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. In addition, the Company has an indirect
ownership interest in Green Mountain Energy Resources, LLC, which
interest is owned by 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 to supply electrical
energy in the State of Vermont in a territory with approximately one
quarter of the State's population. The Company serves approximately
83,200 customers. 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 energy and wastewater
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. In August 1997, GMRI,
together with members of the Sam Wyly family, participated in retail
sales of energy in various states in the United States through Green
Mountain Energy Resources, LLC, with offices located at 55 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 participated until November 1997.
The Bay State Gas Pilot permitted the retail sale of natural gas to up
to 10,000 eligible residential customers.
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 a hydroelectric facility 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. In addition, a
Mountain Energy subsidiary owns a majority interest in a company
specializing in wastewater treatment technology. 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 three 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 which it sold in June 1997. 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, New York, 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 an estimated claimed capability of 35.6 MW, two gas
turbine generating stations with an aggregate claimed capability of 72.7
MW and two diesel generating stations with an aggregate claimed
capability of 8.4 MW.
The Company had, at December 31, 1997, 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 2,399 miles
of overhead lines of 2.4 to 34.5 KV and 445 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 1,070,604 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 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 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 53 MW 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 ownership interests
in three 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 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 (3) 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 1997
Electric 2,395,105,200
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1997
Electric: 4,266,866,000
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1997
Electric: 991,200,940
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 1997
Electric: None
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1997
Electric: None
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1997
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 1997
Electric: 579,267,600
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1997
Electric: 1,920,089,700
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1997
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 1997
Electric: 1,454,523,000
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1997
Electric: None
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1997
Electric: 726,800,260
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 1997.
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
Item No. Caption Heading
1. Total Assets $325,732,811.00
2. Total Operating Revenues $179,322,785.00
3. Net Income $9,438,371.00
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 25th day of
February, 1998.
GREEN MOUNTAIN POWER CORPORATION
(name of claimant)
(Corporate Seal)
By: /s/E.M. Norse
E.M. Norse, 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, 1997
Operating revenues $173,105,748
Operating expenses
Nuclear fuel expense 19,231,772
Other operation expense 83,360,267
Maintenance expense 17,161,654
Depreciation and amortization expense 15,889,413
Decommissioning expense 12,581,697
Taxes on income 1,761,743
Property and other taxes 9,158,589
---------------
Total operating expenses 159,145,135
---------------
Operating income 13,960,613
---------------
Other income and deductions
Net earnings on decommissioning trust 8,228,721
Decommissioning expense (8,228,721)
Interest 5,491,608
Allowance for equity funds used during construction 60,423
Taxes on other income (1,760,504)
Other, net (223,784)
---------------
Total other income and deductions 3,567,743
---------------
Income before interest expense 17,528,356
---------------
Interest expense
First mortgage bonds long-term debt 5,135,203
Other long-term debt 584,770
Interest on spent fuel disposal fee obligation 4,984,606
Other interest expense 189,957
