FILE NO. 69-93
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C.
FORM U-3A-2
STATEMENT BY HOLDING COMPANY CLAIMING EXEMPTION UNDER RULE U-3A-2 FROM THE
PROVISIONS OF THE PUBLIC UTILITY HOLDING COMPANY
ACT OF 1935
TO BE FILED ANNUALLY PRIOR TO MARCH 1
NIAGARA MOHAWK 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, AND SUBMITS THE FOLLOWING
INFORMATION:
<PAGE>
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 THE CLAIMANT DIRECTLY OR
INDIRECTLY HOLDS AN INTEREST.
<TABLE>
<CAPTION>
COLUMN A COLUMN B COLUMN C COLUMN D
- --------------------------------- ------------------- ------------------------- ------------
% OF VOTING
STATE OF SEC. OWNED
NAME AND LOCATION OF COMPANY ORGANIZATION NATURE OF BUSINESS BY CLAIMANT
- --------------------------------- ------------------- ------------------------- ------------
<S> <C> <C> <C>
Niagara Mohawk Power Corporation. New York Electric and Gas Utility N/A
(NMPC or Claimant)
Syracuse, New York
Opinac North America, Inc.. . . . Delaware Investment Company 100.00%
("Opinac NA") (Note A)
NM Uranium, Inc.. . . . . . . . . Texas Mining 100.00%
Syracuse, New York
NM Properties, Inc. . . . . . . . New York Real Estate Development 100.00%
Syracuse, New York (Note B)
EMCO-TECH, Inc. . . . . . . . . . New York (Note C) 100.00%
Syracuse, New York
NM Receivables Corp II. . . . . . New York (Note D) 100.00%
Syracuse, New York
NM Receivables LLC. . . . . . . . New York (Note E) N/A
Syracuse, New York
Moreau Manufacturing Corporation. New York Owns and operates 66.67%
("Moreau") a hydroelectric
Syracuse, New York generating station
Beebee Island Corporation . . . . New York Owns and operates 82.84%
("Beebee") a hydroelectric
Syracuse, New York generating station
</TABLE>
Note A - Opinac NA owns 100% of Opinac Energy Corporation and 100% of
Niagara Mohawk Energy, Inc. Opinac Energy Corporation is an investment
company, which owns 50% of Canadian Niagara Power Company, Limited
("CNP") (an electric utility located in Ontario, Canada), incorporated
in the province of Ontario, Canada. Niagara Mohawk Energy, Inc.
("NM Energy"), an unregulated company, is an energy marketing and
energy related energy services company located in Syracuse, New York,
incorporated in the state of Delaware. NM Energy owns 100% of Niagara
Mohawk Energy Marketing, Inc. (incorporated in the State of Delaware),
100% of Global Energy Enterprises India Private Limited, 90% of
Dolphin Investments International, Inc. (a corporation organized and
existing under the laws of Nevis, West Indies).
Note B - Formerly NM Holdings, Inc. (name changed in October 1998). Owns
100% of Hudson Pointe, Inc., Land Management and Development, Inc.,
LandWest, Inc., Moreau Park, Inc., Riverview, Inc., Salmon Shores,
Inc., Upper Hudson Development, Inc., and OPropco, Inc., each of which
are real estate development companies located in Syracuse, New York and
incorporated in the state of New York.
Note C - EMCO-TECH, Inc. was inactive at December 31, 1998 and was dissolved
January 15, 1999.
Note D - Corporation was formed in 1998 to manage the operations of NM
Receivables LLC in which it has an interest of .00164%.
Note E - Limited liability company was formed in 1998, whose business consists
of the purchase and resale of an undivided interest in a designated
pool of customer receivables, including accrued unbilled revenues.
NMPC owns 99.99836% and NM Receivables Corp. II owns the remaining
.00164% of NM Receivables LLC.
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.
As of December 31, 1998, NMPC owned and operated four fossil fuel steam plants
(as well as having a 25% interest in the Roseton Steam Station and its output),
two nuclear fuel steam plants, various diesel generating units and 72
hydroelectric plants and had a majority interest in Beebee and Feeder Dam (owned
by Moreau) hydro plants and their output. NMPC also operates two other hydro
facilities under contract, High Dam Hydro and Marble Street Hydro, owned by the
City of Oswego, New York, and the City of Watertown, New York, respectively.
NMPC purchases substantially all of the output of these facilities. CNP owns
and operates the 76.8 megawatt Rankine hydroelectric plant (which distributes
electric power within the province of Ontario) and a windmill generator in the
province of Alberta. In addition, NMPC has contracts to purchase electric
energy from the New York Power Authority and other sources.
The following is a list of NMPC's major generating stations at December 31,
1998:
<TABLE>
<CAPTION>
NMPC's Share
of Net
Station, Location Energy Capability
and Percent Ownership Source in Megawatts
- ------------------------------------------- --------------- - -----------
<S> <C> <C>
Huntley, Niagara River (100%) . . . . . . . Coal 760
Dunkirk, Lake Erie (100%) . . . . . . . . . Coal 600
Albany, Hudson River (100%) . . . . . . . . Oil/Natural Gas 400
Oswego, Lake Ontario (100%) (Unit 5) . . . Oil 850
Oswego, Lake Ontario (76%) (Unit 6). . . . Oil/Natural Gas 646
Roseton, Hudson River (25%) . . . . . . . . Oil/Natural Gas 300
Nine Mile Point Unit 1, Lake Ontario (100%) Nuclear 613
Nine Mile Point Unit 2, Lake Ontario (41%). Nuclear 469
</TABLE>
In June 1998, Oswego Unit 5 returned to service after being put into long-term
cold standby in 1994. The claimant is in the process of auctioning its fossil
and hydro generating assets and is pursuing a sale of its nuclear generating
assets. Through December 31, 1998, binding bids have been accepted for its
hydro and coal-fired facilities, and these transactions are expected to be
consummated later in 1999.
As of December 31, 1998, NMPC's electric transmission and distribution systems
were comprised of 952 substations with a rated transformer capacity of
approximately 28,500,000 kva, approximately 8,000 circuit miles of overhead
transmission lines, approximately 1,100 cable miles of underground transmission
lines, approximately 113,100 conductor miles of overhead distribution lines and
approximately 5,800 cable miles of underground distribution cables. Only a part
of such transmission and distribution lines are located on property owned by
NMPC. The electric system of NMPC is directly interconnected with other
electric utility systems in Ontario and Quebec, Canada, New York, Massachusetts,
Vermont and Pennsylvania, and indirectly interconnected with most of the
electric utility systems in the United States.
As of December 31, 1998, NMPC's natural gas system was comprised of
approximately 9,100 miles of pipelines and mains, only a part of that is located
on property owned by NMPC.
Beebee owns and operates a hydroelectric generating station (8 megawatts rated
capacity) located on the Black River in the City of Watertown, Jefferson County,
New York.
Moreau owns and operates a hydroelectric generating station (5 megawatts rated
capacity) located on the Hudson River in the Town of Moreau, Saratoga County,
New York.
3. THE FOLLOWING INFORMATION IS FOR THE LAST CALENDAR YEAR WITH RESPECT TO
CLAIMANT AND EACH OF ITS SUBSIDIARY PUBLIC UTILITY COMPANIES:
(a) NUMBER OF KWH OF ELECTRIC ENERGY SOLD (AT RETAIL OR WHOLESALE), AND
MCF. OF NATURAL OR MANUFACTURED GAS DISTRIBUTED AT RETAIL.
Company Kwh Revenues
------- --- --------
NMPC (in New York State) 36,431,532,000 $3,116,451,000
Beebee (in New York State) 45,481,000 (1) $ 521,283
Moreau (in New York State) 24,734,000 (2) $ 642,422
CNP (in Ontario Province) 684,805,000 (3) $ 23,824,156 (4)
Natural Gas (Mcf.)
------------------
NMPC (in New York State) 63,439,000 $ 492,267,000
(1) Includes sales to NMPC of 37,676,000 Kwh, $ 431,831
(2) Includes sales to NMPC of 16,490,000 Kwh, $ 428,281
(3) Includes sales to NMPC of 184,843,000 Kwh, $2,788,635
(4) Converted to U.S. dollars at average exchange rate for the year.
(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.
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.
Company Kwh Revenues
------- --- --------
NMPC (at the state line) 1,967,431,410 $ 61,062,360
At the International boundary line
between United States and Canada:
By NMPC 160,033,000 $ 4,084,351
By CNP 184,843,000 (5) $ 2,788,635
(5) To NMPC
Natural Gas (Mcf.) Revenues
------------------ --------
NMPC (outside the state or
at the state line) 4,672,049 $ 8,742,313
(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.
Company Kwh Revenues
------- --- --------
NMPC (at the state line) 312,402,000 $ 10,170,845
At the International boundary line
between United States and Canada:
From CNP 184,343,000 $ 2,788,635
From Hydro-Quebec 4,190,000 $ 209,276
From Ontario Hydro 18,575,000 $ 522,890
From Cornwall Electric Company 11,674,000 $ 174,767
------------- ----------
218,782,000 $ 3,695,568
Natural Gas (Mcf.) Cost
------------------ ----
NMPC (at the state line): 53,111,869 $ 108,566,383
At the International boundary
line between United States and
Canada: From Western Gas
Marketing, Ltd. 18,399,249 $ 31,669,511
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.
NMPC, Opinac NA, Opinac Energy, and CNP each own a direct or an
indirect interest in a wind power generating facility at Cowley
Ridge in the province of Alberta, Canada, with a capacity of
approximately 18.9 megawatts (the "Facility") located at Cowley Ridge,
Pincher Creek, Alberta, Canada.
(b) NAME OF EACH SYSTEM COMPANY THAT HOLDS AN INTEREST IN SUCH EWG OR
FOREIGN UTILITY COMPANY AND DESCRIPTION OF THE INTEREST HELD.
The Facility is jointly owned by Canadian Niagara Wind Power Company,
Inc. ("Wind Power Company") and Cowley Ridge Partnership ("Cowley
Partnership") via a joint venture agreement. Wind Power Company
directly holds 99% of the joint venture. Cowley Partnership owns
1% of the joint venture. The joint venture holds title to the
properties. Wind Power Company is a corporation incorporated under
the laws of the province of Alberta, Canada. Cowley Partnership is an
Alberta general partnership.
CNP has a 99.99% interest in Wind Power Company and Cowley
Partnership. The remaining 0.01% is owned by Alberta Ltd., which
is 100% owned by CNP. At December 31, 1998, Opinac Energy, a
corporation incorporated under the laws of the province of Ontario,
Canada, has a 50% interest in CNP, and Opinac Energy is a wholly-owned
subsidiary of Opinac NA.
(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.
$990,622 (6) was invested by CNP.
(d) CAPITALIZATION AND EARNINGS OF THE EWG OR FOREIGN UTILITY COMPANY
DURING THE REPORTING PERIOD.
Cowley Partnership:
Partners' Equity - $1,575,291 (6)
(Contributed Capital - $1,853,233 (6) and Accumulated Deficit-
[$277,942]) (6)
Wind Power Company:
Shareholder's Equity - $901,273 (6)
(Contributed Capital - $538,234 (6) and
Retained Earnings-$363,039) (6)
(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
(6) Converted to U.S. dollars at exchange rate at December 31, 1998.
<PAGE>
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
EXHIBIT A
A CONSOLIDATING STATEMENT OF INCOME AND SURPLUS OF THE CLAIMANT AND SUBSIDIARY
COMPANIES FOR THE LAST CALENDAR YEAR, TOGETHER WITH A CONSOLIDATING BALANCE
SHEET OF THE CLAIMANT AND SUBSIDIARY COMPANIES AS OF THE CLOSE OF SUCH CALENDAR
YEAR.
Following are NMPC consolidating balance sheet at December 31, 1998,
consolidating statement of income and consolidating statements of retained
earnings for the year ended December 31, 1998, and adjustments,
reclassifications and inter-company eliminations. Notes to the NMPC financial
statements are incorporated herein by reference to its Annual Report on Form
10-K for 1998, File No. 1-2987.
Consolidating balance sheets at December 31, 1998, consolidating statements of
income and retained earnings for the year ended December 31, 1998, and
adjustments, inter-company eliminations and reclassifications for subsidiaries
owned indirectly 100% by NMPC through NM Properties, Inc. are also attached.
