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, Limited, 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 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
83,560 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. 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, Limited, 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 1233 Shelburne Road, Suite E-5,
South Burlington, Vermont.
The business of Green Mountain Propane Gas, Limited (GMPG) is to
close out the affairs of Green Mountain Propane Gas Company, its
predecessor, an operating retail propane gas seller, the assets of which
were sold on March 16, 1998.
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 began in June 1996 and terminated in 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.
In addition, GMRI owned a minor interest in Green Mountain Energy
Resources, a company that has created retail brands of electricity that
are sold to consumers in competitive markets. In January of 1999, GMRI
sold its interest in GMER to Green Funding I, L.L.C.
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 that is a "qualified
facility" and 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, Mountain Energy owns a subsidiary
that owns a company specializing in wastewater treatment technology, and
directly owns approximately 29 % of a second 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 that 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 NEPOOL, acting for itself and as agent for twenty-two
other electric utilities in Vermont, including the Company. Through
NEPOOL, 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 1233
Shelburne Road, Suite E-5, 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, 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; in 1998 the limited
partnership interest increased to 26 %. 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, 1998, 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 284.6 miles of 34.5 KV
transmission lines. Its distribution system included about 2,409 miles
of overhead lines of 2.4 to 34.5 KV and 459 miles of underground cable
of 2.4 to 34.5 KV. At such date, the Company owned approximately
158,820 Kva of substation transformer capacity in transmission
substations and 567,750 Kva of substation transformer capacity in
distribution substations and 1,079,987 Kva of transformers for step-down
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 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 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 26%
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 1998
Electric: 2,383,368,000
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1998
Electric: 3,358,696
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1998
Electric: 360,787.19
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 1998
Electric: None
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1998
Electric: None
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1998
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 1998
Electric: 526,437,900
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1998
Electric: 1,511,413,200
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1998
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 1998
Electric: 1,415,937,000
Gas: None
VERMONT YANKEE NUCLEAR POWER CORPORATION
Year 1998
Electric: None
Gas: None
VERMONT ELECTRIC POWER COMPANY, INC.
Year 1998
Electric: 152,662.50
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 1998.
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 $ 309,718,753
2. Total Operating Revenues $ 184,304,226
3. Net Income $ (2,877,478)
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 1999.
GREEN MOUNTAIN POWER CORPORATION
(name of claimant)
(Corporate Seal)
By: /s/N.R. Brock
N. R. Brock, 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
VERMONT YANKEE NUCLEAR POWER CORPORATION EXHIBIT A
STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1998
Operating revenues $195,249,065
Operating expenses
Nuclear fuel expense 15,901,745
Other operation expense 89,440,584
Maintenance expense 34,494,233
