File No. 69-197
Form U-3A-2
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C.
Statement by Holding Company Claiming Exemption Under Rule U-3A-2
from the Provisions of the Public Utility Holding Company Act of 1935.
GREEN MOUNTAIN POWER CORPORATION
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. This
annual statement is being filed in connection with the ownership by
Green Mountain Power Corporation (the Company) of (1) 17.9% of the
outstanding common stock of Vermont Yankee Nuclear Power Corporation
(Vermont Yankee) (see File No. 70-4435) and (2) 29.5% of the outstanding
common stock (Class B) and 30.0% of the outstanding preferred stock
(Class C) of Vermont Electric Power Company, Inc. (VELCO) (see
Application under Section 10 of the Public Utility Holding Company Act
of 1935 by the Company on Form U-1, File No. 70-4840, Administrative
Proceeding No. 3-2330, and Order of the Securities and Exchange
Commission, dated March 11, 1970, in connection therewith, and Holding
Company Act Release No. 16632). In addition, the Company has an
indirect ownership interest in Vermont Electric Transmission Company,
Inc. (VETCO), a wholly-owned subsidiary of VELCO.
The Company owns 100% of the outstanding common stock of Mountain
Energy, Inc., Green Mountain Propane Gas Company, Vermont Energy
Resources, Inc., GMP Real Estate Corporation, Lease-Elec, Inc. and Green
Mountain Resources, Inc. None of these companies are, at the present
time, a "public utility company" as defined in the Act.
In support of the Company's claim for exemption, the following
information is submitted.
1. Name, state of organization, location and nature of business of
claimant and every subsidiary thereof, other than any exempt wholesale
generator (EWG) or foreign utility company in which claimant directly or
indirectly holds an interest.
GREEN MOUNTAIN POWER CORPORATION
The Company was incorporated under the laws of the State of Vermont
on April 7, 1893, and has its principal executive office at 25 Green
Mountain Drive, South Burlington, Vermont.
The principal business of the Company is the generation and
purchase of electric energy and its transmission, distribution and sale
for light, power, heat and other purposes to approximately 82,100
customers as of December 31, 1996, in five service areas with an
estimated population of 200,000. The principal territory furnished with
electricity comprises an area of roughly twenty-five miles in width
extending ninety miles across north central Vermont between Lake
Champlain on the west and the Connecticut River on the east. Included
in this territory are the cities of Montpelier, Barre, South Burlington,
Vergennes and Winooski and the Village of Essex Junction, and a number
of smaller towns and communities. The Company also distributes
electricity in four noncontiguous areas located in southern and
southeastern Vermont that are interconnected with the Company's
principal service area through the transmission lines of VELCO and
others. Included in these areas are the communities of Vernon (where
the Vermont Yankee plant is located), Bellows Falls, White River
Junction, Wilder, Wilmington and Dover.
The Company supplies at wholesale a portion of the power
requirements of several municipalities and cooperatives in the State of
Vermont and one cooperative in the State of New Hampshire. The Company
interchanges economy and emergency power and energy with the New England
Power Pool ("NEPOOL").
The Company is the sole stockholder of Mountain Energy, Inc., Green
Mountain Propane Gas Company, GMP Real Estate Corporation and Lease-
Elec, Inc., all incorporated under the laws of the State of Vermont and
of Green Mountain Resources, Inc., incorporated under the laws of the
State of Delaware.
The primary business of Mountain Energy, Inc. (Mountain Energy) is
to invest in non-utility energy generation and efficiency projects.
Mountain Energy's principal office is at 35 Green Mountain Drive, South
Burlington, Vermont.
The business of Green Mountain Propane Gas Company (GMPG) is to
distribute propane gas to approximately 10,000 customers in Vermont and
New Hampshire. GMPG's principal office is at Main Street, Richmond,
Vermont.
The business of GMP Real Estate Corporation has consisted of the
construction, operation and lease to the Company of certain assets,
principally, the headquarters building for the Company in South
Burlington, Vermont, as well as two service centers in Bellows Falls and
Wilmington, Vermont. GMP Real Estate, however, has transferred the bulk
of the properties and the improvements thereon to a third party which,
in turn, has leased them to the Company. GMP Real Estate's principal
office is at 25 Green Mountain Drive, South Burlington, Vermont.
The business of Lease-Elec consists of the rental and sale of
electric thermal storage heat equipment. It is presently dormant and
does not have any material assets and its business, in the aggregate, is
not significant to the Company. The offices of Lease-Elec are located at
25 Green Mountain Drive, South Burlington, Vermont.
Green Mountain Resources, Inc. (GMRI) was formed in April 1996 to
explore opportunities in competitive retail energy markets. In 1996,
GMRI, together with subsidiaries of Hydro-Quebec, Consolidated Natural
Gas Corporation and Noverco, Inc. participated in the retail sales of
energy in pilot programs in New Hampshire and Massachusetts through
Green Mountain Energy Partners L.L.C. (GMEP), a Delaware limited
liability company formed in April 1996, with offices located at 25 Green
Mountain Drive, South Burlington, Vermont.
The State of New Hampshire has undertaken an experiment to provide
retail customer choice in the purchase of electricity. The New
Hampshire pilot program is one of the nation's first significant
attempts to test the viability of retail electric competition. GMEP has
been competing since May 1996 with approximately two dozen other
suppliers to serve 17,000 eligible customers. Service under the pilot
program began in June 1996 and is expected to continue until June 1998.
The Commonwealth of Massachusetts authorized Bay State Gas
Company's Pioneer Valley Customer Choice Residential Pilot Program (the
"Bay State Gas Pilot"), in which GMEP is participating. The Bay State
Gas Pilot permits the retail sale of natural gas to up to 10,000
eligible residential customers. Service under the Bay State Gas Pilot
began in November 1996 and is expected to continue until November 1998.
Mountain Energy, GMP Real Estate and Lease-Elec are not public
utilities and are not qualified to do business in any state other than
the State of Vermont. A Mountain Energy subsidiary that owns a general
partnership interest in the hydroelectric facility described above is
qualified to do business in California. Two other Mountain Energy
subsidiaries have financial interests in demand side management projects
and are qualified to do business in Hawaii and New Jersey, respectively.
GMPG is not a public utility and is qualified to do business in the
State of Vermont and the State of New Hampshire. Neither GMRI nor GMEP
are public utilities, and both are qualified to do business in the
States of Vermont, New Hampshire and Massachusetts.
VERMONT YANKEE NUCLEAR POWER CORPORATION
Vermont Yankee was incorporated in Vermont on August 4, 1966, and
has its principal office at Ferry Road, RD #5, Brattleboro, Vermont.