Consolidating balance sheets of Opinac NA (including subsidiaries owned
indirectly by NMPC through Opinac NA's ownership in Opinac Energy and NM Energy)
at December 31, 1998, consolidating statements of income and retained earnings
for the year ended December 31, 1998 and adjustments, inter-company eliminations
and reclassifications are also attached.
<PAGE>
S-1
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
EXHIBIT A
INDEX TO FINANCIAL STATEMENTS
Schedule No.
------------
Consolidating Balance Sheet of NMPC at December 31, 1998 S-2
Consolidating Statement of Income of NMPC for the Year Ended
December 31, 1998 S-6
Consolidating Statement of Retained Earnings of NMPC for the
Year Ended December 31, 1998 S-8
NMPC Inter-Company Eliminations, Adjustments and Reclassifications S-10
Consolidating Balance Sheet of NM Properties, Inc. at December 31, 1998 S-14
Consolidating Statement of Income and Retained Earnings of
NM Properties, Inc. for the Year Ended December 31, 1998 S-15
NM Properties, Inc. Inter-Company Eliminations, Adjustments and
Reclassifications S-18
Consolidating Balance Sheet of Opinac NA at December 31, 1998 S-21
Consolidating Statement of Income and Retained Earnings of
Opinac NA for the Year Ended December 31, 1998 S-22
Opinac NA Inter-Company Eliminations, Adjustments and Reclassifications S-23
Consolidating Balance Sheet of NM Energy at December 31, 1998 S-26
Consolidating Statement of Income of NM Energy for the Year Ended
December 31, 1998 S-27
NM Energy, Inter-Company Eliminations, Adjustments and
Reclassifications S-28
Consolidating Balance Sheet of Opinac Energy Corp. at December 31, 1998 S-30
Consolidating Statement of Income of Opinac Energy Corp. for the
Year Ended December 31, 1998 S-32
Opinac Energy Corp. Inter-Company Eliminations, Adjustments and
Reclassifications S-34
<PAGE>
S-2
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Niagara
Inter- Mohawk Opinac NM
Company Power North Properties
(Consolidated) Eliminations Corporation America Inc . Inc.
------------- ------------ ----------- ----------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
UTILITY PLANT:
Electric plant. . . . . . . . . . . . $ 8,826,650 $ (4,947) D $ 8,826,650 $ - $ -
Nuclear fuel. . . . . . . . . . . .. . 604,213 - 604,213 - -
Gas plant . . . . . . . . . . . . . . 1,179,716 - 1,179,716 - -
Common plant. . . . . . . . . . . . .. 349,066 - 349,066 - -
Construction work in progress . . .. . 471,802 - 471,802 - -
----------- ---------- ----------- --------- -------
TOTAL UTILITY PLANT . . . . . . . . . 11,431,447 (4,947) 11,431,447 - -
----------- ---------- ----------- --------- -------
Less: Accumulated
depreciation & amortization. . .. . . 4,553,488 (5,210) D 4,553,488 - -
---------- ---------- ----------- --------- -------
NET UTILITY PLANT . . . . . . . . . . 6,877,959 263 6,877,959 - -
---------- ---------- ----------- --------- -------
OTHER PROPERTY & INVESTMENTS:
Investment in subsidiary companies
- consolidated . . . . . . . . . . . - (468,033) A 468,027 - -
Investment. . . . . . . . . . . . . . 411,106 (89) AD 306,758 93,646 10,688
----------- ---------- ----------- --------- -------
411,106 (468,122) 774,785 93,646 10,688
----------- ---------- ----------- --------- -------
CURRENT ASSETS:
Cash, including temporary cash
investments of $122,837. . . . . . . 172,998 (1,278) D 163,856 12,347 3,014
Accounts receivable . . . . . . . . . 475,488 (51,796) BD 96,545 18,604 1,854
Less: Allowance for doubtful accounts (47,900) - - - -
Materials and supplies, at average costs:
Coal and oil for production of electricity 42,299 - 42,299 - -
Gas storage. . . . . . . . . . . . . . 38,803 - 37,770 1,033 -
Other. . . . . . . . . . . . . . . . . 118,855 - 118,855 - -
Refundable federal income tax . . . . . . 130,411 - 130,411 - -
Prepaid taxes . . . . . . . . . . . . . 17,282 (199) D 17,282 - -
Other . . . . . . . . . . . . . . . . . 22,208 (4) D 17,968 684 -
----------- ---------- ----------- --------- -------
970,444 (53,277) 624,986 32,668 4,868
----------- ---------- ----------- --------- -------
REGULATORY ASSETS:
MRA regulatory asset. . . . . . . . . . 4,045,647 - 4,045,647 - -
Indexed swap contracts regulatory asset . 535,000 - 535,000 - -
Regulatory tax asset. . . . . . . . . . 425,898 - 425,898 - -
Deferred environmental restoration costs. 220,000 - 220,000 - -
Unamortized debt expense. . . . . . . . . 51,922 - 51,922 - -
Postretirement benefits other than pensions 52,701 - 52,701 - -
Other . . . . . . . . . . . . . . . . . .. 137,061 - 137,061 - -
----------- ---------- ----------- --------- -------
5,468,229 - 5,468,229 - -
----------- ---------- ----------- --------- -------
Other Assets . . . . . . . . . . . . . . 133,449 373 D 131,631 1,818 -
----------- ---------- ---------- --------- -------
$13,861,187 $(520,763) $13,877,590 $ 128,132 $15,556
=========== ========== =========== ========= =======
</TABLE>
<PAGE>
S-3
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
NM NM NM NM Moreau Beebee
Receivables Receivables Receivables Uranium Manufctng Island
Corp. Corp. II LLC Inc. Co. Corp.
------------ ------------ ------------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
UTILITY PLANT:
Electric plant. . . . . . . . . . . . . . . . . $ - $ - $ - $ - $ 3,342 $ 1,605
Nuclear fuel. . . . . . . . . . . . . . . . . . - - - - - -
Gas plant . . . . . . . . . . . . . . . . . . . - - - - - -
Common plant. . . . . . . . . . . . . . . . . . - - - - - -
Construction work in progress . . . . . . . . . - - - - - -
------------ ------------ ------------- -------- ----------- --------
TOTAL UTILITY PLANT . . . . . . . . . . . . . . - - - - 3,342 1,605
------------ ------------ ------------- -------- ----------- --------
Less: Accumulated depreciation and
amortization. . . . . . . . . . . . . - - - - 3,532 1,678
------------ ------------ ------------- -------- ----------- --------
NET UTILITY PLANT . . . . . . . . . . . . . . . - - - - (190) (73)
------------ ------------ ------------- -------- ----------- --------
OTHER PROPERTY AND INVESTMENTS:
Investment in subsidiary companies
- consolidated . . . . . . . . . . . . . . - 6 - - - -
Investment. . . . . . . . . . . . . . . . . . . - - - 103 - -
------------ ------------ ------------- -------- ----------- --------
- 6 - 103 - -
------------ ------------ ------------- -------- ----------- --------
CURRENT ASSETS:
Cash, including temporary cash
investments of $122,837. . . . . . . . . . - 7 (6,272) 46 652 626
Accounts receivable . . . . . . . . . . . . . . - - 410,056 - 173 52
Less: Allowance for doubtful accounts . . - - (47,900) - - -
Materials and supplies, at average costs:
Coal and oil for production of electricity - - - - - -
Gas storage. . . . . . . . . . . . . . . . - - - - - -
Other. . . . . . . . . . . . . . . . . . . - - - - - -
Refundable federal income tax . . . . . . . . . - - - - - -
Prepaid taxes . . . . . . . . . . . . . . . . . - - - - 121 78
Other . . . . . . . . . . . . . . . . . . . . . - - 3,556 - 2 2
------------ ------------ ------------- -------- ----------- --------
- 7 359,440 46 948 758
------------ ------------ ------------- -------- ----------- --------
REGULATORY ASSETS:
MRA regulatory asset. . . . . . . . . . . . . . - - - - - -
Indexed swap contracts regulatory asset . . . . - - - - - -
Regulatory tax asset. . . . . . . . . . . . . . - - - - - -
Deferred environmental restoration costs. . . . - - - - - -
Unamortized debt expense. . . . . . . . . . . . - - - - - -
Postretirement benefits other than pensions . . - - - - - -
Other . . . . . . . . . . . . . . . . . . . . . - - - - - -
------------ ------------ ------------- -------- ----------- --------
- - - - - -
------------ ------------ ------------- -------- ----------- --------
Other Assets . . . . . . . . . . . . . . . . . . . . - - - - (373) -
------------ ------------ ------------- -------- ----------- --------
$ - $ 13 $ 359,440 $ 149 $ 385 $ 685
============ ============ ============= ======== =========== ========
</TABLE>
<PAGE>
S-4
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Niagara
Inter- Mohawk Opinac NM
Company Power North Properties
(Consolidated) Eliminations Corporation America Inc. Inc.
--------------- -------------- ------------ -------------- ---------
<S> <C> <C> <C> <C> <C>
CAPITALIZATION & LIABILITIES
- ----------------------------
CAPITALIZATION:
Common stockholders' equity:
Common stock-$1 par value;
authorized 250,000 shares;
issued 187,364,863 shares. . . . . . . . $ 187,365 $ - $ 187,365 $ - $ -
Capital stock premium and expense. . . . . 2,358,380 (475,162)A 2,362,530 149,015 15,020
Accumulated Other Comprehensive Income . . (21,643) - 701 (22,344) -
Capital stock in subsidiary companies. . . - (304)A - 1 3
Minority Interest. . . . . . . . . . . . . - (89)D 89 - -
Retained earnings. . . . . . . . . . . . . 646,040 6,357 A 646,040 (7,351) 1,190
--------------- -------------- ------------ ------------- ---------
3,170,142 (469,198) 3,196,725 119,321 16,213
--------------- -------------- ------------ ------------- ---------
Cumulative preferred stock-$100 par value: (10)D
authorized 3,400,000 shares;
issued 2,304,000:
Optionally redeemable . . . . . . . . . . 210,000 - 210,000 - -
Mandatorily redeemable. . . . . . . . . . 18,600 - 18,600 - -
Cumulative preferred stock-$25 par value:
authorized 19,600,000 shares;
issued 11,448,403
Optionally redeemable . . . . . . . . . . 230,000 - 230,000 - -
Mandatorily redeemable. . . . . . . . . . 50,390 - 50,390 - -
Cumulative preference stock-$25 par value:
authorized 8,000 shares; issued none
Long-term debt . . . . . . . . . . . . . . 6,417,225 (100,003)B 6,417,225 - -
--------------- -------------- ------------ ------------- ---------
TOTAL CAPITALIZATION. . . . . . . . . . . . . 10,096,357 (569,211) 10,122,940 119,321 16,213
--------------- -------------- ------------ ------------- ---------
CURRENT LIABILITIES:
Long-term debt due within one year . . . . 312,240 - 312,240 - -
Sinking fund reqrmnts on redeemable p/s . . 7,620 - 7,620 - -
Accounts payable. . . . . . . . . . . . . . 197,124 46,614 BD 188,960 7,654 (263)
Payable on outstanding bank checks. . . . . 39,306 - 39,306 - -
Customers' deposits . . . . . . . . . . . . 17,148 - 17,148 - -
Accrued taxes . . . . . . . . . . . . . . . 6,254 (1)D 5,933 319 -
Accrued interest. . . . . . . . . . . . . . 132,236 - 132,236 - -
Accrued vacation pay . . . . . . . . . . . . 38,727 - 38,727 - -
Other. . . . . . . . . . . . . . . . . . . . 91,877 (59)D 90,093 533 -
--------------- -------------- ------------ ------------- ---------
842,532 46,554 832,263 8,506 (263)
--------------- -------------- ------------- ------------- ---------
OTHER LIABILITIES:
Accumulated deferred income taxes . . . . . 1,511,417 1,894 D 1,511,725 86 (394)
Employee pension and other benefits . . . . 235,376 - 235,376 - -
Unbilled revenues . . . . . . . . . . . . . 30,652 - 30,652 - -
Liability for indexed swap contracts. . . . 693,362 - 693,362 - -
Other . . . . . . . . . . . . . . . . . . . 231,491 - 231,272 219 -
--------------- -------------- ------------- ------------- ---------
2,702,298 1,894 2,702,387 305 (394)
--------------- -------------- ------------- ------------- ---------
COMMITMENTS & CONTINGENCIES:
Liability for environmental restoration. . 220,000 - 220,000 - -
--------------- -------------- ------------ ------------- ---------
$ 13,861,187 $ (520,763) $ 13,877,590 $ 128,132 $ 15,556
=============== ============== ============ ============= =========
</TABLE>
<PAGE>
S-5
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
NM NM NM NM Moreau Beebee
Receivables Receivables Receivables Uranium Manufctng Island
Corp. Corp. II LLC Inc. Co. Corp.