Depreciation and amortization expense 17,059,395
Decommissioning expense 12,625,372
Taxes on income 2,223,257
Property and other taxes 8,222,838
---------------
Total operating expenses 179,967,424
---------------
Operating income 15,281,641
---------------
Other income and deductions
Net earnings on decommissioning trust 7,968,668
Decommissioning expense (7,968,668)
Interest 5,341,122
Allowance for equity funds used during construction 35,738
Taxes on other income (1,911,375)
Other, net (225,839)
---------------
Total other income and deductions 3,239,646
---------------
Income before interest expense 18,521,287
---------------
Interest expense
First mortgage bonds long-term debt 5,135,201
Other long-term debt 1,251,824
Interest on spent fuel disposal fee obligation 5,103,645
Other interest expense 36,100
Allowance for borrowed funds used during construction (130,485)
---------------
Total interest expense 11,396,285
---------------
Net income 7,125,002
Retained earnings at beginning of period 1,190,916
Dividends declared 6,770,297
---------------
Retained earnings at end of period $1,545,621
===============
Average number of common shares outstanding 392,481
Net income per avg share of common stock outstanding 18.15
Dividends per avg share of common stock outstanding 17.25
VERMONT YANKEE NUCLEAR POWER CORPORATION
BALANCE SHEET
DECEMBER 31, 1998
ASSETS
UTILITY PLANT
Electric plant, at cost $410,574,248
Less accumulated depreciation 269,493,819
---------------
141,080,429
Construction work in progress 3,731,223
---------------
Net electric plant 144,811,652
---------------
Nuclear fuel at cost:
Assemblies in reactor 66,476,113
Spent fuel 353,855,729
---------------
420,331,842
Less accumulated depreciation of nuclear fuel 397,151,987
---------------
Net nuclear fuel 23,179,855
---------------
Net utility plant 167,991,507
---------------
CURRENT ASSETS
Cash and cash equivalents 93,012
Accounts receivable from sponsors 12,679,899
Other accounts receivable 4,183,046
Materials and supplies, net of amortizaton 16,149,465
Prepaid expenses 3,841,317
---------------
Total current assets 36,946,739
---------------
DEFERRED CHARGES
Deferred decommissioning costs 59,308,332
Accumulated deferred income taxes 28,096,661
Deferred DOE enrichment site decontamination
and decommissioning fee 10,349,823
Deferred low-level radioactive waste facility expense 26,194,906
Net unamortized loss on reacquired debt 1,970,084
Other deferred charges 16,971,502
---------------
Total deferred charges 142,891,308
---------------
LONG-TERM INVESTMENTS, at book value
Decommissioning trust 190,505,267
Spent fuel disposal fee defeasance trust 97,538,934
---------------
Total long-term investments 288,044,201
---------------
$635,873,755
===============
VERMONT YANKEE NUCLEAR POWER CORPORATION
BALANCE SHEET
DECEMBER 31, 1998
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 1,545,620
---------------
Total common stock equity 54,643,388
---------------
LONG-TERM OBLIGATIONS
First mortgage bonds Series I 6.480%, 2009 75,845,000
Commercial paper - Eurodollar credit agreement 17,428,785
---------------
Total long-term obligations 93,273,785
---------------
Total capitalization 147,917,173
---------------
Spent fuel disposal fee and accrued interest 103,821,503
CURRENT LIABILITIES
Accounts payable 488,348
Accrued expenses 16,261,249
Accrued low-level waste expenses 5,281,712
Accrued interest 1,707,638
Accrued taxes 2,176,643
Other accrued liabilities 6,334,017
Dividends declared 0
---------------
Total current liabilities 32,249,607
---------------
DEFERRED CREDITS AND OTHER LIABILITIES
Accrued decommissioning costs 260,140,965
Accumulated deferred income taxes 41,779,603
Net regulatory tax liability 4,964,616
Accumulated deferred investment tax credit 4,432,380
Accrued DOE enrichment site decontamination
and decommissioning fee 8,280,724
Accrued low-level waste facility expenses 23,591,053
Accrued employee benefits 8,696,131
---------------
Total deferred credits and other liabilities 351,885,472
---------------
$635,873,755
===============
VERMONT ELECTRIC POWER COMPANY, INC.
STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1998
Operating revenues
Transmission service $16,993,265
Rent of transmission facilities to others 274,806
Sales to other utilities 18,015,919
---------------
Total operating revenues 35,283,990
---------------
Operating expenses
Purchased power 18,015,919
Transmission expenses:
Operation 1,077,464
Maintenance 1,569,806
Charges for transmission facilities of others 104,112
---------------
Total transmission expenses 2,751,382
Administrative and general expenses 5,518,340
Depreciation and amortization 4,026,689
Taxes other than income taxes 2,349,248
Income taxes (68,407)
---------------
Total operating expenses 32,593,171
---------------
Operating income 2,690,819
Other income
Interest 113,896
Amortization of investment tax credits 64,110
Equity in subsidiary earnings 609,335
---------------
Total other income 787,341
---------------
Operating and other income 3,478,160
---------------
Interest and other deductions
Interest on bonds 2,086,986
Interest on chattel notes 52,438
Other interest expense 208,722
Allowance for borrowed funds used during
construction - credit (76,689)
Amortization of debt expense 53,258
---------------
Total interest and other deductions 2,324,715
Net income - common 544,110
Net income - preferred 609,335
---------------
Net income 1,153,445
Retained earnings at beginning of period-common 181,166
Retained earnings at beginning of period-preferred 22,918
---------------
Subtotal 1,357,529
Deduct dividends declared-common 540,000
Deduct dividends declared-preferred 550,000
---------------
Retained earnings at end of period-common 185,276
Retained earnings at end of period-preferred 82,253
---------------
Total retained earnings at end of period $267,529
===============
VERMONT ELECTRIC POWER COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1998
ASSETS
Utility plant, at original cost $98,225,729
Less accumulated depreciation and amortization 55,908,432
---------------
Net utility plant 42,317,297
Investment in subsidiary at equity 2,782,253
Current assets:
Cash 256,241
Bond sinking fund deposits 713,667
Bond interest deposits 468,756
Accounts receivable 17,112,776
Materials and supplies, at average cost 1,840,129
Cash surrender value of life insurance 1,248,266
Other 38,484
Total current assets ---------------
21,678,319
Other assets:
Unamortized debt expense 258,853
Miscellaneous 621,434
---------------
Total other assets 880,287
---------------
$67,658,156
===============
VERMONT ELECTRIC POWER COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1998
CAPITALIZATION AND LIABILITIES
Capitalization
Stockholders' investment
Common stock, $100 par value per share:
Class B $6,000,000
Retained earnings 185,276
---------------
Total common stock investment 6,185,276
---------------
Preferred stock, $100 par value per share
Class C 10,000,000
Return of capital (7,300,000)
Retained earnings 82,253
---------------
Total preferred stock investment 2,782,253
---------------
Total stockholders' investment 8,967,529
---------------
First mortgage bonds:
Series I, 8.75% due 2000
Series J, 5.71% due 2003 15,672,000
Series K, 7.45% due 2004 5,203,000
Series L, 7.3 % due 2018 12,203,000
---------------
33,078,000
Less bonds to be retired within one year 3,842,000
---------------
29,236,000
---------------
Other secured debt:
BancBoston chattel notes 566,152
Less notes to be retired within one year 182,140
---------------
384,012
---------------
---------------
Total capitalization 38,587,541
---------------
Current liabilities
Current maturities of long-term obligations 4,024,140
Notes payable to bank 1,400,000
Accounts payable 15,628,343
Accrued interest on bonds 468,756
Accrued taxes 163,716
Other 69,221
---------------
Total current liabilities 21,754,176
---------------
Regulatory liability 1,917,606
Deferred income taxes 1,262,041
Unamortized investment tax credits 578,570
Deferred compensation 2,941,448
Pensions and benefits 616,774
---------------
$67,658,156
===============
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1998
Operating revenues
Phase I support charges $5,609,759
Rental income 4,710
---------------
Total operating revenues 5,614,469
Operating expenses
Transmission expenses
Operations 39,163
Maintenance 457,746
---------------
Total transmission expenses 496,909
Administrative and general expenses 191,320
Depreciation and amortization 2,440,763
Taxes other than income taxes 559,896
Income taxes 484,910
---------------
Total operating expenses 4,173,798
---------------
Operating income 1,440,671
Other income
Interest 248
Amortization of investment tax credits 147,954
---------------
Total other income 148,202
---------------
Total operating and other income 1,588,873
---------------
Interest and other deductions:
Interest on long-term secured notes 808,323
Other interest expense 148,444
Amortization of debt expense 22,771
---------------
Total interest and other dedutions 979,538
Net income 609,335
Retained earnings at beginning of period 22,918
---------------
632,253
Deduct dividends declared 550,000
---------------
Retained earnings at end of period $82,253
===============
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1998
ASSETS
Utility plant, at original cost $47,847,131
Less accumulated depreciation and amortization 29,958,300
---------------
Net utility plant 17,888,831
Current assets
Cash 87,589
Accounts receivable-associated 5,391
Materials and supplies at average cost 102,220
Prepaid insurance 3,637
Other 485
---------------
Total current assets 199,322
Unamortized debt expense 57,420
Alternative minimum tax credits 1,118,668
---------------
Total assets $19,264,241
===============
VERMONT ELECTRIC TRANSMISSION COMPANY, INC.