The business of Vermont Yankee is the ownership and operation of a
nuclear power plant at Vernon, Vermont, and the sale of electricity at
the plant to those New England utilities, including the Company, who are
its sponsoring stockholders.
VERMONT ELECTRIC POWER COMPANY, INC.
VELCO was incorporated under the laws of the State of Vermont on
December 28, 1956, and has its principal office at Pinnacle Ridge Road,
Rutland, Vermont.
VELCO provides transmission services for all of the electric
distribution utilities in the State of Vermont. VELCO is reimbursed for
its costs (as defined in the agreements relating thereto) for the
transmission of power which VELCO transmits for the electric
distribution utilities.
VELCO has agreements for single-unit power purchases which it
resells at its cost to various electric distribution utilities in the
State of Vermont.
VELCO is a participant with all of the major electric utilities in
New England in the NEPOOL, acting for itself and as agent for twenty-two
other electric utilities in Vermont, including the Company, whereby the
generating and transmission facilities of all of the participants are
coordinated on a New England-wide basis through a central dispatching
agency to assure their operation and maintenance in accordance with
proper standards of reliability, and to attain the maximum practicable
economy for all of the participants through the interchange of economy
and emergency power.
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
VETCO, a wholly-owned subsidiary of VELCO, was incorporated under
the laws of the State of Vermont on May 13, 1982, and has its principal
office at Pinnacle Ridge Road, Rutland, Vermont.
VETCO has entered into a Phase I Vermont Transmission Line Support
Agreement with the New England utilities listed in Attachment A thereto
dated as of December 1, 1981, and associated agreements relating to the
Vermont portion of a transmission line interconnecting the electric
systems in New England with the electric system of Hydro-Quebec. Phase
I of the interconnection consists of a +-450 KV HVDC transmission line
from the Des Cantons Substation on the Hydro-Quebec system near
Sherbrooke, Canada, to a converter terminal having a capacity of 690 MW
at the Comerford Generating Station in New Hampshire on the Connecticut
River. The transmission line and terminal were declared to be in
commercial operation on October 1, 1986. Hydro-Quebec built and
operates the Canadian portion of Phase I. VETCO constructed and
operates the portion of Phase I from the Canadian border through Vermont
to the New Hampshire border. The terminal facility is owned by a
subsidiary of the New England Electric System (NEES). Phase II of the
interconnection expanded the Phase I capability to 2,000 MW through the
extension of the +-450 KV HVDC transmission line from the Comerford
terminal in New Hampshire to a terminal facility located at the Sandy
Pond Substation in Massachusetts. Agreements relative to this second
phase have been executed by Hydro-Quebec, NEPOOL and various New England
utilities, including the Company.
VERMONT ENERGY RESOURCES, INC.
Vermont Energy Resources, Inc. was incorporated under the laws of
the State of Vermont on July 30, 1974, and has its principal office at
25 Green Mountain Drive, South Burlington, Vermont.
Vermont Energy Resources entered into an Agreement for Joint
Ownership, Construction and Operation of the J.C. McNeil Generating
Station, dated October 5, 1982, (the Joint Ownership Agreement) with the
City of Burlington Electric Department (BED), C.V. Realty, Inc. and
Vermont Public Power Supply Authority. The Joint Ownership Agreement
relates to the J.C. McNeil generating station, a 53-MW (nominal rating)
wood-fired electric generating station in Burlington, Vermont and
associated facilities (the Station). The Station began commercial
operation in June 1984. On January 10, 1984, Vermont Energy Resources
transferred its entire interest in the Station to the Company as
permitted by provisions of the Joint Ownership Agreement. Vermont
Energy Resources has no other business and conducts no operations at
this time.
MOUNTAIN ENERGY, INC.
Mountain Energy, Inc. was incorporated under the laws of the State
of Vermont on December 11, 1989, and has its principal office at 35
Green Mountain Drive, South Burlington, Vermont.
Mountain Energy indirectly owns interests in four electric
generating assets, various electric energy efficiency projects and no
transmission assets. In 1989, Mountain Energy made its first investment
by indirectly acquiring a 7.1% limited partnership interest in a new
71.9 MW wind powered generating facility being constructed northeast of
San Francisco, California. The first 20 MW of the facility became
operational in 1989, and the remaining 51.9 MW became operational in
1990. In 1992, Mountain Energy indirectly acquired a 50% limited
partnership interest in a 1.6 MW natural gas-fired cogeneration facility
operating near Chicago, Illinois. In 1993, Mountain Energy indirectly
acquired: (1) a 1% general partnership interest and 99% limited
partnership interest in a limited partnership that owns the right to 50%
of the revenues from a 1.4 MW hydroelectric facility that is operating
near Bakersfield, California; and (2) a 25.7% limited partnership
interest in a 50 MW wind powered generating facility that is operating
northeast of San Francisco. All of these generating facilities are
qualifying facilities, as defined by the Public Utility Regulatory
Policies Act.
Mountain Energy also has financial interests in various demand side
management projects in Hawaii, Maine, New York, Massachusetts and New
Jersey.
2. A brief description of the properties of claimant and each of
its subsidiary public utility companies used for the generation,
transmission and distribution of electric energy for sale, or for the
production, transmission and distribution of natural or manufactured
gas, indicating the location of principal generating plants,
transmission lines, producing fields, gas manufacturing plants and
electric and gas distribution facilities, including all such properties
which are outside the State in which claimant and its subsidiaries are
organized, and all transmission or pipelines which deliver or receive
electric energy or gas at the borders of such State, is detailed below.
GREEN MOUNTAIN POWER CORPORATION
The Company's properties are operated as a single system serving
five areas in Vermont which are interconnected by transmission lines of
VELCO. The Company owns and operates eight hydroelectric generating
stations with a total nameplate rating of 36.4 MW and an estimated
claimed capability of 35.7 MW, two gas turbine generating stations with
an aggregate nameplate rating of 63.0 MW and an aggregate claimed
capability of 73.2 MW and two diesel generating stations with a total
nameplate rating of 8.0 MW and an aggregate claimed capability of 8.6
MW.
The Company had, at December 31, 1996, approximately 1.5 miles of
115 KV transmission lines, 9.4 miles of 69 KV transmission lines, 5.4
miles of 44 KV transmission lines, and 265.4 miles of 34.5 KV
transmission lines. Its distribution system included about 2,384 miles
of overhead lines of 2.4 to 34.5 KV and 432 miles of underground cable
of 2.4 to 34.5 KV. At such date, the Company owned approximately
153,275 Kva of substation transformer capacity in transmission
substations and 446,050 Kva of substation transformer capacity in
distribution substations and 1,260,901 Kva of transformers for stepdown
from distribution to customer use. All of the foregoing properties of
the Company are located in the State of Vermont.