------------ ------------ ------------- -------- ----------- --------
<S> <C> <C> <C> <C> <C> <C>
CAPITALIZATION & LIABILITIES
- -----------------------------
CAPITALIZATION:
Common stockholders' equity:
Common stock - $1 par value;
authorized 250,000,000 shares;
issued 187,364,863 shares. . . . . . . . $ - $ - $ - $ - $ - $ -
Capital stock premium and expense . . . . . - 3 305,938 39 714 283
Accumulated Other Comprehensive Income. . . - - - - - -
Capital stock in subsidiary companies . . . - 2 - 20 253 25
Minority interest . . . . . . . . . . . . . - - - - - -
Retained earnings . . . . . . . . . . . . . - 3 - - (505) 306
------------ ------------ ------------- -------- ----------- --------
- 8 305,938 59 462 614
------------ ------------ ------------- -------- ----------- --------
Cumulative preferred stock-$100 par value:. . - - - - - 10
authorized 3,400,000 shares;
issued 2,304,000:
Optionally redeemable. . . . . . . . . . . . - - - - - -
Mandatorily redeemable . . . . . . . . . . . - - - - - -
Cumulative preferred stock $25 par value:
authorized 19,600,000 shares;
issued 11,448,403:
Optionally redeemable . . . . . . . . . . . - - - - - -
Mandatorily redeemable. . . . . . . . . . . - - - - - -
Cumulative preference stock-$25 par value;
authorized 8,000,000 shares; issued none
Long-term debt. . . . . . . . . . . . . . . - 3 100,000 - - -
------------ ------------ ------------- -------- ----------- --------
TOTAL CAPITALIZATION. . . . . . . . . . . . . . - 11 405,938 59 462 624
------------ ------------ ------------- -------- ----------- --------
CURRENT LIABILITIES:
Long-term debt due within one year . . . . . - - - - - -
Sinking fund reqrmts on redeemable p/s . . . - - - - - -
Accounts payable . . . . . . . . . . . . . . - - (47,749) 90 1,268 550
Payable on outstanding bank checks . . . . . - - - - - -
Customers' deposits. . . . . . . . . . . . . - - - - - -
Accrued taxes. . . . . . . . . . . . . . . . - 2 - - (6) 7
Accrued interest . . . . . . . . . . . . . . - - - - - -
Accrued vacation pay . . . . . . . . . . . . - - - - - -
Other. . . . . . . . . . . . . . . . . . . . - - 1,251 - 31 28
------------ ------------ ------------- -------- ----------- --------
- 2 (46,498) 90 1,293 585
------------ ------------ ------------- -------- ----------- --------
OTHER LIABILITIES:
Accumulated deferred income taxes . . . . . . - - - - (1,370) (524)
Employee pension and other benefits . . . . . - - - - - -
Unbilled revenues . . . . . . . . . . . . . . - - - - - -
Liability for indexed swap contracts. . . . . - - - - - -
Other . . . . . . . . . . . . . . . . . . . . - - - - - -
------------ ------------ ------------- -------- ----------- --------
- - - - (1,370) (524)
------------ ------------ ------------- -------- ----------- --------
COMMITMENTS & CONTINGENCIES:
Liability for environmental restoration . . . - - - - - -
------------ ------------ ------------- -------- ----------- --------
$ - $ 13 $ 359,440 $ 149 $ 385 $ 685
============ ============ ============= ======== =========== ========
</TABLE>
<PAGE>
S-6
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Niagara
Inter- Mohawk Opinac NM
Company Power North Properties
(Consolidated) Eliminations Corporation America Inc. Inc.
--------------- -------------- ------------- -------------- --------
<S> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Electric. . . . . . . . . . . . . . . $ 3,261,144 $ - $ 3,261,144 $ - $ -
Gas . . . . . . . . . . . . . . . . . 565,229 - 565,229 - -
--------------- -------------- ------------- -------------- --------
3,826,373 - 3,826,373 - -
--------------- -------------- ------------- -------------- --------
OPERATING EXPENSES:
Fuel for electric generation. . . . . 239,982 - 239,982 - -
Electricity purchased . . . . . . . . 1,001,991 - 1,001,991 - -
Gas purchased . . . . . . . . . . . . 272,141 - 272,141 - -
Other operation and maintenance . . . 937,798 (11)C 933,646 - -
PowerChoice charge. . . . . . . . . . 263,227 - 263,227 - -
Amortization of MRA regulatory asset. 128,833 - 128,833 - -
Depreciation and amortization . . . . 355,417 - 355,417 - -
Other taxes . . . . . . . . . . . . . 459,961 - 459,786 - -
--------------- -------------- ------------- -------------- --------
3,659,350 (11) 3,655,023 - -
--------------- -------------- ------------- -------------- --------
OPERATING INCOME (LOSS). . . . . . . . . . 167,023 11 171,350 - -
Other income (deductions). . . . . . . . . 42,602 4,024 AC 45,137 (8,947) 347
--------------- -------------- -------------- ------------ --------
INCOME (LOSS) BEFORE . . . . . . . . . . . 209,625 4,035 216,487 (8,947) 347
INTEREST CHARGES
Interest charges . . . . . . . . . . . . . 397,178 (6,443)C 397,178 - -
--------------- ------------- -------------- ------------ --------
INCOME (LOSS) BEFORE FEDERAL
AND FOREIGN INCOME TAXES. . . . . . . (187,553) 10,478 (180,691) (8,947) 347
FEDERAL & FOREIGN INCOME TAXES . . . . . . (66,728) - (59,866) (3,597) 35
--------------- -------------- ------------- -------------- --------
NET INCOME (LOSS). . . . . . . . . . . . . $ (120,825) $ 10,478 A $ (120,825) $ (5,350) $ 312
=============== ============== ============== ============= =======
</TABLE>
<PAGE>
S-7
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
NM NM NM NM Moreau Beebee
Receivables Receivables Receivables Uranium Manufctng Island
Corp. Corp. II LLC Inc. Co Corp
------------- ------------- ------------- -------- ---------- -------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Electric. . . . . . . . . . . . . . . $ - $ - $ - $ - $ - $ -
Gas . . . . . . . . . . . . . . . . . - - - - - -
------------- ------------- ------------- -------- ---------- -------
- - - - - -
------------- ------------- ------------- -------- ---------- -------
OPERATING EXPENSES:
Fuel for electric generation. . . . . - - - - - -
Electricity purchased . . . . . . . . - - - - - -
Gas purchased . . . . . . . . . . . . - - - - - -
Other operation and maintenance . . . (2,342) 7 6,498 - - -
PowerChoice charge. . . . . . . . . . - - - - - -
Amortization of MRA regulatory asset. - - - - - -
Depreciation and amortization . . . . - - - - - -
Other taxes . . . . . . . . . . . . . 175 - - - - -
------------- ------------- ------------- -------- ---------- -------
(2,167) 7 6,498 - - -
------------- ------------- ------------- -------- ---------- -------
OPERATING INCOME (LOSS). . . . . . . . . . 2,167 (7) (6,498) - - -
Other income (deductions). . . . . . . . . (5,733) 11 7,648 - 36 79
------------- ------------- ------------- -------- ---------- -------
INCOME (LOSS) BEFORE
INTEREST CHARGES . . . . . . . . . . . . (3,566) 4 1,150 - 36 79
Interest charges . . . . . . . . . . . . . 5,865 - 578 - - -
------------- ------------- ------------- -------- ---------- -------
INCOME (LOSS) BEFORE FEDERAL
AND FOREIGN INCOME TAXES. . . . . . . (9,431) 4 572 - 36 79
FEDERAL & FOREIGN INCOME TAXES . . . . . . (3,301) 1 - - - -
------------- ------------- ------------- -------- ---------- -------
NET INCOME (LOSS) . . . . . . . . . . . . . $ (6,130) $ 3 $ 572 $ - $ 36 $ 79
============= ============= ============= ======== ========== =======
</TABLE>
<PAGE>
S-8
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Niagara
Inter- Mohawk Opinac NM
Company Power North Properties
(Consolidated) Eliminations Corporation America Inc. Inc.