BALANCE SHEET
DECEMBER 31, 1998
CAPITALIZATION AND LIABILITIES
Capitalization:
Stockholders' equity:
Common stock, $100 par value per share $1,000
Miscellaneous paid-in-capital 2,699,000
Retained earnings 82,253
---------------
Total common stock equity 2,782,253
---------------
Long-term secured notes, 8.48% due 2006 8,560,000
Less notes to be retired within one year 1,880,000
---------------
6,680,000
---------------
Total capitalization 9,462,253
Current liabilities
Notes to be retired within one year 1,880,000
Notes payable-bank 2,500,000
Accounts payable - associated 261,374
Accounts payable - nonassociated 1,226
Accrued interest on notes 31,193
Accrued taxes 66,353
---------------
Total current liabilities 4,740,146
Regulatory liability 544,258
Deferred income taxes 3,474,447
Deferred investment tax credits 1,043,137
---------------
Total capitalization and liabilities $19,264,241
===============
<TABLE>
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1998
GMPC VER Total Eliminations Consolidated
<CAPTION>
<S> <C> <C> <C> <C> <C>
Operating Revenues $184,304,226 $0 $184,304,226 $0 $184,304,226
-------------------------------------------------------------------------
Operating Expenses
Power Supply 0
VY Nuclear Power Corporation 32,909,540 32,909,540 32,909,540
Company-owned generation 6,412,112 6,412,112 6,412,112
Purchases from others 81,706,348 81,706,348 81,706,348
Other operating 21,291,116 21,291,116 21,291,116
Transmission 9,388,902 9,388,902 9,388,902
Maintenance 5,189,848 5,189,848 5,189,848
Depreciation & amortizaton 16,058,812 16,058,812 16,058,812
Taxes other than income 7,242,738 7,242,738 7,242,738
Income taxes (1,367,390) (1,367,390) (1,367,390)
-------------------------------------------------------------------------
Total operating expenses 178,832,026 0 178,832,026 0 178,832,026
-------------------------------------------------------------------------
Operating income 5,472,200 0 5,472,200 0 5,472,200
-------------------------------------------------------------------------
Other Loss
Loss in earnings of affiliates and non-utility operati (444,456) (444,456) 416,231 (28,225)
Allowance for equity funds used during construction 103,763 103,763 103,763
Other deductions, net (132,031) (132,031) (416,231) (548,262)
-------------------------------------------------------------------------
Total other loss (472,724) 0 (472,724) 0 (472,724)
-------------------------------------------------------------------------
Income before interest charges 4,999,476 0 4,999,476 0 4,999,476
-------------------------------------------------------------------------
Interest Charges
Long-term debt 6,991,234 6,991,234 6,991,234
Other 1,016,915 1,016,915 1,016,915
Allowance for borrowed funds used during construction (131,195) (131,195) (131,195)
-------------------------------------------------------------------------
Total interest charges 7,876,954 0 7,876,954 0 7,876,954
-------------------------------------------------------------------------
Net Loss (2,877,478) 0 (2,877,478) 0 (2,877,478)
Dividends on preferred stock 1,295,578 1,295,578 1,295,578
-------------------------------------------------------------------------
Net Loss Applicable to Common Stock ($4,173,056) $0 ($4,173,056) $0 ($4,173,056)
=========================================================================
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1998
GMPC VER Total Eliminations Consolidated
Balance - January 1,1998 $26,718,530 ($1,897) $26,716,633 $0 $26,716,633
Net income (2,877,478) 0 (2,877,478) (2,877,478)
-------------------------------------------------------------------------
Total 23,841,052 (1,897) 23,839,155 0 23,839,155
Charges:
Dividends on Capital Stock