Allowance for borrowed funds used during construction (200,105)
---------------
Total interest expense 10,694,431
---------------
Net income 6,833,925
Retained earnings at beginning of period 1,700,310
Dividends declared 7,343,319
---------------
Retained earnings at end of period $1,190,916
===============
Average number of common shares outstanding 392,481
Net income per avg share of common stock outstanding 17.41
Dividends per avg share of common stock outstanding 18.71
VERMONT YANKEE NUCLEAR POWER CORPORATION
BALANCE SHEET
DECEMBER 31, 1997
ASSETS
UTILITY PLANT
Electric plant, at cost $392,593,247
Less accumulated depreciation 253,229,408
---------------
139,363,839
Construction work in progress 2,690,964
---------------
Net electric plant 142,054,803
---------------
Nuclear fuel at cost:
Assemblies in reactor 64,988,800
Fuel in process 21,400,777
Spent fuel 333,194,089
---------------
419,583,666
Less accumulated depreciation of nuclear fuel 385,561,530
---------------
Net nuclear fuel 34,022,136
---------------
Net utility plant 176,076,939
---------------
CURRENT ASSETS
Cash and cash equivalents 4,134,723
Accounts receivable from sponsors 15,027,577
Other accounts receivable 2,778,046
Materials and supplies, net of amortizaton 16,795,691
Prepaid expenses 4,369,815
---------------
Total current assets 43,105,852
---------------
DEFERRED CHARGES
Deferred decommissioning costs 51,473,768
Accumulated deferred income taxes 25,184,441
Deferred DOE enrichment site decontamination
and decommissioning fee 11,362,495
Deferred low-level radioactive waste facility expense 26,538,634
Net unamortized loss on reacquired debt 2,151,944
Other deferred charges 11,044,829
---------------
Total deferred charges 127,756,111
---------------
LONG-TERM FUNDS
Decommissioning trust 171,576,049
Spent fuel disposal fee defeasance trust 91,509,363
---------------
Total long-term funds 263,085,412
---------------
$610,024,314
===============
VERMONT YANKEE NUCLEAR POWER CORPORATION
BALANCE SHEET
DECEMBER 31, 1997
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 1,190,916
---------------
Total common stock equity 54,288,684
---------------
LONG-TERM OBLIGATIONS
First mortgage bonds Series I 6.480%, 2009 75,845,000
Eurodollar Agreement 17,911,550
---------------
Total long-term obligations 93,756,550
---------------
Total capitalization 148,045,234
---------------
Spent fuel disposal fee and accrued interest 98,717,858
CURRENT LIABILITIES
Accounts payable 2,052,922
Accrued expenses 18,928,378
Accrued low-level waste expenses 3,683,760
Accrued interest 1,641,841
Accrued taxes 2,017,259
Other accrued liabilities 5,814,057
Dividends declared 0
---------------
Total current liabilities 34,138,217
---------------
DEFERRED CREDITS
Accrued decommissioning costs 231,840,477
Accumulated deferred income taxes 47,000,844
Net regulatory tax liability 5,355,340
Accumulated deferred investment tax credit 4,975,701
Accrued DOE enrichment site decontamination
and decommissioning fee 9,324,853
Accrued low-level waste facility expenses 23,934,781
Accrued employee benefits 6,691,009
---------------
Total deferred credits 329,123,005
---------------
$610,024,314
===============
VERMONT ELECTRIC POWER COMPANY, INC.
STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
Operating revenues
Transmission service $18,204,194
Rent of transmission facilities to others 276,874
Sales to other utilities 32,665,626
---------------
Total operating revenues 51,146,694
---------------
Operating expenses
Purchased power 32,665,626
Transmission expenses:
Operation 2,474,403
Maintenance 1,573,613
Charges for transmission facilities of others 108,573
---------------
Total transmission expenses 4,156,589
Administrative and general expenses 5,481,964
Depreciation and amortization 4,283,063
Taxes other than income taxes 2,314,316
Income taxes (527,411)
---------------
Total operating expenses 48,374,147
---------------
Operating income 2,772,547
Other income
Interest 81,202
Amortization of investment tax credits 80,992
Equity in subsidiary earnings 652,116
---------------
Total other income 814,310
---------------
Operating and other income 3,586,857
---------------
Interest and other deductions
Interest on bonds 1,862,627
Interest on chattel notes 44,927
Other interest expense 478,107
Allowance for borrowed funds used during
construction - credit (59,546)
Amortization of debt expense 47,634
Other income deductions 0
---------------
Total interest and other deductions 2,373,749
Net income - common 560,992
Net income - preferred 652,115
---------------
Net income 1,213,107