--------------- -------------- ------------ -------------- ----------
<S> <C> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1997 . . . . . . . . $ 803,420 $ (3,163)A $ 803,420 $ (2,001) $ 878
Add:
Net income (loss) for the year. . . . (120,825) 10,478 A (120,825) (5,350) 312
--------------- -------------- ------------- ---------- ---------
682,595 7,315 682,595 (7,351) 1,190
--------------- -------------- ------------ ---------- ---------
Deduct:
Dividends paid in cash
on capital stock
Cumulative preferred
$100 stock on par value
3.40% Series . . . . . . . . . . 680 - 680 - -
3.60% Series . . . . . . . . . . 1,260 - 1,260 - -
3.90% Series . . . . . . . . . . 936 - 936 - -
4.10% Series . . . . . . . . . . 861 - 861 - -
4.85% Series . . . . . . . . . . 1,213 - 1,213 - -
5.25% Series . . . . . . . . . . 1,050 - 1,050 - -
6.10% Series . . . . . . . . . . 1,525 - 1,525 - -
7.45% Series . . . . . . . . . . 1,587 - 1,587 - -
7.72% Series . . . . . . . . . . 3,088 - 3,088 - -
Cumulative preferred stock,
$25 par value
7.85% Series . . . . . . . . . . 1,345 - 1,345 - -
8.375% Series. . . . . . . . . . 52 - 52 - -
9.50% Series . . . . . . . . . . 14,250 - 14,250 - -
Adjustable Rate Series A . . . . 1,950 - 1,950 - -
(actual rate for 1998, 6.50%)
Adjustable Rate Series B . . . . 3,258 - 3,258 - -
(actual rate for 1998, 7.50%)
Adjustable Rate Series C . . . . 3,500 - 3,500 - -
(actual rate for 1998, 7.00%) --------------- -------------- ------------ -------------- ------------
36,555 - 36,555 - -
--------------- -------------- ------------ -------------- ------------
Adjustments:
Partnership in NM Receivables LLC . . - 572 A - - -
Corporate restructuring . . . . . . . - (1,530)A - - -
--------------- -------------- ------------ -------------- ------------
DECEMBER 31, 1998 . . . . . . . . $ 646,040 $ 6,357 $ 646,040 $ (7,351) $ 1,190
=============== ============== ============ ============== ============
</TABLE>
<PAGE>
S-9
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
CONSOLIDATING STATEMENT OF RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
NM NM NM NM Moreau BeeBee
Receivables Receivables Receivables Uranium Manufctng Island
Corp. Corp. II LLC Inc. Co Corp
------------- ------------ ------------- -------- ----------- -------
<S> <C> <C> <C> <C> <C> <C>
BALANCE, DECEMBER 31, 1997 . . . . . . . . . . $ 4,600 $ - $ - $ - $ (541) $ 227
Add:
Net income (loss) for the year. . . . . . (6,130) 3 572 - 36 79
------------- ------------ ------------- -------- ----------- -------
(1,530) 3 572 - (505) 306
------------- ------------ ------------- -------- ----------- -------
Deduct:
Dividends paid in cash on capital stock
Cumulative preferred stock, $100 par value
3.40% Series. . . . . . . . . . . . - - - - - -
3.60% Series. . . . . . . . . . . . - - - - - -
3.90% Series. . . . . . . . . . . . - - - - - -
4.10% Series. . . . . . . . . . . . - - - - - -
4.85% Series. . . . . . . . . . . . - - - - - -
5.25% Series. . . . . . . . . . . . - - - - - -
6.10% Series. . . . . . . . . . . . - - - - - -
7.45% Series. . . . . . . . . . . . - - - - - -
7.72% Series. . . . . . . . . . . . - - - - - -
Cumulative preferred stock, $25 par value
7.85% Series. . . . . . . . . . . . - - - - - -
8.375% Series . . . . . . . . . . . - - - - - -
9.50% Series. . . . . . . . . . . . - - - - - -
Adjustable Rate Series A. . . . . . - - - - - -
(actual rate for 1998, 6.50%)
Adjustable Rate Series B. . . . . . - - - - - -
(actual rate for 1998, 7.50%)
Adjustable Rate Series C. . . . . . - - - - - -
(actual rate for 1998, 7.00%) ------------- ------------ ------------- -------- ----------- -------
- - - - - -
------------- ------------ ------------- -------- ----------- -------
Adjustments:
Capital Interest in NM Receivables LLC. . . - - (572) - - -
Corporate restructuring . . . . . . . . . . 1,530 - - - - -
------------- ------------ ------------- -------- ----------- -------
BALANCE, DECEMBER 31, 1998 . . . . . . . . . . $ - $ 3 $ - $ - $ (505) $ 306
============= ============ ============= ======== =========== =======
</TABLE>
<PAGE>
S-10
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
(A) Detail Debit Credit
- ------------------------------------------ -------- ----- ------
<S> <C> <C> <C>
Capital Stocks of Subsidiary Companies
- Consolidated. . . . . . . . . . . . . 304
Opinac North America, Inc. . . . 1
NM Properties, Inc.. . . . . . . 3
NM Receivables Corp. II. . . . . 2
NM Uranium, Inc. . . . . . . . . 20
Moreau Manufacturing Co. . . . . 253
Beebee Island Co.. . . . . . . . 25
Capital Stock Premium and Expense. . . . . 475,162
Opinac North America, Inc. . . . 149,015
NM Properties, Inc.. . . . . . . 15,020
NM Receivables Corp. II. . . . . 3
NM Receivables LLC . . . . . . . 305,938
NM Uranium, Inc. . . . . . . . . 39
NMPC . . . . . . . . . . . . . . 4,150
Moreau Manufacturing Co. . . . . 714
Beebee Island Corp.. . . . . . . 283
Retained Earnings (at beginning of year) . 3,163
Opinac North America, Inc. . . . (2,001)
NM Properties, Inc.. . . . . . . 878
NM Receivables Corp. . . . . . . 4,600
Moreau Manufacturing Co. . . . . (541)
Beebee Island Corp.. . . . . . . 227
Net Income of Subsidiaries for the period
1/1/98 through 12/31/98 . . . . . . . . 10,478
Opinac North America, Inc. . . . (5,350)
NM Properties, Inc.. . . . . . . 312
NM Receivables Corp. . . . . . . (6,130)
NM Receivables Corp. II. . . . . 3
NM Receivables LLC . . . . . . . 572
Moreau Manufacturing Co. . . . . 36
Beebee Island Corp. . . . . . . 79
Investments in Subsidiary Companies -
- Consolidated. . . . . . . . . . . . . 468,033
Opinac North America, Inc. . . . 145,815
NM Properties, Inc.. . . . . . . 16,213
NM Receivables Corp. II. . . . . 8
NM Receivables LLC . . . . . . . 305,938
NM Uranium, Inc. . . . . . . . . 59
Retained Earnings - NM Receivables LLC . . 572
Partnership Agreement . . . . . . . . . 572
Retained Earnings (at end of year) . . . . 1,530
NM Receivables Corp. . . . . . . 1,530
Investment . . . . . . . . . . . . . . . . 1,076
Moreau Manufacturing Co.. . . . . . 462
Beebee Island Corp. . . . . . . . . 614
</TABLE>
(A) To eliminate the investment in, advances to, dissolution and
restructuring of subsidiary companies.
<PAGE>
S-11
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
(B) Detail Debit Credit
- ---------------------------------------- ------- ----- ------
<S> <C> <C> <C>
Accounts Receivable. . . . . . . . . . . 48,432
NMPC from NM Properties, Inc.. 423
NMPC from NM Energy, Inc.. . . 260
NMPC from NM Receivables LLC . 47,749
Accounts Payable . . . . . . . . . . . . 48,432
NM Properties, Inc. to NMPC. . 423
NM Energy, Inc. to NMPC. . . . 260
NM Receivables LLC to NMPC . . 47,749
Long-Term Debt . . . . . . . . . . . . . 100,003
NM Receivables LLC to NMPC . . 100,000
NM Receivables Corp. II to
NM Receivables LLC. . . . 3
Accounts Receivable. . . . . . . . . . . 100,003
NMPC from NM Receivables LLC . 100,000
NM Receivables LLC from
NM Receivables Corp. II . 3
</TABLE>
<TABLE>
<CAPTION>
(C) Detail Debit Credit
- ------------------------------------------- ------ ----- ------
<S> <C> <C> <C>
Other Income & Deductions-other items (net) 11
NM Receivables Corp. II to
NM Receivables LLC . . . . . 11
Operating Expenses - other. . . . . . . . . 11
NM Receivables LLC to
NM Receivables Corp. II. . . 11
Other Income & Deductions-other items (net) 6,443
NMPC from NM Receivables Corp.. . 5,864
NMPC from NM Receivables LLC. . . 579
Other Interest. . . . . . . . . . . . . . . 6,443
NM Receivables Corp. to NMPC. . . 5,864
NM Receivables LLC to NMPC. . . . 579
</TABLE>
(C) To eliminate the inter-company revenues and expenses.
<PAGE>
S-12
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
(D) Detail Debit Credit
- ---------------------------------------- ------- ----- ------
<S> <C> <C> <C>
Preferred Stock of Subsidiary Companies. 10
Beebee Island Corp. . . . . . . . . 10
Accounts Payable . . . . . . . . . . . . 1,818
Moreau Manufacturing Co.. . . . . . 1,268
Beebee Island Corp. . . . . . . . . 550
Accrued Taxes. . . . . . . . . . . . . . 1
Moreau Manufacturing Co.. . . . . . (6)
Beebee Island Corp. . . . . . . . . 7
Other Current Liabilities. . . . . . . . 59
Moreau Manufacturing Co.. . . . . . 31
Beebee Island Corp. . . . . . . . . 28
Accumulated Deferred Income Taxes. . . . 1,894
Moreau Manufacturing Co. . . . . . . (1,370)
Beebee Island Corp.. . . . . . . . . (524)
Investment . . . . . . . . . . . . . . . 6
Moreau Manufacturing Co. . . . . . . (77)
Beebee Island Corp.. . . . . . . . . 71
Investment . . . . . . . . . . . . . . . 1,070
Moreau Manufacturing Co. . . . . . . 385
Beebee Island Corp.. . . . . . . . . 685
Electric Plant in Service. . . . . . . . 4,947
Moreau Manufacturing Co.. . . . . . . 3,342
Beebee Island Corp. . . . . . . . . . 1,605
Accumulated Depreciation &
Amortization . . . . . . . . . . . . . 5,210
Moreau Manufacturing Co.. . . . . . . (3,532)
Beebee Island Corp. . . . . . . . . . (1,678)
</TABLE>
<PAGE>
S-13
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
(D) (Continued) Detail Debit Credit
- ------------------------------------- ------- ----- ------
<S> <C> <C> <C>
Cash. . . . . . . . . . . . . . . . . 1,278
Moreau Manufacturing Co. . . . . . 652
Beebee Island Corp.. . . . . . . . 626
Accounts Receivable . . . . . . . . . 225
Moreau Manufacturing Co. . . . . . 173
Beebee Island Corp.. . . . . . . . 52
Prepaid Taxes . . . . . . . . . . . . 199
Moreau Manufacturing Co. . . . . . 121
Beebee Island Corp.. . . . . . . . 78
Other . . . . . . . . . . . . . . . . 4
Moreau Manufacturing Co. . . . . . 2
Beebee Island Corp.. . . . . . . . 2
Other Assets. . . . . . . . . . . . . 373
Moreau Manufacturing Co. . . . . . (373)
Other Income. . . . . . . . . . . . . 89
Moreau Manufacturing Co. . . . . . 24
Beebee Island Corp.. . . . . . . . 65
Minority Interest (Other Income). . . 89
Moreau Manufacturing Co. . . . . . 24
Beebee Island Corp.. . . . . . . . 65
Minority Interest (Retained Earnings) 89
Moreau Manufacturing Co. . . . . . 24
Beebee Island Corp.. . . . . . . . 65
Investments . . . . . . . . . . . . . 89
Moreau Manufacturing Co. . . . . . 24
Beebee Island Corp.. . . . . . . . 65
</TABLE>
S-14
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
NM PROPERTIES, INC.
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Inter-
Reported Consolidated Company LandWest OPropCo.
Total Reclasses Total Eliminations Inc. Inc.
---------- ------------ ------------ ------------ --------- --------
ASSETS
- -------
<S> <C> <C> <C> <C> <C> <C>
Cash. . . . . . . . . . . . . $ 3,014 $ - $ 3,014 $ - $ 251 $ 24
Receivables . . . . . . . . . 1,854 - 1,854 - 681 -
Due from affiliates . . . . . - - - (1,369) B - -
Investment in subsidiaries. . - (221)C 221 (12,842) A - -
Investment in dvlpmt project. 10,688 234 C 10,454 - (107) 6,153
Deferred federal income taxes - (394)E 394 - 240 63
Organization costs. . . . . . - (13)C 13 - - -
--------- ---------- -------- --------- --------- -------
TOTAL ASSETS . . . . . . . . . $ 15,556 $ (394) $ 15,950 $(14,211) $ 1,065 $6,240
========= ========== ======== ========= ========= =======
LIABILITIES & CAPITALIZATION
- -----------------------------
Accounts payable. . . . . . . $ (263) $ (356) D $ 93 $ - $ 4 $ 2
Purchase deposits held. . . . - (96) D 96 - 4 1
Accrued NY franchise tax. . . - 29 D (29) - (3) -
Due to parent . . . . . . . . - 423 D (423) (1,369) B 176 (1)
Deferred federal income taxes (394) (394) E - - - -
--------- ---------- -------- --------- --------- -------
(657) (394) (263) (1,369) 181 2
--------- ---------- -------- --------- --------- -------
SHAREHOLDER EQUITY:
Common stock . . . . . . . 3 - 3 (4) A - 1
Paid in capital. . . . . . 15,020 - 15,020 (11,906) A 741 6,706
Retained earnings. . . . . 1,190 - 1,190 (932) A 143 (469)
--------- ---------- -------- --------- --------- -------
16,213 - 16,213 (12,842) 884 6,238
--------- ---------- -------- --------- --------- -------
TOTAL LIABILITIES
AND EQUITY. . . . . . . . . . $ 15,556 $ (394) $ 15,950 $(14,211) $ 1,065 $6,240
========= ========= ======== ======== ========= ======
</TABLE>
<PAGE>
S-15
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
NM PROPERTIES, INC.
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Land Mgmt. & Upper Hudson Hudson Moreau Salmon NM
Development Development Pointe Riverview Park Shores Properties
Inc. Inc. Inc. Inc. Inc. Inc. Inc.