Preferred - 4.75% Class B,$4.75 per share 12,291 12,291 12,291
-7% Class C,$7 per share 31,762 31,762 31,762
-9 3/8% Class D,Series 1,$9.375 per share 71,250 71,250 71,250
-8 5/8% Class D,Series 3,$8.625 per share 301,875 301,875 301,875
-7.32% Class D, Series 1, $7.32 per share 878,400 878,400 878,400
Common 5,035,488 5,035,488 5,035,488
Other 0 0
-------------------------------------------------------------------------
Total 6,331,066 0 6,331,066 0 6,331,066
-------------------------------------------------------------------------
Balance - December 31, 1998 $17,509,986 ($1,897) $17,508,089 $0 $17,508,089
=========================================================================
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
GMPC VER Total Eliminations Consolidated
ASSETS
ELECTRIC UTILITY
Utility Plant
Utility plant, at original cost $276,852,065 $541 $276,852,606 $276,852,606
Less accumulated depreciation 94,603,653 94,603,653 94,603,653
-------------------------------------------------------------------------
Net utility plant 182,248,412 541 182,248,953 0 182,248,953
Property under capital lease 7,696,336 7,696,336 7,696,336
Construction work in progress 5,610,394 5,610,394 5,610,394
-------------------------------------------------------------------------
Total utility plant, net 195,555,142 541 195,555,683 0 195,555,683
-------------------------------------------------------------------------
Other Investments
Associated companies, at equity
Vermont Electric Power Company 2,657,302 2,657,302 2,657,302
VY Nuclear Power Corporation 9,759,404 9,759,404 9,759,404
Other 27,042,869 27,042,869 (18,781,602) 8,261,267
-------------------------------------------------------------------------
Total other investments 39,459,575 0 39,459,575 (18,781,602) 20,677,973
-------------------------------------------------------------------------
Current Assets
Cash 439,207 439,207 439,207
Special deposits 210 210 210
Accounts receivable,customers & others, 0
less allowance for doubtful accounts 18,976,490 57 18,976,547 18,976,547
Accrued utility revenues 6,610,764 6,610,764 6,610,764
Fuel,materials & and supplies at average cost 3,139,199 3,139,199 3,139,199
Prepayments 6,091,459 6,091,459 6,091,459
Other 443,071 443,071 443,071
-------------------------------------------------------------------------
Total current assets 35,700,400 57 35,700,457 0 35,700,457
-------------------------------------------------------------------------
Deferred Charges and Other 30,470,742 30,470,742 30,470,742
NON UTILITY
Cash and Cash Equivalents 151,457 151,457 151,457
Other Current Assets 10,768,454 10,768,454 (2,945,049) 7,823,405
Property and Equipment 1,212,677 1,212,677 1,212,677
Intangible Assets 1,657,497 1,657,497 1,657,497
Other Assets 15,654,273 15,654,273 814,589 16,468,862
-------------------------------------------------------------------------
29,444,358 0 29,444,358 (2,130,460) 27,313,898
-------------------------------------------------------------------------
TOTAL ASSETS $330,630,217 $598 $330,630,815 ($20,912,062) $309,718,753
=========================================================================
GREEN MOUNTAIN POWER CORPORATION
CONSOLIDATING BALANCE SHEET
DECEMBER 31, 1998
GMPC VER Total Eliminations Consolidated
CAPITALIZATION AND LIABILITIES
ELECTRIC UTILITY
Capitalization
Common Stock Equity
Common stock $17,710,460 $500 17,710,960 $17,710,960
Additional paid-in capital 71,914,236 71,914,236 71,914,236
Retained earnings 17,509,986 (1,897) 17,508,089 17,508,089
Reacquired capital stock (378,461) (378,461) (378,461)
-------------------------------------------------------------------------
Total common stock equity 106,756,221 (1,397) 106,754,824 0 106,754,824