Retained earnings at beginning of period-common 160,174
Retained earnings at beginning of period-preferred 45,803
---------------
Subtotal 1,419,084
Deduct dividends declared-common 540,000
Deduct dividends declared-preferred 675,000
---------------
Retained earnings at end of period-common 181,166
Retained earnings at end of period-preferred 22,918
---------------
Total retained earnings at end of period $204,084
===============
VERMONT ELECTRIC POWER COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1997
ASSETS
Utility plant, at original cost $96,918,888
Less accumulated depreciation and amortization 52,841,626
---------------
Net utility plant 44,077,262
Investment in subsidiary at equity 3,222,918
Current assets:
Cash 189,727
Bond sinking fund deposits 809,667
Bond interest deposits 344,469
Accounts receivable 17,769,276
Materials and supplies, at average cost 1,699,488
Cash surrender value of life insurance 1,133,273
Other 322,358
Total current assets ---------------
22,268,258
Other assets:
Alternative minimum tax credits 643,222
Unamortized debt expense 138,335
Miscellaneous 216,296
---------------
Total other assets 997,853
---------------
$70,566,291
===============
VERMONT ELECTRIC POWER COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1997
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholders' investment
Common stock, $100 par value per share:
Class B $6,000,000
Retained earnings 181,166
---------------
Total common stock investment 6,181,166
---------------
Preferred stock, $100 par value per share
Class C 10,000,000
Return of capital (6,800,000)
Retained earnings 22,918
---------------
Total preferred stock investment 3,222,918
---------------
Total stockholders' investment 9,404,084
---------------
First mortgage bonds:
Series I, 8.75% due 2000 2,755,000
Series J, 5.71% due 2003 18,311,000
Series K, 7.45% due 2004 5,903,000
---------------
26,969,000
Less bonds to be retired within one year 4,181,000
---------------
22,788,000
---------------
Other secured debt:
BancBoston chattel notes 797,840
Less notes to be retired within one year 231,689
---------------
566,151
---------------
---------------
Total capitalization 32,758,235
---------------
Current liabilities
Current maturities of long-term obligations 4,412,689
Notes payable to bank 9,300,000
Accounts payable 16,300,021
Accrued interest on bonds 344,469
Accrued taxes 82,836
Other 13,031
---------------
Total current liabilities 30,453,046
---------------
Regulatory liability 2,114,850
Deferred income taxes 1,276,663
Unamortized investment tax credits 642,680
Deferred compensation 2,770,560
Pensions and benefits 550,257
---------------
$70,566,291
===============
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
Operating revenues
Phase I support charges $5,517,641
Rental income 4,710
---------------
Total operating revenues 5,522,351
Operating expenses
Transmission expenses
Operations 24,568
Maintenance 202,501
---------------
Total transmission expenses 227,069
Administrative and general expenses 175,111
Depreciation and amortization 2,440,296
Taxes other than income taxes 540,339
Income taxes 483,425
---------------
Total operating expenses 3,866,240
---------------
Operating income 1,656,111
Other income
Interest 0
Amortization of investment tax credits 119,564
---------------
Total other income 119,564
---------------
Total operating and other income 1,775,675
---------------
Interest and other deductions:
Interest on long-term secured notes 979,360
Other interest expense 116,990
Amortization of debt expense 27,210
---------------
Total interest and other dedutions 1,123,560
Net income 652,115
Retained earnings at beginning of period 45,803
---------------
697,918
Deduct dividends declared 675,000
---------------
Retained earnings at end of period $22,918
===============
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1997
ASSETS
Utility plant, at original cost $47,763,393
Less accumulated depreciation and amortization 27,517,537
---------------
Net utility plant 20,245,856
Current assets
Cash 80,528
Accounts receivable-associated 7,425
Materials and supplies at average cost 102,441
Prepaid insurance 3,165
Other 1,809
---------------
Total current assets 195,368
Unamortized debt expense 80,190
Alternative minimum tax credits 861,704
---------------
Total assets $21,383,118
===============
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1997
CAPITALIZATION AND LIABILITIES
Capitalization:
Stockholders' equity:
Common stock, $100 par value per share $1,000
Miscellaneous paid-in-capital 3,199,000
Retained earnings 22,918
---------------
Total common stock equity 3,222,918