-------------- -------------- ------- ----------- ------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
- -------
Cash. . . . . . . . . . . . . . . $ 365 $ 356 $ 181 $ 214 $ 102 $ 5 $ 1,516
Receivables . . . . . . . . . . . 775 61 51 14 54 154 64
Due from affiliates . . . . . . . - - - - - - 1,369
Investment in subsidiaries. . . . 221 - - - - - 12,842
Investment in development project 1,765 1,216 279 295 677 176 -
Deferred federal income taxes . . - 91 - - - - -
Organization costs. . . . . . . . 1 1 2 1 1 1 6
------- --------- ----- ------ ----- --- --------
TOTAL ASSETS. . . . . . . . . . . $ 3,127 $ 1,725 $ 513 $ 524 $ 834 $336 $15,797
======= ========= ===== ====== ===== ==== ========
LIABILITIES &
CAPITALIZATION
- --------------
Accounts payable. . . . . . . . . $ 61 $ 10 $ 1 $ 1 $ 5 $ 2 $ 7
Purchase deposits held. . . . . . 2 15 - 74 - - -
Accrued NY franchise tax. . . . . (9) (16) 7 (14) 6 - -
Due to parent . . . . . . . . . 778 36 54 11 32 283 (423)
Deferred federal income taxes . - - - - - - -
------- -------- ----- ------ ----- ---- --------
832 45 62 72 43 285 (416)
------- -------- ----- ------ ----- ---- --------
SHAREHOLDER EQUITY:
Common stock . . . . . . . . . 1 1 - 1 - - 3
Paid in capital. . . . . . . . 1,696 1,262 411 315 674 101 15,020
Retained earnings. . . . . . 598 417 40 136 117 (50) 1,190
------- -------- ----- ------ ----- ---- --------
2,295 1,680 451 452 791 51 16,213
------- -------- ----- ------ ----- ---- --------
TOTAL LIABILITIES & EQUITY. . . . $ 3,127 $ 1,725 $ 513 $ 524 $ 834 $336 $15,797
======= ======== ===== ====== ===== ==== ========
</TABLE>
<PAGE>
S-16
NIAGARA MOHAWK POWER CORPORATION
NM PROPERTIES, INC.
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Inter-
Reported Consolidated Company LandWest OPropCo.
Total Reclasses Total Eliminations Inc. Inc.
--------- ----------- ----------- ------------ -------- --------
<S> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Property Sales. . . . . . . $ - $(1,328) F $ 1,328 $ - $ 265 $ 97
Sales of timber . . . . . . - (469) F 469 - - -
Rent and other income . . . - (51) F 51 - 32 -
------- -------- -------- -------- ------ ------
- (1,848) 1,848 - 297 97
------- -------- -------- -------- ------ ------
OPERATING EXPENSES:
Cost of property sold . . . - (1,025) F 1,025 - 228 332
Logging operations expense. - (34) F 34 - - -
Accounting. . . . . . . . . - (24) F 24 - 2 2
Legal . . . . . . . . . . . - (16) F 16 - - -
Insurance . . . . . . . . . - (25) F 25 - 2 2
Building maintenance. . . . - (69) F 69 - 19 -
Advertising and promotion . - (75) F 75 - - -
Management. . . . . . . . . - (210) F 210 - 5 10
NYS franchise tax . . . . . - (68) F 68 - 8 13
Amortization of org. costs. - (24) F 24 - - -
Consulting fees . . . . . . - (69) F 69 - 1 2
Property taxes. . . . . . . - (85) F 85 - 14 3
Other (net) . . . . . . . . - (3) F 3 - - 1
------- -------- -------- ------- ------ ------
- (1,727) 1,727 - 279 365
------- -------- -------- ------- ------ ------
OPERATING INCOME . . . . . . . . - (121) 121 - 18 (268)
Other income . . . . . . . . . . 347 347 F - - - -
Interest income. . . . . . . . . - (264) F 264 - 61 5
Equity in subs earnings. . . . . - 38 F (38) (293) A (18) -
------- -------- -------- ------- ------ ------
INCOME BEFORE TAX. . . . . . . . 347 - 347 (293) 61 (263)
Federal income tax . . . . . . . 35 - 35 - 22 (92)
------- -------- -------- ------- ------ ------
NET INCOME . . . . . . . . . . . 312 - 312 (293) 39 (171)
RETAINED EARNINGS
BEGINNING. . . . . . . . . . . . 878 - 878 (1,239) A 104 (298)
DIVIDENDS PAID . . . . . . . . . - - - (600) A - -
------- -------- -------- ------- ------ ------
RETAINED EARNINGS
YEAR-END . . . . . . . . . . . . $1,190 $ - $ 1,190 $ (932) $ 143 $(469)
======= ======== ======== ======= ====== ======
</TABLE>
<PAGE>
S-17
NIAGARA MOHAWK POWER CORPORATION
NM PROPERTIES, INC.
CONSOLIDATING STATEMENT OF INCOME AND RETAINED EARNINGS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Land Mgmt. & Upper Hudson Hudson Moreau Salmon NM
Development Development Pointe Riverview Park Shores Properties
Inc. Inc. Inc. Inc. Inc. Inc. Inc.
-------------- ------------- -------- ----------- ------- -------- ------------
<S> <C> <C> <C> <C> <C> <C> <C>
OPERATING REVENUES:
Property Sales. . . . . . . $ 225 $ 175 $ 283 $ - $ 283 $ - $ -
Sales of timber . . . . . . 469 - - - - - -
Rent and other income . . . 19 - - - - - -
-------------- ------------- -------- ----------- ------- -------- ------------
713 175 283 - 283 - -
-------------- ------------- -------- ----------- ------- -------- ------------
OPERATING EXPENSES:
Cost of property sold . . . 92 54 135 - 184 - -
Logging operations expense. 34 - - - - - -
Accounting. . . . . . . . . 4 2 2 2 2 2 6
Legal . . . . . . . . . . . 15 - - - - - 1
Insurance . . . . . . . . . 2 3 3 2 2 2 7
Building maintenance. . . . 50 - - - - - -
Advertising and promotion . 75 - - - - - -
Management. . . . . . . . . 129 18 1 2 6 13 26
NYS franchise tax . . . . . 12 9 2 (3) 8 - 19
Amortization of org. costs. 1 1 1 1 2 3 15
Consulting fees . . . . . . 13 1 - 1 - - 51
Property taxes. . . . . . . 36 12 9 3 8 - -
Other (net) . . . . . . . . - - - 1 - - 1
-------------- ------------- -------- ----------- ------- -------- ------------
463 100 153 9 212 20 126
-------------- ------------- -------- ----------- ------- -------- ------------
OPERATING INCOME. . . . . . . 250 75 130 (9) 71 (20) (126)
Other income. . . . . . . . . - - - - - - -
Interest income . . . . . . . 43 20 14 72 12 16 21
Equity in subs earnings . . . 1 - - - - (21) 293
-------------- ------------- -------- ----------- ------- -------- ------------
INCOME BEFORE TAX . . . . . . 294 95 144 63 83 (25) 188
Federal income tax. . . . . . 103 33 51 22 29 (9) (124)
-------------- ------------- -------- ----------- ------- -------- ------------
NET INCOME. . . . . . . . . . 191 62 93 41 54 (16) 312
RETAINED EARNINGS-BEGINNING . 407 355 (53) 695 63 (34) 878
DIVIDENDS PAID
- - - 600 - - -
-------------- ------------- -------- ----------- ------- -------- ------------
RETAINED EARNINGS-YEAR-END. . $ 598 $ 417 $ 40 $ 136 $ 117 $ (50) $ 1,190
============== ============= ======== =========== ======= ======== ============
</TABLE>
<PAGE>
S-18
NIAGARA MOHAWK POWER CORPORATION
NM PROPERTIES, INC.
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
(A) Detail Debit Credit
- ------------------------------------------ ------- ----- ------
<S> <C> <C> <C>
Capital Stocks of Subsidiary Companies . . 4
- Consolidated
OPropCo. Inc.. . . . . . . . . . 1
Land Mgmt. & Development Inc.. . 1
Upper Hudson Development Inc.. . 1
Riverview Inc. . . . . . . . . . 1
Paid in Surplus. . . . . . . . . . . . . . 11,906
LandWest Inc.. . . . . . . . . . 741
OPropCo. Inc.. . . . . . . . . . 6,706
Land Mgmt. & Development Inc.. . 1,696
Upper Hudson Development Inc.. . 1,262
Hudson Pointe Inc. . . . . . . . 411
Riverview Inc. . . . . . . . . . 315
Moreau Park Inc. . . . . . . . . 674
Salmon Shores Inc. . . . . . . . 101
Retained Earnings (at beginning) . . . . . 1,239
LandWest Inc.. . . . . . . . . . 104
OPropCo. Inc.. . . . . . . . . . (298)
Land Mgmt. & Development Inc.. . 407
Upper Hudson Development Inc.. . 355
Hudson Pointe Inc. . . . . . . . (53)
Riverview Inc. . . . . . . . . . 695
Moreau Park Inc. . . . . . . . . 63
Salmon Shores Inc. . . . . . . . (34)
Net Income of Subsidiaries for the period
1/1/98 through 12/31/98 . . . . . . . . 293
LandWest Inc.. . . . . . . . . . 39
OPropCo. Inc.. . . . . . . . . . (171)
Land Mgmt. & Development Inc.. . 191
Upper Hudson Development Inc.. . 62
Hudson Pointe Inc. . . . . . . . 93
Riverview Inc. . . . . . . . . . 41
Moreau Park Inc. . . . . . . . . 54
Salmon Shores Inc. . . . . . . . (16)
Retained Earnings - Dividend Paid. . . . . 600
Riverview Inc. . . . . . . . . . 600
Investment in Subsidiary Companies
- Consolidated. . . . . . . . . . . . . . 12,842
LandWest Inc.. . . . . . . . . . . 884
OPropCo. Inc.. . . . . . . . . . . 6,238
Land Mgmt & Development Inc. . . . 2,295
Upper Hudson Development Inc.. . . 1,680
Hudson Pointe Inc. . . . . . . . . 451
Riverview Inc. . . . . . . . . . . 452
Moreau Park Inc. . . . . . . . . . 791
Salmon Shores Inc. . . . . . . . . 51
</TABLE>
(A) To eliminate the investment in and advances to subsidiary companies.
<PAGE>
S-19
NIAGARA MOHAWK POWER CORPORATION
NM PROPERTIES, INC.
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
<TABLE>
<CAPTION>
(B) Detail Debit Credit
- ---------------------------------------- ------- ----- ------
<S> <C> <C> <C>
Due to Parent. . . . . . . . . . . . . . 1,369
LandWest Inc.. . . . . . . . . 176
OPropCo. Inc.. . . . . . . . . (1)
Land Mgmt. & Development Inc.. 778
Upper Hudson Development Inc.. 36
Hudson Pointe Inc. . . . . . . 54
Riverview Inc. . . . . . . . . 11
Moreau Park Inc. . . . . . . . 32
Salmon Shores Inc. . . . . . . 283
Due from Affiliates. . . . . . . . . . . 1,369
NM Holdings Inc. . . . . . . . 1,369
</TABLE>
(B) To eliminate the investment in and advances to subsidiary companies.
<TABLE>
<CAPTION>
(C) Detail Debit Credit
- ------------------------------------- ------ ----- ------
<S> <C> <C> <C>
Investment in Development Project . . 234
Investment in Subsidiaries. 221
Organization Costs. . . . . 13
</TABLE>
(C) To reclass accounts for consolidation purposes.
<TABLE>
<CAPTION>
(D) Detail Debit Credit
- ---------------------------- ------ ----- ------
<S> <C> <C> <C>
Accounts Payable . . . . . . 356
Purchase Deposits Held . . . 96
Accrued NY Franchise Tax. 29
Due to Parent . . . . . . 423
</TABLE>
(D) To reclass accounts for consolidation purposes.
<PAGE> S-20
NIAGARA MOHAWK POWER CORPORATION
NM PROPERTIES, INC.
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(IN THOUSANDS OF DOLLARS)
<TABLE>
<CAPTION>
(E) Detail Debit Credit
- ----------------------------------------- ------ ----- ------
<S> <C> <C> <C>
Deferred Federal Income Taxes (Asset) . . 394
Deferred Federal Income Taxes (Liability) 394
</TABLE>
(E) To reclass accounts for consolidation purposes.
<TABLE>
<CAPTION>
(F) Detail Debit Credit
- ------------------------------------ ------ ----- ------
<S> <C> <C> <C>
Property Sales . . . . . . . . . . . 1,328
Sales of Timber. . . . . . . . . . . 469
Rent and Other Income. . . . . . . . 51
Interest Income. . . . . . . . . . . 264
Cost of Property Sold. . . 1,025
Logging Operations Expense. 34
Accounting. . . . . . . . . 24
Legal . . . . . . . . . . . 16
Insurance . . . . . . . . . 25
Building Maintenance. . . . 69
Advertising and Promotion . 75
Management. . . . . . . . . 210
NYS Franchise Tax . . . . . 68
Amortization of Org. Cost . 24
Consulting Fees . . . . . . 69
Property Taxes. . . . . . . 85
Other (Net) . . . . . . . . 3
Equity in Subs Earnings . . 38
Other Income. . . . . . . . 347
</TABLE>
(F) To reclass certain accounts for consolidation purposes.