-------------------------------------------------------------------------
Redeemable cumulative preferred stock 16,085,000 16,085,000 16,085,000
Long-term debt, less current maturities 88,500,000 88,500,000 88,500,000
-------------------------------------------------------------------------
Total capitalization 211,341,221 (1,397) 211,339,824 0 211,339,824
-------------------------------------------------------------------------
Capital lease obligation 7,696,336 7,696,336 7,696,336
-------------------------------------------------------------------------
Current Liabilities
Current maturities of long-term debt 1,700,000 1,700,000 1,700,000
Short-term debt 7,000,000 7,000,000 7,000,000
Accounts payable, trade 5,450,775 1,995 5,452,770 5,452,770
Accounts payable to associated companies 5,684,293 5,684,293 1,458,846 7,143,139
Dividends declared 362,437 362,437 362,437
Customer deposits 336,078 336,078 336,078
Taxes accrued 369,835 369,835 369,835
Interest accrued 1,203,245 1,203,245 1,203,245
Other 5,257,885 5,257,885 5,257,885
-------------------------------------------------------------------------
Total current liabilities 27,364,548 1,995 27,366,543 1,458,846 28,825,389
-------------------------------------------------------------------------
Deferred Credits
Accumulated deferred income taxes 23,389,117 23,389,117 23,389,117
Unamortized investment tax credits 4,260,093 4,260,093 4,260,093
Other 27,134,544 27,134,544 27,134,544
-------------------------------------------------------------------------
Total deferred credits 54,783,754 0 54,783,754 0 54,783,754
-------------------------------------------------------------------------
NON UTILITY
Current liabilities 3,365,953 3,365,953 (2,645,966) 719,987
Other liabilities 8,351,115 8,351,115 (1,997,652) 6,353,463
Stockholders' equity 17,727,290 17,727,290 (17,727,290) 0
-------------------------------------------------------------------------
29,444,358 0 29,444,358 (22,370,908) 7,073,450
-------------------------------------------------------------------------
TOTAL CAPITALIZATION AND LIABILITIES $330,630,217 $598 $330,630,815 ($20,912,062) $309,718,753
=========================================================================
</TABLE>
GREEN MOUNTAIN PROPANE GAS COMPANY
INCOME STATEMENT
FOR THE YEAR ENDED DECEMBER 31, 1998
REVENUE
Revenue 2,130,705
---------------
Total revenue 2,130,705
---------------
COST OF SALES
Cost of sales 1,106,555
---------------
Total cost of sales 1,106,555
---------------
Gross profit 1,024,150
---------------
OPERATING EXPENSES
Operating expenses 759,279
Depreciation 142,900
Amortization 37,116
Bad debt expense 46,236
Parent company charges 49,579
Interest income (335,093)
Interest expense 40,016
Miscellaneous 100,367
Income taxes (88,546)
Loss on sale of assets 341,346
Working capital adjustment (230,000)
Closing costs 300,000
---------------
Total operating expenses 1,163,200
---------------
Net loss (139,050)
===============
GREEN MOUNTAIN PROPANE GAS COMPANY
BALANCE SHEET
DECEMBER 31, 1998
ASSETS
Other Assets
Miscellaneous receivable 331,000
---------------
Total assets 331,000
===============
GREEN MOUNTAIN PROPANE GAS COMPANY
BALANCE SHEET
DECEMBER 31, 1998
LIABILITIES AND STOCKHOLDERS' EQUITY
Stockholders' equity
Common stock 2,000
Additional paid in capital 2,930,114
Retained earnings (2,462,064)
Net income (loss) (139,050)
---------------
Total stockholders' equity 331,000
---------------
Total liabilities and stockholders' equity 331,000
===============
GREEN MOUNTAIN PROPANE GAS COMPANY
STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1998
Balance January 1, 1998 (2,462,064)
Net income (139,050)
---------------
Balance December 31, 1998 (2,601,114)
===============
LEASE-ELEC, INC.