---------------
Long-term secured notes, 8.48% due 2006 10,520,000
Less notes to be retired within one year 1,960,000
---------------
8,560,000
---------------
Total capitalization 11,782,918
Current liabilities
Notes to be retired within one year 1,960,000
Notes payable-bank 1,900,000
Accounts payable - associated 781,711
Accounts payable - nonassociated 778
Accrued interest on notes 35,088
Accrued taxes (6,271)
---------------
Total current liabilities 4,671,306
Regulatory liability 580,723
Deferred income taxes 3,281,211
Deferred investment tax credits 1,066,960
---------------
Total capitalization and liabilities $21,383,118
===============
<TABLE>
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1997
<CAPTION>
GMPC VER Total Eliminations Consolidated
<S> <C> <C> <C> <C> <C>
Operating Revenues $179,322,785 $0 $179,322,785 $0 $179,322,785
-------------------------------------------------------------------------
Operating Expenses
Power Supply 0
VY Nuclear Power Corporation 32,817,359 32,817,359 32,817,359
Company-owned generation 5,326,789 5,326,789 5,326,789
Purchases from others 62,221,541 62,221,541 62,221,541
Other operating 16,780,289 16,780,289 16,780,289
Transmission 11,121,554 11,121,554 11,121,554
Maintenance 4,784,726 4,784,726 4,784,726
Depreciation & amortizaton 16,358,872 16,358,872 16,358,872
Taxes other than income 7,205,384 7,205,384 7,205,384
Income taxes 7,191,585 7,191,585 7,191,585
-------------------------------------------------------------------------
Total operating expenses 163,808,099 0 163,808,099 0 163,808,099
-------------------------------------------------------------------------
Operating income 15,514,686 0 15,514,686 0 15,514,686
-------------------------------------------------------------------------
Other Income
Equity in earnings of affiliates and non-utility opera 46,591 46,591 380,698 427,289
Allowance for equity funds used during construction 357,276 357,276 357,276
Other income and deductions, net 1,169,276 1,169,276 (380,698) 788,578
-------------------------------------------------------------------------
Total other income 1,573,143 0 1,573,143 0 1,573,143
-------------------------------------------------------------------------
Income before interest charges 17,087,829 0 17,087,829 0 17,087,829
-------------------------------------------------------------------------
Interest Charges
Long-term debt 7,273,607 7,273,607 7,273,607
Other 691,214 691,214 691,214
Allowance for borrowed funds used during construction (315,363) (315,363) (315,363)
-------------------------------------------------------------------------
Total interest charges 7,649,458 0 7,649,458 0 7,649,458
-------------------------------------------------------------------------
Net Income 9,438,371 0 9,438,371 0 9,438,371
Dividends on preferred stock 1,433,184 1,433,184 1,433,184
-------------------------------------------------------------------------
Net Income Applicable to Common Stock $8,005,187 $0 $8,005,187 $0 $8,005,187
=========================================================================
</TABLE>
<TABLE>
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
<CAPTION>
GMPC VER Total Eliminations Consolidated
<S> <C> <C> <C> <C> <C>
Balance - January 1,1997 $26,917,931 ($1,897) $26,916,034 $0 $26,916,034
Net income 9,438,371 0 9,438,371 9,438,371
-------------------------------------------------------------------------
Total 36,356,302 (1,897) 36,354,405 0 36,354,405
Charges:
Dividends on Capital Stock
Preferred - 4.75% Class B,$4.75 per share 13,359 13,359 13,359
-7% Class C,$7 per share 32,550 32,550 32,550
-9 3/8% Class D,Series 1,$9.375 per share 86,250 86,250 86,250
-8 5/8% Class D,Series 3,$8.625 per share 422,625 422,625 422,625
-7.32% Class D, Series 1, $7.32 per share 878,400 878,400 878,400
Common 8,204,588 8,204,588 8,204,588
Other 0 0
-------------------------------------------------------------------------
Total 9,637,772 0 9,637,772 0 9,637,772
-------------------------------------------------------------------------
Balance - December 31, 1997 $26,718,530 ($1,897) $26,716,633 $0 $26,716,633
=========================================================================
</TABLE>
<TABLE>
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
<CAPTION>
GMPC VER Total Eliminations Consolidated
ASSETS
ELECTRIC UTILITY
<S> <C> <C> <C> <C> <C>
Utility Plant
Utility plant, at original cost $265,441,252 $541 $265,441,793 $265,441,793
Less accumulated depreciation 87,689,451 87,689,451 87,689,451
-------------------------------------------------------------------------
Net utility plant 177,751,801 541 177,752,342 0 177,752,342