The Company's system is interconnected at locations within the
State of Vermont with the lines of out-of-state utilities in New
Hampshire and Massachusetts at thirteen points along the eastern and
southern borders of the State. The transmission lines of the Company
are interconnected at four points in northeastern Vermont with the
transmission lines of utilities in the State of New Hampshire.
The Company is a participant, with other New England utilities, in
three major electric generating stations pursuant to joint ownership
agreements. Under each such Agreement, the lead participant has
undertaken to construct and operate the plant for all participants. The
Company is not the lead participant in these plants. The plants and
locations and the amount of the Company's participation, are as follows:
A. Wyman #4, Yarmouth, Maine -- 1.1% (6.8 MW of a total 620
MW) -- lead participant is Central Maine Power Company;
B. Stony Brook #1, Ludlow, Massachusetts -- 8.8% (31.0 MW of
a total 352 MW) -- lead participant is Massachusetts
Municipal Wholesale Electric Company;
C. Joseph C. McNeil Generating Station, Burlington, Vermont
- -- 11% (5.8 MW of a total 53 MW) -- lead participant is
Burlington Electric Department.
The Company has acquired title to its percentage interests in the
Wyman, Stony Brook and McNeil projects. Wyman became operational in
1979; Stony Brook in December 1981; and McNeil in June 1984.
VERMONT YANKEE NUCLEAR POWER CORPORATION
Vermont Yankee constructed a nuclear-powered electric generating
plant with a nameplate capability of 540 MW. The plant is located on
the Connecticut River in Vernon, Vermont.
VERMONT ELECTRIC POWER COMPANY, INC.
VELCO has no generating facilities, but has approximately 483 pole
miles of transmission lines and twenty-five associated substations
located in the State of Vermont. VELCO's properties interconnect with
the lines of the New York Power Authority at the New York-Vermont state
line near Plattsburgh, New York; with the transmission facilities of
Niagara Mohawk Power Corporation at the New York-Vermont state line near
Whitehall, New York and North Troy, New York; with lines of New England
Power Company at or near the New Hampshire-Vermont state line at Wilder,
Vermont, and at Monroe, New Hampshire, near Claremont, New Hampshire,
and at the Massachusetts-Vermont state line near North Adams,
Massachusetts; with the lines of Public Service Company of New Hampshire
at or near the New Hampshire-Vermont state line at Littleton, New
Hampshire, Ascutney, Vermont and Vernon, Vermont; and with the lines of
Hydro-Quebec at the Quebec-Vermont border near Highgate, Vermont through
an AC/DC/AC converter and 7.6 miles of transmission line jointly owned
by several Vermont utilities. All of its transmission facilities are in
Vermont, except for approximately 4.3 pole miles of transmission lines
in New Hampshire.
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
VETCO does not own any generating or distribution facilities. It
is not contemplated that VETCO will acquire any generating facilities.
VETCO owns and operates the 52-mile Vermont portion of the transmission
interconnection with Hydro-Quebec.
VERMONT ENERGY RESOURCES, INC.
Vermont Energy Resources does not have any generating, transmission
or distribution facilities in place. Its only material asset was its
11% ownership interest (5.8 MW) in the 53EMW J. C. McNeil Generating
Station in Burlington, Vermont. This asset was transferred to the
Company on January 10, 1984.
MOUNTAIN ENERGY, INC.
Mountain Energy, Inc. does not have any generating, transmission or
distribution facilities in place. It has indirect interests in four
material assets used for the generation of electricity: its indirect
ownership of (1) a 7.1% limited partnership interest in a 71.9 MW
qualifying facility that uses wind turbines in California; (2) a 50%
limited partnership interest in a 1.6 MW qualifying facility that uses
natural gas in Illinois; (3) a 1% general partnership and 99% limited
partnership interest in a limited partnership that owns the right to 50%
of the revenues from a 1.4 MW qualifying facility that uses hydropower
in California; and (4) a 25.7% limited partnership interest in a 50 MW
qualifying facility that uses wind turbines in California.
3. Information for the last calendar year with respect to claimant
and each of its subsidiary public utility companies is as follows:
A. Number of kWh of electric energy sold (at retail or
wholesale), and Mcf of natural or manufactured gas
distributed at retail.
GREEN MOUNTAIN POWER CORPORATION
Year 1996
Electric 2,477,546,000
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1996
Electric: 3,798,790,000
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1996
Electric: 863,374,500
Gas: None
B. Number of kWh of electric energy and Mcf of natural or
manufactured gas distributed at retail outside the State
in which each such company is organized.
GREEN MOUNTAIN POWER CORPORATION
Year 1996
Electric: None
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1996
Electric: None
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1996
Electric: None
Gas: None
C. Number of kWh of electric energy and Mcf of natural or
manufactured gas sold at wholesale outside the State in
which each such company is organized, or at the State
line.
GREEN MOUNTAIN POWER CORPORATION
Year 1996
Electric: 637,194,200
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1996
Electric: 1,709,455,500
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1996
Electric: None
Gas: None
D. Number of kWh of electric energy and Mcf of natural or
manufactured gas purchased outside the State in which
each such company is organized, or at the State line.
GREEN MOUNTAIN POWER CORPORATION
Year 1996
Electric: 1,647,409,000
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1996
Electric: None
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1996
Electric: 614,230,690
Gas: None
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
and
VERMONT ENERGY RESOURCES, INC.
VETCO owns and operates a 52-mile transmission line as
part of the Phase I project. VETCO does not buy or sell
electric energy. VER transferred the J. C. McNeil
generation station to the Company before the station
became operational in 1984. Therefore, these companies
have not made any sales or purchases of electric energy
in 1996.
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.
None
B. Name of each system company that holds an interest in
such EWG or foreign utility company; and description of
the interest held.
None
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.
None
D. Capitalization and earnings of the EWG or foreign utility
company during the reporting period.
None
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).
None
EXHIBIT A
A consolidating statement of income and retained earnings of the
claimant and its subsidiary companies for the last calendar year,
together with a consolidating balance sheet of claimant and its
subsidiary companies as of the close of such calendar year are attached
hereto.
EXHIBIT B
Financial Data Schedule
1.Total Assets $324,539,435.00
2.Total Operating Revenues $179,008,691.00
3.Net Income $ 11,959,345.00
EXHIBIT C
An organizational chart showing the relationship of each EWG or
foreign utility company to associate companies in the holding-company
system.