INCOME STATEMENT AND STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1998
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, 1998
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, 1998
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, 1998
Revenues
Revenue - lease $206,901
Revenue - Interest 1,095
---------------
Total revenues 207,996
---------------
Expenses
Interest expense 207,465
Income taxes - federal (8,725)
Income taxes - state (2,772)
Property tax expense 0
Depreciation 23,774
Salaries and wages 0
General administrative expense 0
Miscellaneous expenses 25
---------------
Total expenses 219,767
---------------
Net income (11,771)
Retained earnings at beginning of period (14,498)
---------------
Retained earnings at end of period ($26,269)
===============
GMP REAL ESTATE CORPORATION
BALANCE SHEET
DECEMBER 31, 1998
ASSETS
Cash $11,768
Rent receivable 829,741
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 684,584
Building - Biron estate Montpelier 35,745
Land - Biron estate Montpelier 138,451
Organization costs 403
Income tax benefits receivable 102,352
---------------
Total assets $2,100,821
===============
GMP REAL ESTATE CORPORATION
BALANCE SHEET
DECEMBER 31, 1998
LIABILITIES AND SHAREHOLDERS' EQUITY
Accounts payable $84,885
Accrued interest payable 4,473
Deferred income taxes 39,580
Notes payable #2 1,817,152
Notes payable #4 180,500
Common stock (5 shares, no par) 500
Retained earnings (26,269)
---------------
Total liabilities and shareholders' equity $2,100,821
===============
MOUNTAIN ENERGY, INC. CONFIDENTIAL
INCOME STATEMENT TREATMENT
FOR THE YEAR ENDED DECEMBER 31, 1998
Revenues
Undistributed income in subsidiaries
Install revenues
Other income
Interest income Notes
Interest income bank
Other income
Cost of goods sold
---------------
Net revenues 2,091,774
---------------
Labor expenses
Employee compensation 446,823
Payroll taxes 29,350
Contract labor (54,044)
Professional fees - due from GMP 85,299
---------------
Total labor expenses 507,428
---------------
Benefits expenses
Group medical claims 23,419
Group medical admin 1,338
Group life insurance 505
Group disability insurance expense 1,537
Workers' comp insurance expense 804
Postretirement health care expense 5,114
Pension expense 16,248
401(k) expense 12,482
---------------
Total benefits expenses 61,447
---------------
Other operating expenses
Rent - office
Utilities
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
Contributions
Interest expense
Loss on sale of assets
Sales and Use tax
Miscellaneous
Army settlement reserves
O&M renegotiation costs
Impairment loss-WPP '89
Depreciation
Amortization - intangibles
Parent payroll allocation
Parent overhead allocation
Operating exp Micronair
---------------
Total other operating expenses 5,073,046
---------------
Total expenses 5,641,921
---------------
Income before taxes (3,550,147)
---------------
State income tax expense (221,713)
Federal income tax expense (1,129,911)
Income tax ITC amortization (110,966)
---------------
Net income (2,087,557)
---------------
Retained earnings at beginning of period 3,339,864
---------------
Retained earnings at end of period 1,252,307
===============
MOUNTAIN ENERGY, INC.