Property under capital lease 8,342,095 8,342,095 8,342,095
Construction work in progress 10,625,715 10,625,715 10,625,715
-------------------------------------------------------------------------
Total utility plant, net 196,719,611 541 196,720,152 0 196,720,152
-------------------------------------------------------------------------
Other Investments
Associated companies, at equity
Vermont Electric Power Company 2,794,152 2,794,152 2,794,152
VY Nuclear Power Corporation 9,701,319 9,701,319 9,701,319
Other 36,781,249 36,781,249 (27,279,680) 9,501,569
-------------------------------------------------------------------------
Total other investments 49,276,720 0 49,276,720 (27,279,680) 21,997,040
-------------------------------------------------------------------------
Current Assets
Cash 117,530 117,530 117,530
Special deposits 210 210 210
Accounts receivable,customers & others, 0
less allowance for doubtful accounts 17,471,309 57 17,471,366 (105,795) 17,365,571
Accrued utility revenues 6,505,512 6,505,512 6,505,512
Fuel,materials & and supplies at average cost 3,261,197 3,261,197 3,261,197
Prepayments 1,562,534 1,562,534 1,562,534
Other 312,094 312,094 312,094
-------------------------------------------------------------------------
Total current assets 29,230,386 57 29,230,443 (105,795) 29,124,648
-------------------------------------------------------------------------
Deferred Charges and Other 35,831,296 35,831,296 35,831,296
NON UTILITY
Cash and Cash Equivalents 153,497 153,497 153,497
Other Current Assets 14,878,014 14,878,014 (3,377,319) 11,500,695
Property and Equipment 10,784,307 10,784,307 10,784,307
Intangible Assets 2,115,644 2,115,644 2,115,644
Other Assets 16,683,745 16,683,745 821,787 17,505,532
-------------------------------------------------------------------------
44,615,207 0 44,615,207 (2,555,532) 42,059,675
-------------------------------------------------------------------------
TOTAL ASSETS $355,673,220 $598 $355,673,818 ($29,941,007) $325,732,811
=========================================================================
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1997
GMPC VER Total Eliminations Consolidated
CAPITALIZATION AND LIABILITIES
ELECTRIC UTILITY
Capitalization
Common Stock Equity
Common stock $17,317,581 $500 17,318,081 $17,318,081
Additional paid-in capital 70,720,763 70,720,763 70,720,763
Retained earnings 26,718,530 (1,897) 26,716,633 26,716,633
Reacquired capital stock (378,461) (378,461) (378,461)
-------------------------------------------------------------------------
Total common stock equity 114,378,413 (1,397) 114,377,016 0 114,377,016
-------------------------------------------------------------------------
Redeemable cumulative preferred stock 17,735,000 17,735,000 17,735,000
Long-term debt, less current maturities 93,200,000 93,200,000 93,200,000
-------------------------------------------------------------------------
Total capitalization 225,313,413 (1,397) 225,312,016 0 225,312,016
-------------------------------------------------------------------------
Capital lease obligation 8,342,095 8,342,095 8,342,095
-------------------------------------------------------------------------
Current Liabilities
Current maturities of long-term debt 1,700,000 1,700,000 1,700,000
Short-term debt 2,615,742 2,615,742 2,615,742
Accounts payable, trade 6,825,849 1,995 6,827,844 6,827,844
Accounts payable to associated companies 6,056,731 6,056,731 1,603,980 7,660,711
Dividends declared 349,710 349,710 349,710
Customer deposits 721,287 721,287 721,287
Taxes accrued 2,842,658 2,842,658 2,842,658
Interest accrued 1,311,069 1,311,069 1,311,069
Other 1,256,995 1,256,995 1,256,995
-------------------------------------------------------------------------
Total current liabilities 23,680,041 1,995 23,682,036 1,603,980 25,286,016
-------------------------------------------------------------------------
Deferred Credits
Accumulated deferred income taxes 23,500,711 23,500,711 23,500,711
Unamortized investment tax credits 4,542,493 4,542,493 4,542,493
Other 25,679,261 25,679,261 25,679,261
-------------------------------------------------------------------------
Total deferred credits 53,722,465 0 53,722,465 0 53,722,465
-------------------------------------------------------------------------
NON UTILITY
Current liabilities 4,555,472 4,555,472 (3,436,343) 1,119,129
Other liabilities 13,831,747 13,831,747 (1,880,657) 11,951,090
Stockholders' equity 26,227,987 26,227,987 (26,227,987) 0
-------------------------------------------------------------------------
44,615,206 0 44,615,206 (31,544,987) 13,070,219