Not applicable
File No. 69-197
SIGNATURE PAGE
The above-named claimant has caused this statement to be duly
executed on its behalf by its authorized officer on this 27th day of
February, 1997.
GREEN MOUNTAIN POWER CORPORATION
(name of claimant)
(Corporate Seal)
By: /s/C.L. Dutton
C.L. Dutton, Vice President,
Chief Financial Officer and
Treasurer
Attest:
/s/D.S. Laffan
D.S. Laffan
Corporate Secretary
Name, title and address of officer to whom notices and correspondence
concerning this statement should be addressed:
/s/R.J. Griffin
R.J. Griffin
Controller
Green Mountain Power Corporation
25 Green Mountain Drive
P.O. Box 850
South Burlington, VT 05402-0850
EXHIBIT A
VERMONT YANKEE NUCLEAR POWER CORPORATION
STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1996
Operating revenues $181,715,081
Operating expenses
Nuclear fuel expense 18,810,015
Other operation expense 76,389,994
Maintenance expense 33,216,181
Depreciation and amortization expense 14,703,068
Decommissioning expense 12,672,041
Taxes on income 2,029,786
Property and other taxes 9,188,834
---------------
Total operating expenses 167,009,919
---------------
Operating income 14,705,162
---------------
Other income and deductions
Net earnings on decommissioning trust 7,092,659
Decommissioning expense (7,092,659)
Interest 4,686,487
Allowance for equity funds used during construction 99,744
Taxes on other income (1,791,322)
Other, net (144,503)
---------------
Total other income and deductions 2,850,406
---------------
Income before interest expense 17,555,568
---------------
Interest expense
First mortgage bonds long-term debt 5,190,372
Other long-term debt 318,142
Interest on spent fuel disposal fee obligation 4,719,745
Other interest expense 688,940
Allowance for borrowed funds used during construction (347,104)
---------------
Total interest expense 10,570,095
---------------
Net income 6,985,473
Retained earnings at beginning of period 845,390
Dividends declared 6,130,553
---------------
Retained earnings at end of period $1,700,310
===============
Average number of common shares outstanding 392,481
Net income per avg share of common stock outstanding 17.80
Dividends per avg share of common stock outstanding 15.62
VERMONT YANKEE NUCLEAR POWER CORPORATION
BALANCE SHEET
DECEMBER 31, 1996
ASSETS
UTILITY PLANT
Electric plant, at cost $390,408,434
Less accumulated depreciation 238,116,288
---------------
152,292,146
Construction work in progress 0
---------------
Net electric plant 152,292,146
---------------
Nuclear fuel at cost:
Assemblies in reactor 64,988,800
Spent fuel 333,194,089
---------------
398,182,889
Less accumulated depreciation of nuclear fuel 370,845,821
---------------
Net nuclear fuel 27,337,068
---------------
Net utility plant 179,629,214
---------------
CURRENT ASSETS
Cash and cash equivalents 1,109,472
Accounts receivable from sponsors 12,254,737
Other accounts receivable 3,322,036
Materials and supplies, net of amortizaton 17,433,162
Prepaid expenses 4,467,827
---------------
Total current assets 38,587,234
---------------
DEFERRED CHARGES
Deferred decommissioning costs 45,434,155
Accumulated deferred income taxes 24,537,227
Deferred DOE enrichment site decontamination
and decommissioning fee 12,723,331
Deferred low-level radioactive waste facility expense 26,538,634
Net unamortized loss on reacquired debt 2,333,804
Other deferred charges 4,560,332
---------------
Total deferred charges 116,127,483
---------------
LONG-TERM FUNDS
Decommissioning trust 152,426,620
Spent fuel disposal fee defeasance trust 78,228,986
---------------
Total long-term funds 230,655,606
---------------
$564,999,537
===============
VERMONT YANKEE NUCLEAR POWER CORPORATION
BALANCE SHEET
DECEMBER 31, 1996
CAPITALIZATION AND LIABILITIES
CAPITALIZATION
COMMON STOCK, $100 par value
Authorized 400,100 shares, issued 400,014
shares of which 7,533 are held in Treasury 40,001,400
Additional paid-in capital 14,226,318
Treasury stock (7,533 shares at cost) (1,129,950)
Retained earnings 1,700,310
---------------
Total common stock equity 54,798,078
---------------
LONG-TERM OBLIGATIONS
First mortgage bonds Series I 6.480%, 2009 75,845,000
Eurodollar Agreement 4,182,424
---------------
Total long-term obligations 80,027,424
---------------
Total capitalization 134,825,502
---------------
Spent fuel disposal fee and accrued interest 93,733,251
CURRENT LIABILITIES
Accounts payable 2,570,700
Accrued expenses 15,977,565
Accrued low-level waste expenses 5,795,398
Accrued interest 1,498,974
Accrued taxes 1,404,431
Other accrued liabilities 4,124,424
Dividends declared 0
---------------
Total current liabilities 31,371,492
---------------
DEFERRED CREDITS
Accrued decommissioning costs 204,990,445
Accumulated deferred income taxes 46,390,590
Net regulatory tax liability 7,344,237
Accumulated deferred investment tax credit 5,509,391
Accrued DOE enrichment site decontamination
and decommissioning fee 10,683,247
Accrued low-level waste facility expenses 23,934,781
Accrued employee benefits 6,216,601
---------------
Total deferred credits 305,069,292
---------------
$564,999,537
===============
VERMONT ELECTRIC POWER COMPANY, INC.
STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1996
Operating revenues
Transmission service $16,031,323
Rent of transmission facilities to others 266,764
Sales to other utilities 32,029,131
---------------
Total operating revenues 48,327,218
---------------
Operating expenses
Purchased power 32,029,131
Transmission expenses:
Operation 1,396,978
Maintenance 1,440,765
Charges for transmission facilities of others 109,729
---------------
Total transmission expenses 2,947,472
Administrative and general expenses 5,053,965
Depreciation and amortization 4,009,477
Taxes other than income taxes 2,253,428
Income taxes (576,791)
---------------
Total operating expenses 45,716,682
---------------
Operating income 2,610,536
Other income
Interest 156,131
Amortization of investment tax credits 68,630
Equity in subsidiary earnings 667,000
---------------
Total other income 891,761
---------------
Operating and other income 3,502,297
---------------
Interest and other deductions
Interest on bonds 2,112,411
Interest on chattel notes 42,479
Other interest expense 171,858
Allowance for borrowed funds used during
construction - credit (94,168)
Amortization of debt expense 53,528
Other income deductions 560
---------------
Total interest and other deductions 2,286,668
Net income - common 548,630
Net income - preferred 667,000
---------------
Net income 1,215,630
Retained earnings at beginning of period-common 151,544
Retained earnings at beginning of period-preferred 78,802
---------------
Subtotal 1,445,976
Deduct dividends declared-common 540,000
Deduct dividends declared-preferred 700,000
---------------
Retained earnings at end of period-common 160,174
Retained earnings at end of period-preferred 45,803
---------------
Total retained earnings at end of period $205,977
===============
VERMONT ELECTRIC POWER COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1996
ASSETS
Utility plant, at original cost $96,034,114
Less accumulated depreciation and amortization 49,425,689
---------------
Net utility plant 46,608,425
Investment in subsidiary at equity 3,745,803
Current assets:
Cash 162,040
Bond sinking fund deposits 757,000
Bond interest deposits 397,229
Accounts receivable 17,988,517
Notes receivable from subsidiary
Materials and supplies, at average cost 1,623,772
Cash surrender value of life insurance 888,380
Other 274,435
Total current assets ---------------
22,091,373
Other assets:
Long-term receivable 0
Alternative minimum tax credits 721,841
Unamortized debt expense 182,969
Miscellaneous 714,320
---------------
Total other assets 1,619,130
---------------
$74,064,731
===============
VERMONT ELECTRIC POWER COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1996
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholders' investment
Common stock, $100 par value per share:
Class B $6,000,000
Retained earnings 160,174
---------------
Total common stock investment 6,160,174
---------------
Preferred stock, $100 par value per share
Class C 10,000,000
Return of capital (6,300,000)
Retained earnings 45,803
---------------
Total preferred stock investment 3,745,803
---------------
Total stockholders' investment 9,905,977
---------------
First mortgage bonds:
Series I, 8.75% due 2000 3,528,000
Series J, 5.71% due 2003 20,806,000
Series K, 7.45% due 2004 6,553,000
---------------
30,887,000
Less bonds to be retired within one year 3,918,000
---------------
26,969,000
---------------
Other secured debt:
BancBoston chattel notes 481,866
Less notes to be retired within one year 277,508
---------------
204,358
---------------
---------------
Total capitalization 37,079,335
---------------
Current liabilities
Current maturities of long-term obligations 4,195,508
Notes payable to bank 6,950,000
Accounts payable 17,794,194
Accrued interest on bonds 397,228
Accrued taxes 222,986
Other 111,778
---------------
Total current liabilities 29,671,694
---------------
Regulatory liability 2,615,327
Deferred income taxes 942,162
Unamortized investment tax credits 723,672
Deferred compensation 2,547,526
Pensions and benefits 485,015
---------------
$74,064,731
===============
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1996
Operating revenues
Phase I support charges $5,712,181
Rental income 4,710
---------------
Total operating revenues 5,716,891
Operating expenses
Transmission expenses
Operations 19,246
Maintenance 200,700
---------------
Total transmission expenses 219,946
Administrative and general expenses 160,166
Depreciation and amortization 2,440,049
Taxes other than income taxes 548,032
Income taxes 500,999
---------------
Total operating expenses 3,869,192
---------------
Operating income 1,847,699
Other income
Interest 1,620
Amortization of investment tax credits 126,809
---------------
Total other income 128,429
---------------
Total operating and other income 1,976,128
---------------
Interest and other deductions:
Interest on long-term secured notes 1,156,606
Interest on debt to associated companies 19,478
Other interest expense 101,499
Amortization of debt expense 31,546
---------------
Total interest and other dedutions 1,309,129
Net income 667,000
Retained earnings at beginning of period 78,802
---------------
745,802
Deduct dividends declared 700,000
---------------
Retained earnings at end of period $45,802
===============
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1996
ASSETS
Utility plant, at original cost $47,776,583
Less accumulated depreciation and amortization 25,097,563
---------------
Net utility plant 22,679,020
Current assets
Cash 83,775
Accounts receivable-associated 3,312
Materials and supplies at average cost 102,517
Prepaid insurance 3,683
Other 697
---------------
Total current assets 193,984
Unamortized debt expense 107,401
Alternative minimum tax credits 680,953
---------------
Total assets $23,661,358
===============
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1996
CAPITALIZATION AND LIABILITIES
Capitalization:
Stockholders' equity:
Common stock, $100 par value per share $1,000
Miscellaneous paid-in-capital 3,699,000
Retained earnings 45,803
---------------
Total common stock equity 3,745,803
---------------
Long-term secured notes, 8.48% due 2006 12,580,000
Less notes to be retired within one year 2,060,000
---------------
10,520,000
---------------
Total capitalization 14,265,803
Current liabilities
Notes to be retired within one year 2,060,000
Notes payable-bank 2,150,000
Accounts payable - associated 31,457
Accounts payable - nonassociated 112,695
Accrued interest on notes 41,919
Accrued taxes 99,891
---------------
Total current liabilities 4,495,962
Regulatory liability 593,796
Deferred income taxes 3,116,016
Deferred investment tax credits 1,189,781
---------------
Total capitalization and liabilities $23,661,358
===============
<TABLE>
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1996