<PAGE>
S-21
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
OPINAC NORTH AMERICA
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1998
(In Thousand in Dollars)
<TABLE>
<CAPTION>
Inter- Opinac NM Opinac
Reported Consolidated Company North America Energy Energy
Total Reclasses Total Eliminations Inc. Inc. Corp.
-------- --------- ------------ ------------ ------------- ------ -------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
- --------
Other investments. . . . . . . $ 93,646 $ 74,750 C $ 18,896 $ - $ - $ 10,599 $ 8,297
Investments - subsidiaries . . - - - (145,721) A 145,721 - -
--------- --------- -------- ---------- -------- -------- --------
93,646 74,750 18,896 (145,721) 145,721 10,599 8,297
--------- --------- -------- ---------- -------- -------- --------
Cash & temporary investments . 12,347 (74,750) C 87,097 - 45 10,369 76,683
Accounts receivable. . . . . . 18,604 7,816 D 10,788 - - 9,519 1,269
Advances - Parent/Subsidiaries - (7,816) D 7,816 (50) B 50 7,816 -
Gas storage. . . . . . . . . . 1,033 - 1,033 - - 1,033 -
Income tax recoverables. . . . 684 - 684 - - 684 -
--------- --------- -------- ---------- --------- --------- --------
32,668 (74,750) 107,418 (50) 95 29,421 77,952
--------- --------- -------- ---------- --------- --------- --------
Other assets . . . . . . . . . 1,818 - 1,818 - - 1,818 -
--------- --------- -------- ---------- --------- --------- --------
TOTAL ASSETS . . . . . . . . . $ 128,132 $ - $128,132 $(145,771) $145,816 $ 41,838 $86,249
========= ========= ======== ========== ========= ========= ========
CAPITALIZATION
& LIABILITIES
- ---------------
Common stock . . . . . . . . . $ 1 $ - $ 1 $ (7,433) A $ 1 $ - $ 7,433
Paid in surplus. . . . . . . . 149,015 (4,151) E 153,166 (76,336) A 153,166 55,000 21,336
Retained earnings. . . . . . . (7,351) - (7,351) (57,265) A (7,351) (21,440) 78,705
Translation adjustment . . . . - 26,495 E (26,495) (4,687) A - (90) (21,718)
Accumulated other
comprehensive income. . . (22,344) (22,344) E - - - - -
--------- --------- -------- ---------- --------- --------- --------
119,321 - 119,321 (145,721) 145,816 33,470 85,756
--------- --------- -------- ---------- --------- --------- --------
Accounts payable . . . . . . . 7,654 - 7,654 (50) B - 7,616 88
Accrued taxes. . . . . . . . . 319 - 319 - - - 319
Accrued other. . . . . . . . . 533 - 533 - - 533 -
--------- --------- -------- ---------- --------- --------- --------
8,506 - 8,506 (50) - 8,149 407
--------- --------- -------- ---------- --------- --------- --------
Accumulated deferred taxes . . 86 - 86 - - - 86
Deferred credits . . . . . . . 219 - 219 - - 219 -
--------- --------- -------- ---------- --------- --------- --------
TOTAL LIABILITIES
& CAPITALIZATION . . . . . . $ 128,132 $ - $128,132 $(145,771) $145,816 $ 41,838 $86,249
========= ========= ======== ========== ========= ========= ========
</TABLE>
<PAGE>
S-22
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
OPINAC NORTH AMERICA, INC.
CONSOLIDATED STATEMENT OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED TO DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Inter- Opinac NM Opinac
Reported Consolidated Company North America Energy Energy
Total Reclasses Total Eliminations Inc. Inc. Corp.
---------- -------------- --------- ------------- -------------
<S> <C> <C> <C> <C> <C> <C> <C>
OTHER INCOME:
Taxes. . . . . . . . . . . $ - $ (3,597) F $ 3,597 $ - $ - $ 7,723 $(4,126)
Other income . . . . . . . - (178,190) G 178,190 - - 169,823 8,367
Subsidiary earnings. . . . - - - 5,273 A (5,273) - -
---------- -------------- ---------- ---------- -------- --------- --------
- (181,787) 181,787 5,273 (5,273) 177,546 4,241
---------- -------------- ---------- ---------- -------- --------- ---------
Other income deductions . . . . 8,947 (178,190) G 187,137 - 77 186,920 140
---------- -------------- --------- ---------- -------- --------- --------
Income (Loss) before federal
and foreign income taxes . (8,947) (3,597) (5,350) 5,273 (5,350) (9,374) 4,101
Federal & foreign income taxes. (3,597) (3,597) F - - - - -
---------- -------------- ---------- ---------- -------- --------- --------
Net income (loss) . . . . . . . (5,350) - (5,350) 5,273 (5,350) (9,374) 4,101
Retained earnings, beginning. . (2,001) - (2,001) (73,248) A (2,001) (12,066) 85,314
Dividends Paid. . . . . . . . . - - - 10,710 A - - (10,710)
---------- -------------- ---------- ---------- -------- --------- --------
RETAINED EARNINGS, END. . . . . $ (7,351) $ - $ (7,351) $ (57,265) $(7,351) $(21,440) $78,705
========== ============== ========== ========== ======== ========= ========
</TABLE>
<PAGE>
S-23
NIAGARA MOHAWK POWER CORPORATION
OPINAC NORTH AMERICA, INC.
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
(A) Detail Debit Credit
- ------------------------------------------ -------- ----- ------
<S> <C> <C> <C>
Capital Stocks of Subsidiary Companies . . 7,433
- Consolidated
Opinac Energy Corp.. . . . . . . 7,433
Paid in Surplus. . . . . . . . . . . . . . 76,336
Opinac Energy Corp.. . . . . . . . . . 21,336
NM Energy, Inc. . . . . . . . . . . . 55,000
Retained Earnings (at beginning) . . . . . 73,248
Opinac Energy Corp. . . . . . . . . . 85,314
NM Energy, Inc. . . . . . . . . . . . (12,066)
Net Income of Subsidiaries for the period
1/1/98 through 12/31/98 . . . . . . . . 5,273
Opinac Energy Corp. . . . . . . . . . 4,101
NM Energy, Inc. . . . . . . . . . . . (9,374)
Translation Adjustment . . . . . . . . . . 4,687
Retained Earnings - Dividend Adjustment. . 10,710
Opinac Energy Corp. . . . . . . . . . 10,710
Investment in Subsidiary Companies . . . . 145,721
-Consolidated
Opinac Energy Corp.. . . . . . . . . 112,161
NM Energy, Inc.. . . . . . . . . . . 33,560
</TABLE>
(A) To eliminate the investment in subsidiary companies.
<PAGE>
S-24
NIAGARA MOHAWK POWER CORPORATION
OPINAC NORTH AMERICA, INC.
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
(B) Detail Debit Credit
- ------------------------------- ------ ----- ------
<S> <C> <C> <C>
Accounts Payable. . . . . . . . 50
Opinac Energy Corp. . . . . 50
Advances - Parent/Subsidiaries 50
Opinac North America. . . . 50
</TABLE>
<TABLE>
<CAPTION>
(C) Detail Debit Credit
- --------------------------------- ------ ----- ------
<S> <C> <C> <C>
Other Investments . . . . . . . . 74,750
Cash & Temporary Investments. 74,750
</TABLE>
(C) To reclass Opinac North America temporary cash investments because the
original maturities are greater than 90 days, therefore, they are not considered
cash equivalents.
<TABLE>
<CAPTION>
(D) Detail Debit Credit
- ----------------------------------- ------ ----- ------
<S> <C> <C> <C>
Accounts Receivable . . . . . . . . 7,816
Advances - Parent/Subsidiaries. 7,816
</TABLE>
(D) To reclass advances to parent to accounts receivables.
<TABLE>
<CAPTION>
(E) Detail Debit Credit
- --------------------------- ------ ----- ------
<S> <C> <C> <C>
Translation Adjustment. . . 26,495
Paid in surplus. . . . . 4,151
Accumulated Other. . . . 22,344
Comprehensive Income
</TABLE>
(E) To reclass translation adjustment to Accumulated Other Comprehensive
Income in accordance with SFAS 130.
<PAGE>
S-25
NIAGARA MOHAWK POWER CORPORATION
OPINAC NORTH AMERICA, INC.
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
(F) Detail Debit Credit
- --------------------------------- ------ ----- ------
<S> <C> <C> <C>
Other Income-Taxes. . . . . . . . 3,597
Federal & Foreign Income Taxes. 3,597
</TABLE>
(F) To reclass taxes for consolidated reporting purposes.
<TABLE>
<CAPTION>
(G) Detail Debit Credit
- ------------------------ ------- ----- ------
<S> <C> <C> <C>
Other Income . . . . . . 178,190
Other Income Deductions. 178,190
</TABLE>
(G) To reclass Other Income for consolidated reporting purposes.
<PAGE>
S-26
NIAGARA MOHAWK POWER CORPORATION
NIAGARA MOHAWK ENERGY, INC.
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1998
FOR THE YEAR ENDED DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Global
Inter- NM Energy
Reported Consolidated Company NM Energy Enterprises
Total Reclasses Total Eliminations Energy Marketing India
---------- -------------- --------- -------------- -------- ------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
ASSETS
- ------
Other Investments . . . . $ 10,599 $ - $ 10,599 $ - $10,550 $ - $ 49
Investments-subsidiaries. - - - 10,841 A (10,841) - -
---------- -------------- --------- -------------- -------- ------------- ---------------
10,599 - 10,599 10,841 (291) - 49
---------- -------------- --------- -------------- -------- ------------- ---------------
Cash & temporary invest. . 10,369 - 10,369 - 17,246 (9,154) 56
Accounts receivable. . . . 9,519 - 9,519 - 705 8,809 5
Advances-Parents/Subs. . . 7,816 - 7,816 (12,657)B 16,029 4,444
Gas storage. . . . . . . . 1,033 - 1,033 - - 1,033 -
Income tax recoverables. . 684 - 684 - 684 - -
---------- -------------- --------- -------------- -------- ------------- ---------------
29,421 - 29,421 (12,657) 34,664 5,132 61
---------- -------------- --------- -------------- -------- ------------- ---------------
Other assets . . . . . . . 1,818 - 1,818 - 802 722 294
---------- -------------- --------- -------------- -------- ------------- ---------------
TOTAL ASSETS . . . . . . . $ 41,838 $ - $ 41,838 $ (1,816) $35,175 $ 5,854 $ 404
========== ============== ========= ============== ======== ============= ===============
CAPITALIZATION &
LIABILITIES
- -----------------
Common stock . . . . . . . $ - $ - $ - $ (10)A $ 10 $ -
Paid in surplus. . . . . . 55,000 - 55,000 (4,250)A 55,000 - 950
Retained earnings. . . . . (21,440) - (21,440) 15,037 A (21,440) (13,013) (929)
Translation adjustment . . (90) - (90) - - - (90)
Minority interest. . . . . - (219)E 219 64 A 155
Accumulated other
comprehensive income . . - - - - - - -
---------- -------------- --------- -------------- -------- ------------- ---------------
33,470 (219) 33,689 10,841 33,715 (13,003) (69)
---------- -------------- --------- -------------- -------- ------------- ---------------
Accounts payable . . . . . 7,616 - 7,616 (12,657)B 1,049 18,751 473
Accrued taxes. . . . . . . - - - - - - -
Accrued other. . . . . . . 533 - 533 - 411 106 -
---------- -------------- --------- -------------- -------- ------------- ---------------
8,149 - 8,149 (12,657) 1,460 18,857 473
---------- -------------- --------- -------------- -------- ------------- ---------------
Accumulated defererd taxes - - - - - - -
Deferred Credits . . . . . 219 219 E - - - -
---------- -------------- --------- -------------- -------- ------------- ----------------
TOTAL LIABILITIES
& CAPITALIZATION . . . . . $ 41,838 $ - $ 41,838 $ (1,816) $35,175 $ 5,854 $ 404
========== ============== ========= ============== ======== ============= ===============
Dolphin
Investments
International
Inc.