-------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $355,673,220 $598 $355,673,818 ($29,941,007) $325,732,811
=========================================================================
</TABLE>
GREEN MOUNTAIN PROPANE GAS COMPANY CONFIDENTIAL
INCOME STATEMENT TREATMENT
FOR THE YEAR ENDED DECEMBER 31, 1997
REVENUE
Residential propane revenue
Commercial propane revenue
Transport propane revenue
Wholesale propane revenue
Other petroleum products 32,986
Service work 771,557
Meter service fees 19,169
Rental space and water heating 171,191
---------------
Total revenue
---------------
COST OF SALES
Propane product
Cost of sales - service work 356,011
Subcontractors - contract work 110,974
Petroleum distillates 30,294
Labor capitalized (52,018)
Sales discounts and allowances 15,996
---------------
Total cost of sales
---------------
Gross profit 3,542,598
---------------
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
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, 1997
ASSETS
Current Assets
Cash (3,038)
Accounts receivable 994,375
Inventory 725,547
Prepaid expenses 64,744
---------------
Total current assets 1,781,628
---------------
Property and equipment
Accumulated depreciation
---------------
Total Property and equipment
---------------
Intangible Assets
Goodwill
Customer list
Customer list White River Junction
Customer list Newport
Non compete covenant
Loan origination fee
Organization costs
---------------
---------------
Accumulated amortization
---------------
Total intangible assets
---------------
Other assets
Computer advances 1,268
Non-compete receivable 10,000
Total financed sales 82,474
Work in process 3,000
---------------
Total other assets 96,742
---------------
Total assets
===============
GREEN MOUNTAIN PROPANE GAS COMPANY CONFIDENTIAL
BALANCE SHEET TREATMENT
DECEMBER 31, 1997
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable
Due to GMP 276,266
Pre-sold LP contracts 215,196
Budget/fixed price pmt plans 91,473
Payroll taxes payable 3,109
Accounts payable GMPCU 293
Security deposits 83,387
Taxes other payable 10,341
Sales tax payable 11,375
Credit line -- State street 400,000
Accrued income taxes (347,271)
Accrued expenses 58,530
---------------
Total current liabilities
---------------
Total unearned interest
Note payable misc cap expenses
Note payable State Street
Deferred inc non compete
Deferred taxes 2,445,425
---------------
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, 1997
Balance January 1, 1997
Net income
---------------
Balance December 31, 1997
===============
LEASE-ELEC, INC.
INCOME STATEMENT AND STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1997
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, 1997
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, 1997
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, 1997
Revenues
Revenue - lease $206,901
Revenue - Interest 1,126
---------------
Total revenues 208,027
---------------
Expenses
Interest expense 192,866
Income taxes - federal (4,254)
Income taxes - state (1,352)
Property tax expense 0
Depreciation 23,774
Salaries and wages 70
General administrative expense 14
Miscellaneous expenses 0
---------------
Total expenses 211,118
---------------
Net income (3,091)
Retained earnings at beginning of period (11,407)
---------------
Retained earnings at end of period ($14,498)
===============
GMP REAL ESTATE CORPORATION
BALANCE SHEET
DECEMBER 31, 1997
ASSETS
Cash $44,824
Rent receivable 679,741
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 707,275
Building - Biron estate Montpelier 36,828
Land - Biron estate Montpelier 138,451
Organization costs 403
Income tax benefits receivable 92,535
---------------
Total assets $1,997,834
===============
GMP REAL ESTATE CORPORATION
BALANCE SHEET
DECEMBER 31, 1997
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $84,861
Accrued interest payable 5,054
Deferred income taxes 41,260
Notes payable #2 1,700,157
Notes payable #4 180,500
Common stock (5 shares, no par) 500
Retained earnings (14,498)
---------------
Total liabilities and shareholders' equity $1,997,834
===============
MOUNTAIN ENERGY, INC. CONFIDENTIAL
INCOME STATEMENT TREATMENT
FOR THE YEAR ENDED DECEMBER 31, 1997
Revenues
Undistributed income in subsidiaries
Install rev Micronair
Gain on sale of assets
Other income
Interest income Notes
Interest income bank
Other income Micronair
Cost of goods sold Micronair
---------------
Net revenues 2,845,604
---------------
Labor expenses
Employee compensation 319,148
Payroll taxes 15,425
Contract labor 76,358
Professional fees - due from GMP (36,840)