<CAPTION>
GMPC VER Total Eliminations Consolidated
<S> <C> <C> <C> <C> <C>
Operating Revenues $179,008,691 $0 $179,008,691 $0 $179,008,691
-------------------------------------------------------------------------
Operating Expenses
Power Supply 0
VY Nuclear Power Corporation 30,595,723 30,595,723 30,595,723
Company-owned generation 3,329,727 3,329,727 3,329,727
Purchases from others 66,320,487 66,320,487 66,320,487
Other operating 17,615,438 17,615,438 17,615,438
Transmission 10,832,623 10,832,623 10,832,623
Maintenance 4,462,729 4,462,729 4,462,729
Depreciation & amortizaton 16,280,406 16,280,406 16,280,406
Taxes other than income 6,981,964 6,981,964 6,981,964
Income taxes 6,462,592 6,462,592 6,462,592
-------------------------------------------------------------------------
Total operating expenses 162,881,689 0 162,881,689 0 162,881,689
-------------------------------------------------------------------------
Operating income 16,127,002 0 16,127,002 0 16,127,002
-------------------------------------------------------------------------
Other Income
Equity in earnings of affiliates and non-utility opera 2,500,982 2,500,982 379,350 2,880,332
Allowance for equity funds used during construction 175,071 175,071 175,071
Other income and deductions, net 554,127 554,127 (379,350) 174,777
-------------------------------------------------------------------------
Total other income 3,230,180 0 3,230,180 0 3,230,180
-------------------------------------------------------------------------
Income before interest charges 19,357,182 0 19,357,182 0 19,357,182
-------------------------------------------------------------------------
Interest Charges
Long-term debt 6,872,266 6,872,266 6,872,266
Other 993,722 993,722 993,722
Allowance for borrowed funds used during construction (468,151) (468,151) (468,151)
-------------------------------------------------------------------------
Total interest charges 7,397,837 0 7,397,837 0 7,397,837
-------------------------------------------------------------------------
Net Income 11,959,345 0 11,959,345 0 11,959,345
Dividends on preferred stock 1,010,809 1,010,809 1,010,809
-------------------------------------------------------------------------
Net Income Applicable to Common Stock $10,948,536 $0 $10,948,536 $0 $10,948,536
=========================================================================
</TABLE>
<TABLE>
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1996
<CAPTION>
GMPC VER Total Eliminations Consolidated
<S> <C> <C> <C> <C> <C>
Balance - January 1,1996 $26,414,350 ($1,897) $26,412,453 $0 $26,412,453
Net income 11,959,345 0 11,959,345 11,959,345
-------------------------------------------------------------------------
Total 38,373,695 (1,897) 38,371,798 0 38,371,798
Charges:
Dividends on Capital Stock
Preferred - 4.75% Class B,$4.75 per share 14,071 14,071 14,071
-7% Class C,$7 per share 34,913 34,913 34,913
-9 3/8% Class D,Series 1,$9.375 per share 101,250 101,250 101,250
-8 5/8% Class D,Series 3,$8.625 per share 543,375 543,375 543,375
-7.32% Class D, Series 1, $7.32 per share 317,200 317,200 317,200
Common 10,444,955 10,444,955 10,444,955
Other 0 0
-------------------------------------------------------------------------
Total 11,455,764 0 11,455,764 0 11,455,764
-------------------------------------------------------------------------
Balance - December 31, 1996 $26,917,931 ($1,897) $26,916,034 $0 $26,916,034
=========================================================================
</TABLE>
<TABLE>
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1996
<CAPTION>
GMPC VER Total Eliminations Consolidated
ASSETS
ELECTRIC UTILITY
<S> <C> <C> <C> <C> <C>
Utility Plant
Utility plant, at original cost $248,134,049 $541 $248,134,590 $248,134,590
Less accumulated depreciation 81,285,776 81,285,776 81,285,776
-------------------------------------------------------------------------
Net utility plant 166,848,273 541 166,848,814 0 166,848,814
Property under capital lease 9,006,246 9,006,246 9,006,246
Construction work in progress 13,997,633 13,997,633 13,997,633
-------------------------------------------------------------------------
Total utility plant, net 189,852,152 541 189,852,693 0 189,852,693
-------------------------------------------------------------------------
Other Investments
Associated companies, at equity
Vermont Electric Power Company 2,952,322 2,952,322 2,952,322
VY Nuclear Power Corporation 9,768,222 9,768,222 9,768,222
Other 30,040,482 30,040,482 (22,126,991) 7,913,491
-------------------------------------------------------------------------
Total other investments 42,761,026 0 42,761,026 (22,126,991) 20,634,035
-------------------------------------------------------------------------
Current Assets
Cash 238,210 238,210 238,210
Special deposits 210 210 210
Accounts receivable,customers & others, 0
less allowance for doubtful accounts 17,733,085 57 17,733,142 17,733,142
Accrued utility revenues 6,661,778 6,661,778 6,661,778
Fuel,materials & and supplies at average cost 3,620,747 3,620,747 3,620,747
Prepayments 2,206,368 2,206,368 2,206,368
Other 440,280 440,280 440,280
-------------------------------------------------------------------------
Total current assets 30,900,678 57 30,900,735 0 30,900,735
-------------------------------------------------------------------------
Deferred Charges and Other 43,224,348 43,224,348 43,224,348
NON UTILITY
Cash and Cash Equivalents 510,839 510,839 510,839
Other Current Assets 5,774,782 5,774,782 (1,795,564) 3,979,218
Property and Equipment 11,225,656 11,225,656 11,225,656
Intangible Assets 2,555,310 2,555,310 2,555,310
Other Assets 20,881,417 20,881,417 775,184 21,656,601
-------------------------------------------------------------------------
40,948,004 0 40,948,004 (1,020,380) 39,927,624
-------------------------------------------------------------------------
TOTAL ASSETS $347,686,208 $598 $347,686,806 ($23,147,371) $324,539,435
=========================================================================
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1996
GMPC VER Total Eliminations Consolidated
CAPITALIZATION AND LIABILITIES
ELECTRIC UTILITY
Capitalization
Common Stock Equity
Common stock $16,789,951 $500 16,790,451 $16,790,451
Additional paid-in capital 68,225,658 68,225,658 68,225,658
Retained earnings 26,917,931 (1,897) 26,916,034 26,916,034
Reacquired capital stock (378,461) (378,461) (378,461)
-------------------------------------------------------------------------
Total common stock equity 111,555,079 (1,397) 111,553,682 0 111,553,682
-------------------------------------------------------------------------
Redeemable cumulative preferred stock 19,310,000 19,310,000 19,310,000
Long-term debt, less current maturities 94,900,000 94,900,000 94,900,000
-------------------------------------------------------------------------