-------------
<S> <C>
ASSETS
- ------
Other Investments . . . . $ -
Investments-subsidiaries. -
-------
-
-------
Cash & temporary invest. . 2,221
Accounts receivable. . . . -
Advances-Parents/Subs. . . -
Gas storage. . . . . . . . -
Income tax recoverables. . -
-------
2,221
-------
Other assets . . . . . . . -
-------
TOTAL ASSETS . . . . . . . $2,221
=======
CAPITALIZATION &
LIABILITIES
- ----------------
Common stock . . . . . . . $ -
Paid in surplus. . . . . . 3,300
Retained earnings. . . . (1,095)
Translation adjustment . . -
Minority interest. . . . . -
Accumulated other
comprehensive income -
-------
2,205
-------
Accounts payable . . . . . -
Accrued taxes. . . . . . . -
Accrued other. . . . . . . 16
-------
16
-------
Accumulated defererd taxes -
Deferred Credits . . . . . -
-------
TOTAL LIABILITIES
& CAPITALIZATION . . . . . $2,221
=======
</TABLE>
<PAGE>
S-27
NIAGARA MOHAWK POWER CORPORATION
NIAGARA MOHAWK ENERGY, INC.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Global
Inter- NM Energy
Reported Consolidated Company NM Energy Enterprises
Total Reclasses Total Eliminations Energy Marketing India
---------- -------------- --------- -------------- -------- ------------- ---------------
<S> <C> <C> <C> <C> <C> <C> <C>
Revenue
Electric . . . . . . . . $ - $ (129,667)C $ 129,667 $ - $ 5 $ 129,662 $ -
Gas. . . . . . . . . . . - (36,502)C 36,502 - - 36,502 -
Transportation. . . . . . - (41)C 41 - - 41 -
Energy Services . . . . . - (613)C 613 - 613 - -
Consulting. . . . . . . . - (23)C 23 - - - 23
Miscellaneous . . . . . . - (2,977)C 2,977 - - 2,215 -
---------- ----------- ---------- ---------- --------- ----------- -----------
- (169,823) 169,823 - 618 168,420 23
---------- ----------- ---------- ---------- --------- ----------- -----------
Operating Expenses
Cost of Sales . . . . . . - (168,295)D 168,295 - 419 167,876 -
Administrative. . . . . . - (9,450)D 9,450 - 1,259 7,713 365
Rent. . . . . . . . . . . - (886)D 886 - 258 533 95
Depreciation & Amort. . . - (502)D 502 - 144 348 10
Minority Interest . . . . (64)D 64 64 - - - -
---------- ----------- ---------- ---------- --------- ----------- -----------
- (179,197) 179,197 64 2,080 176,470 470
---------- ----------- ---------- ---------- --------- ----------- -----------
Operating Income . . . . . . - 9,374 (9,374) (64) (1,462) (8,050) (447)
Other Income & Deductions
Taxes . . . . . . . . . . 7,723 7,723 D - - - - -
Other Income. . . . . . . 169,823 169,823 C - - - - -
Other Deductions. . . . . 186,920 186,920 D - - - - -
Loss in Affiliates. . . . - - - (7,912) 7,912 - -
---------- ----------- ---------- ---------- --------- ----------- ----------
NET INCOME (LOSS). . . . . . (9,374) - (9,374) 7,848 A (9,374) (8,050) (447)
Retained earnings-beginning. (12,066) - (12,066) 7,189 A (12,066) (4,963) (482)
---------- ----------- ---------- ---------- --------- ----------- -----------
Retained earnings - end. . . $ (21,440) $ - $ (21,440) $ 15,037 A $(21,440) $ (13,013) $ (929)
========== =========== ========== ========== ========= =========== ==========
</table)
Dolphin
Investments
International
Inc.
-------------
<S> <C>
Revenue
Electric . . . . . . . . $ -
Gas. . . . . . . . . . . -
Transportation. . . . . . -
Energy Services . . . . . -
Consulting. . . . . . . . -
Miscellaneous . . . . . . 762
-----------
762
-----------
Operating Expenses
Cost of Sales . . . . . . -
Administrative. . . . . . 113
Rent. . . . . . . . . . . -
Depreciation & Amort. . . -
Minority Interest . . . . -
-----------
113
-----------
Operating Income . . . . . . 649
Other Income & Deductions
Taxes . . . . . . . . . . -
Other Income. . . . . . . -
Other Deductions. . . . . -
Loss in Affiliates. . . . -
-----------
NET INCOME (LOSS). . . . . . 649
Retained earnings-beginning. (1,744)
-----------
Retained earnings - end. . . $ (1,095)
===========
</table)
<PAGE>
S-28
NIAGARA MOHAWK POWER CORPORATION
NIAGARA MOHAWK ENERGY, INC.
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
</TABLE>
<TABLE>
<CAPTION>
(A) Detail Debit Credit
- ------------------------------------------ ------- ----- ------
<S> <C> <C> <C>
Capital Stocks of Subsidiary Companies . . 10
- Consolidated
NM Energy Marketing . . . . . . . . 10
Paid in Surplus. . . . . . . . . . . . . . 4,250
Global Energy Enterprises India. . . 950
Dolphin Investments International. . 3,300
Investment in Subsidiary Companies
- Consolidated. . . . . . . . . . . . . . 10,841
NM Energy . . . . . . . . . . . . . . 10,841
Retained Earnings (at beginning of year) . 7,189
NM Energy Marketing. . . . . . . . . . (4,963)
Global Energy Enterprises India. . . . (482)
Dolphin Investments International. . . (1,744)
Net Income of Subsidiaries for the period
1/1/98 through 12/31/98. . . . . . . . . . 7,848
NM Energy Marketing. . . . . . . . . . (8,050)
Global Energy Enterprises India. . . . (447)
Dolphin Investments International. . . 649
Minority Interest (retained earnings). . . 64
</TABLE>
(A) To eliminate the investment in subsidiary companies.
<PAGE>
<TABLE>
<CAPTION>
(B) Detail Debit Credit
- ----------------------------------- ------ ----- ------
<S> <C> <C> <C>
Accounts Payable. . . . . . . . . . 12,657
NM Energy . . . . . . . . . . . 12,647
NM Energy Marketing . . . . . . 10
Accounts Receivable . . . . . . . . 12,657
NM Energy. . . . . . . . . . . . 10
NM Energy Marketing. . . . . . . 12,174
Global Energy Enterprises India. 473
</TABLE>
(B) To eliminate the advances to/from parents/subsidiary companies.
<PAGE>
S-29
NIAGARA MOHAWK POWER CORPORATION
NIAGARA MOHAWK ENERGY, INC.
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
(C) Detail Debit Credit
- --------------------------- ------- ----- ------
<S> <C> <C> <C>
Revenue. . . . . . . 169,823
Electric . . . . 129,667
Gas. . . . . . . 36,502
Transportation . 41
Energy Services. 613
Consulting . . . 23
Miscellaneous. . 2,977
Other Income . . . . 169,823
</TABLE>
(C) To reclass Operating Revenue to Other Income for presentation purposes.
<TABLE>
<CAPTION>
(D) Detail Debit Credit
- ------------------------------ ------- ----- ------
<S> <C> <C> <C>
Other Deductions . . . . . . 186,920
Taxes. . . . . . . . . . . . 7,723
Operating Expenses . . . . 179,197
Costs of Sales . . . . . 168,295
Administrative . . . . . 9,450
Rent . . . . . . . . . . 886
Depreciation and Amort.. 502
Minority Interest. . . . 64
</TABLE>
(D) To reclass Operating Expenses to Taxes and Other Deductions for
presentation purposes.
<TABLE>
<CAPTION>
(E) Detail Debit Credit
- ------------------------------ ------ ----- ------
<S> <C> <C> <C>
Minority interest. 219
Deferred credit. . 219
</TABLE>
(E) To reclass Minority Interest to Deferred Credit for presentation
purposes.
<PAGE>
S-30
NIAGARA MOHAWK POWER CORPORATION
OPINAC ENERGY CORP.
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1998
FOR THE YEAR ENDED DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Opinac Opinac
Energy Corp Energy Corp CNP
Total Total Opinac Consolidated
US Dollar* Canadian Energy Reclasses Total
------------- ------------ --------- -------------- ------------
<S> <C> <C> <C> <C> <C>
ASSETS
Utility Plant (net) . . . . $ - $ - $ - $ (60,740)C $60,740
------------- ------------ --------- -------------- -------
Other investments . . . . . 8,297 12,696 2,008 10,688 C -
Investments-Subsidiaries. . - - - - -
------------- ------------ --------- -------------- -------
8,297 12,696 2,008 10,688 -
------------- ------------ --------- -------------- -------
Cash & temporary invest.. . 76,683 117,342 117,342 (10,173)C 10,173
Accounts receivable . . . . 1,269 1,942 1,942 (4,941)C 4,941
Inventory . . . . . . . . . - - - (1,518)C 1,518
Income tax recoverables . . - - - (530)C 530
------------- ------------ --------- -------------- -------
77,952 119,284 119,284 (17,162) 17,162
------------- ------------ --------- -------------- -------
Deferred pension costs. . . - - - (2,933)C 2,933
Debt reserve. . . . . . . . - - - (479)C 479
Other assets. . . . . . . . - - - (172)C 172
------------- ------------ --------- -------------- -------
- - - (3,584) 3,584
------------- ------------ --------- -------------- -------
TOTAL ASSETS. . . . . . . . $ 86,249 $ 131,980 $121,292 $ (70,798) $81,486
============= ============ ========= ============== =======
CAPITALIZATION
AND LIABLITIES
Common stock. . . . . . . . $ 7,433 $ 9,007 $ 9,007 $ - $ -
Paid in surplus . . . . . . 21,336 24,264 24,264 - -
Retained earnings . . . . . 78,705 97,956 97,956 (21,376)C 21,376
Translation adjustment. . . (21,718) - - - -
Minority interest . . . . . - - (10,688) 10,688 C -
Accumulated other . . . . . - - - - -
comprehensive income. . . - - - - -
------------- ------------ --------- -------------- -------
85,756 131,227 120,539 (10,688) 21,376
------------- ------------ --------- -------------- -------
Long-term debt. . . . . . . - - - (38,419)C 38,419
------------- ------------ --------- -------------- -------
Accounts payable. . . . . . 88 134 134 (2,807)C 2,807
Income taxes payable. . . . - - - (1,038)C 1,038
Deferred taxes payable. . . 319 487 487 (8,479)C 8,479
Current long-term debt. . . - - - (4,301)C 4,301
Accrued other . . . . . . . - - - - -
------------- ------------ --------- -------------- -------
407 621 621 (16,625) 16,625
------------- ------------ --------- -------------- -------
Accumulated deferred taxes. 86 132 132 - -
Deferred credits. . . . . . - - - (5,066)C 5,066
------------- ------------ --------- -------------- -------
TOTAL LIABILITIES
& CAPITALIZATION. . . . . . $ 86,249 $ 131,980 $121,292 $ (70,798) $81,486
============= ============ ======== ============== =======
</TABLE>
* Exchange rate 0.6535
<PAGE>
S-31
NIAGARA MOHAWK POWER CORPORATION
OPINAC ENERGY CORP.
CONSOLIDATING BALANCE SHEET AT DECEMBER 31, 1998
FOR THE YEAR ENDED DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Inter Canadian
Company Cowley Wind Power
Eliminations Ontario Ridge Company
and Reclasses CNP Inc. Partnership Inc.