---------------
Total labor expenses 374,091
---------------
Benefits expenses
Group medical claims 14,522
Group medical admin 929
Group life insurance 744
Group disability insurance expense 1,705
Workers' comp insurance expense 530
Postretirement health care expense 4,649
Pension expense 7,615
401(k) expense 8,950
---------------
Total benefits expenses 39,644
---------------
Other operating expenses
Telephone
Repairs and maintenance
Office supplies
Furniture and office equipment expense
Postage and freight
Legal and professional fees
Contract and Proj expense
Membership dues and licenses
Subscription & library fees
Corporate franchise fees
Education and seminars
Travel and lodging
Meals
Bank charges
Interest expense GMP
Interest expense debt
Interest expense Micronair
Sales and Use tax
Miscellaneous
Depreciation
Amortization - intangibles
Amortization - loan origination costs
Parent payroll allocation
Parent overhead allocation
Operating exp Micronair
---------------
Total other operating expenses 2,186,151
---------------
Total expenses 2,599,886
---------------
Income before taxes 245,718
---------------
State income tax expense 97,696
Federal income tax expense 51,331
Income tax ITC amortization (45,415)
---------------
Net income 142,106
---------------
Retained earnings at beginning of period 3,197,758
---------------
Retained earnings at end of period $3,339,864
===============
MOUNTAIN ENERGY, INC. CONFIDENTIAL
BALANCE SHEET TREATMENT
DECEMBER 31, 1997
ASSETS
Current assets
Cash
Accounts receivable
GMP receivable
Notes receivable
Interest receivable-notes
Cegali receivable - agreement
Cegali receivable - guaranty
GMP receivable ITC
Prepaid expenses
Prepaid state taxes
Current assets Micronair
---------------
Total current assets 10,239,954
---------------
Fixed assets
Partnership interests
Equity in earnings of subsidiaries
Partnership distributions
Furniture and office equipment
Leasehold improvements
Accumulated depr
Fixed assets Micronair
---------------
Total fixed assets 13,499,508
---------------
Other assets
Prepaid AMT
Software
Organization Costs
Organiz costs Mecwnd
Accumulated amort
Loan orig/finance costs
Acquisition costs
Other assets Micronair
---------------
Total other assets 2,643,783
---------------
Total assets $26,383,245
===============
MOUNTAIN ENERGY, INC. CONFIDENTIAL
BALANCE SHEET TREATMENT
DECEMBER 31, 1997
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
GMP payable
Accounts payable
Accrued interest payable-note
State income tax payable
Federal inc tax true up
Benefits payable
Payroll/payroll taxes payable
Current liability Micronair
---------------
Total current liabilities 2,191,296
---------------
Long-term liabilities
Notes payable
Deferred ITC
Deferred federal taxes
Deferred state taxes
Deferred compensation
Long term liability Micronair
---------------
Total long-term liabilities 7,664,588
---------------
Total liabilities 9,855,884
---------------
Equity
Common stock
Return of capital
Retained earnings
Net income
---------------
Total equity 16,527,361
---------------
Total liabilities and equity $26,383,245
===============
GREEN MOUNTAIN RESOURCES INC. CONFIDENTIAL
INCOME STATEMENT AND STATEMENT OF RETAINED EARNINGS TREATMENT
FOR THE YEAR ENDED DECEMBER 31, 1997
Revenues
Undistributed earnings--NH
Undistributed earnings--Mass Electric
Undistributed earnings--Bay State
Undistributed earnings--Penn
Misc
---------------
Total revenues
---------------
Expenses
Legal/accounting/other
Legal and finance
Billing support services
Transportation
General
Marketing
Marketing/pricing
Market research
Materials and other
Amortization
Power supply/regulatory
Labor
Other
Business plan
MIS
Misc
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, 1997
ASSETS
Current Assets
Cash
Accounts Receivable--NH
Accounts Receivable--Mass Electric
Accounts Receivable--Bay State
Due from GMP
---------------
Total current assets
---------------
Other assets
Investment in NH
Undistributed earnings--NH
Investment in Mass Electric
Undistributed earnings--Mass Electric
Investment in Bay State
Undistributed earnings-- Bay State
Investment in Penn
Undistributed earnings-- Penn
---------------
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
Capital--Penn
Paid in capital GMRI
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, 1997 and the related
consolidated statement of income for the year ended December 31, 1997
and is qualified in its entirety by reference to such financial statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 325,732,811
<TOTAL-OPERATING-REVENUES> 179,322,785
<NET-INCOME> 9,438,371
</TABLE>