Total capitalization 225,765,079 (1,397) 225,763,682 0 225,763,682
-------------------------------------------------------------------------
Capital lease obligation 9,006,246 9,006,246 9,006,246
-------------------------------------------------------------------------
Current Liabilities
Current maturities of long-term debt 3,034,000 3,034,000 3,034,000
Short-term debt 1,015,670 1,015,670 1,015,670
Accounts payable, trade 6,137,746 1,995 6,139,741 6,139,741
Accounts payable to associated companies 2,584,328 2,584,328 4,036,872 6,621,200
Dividends declared 381,320 381,320 381,320
Customer deposits 689,364 689,364 689,364
Taxes accrued 985,856 985,856 985,856
Interest accrued 1,381,702 1,381,702 1,381,702
Other 788,163 788,163 788,163
-------------------------------------------------------------------------
Total current liabilities 16,998,149 1,995 17,000,144 4,036,872 21,037,016
-------------------------------------------------------------------------
Deferred Credits
Accumulated deferred income taxes 26,725,551 26,725,551 26,725,551
Unamortized investment tax credits 4,824,893 4,824,893 4,824,893
Other 23,418,286 23,418,286 23,418,286
-------------------------------------------------------------------------
Total deferred credits 54,968,730 0 54,968,730 0 54,968,730
-------------------------------------------------------------------------
NON UTILITY
Current liabilities 6,117,403 6,117,403 (4,365,130) 1,752,273
Other liabilities 13,678,248 13,678,248 (1,666,760) 12,011,488
Stockholders' equity 21,152,353 21,152,353 (21,152,353) 0
-------------------------------------------------------------------------
40,948,004 0 40,948,004 (27,184,243) 13,763,761
-------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $347,686,208 $598 $347,686,806 ($23,147,371) $324,539,435
=========================================================================
</TABLE>
GREEN MOUNTAIN PROPANE GAS COMPANY CONFIDENTIAL
INCOME STATEMENT TREATMENT
FOR THE YEAR ENDED DECEMBER 31, 1996
REVENUE
Residential propane revenue
Commercial propane revenue
Transport propane revenue
Wholesale propane revenue
Other petroleum products 37,067
Service work 922,753
Meter service fees 21,206
Rental space and water heating 191,167
---------------
Total revenue
---------------
COST OF SALES
Propane product
Cost of sales - service work 586,954
Cost of sales - service freight 2,268
Subcontractors - contract work 105,502
Petroleum distillates 36,979
Labor capitalized (51,580)
Sales discounts and allowances 25,279
---------------
Total cost of sales
---------------
Gross profit 3,701,635
---------------
OPERATING EXPENSES
Salaries and wages
Employee insurance benefits
Other employee benefits
Retirement expenses
Payroll taxes
Uniforms
Bad debt expenses
Advertising
Sales promotion
Bank charges
Outside services
Donations
Postage
Insurance - G/L and property
Insurance - vehicle
Insurance - worker's comp
Legal and accounting
Dues and subscriptions
Office expense
Recruiting
Rents
Repairs and maintenence - tanks
Repairs and maintenence - other
Tools and supplies
Taxes
Penalties
Telephone
Training
Travel and mileage reimbursement
Entertainment - meals
Utilities
Bulk truck maintenance
Other vehicle maintenance
Vehicle expense - fuel
Vehicle fuel - service and other
Meetings and registration fees
Total operating expenses
Earnings before depreciation and depreciation
Depreciation
Amortization
Total depreciation and amortization
Earnings before other (income) expense
Other (income) expense
Interest income
Interest expense
Other (income) expense
Loss (gain) on disposal of asset
Total other (income) expense
Income before parent charges
Parent company charges
Parent allocation
Total parent charges/allocation
Income before income taxes
Income taxes
Net income (loss)
GREEN MOUNTAIN PROPANE GAS COMPANY CONFIDENTIAL
BALANCE SHEET TREATMENT
DECEMBER 31, 1996
ASSETS
Current Assets
Cash $166,004
Accounts receivable 1,049,174
Accrued income taxes 273,635
Inventory 1,028,575
Prepaid expenses 105,677
---------------
Total current assets 2,623,065
---------------
Property and equipment
Accumulated depreciation
Total Property and equipment
Intangible Assets
Goodwill
Customer list White River Junction
Customer list Newport
Non compete covenant
Non compete covenant WRJ
Loan origination fee
Organization costs
Development costs
Accumulated amortization
Total intangible assets
Other assets
Computer advances 6,173
Non-compete receivable 20,000
Total financed sales 119,845
Work in process 10,000
---------------
Total other assets 156,018
---------------
Total assets
GREEN MOUNTAIN PROPANE GAS COMPANY CONFIDENTIAL
BALANCE SHEET TREATMENT
DECEMBER 31, 1996
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
Due to GMP 792,367
Pre-sold LP contracts 189,483
Budget/fixed price pmt plans 107,943
Payroll taxes payable 2,713
Taxes other payable 89,553
Sales tax payable 13,593
Credit line -- State street 275,000
Accrued expenses 69,990
---------------
Total current liabilities
---------------
Total unearned interest
Note payable State Street
Deferred income Non-compete
Deferred taxes 1,526,990
---------------
Total liabilities
---------------
Stockholders' equity
Common stock
Additional paid in capital
Retained earnings
Net income (loss)
Total stockholders' equity
Total liabilities and stockholders' equity
GREEN MOUNTAIN PROPANE GAS COMPANY CONFIDENTIAL
STATEMENT OF RETAINED EARNINGS TREATMENT
FOR THE YEAR ENDED DECEMBER 31, 1996
Balance January 1, 1996
Net income
Balance December 31, 1996
LEASE-ELEC, INC.
INCOME STATEMENT AND STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1996
Operating revenues
Rentals - electric storage heaters $0
---------------
Operating expenses
Accounting services 0
General and administrative salaries 0
Payroll taxes 0
Telephone expenses 0
Maintenance of rental properties 0
Depreciation of rental properties 0
Office supplies expense 0
Property tax expense 0
Late fee - property tax 0
Insurance expense 0
---------------
Total operating expenses 0
---------------
Net operating income 0
---------------
Other income
Gain on sale of rental property 0
Miscellaneous income - late charges 0
Loss on sale of rental property 0
Miscellaneous income - automobile 0
---------------
Total other income 0
---------------
Net income before taxes 0
Vermont state income tax expense 0
Provision for current income taxes 0
Provision for deferred income taxes 0
---------------
Total provision for income taxes 0
---------------
Net income 0
Retained earnings at beginning of period (143,245)
---------------
Retained earnings at end of period ($143,245)
===============
LEASE-ELEC, INC.
BALANCE SHEET
DECEMBER 31, 1996
ASSETS
Current assets
Accounts receivable - GMPC - tax benefits $137,371
---------------
Total current assets 137,371
---------------
Total assets $137,371
===============
LEASE-ELEC, INC.