--------------- --------- ----------- ------------- ----------
<S> <C> <C> <C> <C> <C>
ASSETS
Utility Plant (net) . . . . $ 43 A $ 42,586 $ 64 $ 180 $ 17,867
------------- --------- -------- -------- --------
Other investments
Investments-Subsidiaries. . (3,894)A 1,577 - 2,317 -
------------- --------- -------- -------- --------
(3,894) 1,577 - 2,317 -
------------- --------- -------- -------- --------
Cash & temporary invest.. . - 9,419 7 7 740
Accounts receivable . . . . (783)B 4,566 - 12 1,146
Inventory . . . . . . . . . - 964 - 6 548
Income tax recoverables . . - - - - 530
------------- --------- -------- -------- --------
(783) 14,949 7 25 2,964
------------- --------- -------- -------- --------
Deferred pension costs. . . - 2,933 - - -
Debt reserve. . . . . . . . - - - 5 474
Other assets. . . . . . . . - 116 - 1 55
------------- --------- -------- -------- --------
- 3,049 - 6 529
------------- --------- -------- -------- --------
TOTAL ASSETS. . . . . . . . $ (4,634) $ 62,161 $ 71 $ 2,528 $21,360
============= ========= ======== ======== ========
CAPITALIZATION
AND LIABLITIES
Common stock. . . . . . . . $ (70)A $ - $ 70 $ - $ -
Paid in surplus . . . . . . (3,660)A - - 2,836 824
Retained earnings . . . . . (121)A 21,376 (10) (425) 556
Translation adjustment. . . - - - - -
Minority interest . . . . . - - - - -
Accumulated other
comprehensive income. . . - - - - -
------------- --------- -------- -------- --------
(3,851) 21,376 60 2,411 1,380
------------- --------- -------- -------- --------
Long-term debt. . . . . . . - 28,000 - 104 10,315
------------- ----------- -------- -------- --------
Accounts payable. . . . . . (783)B 2,638 11 10 931
Income taxes payable. . . . - 1,081 - - (43)
Deferred taxes payable. . . - - - - 8,479
Current long-term debt. . . - 4,000 - 3 298
Accrued other . . . . . . . - - - - -
------------- --------- -------- -------- ---------
(783) 7,719 11 13 9,665
------------- --------- -------- -------- --------
Accumulated deferred taxes. - - - - -
Deferred credits. . . . . . - 5,066 - - -
------------- --------- -------- -------- ---------
TOTAL LIABILITIES
& CAPITALIZATION. . . . . . $ (4,634) $ 62,161 $ 71 $ 2,528 $ 21,360
============= ========= ======== ======== ========
</TABLE>
<PAGE>
S-32
NIAGARA MOHAWK POWER CORPORATION
OPINAC ENERGY CORP.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Opinac Canadian
Energy Energy CNP
Total Total Opinac Consolidated
US Dollar Canadian Reclasses Energy Reclasses Total
--------- -------- --------- ------ --------- -----------
<S> <C> <C> <C> <C> <C> <C>
Revenue
Electric Utility . . . . . $ - $ - $ - $ - $ (39,433)D $ 39,433
Interest Income. . . . . - - - - - -
--------- --------- ---------- ---------- ---------- ---------
- - - - (39,433) 39,433
--------- --------- ---------- ---------- ---------- ---------
Operating Expenses
Electric Utility . . . . . - - - - (13,993)D 13,993
Administration . . . . . . - - (128)C 128 (3,968)D 3,968
Depreciation . . . . . . . - - - - (1,825)D 1,825
Minority Interest. . . . . - - - - - -
--------- --------- ---------- ---------- ---------- ---------
- - (128) 128 (19,786) 19,786
--------- --------- ---------- ---------- ---------- ---------
Operating Income . . . . . . - - 128 (128) (19,647) 19,647
Other Income & Deductions
Taxes . . . . . . . . . . . (4,126) (6,612) (6,612)C - - -
Other Income . . . . . . . 8,367 13,591 - 13,591 - -
Other Deductions . . . . . 140 208 128 C 80 (2,872)D 2,872
Loss in Affiliates . . . . - - - - - -
--------- --------- ---------- --------- ---------- ---------
INCOME (LOSS) BEFORE TAXES . 4,101 6,771 (6,612) 13,383 (16,775) 16,775
Taxes. . . . . . . . . . . . - - (6,612)C 6,612 (7,542)D 7,542
--------- --------- ---------- --------- ---------- ---------
NET INCOME (LOSS). . . . . . 4,101 6,771 - 6,771 (9,233) 9,233
Retained earnings-beginning. 85,314 107,609 - 107,609 (17,143)D 17,143
Dividend Paid. . . . . . . . (10,710) (16,424) - (16,424) - -
Prior Period Adjustment. . . - - - - 5,000 (5,000)
--------- --------- ---------- --------- ---------- ---------
RETAINED EARNINGS-END. . . $ 78,705 $ 97,956 $ - $ 97,956 $ (21,376) $ 21,376
========= ========= ========== ========= ========== =========
</TABLE>
<PAGE>
S-33
NIAGARA MOHAWK POWER CORPORATION
OPINAC ENERGY CORP.
CONSOLIDATING STATEMENT OF INCOME
FOR THE YEAR ENDED DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
Canadian
Inter Cowley Wind Power
Company Ontario Ridge Company
Eliminations CNP Inc. Partnership Inc.
------------- --------- ------------ ------------- -----------
<S> <C> <C> <C> <C> <C>
Revenue
Electric Utility . . . . . $ - $ 36,162 $ 15 $ 27 $ 3,229
Interest Income. . . . . . - - - - -
-------------- --------- ------------ ------------- ---------
- 36,162 15 27 3,229
-------------- --------- ------------ ------------- ---------
Operating Expenses
Electric Utility . . . . . - 12,972 18 10 993
Administration . . . . . . (67)C 4,011 - - 24
Depreciation . . . . . . . 67C 1,007 3 7 741
Minority Interest. . . . . - - - - -
-------------- --------- ------------ ------------- ---------
- 17,990 21 17 1,758
-------------- --------- ------------ ------------- ---------
Operating Income . . . . . . - 18,172 (6) 10 1,471
Other Income & Deductions
Taxes . . . . . . . . . . . - - - - -
Other Income . . . . . . . (161) 161 - - -
Other Deductions . . . . . - 1,693 - 11 1,168
Loss in Affiliates . . . . - - - - -
-------------- --------- ------------ ------------- ---------
INCOME (LOSS) BEFORE TAXES . (161) 16,640 (6) (1) 303
Taxes. . . . . . . . . . . . - 7,407 - - 135
-------------- --------- ------------ ------------- ---------
NET INCOME (LOSS). . . . . . (161)A 9,233 (6) (1) 168
Retained earnings-beginning. 40 A 17,143 (4) (424) 388
Dividend Paid. . . . . . . . - - - - -
Prior Period Adjustment. . . - (5,000) - - -
-------------- --------- ------------ ------------- ---------
RETAINED EARNINGS-END. . . . $ (121)A $ 21,376 $ (10) $ (425) $ 556
============== ========= ============ ============= =========
</TABLE>
<PAGE>
S-34
NIAGARA MOHAWK POWER CORPORATION
OPINAC ENERGY CORP.
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
(A) Detail Debit Credit
- ------------------------------------------ ------- ----- ------
<S> <C> <C> <C>
Capital Stocks of Subsidiary Companies . . 70
- Consolidated
Ontario Inc.. . . . . . . . . . . . 70
Paid in Surplus. . . . . . . . . . . . . . 3,660
Cowley Ridge Partnership . . . . . . 2,836
Canadian Wind Power Company. . . . . 824
Utility Plant (net). . . . . . . . . . . . 43
Net Income of Subsidiaries for the period
1/1/98 through 12/31/98. . . . . . . . . . 161
Ontario Inc. . . . . . . . . . . . . . (6)
Cowley Ridge Partnership . . . . . . . (1)
Canadian Wind Power Company. . . . . . 168
Investment in Subsidiary Companies
- Consolidated. . . . . . . . . . . . . . 3,894
CNP . . . . . . . . . . . . . . . . . 1,577
Cowley Ridge Partnership. . . . . . . 2,317
Retained Earnings (at beginning of year) . 40
Ontario Inc. . . . . . . . . . . . . . (4)
Cowley Ridge Partnership . . . . . . . (424)
Canadian Wind Power Company. . . . . . 388
</TABLE>
(A) To eliminate the investment in subsidiary companies.
<TABLE>
<CAPTION>
(B) Detail Debit Credit
- ------------------------ ------ ----- ------
<S> <C> <C> <C>
Accounts Payable . . . . 783
Accounts Receivable. 783
</TABLE>
(B) To eliminate the advances to/from parent/subsidiary companies.
<PAGE>
S-35
NIAGARA MOHAWK POWER CORPORATION
OPINAC ENERGY CORP.
INTER-COMPANY ELIMINATIONS, ADJUSTMENTS AND RECLASSIFICATIONS
DECEMBER 31, 1998
(In Thousands of Dollars)
<TABLE>
<CAPTION>
(C) Detail Debit Credit
- ------------------------------------- ------ ----- ------
<S> <C> <C> <C>
Depreciation. . . . . . . . . . . . . 67
Administration . . . . . . . . . . 67
Other Income & Deductions-Deductions. 128
Other Income & Deductions - Taxes . . 6,612
Taxes . . . . . . . . . . . . . . 6,612
Administration. . . . . . . . . . 128
Retained Earnings . . . . . . . . . . 21,376
Long-term Debt. . . . . . . . . . . . 38,419
Accounts Payable. . . . . . . . . . . 2,807
Income Taxes Payable. . . . . . . . . 1,038
Deferred Taxes Payable. . . . . . . . 8,479
Current-Long-term Debt. . . . . . . . 4,301
Deferred Credits. . . . . . . . . . . 5,066
Other Investments. . . . . . . . . 81,486
Other Investments . . . . . . . . . . 81,486
Utility Plant. . . . . . . . . . . 60,740
Cash & Temporary Investments . . . 10,173
Accounts Receivable. . . . . . . . 4,941
Inventory. . . . . . . . . . . . . 1,518
Income Tax Recoverables. . . . . . 530
Deferred Pension Costs . . . . . . 2,933
Debt Reserve . . . . . . . . . . . 479
Other Assets . . . . . . . . . . . 172
Other Investments . . . . . . . . . . 10,688
Minority Interest. . . . . . . . . 10,688
</TABLE>
(C) To reclass items for presentation purposes.
<TABLE>
<CAPTION>
(D) Detail Debit Credit
- ---------------------------------------- ------ ----- ------
<S> <C> <C> <C>
Revenue. . . . . . . . . . . . . . . . . 39,433
Operating Expenses-Electric Utility . 13,993
Operating Expenses-Administration . . 3,968
Operating Expenses - Depreciation . . 1,825
Other Income & Deductions-Deductions. 2,872
Taxes . . . . . . . . . . . . . . . . 7,542
Net Income. . . . . . . . . . . . . . 9,233
</TABLE>
(D) To eliminate investment in CNP.
<PAGE>
EXHIBIT B
[ARTICLE] UT
[LEGEND]
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED BALANCE SHEET, CONSOLIDATED STATEMENT OF INCOME, AND
CONSOLIDATED STATEMENT OF CASH FLOWS AND IS QUALIFIED IN ITS ENTIRETY
BY REFERENCE TO SUCH FINANCIAL STATEMENTS.
[/LEGEND]
[MULTIPLIER] 1000
<TABLE>
<S> <C>
[PERIOD-TYPE] YEAR
[FISCAL-YEAR-END] DEC-31-1998
[PERIOD-END] DEC-31-1998
[BOOK-VALUE] PER-BOOK
[TOTAL-ASSETS] 13861187
[TOTAL-OPERATING-REVENUES] 3826373
[NET-INCOME] (120825)
</TABLE>
<PAGE>
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
EXHIBIT C
An organization chart shows the relationship of each EWG or foreign utility
company to associate companies in the holding company system.
NMPC
(100%)
Opinac North America
(100%)
Opinac Energy
(50%)
CNP
(100%)
Alberta, Ltd.
(99.99%) (0.01%) (0.01%) (99.99%)
Cowley Partnership Wind Power Company
(1%) (99%)
Cowley Ridge Wind
Power Facility
<PAGE>
NIAGARA MOHAWK POWER CORPORATION AND SUBSIDIARY COMPANIES
The above-named Claimant has caused this statement to be duly executed on its
behalf by its authorized officers on this 26th day of February 1999.
Corporate Seal
Attest: NIAGARA MOHAWK POWER CORPORATION
(Name of Claimant)
By /s/Steven W. Tasker
- ---------------------------------------
Steven W. Tasker
Vice President-Controller
By /s/ Kapua A. Rice
- ---------------------------------------
Kapua A. Rice
Secretary
Name, title and address of officer to who notices and correspondence concerning
this statement should be addressed:
Steven W. Tasker, Vice President-
Controller and Principal
Accounting Officer
Niagara Mohawk Power Corporation
300 Erie Boulevard West
Syracuse, New York 13202
