHORE SHORE OIL EMS & ELIMINA- CONSOL-
GAS PROPANE GATHERING EGWIC CHESTERTOWN TIONS IDATED
----------- ----------- ------------- ----------- ---------------- ------------ -----------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
PROPERTY, PLANT AND
EQUIP.............. 7,538,843 1,004,819 1,829,237 215,000 0 10,587,900
ACCUMULATED
DEPRECIATION....... (2,358,381) (382,892) (226,711) (2,967,984)
AQUISITION
ADJUSTMENT......... 230,000 1,570,959 1,800,959
AMORTIZATION
AQUISITION ADJ..... (215,000) (508,305) (723,305)
----------- ----------- ------------- ----------- ---------------- ------------ -----------
NET PROP, PLANT &
EQUIP.............. 5,180,462 636,927 1,602,526 1,277,654 0 0 8,697,570
CURRENT ASSETS:
CASH AND TEMP.
INVESTMENTS........ (1,579,920) (2,015,406) 655,061 (88,060) 2 (3,028,323)
ACCOUNTS RECEIVABLE.. (2,008,787) 2,436,297 427,509
INVENTORIES.......... 0 0
UNBILLED REVENUE..... 206,669 206,669
OTHER CURRENT
ASSETS............. 7,823 955 8,778
----------- ----------- ------------- ----------- ---------------- ------------ -----------
TOTAL CURRENT
ASSETS............. (3,382,038) 420,891 662,885 (87,105) 2 0 (2,385,366)
INVESTMENTS.......... 810,967 (810,867) 100
TOTAL ASSETS......... 1,798,424 1,057,818 2,265,411 2,001,516 2 (810,867) 6,312,303
----------- ----------- ------------- ----------- ---------------- ------------ -----------
----------- ----------- ------------- ----------- ---------------- ------------ -----------
LIABILITIES
COMMON STOCK......... 7,500 200 100 1,000 2 7,802 1,000
PREFERRED STOCK...... 2,799,000 2,799,000
TREASURY STOCK....... (24,720) (24,720)
APIC................. 513,438 513,338 100
RETAINED EARNINGS.... 1,262,178 498,307 365,806 (1,062,917) 289,727 773,647
----------- ----------- ------------- ----------- ---------------- ------------ -----------
TOTAL STOCKHOLDERS'
EQUITY............. 1,269,678 1,011,945 365,906 1,712,363 2 810,867 3,549,027
LONG TERM DEBT....... 0 0 1,370,842 0 1,370,842
CURRENT LIABILITIES:
CURRENT PORTION LONG
TERM DEBT.......... 0 0 174,996 0 174,996
ACCOUNTS PAYABLE..... 195,505 2,990 41,520 6,518 246,534
GAS ACCOUNT.......... 320,845 320,845
OTHER ACCRUED
LIABILTIES......... 11,334 25,463 262,119 93,028 391,944
TAXES ACCRUED:....... 0
PSC GROSS RECEIPTS
TAX................ 2,308 2,308
FEDERAL INCOME TAX... 16,821 (4,180) 78,707 (10,669) 80,679
OTHER................ (37,730) 5,016 (28,680) (2,241) (63,635)
----------- ----------- ------------- ----------- ---------------- ------------ -----------
TOTAL CURRENT
LIABILITIES........ 509,082 29,289 528,662 86,636 0 0 1,153,670
DEFERRED INCOME
TAXES.............. 19,664 16,584 202,516 238,764
TOTAL CAPITALIZATION
& LIAB............. 1,798,424 1,057,818 2,265,411 2,001,516 2 810,867 6,312,303
----------- ----------- ------------- ----------- ---------------- ------------ -----------
----------- ----------- ------------- ----------- ---------------- ------------ -----------
</TABLE>