BALANCE SHEET CONFIDENTIAL
DECEMBER 31, 1998 TREATMENT
ASSETS
Current assets
Cash
Accounts receivable
GMP receivable
Inventory
Unbilled revenue
Notes receivable
Interest receivable - notes
GMP receivable ITC
Prepaid insurance
Prepaid expense Micronair
Prepaid state taxes
---------------
Total current assets 10,013,270
---------------
Fixed assets
Partnership interests
C Corp interest CASTion
Equity in earnings of subsidiaries
Partnership distributions
Goodwill
Accumulated amortization - goodwill
Property, plant & equipment
Accumulated depreciation
---------------
Total fixed assets 12,412,849
---------------
Other assets
Deposits
Prepaid AMT
Software
Organization Costs
Goodwill
Patents & other intangibles
Accumulated amortization
Loan origination/finance costs
Acquisition costs
---------------
Total other assets 4,383,917
---------------
Total assets 26,810,036
===============
MOUNTAIN ENERGY, INC.
BALANCE SHEET CONFIDENTIAL
DECEMBER 31, 1998 TREATMENT
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities
GMP payable
Accounts payable
Accrued interest payable-note
State income tax payable
Federal inc tax true up
Accrued expenses payable
Benefits payable
Current prtn lease
Other accrd liab - Micronair
Accrued Army reserves
---------------
Total current liabilities 3,211,465
---------------
Long-term liabilities
Notes payable
Unearned revenue
Deferred federal taxes
Deferred state taxes
Deferred compensation
Capital leases
---------------
Total long-term liabilities 6,283,767
---------------
Total liabilities 9,495,232
---------------
Equity
Common stock
Return of capital
Retained earnings
Net income
---------------
Total equity 17,314,804
---------------
Total liabilities and equity 26,810,036
===============
GREEN MOUNTAIN RESOURCES INC.
INCOME STATEMENT AND STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1998
Revenues
Undistributed earnings--NH (464,179)
Undistributed earnings--Bay State (50,584)
---------------
Total revenues (514,763)
---------------
Expenses
Legal/accounting/other 0
Legal and finance 15,066
Billing support services 0
Transportation 0
General 0
Marketing 0
Marketing/pricing 4,796
Market research 0
Materials and other 0
Amortization 0
Power supply/regulatory 0
Labor (22,153)
Other 117,350
Business plan 0
MIS 200
Misc 0
Income tax expense (214,197)
Income tax true-up benefit (169,207)
---------------
Total expenses (268,145)
---------------
---------------
Net income (246,618)
---------------
Retained earnings at beginning of period (2,559,569)
---------------
Retained earnings at end of period (2,806,187)
===============
GREEN MOUNTAIN RESOURCES, INC.
BALANCE SHEET
DECEMBER 31, 1998
ASSETS
Current Assets
Cash 1,798
Accounts Receivable--NH 63,332
---------------
Total current assets 65,130
---------------
Other assets
Investment in NH 1,184,724
Undistributed earnings--NH (1,184,724)
Investment in Mass Electric 18,114
Undistributed earnings--Mass Electric (18,114)
Investment in Bay State 297,840
Undistributed earnings-- Bay State (297,840)
Investment in Penn 68,549
Undistributed earnings-- Penn (68,549)
---------------
Total other assets 0
---------------
---------------
Total Assets 65,130
===============
LIABILITIES AND CAPITAL
Current liabilities
Due to GMP 65,130
---------------
Total current liabilities 65,130
---------------
Capital
Common stock 100
Capital--NH 1,184,724
Capital--Mass Electric 18,114
Capital--Bay State 297,840
Capital--Penn 68,549
Paid in capital GMRI 1,236,860
Retained earnings (2,806,187)
---------------
Total capital 0
---------------
---------------
Total liabilities and capital 65,130
===============
<TABLE> <S> <C>
<ARTICLE> OPUR3
<LEGEND>
This schedule contains summary financial information extracted from the
consolidated balance sheet as of December 31, 1998 and the related
consolidated statement of income for the year ended December 31, 1998
and is qualified in its entirety by reference to such financial
statements.
</LEGEND>
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> DEC-31-1998
<BOOK-VALUE> PER-BOOK
<TOTAL-ASSETS> 309,718,753
<TOTAL-OPERATING-REVENUES> 184,304,226
<NET-INCOME> (2,877,478)
</TABLE>