BALANCE SHEET
DECEMBER 31, 1996
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Accumulated deferred income taxes $30,116
---------------
Total liabilities 30,116
---------------
Stockholders' equity
Common stock 250,500
Retained earnings (143,245)
---------------
Total stockholders' equity 107,255
---------------
Total liabilities and stockholders' equity $137,371
===============
GMP REAL ESTATE CORPORATION
INCOME STATEMENT AND STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1996
Revenues
Revenue - lease $212,601
Revenue - Interest 663
---------------
Total revenues 213,264
---------------
Expenses
Interest expense 178,912
Income taxes - federal 937
Income taxes - state 248
Property tax expense 0
Depreciation 23,774
Salaries and wages 196
General administrative expense 15
Miscellaneous expenses 0
---------------
Total expenses 204,082
---------------
Net income 9,182
Retained earnings at beginning of period (20,589)
---------------
Retained earnings at end of period ($11,407)
===============
GMP REAL ESTATE CORPORATION
BALANCE SHEET
DECEMBER 31, 1996
ASSETS
Cash $6,849
Rent receivable 529,742
Land - headquarters 117,896
Land - Wilmington 32,179
Land - Bellows Falls 46,290
Land - 35 Green Mountain Drive 101,412
Building - 35 Green Mountain Drive 729,962
Building - Biron estate Montpelier 37,911
Land - Biron estate Montpelier 138,451
Organization costs 403
Income tax benefits receivable 62,085
---------------
Total assets $1,803,180
===============
GMP REAL ESTATE CORPORATION
BALANCE SHEET
DECEMBER 31, 1996
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $84,775
Accrued interest payable 46,138
Deferred income taxes 16,414
Notes payable #2 1,486,260
Notes payable #4 180,500
Common stock (5 shares, no par) 500
Retained earnings (11,407)
---------------
Total liabilities and shareholders' equity $1,803,180
===============
MOUNTAIN ENERGY, INC.
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 1996
Revenues
Undistributed income in subsidiaries $1,630,930
Other income 95,061
Interest income due from GMP (58,983)
Interest income Notes 1,169,868
Interest income Bank 11,452
---------------
Net revenues 2,848,328
---------------
Labor expenses
Employee compensation 267,961
Payroll taxes 21,656
Contract labor 48,808
Professional fees - due from GMP (31,714)
---------------
Total labor expenses 306,711
---------------
Benefits expenses
Group medical claims 13,223
Group medical admin 1,264
Group life insurance 703
Group disability insurance expense 1,401
Workers' comp insurance expense 700
Postretirement health care expense 6,000
Pension expense 6,020
401(k) expense 6,886
---------------
Total benefits expenses 36,197
---------------
Other operating expenses
Telephone 3,627
Repairs and maintenance 297
Office supplies 2,818
Furniture and office equipment expense 666
Postage and freight 1,497
Legal and professional fees 59,674
Contract and Proj expense 7,087
Membership dues and licenses 1,265
Subscription & library fees 4,728
Corporate franchise fees 250
Education and seminars 1,249
Travel and lodging 18,728
Meals 904
Bank charges 316
Contributions 135
Interest expense 153,644
Miscellaneous 2,173
Depreciation 9,717
Amortization - intangibles 458
Amortization - loan origination costs 3,000
Parent payroll allocation 6,945
Parent overhead allocation 106,449
---------------
Total other operating expenses 385,627
---------------
Total expenses 728,535
---------------
Income before taxes 2,119,793
---------------
State income tax expense 193,858
Federal income tax expense 654,852
Income tax ITC amortization (45,416)
---------------
Net income 1,316,499
---------------
Retained earnings at beginning of period 1,881,258
---------------
Retained earnings at end of period $3,197,757
===============
MOUNTAIN ENERGY, INC.
BALANCE SHEET
DECEMBER 31, 1996
ASSETS
Current assets
Cash $337,986
Accounts receivable 37,807
GMP receivable 1,265,822
Cegali receivable - agreement 201,644
Cegali receivable - guaranty 22,594
Notes receivable 400,000
Interest receivable-notes 863
Prepaid state taxes 14,640
---------------
Total current assets 2,281,356
---------------
Fixed assets
Partnership interests 12,685,162
Equity in earnings of subsidiaries 5,171,843
Partnership distributions (4,913,503)
Furniture and office equipment - net 36,513
Leasehold improvements - net 3,773
---------------
Total fixed assets 12,983,788
---------------
Other assets
Prepaid AMT 2,563,615
Notes receivable 4,747,326
Interest receivable - notes 175,872
Intangible assets - net 11,415
---------------
Total other assets 7,498,228
---------------
Total assets $22,763,372
===============
MOUNTAIN ENERGY, INC.
BALANCE SHEET
DECEMBER 31, 1996
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
GMP payable 2,325,677
Payroll/payroll taxes payable 487
Benefits payable 1,155
Accounts payable 16,417
Accrued interest payable-note 36,877
Income tax true-ups (federal and state) 230,386
---------------
Total current liabilities 2,610,999
---------------
Long-term liabilities
Notes payable 1,749,103
Deferred ITC 156,382
Deferred federal taxes 5,324,682
Deferred state taxes 228,893
Benefits reserves 53,039
Deferred compensation (9,980)
---------------
Total long-term liabilities 7,502,119
---------------
Total liabilities 10,113,118
---------------
Equity
Common stock 16,352,497
Return of capital (6,900,000)
Retained earnings 1,881,258
Net income 1,316,499
---------------
Total equity 12,650,254
---------------
Total liabilities and equity $22,763,372
===============
GREEN MOUNTAIN RESOURCES INC. CONFIDENTIAL
INCOME STATEMENT AND STATEMENT OF RETAINED EARNINGS TREATMENT
FOR THE YEAR ENDED DECEMBER 31, 1996
Revenues
Undistributed earnings--NH
Undistributed earnings--Mass Electric
Undistributed earnings--Bay State
Total revenues
Expenses
Legal/accounting/other
Billing support services
Transportation
Parent company charges
Materials and other
Amortization
Income tax expense
Total expenses
Net income
Retained earnings at beginning of period
Retained earnings at end of period
GREEN MOUNTAIN RESOURCES, INC. CONFIDENTIAL
BALANCE SHEET TREATMENT
DECEMBER 31, 1996
ASSETS
Current Assets
Accounts Receivable--NH
Accounts Receivable--Mass Electric
Accounts Receivable--Bay State
Total current assets
Property and Equipment
Legal Startup
Market research
Trademark
Accumulated amortization
Total property and equipment
Other assets
Investment in NH
Undistributed earnings--NH
Investment in Mass Electric
Undistributed earnings--Mass Electric
Investment in Bay State
Undistributed earnings-- Bay State
Total other assets
Total Assets
LIABILITIES AND CAPITAL
Current liabilities
Due to GMP
Total current liabilities
Capital
Common stock
Capital--NH
Capital--Mass Electric
Capital--Bay State
Retained earnings
Total capital
Total liabilities and capital
<TABLE> <S> <C>
<ARTICLE> OPUR3
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheet as of December 31, 1996 and the related
consolidated statement of income for the year ended December 31, 1996
and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1996
<PERIOD-END> DEC-31-1996
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 324,539,435
<TOTAL-OPERATING-REVENUES> 179,008,691
<NET-INCOME> 11,959,345
</TABLE>
